University of Adelaide: Students exceed market benchmark

In a three-day competition held in the Financial Markets Lab at the University of Adelaide, all students from the Adelaide Business School successfully managed to outperform the market benchmark – something many professional money managers struggle to achieve.

In the University of Adelaide Portfolio Management Challenge which started on 28 September, 60 students were mentored by Adelaide Business School alumni who are now industry professionals.

The number of investments, and the complexity of the competition, which was held at the University’s Financial Markets Lab, increased over its duration.

“Student teams sifted through news bulletins to position their portfolios for each of six trading sessions,” said the University of Adelaide’s Dr Syed Ali, Director, Financial Markets Lab, Adelaide Business School.

“The competition gave students a real taste of what it’s like to manage a multi-asset portfolio of shares, bonds, property, commodities and other alternative investments.”

Students had to pick relevant economic news from irrelevant “noise”, understand the potential impact of economic news on global markets, and actively position their portfolio to take advantage of their forecasts.

“The competition gave students a real taste of what it’s like to manage a multi-asset portfolio of shares, bonds, property, commodities and other alternative investments.”
The University of Adelaide’s Dr Syed Ali, Director, Financial Markets Lab, Adelaide Business School.

The Adelaide Business School alumni mentored the next generation of industry professionals.

“This competition is a valuable way to prepare students for working in financial markets and give them the edge over other graduates,” said Charlie Cropper from Morgan Stanley Wealth Management.

“Putting theory into practice is the best way to help them gain the skills to ensure they have the strongest chance of success when they start their professional career.”

The competition was developed in collaboration with the University’s International Centre for Financial Services (ICFS) and Morgan Stanley Wealth Management.