Saturday, February 17, 2007

2.11.07 Minutes

Feb 11, 2007 - Basic Minutes

Agenda:
Seth Meeting with Ted who suggests:
- slow down with the partnership agreement
- meet with a lawyer who has experience with Investment Clubs
- The partnership agreement we pulled from the web from the Detroit Club. He suggested that we find a lawyer to augment agreement
- Since we haven’t formalized the club as a business we can take dues to pay for a lawyer to find out how we can do this.

Paul Hawken’s Article
- there’s no standardization for SRI’s
- Corporation can have a negative screen and still be considered SRI

Seth- call Joan re: Investment Club advice
Call Portfolio 21 re: $1000 automatic invest.


Partnership Agreement
We need to take these steps before we write and sign partnership agreement
Lawyer-Group agrees that it’s worth it to hire someone. We should check our leads first and see what we could do.
Accountant-Call Bradley- what is Unit Value Method? How does it work?


Article Discussion
There is no standardization for SRI so companies are getting away with being called SRI. Natural Capitol Institute is trying to create complete transparency and to help create a standardization method for SRI. The only mutual fund they consider SRI is Portfolio 21. HighWater fund is in the process of being created to establish transparencies (the ability get past green washing which is distraction using something “green” to cover up something else they are doing that is negative). Companies try to make their shareholders happy. The initial investments might not be 10% in the beginning, but the standardization process may help benchmark.

We need to figure out as a club what our standardization is as the standardizations are being created. In the meantime, Seth suggests investing in credit unions. Grameen and Ashoka company in micro lending. Suggestion: Investing in one company. Portfolio 21 w/ $1000 invest??? ING is a sustainable company. Everything is completely green. Their building has be come a landmark in Amsterdam and their bills are 93% less than similar ones because of it being built eco-consciously and green.

Next month Christopher Peck from Natural Investment Services will come and speak to us regarding the NIS Social Rating .

BASIC will focus 75% on education.

Tracy suggests a list of what we do so we can be resources to each other.

Suggestions on basic investing
Read a chapter of a book at the meeting. As we slow down
Rich Dad Poor Dad
The First Book of Investing By Samuel Case
Suzie Orman books
Investing for Dummy’s
ING Direct Home page- Great resource for information. http://www.orangeaccount.com/

Questions
Q: Do we decide where we put our money or do we have a broker decide?
A: We decide as a group where to put the money.

Sunday, January 28, 2007

Next meeting is 2.11.07 at 6 PM

That's right.

Remember it's $25 this time. $20 for dues and $5 for petty cash (office supplies, etc.)

Want to put somethingon the agenda? Email Seth at sethlepore@hotmail.com

We will be signing all the paperwork so if you can't be there contact Seth to arrange a time to sign the documents PRIOR to the meeting.

Thanks.

Minutes from 1.14.07

Jan 14, 2006 Investment Club Minutes

Attendees
Wendy
Stephanie
Johanna
Tim Rich
Sharon
Seth
Kate
Evan
Chris
Howie
Heather
Kenny

Agenda
1 Tim Rich
2. Partnership Agreement
3. Operating Procedures
4. DBA- Cost and Structure
5. Sub committee Status

Tim Rich- Progressive Asset Management
Progressive Asset- Founded by Peter Camejo

Main Ideas- of SRI
1. Social Screens
a. No real standardization in place right now. It’s a work in progress for many SRI Investors
2. Share Holder Advocacy
a. CEO’s have lots of power. Proxy voting is an important issue
3. Community Investing


Definitions:
1. Mutual funds have minimum investment.
2. Balances funds can have 50% or 30% funds. Owning stock is like owning a slice of what the company is in the future. There’s no security in projected income. That’s why it goes up and down
3. Bonds are a set amount and then you receive principle back plus 6% or whatever the interest is. It typically comes in $1000 bonds. You do get tax for interest incurred.
4. Municipal bonds- Issued by Government and not taxed federally. You get a lower interest in Tax free bonds, but interest rate is lower anyway.


Market average returns have been 10%. If we went for 12% we would need to go for aggressive investments. Seek out international Investments. The downside is there are risks not assoc with American companies. Euro dollar value is a factor. Other countries may not be as willing to have us invest. Tim recommended: 30% International. 30% Smaller Co’s and difference in larger companies. Don’t put eggs in one basket. Small Cap* funds may average 10-12%, but international could be up 20% or more. So, avoid huge drops by having different sectors.
*Small Cap- Smaller size companies. There is a little more risk with smaller companies.

Question/Answer with Tim
How do we choose Mutual Funds based on levels of Screens?
-Calvert is a great co to look at. Some companies will try to be SR b/c it’s fashionable right now. Example: Oil companies are now owning solar companies.

