Our Unit Value performance compared with FTSE100

Report for November 2007

November was another month of considerable turbulence on the LSE (due to the fallout from the "credit crunch") which has not yet finished. The FTSE100 on November 30 was down 5% at 6349 and our Unit Value was down 7% at 109.7. Our portfolio is now worth just less than £17,000 with 18,560 units issued, and the total value of our assets is £20,355.

Only three of our holdings grew in value, with Biffa (23% up) leading the way after a bid approach from private equity, and Severn Trent rising 7%. The rest were in serious decline and even our China Unit Trust lost 10% of its value last month, but is already climbing again. WPP fell 7% this month and is 15% below its AGM value: keep an eye on this stock.

Speedy Hire, flagged last month as struggling, dropped a further 20% and is 28% below its AGM value. Normally we would cut our losses and sell Speedy Hire.

Report for October 2007

The month ended on a high note after considerable turbulence (due to the fallout from the "credit crunch") which has continued into November. The FTSE100 on October 30 was up 3% at 6706 and our Unit Value was up 4% at 117.4.

All our holdings except two grew in value, with Biffa (12% up) leading the way, and BHP Billiton and Tesco not far behind (at 7 and 6% gains). Speedy Hire recovered a little but is still 10% below its AGM value. WPP was one of the two fallers this month and is now 9% below its value at the AGM: we should keep an eye on both these stocks.

One member has repaid £100 of his original loan, and hopes to repay the rest in December on the sale of a pair of very attractive flats in a Welsh border town. Note that subscriptions credited for the last two months are now equal at £50 per member per month.

Did anyone spot this one?

OneSource Services received a takeover bid from a US company (ABM Industries). The majority shareholder in OSS is Lord Ashcroft, deputy chariman of the Conservative Party. OSS is based in Belize.

Something fishy here?

One day, Island Oil and Gas will be taken over like this! Perhaps??!

Report for September 2007

Despite last month's liquidity crisis involving Northern Rock, the stock market has recovered and the FTSE100 gained 6% in September.

Our portfolio gained 3%, thanks to spectacular rises in BHP Billiton and China Growth (both fuelled by the burgeoning economy of China and its consumption of precious metals in industry). On the other hand, several stocks slipped a few percentage points, notably Biffa and WPP. We ought to keep an eye on Speedy Hire which has slipped 10% since our AGM in August.

One member has taken out a further loan on the strength of our sales of Experian, BP and BSkyB agreed at the AGM. When that loan is repaid with interest, we will invest the funds back into the market (probably with Mission Marketing).

Our Unit Value has risen 5% to 113.28.

The postal strike means that we have received no record of dividends paid this month.

Report for August 2007

August saw a month of turmoil on the stock-market, during which the FTSE100 fell 7% though our portfolio fell only 2% in value. Severn Trent, Reuters and Tesco each rose and Island Oil & Gas held its value. However, the rest of our shares followed Speedy Hire downwards, and even our best overall performer (China Growth) fell back 2%.

We sold our holding in BSkyB, limiting our loss to £34. The sale of our shares in BP and Experian is pending.

After the AGM we have paid out £588 in dividends and made a grant of £2000. This has reduced our cash holding substantially, and the Unit Value has therefore fallen back to 107.35 (14% lower).

Minutes of the 2007 AGM

Minutes of the 9th Annual General Meeting held on 15 August 2007 in St John's Grove, Beeston, Nottingham


1. All members were present.

2. The minutes of the 2006 AGM held on August 11 2006 had been circulated and were taken as read. There were no matters arising except to note that the final sum raised for Dilla Clinic was £1700, of which £1500 had been sent to Ethiopia.

3. Re-appointment of officers for 2007-08:
a. Chairman: Daniel
b. Treasurer/secretary: John

4. Financial report for the year from 1 August 2006 to 31 July 2007
a The Assets Statement (with graphs, filed) showed a portfolio value of £19,354, a 6% rise over the year. New investment during the year had been made in First State China Growth Unit Trust, BP and Experian; Biffa had been spun off from Severn Trent. African Platinum had been taken over at a profit to us of £2440. Our other speculative stock, Island Oil and Gas, had struck gas in the Celtic Sea but their shares had disappointed. No sales had been made. We hold £2,379 in cash, i.e. 9% of our funds. The Unit Value is 124.72, i.e. 25 % above par and another 10% up from a year ago. Our total assets are worth £21,732, a decrease of 3% over the year because of a member’s withdrawal of funds, representing a capital gain (after adjustment for subscriptions and withdrawals) of £4,875 (29%).

b Unit Valuation Report (on file). All members except one are showing profits (maximum £1,131) overall.

c Dealings Account for the year (on file):
(i) income: Subscription income for 12 months was £4,020; dividends amounted to £425, and interest £259 (total £588).
(ii) expenditure: We had invested £4,236 in stock, made a £500 grant to a member for career development, and spent £161 on the annual dinner and outing at Barrow–on-Soar. We spent £88 on web-hosting for www.patrickfamily.org.uk
(iii) loans: We had made loans totaling £900 to two members, £400 of which is outstanding.
(iv) withdrawals: One member had withdrawn £6850 of his stake.


5. Proposals

a. Declaration of dividend. It was agreed (a) to declare a dividend equivalent to the sum of the interest and dividends received, totalling £588, and (b) to split it between members in proportion to their share-holding on June 30 2007. It was agreed to base future calculations on the average proportional share-holding over the twelve months.

b. Subscriptions for 2007-08. No change, each member paying at least £50 per calendar month. One member was excused subscriptions for 12 months, but these would be covered by the excess subscription (over £50) paid by other members.

c. It was agreed to make an immediate grant of £2000 to one member.

d. Investments agreed:
Sales: it was agreed to sell our holdings in BP, Experian, and BSkyB, the three companies with the poorest overall gain to release funds and simplify the portfolio.
Loan: £2000 loan to LorneStreetBakery.com [Daniel] in the autumn
Purchases:
• £1000 in Mission Marketing [David] when the loan was repaid
• £500 each in F&C Multi-manager Growth Unit Trust and in First State China Growth Unit Trust from the proceeds of Reuters take-over.

6. Charitable activities: none this year as three members were still working for Chilwell Road Methodist Church’s efforts for the Dilla Clinic in Ethiopia.

7. AGM in 2008
It was agreed to mark the tenth anniversary of the Club’s founding with an event perhaps at Tyn-y-Waen and [from 2006 AGM] a professional portrait photograph.

8. Amendments to Constitution and Rules: none had been proposed

9. There was no other business, and the family set off for Elvaston Castle for a rainy picnic.

How the value of our investment portfolio has changed