{"id":1502,"date":"2021-09-13T15:53:56","date_gmt":"2021-09-13T15:53:56","guid":{"rendered":"https:\/\/galileeinvestment.com\/?page_id=1502"},"modified":"2022-02-14T10:38:02","modified_gmt":"2022-02-14T10:38:02","slug":"q4-2021-newsletter","status":"publish","type":"page","link":"https:\/\/galileeinvestment.com\/zh\/q4-2021-newsletter","title":{"rendered":"Q4 2021 Newsletter"},"content":{"rendered":"
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Q4 Investors' Newsletter
October 2021<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Message from Our COO<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Lawrence Lim, <\/strong>COO, <\/strong><\/p>

Galilee Investment <\/strong><\/p>

Management<\/strong><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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Dear Investors,<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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As we enter into the final quarter of the year, I certainly wish that Singapore can quickly and successfully move past both the Stabilization and Transition phases into the new normal with COVID as we exit 2021. My prayers continue to go out to Singapore and our neighbours in the region as we carefully navigate through the uncertainties brought about by this pandemic.<\/p>

We would like to assure you that Galilee will continue to bring value to our investors and we have a few exciting developments that we hope to share with you.<\/p>

Firstly, we have plans underway to increase our engagement with our investors through a series of webinars\/seminars <\/strong>\u00a0on a variety of finance-\/investment- related topics starting early next year.<\/p>

Next, we would also like to update that the registration of our new Variable Capital Company (VCC) Fund is underway<\/strong>. A VCC is a new company structure specially designed for collective investment funds set up in Singapore, with many added benefits as compared with current fund structures. Find out how a VCC structure benefits investors here<\/a>. There is also a 70% grant scheme to offset the costs of setting up a VCC to encourage adoption of this new structure. Our VCC will feature two new sub-funds with very different strategies. One would be a real estate backed debt fund and the other would be a special opportunities strategy trading in public equities.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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We would definitely love to hear your feedback on these new initiatives through a <\/span>short survey which would take less than 2 minutes.<\/span> You can access the survey by clicking on the button<\/a><\/span>. <\/span>Thank you.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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\n\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tFEEDBACK<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Lets begin with the fund-specific updates for Cambodia Development Fund<\/strong>.<\/p>

Project Updates<\/strong><\/p>

The situation in Cambodia seems to be stabilizing. As of 15 September, almost 60% of the population has been vaccinated,<\/a> placing them second after Singapore in terms of vaccination rate among the Southeast Asian Nations and within top 30 in the world. In fact, Phnom Penh became the first capital to attain 99% vaccination rate among their adult<\/a> population in August. Our consultant had also feedback that most of the team working (including construction workers) on the project had gotten their 3rd booster vaccination jab in Cambodia. Is the worst over? It remains to be seen. Nevertheless, both sales and construction fronts are progressing well.<\/p>

In July, the sales team conducted a thorough review of the sales strategy and one of the key objectives was to maintain the overall project’s profitability and IRR for our investors. This meant that reducing the prices or giving deep discounts were out of the question. The sales team concluded that the best option was to increase the selling price of the remaining units of Tower 1, 3 and launch the first 20 floors of Tower 5. After the team effected the new strategy in early August, we have seen a decent pick up in sales momentum. As of 31 August 2021,\u00a0 84%<\/strong> of Tower 1 and 71%<\/strong> of Tower 3 has been sold\/booked. Of the 171 units launched for Tower 5, 17 units<\/strong> had been sold.<\/p>

The overall construction timeline had seen a accumulated delay of about 3 month due to a number of factors but was mainly due to (1) material shortage and shipping delay and, (2) imposed curfews due to COVID over the past few months. Due to these delays, the team also had to intentionally postpone the soil excavation phase of the basement construction to avoid the need for costly dewatering due to the rainy season from May to October. Nevertheless, the development team had provided for an amended timeline to catch up on the delay at later stages of the development so there would be little effects on the final completion date, scheduled for Q4 of 2023.<\/p>

The sales and development <\/span>teams continue to adapt to the ever-changing situation and challenges along the way. Do read the detailed sales and construction updates in the next section.\u00a0<\/span><\/p>

Fund Audit Updates and Project Valuation Report<\/strong><\/p>

The first full audit for the fund for FY2020 is in its final stages of review. An ‘As if Complete’ and cost valuation was also conducted by CBRE for the purpose of the audit. We are reasonably confident that the final audit would pass without any significant findings.<\/p>

Moving on to the Compounder Fund<\/strong>.\u00a0<\/p>

The Fund achieved a 25.0% total return net of fees (correct as of 31 August 2021) since inception, which translates into a 21.8% annualized return. Ser Jing and Jeremy continues to monitor and stick closely to the investment process set out for the fund to sieve out and invest in great businesses for the fund. As always, Ser Jing and Jeremy has published their portfolio’s investment theses on their website and you can access them here<\/a>.<\/p>

With that, I would thank you for your patience and continued support. Please feel free to reach out to us if you have any feedback. That is all from me but please read on for more detailed updates for each fund in next sections. <\/strong><\/em><\/p>

Regards<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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What is a Variable Capital Company (VCC) and what are its benefits?<\/a><\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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