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.