To Our Valued Clients, Partners, and Colleagues,

 

We are pleased to present our annual letter for the year ended 31 December 2013 — a year of continued growth, broader exposure, and stronger institutionalisation for Saichild Financial Holdings Limited. As we entered our fifth year of operations, our commitment to long-term investing, risk-aware decision-making, and alignment with our capital partners remained central to our mission.

 

The global macroeconomic environment in 2013 was marked by cautious optimism. Equity markets posted strong returns in developed economies, buoyed by ongoing monetary support from central banks and signs of sustained economic recovery in the United States and parts of Europe. However, uncertainty lingered across emerging markets, particularly as the U.S. Federal Reserve’s announcement of tapering triggered capital outflows and currency volatility across Asia and Latin America. These divergent currents required investors to remain vigilant — and flexible.

 

At Saichild, we approached the year with measured optimism, selectively adding to positions in areas where fundamentals remained robust and market sentiment had grown unduly pessimistic. We increased exposure to high-quality businesses in North America and Asia, particularly in sectors tied to consumer demand, logistics, and healthcare. These businesses, in our view, offered durable earnings, prudent capital management, and long-term strategic relevance.

 

We also initiated several private investment discussions during the year, recognising that the illiquidity premium and control dynamics in such investments could provide attractive returns over the long term. Our process remained patient and rigorous, and while not all conversations materialised into transactions, they served to sharpen our sourcing pipeline and deepen our conviction in our criteria.

 

From an organisational perspective, 2013 was a milestone year. We took tangible steps toward operational maturity, including the refinement of our performance measurement systems, formalisation of portfolio attribution analysis, and the introduction of internal risk rating frameworks. These efforts helped not only in improving our internal oversight, but also in reinforcing accountability across the investment and operational functions of the firm.

 

Financially, we are pleased to report that our Assets Under Management rose to USD32 million by year-end, representing solid year-over-year growth. This growth reflects both prudent investment returns and continued commitments from our investor base. It is particularly encouraging that much of this expansion came from increased allocations by existing clients — a signal, we believe, of sustained confidence in our philosophy, process, and people.

 

Perhaps most importantly, 2013 was a year in which our investment discipline was tested and reaffirmed. In moments where markets rallied indiscriminately, we remained selective. In moments of volatility, we chose analysis over reaction. We believe this steadiness is what will define our success over time, and we remain grateful to our investors for sharing that long-term orientation with us.

 

As we look toward 2014 and beyond, our ambition is to continue strengthening our capabilities, widening our circle of partnerships, and deepening our insights. We remain firmly committed to our founding values: to think clearly, act decisively, and invest with integrity.

 

On behalf of all of us at Saichild Financial Holdings Limited, thank you for your continued support, trust, and partnership. We look forward to continuing this journey together.

 

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Yours sincerely,

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Paulus Saichild

Executive Director