By Anton Bridge and Miho Uranaka
TOKYO (Reuters) -The trust banking arm of Mizuho Financial Group plans to increase staffing in its equity strategy consulting business by 30% to meet customer demand for shareholder relations advice, its chief executive said.
Shareholder activism has surged in Japan amid rising expectations among global investors of shareholder-friendly governance reforms that have been promoted by Japanese authorities.
Mizuho Trust & Banking’s investor relations and shareholder relations advisory fees grew 67% in the year ending March 2025, chief executive Kenichi Sasada told Reuters in an interview.
“We could have done more if we had had more people,” Sasada said. “We just have too many projects.”
Japanese companies have begun to address accusations of weak governance, poor allocation of capital and stock underperformance, and even those not targeted by activists are seeking out advice.
High-profile ongoing campaigns include Singapore-based 3D Investment Partners’ targeting of brewer Sapporo Holdings and Hong Kong-based Oasis Management’s targeting of cosmetics and skincare firm Kao.
In recent years trust banks have leveraged their client base for traditional shareholder record-keeping services as share transfer agents to expand into corporate governance consulting.
Mizuho Trust & Banking advises customers on a range of financial, operational, governance and personnel matters, Sasada said.
In particular it is advising companies on offloading real estate assets as firms seek to improve their capital efficiency and corporate value.
“There has been a tremendous increase in the number of cases where the sale of real estate assets has been a necessary measure,” Sasada said.
Real estate sales have been supported by an influx of foreign funds to the sector, Sasada said.
(Reporting by Anton Bridge and Miho Uranaka. Editing by Gerry Doyle)
