Winners of JSE/Liberty Life Investment Challenge beat rollercoaster markets
It took more than the most volatile equity markets in history to beat the winners of the annual JSE/Liberty Life Investment Challenge.
University of Johannesburg ‘speculators’ and ghost high school traders from both Cape Town and East London overcame rollercoaster markets to register solid gains at a time when even seasoned investment professionals were deep into negative territory.
At today’s (Friday, October 24) annual prize-giving ceremony at the JSE in Sandton JSE CEO Russell Loubser saluted the Challenge winners for their virtual triumph in the face of the most adverse trading conditions in decades.
Real-life conditions were so difficult that most entrants failed to meet the criteria for consistent performance over the six-month duration of the challenge. Only two teams did well enough to claim prizes in the schools contest and two university sides achieved a podium finish. No third prize was awarded.
The university-level speculator game was dominated by the University of Johannesburg. Top prize of R25 000 and a trip to an overseas stock exchange was won by its ‘Students at Work’ team (Michael Treherne and Paul Wilson). They grew their portfolio by 11.12%.
Second prize of R20 000 was presented to the ‘Applenuts’ side from the same university. The team of Chad Miller, Ross Miller, Tamryn Lee de Costa and Travis Sinclair achieved growth of just 1.68%.
This year 23 universities and nearly 1000 students entered the Challenge.
The high school event attracted 299 schools and just under 6 500 learners.
Cape Town’s Wynberg High School took top prize in this contest – R26 000, including R5 000 for the school, R4000 per team member and R5000 for the teacher.
The school’s ‘McDuck Investment Holdings’ team comprised Sean Aldridge, Kyle Carstens, Jason Horn and Muneeb Brey. Their teacher was Steve Doidge. For the six-month period they achieved total income of R57 569.94c. and grew their capital by R38 034.78c. versus mandated minimum growth of R30 000.
Masixole High School near East London was runner-up, receiving R13 000 (R2 500 per team member and R3 000 for the school). The school’s ‘Finance’ team – Mhloli Ondala, Rolisiso Lindile, Jaji Olwethu and Nqabeni Mzuzile – achieved a six-month income of R54 742.83c. and growth of R35 304.28c.
Maureen Dlamini, head of the JSE’s education division, presented prizes and congratulated the winners on their performance.
Howard Fox (pictured), Divisional Director: Marketing at Liberty Life, co-sponsor of the Challenge, noted: “Virtual investing, even with a make-believe million is not a frivolous exercise. It gives students and learners very real insights and provides valuable lessons.
“The markets are currently sending out a reminder that in real life one needs to think long term with regard to saving and investment.
“Equity investments are just one part of a balanced financial plan. Professional planning is essential if financial goals are to be realised. This is an important lesson, not just for Challenge entrants but for families across the country that have yet to embrace the concept of professional financial planning. A good plan will help South Africans withstand a surprising amount of financial pressure – which many are feeling at present.”
Among VIP guests at the JSE awards presentation was Ms Penny Vinjevold, representing the Minister of Education.
