Taking stock
Six local companies are considering going public this year by issuing IPOs, while another eight are planning to go to the market with corporate bonds - all of which will be listed on the Malta Stock Exchange. This is in no small part due to chairman...
Six local companies are considering going public this year by issuing IPOs, while another eight are planning to go to the market with corporate bonds - all of which will be listed on the Malta Stock Exchange.
This is in no small part due to chairman Joe Zammit Tabona, who made it a personal crusade to reverse the stagnation that saw months and months go by without any new listings.
Like all government-appointed chairmen at election time, Mr Zammit Tabona had his resignation letter ready to hand over to the Prime Minister elect. As soon as he takes office, however, the new Minister of Finance will find on his desk a number of important proposals coming from the Exchange that were temporarily put on hold. One of these proposals deals with legislation similar to that of the Alternative Investments Market, or AIM, in London.
"We are calling it an exchange-regulated market - XRM for short - and it is designed along the same lines as the London model. We would like to attract two or three family-owned companies of good repute. If we convince the first ones, then I think this would set in motion a strong ripple effect," he said.
Would this create a listing environment less rigorous than that for the main market, which is regulated by the Malta Financial Services Authority (MFSA)? He does not think so.
"More emphasis will be placed on the directors and the auditors of the company. They would obviously still need to have all the disclosure requirements in place but they would not require all the usual approvals by the listing authority, as they would be self-regulated.
"This would suit smaller companies. You have to bear in mind that there are many family companies that are now in their fourth or fifth generation, where minority shareholders have no exit route. In most instances, these companies would not have a clear dividend policy so it is really up to the chairman or the managing director to decide whether or not dividends are declared," he explained.
"In many cases the majority shareholder does not control enough funds to buy out the minority shareholders. So what happens? Minority shareholders are offered consideration which does not reflect the real value of their shares, with the result that they end up not selling. Coming to the market gives shareholders the opportunity of raising funds from the public. They would also benefit from fiscal advantages as there is no capital gains tax on transactions in listed securities. At the same time, it creates a market for the shares on the exchange."
Getting more companies listed will give investors more choice - but is this what they really want? After all, there was a decline of 67 per cent in equity trading in 2007, with only 14,000 deals compared to the 30,000 in 2006. (There has been a 10 per cent pick-up in the last two months.)
An important factor which has clearly influenced equity trading on the Exchange was the introduction of an OTC (or off-Exchange) market at the end of January, 2006. Equity volumes traded on this market since then have totaled around €70 million, of which €36 million during the past year.
"Sometimes it is hard to explain price movements in the market, particularly when share prices go down even though companies publish good results and are performing well. At the same time, most IPOs and bond issues are well oversubscribed in the primary market, indicating strong levels of demand which, however, do not emerge in the secondary market.
"The only explanation seems to be that most people still buy to hold even in the equity market. Obviously, the peaks in trading levels touched in 2005 and 2006 contained a certain element of speculation. If you recall, there was the privatisation of MIA and Maltacom, and Bank of Valletta was also being mentioned as a possible candidate at the time. People were speculating then and some speculation is, of course, important for the market," he said.
Do investors think that shares are undervalued on the primary market and will therefore rise rapidly, while there is less or slower growth potential on the secondary market?
"That could also be one reason. But the point is that, if you hang on to shares, you will make a return. I am quite sure that people are getting a good return on their capital from many of the listed companies, and even where no dividends are declared, there is often the potential for growth and capital appreciation."
One possibility - albeit not backed up by any evidence - is that investors are hanging on to their shares because prices have not been rising at the same rates as in 2005 and 2006, when the MSE Index registered record gains.
Mr Zammit Tabona thinks the problem is that there is simply not enough depth in the market.
"The problem is that there is no exit route. If you have a large shareholding, it is not easy to sell a big chunk and you might actually have to split it up," he said.
One solution is to have one or more market makers who would be available to buy the shares on offer. The Exchange has been working on this new development and we are currently in the consultation stage with interested parties before submitting its proposals to the Minister of Finance.
"I would imagine that the two principal banks, HSBC and Bank of Valletta, would be interested in acting as market makers. But I also think that individual stockbroking firms or, indeed, a consortium of firms, might be interested in creating a market-making vehicle, to ensure that they would not find themselves at a disadvantage in the new market environment," he said.
This means that Malta might go from not having any market makers at all to having ones for specific investments, say for a bank, or one for the whole market.
