Investment Portfolio Overview – September 2020

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September was a busy month in my investment calendar. I was finally able to inject some fresh Cash into my portfolio and consequently went on a little spending spree to get that Cash into the market for some juicy returns.
On the performance side, I came out on top against my benchmarks once again. That’s the second time in a row and already the 4th time in the past 6 months. My portfolio really has been on a good run in the last 2 quarters. Now, I’m excited to see what Q4 will bring to the table. Are we going to experience another market crash or a nice rally to finish the year? Whatever it will be, I’m ready. Are you?
I hope you enjoy reading my investment portfolio review for September 2020.
Let me know any questions in the comments section below

Table of Contents

Performance

Performance September 2020

September wasn’t exactly a home run, however, the market was overall down and I managed to finish up 0.8%. This is the 4th time in the past 6 months, where I’m able to come out on top against my benchmarks and the second time in a row after having been the front-runner in August already. So, not much to complain about this one, I guess.
Here are the benchmarks:

  • FTSE UK All Share Index: -1.5%
  • FTSE 100: -1.2%
  • FTSE Mid 250: -2.7%
  • Vanguard Total World Stock ETF: -3.5%
YTD Performance Dan Schenk Life Investment Trust - Investment Portfolio Review September 2020

Looking at YTD performance, I’m still hovering just below that break-even point and am currently still down -4%. However, compared to my portfolio, the overall market in the UK looks really terrible now, being down roughly 20%. Looking globally with the Vanguard Total World Stock ETF, it is a break-even scenario at the moment. One or two solid months and I  should be able to reach that break-even level as well and possibly add some gains until the end of the year after all.
Here are the benchmarks:

  • FTSE UK All Share Index: -20%
  • FTSE 100: -22%
  • FTSE Mid 250: -21%
  • Vanguard Total World Stock ETF: 0%
Cumulative Performance Dan Schenk Life Investment Trust - Investment Portfolio Review September 2020

Cumulative, since the beginning of the DSL Investment Trust, I’m now almost back at break-even with finishing the month down just -1%. Second only to the Vanguard ETF, which shows a decent performance of 16% over that period.
Here are the benchmarks:

  • FTSE UK All Share Index: -11%
  • FTSE 100: -21%
  • FTSE Mid 250: -13%
  • Vanguard Total World Stock ETF: 16%

Biggest Gainers

Thor Mining PLC, +67%
The miner seems to be on a good run right now. Although not making any revenue or profit, some of its mining projects might pay off in the future and investors are betting on that. If it keeps going at that rate it might hit my price target of 4p after all. Although, I wouldn’t bet any more on it, hence not planning to add to my position here.

  • Current Price: 1.0p
  • Target Price: 4p
  • Plan to add to position N/A
  • Book to Market Ratio: 1.1
  • P/E Ratio: N/A
  • Dividend Yield: N/A
  • Investment Type: Growth

Yu Group PLC, +27%
The fallen star Yu Group showed some nice percentage gain, but there’s still a long way to go until they’re back where they were before their accounting holes were uncovered. Wait and hold for me.

  • Current Price: 92.5p
  • Target Price: 1000p
  • Plan to add to position N/A
  • Book to Market Ratio: 2.8
  • P/E Ratio: N/A
  • Dividend Yield: 1.3%
  • Investment Type: Value

Frontier Developments PLC, +22%
Frontier Dev had an extremely successful year so far. Making Video Games seemed to pay off during the pandemic. Now it is approaching my target price of 3200p, so I’m looking to get out rather soon. Just waiting for that one last push.

  • Current Price: 2660p
  • Target Price: 3200p
  • Plan to add to position N/A
  • Book to Market Ratio: 10.8
  • P/E Ratio: 65
  • Dividend Yield: N/A
  • Investment Type: Growth

Biggest Losers

International Consolidated Airlines Group SA, -56%
Well, you don’t want to run an airline, when nobody is allowed to travel, right? Airlines certainly are amongst the hardest hit businesses right now, but I’ve been waiting for that and loaded up shares of IAG last month. If it drops any further, I will add some more. Next target to add is 80p.

  • Current Price: 93.8p
  • Target Price: 350p
  • Plan to add to position @80p
  • Book to Market Ratio: 0.3
  • P/E Ratio: 1.3
  • Dividend Yield: 13%
  • Investment Type: Value

Cineworld Group PLC, -35%
Similar case with cinemas. Not only were they closed for the majority of this year, but also they would’ve been lacking any new movies to present. Consequently, Cineworld tanked heavily and is still tanking. I still believe in the concept of cinemas though and am sure we see a nice rebound once the pandemic is over. Hence, I’m looking to further add to my position on the next drop.

  • Current Price: 40.5p
  • Target Price: 280p
  • Plan to add to position @31p
  • Book to Market Ratio: 0.2
  • P/E Ratio: 2.5
  • Dividend Yield: 14.5%
  • Investment Type: Value

Arcontech Group PLC, -21%
Arcontech, a technology company, was pretty much trading flat over the past year. The valuation looks in line with expectations for a tech company, meaning I’m just gonna hold and see how it develops in the future. For me to add, I would want to see the P/E ratio dropping down to about 10 to have a large enough margin of safety applied.

  • Current Price: 148p
  • Target Price: 330p
  • Plan to add to position N/A
  • Book to Market Ratio: 3.4
  • P/E Ratio: 18
  • Dividend Yield: 1.7%
  • Investment Type: Growth

Holdings

Top Holdings

Below the Top 10 holdings as of September 2020.

