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.
