ULSTER University Business School students pursuing an MSc in Applied Finance put their academic learning to the test recently, resulting in a £41k profit which was made in only seven weeks.
Finance lecturer Paul Stewart said: “The students were organised in teams of three, all completing coursework taken in the Financial Markets, Investments and Operations Module.
“Their challenge was to develop a trading and investment strategy with a virtual £100k per team, which they managed over a seven week period.
“All of the students’ trades were in ‘real-time’ at actual market prices, using market trading simulation software available through the University’s CME Financial Innovation Laboratory. At the conclusion of the seven week trading period, the students had collectively made an investment return of £41,132 (10.28%), with the best individual team turning in an impressive 18.63% return for the short trading window available to them.”
Five employers: Cunningham Coates Stockbrokers, Investec Wealth & Investment, Quilter Cheviot, Danske Bank and Brewin Dolphin, along with The Chartered Institute for Securities and Investment (CISI), helped to develop the course work, facilitated student mentoring by their staff members and sponsored a prize for the best performing trading team.
The winners of the CISI NI Investment Student of the Year award — Patrick Catterall, Joe Greaves-Lord and Andrew Milligan — were presented with their prizes at the Northern Ireland CISI Annual Dinner on February 25 in the MAC theatre.
Speaking at the awards presentation, CISI (NI) president, Chris Taggart, who is also an investment manager in Quilter Cheviot, said: “The enthusiasm the students had throughout the project is testament to their interest in investment — especially considering that a number of the students come from a non-financial undergraduate background. Despite the very short trading period, the application of investment theory was evident and the quality of the submitted portfolios was very impressive.”
Finance lecturer Paul Stewart said: “The dedication of the students and the quality of the end product is incredibly rewarding.
“The Business School is very grateful for the support of our sponsors in this exercise — from the establishment of the prize to the mentoring of students — it really is invaluable for the students. I have no doubt it will be a tremendous benefit to these students as they seek to develop their careers after university.”