SIPP PROGRESS

Current Value (As at 4th August 2017) = £148,846 including cash
Target for 31st December 2017 = £170,000 (was £153,000)
Value at commencement of this blog on 1st August 2012 = £51,684.02.
Monthly contributions since commencement of blog = 36mths @ £300 plus 23 months @ £750 = £28,050
Capital Growth = £148,846 less (£51,684.02 + £28,050) = £69,112+

Thursday, 22 June 2017

Some changes to the SIPP Portfolio

There have been a few changes this week. I decided to take advantage of the share price of Paysafe (PAYS) breaking through 500, and sold-off 1000 shares @ 518 resulting in £5,170 available for new purchases.
I have recently become aware that Private Enterprise IT's have been doing well and, together with the fact that some 50% of the corporate wealth of the UK is tied-up in private equity - that is companies that are NOT quoted on the Stock Markets - that has made me look to diversify into Private Equity funds. The 2 that I've chosen are:-
HG Capital Trust (HGT) and I've bought 220 shares @ 1604
ICG Enterprise Trust (ICGT) and I've bought 470 shares @ 748

The current holdings (as of today 22nd June) are:
1) BAE (BA.) : 1115 shares @ 660
2) BlackRock Smaller Co IT (BRSC) : 1170 shares @ 1195
3) G4S (GFS) : 2058 shares @ 333
4) GlaxoSmithKline (GSK) : 393 shares @ 1714
5) GVC Holdings (GVC) : 1031 shares @ 786
6) Imperial Brands (IMB) : 170 shares @ 3579
7) JPMorgan Emerging Markets (JMG): 625 shares @ 806
8) Lancashire Holdings (LRE) : 1209 shares @ 709
9) Legal & General (LGEN): 2489 shares @ 256
10) Pacific Assets (PAC) : 1912 shares @ 259
11) Paysafe (PAYS) : 7000 shares @ 516
12) Sage Group (SGE): 931 shares @ 712
13) Schroder Asia-Pacific (SDP) : 1252 shares @ 419
14) Segro (SGRO) : 1607 shares @ 493
15) Senior (SNR) : 1574 shares @ 237
16) HG Capital Trust (HGT) : 220 @ 1625
17) ICG Enterprise Trust (ICGT) : 470 @ 747

Cash @ £1,683

SIPP Value = £142,500


Considering the SIPP value on 1st November 2016 was £112,631.16 and since then I have only made a further 8 contributions @ £750 totalling £6,000 the SIPP has made startling progress. My target for the end of the year is £153,000 and (with luck) that should be met - and the SIPP could top £150,000 by my 58th birthday on 8th November.

Wednesday, 14 June 2017

Dividend reinvestments on 14th of June 2017

Dividend reinvestments on 14th June were:-
BA. - 20 shares at a cost of £134.38
LGEN - 93 shares at a cost of £246.18
GFS - 35 shares at a cost of £116.84
SNR - 14 shares at a cost of £34.41
GVC - 14 shares at a cost of £110.05
SGE - 6 shares at a cost of £42.24
Total dividends reinvested = £684.10

Here are my top 5 investment ideas for you to consider.
1) Start your portfolio early
The earlier you start investing, the more time you have to compound your gains into a substantial sum. If you start investing early, the more likely it is you will accumulate a large share portfolio. Also, when you start investing early (say in your mid to late 20's) as you will initially be investing relatively small values, any major mistakes will be limited in value. This time you spend investing (before you start earning at your peak) will be educational and invaluable for when your pension fund is at it's largest.

2) Save continuously to invest
Be careful with your expenditure. Try not to be profligate, and spend large amounts only on useful items. That way you can save the money not spent and invest it in your portfolio.
What I do is empty my bank account into my savings account on the day before I collect my salary cheque, and live on my monthly salary. That means (home made) sandwiches and re-heated leftovers for lunch; making my own ground-coffee at work rather than paying £2.50 per cup from the nearest coffee-shop; buying good quality and practical clothing (especially for the winter months). Consider finding a "look" for yourself, and building a smaller wardrobe around it.

3) Choose the investment method suitable for you - and stick with it
There are inumerable investment books on the market, but the one factor that keeps being repeated is finding great companies and holding-on to them - for years if necessary.
Great companies start small, so don't be afraid of investing in a small company if it is a strong business. Great companies also maintain their position by being well-run and profitable over long periods, so don't be afraid of investing in a great company even if it has been the market leader for 30 years - it may continue to be the market leader for another 30 years!

4) Put your money where your mouth is
When you find an investment opportunity that looks too good to be true, then back your judgement.
I try and keep my portfolio below 15 shareholdings as, when you own more than this, management becomes increasingly difficult. As such, I don't think you should have less than 5% of your portfolio value in a shareholding - and you should be prepared to invest over 20% of the value of your portfolio in a single shareholding.
Put your money where your mouth is - be bold.

