Easter 2017 SIPP Update

Good recent progress in the markets has seen my SIPP put on some decent value.
On 3rd April the SIPP had a value of £128,000 and since then I have made my monthly contribution of £750 and the value has grown to £131,880 as close of business today (13th April 17).

Most of the growth in value has come from my Blackrock Smaller Companies IT (BRSC) which was valued at £12,285 on 3rd April but is at £13,308 today.  Segro (SGRO) has also made healthy progress from £7,132 to £7.572 today. However, progress has been fairly decent across the portfolio.

Looking ahead, I'm hopeful of good growth to come from Segro (SGRO) as the company now has a stranglehold on the warehouse space at Heathrow Airport and this should make great contributions to earnings this year now fully incorporated into the company. I'm expecting the company to be promoted to the FTSE100 this year - the SP will only have to be 495+ to guarantee promotion, and it's at 480 today - and if that is achieved we could quickly see another 5% of increase as funds balance their portfolios.

G4S (GFS) is well on the way to recovery now - I managed to purchase 50% of my current holding at 195 in May'17 with the other 50% purchased at an average of 245 - and the SP is currently at 307 and growth looks likely to continue.

GVC Holdings (GVC) has been a revelation, and goes from strength to strength. It is almost certain to make further acquisitions this year and is another company with a target of being in the FTSE100.

Finally, Lancashire Holdings (LRE) will have their AGM in early May followed by the release of the 1st-quarter figures for 2017 and, on the proviso that no news is good news in the insurance business, the numbers should be good enough to suggest another Special Dividend in December is on the cards.

How is the forecast going?

When I started this blog, the intention was to build a SIPP fund value of over £500,000 by my 65th birthday on 8th November 2024. At the current level of contributions (£750 a month) and if I can achieve 15% per annum growth (including dividends) then I can hit my target of £500,000 on 8th November 2024.


The fund had to be at £125,000 on my last birthday (8th November 2016) to be "on target" and the fund value at that time was and at that time it was valued at £110,000 plus £3,000 in cash - so trailing a fair bit which was disappointing as in early October the SIPP had a total value of almost £120,000.


There will be ebbs & flows in the value and recent performance has been encouraging. The revised target for 8th November 2017 is £153,000.


That is calculated at
Target for 8th November 2016 = £124,615
Growth @ 15% pa = £18,692
Contributions: 12 @ £750 = £9,000
Growth on contributions 7.5% = £675
Total = £152,982
Dividends are currently £3,362 in the year 2016-17

Contributions to date and current holdings - April 2017

The value of the SIPP at commencement of this blog on 1^st August 2012 was £51,684.02

Since that date, my contributions to the SIPP have been

Sept-2012 to July-2015

35 @ £300 = £10,500

August-2015 to March-2017

20 @ £750 = £15,000

Total contributions = £25,500

BAE (BA.) 1095 shares worth £6,936

Blackrock Smaller Co IT (BRSC) 1170 shares worth £12,285

G4S (GFS) 2023 shares worth £6,190

GlaxoSmithKline (GSK) 390 shares worth £6,468

GVC Holdings (GVC) 1017 shares worth £7,307

Imperial Brands (IMB) 170 shares worth £6,595

JPMorgan Emerging Markets IT (JMG) 655 shares worth £4,775

Lancashire Holdings (LRE) 1195 shares worth £7,940

Legal and General (LGEN) 2396 shares worth £5,886

Pacific Assets IT (PAC) 1192 shares worth £4,650

Paysafe Group (PAYS) 8000 shares worth £36,920

Sage Group (SGE) 925 shares worth £5, 832

Schroder Asia-Pacific IT (SDP) 1292 shares worth £4,732

Segro (SGRO) 1578 shares worth £7,132

Senior (SNR) 780 shares worth £1,615

Cash = £2,952

Portfolio Value = £128,000 (approx.)

 

Retained and sold in past 18 months

It has been a long time since I update the Pension Builder blog, and a lot of changes have happened in the meantime.  However, some significant holdings remain an integral part of the portfolio, such as:-

GlaxoSmithKline (GSK) – was 620 shares, now it’s 390 shares

GVC Holdings (GVC) – was 1000 shares, now it’s 1017 shares

Lancashire Holdings (LRE) – was 1000 shares, now it’s 1195 shares

Optimal Payments (PAYS) – was 10000 shares, now it’s 8000 shares

Segro (SGRO) – was 1300 shares, now it’s 1578 shares

BAE (BA.) - was 185 shares, now it’s 1095 shares

Blackrock Smaller Co IT (BRSC) – was 895 shares, now it’s 1170 shares

 

Those that have been sold off completely are:

Fidelity Asian Values (FAS) was 1190 shares

Hill & Smith Holdings (HILS) was 375 shares

International Capital Group (ICP) was 643 shares

Laird (LRD) was 402 shares

RPS Group (RPS) was 686 shares

Brown Group (BWNG) was 492 shares

Ashmore (ASHM) was 300 shares

RSA Insurance (RSA) was 200 shares

Unilever (ULVR) was 58 shares

Pearson (PSON) was 72 shares

Cenkos (CNKS) was 870 shares

OPAY moves to new highs as SIPP portfolio is consolidated

This last week has again seen OPAY reach new (adjusted) highs. The share price is within touching distance of hitting 400+ when the company is quoted on the FTSE250 - anticipated to happen in early December.

