THISDAY Model Portfolios Sustain Growth, Rise to 44%


By Goddy  Egene  

 The   THISDAY Model Portfolio (TMP) maintained its strong performance last week, rising further to 44.2 per cent as four of the constituents portfolios trended northwards.

Although the   equities market sustained its previous week growth to gain 0.68 per cent last week, the TMP outperformed the   Nigerian Stock Exchange (NSE) All-Share Index (ASI) last week. The TMP appreciated from 41.8 per cent to 44.2 per cent, TMP improved from 41.8 per cent to a new high of 42.88 per cent. Apart from Portfolio E that declined, the remaining four recorded significant growth that contributed to the jump witnessed by the TMP.

The 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 .

It comprises 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.

Looking at   the TMP as at the close of trading last Friday, it has grown by 44.2 per cent. This implies that   the value of the N50 million imaginary fund deployed by the five firms has appreciated to N72.089 million.

However, a further breakdown of the performance of individual portfolio, showed that Portfolio  C remained the highest gainer. It advanced to 67 per cent from 64.1 per cent the previous week.  It means that the N10 million deployed by the portfolio has improved to N16.697 million as at last week.

Similarly, Portfolio D maintained its second position, having gained 65.1 per cent, up from 63.5 per cent two weeks ago.  This implies that the N10 million deployed by the portfolio has increased from N16.359 million the previous week to N16.505 million last week.   Portfolio B rose from 51.8 per cent the previous week to 55.16 per cent last week, indicating that the N10 million deployed has grown to N15.516 million. In same vein,   Portfolio A appreciated   from 33.6 per cent to 34.0 per cent last week.   This implies that the N10 million deployed has grown to N13.399  million.   On the negative side, Portfolio E   fell from 1.3 per cent to positive to 0.29 per cent negative. This means that the N10 million deployed has reduced to N9.971 million.