Surprise, surprise. I injected some Cash to my Portfolio. For the first time since April 2019. In the past 1.5 years, I just wasn’t able to invest any new cash, because I was focussing on becoming self-employed, which obviously drained my cash reserves heavily. But now, having some successes in the Entrepreneur Life, I’m finally able to inject some cash in my portfolio again and hoping it will lead to further gains.

For the rest of my Top 10 Holdings, we had 2 newcomers and 2 leavers in the bottom ranks. Royal Dutch Shell and Polar Capital Holdings dropped out and got replaced with National Express Group and IAG.

For the rest of the year, I’m obviously looking to reduce my Cash Position and get that invested back into the market. Also I’m looking to sell Scottish Mortgage Investment Trust rather soon, which has made some tremendous gains over the past couple of months.

NrHolding% of Portfolio
1Cash25%
2Scottish Mortgage Investment Trust PLC10%
3Frontier Developments PLC6%
4Kier Group PLC5%
5Evraz PLC4%
6Tr European Growth Trust PLC3%
7Iqe PLC3%
8Standard Chartered PLC3%
9National Express Group PLC2%
10International Consolidated Airlines Group SA2%
Portfolio Exposure - Dan Schenk Life Investment Trust - Investment Portfolio Review September 2020

New Positions

Again I went on a bit of a spending spree last month. With my newly injected cash reserves, I’m aggressively looking for opportunities to invest and happened to find a few in September.

Crest Nicholson Holdings PLC @170p

First one was Crest Nicholson, a British Housebuilder. It trades at an excellent book to market ratio of only 0.6 right now with a P/E ratio of 5.2. A true Value Investment. I’m looking to further add to my position if it drops below 160p.

  • Price entered: 170p
  • Target Price: 430p
  • Plan to add to position @160p
  • Book to Market Ratio: 0.6
  • P/E Ratio: 5.2
  • Dividend Yield: 5.7%
  • Investment Type: Value

Kier Group PLC @51p

One of my favourite stocks in my portfolio right now. Kier Group, the UK construction company which is involved in most if not all the major government construction projects. It now makes 5% of my portfolio and I’m looking to further add if it drops below 56p. The book-to-market ratio of 0.3 is just too good to be true.

  • Price entered: 51p
  • Target Price: 930p
  • Plan to add to position @41p
  • Book to Market Ratio: 0.3
  • P/E Ratio: 3
  • Dividend Yield: 9.9%
  • Investment Type: Value

International Consolidated Airlines Group SA @130p and @88p

A double punch for IAG last month. I was first adding at 130p and then they also issued a rights issue, which enabled me to pick up some shares as low as 88p. I would further add to my position if the price drops below 80p.

  • Price entered: 130p and 88p
  • Target Price: 350p
  • Plan to add to position @80p
  • Book to Market Ratio: 0.3
  • P/E Ratio: 1.3
  • Dividend Yield: 13%
  • Investment Type: Value

Lloyds Banking Group PLC @25.5p

I finally managed to snap up some shares in Lloyds Bank. Something I wanted to do for a while, but the price was always too high. Last month, I was able to enter at 25.5p at a book to market ratio of 0.4. You got to love that value investment. If the price drops any further, I’m prepared to further add to my position.

  • Price entered: 25.5p
  • Target Price: 52p
  • Plan to add to position @21p
  • Book to Market Ratio: 0.4
  • P/E Ratio: 7.5
  • Dividend Yield: 4.2%
  • Investment Type: Value

National Express Group PLC @120p

National Express is a British Public Transport company and was obviously also tanking heavily during the pandemic. I was able to snap up some shares at 120p and it already rallied to 150p since then. I would further add to my position below 100p, but probably need to re-asses this level if the rally continues at that pace.

  • Price entered: 120p
  • Target Price: 430p
  • Plan to add to position @100p
  • Book to Market Ratio: 0.9
  • P/E Ratio: 4.4
  • Dividend Yield: 3.3%
  • Investment Type: Value

Saga Ltd @12p

Saga is the UK’s specialist in products and services for life after 50. And with a society shifting more and more towards the 50+ age sector, I see this company doing great in the coming years. The share price was also smacked during the pandemic, so I was able to pick up some hugely discounted shares. The book-to-market ratio is only 0.2 at the moment, which is fabulous. If the price drops below 11p, I’ll certainly add to my position.

  • Price entered: 12p
  • Target Price: 130p
  • Plan to add to position @11p
  • Book to Market Ratio: 0.2
  • P/E Ratio: 1.6
  • Dividend Yield: 10.2%
  • Investment Type: Value

Closed Positions

I also managed to close one of my positions in September, adding some extra Cash on top of my already large Cash holdings.

Baillie Gifford Japan Trust PLC @908p

  • Price entered: 835p (07/2018)
  • Price closed: 908p
  • Profit % (incl. Dividends): 7.0%

Well, this wasn’t exactly my best investment, but it wasn’t my worst one either. It took me about 2 years to book a 7% gain, which isn’t much. Also, I clearly missed the buy opportunity in the pandemic sell-off earlier this year.
Overall I was happy to finally get out of this over my target price of 900p and re-invest that Cash into more prospecting companies.

Baillie Gifford Japan Trust - Dan Schenk Life Investment Trust - Investment Portfolio Review September 2020


I hope you find my investment portfolio recap for September 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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