Investment Charter

The Investment Charter concerns the first element of the activities of SFPI/FPIM. The two other elements, notably the role of public holding and the transactions performed on behalf of the State « in delegated mission », are the object of separate documents and are not published.

1. Context

SFPI/FPIM is a limited company of public interest, the capital of which is 100% held by the State. SFPI/FPIM results from the merger of the Société fédérale d’Investissement/Federale Investeringsmaatschappij and the Société fédérale de Participations/Federale Participatiemaatschappij.

One of the objectives of this merger was to reinforce the efficiency and the coherence of the investment policy of the State through the development of a proactive policy in this respect by SFPI/FPIM.

To this end, the SFPI/FPIM, established an investment charter that defines the framework of each investment of SFPI/FPIM and determines the applicable conditions on the basis of which SFPI/FPIM makes an investment and evaluates, manages as well as monitors such investment.

The aim of the charter is, in the framework of the investment activity of SFPI/FPIM, to improve the efficiency and the coherence of these investments on the basis of:

  1. an identification of the sectors that are considered to be strategic, of the objectives and of the investment criteria;
  2. an improved definition of the role of SFPI/FPIM and of its relationships with its private partners; and
  3. a clearer organization of the chain of responsibilities in the decision-making process.

Every four years and each time when necessary, SFPI/FPIM carries out an evaluation of the objectives, of the strategy and of its implementation, as well as an evaluation of the functioning of the procedures set up by the Charter.

SFPI/FPIM focuses, in consultation with its shareholder, on investments in certain strategic sectors, namely:

  • aviation and airports;
  • real estate;
  • innovation;
  • international investment funds;
  • infrastructure;
  • sustainability;
  • and networks.

2. Investment criteria

In the framework of its investments in the above mentioned sectors, SFPI/FPIM always strikes a proper balance between the financial and social aspects of the files that are submitted to it. Moreover, SFPI/FPIM attaches great importance to compliance with the rules of corporate governance.

Ideally, these objectives should converge but the balance of the interests between the financial constraints and the societal objectives in the medium and in the long term require that delicate choices be made, taking account of the general objectives of SFPI/FPIM: the mission SFPI/FPIM, which distinguishes it from other economic players in this respect, is to find a clear and responsible balance between these objectives.

2.1. Profitability

The profitability of the investment shall evidently constitute an important aspect of the investment decision. In this respect, the following criteria shall, amongst others, be taken into account:

  • a clear strategy;
  • details and credibility of the forecasts of the entity over three (3) to five (5) years, in the way they are inserted in the financial plan to be submitted to SFPI/FPIM;
  • balance structure in accordance with the market practices;
  • application of the rules of good individual, financial and commercial management;
  • attainment of a normal profitability;
  • dividend policy in the short, medium and long term.

2.2. Social added-value

The objective of profitability must however be qualified in view of the social responsibility of SFPI/FPIM.

The following societal criteria are taken into consideration when evaluating a potential investment:

  • social benefit of the goods and services produced;
  • aspects relating to employment;
  • compliance with the legislation and with the general regulations;
  • ethical aspects: attention given to the ethics, approval of codes of good practices and actual compliance with these codes;
  • compliance with the environmental aspects, such as the engagement in the protection of the environment and the application of the principle of precaution when facing the environmental problems or also rational management of energy;
  • aspects relating to the respect for human rights of people affected by the activities of the entity;
  • aspects relating to the consumer’s rights.

2.3. Corporate governance

Finally, SFPI/FPIM intends, in the implementation of its policy on investments, to be guided by and intends to see to it that the entities concerned are guided by the principles of corporate governance.

In order to ensure that its various administrative bodies assume their responsibility with regards to the developed project, each entity in which an investment is made, is asked to implement certain principles of good management through adoption, as appropriate, of internal ad hoc rules or codes, principles of governance on the basis of clear and precise operational rules as well as the transparency of these rules and of the information, and comply with these principles.

In order to be able to participate in the industrial, financial and commercial management of the entity in which SFPI/FPIM invests, and in order to plan the necessary follow-up, SFPI/FPIM also wishes to be represented by at least one person in the administrative body of the entity.

3. Evaluation file

The entity in which SFPI/FPIM intends to invest will be asked to prepare a complete file in which in each case the following points shall have to be specified:

  • presentation of the entity, of its partners and its managers;
  • financial plan over five years and specific remarks on the way in which the economic criteria will be met;
  • way in which the entity takes into account the social aspects;
  • organization of the corporate governance and explanation regarding the specific features of the entity that justify to deviate from certain principles or to modify their application.

This file is prepared in six copies and submitted to the managing director of SFPI/FPIM, after which the strategic committee of SFPI/FPIM shall formulate an advisory opinion on the file. The final decision rests with the board of directors.

Neither the Charter nor this communication create legal obligations for SFPI/FPIM, for its directors or for its managers that are additional to those arising from the applicable legal texts and cannot in any way be interpreted in this way.

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