The main purpose of the Investment Committee is to ensure that P.O.L.I.C.Y Limited’s investment plan delivers decent performance against benchmarks. The Committee participates in the diligent implementation of the Company’s Investment Plan and has a major role in overseeing investment selection decisions.
Members of the Investment Committee are Mr Vincent Ah Chuen (Chairperson), Mr Pierre de Chasteigner du Mée, Mr Sydney Ah Yoong and Mr Karl Braunecker, members with a large experience in investment matters. The Committee meets at least four times a year.
As approved in March 2007, the Terms of Reference of the Investment Committee consist mainly of the following:
- Review and approve periodically the investment policies and overall strategies of the Company. In doing so, the following should be considered:
- General economic and environmental trends and predictions
- Sector and country specific performance and forecasts
- Changes or alterations to current legislation having an effect on investments
- Determine an appropriate investment strategy, including asset mix
- Set asset portfolio performance targets
- Set performance targets for the investment manager
- Review, decide and approve investment choices based on advice provided by the investment manager as and when necessary. In doing so, the committee should perform the following:
- Verify that all necessary steps and controls have been performed prior to investment proposal being formulated by the investment manager
- Verify adherence to investment policy
- Discuss and consider relevant issues (returns, volatility and absolute risk) to decide whether to invest or not in specific assets
- Consider whether adding specific assets in the portfolio will reduce risk and volatility due to possible diversification effect resulting from a lower correlation with other assets
- Decide whether any excess expected return over and above average returns justifies investing in the specific asset given the potential increased level of risks involved
- Monitor the performance of the asset portfolio and the investment manager against the agreed benchmarks and targets, seeking all necessary explanations to perform appropriate analysis
- Review and report to the Board of Directors, all matters relating to the administration, supervision and management of the plan.
- Review the diligent implementation by management of the repurchase of Company securities under any repurchase program set down by the Board of Directors.
- Oversee the risk management activities of the Treasury function with respect to the Company’s existing investments.
- Have full access to the Company’s executives as necessary to carry out these responsibilities.
- Perform any other activities or responsibilities from time to time assigned to such Committee by action of the Board which are consistent with this Charter, the Company’s Bylaws and governing law as the Committee or the Board of Directors deems necessary or appropriate.