An increase in marketing and sales costs
SAJC INVESTMENT FUNDS
aimed at driving revenue growth underpins the increase in overhead costs compared to
Year Ended
2015 $000
the prior year. The increase in costs in sales
2014 $000
and marketing result from the establishment of longer term strategies aimed at growing
Perpetual
19,648
14,730
the profile of the venue and generating
Blackrock
14,268
10,184
additional revenue. The Club is already
Morgans
7,903
11,147
Term Deposits
4,004
14,000
Investment Cash Account
2,639
1,381
48,462
51,442
-
(2,062)
48,462
49,380
experiencing the benefit of these strategies with the increment in revenue in the conference and events space.
TOTAL INVESTMENT ASSETS
Investments are managed in accordance
LESS: AMOUNT DUE TO TRSA
with a Board approved Investment Strategy.
NET ASSETS
Investment earnings are subject to the vagaries of the investment markets. Weighted average returns for the year of 6.65% were down on the prior year of 9.50%. The investment funds as at 31 July 2015 are as follows: (see table above right) After disappointing results, the allocation to Morgans was reduced during the year, and since 31 July 2015, the Morgans mandate has been terminated. The current intention is to retain only two fund managers, being Perpetual and Blackrock. It is the Club’s intention to apply a portion of the investment funds towards the proposed development of the Cheltenham Sports and Community Club, and to the establishment and developments identified within the Master Plan. A number of Capital Projects have been undertaken during the year. Total capital expenditure on those projects for 2014/15 was $1.06M, with no individual project greater than $100,000.
SAJC
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2014/15 ANNUAL REPORT
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