As an asset manager, we invest the fund entrusted by our clients in listed and public stocks. We bear the responsibilities as a participant of the capital market as well as a fiduciary duty of loyalty which we naturally carry out as a trustee.
In order to fulfill these responsibilities and duties, we place a importance on requiring that the companies held in our portfolios of fully consider their shareholder's interests, and efficientｌｙ utilize their capital.
These "Principles" defines our basic approach to corporate governance for the companies in our portfolios.
What we expect of the publicly listed companies
The function of capital markets is to enable the efficient allocation of capital resources. Therefore all the market participants who benefit from the capital market are supposed to be responsible for maintaining and developing healthy market. Specifically, publicly listed companies are expected to utilize the capital obtained through capital market to a maximum extent and at the same time we are expected to monitor this progress as an investor.
As a consequence, we require companies held in our portfolios to conduct business with respect for shareholder's interests and utilize the capital entrusted to them. In particular, we expect such companies to include the below points in their business objectives and to perform various elements and frameworks related to their corporate governance effectively.
How does the company intend to
- ・Create value added in response to demand and to yield profits in the long term.
- ・Adopt appropriate capital and employment policy and to distribute such policies.
- ・To aid investor's predicting earnings through fair, accurate and timely disclosure.
- ・To conduct themselves ethically as a member of society and to fulfill various social responsibilities including those of environmental issues.
Our approach for monitoring companies held in our portfolios
We expect the invested companies to be managed properly in line with the above listed objectives. If there is any company which does not utilize its capital adequately, we will request improvement measures.
We believe these actions are within our fiduciary duty of loyalty as well as carry out our responsibility as a market participant.
As a part of these actions, we execute our proxy voting rights in line with the principles defined here in.