"In actual fact, we are currently talking to OCTQX, an American trading platform which would be able to provide market-making facilities in the US market for our listed companies. Clearly not all these companies would be able to qualify but the larger companies would certainly be able to benefit from this agreement," Mr Zammit Tabona explained.
Another major shift in outlook adopted by the Exchange is that from an essentially inward looking stance to a much wider international context. Just as joining the EU made it that much easier for Maltese investors to invest overseas, it also means that foreigners will find it easier to invest here. In fact, a company listed on the German Stock Exchange, which is currently operating in Malta, is seriously considering getting a secondary listing here.
"Our listing charges make us feasible even for a small company. One local company contemplating a secondary listing in London was faced with a bill of some £2 million. How many of our companies can actually afford such costs?"
Would all this new activity build up the critical mass that might eventually justify the introduction of credit ratings on public issues?
Mr Zammit Tabona was not completely convinced of the need for ratings, pointing out that all companies coming to the market go through a comprehensive diligence process with the listing authority.
"The problem is finding an agency that could offer ratings for a cost that is appropriate for this market. There would certainly be a strong hint of conflict of interest if the MSE itself were to do it," he mused.
"The regulator seems to be keen to create something akin to a capital redemption reserve fund, which would ensure that a company would be able to pay back investors within specified time frames.
"Speaking both as an accountant and as the exchange, I would certainly not agree with this, because if you are actually made to build up a fund, you might as well go to the bank for your financing needs...
"Personally, I don't think there is anything wrong with companies rolling over their corporate bonds. As long as there is security on that particular bond and all the interest is being paid on time, that is as far as we need to go."
So much for its clients. What about the MSE itself? Its privatisation has been on the cards for some time now. In preparation for this, it has been restructured, as Mr Zammit Tabona explained.
"The Stock Exchange was previously set up and governed in terms of the Financial Markets Act, which was amended last October. As a result of these changes, we migrated and set up a group structure under the Companies Act. MSE Holdings - which now owns the premises currently used by the Exchange - has two subsidaries, namely Malta Stock Exchange plc and Central Security Depository Malta plc. The operations of the Exchange have consequently moved from Malta Stock Exchange to Malta Stock Exchange plc.
"With regard to the privatisation of MSE plc, there have been expressions of interest shown by a number of other important European exchanges but everything was put on hold pending the outcome of the general election. It will now be up to the new Minister of Finance to decide on how to proceed."
The Stock Exchange is also looking at new pastures. Exchange officials recently went to Cyprus in order to discuss a new product being offered on the Cyprus Exchange aimed at listing shipping companies.
"We are currently exploring the feasability of setting up something similar in Malta, either jointly with our Cypriot counterparts or on our own steam. Malta ranks fourth in the world for shipping registrations so there could be an opportunity there," he said.
Mr Zammit Tabona also visited the Shanghai Stock Exchange twice and recently hosted at the Exchange a Chinese delegation which included its chairman.
"A memorandum of understanding with Shanghai will soon be signed and this is always a good first step. There are quite a few Chinese companies coming to Europe and Malta, as an EU member, could cater to their needs. It might sound be a bit far-fetched but if there is even a hint of an opportunity..."
Malta ranks well
The Global Financial Centres Index just published by the City of London said Malta was doing extremely well in terms of competitiveness, with very good growth prospects.
This report, the third in a series, ranks 66 financial centres worldwide based on external benchmarking data and current perceptions of competitiveness. Previous GFCI reports and other City of London-commissioned research show that international financial services firms, and the talented staff that they employ, are both highly mobile and responsive to a range of both market and non-market factors.
"It is for this reason that Malta must keep up a constant look-out for its dynamic competitive factors," Mr Zammit Tabona said.
Malta ranked fourth, following Dubai, Shangai and Singapore, as the centre most likely to increase in importance over the next few years. The island classified fifth in the ranking of the Top Financial Centres where organisations may open new operations in the next two to three years. In this respect, Malta's main competitors are Dubai, Luxembourg, Singapore and Mumbai.
The index informs worldwide investors that "Malta... is worth watching as it consolidates its position in the EU after adopting the euro at the beginning of 2008."
The FinanceMalta chairman added: "It is evident that Malta's accession to the European Union, together with the recent membership in the eurozone has given Malta the impetus to rank higher in such an important report."
