SIPP Porgtfolio as at 1st November 2018

October 2018 has been the worst month on record for my SIPP since I started managing it for myself in August 2012.  It has been so bad that it has taken me over a week to get my head around what's happened to be able to write this blog..

Current holdings in the SIPP (valies as on the morning of 1st November)

British Aerospace (BA.) holding now = nil : SOLD

Blackrock Smaller Co IT (BRSC) holding now = 1200 (n/c); Value = £15,600

BP (BP.) Bought 785 shares; holding now = 3850; Value = £21,860 

FDM Group (FDM) Dividend 11 shares; holding now = 866; Value = £7,395

GB Group (GBG) Bought 383 shares; holding now = 2941; Value = £15,058 

Genus (GNS) holding now = nil : SOLD

GVC Holdings (GVC) Bought 390 shares; holding now = 1780; Value = £16,794

HG Capital Trust IT (HGT) holding now = 840 (n/c); Value = £16,464

Homeserve (HSV) holding now = 1526 (n/c); Value = £14,527

Keywords Studios (KWS) Bought 481 shares; holding now = 1260; Value = £17,338

Legal & General (LGEN) Dividend 118 shares; holding now = 6618; Value = £16,631 

Safecharge Group (SCH) holding now = nil : SOLD

Segro PLC (SGRO) Dividend 23 shares; holding now = 2623; Value = £16,131

Cash: holding now = £813

Portfolio Value = £158,613 (was £171,247)  DOWN £13,384 (including £750 monthly contribution) or 7.78%

All the major transactions in the period took place after the major market moves down, as I started the position the portfolio into what I hoped to be a recovery mode.

Those companies that I thought would not recover quickly in the short-term: British Aerospace, Genus, and Safecharge; were sold off completely.  The funds that came available were invested into BP, GB Group, GVC, and Keywords Studios.

As per last months comment, I'm still fairly hopeful of the BP shareprice (SP) topping 600, but this may not happen until Jan/Feb.
GVC is investing heavily in the USA and when this starts to come together, I can see this company growing considerably - although I expect it to be taken over by a major US company before then.
GB Group is very profitable and it's business in internet security is growing very fast - I took the share weakness due to the market weakness as a buying opportunity.
The same goes for Keywords Studios, although this company may require a bit longer to get back on track.

SIPP Portfolio as at 30 September 2018

Current holdings in the SIPP

British Aerospace (BA.) holding now = 731 (n/c); Value = £4,605 (UP £177)

Blackrock Smaller Co IT (BRSC) holding now = 1200 (n/c); Value = £17,184 (down £516)

BP (BP.) Bought 1565 shares; holding now = 3065; Value = £18,084 (cost £17,366)

FDM Group (FDM) holding now = 855 (n/c); Value = £8,294 (UP £257) 

GB Group (GBG) Dividend 3 shares; holding now = 2558; Value = £14,836 (down £1,082) 

Genus (GNS) holding now = 160 (n/c); Value = £3,824 (down £739)

GVC Holdings (GVC) holding now = 1390 (n/c); Value = £12,732 (down £2,572)

HG Capital Trust IT (HGT) holding now = 840 (n/c); Value = £16,716 (UP £504)

Homeserve (HSV) holding now = 1526 (n/c); Value = £15,641 (down £229)

Keywords Studios (KWS) holding now = 779 (n/c); Value = £15,120 (down £460)

Legal & General (LGEN) holding now = 6500 (n/c); Value = £17,030 (UP £520)

Safecharge Group (SCH) holding now = 2464 (n/c); Value = £8,008 (UP £247)

Sage (SGE) holding now = nil : SOLD

Segro PLC (SGRO) holding now = 2600 (n/c); Value = £16,536 (down £634)

Cash: holding now = £2,637

Portfolio Value = £171,247 was £173,433  DOWN £2,186 or 1.26%

The loss in the month was worse that as reported as the current SIPP value includes a monthly contribution of £750, so the loss in the period is actually £2,936.

Major transactions include a sale of the complete holding in SAGE, as I cannot see a recovery in the SP in the next 6 months.  The business is undergoing major restructuring, which is something that I did not take into account.

