Responsible Investment
Sustainable and meaningful value for investors and the society.
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How Tadaoki Kokusai Invests Responsibly
Tadaoki Kokusai’s responsible approach to investing is characterized by the following dimensions:
Responsible Investment Screening
The responsible analyst completes a corporate governance checklist when evaluating the potential of a certain company. This is managed in order to ensure that entities with clearly poor governance are excluded from further consideration.
Responsible Investment Selection
- Governance screening: removing securities of poorly governed companies;
- ESG integration: including environmental, social, and governance risk and return considerations within the security selection process;
- Client-directed screening: avoiding securities of companies engaged in activities or practices that do not match with our clients’ preferences;
- ESG benchmarking: ensuring portfolio management based on ESG-influenced market indices chosen by our clients;
- Accountability for ESG incorporation: monitoring and implementing responsible investment policies.
Client-Directed Screening
By all means, we assist our customers - the asset owners - in achieving their investing objectives, which for some include avoiding investments in businesses that contradict their values, principles, or convictions. We manage separate account portfolios to closely match our unconstrained strategy model portfolios while adhering to any client-directed limitations on specific assets.
Responsible Ownership
- Management engagement: interacting with the management teams of companies in which we have invested in order to shape their conduct in the favor of public shareholders, such as our customers, the asset owners, through assessment of ESG concerns that affect anticipated risks and returns;
- Voting: selecting all representatives in the interests of our clients, the asset owners, based on our selecting methodology as well as taking into account clients’ directions;
- Policymaker engagement: supporting the interests of asset owners;
- Responsible investing: offering institutional support to our clients.
We are a global asset manager dedicated to providing better risk-adjusted returns to our customers by discovering high-quality, sustainably developing companies via in-depth fundamental analysis.
Companies that operate with limited consideration for the environment and the communities they serve, or the rules of governance by which they should be supervised on behalf of shareholders, expose to risk their long-term cash flows and share price. As a result, environmental, social, and corporate governance (ESG) aspects are central to our investing strategy.
During our investment selection process, we disregard companies that engage in unsustainable business or seek short-term gains in opposition to long-term development and stability. We think that only companies that can generate significant long-term value may provide real "shared value" for the benefit of society as a whole, as well as shareholders and other direct stakeholders.
ESG Integration
We take into account environmental, social, and governance (ESG) risk aspects when evaluating equities. We determine whether a company can generate high returns based on criteria like competitive advantage, sustainable growth, financial strength, and quality management.
The responsible analyst evaluates the various ESG risk factors for each business under our coverage, assigning a score to indicate the analyst's level of concern about their possible influence on the firm's capacity to expand economically and sustainably.
Accountability for ESG Incorporation
Tadaoki Kokusai's investment process, including our responsible investing standards, is monitored by our Investment Officers. They provide their approval to the aspects of the company's ESG assessment, which is the framework our analysts use to evaluate firms' environmental, social, and governance risks. Our Director and Deputy Director of Research are in charge of making sure that ESG analysis tools and resources are available to analysts and that they are used regularly. Analysts are responsible for the accuracy and thoroughness of their business and industry research, which includes their evaluation of ESG risks for a company's cash flow sustainability. Our ESG analysts support the ESG integration work and report its results to the senior management.
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.
Our fundamental investment process is based on systematic analysis of three vectors: the macroeconomic environment, an assessment of the markets and investor sentiment.
We stay close to our clients to really understand their needs, for both today and down the road. We bring unique solutions to the table followed by flawless execution.