Other competitive factors included in the report refer to Malta's strategic location in the centre of the Mediterranean, its climate (recently ranked by International Living as the best in the world), its rich heritage and excellent quality of life. Other important assets include the presence of a highly-educated and well-trained labour force, a tax-efficient environment backed up by over 45 double taxation agreements and a strong, yet flexible, single financial services regulatory body. Malta's sophisticated ICT infrastructure but comparatively competitive ancillary labour costs also make the island a very attractive yet cost-effective location.
Branding Malta
FinanceMalta has been doing background work for the past nine months since it was set up but its chairman Joe Zammit Tabona is satisfied that things are now ready to fall into place.
The non-profit, public/private organisation was set up as a foundation to market and promote the financial services industry, both locally and overseas.
At present it has two staff seconded from the Institute of Financial Service Practitioners (IFSP) and another one seconded from the Malta Financial Services Authority (MFSA). The recruitment of two people will be finalised now that the elections are over. Mr Zammit Tabona said that one would be completely devoted to overseas marketing while the other would be in charge of marketing the sector locally and heading the administration of FinanceMalta.
"We really need to have someone going abroad to work on promotion and organise events. The new recruits will make this possible," he said.
Last December, FinanceMalta organised a roadshow in Madrid and Barcelona which coincided with a public holiday and therefore did not have as much impact as it might otherwise have done.
Three events are envisaged for later this year: visits to Sweden and Denmark in the first week of September; one to the UK; and also the possibility of one to China.
"It seems as though the Cabinet would like to entrust FinanceMalta with a build-up towards Shanghai Expo in 2010," he said.
FinanceMalta receives €233,000 a year from government, the intention being for this to be matched by the private sector with anything in excess, in turn, to be matched again by Government.
"We have not been able to raise that much money from the private sector although FinanceMalta membership is well under way and the secondment of the IFSP staff is considered to be a contribution from the private sector," Mr Zammit Tabona explained.
Since its launch, FinanceMalta has set up four expert groups which meet on a regular basis within the FinanceMalta premises in Valletta. The taxation expert group is chaired by Stephen Attard. Anne Marie Tabona chairs the insurance expert group. The pensions group is led by Stuart Fairbairn, while the post of the chairman of the investment funds expert group is still vacant. The foundation is in the process of building up a membership database of all the practitioners, which is displayed in the business directory on the FinanceMalta website. Responsibility for the technical development of the website was recently taken over by the staff of the Malta Stock Exchange.
"We intend to flag the many things that have taken place in the past few weeks, like the update of the double taxation agreement with the US," he said.
The board of FinanceMalta also decided to hold an annual conference, the first of which is being held on May 30. The half-dozen international speakers were organised by MFSA chairman Joe Bannister and will be aimed at keeping local practitioners abreast of recent developments in the financial services sector.
Of course, FinanceMalta is also meant to promote Malta overseas as a centre of excellence for financial services. Many initiatives that were previously organised by MFSA are still taking place but under the new flag of FinanceMalta.
Recently, FinanceMalta teamed up with CountryProfiler, an international media company that specialises in the compilation and publication of business and industry guides and country supplements, with a view to attributing a section in its next issue to a guide on investing in Malta. This publication, which will also include a Malta Business Directory, is expected to be in circulation in mid-April.
Moreover, articles and adverts aimed at promoting Malta as a financial services centre have just been included in reputable international journals such as Newsweek, Captive Review and the Cell Company Handbook.
The aims of Finance Malta
• To coordinate closely with relevant industry players to promote and market regulated and other business areas, such as investment services, mutual funds, trustee services, insurance and banking, and to determine the most appropriate method and manner of doing this;
• to assist practitioners to market the Malta concept and advantages (financial or otherwise) in order to attract foreign direct investment;
• to raise Malta's profile as a quality finance centre, both locally and internationally;
• to implement and refine the brand strategy and road map developed for the financial services industry;
• to promote ownership of the Malta brand among all stakeholders;
• to create business and networking opportunities for firms operating in the sector;
• to promote private sector investment in the industry;
• to feed off success in one area to attract investment from the same entity but in another area;
• to synergise the different investment sub-sectors, pushing them to complement each other rather than compete with each other;
• to build on the expertise and successes of the different investment sub-sectors in order to attract business to the other investment sub-sectors;
• to do all such other things and undertake or carry on any actions that may be ancillary, incidental, related to or connected with any of the above actions as the foundation may, in its absolute discretion, deem appropriate, necessary, convenient or expedient to undertake, embark upon, engage in or carry on.
