Strategy

Our objective is to continue to deliver a Total Shareholder Return outperforming our reference index, the market sectors, over the long term through the increase in the net asset value and an attractive dividend yield.

With the initiation of the portfolio rebalancing strategy, Berkeley Commerce will outperform its reference index points in terms of annualized Total Shareholder Return (“TSR”).

The TSR will be analyzed on a risk-adjusted basis, taking into account the high quality and the strong creditworthiness of Berkeley Commerce’s portfolio assets.

Delivering continuous and sustainable growth of our intrinsic value over the long term

Growth of intrinsic value is pursued by Berkeley Commerce through efficient portfolio management leading to value creation over the long term.

With the initiation of the re-balancing strategy in 2020, Berkeley Commerce’s net asset value will increase year over year to support the Total Shareholder Return over the same periods.

Maintaining continued dividend growth and an attractive dividend yield over the long term

Berkeley Commerce’s dividend policy is to deliver stable or gradually increasing dividends over time.

Over the next 15 years, Berkeley Commerce will

• double its gross dividend per share, which will correspond to a CAGR percentage over this period; and
• return increased distributions to its shareholders.

Distributed reserves amount will be calculated annually.

Our strategic management:

Berkeley Commerce’s strategic management consist of (4) four basic phases:

Analysis

Our objective is where the creation of understanding the current internal and external environments is developed.

• Whether the business can meet corporate targets for profitability and return on investment.
• Whether the new business will require substantial infusions of capital to replace fixed assets, fund expansion, and provide working capital.
• Whether the business is in the industry with significant growth potential.
• Whether the business is big enough to contribute significantly to the parent firm’s bottom line.
• The potential for union difficulties or adverse government regulations concerning product safety or the environment.
• Industry vulnerability to the recession, inflation, high-interest rates, or shifts in government policy.

Strategy formation

Our objective is where high-level strategy is developed and a basic organization level strategic plan is documented.

• Companies whose assets are “undervalued.”
• Companies that are financially distressed.
• Companies that have bright growth prospects but are short on investment capital.

Strategy execution

Our objective is the high-level plan is translated into more operational planning and action items

• Business risk is scattered over a variety of industries, making the company less dependent on any specific business.
• Capital resources can be invested in whatever industries offer the best profit prospects.
• Cash from businesses with lower profit prospects can be diverted to acquiring and expanding businesses with higher growth and profit potentials.
• Corporate financial resources are thus employed to maximum advantage.
• Company profitability is somewhat more stable because hard times in one industry may be partially offset by good time in another.
• To the extent that we are astute at spotting bargain-priced companies with big upside profit potential, our wealth can be enhanced.

Evaluation

Our objective is ongoing refinement and evaluation of performance, culture, communications, data reporting, and other strategic management issues occurs.

• Take control positions or, where appropriate, meaningful minority stakes in quality companies that are well-positioned in their respective industries.
• Compete in industries that have attractive organic and add-on Mergers & Acquisitions growth opportunities.
• Ability to leverage operational expertise from a track record of growing industry-leading companies in a variety of industries.
• Direct representation and actively interface with company management.
• Pursue liquidity events, including public offerings, sales to third parties, or spin-offs at the appropriate time given each investment’s unique attributes, but typically within a few years of the initial ownership.