14 schools earn profit-sharing checks in hands-on portfolio program
D.A. Davidson & Co. today announced that a student team from Portland State University had the top-performing portfolio in the company’s annual Student Investment Program (SIP), enjoying a total return of 33.6 percent for the program year. Additionally, the University of Montana has been named the winner of D.A. Davidson’s third annual Fred Dickson Memorial Award.
“It was a year of strong market performance and most Student Investment Program teams posted impressive total returns. We congratulate them and thank everyone for participating,” said James Ragan, Director of Individual Investor Group Research for D.A. Davidson and head of the company’s Student Investment Program.
This program provides a unique opportunity for aspiring financial professionals to learn a range of valuable skills, and we’re honored to partner with these schools.
-James Ragan, Director of IIG Research
For the program, D.A. Davidson provides student teams from senior-level investment courses at 20 Western and Midwestern colleges and universities with $50,000 to invest in the stock market, for a total $1 million commitment annually. Each team makes investment decisions with the guidance of a local D.A. Davidson financial advisor and manages the portfolio for one year, starting Sept. 1st. The program is designed to provide a hands-on experience in finance, stock research, portfolio management and investment topics.
The top-performing teams receive a check for their college, earning half of any portfolio gains above 5 percent. D.A. Davidson absorbs any losses. For the 2016-2017 program that recently ended, 14 of the 20 participating teams earned checks for a total D.A. Davidson donation of $38,300, including a $7,140.42 check to Portland State. In the 23 years since D.A. Davidson began sharing program profits, the company has donated $552,900 in profits to participating institutions.
Portland State’s 33.6 percent return for the year was more than twice the 16.2 percent total return for the S&P 500 Index, a standard benchmark for the stock market, for the same period, and well above the 22.3 percent return for the Dow Jones Industrial Average.
The team with the year’s second best return was from the University of Montana, with a 30 percent return. An additional four schools also generated returns above the S&P 500’s: Oregon State University with 24.2 percent, the University of Idaho with 22.9 percent, Gonzaga University with 19.4 percent, and Idaho State University with 17.9 percent.
D.A. Davidson separately named the University of Montana as winner of the Fred Dickson Memorial Award, which annually recognizes one team for overall excellence and adherence to program standards. UM has demonstrated consistent long-term performance over 1-year, 3-year, and 5-year periods with strong results on an absolute and risk-adjusted basis. The team will receive a $2,000 award and an expense-paid trip for five participants to the Davidson Institute, a premier D.A. Davidson event in Seattle in May 2018.
“We congratulate Montana for earning the Fred Dickson Memorial Award, and we salute all student participants for their work in managing real portfolios,” Ragan said. “This program offers hands-on experience that contributes to increased financial literacy for the next generation.”
The Student Investment Program was launched in 1985 at Montana State University and gradually added colleges throughout the West and the Midwest since that time.
About D.A. Davidson Companies
D.A. Davidson Companies is an employee-owned financial services firm offering a range of financial services and advice to individuals, corporations, institutions and municipalities nationwide. Founded in 1935 and headquartered in Montana, with corporate offices in Denver, Los Angeles, Portland and Seattle, the company has more than 1,300 employees and offices in 24 states.
Subsidiaries include: D.A. Davidson & Co., the largest full-service investment firm headquartered in the Northwest, providing wealth management, investment banking, equity and fixed income capital markets services and advice; Davidson Investment Advisors, a professional asset management firm; D.A. Davidson Trust Company, a trust and wealth management company; and Davidson Fixed Income Management, a registered investment adviser providing fixed income portfolio and advisory services.
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