Investor Reveals 66.6% Return Strategy for SIPP in 2025

A UK investor has achieved a remarkable 66.6% return on their Self-Invested Personal Pension (SIPP) for the year 2025. This significant gain was attributed to a strategic mix of long-term investments that have finally yielded substantial growth. The investor has shared insights on their approach and plans for future investments as they look ahead to 2026.

Top Performers in 2025

The investor’s portfolio featured several standout stocks in 2025, combining blue-chip dividend payers with higher-risk growth stocks. This balance has proven effective, with key performers including:

• Fresnillo (LSE: FRES): 400% return
• Prudential (LSE: PRU): 75% return
• HSBC: 46% return
• Aviva: 43% return
• Aberdeen: 42% return

The investor noted that the common factor among these stocks was their previous undervaluation and a clear earnings recovery path when purchased. Fresnillo, in particular, has outperformed the FTSE 100 index, which saw an overall gain of 18% during the same period.

Market Insights and Future Strategy

In reflecting on their investment decisions, the investor highlighted the conditions surrounding the precious metals market. They initiated their investment in Fresnillo during a prolonged bear market, anticipating a resurgence driven by rising inflation and increased demand for gold and silver. This prediction has since materialized, contributing significantly to their overall returns.

The investor also doubled down on Prudential at the beginning of 2025, seizing on the prevalent narrative that China had become “uninvestable.” At that time, Prudential’s share price was trading below its levels during the Covid-19 sell-off. Since then, the Chinese government has implemented new stimulus measures to support an economy impacted by a real estate downturn. This has provided a boost to Prudential’s business, particularly in regions where it generates substantial revenue.

Looking forward to 2026, the investor sees Asia, particularly China, as a region poised for growth, citing advantages such as cheaper capital, labor, and energy. They predict that as the middle class in Asia expands, the demand for services will increase, further benefiting companies like Prudential. The investor emphasizes that the insurance penetration in Asia remains low, with a protection gap estimated at $119 trillion, indicating significant potential for growth.

Despite this optimistic outlook, the investor remains cautious about potential risks. They acknowledge that regulatory changes in China, currency fluctuations, and uneven economic growth across Asia could introduce volatility. While these factors do not change their long-term perspective, they are aware of the possible short-term impacts.

In conclusion, the investor’s strategy for their SIPP emphasizes long-term thinking and leveraging market volatility to secure advantageous positions. By focusing on valuation, cash generation, and resilient businesses, they aim to continue compounding both income and capital in their portfolio as they head into 2026.

For those considering similar investment strategies, the investor’s experience underlines the importance of research, timing, and maintaining a balanced approach to risk and reward.