Douglas R. Kahl

The challenges and opportunities of student-managed investment funds at metropolitan universities

The number of student-managed investment funds has grown rapidly in recent years. In the four decades since the first student-managed investment fund was established at Gannon University, the number of such funds has grown at a rate of less than one per year to thirty-four in 1993. However, that rate of growth has changed dramatically in recent years. Oak Associates Ltd., the Akron, Ohio based investment-management company, has funded ten student-managed investment funds since January 1996. The fund established by Oak Associates Ltd. at The University of Akron provides students with the opportunity to learn about investing real money on a real-time basis. The Oak Grant provides significant educational opportunities at the University and some real challenges in the organization and management of the funds.

Integration of LIBOR and Treasury bill yields over different monetary regimes

Abstract In this paper, tests are conducted for cointegration and Granger-causality relationships between monthly yields on 90-day maturities for London Interbank Borrowing Rate (LIBOR) and Treasury bills (T-bills). Unlike prior studies, there is no evidence of increased integration between LIBOR and T-bill yields over time. Findings in this study suggest that tests of integration of global dollar markets are sensitive to sample periods and different monetary regimes. Integration relationships are strongest under interest rate target regimes and weakest under non-borrowed reserve regimes, as predicted. Under the current regime of borrowed reserve targets, a hybrid of money supply and interest rate targeting, LIBOR and T-bill yields are integrated to a lesser extent than under interest rate target regimes prior to 1979.

Fiduciary and legal considerations for student-managed investment funds

ABSTRACT Student-managed investment funds are popular forms of experiential learning in business schools and finance departments. The investment management experience is a real world activity and the structure of the fund may also introduce real world fiduciary and legal responsibilities for students, faculty, and administrators. The authors review how the Uniform Prudent Management of Institutional Funds Act (UPMIF) and Investment Advisers Act of 1940 apply to common structures of student-managed funds. They summarize their findings to suggest the best structure of a student-managed fund depending on the source of funding and relevant requirements under the UPMIF and the Investment Advisers Act of 1940.