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Meeting: |
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Held at: |
The Brocklebank, |
Date: |
17th
May 2007 |
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Time: |
17:15 – 18:00 |
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Prepared by |
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Chairperson: |
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Present: |
Chris B Kit P Richard W |
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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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Proposed dates for future meetings are:-
Thu Jun 21
Thu Jul 19 (AGM)
Thu Aug 16
Thu Sep 20
Thu Oct 18
Thu Nov 15
Thu Dec 20.
Accepted
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Ref. |
Description &
Progress |
Status |
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DG/0215/04 |
Update the Strategy document to incorporate the new relaxed value filters 0315: Needs to include decision to allow companies in the top 10%
in the unfiltered list to be eligible (was top 50 companies) 0419: In progress 0517: Sent out version 8 and approved at the meeting |
COMPLETE |
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CB/0315/01 |
Arrange for direct debits to be transferred once Abbey current account opened and inform members of new account details so they can amend their subscription standing orders. 0419: Can now be progressed now that the Abbey account is
opened. It was agreed that we should
close the old current account so that we don’t incur the £15 monthly charge
but that we leave the deposit account open….just to make it easier to re-open
a current account should we ever decide to return to BOS (action CB/0419/02
raised) 0517: Action completed but we still need to set up a direct debit
between Barclays and the Abbey account (action CB/0517/01 raised) |
COMPLETE |
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CB/0419/01 |
Move the unclaimed £5 Lucky
Llama prize for April from the creditors back into the club’s accounts. |
COMPLETE |
See end of these minutes.
See separate report for detail.
Highlights/Lowlights: An excellent month, up over £1300 on the month (1.9%). Unit value has moved up from 887.741 to yet another record high of 903.731.
We have £6.2k available as non-mechanical cash with an additional £9.8k in cash alternative investment trusts.
Overall club assets stand at £77,543 (a record high) with profits of £40,798 (also another record high). Overall return on investment is 111.03% (highest since Nov 2000) and the annualised rate of return since the club started in May 1998 is 28.77% (compared with an annualised rise in the FTSE of 9.4% over the same period).
In the 96 rolling 12-month periods since comparisons could begin, the Club has outperformed the FTSE in 80 of these, which is 83.3%.
Chris was asked to change the highlighting in the report from coloured green/red to bold instead as the shaded numbers didn’t print out well on laser printer.
It was noted that whilst the overall value of the Alliance Trust holding was rising, the discount to NAV was approaching 15%. This, coupled with the fact that we have in excess of £6k in non-mechanical cash, suggests that it might be an appropriate time to put some cash into Alliance Trust.
The discussion is recorded in section 5.5 of these minutes.
As usual, the Fundamental portfolio is still showing as “too low” with 10% 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.
It was another strong month with a 3.2% rise versus the All Share’s 1.5%.
This was generally a month of steady rises rather than standout huge gains although John David did rise by +20%. There were a couple of poor performers, namely Wimpey (-6%) and SCS Upholstery (-7%). But there were also many new highs set: Metnor, Character Group, Laura Ashley, Cable & Wireless, John David, Jaques Vert, Lookers and Royal Dutch Shell,
Metnor remains above its stop loss level (currently 412.03p) and will only be sold if it falls below it.
Character Group and Laura Ashley, both from the Growth side, reach their anniversaries this month. Laura Ashley will be sold and replaced by M&C Saatchi. Character Group is above its profit target but currently below its stop loss level so is due to be sold. However it is also the next highest replacement candidate and therefore only enough will be sold to rebalance the holding in line with the money management strategy.
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.
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Company |
Annivers-ary date |
Purchase Price |
Target Price |
Trailing Stop Loss |
High |
Target Met? |
Sell If Below |
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Metnor
Group |
Nov-06 |
219.83 |
329.75 |
32.97 |
445.00 |
Yes |
412.03 |
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Character
Group |
May-07 |
59.50 |
89.25 |
8.93 |
208.50 |
Yes |
199.58 |
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Ashley
(Laura) |
May-07 |
22.50 |
33.75 |
3.38 |
30.50 |
No |
33.75 |
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Cable
& Wireless |
Jun-07 |
110.39 |
165.59 |
16.56 |
188.00 |
Yes |
171.44 |
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John
David Group |
Jun-07 |
254.49 |
381.74 |
38.17 |
572.25 |
Yes |
534.08 |
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Jacques
Vert |
Aug-07 |
18.00 |
27.00 |
2.70 |
26.50 |
No |
27.00 |
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Lookers |
Nov-07 |
167.72 |
251.58 |
25.16 |
218.00 |
No |
251.58 |
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Jan-08 |
273.73 |
410.60 |
41.06 |
285.50 |
No |
410.60 |
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Royal
Dutch Shell B |
Feb-08 |
1702.53 |
2553.80 |
255.38 |
1857.00 |
No |
2553.80 |
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ScS
Upholstery |
Feb-08 |
422.90 |
634.35 |
63.44 |
437.50 |