THISDAY Model Portfolios Maintain Growth, Hit 46%  


By Goddy  Egene  

 THISDAY Model Portfolios (TMPs) have maintained positive performance, hitting 45.6 per cent as at last Friday.  The stock market has recorded some level of volatility in recent times with the benchmark index posting a year-to-date growth of   9.78 per cent. Specifically,   the market rebounded last week, rising by 1.05 per cent. However, an analysis of the TMPs has shown that they maintained their positive trend.

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 is made up 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.

However, a look at the performance of the four of the portfolios showed that a growth of 45.6 per cent has been recorded.  This implies that the N40 million imaginary fund deployed by the four firms has improved to N58,246,232  as at last week.

A further breakdown   of the   individual portfolios  put Portfolio C  and Portfolio D ahead with a gain of 56.9 per cent apiece, showing that  the N10 million deployed by the portfolios  stood at N15.687 million apiece    as at last week.  Portfolio B, recorded a growth of 41.6 per cent as the value of   N10 million deployed, has improved to N14.164 million.  Portfolio A posted an appreciation of 27.1 per cent, indicating that    the  N10 million deployed, has improved to N12.706 million.

A further analysis of the individual stocks in the  Portfolio D showed that  only one recorded a decline of 16 per cent, while  the remaining nine stocks have  appreciated since the introduction of  the TMP.

The highest gain is 142 per cent, trailed by 117 per cent, followed by  79 per cent. Others included: 53 per cent; 33.5 per cent;  28.7 per cent; 21.6 per cent; 21.2 per cent and  2.0 per cent.