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 March quarterly update of the Nifty Thrifty portfolio the trading algorithm is telling us to sell six of the shares – showing an average 14 per cent gain over the one-year holding period – that were up for eviction. These are BAE Systems, CSR, Hochschild Mining, Smith & Nephew, Vesuvius and William Hill.

These six shares are replaced for a year by BHP Billiton, British American Tobacco, Carillion, Debenhams, KCOM and Unilever.

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: Thursday 24 April 2014 TIME: 09:01

Investment Return Profit / Loss %
Holdings 46,372.05
Cash 34.78
Total 30,000.00 46,406.83 +16,406.83 +54.69
Above figures in UK pound sterling.
Name Shares / Units Cost Current Value Profit / Loss
Afren (AFR) 1,041 £1.34 £1,558.38 +163.44 (+11.72%)
Anite (AIE) 1,038 £1.199 £835.59 -408.97 (-32.86%)
Antofagasta (ANTO) 83 £13.28 £666.49 -435.75 (-39.53%)
Atkins (WS) (ATK) 134 £6.39 £1,841.16 +984.90 (+115.02%)
BHP Billiton (BLT) 60 £19.25 £1,159.80 +4.80 (+0.42%)
BP (BP.) 280 £4.432 £1,366.54 +125.58 (+10.12%)
British American Tobacco (BATS) 35 £32.865 £1,185.45 +35.17 (+3.06%)
British Sky Broadcasting (BSY) 184 £7.864 £1,641.28 +194.30 (+13.43%)
Carillion (CLLN) 308 £3.7745 £1,164.24 +1.69 (+0.15%)
Centamin (CEY) 3,676 £0.392 £2,339.77 +898.78 (+62.37%)
Debenhams (DEB) 1,494 £0.7792 £1,204.91 +40.79 (+3.50%)
Enquest (ENQ) 780 £1.356 £996.84 -60.84 (-5.75%)
Go-Ahead Group (GOG) 93 £15.41 £1,918.59 +485.46 (+33.87%)
Halfords Group (HFD) 197 £5.056 £893.00 -103.03 (-10.34%)
Homeserve (HSV) 508 £2.448 £1,703.32 +459.74 (+36.97%)
Interserve (IRV) 215 £4.97 £1,441.58 +373.03 (+34.91%)
KCOM Group (KCOM) 1,196 £0.9733 £1,190.02 +25.95 (+2.23%)
Kentz (KENZ) 222 £3.86 £1,669.44 +812.52 (+94.82%)
Ladbrokes (LAD) 699 £2.065 £957.63 -485.80 (-33.66%)
Micro Focus (MCRO) 384 £3.18 £3,095.04 +1,873.92 (+153.46%)
Next (NXT) 31 £46.80 £2,008.80 +558.00 (+38.46%)
Pace (PIC) 429 £2.8975 £1,785.93 +542.90 (+43.68%)
Reed Elsevier (REL) 155 £8.0025 £1,353.92 +113.54 (+9.15%)
Serco Group (SRP) 393 £4.422 £1,613.27 -124.58 (-7.17%)
SOCO International (SIA) 443 £3.927 £1,871.23 +131.57 (+7.56%)
Spirent Communications (SPT) 1,659 £1.049 £1,705.45 -34.84 (-2.00%)
TUI Travel (TT.) 467 £3.724 £2,005.76 +266.66 (+15.33%)
Ultra Electronics (ULE) 98 £17.75 £1,715.00 -24.50 (-1.41%)
Unilever (ULVR) 47 £24.61 £1,222.47 +65.80 (+5.69%)
WH Smith (SMWH) 205 £5.00 £2,261.15 +1,236.15 (+120.60%)

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