The California Public Employees' Retirement System (CalPERS) today announced it is a signatory and supporter of Japan's stewardship code, formally titled the Principles for Responsible Institutional Investors (the Code), which aims to enhance long-term return for investors through constructive engagement and dialogue with the publicly traded Japanese companies in its portfolio.
"In our global investment portfolio, Japan represents CalPERS' second-largest equity market," said Ted Eliopoulos, CalPERS Chief Investment Officer. "We applaud the Japanese government for taking this important step to improve engagement between investors and companies."
The Code is based on the United Kingdom's Stewardship Code and was issued in 2014 by the Japanese government's Financial Services Agency in an effort to help to stimulate its economy. It currently has more than 200 signatories, including more than 20 pension funds.
The Code fully aligns with CalPERS' Investment Beliefs and is an important part of a strong governance policy. For more than 30 years, CalPERS has actively engaged portfolio companies to promote good governance practices. Constructive engagement between investors and companies helps to foster sustainable growth.
Signature of the Japan Stewardship Code also ties with CalPERS' Focus List Program. In early 2015, CalPERS began engaging a group of Japanese portfolio companies through the program, which utilizes active engagement to improve companies' governance practices. The goal of the program is drive positive, long-term economic returns.
For more than eight decades, CalPERS has built retirement and health security for state, school, and public agency members who invest their lifework in public service. Our pension fund serves more than 1.7 million members in the CalPERS retirement system and administers benefits for nearly 1.4 million members and their families in our health program, making us the largest defined-benefit public pension in the U.S. CalPERS' total fund market value currently stands at approximately $286 billion. For more information, visit www.calpers.ca.gov.
CalPERS has a long-standing commitment to transparency. In celebration of Sunshine Week, take our daily quiz from March 13-19 and learn more about our efforts.
