Introducing JIAAThe Japan Investment Advisers Association (hereinafter referred to as “JIAA”) is positioned asan Authorized Financial Instruments Firms Association authorized by the Prime Minister
pursuant to the provisions of Article 78 of the Financial Instruments and Exchange Act(hereinafter referred to as the “Act”).
JIAA was established as a self-regulatory organization (SRO) in October 1987 from theviewpoint of focusing more on the industry’s self-helping efforts for proper implementation oflaws and regulations with less reliance on government agencies. In order to achieve its aim ofhelping protect investors, JIAA carries out a wide range of activities including establishment,
amendment and abolition of self-regulatory rules. JIAA also acts as a trade association for thesound development of the industry.
JIAA is expected to act as an intermediary between the asset management industry and therelevant authorities in order to help both members and the authorities have better
communication with one another, which should contribute to facilitating innovation andestablishing a better regulatory environment.
Following the enactment of the Act in September 2007, the investment advisory business has
been reorganized into the Investment Management Business and Investment Advisory &Agency Business. Further, securities management firms related to real estate and fundmanagement firms have newly joined JIAA, which has helped diversify its member structure.
In addition, the number of members has increased significantly since the enforcement of theFinancial ADR System, established in October 2010, under which investment advisers musttake necessary measures for handling complaints and solving disputes.
JIAA has 789 members and the amount of assets under management of Investment
Management Members has reached about 157 trillion yen as of March 31, 2012.

The name of the Association was changed from the Japan Securities Investment Advisers
Association (JSIAA) to the Japan Investment Advisers Association (JIAA) on July 2, 2012.

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Investment Management Business
The Investment Management Business in which members are engaged is classified into thefollowing two sub-categories.
(1)	Discretionary Investment Management Business: Members make investments with theauthority necessary to make investment decisions and exercise investment discretion
entrusted by their clients under a discretionary investment management contract.
(2)	Fund Management Business: Members manage pooled fund assets designed to invest
mainly in securities in order to help venture corporations grow or turn around failedcorporations.		

In case of private real estate related funds, it is common for them to manage those assets
under the discretionary investment management contract mentioned in (1) above.

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Investment Advisory & Agency Business
The Investment Advisory & Agency Business is classified into the following two subcategories:(1)	Investment Advisory Business: Members provide investment advice about financial
instruments such as securities to their client under an investment advisory contract.
(2) A gency Business: Members act as an agent or intermediary for concluding adiscretionary investment management contract between an investment management firm
and an investor, or an investment advisory contract between an investment advisory firm
and an investor.

Those firms seeking to engage in the Investment Management Business and/or Investment
Advisory & Agency Business must obtain registration from the Prime Minister.

3

Activities of JIAA
1. Establishment and Enforcement of Self-Regulatory Rules, etc.
JIAA is dedicated to promoting fair business conduct by members and enhancing socialconfidence. It strives to do this by establishing self-regulatory rules, providing members withonsite guidance, helping members comply with those rules by conducting several
questionnaires, and taking disciplinary actions if necessary in order to protect investors.
2. Representation and Advocacy before Relevant Authorities forDeregulations, etc.
JIAA actively presents its positions before the government authorities and otherorganizations concerned. The main examples of deregulations and such like so far are asfollows.
(1)	Licensed investment advisers have been allowed to participate in managing the assets ofemployees’ pension funds since April 1990. Thereafter, they have been allowed toparticipate in managing the assets of various pension funds such as the Pension Welfare
Service Public Corporation (at the time) and National Pension Funds.
(2)	The amendment of the Japan Post Law in July 2003 has enabled investment advisers toparticipate in managing the assets of postal savings (Yucho) and insurance (Kampo).
(3)	JIAA submitted comments on the “Draft Revision of OECD Corporate GovernancePrinciples” in January 2004, and they were reflected in the Principles.
(4)	JIAA submitted “Opinions toward the Investment Services Law (Provisional)” to theFSA in January 2006, and many of our requests have been reflected in the Act. Further,many requests for the proposed Cabinet Office Ordinance of the Act, etc., after toughnegotiations with the FSA, have been adopted in the final versions of those rules.
(5)	JIAA submitted a request for a review of taxation for foreign limited partners in a limited
partnership for investment, and it was reflected in the “Cabinet Order for amending aPart of the Cabinet Order for Enforcement of the Act on Special Measures Concerning
Taxation,” enacted on March 31, 2010.

