Investment Portfolio: Voting Guidelines

We exercise the voting rights on holding stocks in a manner intended to maximize the long-term value of our investments. In order to make prudent votes, we are committed to scrutinizing companies performance as well as advocating their effort to enhance long term corporate financial performance. 

Of course, we comply with the voting principles and procedures which are formulated by approval of the Fund Management Committee under the Guidelines for Exercise of Voting Rights. As a result, at the Fund Investment Office, we determine the exercise of voting rights, except for a particular matter which is submitted to the Council of Experts on the Exercise of Voting Rights due to a controversial issue.

Voting Principles

As required by law, voting rights are exercised according to the following principles:

• We act as a prudent fiduciary on behalf of all insured persons and beneficiaries of the pension scheme.
• We act in pursuit of maximizing long-term shareholder value.
• We act with consideration of responsible investment for environment, society, and corporate governance.

Voting Scope

In accordance with the voting guidelines, we exercise voting rights on all stocks owned under our name. However, if our share ownership is less than 1 per cent of total shares of the company and, if the stock's weight in its asset class is less than 0.5 per cent, we may choose not to exercise the rights.