Basic Responsible Investment Principles of Nomura Asset Management

Our mission is to offer our clients consistently high-quality asset management services that meet their investment needs. We thereby contribute to social development whilst maintaining client and public confidence in the asset management business.
As an asset manager fulfilling its fiduciary responsibilities, we are committed to act in the best interest of our clients. We ensure that conflicts of interest are handled based on independent judgment and in such a manner so that client interests are always upheld. We have been entrusted with our clients’ proxy voting rights and other rights relating to securities investment. We must properly exercise these rights in an effort to maximize the interests of our clients. We cannot achieve growth in our clients’ assets over the medium to long term unless investee companies achieve sustainable growth and create corporate value. To this end, we are committed to stewardship-related activities (*), including purposeful dialogue with investees (engagement) and proxy voting, to execute the important responsibilities as a fiduciary asset manager.
ESG (Environmental, Social and Governance) issues are basic concerns to be addressed by companies, requiring them to engage in business activities as a member of society and to generate corporate value. ESG considerations are integral to our investment stewardship. Therefore, we hold constructive dialogue with investee companies to identify how they respond to ESG issues and to encourage them to address these challenges through stewardship-related activities.
We understand that the actions as stated above are the basic requirements as a "responsible investor", and such actions will eventually realize the establishment of a sound and sustainable society with efficient and stable capital markets. From this perspective, we classify investment based on such actions as "responsible investment" and will make active efforts to ensure such responsibilities are upheld.

(*)This Code has been drafted by the Financial Services Agency of Japan, which explains this Code as follows.
"Stewardship responsibilities" refers to the responsibilities of institutional investors to enhance the medium- to long-term investment returns for their clients and beneficiaries (including ultimate beneficiaries; the same shall apply hereafter) by improving and fostering the investee companies' corporate value and sustainable growth through constructive engagement, or purposeful dialogue, based on in-depth knowledge of the companies and their business environment.
By fulfilling their stewardship responsibilities properly in line with this Code, institutional investors will also be able to contribute to the growth of the economy as a whole.

(Source: Financial Services Agency)