In this new series “Startup Nation Japan”, Asia Society Tokyo aims to introduce and promote to our members the forces of change now shaping Japan’s new growth dynamics. After having looked at the role of venture capitals in the first session, this second session focuses on activist investors. Can investor engagement and pressure accelerate the transformation of the proud and deeply entrenched corporate priorities and culture of Japan Inc.?

Triggered by the unwinding cross-shareholdings, encouraged by the governance and stewardship codes, and incentivized by tremendous undervaluation and profit opportunities, activist investors have become a major force in Japan over the past couple of years: Record numbers of shareholder proposals, record number of outside board directors; even full-fledged take-over battles and even the board chair of one of Japan’s most venerable industrial companies ousted. Clearly, vocal and activist investors are changing the way corporate Japan is governed and lead.

For this session, we are honored to introduce you to some of the thought and action leaders in Japan’s activist investor space. The session will leave you with a real-world perspective of both the opportunities and the challenges in Japan Inc. journey to re-invent itself and, even amongst the old established companies, become a Startup Nation.

Future sessions will add other perspectives from entrepreneurs, regulators, tax, politicians, universities, big-business incumbents, etc. We also aim to have some Asian insights to help put Japan’s dynamism into a global context.

This event will be conducted online.
It is open to the public. Registration is required.

Speaker Bios

Oki Matsumoto

Oki Matsumoto began his career at Salomon Brothers and joined Goldman Sachs in 1990. He was appointed General Partner of The Goldman Sachs Group, L.P. in 1994 at the age of 30, the youngest ever at that time. As a General Partner, he took charge of trading, risk management, capital markets businesses in Asia, and also founded the special situations unit at Goldman Sachs. In 1999, he founded Monex which was jointly capitalized with Sony Corporation. He has been the CEO and Representative Executive Director since then and under his leadership the Monex Group has grown into one of Japan’s top retail-focused financial services enterprises. In early 2020, Oki launched the Japan Catalyst Fund, the first Japan retail-investor funded domestic engagement/activist fund.

Oki has served as Financial Counsel to the Prime Minister and also as outside directors of several companies including Tokyo Stock Exchange from June 2008 to 2013. He presently is an outside director of Mastercard Incorporated and also a Vice Chair of Human Rights Watch.

About Japan Catalyst Fund
Oki Matsumoto launched the Japan Catalyst Fund in early 2020 as 100% owned subsidiary of Monex Group (TSE 8698). It is the first-ever Japan engagement fund primarily funded by retail investors and the overarching philosophy is to be a catalyst for a Japan’s corporate- and investor evolution.

The fund aims to generate investment returns by leading the transformation of Japanese listed companies. The ideal engagement style is 啐啄同時 — Sotakku Douji. This is a Zen saying where 啐 Sotsu is the sound of the baby bird trying the break the egg-shell from the inside;  啄 Takku is the sound made by the mother bird trying the break the egg-shell from the outside. 同時 Douji means simultaneous.

Just as the Zen saying suggests the baby can best hatch when pecking works from both outside and inside, the Japan Catalyst Fund believes the best form of engagement investment is offering an outside hand to support management and corporate leaders when they are trying to change. Oki Matsumoto and the Catalyst team are not just experienced investors but are trusted members of Japan’s corporate and policy making ecosystem. This allows for truly holistic and uniquely impactful engagement at the highest level of corporate decision makers.

The Japan domiciled investment fund was launched June 25 2020, has approximately $100million AUM, and has outperformed TOPIX by approximately 26% (since launch on June 25, 2020 and end-July 2021).

James B. Rosenwald III, CFA

Mr. Rosenwald is Chief Investment Officer at Dalton Investments and Rising Sun Management. He is a recognized authority in Pacific Rim investing with more than 40 years of investment experience. He formerly co-managed and founded Rosenwald, Roditi & Company, Ltd., now known as Rovida Asset Management, Ltd., which he established in 1992 with Nicholas Roditi. Mr. Rosenwald advised numerous Soros Group funds between 1992 and 1998.

Mr. Rosenwald holds an MBA from New York University and an AB from Vassar College. He is a CFA charter holder and a director of numerous investment funds. He is a member of the CFA Society of Los Angeles and the CFA Institute, and is an Adjunct Professor of Finance at New York University’s Stern Business School.

About Dalton Japan Long Only UCITS Fund
The Longchamp Dalton Japan Long Only UCITS Fund offers access to Dalton Investments extensive knowledge and experience of the Japanese region. Dalton’s on the ground Tokyo team deploys a value investment approach focused on alignment of interests while seeking to benefit from the Japanese corporate governance codes and reforms. As part of its investment strategy, the Fund invests its assets in equities with a primary exposure to the Japanese market, across sectors, industries, and market capitalizations.

About Nippon Active Value Fund
Nippon Active Value Fund (“NAVF”) is an Investment Trust listed on the Specialist Fund Segment of the London Stock Exchange. NAVF is targeting attractive levels of capital growth for shareholders from the active management of a focused portfolio of quoted small cap Japanese equity investments. The investment advisor, Rising Sun Management Limited, targets companies which are attractive, undervalued and have a substantial proportion of their market capitalization held in cash and/or listed securities and/or realizable assets.  Rising Sun Management believes that corporate governance reforms have created the right circumstances and environment for activist investors to successfully engage with publicly traded companies in Japan to improve shareholder returns.