Meeting documents

1

ELECTION OF CHAIRPERSON

Mr. Gareth W. Roberts was elected Chairperson for this Sub-Committee.

The Chairperson thanked the Sub-Committee for their confidence in him.

2

APPOINTMENT OF VICE-CHAIRPERSON

Mr. Elwyn Schofield was appointed Vice-Chairperson for this Sub-Committee.

3

DECLARATION OF INTEREST

No declaration of interest were received by any Member or Officer in respect of any item on the Agenda.

4

MINUTES

The minutes of the meeting held on 9 May, 2002 were confirmed.

5

INVESTMENT MANAGEMENT

5.1

Submitted - the H.S.B.C. Asset Management Quarterly Report for the period up to 30 June, 2003.  A presentation document was presented to the meeting.

The Asset Management representatives noted that the investment objectives is to grow the capital in line with inflation and generate income sufficiently to meet the cash flow requirements agreed annually with the Trustees.  The agreed strategy is to add 1% p.a., above the benchmark over rolling 3 year periods.

For the quarter ending on 30 June, 2003 the portfolio showed a return of 13.0% against a benchmark return of 11.5%.  The market value of the fund was £10,980,494.

RESOLVED to accept the contents of the report.

5.2

Submitted - the following extract from the minutes of the Isle of Anglesey Charitable Trust at its meeting held on 31st July, 2003 :-

" A proposal was made that the money allocated for the regeneration schemes

" should be unfrozen as soon as it was financially feasible to do so.

"

" The Treasurer agreed he would present a report on the financial position at the

" meeting of the Panel scheduled to be held on 5th September, 2003 and that

" any recommendations made by the Panel could be submitted to the Charitable

" Trust for their consideration.

"

" He emphasised that the Trust's decision honour the financial commitment

" previously approved in respect of the three regeneration schemes.

"

" RESOLVED

"

" (i)      to confirm the minutes ;

"

" (ii)      that a report on the financial position be presented to the Panel in

"     September and a special meeting of the Charitable Trust be held to          

"     consider the Panel's recommendations."

Submitted - a report by the Treasurer in relation to the Trust's investment objective and earmarking capital for regeneration.

The Treasurer reported that the Trust's long-term objective, adopted at its inception, is to increase the capital in line with inflation.  Successive annual reports of the Trust have reported on the achievement of this target.

When the Charitable Trust on 10 July, 2001 agreed by the necessary two-thirds majority to earmark £1.8 million from past capital growth towards regeneration schemes, the value of the investment was £4.2 million above the long-term target.  So it was possible to earmark the £1.8 million from past capital growth with a significant sum left.

As in the annual report this comparison is made using the total capital value of the Trust, excluding land.  The long-term target, as at 31 March, 2003, would be £9.556 million.  Against this, even before taking account of the earmarking the value was £9.337 million (provisional figure) i.e. a shortfall of £0.199 million.  After earmarking £1.8 million the shortfall would be £1,999 million.  After 'freezing' £0.98 million, earmarking only the £0.82 million currently committed, the shortfall at 31 March, 2003 would be £1.019 million.

The stock markets have recovered slightly since 31 March and the portfolio valuation at 31 June, 2003 was £10.98 million, an increase of £1.1 million over 3 months.  This is just about sufficient to eliminate the shortfall against the long-term target while continuing the freezing of the £0.98 million. It is not sufficient to eliminate the shortfall if the sum is 'unfrozen'.  A graph was circulated outlining the capital value of the Charitable Trust over the years.

The Treasurer noted that what has happened to the stock market since 2001 is unprecedented and the outlook for the future is uncertain.  The Charitable Trust should not alter its stance in response to short-term movements which could easily be reversed.  As the Trust's decision was to spend money from past capital growth, that is simply not possible when the past capital growth (above the target) has gone.

Following lengthy discussions it was RESOLVED :-

5.2.1

to note the report.

5.2.2

that a meeting of the Strategy Review Panel be convened, following relevant information on the 3 regeneration schemes having been received

by the Treasurer.

5.2.3

that following 5.2.2 above, a further report be submitted to this   Sub-Committee before recommendations to the full Charitable Trust.

The Treasurer reported that Ms. Valerie Pike, Director, Institutional Investment has been appointed to a post within H.S.B.C., in respect of the Business Development for Charities.  The Members and Officers of this Sub-Committee thanked Ms. Pike for her work to the Charitable Trust over the years.

6

LAND AT RHOSGOCH

Submitted - a report by the Treasurer in respect of enquiries about the land at Dwygir, Rhosgoch.

The Treasurer reported that in order to clarify the Trust's stance towards enquires for the land at Rhosgoch, and to ensure even-handed treatment of enquirers, it may be helpful to adopt a 'position statement' to be given to potential enquiries.  He reported that the number of enquiries appeared to have increased, and he had arranged to meet one company in the near future.

The Treasurer further reported that enquiries have been received regarding temporary amenity uses of the land.  Providing the Trust's interests are wholly safeguarded, there should be no objection to making the land available to bodies in a way which is consistent with the Trust's objectives.

Members expressed concern regarding the sums paid to the Surveyors who advised on the sale of the land.

Following discussions it was RESOLVED :-

6.1

that the brochure prepared by the Surveyors be updated and be submitted to the next meeting of this Sub-Committee for perusal.

6.2

to request the Treasurer to prepare a report for the next meeting of this Sub-Committee on the amount of monies involved in trying to sell the land at Dwygir, Rhosgoch.

6.3

that a report be submitted to this Sub-Committee on amenity use of the land at Rhosgoch.

6.4

that arrangements be made for the Chairman and Vice-Chairman to meet with the company who has recently enquired about the site.

7

PROPOSED WASTE WATER TREATMENT WORKS AT AMWLCH PORT

The Treasurer gave an up-date report on the proposed waste water treatment works at Amlwch Port on land adjoining the Trust's land.  The landscaping associated with the proposed works would extend onto the Trust's land which would see an improvement to the area.

He noted that he has received a request by Dwr Cymru for access to the site through the Trust land.  However, it was noted that the Trust wished to continue the sporadic use by vehicles onto the highest area of the site which is used for parking to observe passing shipping, fishing and wildlife etc.    A gate was suggested to be locked one day per year to legally prevent continuous access and the ensuing right of access which would prevent parking of vehicles on a regular basis.

Following this request by Dwr Cymru recently, heavy plant would be using the access on a regular basis.

RESOLVED to authorise the officers of the Trust to negotiate with Dwr Cymru and report back to this Sub-Committee.

G.W. ROBERTS

CHAIRPERSON