Legislature(2011 - 2012)BARNES 124
03/19/2012 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| Presentation by Uaf Students | |
| SB125 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | SB 125 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
March 19, 2012
3:59 p.m.
MEMBERS PRESENT
Representative Kurt Olson, Chair
Representative Craig Johnson, Vice Chair
Representative Dan Saddler
Representative Steve Thompson
Representative Lindsey Holmes
Representative Bob Miller
MEMBERS ABSENT
Representative Mike Chenault
COMMITTEE CALENDAR
PRESENTATION BY UAF STUDENTS
- HEARD
SENATE BILL NO. 125
"An Act relating to certain vehicles, including trailers; and
relating to motor vehicle dealer advertising, motor vehicle
dealer sales of used motor vehicles, motor vehicle sales
contracts, motor vehicle service contracts, and motor vehicle
sales financing."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 125
SHORT TITLE: MOTOR VEHICLE TRANSACTIONS
SPONSOR(s): SENATOR(s) MEYER
04/12/11 (S) READ THE FIRST TIME - REFERRALS
04/12/11 (S) TRA, L&C
02/02/12 (S) TRA AT 1:00 PM BUTROVICH 205
02/02/12 (S) Moved SB 125 Out of Committee
02/02/12 (S) MINUTE(TRA)
02/03/12 (S) TRA RPT 5DP
02/03/12 (S) DP: KOOKESH, HUGGINS, MENARD, THOMAS,
EGAN
02/09/12 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/09/12 (S) Heard & Held
02/09/12 (S) MINUTE(L&C)
02/16/12 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/16/12 (S) Moved SB 125 Out of Committee
02/16/12 (S) MINUTE(L&C)
02/17/12 (S) L&C RPT 4DP
02/17/12 (S) DP: EGAN, GIESSEL, PASKVAN, DAVIS
02/22/12 (S) TRANSMITTED TO (H)
02/22/12 (S) VERSION: SB 125
02/24/12 (H) READ THE FIRST TIME - REFERRALS
02/24/12 (H) L&C
03/19/12 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
CRAIG WISEN, PhD
Director, Business Administration Program
University of Alaska Fairbanks (UAF)
Fairbanks, Alaska
POSITION STATEMENT: Facilitated the UAF Student Investment Fund
(SIF) presentation by the UAF Students.
DANIEL GRONDAHL
Willow, Alaska
POSITION STATEMENT: Presented the UAF Student Investment Fund
(SIF) as part of the UAF Student Presentation.
JEFF BUE
Fairbanks, Alaska
POSITION STATEMENT: Presented the UAF Student Investment Fund
(SIF) as part of the UAF Student Presentation.
PATRICK "Craig" MILLARD
Juneau, Alaska
POSITION STATEMENT: Presented the UAF Student Investment Fund
(SIF) as part of the UAF Student Presentation.
BRICE MILLER
Soldotna, Alaska
POSITION STATEMENT: Presented the UAF Student Investment Fund
(SIF) as part of the UAF Student Presentation.
MITCHELL TITUS
Fairbanks, Alaska
POSITION STATEMENT: Presented the UAF Student Investment Fund
(SIF) as part of the UAF Student Presentation.
SENATOR KEVIN MEYER
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified as sponsor of SB 125.
ACTION NARRATIVE
3:59:19 PM
CHAIR KURT OLSON called the House Labor and Commerce Standing
Committee meeting to order at 3:59 p.m. Representatives Miller,
Johnson, Saddler, Thompson, and Olson were present at the call
to order. Representatives Holmes arrived as the meeting was in
progress.
^Presentation by UAF Students
Presentation by UAF Students
3:59:32 PM
CHAIR OLSON announced that the first order of business would be
a Presentation by UAF Students.
3:59:55 PM
CRAIG WISEN, PhD, Director, Business Administration Program,
University of Alaska Fairbanks (UAF), on behalf of the UAF,
stated that the students are not here to ask for money, but to
demonstrate how they are earning money. He gave a brief history
of the U.S. financial chaos during the years from 1861-1941. He
related the UAF Student Investment Fund's students attempt to
earn money. The two-part series is a compendium of 75 years of
American finance, beginning at the Civil War and ending at the
outbreak of World War II. During that time, the U.S. endured a
tremendous amount of chaos which typifies the hardship and
resilience that American has gone through. The last twenty
years students have been managing funds on behalf of the UAF
with the goal of providing scholarships for future generations.
