It’s time to move on. I discussed the immediate impact of the UK’s Brexit vote on the SIF stocks last week, together with my view on the near-term outlook. This week I want to get back to building the portfolio.

I firmly believe in the adage that investment returns are a result of time in the market, not timing the market. The UK economic outlook may be more uncertain following our decision to leave the EU, but it’s by no means certain to be bad. In any case, UK-listed stocks provide exposure to a wide range of businesses whose fortunes don’t depend too heavily on the UK economy.

So I’ve got the bit between my teeth. I’m ready to spend some virtual cash. The only problem is that my SIF share screen has not yet recovered from the impact of the Brexit sell-off.

At the time of writing, just eight stocks qualify for the screen. Some of these, like Somero, Macfarlane and BAE are already in the portfolio. Others are unsuitable, mostly because they are cyclical and linked to the UK housing market. I already have enough exposure to this sector through Persimmon and Norcros. As I’ve discussed in recent weeks, my urgent need is for more defensive stocks.

To solve this problem, I’ve decided to loosen one of the screening criteria. I’m not going to change the financial performance requirements, just expand my screen to include dual-listed stocks. I originally used this criteria to filter out suspect overseas stocks, but I’m not sure it’s the best approach. Many of the dodgiest companies of recent years haven’t been dual listed. They’ve only been listed in the UK. I may abandon this criteria permanently and apply a human filter instead.

A focus on food

Food producers are considered defensive businesses. Demand for staples doesn’t tend to change much during recessions or booms.

Removing my restriction on dual-listed stocks means that Irish fresh produce distributor Total Produce now qualifies for my screen. This stock was suggested by a reader a few weeks ago. It’s also a company I’ve considered for my own portfolio over the years. Total Produce hadn’t previously shown up on my screen due to its dual Ireland/UK listing. But apart from this, it meets all of my criteria.…

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