Stewardship Policy

Basic idea about stewardship

Daiwa Asset Management Co. Ltd. (Daiwa AM or "the Company"), as an asset management company, places primary importance on fulfilling our fiduciary duty (duty of loyalty and duty of care) by striving to achieve investment goals to the maximum extent in line with our respective investment objectives, and in accordance with the respective basic policies stipulated under the terms and conditions.

In order to achieve this objective, it is essential not only to select appropriate investment assets including stocks and bonds, but also to improve the medium- to long-term value and sustainability of the investee companies that issue them, and at the same time, to enhance social sustainability.

The Company will be committed to fulfilling our fiduciary responsibilities for asset management business and fulfilling our corporate social responsibilities, through stewardship activities by contributing to the enhancement and the medium-to long-term value and sustainability of investee companies and also contributing to the maintenance of social sustainability.

Organization

From the standpoint of separating fund management from business management, the Company has established the Stewardship Committee, composed of personnel from the Fund Management Division whose roles are related to stewardship activities, under the direction of the Chief Investment Officer (CIO). The Committee determines the policies for stewardship activities and, under the supervision of the Committee, corporate research analysts, fund managers and representatives in charge of corporate governance systematically conduct activities.

In addition, the Stewardship Supervisory Committee (the "Supervisory Committee"), composed of the Outside Directors and the Chief Compliance Officer, who is responsible for managing conflicts of interest, oversees the overall stewardship activities, submits reports to the Board of Directors and recommends improvements to stewardship activities where necessary. More than half of the Supervisory Committee’s membership, including chairperson is comprised of outside directors, thereby ensuring independence in management and execution and fulfilling a governance function.

Activity policy

The Company will conduct stewardship activities based on our fundamental approach as follows;

ESG

  • In constructive dialogue (engagement), the Company will strive to accurately assess the situation of investee companies and share these understandings, as well as to contribute to the enhancement of the medium-to long-term value and sustainability of the investee companies.
  • The Company will have active dialogue based on the "Policy for constructive dialogue", which lays out the standpoints of intensively in-depth dialogue with the investee companies not only on the financial side, but also on the overall status of non-financial aspects.

Constructive dialogue (engagement)

  • In constructive dialogue (engagement), the Company will strive to accurately assess the situation of investee companies and share these understandings, as well as to contribute to the enhancement of the medium-to long-term value and sustainability of the investee companies.
  • The Company will have active dialogue based on the "Policy for constructive dialogue", which lays out the standpoints of intensively in-depth dialogue with the investee companies not only on the financial side, but also on the overall status of non-financial aspects.

Voting rights

  • When exercising voting rights, the Company will consider minority shareholder interest with the aim of improving the medium-to long-term value and sustainability of investee companies.
  • The Company will appropriately exercise our voting rights in accordance with the Criteria, which determines the pros and cons of them and is stipulated under the "DAM’s Proxy Voting Policy."