The Student Managed Investment Program: A Guide for Small, Not-for-profit, Private Schools

Abstract

The student managed investment programs accord students the unique opportunity to gain “real world” investment experience, and their growth in numbers and size provides evidence of their educational efficacy. This study provides a qualitative analysis of the operations and performance of a small, not-for-profit, private university’s (the University) student managed investment fund. Our analysis begins with a discussion of applied “best practices” from both start-up and ongoing improvement perspectives. Evaluative emphasis is given to relevant topics that include undergraduate – graduate course curriculum, student–board engagement, funding needs, and sources as well as the importance of implementing and maintaining effective internal controls. In addition, recent events have highlighted the increasing financial challenges faced by smaller not-for-profit, tuition-driven schools. In juxtaposition with these practices, we further examine important issues related to the successful and sustainable funding of the program’s operations.

Keywords: student managed investment program, student engagement, internal controls, student investment program funding, CFA research challenge

JEL Classification: A20, G11