Minutes of a meeting held on 27th November, 2012.


Present: Councillor F.T. Johnson (Chairman); H.C. Hamilton (Vice-Chairman); Councillors T.H. Jarvie, A. Parker and A.G. Powell.


Also present: Ms. J. Lord, Independent Financial Advisor.



586e   MINUTES -


There being no Members present who had attended the meeting held on 5th March 2012, it was


RESOLVED – T H A T the minutes of the meeting held on 5th March 2012 be noted.





Councillors T.H. Jarvie and A. Parker declared an interest in that they were Local Authority appointed Governors to Cowbridge Comprehensive School. 





Ms. J. Lord of Bluefin attended the meeting to advise the Members of the Trust Committee of the outcome of a review of the Cowbridge Comprehensive School Trust, prepared to assist the Committee refresh and update the financial objectives of the Trust. 


Ms. Lord advised that, should the recommendations detailed within the review be properly implemented, she was confident that the Trust would continue to have a much greater chance of being able to achieve its stated objectives by using its available resources in the most efficient manner. 


Having clarified the objectives of the Trust, i.e. to distribute some income whilst maintaining capital value, it had been agreed that the following amendments should be made in order to maximise the potential performance of the portfolio:

  • consolidate the 71M and Bluefin managed portfolios, in order to introduce some consistency and simplify valuations
  • invest in a portfolio with the aim of producing approximately £15,000 per annum in income, although this could not be guaranteed
  • invest the portfolio via Transact to give the Trustees access to valuations at all times.

Furthermore, officers had indicated that there was to be no change to the income or capital requirements from the portfolio, and therefore the action points contained within the review were intended to:

  • ensure there was sufficient liquidity in the Trust portfolio to meet short term income requirements
  • rebalance the investment portfolio to the agreed asset allocation to take account of the Trustees’ attitude to risk and the requirement investment return.

Following discussions with officers, it had been agreed that an appropriate risk profile of 4 (out of 7) would be appropriate to meet the Trust’s goals and effectives. 


Bluefin defined a risk profile of 4 as “realistic”.  In summary, this meant that to the Trustees, risk represented uncertainty but there was a reasonable amount of confidence in the ability to make good financial decisions.  The preferred portfolio would be 50% lower risk / return and 50% higher risk / return assets.


At previous meetings with officers, a wish had been expressed to simplify the Trust holdings with a view to there being a more cohesive investment approach, and to that end Bluefin had considered three possibilities:

  • Option 1: consolidating the Trust’s assets under 7IM’s asset management
  • Option 2: consolidating the Trust’s assets within 7IM, using Bluefin recommended funds
  • Option 3: consolidating the Trust’s assets, using Bluefin recommended funds, on an alternative platform (Bluefin’s platform of choice was Transact).

In considering these three options, Bluefin’s primary concerns were simplicity and cost. 


The recommended option was Option 3, i.e. using Transact to maintain the Trust’s portfolio as it would allow Bluefin to regularly, and simply, rebalance the portfolio to the agreed asset allocation.  In addition, the valuations produced by Transact were simple, clear and easy to access by all Trustees online. 


The benefit of using Transact was that it provided access to a very wide range of tradable assets and funds, most at discounted prices, and could easily review and advise on the asset allocation, the Trust’s changing needs for liquidity, the individual funds within the portfolio or the tax position and its implications at any given point in time.


Reference was made to the former Cowbridge Lower Comprehensive School site receipt.  No decision had been taken as to how this money would be invested.  The receipt was currently invested with the Council and was attracting interest. 




(1)       T H A T the Trust’s assets be consolidated, using Bluefin recommended funds on an alternative platform, i.e. Transact.


(2)       T H A T Ms. Lord be requested to consider how best to deal with the Receipt arising from the disposal of the former Cowbridge Lower Comprehensive School site.


Reasons for decisions


(1)       Having regard to the advice of the Trust’s Investment Advisor.


(2)       To consider the best options available.





The Charities Act 2011 and Regulations required Trustees to prepare and consider an Annual Report and Accounts in respect of their Trust. 


The Annual Report and Accounts for the year 2011/12 was set out at Appendix A to the report. 


The document, subject to approval by the Committee, would be forwarded to the Council’s external auditors, Grant Thornton UK LLP, to be signed following the independent examination.


Having considered the report and the Annual Report and Accounts for 2011/12, it was




(1)       T H A T, on the Statement of Financial Activities the phrase “costs of sale” be replaced by the words “preparatory costs of sale”.


(2)       T H A T, subject to (1) above, the Annual Report and Accounts 2011/12 as set out in Appendix A to the report be approved and that the Chair be authorised to sign the same on behalf of the Trustees.


(3)       T H A T a report be brought to the next meeting of the Committee providing a breakdown of the costs of sale (£11,334) as shown in Paragraph 5 of the Notes to the Statement of Financial Activities and Balance Sheet.


(4)       T H A T Legal officers investigate whether all costs associated with the sale of the Former Cowbridge Lower Comprehensive School could be recovered from the proceeds of sale and that a report be brought before the next meeting of the Committee.


Reasons for decisions


(1)       To better describe the expenditure.


(2)       In accordance with the requirements of Section 162 of the Charities Act 2011 and the Charity (Accounts and Reports) Regulations 2008.


(3)       To inform the Committee.


(4)       To investigate whether costs associated with the sale of the Former Cowbridge Lower Comprehensive School could be recovered from the proceeds of sale.