SIXTH-FORM students across the Island may be keeping a closer eye on the markets than usual over the next few months following the launch of a new competition.
Organised by Ashburton Investments, the initiative invited students at Victoria College, Jersey College for Girls, Highlands College, Hautlieu, Beaulieu Convent School and De La Salle College to form teams and submit a portfolio of five stocks or equities from any major market of their choice.
The 23 teams submitted their portfolios at a launch event at the Radisson Blu Waterfront Hotel last week and will now watch with interest to see how their equities perform over the next six months.
‘The stocks in each portfolio have been equally weighted so that the starting value of each portfolio is a fictitious £100,000,’ explained Ashburton senior portfolio manager Tarly Bolla, who organised the competition alongside assistant portfolio manager Brett Coombs-Goodfellow, equity analyst Kathy Davey and HR manager Jo Taylor.
‘With so much going on in the world, from the geopolitical situations in China, Russia, America and Taiwan to an environment in which interest rates are rising and inflation is at its highest for several decades, the markets are volatile.
‘While our investment managers and equity analysts have given some presentations in schools to help the students to understand the combination of economic and political factors which could influence the performance of their portfolios, it will be very interesting to see not only their final choices but also how these perform over the six-month duration of the competition.
‘Given the volatility of the markets, it could be that the winner may be the one whose portfolio loses the least value.’
While the competition is likely to generate some friendly rivalry both within and between schools, the initiative is also designed to give students a greater understanding of investment management.
‘We wanted to do something which would involve younger members of the community and also to give people who are deciding whether to go to university or to enter the workplace after their A-levels an idea of what a career in investment management could look like,’ said Mr Bolla. ‘For many people considering a career in the finance industry, trust or accountancy are the natural choices so this gives them an opportunity to see a different area of the sector.’
Having initially hoped that one or two teams from each school would enter, Mr Bolla was delighted when interest led to 23 teams submitting portfolios.
‘Those portfolios will not change during the six months. All the research has taken place this month, with our staff giving them some pointers and tools to help them screen individual stocks and make their final choices,’ he added.
‘This was important, as we wanted to avoid every team picking “favourite” companies such as Tesla, Tik-Tok and Amazon.
‘While six months is a short period of time for an investment portfolio, it felt like the right duration for the competition, as many of the students will be sitting exams in May and June and then leaving school in the summer.’
Accordingly, the results will be announced in June, with a trophy for the winners, prizes for the top three teams and a donation from Ashburton to a charity of each school’s choice.
Weekly tables showing the top ten teams will be published on the Ashburton and Jersey Evening Post websites, while a full league table, together with some investment commentary, will be published each month in the JEP.
