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Meeting: |
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Held at: |
The Brocklebank, |
Date: |
16th
January 2007 |
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Time: |
17:30 – 18:40 |
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Prepared by |
Dave G |
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Chairperson: |
Adrian T |
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Present: |
Adrian T Chris B Dave G Kit P Richard W Simon B |
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Apologies: |
None |
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Chairman’s Acceptance of Minutes |
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Signature |
Date |
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Thursday 15th February.
Accepted.
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Ref. |
Description &
Progress |
Status |
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SB/0726/03 |
Investigate possibility of using OpenSource packages to help the Treasurer track transactions for the accounts 0831: No Progress 0920: Has found one
called TurboCash but still needs to look at it and then discuss with Chris B
as appropriate 1018: No progress 1113: No progress 1213: No progress 0116: Dropped as Simon was unable to find something clearly suitable |
DROPPED |
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ALL/0920/01 |
Research the Banking sector and bring a verbal recommendation of which member of the sector should be considered for further investigation 1018: No progress – deferred to
next month. Everyone encouraged to try
to devote a bit of spare time to look into this for next meeting 1113: No progress but it was
agreed to leave this action open as we had said that we would look into
different sectors and we hadn’t even done the first one yet. All to try harder to find the time to do
this. 1213: No progress 0116: Dropped as no obvious value in the sector and no obvious momentum in actually trying to progress the action! |
DROPPED |
See end of these minutes.
See separate report for detail.
Highlights/Lowlights: Yet another excellent month with profits of £3120 on the month, a rise of 5.6 against a rise in the FTSE of 1.4%. Further new records for asset value and profit.
Unit value up from 765.912 to 805.257.
We have £3.3k available as non-mechanical cash with an additional £9.2k in cash alternative investment trusts.
Overall club assets stand at £66,324 with profits of £33,744. Overall return on investment is 96.54% and the annualised rate of return since the club started in May 1998 is 26.52% (compared with an annualised rise in the FTSE of 8.26% over the same period). In the 92 rolling 12-month periods since comparisons could begin, the Club has outperformed the FTSE in 76 of these which is an excellent 82.6%.
With us having a continuing sequence of strong monthly rises, there is bound to come a time when this will come to an end. Chris has given some initial thought into possibilities of hedging against this though hedging against falls across the whole portfolio could be expensive. We could consider hedging some of it by using covered warrants or listed CfDs and this would also have the added benefit of being appropriate products to gain exposure to via our Speculative Portfolio. Chris to continue to look into possibilities.
As usual, the Fundamental portfolio is still showing as “too low” with 12.3% held in this portfolio against strategic minimum of 25%.
The Fundamental portfolio is also too concentrated with still only 3 holdings in it, the issue being that two of these three exceed the strategic maximum weighting of 30% in any one stock within this portfolio.
More fundamental buy proposals are encouraged.
Thanks to rises in the portfolio as a whole, the two investment trust alternative cash holdings are no longer threatening to breach their 10% limits.
It was an excellent month’s performance with the portfolio showing a gain of 6.3% compared to the market’s 1.5% rise. The portfolio has now passed the 100% profit mark and is currently at 112%. The average annual return since inception is 29.3%.
The main movers were Character Group (+12%), Interior Services (+12%), Metnor (+11%), Jacques Vert (+8%) and John David (+7%).
New highs were set by McAlpine, Metnor, First Choice, Character Group, Cable & Wireless, Jacques Vert and Lookers .
McAlpine and Metnor remain above their stop loss levels (currently 534.3p and 358.03p respectively) and will only be sold if they fall below them.
We are due to sell First Choice Holidays this month. To date it is showing a 24.3% rise, roughly double the market performance for the year. Following the sale we will have two vacancies in the Value side of the portfolio. One of these will be filled by Oxford Instruments using the hybrid selection method.
It was agreed that to enable better portfolio analysis in the future, we should begin to record which mechanical holdings have been selected by the hybrid method and which not. Richard to consider how best to do this.
The table below now reflects the sell
situation for each mechanical holding.
The appropriate sell condition (i.e. “Anniversary” or “Sell If Below”)
is shown in bold.
|
Company |
Annivers-ary date |
Purchase Price |
Target Price |
Trailing Stop Loss |
High |
Target Met? |
Sell If Below |
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McAlpine
(Alfred) |
Oct-06 |
347.97 |
521.96 |
52.20 |
586.50 |
Yes |
534.30 |
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Metnor
Group |
Nov-06 |
219.83 |
329.75 |
32.97 |
391.00 |
Yes |
358.03 |
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First
Choice Holidays |
Jan-07 |
233.99 |
350.99 |
35.10 |
295.00 |
No |
350.99 |
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Interior
Services Group |
Feb-07 |
259.70 |
389.55 |
38.96 |
302.50 |
No |
389.55 |
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BETonSPORTS |
Mar-07 |
159.44 |
239.16 |
23.92 |
171.00 |
No |
239.16 |
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Character
Group |
May-07 |
59.50 |
89.25 |
8.93 |
125.50 |
Yes |
116.58 |
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Ashley
(Laura) |
May-07 |
22.50 |
33.75 |
3.38 |
27.25 |
No |
33.75 |
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Cable
& Wireless |
Jun-07 |
110.39 |
165.59 |
16.56 |
164.75 |
No |
165.59 |
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John
David Group |
Jun-07 |
254.49 |
381.74 |
38.17 |
332.75 |
No |
381.74 |
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Jacques
Vert |
Aug-07 |
18.00 |
27.00 |
2.70 |
22.75 |
No |
27.00 |
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Lookers |
Nov-07 |
167.72 |
251.58 |
25.16 |
180.00 |
No |
251.58 |
It was noted that BetOnSports is due for sale in 2 months but may still be suspended by then. It was agreed that if this proves to be the case then we will transfer it to the Speculative Portfolio and fill the vacancy caused in the mechanical portfolio as a result. If it is unsuspended by then, then it will be dealt with in the same way as any other mechanical holding.