SUSTAINABILITY
A pioneering approach that seeks to deliver long-term sustainable financial returns in tomorrow’s world.
INTRODUCTION
Our Edge
While we employ a variety of external research and data sets for fact gathering and idea generation, our edge lies in the proprietary interpretation of information derived from both quantitative and qualitative analyses of each company we invest in.

In addition to financials, business strategy and growth catalysts, we believe that core traits such as corporate governance, management quality and the ability to manage Environmental, Social, and Governance (ESG) risks will also have significant implications on a company’s potential business performance.

We believe that a company which prioritises profit at the expense of ESG considerations exposes itself and its shareholders to scrutiny and regulatory risk, which are likely to result in poor business resilience and earnings durability. Hence, our investment teams employ third party ESG research to identify corporate non-compliance with best practice ESG standards. We ensure this is done with complete discretion and independence.
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Lion Global Investors is a Signatory to the UN Principles for Responsible Investment (PRI)
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We are subscribed to a mix of third party reputable ESG data providers that offers:
  • Access to investee company and overall portfolio and benchmark ESG quality;
  • Carbon/climate change analytics for tracking of portfolio and benchmark carbon footprint;
  • Climate VAR scenarios that provides forward looking impact on portfolio and benchmark returns;
  • Norms screening tool used in incorporating clients’ ESG beliefs.
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Our Proxy Voting and Engagement:
Appointment of reputable global proxy advisor to ensure prudence in exercising our proxy voting rights and are actively engaged with companies based on materiality of issues to portfolio performance and to encourage best industry ESG practices.
Investment Philosophy
We aim to excel in executing our fiduciary responsibilities when managing our clients’ money. We focus on all material factors that impact the risks and returns of the mandates we manage on behalf of our clients, in a bid to provide the best performance for our clients’ investment portfolios.
Our Sustainability Beliefs
We believe that material ESG factors impact the risks and returns of the investments we manage and such considerations should be integrated into our investment process to maximize the risk-reward of each investment decision we undertake. This aligns with the investment philosophy to take into account all material factors to provide the best performance for our clients’ investment portfolios.
ESG Considerations in Decision Making
Idea Generation and ESG Investment Opportunities
Investment opportunities are dictated by our views on material factors within markets, sectors and companies. This includes material ESG risks for each security and the investment opportunities that are pro-environment such as green bonds for our fixed income strategies.
Investment Thesis
ESG factors are considered alongside other considerations that are integral to each security’s performance, including but not limited to factors such as financials and strategies, management capabilities, growth catalysts and valuations. ESG information for assessment is derived from key sources such as public information that is provided by issuers both via our engagement efforts or company filings, and through reputable third party ESG platforms that we subscribe to.
Clients’ Customised ESG Requirements
For institutional clients and partners that have different ESG beliefs and norms that they would like to express within their investments, we have experience in managing such portfolios with customised ESG needs.
Stewards of Client Capital
Through effective engagement, vital information is gathered in relation to a company’s business and strategy, including their stance towards material ESG issues. This contributes to idea generation, our investment theses, performance of our funds, and steer companies towards more sustainable business practices over time.
There is also an escalation process in place for investee companies that have either deteriorated or made insufficient progress in areas material to the companies’ business sustainability. After approximately three years of engagement and assessment, companies with continued poor sustainability efforts that pose material ESG risks to the portfolio would enter a blacklist where investment teams have to divest their holdings with no further investments permitted.
Through our active investment process, we monitor our investee companies regularly on an ongoing basis over their respective investment horizons. To this end, our analysts and portfolio managers have regular management meetings in a bid to maintain open and purposeful dialogue with our investee companies on matters that we believe have material impact on their value and investment outlook. Doing so also gives us the opportunity to communicate our views in a constructive and meaningful manner to company management as required.
Company engagement for us occurs minimally over three years, during which we will seek to evaluate progress and recalibrate our engagement objectives as necessary, all the while keeping in mind our original investment thesis for the company. Based on the progress made by our investee companies, we then determine if any further action should be administered, before considering other possible consequences in the event that progress is found wanting.
Engagement efforts can be further reinforced by exercising our proxy voting rights with prudence. We support resolutions that promote long term sustainability of companies in our portfolios, and would vote in a way that encourage companies to address material ESG issues.
For proxy voting execution, we engage the services of a reputable third party proxy advisor with global experience. While the proxy advisor offers vote recommendations, our investment teams have the ability to override the recommendations should there be differing views on what is deem to be in the best interest of our clients. Clients’ interest is our priority. In cases where there exists a potential conflict of interest, there are policies in place to ensure that decisions are made with a ‘client-first’ mindset.
Stewards of Client Capital