The proceeds of the sale have been pumped into oil share BP: there's a few factors behind this a) the company has finally completed the payment of damages for the Texas oil spill; b) the company is now leaner and more efficient and has new income streams coming into play; c) the USA is about to launch trade sanctions on major oil producer Iran, and that could well push up the price of oil to US$90.  Since I've been a shareholder of BP, the share-price has improved and we should see it top 600 (my initial purchase was at 550).

I'm concerned that the actions of US President Trump have affected the SP of Genus (GNS) which is a company with large markets in China, and it seems unlikely that there will be a recovery soon.

I am also concerned about the drop in value of GVC from summer highs of over 1100 to under 930 today (2nd Oct 18).  Personally, given the strength in the management of the company, I see this as a buying opportunity and will be looking to increase my holding.

The same can be said for GB Group (GBG), this company should have a significant future and may well be in the FTSE100 within 5 years.

SIPP Portfolio as at 31st August 2018

During 2018, in managing the SIPP I have endeavoured to maintain a fair spread of holdings to alleviate risk and (hopefully) seek value, but sometimes this spread brings in holdings which although not losers, are not performing as well as expected. As such, they affect the overall performance of the portfolio and - if the portfolio is to hit the annual 15% growth target - then other holding have to do even better to compensate.

There are 2 holdings within the portfolio that I’ve held for some time that have underperformed in the past 12 months, and they are both Investment Trusts: 

JP Morgan Emerging Market IT (JMG) and 

Schroders Asia-Pacific IT (SDP).  

In the past year they have grown barely 5% and that has been a hindrance to the performance of the SIPP.  As such, I’ve decided to sell-off both of these holdings and have reinvested the proceeds in other companies held in the SIPP.  

As I wrote last month, I have also sold-off my entire holding Senior (SNR) as I thought this company had gone as far as it could in the short term.

Overall, the month of August has not been a great one for the SIPP, the value remains approximately unchanged at around £174,000 as while some holdings have done well – GBG has gone from 540 to 620+ and KWS has gone from 1818 to 2000 – some holdings have lost ground.

This month, I have increased holdings in 

GBG (bought an extra 1050 shares); 

HSV (bought an extra 476 shares); 

and KWS (bought an extra 324 shares). 

I also made an investment in oil company BP (bought 1500 shares).

I am conscious that I may have come in a little to late to the BP party as the SP in this company has improved considerably in the past 2 years. However, the rally looks like being sustained on the back of improved profits as oil prices continue to rise.  I am also hopeful that BP will make the move into more sustainable areas of energy generation.  

Sage (SGE) has been particularly disappointing as this time last month I thought we were on our way to 700+.  Little did I know that the CEO was about to be shown the door – apparently this was a friendly departure from the company, but he still leaves with immediate effect. If I had not already made my share purchases and emptied my “bank” in the process, then I would have topped-up my holding in SGE, but at this time I’m having to consider whether to sell other elements of the SIPP to provide funds or plough-in the balance of my small cash holding.

Current holdings in the SIPP

British Aerospace (BA.) holding now = 731 (n/c); Value = £4,428 (down £362)

Blackrock Smaller Co IT (BRSC) holding now = 1200 (n/c); Value = £17,700 (down £420)

BP (BP.) Bought 1500 shares; holding now = 1500; Value = £8,219

FDM Group (FDM) holding now = 855 (n/c); Value = £8,037 (down £85) 

GB Group (GBG)  Bought 1050 shares; holding now = 2555; Value = £15,918 

Genus (GNS) holding now = 160 (n/c); Value = £4,563

GVC Holdings (GVC) holding now = 1390 (n/c); Value = £15,304 (down £949)

HG Capital Trust IT (HGT) holding now = 840 (n/c); Value = £16,212 (UP £252)

Homeserve (HSV) Bought 476 shares; holding now = 1526; Value = £15,870

JPM Emerging Markets IT (JMG)  holding now = nil : SOLD

Keywords Studios (KWS) Bought 324 shares; holding now = 779; Value = £15,580

Legal & General (LGEN) holding now = 6500 (n/c); Value = £16,510 (down £578)

