Meeting:

Monthly Meeting & AGM - July 2007

 

Held at:

Square One then Golden Pacific, Crewe

Date:

20th July 2007

 

 

Time:

17:10 – 20:00

Prepared by

Dave G

 

Chairperson:

Adrian T

 

Present:

Adrian T

Chris B

Dave G

Kit P

Simon B

 

 

Apologies:

Richard W

 

 

Chairman’s Acceptance of Minutes

 


_____________________________________________


____ / _____ / ____

Signature

Date

 

 

 

1           NEXT MEETING

Due to a couple of the members being on leave in the middle of August, it was agreed that the date for the August meeting should be put back to 29th August.

Proposed dates for future meetings are:-

Wed Aug 29

Thu Sep 20

Thu Oct 18

Thu Nov 15

Thu Dec 20.

2           Minutes of previous meeting

The minutes from the June 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

KP/0726/01

Provide a Chairman’s Report for the year to June 2006

0831: No Progress

0920: No Progress

1018: No progress

1113: No progress

1213: No progress

0116: No progress

0215: No progress

0315: No progress

0419: No progress

0517: No progress

0621: No progress

0720: Dropped as the next year’s Chairman’s Report is now due

DROPPED

RW/0621/01

Sell John David and buy Alexon for the mechanical portfolio

COMPLETE

CB/0621/02

Revise the Treasurer’s report to move Ascribe into the Fundamental portfolio

DROPPED

RW/0621/03

Buy £3500 of Tesco

COMPLETE

CB/0621/04

On completion of RW/0621/03, buy £3500 Wipro

COMPLETE

3.2          Actions Carried forward to Next Meeting                         

See end of these minutes.

4           Chairman’s Report

Not done.  Adrian to provide one for the next meeting.

5           Treasurer’s Report

5.1          Monthly Report Summary

See separate report for detail. 

Highlights/Lowlights:  Another poor month, with holdings down £2667 (-3.6%) against FTSE fall of -1.2%.  Unit value has moved down from 896.428 to 867.359.

We have no non-mechanical cash available (indeed, we had to ‘borrow’ £233 from the mechanical cash to fund last month’s purchases) but we have £13.5k in cash alternative investment trusts. 

Overall club assets stand at £76,144 with profits of £37,649. 

5.2          Matters Arising From Report

None.

5.3          Annual Report

Chris had distributed the Annual Accounts ahead of the meeting in the new format which was well received.

It had been another good year with net assets up approximately £21.7k against subscriptions of only £8.6k.   During the year, the unit value had risen from 707.898 to 869.729, a rise of 22.8% against a FTSE rise of 18% in the year.

5.4          Auditor’s Report

The audit of the accounts had not yet been completed.  Richard to complete.

6           PORTFOlio Management

6.1          Monthly Money Management Checks

Despite the purchases last month, the Fundamental portfolio is still showing as “too low” with 18.4% held in this portfolio against strategic minimum of 25%.

Whilst the problem of the Fundamental portfolio being concentrated in too few stocks had been resolved, it was now dominated by the Software sector with that now representing 56% of the Fundamental portfolio against a strategic sector limit of 50%.

Alliance Trust is still above the strategic limit for any single temporary investment vehicle (12% v 10%) though this was acknowledged at the time of deciding to buy.

6.2          Mechanical Portfolio

It was another poor month with the portfolio dropping by 3.3%.

The main movers were Character (+10%), Jacques Vert (+6%), Alexon (-5%), Oxford Instruments (-8%), Lookers (-11%) and Taylor Wimpey (-22%)

The next scheduled sale will not be until September when Jacques Vert reaches its anniversary. We therefore have a quiet couple of months unless either Metnor or Cable & Wireless breach their stop losses.   For the first time in months, a company, Persimmon, passes the unrelaxed value filters and with Cable and Wireless only 1p above its stop loss, if Cable and Wireless falls on close then Persimmon will be purchased.

Wimpey merged with Taylor Woodrow during the month to form Taylor Wimpey. Our 502 shares in Wimpey have now become 698 shares in Taylor Wimpey. The purchase price and stop loss figures in the table below have been adjusted to take into account this change.

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

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

41.06

309.00

No

410.60

Royal Dutch Shell B

Feb-08

1702.53

2553.80

255.38

2167.00

No

2553.80

ScS Upholstery

Feb-08

422.90

634.35

63.44

437.50

No

634.35