FOR IMMEDIATE RELEASE PRESS RELEASE 2008/2009 TradeQuest Program Final Overall Results Announced Saturday 18 April 2009 Manama, Bahrain: 64 students who took part in a simulated stock trading program were honoured today at an Awards Luncheon at the Crowne Plaza Hotel. The final overall results for the 2008/2009 TradeQuest Program – The Investment Trading Challenge – were announced at the luncheon which was attended by over 150 students and their families, program organizers, Ministry of Education officials, senior representatives from sponsoring organizations and other invited guests from the community. TradeQuest is held under the auspices of the American Chamber of Commerce (AmCham) in Bahrain, and is sponsored by 12 organizations and banks. The TradeQuest participants are students from both private and public schools in Bahrain with teams from Al Noor International School, Bahrain Bayan School, Bahrain Government Secondary Schools, Abdul Rahman Kanoo International School, Ibn Khuldoon National School, Naseem International School and St Christopher's School. The awards were presented by – Dr Huda Al Maskati – Executive Director-Corporate Services of the Central Bank of Bahrain and Mr Azam Haq – Director of the Program. The TradeQuest program, launched and managed by the American Association of Bahrain, is now in its 12th year and the 2008/2009 TradeQuest Program has been yet another success. As the results reflect, not only are all the teams winners in the financial sense, but they have also gained from the learning experience, the team work, and the taste of "real world" financial markets generated by the program. During the TradeQuest trading period extending December 2008 to March 2009, the US capital markets faced severe headwinds emanating from the bursting of the US real estate bubble and the subsequent spillover into the supporting financial instruments and the ensuing credit crunch. Although more stable than last year, the S&P 500 Index was down -0.03% (- 0.10% annualized) during this four month period. On the other side, prevailing global financial crisis and volatile economic dynamics resulted left Bahrain Stock Exchange Index taking a plunge during the four month period losing -18.38% (-47.06% annualized). The teams made their final financial presentations in March 2009 to the members of the Investment Review Committee (IRC). Presentations were assessed based on a series of factors that included comprehension of the markets, strategy execution, teamwork, risk management and presentation delivery. The Committee then met and finalized their evaluation of each team's overall performance throughout the entire program. Presentations were allocated 60% of the overall scoring with 40% being allocated to actual financial performance. This year’s victory was bagged by Al Noor International School, claiming the trophy for two years running. The winning team was advised by CFA Society, Bahrain. Al Noor International School outperformed the S&P500 (-0.03%) but could not finish above the BSE (-18.38%) benchmark performance registering +17.21% and -20.17% returns respectively in the approximately four month trading period, while maintaining more or less similar risk profile of its portfolio as measured by annualized volatility of 39.52% versus S&P Index volatility of 33.96% and significantly higher volatility of 72.46% versus the BSE Index volatility of 10.09%. Finishing second in 2008/2009 TradeQuest Program was Ibn Khuldoon National School team with Investcorp Bank as the investment advisor. Dr Huda Al Maskati thanked and congratulated the students for their hard work and efforts and then handed out the certificates to the 64 participants. TradeQuest – The Investment Trading Challenge – is a business/education partnership program operated in Bahrain under the auspices of the American Chamber of Commerce (AmCham) in Bahrain, the Bahrain Stock Exchange, and the BIBF. 2008/2009 TradeQuest sponsors also included the CFA Bahrain, Ernst & Young, Gulf International Bank, Investcorp Bank, Ministry of Education, Securities & Investment Company, TAIB Bank, United Gulf Bank, and the University of Bahrain. ___________________ Note to Editors TradeQuest – The Investment Trading Challenge is a business/education partnership program operated in Bahrain under the auspices of the American Chamber of Commerce (AmCham), Bahrain, the Bahrain Stock Exchange and the BIBF. The program, now in its twelfth successful and expanded year, was founded by the American Association of Bahrain (now merged with the American Chamber of Commerce in Bahrain, and two dedicated Economics teachers at the Bahrain School. In 2002, the program was expanded to award the winning team The Michael J Langton Trophy, named in honor of the late Michael J Langton, Director of the BIBF and one of the founders of the program. The TradeQuest directors have developed the program to meet four basic objectives. First, they set out to establish a program that stimulates relevant learning through realistic experience. Second, the program builds an understanding of financial principles at the high school level. Third, meaningful interaction between the business and education communities is a necessity. Last, in consideration of Bahrain’s prominence as a financial center in the region, TradeQuest creates a broader understanding of the financial services sector in Bahrain. The TradeQuest program is designed for high-potential Economics students at the high school level, and was piloted at Bahrain School in 1997. The program now includes Ibn Khuldoon National School, St Christopher’s Senior School, Bahrain Bayan School, Government Secondary Schools, Abdul Rahman Kanoo International School, Al Noor International School and Naseem International School. The program is operated as a competitive financial simulation and is geared to give students realistic experience in the stock markets, with particular focus on understanding the markets, analyzing and selecting stocks, and managing a portfolio of equity investments listed on US stock exchanges, as well as the Bahrain Stock Exchange. The business/education partnership aspect of the program is achieved through the sponsorship of each team of students by investment professionals from prominent financial institutions in Bahrain. The 2008-2009 TradeQuest teams are sponsored by the Bahrain Stock Exchange, BIBF, CFA Bahrain, Ernst & Young, Gulf International Bank, Investcorp Bank, Ministry of Education, Securities & Investment Co, TAIB, and United Gulf Bank. Executives from each of these institutions ‘coach’ the student team members to help them develop trading strategies and to decide which stocks to buy and sell. The trading period runs from October through April, and teams are measured by how well they manage their overall portfolio and the profit they earn. Most importantly, the teams are assessed on how well they demonstrate their understanding and practice of the program’s learning objectives. Each team is ‘capitalized’ with US$ 4 million plus BHD 500,000 of hypothetical equity and develops and presents a strategy to the Investment Review Committee (IRC). The IRC comprises Senior Executives from the financial services community in Bahrain. Team members work with their advisors to establish an investment policy and trades to implement their strategies. Periodically, at the end of three 5-6 week trading periods, teams report back to the IRC on the performance of their portfolios. The IRC requires that the teams justify their strategies, explain their investment allocations, and understand the strengths and weaknesses of their portfolio. Team presentations are assessed on strategy consistency, financial performance, risk controls, teamwork and trading discipline. Although there is a natural competitive emphasis on the financial performance of each team, everyone involved with the TradeQuest program is a winner. The TradeQuest experience has over the years proven to be a valuable extra-curricula activity for those students choosing to pursue business programs at the college and university levels. For further information or questions please contact: Ms. Anne Khoshabi TradeQuest Program Administrator Tel +973 39693765 Email: [email protected] .