We provide asset management products and services under investment advisory agreements and discretionary investment contracts to meet the diverse asset investment needs of our clients, who include group pensions, nonfinancial entities and institutional investors.

Because we invests primarily in Japanese and foreign securities, factors such as fall in the prices of securities due to fluctuations in stock prices, interest rates, exchange rates and other market factors or the default or a material deterioration in the financial conditions of issuers may cause the assets under management to fall in value. Investment principal is therefore not guaranteed.

We charge investment advisory/discretionary investment fees (*), which are calculated as a percentage of assets under management (usually based on market value/average balance).

• *We cannot specify the percentage in advance as the percentage varies vary depending on factors such as the content of the agreement with the clients and performance.

Depending on factors such as investment targets, asset management methods and the content of services, we may also charge other fees (includes success fees) besides the foregoing.

Other expenses such as brokerage commissions on traded securities, charges on derivative transactions and charges for the custody of asset overseas may also be incurred. In addition some investment trusts such as privately placed investment trusts incur administrative expenses and audit expenses and these expenses will be paid out of the assets of the investment trust.
We cannot provide further details (percentage, upper limit, etc.) of these expenses here, as expenses vary depending on factors such as asset management strategy and performance.

You are advised to read the pre-contract information carefully for details of our investment advisory and discretionary investment fees and other expenses before entering into an agreement, as these will vary depending on the content of individual agreements and other factors.

• We clarify the client manager responsible for each client and this client manager will deal with every matter requested by the client, either directly or in cooperation with the relevant department where necessary.
• In addition to monthly and quarterly performance reports, we also consult clients about any special reports they require. We also report any changes to our opinions or investment strategies in response to sudden changes in the investment environment.
• We hold regular meetings (usually every quarter) to update the client on operations, including the current status of assets under management, performance, investment activities, the market outlook and the future asset management policy.

In our Investment Trust Management Business, we provide a wide range of products, including products to meet the needs of individual investors and privately placed investment trust products for corporate customers. We also utilize the knowhow and management resources developed though the operation of group pension schemes to provide investment trust products for defined contribution pension schemes and variable annuities.

• Prospective investors are advised to read the investment trust explanatory document (prospectus distributed in advance of subscription) carefully. Prior to investing in the fund, the distributor will deliver the investment trust explanatory document (prospectus distributed in advance of subscription). Please be sure to confirm its contents before making your own investment decision.
• Investment trusts are products that involve an element of risk and any profits and losses generated by the fund as a result of investments are shared by all the beneficiaries. Unlike bank deposits, the principal of investment trusts is not guaranteed, and losses may occur when the price declines and this may result in a loss of principal.
• Investors choosing to invest in an investment trust will be charged an application fee as well as other indirect costs such as trust fees, audit fees, administration costs and brokerage commissions and other charges on traded securities, which will be paid out of the assets of the investment trust.
• Unlike deposits and insurance policies, investment funds are not protected by the Deposit Insurance Corporation of Japan or the Insurance Policyholders Protection Corporation of Japan, and investment trusts purchased from registered financial institutions are not eligible for compensation from the Japan Investor Protection Fund.

We actively provide support to distributors, including holding detailed study meetings for distributors and providing speakers for customer seminars on investment trusts.