Safecharge Group (SCH) holding now = 2464 (n/c); Value = £7,761 (down £246)

Sage (SGE) holding now = 1532 (n/c); Value = £9,091 (down £419)

Schroders Asia/Pac (SDP)   holding now = nil : SOLD

Segro PLC (SGRO) holding now = 2600 (n/c); Value = £17,170 (down £114)

Senior PLC (SNR)   holding now = nil : SOLD

Cash: holding now = £1,069

Portfolio Value = £173,433 DOWN £770 or 0.44%

Some notes on my Brexit investment strategy

It always pays to have an in-depth look at individual holdings in your account to verify the reasons why you purchased in the first-placed, and whether there is still some purpose in maintaining the holding, or is it time to sell and move on - all the time trying to shape a "Brexit-Proof" portfolio.

As of this month, I've been holding Legal & General shares (LGEN) over 2 years with my initial stake being 1570 shares bought on 11th July 2016 at a price of 181.40p - with dealing costs the average cost per share was 183.07p per share. Back then, the SP was suffering from the post-Referendum reaction which saw some major movements in some share prices. I bought then as I thought the sell-off was overdone - and I was right. Since February 2017, the SP has been moving in a band between 250 - 270 and while I first thought it may strike-out and break the 300 level, it hasn't. Unfortunately, since February 2017, I've made a number of purchases in LGEN thinking I was doing the right thing but really I was just parking the money in the equivalent of a "high interest" account. The company goes "ex-div" on 17th August and that will probably lead to the SP dropping about 4p to under 260p.  As such, I'm looking to trim my holding in the company from 6500 shares to 3300 shares; which will be about 5% of the SIPP value.  The post-Referendum loss has been recovered and what I have to decide now is what action do I take regarding Brexit.  The reason for that drop was most commentators considered the future of LGEN outside the EU was not good. Personally I think the company has a very strong future on the domestic market and, while European growth may be a struggle, that domestic market should hold-up and maintain company profits. However, LGEN has only rarely seen it's SP top 275 and so I will be looking to sell should the SP top 270, which I am hoping will happen in the next 3 months.  

Monies released will be invested (in part) in increasing the holding in Homeserve (HSV). The company currently has a market value of £3.32bn and value needs to exceed £4.50bn to enter the FTSE100, but I can see that happening before the end of 2019, and it may well happen in the next 12 months. The stimulus for the SP increase will surely come from its US subsidiary's and this is a company that could well repeat the feat's of Ashtead Group in the USA and see a significant increase in turnover, profits and the SP.  Having a large foothold in the US, this company will be outside any Brexit influence. 

My current holding of 1532 shares in Sage was purchased at a cost of £10,625.36; an average of 693.56p per share. Unfortunately, since those purchases were made in Feb/March of this year. the SP has been trading at mainly under 640p.  What has been pushing the SP down are the domestic markets: sales in overseas markets has been growing significantly, and it is in this area that future growth will come.  If, post-Brexit, the £ drops in value to under US$1.20 per £1 those overseas markets will become even more important for the UK balance sheet and this could lead to a major re-value of the company and see it return to levels over 700p for the Share Price.  Even so, I shall be looking to reduce my holding by 25% when the SP climbs above 690p.

Currently, my largest invividual holding is in Blackrock Smaller Companies Trust (BRSC), and this investment trust has shown remarkable performance over the past couple of years.  My first purchase of BRSC was in October 2012 (nearly 6 years ago) and the SP then was 529p; but I sold off that initial investment the following June at 636p.  In March 2015 I returned to BRSC and started building-up my holding, acquiring  1391 shares at an average of £12,514.49 or 899.70p per share.  Rebalancing my SIPP in January 2017, I sold off 221 shared at an SP of 1000.80p and in hindsight that was a mistake - the SP is at 1555 and is over 10% of the value of my SIPP.   What to do with holdings like this before Brexit is a worry.

I've been a long-term holder of GVC buying 500 shares in January 2015 at an average of 446p. Today I hold 1390 shares purchased at an average of 577p and even with the SP at 1140p the growth does not seem to have ended yet.  The joint-venture with MGM International opens-up the US Sports Betting market to GVC and we could see the company enjoy a significant increase in revenue as a result, along with substantial profits.  Another company that should be able to ride the storm of Brexit.

