Naotsune Alliance: Financial Community Shows Governance Is the New Differentiator in Investment Decisions

The research confirmed that in evaluating investment opportunity, asset managers are expected to take a lead in assessing country risk

OSAKA, KANSAI, JAPAN, March 27, 2020 / — Naotsune Alliance, a financial adviser for the world of business that provides discretionary investment advisory services for individual clients, wealthy families, institutional investors and investment trusts is pleased to announce that its new research reveals the integral part that governance plays in the investments asset managers make and what clients expect of them. 88% of financial services decision-makers considered effective governance to be a critical driver of investment performance. Corporate governance emerged as the most important matter on which asset managers should engage the companies in which they invest, with strong support also for engagement on remuneration, corporate actions and environmental and social issues.

The overwhelming majority (83%) of the sample of 256 decision-makers said that asset managers should engage with the companies in which they invest client funds both before investments are made and at regular intervals subsequently. Respondents agreed that poor governance was the biggest challenge faced by companies after tax regulations.

Naotsune Alliance Head of Corporate Governance Eizo Nakayama commented: “The research makes clear that governance has to be a fundamental part of what investors do day-in, day-out. It’s about asset managers understanding what they own and not being shy of having conversations with the companies they invest in. Those conversations need to happen regularly and be a frank and honest two-way dialogue. Getting governance right is not easy. It involves research and thoughtful understanding. A lot of time spent meeting people and listening – not just talking. Doing these things, and therefore getting governance right, is easier if you take a long-term approach. A company is much more likely to talk to you if they don’t think you’ll sell their bonds or shares at the sight of one set of poor quarterly figures. We need to do more as an industry to invest for the long term ourselves and encourage the companies we own to do the same.”

About Naotsune Alliance
Naotsune Alliance is a financial adviser for the world of business, a world in which community is key. The company’s memberships, partnerships and associations are chosen with care, and its selectiveness ensures it is connected to the right people and have access to the best and most up-to-date knowledge. Our main products are Japanese equity funds utilizing Naotsune Alliance’s research ability for Japanese companies cantered on mid-small cap companies, start-ups and IPOs. Naotsune Alliance also manages funds with external asset managers and funds managed by prominent asset managers located all over the world.

Wilhelm Wagner
Naotsune Alliance
+81 70-5555-0442
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Source: EIN Presswire