,

Edinburgh University Trading &

Investment Club

2011
Annual Report

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 A Message from the President and Chairman

Dear Members, Sponsors, Alumni and Friends of Edinburgh,

The academic year of 2010/11 has been a successful year for Edinburgh University Trading and
Investment Club, with a number of new achievements and a large group of students with a greater
knowledge of the financial markets and the corporate world. EUTIC prides itself on being one of
the most well respected societies on campus, attracting many of the university’s most committed
individuals. The iconic weekly meeting has seen record numbers in terms of attendance and on
occasion was "standing room only". We have had the pleasure of welcoming a host of new external
speakers including our sponsors and EUTIC alumni.

The tough financial environment has made investing the EUTIC funds this year a particularly
exciting challenge for students in the 9 industry specific sectors. The fund is now £25,000 and
performance of 9.421 percent in 2010 outperformed our benchmark, the FTSE 100 by 1.32 percent.
Our equities fund benefiting from the fundamental equity research performed by our sector
analysts, has again outperformed the benchmark and fulfilled its role in allowing students to learn
about how to invest without incurring the risk of investing their own capital.

Our flagship magazine "Junior Financier" has grown considerably from its debut last academic year
with many more students contributing. In particular, we would like to thank Dr Mark Mobius, fund
manager of Frank Templeton Investments for writing such an insightful article and supporting the
EUTIC magazine.

The Bulls and Bear’s, Internet-based, virtual trading game was a new addition to the club’s
activities in second semester. It caused a buzz of excitement among members and increased the
direct competition between our sectors.

Last September, we were very proud to welcome the EUTIC bursary recipient, a grant for an under-
privileged undergraduate student who commenced his first year of study at Edinburgh University.
This coming September we also look forward to starting our second bursary. Further to this, we
have recently chosen our charity of the year; Orcadia Movement Limited. A percentage of the
funds’s performance will be donated to further EUTIC’s involvement in the local community and
take the fund’s purpose to the next level.

Despite the year being a very successful year, we have plenty of areas to develop. The fund’s
sectors have been reworked in order to be consistent with the GICS as an industry standard. We are
also in the process of instating a Fixed Income sector and widen our horizons to global equities in
contrast with the UK Equities we have grown so used to. In line with making the fund more
professional, we are introducing an Investment Committee, consisting of committee members,
University professors and local professionals. An Investment Workshop aimed at new members,
preparing them for sector participation, will also be a major part of Semester One teaching.
Another area that we are keen to focus on, is the club’s emphasis on compliance, continuity and
transparency. This is the first EUTIC annual report, to be published on our website (www.eutic.org)
which not only shows our stakeholders the club’s progress but also an up-to-date snapshot of the

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From 26th November to 12 May 2011. This period was selected because the all the equities were purchased in
November and our last committee meeting ended o 12th May.

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EUTIC accounts. On the financial side we are introducing a greater emphasis on budgeting and
financial targets. An as example, we are introducing a series of measures to reduce our expense
ratio2 in 2011. To further these efforts, we have set up an Advisory committee consisting of
dedicated EUTIC alumni to guide current and future committees and ensure a degree of continuity
between academic years and compliance of the clubs constitution.

We would firstly like to thank last year’s committee for all their hard work and dedication to the
club. Their work along with previous committees has contributed towards increasing member,
sponsor and other stakeholder benefits in line with the club’s principals and aims. In addition I like
to thank the considerable support of our sponsors Morgan Stanley, JP Morgan, Linklaters, Barclays
Capital, Schroders, CLSA and Citigroup. The progress made this year could not have been
achieved without them. I would subsequently like to welcome the new committee with whom I will
be working very closely with this academic year. On behalf of the committee I would like to say
how excited we all are to be running such a large and diverse society with the help of our sponsors,
our alumni and friends of EUTIC.

Alice Horsey Marcus Cheng

President 2011/12 Chairman 2011/12

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We are establishing KPI such as cost per member to set up lines of accountability and improve transparency by
breaking down the use of income.

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Club Summary & Mission

Edinburgh University Trading & Investment Club (EUTIC) is one of Edinburgh University's largest
societies; with 360 paid members and approximately 100 attendees per meeting. Established in
1998, EUTIC has been equipping its members with the unique skills and experience required to
pursue careers related to finance and business.

