Mizuho Trust Bank to Increase Advisory Team By 30% Amid Rising Activist Investor Pressure In Japan

The trust banking division of Mizuho Financial Group (8411.T) is all set to expand its workforce in equity strategy consulting by 30 per cent to address customer needs for shareholder relations guidance, according to its CEO. In Japan, shareholder activism has increased significantly due to growing expectations from global investors for governance reforms that favour shareholders, which have been encouraged by Japanese officials. Mizuho Trust & Banking's advisory fees for investor and shareholder relations increased by 67 per cent in the year ending March 2025, chief executive Kenichi Sasada informed Reuters during an interview.

"We might have achieved more with additional personnel," Sasada stated. "We simply have an excess of projects." Japanese firms have started to tackle claims of insufficient governance, ineffective capital allocation, and underperforming stocks, while even those not facing activist scrutiny are seeking guidance. Prominent ongoing campaigns involve Singapore's 3D Investment Partners focusing on brewer Sapporo Holdings and Hong Kong's Oasis Management, aiming at cosmetics and skincare company Kao.

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In recent years, trust banks have utilised their client base for conventional shareholder record-keeping services as share transfer agents to branch into corporate governance consulting. Mizuho Trust & Banking provides guidance to clients on various financial, operational, governance, and personnel issues, according to Sasada. Specifically, it is guiding companies to divest real estate assets as businesses aim to enhance their capital efficiency and corporate worth. Sasada stated, "There has been a significant rise in instances where selling real estate assets has become an essential action." Sasada said an influx of foreign investments has bolstered real estate sales in the sector.