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You are here : HomeAbout UsResponsible Investment

• About Us
• Executive Statement
• Corporate Outline
• Corporate Principles
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• Assets Under Management
• Responsible Investment

Nomura Asset Management Co., Ltd., including its international subsidiary companies, (hereinafter collectively referred to as “Nomura Asset Management”) has agreed to the basic philosophy behind the United Nations-backed Principles for Responsible Investment (“UN PRI”) and became a signatory to these principles on 1st March 2011.

1. 
   The United Nations-backed Principles for Responsible Investment Initiative (UNPRI) was launched in 2006 by former UN Secretary General Kofi Annan. This initiative comprises the six principles listed below. These principles provide a framework to incorporate environmental, social and corporate governance issues into mainstream investment decision-making. By applying these principles, institutional investors are encouraged to better align their investment activities with broader objectives of society.

   

   • 1.　We will incorporate ESG issues into investment analysis and decision-making processes.
   • 2.　We will be active owners and incorporate ESG issues into our ownership policies and practices.
   • 3.　We will seek appropriate disclosure on ESG issues by the entities in which we invest.
   • 4.　We will promote acceptance and implementation of the Principles within the investment industry.
   • 5.　We will work together to enhance our effectiveness in implementing the Principles.
   • 6.　We will each report on our activities and progress towards implementing the Principles.
2. 
   Nomura Asset Management agrees with the principles and will work towards implementing them within the framework of its fiduciary responsibilities. We believe our investment activities are in line with these principles and will enhance the understanding of the companies in which we invest of the importance of environmental, social and corporate governance (ESG) issues, and will also help to raise enterprise value over the long term. As such, Nomura Asset Management aims to fulfill its social responsibilities as an institutional investor and as a UN PRI signatory.
3. 
   Nomura Asset Management, as a signatory to the UNPRI, has established an ESG committee, which is chaired by the Chief Investment Officer (CIO) and includes representatives from Investment Management and Research, the Client Services, and our Corporate Office. The committee will discuss the company’s key policies relating to ESG issues.
4. 
   Nomura Asset Management believes it is important for companies to manage their business operations with due consideration for shareholders’ interests and to enhance long-term enterprise value. In order to achieve this, it is crucial for a company’s corporate governance (G) to function adequately. As an investment manager, we have established basic corporate governance principles that we look for in companies held within the portfolios that we manage. We monitor the business operations of companies and determine whether they are following these principles.

5. 

   Nomura Asset Management believes that companies can enhance their long-term enterprise value if they judge and act in a proper manner as corporate citizens. The process known as “Compliance Management” works as a premise for companies to make proper judgments and take appropriate action. Aspects of corporate behavior that should be monitored under “Compliance Management” include not only laws and regulations, but also commonly agreed practices, societal norms, and even internal rules and regulations.
   Moreover, we believe that a company’s “proper” efforts in relation to issues that are included within the “ESG” framework, such as global environmental and social issues will lead to enhanced long-term enterprise value.

   

   NAM believes the following requirements should be met for the corporate governance practices of a company to enhance long-term enterprise value:
   

   • 1.　The board consists of an adequate number of directors qualified for rendering proper business judgments and effective functioning.
   • 2.　The statutory auditors and the audit committee are qualified to audit the activities of the business and function effectively.
   • 3.　Where the board of directors has designated committees of the board to carry out specific functions, each committee shall consist of qualified members and operate with independence.
   • 4.　Executive compensation is well balanced and consistent with long-term enterprise value creation, and appropriate management incentives are in place.
   • 5.　Corporate governance systems are in place to ensure sufficient internal controls in terms of compliance and internal auditing.

   

   Nomura Asset Management will request that companies uphold their accountability through timely and proper disclosure in order for us to monitor their corporate governance. We will request sufficient disclosure and explanation as well as corrective measures with respect to any illegal or antisocial activity if any.

   

   Nomura Asset Management will establish dialogue with the companies in which it invests regarding their efforts to manage or improve corporate governance issues. This ongoing dialogue with companies allows us to support their management with the aim of enhancing enterprise value.

   

   Nomura Asset Management will set up a proxy voting policy in a manner consistent with the corporate governance principles stated above. We will vote proxies in accordance with the policy, and are ready to disclose voting results.