Wall Street Journal (February 25)
The Wall Street Journal applauds a new chapter of shareholder engagement. “After two decades of disappointing market performance, some Japanese institutional investors finally appear ready to reinvent themselves as advocates of higher shareholder returns and improved corporate governance.” The catalyst for the story is the new fund being established by Tokio Marine Asset Management Co. and U.K.-based investment group Governance for Owners LLP (GO), which represents several large overseas pension funds. Beginning in April, the new fund will invest up to 100 billion yen in 10-30 small- and mid-cap companies with the aim of improving governance at the firms. In contrast to Steel Partners and other highly publicized activists of recent years, the new venture seeks to raise long-term value using a Japanese approach to engagement through dialogue.
Tags: Activists, Engagement, Governance, Japan, Shareholder
