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Sompo Asset Management Co., Ltd.

PRI reporting framework 2020

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Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.3. Indicate if the investment policy covers any of the following

01.4. Describe your organisation’s investment principles and overall investment strategy, interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.

Our investment principles are as follows:

1.All securities have an intrinsic value and that the market price tends towards the intrinsic value over time, although interim discrepancies occur.

2.Intrinsic value is defined, for us, by asset's future cash flows.

3.Market behavior provides exploitable discrepancies between market price and intrinsic value.

Many of our clients and their ultimate beneficiaries whose assets we manage are stakeholders; connected to the investee companies as both final investors and as employees, consumers, and suppliers. This is why in order to fulfil our fiduciary duties to maximize returns for clients, our actions to enhance the value and promote sustainable growth of the investee companies must also contribute to sustainable development of society and the wider economy as a whole.

As an institutional investor, we believe that we have a responsibility to take a strong interest not only in making profits but also in creating added value at the investee companies and the distribution process.

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

Sompo Japan Nipponkoa Asset Management's mission is to maximize investment returns on client assets we manage by investing in listed companies. In order to fulfil our fiduciary duties as an asset management firm, we also acknowledge that as an institutional investor, it is our responsibility to act as one end of the investment chain. Below describes how we see our social responsibility as an institutional investor and sets forth a code of conduct we promise to abide by.

1. Stewardship responsibilities:
Many of our clients and their ultimate beneficiaries whose assets we manage are stakeholders; connected to the investee companies as both final investors and as employees, consumers, and suppliers. This is why in order to fulfil our fiduciary duties to maximize returns for clients, our actions to enhance the value and promote sustainable growth of the investee companies must also contribute to sustainable development of society and the wider economy as a whole.

As an institutional investor we believe that we have a responsibility to take a strong interest not only in making profits but also in creating added value at the investee companies and the distribution process.

2. Responsibilities as a market participant:
The capital markets are essential public utilities which enable efficient distribution of resources by providing liquidity and price discovery functionality. In order to function properly, these markets require a large number of participants to engage freely in investment activity. Therefore, as one of the professional market participants who benefits from the existence of such markets, we recognize that our investment activities should be commensurate to the sound development of capital markets.

As an institutional investor, when we trade company stocks on the public capital markets, we believe that we have a duty to act on investment decisions supported by independent evaluation of medium-to long-term enterprise and stock value.

01.6. Additional information [Optional].

          
        

SG 01 CC. Climate risk (Private)


SG 02. Publicly available RI policy or guidance documents

 

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

URL/Attachment

URL/Attachment

URL/Attachment

URL/Attachment

02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

02.3. Additional information [Optional].

Please refer to the below website for our response to Japan's Stewardship Code:

http://www.sjnk-am.com/our_strength/our_social_responsibility_investment/OurResponsetoJapansStewardshipCode.html

 


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

We adopted a Policy for Managing Conflict-of-Interests in connection with Investment Activities on behalf of SNAM Clients.

Below our website (in Japanese) shows our policy of managing Conflict-of Interests.

http://www.sjnk-am.co.jp/img/institutional/conflict_of_interest.pdf

 

03.3. Additional information. [Optional]


SG 04. Identifying incidents occurring within portfolios

04.1. Indicate if your organisation has a process for identifying and managing incidents that occur within investee entities.

04.2. Describe your process on managing incidents

As an active investment manager, our analysts get in touch with companies every day. Through the dialogues with investee companies, we get to know about the company deeply. The dialogues with companies enable us to manage incidents.


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