WARNING

The Next Challenge is an educational contest designed to promote a reasoned and reasonable approach to investment and portfolio management. It does not encourage speculation, even if leveraged ETFs are available as part of the challenge, nor is it a recommendation to invest in any company or product whatsoever.

As they build their portfolios, participants should keep in mind a few simple guidelines:
● Do not pay too much importance to past performance, as past performance is not a reliable indicator of future performance.
● There is no high performance without high risk. Diversification is essential to split risk and build sustainable performance.
● Always check the source of the information, i.e. the company or certified product promoter's website. Beware of information from Internet forums and social networks.

Consult the AMF's sections on investment and portfolio management. You can also refer to each company's Universal Registration Document (UDR) to learn more about the risk factors associated. The UDR are available directly on company websites.

Club:

● Reminder of the Next Challenge rules:

Each challenger has the option of taking part as a team in the competition in addition to or instead of their participation as an individual investor. Team members then form Clubs and compete as members of their Club.

The Club's official representative - referred to as "the President" - is by default the individual profile that has received a minimum of 4 positive answers to join its club.

A club joins the competition only when it reaches a total of 5 members, including the President.

It is no longer possible to recruit new members once the number of 7 members has been reached.

A member may quit a club at any time : but if the club drops under 5 members the club has 7 days to recruit new members otherwise the club is automatically excluded from the competition.

An individual profile can only be a member of a single Club and cannot allocate funds to its own Club.

Find out more about the Terms and Conditions of Next Challenge 2023-2024

Next Challenge Terms and Conditions

Club compostion

● 5 members minimum / 7 members maximum
● Each Club starts with a virtual allocation of €200,000
● Decides its investment strategy collectively, : decisions being taken by majority
● Orders must be execute by validation by only the President.
● Only the president can delete an order that has been voted within the time limit of its non-execution.

Diversification Rules

The club is based on the prudential rule of 5/10/40 that applies to management companies:
● ""No more than 10% in any one security,
● And the sum of securities at more than 5% must not exceed 40%.
● This rule results in a minimum number of 16 securities in the portfolio"..

The evaluation of the performance is made on the basis of criteria:

● Gross VFP performance
● Risk-adjusted performance = Sharpe ratio
● Diversification of the PFV - lines
● Diversification of the PFV - sectors
● Diversification ratio
● Use of information sources: consult, share, post, comment...
● Use of the Dashboard: vote, pin, share, download...
● Networking: private chat, public chat, follow-up Club/Individual profiles...
● Teamwork: fair sharing of tasks between club members in club projects.
● Marketing and communication: videos, presentations, logos, pitches ..
● Coherent execution of investment strategy and policy
● Quiz

DOWNLOAD THE NEXT CHALLENGE #3 2023-2024 CALENDAR

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