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What Is the Investment Challenge? Information for Current Participants
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Background of the Investment Challenge Program In 1996 the TVA Board established the Nuclear Decommissioning Trust Fund to meet the financial obligations of decommissioning the corporation’s nuclear units. Two years later, as part of the process of diversifying the financial management of the trust fund, the corporation allocated $1.9 million to create the TVA Investment Challenge Program. This innovative partnership between TVA and 19 universities in the Tennessee Valley region was designed to give students real-world experience in portfolio management. In 2003, TVA expanded the program by adding six new schools and approximately $8 million in funds. This decision was a direct result of the past success of the students participating in the Investment Challenge, whose results compared favorably with those of professionally managed portfolios. Each of the participating universities sets up a program for the management of a portfolio with funds of about $400,000. Under a faculty member’s guidance, the students devise long-term strategies, manage the funds, and provide regular performance reports to TVA. Annual awards are presented to the schools whose portfolios generate the best returns. The Investment Challenge Program is an important part of TVA’s economic development mission. It nurtures the educational infrastructure that is vital to the Valley’s continued growth, and it provides invaluable training for the future business leaders of the region. Read Investment Challenge FAQ.
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