Have you ever wanted to test your skills at investing in shares on the Johannesburg Stock Exchange (
JSE) without running the risk of losing any money? South African learners and students will get an opportunity to do so with the 2009
JSE/Liberty Life Investment Challenge starting in March. Registrations are now open with more than R200, 000 worth of prizes waiting to be won. The Challenge offers high school learners and university students an opportunity to learn about investments through managing a virtual portfolio of a whopping
R1 million. As only the imaginary million is at risk, entrants have nothing to lose and a whole lot to gain.
The
JSE/Liberty Life Investment Challenge is an ongoing annual competition that enables learners and students to become aware of the fundamentals of investment strategy, encouraging them to research and
strategise issues surrounding the trading of
JSE-listed shares. Tracking performance over six months, a simulated trading programme provides a real life environment for testing their share trading skills against other entrants.
For 35 years the
JSE/Liberty Life Investment Challenge has been helping to educate school learners and students about the ins and outs of investing in the stock market and the larger role that such investment plays in the country’s economy with the idea of securing a better future for them. Thus it is the most focused and far-reaching educational youth programme in the South African financial sector.
“The competition exposes learners and students to a simulation of the
JSE and introduces them to share trading. They are given an imaginative sum of R1 million to invest according to specified risk scenarios within which they manage their portfolios to maximize their growth. The
JSE/Liberty Life Investment Challenge encourages learners to read financial publications, exposing them to a world of knowledge that will empower them not only financially but also on a personal level,” says Senior General Manager of
JSE Education, Maureen
Dlamini.
In addition to winning the fantastic prizes entrants will gain exposure and experience on life skills such as budgeting, research, team work and they will identify new career opportunities.
The
JSE/Liberty Life Investment Challenge runs from March to September and is open to all grade 8 to 12 learners from any South African high school. Students from universities and independent colleges are also eligible to participate. All school entrants must be in teams of four and have to be supervised by a teacher or mentor. Grade 12 learners will need permission of their principal to enter. University teams must consist of a minimum of two members and a maximum of four.
Entrants have a choice of selecting one or more risk portfolios that they wish to take part in for the competition. The portfolio options are Income (low risk), Equity Growth (moderate risk) and Speculator (high risk). Teams choose the portfolio according to their level of experience and risk adversity. High risk shares and other financial instruments can result in high returns over a short period of time but at the same time have a higher probability of the share price to suddenly drop. It is therefore recommended for learners in grade 8 and 9 to participate in the Income Portfolio game as this is more suited to beginners.
Teams will receive constant guidance from their supervising teachers and mentors selected by schools. Challenge Co-
ordinators at the
JSE will also provide assistance on a daily basis.
From March through to September the team with the best performance for the month in each portfolio will win R500 per team member. A further R500 will be awarded to their school as well as another R500 for their teacher or mentor. At the end of the competition, five prizes amounting to R60 000 per portfolio will be awarded to the overall winners of the Income, Equity Growth and Speculator Portfolios.
Registration forms are obtainable from the
JSE/Liberty Life Investment Challenge website (
http://schools.jse.co.za) or from the Challenge Co-
ordinators on 011 – 520 7116/ 7344/ 7168. Each team will be required to pay a registration fee of R120 per team per portfolio entered. Also refer to the website for more details.
