Tokio Marine Asset Management and Governance for Owners are planning to launch a Japanese engagement fund which will give institutional investors the opportunity to engagement with Japanese companies to add long-term value.
The TMAM-GO Japan Engagement Fund (Jef) 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 fund will invest in ten to thirty small to mid-cap Japanese companies, with an investment time horizon of three to four 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 Tokio Marine 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 JPY100bn (€0.8bn).
Akiyoshi Oba, chief executive, Tokio Marine Asset Management said: "With poor returns to shareholders over the past 20 years, the Japanese equity market needs a catalyst for change. We believe that the Japan Engagement Fund, combining Gol and GO Japan’s skill in collaborative engagement and Tokio Marine Asset Management’s expertise in Japanese equities, will help spark management and boards at Japanese companies to focus on creating long-term shareholder value."
Jef is a collaborative venture between Tokio Marine AM, Governance for Owners (Gol) and Governance for Owners Japan KK (Go Japan), Gol's Japan-based subsidiary.
Gol is an independent partnership between major financial institutions, shareowners and executives dedicated to adding long-term value for clients by exercising owners’ rights.
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