Investor

How We Invest

We are an active investor and owner, aiming to deliver sustainable value over the long term.

Our investment philosophy has been underpinned by four investment themes:

Transforming Economies
Growing Middle Income Populations
Deepening Comparative Advantages
Emerging Champions

These themes give rise to structural trends, which define the long term direction of our investments:

We focus on structural trends driven by transformational technologies, sustainable living, longer lifespans, and changing consumer patterns, as incomes grow and lives are uplifted.

Longer Lifespan

Meeting the growing needs
of longevity

Rising Affluence

Satisfying aspirations of rising affluence with technology enabled opportunities

Sustainable Living

Creating eco-conscious solutions for
our future generations

More Connected World

Enabling faster and better ways to stay connected in a digital era

Sharing resources more efficiently
and conveniently

Smarter Systems

Breaking new ground through artificial intelligence and robotics

We expect to increasingly shape our portfolio in line with such trends, including engaging our existing companies to transform their businesses where needed, and investing in companies that are developing innovative solutions to disrupt old business models or create new ones.

We aim to build a forward looking and resilient portfolio of companies, through our Environmental, Social and Governance framework, that contributes to the progress of society and achieves a better world for this and future generations. We are focused on climate risks and opportunities, supporting our ambition to halve the net carbon emissions of our portfolio by 2030 and to achieve net zero carbon emissions by 2050. We believe in using capital to create opportunities for our communities to facilitate equitable economic growth.

We seek to add or create value
in our portfolio across all stages
of enterprise growth, from early stage
to mature companies.

Our investment discipline focuses on intrinsic value and our risk-return framework. We are driven by bottom-up intrinsic value tests for each opportunity, with returns tracked against a risk-adjusted cost of capital. This risk-return framework drives our investment focus, capital allocation, performance measurement and incentive system.

We seek to add or create value in our portfolio across all stages of enterprise growth, from early stage to mature companies.

We have full flexibility as an owner and investor to reshape and rebalance our portfolio, whenever opportunities or challenges arise. We are predominantly invested in equities, and based on our risk-return appetite, we invest or divest in line with our outlook and value tests. We may take concentrated positions or remain in cash, and do not set limits for asset classes, countries or sectors. We manage our liquidity and balance sheet for resilience.

Our investment
discipline focuses on
intrinsic value and our
risk-return framework.

We are an active shareholder, seeking to add or create value in our portfolio across all stages of enterprise growth, from early stage to mature companies. We proactively promote good governance, looking to boards to drive strategy and oversee management, who, in turn, run their respective companies.

Last year, a new Portfolio Development function was established within our Investment Group. It builds on our existing portfolio management capabilities and will allow us to further enhance the value of our assets through partnerships, innovation, and growth strategies across our portfolio.

Our portfolio comprises both listed and unlisted assets, with the latter consisting of companies and funds. Our unlisted blue chip companies, such as PSA, Singapore Power and Mapletree, and our portfolio of high quality funds are sources of 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. Meanwhile, our selective investments in early stage companies provide us with insights into innovation in technology and business models, enabling us to better assess future opportunities and understand potential implications for our broader portfolio, in addition to delivering returns.

We manage our
liquidity and balance
sheet for resilience.

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