Articles of Incorporation of the Investment Trusts Association, Japan
Established on July 10, 1957
Revised on January 19, 1959
Revised on March 31, 1960
Revised on April 23, 1962
Revised on April 18, 1964
Revised on February 4, 1966
Revised on August 31, 1966
Revised on April 28, 1967
Revised on September 30, 1967
Revised on April 30, 1968
Revised on April 30, 1969
Revised on February 20, 1970
Revised on September 21, 1971
Revised on September 13, 1972
Revised on August 17, 1973
Revised on August 16, 1974
Revised on September 19, 1975
Revised on September 17, 1976
Revised on September 16, 1977
Revised on November 29, 1977
Revised on September 22, 1978
Revised on September 19, 1980
Revised on March 20, 1981
Revised on July 17, 1981
Revised on November 24, 1983
Revised on October 29, 1985
Revised on January 26, 1988
Revised on September 29, 1988
Revised on October 22, 1993
Revised on February 20, 1998
Revised on November 27, 1998
Revised on June 13, 2000
Revised on November 17, 2000
Revised on September 21, 2001
Revised on January 20, 2006
Revised on February 16, 2007
Revised on September 21, 2007
Revised on June 30, 2008
Revised on June 30, 2011
Revised on June 29, 2012
Revised on March 31, 2017
Revised on June 30, 2020
Revised on June 30, 2021

Chapter 1
Article 1.

General Provisions

Name

This Corporation shall be called The Investment Trusts Association, Japan.

Article 2.

OfficeThis Corporation shall have its principal office in Chuo-ku, Tokyo.

Chapter 2
Article 3.

Purpose and Business

PurposeThe purpose of this Corporation is to contribute to the sound development of the investment managementbusiness, etc., such as investment trusts and investment corporations, and to the protection of investors.

Article 4.

Business

1. In order to achieve the purpose stipulated in the preceding article, this Corporation conducts the following
business:(1) Guidance, recommendations, and other services to Full Members (meaning Full Members as stipulated in
Article 7, Paragraph 1, Item 1; the same shall apply hereinafter) and financial instruments intermediaryservice providers (meaning a financial instruments intermediary service provider registered pursuant to
the provisions of Article 66-3 of the Act on Investment Trusts and Investment Corporations with a Full
Member as its entrusting financial instruments business operator, etc. (meaning the Entrusting Financial
Instruments Business Operator, etc. as stipulated in Article 66-2, paragraph (1), item (iv) of the
Financial Instruments and Exchange Act (Act No. 25 of 1948; hereinafter referred to as the “FIEA”);
the same shall apply hereinafter), which is a financial instruments intermediary service provider that,upon entrustment by a Full Member (limited to Full Members registered as operators of Type II
Financial Instruments Business pursuant to the provisions of Article 29 of the same Act), conducts thehandling of public offering or private placement of beneficiary certificates (including the book-entry
transfer beneficial interest in an investment trust; the same shall apply hereinafter) for the Full Member;the same shall apply hereinafter) to ensure that Full Members and financial instruments intermediaryservice providers comply with the provisions of the FIEA, the Act on Investment Trusts and Investment
Corporations (Act No. 198 of 1951; hereinafter referred to as the “Investment Trust Act”) and otherlaws and regulations in conducting the financial instruments business, etc.
(2) With regard to the financial instruments business, etc. conducted by Full Members and financial
instruments intermediary service providers, the services of making asset management appropriate,including public offering or private placements of beneficiary certificates, etc. (including beneficiary
certificates, investment securities (including book-entry transfer investment equity) or investment
corporation bond certificates (including book-entry transfer investment corporation bonds); the same
shall apply hereinafter) and other transactions, and other services necessary for protecting investors,
including investigations, guidance, and recommendation;(3) Investigation of the status of compliance of Full Members and financial instruments intermediary service
providers with the FIEA, the Investment Trust Act, orders based on these laws, dispositions based
thereon, or this Corporation’s Articles of Incorporation and other rules (including resolutions of theBoard of Directors; the same shall apply hereinafter), or the basic terms and conditions of theinvestment trust, the Certificate of Incorporation of the investment corporation, or the principle of goodfaith in transactions;(4) Settlement of complaints from investors concerning the financial instruments business, etc. conducted by
Full Members and financial instruments intermediary service providers;(5) Mediation in cases where there is a dispute over the financial instruments business, etc. conducted by Full
Members and financial instruments intermediary service providers;(6) Establishment of rules (including resolutions of the Board of Directors) and other services necessary forensuring the fairness of services pertaining to financial instruments business, etc. conducted by Full
Members and financial instruments intermediary service providers;(7) Services concerning the protection of personal information handled by Full Members and financial
instruments intermediary service providers;(8) Enlightening and disseminating knowledge pertaining to investment trusts and investment corporations;(9) Preparation and publication of statistics, etc. concerning investment trusts and investment corporations;(10) Investigation, research, and publication of investment trusts and investment corporations;(11) Communication and coordination of opinions between members and organizations, etc. (includingorganizations related to overseas investment trusts) related to the investment trust entrustment business,
etc. (meaning the acts listed in Article 2, paragraph (8), item (xii)(a) of the FIEA or the acts listed initem (xiv) of the same paragraph on a regular basis; the same shall apply hereinafter);(12) Proposals, requests, and communications to relevant authorities and other relevant organizations(including relevant overseas organizations);(13) Registration work of sales representatives conducted pursuant to the provisions of Article 64-7,
paragraph (1) of the FIEA as applied mutatis mutandis pursuant to Article 66-25 of the same Act; and(14) In addition to what is listed in the preceding items, publicity to investors and other services necessary forachieving the purpose of this Corporation.
2. The business stipulated in the preceding paragraph shall be conducted throughout Japan.

Article 5.

Operational Rules, etc.

1. This Corporation shall establish its operational rules that stipulate the methods of execution of the services
necessary for proper and reliable execution of the services stipulated in the preceding article.
2. Necessary matters concerning the enforcement of the Articles of Incorporation shall be stipulated by theRules on Enforcement of Articles of Incorporation (hereinafter referred to as the “Rules on Enforcement of
Articles of Incorporation”).

Article 6.

Establishment, Revision, or Abolition of Rules, etc.

The establishment, revision, and abolition of the Operational Rules; the Rules on Enforcement of Articles ofIncorporation; and other rules (including resolutions of the Board of Directors) shall be made by a resolution of
the Board of Directors.

Chapter 3
Article 7.

Members

Members of Corporation

1. The members of this Corporation shall be Full Members and Supporting Members. A person who may
become a Full Member or a Supporting Member shall be any of the persons listed in the following items:(1) Full Member: A person who has been registered to engage in investment management business pursuant to
the provisions of Article 29 of the FIEA (limited to a person who engages in the acts on a regular basis
listed in Article 2, paragraph (8), item (xii)(a) of the same Act or the acts listed in item (xiv) of the same
paragraph) and a trust company, etc. that is to become a trustee of an investment trust managed without
instructions from the settlor as stipulated in Article 47 of the Investment Trust Act (meaning a trust
company or a financial institution engaged in trust business licensed pursuant to the provisions of Article 3
or Article 53 of the Trust Business Act (Act No. 154 of 2004)); or(2) Supporting Member: a corporation that agrees with the purpose of the Authorized Financial Instruments
Firms Association, the Certified Financial Instruments Business Association, Certified Investor Protection
Organizations or the Association and cooperates in its activities and engages in business related to theinvestment trust entrustment business, etc.
2. Full Members stipulated in the preceding paragraph shall be members stipulated in the Act on General
Incorporated Associations and General Incorporated Foundations (Act No. 48 of 2006; hereinafter referred
to as the “General Corporation Act”) and members stipulated in Article 78, paragraph (2) of the FIEA.

Article 8.

Admission Procedures

1. A person who intends to become a Full Member or a Supporting Member of this Corporation must submit tothis Corporation an application for admission containing the matters stipulated in the Rules on Enforcementof Articles of Incorporation according to the type of member to be admitted and obtain the approval of theBoard of Directors.
2. The documents stipulated by the Rules on Enforcement of Articles of Incorporation shall be attached to an
application for admission submitted by a person who intends to become a Full Member or a Supporting
Member.

Article 9.

Refusal of Admission

1. This Corporation may refuse any admission to this Corporation if any person who has made an application
for admission as a Full Member falls under any of the following items:(1) A person who has violated laws and regulations, a disposition by the competent government agency basedon laws and regulations, or the Articles of Incorporation or other rules of this Corporation, and hasreceived a disposition of rescission of registration based on laws and regulations or expulsion from thisCorporation;(2) If an application for admission or the documents attached thereto stipulated in the preceding article containany false statement or fail to state any material particulars;(3) If a business suspension or a business improvement order has been issued by a government agency inaccordance with laws and regulations, it is found that a management control environment for realizing
proper business operations has not been established even at the time of application; or(4) When a person falls under any of the other grounds stipulated in the Rules on Enforcement of Articles ofIncorporation.
2. When a person who has applied for admission as a Supporting Member of this Corporation falls under any of
the items of the preceding paragraph, this Corporation may refuse the admission.

Article 10.

Notification of Member Representative, etc.

1. A Full Member who has obtained approval for admission pursuant to the provisions of Article 8, Paragraph 1
shall, pursuant to the provisions of the Rules on Enforcement of Articles of Incorporation, immediately
designate one (1) person representing the Full Member (hereinafter referred to as the “Full Member
Representative”) for the business of this Corporation and one (1) or less agent of the Full Member
Representative and notify this Corporation to that effect.
2. A Supporting Member who has obtained approval for admission pursuant to the provisions of Article 8,
Paragraph 1 shall notify this Corporation of a person who represents the Supporting Member pursuant to theprovisions of the Rules on Enforcement of Articles of Incorporation.
3. Any Full Member or Supporting Member shall notify this Corporation of any change in the member
representative (meaning the Full Member Representative stipulated in Paragraph 1 and the person
representing the Supporting Member stipulated in Paragraph 2) or its agent (meaning the agent stipulated in
Paragraph 1) that has been notified to this Corporation.

Article 11.

Admission Fees, Membership Fees, etc.

1. A Full Member who has obtained approval for admission to this Corporation shall pay the admission fee.
2. Any Full Member and Supporting Member shall pay the membership fee.
3. The amount of the admission fee and membership fee stipulated in the preceding two paragraphs, the methodof payment thereof, and other necessary matters shall be governed by the Rules on Admission Fees andMembership Fees stipulated in the General Meeting.
4. In cases where this Corporation has resolved to collect special membership fees that it finds necessary for
appropriating to special expenditures at the General Meeting, Full Members shall pay special membershipfees pursuant to the provisions thereof.

Article 12.

Matters to be Reported by Full Members

When a Full Member has come to fall under any of the events stipulated in the Rules on Enforcement of
Articles of Incorporation or other rules, the Full Member shall report the contents of the events and othernecessary matters to this Corporation without delay.

Article 13.

Matters to be Notified by Supporting Members

When a Supporting Member has come to fall under any of the events stipulated in the Rules on Enforcement of
Articles of Incorporation, the Supporting Member shall notify this Corporation to that effect without delay.

Article 14.

Submission of Materials, etc.

1. When this Corporation finds it necessary and appropriate for the public interest or protection of investors, it
may request a Full Member to submit reports or materials that will be helpful for understanding the businessof the financial instruments business, etc. pertaining to investment trusts and investment corporations
operated by the Full Member or financial instruments intermediary service provider, or to give explanationsin writing or orally.
2. When a Full Member is requested to submit reports or materials or give an explanation pursuant to theprovisions of the preceding paragraph, the Full Member shall not refuse such request without justifiablegrounds.

Article 15.

Investigation

1. With regard to the business of the financial instruments business, etc. pertaining to investment trusts andinvestment corporations operated by Full Members, this Corporation may investigate the status ofcompliance with the FIEA, the Investment Trust Act, orders based on these laws, dispositions based thereon,
this Corporation’s Articles of Incorporation or other rules, the basic terms and conditions of the investment
trust, the Certificate of Incorporation of the investment corporation, or the principle of good faith intransactions of the Full Members or financial instruments intermediary service providers, as well as thestatus of the business or property of the members, or the status of books and documents, or any other property
thereof.
2. Full Members shall respond to the investigation conducted by this Corporation pursuant to the provisions of
the preceding paragraph.

Article 16.

Voluntary Withdrawal

A Full Member or a Supporting Member may voluntarily withdraw from membership at any time by submitting
a Notification of Withdrawal from Membership stipulated in the Rules on Enforcement of Articles ofIncorporation.

