Investment Performance

Our investment portfolio was further de-risked in September 2011 and equities are now less than 10 per cent of holdings.

Investment performance & policy

Investments returned $14.5 million for the six months to August, representing a return of 2 per cent. Since then market conditions have been exceptionally volatile as a result of the European sovereign debt crisis, worries over the solvency of European banks and concerns over the extent of recovery in the US. The Club decided to reduce portfolio risk in September by reducing the proportion of equities from 15 per cent to 9 per cent of the portfolio. The funds have been invested in short duration fixed interest securities. Fixed  interest holdings have increased further to 72 per cent of the portfolio. Ninety-nine per cent of all bonds invested in by the Club are A grade or better.

There is a lot riding on policy makers in Europe over the next few months. The Board accepts that risk  assets represent reasonable value at present while such economic gloom persists, but feel it is in the Club’s best interest to adopt a more conservative investment stance in the shorter term.