These 20 years have been a difficult time period, but not nearly
as difficult as what is outlined in the first 75 years of
American finance. He turned over the presentation to his
students to describe the process and the performance.
DANIEL GRONDAHL stated that he is a senior at the UAF and is
pursuing a degree in finance. He hopes to work for McKinley
Capital in Anchorage. He loves Alaska and wants to pursue a
career in finance and remain in Alaska.
4:02:26 PM
JEFF BUE stated that he is pursuing a finance degree at UAF, but
would like to apply to dental school. He plans on coming back
to Alaska after dental school and would go to school in Alaska,
but there are not any dental schools in Alaska. He lived in
Nome until he was 10-years old. His parents lived in Nome for
ten years and his mother was born and raised in Fairbanks.
4:03:14 PM
PATRICK "Craig" MILLARD stated that he is a fifth-generation
Alaskan from Juneau. He completed his finance degree last
December. He is currently finishing his two jobs during his
stay in Fairbanks, one of which was working with the
supercomputing center and the other with a GED testing
nonprofit. He related he is currently looking for employment
and loves Alaska, but may end up living in other places for some
time. He loves the freedom Alaskans enjoy. He appreciated the
opportunity to testify before the committee.
4:04:29 PM
BRICE MILLER stated that he is a third generation Alaskan. His
grandparents homesteaded on the Kenai Peninsula and own
Kraxberger Drilling, Inc., which is a water drilling operation.
He said he has worked for them for ten years. He came to UAF to
study mechanical engineering, but switched his major to finance
and will graduate in December. He would like to work in Alaska
and then get his Master's degree in Business Administration.
4:05:21 PM
MITCHELL TITUS stated that he was born and raised in Fairbanks
and is working to earn a double major in mechanical engineering
and finance at UAF. He was uncertain of his work path since his
interests are varied. He would like to combine his interests in
engineering, finance, and law, and live and work in Alaska.
4:06:43 PM
MR. GRONDAHL explained that the Student Investment Fund (SIF)
course is structured to provide the best possible opportunities
for students to make money. He highlighted the concept of
applied learning and the fact that the students learn by doing.
He characterized the course as quite an endeavor since students
are dealing with real money. Through applied learning the
students build character and accountability. Each student is
cognizant that the money they are working with belongs to
someone else. Their goal is to manage the money responsibly.
The students also want to grow the fund to help other students.
He explained the core structure, such that the course is
presentation driven and students receive peer feedback to
provide checks and balances and to ensure responsible
investments [slide 1].
4:08:16 PM
MR. MILLER turned to the SIF's mission statement [slide 2]. He
read, "The SIF shall manage endowed funds in a professional
manner to maximize risk-adjusted returns and provide
experiential learning opportunities." He explained that this
basically means the students will try to decrease their risk and
increase their earnings in a manner that creates a structured
learning experience for all students and gives them an
opportunity to expand the funds.
4:09:03 PM
REPRESENTATIVE SADDLER asked whether the SIF is real money.
MR. MILLER answered yes. In further response to Representative
Saddler, Mr. Miller explained the original endowment was
$100,000 by the UAF, but the fund has since grown.
REPRESENTATIVE SADDLER asked whether the responsibility for the
management of the SIF is the finance students' responsibility.
4:09:43 PM
MR. MILLER outlined the SIF's objectives and guidelines [slide
3]. He explained that one major benchmark is to outperform the
Standard & Poor (S&P) 500 on a risk-adjusted basis. He outlined
that the students work on screening valuation of companies in a
bottom-up approach. They work to ensure that the companies they
select have strong fundamentals and balance sheets. Students
try to avoid companies that are on the way in or on the way out.
He related that students seek high liquidity so they can sell
without taking a loss.
