Organizational Structure for Responsible Investment

To manage any potential conflicts of interest that may arise through our stewardship activities, including engagement (constructive purposeful dialogue) and proxy voting, we have established a Responsible Investment Committee comprised of senior managers outside of investment management and research operations. The Responsible Investment Committee formulates company policy regarding stewardship activities. In principle, the Committee’s members are limited to officers and employees who can make decisions regarding investment management and research, while anyone who is in a position that could involve a conflict of interest (or his or her representatives) is excluded from the Responsible Investment Committee. Moreover, our Company has established the Responsible Investment Council under the Board of Directors, which consists of the Chief Conflict Officer and independent outside directors only. All stewardship activities, such as proxy voting, which may give rise to a conflict of interest are monitored by the Responsible Investment Council, ensuring that decisions are made in the best interests of our clients. If necessary, the Responsible Investment Council may make a recommendation to the Executive Management Committee or the Committee for improvement and report its recommendation to the Board of Directors. Moreover, the independent outside directors attending the Committee are able to make comments if they notice any problems regarding conflicts of interest. This allows the Responsible Investment Council to appropriately monitor and provide preventative measures for any Transactions that represent a potential conflict regarding stewardship activities, etc.