Nifty Thrifty Portfolio

The concept behind the Money Observer Nifty Thrifty portfolio is based on the US Nifty Fifty – the 50 shares that investors flocked to in the late 1960s and early 1970s, before the market crashed in 1974. Unlike the Nifty Fifty, however, our Nifty Thrifty portfolio is built using far sounder investment principles.

Over the course of 12 months Money Observer columnist Richard Beddard picks 30 companies from the largest 350 UK-listed companies by market capitalisation, using an algorithm that assesses three key criteria: value, as measured by the earnings yield; profitability, measured by return on capital; and financial strength, measured by Piotroski’s F_Score. 

The sole qualitative measures employed are to check that the portfolio is not over-exposed to a single market sector, and to exclude banks, insurers and investment companies.

The objective is to outperform a FTSE All-Share exchange traded fund over any five-year period. The portfolio is reviewed every three months in Money Observer. Shares held for a year are reassessed to ensure they continue to meet the criteria. 

In the September quarterly update of the Nifty Thrifty portfolio the trading algorithm is telling us to sell five of the seven shares up for eviction. These are Anite, BP, Halfords, Homeserve and Pace, whoch made an average gain of 7.4 per cent including dividends and after dealing costs. Reed Elsevier and Micro Focus International remain because they are sufficiently highly ranked to be selected again.

The five ejections are replaced for a year by Antofogasta, Betfair, Domino Printing Sciences, UBM and Xaar.

In the 18th quarterly update, in December 2014, seven shares were due for ejection, with an eighth, Kentz, taken over. WH Smith, Afren, Serco and Ultra Electronics were replaced, with the other three, Soco International, TUI Travel and Spirent Communications, remaining.

The five replacements are Ophir Energy, Nostrum Oil & Gas, Ferrexpo, Weir and Halfords.

The portfolio values below account for stamp duty and the £10 dealing charge levied by our sister website Interactive Investor. The current valuations do not account for dividends, which are recognised when a holding is ejected from the portfolio.

You can view the most recent nifty thrifty update here.

Clicking on each share’s link will take you to the Interactive Investor website where you can find more details about each company. The starting date for the portfolio is 1 June 2010.

TODAY: Tuesday 23 December 2014 TIME: 02:23

Investment Return Profit / Loss %
Holdings 43,298.94
Cash 0.04
Total 30,000.00 43,298.98 +13,298.98 +44.33
Above figures in UK pound sterling.
Name Shares / Units Cost Current Value Profit / Loss
888 Holdings (888) 1,357 £1.255 £1,896.41 +193.37 (+11.35%)
Antofagasta (ANTO) 172 £7.91 £1,267.64 -92.88 (-6.83%)
Betfair Group (BET) 124 £10.95 £1,863.72 +505.92 (+37.26%)
BHP Billiton (BLT) 60 £19.05 £819.60 -323.40 (-28.29%)
British American Tobacco (BATS) 36 £32.105 £1,271.70 +115.92 (+10.03%)
Carillion (CLLN) 322 £3.677 £1,059.06 -124.94 (-10.55%)
Debenhams (DEB) 1,551 £0.7465 £1,153.17 -4.65 (-0.40%)
Domino Printing Sciences (DNO) 231 £5.885 £1,473.78 +114.35 (+8.41%)
Enquest (ENQ) 780 £1.337 £304.20 -738.66 (-70.83%)
Euromoney Institutional Investor (ERM) 141 £12.01 £1,467.81 -225.60 (-13.32%)
Ferrexpo (FXPO) 2,288 £0.684 £1,149.72 -415.27 (-26.53%)
Halfords Group (HFD) 327 £4.78 £1,532.65 -30.41 (-1.95%)
Interserve (IRV) 215 £4.90 £1,198.62 +145.12 (+13.78%)
ITE Group (ITE) 731 £2.33 £1,067.26 -635.97 (-37.34%)
KCOM Group (KCOM) 1,214 £0.9535 £1,077.42 -80.12 (-6.92%)
Micro Focus (MCRO) 384 £3.10 £4,185.60 +2,995.20 (+251.61%)
Nostrum Oil & Gas (NOG) 246 £6.35 £1,106.02 -456.08 (-29.20%)
Ophir Energy (OPHR) 1,087 £1.453 £1,490.28 -89.13 (-5.64%)
Reed Elsevier (REL) 166 £8.045 £1,819.36 +483.89 (+36.23%)
Royal Mail (RMG) 325 £5.26 £1,354.27 -355.23 (-20.78%)
Sage (SGE) 412 £4.134 £1,895.61 +192.40 (+11.30%)
Sky (SKY) 184 £7.77 £1,645.88 +216.20 (+15.12%)
SOCO International (SIA) 451 £3.991 £1,335.41 -464.53 (-25.81%)
Spirent Communications (SPT) 1,685 £1.07 £1,230.05 -572.90 (-31.78%)
TUI AG New (Post 16/12/14) (TUIJ) 191 £9.406015 £1,984.49 +187.94 (+10.46%)
UBM (UBM) 214 £6.35 £1,006.01 -352.89 (-25.97%)
Unilever (ULVR) 48 £23.95 £1,272.48 +122.88 (+10.69%)
Weir Group (WEIR) 83 £18.76 £1,556.25 -0.83 (-0.05%)
William Hill (WMH) 476 £3.578 £1,699.80 -3.33 (-0.20%)
Xaar (XAR) 321 £4.24 £1,114.67 -246.37 (-18.10%)

Current value calculated using data at least 15 minutes delayed. Source: Interactive Investor.