THISDAY Model Portfolios Rise Further

THISDAY Model Portfolio (TMP) recorded another positive performance last week with the cumulative gain hitting 17.2 per cent within 16 weeks of its introduction.

TMP consists of five different portfolio types constructed individually in conjunction with five leading stockbroking firms in the country with different investment objectives.

Last week ended October 13, 2017, marked the 16th week the TMP was introduced and it has generated a total return of N8.602 million on a combined hypothetical portfolio value of N50 million. The return translates to 17.2 per cent, compared with 16.8 per cent posted for the week ended October 6, 2017.

TMP, an initiative of THISDAY Economic and Financial Intelligence Unit (TEFIU), is designed to enable leading stockbrokers and investment houses in the country share their trading skills and methodologies with ordinary investors. The investment houses involved in the project are Afrinvest Limited, FSDH Securities Limited, Capital Assets Limited, Meristem Limited and Lead Advisory Limited .

The project involved asking each of the partner stock broking houses in the country to construct a portfolio of 10 stocks selected according to their individual best judgement and using their best and well tested stock selection and investment strategies . They were then asked to each deploy an imaginary fund of N10 million to invest on the ten stocks in whatever proportions they considered best.

The various portfolio have shown resilience and impressive performance over the weeks. An analysis of the individual portfolio indicates that portfolio C maintained its number one spot with 28.6 per cent last week, improving from 27.6 per cent the previous week. In all, that portfolio value has increased from N10 million to N12.857 million. This means that the portfolio has returned N2.857 million on the N10 million deployed.

Similarly, Portfolio D maintained the number two spot, generating a return of N2.222 million or 22.2 per cent as at last week. This is an improvement on the 20.9 per cent recorded the previous week.

Also, Portfolio B, which posted a return of N1.83 million or 18.3 per cent the previous week, rose further to N2.062 million or 20.6 per cent last week. Portfolio A remained at the fourth position recording growth of 14 per cent, up from 13.7 per cent the previous week.

However, Portfolio E, recorded a decline last week to 0.6 per cent, compared with 3.8 per cent two weeks ago. This means the N10 million deployed 16 weeks and rose to N10.380 million two weeks ago, has declined to N10.060 million as at the close of trading last Friday. A further analysis of the individual portfolios, show that Portfolio C, which has delivered the highest return of 28.6 per cent across board, has all the 10 stocks in the positive territory. The highest gainer among the

stocks in the portfolio since the introduction of the TMP is 54 per cent. Another stock followed with 47.2 per cent, while the third highest gainer recorded 37.7 per cent, while the fourth highest gainer is 34.8 per cent.

Others included: 24 per cent; 22 per cent; 19 per cent; 12.0 per cent; 10.6 per cent and 2.5 per cent. Portfolio B, which has recorded an overall return of 22 per cent, has only two negative performing stocks as at last Friday. The highest price gainer among the stocks in this portfolio is 54 per cent, followed by another stock with 41.9 per cent, while another appreciated by 37.6 per cent.