By GoddyÂ Â Egene Â
Â THISDAY Model Portfolios (TMPs) have maintained positive performance, hitting 45.6 per cent as at last Friday.Â Â The stock market has recorded some level of volatility in recent times with the benchmark index posting a year-to-date growth ofÂ Â Â 9.78 per cent.Â Specifically,Â Â Â the market rebounded last week, rising byÂ 1.05 per cent. However, an analysis of the TMPs has shownÂ that they maintained their positive trend.
TheÂ 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.Â Â Â The investment houses involved in the project are Afrinvest Limited, FSDH Securities Limited, Capital Assets Limited, Meristem Limited andÂ 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.
Â Each of the partner stock broking housesÂ Â constructedÂ Â Â a portfolio of 10 stocks selected according to their individual best judgement and using their best and well tested stock selection and investmentÂ strategies. Each of themÂ thenÂ deployedÂ Â an imaginary fund of N10 million to invest on the Â 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.Â Â This implies that the N40 million imaginary fund deployed by the four firms has improved to N58,246,232Â Â as at last week.
A further breakdownÂ Â Â of theÂ Â Â individual portfoliosÂ Â put Portfolio CÂ Â and Portfolio D ahead with a gain of 56.9 per cent apiece, showing thatÂ Â the N10 million deployed by the portfoliosÂ Â stood at N15.687 million apieceÂ Â Â Â as at last week.Â Â Portfolio B, recorded a growth of 41.6 per cent as the value ofÂ Â Â N10 million deployed, has improved to N14.164 million.Â Â Portfolio A posted an appreciation of 27.1 per cent, indicating thatÂ Â Â Â theÂ Â N10 million deployed, has improved to N12.706 million.
A further analysis of the individual stocks in theÂ Â Portfolio D showed thatÂ Â only one recorded a decline of 16 per cent, whileÂ Â the remaining nine stocks haveÂ Â appreciated since the introduction ofÂ Â the TMP.
The highest gain is 142 per cent, trailed by 117 per cent, followed byÂ Â 79 per cent. Others included: 53 per cent; 33.5 per cent;Â Â 28.7 per cent; 21.6 per cent; 21.2 per cent andÂ Â 2.0 per cent.