Lesson 1: Introduction & Simulation Setup
IMAG — Investment Management Game
Learning Outcomes
By the end of this lesson you will be able to:
- Explain the purpose and structure of the IMAG simulation
- Navigate the Cesim Invest platform and locate key decision screens
- Describe the round-by-round investment process
- Assign team roles and agree on a collaborative workflow
- Understand how the simulation is graded
The IMAG Project
What is IMAG?
- An Erasmus+ project connecting universities across Europe
- A structured investment simulation using the Cesim Invest platform
- Six lessons that take you from blank mandate to full portfolio review
- Designed to mirror real-world investment management processes
→ Content: project background, partner institutions, learning goals.
Why a Simulation?
- Safe environment to make — and learn from — real portfolio decisions
- Immediate feedback through performance metrics each round
- Exposure to the full investment cycle: research → decision → review
→ Content: simulation vs. classroom theory; what you can and cannot do in Cesim.
The Cesim Invest Platform
Platform Overview
- Browser-based; no installation required
- Key navigation areas: Economic Outlook · Strategy · Markets · Analyst · Results
- Data updates each round — decisions are locked at the round deadline
→ Content: annotated screenshot of the platform home screen.
The Asset Universe
- Equities (domestic & international)
- Fixed income (government & corporate bonds)
- Cash & money market instruments
- Alternative assets (commodities, real estate, digital assets)
- Currency exposure
→ Content: screenshot of the Markets screen with asset list.
Key Performance Indicators
| KPI | What it measures |
|---|---|
| Portfolio return | Absolute & relative to benchmark |
| Sharpe ratio | Risk-adjusted return |
| Tracking error | Deviation from benchmark |
| ESG score | Sustainability integration |
| Drawdown | Maximum loss from peak |
→ Content: where to find each KPI in Cesim Results.
How the Game Works
Round Structure
- Each round = one quarter (or one year, depending on setup)
- Sequence: read data → form views → submit decisions → observe results
- Decisions carry over; you must actively rebalance
→ Content: round timeline diagram.
Decision Deadlines & Workflow
- Deadlines are fixed — late submissions are not accepted
- Recommended team workflow: research → debate → agree → submit
- Document your reasoning (feeds into the feedback loop, Lesson 6)
→ Content: sample team calendar / decision log template.
Scoring & Grading
- → Content: grading rubric (risk-adjusted return, ESG, IPS consistency, reflection quality).
Your Team
Suggested Role Allocation
| Role | Responsibility |
|---|---|
| Chief Investment Officer | Final decision sign-off, IPS owner |
| Macro Analyst | Economic outlook, scenario design |
| Portfolio Manager | SAA/TAA, risk budgeting |
| ESG Analyst | Sustainability scoring, impact assessment |
| Performance Analyst | Results review, attribution |
→ Adapt roles to team size. Rotate if possible.
Key Takeaways
- IMAG replicates the full investment management process in six lessons
- Every decision should be traceable to your IPS (Lesson 3)
- Document your reasoning — you will review it in Lesson 6
Simulation Task — Lesson 1
Before next lesson
- Log in to Cesim Invest and explore all five navigation sections
- Agree on team roles and a communication channel
- Read: Introduction chapter in the teaching materials
Further Reading
- Teaching materials: Introduction chapter
- Engine documentation: asset universe and KPI definitions