Article 17.

Disposition of Members

1. When a Full Member has come to fall under any of the following, this Corporation may, after giving the Full
Member an opportunity for explanation, impose a fine on, suspend or restrict membership rights of, or expel
the Full Member. The expulsion shall be made based on a resolution of the General Meeting, and theimposition of a fine and the suspension or restriction of membership rights shall be made based on a
resolution of the Board of Directors within the scope of the degree of disposition stipulated in the Rules on
Disposition of Members, etc.:(1) When it is found that the matters stated in the application for admission stipulated in Article 8 or theattached documents stipulated in the Rules on Enforcement of Articles of Incorporation submitted tothis Corporation have been falsely stated or lacked any material particulars;(2) When a Full Member fails to pay the admission fee, membership fee, or special membership fee

stipulated in Article 11 by the prescribed due date;(3) When a Full Member fails to make a report stipulated in Article 12 or makes a false report;(4) When a Full Member fails to submit or explain the reports or materials stipulated in Article 14 or submits
or explains false reports or materials;(5) When a Full Member refuses, interferes with, or evades the investigation stipulated in Article 15;(6) When a Full Member violates the FIEA, the Investment Trust Act, an order based on these laws, or any
disposition based thereon, the Association’s Articles of Incorporation or other rules, the basic terms andconditions of the investment trust, or the Certificate of Incorporation of the investment corporation, or
has committed any act contrary to the principle of good faith in transactions; or(7) When a Full Member has otherwise disrupted the order or reputation of this Corporation.

2. This Corporation may, when it finds that a Supporting Member falls under any of the following items, after
giving the Supporting Member an opportunity for explanation, make a disposition of expulsion by aresolution of the Board of Directors:(1) When it is found that the matters stated in the application for admission stipulated in Article 8 submitted
to this Corporation have been falsely stated or lacked any material particulars;(2) When a Supporting Member fails to pay the membership fee stipulated in Article 11 by the prescribed due
date;(3) When a Supporting Member falls under the events stipulated in the Rules on Enforcement of Articles ofIncorporation or other rules; or(4) When a Supporting Member has otherwise disrupted the order or reputation of the Association.
3. The disposition of expulsion of a Supporting Member pursuant to the provisions of the preceding paragraphshall be made by a majority of two-thirds (2/3) or more of the voting rights of the Board of Directors.

Article 18.

Recommendations to Full Members

When this Corporation finds that its Full Member’s status of compliance with the FIEA, the Investment Trust
Act, orders based on these laws, or dispositions based thereon, or this Corporation’s Articles of Incorporationor other rules, the basic terms and conditions of the investment trust, the Certificate of Incorporation of theinvestment corporation, or the principle of good faith in transactions, or the status of the business of asset
management, etc. or the status of property is inappropriate, it may make a recommendation by indicating the
grounds therefor.

Article 19.

Loss of Full Membership Qualification

In addition to the case of Article 16 or Article 17, Paragraph 1, a Full Member shall lose its qualification when
it falls under any of the following:(1) When a Full Member loses the membership qualification stipulated in Article 7, Paragraph 1, Item 1;(2) When all Full Members consent; or(3) When the relevant Full Member has been dissolved.

Article 20.

Loss of Qualification of Supporting Members

In addition to the case of Article 16 or Article 17, Paragraph 2, a Supporting Member shall lose its qualification
when the Supporting Member is dissolved.

Article 21.

List of Members

1. This Corporation shall prepare a Full Member list and a Supporting Member list, keep them at the principal
office of this Corporation, and make them available for public inspection.
2. Matters to be stated in the Full Member list and the Supporting Member list shall be stipulated in the Rules on
Enforcement of Articles of Incorporation.

Chapter 4
Article 22.

General Meeting

Configuration

1. The General Meeting shall consist of all Full Members.
2. The General Meeting stipulated in the preceding paragraph shall be the General Meeting of Members
stipulated in the General Corporation Act.

Article 23.

Authority

The General Meeting shall resolve the following matters:(1) Expulsion of a Full Member;(2) Appointment or dismissal of Directors and Auditors;(3) Total amount of remuneration, etc. for Directors and Auditors and payment standards;(4) Approval of balance sheet and profit and loss statement, and annexed detailed statements thereof;(5) Amendment of Articles of Incorporation;(6) Dissolution and disposition of residual assets; or(7) Other matters stipulated by laws and regulations or these Articles of Incorporation as those to be resolved
at the General Meeting.

Article 24.

Holding

The General Meeting shall be held once as an Ordinary General Meeting within three months after the end ofeach business year, and an Extraordinary General Meeting shall be held, as necessary.

Article 25.

Convocation

1. The General Meeting shall be convened by the Chairperson based on a resolution of the Board of Directors
unless otherwise stipulated by laws and regulations.
2. A Full Member who holds one-fifth (1/5) or more of the voting rights of all Full Members may request the
Chairperson to convene a General Meeting by indicating the matters that are the purpose of the meeting andthe reason for the convocation.

Article 26.

Chairperson

The chairperson of the General Meeting shall be the Chairperson.

Article 27.

Voting Rights

The number of voting rights at a General Meeting shall be one for each Full Member.

Article 28.

Resolution

1. Resolutions of a General Meeting shall be made by a majority of the voting rights of the Full Memberspresent at the meeting where the Full Members who hold a majority of the voting rights of all Full Members
are present.
2. Notwithstanding the provisions of the preceding paragraph, the following resolutions shall be made by amajority of not less than half of the total Full Members and not less than two-thirds (2/3) of the voting rights
of all Full Members:(1) Expulsion of a Full Member;(2) Dismissal of Auditors;(3) Amendment of the Articles of Incorporation;(4) Dissolution; and(5) Other matters stipulated by laws and regulations.
3. When resolving a proposal to appoint a Director or Auditor, the resolution stipulated in Paragraph 1 shall bemade for each candidate.
4. If the total number of candidates for Director or the total number of candidates for Auditor exceeds the fixed
number stipulated in Article 30, the candidates shall be elected from among the candidates who haveobtained a majority of the votes until reaching the fixed number in the order of the highest number of votes.

Article 29.

Minutes

1. Minutes shall be prepared for the proceedings of the General Meeting pursuant to the provisions of laws andregulations.
2. The chairperson and two Directors present shall affix their names and seals to the minutes stipulated in thepreceding paragraph.

Chapter 5
Article 30.

Appointment of Officers

1. This Corporation shall have the following officers:(1) Directors: 20 or more, but not more than 25; and(2) Auditors: Not more than three
2. One of the Directors shall be the Chairperson.

Officers

3. The Chairperson stipulated in the preceding paragraph shall be the Representative Director stipulated in
Article 91, paragraph (1), item (i) of the General Corporation Act.
4. Two or fewer Directors may be Executive Directors stipulated in Article 91, paragraph (1), item (ii) of theGeneral Corporation Act.

Article 31.

Appointment of Officers

1. Directors and Auditors shall be appointed by a resolution of the General Meeting.
2. The election of the Chairperson shall be made by a resolution of the Board of Directors.
3. Several Vice-chairpersons may be elected from among the Directors by a resolution of the Board of
Directors.
4. Managing Directors may be elected from among the Directors other than the members by a resolution of theBoard of Directors.
5. The Managing Director stipulated in the preceding paragraph shall be the Executive Director.
6. The Vice-chairperson may concurrently serve as a Managing Director.
7. An Auditor may not concurrently serve as a Director or employee of this Corporation.

Article 32.

Duties and Authority of Directors

1. Directors shall constitute the Board of Directors and shall execute their duties in accordance with laws andregulations and these Articles of Incorporation.
2. The Chairperson shall represent this Corporation and execute its business pursuant to the provisions of laws
and regulations and these Articles of Incorporation.
3. The Vice-chairperson shall assist the Chairperson and execute the business of this Corporation. In addition, if
the Chairperson is unable to carry out his/her duties or is vacant in the office thereof, the Vice-chairperson
shall act for the Chairperson in the execution of his/her duties according to the order predetermined by the
Board of Directors.
4. Managing Directors shall assist the Chairperson and Vice-chairperson and execute the business of thisCorporation.
5. The Chairperson, Vice-chairperson, and Managing Directors shall report the status of the execution of theirduties to the Board of Directors at least twice every business year at intervals of more than four months.

Article 33.

Duties and Authority of Auditors

1. Auditors shall audit the execution of the duties of Directors and prepare audit reports pursuant to theprovisions of laws and regulations.
2. Auditors may, at any time, request Directors and employees to report on the business and investigate thestatus of the business and property of this Corporation.

Article 34.

Term of Office of Officers

1. The term of office of a Director shall expire at the conclusion of the Ordinary General Meeting for the lastbusiness year ending within two years after his/her appointment, provided, however, that the term of office of

a Director appointed as a substitute shall be the remaining term of office of his/her predecessor.
2. The term of office of an Auditor shall expire at the conclusion of the Ordinary General Meeting for the lastbusiness year ending within two years after his/her appointment, provided, however, that the term of office ofan Auditor appointed as a substitute shall be the remaining term of office of his/her predecessor.
3. If the fixed number stipulated in Article 30 becomes insufficient, a Director or Auditor shall still have therights and obligations of a Director or Auditor even after his/her retirement due to the expiration of his/herterm of office or resignation until a newly appointed person assumes office.

Article 35.

Dismissal of Officers

Directors and Auditors may be dismissed by a resolution of the General Meeting.

Article 36.

Remuneration, etc. for Officers

No remuneration, etc. shall be paid to the Directors and Auditors, provided, however, that a full-time Director,
etc. may be paid the amount calculated in accordance with the rules on payment of remuneration, etc.
determined at the General Meeting as remuneration, etc.

Chapter 6
Article 37.

Board of Directors

Configuration

1. The Board of Directors shall be established in this Corporation.
2. The Board of Directors shall consist of all Directors.
Article 38.

Authority

The Board of Directors shall execute the following functions:(1) Decisions on the execution of business of this Corporation;(2) Supervision of the execution of duties by Directors;(3) Notwithstanding the provisions of the preceding two items, matters concerning the establishment,
revision, and abolition of the Rules on Self-Regulation, etc. may be delegated to the Self-Regulation
Committee (meaning the Self-Regulation Committee stipulated in Chapter 2 of the Rules on
Establishment of Committee), provided, however, that this shall not preclude the Board of Directors
from exercising itself if it finds it particularly necessary in order to ensure the proper operation of thebusiness of the Association; and(4) Election and dismissal of the Chairperson, Vice-chairperson, and Managing Directors.
Article 39.

Convocation

1. The Board of Directors shall be convened by the Chairperson.
2. If there is a vacancy in the office of the Chairperson or the Chairperson is unable to execute his/her duties,
each Director shall convene a meeting of the Board of Directors.

Article 40.

Resolution

Resolutions of the Board of Directors shall be made with the attendance of a majority of Directors and with thevotes of a majority of Directors present, excluding those having a special interest in the resolution.
Article 40-2. Omission of Resolution
In the case where a Director has made a proposal with regard to a matter that is the purpose of a resolution of theBoard of Directors pursuant to the provisions of Article 96 of the General Corporation Act, if all Directors
entitled to participate in the resolution manifest their intention to consent to the proposal in writing or by meansof electromagnetic record, it shall be deemed that a resolution to approve the proposal has been made by the
Board of Directors, provided, however, that this shall not apply when an Auditor makes an objection.
Article 40-3. Omission of Report
When a Director or Auditor has notified all Directors and Auditors of the matters to be reported to the Board of
Directors pursuant to the provisions of Article 98 of the General Corporation Act, the Director or Auditor shallnot be required to report such matters to the Board of Directors, provided, however, that this shall not apply tothe report pursuant to the provisions of Article 32, Paragraph 5.
Article 41.

Minutes

1. Minutes shall be prepared for the proceedings of the Board of Directors pursuant to the provisions of laws
and regulations.
2. The Chairperson and Auditors present shall affix their names and seals to the minutes stipulated in thepreceding paragraph.

Article 42.

Article 43.

Chapter 7(Deleted)

Chapter 8

Committee

DeletedCommittee

1. This Corporation may establish committees by a resolution of the Board of Directors.
2. The Chairperson shall appoint the members of committees with the consent of the Board of Directors.
3. Necessary matters concerning the composition and operation of committees shall be separately determinedby the Board of Directors.

Chapter 9
Article 44.

Property and Accounting

Endowment, etc.

