An Active Investor

We are a generational investor, investing for generations to come. We aim to deliver sustainable value over the long term to our stakeholders.

Our investment philosophy has remained largely unchanged over the last 15 years. We are committed to our roles as an investor and owner of our portfolio, seeking to deliver sustainable returns over the long term, and make a difference in what we do.

We have evolved over time since our inception – from investing mostly in Singapore, to investing elsewhere as well; in Asia, Europe and the Americas. Our portfolio companies have also grown their regional and global footprint through the years.

Our investment activities continue to be guided by four investment themes and the long term trends they represent:

As an investor, we remain focused on intrinsic value and our core risk-return framework. We decide on investments and divestments based on bottom-up intrinsic value tests, and our investment returns are tracked against a risk-adjusted cost of capital. This risk-return framework drives our investment strategy, capital allocation, performance measurement and incentive system.

This framework also guides us as we strive to be an enabler across all stages of enterprise growth, from start-ups to later stage businesses. We seek out disruptive business models that can transform industries and uplift growth.

As an owner, we maintain full flexibility to actively reshape and rebalance our portfolio, whenever opportunities or challenges arise. We retain the option to take concentrated positions or remain in cash. We do not set limits or targets for asset classes, countries or sectors. We invest or divest in line with our outlook and value tests. Our balance sheet resilience and liquidity management help us weather volatile periods. From time to time, we may put on additional protection to weather specific events.

In aggregate since 2002, our investments in unlisted securities have delivered better returns than our investments in listed securities.

As a shareholder, we identify value creation opportunities across our portfolio and share our perspectives, at appropriate junctures, with the boards and management of our portfolio companies, for their consideration. We promote good governance and look to boards to drive strategy, and to management to run their respective companies.

We invest in unlisted assets to benefit from the listings or sales of such investments at a premium. In aggregate since 2002, our investments in unlisted securities have delivered better returns than our investments in listed securities.

Our investments and divestments are based on intrinsic value tests.

Our unlisted assets comprise companies and funds. Our unlisted blue chip companies, such as PSA and Mapletree, and our portfolio of high quality funds, pay steady dividends and distributions. Our investments in funds have been instrumental in helping us gain deeper insights into new markets and have provided co-investment opportunities. We also share some of the investment opportunities with like-minded co-investors.

From time to time, we may express our interest to invest or divest selected positions or manage our portfolio through options and warrants. We may also use derivatives to hedge currency and potential losses of our underlying investments, where gains and losses of the derivatives are matched against corresponding losses and gains in the underlying investments.

Delivering Sustainable Returns over the Long Term

Delivering Sustainable Returns over the Long Term Chart