Stewardship Code | WM Partners, Inc.

WM Partners has accepted Japan's Stewardship Code to fulfill its fiduciary duties.

[Principle 1]
Institutional investors should have a clear policy on how they fulfill their stewardship responsibilities, and publicly disclose it.

WMP focuses on investing in unlisted Japanese companies, including growth-stage SMEs and startups. As an equity partner, we foster sustainable growth through "purposeful dialogue" with management based on a deep understanding of their vision. By supporting portfolio growth and addressing sustainability, we maximize fund returns, fulfill our stewardship responsibilities, and contribute to Japan's industrial development.

[Principle 2]
Institutional investors should have a clear policy on how they manage conflicts of interest in fulfilling their stewardship responsibilities and publicly disclose it.

WMP's officers and employees recognize their critical roles in governance and conflict management, maintaining a robust compliance system based on our "Compliance Manual." As the fund manager authorized under the Limited Partnership Agreement (LPA), we strictly manage potential conflicts of interest—such as those between different funds or between WMP and a fund. We ensure fairness through appropriate processes in accordance with the LPA and applicable laws to prioritize and maximize the interests of our investors.

[Principle 3]
Institutional investors should monitor investee companies so that they can appropriately fulfill their stewardship responsibilities with an orientation towards the sustainable growth of the companies.

Unlisted companies in WMP's portfolio may not always have established disclosure practices equivalent to those of public companies. Therefore, while strictly protecting confidential information, we conduct rigorous pre-investment due diligence and discuss governance improvements with management. In the post-investment phase, we track both quantitative and qualitative progress by attending board meetings, maintaining regular dialogue with management, and reviewing periodic financial reports.

[Principle 4]
Institutional investors should seek to arrive at an understanding in common with investee companies and work to solve problems through constructive engagement with investee companies.

As an equity partner, WMP engages in sincere and deep dialogue with portfolio company management to identify and address shared risks and challenges. By offering advice from a stakeholder perspective and addressing sustainability issues, we promote growth aligned with our investment strategy, aiming to enhance medium-to-long-term corporate value and ensure sustainable growth.

[Principle 5]
Institutional investors should have a clear policy on voting and disclosure of voting activity. The policy on voting should not be comprised only of a mechanical checklist; it should be designed to contribute to the sustainable growth of investee companies.

WMP exercises voting rights based on clear policies and processes, evaluating each proposal against our internal guidelines. Our voting decisions are informed by proactive, ongoing dialogue and a deep understanding of each portfolio company's vision and growth challenges.
As the majority of our portfolio companies are unlisted, WMP refrains from publicly disclosing specific voting results.

[Principle 6]
Institutional investors in principle should report periodically on how they fulfill their stewardship responsibilities, including their voting responsibilities, to their clients and beneficiaries.

WMP informs fund investors of operational status and the performance and outlook of portfolio companies through periodic reports and annual meetings. Through these channels, we provide timely reporting on our stewardship activities to our investors.

[Principle 7]
To contribute positively to the sustainable growth of investee companies, institutional investors should develop skills and resources needed to appropriately engage with the companies and to make proper judgments in fulfilling their stewardship activities based on in-depth knowledge of the investee companies and their business environment and consideration of sustainability consistent with their investment management strategies.

WMP prioritizes organizational development and expertise to effectively manage unlisted company investments, incorporating sustainability considerations into our processes. We continuously enhance our capabilities through "purposeful dialogue" and internal knowledge sharing to remain a trusted equity partner.
As the majority of our portfolio companies are unlisted, WMP refrains from publicly disclosing the results of its self-assessment.

[Principle 8]
Service providers for institutional investors should endeavor to contribute to the enhancement of the functions of the entire investment chain by appropriately providing services for institutional investors to fulfill their stewardship responsibilities.

WMP is not a service provider for institutional investors; therefore, this principle does not apply to our operations.

[Principle 1] Institutional investors should have a clear policy on how they fulfill their stewardship responsibilities, and publicly disclose it.

[Principle 2] Institutional investors should have a clear policy on how they manage conflicts of interest in fulfilling their stewardship responsibilities and publicly disclose it.

[Principle 3] Institutional investors should monitor investee companies so that they can appropriately fulfill their stewardship responsibilities with an orientation towards the sustainable growth of the companies.

[Principle 4] Institutional investors should seek to arrive at an understanding in common with investee companies and work to solve problems through constructive engagement with investee companies.

[Principle 5] Institutional investors should have a clear policy on voting and disclosure of voting activity. The policy on voting should not be comprised only of a mechanical checklist; it should be designed to contribute to the sustainable growth of investee companies.

[Principle 6] Institutional investors in principle should report periodically on how they fulfill their stewardship responsibilities, including their voting responsibilities, to their clients and beneficiaries.