Tokio Marine Asset Management and Governance for Owners LLP announce launch of Japan Engagement Fund
Earlier this year, Tokio Marine Asset Management (TMAM) and Governance for Owners LLP (GO) announced their intention to launch the TMAM-GO Japan Engagement Fund (JEF). The fund will invest in underachieving quoted companies in Japan and engage with management and boards by utilising a 'Japanese way' of engagement to improve long-term performance.
The JEF is a collaborative venture between TMAM, GO and Governance for Owners Japan KK (GO Japan. The fund will invest in 10-30 small to mid-cap Japanese companies, with an investment time horizon of 3-4 years, and aims to be a leading shareholder in each firm. It is a pooled fund which will allow institutional investors in Japan and internationally to co-operate in helping to add long-term value to Japanese companies. A major client of TMAM intends to invest at launch and discussions are beginning with a number of other potential investors. The fund has the potential to grow over time to JPY100 billion (US$1.2billion).
A full team of Japanese executives has been assembled to manage the JEF and it will have additional support from an Advisory Committee comprising leading Japanese industrialists and executives.
Further details about the fund can be found here.
Further information about Tokio Marine Asset Management can be found on their website
Tokio Marine Asset Management (TMAM) was established in 1985 and is a principal subsidiary of Tokio Marine & Nichido Fire Insurance Co., Ltd., the largest non-life insurance company in Japan. TMAM provides investment management and client services to numerous Japanese public and corporate pensions, as well as other institutional investors and corporate entities. As of 31 December 2010, TMAM was the 7th largest discretionary investment advisory firm in Japan, in terms of Japanese discretionary pension fund assets under management.
Governance for Owners (GO) is an independent partnership between major financial institutions, shareowners and executives dedicated to adding long-term value for clients by exercising owners’ rights. There are two main product offerings – GO European Focus Fund, which invests in European public companies where value can be added through making use of ownership rights, and GO Stewardship Services, which offers intelligent voting and engagement on quoted companies worldwide. GO has offices in London, Tokyo and New York.
Governance for Owners Japan KK (GO Japan) is GO’s Japan-based subsidiary. It was founded in 2007 and TMAM acquired a 40% stake in November 2008. The company provides stewardship services and corporate governance advice to shareowners in publicly quoted Japanese companies and fund managers with Japanese investments. The Japan Engagement Consortium, which has led the way in constructive dialogue with companies in a “Japanese way,” forms a core part of these activities.
Advisory Committee
The Advisory Committee that has played an instrumental role in helping the Japan Engagement Consortium to develop a Japanese way of engagement over the past two years will also advise the JEF. The Advisory Committee comprises a group of highly experienced Japanese industrialists, investors and business practitioners with diverse backgrounds, skills and networks. The principal function of the Advisory Committee is to help remove barriers and build credibility with the companies with which engagements will be conducted, and provide insights into existing and potential engagements.