Meeting documents

Investments and Contracts Committee – the charity funds are now administered by the private registered charity, Y Gymdeithas, and the County Council is no longer the trustee
Tuesday, 7th February, 2006

INVESTMENT AND CONTRACTS COMMITTEE

 

Minutes of the meeting held on 7 February, 2006.  

 

PRESENT:

 

Mr. J. Arthur Jones - In the Chair

 

Messrs. Bob Parry O.B.E., John Roberts.

 

H.S.B.C. Investments (U.K.)

Ms. Jenine Langrish - Director, Institutional Investment

Ms. Coral Martin - U.K. Equity Fund Manager,

Ms. Allison Bell - Client Associate

 

 

 

IN ATTENDANCE:

 

Treasurer,

Committee Officer (MEH).

 

 

 

APOLOGIES:

 

Messrs. E.G. Davies, H. Eifion Jones, G.W. Roberts O.B.E., Elwyn Schofield.

 

 

 

ALSO PRESENT:

 

Mr. G.O. Parry M.B.E. - Chairman of the Isle of Anglesey Charitable Trust,

Mr. Hefin W. Thomas - Vice-Chairman of the Isle of Anglesey Charitable Trust.

 

ITEMS TAKEN IN PUBLIC

 

In the absence of the Chairman and Vice-Chairman of the Investment and Contracts Committee, Mr. J.A. Jones was elected Chairman for this Committee.

 

1

DECLARATION OF INTEREST

 

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

 

2

MINUTES

 

The minutes of the following meetings were submitted and confirmed :-

 

2.1

Minutes of the meeting held on 25 November, 2005.

 

2.2

Minutes of the special meeting held on 1 December, 2005.

 

3

INVESTMENT MANAGEMENT

 
 

Submitted - the H.S.B.C., Investment (U.K.) Limited Quarterly Report for the period up to 31 December, 2005.  A presentation document was presented to the meeting.
 

 
 

The Investment Management representatives reported that the fund grow capital in line with inflation and generated income sufficient to meet the cash flow requirements agreed annually with the trustees.  For the year ending 31 December, 2005 the portfolio showed a return of 20.6% against the benchmark return of 20.4%.  The market value of the fund on the 3rd February, 2006 was £14.4m.  It was reported that since the last quarter H.S.B.C., have reduced the overweight position in Asia ex Japan equities.
 

 
 

It was reported that the UK Equity strategy was :-
 

 
 

Ÿ

Overweight in large cap stocks (BP, Royal Bank of Scotland, Glax)
 

 
 

Ÿ

Growth stocks expected to outperform (Reed Elsevier, Johnson Matthey, Reuters, 3i, Arm Holdings, BAE Systems, Hays)
 

 
 

Ÿ

International exposure favoured over domestic UK exposure (Johnson Matthey, Wolseley, Pearson, Inchcape, Glaxo)
 

 
 

Ÿ

Corporate activity, business restructuring and cash returns to shareholders remain key drivers (Daily Mail, BBA, Pearson, GUS)
 

 
 

Ÿ

Underperformance expected from Consumer Staples and bond 'proxies' (no holdings in Imperial Tobacco, Unilever, Cadburys, Diageo, Land Securities)
 

 
 

It was further noted that the economic growth is expected to continue in 2006.  After a strong 2005 equities look fair value but bonds look expensive.
 

 
 

The Treasurer queried if the Trust still had Wolseley share as the quarterly report received in advance of the meeting reported these had been sold.    The Investment Management representative responded that they would report back regarding this issue.
 

 
 

The Treasurer asked whether, in view of changes affecting fixed interest stocks,  consideration should be given to reviewing the benchmark of the Charitable Trust investments.  The Investment Management representatives noted that they would prepare investment options for consideration by the Charitable Trust.
 

 
 

RESOLVED to accept the H.S.B.C., Investments (UK) Limited report for the fourth quarter period to 31 December, 2005, and to thank the H.S.B.C. Investment (UK) representatives for the information.
 

 
 

ITEM TAKEN IN PRIVATE
 

 
 

4

LAND AT RHOSGOCH
 

 
 

The Treasurer updated the Committee, in the absence of the Senior Valuation Officer, following the instruction given at this Committee meeting held on 1 December, 2005 that further enquiries and negotiations were made with the three preferred bidders for the land at Rhosgoch, to confirm outstanding matters in their proposals.
 

 
 

It was reported that a Confidentiality Agreement put forward by one bidder must be considered in detail before any decisions can be taken.  It was further reported that the advice from the District Valuer is that an external planning consultant should be appointed to consider and advise the Trust on the deliverability of the preferred bidders.
 

 
 

RESOLVED to note the report.
 

 
 

 
 

J. ARTHUR JONES
 

IN THE CHAIR