INVESTMENT PHILOSOPHY

GPG makes selective investments, predominantly in public companies, for the purpose of enhancing and realising value by means of appropriate levels of shareholder influence and control. This could involve the restructuring of the financing or management of the companies in which GPG invests. GPG’s role may also encompass initiating and facilitating mergers within the relevant industry to achieve constructive rationalisation. In general, this active involvement is outside the scope of most institutional investors.

No equity investment is made without exhaustive research and unless it is possible to form a robust view of a stock’s medium-term prospects. GPG refrains from investing in businesses which it does not understand or those it regards as speculative. This has led it to invest almost exclusively in established companies with a long track record.

The Group can be affected by market price movements on its equity investments. Since it generally invests for the medium or long term, the Board does not believe it is economic or necessary to hedge market price risk, which in any event it considers to be a relatively short-term factor. No significant equity investment is made unless a margin of safety has been identified. Exposure to market price movements is further mitigated through holding a spread of investments, diversified across a range of sectors and countries.