This is in no small part due to chairman Joe Zammit Tabona, who made it a personal crusade to reverse the stagnation that saw months and months go by without any new listings.
Like all government-appointed chairmen at election time, Mr Zammit Tabona had his resignation letter ready to hand over to the Prime Minister elect. As soon as he takes office, however, the new Minister of Finance will find on his desk a number of important proposals coming from the Exchange that were temporarily put on hold. One of these proposals deals with legislation similar to that of the Alternative Investments Market, or AIM, in London.
"We are calling it an exchange-regulated market - XRM for short - and it is designed along the same lines as the London model. We would like to attract two or three family-owned companies of good repute. If we convince the first ones, then I think this would set in motion a strong ripple effect," he said.
Would this create a listing environment less rigorous than that for the main market, which is regulated by the Malta Financial Services Authority (MFSA)? He does not think so.
"More emphasis will be placed on the directors and the auditors of the company. They would obviously still need to have all the disclosure requirements in place but they would not require all the usual approvals by the listing authority, as they would be self-regulated.
"This would suit smaller companies. You have to bear in mind that there are many family companies that are now in their fourth or fifth generation, where minority shareholders have no exit route. In most instances, these companies would not have a clear dividend policy so it is really up to the chairman or the managing director to decide whether or not dividends are declared," he explained.
"In many cases the majority shareholder does not control enough funds to buy out the minority shareholders. So what happens? Minority shareholders are offered consideration which does not reflect the real value of their shares, with the result that they end up not selling. Coming to the market gives shareholders the opportunity of raising funds from the public. They would also benefit from fiscal advantages as there is no capital gains tax on transactions in listed securities. At the same time, it creates a market for the shares on the exchange."
Getting more companies listed will give investors more choice - but is this what they really want? After all, there was a decline of 67 per cent in equity trading in 2007, with only 14,000 deals compared to the 30,000 in 2006. (There has been a 10 per cent pick-up in the last two months.)
An important factor which has clearly influenced equity trading on the Exchange was the introduction of an OTC (or off-Exchange) market at the end of January, 2006. Equity volumes traded on this market since then have totaled around €70 million, of which €36 million during the past year.
"Sometimes it is hard to explain price movements in the market, particularly when share prices go down even though companies publish good results and are performing well. At the same time, most IPOs and bond issues are well oversubscribed in the primary market, indicating strong levels of demand which, however, do not emerge in the secondary market.
"The only explanation seems to be that most people still buy to hold even in the equity market. Obviously, the peaks in trading levels touched in 2005 and 2006 contained a certain element of speculation. If you recall, there was the privatisation of MIA and Maltacom, and Bank of Valletta was also being mentioned as a possible candidate at the time. People were speculating then and some speculation is, of course, important for the market," he said.
Do investors think that shares are undervalued on the primary market and will therefore rise rapidly, while there is less or slower growth potential on the secondary market?
"That could also be one reason. But the point is that, if you hang on to shares, you will make a return. I am quite sure that people are getting a good return on their capital from many of the listed companies, and even where no dividends are declared, there is often the potential for growth and capital appreciation."
One possibility - albeit not backed up by any evidence - is that investors are hanging on to their shares because prices have not been rising at the same rates as in 2005 and 2006, when the MSE Index registered record gains.
Mr Zammit Tabona thinks the problem is that there is simply not enough depth in the market.
"The problem is that there is no exit route. If you have a large shareholding, it is not easy to sell a big chunk and you might actually have to split it up," he said.
One solution is to have one or more market makers who would be available to buy the shares on offer. The Exchange has been working on this new development and we are currently in the consultation stage with interested parties before submitting its proposals to the Minister of Finance.
"I would imagine that the two principal banks, HSBC and Bank of Valletta, would be interested in acting as market makers. But I also think that individual stockbroking firms or, indeed, a consortium of firms, might be interested in creating a market-making vehicle, to ensure that they would not find themselves at a disadvantage in the new market environment," he said.
This means that Malta might go from not having any market makers at all to having ones for specific investments, say for a bank, or one for the whole market.
