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Alaska Pacific University is offering a new scholarship with money from a student-managed investment fund

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Alaska Pacific University is offering a new scholarship with money from a student-managed investment fund



The sign marking the entrance to Alaska Pacific University sits behind pillows of snow on a sunny March morning in Anchorage, Alaska. (Valerie Kern/Alaska Public Media)

Alaska Pacific University has a new scholarship that stems from a student-managed real-world investment fund. The fund has grown from $200,000 in seed money to nearly $2 million since it started in 2001. The new scholarship offers up to $4,000 per semester for eligible students pursuing an undergraduate degree in business or and MBA. 

Alaska Public Media’s Ava White spoke with APU’s MBA Director and assistant professor of business, Lincoln Garrick. He says the fund started about 20 years ago, when Robert B. Gillam donated 100,000 dollars in seed money to the university. 

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This script has been lightly edited for clarity and length.

Lincoln Garrick: Basically, it’s a portfolio that students would be in charge of. APU matched that money 100%. So, the fund started with $200,000 and over the last 23 years, students have taken the class and purchased stocks and bonds and different financial securities.  

It’s grown and [the fund] was over $2 million and so a decision was made to peel off some of those unrealized gains, and create a scholarship program. We were looking at how big it was getting. It was getting to the point where it was maybe a little unwieldy for us as a class, to invest, and they still have that amount of diversification in it. 

One of the big inspirations here in creating this scholarship fund was to open up doors for folks who have interest in finance and have interest in business areas, but maybe don’t have the funds to make that happen in their lives.

AW: How unusual is this? I mean, do you know of any other schools that are using this model of a student managed fund that’s eventually providing scholarships for future students?

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LG: Student funds are pretty common. Throughout the United States, a good number of them are virtual funds, meaning that they’re simulated, in that you work through a computer program and you invest pretend dollars. Some schools use actual dollars. 

I don’t know of too many who have had both the success that the APU student fund has had, and also have made the decision to take those unrealized gains and turn it into a scholarship program. 

AW: One thing I was really interested to see is that this fund created this class that you’re talking about, where students are actually getting to work on and grow this fund. And you’ve mentioned that you’ve actually taken this class yourself. Can you walk me through what the hands on aspect looks like?

LG: It is still, in many ways, a stock picking class.

It is a growth fund, meaning that the goal is to get as much gain as possible in the period of time that the course runs. But it’s also a very diversified fund. One of the ways that we mitigate risk the same way you would in a diversified portfolio, by having a basket of different types of goods, so that if one industry, like financial instruments, goes down, then you have a hedge against that downturn by having other things in the basket.

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AW: You’re kind of hinting at it a little bit, but obviously this class is a learning experience, but everybody makes mistakes. So how do you balance keeping the class a learning experience while keeping it and making sure that students aren’t suffering the fund?

LG: You’re not going to torpedo the fund as a student. That’s just not going to happen. Through the lessons of the class, you are able to identify the best options within your particular industry.

We have some parameters around the fund. We don’t invest in emerging markets, we don’t invest in any of the areas like derivatives or shorting stocks. We would say the Russell 4000 is kind of our home turf.

AW: As someone that’s worked on this fund, this must be a really full circle moment for you. Can you talk a little bit about what this is like?

LG: I had no idea of what the world of finance looked like. I learned so many things through that class. How people view money is different based on how much they have. I think a lot of the learning goes beyond just picking stocks. 

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But, the role of finance is really what I took from the class. Being able to take some seed money, invest it in companies based on sound financials, and then have those realized gains turn into opportunities for folks that come after you, 10 or 20, years later. I think [that’s] something poetic and remarkable.


ava white

Ava White reports on economics and hosts the statewide morning news at Alaska Public Media. Reach her at awhite@alaskapublic.org or 907-550-8445. Read more about Ava here.





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Alaska

101-year-old woman shares her birthday reflections with Alaska’s News Source

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101-year-old woman shares her birthday reflections with Alaska’s News Source


ANCHORAGE, Alaska (KTUU) – Norma Aldefer didn’t expect to turn 100. Now, one day after her 101st birthday, she’s even more surprised.

Inside her pristine apartment, Aldefer’s table is full of cards wishing her a happy birthday. She points out a favorite, which reads “You’re how old?”

Celebratory messages from loved ones, along with congratulations from state officials Senator Lisa Murkowski and Governor Mike Dunleavy. Aldefer said last year’s centennial birthday even brought in regards from President Joe Biden.

Aldefer moved to Alaska to marry her husband, who was originally from her hometown. The photograph she has at her side is of her as a younger woman posing with her mother in 1948.

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Norma and her parents pose “all dressed up” for family photos.(Olivia Nordyke)

“We took pictures of ourselves and and I’m all dressed up in high heels and a hat and a purse. And my little bag that I was carrying.” Aldefer said she was scared leaving the small farm she grew up on, but by working as a telephone operator for Southwestern Bell, she expanded her horizons.