I've been looking at the oil companies Shell and BP and they are looking healthier again, and there is a prospect of significant earnings growth.  Of the pair, I prefer BP mainly as I reckon the more time goes on from the Deepwater Horizon oil-spill in 2010, the more the memory fades and the prospect of earnings growing faster than Shell.  I'm looking for a buying opportunity, although possibly the best time to buy was in May/June 2016 with the SP around 360p. Today the SP is at 575-580 and I want to buy in as soon as I have funds available, as I can see the SP growing 15% in the next 12 months.

To finance the purchase of BP, I'm looking to sell off my entire holding in Senior (SNR).  I bought 1560 shares in SNR in March/april 2017 at an average SP of 207p and in the intervening period the company has managed to transform its share price hitting over 320 last month. that was a bit of a spike from the 295-305 range that the SP has been in recently, and I can't see that there is much juice left in this market.

31st July SIPP Review

Another interesting month for the SIPP.

Performance continues to be solid and the value is now over £174,000.  With just 4 more contributions (on 7^th of August, September, October and November) before the annual performance “cut-off” on my birthday on 8^thNovember, the SIPP only has to find another 3% of growth to beat the annual target of 15% and hit £186,000.

The big gainers in the month were GVC - who secured a major deal with America-based MGM Resorts, and which may (at some time in the near future) be taken over by that company. Also, Homeserve (HSV) which continues to secure a strong hold on domestic repair markets in the USA. Both companies increased their Share Price (SP) by over 11% in the month.

There have been several changes to the constituents of the SIPP with sales of Croda (CRDA), SSP Group (SSP) and XL Media (XLM). 

I felt both Croda and SSP Group didn’t fit the profile of my SIPP as they are both “slow & steady” growers.  I run an ISA alongside the SIPP (to provide the funds to repay the mortgage) and I fill that with companies holding that "strong & steady" profile and I retain Croda in my ISA.  

XL Media is a different kettle of fish: I think this company is inherently a good one although the recent scrutiny of internet manipulation of markets and “fake-news” may put some of its business strategy under the microscope. That could mean a change in future strategy is required which I think has lead to the recent significant downturn in the SP, and it’s not helped by the company being based in Israel. The location doesn’t bother me, if it did I would not have bought shares in it in the first place, but on reflection I don’t think it is helping the SP recover lost ground.

Unfortunately, the gains on Croda and SSP Group were obliterated (and more) by the loss sustained on XL Media; but the sales released £16,000 for reinvestment elsewhere.      

That when into Genus (GNS), FDM Group (FDM); Legal & General (LGEN) and Segro (SGRO).

Genus is an animal genetics company specialising in pigs and cattle, and my shareholding is already up 5% in a month.

I’ve increased my holding in FDM Group as I think the company SP is due a significant re-rating as after a period of sustained growth the SP has remained at about the 1000 level for about 10 months. With revenue growing, profits growing, and a healthy dividend yield of 2.70% for an IT company, there is plenty of scope there – I will just have to wait for the market to come to the same conclusion.

Brexit is now starting to be more a reality and so I’m strengthening my defensive aspects of the SIPP.  The probability of a "hard" Brexit is - in my opinion - about 70%, and so we have to start making provision.  Regards defensive shares, I think Legal & General fits that bill as well as Segro. Both have strong dividend yields, both have strong profit growth, and both should be able to continue to proper – in the short term at least – once the UK leaves the EU next March.   

