THISDAY Model Portfolios Surge to 30.5% amidst Market Rally


By Goddy  Egene

In a week that the Nigerian stock market bench index gained 3.64 per cent, the THISDAY Model Portfolio (TMP) surged higher to hit 30.5 per cent, from 24.7 per cent the previous week.

All the five various portfolios that constituted the TMP sustained positive performance last week, indicating the resilience of the stocks. TMP, which is 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.

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.

An analysis of the performance of the TMP since 24 weeks of its introduction has shown a positive performance. Specifically, as at the week ended December 8, 2017, the N50 million imaginary deployed,  has appreciated to N65.263 million. This implies that it has   generated an aggregate return of N15.263 million or 30.5 per cent.

While the aggregate returns stood at 30.5 per cent, two of the portfolios have generated returns above 40 per cent.  Portfolio C is leading with a return of 44.5 per cent, up from 38.4 per cent the previous week.  The    N10 million deployed by    Portfolio C has thus appreciated to N14.458 million as at last week.

 But Portfolio D, which maintained the second position, made a great jump last week from 34.5 per cent to 43.9 per cent.  This indicates that the N10 million deployed has grown to N14.393 million.

Similarly,    Portfolio B hit a new high of 37.5 per cent from 30.1 per cent.   Its value has improved from N10 million to N13.751 million as at last week.

Portfolio A crossed the 20 per cent threshold to 23.3 per cent last week, from 17.5 per cent last week. Also,   Portfolio E maintained an upward trend rising from 2.7 per cent to 3.3 per cent last week.

 Meanwhile,  the two stocks in Portfolio C that crossed 100 per cent the previous week showed more resilience last week as they rose further to 129.4 per cent and 126.6 per cent from     107 per cent and 104 per cent respectively in the previous week.

This was followed by   56.5 per cent; 36.5 per cent; 31.2 per cent; 22 per cent; 21.2 per cent; 12.9 per cent; 10 per cent; and 4.0 per cent.