Investment Simulations

Playing can be an effective way of learning.

The Brandes Institute has created two, web-based simulations designed to engage participants and sharpen their skills in various aspects of investing and portfolio management – through playing. These proprietary simulations are:

The Investment Challenge

The Investment Challenge is a stock-picking simulation. Participants are grouped into teams and start with a hypothetical $10 million. Each team builds a 5-10 stock portfolio from a universe of 40 actual companies. Players may use select fundamental traits provided about those companies to make their initial selections.

The Investment Challenge runs for a simulated 5-year period, but can be played in under an hour. After each “year,” players may sell existing holdings, buy new ones, rebalance or raise cash. Teams will see how much their portfolio has grown (or shrunk!) after each year. They also will see how they are doing relative to other teams. The team with the greatest portfolio value at the end of the 5-year period wins.

The Investment Challenge offers participants a fun, competitive, hands-on way to learn about investing and makes an ideal activity for client appreciation or prospecting events.

The Manager Challenge

The Manager Challenge is a detailed simulation that provides an opportunity to sharpen skills in investment manager evaluation, product selection, asset allocation and portfolio monitoring and rebalancing. The Manager Challenge can be played either at in-person events or remotely via the web.

When played in person, teams work together to evaluate fictitious (but very realistic) investment managers and their products. Taking into account liability targets and simulated career risks, teams invest a hypothetical $10 million. The goal is to meet investment objectives and build the greatest portfolio value over a simulated 15-year investment period. Total playing time is 2-3 hours. The Manager Challenge also can be played entirely online. Individuals or teams participate in competitions that can last up to a week – offering more time for evaluation and analysis, but covering a simulated 15-year period.

The Manager Challenge, featured in a Wall St. Journal story and video, has been used successfully to provide hands-on training for institutional and individual investors in a competitive and fun environment.

Brandes Retirement Simulator

The biggest single financial worry for American workers may be “money death,” the fear that they will run out of money during retirement. Investment strategies for retirement rooted in conventional wisdom or extrapolated from successful past approaches may no longer be ideal for 75 million Americans approaching retirement.

The Brandes Retirement Simulator allows individuals to estimate wealth outcomes based on personalized financial and lifestyle inputs, and simulates a range of possible financial outcomes up to age 100.

Working with your financial advisor, we believe the Simulator can be used to help design a retirement portfolio that better meets your individual needs.