1. This Corporation shall count the following as its endowment:(1) The property stated as the endowment in the inventory of assets at the time of the registration of transition
to a general incorporated association;(2) A fund for which the admission fee stipulated in Article 11 is set aside;(3) Property donated as an endowment; and(4) Property resolved by the Board of Directors to be transferred to the endowment.
2. This Corporation may retain the specified cost reserve funds for appropriation to expenditures for expenses
specifically disbursed for the execution of certain activities in the future (limited to those appropriated asbusiness expenses or administrative expenses), and the necessary matters concerning the specified costreserve funds shall be determined by a resolution of the Board of Directors.
Article 45.

Restrictions on Disposition, etc. of Endowment

The endowment stipulated in Paragraph 1 of the preceding article shall not be disposed of or pledged as security,
provided, however, that, in the event of any of the grounds specified by the Board of Directors, the whole or apart of such an endowment may be disposed of or pledged as security by a resolution of the Board of Directors.
Article 46.

Business YearThe business year of this Corporation shall commence on April 1 of each year and end on March 31 of thefollowing year.
Article 47.

Business Plan and Income and Expenditure Budget

1. The business plan and the income and expenditure budget of this Corporation shall be prepared by the
Chairperson and approved by the General Meeting by a resolution of the Board of Directors no later than the
day preceding the day of commencement of each business year. The same shall apply to any change thereto.
2. The documents stipulated in the preceding paragraph shall be kept at the principal office until the end of therelevant business year and shall be made available for public inspection.
Article 48.

Business Report and Settlement of Accounts

1. With respect to the business report and settlement of accounts of this Corporation, the Chairperson shallprepare the following documents after the end of each business year and obtain the approval of the Board of
Directors after having them audited by Auditors:(1) Business report;(2) Annexed detailed statement of the business report;(3) Balance sheet;(4) Profit and loss statement; and(5) Annexed detailed statements to balance sheet and profit and loss statement.

2. Among the documents approved in accordance with the preceding paragraph, the documents stipulated in
Item 1 shall be reported to the Ordinary General Meeting, and the documents stipulated in Items 3 and 4 shallbe approved by the Ordinary General Meeting.
3. In addition to the documents stipulated in Paragraph 1, an audit report shall be kept at the principal office forfive (5) years, and the Articles of Incorporation, a list of Directors and Auditors shall be kept at the principal
office and made available for public inspection.

Article 49.

Distribution of Surplus

This Corporation may not distribute its surplus.

Article 50.

Management and Operation of Assets

The Chairperson shall manage and operate the assets of this Corporation by a resolution of the Board of
Directors.

Chapter 10
Article 51.

Amendment of Articles of Incorporation and Dissolution

Amendment of Articles of Incorporation

These Articles of Incorporation may be amended by a resolution of the General Meeting.

Article 52.

Dissolution

This Corporation shall be dissolved by a resolution of the General Meeting or by any other cause stipulated bylaws and regulations.

Article 53.

Ownership of Residual Assets

The residual assets of this Corporation in the case of liquidation shall be donated to the juridical person listed in
Article 5, item (xvii) of the Act on Authorization of Public Interest Incorporated Associations and Public
Interest Incorporated Foundations (Act No. 49 of 2006) or to the national government or local governments by
a resolution of the General Meeting of Members.

Chapter 11
Article 54.

Method of Public Notice

Method of Public Notice

1. The public notice of this Corporation shall be made by electronic public notice.
2. If the electronic public notice stipulated in the preceding paragraph cannot be made due to an accident orother unavoidable reason, it shall be made in the official gazette.

Chapter 12
Article 55.

Secretariat

Secretariat

1. The secretariat shall be established in this Corporation in order to handle the business of this Corporation.
2. The secretariat shall have a secretary general, and the secretary general and Important Employees shall be
appointed and dismissed by the Chairperson with the approval of the Board of Directors.
3. The secretariat shall have employees, who shall be appointed and dismissed by the Chairperson.
4. Other necessary matters concerning the secretariat shall be separately determined by the Chairperson.

Chapter 13
Article 56.

Miscellaneous Provisions

Detailed Regulations

In addition to what is stipulated in these Articles of Incorporation, necessary matters concerning the operationof this Corporation shall be determined by a resolution of the Board of Directors.
Supplementary Provisions
1. This amendment to the Articles of Incorporation shall come into force on May 1, 1964.
2. In the event of a shortfall in the amount of funds to be borne by a member pursuant to the provisions of Article
7, Paragraph 1, Item 1 of the Articles of Incorporation after the amendment, the member shall immediately
pay the shortfall.

Supplementary ProvisionThis amendment of the Articles of Incorporation shall come into force on February 4, 1966.
Supplementary ProvisionThis amendment of the Articles of Incorporation shall come into force on August 31, 1966.
Supplementary ProvisionThis amendment of the Articles of Incorporation shall come into force on April 28, 1967.
Supplementary Provisions
1. This amendment of the Articles of Incorporation shall come into force on October 1, 1967.
2. These Articles of Incorporation shall be amended as required prior to October 1, 1968, so that the amount of
the contribution to the fund and the voting rights of the members stipulated in Article 5, Item 1 shall bemaintained by a majority of all the members of the Association, and the amount of the contribution to thefund and the voting rights of the members shall be equal among the members stipulated in Item 1 of the same
Article and among the members stipulated in Item 2 of the same Article, respectively. The amount of thecontribution to the fund already paid by the members shall be adjusted as required, and the method of suchadjustment shall be stipulated in these Articles of Incorporation.
3. The provisions of Article 7 shall, in the case of a capital increase by members, suspend its application until
the amendment of the Articles of Incorporation pursuant to the provisions of the preceding paragraph.
Supplementary Provisions
1. This amendment of the Articles of Incorporation shall come into force on May 1, 1968.
2. Any member whose amount of funds to be borne pursuant to the provisions of Article 7 of the amended
Articles of Incorporation has increased shall pay the increase by May 31, 1968.
3. Any member whose amount of funds to be borne pursuant to the provisions of Article 7 of the amended
Articles of Incorporation has decreased shall be refunded by the Association with respect to the amount ofsuch decreased amount determined by the Board of Directors in consideration of the status of redemption of
securities actually managed by the Association.
Supplementary ProvisionThis amendment of the Articles of Incorporation shall come into force on May 1, 1969.
Supplementary Provisions
1. The amended provisions of Articles 18 and 26 shall come into force on April 1, 1970.
2. Notwithstanding the provisions of Article 18, Paragraph 3, the first Ordinary General Meeting after theenforcement of the amended provisions shall be held in April 1970.
3. Notwithstanding the provisions of Article 26, the fiscal year including the date of enforcement of theamended provisions shall be from April 1, 1970, to September 30, 1970.
Supplementary Provision
The amended provisions of Articles 29-2 and 32 shall come into force on September 23, 1971.
Supplementary Provisions
1. The amended provisions of Article 7 shall come into force on September 25, 1972.
2. A member shall immediately pay the shortfall of the fund to be borne pursuant to the provisions of Article 7of the amended Articles of Incorporation.
Supplementary Provisions
1. The amended provisions of Article 7 shall come into force on August 29, 1973.
2. A member shall immediately pay the shortfall of the fund to be borne pursuant to the provisions of Article 7of the amended Articles of Incorporation.

Supplementary Provisions
1. The amended provisions of Article 7 shall come into force on August 28, 1974.
2. A member shall immediately pay the shortfall of the fund to be borne pursuant to the provisions of Article 7of the amended Articles of Incorporation.

Supplementary Provisions
1. The amended provisions of Article 7 shall come into force on October 7, 1975.
2. A member shall immediately pay the shortfall of the fund to be borne pursuant to the provisions of Article 7of the amended Articles of Incorporation.

Supplementary Provisions
1. The amended provisions of Article 7 shall come into force on October 4, 1976.
2. A member shall immediately pay the shortfall of the fund to be borne pursuant to the provisions of Article 7of the amended Articles of Incorporation.

Supplementary Provisions
1. The amended provisions of Article 7 shall come into force on October 1, 1977.
2. A member shall immediately pay the shortfall of the fund to be borne pursuant to the provisions of Article 7of the amended Articles of Incorporation.

Supplementary ProvisionThis amendment shall come into force on December 7, 1977.

Supplementary Provisions
1. This amendment shall come into force on October 3, 1978.
2. A member shall immediately pay the shortfall of the fund to be borne pursuant to the provisions of Article 7of the amended Articles of Incorporation.

Supplementary Provisions
1. This amendment shall come into force on October 9, 1980.
2. A member shall immediately pay the shortfall of the fund to be borne pursuant to the provisions of Article 7of the amended Articles of Incorporation.

Supplementary Provisions
1. This amendment shall come into force on April 8, 1981.
2. A member shall immediately pay the shortfall of the fund to be borne pursuant to the provisions of Article 7of the amended Articles of Incorporation.

Supplementary Provisions
1. This amendment shall come into force on August 6, 1981.
2. As of the date of enforcement of the Amended Articles of Incorporation, funds paid in pursuant to theprovisions of Article 7 prior to the amendment shall be deemed to be funds accepted pursuant to theprovisions of Article 7 after the amendment.

Supplementary ProvisionThis amendment shall come into force on November 24, 1983.

Supplementary ProvisionThis amendment shall come into force on October 29, 1985.

Supplementary ProvisionThis amendment shall come into force on January 26, 1988.

Supplementary Provisions
1. The amended provisions of Article 12 shall come into force on October 1, 1988.
2. The amended provisions of Article 18, Paragraph 3 and Article 26 shall come into force on April 1, 1989.
3. With regard to the application of the provisions of Article 26 prior to the amendment to the fiscal year
commencing on October 1, 1988, “September 30 of the following year” in the same Article shall be read as“March 31 of the following year.”Supplementary ProvisionThis amendment shall come into force on October 22, 1993.

Supplementary provisionThis amendment of the Articles of Incorporation shall come into force on the date of the approval of thecompetent government agency (March 23, 1998).

Supplementary Provisions
1. This amendment of the Articles of Incorporation shall come into force on December 1, 1998.
2. At the time of the enforcement of the amended Articles of Incorporation, a member who has actuallyobtained approval pursuant to Article 6 of the Articles of Incorporation prior to the amendment shall bedeemed to have actually obtained approval pursuant to Article 7 of the Articles of Incorporation after theamendment.
3. At the time of the enforcement of the amended Articles of Incorporation, the admission fee stipulated in
Article 8 of the Articles of Incorporation, after the amendment pertaining to a member deemed to have been
approved pursuant to Article 7 of the Articles of Incorporation after the amendment, shall be appropriatedfrom the fund stipulated in Article 7 of the Articles of Incorporation prior to the amendment that is theamount equivalent to the admission fee out of the amount already paid by the member. In this case, theamount other than the amount equivalent to the admission fee, out of the amount already paid by such amember, shall be appropriated to the second special fund as the donation stipulated in Article 42, Paragraph1.
4. At the time of the enforcement of the amended Articles of Incorporation, the membership fee for fiscal 1998
stipulated in Article 9 of the amended Articles of Incorporation, pertaining to a member deemed to have been
approved pursuant to Article 7 of the amended Articles of Incorporation, shall be the membership fee
determined pursuant to the provisions of Article 8 of the Articles of Incorporation prior to the amendment.
5. At the time of the enforcement of the amended Articles of Incorporation, the term of office of Directors andAuditors, who have been actually appointed pursuant to the provisions of Article 13 of the Articles ofIncorporation prior to the amendment, shall be governed by the provisions of Article 15 of the Articles ofIncorporation prior to the amendment.
*The amended provisions have been amended in all Articles from Articles 1 through 33.

Supplementary ProvisionThis amendment of the Articles of Incorporation shall come into force on July 1, 2000.

Supplementary ProvisionThis amendment of the Articles of Incorporation shall come into force on November 30, 2000.

Supplementary ProvisionThis amendment of the Articles of Incorporation shall come into force on October 9, 2001.

Supplementary ProvisionThis amendment shall come into force on March 1, 2006.

Supplementary ProvisionThis amendment shall come into force on March 8, 2007.

Supplementary ProvisionThis amendment shall come into force on the date of approval by the competent minister (September 30, 2007).

Supplementary Provisions
1. This amendment shall come into force on October 1, 2008.
2. At the time of the enforcement of the amended Articles of Incorporation, a person registered to engage in theinvestment management business pursuant to the provisions of Article 29 of the FIEA, who was actually amember stipulated in the Articles of Incorporation prior to the amendment and a trust company, etc. that is atrustee company of an investment trust managed without instructions from the settlor stipulated in Article 47of the Investment Trust Act, shall be deemed to be a Full Member stipulated in Article 6 after the amendment

as of the date of enforcement of the amended provisions.
3. At the time of the enforcement of the amended Articles of Incorporation, a person registered to engage in theType I Financial Instruments Business pursuant to the provisions of Article 29 of the FIEA, who was actuallya member stipulated in the Articles of Incorporation prior to the amendment (excluding a person fallingunder 2.), shall be deemed to be a Supporting Member stipulated in Article 6 after the amendment as of thedate of enforcement, except where the person has submitted a notification of withdrawal in advance.

