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Inspiring an early interest in investing

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BSX WIW Quiz Challenge: look for the embedded question in this article

This article is the fifth of six pieces, published between October 2 and 7, in support of the Bermuda Stock Exchange World Investor Week Quiz Challenge. Each article has a question embedded. Find the question and send your answer to wiwqc@bsx.com. Those with six correct answers will be entered into a draw to win a grand prize of a $2,500 Bermuda securities portfolio.

KPMG in Bermuda launched the Senior School Investment Challenge in 2005 as part of the firm’s ongoing commitment to support education and youth development.

The Challenge was established to allow Bermuda’s high school students the opportunity to experience capital markets and buy and sell securities in a realistic trading environment. It also encourages students to to consider future career opportunities in the investment management or financial-services industries.

Additionally, the Challenge provides KPMG the chance to interact with the schools and to inspire the students into thinking about saving and investing at an early age, as well as raising their awareness of KPMG as a possible future employer. The Challenge has proven to be hugely popular and is now in its 13th successful year.

KPMG’s purpose and mission for the Challenge is to support a meaningful and perpetual educational programme for Bermuda’s senior schools in an effort to stimulate in the younger generation interest in the concept of “investing for the future”.

The objectives of the Investment Challenge are to:

• Develop awareness of the capital markets and the types of securities available for investment.

• Raise awareness of career opportunities within the various segments of the industry (accountants, bankers, lawyers, regulators, analysts, investment advisers, fund administrators, pension planners, etc).

• Increase exposure to international business activities as they impact global and local stock markets.

• Create a programme that can be specifically structured to complement and enhance each school’s current curriculum.

• Raise awareness of KPMG and possible career opportunities through KPMG’s internship, scholarship and graduate programmes.

• Co-ordinate the participation of KPMG and other affiliated industry speakers upon request.

• Generate more interest from the business community in Bermuda’s senior schools.

• Provide a “fun” learning experience for both students and teachers that is highly visible in the community.

The terms of the Investment Challenge involve teams of students managing a virtual investment portfolio of $100,000 using the interactive online “Stock Trak” electronic trading platform to trade over the course of six months (November — April). The winning team is the one whose investment portfolio generates the largest return at the end of the Challenge.

Teams from all eight of Bermuda’s senior high schools are invited to participate and a KPMG staff member is assigned to each team to act as a mentor during the Challenge. With support from the KPMG mentors and the business/economics teachers from each of the private and public schools, more than 100 students from the island’s senior schools participate annually in the Challenge.

These students are provided with the opportunity to take investing into their own hands with full control of their investment portfolios through the Stock Trak system. We are pleased to report that for the 2017-18 Challenge, teams will be able to trade in securities listed on the Bermuda Stock Exchange. BSX-listed securities will be uploaded to the Stock Trak system for the first time, giving students the chance to understand and follow the performance of their local market and invest in the local companies with which they are familiar. It is hoped this will support the BSX’s initiative by encouraging young investors to “own a piece of Bermuda”.

Butterfield Bank is by far the biggest company listed on the BSX with a market capitalisation of around $2 billion. Name the second-largest company on the domestic main board of the BSX by market capitalisation, as of the close of trading yesterday.

At the end of the Challenge, in recognition of each team’s investment performances, KPMG organises an awards ceremony where a total of $20,000 of real cash prizes in the amounts of $10,000, $6,000 and $4,000 are awarded to the first, second and third placed school teams, respectively.

These funds are then used by the schools as they wish, to support a variety of educational initiatives.

Over the past 12 years, KPMG has been immensely impressed and proud of the interest, performance and eagerness of the student participation throughout each school as the students relentlessly challenge and compete with each other to vie for the top prize.

KPMG is also extremely appreciative of the support offered to the Investment Challenge by the Bermuda Government’s Ministry of Education which has participated in the awards ceremony each year.

The KPMG Senior School Investment Challenge has opened doors for some of its participating students to gain the opportunity of summer internships and work shadowing experiences with KPMG in Bermuda as well as with local investment managers and other organisations.

Many students who have participated in the challenge have gone on to achieve a successful career with KPMG.

Steve Woodward, is managing director, head of KPMG Enterprise

For more information about the BSX WIW Quiz Challenge, see the PDF attached to this story online at www.royalgazette.com or go to www.bsx.com

Successful investors: Warwick Academy's #Inspire team won the 2016-17 KPMG Investment Challenge