1. What are the goals of the Investment Society and can you tell me how the organization got started?
The main aim of the MUIS is to raise awareness about how to invest in the share market and teach members about the mechanics of investing. On top of that, we also try to give our members a clearer idea of what to expect in the field of Finance. I think everyone tends to get caught up in the whole ‘I want to be an Investment Banker’ ambition simply because it is glamorous, pays well and is all we hear about in the media. Little do they know the rigors attached to the job that are not mentioned! The MUIS seeks to address this issue by broadening the general knowledge of our members on what Banking, Finance and the share market are really about.
As to how the organization got started, 3 students in Melbourne University founded the Entrepreneurial Investment Club (EIC) in 2006 to help bring out the entrepreneurial spirit in students. However, the club eventually changed its direction towards investing in the share market and at the end of 2009, it was decided that a change in name was required and this is how the MUIS came about. We are a relatively small club compared to the more established names on campus but are gradually building up our membership base. 2010 promises to be an exciting year!
2. What type of events does the MUIS run during the year?
Basically, the MUIS meets once a week throughout the teaching semester which is approximately 12 weeks. In each meeting, the Committee comes up with a Market Update to review the week that was in the global markets and also a Feature Presentation. The Feature Presentation topics can range from “Oil, Gold & the USD” to stuff like “Quants: Playing Chess With God”. We try to diversify our members’ knowledge about what is out there in the industry.
As for actual events, the MUIS brings in guest speakers. Last semester, about 20 of our members went to visit a stock broking firm. Not only were we treated to a free lunch but also a talk from the Director of the firm about stock broking, how she got there and also advice on how to succeed in the industry. On the 9th of March, we will be hosting a Managing Partner from a Private Equity firm. It promises to be an interesting talk as we will be given an insight into where Private Equity is at after the GFC.
2. Jian Ming, can you tell me about yourself
I am actually in my final year (5th) of study with a double major in Mechanical Engineering & Finance. Initially, I had no inclination whatsoever towards Finance though my interest began to flourish after I did a short work experience stint at a Fund Management firm back home in Malaysia.
Realizing that the courses in university gave little insight into what I learned from my work experience and about the financial world, I went out in search of a club on campus that could help me out. That was how I found the EIC/MUIS. This will be the second year that I’ve been involved on the Committee and it has been quite exciting working on the rebranding of the club.
4. What’s your take on the economic conditions of Australia?
The Reserve Bank of Australia (RBA) only just increased the cash rate by 25 basis points on the 2nd of March to 4.0%. It was a gutsy move given the fact that in the previous two RBA meetings, the rate had been held steady at 3.75% after 3 consecutive rises towards the end of 2009. Therefore, the tightening of monetary policy can be seen as a sign that the Australian economy is doing better than expected in the opinion of the RBA. This is further supported by the fact that Australia’s economy grew at its fastest quarterly pace in almost two years in Q4. GDP rose 0.9% in Q4 and 2.7% YoY according to the Australian Bureau of Statistics.
The emergency monetary stimulus that had been put in place when the economic outlook was weaker last year has been lessened to a certain degree by the RBA. After the downturn, business sentiment and consumer confidence are on the rebound and looking strong. I feel that the worst is over though until Greece’s debt issues are resolved, I will still be on my toes for any potential spill-over effects.
5. What advice do you have for students who are looking to become leaders on campus or in business?
I guess the main thing would be to get involved in the committee of a club or society that you are passionate about. The main advantage of being on a committee is that it enables you to gain leadership experience as you are the one determining the direction of the club and how things are run.
Also, securing work experience in the field that you are interested in will reap huge benefits as it really shows you what to expect when you graduate.
6. Where can students go to get more information about your organization or to reach out to you?
Our website is www.einvestclubs.com and our email for correspondence is einvestclubs@gmail.com.
