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Overview of Stewardship Activities and Self-Assessment for 2025

Asset Management One, located in Chiyoda-ku, Tokyo, under the leadership of its President, Noriyuki Sugihara, is actively engaging in stewardship activities aimed at fostering sustainable growth and enhancing corporate value in its investee companies. In 2025, the firm aims to expand its clients' medium- and long-term investment returns through these endeavors.

The company has conducted self-assessments based on the principles and guidelines outlined in the Stewardship Code. The content and outcomes of these self-assessments have been rigorously validated by the Stewardship Promotion Committee, established within the management policy committees.

Detailed Self-Assessment by Principles

The detailed self-assessment for each principle can be reviewed via the following link: 2025 Stewardship Activities Self-Assessment. Below are highlights from the self-assessment according to each principle:

Principle 1: Formulation and Disclosure of Policies

Self-Assessment: Based on the "Stewardship Activities Medium- to Long-Term Roadmap," guidelines for exercising voting rights have been revised. The firm proactively disclosed changes ahead of the April 2027 upgrades to improve predictability for investee companies and promote better governance. In addition, through enhancements in information disclosure on the website and issuing the "Sustainability Report 2025," the company believes it successfully communicated its commitment to responsible investment.
Future Challenges: There is recognition that further clarity in disseminating information to diverse stakeholders in the investment chain is necessary.

Principle 2: Management of Conflicts of Interest

Self-Assessment: Adhering to a strict management system based on conflict-of-interest management policies, appropriate proposal assessments were conducted with measures like information barriers and compliance monitoring.
Future Challenges: Continued reinforcement of policy transparency on the company’s website along with strict adherence and monitoring by compliance officers is planned.

Principle 3: Understanding Investee Companies’ Situations

Self-Assessment: Collaboration among analysts, fund managers, and voting rights personnel has improved the understanding of investee companies, both financial and non-financial. Enhanced tracking through the development of a stock information platform was made.
Future Challenges: Elevating engagement KPIs and deepening financial and non-financial connections need attention.

Principle 4: Engagement with Investee Companies

Self-Assessment: The focus on impactful engagement has facilitated meaningful dialogues aimed at long-term value creation. Initiatives like cooperation with impact funds and collaborative engagement for climate action have been implemented, showcasing strategy and effectiveness in engagement efforts.
Future Challenges: More precise analysis of engagement effects is imperative.

Principle 5: Voting Rights Exercise

Self-Assessment: A comprehensive approach to voting rights assemblies and constructive dialogue with shareholder proposers ensured integration of voting rights exercise with engagement strategies, raising both transparency and predictability.
Future Challenges: Enhancing the richness of disclosure content is crucial.

Principle 6: Reporting to Clients/Beneficiaries

Self-Assessment: The issuance of the sustainability report and regular updates to asset owners have enriched transparency and explanation capabilities regarding stewardship activities. Also, collaborative improvements in the Japan Stewardship Initiative’s report format have elevated industry report practices.
Future Challenges: Making report content more accessible is a recognized need.

Principle 7: Adequate Structure and Capability

Self-Assessment: Establishing sustainability promotion committees and employee initiatives strengthened effective sustainability governance. Participation in various national and international initiatives improved information acquisition and external communication.
Future Challenges: Continuous placement of specialized personnel and the application of AI technology are recognized as challenges to be addressed.

As Asset Management One moves forward in 2025, its ongoing evaluations and adjustments will further enhance its stewardship activities, aligning with its commitment to responsible investment and corporate governance.