20 April, 2021

Origins of investor stewardship and the Japan code

Abenomics brought a host of changes to Japan, not least the introduction of a new stewardship code for investors. The code is now being updated with new guidance, explains Kerrie Waring of the ICGN.

Image: Shutterstock

Stewardship is not a new concept. The seminal 1992 Cadbury Report recommended that investors should disclose their policies on the use of their voting rights. This was drawn from the UK’s Institutional Shareholders’ Committee (ISC) Guidance, which encouraged company engagement and voting—cornerstone principles of stewardship codes today. The 1998 Committee on Corporate Governance, chaired by Ronnie Hampel, recommended that “pension fund trustees should encourage fund managers to take a long view in managing their investments” and to make considered use of their votes. This, together with the Cadbury recommendations, then served a

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