Happy New Year!
For sure, 2021 has been a year to remember. This time last year, the SIPP value was £254,298 - so after deducting the annual contributions of £12,000 the total growth in the year has been £43,459 or 17.08%
The sole transaction in the month of December was the sale of Chelverton UK Equity Growth (I was using another quoted Chelverton fund - SDV - to identify the holding). The reason for the sale was that the UK market appears to have lost impetus, and while some investment houses are "bullish" about UK equities - I'm not. Things could all change should the current Prime Minister (or Government) be replaced, but with the current incumbents remaining in-charge confidence is low. An illustration of the weakness of UK equities is shown in the BlackRock Smaller Companies IT (BRSC) graph for the past 12 months (see below). Up until the end of August the SP was growing rapidly -then September was a bit of a disaster.
I've moved the funds into the infrastructure Investment Trust 3i Infrastructure, which while not being a likely growth investment, is more of a defensive investment against future downturns.
It hasn't all been doom & gloom, look at the SP performance of Diploma (DPLM) - up 52% during the 12 months of 2021; and while this company was also affected by the September dip, the recovery has been greater than the loss.
By this time next year, I'm setting target value of over £360,000 for the SIPP; fingers crossed I will achieve it.
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