Mizuho REIT Management Co., Ltd.’s Policies Regarding Mizuho’s Fiduciary Duties
-Commitment to Customer First (Client-oriented) Business Management-
As a member of the Mizuho Group, Mizuho REIT Management Co., Ltd. (the Company) adopts “Mizuho’s Corporate Identity” established by Mizuho Financial Group, Inc.
Mizuho Financial Group has established our ambition to continue being our customers’ most trusted long–term financial partner as the vision of Mizuho’s Corporate Identity. In working to achieve this vision, the Company’s employees share a common set of five central values–called the Mizuho Values–starting with putting customers first. As a team of finance professionals providing a broad range of financial services, the Company is committed to fulfilling our fiduciary duties* in providing the best, most appropriate solutions in response to customers’ diverse needs.
*Fiduciary duties is a general term for the broad range of various roles and responsibilities that fiduciaries are expected to fulfill when engaging in certain business activities in order to live up to the trust that is placed in them by their customers.
Based on the proposals from the outside experts of the Fiduciary Duty Advisory Committee and the implementation status of action plans of Mizuho Group, Mizuho Financial Group has revised the Policies Regarding Mizuho’s Fiduciary Duties for asset management-related business established and announced on February 2016 for further thorough implementation of business operations from the standpoint of customers. The Company will, as a member of Mizuho Group, continue to implement measures from the standpoint of customers based on the concerned policies. For details of the Company’s measures based on the revised policies, please refer to the action plan below.
Furthermore, the Company adopts all of the seven principles of Principles for Customer-Oriented Business Conduct, released by Japan’s Financial Services Agency on March 30, 2017.
1. Enhancing Asset Management
(1) The Company will aim to provide added value of the highest standard to our customers by enhancing investment analysis and decision-making capabilities through further reinforcements to our personnel base and asset management foundations.
(2) To continue to provide optimal solutions to our customers’ asset management needs, the Company will continuously pursue improvements in existing asset management methods and new methods and investment opportunities.
|● To realize the investment corporation’s stable growth for mid to long term, in addition to utilizing unique management expertise, management resources, etc. of the asset management company, the Company will utilize the expertise, management resources, etc. of the sponsor and SIA Group.|
|● To realize the investment corporation’s stable growth for mid to long term, the Company will expand the asset size by acquiring highly competitive asses (external growth) as well as strive to maintain and enhance asset value through operation and management that maximize the competitiveness of assets under management (internal growth).|
2. Initiatives to Continuously Improve Product Quality and Develop New Products Based on Customers’ Needs
(1) Through appropriate risk management and monitoring of products, the Company will continuously improve the quality of its products and respond to changes in the market environment.
(2) With understanding of customers’ needs and expertise as asset management professionals, the Company will develop products which help customers, including ultimate beneficiaries, to steadily build their assets.
(3) Upon product development, in addition to identifying customers’ features, etc. according to location of risk for products and complexity, appropriate cooperation will be taken with sales companies and sales departments in order to provide products suitable for customers
(4) In seeking to provide superior products at a reasonable cost, the Company will take a customer–oriented view and promote a high degree of transparency in setting management fees as well as providing appropriate information concerning such.
|● Through continually conducting investments, the Company will secure stable revenue for the mid to long term from assets under management and pursue consistent growth of assets under management.|
3. Enhancing the Provision of Information and Services from the Customer’s Perspective
(1) In an effort to become our customers’ most trusted confidant, the Company will practice the highest quality of service.
(2) The Company will prioritize convenience and ease of understanding in providing customers with the most appropriate information.
|● The Company shall secure transparency for investors and disclose information required for investment decisions in timely and appropriate manner. The Company will also endeavor to disclose information in timely and appropriate manner, giving considerations to information transparency and understandability and considering details to respond to investor needs.|
4. Strengthening Corporate Governance
(1) In an effort to further strengthen its organizational structure in consideration of customers’ best interests, the Company will build a corporate governance system that is of the highest standard in the industry and ensure independence in asset management entities.
(2) Decisions pertaining to new product development will be made based on objective evaluations and highly transparent processes, which will include the involvement of compliance divisions.
|● The asset management business entrusted from the investment corporation will be executed by developing the board of directors, investment policy committee, compliance committee, etc. and other organizational structures and internal regulations, as well as through appropriate decision-making procedures so that profits of investors will not be impaired.|
5. Group Management Policies, etc.
|(1) Corporate Governance|
|● The Company will conduct asset management with appropriate conditions from the standpoint of protection of investor profit, including measures to prevent conflicts of interest in transactions with related parties.|
|● As an affiliate of Mizuho Financial Group, in addition to establishing and disclosing specific plans of action, the compliance departments shall report regularly to the board of directors and other relevant parties the state of compliance pursuant to the Policies Regarding Mizuho’s Fiduciary Duties.|
|(2) Evaluating Performance|
|● Evaluating the performance of the Company’s employees will be based on an appropriate performance review system as to whether it contributes to the investment corporation’s stable growth for the mid to long term.|
|(3) The Rationality of Remuneration, Etc.|
|● The Company shall set the standards and timing for payment of remuneration that the investment corporation pays the Company in the investment corporation’s Articles of Incorporation and announce such, as well as disclose the amount of remuneration for each fiscal period in semiannual reports, securities report, etc.|
|(4) Monitoring Conflicts of Interest|
|● Regarding the transactions conducted between interested persons, the Company shall define it broader than what is determined as interested parties by laws, and shall comply to its procedures and limitations.|
|(5) Establishing Corporate Culture|
|● By conducting training, the Company will establish a corporate culture where awareness and fiduciary duties are shared and practiced by all employees.|
Revised January 1, 2018
Mizuho REIT Management Co., Ltd.