TVA Expands Investment Challenge Program to Area Universities
January 29, 2003
Positive results from TVA’s Investment Challenge program involving college finance students have prompted expansion of the program to include six additional universities in the TVA region and an increase in the total amount of investment funds from $1.9 million to $10 million.
The additional schools will join 19 universities already participating in the program. The universities were selected because they are located in the Tennessee Valley and have strong degree programs in finance.
“The Investment Challenge program has been a success because of the students’ performance,” says TVA Chief Financial Officer David Smith. “They have shown outstanding financial analysis skills, and they have made excellent stock selections. We also have a group of very dedicated professors that work with the students to make the program a success.”
From 1999 to 2001, students in the Investment Challenge Program outperformed the S&P 500 by 5 percent and have continued to outperform the index during 2002.
TVA will commit a total of $10 million from its Nuclear Decommissioning Trust Fund to the program to be managed by the 25 universities. The trust fund was established in 1996 to meet the financial obligations involved in retiring TVA’s nuclear units.
The six new schools will each receive $400,000 to invest. The remaining 19 universities will receive $300,000 each to add to the $100,000 they already have.
Schools added to the program are Vanderbilt University, Belmont University, Lipscomb University, and Trevecca Nazarene University in Nashville; Union University in Jackson, Tennessee; and Christian Brothers University in Memphis.
Investment Challenge students follow investment guidelines established by TVA that allow them to gain practical experience in managing a portfolio while ensuring that their investment practices are sound. TVA representatives monitor the investment process, and a faculty member at each university oversees the school’s program.
TVA is the nation’s largest public power producer and is self-financed. TVA provides power to large industries and 158 power distributors that serve 8.3 million consumers in seven southeastern states.
Media Contact:
Michelle Chang, Knoxville (865-632-8108) or TVA News Bureau, Knoxville (865-632-6000)
