TVA giveaway gives UAB students real-world investment experience – archyde
The Green and Gold Fund is looking for Collat students who want to help manage the stipend. No market experience or courses are required to participate. Students interested in participating in the TVA Investment Challenge should contact Daniel Sanabria at [email protected]
Written by: Mia Watkins
Media contact: Savannah Koplon
The UAB Green and Gold Fund, the award-winning investment portfolio run by students at the University of Alabama at the Birmingham Collat School of Business, has received $500,000 from the Tennessee Valley Authority as part of its VAT Investment Challenge program. This donation from TVA will provide Collat students with hands-on experience as they invest the funds on behalf of TVA using long-term strategies learned in class.
“It’s a testament to the resources UAB and the Collat School of Business have given students,” said Daniel Sanabria, Green and Gold Fund advisor and finance instructor. “When TVA came to visit us, they were very impressed not only by the resources available to the students, but also by the students who represented the Green and Gold Fund.
Students will use a top-down approach to investing challenge funds, says Anthony Marino, chief investment officer of the Green and Gold Fund. From there, they will invest the allocation in large-cap domestic stocks, look at the economy, gauge the attractiveness of different sectors, and then decide which companies in attractive sectors are worth investing in. The goal is for students to determine which stocks will outperform others and create a portfolio that will outperform their benchmark – the S&P 500 Total Return Index.
“It’s a really cool way for students to add value, to hone their security analysis skills,” Marino said.
UAB is one of 25 universities participating in the TVA Investment Challenge program. Since 1998, teams of students have been managing money from the TVA Assets Retirement Trust Fund as part of the organization’s broader mission to keep customer rates low. It is one of the largest student-run investment programs in the United States.
“It’s a really exciting opportunity to be able to partner with a university, not only supporting education, but providing an investment opportunity that enhances learning in the classroom,” said Tammy Wilson, Vice President , treasurer and head of risk management at TVA. “What the students do is contribute to TVA’s mission to provide reliable, low-cost power by earning a return on our investment assets that will one day offset the costs of decommissioning our generation assets. This helps us keep our rates low.
In addition to bragging rights, the Green and Gold Fund will receive a share of any earnings that exceed the benchmark, which can be used for scholarships, stipends, or other student resources.
Established in 1998, the Green and Gold Fund enables undergraduate and graduate students to gain real world experience in portfolio management and securities analysis through the application of professional investment strategies and sound risk management principles. The fund currently manages over $600,000 in assets in addition to the TVA challenge funds.
UAB’s participation in the TVA Investment Challenge program is also a marker of the ongoing and strong relationship between TVA, Collat and the Collat Career Center, said Andreia Stechmann, Deputy Director of Employer Engagement at the Center des Collat quarries.
“We are thrilled to see another invaluable experience for our students come to fruition through this valuable partnership,” Stechmann said. “TVA’s investment in the success of our students through the TVA Investment Challenge program will allow Collat students to stand out from their peers and expand their skills and knowledge as they go.” they enter the job market and start their career in the finance sector. We are grateful to be a partner business school and look forward to continuing to build on this great partnership with TVA.