Student Investment Fund fares well

Submitted by Faith Henry
Phone: (907) 474-7253
01/13/05

The Student Investment Fund has performed well for the University of Alaska Fairbanks School of Management students who run it, with promising year-to-date earnings. The funds return for the nine-month period as of Sept. 30, 2004, was 10 percent. This compares favorably to the S&P 500 return of two percent for the same period. For the 10-year period ending Sept. 30 04, the SIF return was 12.5 percent, whereas the S&P 500 return was 11.1 percent.

"The performance of the fund relative to the S&P 500 is encouraging," said Craig Wisen, finance professor and adviser to the SIF team. "This superior performance over year-to-date and 10-year measures is due to hard work, due diligence, and fortuitous timing. Their success is linked directly to diversification, research analysis, critical examination of corporate governance, and proper investment strategies."

The experience of investing student-endowed funds during a bear market has furthered students’ education and provided them with valuable experience for future careers in finance.

"A return greater than the S&P 500 provides the students with a sense of accomplishment when considering that Standard and Poor’s Index reflects the performance of the 500 leading companies in the U.S. The S&P 500 index uses a capitalization-weighted measure based upon the proportional size of each company,"? said Wisen.

Since its initial investment of $100,000 in 1991, the fund has consistently followed the market of the S&P 500, and its associated growth and volatility.

The goals of the fund include giving students investment experience and independent research and analysis to provide select diversification. Ultimately, the students will attain a distinctive education through investment analysis. The work is completed in two three-credit courses for finance majors. Acting as managers of the fund provides students with a unique blend of experience, academics, and applied learning.

"My time working with SIF has been a great resume builder," said student Letoya Ward. "It has been more beneficial than any other work I’ve done as a student and an incredibly opportunity."

For more information contact Faith Henry, public information officer at 474-7253 or faith.henry@uaf.edu.