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Revised Voting Rights Guidelines from Asset Management One

Asset Management One, headquartered in Chiyoda, Tokyo, has announced a significant update to its voting rights guidelines and proposal criteria. These changes reflect a commitment to improving corporate governance and encouraging effective management that prioritizes capital efficiency and stock price considerations. The revisions are not just a response to current trends but are part of a long-term roadmap aimed at enhancing stewardship activities relating to voting and engagement.

Key Changes to the Voting Rights Guidelines

The primary alterations include a reevaluation of indices introduced to promote better capital management and a preview of the upcoming amendments scheduled for April 2027.

Implementation from April 2026

• - Director Nominations: The Total Shareholder Return (TSR) criterion will be re-evaluated to mitigate the impact of short-term stock price fluctuations. Under the new criterion, companies must fall below the lower third of the TSR ranking for three consecutive periods on the Tokyo Stock Exchange Prime Market and also below the lower third for five consecutive periods.

• - Capital Policies: The guidelines will clearly state opposition to third-party allocations that involve preferential issuance at the establishment of a foundation.

Expected Changes for April 2027

• - Board Structure: If there are no established nomination or remuneration committees, Asset Management One plans to vote against the representative director by default, applicable to companies that are part of the TOPIX 500.

• - Composition of the Board: Should a director from a major shareholder be nominated as an external board member or external auditor, the policy dictates a probable dissent vote against the representative director or committee members from a nomination committee.

These planned updates aim to foster greater transparency and accountability within corporate governance structures, reflecting a proactive approach in stewardship activities.

The Stewardship Roadmap

In line with these updates, Asset Management One will refer back to the stewardship roadmap published on September 27, 2024. This roadmap outlines the framework guiding sustainability and engagement in investment practices—a clear signal of the firm’s long-term accountability and active management strategies.

About Asset Management One

Founded in October 2016, Asset Management One is a leading asset management firm in Japan, overseeing approximately 76 trillion yen in assets across investment advisory and trust business sectors. The firm has built its reputation on a foundation of robust investment strategies, utilizing both traditional active management and cutting-edge financial engineering techniques to meet the diverse needs of individual and institutional investors.

Asset Management One's corporate message emphasizes nurturing the future through investment, underlining the importance of responsible stewardship in contributing to sustainable economic growth.

For further details on the revised voting rights guidelines and stewardship activities, visit their official website: Asset Management One.