Medium screens
The more you exclude the harder it gets to invest. You take more risk by limiting the amount of screens. To be strict on the screens limits your investments. Look past screening process to share holder advocacy. Share holders can be a powerful force in the company to change business practice. Example: Christian Shareholders influencing Disney’s business.

Community Investment Notes- come in $1000 increments.
If loans default – Calvert and ___(I didn’t get the name of the company) will step up and helps so that Shareholders are not responsible for the loss.
Community Investors are focused on making changes in the community rather than making money. Analogy: Acquiring interest on donations to community.

How do we find out how much revenue is done per company toward Tobacco for example?
-Look at Arial, Calvert, Praxis, Domani (they have been around for the longest)
- No telling how to know how much revenue and there are many frustrations/debates on whether to be moderate or strict on screens

Positive Investments
They might look for companies that have excellent labor (for example), Google. Positive means they are making an effort toward the screen.

How do we get the information on how each company’s involvement with what screens?
We have to build a portfolio. Half company might be Mutual Funds and the other half can be companies we want. With mutual funds we have to accept the companies mutual funds process.

How much does a group need to invest in individual company?
$25 or $7. It depends on how cost effective it is. Being on a more aggressive side means to have $1000 or $2000 investment. You never want to buy mutual funds at end of year b/c dividens are payed out at the end of the year. If investment drops in May or June people have to pay on that investment.

General Partnership
This seems to be the way for us to go. See Partnership Agreement

*Seth- Get all information to those who are not here. Have them sign the non representative agreement

DBA Costs
$29.00 + $7 for each additional member $250 which is roughly $12 each
This additional one time cost, not included in $20 investment

Voting
If absent from meeting. Addendums will be up on the blog and you can send vote to Wendy. wendy@heldinlight.com

Attendence at Meetings
Meetings once a month. Try to make each meeting. This is a business. If you cannot be present make sure your $$ gets to missy.

Sub Committees
If somebody wants to study an arena, research, etc,. You can put a committee together for that.

Receipts
Missy can get receipt book or reciept option for people.
Next week Adgenda

Petty Cash
$5 petty cash

Health Insurance
Sharon’s research says that it doesn’t make sense to do HI as a group, but she does have HAS health insurance options. Acupunture options and deals with Alternative Health Care Options. See Sharon.

Thursday, December 21, 2006

We've got a name! We've got officers!

Alright, it's true. We've got a name. We've got officers. Here's the scoop which is also in the minutes but it deserves it's own post.

The Name:
Bay Area Sustainable Investment Club- BASIC

The Officers:
President: Seth
Vice President: Tiffiny
Treasurer: Missy
Secretary: Wendy
Officers will hold these positions for a six month duration starting in January.

Next meeting in the new year is Sunday January 14th at 6PM. Notice that we are starting an hour earlier! Be there!

Minutes 12/10/06

December 10th

Investment Club Notes:

Club Name!
Bay Area Sustainable Investment Club- BASIC

Officers: for 6 Month Term
President: Seth Lepore
Vice President: Tiffany
Treasurer: Missy
Secretary: Wendy

Initial Start-up Costs: $109
-Includes DBA
-run in paper for 4 weeks
-Business Lic, taxes and Zoning
-Tax ID number (Seth?)

Licesensing Options:
LLC, INC, Corporation, LLP,
- Seth is researching which of these is the most appropriate
- Tracy is looking into hosting BASIC under her LLC in Wisconsin

Screens:
-Education on issues is Important
-We may have to put our money in one mutual fund that we can get into even if we don’t have screens solidified.
- Bring in Tim Rich from Progressive Asset Management to talk with us in the second week in January, which will help us understand screens.

Treasurer:
-We need a record keeping system for when we pay $20 monthly dues. Possibly a receipt book or check sheet.

Timing of meeting:
Change to 6pm!

Attendendees tonight
Sharon
Evan
Kate
Tracy
Stephanie
Wendy
Johanna
Tiffany
Kenny

Next Meeting: Second Sunday in January (January 14th 2007) at 6PM

Tasks:
Tracy- LLC
Seth- Talk to Howie, LLP vs, LLC
Tiffany- Talk to Ted, CPA any questions about business start up

Additional Agenda for next meeting:
Talking about what kind of committees we want

Sunday, December 3, 2006

Agenda for Dec. 10th (so far)

-Establish a working name.
-Establish officers. Speak in more detail about roles.
-Discuss intial start up costs. (biz license, etc.)
-Discuss best way to deal with social screens using the blog.
-Possible guest speaker for Feb.
-Discuss educational components. What do people want to learn about?
-Looking forward. What the first three months of the club look like, for both meetings and virtually.

Choosing/ Voting on Officers

Officers:
You know you want to run... If you want to hold one of these positions please post and we will vote at the next meeting. We will also vote on how long we will hold positions for (we talked about six months):

President
VP
Treasurer
Secretary