Further to my last blog, I've continued updating and consolidating the shareholdings within my SIPP. This continues to be (generally) in-line with the criteria I have set myself when reviewing SIPP performance earlier this year, ie:-
1) Investment companies to have a market value of greater than £500 million
2) Investment companies to have a yield of at least 3%.
3) Investment companies to be without significant debt, or able to cover debt from cash reserves (if this does not make sense that is because I am NOT a trained financial analyst).

I have been able to finance the purchases by monthly contributions to the SIPP (£750 per month) and from the sale of my entire shareholding in International Personal Finance (IPF) whose share price has recently spiked to 425+, and by trimming my shareholding in Fidelity Asian Value IT (FAS).

The current shareholdings are as follows:
1) BlackRock Smaller Co IT (BRSC) : 894 shares

2) Fidelity Asian Values IT (FAS) : 1190 shares
3) GlaxoSmithKline (GSK) : 620 shares

4) GVC Holdings (GVC) : 1000 shares
5) Hill & Smith Holdings (HILS) : 375 shares

6) International Capital Group (ICP): 643 shares
7) International Personal Finance (IPF) : SOLD

8) Laird (LRD): 402 shares

9) Lancashire Holdings (LRE) : 1000 shares

10) Optimal Payments (OPAY) : 10000 shares

11) RPS Group (RPS): 686 shares

12) Segro (SGRO) : 1300 shares

13) Brown Group (BWNG) : 492 shares

14) Ashmore (ASHM) : 300 shares

15) RSA Insurance (RSA) : 200 shares

16) Unilever (ULVR) : 58 shares

17) BAE (BA.) : 185 shares

18) Pearson (PSON) : 72 shares
19) Cenkos (CNKS) : 870 shares

Financial Data for SIPP
Target at 31^st December 2014 = £86,000

Actual Value on 31st December 2014 = £75,780 (under performed by £10,220)

Current Value (12^th October 2015) = £89,896 (approx), including cash of £2,621

Target for 31^st December 2015 = £107,160

Value at commencement of blog (1^st August 2012) = £51,684.02

Monthly contributions since commencement of blog:
36 months @ £300 = £10,800

3 months @ £750 = £2,250
Total = £13,050

Capital Growth = £89,896 less (£51,684.02 + £13,050) = £25,152 or 39%

OPAY roars on prospect of entry to FTSE250

OPAY has leapt to new (adjusted) highs today, which suggests that once the company is quoted on the FTSE250 - anticipated to happen in early December - that the share price could top 400.

Further to my last blog, I've continued updating my SIPP.  This is generally in-line with the criteria I have set myself when reviewing SIPP performance earlier this year, ie:-
1) Investment companies to have a market value of greater than £500 million
2) Investment companies to have a yield of at least 3%.
3) Investment companies to be without significant debt, or able to cover debt from cash reserves (if this does not make sense that is because I am NOT a trained financial analyst).

As such I have made initial purchases in:-
Brown Group (BWNG): 190 shares @ 324
Ashmore (ASHM): 300 shares @ 263
Intermediate Capital (ICP): 275 shares @ 541
RSA Insurance (RSA): 200 shares @ 656
Unilever (ULVR): 31 shares @ 2642
BAE (BA.): 185 shares @ 438
Pearson ((PSON): 72 shares @ 1124

I have been able to finance the purchases by contributions to the SIPP and from the sale of my entire shareholding in Standard Chartered Bank (STAN) whose share price has recently collapsed with little prospect of recovery in the short-term.  As such, I've decided to cut my losses and move the capital into other companies where the prospects seem better.

Financial Data for SIPP
Target at 31^st December 2014 = £86,000

Actual Value on 31st December 2014 = £75,780 (under by £10,220)

Current Value (25^th September 2015) = £87,867 (approx), including cash of £570

Target for 31^st December 2015 = £107,160

Value at commencement of blog (1^st August 2012) = £51,684.02

Monthly contributions since commencement of blog:
36 months @ £300 = £10,800

2 months @ £750 = £1,500
Total = £12,300

Capital Growth = £87,867 less (£51,684.02 + £12,300) = £23,883 or 37%

SIPP update continues

I've recently decided to bite the bullet and close the book on my ill-fated purchase of XChanging (XCH). As such, I've sold off my entire 3000 shareholding, recouping (after costs) £3,087.43. This has resulted in a loss of just under £2,000 or approx 40% of my initial investment.
Disappointingly awful.

Pending the adjustment of my OPAY shareholding - which should follow once the company is quoted on the FTSE250 - I've decided to commence updating my SIPP.  This is in-line with the criteria I have set myself when reviewing SIPP performance earlier this year, ie:-
1) Investment companies to have a market value between £500m - £3,000m
2) Investment companies to have a yield of at least 3%.
3) Investment companies to be without significant debt, or able to cover debt from cash reserves (if this does not make sense that is because I am NOT a trained financial analyst).

As such, taking advantage of the monies recouped from the sale of XCH, I have been able to make initial purchases in a couple of companies:-
Laird (LRD): 190 shares @ 400
and
RPS Group (RPS): 330 shares @ 229
I have also brought the shareholding in BRSC up to 10% of the SIPP value, approx £8,300, by purchasing another 140 shares @ 939.

Financial Data for SIPP
Target at 31^st December 2014 = £86,000

Actual Value on 31st December 2014 = £75,780 (under by £10,220)

Current Value (10^th August 2015) = £84,010 (approx), including cash of £2,285

Target for 31^st December 2015 = £107,160

Value at commencement of blog (1^st August 2012) = £51,684.02

Monthly contributions since commencement of blog:
36mths @ £300 = £10,800

1 month @ £750 = £750
Total = £11,550

Capital Growth = £84,010 less (£51,684.02 + £11,550) = £20,776 or 32%