Current holdings in the SIPP
British Aerospace (BA.) holding now = 731 (n/c); Value = £4,790

Blackrock Smaller Co IT (BRSC) div-reinvest of 12; holding now = 1200; Value = £18,120

Croda (CRDA) holding now = nil : SOLD

FDM Group (FDM) Bought 355 shares; holding now = 855; Value = £8,122 

GB Group (GBG) holding now = 1505 (n/c); Value = £8,127 
Genus (GNS) Bought 160 shares; holding now = 160; Value = £4,592
GVC Holdings (GVC) holding now = 1390 (n/c); Value = £16,253 - up 11% in month
HG Capital Trust IT (HGT) holding now = 840 (n/c); Value = £15,960
Homeserve (HSV) holding now = 1040 (n/n); Value = £10,524 - up 12% in month
JPM Emerging Markets IT (JMG) holding now = 918 (n/c); Value = £8,078
Keywords Studios (KWS) holding now = 455 (n/c); Value = £8,272
Legal & General (LGEN) Bought 2920 shares, holding now = 6500; Value = £17,088
Safecharge Group (SCH) holding now = 2464; Value = £8,623
Sage (SGE) div-reinvest of 12; holding now = 1532; Value = £9,510
Schroders Asia/Pac (SDP) holding now = 1817 (n/c); Value = £8,158
Segro PLC (SGRO) Bought 452 shares; holding now = 2600; Value = £17,284
Senior PLC (SNR) holding now = 2625 (n/c); Value = £8,363
SSP Group (SSPG) holding now = nil : SOLD
XL Media (XLM) holding now = nil : SOLD
Cash: holding now = £2,939
Portfolio Value = £174,203 up £2,109 or 1.22%

30th June 2018 SIPP update

Current holdings in the SIPP
British Aerospace (BA.) sold 673 shares, holding now = 731 ; Value = £4,727

Blackrock Smaller Co IT (BRSC) holding now = 1188 (n/c); Value = £18,134

Croda (CRDA) holding now = 100 (n/c); Value = £4,803

FDM Group (FDM) holding now = 500 (n/c); Value = £4,880 

GB Group (GBG) holding now = 1505 (n/c); Value = £8,954 - up 12%
GVC Holdings (GVC) holding now = 1390 (n/c); Value = £14,595
HG Capital Trust IT (HGT) holding now = 840 (n/c); Value = £16,254
Homeserve (HSV) holding now = 1040 (N/C); Value = £9,350
JPM Emerging Markets IT (JMG) holding now = 918 (N/C); Value = £7,729
Keywords Studios (KWS) holding now = 455 (n/c); Value = £8,099
Legal & General (LGEN) div-reinvestment of 136, holding now = 3580; Value = £9,519
Safecharge Group (SCH) div-reinvestment of 34, holding now = 2464; Value = £8,623
Sage (SGE) holding now = 1520 (n/c); Value = £9,627
Schroders Asia/Pac (SDP) holding now = 1817 (n/c); Value = £8,212
Segro PLC (SGRO) holding now = 2148; Value = £14,378
Senior PLC (SNR) div-reinvestment of 39, holding now = 2625; Value = £7,970
SSP Group (SSPG) holding now = 1224; Value = £7,760
XL Media (XLM) Bought 1000 shares, holding now = 3019; Value = £3,094
Cash: holding now = £5,335
Portfolio Value = £172,094

Despite the dividend reinvestment, and the significant SP gains GBG, the SIPP is effectively treading water this month. We could be entering a period of consolidation over the summer months, during which I will be seeking to accumulate some cash (from sales of companies that may have hit a plateau) and from SIPP contributions.
Sage (SGE) has been disappointing this year, and I'm not sure that there is possibility for the SP to recover this year, so I am considering reducing my position.
The holding in BAE Systems (BA.) is looking out of step with my portfolio.  Although a strong company, and with a good order-book and valuable dividend, the potential for an uplift of the SP isn't obvious as the glut of defence orders from the Trump administration in the USA hasn't happened.
Recent purchase XL Media (XLM) suffered a SP setback with the issue of a profit warning, but I think the correction was significantly overdone.  As such, I have increased my holding and await the recovery, but recent downward moves in the SP suggest that this company is in trouble.
If I follow my own rule to sell-off significant losers, then I should bin XLM, but my exposure is only £3000 so - for now - I am putting a sale on-hold. 

