Japan’s Pension Fund Association hired Hermes EOS, the stewardship division of Hermes Investment Management, to develop and implement the ¥12.7 trillion ($111.6 billion) Tokyo-based pension fund’s stewardship services, a spokesman said.
The PFA becomes Hermes EOS’ first client in Asia, confirmed a London-based spokeswoman for the firm. At the close of 2015, Hermes EOS advised on $228 billion of assets for 42 clients, according to a Hermes news release.
Daisuke Hamaguchi, the PFA’s chief investment officer, said in the news release that the appointment of Hermes EOS will help the PFA “improve the transparency and efficiency of Japan’s capital markets.”
The Hermes spokeswoman declined to provide details on the length of Hermes EOS’ contract with PFA, or the fees the firm would receive for its services.
Hermes EOS said it hired Masaru Arai as senior engagement consultant. For the past four years, Mr. Arai served as chairman of the Japan Sustainable Investment Forum. The Hermes spokeswoman couldn’t immediately say whether Mr. Arai remained chairman of the forum after joining Hermes EOS.
Hermes EOS noted in its news release that it was involved in the development and promotion of the Principles for Responsible Institutional Investors Japan introduced in 2014, as well as the country’s Corporate Governance Code, which took effect in June 2015.