Independent Leading Corporate Governance Research

Metrical Inc

METRICAL INC. is an independent leading Corporate Governance research firm in Japan where Corporate Governance is increasingly recognized as an important element on corporate management in these days. Thus, CG research and solutions would become an essential component of global capital markets and play important to contribute to transparency of the markets and maximize shareholders’ value in Japan. 

METRICAL INC. provides Corporate Governance research and analysis including rating services, and  also offers investment research and IR services with solutions and customized profound research on CG and IR issues.

The Number of TOPIX Components Should Be More Reduced to Raise the Quality of Engagement, Though

Market Shakeout Should Come with Business Portfolio Restructuring Especially for Small-Cap Companies

Nominating Committee Is Becoming More Active in a Few Companies, but No Sign yet of Spreading to All

Expanding Nominal Profits from Shift from Deflation Rather than P/B Is the Driver of Stock Prices

Diversity Is a Goal of Effort Left to a Company with a Sideways Eye on the Government's Seriousness

Even if Proper Nomination Process Is Skipped, It May Be Considered Better than Zero Women Directors

Limited Number of Business Types with Great Opportunities for Women Is at Heart of the Problem

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>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.</li>
<li>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.</li>
<li>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.</li>
</ul>


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.


Is Engagement Functioning Well with The "Engagement-Enhanced Passive" Approach Adopted by GPIF?

TSE Tokyo Price Index TOPIX

Is Engagement Functioning Well with The "Engagement-Enhanced Passive" Approach Adopted by GPIF?