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.

Let Fujitec's Case Be a Lesson to Companies and Investors in Japan

Activist Investors Have Been Consistent, but Environment Around Companies Has Changed Significantly

Modest ROE Growth Expected to Increase Shareholder Proposals for Higher Shareholder Returns

Who Is More Culpable, "Independent" Directors or or Domestic Institutions that Bias To the Company?

Different Criteria for Exercising Voting Rights for Overseas and Domestic Institutional Investors

Japan's Governance: TOPIX Reform Update (2) - Change in Calculation Method of Floating Share Ratio

Change in Attitude of Domestic Institutional Investors Is Key to Approval of Shareholder Proposal

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>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. </li>
<li>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.</li>
<li>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.</li>
</ul>


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.


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

TSE Tokyo Price Index TOPIX

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