Corporate Governance

Integrity, Commitment, Flexibility and Kindness

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Corporate and Institutional Solutions

Tadaoki Kokusai provides a wide range of capital market products and services to corporate, government and institutional clients who choose us for our knowledge, innovation and experience.

Responsible Investing

We are Japanese asset manager with global reach, seeking to achieve superior risk-adjusted returns for our clients by identifying high-quality, sustainably growing companies through in-depth fundamental analysis.

Corporate Governance

Tadaoki Kokusai aspires to be one of the global leaders in corporate sustainability and responsible investing. We consider that managing the company in accordance with the highest standards of social and environmental responsibility is both ethical and beneficial.

 

Corporate Governance Principles

The corporate governance principles of Tadaoki Kokusai serve as a framework for how we vote proxies and act on behalf of our clients. These principles are founded on positions that we believe help defend the value of the firms in which our clients invest, and we apply them depending on the unique circumstances of each company.

 

Auditors

Investors rely on auditors to vouch for the accuracy of financial accounts, without which the company cannot be fairly assessed. Auditor independence and accuracy are essential, as well as the proper management of any conflicts of interest.

 

Boards of Directors

Boards of directors are trusted by investors to supervise management and respond to legitimate shareholder issues. As a result, director independence, competency and responsiveness are important, and evaluating applicants is a key factor for selection processes.

We expect boards to avoid conflicts of interest that would jeopardize their capacity to fairly represent shareholders' interests and to have the best potential. We believe that competent board members may be found in the wider population. In fact, a high level of uniformity on a board may indicate that the nominating process needs to be improved. Besides issues more commonly associated with corporate governance, responsiveness involves a commitment to address labor, human rights, and environmental issues that are relevant to the business.

We think that board and executive positions should be carefully examined, and that companies should explain their governance arrangements. The positions of chair of the board, CEO, and lead or presiding director are very important in preventing a breach of supervision, and they may be best performed by different people.

 

Executive Compensation

Compensation that is properly structured is crucial for recruiting and maintaining competent corporate management. Compensation that is poorly structured might create improper incentives and lead to the loss of public confidence. Questions about how to evaluate performance and the extent to which management should be rewarded by circumstances outside of their control complicate achieving the optimum remuneration package. As a result, our main concern is to be aware of packages that are outside of widely recognized standards, either in terms of quantity or structure, and that may induce deviant conduct or result in paying for failure.

 

Shareholder Rights

Corporate governance is dependent on shareholder rights and voting structures. While no single structure is appropriate for all businesses, without basic shareholder rights, investors' votes might become ineffective. In particular, we believe that each common share should have one vote in most instances, and that a simple majority of voting shares should be sufficient to achieve change. The opportunity to propose shareholder resolutions is also an important entitlement to us.

 

Environmental and Social Practices

We believe that businesses should follow internationally recognized labor and human rights standards. We tend to be transparent about certain corporate practices, repressive governments, public health, and product safety. It is important to maintain accountability for lobbying and political contributions, and set and report on environmental performance targets related to the firm's long-term strategy.

 

 

Focused on value

Our clients' prosperity fuels our success. By seeking to deliver value and ensure they meet their financial objectives we deliver our own goal of a stable, growing business.

By understanding our clients’ needs, anticipating how these will evolve in the future, and focusing on building wealth for them in the long-term, we remain current, relevant and up-to-date.

At the core of our process is the grounding belief that investors should be compensated for the risks they take – in all market environments and any investment strategy.

At Tadaoki Kokusai, our purpose is to make a difference in the lives of our clients and our associates. We value integrity, commitment, flexibility and kindness.