4

3. Publication of Statistics and Preparing of Reference Materials
JIAA provides disclosure materials with regard to the Investment Management Business andInvestment Advisory & Agency Business conducted by members, prepares and publicizes
various statistics, makes unified accounting standards, and draws up samples of documents
including those required by the Act or the contract in order to help members make better
management decisions.
4. Consultation and Mediation with regard to Complaints
JIAA entrusts its activities on consultation and mediation with regard to complaints about
members’ conduct and services to the Financial Instruments Mediation Assistance Center(FINMAC) which conducts those activities fairly and neutrally. JIAA receives relevant
information as feedback from FINMAC and makes it available for members when reviewing
their activities.
5. Corporate Governance
JIAA conducts various activities related to corporate governance such as establishing theGuideline for Exercising Proxy Voting and submitting opinions to improve corporategovernance. Further, JIAA established the Corporate Governance Study Group in 2011 inorder to contribute to creating an environment where investee companies and theirstakeholders such as shareholders can have constructive discussions. The contents of thediscussions have been made available on its website.
6. Efforts for Personal Information Protection
JIAA, as an Authorized Personal Information Protection Organization, has established a help
desk to offer consultation with regard to complaints and has been engaged in various
activities which help protect personal information.

57. International Exchange
JIAA is committed to promoting active international exchange with related entities overseas
and monitoring current overseas developments. JIAA makes such information available formembers while utilizing it to push forward with the activities of JIAA.
8. Training Programs and Seminars
JIAA conducts various training programs and seminars to enhance the quality, skills andexpertise of compliance personnel and the fund managers or analysts of members.
9. Establishment of Sponsored Courses at Universities
JIAA, cooperating with the Investment Trusts Association, Japan, has established sponsoredcourses for university students as part of investor education activities. In 2012, JIAA willconduct six courses at Waseda University, Hitotsubashi University, Osaka University, Kyoto
University, Kobe University and Nagoya University.
10. Public Relations and Publications
JIAA conducts various public relations activities to help investors have a better
understanding of the industry through various media including public relations brochurescalled “Toshi Komon,” newspapers, magazines, and its website. In March 2010, a book titled“An Invitation to Asset Management” that contains transcripts of the lectures given in thesponsored courses was published.

6Organizational Structure of JIAA
JIAA consists of(1) The General Assembly, the supreme decision making body;(2) The Board of Directors, the executive body; and(3) Two Standing Committees and their Sub-Committees.
Further, JIAA has the Discipline Committee as an advisory body to the Chairman to provide
recommendations on taking disciplinary actions and monitor the observance of the selfregulatory rules.

Functions of Standing Committees(1) The Business Committee deals with:(a) Issues concerning business management of members, and(b)	I ssues concerning activities of JIAA and other issues which are deemed to beimportant in managing JIAA.
(2) The Self-Regulatory Committee deals with:(a)	E stablishing, amending and abolishing self-regulatory rules and implementing“Follow-up Questionnaires,” and(b)	Other issues concerning self-regulatory rules.

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DIRECTORS AND AUDITORS(as of July 6, 2012)
CHAIRMAN

Yoichiro Iwama

VICE CHAIRMAN

Nobuaki Inomata

President , Representative Director
JP Morgan Asset Management (Japan) Ltd.

VICE CHAIRMAN

Kiyoshi Ujihara

President & Chief Executive Officer
Nissay Asset Management Corporation

VICE CHAIRMANMasamichi Yokoi

President & CEO
Daiwa SB Investments Ltd.

VICE CHAIRMAN &SENIOR MANAGING DIRECTOR

Kazuhiko Nagao

DIRECTOR

Jun-ichi Aizawa

Executive Managing Director
Daiwa Securities Co.,Ltd.

DIRECTOR

Hiroyuki Arita

Representative Director & Senior Executive Director
BlackRock Japan Co.,Ltd.