"In actual fact, we are currently talking to OCTQX, an American trading platform which would be able to provide market-making facilities in the US market for our listed companies. Clearly not all these companies would be able to qualify but the larger companies would certainly be able to benefit from this agreement," Mr Zammit Tabona explained.
Another major shift in outlook adopted by the Exchange is that from an essentially inward looking stance to a much wider international context. Just as joining the EU made it that much easier for Maltese investors to invest overseas, it also means that foreigners will find it easier to invest here. In fact, a company listed on the German Stock Exchange, which is currently operating in Malta, is seriously considering getting a secondary listing here.
"Our listing charges make us feasible even for a small company. One local company contemplating a secondary listing in London was faced with a bill of some £2 million. How many of our companies can actually afford such costs?"
Would all this new activity build up the critical mass that might eventually justify the introduction of credit ratings on public issues?
Mr Zammit Tabona was not completely convinced of the need for ratings, pointing out that all companies coming to the market go through a comprehensive diligence process with the listing authority.
"The problem is finding an agency that could offer ratings for a cost that is appropriate for this market. There would certainly be a strong hint of conflict of interest if the MSE itself were to do it," he mused.
"The regulator seems to be keen to create something akin to a capital redemption reserve fund, which would ensure that a company would be able to pay back investors within specified time frames.
"Speaking both as an accountant and as the exchange, I would certainly not agree with this, because if you are actually made to build up a fund, you might as well go to the bank for your financing needs...
"Personally, I don't think there is anything wrong with companies rolling over their corporate bonds. As long as there is security on that particular bond and all the interest is being paid on time, that is as far as we need to go."
So much for its clients. What about the MSE itself? Its privatisation has been on the cards for some time now. In preparation for this, it has been restructured, as Mr Zammit Tabona explained.
"The Stock Exchange was previously set up and governed in terms of the Financial Markets Act, which was amended last October. As a result of these changes, we migrated and set up a group structure under the Companies Act. MSE Holdings - which now owns the premises currently used by the Exchange - has two subsidaries, namely Malta Stock Exchange plc and Central Security Depository Malta plc. The operations of the Exchange have consequently moved from Malta Stock Exchange to Malta Stock Exchange plc.
"With regard to the privatisation of MSE plc, there have been expressions of interest shown by a number of other important European exchanges but everything was put on hold pending the outcome of the general election. It will now be up to the new Minister of Finance to decide on how to proceed."
The Stock Exchange is also looking at new pastures. Exchange officials recently went to Cyprus in order to discuss a new product being offered on the Cyprus Exchange aimed at listing shipping companies.
"We are currently exploring the feasability of setting up something similar in Malta, either jointly with our Cypriot counterparts or on our own steam. Malta ranks fourth in the world for shipping registrations so there could be an opportunity there," he said.
Mr Zammit Tabona also visited the Shanghai Stock Exchange twice and recently hosted at the Exchange a Chinese delegation which included its chairman.
"A memorandum of understanding with Shanghai will soon be signed and this is always a good first step. There are quite a few Chinese companies coming to Europe and Malta, as an EU member, could cater to their needs. It might sound be a bit far-fetched but if there is even a hint of an opportunity..."
Malta ranks well
The Global Financial Centres Index just published by the City of London said Malta was doing extremely well in terms of competitiveness, with very good growth prospects.
This report, the third in a series, ranks 66 financial centres worldwide based on external benchmarking data and current perceptions of competitiveness. Previous GFCI reports and other City of London-commissioned research show that international financial services firms, and the talented staff that they employ, are both highly mobile and responsive to a range of both market and non-market factors.
"It is for this reason that Malta must keep up a constant look-out for its dynamic competitive factors," Mr Zammit Tabona said.
Malta ranked fourth, following Dubai, Shangai and Singapore, as the centre most likely to increase in importance over the next few years. The island classified fifth in the ranking of the Top Financial Centres where organisations may open new operations in the next two to three years. In this respect, Malta's main competitors are Dubai, Luxembourg, Singapore and Mumbai.
The index informs worldwide investors that "Malta... is worth watching as it consolidates its position in the EU after adopting the euro at the beginning of 2008."
The FinanceMalta chairman added: "It is evident that Malta's accession to the European Union, together with the recent membership in the eurozone has given Malta the impetus to rank higher in such an important report."
