Report for August 2011

In August the FTSE100 fell 8%: a serious fall for all UK investors. Everything in our portfolio fell in value except Severn Trent, and the European and US funds did uniformly poorly. On the other hand, the corporate bonds and bond funds were again a stabilising element.  We made a paper loss on our portfolio of just over £1000 this month and the Club's Unit Value fell 7%.

Report for July 2011

July was a bad month with considerable uncertainty in international markets over the stability of both the euro and the US dollar. The FTSE100 fell 2% (mostly in the final days of the month) and our portfolio value fell 2% to £20,903. Note that this fall was widespread across shares and funds but was partly offset by modest gains in the F&C Corporate Bond holdings which are there to provide stability (like the cash holding).

The Unit Value fell 4% as a consequence not only of the general market decline but also the paying out of 3% of our portfolio value as dividends. 

Report for June 2011

The FTSE100 fell considerably in mid-month but recovered almost to its previous month's value by yesterday. The Unit Value also remains the same at 136.5 and the portfolio is valued at £21,355.

Tesco fell 4% during the month reversing last month's gain, and Severn Trent slipped 2%. The funds, on the other hand, largely held up and our China holding continued to give good value, being 22% up over 12 months. If only bank deposits did the same!

Report for May 2011

May was a cautious month on the stock market and the FTSE100 has been wobbling just below 6000, ending 1% lower. However, our portfolio held steady and so did the Unit Value which continues the steady progress shown over the last 2 years. Our only noticably good performer was Tesco, up 4%. 

The switch-over to funds seems to have reduced the volatility in our portfolio very well.  The 12-month Unit Value gain of 9.3% is more than satisfactory.

Report for April 2011

April was another solid month with the FTSE100, our portfolio and our Unit Value rising 2%. 

Our two American funds disappointed and our Dixons corporate bond showed a sudden fall at the start of the month.

However, the two European funds rose by around 8% and Tesco and Severn Trent both gained more than 5%. We have nearly £4,500 in cash ready for investment.

God or Mammon: the Church Commissioners

“Master, you entrusted five talents to me; see, I have gained five more talents”.  “Well done, good and faithful servant”. Matt 25: 20-21.

Last week the Church Commissioners published the report on their investment portfolio for 2010.   Their funds grew from £4.8 billion to £5.3 billion, an increase of 15.2%.  The Church of England were no doubt following in the footsteps of the good servant in Jesus’ parable of the talents, but we Methodists might just wonder whether “following Mammon” would be a better description of their investment strategy.  The Methodist church deposits our spare cash with the Central Finance Board at a few per cent interest.

But then again, how should we judge whether that 15.2% gain was creditable, insufficient or excessive?  The FTSE-100 index rose 9% during that year which followed the worst of the banking crisis, so the Church did better than the average investor’s tracker funds.  And so they should: half of all investors did better than average, by definition.

Our own family portfolio gained 23%!  Where were we on the Mammon stakes?

[from my blog on Chilwell Road Methodist Church website]

Report for March 2011

Given that the Nikkei Index fell 13% after the Japanese earthquake, this month's outcome is gratifyingly stable.  Our three stocks (BHP Billiton, Tesco and Severn Trent) all fell slightly, but this was offset by a continuing steady rise in our First State China Growth Fund. 

So with the FTSE100 steady at 5932 and our portfolio steady at £20,874, the Unit Value remains close to 134.  Our wide range of funds is helping to keep our portfolio steady.