DIRECTOR

Hidemi Ijichi

Senior Executive Director
Japan Securities Dealers Association

DIRECTOR

Fumio Inui

Vice Chairman
The Investment Trusts Association,Japan

DIRECTOR

Teruaki Ueda

President
Daiwa Corporate Investment Co.,Ltd.

DIRECTOR

Jun UnoProfessor
Waseda Graduate School of Finance,Accounting and Law

DIRECTOR

Akiyoshi Oba

President & CEO
Tokio Marine Asset Management Co.,Ltd.

DIRECTOR

Masashi Ohmatsu

Representing Director & CEOUOB Asset Management (Japan) Ltd.

DIRECTOR

Hiroyuki Okuyama

Executive Board Member
The Japanese Institute of Certified Public Accountants

DIRECTOR

Shinichiro Tanaka

President
Mizuho Asset Management Co.,Ltd.

DIRECTOR

Yoshihito Bando

Executive Officer
Mizuho Trust & Banking Co.,Ltd.

DIRECTOR

Yasuaki Fukui

President & CEO
Nomura Real Estate Asset Management Co.,Ltd.

DIRECTOR

Ichiro Makijima

Executive Managing Director
The Association for Real Estate Securitization

DIRECTORNoboru Matsuda

Attorney at Law
Matsuda Noboru Law Office

DIRECTOR

Ken Yagi

President & Chief Executive Officer
Bayview Asset Management Co.,Ltd.

STANDING AUDITOR

Hideo Tokunou

AUDITOR

Yuuki Sakurai

President & Chief Executive Officer
Fukoku Capital Management, Inc.

AUDITORToshiyuki Yoshino

President
Okasan Asset Management Co.,Ltd.

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Number of Members

789

800

749

Total Number of Members
700

Introduction of the Financial
ADR System

Investment Management Members
Investment Advisory Members

600

543

Enactment of theFinancial Instruments
and Exchange Act

500

502

400
336

350

300
300

249
198

194121118261
214

207

200
121

133

138

116

123

100
77076

227247

246

155

145

122

12386

2003.3.31 2004.3.31 2005.3.31 2006.3.31 2007.3.31 2008.3.31 2009.3.31 2010.3.31 2011.3.31 2012.3.31

The number of members has been growing especially since the enforcement of the Financial
ADR System under which investment advisers must take the necessary measures forhandling complaints and solving disputes.

In Trillions of yen
180

AuM by Client Type

Pooled Investment Vehicles
160

Real Estate Related Securities Funds
Overseas Clients

140

Other Domestic Clients
Domestic Pention Funds

1201008060402001994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

The total AuM of Investment Management Members has increased to 157 trillion yen, whichis 1.7 times the AuM as of 2002. This chart shows that domestic pension funds account for
about 50% of the total AuM.
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AuM by Asset ClassIn Trillions of yen
140
OthersOverseas Bonds
Domestic Bonds

120

Overseas Stocks
Domestic Stocks
100

80

60

402002004

2005

2006

2007

2008

2009

2010

2011

2012

The ratio of domestic stocks has been declining due to the poor performance of Japanesestocks reflecting a global economic slowdown caused by the financial crisis that began in2008. In contrast, that of domestic bonds increased to 35% as of March 2012.

In Trillions of yen
80

AuM of Domestic Pension Funds
Public Pension Funds

70

Private Pention Funds

60
56 trillion yen
50

40

30

20

24 trillion yen

100

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

Although there has been some fluctuations caused by the movement of markets, the AuM ofdomestic pension funds has been steadily increasing. Especially, the growth of AuM of publicpension funds is significant. This appears to have been achieved mainly because of thereform of the Fiscal Investment and Loan Program in 2001, which allowed the assets ofpublic pension funds to be managed in the markets.
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http://www.jiaa.or.jp/
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Nihombashi, Chuo-ku, Tokyo, 103-0025 JAPAN
Phone : 03(3663)0505 Fax : 03(3663)0510
one minute walk from Exit 8, Kayabacho Station, Subway Tozai Line or Hibiya Line

（Published in September 2012）

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