Nifty Thrifty Portfolio
Over the course of 12 months Richard Beddard, companies editor of our sister website Interactive Investor, 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 measure employed is to check that the portfolio is not over-exposed to a single market sector, such as mining or retail.
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 December 2012 review seven existing constituents were under the spotlight. Only retailer WH Smith made the Nifty Thrifty grade. Out go high-flying retailers Debenhams (profit of 66 per cent) and Next (+79 per cent). Smiths (+18 per cent), IMI (+4 per cent), Go-Ahead (+6 per cent) and Greggs (-7 per cent) also got the chop. The new additions are Afren, Euromoney Institutional Investor, ITE, KCOM, Reckitt Benckiser and SDL. See the January 2013 edition of Money Observer for more information on why they qualify for inclusion.
The money-making concept behind the Money Observer Nifty Thrifty portfolio was initially detailed in the June 2010 edition of the magazine. Its genesis is derived from the US Nifty Fifty – the 50 shares that investors could not afford to exclude from their portfolios in the late 1960s and early 1970s. Unlike the Nifty Fifty, however, our Nifty Thrifty portfolio is built using far more sound investment principles.
The portfolio values below account for stamp duty and the £10 dealing charge levied by our sister website Interactive Investor.Clicking on each share’s link will take you to the Interactive Investor website where you can find more details about the company in question. The starting date for the portfolio is 1 June 2010.
TODAY: Thursday 23 May 2013
|Investment||Return||Profit / Loss||%|
|Name||Shares / Units||Cost||Current Value||Profit / Loss|
|Afren (AFR)||1,041||£1.34||£1,425.13||+30.19 (+2.16%)|
|Antofagasta (ANTO)||83||£13.28||£794.72||-307.52 (-27.90%)|
|Atkins (WS) (ATK)||134||£6.39||£1,180.54||+324.28 (+37.87%)|
|BAE Systems (BA.)||294||£3.595||£1,220.98||+164.05 (+15.52%)|
|CSR (CSR)||222||£4.76||£1,218.78||+162.06 (+15.34%)|
|Enquest (ENQ)||780||£1.356||£1,046.76||-10.92 (-1.03%)|
|Euromoney Institutional Investor (ERM)||178||£7.86||£1,632.26||+233.18 (+16.67%)|
|Ferrexpo (FXPO)||242||£4.59||£424.95||-685.83 (-61.74%)|
|Halfords Group (HFD)||197||£5.056||£654.43||-341.60 (-34.30%)|
|Hays (HAS)||1,616||£0.685||£1,502.88||+395.92 (+35.77%)|
|Hochschild Mining (HOC)||279||£3.79||£719.26||-338.15 (-31.98%)|
|Homeserve (HSV)||610||£1.40||£1,561.60||+707.60 (+82.86%)|
|Howden Joinery (HWDN)||976||£1.138||£2,406.82||+1,296.13 (+116.70%)|
|Interserve (IRV)||215||£4.97||£1,052.64||-15.91 (-1.49%)|
|ITE Group (ITE)||714||£1.97||£2,115.58||+709.00 (+50.41%)|
|ITV (ITV)||1,231||£0.695||£1,632.31||+776.76 (+90.79%)|
|KCOM Group (KCOM)||2,049||£0.68||£1,774.43||+381.11 (+27.35%)|
|Kentz (KENZ)||222||£3.86||£888.00||+31.08 (+3.63%)|
|Kier Group (KIE)||83||£13.30||£1,030.03||-73.87 (-6.69%)|
|Micro Focus (MCRO)||384||£3.18||£2,688.00||+1,466.88 (+120.13%)|
|QinetiQ (QQ.)||638||£1.7275||£1,261.96||+159.82 (+14.50%)|
|Rank (RNK)||710||£1.203||£1,082.75||+228.62 (+26.77%)|
|Reckitt Benckiser (RB.)||35||£39.66||£1,706.25||+318.15 (+22.92%)|
|SDL (SDL)||296||£4.72||£1,075.96||-321.16 (-22.99%)|
|Smith & Nephew (SN.)||146||£6.30||£1,149.75||+229.95 (+25.00%)|
|SOCO International (SIA)||313||£3.52||£1,226.65||+124.89 (+11.34%)|
|Spirent Communications (SPT)||688||£1.6025||£923.30||-179.22 (-16.26%)|
|Vesuvius (VSVS)||276||£3.825||£1,022.03||-33.67 (-3.19%)|
|WH Smith (SMWH)||205||£5.00||£1,581.58||+556.58 (+54.30%)|
|William Hill (WMH)||235||£4.498||£1,047.16||-9.87 (-0.93%)|
Current value calculated using data at least 15 minutes delayed. Source: Interactive Investor.
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