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Ÿ
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will be an expert in all investment matters and deliver
solutions to clients;
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Ÿ
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will aim to supply all clients' investment needs rather
than only those of H.S.B.C., can manage in-house;
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Ÿ
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will be market leaders in multi-manager, liquidity/money
market products, lifecycle funds and index tracking
funds.
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Ÿ
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will be responsible for all sales, service, marketing and
product management functions.
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Ÿ
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will focus exclusively on creating performance for
clients;
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Ÿ
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will have a distinct 'small company' culture;
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Ÿ
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will focus on doing fewer things very well;
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Ÿ
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Fund Manager incentives will be linked to their success in
doing this;
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Ÿ
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Autonomous investment teams will share investment research
resources;
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Ÿ
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will discontinue the management of active US and Japanese
equities and focus on those areas where market leadership can be
achieved.
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H.S.B.C., as part of its restructuring will focus on areas
where competitive advantage and are confident that they can create
value for clients. As a consequence, H.S.B.C. Alpha Business
will focus on world class capabilities in the U.K., and European
equities, fixed income, Asian equities and emerging markets
overall, complemented by some alternative strategies.
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It was reported that H.S.B.C., will continue to deal with
the funds of the Charitable Trust as usual until changes, which are
expected to be completed by end of May 2005. Part of the
Charitable Trust's portfolio is invested in Japanese equities using
active investment capability. Given the decision to focus in
the H.S.B.C. Alpha Business the company will not be offering active
management in this market. The role of the asset management
will also change to offer the best possible advice even if third
party products are more attractive.
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Whilst withdrawing for the Japanese equities, H.S.B.C.
representatives requested a decision from the Committee in respect
of short term measure to deal with the portfolio. It was
suggested that a 'multi-manager' option should be considered in the
long-term, whereby a team of dedicated analysts will monitor the
investment processes.
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Following deliberations it was RESOLVED to authorise the
Treasurer to negotiate further with H.S.B.C. Asset Management in
respect of the short-term measure to deal with the Japanese
equities.
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3.2
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Submitted - the H.S.B.C., Asset Management Quarterly
Report for the period 31
December, 2004. A presentation document was presented to the
meeting.
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The Asset Management representatives reported that the
fund underperformed over the fourth quarter. After gains in
October, the fund significantly underperformed in the final two
months of the year. For the year ending 31 December, 2004 the
portfolio showed a return of 9.2% against the benchmark return of
11.1%. The market value of the fund was
£12,272.004.
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Concerns were expressed again at this meeting that the
quarterly reports for the whole year have not shown good returns
for the Charitable Trust. The Asset Management
representatives responded that the weak performance in this quarter
was due to stock selection and this was largely due to Asian
equities. It was expected that the global economy would grow
in 2005.
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RESOLVED to note the contents of the
report.
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VICE-CHAIRMAN IN THE CHAIR
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