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SEM Young Investor Award Competition: Real investor experience, Real competition and Real investor learning

 
 

Amongst an array of investor education ongoing initiatives by the SEM is the popular SEM Young Investor Award (SEMYIA) established since 1993, an annual flagship national competition over 3 months for young college students, aimed at triggering the interest of participants for the stock market and sharpening their appetite as would-be investors in future. SEMYIA has over time, spiked the interest of students to become investors on the SEM, with more than 20,000 students over the last 25 years, coming from colleges registered with the Ministry of Education and Human Resources, Tertiary Education and Scientific Research. This year’s competition has registered 202 teams of five students, that is 1010 students, from a record number of 101 colleges across the country.

 

 

Overview and 3-Pronged Aims of SEM Young Investor Award (SEMYIA)

 

College participants invest a hypothetical sum of Rs 200,000 in SEM's listed securities by creating an investment portfolio and experience investment on the stockmarket without spending a cent of their own money! Participants manage their portfolio to achieve the best total return at the end of the 3-month period and receive updated portfolio reports from the SEM following buy/sell transaction swaps and dividends received during the competition. 

- Inculcate an investment culture among students by giving them a practical understanding of the operational aspects of the Stock Exchange and altogether trigger their interests in the capital markets and financial services sector;


- Provide a practical, interactive, and free to play platform for participants by being in the shoes of real investors investing in real-life;

 

 - Ensure a holistic approach and provide support to learning via technical briefings by SEM staff and consultations with stockbrokers over a set time frame of 3 months, as well as guiding participants to online and digital market watch on daily pricing of securities and corporate annoucements as well as published accounts of listed companies displayed and timely updated on SEM's website

 

 

SEM Young Investor Award 2018 Participant Information Pack

 

 - Initial Portfolio Example : Click here to download

 

 - Invesment Swap Form: Click here to download

 

  - Swap example: Click here to download

 

 - Corporate Action Price adjustment example:  Click here to download

 

 - List of companies to invest in: Click here to download

 

 - List of stockbrokers : Click here to view

 

 - Report Writing : Click here to download

 

 - Daily delayed trading data on Official Market : Click here to view

 

 - Latest Corporate Announcements on Official Market : Click here to view

 

 - Latest Published Accounts on Official Market: Click here to view

 

 - Click here to download SEM Factbook 2018

 

 

Calendar for the SEM Young Investor Award 2018


A technical briefing session is held by the Stock Exchange of Mauritius at Octavié, Reduit on 14th March 2018, for all participating college students to explain them the rules of the competition, the mechanics of trading and pricing of securities as well as analytical and discussive skills they need to demonstrate in the write-up of their report.

Submission of Initial Portfolio: Friday 23 March before 2 PM

Competition starts on: Monday 02 April

Competition ends on: Friday 29 June

Submission of Report (in 2 parts: Investment Plan & Investment Report): Monday 09 July



Overview of SEM Young Investor Award 2018

The national competition starts on 3rd April 2017 and ends on 29th June 2017, spreading over a period of 3 months. Each team is required to invest an investment fund of Rs 200,000 of token money in a portfolio consisting of 5 securities listed on the Official Market of the Stock Exchange of Mauritius. Each team is allowed to make up to 5 investment swaps at any time during the period of the competition and place buy/sell orders with the SEM, while consulting investment dealers/brokers and following daily online share prices and corporate annoucements and published accounts of listed companies on SEM's website.

 

Students should manage their investment portfolio to achieve the best total return at the end of the three-month period of the competition and receive updated portfolio reports from the SEM following buy/sell transactions over the 3 months of the competition. Portfolios are updated on a daily basis, and on Friday 29th June each portfolio is valued as it stands as at that date using the quoted prices of the final trading session of 29th June 2018, and taking into consideration all dividends receivable, bonus issues and proceeds from the sale of rights, if any. In addition, each team is required to present a Report in two parts (Investment Plan and Investment Report) at the end of the competition. The Report will carry 30% of the marks, the remaining 70% being alloted to the profits realised on the portfolio.

 

Rules of SEM Young Investor Award 2018

1. The competition is open to all secondary schools offering HSC courses, registered with the Ministry of Education and Human Resources, Tertiary Education and Scientific Research, and is limited to 2 teams per school.

 

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


3. Each team is required to invest by 23 March 2018 an investment fund of Rs200,000 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 is calculated using the closing price of 02 April 2018.

 

4. 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.

 

5. The participating team is allowed a maximum of 5 investment swaps.

 

6. A minimum of 5% of the total share portfolio should be invested any one single stock at any point during the course of the competition.

 

7. No more than 40% of the total share portfolio should be invested in any one company at any point in time during the course of the competition.

 

8. All correspondance sent to the Stock Exchange, other than invesment swaps/dividends and the Report should bear the signature of the Rector.


9. The price used to evaluate portfolios at the end of the competition will be the closing price of the last trading session of the competition (i.e. price at 29 June 2018).


10. 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].


11. 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.

 

12.  Each team will first select among the existing listed companies, 5 securities 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 200,000 to each of these 5 securities so as to achieve the best total return.i.e dividends ans capital gains, at the end of the three-month period.


13. At the end of the competition, each team will be required to present a Report, in two parts (Investment Plan and Investment Report). The Report will carry 30% of the marks, the remaining 70% will be alloted to the profits realised on the portfolio.

 

14. The conversion rate applied to convert foreign currencies in MUR will be the CDS Conversion Rate (CCR) of the trade day as defined under section 7.7.1 of the CDS Procedures. CDS is a subsidiary of the Stock Exchange of Mauritius. CCR shall be computed as follows:

 

 CDS Conversion Rate (CCR) = Average Par rates of the settlement banks

 

 Where, Par Rate      =     (T.T Buying Rate + T.T Selling Rate)/2

 


15. 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 and Sponsors

1st prize : A challenge trophy offered by SEM, and a package prize offered by the MCB Group comprising a cash prize of Rs 200 000, MCB Group shares to the value of Rs 2500, an individual MCB shield, a one-week traineeship at MCB Group and MCB corporate gifts.

2nd prize:  A trophy offered by SEM, and a package Prize offered by the NMF comprising a cash prize of Rs 100, 000, NMF units to the value of Rs 5000, a one-day visit at the NMF Savings and Investment Department and NMF corporate gifts.

3rd prize: A trophy offered by SEM, a Cash Prize of Rs 50, 000 by Aon Hewitt Ltd and corporate gifts.

Prize for Best Report: A trophy by SEM and a challenge trophy offered by CFA Society Mauritius.


Overview of the SEM Young Investor Award 2017 Edition: Click here


March 14, 2018