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, 12th September, 2006

INVESTMENTS AND CONTRACTS COMMITTEE

 

Minutes of the meeting held on 12 September, 2006.  

 

PRESENT:

 

Mr. John Roberts - In the Chair

 

Messrs. E.G. Davies, H. Eifion Jones, J. Arthur Jones,

Bob Parry OBE.

 

H.S.B.C. Investments (UK)

 

Ms. Jenine Langrish - Director, Institutional Investment,

Ms. Allison Bell - Client Associate

 

 

 

IN ATTENDANCE:

 

Treasurer,

Committee Officer (MEH).

 

 

 

APOLOGIES:

 

Messrs. Aled M. Jones, G.W. Roberts OBE, Elwyn Schofield.

 

Mr. G.O. Parry MBE - Chairman of the Isle of Anglesey Charitable Trust.

 

 

ITEMS TAKEN IN PUBLIC

 

In the absence of the Chairman and Vice-Chairman of the Investments and Contracts Committee, Mr. John Roberts was elected Chairman for this Committee.

 

The Chairman noted that the Vice-Chairman, Mr. E. Schofield was in hospital and it was agreed that a letter be sent to Mr. Schofield expressing the Committee's best wishes for a speedy recovery.

 

1

DECLARATION OF INTEREST

 

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

 

2

MINUTES

 

The minutes of the meeting held on 18 May, 2006 were confirmed.

 

3

INVESTMENT MANAGEMENT

 

Submitted - the HSBC Investments (UK) Limited Quarterly Report for the period up to 30 June, 2006.  A presentation document was presented to the meeting.

 

Due to the sensitivity of information to be given by the HSBC Investments (UK) representatives it was AGREED that the following matter should be dealt with in private.  

 

Ms. Jenine Langrish - Director, Institutional Investment reported that HSBC Investments have decided to make changes due to recent poor performance in UK Equities.  It was reported that two companies was set up in January, 2005 i.e. HSBC Investments and HSBC Halbis.

HSBC Investments have decided to move most of the pooled UK equity accounts within its control away from Halbis, with an announcement due to be made very shortly to disband the UK equities team within Halbis.  
 

 
 

It was noted that the Charitable Trust must make a decision in respect of options available i.e. remain with Halbis, Indexation, Enhanced indexation, Multi-Manger or a combination of these options.  Further details of these options were supplied.
 

 
 

The Treasurer observed that each of these options appeared to move away from the overall approach which the Charitable Trust had required from the investment managers.  The Committee considered that Barnett Waddingham LLP, as the Charitable Trust's Independent Investment Advisors, it was well placed to take their advice on the options suggested by HSBC Investments and other options.
 

 
 

Following discussions it was RESOLVED :-
 

 
 

3.1

that arrangements be made for Barnett Waddingham LLP to meet with representatives from HSBC Investments to seek further information on the position and the options available.
 

 
 

3.2

that arrangements be made to convene a special meeting of the Investments and Contracts Committee following 3.1 above to give further consideration to the proposals from HSBC Investments and the advice of the Advisors.  
 

 
 

 
 

ITEM TAKEN IN PUBLIC
 

 
 

 
 

The Investment Management reported that for the year ending June 2006 the portfolio showed a return of 14.5% against the benchmark return of 16.1%.  The market value of the fund was £14,096,768.  It was reported that the performance for quarter 2 had again been disappointing and that UK Equities remain the problem area.
 

 
 

It was further noted that Bond yields have risen in 2006 but Bond returns are unlikely to exceed  cash returns over the next twelve months.
 

 
 

RESOLVED to accept the report.
 

 
 

MR. JOHN ROBERTS
 

IN THE CHAIR