We offer our members the opportunity to learn about finance, investment and current affairs
whether or not they intend to pursue a career within finance. We aim to do this in an environment
that incurs no financial risk to our members and one that actively seeks to help the surrounding
community and use the experience gained to help others.

Activities
Activities designed to attain this objective include:
 Providing the opportunity to network, socialise and debate with like-minded individuals.
 An entirely student-run £25000, investment portfolio returning 9.75% over the last 7 months3.
 Presentations from and networking with professional individuals.
 Publish a 30-page glossy magazine written and created by EUTIC members
 Virtual trading game among sectors aimed at those interested in trading

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From 26th November to 12 May 2011

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Membership Information
Members
This year we witnessed an increase in membership from students reading subjects in the Humanities
and Social Sciences among others. EUTIC hopes to build upon this and target a further diversified
membership demographic. Society members consist of both undergraduate and post-graduate
students and the club continues to nurture a close relationship with Edinburgh University Business
School
Joint with
MBA Business/
Economics Arts
Phd
1st
Masters
Science
Female

Language

4th
2nd Humanities
Business/ Male
Economics

3rd

Alumni
Large numbers of EUTIC alumni continue to be involved with the club and have gone on to pursue
successful careers within industry. Giving presentations to current members and attending our
various networking events, our alumni are an integral part of the society. Places of alumni
employment include Barclays Capital, BNP Paribus, Capital Group, Citigroup, Deutsche Bank,
Goldman Sachs, HSBC, JP Morgan, Macquarie Bank, Morgan Stanley, Phylon Hedge Fund,
Schroders and UBS.

2010 Sponsors

EUTIC is very grateful for the following 2010 Sponsors

Gold:

Silver:

Bronze:

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Core EUTIC

The Main Meeting

Every Thursday EUTIC holds a weekly meeting for one hour which gives members an opportunity
to learn more about finance and current affairs. It gives members the opportunity to research and
present to a large audience on finance topics of their choice. This opportunity allows them to
increase the depth of their own knowledge and share it with the EUTIC community.
External speakers are regularly invited to our weekly meetings. Their presentations are highly
educational and informative. One of the highlights of having such high calibre speakers is the
opportunity for members to network and question them after the meeting. Our past speakers this
year alone include:

Alex Bucchanan - Author of: ‘The Game: How the City Really Works’
Alex Evans - Barclays Capital: M&A
Chris Newman - BNP Paribas: Commodity Sales
John Kay - Economist, Author and contributor to the FT
Kenneth Barker - Partner at Baillie Gifford
Paul Barr - Challenger Group
Shaf Rasul - Entrepreneur featured on BBC’s’ Online Dragons Den

Members are extremely eager to hear from professionals within the industry especially when sent
from a representative from a sponsor. From a sponsor’s perspective, it is a great opportunity to have
direct access to members and increase enthusiasm for the firm they represent.

The Fund

Members are encouraged to actively participate in the management of the EUTIC fund by joining a
research sector. Here they develop their technical skills through researching potential investments,
analysing company information and keeping up to date with news. Members then pitch stocks for
the fund in front of an investment committee. This is a unique opportunity for members to learn
about investment.
EUTIC UK Equities Fund has two main aims: to provide first-hand experience to its members in equity
research analysis and to maximise short term capital growth. The fund invests in both large and small
capitalisation equities in the UK and is equally weighted in its nine sectors. The fund has been raised
solely through company sponsorship. EUTIC places no risk or equity upon its members in any way.
This year EUTIC managed a fund of £15,810 (or £25,000 pro forma for cash recently transferred
from current account).
Standardised Performance

EUTIC measures fund performance to a November year end, as this includes the transaction activity
during March and October.

30 Nov 08 to 30 Nov 09 to 30 Nov 10 to

30 Nov 09 30 Nov 10 12 May 11
68.2% 12.95% 9.42%

FTSE 100 FTSE 100 FTSE 100

19.70% 9.51% 8.10%

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Recent Developments

The Junior Financier Publication

EUTIC published its 2nd edition of ‘The Junior Financier’ glossy magazine this year after such a
successful first edition last year. It gives members and alumni the chance to contribute articles and
share their views on current affairs related to finance and economics and it is an invaluable resource
to our members.
The magazine provides our sponsors with a great promotion device, as it is distributed to all our
members and offers each sponsor an opportunity to utilise its own marketing material to our
members.

