Meeting:

Monthly Meeting - June 2007

 

Held at:

The Brocklebank, Crewe

Date:

21st June 2007

 

 

Time:

17:15 – 19:15

Prepared by

Dave G

 

Chairperson:

Adrian T

 

Present:

Adrian T

Chris B

Dave G

Kit P

Richard W

Simon B

 

 

 

 

 

Apologies:

None

 

 

Chairman’s Acceptance of Minutes

 


_____________________________________________


____ / _____ / ____

Signature

Date

 

 

 

1           NEXT MEETING

Proposed dates for future meetings are:-

Thu Jul 19 (AGM)

Thu Aug 16

Thu Sep 20

Thu Oct 18

Thu Nov 15

Thu Dec 20.

 

Simon to book the venue for the AGM.

2           Minutes of previous meeting

The minutes from the May monthly meeting and the EGM that followed it were accepted.

3           ACTIONS FROM PREVIOUS MEETING

3.1          Actions Closed Since Last Meeting

Ref.

Description & Progress

Status

CB/0215/05

Open an account with SelfTrade to allow us to trade in overseas shares

0315: RichardW & SimonB have provided necessary information. KitP, AdrianT and DaveG believed outstanding.

0419: Still require id documents from Kit and signature but everything else is now ready

0517: Kit provided documentation at the meeting so Chris just now needs to submit the application

COMPLETE

ALL/0215/06

Once SelfTrade account is set up, all to vote as to whether we’re still happy to progress the purchase of Wipro

0315: Dependant on CB/0215/05

0429: As above

0517: As above as we don’t yet have a SelfTrade account

0621: See “Buy Proposals” section of these minutes

COMPLETE

CB/0419/02

Close the BOS current account but leave the deposit account open

0517: Need to transfer the deposit account across but leave at least £1 in BOS account

0621: The accounts were linked so both had to be closed

DROPPED

CB/0517/01

Set up a direct debit between the Barclays stockbroker account and our new Abbey current account

COMPLETE

RW/0517/02

Progress mechanical transactions of selling Laura Ashley and an appropriate portion of Character Group, and purchasing M&C Saatchi

COMPLETE

RW/0517/03

Buy up to £4000 of Alliance Trust

COMPLETE

CB/0517/04

Change the conditional formatting in the Treasurers Report from green/red highlights to bold text

COMPLETE

3.2          Actions Carried forward to Next Meeting                         

See end of these minutes.

4           Treasurer’s Report

4.1          Monthly Report Summary

See separate report for detail. 

Highlights/Lowlights:  A disappointing month, down £830 (1.2%) against FTSE rise of 2.5%.  Unit value has moved down from 903.731 to 896.428.

We have £3.4k available as non-mechanical cash with an additional £13.7k in cash alternative investment trusts. 

Overall club assets stand at £77,791 with profits of £40,172. 

4.2          Matters Arising From Report

None.

5           PORTFOlio Management

5.1          Monthly Money Management Checks

As usual, the Fundamental portfolio is still showing as “too low” with 10.6% 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.

Additionally, the purchase of the additional Alliance Trust shares last month has now pushed that above its strategic limit (12.2% v 10%) though this was acknowledged at the time of deciding to buy.

5.2          Mechanical Portfolio

This was our first bad month for quite some while – the portfolio dropped by 3% against a rise in the market as a whole of 2%.

The main movers were Royal Dutch Shell (+14%), Oxford Instruments (+11%), Cable & Wireless (+8%), Lookers (-8%), Jacques Vert (-16%), Character (-18%) and SCS Upholstery (-24%).

This month Cable & Wireless and John David Group, both from the value side of the portfolio, reach their anniversaries. Both have reached their 50% profit target during the year but John David Group has since fallen back below its stop loss level and will therefore be sold.

John David Group will be replaced by the clothing retailer, Alexon Group.  Richard to progress the transactions.

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

Metnor Group

Nov-06

219.83

329.75

32.97

445.00

Yes

412.03

Cable & Wireless

Jun-07

110.39

165.59

16.56

201.50

Yes

184.94

John David Group

Jun-07

254.49

381.74

38.17

602.50

Yes

564.33

Jacques Vert

Aug-07

18.00

27.00

2.70

26.50

No

27.00

Lookers

Nov-07

167.72

251.58

25.16

219.75

No

251.58

Oxford Instruments

Jan-08

273.73

410.60