Portfolio investment for nonprofit. (universities)

Transcription

1 Portfolio investment for nonprofit organizations (universities) Donetsk national university of economics and trade named after Mykhailo Tugan-Baranovsky Supervisor: Yermak Svetlana Presenter: Ivanchuk Kateryna

2 Key trends Project summary University financial autonomy Using of market-based instruments in the universities activities The need for additional university funding Business concept Financial goal Potential sources of financing Assets management by the portfolio investment EBITDA: UAH, ROI 13,84% Assets management companies Business model Intelligence and competence development

3 Problems insufficient funding for university development Free using inability of university assets Solutions to problems The absence of grants for research and scientific projects 1. Organizing training center and business school 2. Research commissioned by companies Faults -Low economic efficiency - Unstable cash flow Advantages -Use of existing material and intellectual base

4 Proposed solution University assets management by the portfolio investment Obtaining additional financial resources for the development of the University The upgrade of university according to the world standards and trends Initiating and promoting researches Increasing University autonomy

5 Technology Obtaining a license for providing investment Access to the Ukrainian and international trading platforms The analysis of financial markets and the formation of the investment profile of the University The conclusion of a cooperation agreement with the University Formation of the investment portfolio of the University Portfolio management

6 Market opportunity 325 universities State order PPL Self payment PPL Average education cost 8000 UAH per year The average volume of financial resources revenues UAH per year 1sryear 6 universities UAH + 15% per year Recommended investment range UAH per year

7 Competition Banks Financial instruments: bank deposit Assets management companies Financial Instruments: Securities, bonds, precious metals, real estate insurance, bank deposits Free market niche Assets management of non-profit institutions Law of Ukraine "On Higher Education" provides financial autonomy to Universities Existing AMC does not specialize in working with non-profit organizations Financial Instruments: Diversified investment portfolio - Bank Deposit Government bonds Precious metals Securities Portfolio structure is flexible, formed in accordance with market conditions

8 Business model Intelligence and competence development Ability to staff training and self education Dynamic capabilities Internal competence - High intellectual start-up potential - An effective system of motivation External competence - Wide access to trading platforms - Flexible investment portfolio

9 Financial projections Estimated investment assets UAH Estimated weighted average investment return 30% Company fee 12% from client`s income Total company income UAH Total costs UAH (including wage costs UAH) EBITDA UAH Taxes and compulsory payment UAH Net profit UAH Return on investment 13,84%

10 Road map 2016 year universities of Kryvyi Rig, Kyiv, Lviv, Dnipropetrovsk, Kharkiv year engagement to the invest programs 3 new university, expanding the range of investment for existing portfolio. Long-term perspective engagement to the invest programs all big universities, creating invest programs for other noncommercial organizations

11 Fund raising Total investment amount UAH Main cost items Cost item Fixed assets (including intangible assets) The costs of training and salaries Marketing and PR costs Other costs Amount UAH UAH UAH UAH Potential investors: ICU investment management Ltd., Altus assets activities Ltd., Assets management company RaiffaizenAval Ltd., Assets management company Upicapital Ltd.

12 The project team The core team: Yermak Svetlana PhD in Economics, associate professor Ivanchuk Kateryna PhD student of the Department of Enterprise Economy Invited financial analysts and advisors Government coordinator