Released on: March 02, 2010, 8:19 am
Author: The International Capital Market Association
The International Capital Market Association (ICMA) Centre has announced the launch of a new Portfolio Simulation Platfrom.
The new web-based ICMA Centre portfolio simulation platform that has been developed by StockTrak Inc and customised by Dr George Alexandridis allows students to trade securities in most major markets around the world in real time and build and manage large portfolios.
MSc and BSc students at the ICMA Centre that take the portfolio management course are involved in an assessed group project where they have to build and evaluate a hypothetical portfolio with securities of their choice using real time data.
Dr George Alexandridis, Lecturer in Finance at the ICMA Centre said: "Our custom made portfolio simulation platform and other simulations used in the centre can really help us bridge the gap between theory and practice and progress the students' learning experience to a higher level. Students can apply the tools they learn in the class and improve their investment skills. It is very much like real-life on-line trading platform that not only allows students to get some hands-on experience but also ignites a spirit of competition in the class room. Moreover, it helps improve students' investment awareness and potential in securing better jobs after graduation"
The MSc Portfolio Management challenge runs between January and April by Professor Jacques Pezier. Each group of students is required to submit a detailed report where they critically explain and justify their trades and profitability compared to appropriate benchmarks. The final winners are determined based on both their final profit and reports. This allows for students to be evaluated on their critical judgment as well as their skills of practically applying what they learn from core courses such as portfolio management and derivative markets.
Professor Chris Brooks who runs the BSc Portfolio management course commented: "The simulated portfolio challenge is an integral part of the portfolio management module and links closely with our ambition to equip students with the transferable and practical skills that they will need to be successful in their future careers. The students typically enjoy the experience enormously and learn much more about the process of forming and evaluating equity portfolios than they could from simply reading a book. Some of our graduates have commented that the exercise inspired them to work in that part of the industry and helped them field questions at interviews."
The ICMA Centre is one of the very few Business Schools in the UK that have adopted similar portfolio simulation platforms that are becoming an essential training tool in business, finance and executive education.
About the ICMA:
The International Capital Market Association (ICMA) is the self-regulatory organisation and trade association for the international securities market. Its primary role is to oversee the fast-changing marketplace through the issuing of rules and recommendations relating to trading and settlement practices.
ICMA currently has over 400 members in almost 50 countries and has a proven track record in representing their interests. In addition to its regulatory role, ICMA also provides its member firms - and other users - with a range of services, products and support, including investment management, studies into Islamic finance and FSA compliance training.
The Association was established in 1969. Formerly known as the Association of International Bond Dealers (AIBD), ICMA's original remit was to create a framework of rules under which the fledgling over-the-counter Eurobond market could function and to provide essential direction and stability to this rapidly evolving market.
Dr George Alexandridis
Lecturer in Finance
Henley Business School
+44 (0118) 378 4387