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About the Southwest Securities Financial Markets Center

Jan. 11, 2005

BACKGROUND

Philip M. Dorr & Alumni Endowed Investment Fund

Established in 2001 with a $250,000 endowment from alumnus Philip M. Dorr, the real equity portfolio is actively managed by select Baylor Business students.

With a current value of $6 million, the fund is one of the largest student-managed portfolios in the nation.

The objective of the investment fund is to beat the performance of the Standard & Poors 500.

Distributions from the fund are directed toward student-athlete scholarships for business majors and MBA students with an interest in investing.

The investment philosophy emphasizes fundamental analysis with an emphasis on understanding the story behind each firm.

Portfolio Practicum Class

Baylor Finance students in the Portfolio Practicum class manage the $6 million Philip M. Dorr & Alumni Endowed Investment Fund. It is one of the largest student-managed portfolios in the nation.

A maximum of 15 students are selected for the class per semester.

It is a graduate level class. The students are selected MBA candidates and may, depending upon availability and merit, include a few seniors in Finance.

Brian Bruce is the main instructor of the Portfolio Practicum class that manages the fund. He is director and Head of Equity Investments for PanAgora Asset Management. He has 20+ years of asset management experience. He currently manages $17 billion in assets. He teaches via video-conferencing from his office in Boston. Baylor is one of very few universities with an instructor who is an active asset manager. The co-instructor is Dr. William Reichenstein, CFA, the Pat and Thomas R. Powers Chair in Investment Management.

The students in the class make all investment decisions. The only time the instructor is involved is when there is a tie in the student voting.

Southwest Securities Financial Markets Center

The $900,000, state-of-the-art financial trading facility, located at the Hankamer School of Business at Baylor University, is designed to create a boardroom type atmosphere, but have the functionality of a classroom, a videoconferencing suite and a place for students to conduct financial research.

Center Uses

ò Designed to bring the markets to students and the students to markets

ò Classroom for the Practicum in Portfolio Management course for the student managed Philip M. Dorr & Alumni Endowed Investment Fund, currently valued at approximately $6 million

ò Resource for real-time financial market information from around the world

ò Resource for equity market analytics

ò Hands-on financial market training and accounting and finance labs

ò Meetings and small conferences requiring the latest in audio-visual capabilities including video conferencing

ò Treasury workstation simulations

ò Currency and/or derivative trading simulations

Center Resources

Special information resources that offer access to the latest tools and data used by finance practitioners around the world and available only through the Center

ò Bloomberg Professional Service - a global data, news and analytics information resource covering the following market sectors: Government, Equity, Mortgage, Money market, Municipal, Commodities, Indices, Currencies, and Derivatives.

This is a widely-used and well-respected resource in the financial community. Students will be able to utilize Bloomberg for financial market research and analysis. Additionally, they will be able to earn the Bloomberg Global Product Certification, which will enhance their knowledge of the financial markets and increase their marketability in the financial job sector.

ò Thomson ONE Analytics - a suite of integrated financial tools, providing access to highly rated equity research, market data, news and analytics. It includes access to quotes, monitors, news, research, notes, tickers and charting packages from highly respected sources. It is one of the premier resources for equity market professionals, providing access to a full picture of the equity markets.

ò Morningstar Research Reports - Morningstar provides independent research reports on most large-cap and many mid-cap stocks.

ò CFA Institute webcasts - the webcasts allow students to keep up with current best practices in the investment industry, and gain access to leading investment practitioners, innovators, and thinkers.

ò Barra on Campus - provides portfolio risk management software that allows students to analyze and understand the variables contributing to a portfolio's risk and return, generate expected returns based on macroeconomic forecasting, and use screening criteria to build optimal portfolios.

Technology and Facility

ò 41 cents of every dollar spent on the Center was specifically for technology

ò Custom designed and built, horseshoe shaped conference table seating 20 people

ò Each seat is equipped with a wired microphone, as well as a Dell Latitude notebook computer, wired & wireless network access and power outlets

ò Three seats, one at each end of the table and one in the middle, are equipped with multimedia connectors for displaying images and audio from a student's laptop onto any display device in the room

ò The room is equipped with both speech and media sound reinforcement with assisted listening capabilities for the hearing-challenged

ò Audio recording capabilities allow for archiving class sessions or meetings. With the future purchase of additional equipment, this capability will be extended to video as well.

ò Two wireless, lapel microphones are available for faculty and guest speakers to use.

ò Instructor's Console

o Equipped with a Dell Optiplex computer and AMX 17" Modero touch panel (panel serves as the means for accessing the room's control system and acts as the monitor for the Optiplex)

o Document camera for displaying non-digital images (books, handouts, overhead transparencies, objects) on the room's display devices

o Input jacks for connecting a laptop's video and audio to the room's display devices

o Ability to annotate any image that is on the Modero panel and save it to a file for distribution at a later time

ò Reception Desk - with a Dell computer and flat panel monitor

ò Two large student workstations - each with two Dell computers and two flat panel monitors

ò Two small student workstations - each with a Dell computer and two flat panel monitors and a Hewlett-Packard laser printer/fax/scanner/copier device

ò AMX control system for easy coordination of all multimedia resources in the room

ò Tandberg videoconferencing system with 3 cameras located in the room

ò Two 61" NEC plasma displays

ò Two NEC rear-projection LCD projectors

ò One 12', tri-color, graphical, curved Trans-Lux Jet Ticker display - can be programmed to do streaming stock quotes or custom messaging

ò One 6' x 4' Trans-Lux DataWall display - can also be programmed to display stock quotes, market data and custom messaging

ò There are 25 curves (arcs) that are architectural elements that come from a single center point which is located at the center point of the dome.

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