30th May 2018 update

Current holdings in the SIPP
British Aerospace (BA.)  holding now = 1404 (n/c no change); Value = £8,991

Bango (BGO) holding NIL (sold)

Blackrock Smaller Co IT (BRSC) holding now = 1181 (n/c); Value = 17,701

Croda (CRDA) holding now = 100 (n/c); Value = £4,704

FDM Group (FDM) holding now = 500 (n/c); Value = £5,060 

GB Group (GBG) Bought 345; holding now = 1505; Value = £7,901
GVC Holdings (GVC) dividend reinvestment of 23, holding now = 1390; Value = £13,900
HG Capital Trust IT (HGT) dividend reinvestment of 12, Holding now = 840; Value = £15,793
Homeserve (HSV) holding now = 1040 (N/C); Value = £9,157
JPM Emerging Markets IT (JMG) holding now = 918 (N/C); Value = £7,931
Keywords Studios (KWS) Bought 164, holding now = 455; Value = £7,798
Legal & General (LGEN) holding now = 3444 (n/c); Value = £9,374
Safecharge Group (SCH) Bought 430, holding now = 2430; Value = £7,970
Sage (SGE) holding now = 1520 (n/c); Value = £10,104
Schroders Asia/Pac (SDP) holding now = 1817 (n/c); Value = £8,425
Segro PLC (SGRO) dividend reinvestment of 36, holding now = 2148; Value = £13,966
Senior PLC (SNR) holding now = 2586 (n/c); Value = £8,099
Sirius Real Estate (SRE) holding NIL (sold)
SSP Group (SSPG) dividend reinvestment of 38, holding now = 1224; Value = £7,980
XL Media (XLM) dividend reinvestment of 19, holding now = 2019; Value = £3,311
Cash: holding now = £1,150
Portfolio Value = £169,321

Couple of major changes, with the remaining holding in Bango (BGO) sold and the entire holding in Sirius Real Estate (SRE) sold.
Bango has been a real disappointment, and although it may be early days to cut & run, I was unhappy with the comments from founder Ray Anderson at the recent AGM that he did not understand the reason for the recent reduction in the SP - when in January Bango raised cash by placing a large volume of shares at 180 which was about 20% below the then market value.  If someone this involved with the company does not understand what the response will be to various actions taken, then it sounds like the company needs to bring in some new - and more experienced - personnel.
Sirius Real Estate remains a company that should do well in the long run, but after looking at my aspirations for the SIPP for the next 12-36 months, SRE did not really fit the bill. I already have a substantial shareholding in a real estate company in Segro (SGRO) and in the next 36 months I see Segro making substantial gains.

The proceeds of these sales has been moved into the GB Group (GBG), Safecharge Group (SCH) and Keywords Studios (KWS).

With the value of the SIPP now over £169,000; I'm happy to report growth in value of nearly £6,000 in the month of May which is about 3.30%.  The month of May has been a good one, and these months don't come around too often. So while it is great to see, I'm not going to get complacent. 

Projected Growth of the SIPP

Initial capital 1st August 2012 = £51,684
15% pa growth = 1.17% per month
For the first 36 months of the SIPP, I paid a monthly contribution of £300.
Since August 2015, my monthly contribution has been £750 a month.
The SIPP projection is based on that £750 monthly contribution continuing, but it may be necessary to cut it, or increase it, in the future.

August 1st to November 1st = 3 months
51,684 plus £300 x 3 = 52,584 @ 1.17% growth / month = 54,440

Year 1 (pe 01Nov13): b/f £55,440 plus £300 x 12; plus 1.17% growth / month = £66,566
Year 2 (pe 01Nov14): b/f £66,566 plus £300 x 12; plus 1.17% growth / month = £80,511
Year 3 (pe 01Nov15): b/f £80,511 plus £300 x 9 and £750 x 3; plus 1.17% growth / month = £98.033
Year 4 (pe 01Nov16): b/f £98,033 plus £750 x 12; plus 1.17% growth / month = £122,638
Year 5 (pe 01Nov17): b/f £122,638 plus £750 x 12; plus 1.17% growth / month = £150,934
Year 6 (pe 01Nov18): b/f £150,934 plus £750 x 12; plus 1.17% growth / month = £183,474
Year 7 (pe 01Nov19): b/f £183,474 plus £750 x 12; plus 1.17% growth / month = £220,895
Year 8 (pe 01Nov20): b/f £220,895 plus £750 x 12; plus 1.17% growth / month = £263,930
Year 9 (pe 01Nov21): b/f £263,930 plus £750 x 12; plus 1.17% growth / month = £313,419
Year 10 (pe 01Nov22): b/f £313,419 plus £750 x 12; plus 1.17% growth / month = £370,332
Year 11 (pe 01Nov23): b/f £370,332 plus £750 x 12; plus 1.17% growth / month = £435,782
Year 12 (pe 01Nov24): b/f £435,782 plus £750 x 12; plus 1.17% growth / month = £511,049
Projected Value of SIPP for 08 November 2024 = £511,049

