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Frequently Asked Questions
What is the TVA Investment Challenge Program?
The Investment Challenge Program is a unique opportunity that allows teams of students to manage stock portfolios for TVA. In the process, they compete on behalf of their schools for prizes awarded by TVA on the basis of the portfolios’ performance.
Why
did TVA set up the Investment Challenge Program?
The Investment Challenge Program helps TVA meet the financial obligations of decommissioning its nuclear units. It also promotes economic development by helping strengthen the Valley’s educational infrastructure, a vital component of future economic growth. At the same time, the Investment Challenge makes a direct contribution to the training of the region’s future business leaders.
Where does the money for the investments come from?
The money comes from TVA’s Nuclear Decommissioning Trust Fund,
established in 1996 to meet the financial obligations of decommissioning
TVA’s nuclear power units. The Investment Challenge is part of
a larger strategy aimed at diversifying the financial management of the
trust fund. TVA has allocated management of the fund to various
investment firms and the Investment Challenge program.
How much money did TVA allocate
to the Investment Challenge teams?
Originally, 19 universities received investment funds
of $100,000 apiece, for a total of $1.9 million. The program has expanded
to include 25 universities, and the funds
total approximately $10 million.
Does TVA dictate how the Investment
Challenge teams invest the money?
The teams are held to the same guidelines as TVA’s
professional money managers. TVA appoints a trustee who monitors the investments
to
ensure that they remain within the corporation’s guidelines.
Read
Guidelines (PDF, 252 kb, requires Adobe
Acrobat Reader).
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