Daily BriefsESG

Daily Brief ESG: Stricter Voting Criteria for Domestic Asset Managers May Aim to Enhance Value Through Engagement and more

In today’s briefing:

  • Stricter Voting Criteria for Domestic Asset Managers May Aim to Enhance Value Through Engagement


Stricter Voting Criteria for Domestic Asset Managers May Aim to Enhance Value Through Engagement

By Aki Matsumoto

  • Stricter voting standards for domestic investment managers seem aimed at increasing value through engagement for companies that show little improvement in efforts to improve stock price and return on capital.
  • Stricter voting standards for policy shareholding ratios of domestic investment management companies are expected to push companies to consider reducing cross-shareholdings. Reference to deemed shareholdings is also commendable.
  • Since engagement of overseas investors has been effective in increasing value of companies, engagement by Japanese investment managers more seriously than before will contribute to enhancing the value of companies.

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