By Goddy Egene
THISDAY Model Portfolio(TMP), consisting of five different portfolio types constructed individually in conjunction with five leading stockbroking firms in the country with different investment objectives has maintained a steady growth for 15 weeks, generating a total return of N8.43 million on a combined hypothetical portfolio value of N50 million.
The return, which amounts to about 16.8 per cent, is an improvement on the 12.9 per cent growth recorded for the week ended September 29, 2017. This implies that the TMP gained 3.9 per cent last week alone, compared with the 2.49 per cent posted by the Nigerian Stock Exchange (NSE) All-Share Index.
TMP, an initiative of THISDAY Economic and Financial Intelligence Unit (TEFIU), was 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 which began 15 weeks ago (July 3, 2017) involved asking each of the partnering 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.
Analysis of the return indicates that portfolio C, which recorded the highest return of N2.3 million in 14 weeks, improved on that growth last week and rose to N2.763 million.
This means that the portfolio has returned N2.7 million on the N10 million deployed, representing 27.6 per cent.
Portfolio D generated the second highest return of N1.7 million (16.8 per cent as the week ended September 29, 2017 and it improved on the return last week, raising it to N2.1 million or 20.9 per cent.
Similarly, Portfolio B, which posted a return of N1.4 million (14.0 per cent) two weeks ago, improved on its performance to N1.83 million or 18.3 per cent. Portfolio A maintained its fourth position, closing last week with a return of N1.366 million (13.7 per cent), which is a significant growth compared with N0.9 million the previous week.
Also, Portfolio E, recorded an improvement last week to raise its value of return to N0.380 million (3.8 per cent), up from N0.1 million (1.0 per cent) prior to last week.
A further analysis of the individual portfolios, shows that Portfolio C, which has delivered the highest return of 27.6 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 58 per cent. Another stock followed with 45 per cent, while the third highest gainer recorded 35.7 per cent, while the fourth highest gainer is 32.8 per cent.
Others included: 21 per cent; 18 per cent; 18.1 per cent; 14.6 per cent; 7.4 per cent and 5.6 per cent.
Portfolio B, which has recorded an overall return of 20.9 per cent, has only one negative performing stock as at last Friday. The highest price gainer among the stocks in this portfolio is 58 per cent, followed by two stocks with 35.7 per cent apiece. Another two stocks recorded 21.9 per cent each, yet another stock has posted a gain of 20.9 per cent. Others are: 18 per cent and 0.10 per cent.