SIPP for 2060+

[ADrunkenMarcus]

My Smithson allocation has arrived. It makes up about 13.7% of the portfolio's current value. Let's hope it performs!

Best wishes

Mark.

[ADrunkenMarcus]

OK, so to summarise the portfolio changes this tax year:

Sold out of Patisserie Holdings in August 2018 at 416p. The proceeds went into Fevertree.

Trimmed Standard Life UK Smaller Companies, Aberdeen Asian Smaller Companies and Temple Bar and purchased a big chunk of Smithson at IPO. Then topped up Smithson further, by trimming Murray International and a tiny bit of DP Poland.

I don't like to trade so much but I'd have bought into Fundsmith if it had been a closed-ended (investment trust) fund and so Smithson was a bit too much to resist.

Best wishes

Mark.

[ADrunkenMarcus]

My annual review for 2018-19.

TRADES

As above:
Sold out of Patisserie Holdings in August 2018 at 416p. The proceeds went into Fevertree. (Phew!)

Trimmed Standard Life UK Smaller Companies, Aberdeen Asian Smaller Companies (now Aberdeen Asia Focus) and Temple Bar and purchased a big chunk of Smithson at IPO. Then topped up Smithson further, by trimming Murray International and DP Poland. After DP Poland fell sharply early in 2019, I had enough accumulated dividends to buy back more shares than I sold at about a third of the price.

CURRENT HOLDINGS



Spirax Sarco Engineering was bought in 2015 with no changes to the holding, but it has grown strongly and continued to increase as a proportion of the portfolio. Kainos was bought in 2017 with no changes but it, too, has grown substantially. DP Poland’s recent decline has solved the problem of being overly concentrated in one share.

TOTAL RETURN - INDEX

On a total return basis, the portfolio fell 10.5% this year which compares to rises of between 2.6% and 8% for my chosen benchmark total return indexes. After being strongly ahead of all of them up until April 2018, it’s now just behind the FTSE All World but remains ahead of the others.



How did individual holdings fare during the year? Total returns as follows:



Smithson was only launched in October 2018 but has returned about 18%.

The direct shareholdings generally have high returns on capital employed and high operating margins. I also included Smithson’s data, which is calculated slightly differently but perhaps serves as a guide to trends.





Summary of Individual Shares' Performance (up to early 2019 peaks):




RUNNING COSTS

Trading costs increased due to the unusual amount of trading during the year. Smithson also has higher estimated charges than some of the holdings which were sold to go into it, while direct share holdings with no ongoing charge form a smaller proportion of the portfolio:

Annual cost estimate (ex. dealing) rose from 1.24 to 1.35% and annual cost estimate (inc. dealing) rose from 1.25 to 1.51%.

Best wishes

Mark.

[ADrunkenMarcus]

My annual review for 2019-20. 5 April 2020 is a Sunday so the valuations are at the close on Friday 3 April 2020.

TRADES
Sold Murray International and bought Smithson July 2019 due to its superior growth prospects; cash dividends topped up DP Poland slightly; sold Fevertree at a much higher price than today in November 2019 and put proceeds into Smithson; halved Kainos and put proceeds into Smithson; topped up more DP Poland again in January 2020.

CURRENT HOLDINGS



Smithson has been deliberately increased to a very substantial proportion of the portfolio and forms an enormous core. Kainos still makes up a reasonable proportion despite being halved, due to strong growth. Temple Bar has performed dreadfully and fallen to 2.4 per cent of the portfolio.

TOTAL RETURN - INDEX

The portfolio is ahead of all its benchmark indexes, rising 26.2% since 5 April 2014 compared to 21.95% for the FTSE All World TR ($) and tiny increases from the other FTSE indexes.

In the last year, the portfolio returned minus 11.1%, followed by minus 14.5% for the FTSE All World, minus 24.2% for FTSE 100, minus 25.7% for FTSE 250 and minus 24.3% for FTSE All Share.



How did individual holdings fare during the year? Total returns (from 3 April 2019 to 3 April 2020) as follows:



Kainos was up in triple digits at one point and, although it's fallen as with the rest of the market, it made a positive return for the year as did the dependable Spirax Sarco. Since 2017, Kainos has been hiking its dividend at a 25% CAGR.

Temple Bar was a small proportion of the portfolio but fell so sharply that, without it, the entire portfolio's total return would likely have been kept in the single digits - less than minus 10% rather than minus 11.1%. Rotork always gets hit with the oil price as the shares are correlated quite strongly. Aberdeen Standard Asia Focus is somewhat disappointing. It has a great long term record back to 1995 but less so since purchase in 2012.

RUNNING COSTS

Again, there was a fair bit of trading this year - must learn to desist. However, that'll be easier to do with so much of the portfolio in Smithson. Annual costs (ex. dealing) fell from 1.35% to 1.02% and annual costs (inc dealing) fell from 1.51% to 1.29%. The annual broker charge has reduced compared to the previous provider, as the SIPP was transferred during the year.

All told, I'm quite happy and don't feel a negative return of 11.1% is too bad for an all equity portfolio.

Best wishes

Mark.

[monabri]

Let's make a date to review this in 2061...and you can send me a card for my 100th birthday!

[flyer61]

LOL I would be 100 in 2061...not expecting to be there though.

[ADrunkenMarcus]

You guys are a fair bit older than me!

Best wishes

Mark

[ADrunkenMarcus]

Shares in DP Poland are currently suspended so we'll have to see what happens there and if they're bought out for cash.

I have a very large Rotork holding in my dividend growth portfolio and this month sold my much smaller Rotork holding in the SIPP, tidying the portfolio a bit by topping up Smithson.

Best wishes

Mark.