Investment Portfolio Overview – March 2021

Investment portfolio recap march banner

We end the first quarter of the year with another solid month. My portfolio is in the green and far ahead of the general market.
I was able to take profits on one of my positions and re-invested that straight back into the market. Yet cash remains my largest holding to date. Will there be another substantial pullback forming or is the current trend going to continue throughout the year? While we never know for sure, it’s not a bad idea to keep some cash on the side to prepare for future market turmoils. Remember, the best value investments appear when the market sells off. So I’m waiting for just that to happen.
I hope you enjoy reading my investment portfolio overview for March 2021.
Let me know any questions in the comments section below.

Table of Contents

Performance

Performance March 2021

March 2021 Performance Dan Schenk Life Investment Trust - Investment Portfolio Review March 2021

March continued the positive momentum we’ve seen since the big surge last year in November. My portfolio is up 3.2%, albeit lagging a bit behind some of the benchmarks this month. I guess you can’t beat all of them all of the time.
As long as the market continues to trend upwards and my portfolio is riding along, I’ll be just fine.
Here are the benchmarks:

  • FTSE UK All Share Index: 4.1%
  • FTSE 100: 2.8%
  • FTSE Mid 250: 3.0%
  • Vanguard Total World Stock ETF: 2.6%
2021 Performance Dan Schenk Life Investment Trust - Investment Portfolio Review March 2021

Looking at the 2021 performance so far, my portfolio is still flying ahead of the benchmarks. I’m already up 15% and we only have the first quarter in the books. This leaves me to wonder, what the remaining 3 quarters will bring. Looking at the FTSE 100, I still see a substantial upside potential, so I’m looking promising into the future.
At least the benchmarks are all in the green, let’s see if one of them will be able to catch up to me this year or if the trend so far continues.
Here are the benchmarks:

  • FTSE UK All Share Index: 5%
  • FTSE 100: 4%
  • FTSE Mid 250: 5%
  • Vanguard Total World Stock ETF: 5%
Cumulative Performance Dan Schenk Life Investment Trust - Investment Portfolio Review March 2021

Looking at the cumulative performance, my portfolio is still in the number 1 spot with a total return of 47%.
By now, only the FTSE 100 is still in the red with the remaining benchmarks being in the green as well. Although only the Vanguard ETF shows decent performance over this timeframe.
Looking at this, I do think there’s a case for the UK economy to catch up to the rest of the global market and when it does we likely see a huge appreciation in its equities, which should provide another boost to my portfolio as well.
Here are the benchmarks:

  • FTSE UK All Share Index: 6%
  • FTSE 100: -9%
  • FTSE Mid 250: 9%
  • Vanguard Total World Stock ETF: 40%

Biggest Gainers

This rank is based on the gain relative to my overall portfolio, while the gain of the individual position is stated in brackets.

Crest Nicholson Holdings PLC, +0.73% (Position: +28%)
Crest Nicholson, a UK housebuilder, had a stunning recovery since its Covid lows last year. After all, the UK housing market remained resilient to the impacts of the pandemic and has also benefited from measures taken by the government.
All in all, the share price now narrows in on my target price of 430p, so I’m getting ready to take my profits on this one.

  • Current Price: 412p
  • Target Price: 430p
  • Plan to add to position: N/A
  • Book to Market Ratio: 1.3
  • P/E Ratio: 28
  • ROA: N/A
  • Dividend Yield: 2.7%
  • Investment Type: VALUE

International Personal Finance PLC, +0.73% (Position: +28%)
International Personal Finance, a doorstep lender, had a solid month despite struggles with the pandemic. I only recently added this to my portfolio, and it still has a solid potential for upside. However, I’m not planning to further add to this position, given the firm’s latest trading update showed it is trading at a loss right now.
Once the firm returns back to profitability I might consider adding to this position, until then I remain on the sidelines.

  • Current Price: 105p
  • Target Price: 210p
  • Plan to add to position: N/A
  • Book to Market Ratio: 0.6
  • P/E Ratio: N/A
  • ROA: N/A
  • Dividend Yield: 4.4%
  • Investment Type: VALUE

McColl’s Retail Group Ltd, +0.63% (Position: +30%)
McColl, a convenience store retailer, also battered by the pandemic had a solid month, however remains a challenging outlook. The upside potential on the one hand seems substantial, on the other hand, the firm needs to put in some effort to clean up its balance sheet and operations. Until this has been achieved and showing positive results, I’m not planning to further add to this position.

  • Current Price: 30p
  • Target Price: 150p
  • Plan to add to position: N/A
  • Book to Market Ratio: 1.8
  • P/E Ratio: 51
  • ROA: N/A
  • Dividend Yield: 4.2%
  • Investment Type: VALUE

Biggest Losers

This rank is based on the loss relative to my overall portfolio, while the loss of the individual position is stated in brackets.

Iqe PLC ORD 1P, -0.73% (Position: -20%)
Semiconductor wafer and materials supplier IQE experienced a bit of a pullback despite solid trading performance with revenue at all-time highs. The firm is involved massively in the advent of 5G, so I expect further gains to come in the near future. However, profitability remains the problem to be solved and until this is achieved, I won’t add further to this position.