Active ownership is a natural and integral component of Lion Global’s fundamental approach to money management. Through positive and effective engagement, we seek to develop a more complete and informed view of the companies we invest in, their operations and the business-wide scope of their investment risk/return profiles. We believe this contributes to the investment edge in our continuous search for idiosyncratic alpha.
More importantly, we consider active engagement to be synonymous with what it means to be a trusted steward of client capital. Exercising sound and prudent stewardship with the companies we invest in is a vital aspect of the obligation to our clients and end-beneficiaries. We ensure that client assets are invested responsibly, and we act as trusted owners on behalf of our clients who seek long-term sustainable returns from their investments.

Through our active investment process, we monitor our investee companies regularly on an ongoing basis over their respective investment horizons. To this end, our analysts and portfolio managers have regular management meetings in a bid to maintain open and purposeful dialogue with our investee companies on matters that we believe have material impact on their value and investment outlook. Doing so also gives us the opportunity to communicate our views in a constructive and meaningful manner to company management as required.
Company engagement for us occurs minimally over three years, during which we will seek to evaluate progress and recalibrate our engagement objectives as necessary, all the while keeping in mind our original investment thesis for the company. Based on the progress made by our investee companies, we then determine if any further action should be administered, before considering other possible consequences in the event that progress is found wanting.

With stewardship lying at the core of active and responsible investing here in Lion Global, active ownership and the consideration of ESG factors are integrated into our investment process and decisions, and we endeavor to exercise the share ownership rights we hold on behalf of our clients in a timely and effective manner. We believe proxy voting is an important right of shareholders and hence deserves utmost care and diligence.
In view of the above, we vote our clients’ shares globally, with our voting policy determined by reference to listed company guidelines. We employ the proxy advisory services of Glass Lewis but also conduct our own analysis of resolutions being considered at company annual general meetings and other shareholder meetings. Where necessary, we attend and speak at shareholder meetings to reinforce our message to a company’s board.
Stewards in the Broader Community
We seek to play an active role in the creation and development of a sustainable capital market. At the organization level, as a member of the Investment Management Association of Singapore (IMAS) and a signatory of PRI, we look to learn from peers and are open to sharing our views and experience to assist in raising sustainable investment standards in the industry.
At the investment level, we are also open to joint collaborations in engagement activities with other like-minded investors to push for improvements in companies that we have an interest in. In such instances, it could lead to a more efficient and effective approach to raising sustainability standards that benefit our clients’ portfolios.
We recognize our function as an asset manager within the broader, global business and investment ecosystem. Hence, while we continue to do all that is necessary to fulfil our fiduciary obligation of delivering long-term value to our clients, we are also very cognizant of the fact that the decisions we make as an investment manager can and will inherently have various environmental, social and governance impact.
As such, it is our belief that the increasing adoption of sustainable business policies and responsible investment practices can lead to long-term optimal business performance and economic growth. And this can in turn contribute to the alignment of interests held by shareholders and other stakeholders, thus creating sustainable and inclusive long-term value for all stakeholders.
Stewards in the Broader Community

We seek to play an active role in the creation and development of a sustainable capital market. At the organization level, as a member of the Investment Management Association of Singapore (IMAS) and a signatory of PRI, we look to learn from peers and are open to sharing our views and experience to assist in raising sustainable investment standards in the industry.
At the investment level, we are also open to joint collaborations in engagement activities with other like-minded investors to push for improvements in companies that we have an interest in. In such instances, it could lead to a more efficient and effective approach to raising sustainability standards that benefit our clients’ portfolios.

We recognize Lion Global’s function as an asset manager within the broader, global business and investment ecosystem. Hence, while we continue to do all that is necessary to fulfil our fiduciary obligation of delivering long-term value to our clients, we are also very cognizant of the fact that the decisions we make as an investment manager can and will inherently have various environmental, social and governance impact.
As such, it is our belief that the increasing adoption of sustainable business policies and responsible investment practices can lead to long-term optimal business performance and economic growth. And this can in turn contribute to the alignment of interests held by shareholders and other stakeholders, thus creating sustainable and inclusive long-term value for all stakeholders.
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