As a check on my progress, I've put together the "projected growth" of my SIPP.
When I started the SIPP on 1st August 2012, by transferring my managed pension funds into my self-managed SIPP, my target growth was 20% per annum. That was a bit on the optimistic side, and I've reduced the target to 15% pa.

As of today (13th May 2018) I can confirm that I beat my growth target of £150,934 for the 1st November 2017, and I'm well on the way to meeting (and beating) my growth target for 1st November 2018 of £183,474.

At close of business on Friday 11th May 2018, my SIPP had a value of £167,363

Past Performance
Year 1 (pe 01Nov13): Target Value = £66,566   : Actual Value = £67,000
Year 2 (pe 01Nov14): Target Value = £80,511   : Actual Value = £76,000
Year 3 (pe 01Nov15): Target Value = £98.033   : Actual Value = £90,000
Year 4 (pe 01Nov16): Target Value = £122,638 : Actual Value = £113,000
Year 5 (pe 01Nov17): Target Value = £150,934 : Actual Value = £153,000
Year 6 (pe 01Nov18): Target Value = £183,474

Sell in May and go away? No Way!!!

British Aerospace (BA.)  holding on 21-March = 1404, holding now = 1404; Value = £8,581

Bango (BGO) holding on 21-March = 600, holding now = 600; Value = £948

Blackrock Smaller Co IT (BRSC) holding on 21/3/18 = 1181, holding now = 1181; Value = 16,870

Croda (CRDA) holding on 21/3/18 = 100, holding now = 100; Value = £4,488

FDM Group (FDM) holding on 21/3/18 = 395, holding now = 500; Value = £5,100 

GB Group (GBG) holding on 21-March = 950, holding now = 1160; Value = £5,632
GVC Holdings (GVC) holding on 21/3/18 = 1367, holding now = 1367; Value = £12,330
HG Capital Trust IT (HGT) holding on 21/3/18 = 828, nolding now = 828; Value = £15,815
Homeserve (HSV) holding on 21/3/18 = 1040, holding now = 1040; Value = £7,613
JPM Emerging Markets IT (JMG) holding on 21/3/18 = 918, holding now = 918; Value = £7,922
Keywords Studios (KWS) holding on 21/3/18 = 235, holding now = 291; Value = £5,448
Legal & General (LGEN) holding on 21/3/18 = 3444, holding now = 3444; Value = £9,344
Safecharge Group (SCH) holding on 21/3/18 = 2000, holding now = 2000; Value = £6,560
Sage (SGE) holding on 21/3/18 = 1520, holding now = 1520; Value = £9,655
Schroders Asia/Pac (SDP) holding on 21/3/18 = 1817, holding now = 1817; Value = £8,231
Segro PLC (SGRO) holding on 21/3/18 = 2112, holding now = 2112; Value = £13,652
Senior PLC (SNR) holding on 21/3/18 = 2586, holding now = 2586; Value = £7,867
Sirius Real Estate (SRE) holding on 21/3/18 = 7700, holding now = 7700; Value = £4,882
SSP Group (SSPG) holding on 21/3/18 = 1220, holding now = 1186; Value = £7,906
XL Media (XLM) holding on 21/3/18 = 2000, holding now = 2000; Value = £3,589
Cash: holding on 21/3/18 = £1,747, holding now = £832
Portfolio Value = 163,175

Overall, the portfolio is starting to get some momentum again as the value had slipped to £155,800 on 21st March and so has picked up about £6,600 (not including the £750 contribution for April) in the last 6 weeks. That's a gain of over 4% and when I include anticipated dividends and further contributions (6 @ £750 = £4,500) my target SIPP value of £186,000 on 8th November is within reason. 

