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4.1
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Land at Rhosgoch - Update
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The Treasurer noted that the Committee had resolved to
recommend to the full Charitable Trust that funding of up to
£20,000 be released towards the cost of a contamination study
of the land. He noted that he has not received a response
from WAG to correspondence, interest having apparently
diminished.
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The Treasurer noted that an update report on the above
item will be submitted to a future meeting of this
Committee.
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Submitted - the HSBC Global Asset Management (UK) Limited
Quarterly Report for the period up to 31 March, 2008. A
presentation document was presented to the meeting.
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The Investment Management reported that the portfolio
showed a return of -0.11% (-7.3%) above the benchmark of
-6.2%. The closing value of the fund on 31 March, 2008 was
£13,715,690. The value of the fund at present was
£13.5m. The agreed strategy is to add 1.5% p.a., above
the benchmark over rolling three year periods (wef 1/4/07 -
previously 1% p.a.).
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The Fund Managers reported that the financial markets are
very volatile at present and noted as follows the major market
influences :-
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Ÿ
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Credit crunch - banks reducing lending
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Consumer borrowing fears
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Government response ( US cutting interest rates and
taxes)
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Emerging market decoupling
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Valuations (equities cheap following market
falls)
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It was further reported that UK equities continued to
perform well, beating the benchmark by 1.8% over 6 months up to 31
March, 2008. However equities look low priced but are likely
to remain volatile in the short term. Asia and the emerging
markets are still preferred on a long term view. Gilts and
index linked bonds look expensive but the Investment Managers see
the value in corporate bonds.
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The Treasurer questioned the statement by HSBC Global
Asset Management (UK) Limited that equities were cheap as an
article he had read recently stated that a result of a survey of
Fund Managers concluded that they were most pessimistic for several
of years regarding the prospect of equities. He ascertain if
HSBC were not of the same opinion as other Fund Managers.
Ms. Langrish responded that people are very
cautious regarding the outlook of the economy and that the markets
will continue to remain volatile over the next few months but noted
that the downside of market is relatively limited because most of
the values has been discounted in share prices.
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RESOLVED to accept the report and to thank the
representatives from HSBC Global Asset Management (UK) Limited for
their presentation.
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