TOKYO Dec 26 Japan is preparing to unveil a set
of recommendations for institutional investors designed to boost
returns, transparency and corporate governance, sources familiar
with the situation said on Thursday.
The voluntary guidelines call on investors to disclose how
they vote at shareholder meetings and to engage more actively
with companies to help raise medium- to long-term investment
returns. Billed the 'Japanese Stewardship Code', the
recommendations will be made public later on Thursday, sources
The recommendations apply to both non-Japanese and domestic
institutions. The latter include life insurers and the GPIF
national pension fund, which controls $1.2 trillion of assets,
said the sources, who were not authorised to discuss the matter
The code was drawn up by a panel of experts set up as part
of Prime Minister Shinzo Abe's drive to stoke economic growth,
and was inspired by a similar set of guidelines introduced in
Britain in 2010.
The U.K. Stewardship Code was conceived in the wake of the
global financial crisis in 2008, when many institutional
investors were criticised for not monitoring more closely the
management of companies they owned.