Japan’s PFA CIO slams cross-shareholdings

Japanese pension fund managers have a reputation for bowing down to the country’s powerful business lobby. Not so Daisuke Hamaguchi, who has launched a scathing attack on a key aspect of the country's corporate culture: cross-shareholdings.  Japanese companies often buy shares in each other to cement alliances. These relationships tend to focus on mutual protection rather than maximising shareholder returns. “Management are standing within the fortress of a shareholder alliance,…