4:10:31 PM
MR. MILLER reviewed the SIF's timeline [slide 4]. He explained
that the timeline represents a 20-year period beginning with the
$100,000 principal endowment in 1991. He pointed out that the
students were very conservative in their approach during the
first few years. In 1993, the fund focused on small cap growth
and in 1993-1995 focused on large cap growth. The stock market
did very well from 1997-1999, with earnings per share growth
running approximately 25 percent. In 1999, the SIF program
restructured the fund into three distinct portfolios. In 2001,
the three funds were consolidated back to one portfolio with a
focus on valuation and critical analysis of corporate
governance. He highlighted that the SIF currently focuses not
only on balance sheets, but who owns these companies, as well as
details of ownership and if the company has engaged in insider
trading. He reiterated that this program has been in effect for
20 years and the students have kept it alive.
4:11:25 PM
MR. MILLER spoke briefly about the prior students involved in
the program.
MR. GRONDAHL explained that Mr. Titus will discuss the screening
processes and Mr. Bue will talk about the process of picking a
stock.
4:12:32 PM
MR. TITUS explained each approach to the screening process is
unique [slide 5]. He indicated this includes both the weakness
and strength of the process: the weakness being the sense that
the students do not use any proprietary formula and the
advantage is that each student observes the market differently.
Since their perspectives are unique, each student can view the
market in ways that are different from other traders, which
potentially allows them to see gains they would not otherwise
see. He described a screening, which included screening for
factors in a stock, such as a high return on personal
investments, increasing shares, and a lower price in comparison
to the fundamental value [slide 6]. He explained that if the
criteria used is not too specific it should result in a list of
a broad array of industries [slide 7]. The students use the
human element, which identifies qualitative factors - entirely
up to the individual student - and may include factors such as
insider trading, price shocks, or the internal analysis of the
accounting [slide 8]. Next, the student puts the information
into differences models.
4:14:16 PM
MR. BUE pointed out one of his stocks, the Cascade Corporation,
which was put into the portfolio [slides 9-10]. He
characterized this process as the "meat and potatoes" of the
class. As Mr. Titus previously mentioned, the companies are
narrowed down to ones the students will delve into more closely.
Initially, each student will review the basics, such as the type
of industry, the size, and the direction the company is taking
[slide 9]. Next, the students consider the specifics, such as
the competitors and a comparison between them to determine such
things as whether they are losing or gaining market share, or if
a stock is moving up a slot, which can be a big indicator
[slides 10-11]. The students examine the revenues and this
slide demonstrates the cyclical nature of this company and how
it reacts to the overall economy [slide 12]. He pointed out
that this specific company was a small industrial company. He
also pointed out that in 2010 - on the right of the slide - this
company reacted greatly during the changes in the world economy.
The students try to figure out the reasons for any extraordinary
high or low changes. He explained that they also consider other
measures such as the earnings and forecasts [slide 13]. He
recapped that the students perform due diligence on the
companies to figure out their story and what has affected them.
4:16:25 PM
MR. BUE elaborated on the Cascade Corporation and noted that he
considered reasons for reduced earnings during 2009-2010 and
presented his findings to the class to show what happened and
why his logic made sense [slide 14]. He told the class that he
concluded the company would not be adversely affected overall by
their decisions and would come back even stronger.
4:16:51 PM
MR. BUE provided some of the changes the Cascade Corporation
made in its European restructuring [slide 15]. He explained
that the students spend about 45 minutes on each stock to
highlight the company for the class. Everyone trusts the
research the presenter has taken on the portfolio stock. He
emphasized that students must be honest with their answers and
they do the best possible job since a $30,000 transaction is
riding on the outcome. Sometimes a student will discover a flaw
the night before the presentation and bring forth that
information in his/her presentation so everyone can make the
right decision [slide 16].
4:18:09 PM
MR. BUE pointed out another area students consider is
acquisitions [slide 17]. A company could grow internally or by
acquiring other companies. He highlighted that students get a
feel for the company's growth by examining what decisions the
company is making and whether the decisions make sense [slide
18].
MR. BUE said students also consider the quality of corporate
governance such as the history of lawsuits, any internal
auditing and accounting anomalies, as well as related party
transactions, such as whether the executives are buying
themselves personal jets. These types of considerations help
determine whether the company is ethical [slide 19]. Students
also check message boards for information outside SEC filings.