  • Current Price: 61p
  • Target Price: 280p
  • Plan to add to position: N/A
  • Book to Market Ratio: 1.9
  • P/E Ratio: N/A
  • ROA: N/A
  • Dividend Yield: N/A
  • Investment Type: VALUE

Saga PLC, -0.71% (Position: -10%)
Saga, which specialises in products for the over-50s, showed a strong recovery since its October lows last year. Now it is having a small pullback, not too much to worry about here, as long as it isn’t extending the downward trend. Also here profitability remains the issue to solve and I won’t add to my position until it is achieved.

  • Current Price: 339p
  • Target Price: 1500p
  • Plan to add to position: N/A
  • Book to Market Ratio: 0.8
  • P/E Ratio: 2.8
  • ROA: N/A
  • Dividend Yield: N/A
  • Investment Type: VALUE

Avation PLC, -0.43% (Position: -17%)
Aircraft leasing company Avation doesn’t show signs of recovery just yet. But that means there will be ample opportunities to snap up shares at a discount. The book to market ratio is at an extremely low 0.4 with PE being at just 8.8. Considerably, ROA isn’t the best with only 0.7%, but at this price, there’s a large enough margin of safety applied to make this a solid value investment. I plan to further add to my position at 91p.

  • Current Price: 98p
  • Target Price: 220p
  • Plan to add to position: 91p
  • Book to Market Ratio: 0.4
  • P/E Ratio: 8.8
  • ROA: 0.7%
  • Dividend Yield: 1.6%
  • Investment Type: VALUE

Holdings

Top Holdings

Below the Top 10 holdings as of March 2021.

Cash is still the largest holding right now as equity prices are relatively high and there aren’t a lot of good value investment opportunities.

Just Group, previously one of my top 10 holdings has been sold, see further details below.
This leaves space for one newcomer joining the top 10, which is National Express Group.
Kier Group is looking strong, now on position 3. If the trend continues it might well be my biggest holding in a few months.

NrHolding% of Portfolio
1Cash9%
2Scottish Mortgage Investment Trust PLC8%
3Kier Group PLC7%
4Saga PLC6%
5Cineworld Group PLC5%
6Royal Dutch Shell PLC5%
7Evraz PLC4%
8easyJet PLC3%
9International Consolidated Airlines Group SA (LSE)3%
10National Express Group PLC3%

New Positions

2 new positions in March. Let’s break them down.

Petrofac Ltd @100p

My first entry in oilfield services group Petrofac. The firms share price appears to be on a downward spiral since forever but is now trading at an attractive price compared to its fundamentals. The book to market ratio is at just 0.5 and the PE at just 1.6. This leaves a substantial margin of safety and quite possibly there will be further opportunities to scale into this position. The ROA with just 1.1% isn’t the best, but as long as it is positive there’s not a huge reason to worry. On the other hand, the massive dividend yield of 10.6% pays some nice extra cash for holding this security. I am planning to further add to this position at 80p.

  • Price entered: 100p
  • Target Price: 480p
  • Plan to add to position: 80p
  • Book to Market Ratio: 0.5
  • P/E Ratio: 1.6
  • ROA: 1.1%
  • Dividend Yield: 10.6%
  • Investment Type: VALUE

Provident Financial PLC @180p

My first position in doorstep lender Provident Financial, which has seen a substantial drop in its share price last year during the Covid sell-off. Now it is trading at an attractive price with a book to market ratio of only 9.8 and a PE ratio of just 4.8. The ROA with 2.9% is also solid, while the firm even pays a nice dividend of 4%. I am definitely looking to further add to this position at the next pullback down to 150p.

  • Price entered: 180p
  • Target Price: 1100p
  • Plan to add to position: 150p
  • Book to Market Ratio: 0.8
  • P/E Ratio: 4.8
  • ROA: 2.9%
  • Dividend Yield: 4.0%
  • Investment Type: VALUE

Closed Positions

I sold my position in Just Group in March. Here are the details.

Just Group PLC @100p

I invested in the insurance firm Just Group only last year in October and now already sold my stake for a 135% profit after 5 months. A classic value investment playing out nicely. While there might be further room for growth in its share price I am selling now because the price deviates too far from its fundamentals and we see some levels of resistance coming at 110p and beyond.
Remember, you don’t go broke by locking in profits, so that is what I did just here.

  • Price entered: 42p (10/2020)
  • Price closed: 100p
  • Profit % (incl. Dividends): 134%
Just Group

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I hope you find my investment portfolio recap for March 2020 useful. How did your portfolio perform last month and have you bought or sold any shares? Let me know in the comments section below, I’d love to discuss.

If you want to read more about investing in general, why not start with my guides to Value Investing, Growth Investing or Income Investing?

Struggling with your investment returns? Good news! You can now invest in the Dan Schenk Life Investment Trust to truly bring your investment returns to the next level. Or if you rather want to conquer the market yourself, book your free investment consultation below. No payment details needed – no strings attached!

And as always, please let me know any questions in the comments section below.

Dan Schenk

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