Current Value (As at 31st July 2018) = £174,203 including cash
Target for 8th November 2018 = £183,474 (see Projected Growht page)
Value of SIPP at commencement of this blog on 1st August 2012 = £51,684.02.
Monthly contributions since commencement of blog = 36mths @ £300 plus 34 months @ £750 = £36,300
Capital Growth is £174,203 less (£51,684+£36,300) = £86,219

Wednesday, 20 December 2017

Portfolio Review 20th December 2017

My target value for the SIPP for 8th November 2017 (my birthday) was £153,000 (see my blog of 4th April 2017) - and for the first time in a few years, the target was met and beaten. As of today, the value of the SIPP is just over £156,000.

It has been a brilliant year for the SIPP, as this time last year the overall value was about £115,000 and since then I have only made contributions of £9,000 - so "growth" has been £32,000 or over 27% of the value of the SIPP at the start of the year. It's is not an accurate calculation, but a simple enough calculation of growth that's easy to understand. The main thing is that I use the same method of calculation every year, as consistency is the key.

My target was £153,000 and at one point the SIPP was going so well that I revised the target to an end-of-year value of £170,000.  Unfortunately, the momentum could not be maintained (although had I stuck to my original plan I would have hit the revised target value - see below), but £156,000 is a fantastic result.

It has not all been good news, as I've made a few mistakes along the way - not least selling my Bitcoin holdings (equivalent of 5 coins bought at an average of US$2400) at US$6900. While I was telling everyone else to buy and hold, I thought I knew better - sold on a dip hoping to buy-back in at a lower level, missed the "bounce" and didn't have the guts to admit I called it wrong and buy back in at a higher level than I sold out at. As such, I have basically missed out on US$50,000 (about £37,000).

The target value for the SIPP for 8th November 2018 is £186,000 calculated as follows:-
Target for 8th November 2017 = £153,000
Growth @ 15% pa = £22,950
Contributions: 12 @ £750 = £9,000
Growth on contributions 7.5% = £675
Total = £185,625

BAE Systems PLC (BA.) Holding = 1,404 shares
Since my last update, the share price (SP) is about 10% down at 560, which is very disappointing as I was expecting a recovery in the SP to a level of 660+.  Why? Because the company retains a large forward order book, and this has even increased since my last posting with a massive order for “Typhoon” aircraft.  The USA are (apparently) on the verge of sanctioning an enormous increase in defence spending so, it would seem to me, demand for the company products should increase and with it company profits. I remain a holder, but the situation is under review as with the SP weakness there is something going on that I am unaware of.

Bango PLC (BGO) Holding = 4,600 shares
A new holding for the SIPP. I’ve built up a holding worth about £10,500 at an SP of 233. This is going to be a long-term hold. The company has a market value of only £150million and so the SP can vary considerably due to the low volume of transactions.  

Blackrock Smaller Companies Trust (BRSC) Holding = 1,181 shares
One of my “foundation” investment trusts which forms the bedrock of the SIPP.  Represents about 10% of the SIPP value. A long-term hold.

G4S PLC (GFS) Holding = 3,313 shares
The SP has dropped again into the 255-260 range (from 276-286) since my last posting.  The fundamentals of the company are sound. Revenue is growing, and so are profits, and the dividend is being maintained. This should be a buying opportunity – it was when the SP was at this level at this time last year, and there was a surge in the SP value to 325+ in June/July.  I remain a holder and I’m intending on increasing my holding by over 1000 shares to approximately 7.50% of the value of the SIPP. I’m expecting another surge in the SP in the early part of 2018 and (this time) I will be selling-off when the SP breaks 300.

GVC Holdings PLC (GVC) Holding = 1,047
On of the success stories of the SIPP.  GVC has remained on track and very profitable. Revenue is growing very quickly and all broker forecasts are being met.  The proposed takeover of Ladbrokes-Coral will catapult the company into the FTSE100 (should it come off), and we could see an SP of between 1050-1100. For the time being, very much a hold.