5) Use every investment opportunity available
I own the house I live in - and I also own a property that I rent out.
I have a SIPP (Self Invested Pension Plan) - and I also invest the maximum annual allowance into an ISA.  Having a "rainy-day fund" is a good idea, but keep it realistic at no more than a maximum of a months earnings. If you want to own an expensive watch, buy a "vintage" watch at an auction. It will cost a fraction of the new price and, if you need to sell, you know that you will get back what you have paid

Monday, 12 June 2017

Post-election thoughts on the SIPP

 The current holdings are:
1) BAE (BA.) : 1095 shares @ 665
2) BlackRock Smaller Co IT (BRSC) : 1170 shares @ 1100 (was 1248.00)
3) G4S (GFS) : 2023 shares @ 331.00
4) GlaxoSmithKline (GSK) : 393 shares @ 1690.00
5) GVC Holdings (GVC) : 1017 shares @ 770.50 (was 812.00)
6) Imperial Brands (IMB) : 170 shares @ 3595.50 (was 3680.50)
7) JPMorgan Emerging Markets (JMG): 625 shares @ 800.00
8) Lancashire Holdings (LRE) : 1209 shares @ 690.00 
9) Legal & General (LGEN): 2396 shares @ 257.00
10) Pacific Assets (PAC) : 1912 shares @ 258.50
11) Paysafe (PAYS) : 8000 shares @ 498.50
12) Sage Group (SGE): 925 shares @ 680.00 (was 713.50)
13) Schroder Asia-Pacific (SDP) : 1252 shares @ 414.00
14) Segro (SGRO) : 1607 shares @ 498.00
15) Senior (SNR) : 1560 shares @ 236.60
Cash @ £4,148
SIPP Value = £139,750


Overall, the SIPP has performed well following the General Election result, but there have been a few valuation reductions; notably with the UK Smaller Company IT (BRSC).  The only other significant correct is that of GVC which is down to 770.50 from 812.00 (which is about 5%). Through the election week, it became apparent to me that the market was looking fairly resilient and that was the case come Friday morning when the result was known.
Overall, the SIPP has still gained over £4,000 in value (there was a £750 contribution last week), which is another 3% and that cannot be sniffed at.


I have to give myself a bit of a pat on the back as when the election was called back in April, my post on 18th April did suggest that the decision by Theresa May to hold an election was audacious and would be either declared brave or stupid depending on the result. My prediction then was it would be a Labour-led coalition government - so I was correct in predicting a "hung" parliament, and missed-out on being absolutely spot-on with my prediction by just a few seats.  If Labour had won just another 2 seats from the Conservatives then the current "alliance" between Conservatives and the Ulster DUP would not have been enough to guarantee a government.  I actually had a wager on the number of seats Labour would win, and took the 7/1 available on Labour winning between 250-299 seats - odds which I considered extremely generous given the indications of the polls which was backing-up my own opinion.


I will be looking to maintain current holdings in the SIPP for the time being, unless I come across something that looks to good an opportunity to miss.  The markets were up on Friday, but are down today, and we could see this uncertainty until we know whether Theresa May will remain the Prime Minister (a leadership bid is anticipated), or we are heading back to the polls for another election in the autumn.


The problem for both the major parties is, if we do head back to the polls, whether there will be a clear winner.  No doubt, the Conservatives will put up a much better fight next time round and will be more "optimistic" rather than sniping and name-calling which certainly did not help their cause this time. As for Labour, they have to not just maintain the momentum but carry it on.  There was talk over the weekend that another couple of weeks of campaigning would have won them a clear victory - but that was against a poorly led Conservative party.  What I think is the only clear point is that the centre parties (Lib-Dems and Greens) and the more nationalistic extremists (UKIP and to some extent SNP) are dead in the water for the time-being.  If SNP are losing seats to the Conservatives in Scotland, then the Scottish vote is there for taking by Labour - but they may not have time to mobilise an adequate campaign if there is an election this autumn.  The more I think about it, the more I think that Labour have had their chance in 2017 and if we return to the polls - so long as the Conservatives don't do anything silly in the next few months - it is unlikely that Labour will be able to secure the gains they need to form a government.  Remember, they would need a significant swing in the vote to obtain a controlling majority, and so the likelihood is that they would only be able to form a coalition government with the SNP and Plaid Cymru.  Whether that would appeal to the voting public is debateable, so the probability is that the result of a autumn election would be a slight increase in Conservative seats.


Given that outlook, the prospects for the stockmarkets is probably fair as, with Conservatives in power, the Brexit negotiations are more likely to be more hard-line that conciliatory, and that will ensure a weaker £ which will hold shares at their current inflated values in the short-term.  Long-term growth for the UK though, is not good.