STATUS OF OUR STEWARDSHIP
1. Our Stewardship Activities
As a responsible institutional investor, we shall conduct stewardship activities, including engagement and proxy voting, with a view to enhancing medium-to-long-term corporate value. Through our stewardship activities, we will enhance the medium-to-long-term investment returns for clients (beneficiaries). Moreover, we shall conduct our activities with strong consideration for environmental, social, and governance (ESG) matters which are referred to in international initiatives such as Principles for Responsible Investment (PRI) and the United Nations Global Compact, to which we are a signatory.
2. Engagement Guidelines at SuMi TRUST
In accordance with Principles 3 and 4 of Stewardship Code, we will comply with the guidelines below and engage with companies as part of our stewardship activities. The revision or abolition of this guideline will be implemented after a final decision made by the Officer in charge of Fiduciary Services Business.
- We, as a responsible institutional investor, shall engage with companies with the view to enhancing corporate values and encourage sustainable growth subject to Japan’s Stewardship Code to which we have announced our commitment, in order to enhance long-term investment returns for our clients (beneficiaries).
- The targeted companies are investee companies that are managed through our investment funds. Based on analysis including corporate strategy, business performance, capital structure and risk (including social and environmental risk), we will engage with companies for higher corporate value and sustainable growth.
- As it is imperative to understand the exact nature of the situation and status, we shall make every effort to study and understand the governance, capital structure, business strategy and risk management of companies prior to any engagement.
- We are mindful not to obtain any material or insider information through engagement. Where there are risks of exposure, we will abide by our internal guidelines and procedures accordingly.
- We shall engage primarily with investee companies’ management. Through an all-encompassing engagement process, we shall build trust and share our views on issues concerned.
- Comments made to companies by SuMi Trust during engagement shall be conducive to improvement in corporate value, as well as to sustainable growth, and must not be deemed as “acts of making an important proposal” as defined in the Financial Instruments and Exchange Law.
- All comments made by both SuMi TRUST and the company shall be briefly and transparently documented. Furthermore, we shall monitor through publicly available information, the effectiveness of engagements by subsequent corporate actions taken towards enhancing its corporate value and sustainable growth.
- Engagement activities shall initially be reported to the Stewardship Meeting and shall be appropriately reported to clients (beneficiaries).