Cadira Capital Management Co., Ltd. is committed to its mission of "Connecting the Investment Chain and Beyond." and aims to provide high quality investment returns to its clients while addressing global environmental and social challenges.

We aim to help solve global environmental challenges (including climate, biodiversity, and the circular economy) and social issues (including human rights, human capital, and social order), while delivering high-quality investment returns to our clients.

The fundamental principles of the Japanese Stewardship Code—namely, promoting the sustainable growth of investee companies and enhancing the medium- to long-term investment returns of clients and beneficiaries—are fully aligned with our corporate philosophy. Accordingly, we proactively accept the Code and hereby disclose our policy for addressing each of its principles as follows.

Principle １

Institutional investors should have a clear policy on how they fulfill their stewardship responsibilities, and publicly disclose it. 

Companies considered as investment candidates for our investment strategies are those that contribute to societal sustainability while maintaining the capacity for self-driven growth.

We fulfill our stewardship responsibilities through two core activities targeting such companies, including those expected to meet these criteria in the future: (1) engagement centered on direct dialogue, and (2) exercising voting rights at shareholder meetings to encourage improvements in corporate management.

Principle 2

Institutional investors should have a clear policy on how they manage conflicts of interest in fulfilling their stewardship responsibilities and publicly disclose it. 

We place importance on the balanced development of all stakeholders of investee companies—including the environment, society, and shareholders. Therefore, when performing our stewardship responsibilities, we take care to avoid actions that provide benefits only to a subset of stakeholders.

For investment decisions or voting practices involving companies with which we have business relationships, we establish internal procedures, follow internal rules, and seek opinions from external advisors when necessary to ensure effectiveness.

As an independent asset management firm with no affiliated corporate group capable of influencing our stewardship activities, conflicts of interest with clients or beneficiaries are limited.

Principle 3

Institutional investors should monitor investee companies so that they can appropriately fulfill their stewardship responsibilities with an orientation towards the sustainable growth of the companies. 

The core of our research activities is the development and verification of investment hypotheses regarding portfolio companies.

An investment hypothesis refers to a scenario analysis of changes in a company’s financial and non-financial fundamentals and the resulting stock price movements. In constructing such hypotheses, we also consider the impact of environmental and social changes on the company, as well as the company’s impact on its stakeholders—including the environment and society.

Additionally, the expected impact of our engagement activities on the company is incorporated into our investment hypotheses.

Principle 4

Institutional investors should seek to arrive at an understanding in common with investee companies and work to solve problems through constructive engagement with investee companies. 

Through direct engagement by our investment professionals, we provide supportive guidance so that the activities of investee companies generate positive cycles.
In these dialogues, we disclose our investment policy to enhance mutual understanding and ensure transparent engagements. If misconduct occurs or stakeholder harm arises, we work with the company to address and resolve such issues.

When we deem it beneficial, we proactively work with other stakeholders—including taking a leading role—to conduct collaborative engagements and enhance effectiveness.

We may disclose the number of shares held upon request from investee companies if such disclosure contributes to more effective dialogue.

Principle 5

Institutional investors should have a clear policy on voting and disclosure of voting activity. The policy on voting should not be comprised only of a mechanical checklist: it should be designed to contribute to sustainable growth of investee companies.

When exercising voting rights, we follow our voting policy and make decisions that consider the interests of shareholders and stakeholders of the investee company, thereby contributing to the creation of a sustainable environment and society and ultimately serving the long-term interests of our clients.

As we invest in companies only after agreeing with their management policies, we fundamentally respect management’s proposals. However, if a proposal appears contrary to the interests of shareholders or stakeholders and lacks a clear explanation, we may vote against or abstain.

To ensure transparency, we disclose our annual voting results on our website. We provide item-by-item disclosure and, for votes against management proposals, also disclose the reasons for opposition.

Principle 6

Institutional investors in principle should report periodically on how they fulfill their stewardship responsibilities, including their voting responsibilities, to their clients and beneficiaries. 

We report our engagement and voting activities through investment reports as well as meetings with clients and beneficiaries.

Reports include not only numerical data such as the number of engagements but also qualitative descriptions of engagement content and case examples.

Recognizing that stakeholders extend beyond clients and beneficiaries, we actively disseminate information through our website and social media platforms. We publish a Progress Report (https://cadiracm.com/pp) to provide updates on our stewardship activities.

Principle 7

To contribute positively to the sustainable growth of investee companies, institutional investors should develop skills and resources needed to appropriately engage with the companies and to make proper judgements in fulfilling their stewardship activities based on in-depth knowledge of the investee companies and their business environment and consideration of sustainability consistent with their investment management strategies.

To ensure effective engagement and voting, we strengthen organizational structures and develop talent within our Investment Management Department, which plays a central role in these activities.

The most important element of organizational development is the sharing of our investment philosophy across the entire firm. Based on this foundation, we maintain a consistent process for investment, engagement, and voting activities, while continuously improving the process over time to strengthen our capabilities.

In terms of talent development, we establish internal training programs on corporate research and engagement methods, and we actively utilize external educational opportunities to enhance the skills of investment professionals.

The Board of Directors oversees the implementation of all the above initiatives. Once a year, the Investment Management Department conducts a self-assessment and reports the results to the Board, after which the findings are published on our website.

Please see below for the list of annual self-assessment: