In today’s briefing:
- Is Engagement Functioning Well with The “Engagement-Enhanced Passive” Approach Adopted by GPIF?
Is Engagement Functioning Well with The “Engagement-Enhanced Passive” Approach Adopted by GPIF?
- The GPIF employs a “passive enhanced engagement” approach, which is linked to TOPIX and engages in engagement activities with the portfolio companies. This approach should be examined for any challenges.
- The challenge is whether GPIF’s extremely low management fees can engage in deep engagement with a large number of portfolio companies to reduce tracking error from TOPIX.
- GPIF cites its inability to invest in equities in-house and the huge AUM as reasons for its bias toward passive funds. If this is an obstacle, reform should be considered.
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