Supplementary Provisions
1. This amendment shall come into force as of the date of registration of incorporation of general corporations
stipulated in Article 106, paragraph (1) as applied mutatis mutandis by replacing certain terms pursuant to
Article 121, paragraph (1) of the Act on Arrangement of Relevant Acts Incidental to Enforcement of the Act
on General Incorporated Associations and General Incorporated Foundations and the Act on Authorizationof Public Interest Incorporated Associations and Public Interest Incorporated Foundations (Act No. 50 of
2006).
2. The first Chairperson of this Corporation shall be Kazutoshi Inano and the Executive Director (theVice-chairperson and Managing Director) shall be Fumio Inui.
3. Notwithstanding the provisions of Article 46, when any registration of dissolution of a special case juridical
person under the Civil Code stipulated in Article 106, paragraph (1) as applied mutatis mutandis by replacing
certain terms pursuant to Article 121, paragraph (1) of the Act on Arrangement of Relevant Acts Incidental to
Enforcement of the Act on General Incorporated Associations and General Incorporated Foundations and the
Act on Authorization of Public Interest Incorporated Associations and Public Interest Incorporated
Foundations and any registration of incorporation of a general corporation have been made, the day
preceding the date of registration of dissolution shall be the last day of the business year, and the date ofregistration of incorporation shall be the commencement day of the business year.
4. In the case where more than one agent has been notified as of the date of enforcement of this amended
provision pursuant to the provisions of Article 7-3 of the Old Articles of Incorporation (meaning the Articles
of Incorporation prior to the amendment dated June 30, 2011), such agent shall be the agent stipulated in
Article 10, Paragraph 1 after the amendment until the change of such an agent is made.

Supplementary Provisions
This amendment shall come into force on the date of the registration (January 4, 2013) of the incorporation of ageneral corporation stipulated in Article 106, paragraph (1) as applied mutatis mutandis by replacing certain
terms pursuant to Article 121, paragraph (1) of the Act on Arrangement of Relevant Acts Incidental to
Enforcement of the Act on General Incorporated Associations and General Incorporated Foundations and the
Act on Authorization of Public Interest Incorporated Associations and Public Interest Incorporated
Foundations (Act No. 50 of 2006).

Supplementary ProvisionThis amendment shall come into force on June 30, 2017.

Supplementary ProvisionThis amendment shall come into force on June 30, 2020.

Supplementary ProvisionThis amendment shall come into force on the date of approval by the competent government agency (July 1,2021).

Rules on Admission Fees and Membership Fees
Established on June 30, 2011
Revised on June 29, 2012
Revised on March 31, 2017
Revised on June 30, 2017
Revised on June 29, 2018

Chapter 1
Article 1.

General Provisions

PurposeThe purpose of these Rules is to stipulate necessary matters concerning the admission fee and membership fee,
etc. stipulated in Article 11 of the Articles of Incorporation.

Chapter 2
Article 2.

Admission Fee

Amount of Admission Fee

The admission fee for a Full Member stipulated in Article 11, Paragraph 1 of the Articles of Incorporation shallbe 5 million yen.

Article 3.

Handling of Admission Fee upon Merger, etc.

When a Full Member merges and a merging company intends to newly join as a Full Member, the admission
fee shall be exempted. In addition, the same shall apply to the case where a company accepts most of thebusiness from a Full Member and intends to newly join as a Full Member.

Article 4.

Method of Payment of Admission Fee, etc.

1. The admission fee stipulated in Article 2 shall be paid no later than the third business day counting from thebusiness day following the date of admission (meaning the date of approval of the admission or the datedesignated by the Association; the same shall apply hereinafter) based on the request of the Association;
provided, however, that if the relevant Full Member notifies the Association in advance that it is difficult forsuch Full Member to make a payment by the third business day due to unavoidable circumstances and the
Association approves such notification, such Full Member may make a payment by the day designated by the
Association.
2. The Association shall not refund the admission fee paid pursuant to the provisions of the preceding
paragraph.

Chapter 3
Article 5.

Membership Fee

Membership Fees for Full Members

1. The membership fee for a Full Member stipulated in Article 11, Paragraph 2 of the Articles of Incorporation
shall be the total amount of the equal membership fee and the variable membership fee.
2. The membership fee of a Full Member stipulated in the preceding paragraph shall be calculated on the basisof the total amount of membership fees of Full Members (meaning the amount obtained by deducting the
expected income such as investment income of assets, business income, and membership fee income ofSupporting Members from the total expenditure in the budget for each business year of the Association; thesame shall apply hereinafter).

Article 6.

Equal Membership Fee

1. The Equal membership fee shall be the amount obtained by dividing the amount equivalent to 15% of thetotal amount of the membership fees of Full Members (hereinafter referred to as the “Total Equal
Membership Fees”) by the number of Full Members at the end of the immediately preceding business year.
2. Notwithstanding the provisions of the preceding paragraph, if the equal membership fee for new Full
Members is reduced pursuant to the provisions of Article 9, Item 2 (a), the reduced amount shall be added tothe total amount of equal membership fee for Full Members other than new Full Members calculated by themethod stipulated in the preceding paragraph, and the total amount after the addition shall be divided by the
number of companies of Full Members other than new Full Members, which shall be the equal membershipfee for Full Members other than new Full Members.

Article 7.

Variable Membership Fee

1. The variable membership fee shall be the amount obtained by subtracting the Total Equal Membership Feesfrom the total amount of membership fees of Full Members (hereinafter referred to as the “Total Variable
Membership Fees”) prorated by the share of the total net assets, etc. of each Full Member with respect to thetotal amount of net assets and the amount of the investment corporation’s asset management (hereinafterreferred to as the “Total Amount of Net Assets, etc.”) of investment trusts (including foreign investment
trusts stipulated in Article 2, paragraph (1), item (x) of the Financial Instruments and Exchange Act;
hereinafter the same shall apply in this paragraph) for the immediately preceding business year of the Full
Member.

The Total Amount of Net Assets, etc. shall include the Total Amount of Net Assets, etc. ofprivate placement investment trusts and investment corporations.
2. The Total Amount of Net Assets, etc. for the immediately preceding business year stipulated in the preceding
paragraph shall be the average amount of the Total Amount of Net Assets, etc. at the end of each month of
the immediately preceding business year. In this case, the average amount of the Total Amount of Net Assets,etc. of a Full Member who joined in the immediately preceding business year shall be the average amount of
the Total Amount of Net Assets, etc. at the end of the month from the month containing the date of admission
to the end of the immediately preceding business year.
3. In calculating the average amount of the Total Amount of Net Assets, etc. stipulated in the precedingparagraph, the total net assets of investment trusts at the end of each month shall be calculated as follows: 1/8
for exchange-traded funds and other similar exchange-traded investment trusts, and daily settlement-type
public and corporate bond investment trusts such as MRF; 1/4 for public and corporate bond investment
trusts, etc. (meaning public and corporate bond investment trusts other than daily settlement-type public andcorporate bond investment trusts (including privately placed public and corporate bond investment trusts)
and bond-based investment trusts; the same shall apply hereinafter); and 1/2 for privately placed stock
investment trusts.

Article 8.

Maximum Amount of Membership Fee, etc.

1. The membership fee of a Full Member for which the total amount of the equal membership fee and thevariable membership fee calculated pursuant to the provisions of the preceding two Articles exceeds 10% of
the total amount of the membership fee of Full Members shall be 10% of the total amount of the membershipfee of Full Members. In this case, the variable membership fee for such Full Member shall be the amountobtained by deducting the equal membership fee stipulated in Article 6 from the amount of 10% of the total
membership fee of Full Members.
2. In the case where the provisions of the preceding paragraph apply, the variable membership fees of a Full
Member other than such Full Member shall be recalculated by the method stipulated in Paragraph 1 of thepreceding Article on the basis of the amount obtained by deducting the amount calculated pursuant to theprovisions of the preceding paragraph from the Total Variable Membership Fees.

Article 9.

Special Provisions on Membership Fees for New Full Members

Notwithstanding the provisions of Articles 6 and 7, the membership fee for a new Full Member (excluding thecase where a company that merges with a Full Member or receives most of the business from a Full Member
newly joins the Association; hereinafter referred to as the “New Full Member”) shall be the amount stipulated
in each of the following items for the business year listed in the following items:(1) For the business year of the date of admission: The amount calculated by prorating the total amount ofequal membership fees and variable membership fees listed in the following items on a daily basis
according to the number of days from the relevant date of admission to the end of the relevant business
year:(a) One half (1/2) of the equal membership fee for the relevant business year calculated pursuant to theprovisions of Article 6, Paragraph 1(b) The variable membership fee obtained by multiplying the Total Variable Membership Fees for the
relevant business year stipulated in Article 7, Paragraph 1 by the share of the Total Amount of Net
Assets, etc. at the end of the month of the date of the admission of the relevant New Full Member
with respect to the total amount of the Total Amount of Net Assets, etc. that was the basis forcalculation of the variable membership fee for the relevant business year
(2) For the business year following the business year of the date of admission: The total of equal membershipfees and variable membership fees listed in the following items:

(a) One half (1/2) of the equal membership fee for the relevant business year calculated pursuant to theprovisions of Article 6, Paragraph 1(b) Variable membership fees for the relevant business year calculated pursuant to the provisions ofArticle 7

Article 10.

Membership Fee of Merging Company, etc.

When a reason for a merger, etc. arises among Full Members, the membership fees for the relevant businessyear shall be as stipulated in the following items according to the categories listed in the respective items:(1) In the event that a Full Member merges with another Full Member or receives most of the business ofanother Full Member: The membership fee (limited to the amount unpaid) for the relevant business year of
the merged company or another Full Member who transferred most of the business shall be borne by thesurviving Full Member.
(2) In the event that a Full Member merges with or receives most of the business from a Full Member andnewly joins the Association as a Full Member: The membership fee for the relevant business year of themerging Full Member or the Full Member who has transferred most of the business (limited to the amount
unpaid) shall be borne by the Full Member who is to newly join the Association.

Article 11.

Membership Fees of Supporting Members

1. The amount of the membership fee for the Supporting Members stipulated in Article 11, Paragraph 2 of the
Articles of Incorporation shall be 500,000 yen per year.
2. The amount of the membership fee for the business year of the admission date of the newly admitted
Supporting Member shall be the amount calculated by prorating 500,000 yen on a daily basis according to
the number of days from the relevant date of admission to the end of the relevant business year:

Article 12.

Method of Payment of Membership Fees

1. In each business year, the Association shall request its Full Members and Supporting Members (hereinafterreferred to as the “Members”) to pay the membership fee for the relevant business year pursuant to theprovisions of each of the following items, and the Members shall pay the membership fee based on therequest of the Association:(1) The membership fee for a Full Member for the relevant business year shall be divided into four (4) times,
in principle, and shall be charged in April, July, October, and January. In this case, the invoiced amountfor April (the first time) shall, in principle, be the same as the invoiced amount for the membership fee forJanuary (the fourth time) of the immediately preceding business year (in the case of a Full Member who is
a New Full Member for the immediately preceding business year and is not the subject of a January (thefourth time) request, it shall be the invoiced amount for membership fees for the relevant immediately
preceding business year), and the invoiced amount for July, October, and January shall be the amountobtained by deducting the invoiced amount for April (the first time) from the membership fees for the
relevant business year (the annual amount to be borne), which is to be billed in three (3) installments,
respectively.

When a request for lump-sum payment is submitted in advance by a Full Member with respect to themembership fee for the relevant business year, the Association shall, in principle, charge the Full Member
in July in lump sum the amount obtained by deducting the amount of the invoice for April (the first time)from the membership fee (the annual amount to be borne) for the relevant business year; and(2) Membership fees of Supporting Members for the relevant business year shall be charged in a lump sum in
April, in principle.
2. The Association shall charge a membership fee for the relevant business year of the date of admission to the
New Full Members and new Supporting Members pursuant to the provisions of the following items, andsuch Members shall pay the membership fee based on the request of the Association:(1) The membership fee for the relevant business year of the New Full Member shall, in principle, be charged
in the month stipulated in Paragraph 1, Item 1 from the month of the date of admission.
Provided, however, that if the relevant Full Member requests in advance to pay the membership fee for the
relevant business year in a lump sum, the Association shall, in principle, request such Full Member for alump sum at the time of the first request; and(2) The membership fee for the relevant business year of a new Supporting Member shall, in principle, becharged in a lump sum in the month of the date of admission.

