NTUC Income AR 2018

Investment Committee The Investment Committee (IC) comprises six members as follows: Chairman Lau Wing Tat Members Kee Teck Koon Choong Tuck Oon Ken Ng (Chief Executive)   Kate Chiew (Chief Investment Officer) Lau Sok Hoon (Appointed Actuary) The IC exercises the authority delegated by the Board in ensuring the Co-operative’s investment activities are managed in a prudent manner. The key duties and responsibilities of the IC are to: • Formulate, establish and recommend the Investment Policy and Strategic Asset Allocation (SAA) for approval by the Board • Review the Investment Policy and performance on a regular basis so that it remains appropriate, recognising among other things, changes in business profile and the economic environment • Ensure the Investment Policy is consistent with the asset-liability management strategies required to support new and existing products • Ensure the Investment Policy of the Participating Fund is consistent with Income’s bonus and dividend policy • Ensure resources dedicated to investment activities are sufficient to implement and manage the approved Investment Policy and any other activities requested by the Board • Implement and maintain adequate risk management systems and controls in respect of the Co-operative’s investment portfolios • Oversee all ILP funds and reviewing fund performance on a regular basis • Approve the limits and guidelines outlined in the Investment Policy, which have been delegated by the Board to the IC, subject to Income’s overall risk limits set by the Risk Management Committee (RMC) • Approve margin transactions and short positions as outlined in the Investment Policy The IC is authorised to make all investment decisions as delegated by the Board. Property investments exceeding S$250 million in a single transaction would require the approval of the Board. The IC will report to the Board any transaction of material consequence. The IC has the discretion to refer to the Board for approval for transactions which may have wider implications beyond pure investment considerations. The IC held four regular meetings during the year. It evaluated and approved a number of major investment activities, including the review of strategic asset allocation, performance benchmarks and the investment portfolios outsourced to external fund managers. It also oversaw the successful implementation of the appointment of Fullerton Fund Management Company Ltd, under a strategic partnership agreement, to manage a significant portfolio of the Co-operative’s assets. Risk Management Committee The Risk Management Committee (RMC) comprises seven members as follows: Chairman Sung Cheng Chih Members Richard Shermon Choong Tuck Oon Pang Wai Yin Joy Tan Sim Hwee Cher Eric Seah (External member) The Board delegates its oversight function to the RMC while retaining the ultimate authority and responsibility. The RMC oversees the risk management framework and policies, covering all material risks that include market, credit, insurance, operational, liquidity and reputational risks. Corporate Governance 22 HAND IN HAND