Saichild Financial Holdings Limited
Annual Investor Letter - 2012
To Our Valued Clients, Partners, and Colleagues,
As we reflect on the events and progress of 2012, we are pleased to report a year of steady advancement and growing maturity for Saichild Financial Holdings Limited. Now in our fourth year of operation, we continued to build upon the strategic and philosophical foundations that have defined our firm from the beginning — patient capital deployment, disciplined research, and long-term alignment with our partners.
The year presented a complex investment landscape. While global markets demonstrated signs of stabilisation following the volatility of 2011, challenges remained. The resolution of the European debt crisis was far from certain, fiscal negotiations in the United States loomed large, and emerging markets faced growing pressure from inflation and policy tightening. Nevertheless, the relative calm in equity and credit markets opened pockets of opportunity for discerning investors willing to look beyond the headlines.
At Saichild, our focus remained firmly on quality — both in our investments and in how we strengthened the organisation. We deepened our analytical capabilities and added new tools to enhance our internal due diligence process. This included improved scenario modelling, value-at-risk assessments, and industry-specific benchmarking models. These capabilities not only enhanced our decision-making but also reinforced our conviction in the strategies we pursued.
Investment activity during the year was constructive. We increased allocations to listed equities in Asia, with a bias toward companies exhibiting strong balance sheets, recurring cash flows, and sustainable pricing power. We also identified several mid-market private investments with long-dated potential, particularly in sectors benefiting from secular growth drivers such as digital transformation and regional infrastructure development. As always, our emphasis remained on selective entry points and clearly defined downside protection.
From a financial standpoint, we are pleased to report that our Assets Under Management grew to USD24 million by year-end. This represents continued upward momentum, supported by both organic investment gains and additional capital commitments from our existing investor base. We view this as a reflection of trust in our process and growing confidence in our ability to protect and compound capital responsibly.
Beyond performance, 2012 was significant for the institutional progress we made. We began formalising our investment committee governance, increased frequency of investor communications, and initiated our first internal audit of systems and controls — all part of our
longer-term objective to operate with full transparency and institutional robustness. These measures, while not always visible externally, are integral to the integrity and sustainability of our platform.
Looking ahead, we are mindful that the world remains dynamic and that investment success is often shaped by how one navigates change. Our strategy remains unchanged: stay curious, remain cautious, and be bold only when the odds are clearly in our favour. We are confident that this approach, combined with a culture of humility and discipline, will continue to serve us well.
On behalf of the entire team at Saichild Financial Holdings Limited, we extend our sincere appreciation for your continued support and partnership. Your belief in our mission motivates our pursuit of excellence every day.
Yours sincerely,
Paulus Saichild
Executive Director