Investment management program takes stock in students
Sacramento State’s College of Business Administration and University Enterprises Inc., are collaborating on a new initiative that will allow students to receive real-world investment management experience.
The initiative, called the Student Investment Management Program, gives business students the opportunity to use analytical tools learned in the classroom to research potential investments, make investment decisions and monitor and report on the performance of a $250,000 allocation of UEI’s investment portfolio.
“Such a student-run investment fund will provide the real-world trading environment and competitive advantage to our finance students,” says Sanjay Varshney, dean of the College of Business Administration. “Our graduates already fuel the economic engine for the region and fill the senior ranks of portfolio managers at Calpers and CalSTRS – the two largest pension funds in the country. The student-run investment fund will allow our students to be even more valuable than ever to the financial community and employers.”
Varshney said the idea came from UEI executive director Jim Reinhart, who had experience with a similar program when he worked at Cal Poly San Luis Obispo. After working out details with Varshney, Reinhart presented the program to the UEI board of directors for approval.
“They understood that a program like this not only helps students learn, but strengthens ties with the business community through interaction with investment managers and with companies that the students are evaluating for investment,” Reinhart says. “And after looking at other programs, they realized that the students’ hard work often provides returns that outperform professional investment advisors. The board is looking forward to hearing the students’ report on their results.”
UEI will provide an investment management fee to the program and a portion of future investment earnings will be used for student scholarships.