Daily BriefsJapan

Daily Brief Japan: Toshiba Corp, Tokyo Stock Exchange Tokyo Price Index Topix and more

In today’s briefing:

  • Last Week in Event SPACE: Toshiba, Toyota Industries, Meituan, Kingsoft, Rakuten Bank
  • Passive Funds, Silent Shareholders, Are a Barrier to Corporate Governance

Last Week in Event SPACE: Toshiba, Toyota Industries, Meituan, Kingsoft, Rakuten Bank

By David Blennerhassett


Passive Funds, Silent Shareholders, Are a Barrier to Corporate Governance

By Aki Matsumoto

  • While policy holdings have declined, passive funds have appeared among the top shareholders of many companies. The Bank of Japan’s ETF purchases have accelerated this growth. 
  • The question is whether the passive funds that have appeared as major shareholders in each company are exercising their voting rights on reasonably reasonable basis that fulfills their fiduciary duties.
  • In reality, engagement is limited to a few companies due to the large number of portfolio companies and low management fees.This implies that the same is true for proxy voting.

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