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, 21 March 2018

Update on the SIPP

I've given the SIPP a complete overhaul over the past couple of months as I endeavour to lay the foundations for another growth surge. The UK economy appears to be starting to enter a period (probably a sustained period) of uncertainty due to Brexit and the implications that will bring.  The good thing about Brexit is that if the £ drops in value due to the uncertainty, then my "foreign-earning" shares will increase in value by a corresponding %. 
However, the downside of a drop in the value of the £ will be that my personal expenditure on food,clothing, and utilities - and probably petrol - will become more expensive. So I will have less disposable income at a time in my life when I need to save as much as possible with retirement on the immediate horizon (I am 58yo).

Essentially, to find the growth to power the SIPP over the next 5 years, I've started looking for the next generation of FTSE100 companies: that is companies which currently have a market value of between £500 million and a £1 billion.  At this time, a company needs a value of over £4 billion to be a constituent of the FTSE100. So, I'm looking for companies that potentially could increase significantly in value over the next 5 to 10 years.

The SIPP changes since 1st January are easiest shown by comparing what was in the SIPP then and what is in the SIPP now
                                                             Number of shares held
Holding                                           as at 01Jan        as of today
British Aerospace (BA.)                      1404                1404
Bango (BGO)                                       4600                600
Blackrock Smaller Co IT (BRSC)        1181                1181
Croda (CRDA)                                       nil                   100 
FDM Group (FDM)                               nil                   395
GB Group (GBG)                                    nil                   950
G4S (GFS)                                            3313                  nil
GVC Holdings (GVC)                          1047                1367
HG Capital IT (HGT)                            422                  828
ICG Capital IT (ICGT)                          917                   nil
Homeserve (HSV)                                 960                 1040
JPMorgan Emerging IT (JMG)             918                   918
Keywords Studios (KWS)                      nil                   235
Lancashire (LRE)                                  1215                 nil
Legal & General (LGEN)                      3444                3444
Safecharge (SCH)                                     nil                 2000
Schroder Asia IT (SDP)                        1795                 1817
Sage Group (SGE)                                1130                 1520
Segro (SGRO)                                      1622                   2112
Senior (SNR)                                       1586                    2586
Sirius RE (SRE)                                    2400                    7700
SSP Group (SSPG)                               1200                    1220
XL Media (XLM)                                  nil                        2000
Cash                                                    £16,865            £1747

The overall value of the SIPP is about £3,000 below the value as on 1st January when it was at £159,215.
At the time of writing, the SIPP value is at £155,800 which is disappointing considering that there have been 3 monthly contributions of £750 since 1st Jan - so the value is effectively over £5,000 (or 3%) down in the 1st -Quarter of 2018.
More on the new constituents of the SIPP with the next posting.

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