The investment club, trading as Embley Asset Management, comprises a group of dedicated 10 to 14-year-old pupils from Embley, a day and boarding school near Romsey in Hampshire, which meet after school on a weekly basis. All profits raised from the club’s investments will form bursaries to fund school fees for future generations of Embley pupils.
Since the club began three years ago, the children have developed their understanding of macroeconomics, exploring how events such as Brexit and currency fluctuations impact investments, along with risk management and ethical investment. With access to live London Stock Exchange data courtesy of Financial Express, the club had been applying this knowledge in theory and between 31 December 2019 and 31 May 2020, Embley Asset Management outperformed the FTSE 100 index by 5.08% with hypothetical investments.
Club members have responsibilities for accounts, compliance, marketing and all operational functions. All positions are run as much as possible by pupils so they learn the importance of accuracy, timeliness, intra and inter-team cooperation and taking responsibility – with adult supervision to provide guidance.
Now the club has made its first live investment to the value of £1,000 which the pupils raised independently by organising a school fete. In accordance with the wish of pupils when the club was created three years ago, profits from investments will form an endowment fund that will support bursaries for children to attend Embley (specifically, families who would otherwise be unable to afford independent education).
“The club contributes to our school’s overriding aim; the formation of individuals with an appropriate belief in themselves equipped to make a difference in the world. The club introduces the children to a variety of tangible, complex problem-solving experiences. They gain financial literacy, but most fundamentally, they gain an understanding that success in the world relies on a personal set of values. Real and lasting success as a road to personal fulfilment and a happy life comes through selfless engagement with others. The stewardship they demonstrate in the club is one for a lifetime,” Cliff Canning, Embley’s Headmaster, said.
Simon Brooks, who volunteers as the club’s Chief Investment Officer and having spent 25 years in the financial services sector, added: “The club began with no money, no dealer, no financial expert and no investments. The realisation that not only is the club hugely beneficial to pupils, but it has also achieved something completely unique in the UK and created a wonderful legacy for children of the future. This is truly exciting and inspirational.”
The club is looking to create an opportunity for pupils to complete the ‘Investment Management Certificate’ – the investment industry’s base/entry exam – before they leave school. This exam is normally taken by graduates at their first firm of employment.
Charles Stanley Southampton has been pleased to support this initiative as it provides a unique learning opportunity for the children taking part. It not only provides an insight into the world of finance and may inspire a possible career path, but it is something they can relate to in their daily lives by showing how investing can help make your money and savings work harder. The international nature of global stock markets also means pupils can learn much more than just about stocks and shares and provides an invaluable insight into topical themes such as global climate change and human rights.
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Charles Stanley helps pupils at Embley take on the City
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