Investment Policy & Club Guidelines
Revised January 2024
1. New Members Procedure
a) Come to a meeting as a prospective member to see if they like us and we like them.
b) Come to a second meeting to be proposed and accepted as a new member and be given the new member pack to sign and bring along ID etc.
c) A member’s failure to attend 3 consecutive meetings would automatically be deemed to be a sleeping member.
2. Investment Policy
a) Investments shall generally be made in blocks of £2500, but when there are sufficient funds members may suggest a higher investment which must be agreed by the majority members present.
b) The club is not bound to make purchases or sales at any meeting.
c) There will be no upper or lower limit on share prices to be discussed or purchased.
d) The club to have no more than 30% of its portfolio value in Alternative Investment Market at any one time. If the value of AIM-listed shares rises above 30% of total portfolio no further AIM-listed shares should be considered for purchase until such time as the value of AIM-listed shares drops below 30% of total portfolio.
e) The Club will invest its assets in a combination of stocks and shares, listed on either the Main Market or the Alternative Investment Market of the London Stock Exchange, and any cash held in a Bank Account.
3. Nomination of Shares
a) Members can only nominate shares for purchase if attending a meeting
b) Any member wishing to nominate a share for consideration shall present some reasoning to support his nomination.
c) Any member may nominate a maximum of two shares at any single meeting.
d) If possible give information prior to the meeting using the clubs web site mailing list.
4. Sale of Shares / Stop Loss Policy
a) Members will be alerted when a share held by the club falls by 20% from the purchase price. As soon as members receive the minus 20% alert they are requested to check the reason for the fall and vote on whether to sell now in order to stop further losses or keep the share for the time being, giving the share a chance to recover. The club will then sell or retain the share based upon the outcome of this vote. If voted to keep a 25% Stop Loss will be set.
b) When a share price increases by 15% from the purchase price it will be sold.
c) In all other circumstances a member nominating a shareholding for sale should present some reasoning behind the argument. Any decision to sell the shareholding immediately following the meeting i.e. the next day shall require the agreement of members.
5. Proxy Votes
Members can only vote on club matters by proxy if they know in advance what is been nominated or proposed, this to be confirmed in writing and submitted to the club.
6. Purchase and use of Periodicals, Newspapers, & Computer related products
The purchase and use of periodicals, newspapers, and other media to be used for investigative and research purposes by the club, shall have the agreement of members. The question of whether the cost shall be provided personally by members or by the club shall require the agreement of members in a vote
1. New Members Procedure
a) Come to a meeting as a prospective member to see if they like us and we like them.
b) Come to a second meeting to be proposed and accepted as a new member and be given the new member pack to sign and bring along ID etc.
c) A member’s failure to attend 3 consecutive meetings would automatically be deemed to be a sleeping member.
2. Investment Policy
a) Investments shall generally be made in blocks of £2500, but when there are sufficient funds members may suggest a higher investment which must be agreed by the majority members present.
b) The club is not bound to make purchases or sales at any meeting.
c) There will be no upper or lower limit on share prices to be discussed or purchased.
d) The club to have no more than 30% of its portfolio value in Alternative Investment Market at any one time. If the value of AIM-listed shares rises above 30% of total portfolio no further AIM-listed shares should be considered for purchase until such time as the value of AIM-listed shares drops below 30% of total portfolio.
e) The Club will invest its assets in a combination of stocks and shares, listed on either the Main Market or the Alternative Investment Market of the London Stock Exchange, and any cash held in a Bank Account.
3. Nomination of Shares
a) Members can only nominate shares for purchase if attending a meeting
b) Any member wishing to nominate a share for consideration shall present some reasoning to support his nomination.
c) Any member may nominate a maximum of two shares at any single meeting.
d) If possible give information prior to the meeting using the clubs web site mailing list.
4. Sale of Shares / Stop Loss Policy
a) Members will be alerted when a share held by the club falls by 20% from the purchase price. As soon as members receive the minus 20% alert they are requested to check the reason for the fall and vote on whether to sell now in order to stop further losses or keep the share for the time being, giving the share a chance to recover. The club will then sell or retain the share based upon the outcome of this vote. If voted to keep a 25% Stop Loss will be set.
b) When a share price increases by 15% from the purchase price it will be sold.
c) In all other circumstances a member nominating a shareholding for sale should present some reasoning behind the argument. Any decision to sell the shareholding immediately following the meeting i.e. the next day shall require the agreement of members.
5. Proxy Votes
Members can only vote on club matters by proxy if they know in advance what is been nominated or proposed, this to be confirmed in writing and submitted to the club.
6. Purchase and use of Periodicals, Newspapers, & Computer related products
The purchase and use of periodicals, newspapers, and other media to be used for investigative and research purposes by the club, shall have the agreement of members. The question of whether the cost shall be provided personally by members or by the club shall require the agreement of members in a vote
Voting on nominated shares by ballot
Each member present to have up to a maximum of 3 voting points for each nominated share. Members score each nominated share, awarding it between 0 and 3 voting points. Nominated shares will only be purchased if they achieve over 50% of the maximum available points to members present at the meeting. Nominated shares receiving less than 50% will not be purchased.
· For example. with 6 members present:
o maximum points available is: 6 members x 3 voting points per share = 18 maximum points per share.
o over 50% of 18 points required to purchase = more than 9 points, i.e. 10 points or higher.
Determine how many shares the club can afford to buy and how much to spend per share.
a) The treasurer informs the club of available funds to purchase shares.
b) This determines how many shares can be purchased in blocks of £2500.
c) Votes are collected from members present on which nominated shares (if any) to purchase that month.
d) Where there are insufficient funds to purchase all shares receiving more than 50% of the maximum available voting points then shares receiving highest number of voting points will be purchased. Remaining nominated shares will not be purchased.
· For example. with 6 members present:
o maximum points available is: 6 members x 3 voting points per share = 18 maximum points per share.
o over 50% of 18 points required to purchase = more than 9 points, i.e. 10 points or higher.
Determine how many shares the club can afford to buy and how much to spend per share.
a) The treasurer informs the club of available funds to purchase shares.
b) This determines how many shares can be purchased in blocks of £2500.
c) Votes are collected from members present on which nominated shares (if any) to purchase that month.
d) Where there are insufficient funds to purchase all shares receiving more than 50% of the maximum available voting points then shares receiving highest number of voting points will be purchased. Remaining nominated shares will not be purchased.