News
07/07/2009
USS joins GO's Japan Engagement Consortium
Governance for Owners is delighted to announce that the Universities Superannuation Scheme, the second largest pension fund in the UK and a long-standing proponent of responsible investment, has become a member of the Japan Engagement Consortium (JEC).
Last December, Tokio Marine Asset Management (TMAM) and GO announced the launch of the JEC. The JEC is a partnership of responsible Japanese and international institutional shareholders on whose behalf the Consortium executives engage with Japanese companies to improve long term shareholder returns. The initial Consortium members were TMAM and Railpen Investments of the UK.
The Consortium is Japanese-led and engagements are conducted in a way that is appropriate to the Japanese market. The Consortium conducts its engagements in private and in a constructive manner, supporting management of companies to make the changes necessary to enhance long term value. At any one time, it is expected that the JEC executives will be engaging with 15 to 20 companies on behalf of the Consortium members. The types of performance factors on which an engagement might be conducted include financial performance, capital structures, communication and investor relations, and corporate governance.
Peter Moon, USS’s Chief Investment Officer, said “The opportunity for share owners to engage constructively in Japan, in private, and with long term objectives is enormous. It is a real strength to be able to do so in partnership with the JEC whose Japanese professionals can clearly explain our concerns and can support our in-house responsible investment team and portfolio managers in their relationships with investee companies.”
Peter Butler, GO’s CEO, said “This is a very exciting step in the development of the Japan Engagement Consortium. USS’ enthusiasm for this partnership style of co-sourcing and their in-house team’s experience in encouraging good governance practices at portfolio companies brings an extra dimension to the Consortium.”
ENDS
For further information contact:
Robin Hindle Fisher, GO London, + 44 (0)20 7614 4750
Toshi Oguchi, GO Tokyo, + 81 (0)3 5403 4785
Andrew Fleming, Penrose, + 44 (0)20 7786 4823
Notes to Editors:
1. Universities Superannuation Scheme (USS) is the second largest pension fund in the United Kingdom and the principal pension scheme of UK universities, acting for 378 universities and academic institutions. It has in excess of £23 billion in assets as of December 31st, and approximately 250,000 members.
USS’ responsible investment approach is one of engagement and integration, not exclusion. The scheme has a team of five professionals focused on engaging with USS’ investments on issues including corporate governance, environmental performance and other extra financial factors. USS has initiated and participates in a number of collaborative investor projects covering issues as diverse as climate change and the Pharma business model, to US corporate governance and executive remuneration.
2. Tokio Marine Asset Management (TMAM), one of the largest discretionary investment advisors in Japan, 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.
3. 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. The GO European Focus Fund, which invests in European public companies where value can be added through making use of ownership rights. The GO Stewardship Services offers intelligent voting and engagement on quoted companies in Europe, the US, Japan, and South East Asia.
4. The Japan Engagement Consortium (JEC) is operated by GO Japan KK, GO’s Japanese subsidiary which was founded in 2007 and in which TMAM has a 40% stake. GO Japan provides stewardship services and corporate governance advice to shareowners in publicly quoted Japanese companies and fund managers with Japanese investments. The JEC is an extension of these activities. GO Japan has offices in Tokyo and is led by Resident Executive Director Toshiaki Oguchi who has more than 20 years business experience in Japan, US and UK. Working with Toshi is Tomishi Ishida, an investment analyst with over twelve years investment experience. Recruitment is underway for an additional investment and governance analyst. The full time team is supported by an Advisory Committee of leading Japanese industrialists and public figures who provide insights into existing and potential engagements and act as a check and balance over the engagement process. An international user group, chaired by Railpen’s Head of Governance Frank Curtiss, co-ordinates input into the JEC’s activities.