Worldsec Limited

Climate Impact & Sustainability Data (2023, 2023-01 to 2023-06)

Offers flexible working arrangements, supporting work-life balance and improving employee satisfaction.

Target market risk: Sharp or prolonged downturn in the economic environment or heightened uncertainty in the political environment in Greater China and South East Asia.
Investment opportunity risk: Intense competition for quality deals.
Key person risk: Heavy dependence on the executive directors’ abilities.
Operational risks: Failure to comply with investment policy, prevent misstatements, loss or fraud, or comply with rules and regulations.
Financial risks: Market risks (foreign currency, interest rate, price), credit risk, and liquidity risk.
COVID-19 pandemic risk: Resurgence of infections or emergence of new variants.

Diversified portfolio to spread investment risk.
Broadened investment policy for greater flexibility.
Letters of appointment with termination clauses for executive directors; Mr. Cheong is also deputy chairman and major shareholder.
Established systems of internal control and risk management.
Detailed approach on financial risk management (note 5(b) in the report).
Maintaining a geographically and industrially diversified portfolio.

Global economic uncertainties (interest rates, inflation, geopolitics, Russia-Ukraine war), cautious investment sentiment, challenges in obtaining funding and refinancing, impact on real estate and technology sectors, slowdown in China's economic recovery.

Disposal of Velocity investment to provide additional working capital for future opportunities, focus on long-term potential of China-focused investments.