Transparency of remuneration policies in relation to the integration of sustainability risks

KJR Management
We are making the following disclosures in accordance with Article 5 of Regulation (EU) 2019/2088 on
sustainability-related disclosures in the financial services sector (the “SFDR”).
Our compensation program applies to all full-time employees and seeks to provide competitivecompensation to attract, develop and retain talented individuals for the benefit of our shareholders andinvestors. Based on the concept of Total Compensation Approach (the approach of maintaining
competitiveness at the level of total rewards), fixed pay is determined based on the concept of Pay for
Job and variable pay based on the concept of Pay for Performance.
When adjusting fixed pay and determining the amount of variable pay, adjustments are made according
to the performance of the company, each department, and individuals.
In addition, a long-term incentive system, in which pay is tied to the company's performance and theinvestment unit prices of managed funds, has been introduced for senior-level employees as variable
remuneration. The system seeks to avoid outflows of human resource; to achieve stable management of
the company; to create growth of medium- to long-term funds from the viewpoint of investors; and tomotivate and reinforce consciousness for performance improvement of the asset management company.
Employees receive rewards that are determined according to their relative achievement and contribution
and role expectations for personal goals that relate to the organization's goals, including sustainabilitygoals.
Our personnel evaluation system consists of two parts:“Behavior Evaluation”, which evaluates thedegree to which the corporate philosophy is embodied, and Performance Evaluation” based on theconcept of management by objectives, with the purpose of supporting business strategies, missions, andthe realization of our corporate philosophy.
The "Behavior Evaluation" assesses the degree to which our personnel embodies the ‘Conduct Guidelines’,
based on our corporate philosophy “Mission, Vision & Core Values”. The ‘Conduct Guidelines’ require,among other things, that we understand the interests of all stakeholders, including investors, makesincere contributions, take the initiative in ensuring compliance with high standards, respect others, andleverage diversity to achieve high results.
The "Performance Evaluation" aims to improve the performance and growth of the organization as awhole by assessing the improvement of employees' abilities and career development, performance andmotivation, and contribution to the company through evaluation and feedback on the level ofachievement of individual goals linked to organizational goals. This includes measuring the achievements
and contribution to ESG-related targets, their embodiment of the corporate philosophy, and theirexpected roles. Employees are required to set targets concerning cooperation with other divisions, ESG,and participation in training. We make efforts to reinforce teamwork and ESG and support and encourage
improvement in employees' skills and abilities. Other goals and targets include:
Compliance-related objectives
Goals related to enhanced risk management
Targets for attending training
The rewards for fund managers are determined by similar evaluation methods, but in addition to theabove items, the following items, among others, are included in the Performance Evaluation:
Investment performanceContribution to asset strategies linked to relevant fund policies
Compliance with RPI policies. This policy is designed to integrate environmental and social
characteristics into the investment and asset management process.
Changes and management of the compensation system's policy are deliberated by the Compensation
Committee and reported to the Board of Directors. In addition, decisions on compensation for executive
officers and Senior General Manager, General Manager and Deputy General Manager need to be
discussed and approved by the Compensation Committee in accordance with the Compensation
Committee Regulations, and the status of the execution of duties of the Compensation Committee isreported to the Board of Directors.