“CalPERS’Engagement List – Focusing on Japan”

(Enhanced Focus List PPT – http://bit.ly/1HmE7nn  See pages 7, 12-14)  
Memo 9-15 : http://bit.ly/1HmE7nn

ITEM NAME: Corporate Engagement: Enhanced Focus List Strategy
PROGRAM: Global Governance and Global Equity
ITEM TYPE: Total Fund – Information

EXECUTIVE SUMMARY

The purpose of this item is to provide an update on work to enhance the Focus List Program (Program). In November 2014, the Investment Committee (Committee) approved the Enhanced Program which provides for greater scale and impact while leveraging partnerships with CalPERS’ external equity managers.

In early 2015, Japan was selected for a concentrated market engagement. The rationale for this engagement is that Japan is CalPERS’ second largest investment market and there is an opportunity due to recent market governance reforms, our history of activity, poor capital efficiency relative to other developed markets, and increasing foreign ownership.

In spring 2015, staff carried out initial in-person company meetings in Japan with Executive Management and company Board Members to assess potential. Subsequently, staff followed up with each company by letter requesting specific governance reforms. Company responses are pending.

Staff intends to report back to the Committee in 2016, with progress of the company engagements in a case study format.

Attachment 1 provides an Enhanced Focus List implementation update in greater detail.

STRATEGIC PLAN

This item supports the CalPERS Strategic Plan goal to improve long-term pension and health benefit sustainability. The Program is an investment strategy which aims to improve the risk-return profile of the CalPERS Total Fund by enhancing sustainable value creation through improvement of financial, physical, and human capital management practices at engaged companies.

This item supports the following CalPERS’ Investment Beliefs:
Investment Belief 2, regarding the responsibility and advantage of a long-term investment horizon and the sub-beliefs which require that CalPERS encourage companies and external managers to consider the long-term impact of their actions.

Agenda Item 7a
Investment Committee
September 15, 2015
Page 2 of 4

Investment Belief 4, that long-term value creation requires effective management of three forms of capital: financial, physical and human.

Investment Belief 6, specifically the sub-belief that CalPERS will consider investment strategies if they have the potential to have a material impact on portfolio risk and return.

Corporate Engagement Enhanced Focus List
Program Strategy Update

http://bit.ly/1HmE7nn

 

 

BDTIについて BDTIでは、取締役や監査役など役員として、また業務執行役、部長など役員を支える立場の方としての基本的な能力を身に着けるための役員研修「国際ガバナンス塾」を定期的に開催しています。(オーダーメイド役員研修も、承っております。)また、「会社法」「金商法」「コーポレートガバナンス」の基礎をオンラインで学べる低価格のeラーニングコースを提供しています。詳細はこちらから。講座の概要は以下の通りです。

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