Portfolio Management Simulation

Focus:

This simulation focuses on practical portfolio management in a dynamic stock and bond market.

Participant tasks

Players act as individual investors, allocating their funds among 16 fictional stocks spanning four industries, one government bond, and one corporate bond. They receive historical economic data, basic financial statements for each company, and ESG insights. At each step, participants must monitor market developments and adjust their holdings by making decisions on when to buy, hold, or sell.

Key learning areas

By tracking performance round to round, learners gain firsthand experience of risk-adjusted returns, investment strategy refinement, and effective decision-making under uncertainty. Participants familiarize themselves with key financial concepts such as fundamental analysis, market trends, and portfolio diversification, while also exploring how broader economic developments shape investment outcomes.

Key success factors

Successful outcomes are determined by both absolute and risk-adjusted returns, taking into account portfolio volatility, transaction costs, and overall market performance. Players who adapt effectively to market shifts, diversify wisely, and consistently align their portfolios with evolving opportunities will see improved results.

ESG module

Instructors can choose to enable ESG data for the players, allowing participants to incorporate sustainability factors into their investment strategies.

Expected outcome

By the end of the simulation, participants will have hands-on experience in building and managing a personal investment portfolio, gaining insight into the interplay between economic indicators, corporate fundamentals, and market sentiment. They will walk away with a heightened awareness of the role that responsible investing and strategic decision-making play in achieving both financial and non-financial objectives.