Multiple times Aldefer stated she’s remained curious all her years. She said it’s the reason she’s been able to maintain herself rather than losing her faculties, and believes it’s the way to feel fulfilled.

“Sometimes people get into things they don’t enjoy, but they think, ‘Oh, I have to make a living.’ Don’t do that. If you’re not comfortable, go do something else,” Aldefer said.

“May not make a good living for a while, but you might enjoy life.”

Aldefer says she still enjoys life, and continues to enjoy a nightly martini alongside cheese and crackers before she begins to cook dinner.

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Over the course of the interview, she marveled at her gratitude for her world – calling herself blessed.

“I know I’m not going to be here much probably much longer, but I’ve had such a good life, you know. I’m not afraid of it.”

See a spelling or grammar error? Report it to web@ktuu.com



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Alaska

Moderate earthquake strikes south-central Alaska

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Moderate earthquake strikes south-central Alaska


ANCHORAGE, Alaska (KTUU) – A moderate earthquake occurred in south-central Alaska Sunday afternoon, striking at 2:42 p.m.

Its epicenter was located about 24 miles due east of Anchorage with a depth of 18 miles.

No damage or injuries were reported.

See a spelling or grammar error? Report it to web@ktuu.com

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OPINION: CDQ program and pollock fishery are essential to Western Alaska

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OPINION: CDQ program and pollock fishery are essential to Western Alaska


By Eric Deakin, Ragnar Alstrom and Michael Link

Updated: 1 hour ago Published: 1 hour ago

We work every day to support Alaska’s rural communities through the Community Development Quota (CDQ) program and have seen firsthand the lifeline the program provides to our state’s most isolated and economically vulnerable areas.

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This program is one of the most successful social justice programs in the United States, giving rural, coastal communities a stake in the success of the Bering Sea fisheries, and transferring these benefits into community investments. Our fisheries participation provides $80 million to $100 million of programs, wages and benefits into Western Alaska annually, and the full economic reach of the CDQ program is substantially larger when accounting for jobs and support services statewide.

In some communities, CDQs are the largest and only private-sector employer; the only market for small-boat fishermen; the only nonfederal funding available for critical infrastructure projects; and an essential program provider for local subsistence and commercial fishing access. There is no replacement for the CDQ program, and harm to it would come at a severe cost. As one resident framed it, CDQ is to Western Alaska communities, what oil is to Alaska.

Consistent with their statutory mandate, CDQ groups have increased their fisheries investments, and their 65 member communities are now major players in the Bering Sea. The foundation of the program is the Bering Sea pollock fishery, 30% of which is owned by CDQ groups. We invest in pollock because it remains one of the most sustainably managed fisheries in the world, backed by rigorous science, with independent observers on every vessel, ensuring that bycatch is carefully monitored and minimized.

We also invest in pollock because the industry is committed to constantly improving and responding to new challenges. We understand the impact that salmon collapses are having on culture and food security in Western Alaska communities. Working with industry partners, we have reduced chinook bycatch to historically low levels and achieved more than an 80% reduction in chum bycatch over the past three years. This is a clear demonstration that CDQ groups and industry are taking the dire salmon situation seriously, despite science that shows bycatch reductions will have very minimal, if any, positive impact on subsistence access.

The effects of recent warm summers on the Bering Sea ecosystem have been well documented by science. This has caused some species to prosper, like sablefish and Bristol Bay sockeye salmon, while others have been negatively impacted, including several species of crab and salmon. Adding to these challenges is the unregulated and growing hatchery production of chum salmon in Russia and Asia, which is competing for limited resources in the Bering Sea, and increasing management challenges.

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Attributing the current salmon crises to this fishery is misguided and could cause unnecessary harm to CDQ communities. Without the pollock fishery, we would see dramatic increases in the cost of food, fuel and other goods that are shipped to rural Alaska. We would also see the collapse of the CDQ program and all that it provides, including a wide array of projects and jobs that help keep families fed and children in school.

The challenges Alaska faces are significant, and to address them we need to collectively work together to mitigate the impacts of warming oceans on our fisheries, build resiliency in our communities and fishery management, and continue to improve practices to minimize fishing impacts. We must also recognize the vital need for the types of community investments and job opportunities that the CDQ program creates for Western Alaska and ensure these benefits are considered when talking about the Bering Sea pollock fishery.

Eric Deakin is chief executive officer of the Coastal Villages Region Fund.

Ragnar Alstrom is executive director of the Yukon Delta Fisheries Development Association.

Michael Link is president and CEO of Bristol Bay Economic Development Corp.

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The views expressed here are the writer’s and are not necessarily endorsed by the Anchorage Daily News, which welcomes a broad range of viewpoints. To submit a piece for consideration, email commentary(at)adn.com. Send submissions shorter than 200 words to letters@adn.com or click here to submit via any web browser. Read our full guidelines for letters and commentaries here.





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