Frank Reilly: The Greatest Life

Reilly never aspired to be a career administrator. He was always a researcher and teacher at heart. So in 1987, he decided it was time to go back to the classroom to teach elective courses, such as Security Analysis, Fixed Income Analysis, and Portfolio Management. As a complement to his teaching, he authored two books: Investment Analysis and Portfolio Management (ten editions) and Investments (six editions.)

And then there was AIM (Applied Investment Management), the course that would define Reilly’s legacy. Conceived by Reilly, Malpass and John Affleck-Graves, former finance chair and current University executive vice president, the class was launched in 1995 to give top students — undergraduates in the fall and MBAs in the spring — the opportunity to act as stock analysts and portfolio managers using real money. The class currently man- ages $10.5 million of the University’s $10 billion endowment.

“We wanted to train the next generation of top money managers and do it the right way with the right fundamental skills and aptitudes,” Malpass says. “So it wasn’t just how to do basic security analysis. It was also learning every part of the work. This is a very demanding class. It takes a lot of time for both the students and professors. But we wanted to look at the students holistically to help them advance.”

Over the 20 years of the class, the fund has returned 11.7 percent annualized versus 8.6 percent for its primary benchmark, the Standard & Poor’s 500 Index. “That’s extraordinary,” says Malpass. “That would put the AIM fund in the top 1–2 percent of all portfolios.”

He credits Reilly for helping the program become widely regarded among business schools and on Wall Street. “Frank is nationally known as a real leader in the profession, a revered statesman,” he said. “So to have him as the common thread through the whole thing is incredible. Because of Frank, AIM is one of the great stories in higher education in the past 30 to 40 years.”

AIM student Allison Fachetti (FIN ’15) is well aware that AIM will likely have a significant impact on the rest of her life and that doors will be opened. “If you want to do investment management or equity research, it’s expected that you do AIM,” she said.

Reilly honored Fachetti by recommending her for a CFA scholarship, which will cover the cost of the three-part test. “He told me, ‘If you know you want to do investment management, go after that. If you want to do research, take the CFA. You’ll be in demand, you’ll find a place,’” she says. “He just cares so, so deeply.”

And not just about finance, as Reilly taught his students. On a trip to San Francisco, where AIM students gleaned career information from top movers and shakers in finance, Reilly gave them advice from the heart. “He told us, ‘No one mentions this, but the most important decision you make in your life is finding your spouse,’” Fachetti recalled. “He told us how lucky he was to be married to Therese for 56 years. And that at the end of the day, work is important, but family is so much more important.”

With his retirement on June 30, Reilly plans to enjoy more time with his family. He and Therese have four children — Frank III, Clarence II, Therese (’85) and Edgar (FIN ’87). The Reillys also have seven granddaughters that delight them to no end. And Therese came up with a brilliant way to ensure maximum time with them. “We bought a home in Orlando because she was convinced that with Disney World so close, we’ll see the girls more often,” Reilly says. “And it’s worked out fairly well.”

Retirement will also mean travel with his wife, golf and remaining on several corporate boards because that world fascinates him.

And even if this statesman is officially departing, his gratitude will endure for Notre Dame and its role in the greatest life he could imagine.