MR. BUE related that students assess executive compensation to
determine whether the executives are overly compensated, if they
are equivalent to similar industries. Students consider whether
the corporate motivation is aligned with the stockholders'
motivation - whether company incentives are tied to how well the
company performs or if they have different incentives. He
recapped that this process helps students decide whether the
company's goal is aligned to the student's interest [slides 20-
21].
4:19:40 PM
MR. BUE detailed that students review the executive officers
profiles to identify their backgrounds, including which schools
they attended, whether they are buying into the company and if
any unusual transactions appear in the related party
transactions [slides 22-24]. Further, students review analysts'
forecasts, to get a feel for what analysts - who are well paid
to analyze the companies - think about the company [slide 25].
MR. BUE explained that once the qualitative process is completed
students perform their quantitative analysis using several
models and spend a significant amount of time on each company.
Additionally, students will also spend a significant amount of
time on the models during their presentations [slides 26-29].
He related that the short-interest ratio tells what other
investors have determined [slide 30].
4:20:41 PM
MR. BUE summarized that students draw conclusions, including
considering the pros and cons, making sure due diligence has
been done and everything relevant and useful is presented,
including providing graphs and other technical aspects [slides
31-33].
4:21:03 PM
MR. BUE explained that in order to place a company in the
portfolio students must have enough money to do so and must
identify another stock to sell to raise the funds. He pointed
out that the students hold about 40 stocks valued at $650,000.
He described the process students use to identify the stock to
be removed, which is to perform the same due diligence to find
reasons to sell the company [slide 34]. The overall
presentation is about a 45-minute presentation. The students
also field questions. He related that the questions are hard
and students may not always know the answer. Students vote
anonymously on whether to purchase stocks and the trade is
executed in class.
4:22:25 PM
MR. MILLARD reiterated that the paradigm of the class is to
manage someone else's money with the goal being to maximize the
risk-adjusted return [slide 36]. He stated the portfolio is a
well-diversified portfolio that includes 40 positions with a
value of approximately $650,000. The students manage risk
through active waiting based on their benchmark of the S&P 500.
They also have liquidity requirements such as a tilt toward
large cap stocks, such as International Business Machines
Corporation (IBM). He reiterated that the portfolio is tilted
for larger companies. Given that they have taken 12 percent
less risk than the benchmark, the SIF student's portfolio has an
annual return of 6.03 percent. He characterized this as great
since the risk-adjusted metric is a formula that is difficult to
explain, but basically students are taking less risk than the
benchmark yet have generated an above average return.
4:25:00 PM
MR. MILLARD reviewed the performance through 1/31/12, noting the
SIF almost always outperforms the S&P 500. Additionally, the
small stocks, Russell 2000, represent the bottom 2,000 stocks of
the Russell 3000 index and the Russell 3000 index represents the
smaller companies. He pointed out that the SIF students managed
to perform on term with them since the students are using larger
stocks that are inherently less risky.
MR. MILLARD said this does not mean that the SIF students don't
make mistakes and at any given time their choices are a coin
toss. He referred to a graph that shows the calendar year
returns [slide 38]. He pointed out the magnitude of stocks that
outperform has been better than those that underperform, which
offsets any losses. He characterized that at any given time
period it is a 50-50 chance on whether the stocks are
outperforming - beating the benchmark or underperforming.
4:26:34 PM
MR. TITUS referred to a graph that shows the annualized
commissions [slide 39]. He explained that at the beginning of
the SIF program, students had a full-service broker and the
costs were much higher, but due to the advent of online
brokerage services such as E-trade Financial Corporation (E-
trade), the commissions are much less. He emphasized the
importance of lower commissions since one of the easiest ways to
increase the performance in comparison to the benchmark is to
decrease costs.
MR. TITUS related the average holding period over a 12-month
period, which indicates that currently the SIF program sells 75
percent of the stocks, resulting in an average holding period of
about 16 months [slide 40].
MR. MILLER showed the growth of the investment fund versus the
S&P 500 in graph form. He pointed out the end performance
indicates the students beat their benchmark by about $150,000.
He stated that the graph includes money paid out in scholarships
[slide 41].
4:28:04 PM
CHAIR OLSON asked whether they ran their numbers against the
Alaska Permanent Fund Corporation for the same period.