Trading Game
This year the club launched a brand new trading game called the ‘Bulls and Bears Trading
Competition’. Each research sector was allocated a virtual fund of $100,000 and traded on an online
platform. The competitive aspect provided a highly motivational and engaging method of teaching
members and ensured exposure to the realities of trading.
This year’s prize was a lunch and workshop session at Schroders in London.

Alumni Networking Event

Last summer EUTIC launched its first alumni networking event held in London. It gave the
committee and alumni network an opportunity to network, socialise with old friends and a chance
for our alumni to rekindle a long-forgotten passion for the club, leading to further involvement by
many alumni.

Access Bursary
Last year, in conjunction with Edinburgh University’s Scholarships and Bursaries Office EUTIC
became the first student run finance society in the UK to establish a Bursary.
The EUTIC Access Bursary is worth £4,000 over 4 years and is designed to support promising
undergraduate students from underprivileged backgrounds. The scholarship is open to home and
international students across all disciplines and will be awarded to those who demonstrate keen
interest in finance and the potential to contribute to the club during their time in university.
The club funded this activity from retained earnings over the past few years and we are pleased to
announce a second bursary commencing this year, which will be paid for on a rolling basis.
EUTIC is extremely proud of this achievement since the students we support would not have had
the opportunity of higher education without our financial support.

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The Future of EUTIC
Whilst EUTIC maintains a high standard of excellence in everything we do, there are always ways
the club can be improved and evolve to further benefit its stakeholders; members, sponsors and the
local community. Here are a few of EUTIC’s plans for the year to come.
Fund Restructuring
The fund’s primary goal is to provide members with investing experience without putting them
under any individual risk. Our secondary goal is to maximise the risk-adjusted return of the fund.
This year the club is diversifying from a UK-only equity fund by adding a fixed income sector and
widening our horizons to overseas investment. The new structure is as follows:

In addition to this, we are expanding the capital within the fund in order to reduce transaction costs,
to increase profitability. We are also facilitating more opportunities for members to pitch ideas and
enable the fund to become a more dynamic tool for learning, development and feedback across the
year. We are confident that the flexible investment mandate, wider choice of securities to invest in,
and a larger fund size will fuel members enthusiasm to learn more about the markets, investment
and the financial world in general, leading to a higher quality candidate for applications and
interviews.
Investment Committee
Over the summer EUTIC plans to create an Investment Committee that will meet monthly to review
sector pitches and decide on the fund’s quarterly strategy. This committee will comprise of selected
EUTIC members and committee, University academics, and invited industry professionals.
Syllabus
While many courses such as mathematics and economics teach skills required within the financial
services industry, many members are keen to increase their practical financial knowledge outside of
EUTIC core activities. An area of EUTIC which we will be expanding this year is the role of the
investment booklet, our society’s handbook, which will be structured into a more educational and
interactive tool. We aim to increase the resources available to members in terms of online resources,
an extensive recommended reading list, and an investment guide which has been tailored for
EUTIC members using various sources that alumni and members recommend. The scope for such
an undertaking is limitless and future committees will have an extensive role in furthering the
development of EUTIC training material as time progresses.

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Financial Targets
In order to manage the long run finances of the club, we feel it would be prudent to introduce
financial targets for future and current committees to abide by. The targets will help committees
cross compare their financial performance across academic years and maximize the funds they have
each year according to EUTIC core principles. These targets include:
 25% increase in AUM in 2011 due to higher sponsorship and a higher proportion of
sponsorship capital allocated to the fund.
 Target Expenditure / Income ratio of 40% down from 62.3% in 2011.
 Target Expenditure / Paid member to £12.00 from figure of £20.60.

Corporate Social Responsibility

In order to further the charitable aspect of EUTIC activities a % of fund dividends will be donated
each year to a local charity chosen by members. This year we are proud to support the Orcadia
Movement, a student led centre promoting teaching, encouraging self-esteem and confidence to
enable greater social inclusion through better understanding and peer support. For more information
see: http://www.orcadiacentre.org.uk/about.html

Annual Report

This year we have created an annual report to further our development in presenting the club to our
members, sponsors, alumni and friends in a transparent and open manner. The report also allows
committees to document and cross-compare performance across academic years.