Article 13.

Handling of Membership Fees of Members Who Withdraw Membership

The handling of membership fees for the Members who are scheduled to withdraw from the Association shallbe as stipulated in the following items according to the following categories:(1) When requesting all or part of the membership fee for the relevant business year in the future: The
amount calculated on a prorated daily basis according to the number of days from the beginning of therelevant business year to the scheduled date of withdrawal (if there are already paid membership fees, theamount obtained by deducting the paid membership fees) shall be requested.
(2) When the membership fee for the relevant business year that has already been paid exceeds the amountcalculated on a prorated daily basis according to the number of days between the beginning of the businessyear and the scheduled date of withdrawal: The excess amount shall be refunded.

Article 1 4.

Revision and Abolition

These Rules shall be revised or abolished by a resolution of the General Meeting.

Supplementary Provisions
1. These Rules shall come into force on the date of registration of incorporation of a general corporation
stipulated in Article 106, paragraph (1) as applied mutatis mutandis by replacing certain terms pursuant to
Article 121, paragraph (1) of the Act on Arrangement of Relevant Acts Incidental to Enforcement of the Act
on General Incorporated Associations and General Incorporated Foundations and the Act on Authorizationof Public Interest Incorporated Associations and Public Interest Incorporated Foundations (hereinafterreferred to as the “Arrangement Act”); provided, however, that with regard to the membership fee in the casewhere the business year of the date of enforcement commences on the day within the period stipulated in
Article 37 of the Articles of Incorporation prior to the revision (excluding the first day of the period
stipulated in the same Article), the relevant membership fee shall be the amount calculated pursuant to theprovisions then in force, deeming the period from the beginning of the previous business year to the end of
the relevant business year to be one (1) business year.
2. The General Meeting Resolution Pursuant to Provisions of Articles of Incorporation (enacted on November
27, 1998) shall be abolished as of the date of registration of incorporation of a general corporation stipulated
in Article 106, paragraph (1) as applied mutatis mutandis by replacing certain terms pursuant to Article 121,
paragraph (1) of the Arrangement Act.
*Amendment of these Supplementary Provisions by amendment on June 14, 2012

Supplementary Provisions
This amendment shall come into force on the date of registration of incorporation of a general corporation(January 4, 2013) stipulated in Article 106, paragraph (1) as applied mutatis mutandis by replacing certain
terms pursuant to Article 121, paragraph (1) of the Act on Arrangement of Relevant Acts Incidental to
Enforcement of the Act on General Incorporated Associations and General Incorporated Foundations and the
Act on Authorization of Public Interest Incorporated Associations and Public Interest Incorporated
Foundations.

Supplementary ProvisionThis amendment shall come into force on April 1, 2017.

Supplementary Provisions
This amendment shall come into force on June 30, 2017; provided, however, that with respect to membershipfees for the business year of the date of enforcement to which the date within the period stipulated in Article 6prior to the amendment is the initial date, the Association shall divide the membership fee that is themembership fee of a Full Member calculated in amended Article 6 after deducting the first payment of themembership fees (the amount equivalent to one fourth (1/4) of the membership fee calculated pursuant to theprovisions then in force) into three (3) installments and shall, in principle, charge in August, November, andFebruary of the relevant business year, and the Full Member shall pay the membership fee based on the requestof the Association.

Supplementary Provisions
1. This amendment shall come into force on June 29, 2018.
2. The application of the method of payment of membership fees stipulated in Article 12, Paragraph 1 after theamendment in the business year of the date of enforcement shall be as follows:(1) Membership fees of Full Members shall, in principle, be charged in July, October, and January of therelevant business year pursuant to the relevant amended provisions, and the relevant Full Members shall
pay the membership fees based on the request of the Association; and(2) When there is an unpaid membership fee for the relevant business year as of the date of enforcement, theAssociation shall, in principle, charge the Supporting Member such membership fee in a lump sum in Julyof the relevant business year, and such Supporting Member shall pay such membership fee based on therequest of the Association.

Rules on Enforcement of Articles of Incorporation
Established on November 27, 1998
Revised on March 23, 1999
Revised on April 26, 1999
Revised on November 17, 2000
Revised on March 19, 2004
Revised on January 20, 2006
Revised on February 16, 2007
Revised on September 21, 2007
Revised on September 19, 2008
Revised on January 16, 2009
Revised on December 17, 2009
Revised on June 16, 2011
Revised on June 14, 2012
Revised on October 17, 2013
Revised on October 16, 2014
Revised on June 11, 2015
Revised on January 21, 2016
Revised on March 9, 2017
Revised on May 18, 2017
Revised on May 17, 2018
Revised on April 18, 2019
Revised on December 19, 2019
Revised on May 20, 2021

Article 1.

Purpose

These Rules stipulate the necessary matters concerning the enforcement of the Articles of Incorporation
pursuant to the provisions of Article 5, Paragraph 2 of the Articles of Incorporation.

Article 2.

Application for Admission

1. Matters to be stated in the application for admission of a Full Member stipulated in Article 8, Paragraph 1 of
the Articles of Incorporation shall be as follows:(1) Trade name or name;(2) The location of the head office and the representative telephone number;(3) Amount of capital;(4) Date of incorporation;(5) The type of business registered or licensed, the number of registration or license, and the date ofregistration or license;(6) Titles and names of officers (meaning officers stipulated in Article 29-4, paragraph (1) of the Financial
Instruments and Exchange Act (Act No. 25 of 1948; hereinafter referred to as the “FIEA”); the same
shall apply hereinafter);(7) The titles and names of the employees (hereinafter referred to as the “Important Employee”) stipulated
in Article 15-4 of the Order for Enforcement of the Financial Instruments and Exchange Act (Cabinet
Order No. 321 of 1965) on Financial Instruments Business for Investment Trusts and Investment
Corporations;(8) Number of officers and employees; and(9) Type of other business, if any.

2. The application for admission shall be in Appended Form 1 for Full Members and Appended Form 2 for
Supporting Members.

Article 3.

Documents to Be Attached to Application for Admission

1. Documents to be attached to an application for admission to a Full Member stipulated in Article 8, Paragraph
2 of the Articles of Incorporation shall be the following documents:(1) In the case of a person engaged in the investment management business, a copy of the certificate ofregistration certifying that the person has obtained the registration from the Prime Minister pursuant to
the provisions of Article 29 of the FIEA, in the case of a trust company, etc. becoming a trustee
company of an investment trust managed without instructions from the settlor, a copy of the license
certifying that the trust company has obtained a license pursuant to the provisions of Article 3 or Article
53 of the Trust Business Act (Act No. 154 of 2004) or a document in lieu thereof;(2) A document evidencing that none of the following applies (limited to persons who engage in theinvestment management business):(a) None of the items listed in Article 29-4, paragraph (1), item (i) (excluding (d) through (f)) of the FIEA
applies;(b) None of the items listed in Article 29-4, paragraph (1), item (ii) of the FIEA applies to officers or
Important Employees;(c) None of the items listed in Article 29-4, paragraph (1), item (iv) (excluding (d)) of the FIEA applies;and(d) None of the items listed in Article 29-4, paragraph (1), item (v) (excluding (c)) of the FIEA applies.
(3) Articles of Incorporation;(4) A copy of the certificate of registered matters or a copy of the registration information obtained from aperson designated pursuant to Article 3, paragraph (1) of the Act on Provision of Registration
Information through Telecommunication Lines;(5) A document stating the contents and methods of the business;(6) A document stating the personnel structure pertaining to the business and the business execution systemof the organization, etc.;(7) Resume of an officer (meaning a registered director (including an executive officer; hereinafter referred
to as the “Director, etc.”), and in the case of an investment manager without instructions from the settlor,
limited to the representative director, etc. stipulated in Article 6, and a director and auditor who has
jurisdiction over the business pertaining to an investment trust managed without instructions from thesettlor; hereinafter the same shall apply in this Article and Article 10) and the Important Employee (inthe case of an investment manager without instructions from the settlor, limited to an officer);(8) A copy of the extract of the certificate of residence of an officer and the Important Employee or adocument in lieu thereof;(9) A copy of a certificate issued by a public agency to the effect that officers and the Important Employees
do not fall under Article 29-4, paragraph (1), item (ii) (b) of the FIEA or any other document in lieu
thereof.

(10) A document in which the officers and the Important Employees pledge to the Chairperson of the
Association that they do not fall under any of Article 29-4, paragraph (1), item (ii) (a) or (c) through (i)of the FIEA (limited to officers in the case of an investment manager without instructions from thesettlor);(11) A document stating the matters listed in (a) through (f) of item (iv) of Article 9 of the Cabinet Office
Order on Financial Instruments Business, etc. (Cabinet Office Order No. 52 of 2007; hereinafterreferred to as the “Cabinet Office Order”) as the status of the Persons in Specified Relationships(meaning the Persons in Specified Relationships stipulated in the same item) (limited to a person who
engages in Investment Management Business);(12) A document stating the name and location of the branch office or business office;(13) The latest balance sheet (including related notes) and profit and loss statement (including related notes);(14) A document that calculates the amount of net assets (meaning the amount of net assets stipulated in
Article 29-4, paragraph (1), item (v) of the FIEA);(15) A document stating the matters listed in Article 10, paragraph (1), item (iii) (b) of the Cabinet Office
Order with respect to the major shareholders (meaning the major shareholders stipulated in Article 29-4,
paragraph (2) of the FIEA) and the top 10 shareholders in descending order of the number of voting
rights held, including major shareholders (in the case of a foreign juridical person, a document
evidencing that the confirmation stipulated in Article 29-4, paragraph (1), item (v) (f) of the FIEA has
been made with respect to a person equivalent to a major shareholder, or a document equivalent
thereto);(16) A schematic showing the location of the head office; and(17) Other documents deemed necessary by the Association.
2. The following documents shall be attached to the application for admission of a Supporting Member
stipulated in Article 8, Paragraph 2 of the Articles of Incorporation:(1) In the case of a person engaged in Type I Financial Instruments Business, a copy of the certificate ofregistration certifying that the person has obtained registration from the Prime Minister pursuant to theprovisions of Article 29 of the FIEA; in the case of a registered financial institution, a copy of thecertificate of registration certifying that the institution has obtained registration from the Prime Minister
pursuant to the provisions of Article 33-4 of the same Act; in the case of a trust company, etc., that is atrustee company of an investment trust managed under instructions from the settlor, a copy of thecertificate of approval certifying that the company has obtained approval pertaining to the trust business,or a document in lieu thereof;(2) A map showing the location of the head office; and(3) Other documents deemed necessary by the Association.

Article 4.

Notification by Administrative Contact Person

A person who intends to join the Association as a Full Member or a Supporting Member shall appoint an
administrative contact person and, when submitting an application for admission stipulated in Article 8,
Paragraph 1 of the Articles of Incorporation to the Association, shall notify the Association of the name, title,and contact information of the administrative contact person using Appended Form 3.

Article 5.

Refusal of Admission

The grounds stipulated in the Rules on Enforcement of Articles of Incorporation pursuant to the provisions ofArticle 9, Paragraph 1, Item 4 of the Articles of Incorporation shall be as follows:(1) It is found that the business cannot be properly executed in light of the status of securing officers or
employees who have sufficient knowledge and experience concerning the business that they conduct, as
well as the organizational structure; and(2) The credibility of the financial instruments business is likely to be impaired by the existence of officers
or employees who have an inappropriate qualification for the management of business in light of theirbackground, relationship with an organized crime group stipulated in Article 2, item (ii) of the Act on
the Prevention of Unjust Acts by Organized Crime Group Members (Act No. 77 of 1991) or with anorganized crime group member stipulated in item (vi) of the same article, or other circumstances.

Article 6.

Qualification Requirements for Full Member Representatives, etc.

