What’s an Investment Proposition and Why Your Annual Report Should Have One.

An investment proposition answers the most critical question a reader can ask:

Why should I invest in your company or donate to your non-profit?

The purpose of an investment proposition is to delineate the key factors that make your organization an attractive investment or donation choice relative to other options.

It does this by translating things like performance metrics, accomplishments, and non-financial factors into bulleted reasons why your company or non-profit is their best choice. And presents them in a clear, uncluttered way.

It’s not complicated. That would defeat its purpose. It’s simply a highlighted section that can be tucked into a letter or sidebar.  

Some examples of its content are:

·       Competitive advantages of your business model

·       Dividend history

·       Share price history

·       Sustainability of revenue generation

·       Balance sheet stability

·       Long-term strategy, positioning, and market share

·       Future growth prospects

·       Risk management and appetite

Here’s the investment proposition I incorporated into CapitaLand Malaysian Trust’s 2024 Unitholder Letter:

Sample investment proposition