Non-Executive Board

The non-executive board was established in the 2010-11 term in order to bolster EUTIC’s transition
towards its goal as a professional organization. Their oversight and guidance will add better
continuity by providing a mentoring system for new committees so the transition from year to year
is more coordinated and each committee feels fully prepared to manage such a large and complex
society. The non-executive committee will also assist in compliance by monitoring budgets, bank
balances and practices to ensure the club is abiding by its constitution and it is working efficiently.
The current non-executive board currently comprises of five alumni and three members of the
current committee.

Name Position Employed At

Alice Horsey EUTIC President
Marcus Cheng EUTIC Chairman
Guy Douthwaite EUTIC Treasurer
Michael Fox Graduated in 2000 Goldman Sachs (Investment Banking Division)
Paul Barr Graduated in 2001 Challenger Group (Private Equity)
Tim Ogunlesi Graduated in 2010 Vesta (Management Consultancy)
Plamen Balchev Graduated in 2010 Morgan Stanley in Securities (Rates Sales)
Nick Warner Graduated in 2008 PriceWaterhouseCoopers (Assurance)

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Accounts
In 2010 revenues increased significantly to £12,000 due to a combination of growth in both
subscriptions and sponsorship. Total operating expenses were down significantly as in 2009 We
paid for the first EUTIC bursary which the club had saved up for over the previous few years. New
initiatives introduced each year have caused the expenses of the club to escalate in line with
increased income. To highlight financial prudence this year we plan to re-evaluate the expenses of
the club and in particular, increase the capital added to the fund.

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A Thank You
We would like to express a final thanks to the committee, members, alumni, sponsors, and
Edinburgh University who have continued to support Edinburgh Trading and Investment Club. In
particular, we are especially grateful for the consistent support from our sponsors who are
extremely valuable in the effective functioning and growth of the club.

2010 Committee 2010 Sector Heads

President - Chloe Donegan Karl Baumgarten (Oil and Utilities)
Chairman - Richard Wingfield Adam Brown (Healthcare)
Vice President - Daria Rusanova Iain Oates (Healthcare)
Secretary - Liz Rich Sundeep Chohan (Industrials)
Treasurer - Alice Horsey Neil Haddow (Industrials)
Head of Sectors - Marcus Cheng Runyararo Dengu (Global Emerging Markets)
Company Relations - Silvia Foteva Thebean Gilfillian (Property)
Hristina Vaceva William Grant (SRI)
Social Secretary - Christian Pohl Tom Laverick (Consumer)
Public Relations - Natali Chanany Florin Sabo (TMT)
IT Director - Ivan Trendafilov Alexandru Seran (TMT)
Anton van der Stroom (Financials
2010 Sponsors
Morgan Stanley JP Morgan Chase
Linklaters Barclays Capital
Schroders CLSA
Citigroup

2011 Committee
President - Alice Horsey - president@eutic.org
Chairman - Marcus Cheng - chair@eutic.org
Secretary - Mark Thipe - secretary@eutic.org
Treasurer - Guy Douthwaite - treasurer@eutic.org
Head of Sectors - Anton van der Stroom - sectors@eutic.org
Relations - Craig Brown - c.brown@eutic.org
Nicolas Yeap - n.yeap@eutic.org
Sam Zawadzki - s.zawadzki@eutic.org
Social Secretary - Christian Pohl - social@eutic.org
IT Director - Ivan Trendafilov - it.director@eutic.org

2011 Sector Heads

Evgeni Stoyanov & Remus Pop (Consumer Co-Heads)

Shosh Shetty & Mark Wallace (Financial Co-Heads)
Nick Smith (Energy And Utilities)
Opus Sekibo & Jamie Russell (Industrial Co-Heads)
Miles Agbanrin (Healthcare)
Katka Nguyen & Laurentiu Prodan (Technology, Media and
Telecommunications Co-Head)
Runy Dengu & Gabija Misiulyte (Basic Materials Co-Head)

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Edinburgh University Trading & Investment Club © 2011 | www.eutic.org

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