Investment Policy & Club Guidelines
1. Investment Policy
a) Investments shall be made in amounts of a minimum of £500 but
when there are sufficient funds a minimum of £1000, by agreement
of members, in order to reduce the impact of dealing costs.
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 20% of its portfolio value in Alternative
Investment Market at any one time.
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.
2. 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 using the club form.
c) If possible give information prior to the meeting using the clubs web
site mailing list.
d) Each share in the club portfolio at any one time shall have a nominated
monitor to watch progress and report. There shall be no binding obligation
or responsibility placed upon any member undertaking this role.
e) Members responsible for monitoring the stock to set target high/low-selling
prices for each of our stocks. This to be reviewed and adjusted at each
meeting.
f) Purchase of any nominated shares to be decided by a simple majority.
3. Sale of Shares
a) The club to consolidate its gains by selling 50% of its holding when
the share price has increased by 50%.
The member who adopted the share to monitor its progress and notify the
executioner, chairman and
treasurer if the sell price has been reached.
The executioner has the authority to sell shares when the sell price has
been reached.
b) The executioner to sell a share on the first profit warning.
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.
4. Stop Loss Policy
If shares should decrease in value by 30% then that share should be
discussed at the next meeting.
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 to have up to a maximum of 3 points.
Shares nominated can only be purchased if they achieve over 50% of the
maximum available points to members present at the meeting.
- eg 6 members present
- maximum points available 6 x 3 = 18 points
- over 50% required to purchase = 10 points
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) Determine how many shares can be purchased in blocks of £500.
c) Vote on which nominated shares to purchase that month (if any).
d) Based on funds available and member recommendation a vote to be carried
out if
buying more than £500 worth of shares.
e) Where there are insufficient funds to satisfy all members’ recommendations
of more
than the clubs standard block of £500 members to vote on which share
the club will
commit extra money.
1 When the club has sufficient funds to purchase all the nominated shares
a) The nominated shares are voted on individually where members can allocate
up to a
maximum of 3 points.
b) Nominated shares achieving the required over 50% to be automatically
purchased.
c) If no share achieves the required over 50% no purchase to be made
that month.
2 When the club has sufficient funds to buy only 1 share but has more
then 1
share nominated a knock out voting procedure to be applied
a) Nominated shares to be listed where members can allocate up to 3
points for 1
share or split the points amongst all the nominated shares ensuring the
overall
total does not exceed the 3 available points to each member.
b) The share that receives the most points to enter a second and final
ballot.
c) The nominated share is voted on individually where members can allocate
up to a
maximum of 3 points.
d) If the share achieves the required over 50% to be automatically purchased
e) If no share reaches the required over 50% no purchase to be made that
month.
3 When the club has sufficient funds to buy 2 shares but has more then
2 shares
nominated a knock out voting procedure to be applied.
a) Nominated shares to be listed where members can allocate up to 3 points
for 1
share or split the points amongst all the nominated shares ensuring the
overall
total does not exceed the 3 available points to each member.
b) The 2 shares that receive the most points to enter a second and final
ballot
c) The 2 nominated shares are voted on individually where members can
allocate up to
a maximum of 3 points for each share.
d) If either share achieves the required over 50% to be automatically
purchased.
e) If no share reaches the required over 50% no purchase to be made that
month.
4 When the club has sufficient funds to buy 3 shares but has more than
3 shares
nominated a knock out voting procedure to be applied.
a) As 3 above substituting 2 with 3 etc.
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