MR. WISEN answered that the Alaska Permanent Fund Corporation
indexes the large companies held in their fund so their
benchmark is the S&P. Since the SIF students actively manage
their funds they have outperformed the Alaska Permanent Fund's
large cap portfolio.
CHAIR OLSON said, "That gives you bragging rights, I think."
MR. MILLER acknowledged that the students have made mistakes and
some stocks have not performed well. He pointed out that
Chipotle Mexican Grill had a 277.88 percent gain while Hewlett-
Packard had a 38.8 percent loss, which was their worst performer
as of 3/2/12 [slide 42].
4:29:29 PM
MR. GROHDAHL summarized that that the presentation has outlined
the SIF students' performance. He said their performance is
solid, but they have not acted alone since various individuals
and firms have supported them [slide 43]. He identified members
of their advisors, including Mr. Bob Gillam, President and CEO,
McKinley Capital Management, LLC; Joe Beedle, President & CEO,
Northrim Bank; and members of the UAF's School of Management.
He also commended legislators for their support of the UA
Fairbanks. He mentioned that Dr. Craig Wisen indicated earlier
that the students are not here to ask for money, but to show how
they make money and to thank legislators and the SIF's Board of
Advisors for their support. He stated that the students
continue to work hard to generate results, which demonstrates
that the advisors, legislators, and university's support is
paying off.
4:30:56 PM
MR. GROHDAHL pointed out their recent developments including the
goal to establish a student-managed real estate investment trust
(REIT), which would be managed by the students under the
direction of Dr. Craig Wisen. The UAF School of Management and
Finance is excited about this project and hopes to have it in
place by next spring or in the fall of 2013.
4:31:32 PM
CHAIR OLSON asked whether students have any emphasis towards
using Alaska-based companies or companies with a significant
presence in Alaska. He also asked whether there is any balance
or percentage used.
MR. BUE answered that each student has different interests and
some students may be interested in a country whose economy is
doing well, such as China. The SIF students can only trade
publicly traded American companies, but some of the foreign
companies trade on the U.S. market. Beyond that the students
don't have any allocation to any geographic area or bias towards
any industry. The companies must be greater than $60 million
and have a basic amount of liquidity. Otherwise students are
allowed to pick their own route, which draws a lot of creativity
among the students.
4:32:55 PM
CHAIR OLSON responded that legislators are precluded ethically
from doing much investing in Alaska companies. He briefly
discussed his portfolio and companies he would have liked to
have invested in, including Alaska Communications (ACS).
MR. MILLARD recalled that ACS is traded on the NASDAQ stock
exchange.
4:34:15 PM
CHAIR OLSON said he wasn't sure if the SIF invested in Alaska's
companies.
MR. BUE answered that part of the reason the students are
outperforming the market is that market movements favored the
small cap companies and the students have exposure to small cap
companies. He pointed out that the S&P is composed of large and
small companies so the students' exposure has gone above the S&P
to some extent. He said the SIF is still driven by market
forces just like everyone else.
4:35:09 PM
CHAIR OLSON asked him to identify any interest in current market
segments.
MR. MILLARD answered that the students use performance sheets
that break the companies down by sector and within that the
students focus on different industries. The students track the
S&P 500 and follow leashes depending on how they are rated. He
pointed out one of the largest areas of interest is technology,
but besides that the students are allowed to engage in any
industry within those specific leashes. He indicated his
favorite industries are technology companies since he has worked
for the supercomputer companies. He said the fun of working for
the SIF is the program has prerequisites to ensure students
understand basic premises of finance, however; there is a broad
array of people coming into the program. He pointed out that
Mr. Titus mentioned he was in a mechanical engineering program
interested in economics, but he, himself, is majoring in
finance. He acknowledged other students in the program are more
interested in the medical field and that health care has
previously been one of the favorite sectors. He recapped that
students have leeway to pick companies that reflect their
interests.
4:36:51 PM
REPRESENTATIVE SADDLER remarked that the UAF students have given
them a great presentation. He related his understanding that
the SIF began with a $100,000 appropriation and is now $650,000.
He asked where the SIF is kept.
MR. TITUS answered that the funds reside in an E-trade account.
