This week I looked at the interest rate on premium bonds and decided it was too pitiful to bother with, so withdrew £500 and left just £100 in my account, moving the £500 into my SIPP.
I also cancelled the standing order that tops up the premium bonds by £100 a month and instead increased my pension top-up to £160 a month which gives £40 tax rebate making £200. I took advantage of the Hargreaves Lansdown service that automatically invests the monthly amount with only a £1.50 charge. It's been a bit annoying that I have these small monthly contributions, and feel I have to add money from elsewhere to make the £11.95 commission worth paying.
I chose to automatically invest in PRU:Prudential. These are too expensive for me to buy normally, as they are around £13.70 a share, so it would take a lot of money to get a reasonable number. By gradually topping up each month, within a few years I should have a good amount. They are a good solid dividend payer with great growth potential in Asia, so I'm excited about starting to build up a holding.
Meanwhile, the £500 from premium bonds went towards my new favourite share TRX:Tissue Regenix. This has so much potential it makes me feel faint, so I bought another 2,513 at 19.425p costing £500.10. They have already climbed 8% and are £15 in profit.
Let's see how the week went
| Weekly Change | |||
| Portfolio cost | £34,806.25 | +£0 | |
| Portfolio value (share price) | £33,902.21 | (-2.1%) | +£690.32 |
| Portfolio sell value (bid price - commission) | £32,639.28 | (-6.2%) | +£697.49 |
| Potential profits | £1,888.38 | +£387.54 | |
| Dividends | £366.79 | +£0 | |
| Profit from sales | £1,988.25 | +£0 | |
| Average monthly cash profit | £313.28 | -£10.11 | |
| (Sold stocks profit + Dividends - Fees / Months) | |||
| Avg annual % of current portfolio cost | 10.8% |
No extra cash or sales this week so quite straightforward to see that profits rose by £387 and paper losses reduced by about £300 resulting in a £697 improvement. Quite a good week and only a little drop in monthly performance thanks to a complete lack of dividends. The next few months should see the dividend figure rise nicely.
Here's the effect on the SIPP, which will be much more volatile
| Weekly Change | |||
| Portfolio cost | £10,085.99 | +£500.10 | |
| Portfolio value (share price) | £10,769.60 | (+6.8%) | +£198.92 |
| Portfolio sell value (bid price - commission) | £10,522.67 | (+4.3%) | +£222.52 |
| Potential profits | £547.20 | +£236.47 | |
| Dividends | £2.64 | +£0 | |
| Profit from sales | £500.25 | +£0 | |
| Average monthly cash profit | £134.46 | -£8.96 | |
| (Sold stocks profit + Dividends - Fees / Months) | |||
| Avg annual % of current portfolio cost | 16% |
The extra money fulfilled my first target which was to get the SIPP up to £10,000. I can now rely on the monthly contributions rather than feeding more from my other share account. Once my mortgage is paid off in 4 years I'll also start paying that amount into my SIPP.
A good week, with small increases in the portfolio taking the overall profit up to 4.3%. The fact the potential profits went up more than the overall value shows some shares didn't do too well. CWR:Ceres Power Holdings is the only one in the portfolio below the price I paid for it.
No sales or dividends, so just the usual slippage in monthly performance when nothing is sold. Still averaging 16% return after 16 weeks so still no impulse to sell anything.
Looking forward to April when the new ISA year starts and I can start working out a strategy for getting shares into my ISA to shield them from tax. I've decided against using the bedding service, as you get no say as to when the shares are re-bought, so the £11.95 saving on one commission could be wiped out by bad timing. Instead I'll aim to focus on the shares I'm not so keen on, and maybe consolidate a little by buying more of my favourites. All that to look forward to in a few weeks.
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