2021 EVENTS

TEMASEK IMPACT INVESTING CHALLENGE

ABOUT

With COVID-19 exposing the dire capital needs of underserved communities and causes, impact investing has been hailed as the way to move forward for financial institutions. Seeking the dual goals of profit and social impact, it is a market based approach to resolving critical problems faced by communities worldwide – from access to education to poverty alleviation.

The Cambridge Temasek Impact Investing Challenge was born out of the desire to encourage the practice of impact investing among university students, with the hope that one day these students will be leading the way in ensuring that every invested dollar leads to positive social outcomes as well as positive returns.

FORMAT

Participants will form teams of 3-4 and submit a pitch book on a selected equity which falls under one of our three main themes: 1) Environmental Sustainability, 2) Food Security and 3) Human Development, and have the greatest chance of appreciation over the long term. 5 finalists will be selected to present their pitch book to investment professionals from Temasek. All participants will receive a certificate of participation and be invited to a private networking session with analysts from Temasek. For detailed guidelines on the pitch book, do check out the guidelines tab.

STOCK EXAMPLES

Please find below a suggested list compiled by our Impact Investing Competition Team. Participants do not have to stick with the example stocks if they are able to find other promising companies falling under any of the 3 themes. It is however, important to link it back to at least one of the themes.

Stock Examples

PRIZES

Champion team: £300 and an invitation to the final round interview at Temasek
2nd Place team: £200
3rd Place team: £100
Top 15 teams: Honourable mention

THEMES

1) Environmental Sustainability

Environmental Sustainability is becoming an increasingly urgent concern for the global community with depleting natural resources and global temperatures rising at unprecedented levels. 4 United Nations Sustainable Development Goals (Affordable and Clean Energy, Climate Action, Life Below Water, Life on Land) fall under the umbrella of environmental sustainability. Under this theme, we are looking for companies that have managed to adopt sustainable solutions in their business model while maintaining a strong financial position.

2) Food Security

According to the World Economic Forum, global food supplies will be under severe stress by 2050 with the world population reaching 9.8 billion. Demand is expected to increase by 60% while the amount of arable land is set to shrink due to various human factors. This theme is related to 2 sustainable development goals: Responsible Consumption and Production, and Zero Hunger. Under this theme we are looking for companies that have adopted innovative solutions to the issue of food security while maintaining a strong financial position.

3) Human Development

The United Nations Development Program defines human development as developing people’s abilities and giving them the chance to use them to live the lives they value. It involves directly enhancing human abilities (i.e. knowledge) and creating conditions for development (i.e. gender and racial equality, microfinancing). It is related to 4 sustainable development goals: Gender Equality, Quality Education, Decent Work and Economic Growth, and Reduced Inequalities. Under this theme we are looking for companies that have contributed to human development per the UNDP definition (i.e. increasing access to quality education or reducing gender inequality) while maintaining a strong financial position.

TIMELINE

Sept 23: Deadline for registration (11:59pm BST)

Sept 28: Deadline for Pitch Book Submissions (11:59pm BST, link for submission will sent out after you register your team)

Oct 5: Release of top 5 teams (finalists) and top 15 teams (Honourable Mentions)

Oct 10: Virtual Finals (09:00am BST) and Networking (12:00pm BST)

REGISTRATION

We anticipate a high volume of registrations so please register your team as soon as possible to secure your participation in the Impact Investing Challenge. It takes less than 5 minutes to fill up the registration form.

ELIGIBILITY

This competition is open to all students from our partnering schools: Cambridge, Oxford, Warwick, UCL, KCL, LSE, and Imperial. Participants are to form teams of 3-4 and register as a team. Mixed teams with members from different universities are welcome.

REGISTRATION FORM

Impact Investing Challenge Registration Form

Registration closes on 11:59pm (BST), 23rd September, 2020

GUIDELINES

Each team is to submit a pitch book in the form of Powerpoint slides (less than 12 slides excluding Appendix), as well as their Excel Workbook in clearly formatted and understandable manner.

The link to submit will be sent out shortly after your team has registered for the competition.

RECOMMENDED STRUCTURE FOR POWERPOINT

  1. Executive Summary [1 slide]

    • Company ticker, target price, time horizon.

    • Brief introduction to company and industry

    • Summary of the investment/impact theses, including your view on the key drivers

  2. Overview of the industry and company [2-3 slides]

    • Give a brief overview of the historical context of the industry – how did it get to where it is today?

    • Explain the key themes in the industry and discuss the competitive landscape (e.g SWOT, Porter’s 5 Forces)

    • Analyse the total addressable market (TAM) for the company

    • Explain the company’s business model and unit economics and compare this to the wider industry.

  3. Investment and Impact Thesis [2-4 slides]

    • Identify the key drivers for the company (e.g automobile demand for TSLA)

    • Explain your forward view of the key drivers, along with supporting evidence based on fundamental research. Think about the extent to which your view is non-consensus – why is your view not being priced in?

    • Identify the catalysts that will cause the market to re-price the stock according to your view and the time horizon of your pitch.

    • Identify the specific social impact factors of your chosen stock, where possible in a quantified manner (e.g reducing carbon emissions by XX amount for TSLA)

    • Includes justification on how the long term impact can be realised

    • Explanation of how the company ties in with any one of the 3 main themes

  4. Valuation [1-2 slides]

    • Screenshot of DCF/comparables valuation

    • The valuation should reflect your investment thesis and all assumptions should be explained

  5. Investment Risks [1-2 slides]

    • Outline the key risks to your thesis and, where applicable, provide mitigating factors. What events would cause you to change your mind?

    • Provide a sense of the potential downside should the risk case play out.

  6. Appendix [Optional]
    E.g sensitivity analysis, reference charts

GRADING BREAKDOWN

  1. Business Model and Industry Analysis (25%)

  2. Investment Thesis, incl. risk factors and mitigants (35%)

  3. Impact Thesis (15%)

  4. Valuation (15%)

  5. Communication and presentation (10%)

FINALS

5 finalists teams will be informed over email by 5th October. The finalists will need to prepare a 15 minute pitch and a 10 minute Q&A to investment professionals from Temasek using the same slides submitted. Further details will be included in the finalists email.

ABOUT TEMASEK

Temasek is an investment company with a net portfolio value of S$313 billion (US$231b, €206b, RMB1.55t) as at 31 March 2019.

Our Temasek Charter roles as an investor, institution and steward shape our investment stance, ethos and philosophy, to do well, do right and do good.

Our investment philosophy is anchored around four key themes: Transforming Economies; Growing Middle Income Populations; Deepening Comparative Advantages; and Emerging Champions.

We actively seek sustainable solutions to address present and future challenges, as we capture investment and other opportunities that help to bring about a better, smarter and more sustainable world.

Temasek has had overall corporate credit ratings of Aaa/AAA by rating agencies Moody’s Investors Service and S&P Global Ratings respectively, since our inaugural credit ratings in 2004.

Headquartered in Singapore, we have 11 offices around the world: Beijing, Hanoi, Mumbai, Shanghai and Singapore in Asia; and London, New York, San Francisco, Washington DC, Mexico City, and Sao Paulo outside Asia. We hire a diverse team of over 800 staff from 31 nationalities.

For more information on Temasek, please visit www.temasek.com.sg

For the latest Temasek Review, please visit www.temasekreview.com.sg

Connect with us on social media: Facebook (Temasek); LinkedIn (Temasek); Twitter (@Temasek); Instagram (@temasekseen); YouTube (TemasekDigital); WhatsApp (+65 9101 0207) and WeChat (temasek_digital).

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