The SEM Young Investor Award Competition

Background Information on SEM Young Investor Award 2010

Initiated in 1993, the SEM Young Investor Award Competition now stands at its 18th edition. Throughout the years, this annual event has generated a growing interest from lower 6 students from secondary institutions across the country, both in towns and villages, and the number of participants and schools registered has considerably increased over the last 18 years. This year’s competition has attracted a record number of 173 teams of five students each, that is 865 students, from 93 colleges across the country.

The aims of the competition are:

• to inculcate an investment culture among college students by giving them a hands on exposure to a key component of the financial services sector, namely the securities industry;
• to give participants an opportunity to understand the operational aspects of the Stock Exchange and experience how to invest in the real-life environment;
• to trigger the interests of college students in the financial sector activities, with the expectations that they pursue higher studies and professional careers in this growing sector of the Mauritian economy.

Calendar for the SEM Young Investor Award 2010

The technical briefing session has been held at Octavié, Reduit on 10th March 2010, for all participating students to explain them the steps of competition and key technical aspects they need to master and what they need to include in the write-up of their report.

Submission of Initial Portfolio: Wednesday 17th March

Competition starts on: Thursday 18th March

Competition ends on: Friday 18th June

Submission of Report (Investment Plan & Investment Report): Friday 2nd July

Overview of SEM Young Investor Award 2010

The real-time competition will start on 18th March 2010 and end on 18th June 2010, spreading over a period of 3 months. Each team will be required to invest an investment fund of Rs 100,000 of token money in a portfolio consisting of the shares of 5 companies listed on the Official List of the Stock Exchange of Mauritius. Each team will be allowed to make up to five investment swaps at any time during the period of the competition. Portfolios will be updated in real-time on a daily basis. On the 18th of June, each portfolio will be valued and the rate of return on each portfolio will be calculated against the value of the initial portfolio.

Besides, each team will be required to present an investment plan in the form of an essay at the beginning of the competition, and an investment report at the end of the competition. The report to be submitted at the end of the competition carried 30% of the marks, the remaining 70% having been alloted to the profits realised on the portfolio.

Rules of SEM Young Investor Award 2010

• The competition is open to all secondary schools offering HSC courses and is limited to 2 teams per school.

• Each school team shall consist of 5 members, who must all be Lower VI students.

• Each team will be required to invest by March 17th, 2010 an investment fund of Rs 100,000 of token money over a 3-month period and submit their initial portfolios to the Stock Exchange at latest on that date. The initial portfolio will be calculated using the closing price of the 18th March 2010.

• In the event that a participant is transferred from one secondary institution to another, the latter will have to be replaced by another participant of the same institution.

• All correspondance other than invesment swaps, investment plans and reports sent to the Stock Exchange should bear the signature of the Rector.

• The price used to evaluate portfolios will be the closing price of the trading session.

• In event of any rights issues, on the Ex-Rights (ER) date, the Rights will be deemed to have been sold at [Ex-Rights (ER) Reference price - Issue Price].

• In the event where a company is merged or taken over by another company, the value of the shareholding will automatically be used to purchase shares in the new company to the equivalent value.

• Each team will first select among the existing listed companies 5 shares which in their view represent the best investment opportunities over the next three months, and then allocate an amount of the investment fund of Rs 100,000 to each of these 5 shares so as to achieve the best total return, i.e dividends and capital appreciation, at the end of the three-month period.

• At the beginning of the competition, each team will be required to present a Report, combining an Investment Plan and an Investment Report, at the end of the competition. The Report will carry 30% of the marks, the remaining 70% will be alloted to the profits realised on the portfolio.

• The winner of the competition will receive a prize of Rs 100,000. The winning team’s school will receive the challenge trophy of the SEM YOUNG INVESTOR AWARD to be held for one year.

• The Stock Exchange shall have the right to make a pre-selection of the participating teams at the final marking stage and take any other decisions for the good conduct of the competition. All participating teams shall abide by its decisions which shall be final.

Prizes offered by the Stock Exchange of Mauritius

Overview of the last SEM Young Investor Award 2009 Click here

March 10, 2010