When the fund reaches a certain percentage above the performance
the students distribute scholarships.
4:37:34 PM
REPRESENTATIVE SADDLER asked whether the program is class based
or a club.
MR. TITUS answered it is a class. In further response to
Representative Saddler, Mr. Titus answered that the students are
aware of how much work the other students put into their
presentations. The students have to convince their peers to buy
or sell the stock.
4:38:21 PM
MR. MILLARD said he would not say everyone has a grade point
average (GPA) of 3.9, but the students must be approved to make
sure they meet the prerequisites. He did not view the class as
one that requires pure rote memorization, but rather as one
which feels more like a job. He reported that a couple of times
someone has been late to class. Not only does that student feel
like he/she has let class down, but the student receives an
incentive not to let it happen again. Further, these students
feels like they have let themselves down. He reiterated this
class does feel like a job. Students don't just have their own
interests in mind to earn grades, but the more fundamental
interests are to provide scholarships for future students and
learn to be good money managers.
4:39:38 PM
MR. BUE pointed out that none of the SIF students know the
scholarship committee members or the recipients. He explained
that the scholarships are not limited to SIF students. He
recapped that the scholarships are totally separate from the SIF
class. The SIF students know earnings are used for
scholarships. In response to Representative Saddler, after
conferring with his professor, Mr. Bue said the scholarships are
available to all students.
4:40:20 PM
REPRESENTATIVE JOHNSON likened the scholarships to dividends.
He asked for the amount of the dividends paid out.
MR. MILLARD suggested that last year the SIF payout was
approximately $10,000. He pointed out an earlier slide added
the scholarships back in and he said it isn't as though the fund
pays $50,000 a year. He related his understanding that the
amount would be between $10,000 and $50,000. He offered to
provide the total.
DR. WISEN explained that the payout requirements for the fund
require that the SIF exceeds the S&P index. During the period
2001 to 2009 the total return was not in excess of the S&P
index. He elaborated that when the fund management does not
hold the principal, students are prohibited from distributing
scholarships, but once the threshold is reached, which happened
two years ago, the program began distributing funds. He said
that the fund contributed up to 50 percent of the excess. Last
year the distribution was $10,000 and he thinks going forward
the program will distribute another $10,000. He said the
scholarships are given out to the UAF at large, but most of the
scholarships have gone to school of management students.
4:42:30 PM
REPRESENTATIVE SADDLER asked whether the fund ever fell below
the initial capitalization of $100,000.
DR. WISEN answered no.
4:42:52 PM
REPRESENTATIVE SADDLER asked whether the students have any
personal liability in case they lose money.
MR. TITUS answered that everyone votes, but they hold students
accountable in terms of peer pressure. The students call
previous students to let them know their stocks didn't perform.
4:43:22 PM
REPRESENTATIVE SADDLER answered whether the SIF ever resets. He
acknowledged that new investments are brought forward, but he
wondered if the slate is ever wiped clean.
MR. TITUS answered no.
4:43:38 PM
MR. BUE related that most of the students have only been in the
program for two or three semesters. He pointed out one
interesting aspect is that there is some overlap between
students since the course is a two-semester course. The
students mentor new students. He pointed out that Mr. Millard
was a second-semester student last year and this is Mr. Miller's
first semester. The second-semester students help with the
continuity of the program. During summers the SIF is not
actively managed, but students still pay attention due to their
personal interest in the fund. In some instances, if they
notice something odd happening, students will bring things to
Dr. Wisen's attention.
4:45:03 PM
REPRESENTATIVE SADDLER commented that he was once in an
investment club. He encouraged the students to continue.
4:45:18 PM
REPRESENTATIVE THOMPSON asked for the frequency the students
review the portfolio.
MR. MILLARD responded the course is presentation-based the class
consists of 15-17 students who give two presentations, so
students have approximately 34 opportunities to look at a
security and analyze it. He offered his belief that the
rigorous review and structure is one reason the portfolio has
done so well. He explained that Dr. Wisen is the stop-gap
measure so if something awry the professor can step in and take
action. He concluded that the SIF portfolio is very much a
hands-on effort.
4:46:55 PM
CHAIR OLSON asked whether the SIF has any stock held since the
beginning.