As I wrote on 21st March, I'm looking for a new set of companies to take the SIPP forward in value over the next few years and (hopefully) find a potential "10-bagger" that will surge into the FTSE100. 

There are 5 new holdings in the portfolio and they are:-

FDM Group (FDM) holding now = 500; Value = £5,100 

GB Group (GBG) holding now = 1160; Value = £5,632
Keywords Studios (KWS) holding now = 291; Value = £5,448
Safecharge Group (SCH) holding now = 2000; Value = £6,560
XL Media (XLM) holding now = 2000; Value = £3,589

FDM Group (FDM)
Current Market value £1.080bn
A professional services information technology company, which specialises in placing consultants into companies who are then able to sell-on the software products and maintain a foothold. As IT becomes ever-more dominant in business, keeping up-to-date trained-software staff is a problem for major corporations, and maintaining state-of-the-art software is a huge drain on capital. As such, companies are looking to bring in these services rather than invest "in-house". This is a long-term hold and a company that could become huge - if not the subject of a bid before then.

GB Group (GBG)
Current Market value £0.750bn
A specialist in the growing market of identity data intelligence, the shares recently jumped 15% on news of the full year figures to 31st March showing a 37% sales growth. Verification of identity is becoming increasingly important in today's world, and securing identity from fraud is likely to be a major market in the future.  I can see this company doubling in size from current market value of £750m as the World becomes more aware of the need for data security.

Keywords Studios (KWS)
Current Market value £1.200bn
A specialist in the growing market of testing the linguistic correctness and cultural acceptability of computer games; Audio/Voiceover Services, and in this respect the company appears to have "cornered the market".  Whether you play computer games or not, as an investor you have to be open to investment opportunities and not ignore those that you do not understand. I am 58yo, I do not play computer games but, via my 15yo son, I am aware of just how much the generation younger than me (and specifically those aged under 25yo) enjoys gaming as a recreation. KWS has been on an upward trend since January 2016 and since then the SP has grown from 210 to 1900. Now, I really wish I had become involved before November 2016 when the SP was still under 500 - but I really think that this company has a long way to go yet. 

Safecharge International Group (SCH)
Current Market value £0.490bn
This company is involved in online payment technologies and services. Since losing PAYS (Paysafe) from my SIPP portfolio I've been looking for a replacement that operates in a similar sphere, and SCH fits the bill. Online Payments and banking is here to stay, and whereas GBG operates in preventing online identity fraud, SCH is operating in preventing online financial fraud. It is a niche operation, but it is growing and is highly profitable which means the company has significant cash reserves (£100 million in the bank - and the market value is just under £500 million). The company also pays a generous 3.75% dividend.

XL Media (XLM)
Current Market value £0.390bn
This company is interesting in that it locates customers who already pay for an online service and introduces them to another online service which will (hopefully) convert the introduction into a sale.  Revenue income is about £140m with profit at about 40%.  Cash reserves are fair at £40m as the company has been investing in acquisitions into new revenue areas.  The future looks bright and when profits start to flow we should see a significant re-rating of the SP.

All these 5 companies have seen significant SP growth in the past 12 months and, with the upward momentum on our side, we have hopefully found the value which will attract the positive sentiments of the market and push the SP onto new highs.        

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.

Just for the record

As of 10am this morning, the value of the SIPP was:-

Equities = £142,350.00
Cash =        £16,865.00     Total = £159,215.00

The value of the ISA was:-

Equities = £84,228.00
Cash =      £ 3,170.00     Total = £87,398.00

Value as at 8th November 2017 = £153,000
Target growth at 15%pa = £22,950 (£153,000 x 15%)
Contributions in year: 12 @ £750 = £9,000
Growth on contributions:
£9,000 / 2 = £4,500 @ 15% = £675

£153,000  + £22,950 + £9,000 + £675 = £185,625
Say, Target for 8th November 2018 = £186,000

As usual at this time of year, I'm on the lookout for new investments to invigorate the portfolio - and I hope to advise readers of the blog of those new investments with my next posting.