HG Capital Trust (HGT) Holding = 422 shares, and
ICG Enterprise Trust (ICGT) Holding = 917 shares
Apparently, 50% of all companies are “private” and not listed on any exchange, so the only way to invest in them is via an Investment Trust. The largest and most well-known (and successful?) of these is 3i Group (III) worth £8.70 billion. If – back in August 2012 – I had just placed my entire SIPP value into 3i when the SP of that IT was at about 220, my SIPP now would be valued at about £250,000 and not at £155,000. Unfortunately, these “private” companies are a bit of a throw-back to the old days when the investor knew virtually nothing about what they were investing in. Nothing much in the way of information comes out of them, and you only really know if they are doing well when they occasionally sell one of their assets to the market for a sum in-excess of their estimated Nett-Asset-Value (NAV).  Together, they represent 10% of the SIPP value, and both are long-terms holds.

Homeserve PLC (HSV) Holding = 960 shares

A recent addition to the SIPP, mainly as this consistently profitable company is just expanding into the USA. I’m looking at choosing “momentum” companies, and Homeserve is very much that.  Currently, my holding represents 5% of the SIPP value, and I may increase this share to 7.50%.

JP Morgan Emerging Markets IT (HSV) Holding = 918 shares
Part of my attempt to diversify the SIPP. The holding represents approximately 5% of the value of the SIPP. A long-term hold.
Lancashire Holdings PLC (LRE) Holding = 1,215 shares
The SP has recovered from the impact of the devastating hurricanes in the USA during the summer.  Even so, there has been no special dividend this autumn (we’ve had one for the past few years). However, LRE is one of only 3 remaining specialist "Lloyds" insurers listed on the London Stock Exchange and it would be no surprise to see a bid in 2018. Remains a hold.
Legal & General Group PLC (LGEN) Holding = 3,444 shares
This company is a money-making machine, thanks to the changes in workplace pension provision which is ensuring huge inflows of pension contributions coming under management. The SP should continue to strengthen and, given the strong dividend yield of over 5%, we could see the SP breaching 290 in the next 6 months, and possibly even 300+.  Again, this remains a hold.

Sage Group PLC (SGE) Holding = 1,130 shares
I wasn’t expecting major movements in the SP, however, the Sage SP has gained 20% since my initial purchase at about 650 in February’17.  Sage is a strong company and growth is expected to accelerate in 2018; so we could see an SP breaking-through the 850+ level next year.  This remains a hold.

Schroder Asia Pacific Fund IT (SDP) Holding = 1,795 shares
Part of my attempt to diversify the SIPP.  I have always had an interest in the economies of the Asia-Pacific region. This holding represents approximately 5% of the value of the SIPP. A long-term hold.
Segro PLC (SGRO) Holding = 1,622 shares
Ever since I became involved in Segro - way back in August 2014 - with the SP at 356, this company has done nothing wrong.  My last purchase was at 407 in July 2015.  Hardly a quarter goes past without this company doing something else to strengthen it’s future. This company remains a very strong hold.

Senior PLC (SNR) Holding = 1,586 shares
Added to the SIPP portfolio in April this year at an ave price of 207 (after hitting a high of 354 in April 2015). Since my last review the SP has retreated slightly and it may be time to sell and move on.

Sirius Real Estate Ltd (SRE) Holding = 2,400 shares

Added to the SIPP portfolio this month (December17), this is no ordinary real estate company as it’s business model is providing co-working spaces for the modern “out-sourced” office worker. Essentially, operating in Germany, this is a “momentum” share and I see considerable further growth in this market which (if the UK is anything to go by) is considerably under-resourced. Just an initial purchase of shares as yet, I am expecting to increase this to about 10,000 shares or about 5% of the SIPP value.

SSP Group (SSPG) Holding = 1,200 shares
Added to the SIPP Portfolio in November17, this is another “momentum” share.  Specialising in providing retail outlets at transport hubs (rail stations and airports), this company will only stop growing when the overall economy stops growing. That could happen, but not in the short-term (12-24 months).

Cash = £16,865.09

Total SIPP Value = £156,280.00 (mid-morning 20th December 2017)

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