UAF Student Investment Fund celebrates 30-year anniversary

Andrea Miller
907-474-5942
Nov. 30, 2021

The first six UAF Student Investment Fund presidents gather. Front row, from left: Steve Bainbridge, spring and fall '92; Gordon Cooper, fall '91. Back row, from left: Gary Hagestead, spring '93; Greg Krier, fall '93; Dan Flodin, spring '94; Charles Christy, fall '94.
Photo courtesy of CBSM.
The first six UAF Student Investment Fund presidents gather. Front row, from left: Steve Bainbridge, spring and fall '92; Gordon Cooper, fall '91. Back row, from left: Gary Hagestead, spring '93; Greg Krier, fall '93; Dan Flodin, spring '94; Charles Christy, fall '94.

AV̳ College of Business and Security Management this year is celebrating the 30th anniversary of the Student Investment Fund’s creation.

The fund began with $100,000 from the UA Foundation. It has grown to approximately $2.2 million, thanks largely to investment returns. Over its 30-year history, the fund boasts an average annual return of 11.3%, compared to the 10.8% average annual return of its benchmark, the S&P 500. It supports several needs-based scholarships each year.

“When the Student Investment Fund was formed in 1991, it was the first of its kind in AV̳, and it was a relatively novel development in higher education,” said faculty advisor Kim McGinnis. “It represents another way that CBSM has brought innovative and hands-on learning experiences into the classroom.”

Kim McGinnis (second from right) displays the CFA (Chartered Financial Analyst) Institute Research Challenge Awards given to students at the CFA Society Hawaii Conference in February 2017.
Photo courtesy of CBSM.
Kim McGinnis (second from right) displays the CFA (Chartered Financial Analyst) Institute Research Challenge Awards given to students at the CFA Society Hawaii Conference in February 2017.

Students in the Student Investment Fund class, an upper-division business course, gain real-world experience learning the principles of stock valuation and selecting investments. They’re responsible for the day-to-day management of the portfolio, including screening and evaluating investments and monitoring performance of current holdings.

“We use a fundamental analysis approach when evaluating stock,” said Jenifer Garcia, a student in the fall 2021 Student Investment Fund class. “This was very rewarding because I was able to read through financial statements, something I have learned in my accounting courses, and use the information gathered to help evaluate stocks. SIF really helped me see how accounting and finance work together in the ‘real world.’”

Students are responsible for all investment decisions. By overseeing a portfolio of high-quality, U.S.-listed equities, students experience both the growth and volatility of the stock market firsthand. Ultimately, the student fund managers acquire a deeper understanding of the concepts taught throughout their undergraduate and graduate business studies.

Students Nikolai Unruh, Jenifer Garcia and Bryan Sauer visit "The Bean" (officially titled “Cloud Gate”) sculpture during their trip to the 2021 Student Managed Investment Fund Consortium Conference in Chicago, Illinois.
Photo courtesy of CBSM.
Students Nikolai Unruh, Jenifer Garcia and Bryan Sauer visit "The Bean" (officially titled “Cloud Gate”) sculpture during their trip to the 2021 Student Managed Investment Fund Consortium Conference in Chicago, Illinois.

Several donors have supported the fund and the technology needed to stay ahead of the indexed markets. Gifts from McKinley Capital Management, Northrim Bank, Association of General Contractors and the Spirit of AV̳ Federal Credit Union have helped to cover travel to conferences, specialized financial databases and other essentials for running the fund. These resources give students a competitive edge over their peers at other universities and better prepare them for professional success.

Student Investment Fund participants travel to cities such as Chicago, New York and San Francisco to attend investment management conferences and participate in career treks. In October 2021, three students attended the Student Managed Investment Fund Consortium in Chicago, Illinois. This was an opportunity for them to network with approximately 160 students representing 27 colleges and universities, as well as to engage with, learn from and exchange ideas with investment professionals.

“In the future, I envision working more collaboratively with our peers in the natural sciences and engineering, as contemporary investment management practices favor strong technical skills such as computer programming and deep industry expertise,” McGinnis said.

Students Nikolai Unruh, Jenifer Garcia and Bryan Sauer walk across the State Street bridge over the Chicago River.
Photo courtesy of CBSM.
Students Nikolai Unruh, Jenifer Garcia and Bryan Sauer walk across the State Street bridge over the Chicago River.

Real investment dollars have not only allowed students to acquire a better grasp of investing but also benefited other UAF students in financial need. Since its inception, the fund’s earnings have provided more than $135,000 in scholarships and helped 70 UAF students. In recent years, robust earnings provided more money for need-based scholarships, allowing four annual awards of $2,500 each.

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