FTSE 100 and FTSE 250 Quarterly Review – March 2017

After market close on 1 March 2017 FTSE Russell confirmed the following changes to the FTSE 100 and FTSE 250 indices. The changes will be implemented at the close Friday, 17 March 2017 and take effect from the start of trading on Monday, 20 March 2017.

FTSE 100

Joining: Scottish Mortgage IT [SMT], Rentokil Initial [RTO]

Leaving: Capita [CPI], Dixons Carphone [DC.]

FTSE 250

Joining: Northgate [NTG], Sanne Group [SNN], Syncona [SYNC]

Leaving: Brown N [BWNG], CMC Markets [CMCX], International Personal Finance [IPF]

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Bounceback Portfolio 2017

The Bounceback Portfolio invests in the 10 worst performing FTSE 350 stocks of the previous year and holds them for the 3-month period, January-March. 

The Bounceback Portfolio for 2016 recorded the best performance ever for the strategy: a 3-month return of 38.5%, compared with a FTSE 350 Index return of -1.4% for the same period.

The following table lists the ten worst performing FTSE 350 stocks in 2016. These are the ten stocks that will comprise the 2017 Bounceback Portfolio.

Company TIDM Return in 2016 Return since 31/12/2016
Capita CPI -56.0 -2.4
Restaurant Group (The) RTN -52.7 6.0
Sports Direct International SPD -51.7 2.3
Essentra ESNT -44.3 -1.3
easyJet EZJ -42.2 7.4
International Personal Finance IPF -40.4 -4.4
IG Group Holdings IGG -38.4 7.1
McCarthy & Stone MCS -36.6 4.8
Inmarsat ISAT -33.9 2.1
Man Group EMG -32.6 2.4

The final column gives the returns for the individual stocks for the first six days of the 2017. The portfolio as a whole has seen a return of 2.4% for the first six days of 2017, against a return of 1.9% for the FTSE 350 Index.

The Bounceback Portfolio is meant to be held until the end of the March 2017, but it is good to see that it has started the year well so far.


 

More articles on the Bounceback Portfolio.

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Financial Services sector monthly seasonality analysis

The 2013 edition of the Almanac looks at the historic monthly performance of the FTSE 350 sectors. Here we look at the Financial Services sector.

The following chart plots the average out-performance of the FTSE 350 Financial Services sector over the FTSE 100 Index by month since 1999. For example, since 1999 on average the Financial Services sector has out-performed the FTSE 100 Index by 2.3 percentage points in January.

Observations:

  1. The strongest months are January and March – the sector has under-performed the market only four times in the past 13 years in January.
  2. The weakest month has been February – the sector has out-performed the market only five times in this month in the last 13 years.

The 23 stocks in the FTSE 350 Financial Services sector [NMX8770] are-

3i Group [III] Investec [INVP]
Aberdeen Asset Management [ADN] IP Group [IPO]
Ashmore Group [ASHM] Jupiter Fund Management [JUP]
Brewin Dolphin Holdings [BRW] London Stock Exchange Group [LSE]
Close Brothers Group [CBG] Man Group [EMG]
F&C Asset Management [FCAM] Paragon Group of Companies (The) [PAG]
Hargreaves Lansdown [HL.] Provident Financial [PFG]
Henderson Group [HGG] Rathbone Brothers [RAT]
ICAP [IAP] Schroders [SDR]
IG Group Holdings [IGG] SVG Capital [SVI]
Intermediate Capital Group [ICP] Tullett Prebon [TLPR]
International Personal Finance [IPF]
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