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.
Find out more about our Sustainability Strategy and Stewardship Strategy.
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.
Find out more about our Sustainability Strategy and Stewardship Strategy.
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Lion Global Investors is a Signatory to the 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
As an Asian investment management specialist with more than US$50 billion under management, Lion Global is cognizant of market inefficiencies and the resulting structural drivers of mispricing opportunities that could be exploited.
Committed to Sustainable Investing
We believe that active and responsible investing must involve the incorporation of environmental, social and governance (ESG) factors. We also ensure that our investment process is anchored by in-depth research and evaluations in order to better understand a company’s business and growth factors.
ESG Considerations in Decision Making
Idea Generation
Investment opportunities are dictated by our views on material factors within markets, sectors and companies, including ESG.
Investment Thesis
All credit and stock reviews are required to state the score from appointed third-party ESG data providers, and assess the ESG quality based on information from these providers. Analysts supplement this with their own research, and company progress is tracked over time.
Active Ownership
Maintain active engagement with invested companies for about 3 years to refine business models, processes, products and more. Escalation policy in place to exit companies which fail to meet ESG expectations after 3 years, and to add them to the non-investable restricted list.
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 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
Lion Global is committed to the creation and development of a sustainable capital market. We believe that policy, regulations and industry standards are crucial in creating positivity, transparency and success in society and the economy. We have and will continue to engage with policymakers, regulators, investors and other like-minded entities in the development of sustainable policies and financial systems.
As a member of the Investment Management Association of Singapore and a signatory of the Principles for Responsible Investment, we look to provide our views and experience towards the ongoing improvement of responsible investing standards. Being trusted partners of clients with businesses across all levels of society, we recognise the importance of developing the standards and conditions that support sustainable and responsible businesses.
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.
Stewards in the Broader Community
Lion Global is committed to the creation and development of a sustainable capital market. We believe that policy, regulations and industry standards are crucial in creating positivity, transparency and success in society and the economy. We have and will continue to engage with policymakers, regulators, investors and other like-minded entities in the development of sustainable policies and financial systems.
As a member of the Investment Management Association of Singapore and a signatory of the Principles for Responsible Investment, we look to provide our views and experience towards the ongoing improvement of responsible investing standards. Being trusted partners of clients with businesses across all levels of society, we recognise the importance of developing the standards and conditions that support sustainable and responsible businesses.
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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