In 2019, one of Japan’s largest pension funds set out to strengthen how it evaluated and monitored stewardship across its global portfolio. The ambition was not to redefine its approach, but to ensure that its expectations of external asset managers were clear, consistent and robust to support long-term value creation.
We were engaged to help evolve the fund’s framework for assessing stewardship activities across asset classes and investment styles – and to support the integration of material ESG considerations into investment processes in a way that reinforced, rather than distracted from, fiduciary responsibilities.
Strengthening the Manager Assessment Framework
We worked closely with senior internal decision-makers to examine how stewardship performance was being assessed across external managers.
Our review identified numerous opportunities to sharpen evaluation criteria and we supported the refinement of their assessment framework to enhance transparency, comparability and accountability across mandates.
The result was a more structured and rigorous approach to monitoring stewardship quality, aligned with the client’s long-term objectives as one of the world’s largest asset owner.
Building Capability and Confidence
Effective oversight depends on informed decision-making. To support implementation, we developed tailored training programmes in both English and Japanese for the fund’s stewardship team.
Through interactive workshops, case studies and customised assessments, we deepened understanding of stewardship practices across markets and asset classes. This ensured that internal teams were equipped not only with policy frameworks, but with the practical tools and confidence to apply it consistently.
What began as a framework review has since developed into an ongoing advisory relationship. We continue to work with this client to provide insights on regulatory developments, emerging best practice and to complete an annual review of its stewardship framework.