Students, Faculty to Manage $5 Million Fund

FAYETTEVILLE, Ark. — The executive committee of the University of Arkansas Fayetteville Campus Foundation Inc. has approved a request to allow students and faculty in the Sam M. Walton College of Business to manage $5 million held in trust by the University of Arkansas Fayetteville Campus Foundation Inc. The Garrison Financial Institute in the Walton College will oversee investment activities of the fund.

The Walton College established the Garrison Financial Institute in 2005 as a catalyst for the development of a comprehensive and nationally competitive financial services industry in the state of Arkansas. The mission of the Garrison Financial Institute is to advance and provide innovative practice-based clinical experience for students and faculty to enhance student learning and foster research that extends and perfects best financial practices.

“This arrangement provides an important real-world experience for our faculty and students to further develop skills and knowledge in managing actual money,” said Walton College Dean Dan Worrell. “Walton College students already manage a $5 million bond fund for Arvest Bank Group, a $1.4 million equity fund forming the Rebsamen Trust, and a $300,000 equity fund forming the Shollmier MBA Fund. With this additional $5 million, students and faculty will be managing almost $12 million.”

G. David Gearhart, vice chancellor for University Advancement, said, “We are most grateful for this opportunity. It will help us graduate students who are highly valuable to the financial industry in Arkansas and the nation and at the same time, benefit the university.”

 “Students in the Walton College portfolio management class have been managing funds in the Rebsamen Trust since 1971,” said Wayne Y. Lee, executive director of the Garrison Financial Institute. Lee also holds the Garrison Chair in Finance, the Alice L. Walton Chair in Finance, and is chair of the finance department.

“Now our students and faculty have another opportunity to sharpen the portfolio allocation and security selection process to benefit the Walton College and the University of Arkansas. This process helped the class outperform the S&P (Standard and Poor’s) 500 in 2003, 2004 and 2005,” Lee said.

The Garrison Financial Institute will also manage a state-of-the-art, 5,000-square-foot global financial markets trading center, under construction as part of the Willard J. Walker Hall, the Walton College’s new graduate business building. This facility, scheduled to open this summer, will give Walton College students and faculty access to real-time global financial market information that will rival that found in the best schools and Wall Street firms.