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FSL Trust Management Pte. Ltd. (“FSLTM”), as
Trustee-Manager of FSL Trust, is responsible for
managing the business and operations of FSL Trust.
Headquartered in Singapore, FSLTM is led by a
highly-experienced team of shipping and finance
professionals, who has an average of more than
15 years of experience in structured finance, ship
financing and the operational and commercial
aspects of the shipping industry.
FSLTM works directly with customers of FSL Trust to
provide the best solutions that meet their needs.
More than15 years
Average number of years of
management experience
TRUSTEE-MANAGER
RISK MANAGEMENT
To better manage our risk profile and maintain
a stable cash flow stream, we have developed
a set of proprietary internal risk management
protocols that enable us to identify and
assess the risks prior to the completion of
any potential transaction, monitor the risks
following the execution of a transaction and
hedge risks associated with the transaction.
Before we enter into a transaction, we assess:
• credit risk, to ascertain the credit strength
of the potential lessee and to ensure
investment returns commensurate with each
lessee’s credit profile;
• asset risk, to determine a vessel’s acceptable
level of residual value based on its asset price,
quality and fungibility; and
• concentration risk, to achieve a balanced
portfolio whilst increasing diversification in
terms of lessee and vessel mix.
Following the completion of each transaction,
we continuously monitor the ongoing risks
through regular review of our lessees’ financial
performance, monitoring their payment conduct,
ensuring that they comply with their relevant
vessel insurance covenants, and keeping track
of the vessels’ condition through annual vessel
inspections.
To manage any interest rate and foreign exchange
risks that may arise from our operations and
sources of financing for our transactions, we may
enter into derivative transactions – principally
interest rate swaps, foreign currency forward
contracts and cross currency swaps. Please
refer to financial statements note 18 for further
information on financial risk management.
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THE GROWING MARITIME ANNUITY