“Japan’s Stewardship Code” Announced

Date Posted: April 10, 2014

機関投資家が適切な受託者責任を果たすための諸原則

On February 26, 2014, the Financial Services Agency’s experts meeting announced “Japan’s Stewardship Code,” part of the Abenomics strategy to help realize Japanese companies’ sustainable growth through dialogue with investors. Japan’s Stewardship Code is built on the principle that institutional investors will conduct constructive dialogue with companies and appropriately fulfill fiduciary responsibilities, and its purpose is to assist companies in increasing their value through IR-based communications with institutional investors managing pensions, insurance funds, etc.

Japan is the first of the world’s developed nations to deal with an aging society. It also has the largest national debt to GDP. It is essential to overcome these barriers to sustainable economic growth. The holders of the majority of stocks in Japanese companies are foreign investors, and as such Japanese companies’ growth hinges on successful IR management that goes above and beyond just providing the lowest legal benchmark of IR possible. It is an urgent necessity for Japanese society as a whole that institutional investment managers fulfill their fiduciary responsibilities and that corporate managers fulfill their management and fiduciary responsibilities to stockholders. In the new Stewardship Code, the responsibilities of companies and of institutional investors are described as being “inseparable.”

SGIM Representative Director, Masaki Kai

Translated and edited by Transpacific Enterprises

Reference
PDF of Japan’s Stewardship Code