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%