The end of the year brings the end of another quarter for the Micro Portfolio, and that means it is due its second update. The last three months of the year were obviously pretty eventful for all of us. The successful results of various COVID vaccine trials hit the news in November, and that lifted the markets considerably. The FTSE All-Share Index gained around 12% in Q4 if my maths is right.
The Micro Portfolio also did much better thanks to its heavy exposure to energy names. Brent crude oil gained around $10 per barrel in Q4, a circa 20% increase versus Q3. Starting with the Halifax ShareBuilder, it held 33.157938 shares of Royal Dutch Shell stock at the start of Q4. That came on the back of £400 worth of invested capital, which had slumped to a market value of £311.75. The stock gained around 35% in Q4 thanks to the vaccine news and the associated boost to oil prices.
The £100 monthly contributions remained in place over that period, so the book cost at the end of 2020 had increased to £700. The total share count came in at 59.917757 – the market value of that standing at just under £755 at period end. The firm also paid out £5.45 worth of dividends into the account. So, into the black in terms of an unrealized gain, plus £7.30 in cumulative dividend cash which continues to sit there.
The Trading212 account also sports a heavy exposure to the UK oil majors. BP and Shell, you will recall, make up 40% of the book cost there. That portion of the Micro Portfolio sported a market value of just over £530 at the end of the year. Quiet performances from Unilever and Reckitt Benckiser offset gains from the oil majors and alcohol giant Diageo. Overall, the account is still largely treading water, with the book cost standing at just below the £540 mark as of Q4. The Trading212 account also collected around £3.20 or so in dividend cash in the period.
All-in-all, the value of the Micro Portfolio increased to around the £1,300 mark as of the end of 2020. That represents a circa 5% increase on book cost, and a welcome rebound after seeing much red in Q3.
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