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:
- 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.
- 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.
- 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.
- The Fund has the flexibility to invest across multi-asset classes in accordance to the strategic asset allocation.
- The Fund has the flexibility to invest across different geographies with a preference for active and direct investment strategies.
- The Strategic Fund is intended to be a developmental fund that seeks to undertake strategic investments with capacity to deliver economic and social benefit for community.
- The Fund targets to generate a return of at least the Bank Fix Deposit Rate on 5-year rolling basis and achieve its strategic objectives. The Fund’s return target is set by the Board and may be reviewed from time to time.
- The Fund will invest and manage strategic assets as defined and classified as long-term developmental investments with potential to deliver high economic impact.
- These assets will be developed to achieve commercial viability at which point value realization options may be considered.
- The Fund will pursue opportunities with the potential to become commercially viable or will earn sufficient returns to operate without recourse to its shareholders.
- The Fund has the flexibility to invest across capital structures.
- The investment themes will be reviewed on a regular basis based on global economic megatrends and national needs, and investment assets within the portfolio will be similarly reviewed and assessed for strategic relevance.
- A key priority for SCL is to ensure the appropriate balance of risk and return in delivering our mandate and investment objectives.
- 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.
- These risk aspects guide SCL’s funding priorities, informs strategic asset allocation and portfolio construction, and is embedded in investment decision-making processes.
- These risk appetite statements are reviewed from time to time by the Board Audit and Risk Committee
- 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.
- 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.