Rules

The Unit Trust Corporation
School Investment Game

  • The game will be conducted over a thirteen-week period (January 21st-April 14th 2008)
  • A school will be submit only 5 teams
  • Each team will consist of a maximum of 5 students and a minimum of 3 students

Teams would be able to invest in the following instruments:

INVESTMENT INSTRUMENTS:

  • UNIT TRUST FIRST UNIT SCHEME
  • GROWTH & INCOME FUND
  • UNIT TRUST SECOND UNIT SCHEME - MONEY MARKET FUND
  • FIXED DEPOSIT SAVINGS ACCOUNT
  • COMPANY SHARES TRADED ON THE T&T STOCK MARKET
  • CHACONIA INCOME & GROWTH FUND
  • US DOLLAR MONEY MARKET FUND

Each competitor (school team) will be allotted a notional sum of twenty thousand dollars ($20,000.00) for investment. The maximum size of each team is five (5) members. Competitors must invest in all of the seven (7) instruments in any proportion but no more than eighty per cent (80%) of investible funds may be in one instrument. In addition not less than TT five hundred dollars (TT $500) may be invested in anyone stock on the Stock Market or any other instrument.

Competitors will indicate their initial investment choices, as shown, on the attached specimen initial portfolio statement.

Changes in investment will be made on the disposal of assets and the acquisition of assets sheets accordingly A report will be generated and the school will be able to monitor its portfolio status on line on a daily basis. At the completion of the game, the teams with the highest return will be adjudged the winner.

Interest rates on Savings & Fixed Deposits will be determined by the Unit Trust Corporation and will be based on the best current market rates for the dollar amount invested. Dividends earned from investments in Company stocks and the Unit Trust First Scheme will be determined from historical data for the period and will be applied at the end of the period. Since income is credited quarterly in the Unit Trust Second Scheme and the US Dollar Money Market Fund, the accrued income will be calculated at the end of the quarter Prices for the Chaconia Fund (US Dollar Mutual Fund) are quoted along with the unit prices in the daily newspapers.

Prizes will be awarded to the First, Second, Third and Fourth place winners only as follows:¬

First Prize:

$1000.00 in Supplies and Equipment and a Challenge Trophy

Second Prize:

$6000.00 in Supplies and Equipment and a Trophy

Third Prize:

$4000.00 in Supplies and Equipment and a Trophy

Fourth Prize:

$2000.00 in Supplies and Equipment and a Trophy

In addition, all winning team members (First to Fourth places), will have an account opened for them in the Growth and Income Fund in the amount of Two Hundred Dollars ($200.00).

There will also be prizes for the monthly winners along with prizes for the teachers of the winning teams.

INVESTMENT INFORMATION SHEET


  1. TT$ INCOME FUND
    Fixed price per unit (buying or selling)$20.00TTD

  2. CHACONIA
    Prices fluctuate daily.Daily prices on UTC Website and Daily Newspaper.

  3. GROWTH AND INCOME FUND
    Prices fluctuate Daily prices are available on the UTC Website and the Daily Newspaper.

  4. US$ INCOME FUND
    Fixed price per unit (buying or selling)$20.00USD.

  5. ENERGY FUND
    Prices are calculated on a daily basis per unit (buying or selling): $20.00

  6. ASIA-PACIFIC FUND
    Prices fluctuate. Daily prices are available on the UTC Website and the Daily Newspaper.

  7. LATIN-AMERICAN FUND
    Prices fluctuate. Daily prices are available on the UTC Website and the Daily Newspaper.

  8. THE EUROPEAN FUND

  9. GLOBAL BOND FUND
    Prices fluctuate. Daily prices are available on the UTC Website and the Daily Newspaper.

  10. FIXED DEPOSIT
    Deposits may be placed for varying maturity periods: 3 months at a rate of 3.00% per annum. A break-rate will be applied if the fixed deposit is broken before the selected maturity period and will be equivalent to the regular savings rate of 1.5% Tax of 5% on interest earned will be applied to interest income earned at the end of the period.

  11. SAVINGS DEPOSIT
    Rate: 1.5%

  12. TRINIDAD & TOBAGO STOCK MARKET
    The daily newspapers (Trinidad Guardian, Newsday and Trinidad Express) give details on the prices of stocks currently being traded on the Trinidad & Tobago Stock Exchange. Trading days are Tuesdays, Wednesdays and Fridays. The price paid for any stock will be the closing price of the last trading day (i.e. Wednesday) of the week in which the request is submitted Shares may be sold at any time. Any increase in the closing price of the share at the time of selling will constitute the capital gain and will form part of the return on investment. Dividends earned will be determined trom historical data and applied at the end of the period. A charge of 1.625% broker's fee is applicable whenever shares are bought or sold. Broker's fees = number of shares x price per share x .01625 When purchasing shares, total capital needed = number of shares x price per share + broker's fees. When disposing of shares, net proceeds from the liquidation = number of shares x price per share - broker's fees

  13. CHACONIA
    The price of the Chaconia Fund is quoted in US$ and is found in the daily papers together with the quoted unit price. In calculating the value of funds required to purchase shares in this fund, an exchange rate of TT$6.15 to US$l is to be used throughout the game. Dividends and Capital gains will be applied at the end of the period. e.g: To purchase 100 Shares in Chaconia at a price of US $9.82 The TT equivalent: $9.82 x 6.15 x 100 = $6,039.30

  14. US DOLLAR MONEY MARKET FUND
    The price of the US dollar Money Market Fund is quoted in US$ and is set at a fixed unit price of US$20.00. In calculating the value of funds required to purchase shares in this fund, an exchange rate Ql;TI$6.15 to US$1 to be used throughout the game. Since income is credited quarterly in this Fund, the accrued income will be calculated at the end of each calendar quarter.

Calculation of Broker Fees

ACQUISITION OF STOCK MARKET SHARES

Calculation of Broker's Fees
Name of Stock:
WITCO
No. of shares to be purchased:
250 Price per share: 6.66
Broker's Fees
Broker's Fees = No. of shares x price per share x .01625 = 250 x 6.66 x .01625 = $27.06
Total Investment Value
Total Investment Value (Capital needed for purchase of shares) = No. of shares x price per share + Broker's Fees = 250 x 6.66 + 27.06 = 1,692.06
Net Value of Investment
Net Value of Investment = No. of shares x price per share = 250 x 6.66 = $1,665.00

DISPOSAL OF STOCK MARKET SHARES

Calculation of Broker's Fees
Name of stock:
WITCO
No. of Shares to be sold:
100
Price per share:
6.70 Broker's Fees: = No. of shares x price per share x .01625 = 100 x 6.70 x .01625 = $ 10.89
Net proceeds for Liquidation
Net proceeds for Liquidation = No. of shares x price per share - brokers fees ( Funds available for acquisition of other assets) = 100 x 6.70 - 10.89 = $ 659.11

Please note that when buying and selling shares the price used is always the closing quotation of the date of the transaction i.e. Wednesday's trading which will appear in the Thursday's daily newspapers. Incorrect share prices result in inaccurate broker's fees, net investment value, total investment value and net proceeds from liquidation.