Other competitive factors included in the report refer to Malta's strategic location in the centre of the Mediterranean, its climate (recently ranked by International Living as the best in the world), its rich heritage and excellent quality of life. Other important assets include the presence of a highly-educated and well-trained labour force, a tax-efficient environment backed up by over 45 double taxation agreements and a strong, yet flexible, single financial services regulatory body. Malta's sophisticated ICT infrastructure but comparatively competitive ancillary labour costs also make the island a very attractive yet cost-effective location.
Branding Malta
FinanceMalta has been doing background work for the past nine months since it was set up but its chairman Joe Zammit Tabona is satisfied that things are now ready to fall into place.
The non-profit, public/private organisation was set up as a foundation to market and promote the financial services industry, both locally and overseas.
At present it has two staff seconded from the Institute of Financial Service Practitioners (IFSP) and another one seconded from the Malta Financial Services Authority (MFSA). The recruitment of two people will be finalised now that the elections are over. Mr Zammit Tabona said that one would be completely devoted to overseas marketing while the other would be in charge of marketing the sector locally and heading the administration of FinanceMalta.
"We really need to have someone going abroad to work on promotion and organise events. The new recruits will make this possible," he said.
Last December, FinanceMalta organised a roadshow in Madrid and Barcelona which coincided with a public holiday and therefore did not have as much impact as it might otherwise have done.
Three events are envisaged for later this year: visits to Sweden and Denmark in the first week of September; one to the UK; and also the possibility of one to China.
"It seems as though the Cabinet would like to entrust FinanceMalta with a build-up towards Shanghai Expo in 2010," he said.
FinanceMalta receives €233,000 a year from government, the intention being for this to be matched by the private sector with anything in excess, in turn, to be matched again by Government.
"We have not been able to raise that much money from the private sector although FinanceMalta membership is well under way and the secondment of the IFSP staff is considered to be a contribution from the private sector," Mr Zammit Tabona explained.
Since its launch, FinanceMalta has set up four expert groups which meet on a regular basis within the FinanceMalta premises in Valletta. The taxation expert group is chaired by Stephen Attard. Anne Marie Tabona chairs the insurance expert group. The pensions group is led by Stuart Fairbairn, while the post of the chairman of the investment funds expert group is still vacant. The foundation is in the process of building up a membership database of all the practitioners, which is displayed in the business directory on the FinanceMalta website. Responsibility for the technical development of the website was recently taken over by the staff of the Malta Stock Exchange.
"We intend to flag the many things that have taken place in the past few weeks, like the update of the double taxation agreement with the US," he said.
The board of FinanceMalta also decided to hold an annual conference, the first of which is being held on May 30. The half-dozen international speakers were organised by MFSA chairman Joe Bannister and will be aimed at keeping local practitioners abreast of recent developments in the financial services sector.
Of course, FinanceMalta is also meant to promote Malta overseas as a centre of excellence for financial services. Many initiatives that were previously organised by MFSA are still taking place but under the new flag of FinanceMalta.
Recently, FinanceMalta teamed up with CountryProfiler, an international media company that specialises in the compilation and publication of business and industry guides and country supplements, with a view to attributing a section in its next issue to a guide on investing in Malta. This publication, which will also include a Malta Business Directory, is expected to be in circulation in mid-April.
Moreover, articles and adverts aimed at promoting Malta as a financial services centre have just been included in reputable international journals such as Newsweek, Captive Review and the Cell Company Handbook.
The aims of Finance Malta
• To coordinate closely with relevant industry players to promote and market regulated and other business areas, such as investment services, mutual funds, trustee services, insurance and banking, and to determine the most appropriate method and manner of doing this;
• to assist practitioners to market the Malta concept and advantages (financial or otherwise) in order to attract foreign direct investment;
• to raise Malta's profile as a quality finance centre, both locally and internationally;
• to implement and refine the brand strategy and road map developed for the financial services industry;
• to promote ownership of the Malta brand among all stakeholders;
• to create business and networking opportunities for firms operating in the sector;
• to promote private sector investment in the industry;
• to feed off success in one area to attract investment from the same entity but in another area;
• to synergise the different investment sub-sectors, pushing them to complement each other rather than compete with each other;
• to build on the expertise and successes of the different investment sub-sectors in order to attract business to the other investment sub-sectors;
• to do all such other things and undertake or carry on any actions that may be ancillary, incidental, related to or connected with any of the above actions as the foundation may, in its absolute discretion, deem appropriate, necessary, convenient or expedient to undertake, embark upon, engage in or carry on.