1. The Full Member Representative and the agent stipulated in Article 10, Paragraph 1 of the Articles ofIncorporation shall be a person who satisfies the requirements listed the following items:(1) Full Member Representative: The director representing the relevant company registered (including theexecutive officer representing the relevant company; hereinafter referred to as the “Representative
Director, etc.”); provided, however, that in the case of a foreign juridical person, the person is therepresentative in Japan designated by such juridical person; and(2) Agent of the Full Member Representative: The person is the Director, etc. or the person who has
authority equivalent thereto; provided, however, that in the case of a foreign juridical person, the person
has the authority equivalent to that of the representative in Japan.
2. A person representing the Supporting Member stipulated in Article 10, Paragraph 2 of the Articles ofIncorporation (hereinafter referred to as the “Supporting Member Representative”) shall be a person
representing the relevant juridical person or a person who has a position equivalent thereto; provided,
however, that in the case of a foreign juridical person, the person shall be the representative in Japan
designated by such juridical person.

Article 7.

Notification of Full Member Representative, etc.

1. A Full Member and a Supporting Member (hereinafter referred to as the “Member”) shall immediately notify
the Association through the method of the Electronic Notification and Storage System for Notification from
Members of the Association (hereinafter referred to as the “Notification Management System of Investment
Trusts Association”), after the admission to the Association has been approved, using Appended Form 4 andAppended Form 4-[2] in the case of a Full Member, of the Full Member Representative and the agent
stipulated in Article 10, Paragraph 1 of the Articles of Incorporation, and using Appended Form 5 in the caseof a Supporting Member, of the Supporting Member Representative stipulated in Paragraph 2 of the same
article.

2. The Member shall, in the event of a change (including a change in the position) in the Full Member
Representative, agent, or the Supporting Member Representative who has been notified to the Association
pursuant to the preceding paragraph, promptly notify the Association of the change using Appended Form 6
or Appended Form 6-[2] in the case of a Full Member and using Appended Form 7 in the case of a
Supporting Member, through the method of the Notification Management System of Investment Trusts
Association.

Article 8.

Notification of Change of Administrative Contact Person

In the event of a change in the name, title, or contact information of the administrative contact person notified
to the Association, the Member shall notify the Association of the change through the method of the
Notification Management System of Investment Trusts Association using Appended Form 8.

Article 9.

Payment of Admission Fee, etc.

1. The admission fee for a Full Member stipulated in Article 11, Paragraph 1 of the Articles of Incorporation
shall be paid to the Association by the date separately stipulated.
2. If the admission fee is not paid by the prescribed due date, the Association may rescind the approval of theadmission of the relevant applicant by a resolution of the Board of Directors.
3. If the approval for admission is rescinded pursuant to the provisions of the preceding paragraph, theAssociation shall notify such applicant in writing to that effect.

Article 10.

Matters to be Reported by Full Members

1. A report to be made by a Full Member stipulated in Article 12 of the Articles of Incorporation shall be thematters listed in the following items:
With regard to the matters listed in the following items for which a report form has been established, a reportshall be submitted to the Association through the method of the Notification Management System of
Investment Trusts Association using the form stipulated in the following items:(1) With regard to the type of business (excluding investment management business) stipulated in Article
29-2, paragraph (1), item (v) of the FIEA, the business has been changed in the registration or abolishedpursuant to the provisions of Article 31 of the same Act:

Appended Form No. 9(2) When a notification is made to the effect that the business stipulated in Article 35, paragraph (2) of the
FIEA is to be performed pursuant to the provisions of paragraph (3) of the same article, or when anotification is made to the effect that such business has been abolished pursuant to the provisions ofparagraph (6) of the same article:

Appended Form No. 10(3) When a Full Member has obtained approval for the financial instruments business stipulated in Article
35, paragraph (4) of the FIEA and the business other than the business stipulated in paragraph (1) andparagraph (2) of the same article, or has notified that it has abolished the business pursuant to theprovisions of paragraph (6) of the same article:

Appended Form No. 11(4) When the financial instruments business (limited to the investment management business) has beensuspended or resumed:

Appended Form No. 12

(5) If the Articles of Incorporation have been amended:

Appended Form No. 13(6) When the contents and methods of the business have changed:

Appended Form No. 14(7) When the amount of capital has changed:

Appended Form No. 15(8) When the trade name or name has changed:

Appended Form No. 16(9) When a branch office or business office has been established or abolished:

Appended Form No. 17(10) When the name or location of the head office, branch office, or business office has changed:(a) Location of head office:Appended Form No. 18(b) The name or location of the branch office or business office:Appended Form No. 18-[2](11) When an officer has changed (including a change of position):

Appended Form No. 19(12) When there is a change in the Important Employees (including a change in position) (limited to Full
Members engaged in the investment management business):

Appended Form No. 20(13) (Deleted)(14) (Deleted)(15) (Deleted)(16) When a business report (including attached documents) has been prepared (limited to Full Members
engaged in the investment management business):(17) When an audit certification has been obtained from a certified public accountant or an audit firm withregard to the financial statements or interim financial statements that indicate the company’s financial
status, etc.:(a) Full Members who operate the investment trust entrustment business:(b) FullMembers

engagedintheInvestment

Corporation

Appended Form No. 21

Asset Management

Business:

Appended Form No. 22(18) When there is an increase or decrease of 30% or more in the total amount of net assets with respect tothe contents of the report made pursuant to the provisions of the preceding Item, or when there is anincrease or decrease of 30% or more in the total amount of net assets (the calculation shall be madebased on the total amount of net assets stated in the most recently submitted report) during the period
between the report made pursuant to the provisions of this Item and the next report made pursuant to theprovisions of the preceding Item; provided, however, that a report pursuant to the provisions of this
Item shall exclude, with regard to a Full Member whose total amount of net assets is less than 15 billion
yen, the period until such total amount of net assets reaches 15 billion yen:(a) Full Members who operate the investment trust entrustment business:

Appended Form 21-[2](b) Full Members engaged in the Investment Corporation Asset Management Business:
Appended Form 22-[2](19) When a Full Member has abolished the business pertaining to the investment management business orinvestment trust managed without instructions from the settlor:

Appended Form No. 23(20) In the event of a merger or dissolution of the company, or the transfer or acquisition of all or part of thebusiness:(a) In the event of a merger:

Appended Form No. 24(b) When all or part of the business has been transferred or acquired:

Appended Form No. 25

(21) With regard to a Full Member or a trust bank that is entrusted with the trust property pertaining to an
investment trust managed by a Full Member, when a petition for commencement of civil rehabilitation
proceedings pursuant to the provisions of the Civil Rehabilitation Act (Act No. 225 of 1999), a petition
for commencement of reorganization proceedings pursuant to the provisions of the Corporate
Reorganization Act (Act No. 154 of 2002), a petition for commencement of bankruptcy proceedings
pursuant to the provisions of the Bankruptcy Act (Act No. 75 of 2004), or a fact equivalent thereto has
occurred:

Appended Form No. 26(22) When an inspection has been commenced by the competent government agency pursuant to theprovisions of Article 56-2 of the FIEA or Article 22 of the Act on Investment Trusts and Investment
Corporations (Act No. 198 of 1951; hereinafter referred to as the “Investment Trust Act”):
Appended Form No. 27(23) When the inspection by the competent government agency stipulated in the preceding item has been
completed:(a) When a violation of laws or regulations, etc. has been pointed out:(b) When a Full Member has not pointed out:

Appended Form No. 28

Appended Form No. 29(24) When a Full Member has become aware of the fact that the FIEA, the Investment Trust Act, orders
based on these laws, dispositions based thereon, the Articles of Incorporation or other rules of the
Association (including resolutions of the Board of Directors), the basic terms and conditions of theinvestment trust, the agreement of the investment corporation, or any act in violation of the principle ofgood faith in transactions, or when a Full Member has become aware that the status of compliance with
the FIEA, the Investment Trust Act, orders based on these laws, dispositions based thereon, the Articles
of Incorporation or other rules of the Association (including resolutions of the Board of Directors), thebasic terms and conditions of the investment trust, the agreement of the investment corporation, theprinciple of good faith in transactions, or the status of the business of asset management, etc., or the
status of the assets is not appropriate.

Appended Form No. 30(25) When a business improvement order has been issued pursuant to the provisions of Article 51 of the
FIEA with respect to a Full Member or a major associated corporation of a Full Member:
Appended Form No. 31(26) When a Full Member or a major associated corporation of a Full Member has received a supervisorydisposition pursuant to the provisions of Article 52 of the FIEA:

Appended Form No. 32(27) When a Full Member has received an order to submit reports or materials pursuant to the provisions ofArticle 56-2 of the FIEA:

Appended Form No. 33(28) When a Full Member has submitted a business improvement report or a report or material that has beenordered to be submitted by an order, etc. from the competent minister pursuant to the provisions ofArticle 51 or Article 56-2 of the FIEA:

Appended Form No. 34(29) When a Full Member has received an order to hand over the investment trust agreement pursuant to theprovisions of Article 23 of the Investment Trust Act with regard to the Full Member or the trust bankthat is entrusted with the trust property pertaining to an investment trust managed by a Full Member:
Appended Form No. 35

(30) When a Full Member has received an order to prohibit or suspend a public offering or private placementof beneficiary certificates pursuant to the provisions of Article 26 of the Investment Trust Act(including the book-entry transfer beneficial interest in an investment trust) or other transactions, orwhen a Full Member has come to know that the person taking the action has received an order toprohibit or suspend the handling of a public offering of beneficiary certificates, handling of private
placement, or other transactions:

Appended Form No. 36(31) When a Full Member has come to know that there has been a change in a major shareholder stipulated
in Article 29-4, paragraph (2) of the FIEA:

Appended Form No. 37(32) In the event of an accident such as the leakage of personal information, etc. stipulated in Article 22 oftheGuidelines for Protectionof Personal Information

stipulatedby

the Association:

Appended Form No. 38(33) In addition to what is stipulated in the preceding items, when the Association finds it necessary.
2. With regard to the report pertaining to the change of officers listed in Item 11 of the preceding paragraph or
the Important Employees listed in Item 12, in cases where such a report is a report pertaining to theassumption of office of a new officer or the Important Employee, the following documents pertaining to the
newly appointed officer or the Important Employee shall be attached and reported; provided, however, that if
such a report is an investment manager without instructions from the settlor, the documents listed in Items 2through 4 shall not be required to be attached:(1) Resume;(2) A copy of an extract of the certificate of residence or a document in lieu thereof;(3) A copy of the certificate issued by a public agency that a Full Member does not fall under Article 29-4,
paragraph (1), item (ii) (b) of the FIEA or a document in lieu thereof; and(4) A document pledging to the Chairperson of the Association that a Full Member (limited to the part
pertaining to (a)) and the relevant officer or the Important Employee do not fall under any of Article
29-4, paragraph (1), items (ii) (a) or (c) through (i) of the FIEA.
3. If a Full Member makes a report to the Association pursuant to the provisions of Items 17 and 18 of
Paragraph 1, the Full Member shall promptly publish such document for five (5) consecutive years from theday on which such document was disclosed by the method of making the matters recorded in the file on thecomputer used by the Full Member available for inspection through telecommunications lines.
4. If a Full Member makes a report to the Association pursuant to the provisions of Items 21, 25, 26, 29, and 30
of Paragraph 1, the Full Member shall promptly publish a document stating the contents of such report forfive (5) consecutive years from the date of disclosure of such document by the method of making the mattersrecorded in the file on the computer used by the Full Member available for inspection throughtelecommunications lines.
5. Upon receipt of a report from a Full Member pursuant to the provisions of Items 21, 25, 26, 29, and 30 of
Paragraph 1, the Association shall publish such received document continuously for a period of five years
from the date of receipt of the report by the method of making the matters recorded in the file on thecomputer used by the Association available for inspection through telecommunications lines.

Article 11.

Matters to Be Notified by Supporting Members

The matters to be notified by Supporting Members stipulated in Article 13 of the Articles of Incorporation shallbe as follows:
Notifications to the Association shall be made in the form stipulated in the following items through the methodof the Notification Management System of Investment Trusts Association:(1) When a Supporting Member has abolished the business related to the investment trust entrustment
business, etc.:

Appended Form No. 39(2) When the trade name or name is changed:

Appended Form No. 40(3) When the location of the head office is changed:

Appended Form No. 41

Article 12.

Notification of Withdrawal from Membership

1. The Notification of Withdrawal from Membership stipulated in Article 16 of the Articles of Incorporation
shall be made using Appended Form 42 and shall be submitted to the Association through the method of the
Notification Management System of Investment Trusts Association.
2. Upon receipt of a notification of withdrawal from membership by the Member, the Association shall notify
each Member to that effect.

Article 13.

Matters to Be Stated in Member List

Matters to be stated in the Full Member list and the Supporting Member list stipulated in Article 21, Paragraph
2 of the Articles of Incorporation shall be the name, location, telephone number, and the title and name of theFull Member Representative or the Supporting Member Representative.

