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JSE/Liberty Investment Challenge

WHAT IS THE JSE/LIBERTY INVESTMENT CHALLENGE?
 
An investment game for learners to buy and sell securities on the securities market (JSE).  
The challenge is sponsored by the Liberty, Standard Financial Markets  and administered by the JSE.  
The challenge offers participants the opportunity to learn about investment through managing a virtual portfolio of R1 Million.  
Only your imaginary million is at risk.

WHO CAN ENTER?
 
Any South African high school may enter one or more teams  
Grades 8 and 11  
Grade 12 only with the permission of their principal  
A maximum of 4 members per team  
Each team will be required to pay a registration fee of R100.00 per team per portfolio    
Each team to be supervised by a teacher or mentor
 
WHAT DOES THE GAME ENTAIL?
 
Participating school teams test their share trading skills through an ongoing annual simulated trading programme in which their performance is tracked and measured over six months.  Teams choose to manage one or more of three investment portfolios i.e.
 
Income Portfolio (Low Volatility)
Opening balance R700 000 (cash) and R300 000 invested in equities is allocated to the team  
Protect capital against inflation  
Maximise income earned from Corporate Actions and interest (Corporate actions include, dividends, cash distributions, etc)  
Teams may only invest in ALSI 40 shares (Top 40 listed companies)   
The portfolio may not hold derivatives, warrants, futures or options
 
Equity Growth (Moderate Volatility)
Opening balance R500 000 (cash) and R500 000 invested in equities is allocated to the team  
Teams may only invest in shares  
No derivatives, warrants, futures or options may be held  
Maximise growth of the portfolio  
Income derived from corporate actions i.e. dividends and cash distributions is added to the portfolio
 
No more than 10% of the portfolio may be held in one share  
 
Speculator (High Volatility)
Opening value of R1 000 000 in cash   
Teams may invest in any JSE listed securities  
Derivatives, warrants, futures and options are included  
Maximise growth of the portfolio  
Income derived from corporate actions i.e. dividends and cash distributions is added to the portfolio  
No more than 10% of the portfolio may be held in one share  
Internet trading only
 
WHAT IS NEEDED TO BE SUCCESSFUL?
Newspapers  
Internet facilities  
Radio (e.g. SAFM's market update)  
TV (e.g SABC's Business Beat)  
Annual Reports  
Company Newsletters  
JSE publications & training manual  
JSE Website : www.jse.co.za
 
HOW DO TEAMS GET HELP?
Supervising teachers and mentors selected by the respective schools give constant guidance to registered teams.  
Investment Challenge Co-ordinators at the JSE also provide assistance on a daily basis.
 
WHEN AND HOW DO I REGISTER?
Registration commences January 2010
Trading starts in March 2010 and end in September 2010
Prize Giving ceremony for the winning teams is held in October 2010
Teams can register electronically at: http://schools.jse.co.za or by fax to the JSE/Liberty Life Investment Challenge Co-ordinators on (011) 520 8588