DR. WISEN answered that the longest stock was held about four
and a half years.
MR. MILLER added that the students give another presentation on
top of the other two presentations, which is market news. They
scan the largest winners and losers to ensure their stocks are
not on the list. He explained that each morning the students
get a print out of their stocks and review the portfolio for
movement. In response to a question, he answered that they
occasionally have surprises.
4:48:00 PM
REPRESENTATIVE HOLMES related that it seems like a great
opportunity and training. She expressed interest in the
potential to get into the real estate development, especially
since she is a real estate lawyer. She hoped the students would
brief the legislature as to how that project works out. She
asked if anyone was interested in that project.
MR. MILLER answered yes.
4:48:43 PM
REPRESENTATIVE JOHNSON asked who is best at the stocks [the
students looked to one student, not verbally identified.]
MR. BUE answered he has not invested any of his own money.
4:49:06 PM
REPRESENTATIVE SADDLER asked whether this is a popular class.
DR. WISEN said that it is a difficult class that involves a lot
more work, which is widely known. He said that lazy students;
do not sign up. He approves of anyone who wants to take the
class and he makes sure they understand the main criteria of the
heavy workload, plus the students must have a sincere desire to
help future students. When students demonstrate those two
things, Dr. Wisen makes sure the student has a place in the
class. Currently there are 16 students enrolled across both
semesters. He suggested if more significant interest were to
arise that he would likely split fund up and run two class
sections. In response to a question, he answered female
students are involved and although the field is predominately
male about one third of his students are female. He remarked he
has not seen any investment performance differences between the
genders.
4:51:09 PM
REPRESENTATIVE SADDLER thanked the students.
CHAIR OLSON said he was delighted with the presentation.
4:51:58 PM
MR. WISEN commented that 1867 represents one of the best
investments our policymakers have ever made - which was $7.5
million to purchase Alaska. He said that long-term decisions
really reflect well.
The committee took a brief at-ease.
SB 125-MOTOR VEHICLE TRANSACTIONS
4:52:50 PM
CHAIR OLSON announced that the final order of business would be
SENATE BILL NO. 125, "An Act relating to certain vehicles,
including trailers; and relating to motor vehicle dealer
advertising, motor vehicle dealer sales of used motor vehicles,
motor vehicle sales contracts, motor vehicle service contracts,
and motor vehicle sales financing."
4:53:55 PM
SENATOR KEVIN MEYER, Alaska State Legislature, stated that the
committee previously heard the companion bill introduced by
Representative Thompson and passed it with six do passes and
that bill rests in the House Rules Committee. He related that
SB 125 is a consumer protection bill to assist the consumer in
finding and purchasing competitively priced vehicles. He
explained that this bill basically updates the statute referred
to as the Alaska Auto Dealers Practices Act. It clarifies
several provisions that were unclear to the consumer and to the
dealers who were trying to abide by the law. The bill was
drafted closely with Ed Sniffen, the consumer protection
attorney, in the Department of Law. He offered his belief that
the bill strikes a balance between the consumers, dealers, and
the Department of Law.
4:55:41 PM
CHAIR OLSON agreed the committee heard the companion bill, but
said the bill still would receive the proper vetting.
[SB 125 was held over.]
4:56:11 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
4:56 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| UAF SIF Juneau Bios.pdf |
HL&C 3/19/2012 3:15:00 PM |
UAF Student Presentation |
| UAF Students Power Point Presentation to HL&C 3-19-12.pdf |
HL&C 3/19/2012 3:15:00 PM |
UAF Student Presentation |
| SB125 ver B.pdf |
HL&C 3/19/2012 3:15:00 PM |
SB 125 |
| SB125 Sponsor Statement.pdf |
HL&C 3/19/2012 3:15:00 PM |
SB 125 |
| SB125 Fiscal Note-1-2-020312-LAW-N.pdf |
HL&C 3/19/2012 3:15:00 PM |
SB 125 |
| SB125 Sectional Analysis.PDF |
HL&C 3/19/2012 3:15:00 PM |
SB 125 |
| SB125 Supporting Documents-Letter AADA.pdf |
HL&C 3/19/2012 3:15:00 PM |
SB 125 |