SCL’s mandate is investing to deliver sustainable value for investors. As a strategic investor, we strive to find a balance between growing financial returns and being a responsible organization for future generations to benefit from what we do today. The mandate is to be achieved by pursuing the following investment objectives:

• Commercial objective: Investing responsibly and commercially to preserve and grow the long-term value of our assets.
• Strategic objective: Undertake strategic investments to deliver economic or societal returns for the community.

1. The Commercial Fund is intended to be an intergenerational fund that seeks to generate risk-adjusted returns on a long-term basis, to preserve and grow the long-term value of our assets.
2. The Fund targets to generate a return of at least the Bank Borrowing Rate + 3% on a 5-year rolling basis. The Fund’s return target is set by the Board and may be reviewed from time to time.
3. The annual returns of the Fund will be reinvested into the Fund and distributed to the Investors based on the dividend policy approved by the Board.
4. The Fund has the flexibility to invest across multi-asset classes in accordance to the strategic asset allocation.
5. The Fund has the flexibility to invest across different geographies with a preference for active and direct investment strategies.

1. 1. A key priority for SCL is to ensure the appropriate balance of risk and return in delivering our mandate and investment objectives.
   2. The Board Audit and Risk Committee specifies SCL asset-liability risk appetite and the investment risk appetite for the Commercial Fund and the Strategic Fund
   3. These risk aspects guide SCL’s funding priorities, informs strategic asset allocation and portfolio construction, and is embedded in investment decision-making processes
   4. These risk appetite statements are reviewed from time to time by the Board Audit and Risk Committee

1. Our framework of integrity, governance, and risk management (“FIGR”) establishes a clear responsibility, authority, and governance structure. It serves as a guide for the effective management of risks, and to inculcate a culture of good corporate governance and responsibility throughout SCL.
2. The schedule matters for the Board provides a structure of authority of the board and its sub-committees, and the limits of authority enables execution of day-to-day transactions by the senior management of SCL.