THISDAY Model Portfolios Open Year with 4.1% Growth
Having posted an aggregate return of 28.5 per cent in 2017, the THISDAY Model Portfolio (TMP) has started on a bullish note as it gained 4.1 per cent in the first week of 2018.
After posting a growth in 2017 after three years of decline, the equities market commenced 2018 on a positive note. Specifically, the Nigerian Stock Exchange(NSE) All- Share Index (ASI) posted a gain of 1.73 per cent. However, a look at the performance of the TMP outperformed the NSE ASI in the first week of 2018. A further analysis of the individual portfolios showed even higher growth last week.
TMP is an initiative of THISDAY Economic and Financial Intelligence Unit (TEFIU), 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 .
TMP consists of five different portfolio types constructed individually in conjunction with five leading stockbroking firms in the country with different investment objectives.
Each of the partner stock broking houses constructed a portfolio of 10 stocks selected according to their individual best judgement and using their best and well tested stock selection and investment strategies. Each of them then deployed an imaginary fund of N10 million to invest on the 10 stocks in whatever proportions they considered best.
After recording a growth of 28.5 per cent within the first six months of its introduction last year, the TMP has continued with its bullish trend to hit 32.6 per cent last week.
With this performance, the N50 million imaginary deployed in the TMP has appreciated to N66.306 million, translating to 32.6 per cent. About 4.1 per cent was achieved last week.
An analysis of the individual portfolios showed that they closed higher. However, Portfolio D has climbed to the top to displace Portfolio C as the highest overall gainer. While Portfolio C, which has been leading closed with a gain of 48.3 pe cent,
Portfolio D recorded 48.8 per cent. This implies that N10 million deployed by Portfolio D has improved to N14.888 million, while that of Portfolio C rose to N14.83 million.
Portfolio B ended last week at 39.7 per cent, showing that its value has grown from N10 million to N13.973 million. Similarly, Portfolio A has improved from N10 million to N12.528 million, indicating a growth of 25.3 per cent.