AGENDA Introduction Introduction AGENDA Agenda SECURITIES - PowerPoint PPT Presentation

5/9/2009  INTRODUCTION  Introduction EXECUTIVE TEAM  Agenda  Agenda  Executive Team  EXECUTIVE TEAM  Markin Hall &  Markin Hall & Trading Floor Trading Floor  TAM’s Mission &  TAM’s Mission & Investment Policy Investment Policy  Investment Strategy  Investment Strategy  Investment Analysis  Investment Analysis  Competitive  Competitive Advantage Advantage Srecko Ponjavic Todd Sutcliffe Justin Mayerchak  Conclusion  Conclusion CEO CFO COO President VP of Analysis VP of Strategy g  Taurus Team  Taurus Team  Taurus Team  Taurus Team • Integrity Srecko Ponjavic, CEO • Candidness • Value of Hard Work • Positive Attitude • Mentoring • Accountability Todd Sutcliffe, CFO • Aim For excellence • Reward Success • Relationship Building Justin Mayerchak, COO • Personal Connection Introduction Executive Team Taur urus Asse us Asset Manag t Management ement Taur urus Asse us Asset t Manag Management ment MARKIN HALL & AGENDA  Introduction  Introduction  AGENDA  Agenda SECURITIES TRADING FLOOR  Executive Team  Executive Team • Markin Hall • State of the art  Markin Hall & • Securities Trading Floor  MARKIN HALL & educational building Trading Floor TRADING FLOOR • Executive Team • Housing Management  TAM’s Mission &  TAM’s Mission & F Faculty and Faculty of lt d F lt f • Our Mission & Investment Policy Investment Policy Investment Policy Health & Sciences • Investment Strategy  Investment Strategy  Investment Strategy • Will be one of Canada’s • Economic Situation  Investment Analysis  Investment Analysis foremost learning • Value Investing  Competitive  Competitive environments • Industry Selection Advantage Advantage • Investment Analysis • Future home of Taurus  Conclusion • Objectives  Conclusion Asset Management Trading • Back Testing Floor Floor  Taurus Team  Taurus Team  Taurus Team  Taurus Team • Portfolio Return • Real time access to • Competitive Advantage financial markets around • Taurus Asset Management Team the world Markin Hall & Agenda Taur urus Asse us Asset t Manag Management ment Taur urus Asse us Asset t Manag Management ment Trading Floor 1

5/9/2009 STRATEGY:  Introduction  Introduction TAURUS ASSET MANAGEMENT’s  Agenda  Agenda Mission & Investment Policy ECONOMIC SITUATION  Executive Team  Executive Team  Markin Hall &  Markin Hall & Mission: To create an endowment fund to be used to cover the Trading Floor Trading Floor costs associated with the Markin Hall Trading Floor and give  TAM’s MISSION &  TAM’s Mission & students a competitive advantage in the work place through students a competitive advantage in the work place through INVESTMENT Investment Policy hands on experience (managing an endowment fund) POLICY  INVESTMENT • Initial Investment = $500,000.00  Investment Strategy STRATEGY • Primary Objective = Growth of Income ECONOMIC INDICATORS (change from 2007 – 2009)  Investment Analysis  Investment Analysis • Secondary Objective = Capital Appreciation EURO UNION INDIA CHINA  Competitive  Competitive Investment Constraints Advantage Advantage UNEMP 8.5% ( ‐ 9.57%) 7.2% ( ‐ 8%) 4% ‐ 9% • No more than 10% in any one security Rate  Conclusion  Conclusion • Bond funds can consist of up to 15% p 5 GDP GDP 18.93 T $US (-1.5%) ( ) 2.966 T $US (-21.7% ) ( ) 4.22 T $US (-18%) ( ) • Short selling not permitted  Taurus Team  Taurus Team Inflation 1.7% (-10%) .031% (-94.6%) .08% (-88%) • No margin purchases • Real Estate & Private Equity not permitted TODAY SOURCES: International Monetary Fund, World Bank, CIA World Fact book, Asian Development Bank Mission Investment Strategy Taur urus Asse us Asset t Manag Management ment Taur urus Asse us Asset t Manag Management ment STRATEGY: STRATEGY:  Introduction  Introduction  Agenda  Agenda ECONOMIC SITUATION ECONOMIC SITUATION  Executive Team  Executive Team  Markin Hall &  Markin Hall & Trading Floor Trading Floor  TAM’s Mission &  TAM’s Mission & Investment Policy Investment Policy  INVESTMENT  INVESTMENT • 5.1 Million Jobs Lost Since 2007 – Unemployment Rate: 8.5% (April, 09) STRATEGY STRATEGY • Consumer Confidence Index = 25.3%  Lowest Since Inception (1967)  Investment Analysis  Investment Analysis • Unemployment Rate = 7.7% ‐ approx 300,000 jobs lost in past 4 months • GDP Q1 08 = 0.9%, Q2 08 = 2.8&, Q3 08 = ‐ .05%,  Competitive  Competitive • Oil Price = $52.10 ( ‐ 64% since high of $147 per barrel) EXPECTED Q4 08 = ‐ 5.4% ** (Worst since 1982) Advantage Advantage • Natural Gas = $3.801 ( ‐ 65% since high of approx $11.50 per MBtu) • Bail Out Money :$ 10.5 trillion allocated – $2.6 trillion Spent  Conclusion  Conclusion • Consumer Price Index = 1.4% • Consumer Price Index = 1 4% • $1.8 Trillion & $1.4 Trillion Deficit in 2009, 2010 (13%, 11% of GDP)  Taurus Team  Taurus Team • Gross Domestic Product = ‐ 1.7% • Obama budget could force USA to borrow 9.3 Trillion over next 10 years* • NO FINANCIAL BAIL OUTS – only bridge loans ** Source: BEA. Gov * Source: Congress Budge Office (CBO) Investment Strategy Investment Strategy Taur urus Asse us Asset t Manag Management ment Taur urus Asse us Asset t Manag Management ment 2

