Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

Independent Leading Corporate Governance Research

Metrical Inc

METRICAL INC. is an independent leading Corporate Governance research firm in Japan where Corporate Governance is increasingly recognized as an important element on corporate management in these days. Thus, CG research and solutions would become an essential component of global capital markets and play important to contribute to transparency of the markets and maximize shareholders’ value in Japan. 

METRICAL INC. provides Corporate Governance research and analysis including rating services, and  also offers investment research and IR services with solutions and customized profound research on CG and IR issues.

<ul>
<li>I would like to discuss the Nikkei article, "FSA surveyed 37 asset management companies offering ESG-related investment trusts and found that 40% of them have no ESG professionals."</li>
<li>If it's impossible to have a ESG professional, and if a fund called ESG fund is set up because of revenue needs, then perhaps the fees need to be reviewed.</li>
<li>As for ESG wash, since ESG is scheduled to be included in annual securities reports from FY2023, ESG wash of the issuing company is expected to become an issue.</li>
</ul>


I would like to discuss the Nikkei article, "FSA surveyed 37 asset management companies offering ESG-related investment trusts and found that 40% of them have no ESG professionals."
If it's impossible to have a ESG professional, and if a fund called ESG fund is set up because of revenue needs, then perhaps the fees need to be reviewed.
As for ESG wash, since ESG is scheduled to be included in annual securities reports from FY2023, ESG wash of the issuing company is expected to become an issue.


About an Article on Strengthening ESG Fund Monitoring

<ul>
<li>I would like to discuss the Nikkei article, "An increasing number of companies are disclosing their skill matrices, but few explain why those skills are needed by the company."</li>
<li>The reason for the rapid increase in the number of companies disclosing skill matrices over the last year is the addition of Supplemental Principle 4-11-IV in revised Corporate Governance Code.</li>
<li>METI and other in hiring of independent directors, there is a tendency for boards of directors to be composed of individuals who are aligned with the wishes of the president.</li>
</ul>


I would like to discuss the Nikkei article, "An increasing number of companies are disclosing their skill matrices, but few explain why those skills are needed by the company."
The reason for the rapid increase in the number of companies disclosing skill matrices over the last year is the addition of Supplemental Principle 4-11-IV in revised Corporate Governance Code.
METI and other in hiring of independent directors, there is a tendency for boards of directors to be composed of individuals who are aligned with the wishes of the president.


<ul>
<li>I have considered the Nikkei article on "FSA to create 'Code of Conduct' for Institutions evaluating corporate ESG Initiatives by the end of 2022."</li>
<li>FSA will align itself with the moves of regulators around the world who believe that ESG evaluation has become more influential in the market as ESG investing is expanding globally.</li>
<li>Since IOSCO has already set forth specific disclosure items related to ESG evaluation, the FSA will compile these items in a future Council meeting going forward.</li>
</ul>


I have considered the Nikkei article on "FSA to create 'Code of Conduct' for Institutions evaluating corporate ESG Initiatives by the end of 2022."
FSA will align itself with the moves of regulators around the world who believe that ESG evaluation has become more influential in the market as ESG investing is expanding globally.
Since IOSCO has already set forth specific disclosure items related to ESG evaluation, the FSA will compile these items in a future Council meeting going forward.


Japan's Governance: About an Article on the ESG Code of Conduct

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<ul>
<li>Downtrends remain intact for Japan’s TOPIX/Nikkei 225, Hong Kong’s Hang Seng, Europe’s EURO STOXX50, Germany's DAX, China (MCHI-US), and all the MSCI global indexes (ACWI, ACWI ex-US, EM, and EAFE).</li>
<li>The majority of these indexes are in well-defined downtrends; that means when the downtrends eventually reverse, it will be clear and we will be ready to buy/turn bullish.</li>
<li>Relative strength on Japan's TOPIX is reversing topside a 4.5-year downtrend, signaling Japan is emerging as leadership. We highlight buy opportunities in Japan and also in defensive Sectors</li>
</ul>


Downtrends remain intact for Japan’s TOPIX/Nikkei 225, Hong Kong’s Hang Seng, Europe’s EURO STOXX50, Germany's DAX, China (MCHI-US), and all the MSCI global indexes (ACWI, ACWI ex-US, EM, and EAFE).
The majority of these indexes are in well-defined downtrends; that means when the downtrends eventually reverse, it will be clear and we will be ready to buy/turn bullish.
Relative strength on Japan's TOPIX is reversing topside a 4.5-year downtrend, signaling Japan is emerging as leadership. We highlight buy opportunities in Japan and also in defensive Sectors


Japan Emerging as Leadership; Actionable Themes: Japan and Defensives

<ul>
<li>This article will discuss the issues in the Nikkei article on "Support for Activist Countermeasures.”</li>
<li>While % foreign shareholders increased, cross-shareholdings decreased. This coincided with the company's desire to have agenda by the company at AGM and its interest in the real shareholder search service.</li>
<li>Institutional investors have expressed desire for communication with independent directors, but a few companies can respond to such needs. However,  companies will listen to shareholder suggestions, albeit slowly but surely.</li>
</ul>


This article will discuss the issues in the Nikkei article on "Support for Activist Countermeasures.”
While % foreign shareholders increased, cross-shareholdings decreased. This coincided with the company's desire to have agenda by the company at AGM and its interest in the real shareholder search service.
Institutional investors have expressed desire for communication with independent directors, but a few companies can respond to such needs. However,  companies will listen to shareholder suggestions, albeit slowly but surely.


Japan's Governance: About an Article on Support for Activist Countermeasures

Japan

The TOPIX, also known as the Tokyo Stock Price Index, is a capitalization-weighted index of all companies listed on the First Section of the Tokyo Stock Exchange. The index is supplemented by the subindices of the 33 industry sectors. The index calculation excludes temporary issues and preferred stocks, and has a base value of 100 as of January 4, 1968.

TSE Tokyo Price Index TOPIX (TPX INDEX)

About an Article on Strengthening ESG Fund Monitoring

I would like to discuss the Nikkei article, "FSA surveyed 37 asset management companies offering ESG-related investment trusts and found that 40%...

Metrical Inc

About an Article on the Skills Matrix

I would like to discuss the Nikkei article, "An increasing number of companies are disclosing their skill matrices, but few explain why those...

Metrical Inc

Japan's Governance: About an Article on the ESG Code of Conduct

I would like to discuss the issue on the Nikkei article on "FSA to create 'Code of Conduct' for Institutions evaluating corporate ESG Initiatives...

Metrical Inc

Japan Emerging as Leadership; Actionable Themes: Japan and Defensives

Despite the intact downtrend on Japan's TOPIX, relative strength is reversing topside a 4.5-year downtrend; this tells us Japan is emerging as...

Vermilion Research

Japan's Governance: About an Article on Support for Activist Countermeasures

This article will discuss the issue that real shareholder search service is popular among large listed companies. This is likely due to a change in...

Metrical Inc