Supplementary Provision
These Rules shall come into force on December 1, 1998.

Supplementary Provision
The amended provisions of Article 4-2 shall come into force on March 23, 1999.

Supplementary Provision
The amended provisions of Article 4-2 shall come into force on April 26, 1999.

Supplementary ProvisionThis amendment shall come into force on November 30, 2000.

Supplementary ProvisionThis amendment shall come into force on April 1, 2004.

Supplementary ProvisionThis amendment shall come into force on March 1, 2006.

Supplementary ProvisionThis amendment shall come into force on February 16, 2007.

Supplementary Provisions
1. This amendment shall come into force on the date on which the approval of the competent minister isobtained for the Articles of Incorporation (September 30, 2007).
2. After the enforcement of these amended rules, the provisions of Article 3 prior to the amendment shall apply
to the documents attached to the application for admission in the case where an investment trust entrustment
business that is approved pursuant to the provisions of Article 6 of the Investment Trust Act prior to theamendment applies for admission to the Association.

Supplementary Provisions
1. This amendment shall come into force on October 1, 2008.
2. A person who was actually the Member stipulated in the Articles of Incorporation prior to the amendment at
the time of the enforcement of these amended rules and who is deemed to be a Full Member or a Supporting
Member pursuant to the provisions of Articles 2 and 3 of the Supplementary Provisions of the Amended
Articles of Incorporation dated June 30, 2008 shall be deemed to have submitted the notification stipulated in
Article 3-2 and Article 4-2, Paragraph 1.

Supplementary ProvisionThis amendment shall come into force on January 16, 2009.

Supplementary ProvisionThis amendment shall come into force on December 17, 2009.

Supplementary Provisions (as amended on June 14, 2012)
This amendment shall come into force on the date of registration of incorporation of a general corporation
stipulated in Article 106, paragraph (1) as applied mutatis mutandis by replacing certain terms pursuant to
Article 12, paragraph (1) of the Act on Arrangement of Relevant Acts Incidental to Enforcement of the Act onGeneral Incorporated Associations and General Incorporated Foundations and the Act on Authorization of
Public Interest Incorporated Associations and Public Interest Incorporated Foundations.

Supplementary Provisions
This amendment shall come into force on the date of registration of incorporation of a general corporation(January 4, 2013) stipulated in Article 106, paragraph (1) as applied mutatis mutandis by replacing certain
terms pursuant to Article 12, paragraph (1) of the Act on Arrangement of Relevant Acts Incidental to
Enforcement of the Act on General Incorporated Associations and General Incorporated Foundations and the
Act on Authorization of Public Interest Incorporated Associations and Public Interest Incorporated
Foundations.

Supplementary ProvisionThis amendment shall come into force on December 17, 2009.

Supplementary ProvisionThis amendment shall come into force on October 17, 2013.

Supplementary Provisions
This amendment shall come into force on October 16, 2014.
Provided, however, that the amended provisions of Article 10, Paragraph 1, Items 17 and 18, and Paragraph 3of the same article shall come into force on December 1, 2014.

Supplementary ProvisionThis amendment shall come into force on 11 June 2015.

Supplementary ProvisionThis amendment shall come into force on January 21, 2016.

Supplementary ProvisionThis amendment shall come into force on April 1, 2017.

Supplementary ProvisionThis amendment shall come into force on May 30, 2017.

Supplementary Provisions
1. This amendment shall come into force on June 16, 2018.
2. A written report pursuant to the provisions of Article 10, Paragraph 1, Items 13 through 15 prior to theamendment may be requested from the Full Member to be submitted pursuant to the provisions of Article 10,
Paragraph 1, Item 33 when deemed necessary by the Association.

Supplementary ProvisionThis amendment shall come into force on May 1, 2019.

Supplementary ProvisionThis amendment shall come into force on December 19, 2019.

Supplementary ProvisionThis amendment shall come into force on June 1, 2021.

Appended Form No. 1
Application Date: MM DD, YYYY
The Investment Trusts Association, Japan
To: Chairperson(Trade Name or Name)(Title and Name of Representative)

Application for Admission
Our Company hereby applies to join your Association as a Full Member pursuant to the provisions of Article 8 of
the Articles of Incorporation of your Association.

1. Trade name or name (Reading)(In English)
2. Location of head office (Postal code)(In English)
Representative telephone number
3. Amount of capital
4. Date of incorporation
5. Type of business for which registration (license) was granted, etc.

[1] Type of business[2] Registration (license) number[3] Date of registration (license)
6. Title and name of officers (Reading)
7. Title and name of the Important Employee (Reading)
8. Number of officers and employees
Officers: XX (including part-time officers: XXX), employees: XX
9. Type of other business conducted(Precautions for Description)
1. For “3. Amount of capital,” enter the amount as of the date of application for admission. If the applicant for membership is aforeign juridical person, the amount shall be the amount of brought-in capital.
2. For “5. Type of business for which registration (license) was granted, etc.,” in the case of a financial instruments business
operator, the applicant for admission shall state all the registered financial instruments business.
3. “6. Title and name of officers (Reading)” may be attached to the application for admission as Appendix.
4. “7. Title and name of the Important Employee (Reading)” shall be entered together with the duties supervised by the relevant
person. It may be attached to the application for admission as Appendix.
5. For “9. Type of other business conducted,” the business other than the financial instruments business shall be entered.

Appended Form No. 2
Application Date: MM DD, YYYY
The Investment Trusts Association, Japan
To: Chairperson(Trade Name or Name)(Title and Name of Representative)

Application for Admission
Our Company hereby applies to join your Association as a Supporting Member pursuant to the provisions ofArticle 8 of the Articles of Incorporation of your Association.

1. Trade name or name (Reading)(In English)
2. Location of head office (Postal code)(In English)
Representative telephone number
3. Amount of capital or endowment
4. Date of incorporation
5. Status of the business related to the investment trust entrustment business, etc.

(Precautions for Description)
1. For “3. Amount of capital or endowment,” enter the amount as of the date of application for admission. If the applicant formembership is a foreign juridical person, the amount shall be the amount of brought-in capital.
2. For “5. Status of the business related to the investment trust entrustment business,” in the case of a financial instruments
business operator or a person who engages in the banking business, the applicant for admission shall enter the type, theregistration (license) number, and the date of registration (license) of all business for which registration (license) has beenobtained. For other applicants for admission, enter the contents, etc. of the business related to the investment trust
entrustment business, etc. in an easy-to-understand manner.

Appended Form No. 3
Application Date: MM DD, YYYY
To: The Investment Trusts Association, Japan(Trade Name or Name)

Notification of Administrative Contact Person
Our Company hereby notifies your Association that our Company has appointed the following person as ouradministrative contact person, pursuant to Article 4 of the Rules on Enforcement of Articles of Incorporation ofyour Association.
Description(Name)(Affiliation and Title)(Telephone Number)(Fax Number)(E-mail Address)

Appended Form No. 4
Application date

MM DD, YYYY

The Investment Trusts Association, Japan
To: President
Trade name or name
Representative

Notification of Representative
Our Company hereby notifies your Association that our Company has appointed the following person as ourrepresentative at your Association, pursuant to the provisions of Article 10, Paragraph 1 of the Articles ofIncorporation of your Association.

Description

Title
Name (Reading)NameAppended Form No. 4-[2]Application date

MM DD, YYYY

The Investment Trusts Association, Japan
To: Chairperson
Trade name or name
Representative

Notification of AgentOur Company hereby notifies your Association that our Company has appointed the following person as our agent
at your Association, pursuant to the provisions of Article 10, Paragraph 1 of the Articles of Incorporation of your
Association.
Description

Title
Name (Reading)
Name

Appended Form No. 5
Application date

MM DD, YYYY

The Investment Trusts Association, Japan
To: Chairperson
Trade name or name
Representative

Notification of Representative
Our Company hereby notifies your Association that our Company has appointed the following person as ourrepresentative at your Association, pursuant to the provisions of Article 10, Paragraph 2 of the Articles ofIncorporation of your Association.
Description

Title
Name (Reading)NameAppended Form No. 6
Application date

MM DD, YYYY

The Investment Trusts Association, Japan
To: Chairperson
Trade name or name
Representative

Notification of Change of Representative
Our Company hereby notifies your Association that our Company has changed our representative at your
Association as follows, pursuant to the provisions of Article 10, Paragraph 3 of the Articles of Incorporation ofyour Association.
Description

Before change

After change
Title
Name (Reading)
Name
Date of change

MM DD, YYYY

Application date

MM DD, YYYY

Appended Form No. 6-[2]The Investment Trusts Association, Japan
To: Chairperson
Trade name or name
Representative

Notification of Change of AgentOur Company hereby notifies your Association that our Company has changed our agent at your Association as
follows, pursuant to the provisions of Article 10, Paragraph 3 of the Articles of Incorporation of your Association.
Description

Before change

After change
Title
Name (Reading)
Name
Date of change

MM DD, YYYY

Appended Form No. 7
Application date

MM DD, YYYY

The Investment Trusts Association, Japan
To: Chairperson

Trade name or name
Representative

Notification of Change of Representative
Our Company hereby notifies your Association that our Company will change our representative at your
Association as follows, pursuant to the provisions of Article 10, Paragraph 3 of the Articles of Incorporation ofyour Association.

Description

Before change

After change
Title
Name (Reading)
Name

Date of change

MM DD, YYYY

Appended Form No. 8
Application date

MM DD, YYYY

The Investment Trusts Association, Japan

Trade name or name

Notification of Change of Administrative Contact Person

Our Company hereby notifies your Association that our Company has changed the following matters pertaining toour administrative contact person at your Association as follows, pursuant to the provisions of Article 8 of theRules on Enforcement of Articles of Incorporation of your Association.

Description
Before change

After change
Name (Reading)Name
Affiliation and title
Telephone number
Fax number
E-mail address

Date of change

MM DD, YYYY

Appended Form No. 9
Application Date: MM DD, YYYY
The Investment Trusts Association, Japan
To: Chairperson(Trade Name or Name)(Representative)

Notification of Type of Business (Registration of Change and Abolition)
Our Company hereby notifies your Association that our Company has registered the change of the following typeof (or has abolished the following type of) business, pursuant to the provisions of Article 10, Paragraph 1, Item 1of the Rules on Enforcement of Articles of Incorporation of your Association.
Description
1. The type and contents, etc. of the business that is registered (abolished)
2. Date of registration (abolition)
3. Date of commencement of business*In the event of a notification of abolition, the description in “3.” is not required.
(Attached document: Registration/Registration of Change (copy))(Please submit the notification after correcting each red letter in the form and deleting such red letters.)

Appended Form No. 10
Application Date: MM DD, YYYY
The Investment Trusts Association, Japan
To: Chairperson(Trade Name or Name)(Representative)

Notification
Since our Company has made a notification pursuant to the provisions of Article 35, paragraph (3) of the FIEA
(Article 35, paragraph (6) of the FIEA) as follows, our Company hereby reports the same pursuant to theprovisions of Article 10, Paragraph 1, Item 2 of the Rules on Enforcement of Articles of Incorporation.

Description
1. Business and contents, etc. notified
2. Date of notification
3. Date of commencement (abolition) of business(Attached document: Notification (copy))(Please submit the notification after correcting each red letter in the form and deleting such red letters.)

Appended Form No. 11
Application Date: MM DD, YYYY
The Investment Trusts Association, Japan
To: President(Trade Name or Name)(Representative)

Notification of Business (Approval/Abolition)
Since our Company has obtained the approval of (or abolished) the business as follows, our Company hereby
reports the same pursuant to the provisions of Article 10, Paragraph 1, Item 3 of the Rules on Enforcement of
Articles of Incorporation.

Description
1. Business and contents, etc. approved (abolished)
2. Date of approval (abolition)
3. Date of commencement of business*In the event of a notification of abolition, the description in “3.” is not required.
(Attached document: Approval/Notification Form (copy))(Please submit the notification after correcting each red letter in the form and deleting such red letters.)

