Through investment class, students experience real risk and real reward
It's a Monday afternoon in early 10月 on the campus of Millikin University. Classes and activities are off and running as the beginning of another busy week takes shape. 在同一时间, several business students are sitting in ADM-Scovill Hall tracking worldly events that could affect the almost 50 domestic equity stocks they are actively managing.
These business students are not just taking part in a prototypical college class – this is an investment management group – the Tabor Investment Portfolio (TIP).
The Tabor Investment Portfolio is run by a group of students in Millikin's 泰伯商学院 under the guidance and supervision of the 董事会. The students come together to not only study the current economic landscape, but each student provides a presentation of a particular company that they recommend investing in. 学生们分析投资组合, evaluate the securities of the portfolio and they decide if they should buy new stocks or sell them.
The Tabor Investment Portfolio arrived at Millikin in 2010 when the Millikin Board approved an initial funding of $100,从Millikin的确认项目筹集的资金中拨出的000. 自2010年以来, the portfolio size has grown consistently and slightly outperformed the 罗素3000 benchmark (a capitalization-weighted stock market index) over longer time periods. The Tabor Investment Portfolio's current asset value is approximately $500,000 in size.
“当董事会承诺拨款100美元时,在2010年向泰伯投资组合注资1万美元, it sent the signal that Performance Learning in the Tabor School was serious business,RJ Podeschi说, 塔博尔商学院的临时院长.
带领学生的是1986届的指导老师丹尼尔·艾伦. Allen is a retired chief investment officer who previously worked for State Universities Retirement System of Illinois and Illinois Power Company.
"The portfolio is managed in compliance with the Investment Policy approved by the Millikin University Investment Committee,”阿伦说. The 罗素3000 is comprised of 11 sectors which all are represented in the Tabor Investment Portfolio. "The students incur real time experiences of the volatility of the markets," Allen noted. "The portfolio reflects both the successful investments purchased as well as disappointments which can and do occur."
Through this opportunity, students have the privilege of experiencing real risk and real reward. 是的, 就像任何投资一样，有赔钱的风险, but the students are being evaluated by the Millikin 董事会 on their ability to beat the market index – like a fund manager.
"The course reflects the opportunities and challenges of actively managing a portfolio with the goal of outperforming the 罗素3000 benchmark net of investment fees,”阿伦说. "The experience of managing a pool of assets should benefit the students as they move into their careers. It should also benefit the students by providing skills in managing or monitoring their individual investment portfolios."
One of those students is senior finance major Julia Zmucki, of Lockport, Ill.他还担任塔博尔学生咨询委员会(Tabor Student Advisory Council)主席. 对于Zmucki, the experience has been great because she is currently studying to be in the financial investing industry.
"All that I am doing in the class is giving me the opportunity to work with what I could be working with in the future,”Zmucki说.
在投资决策方面, Zmucki说这个课程着眼于稳定性, 盈利增长, 负债与股东权益比率, 股息和市盈率. "Some of the most important learning experiences are that a stock changes so much that you will never be able to predict what is going to happen. I also learned that one month can change the portfolio a lot," she said.
Among the many things that changed the outlook of the portfolio has been the 新型冠状病毒肺炎 pandemic. Investment practices during the pandemic have shown that markets are unpredictable over a short time period. "It is important to maintain a longer-term time period frame of mind,”阿伦说.
The largest holdings currently in the Tabor Investment Portfolio, as of Sept. 30, 2021, are Microsoft, Apple, Alphabet, United Heath Group and Amazon. 根据艾伦, the information technology sector has performed strongly as well as the consumer discretionary sector (Nike, 麦当劳). 能源行业已经挣扎了很长一段时间, 然而, 过去一年, 它一直是表现最好的. Other sectors that have not outperformed the index over longer time periods include the utilities, 日用消费品和房地产行业.
“市场在短期内可能会波动, 但是随着时间的推移, 质量的投资, 如在适当的时候购买, have a high likelihood of outperforming the stated investment benchmark,”阿伦说.
The portfolio experience is incorporated into the existing three-semester Finance course sequence through the 泰伯商学院 curriculum. The experience comes off as unique because it helps the students connect the dots between what they learned throughout their freshmen, 大二和大三.
基于结果, the students are getting an all-encompassing view and understanding of the financial market.
"For students to consistently do as well as or better than the benchmark index, 罗素3000, 在未来10年, 是绩效学习计划的真实证明吗,”Podeschi说. “看着基金突破500美元,000屏障是一个重要的里程碑, and the good work of all the students involved over the years should be celebrated."