Totally out of the "blue", the Prime Minister has announced a General Election to be held on 8th June.
The effect has been immediate on my SIPP and (to it's detriment) as the £ has risen to US$1.27 - its highest value in months (since October 2016). That has taken nearly 0.80% off the value of the SIPP.
Where it will end up immediately prior to the election is anyone's guess.
The GE puts a huge dilemma on the voting public of Britain. It was one thing to vote for or against a particular political decision wrapped up in the Referendum but, if you want a "hard" Brexit and you were a Labour voter at the last GE living north of Watford, will you really want to vote Conservative on 8th June?
And if you did vote Conservative at the last election, but voted "Remain" in the Referendum, will you really want to vote for the Conservatives again if - as many will - you live in the South-East of England and you have benefitted from the EU for decades?
This GE is far from simple to predict - despite many thinking it will be a "walkover" for the Conservatives - and I can see there being many surprise results. What I am aware of, from a personal point of view, is that I have not yet met a "Remain" voter who considers that they may change their vote if given the opportunity again, but I have met a few "Leave" voters who would like to reconsider.
Where there is uncertainty, there is opportunity - and that means for the next 6 weeks I will be paying very close attention to my investment portfolio's. Both my SIPP (which I detail on this blog) and my ISA (which is about half the value of the SIPP and is being managed with the intention of paying off my mortgages in about 8 years time) will be managed with the intention of making the most of the turmoil.
Fair-play to Theresa May for having the audacity to make this decision, which will be considered brave or stupid depending on the result come 9th June. I (for one) would not have made such a decision if I were in her shoes, as I would have held the office until 2020 and made certain of the Brexit strategy before heading for the polls - and I voted "Remain" in the referendum.
My prediction? I can see another coalition government, one which brings together the Labour, Lib-Dems and the Scottish Nationalists under one leader - unfortunately, that may have to be Jeremy Corbyn.
Tuesday, 18 April 2017
Thursday, 13 April 2017
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.
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.
Tuesday, 4 April 2017
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
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
Monday, 3 April 2017
Contributions to date and current holdings - April 2017
The
value of the SIPP at commencement of this blog on 1st 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
Monday, 12 October 2015
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
Financial Data for SIPP
Target at 31st December 2014 = £86,000
Total = £13,050
Capital Growth = £89,896 less (£51,684.02 + £13,050) = £25,152 or 39%
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
3) GlaxoSmithKline (GSK) : 620 shares
4) GVC Holdings (GVC) : 1000 shares
5) Hill & Smith Holdings (HILS) : 375 shares
5) Hill & Smith Holdings (HILS) : 375 shares
6) International Capital Group (ICP): 643 shares
7) International Personal Finance (IPF) : SOLD
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
19) Cenkos (CNKS) : 870 shares
Financial Data for SIPP
Target at 31st December 2014 = £86,000
Actual Value on 31st December 2014 = £75,780 (under performed by £10,220)
Current Value (12th October 2015) = £89,896 (approx), including cash of £2,621
Target for 31st December 2015 = £107,160
Value at commencement of blog (1st August 2012) = £51,684.02
Monthly contributions since commencement of blog:
36 months @ £300 = £10,800
3 months @ £750 = £2,25036 months @ £300 = £10,800
Total = £13,050
Capital Growth = £89,896 less (£51,684.02 + £13,050) = £25,152 or 39%
Friday, 25 September 2015
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 31st December 2014 = £86,000
Total = £12,300
Capital Growth = £87,867 less (£51,684.02 + £12,300) = £23,883 or 37%
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 31st December 2014 = £86,000
Actual Value on 31st December 2014 = £75,780 (under by £10,220)
Current Value (25th September 2015) = £87,867 (approx), including cash of £570
Target for 31st December 2015 = £107,160
Value at commencement of blog (1st August 2012) = £51,684.02
Monthly contributions since commencement of blog:
36 months @ £300 = £10,800
2 months @ £750 = £1,50036 months @ £300 = £10,800
Total = £12,300
Capital Growth = £87,867 less (£51,684.02 + £12,300) = £23,883 or 37%
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