THISDAY Model Portfolios Remain Stable with 30.7% Growth


By Goddy  Egene

THISDAY Model Portfolio (TMP) followed the bearish trend at the stock market to close lower last week at 30.7 per cent. However, Portfolio D has displaced Portfolio C to become the highest advancer.

Shortly after the introduction of TMP last year, Portfolio C has been dominating, recording the highest growth. But that is no longer the case as Portfolio D closed last week with the highest growth.

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.

Four of the stockbroking firms have been recording growth  in their respective  portfolios, while one has recorded instability in its performance. As at the close of trading last week,  the  four portfolios remained positive. An analysis of the individual performance showed that Portfolio D has so far recorded a growth of 53.8 per cent. This implies that the  N10 million deployed by the portfolio has improved to N15.381 million.

Portfolio C followed with 48.3 per cent. With this performance, the N10 million deployed  has increased to N14.831 million. In the same vein, Portfolio B ended last week, showing  a growth  39.7 per cent, meaning that its N10 million is now valued at N13.973 million. Portfolio A’s growth stood at 24.5 per cent, indicating that the N10 million deployed has improved to N12.452 million. In all, TMP has appreciated to N52.289 or 30.7 per cent, compared with the initial N40 million.

Meanwhile, a further analysis of the Portfolio D, which is the highest gainer, showed that  nine of the 10 stocks are  witnessing positive performance. One of stock is negative with a decline of 16.6 per cent. The highest gain is 120.4 per cent, followed by 109.2 per cent.   Others are:  75.3 per cent; 49 per cent; 40.9 per cent;  28.1 per cent; 20.5  per cent;  and 11.2 per cent.