Category: METRICAL

METRICAL: What Investors and Companies Should Do to Make Engagement More Effective ….

2024-12-05 posted by

On June 7, 2024, the Financial Services Agency (FSA) disclosed a document regarding the “Action Program 2024 for Implementing Corporate Governance Reform.” I would like to provide an overview of “Substantiation of Stewardship Activities” in this document below and discuss the points raised in this document.

Substantiation of stewardship activities
Issues:
⚫It is pointed out that formal dialogues, such as checking boxes, are conducted, and that dialogues with constructive objectives based on a deep understanding of the portfolio company and two-way dialogues are not being conducted. Regarding collaborative engagement, it is also pointed out that it is important not only to collaborate but also to have meaningful dialogues focused on specific themes.
⚫It is also pointed out that effective engagement that integrates dialogue and exercise of voting rights is not being conducted, for example, because the divisions in charge of dialogue, exercise of voting rights, and investment management are separated and do not work together sufficiently.
⚫The report also pointed out that the authorities need to inspect actual efforts to comply with the Stewardship Code, since compliance with the Code has not been verified.

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METRICAL: CG Stock Performance (Japan): September 2024

2024-10-01 posted by
September stock market was seen as a back-and-forth market, but a sell-off prevailed on the last trading day of the month, as investors were cautious about sooner-than-expected interest rates hike due to the launch of the new Ishiba administration.
In September, the CG Top 20 stock market outperformed both TOPIX and JPX400 for the fifth consecutive month.

The Japanese stock market, which had fallen until the middle of the month on fears of an early BOJ rate hike, recovered from the optimistic mood toward the end of the month, buoyed by the U.S. stock stocks rally and weaker yen, triggered by a large rate cut by the U.S. Fed. Later, the Japanese stocks fell back as sell-offs were triggered by the new Ishiba administration and the yen’s appreciation on the back of fears of an early rise in interest rates.

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METRICAL: CG Top20 Stock Performance of Japan vs. TOPIX (June2024)

2024-07-04 posted by

In June, the stock market was pushed down in the middle of the month amid the lack of active buyers, but recovered and closed higher at the end of the month.

However, the stock market fell sharply in the middle of the month due to speculation that a certain financial institution, which had suffered heavy losses from its investment in foreign bonds, had conducted an operation to sell passive equity funds to take profits. The stock market then calmed down toward the end of the month and closed slightly higher than at the end of the previous month.
The TOPIX and JPX400 indexes gained 1.40% and 1.63%, respectively, in May, while the CG Top 20 index outperformed significantly both indices up by 2.04%.

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【METRICAL】Companies Are Finally at the Starting Line of Taking the First Steps to Improve ROE

2024-02-02 posted by

On October 26, 2023, the TSE released the “Publication of the List of Disclosed Companies Regarding “Measures to Achieve Management Conscious of Cost of Capital and Stock Prices.” I would like to provide an overview of this document below and consider the issues it discusses.

1. Future initiatives regarding “measures to realize management conscious of cost of capital and stock price”
Publication of the list of disclosing companies, and re-communication of the purpose and points to be noted.
 Publication of a list of companies disclosing information in accordance with the request, with a view to informing investors of the status of companies that are taking steps to comply and to encourage their efforts.　The list will be published on January 15, 2024, and will be updated monthly.

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