How would you invest a million francs?
Banque Privée Edmond de Rothschild (EDR) and Hotel Institute Montreux help students gain investment insights through an innovative Stock Market Competition
MONTREUX, Switzerland - What would you do if you had a million francs to invest? This is the question posed to Hotel Institute Montreux’s Bachelor of Business Administration in Hospitality Management students who have chosen to specialize in Financial Analysis and Wealth Management.
Edmond de Rothschild is an independent, family-controlled financial group specializing in Private Banking and Asset Management, with more than 250 years’ experience in the finance world. The group embraces an entrepreneurial spirit, and this partnership, which includes masterclasses hosted by Edmond de Rothschild (Suisse), reinforces Hotel Institute Montreux’s commitment to bringing the real world into the classroom. "Being able to speak to students about your work and giving them insights into what could perhaps be their future career is a privilege," shares Adrian Gutknecht, Banque Privée Edmond de Rothschild (Suisse) Portfolio Manager.
While many bachelor’s programs focus only on corporate finance, Hotel Institute Montreux’s finance specialization students are also taught about financial markets, giving them a competitive edge when entering the workforce or setting up their own venture.
Learning through doing
Each term, during lecturer Denis Klotz’s Portfolio Management class, students—working in teams of two or three—receive an imaginary CHF 1,000,000 to invest in Swiss stocks and bonds.
Edmond de Rothschild (Suisse)’s Portfolio Managers provide each student with an Excel spread sheet that includes a list of Swiss stock and a short description of each company. Each week, students choose how to allocate their budget amongst the different stocks and at the end of that week Edmond de Rothschild (Suisse)’s Portfolio Managers send through the week’s stock prices to add to their Excel sheet, formulated to automatically calculate their performance. This way, students get to put into practice the knowledge they have gained during their Portfolio Management class, and assess which approach works in their favor.
Students also participate in two masterclasses hosted by Edmond de Rothschild (Suisse): one on portfolio management by Adrian Gutknecht, and another on wealth planning and patrimonial strategy by Jean-Philippe Kraft, who adds, "This is a great opportunity to exchange information with very promising students from all over the world."
Gaining in-depth market knowledge
The key learnings students gain through this Stock Market Competition include risk assessment and management, asset allocation, how to effectively research and assess financial markets and economies, and managing the sense of greed, which may lead to poor, risky decision-making. It also gives them an in-depth knowledge of the Swiss stock market.
The response from students has been overwhelmingly positive, with many highlighting the value gained from this virtual hands-on trading experience, and how it has given them a deeper understanding of the macroeconomic environment and the various Swiss public companies in different industries and sectors.
"Having access to Edmond de Rothschild (Suisse)’s private weekly market reports is a real privilege and is an excellent tool to help my team make wiser decisions,” explained one of the participating students. "This competition is giving me great training to better understand and assess risky markets, and the insights I would need if I chose to enter this field in my future career. I am grateful to Hotel Institute Montreux and Edmond de Rothschild for this great opportunity."
Importantly, this learning through gamification assignment also helps break the myth that you need to be a trader to take control of your finances, and gives students the expertise to engage with confidence in conversations around stock markets and trading. Nowadays, almost everyone has access to online trading, and this knowledge gives students skills they can use to invest at a lower scale for their own personal gain.
At the end of the term, the group with the best investments will be offered a prize by Edmond de Rothschild (Suisse).
About Hotel Institute Montreux
Hotel Institute Montreux (HIM) is a Swiss hospitality management school that teaches the business of hospitality to the next generation of leaders and entrepreneurs. Students receive a contemporary education deeply rooted in the Swiss heritage of hospitality and choose one of five industry-endorsed specializations, including luxury brand management, financial analysis and wealth management, human capital and development, senior living industry, and franchise business management. The program is delivered in partnership with Northwood University in Michigan and graduates receive a Bachelor of Business Administration in three years, including two internships, or an MBA designed to be completed in one year with six months on campus and six months online during a paid internship. The MBA is a partnership established over 20 years ago between HIM and DeVos Graduate School of Northwood University. The HIM campus in Montreux is housed in the historic former Hotel Europe, circa 1890, and located on the shores of Lake Geneva in the Swiss Riviera, home to the world-famous Montreux Jazz Festival. To learn more, visit www.hotelinstitutemontreux.com.
About Swiss Education Group
With four schools based across six campuses, Swiss Education Group is Switzerland"s largest private hospitality educator. In total, the Group has over 6,000 students from 111 countries with each school offering a diverse international experience on beautifully located campuses in the French and German-speaking regions of Switzerland. Rooted in the tradition of Swiss hospitality, Swiss Education Group has nearly 40 years of experience in hospitality management and culinary arts education and is committed to equipping tomorrow"s professionals with the leadership and entrepreneurial skills highly sought after in the hospitality industry and beyond. Swiss Education Group schools offer a wide range of courses, including short certificates and Bachelor"s and Master"s degrees, allowing students to choose programs that suit their individual learning needs and interests. Visit www.swisseducation.com for more.