Comment by Nicholas Benes: This informal coalition that seems to be coming into being between the GPIF, CalSTRS, and CalPERS could be a big step ahead in terms increasing the effectiveness of engagement and voting (whether direct or indirect) by not only these organizations, but also their fund managers and other market players. Kudos to all three institutions, and also Mr. Mizuno, for moving in this direction.
Quote: ”Japanese corporations will be under increased scrutiny by institutional investors to improve corporate governance if an informal agreement made Wednesday by the top investment officials of the $186.8 billion California State Teachers’ Retirement System and Japan’s $1.3 trillion Government Pension Investment Fund becomes a reality.
At a panel Wednesday at the Milken Institute Global Conference in Beverly Hills, Calif., Christopher J. Ailman, CalSTRS’ chief investment officer, asked Hiromichi Mizuno, GPIF’s CIO, if he would join together to form a coalition between the two plans to address governance concerns.
Mr. Mizuno agreed, and Mr. Ailman said he would also bring Theodore Eliopoulos, CIO of the $293.6 billion California Public Employees’ Retirement System, Sacramento, into the fold to join the coalition.
Mr. Ailman said Japanese companies had been slower than their U.S. counterparts in improving board governance, and in their response to environmental and social concerns……”
Read full article here.
Source: Pensions and Investment.
The Board Director Training Institute (BDTI) is a “public interest” nonprofit in Japan dedicated to training about directorship, corporate governance, and related management techniques. It is certified by the Japanese government to conduct these activities as a regulated nonprofit. Read a summary about BDTI here, and see a menu of its services for both corporations and investors here.