Strategic Investment Management Simulation

Focus:

Strategic investment management, ESG-integrated investing, factor investing, multi-asset portfolio allocation, tactical decision-making, and corporate decision-making for asset management firms.

Used in:

Courses on investment strategy, portfolio management and financial decision-making, and capstone projects at advanced undergraduate and graduate levels. MBA programs, Executive MBA programs, and corporate trainings on financial strategy and investment management.

Case scenario:

Participants manage the funds of various client types by constructing and managing diversified portfolios that span multiple asset classes, regions, and currencies. The simulation integrates environmental, social, and governance (ESG) factors as well as traditional asset pricing factors into the investment decision-making process. Additionally, participants will oversee the operations of a publicly traded asset management firm, balancing portfolio performance with corporate strategies like fee structuring, employee incentives and training, as well as capital allocation.

ESG module:

The simulation includes a fully integrated ESG module where participants must incorporate sustainable investing principles into their portfolio strategies. These decisions influence both long-term portfolio performance and the company's overall reputation and client relations. By balancing ESG factors alongside financial metrics, participants can deliver sustainable value for stakeholders while maximizing financial returns

Participant tasks:

Economic Outlook: Review current market conditions, historical data, and analyst expectations to forecast market performance at both the instrument and asset levels.
Client Analysis: Analyze client types, needs, and preferences. Set fee structures, marketing budgets, and ensure that portfolio decisions align with client objectives.
Strategic and Tactical Asset Allocation: Develop a strategic asset allocation based on client profiles. Make tactical adjustments to asset classes and currencies to exploit short-term opportunities.
Investment Decisions: Manage asset-level holdings, access detailed information on individual securities, and ensure alignment with ESG goals.
Analyst Reports & Performance Attribution: Utilize analyst reports to assess market trends and evaluate the success of portfolio tilting and strategic allocations.
Corporate Strategy: Oversee your asset management firm's capital structure, payout policies, employee incentives, and client satisfaction.
Review & Submit Decisions: Continuously review projections and finalize team decisions before each round.
Performance Review: After each round, compare results with competitors and refine your strategy based on performance attribution.

Key learning areas:

Participants will gain in-depth experience in portfolio management, economic forecasting, client relations, and ESG integration. Key competencies include strategic asset allocation, tactical adjustments, investment styles, and performance analysis. The simulation integrates fundamental concepts from finance, economics, corporate management, and sustainability, helping participants understand how these disciplines interact in investment management.

Key success factors:

Participants are evaluated based on both financial performance (returns, risk, client satisfaction) and their ESG performance (sustainability metrics and ethical governance). The simulation generates comprehensive overall, as well as team specific reports (based on the skill of its analysts) that allow participants to evaluate their decision-making success. Teams are compared based on shareholder value creation, financial performance and client satisfaction, demonstrating their ability to balance financial goals including sustainable investing practices with corporate success.

Expected outcome:

Upon completion, participants will have gained practical experience in managing investment portfolios in dynamic market environments, balancing client needs with financial and sustainability goals. They will understand the complexities of asset allocation and quantitative investment management including factor and ESG investing practices. This hands-on experience equips them with the skills needed for (responsible) investment management in a real-world setting.

Adaptability:

Cesim Invest offers modular customizability, allowing instructors to adjust case scenarios, market conditions, and client profiles to suit different educational or professional training settings. The system supports different learning levels, making it suitable for undergraduate, graduate, and corporate training programs.

Available languages:

Currently available in English, with plans for additional language support based on user demand and partnerships.

Customers:

The University of Liechtenstein and Libera Università di Bolzano partnered in developing this game with funding from the Erasmus+ program of the European Union.