5/9/2009 STRATEGY: STRATEGY:  Introduction  Introduction  Agenda  Agenda INDUSTRY SELECTION VALUE / TIME HORIZON  Executive Team  Executive Team  Markin Hall &  Markin Hall & From Economic Analysis, Two Conclusions Made: Trading Floor Trading Floor FOSSIL FUELS • Oil, Natural Gas, Coal  TAM’s Mission &  TAM’s Mission & V l Value Investing Strategy I i S Investment Policy Investment Policy • Alberta’s vast resources  INVESTMENT  INVESTMENT • Investors have lost nearly half their wealth since ’07 AGRICULTURE STRATEGY STRATEGY • Long term threat – water availability • Many securities are undervalued because of large systematic  Investment Analysis  Investment Analysis risk, not because of firm profitability  Competitive TRANSPORTATION  Competitive • We have developed a unique qualifying process utilizing VIS Advantage Advantage • Decreased gas prices; highly correlated with economy Time Horizon Specific Strategy  Conclusion  Conclusion ALTERNATIVE ENERGY ALTERNATIVE ENERGY  Taurus Team  Taurus Team • Focus locally, regionally & defensively in the Short Term (2 years) • Massive potential in alternative energies, long term • Diversify internationally & higher beta equities Long Term (5+ years) • Solar Power, Bio Fuels, Wind Power, Hydro Electricity Investment Strategy Investment Strategy Taur urus Asse us Asset t Manag Management ment Taur urus Asse us Asset t Manag Management ment STRATEGY: ANALYSIS:  Introduction  Introduction  Agenda  Agenda INDUSTRY SELECTION EXPECTED RETURN  Executive Team  Executive Team  Markin Hall &  Markin Hall & Trading Floor Trading Floor CHEMICAL Primary Objective: Growth of Income y j • Petrochemicals, Fertilizers, Inorganics, Specialty / Fine g p y  TAM’s Mission &  TAM’s Mission & Investment Policy Investment Policy • Sector has outperformed others since Sept 2007 • Cover costs of trading floor – payout 6.2% annually  INVESTMENT  Investment Strategy • Dividend & Coupon Payments HEALTHCARE STRATEGY  INVESTMENT • Bio ‐ tech, Pharmaceuticals, Life Sciences  Investment Analysis ANALYSIS Secondary Objective: Capital Appreciation • Defensive in nature  Competitive  Competitive • Assumed inflation of 2.56% (10 yr CPI avg +.5%) Advantage Advantage INFORMATION TECHNOLOGY • Capital Appreciation is expected to be 1.75%  Conclusion • Highly correlated with economic conditions  Conclusion  Taurus Team  Taurus Team Overall Expected Return = 10.5 % Year over Year FINANCIAL • World stimulus required • Rules and regulations will change going forward Investment Strategy Analysis Taur urus Asse us Asset t Manag Management ment Taur urus Asse us Asset t Manag Management ment 3