McGill International Portfolio Challenge (MIPC 2024)

WHAT IS MIPC?

Today our societies and economies need immediate and conscious efforts to transition towards a sustainable future for our current and subsequent generations. The global asset management industry has the ability to make real change through the way it allocates capital across firms and industries. Since 2017, McGill students have brought together industry leaders and university students from around the World to find innovative portfolio solutions to complex socio-economic issues such as the rise of social inequalities and protectionist tendencies and the ESG transition.

The MIPC has evolved into a knowledge forum bridging the gap between academic knowledge and industry practices. Hundreds of investors, actuaries, academics, and university students representing diverse backgrounds come together every year to engage in the case competition, speaker series and various recruitment activities. The MIPC tackles a new grand challenge each year and the dedicated student executive team curates a rich and interactive experience for all our stakeholders.

The MIPC competition is an exceptional opportunity to apply classroom knowledge to a multi-faceted, real-world issue. We award C$50,000 in cash prizes to our winning student teams, a figure that makes us one of the most lucrative university competitions in the World. For industry partners, it is an insightful experience that brings new solutions for timely challenges in their industry, as well as an opportunity to mentor and recruit the next generation of finance leaders.

GRAND CHALLENGE

• Liquidity in Retirement Savings: Since the COVID-19 pandemic, countries around the world have begun to explore liquidity initiatives to allow retirees to withdraw money from their long term savings account, at the risk of draining their long-term pension accounts. How do we balance the need for liquid savings with the need to maintain sustainable pension investments?

PAST GRAND CHALLENGES

The MIPC aims to address complex societal issues in which large, institutional investors play a critical role. Our cases center on solving these issues through innovative portfolio strategies that satisfy the needs of a broad range of stakeholders.

• 2017 Solvency of Corporate Defined Benefit Plans
  The combination of high longevity and low interest rates has made it challenging for corporate pension plans to remain solvent. Should plans pursue riskier strategies in the hope of increasing returns? Is there a portfolio strategy that delivers the promised pensions while minimizing the need for future cash injections from plan sponsors?
• 2018 America’s Pension Crisis
  The majority of U.S. public pension plans are severely underfunded. How can these plans invest their way back to fiscal health? Is there a long-term portfolio solution that solves the underfunding while meeting the needs of municipalities, state governments, taxpayers, and plan members?
• 2019 Climate Change
  Climate change is one of the most urgent global challenges of our time. How do asset managers manage the transition from traditional to sustainable investments? What are some constructive ways we can make a positive environmental impact through our investments?
• 2020 The Rise of Protectionism and Social Inequalities
  We are now seeing countries seeking independence as protectionist narratives are being revived and geo-economic dynamics are changing. How should long-term asset managers invest in the midst of rising protectionism and social inequalities? Can we find innovative portfolio solutions that are both profitable and have a positive social impact?

• 2021 Ultra Low Yields - For long-term asset managers, the combination of ultra-low interest rates and high valuations in equity and real estate markets around the world is creating a strenuous challenge. Amidst the COVID-19 pandemic, how can they design sustainable investment strategies that deliver adequate returns without taking on excessive amounts of risk?

• 2022: The Net Zero Transition: Achieving net-zero is critical to ensuring a sustainable future for current and subsequent generations. The 6th edition of the MIPC gave students from around the world an opportunity to disrupt the status quo through innovative portfolio strategies. How can we put together innovative portfolio strategies that achieve high returns all while satisfying the needs of various stakeholders?
• 2023: Inflation-Resilient Asset Strategies

HOW DOES IT WORK?

• 1st Round: Written Report Teams are required to submit a written proposal to the case. The top 25 proposals move on to the semi- final round.
• Semi-final Round: Revised Written Report & Recorded Presentation Live Q&A 10 min presentation and 15 min Q&A. The top 5 proposals move on to the finals round.
• Final Round: Live Presentation and Q&A Finalist teams are invited to present their proposal live to our panel of high- caliber finalist judges, as well as respond to their questions.

BEYOND THE COMPETITION

• Mentorship Program: Returning to MIPC this year, we offer a mentorship program for our semi-finalist teams. Each student team will be matched to a mentor from one of our sponsors, who will meet with them to give a third-party, independent review of the proposal and offer some advice from their professional perspective.
• Sponsor Info-Sessions: We hold numerous events with our sponsors in a group setting, ranging from traditional recruiting sessions to more creative, thought-provoking events.
• Symposium: Every year, we host a panel of C-Suite and other high-profile executives to engage the broader community on how finance can benefit society as a whole, and not just the few through the lens of institutional investors and of practitioners. Participants get a chance to learn from leaders in institutional finance as well as a live Q&A session.
• Speaker Series: Our Speaker Series is composed of TED-style talks by senior leadership from many of our sponsors. Participants can also ask speakers live Q&A and engage in small-group discussions on the topic.
• Individual Networking Opportunities: In a variety of formats, students have chances to engage with our sponsors on a one-on-one basis, helping them to form deep connections.