Quarterly Returns – Q1 2021

Quarterly return posts supplement my monthly Financial Dashboard, covering investments in detail and looking at my yearly targets. Here I track purchases and sales, document progress against my (in progress) investment strategy, and discuss re-balancing and changes over time.

Time seems to be passing so quickly at the moment. I’m sure COVID and restrictions have removed our mental ability to signpost time with activities and events. Through this blur we’re into Q2 of 2021, which means a bit of a financial update…

2021 Net Worth

Q1 Returns:

  • Cash Accounts £12,100 (+£100)
  • Investments £9,650 (+£1,700)
  • Property £49,000 (-£700)
  • Cars £2000 (no changes)

This quarter has mainly been steady-as-she-goes from a financial point of view. I reduced the property valuation for our home to something more conservative, which has resulted in a nominal paper loss. We’re actually up in equity, and moving to a new 5-year fixed rate at 1.69%. Slow and steady has seen my net worth rise by about £3k so far this year, a few percent. Not sure if I’ll match last years 20% rise maintaining this rate.

Investments:

I’m not going to review my goals each quarter this year other than to say I have somehow managed a mean 41.5% savings rate so far (target 35%), I’ve knocked £1.1k off my credit card (£3k to go), and I’m enjoying spending more time pottering with hobbies. Instead the Quarterly Returns will focus more on what I’m doing with investments. I’ve continued to put away £250 in cash/month, building the emergency fund further in the Principality Thank You Saver, which is a 1.4% regular saving offering for NHS workers in South Wales (1).

Rough Global Asset Allocation
Cash-Equity Split in Portfolio
Passive Core vs Active Satellite Ratio

Core/ Satellite Passive/ Active Split

Been busy in my Freetrade account this quarter (fancy a free share? Sign up to Freetrade using this link, and we both get one). January just saw further purchases into iShares MSCI EM and Vanguard FTSE All World. February was much more active. I added to previous holdings of Unilever, whom I am mainly buying as a solid, dividend paying consumer staple. I do not see Unilever going anywhere any time soon (see Warren Buffet school of thought – buying something you can forget about for 10 years and expect to still exist), and they have a very strong corporate sustainability goals which I approve of. I also bought a small amount of IQE, a South Wales computer chip firm. Their share price is volatile (++) and I’m currently down about 15% on the beer money that went in there. This was a bit of a home market bias purchase, but also a potential future growth buy as they’re in the 5G game and chip manufacturers are currently struggling to keep up with demand. There’s also massive investment into S Wales computer chip foundries by Welsh Gov, so thought I’d get some skin in.

Towards the end of Feb I sold out of DS Smith (held for about a year) at a 45% profit. That money got put back into further Vanguard FTSE All World. Around this time I was nosing around r/wallstreetbets, and jumped on the AMC/GME bandwagon, riding these meme stocks up for a 65% return. I bought a small amount of Palantir, another meme stock, again beer money. This one is at a fairly daft PE ratio, but as I dabble more in big data through work I can see the difference this will make to retail/ government/ industry in the future, and this small holding is a gamble towards that. I sold out of GME at the end of March, buying further Vanguard FTSE All World with the stake and profit. GME continues to be a casino, waiting for that lift off to the moon that may never come.

The final note is to say that this portfolio calculation does not include my CrowdCube gambles/investments. I recently had an email to say that Freetrade are offering a share sale opportunity as an institutional investor buys in. The share valuation from that sale puts my holding up about 80%. I’ll continue to hold that to see where it goes.

Happy spring everyone,

The Shrink

References:

  1. https://www.principality.co.uk/savings-accounts/everyday-savings-accounts/thank-you-online-saver

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