Appended Form No. 12
Application Date: MM DD, YYYY
The Investment Trusts Association, Japan
To: Chairperson(Trade Name or Name)(Representative)

Report on Suspension (Resumption) of Financial Instruments Business
Since our Company will suspend (resume) the financial instruments business as follows, our Company hereby
notifies the same pursuant to the provisions of Article 10, Paragraph 1, Item 4 of the Rules on Enforcement of
Articles of Incorporation of your Association.
(In the case of suspension)
1. Reason for suspension: ()

2. Estimated period of suspension(MM DD, YYYY to MM DD, YYYY)(In the case of resumption)
1. Resumption date

MM DD, YYYY

2. Date of submission of Notification of Suspension

MM DD, YYYY

Appended Form No. 13
Application Date: MM DD, YYYY
The Investment Trusts Association, Japan
To: Chairperson(Trade Name or Name)(Representative)

Notification of Amendment of Articles of Incorporation
Since our Company has amended the Articles of Incorporation on [MM DD, YYYY] (as follows), our Company
hereby notifies your Association of the amendment pursuant to the provisions of Article 10, Paragraph 1, Item 5 of
the Rules on Enforcement of Articles of Incorporation of your Association (as shown in Appendix).

(Attached document: Contents of the amendment and a copy of the amended Articles of Incorporation)

Appended Form No. 14
Application Date: MM DD, YYYY
The Investment Trusts Association, Japan
To: Chairperson(Trade Name or Name)(Representative)

Notification of Change of Contents and Method of Business
Since our Company has changed our Business Procedures on [MM DD, YYYY], our Company hereby reports thesame as shown in Appendix pursuant to the provisions of Article 10, Paragraph 1, Item 6 of the Rules on
Enforcement of Articles of Incorporation.

(Attached document: Contents of the change and the Business Procedures after the change)

Appended Form No. 15
Application date

MM DD, YYYY

The Investment Trusts Association, Japan
To: Chairperson
Trade name or name
Representative

Notification of Change of Amount of Capital

Since our Company will change the capital as follows, our Company hereby notifies your Association of thechange pursuant to the provisions of Article 10, Paragraph 1, Item 7 of the Rules on Enforcement of Articles ofIncorporation of your Association.

Description

Before change

After change
CapitalDate of change

Reason for change

MM DD, YYYY

Appended Form No. 16
Application date

MM DD, YYYY

The Investment Trusts Association, Japan
To: Chairperson
Trade name or name
Representative

Notification of Change of Trade Name or Name

Since our Company will change our trade name or name as follows, our Company hereby notifies your
Association of the change pursuant to the provisions of Article 10, Paragraph 1, Item 8 of the Rules on
Enforcement of Articles of Incorporation of your Association.

Description

Before change

After change
Trade name or nameTrade name or name (Reading)Trade name or name (In English)

Date of change

MM DD, YYYY

Appended Form No. 17
Application date

MM DD, YYYY

The Investment Trusts Association, Japan
To: Chairperson
Trade name or name
Representative

Notification of Establishment/Abolition of Branch Offices and Business Offices

Since our Company will establish/abolish branch offices and business offices as follows, our Company hereby
reports the same to your Association pursuant to the provisions of Article 10, Paragraph 1, Item 9 of the Rules on
Enforcement of Articles of Incorporation of your Association.

Description

Name of Branch Office/Business Office
Postal code
Address
Address (In English)
Telephone number
Fax number

Date of establishment/abolition

Reason for establishment/abolition

MM DD, YYYY

Appended Form No. 18
Application date

MM DD, YYYY

The Investment Trusts Association, Japan
To: Chairperson
Trade name or name
Representative

Notification of Change of Location of Head OfficeSince our Company will change the location of the head office as follows, our Company hereby reports the same toyour Association pursuant to the provisions of Article 10, Paragraph 1, Item 10 (a) of the Rules on Enforcement of
Articles of Incorporation of your Association.

Description

Before change

After change
Postal code
Address
Address (In English)
Telephone number
Fax number

Date of change

MM DD, YYYY

Appended Form No. 18-[2]Application date

MM DD, YYYY

The Investment Trusts Association, Japan
To: Chairperson
Trade name or name
Representative

Notification of Change of Name and Location of Branch Offices and Business Offices

Since our Company will change the name/location of our branch offices/ business offices as follows, ourCompany hereby reports the same to your Association pursuant to the provisions of Article 10, Paragraph 1,
Item 10 (b) of the Rules on Enforcement of Articles of Incorporation of your Association.

Description

After change

Before change

Name of Branch Office/Business Office
Name of Branch Offices/Business Offices(In English)
Postal code
Address
Address (In English)
Telephone number
Fax number

Date of change

MM DD, YYYY

Appended Form No. 19
Application Date: MM DD, YYYY
The Investment Trusts Association, Japan
To: Chairperson(Trade Name or Name)(Representative)

Notification of Change of Officer (Title)
Since our Company has made changes to our officers on [MM DD, YYYY], our Company hereby reports thesame to your Association as follows pursuant to the provisions of Article 10, Paragraph 1, Item 11 of the Rules on
Enforcement of Articles of Incorporation of your Association.
Description
Contents of change
Date of change(Example)
Dated [MM DD, YYYY]

After change
Director○○ ○○(Example)
Dated [MM DD, YYYY](Retirement)

Before change(Assumption of Office)Or former title, etc.
Director○○ ○○Appended Form No. 20
Application Date: MM DD, YYYY
The Investment Trusts Association, Japan
To: Chairperson(Trade Name or Name)(Representative)

Important Employee Change Notification
Since our Company has made changes to our Important Employee on [MM DD, YYYY], our Company hereby
reports the same to your Association as follows pursuant to the provisions of Article 10, Paragraph 1, Item 12 of
the Rules on Enforcement of Articles of Incorporation of your Association.
Description
Contents of change
Person in charge

Date of change(Compliance with Laws andControl of Operation)(Example)
Dated [MM DD, YYYY](Compliance with Laws andControl of Operation)(Example)
Dated [MM DD, YYYY](Compliance with Laws andControl of Operation)

After change
Title
○○ ○○
(Retirement)

Before change(Assumption of
Office)Or former title, etc.
Title
○○ ○○

Appended Form No. 21
Application Date: MM DD, YYYY

The Investment Trusts Association, Japan
To: Chairperson(Trade Name or Name)(Representative)

Notification of Financial Status, etc. of Full Member
Since our Company has completed our accounting audit of our financial status, etc., our Company hereby reports
the same to your Association as follows pursuant to the provisions of Article 10, Paragraph 1, Item 17 (a) of theRules on Enforcement of Articles of Incorporation of your Association.

1. Summary of settlor company, etc.

2. Contents of business and summary of operations

3. Accounting status of the settlor company, etc.
(1) Balance sheet(2) Profit and loss statement(3) Statement of changes in net assets

Publication date: MM DD, YYYY
Record date: MM DD, YYYY

Location of Head Office

XX-YY, Nihombashi Kabutocho, Chuo-ku, Tokyo

Contact information:XX Group, YY Section, ZZ Department[Precautions for Description]
1. With regard to the publication date, describe the date of first notification of the relevant document as an attached documentin the annual securities report, etc.
2. When describing this Form, follow the precautions for describing the relevant part of Form No. 4 of the Cabinet Office Orderon Disclosure of Information on Regulated Securities.

Appended Form No. 21-[2]Application Date: MM DD, YYYY

The Investment Trusts Association, Japan
To: Chairperson(Trade Name or Name)(Representative)

Notification of Change of Financial Status, etc. of Full Member
Pursuant to the provisions of Article 10, Paragraph 1, Item 17 (a) (Item 18 (a)) of the Rules on Enforcement of
Articles of Incorporation of your Association, with regard to the Notification of Financial Status, etc. of Full
Member submitted on [MM DD, YYYY], since the total amount of net assets of investment trusts managed by ourCompany on [MM DD, YYYY] has increased or decreased by 30% or more, our Company hereby reports thesame as follows pursuant to the provisions of Article 10, Paragraph 1, Item 18 (a) of the same Rules.

1. Summary of settlor company, etc.

2. Contents of business and summary of operations

3. Accounting status of the settlor company, etc.
(1) Balance sheet(2) Profit and loss statement(3) Statement of changes in net assets

Publication date: MM DD, YYYY
Record date: MM DD, YYYY

Location of Head Office

XX-YY, Nihombashi Kabutocho, Chuo-ku, Tokyo

Contact information:XX Group, YY Section, ZZ Department[Precautions for Description]
1. With regard to the publication date, describe the date of first notification of the relevant document as an attached documentin the annual securities report, etc.
2. When describing this Form, follow the precautions for describing the relevant part of Form No. 4 of the Cabinet Office Orderon Disclosure of Information on Regulated Securities.

Appended Form No. 22
Application Date: MM DD, YYYY
The Investment Trusts Association, Japan
To: Chairperson(Trade Name or Name)(Representative)

Notification of Financial Status, etc. of Full Member

Since our Company has completed our accounting audit of our financial status, etc., our Company hereby reports
the same as follows pursuant to the provisions of Article 10, Paragraph 1, Item 17 (b) of the Rules on Enforcementof Articles of Incorporation of your Association.

1. The name, the amount of capital, and the contents of the business of the asset management company

2. Management system of the asset management company

3. Status of major shareholders of the asset management company

4. Status of officers of the asset management company

5. Contents of the business and summary of business of the asset management company

Publication date: MM DD, YYYY
Record date: MM DD, YYYY

Location of Head Office

XX-YY, Nihombashi Kabutocho, Chuo-ku, Tokyo

Contact information:XX Group, YY Section, ZZ Department[Precautions for Description]
1. With regard to the publication date, describe the date of first notification of the relevant document as an attached documentin the annual securities report, etc.
2. When describing this Form, follow the precautions for describing the relevant part of Form No. 4-3 of the Cabinet Office
Order on Disclosure of Information on Regulated Securities.

Appended Form 22-[2]Application Date: MM DD, YYYY
The Investment Trusts Association, Japan
To: Chairperson(Trade Name or Name)(Representative)

Notification of Change of Financial Status, etc. of Full Member

Pursuant to the provisions of Article 10, Paragraph 1, Item 17 (b) (Item 18 (b)) of the Rules on Enforcementof Articles of Incorporation of your Association, with regard to the Notification of Financial Status, etc. of
Full Member submitted on [MM DD, YYYY], since the total amount of net assets of investment
corporations managed by our Company on [MM DD, YYYY] has increased or decreased by 30% or more,
our Company hereby reports the same as follows pursuant to the provisions of Article 10, Paragraph 1, Item
18 (b) of the same Rules.

1. The name, the amount of capital, and the contents of the business of the asset management company

2. Management system of the asset management company

3. Status of major shareholders of the asset management company

4. Status of officers of the asset management company

5. Contents of the business and summary of business of the asset management company

Publication date: MM DD, YYYY
Record date: MM DD, YYYY

Location of Head Office

XX-YY, Nihombashi Kabutocho, Chuo-ku, Tokyo

Contact information:XX Group, YY Section, ZZ Department[Precautions for Description]
1. With regard to the publication date, describe the date of first notification of the relevant document as an attached documentin the annual securities report, etc.
2. When describing this Form, follow the precautions for describing the relevant part of Form No. 4-3 of the Cabinet Office
Order on Disclosure of Information on Regulated Securities.

Appended Form No. 23
Application Date: MM DD, YYYY
The Investment Trusts Association, Japan
To: Chairperson(Trade Name or Name)(Representative)

Notification of Abolition of XX Business
Since our Company has abolished our XXXX, our Company hereby reports the same as follows pursuant to theprovisions of Article 10, Paragraph 1, Item 19 of the Rules on Enforcement of Articles of Incorporation.
Description
1. Contents of the business abolished
2. Date of abolition: MM DD, YYYY

Appended Form No. 24
Application Date: MM DD, YYYY
The Investment Trusts Association, Japan
To: Chairperson(Trade Name or Name)(Representative)

Notification of Merger
Since our Company will merge as follows, our Company hereby notifies your Association of the same pursuant to
the provisions of Article 10, Paragraph 1, Item 20 (a) of the Rules on Enforcement of Articles of Incorporation ofyour Association.
Description
1. Purpose of merger
2. Outline of merger(a) Method of merger(b) Merger ratio(c) Date of merger
3. Summary of the new company

(a) Trade name or name(In English:)(b) Head Office[1] Address (Postal code:(In English:))[2] Representative telephone number[3] Fax number(c) Amount of capital(d) Title and name of an officer (Reading)(e) Title and name (reading) of the Important Employee (Reading)(f) Number of officers and employees

XX persons(including officers: YY persons; employees: ZZ persons)

4. Title and name of the company representative
5. Title and name of the person who is to act as the proxy of the above representative
6. Title and name of an administrative contact person
7. Attached documents(a) List of major shareholders(b) Head office location map(c) Summary of each company before the merger (Appendix)(Appended Form)

Summary of each company before the merger[1] Trade name or name[2] Location[3] Telephone number[4] Representative[5] Date of establishment

MM DD, YYYY

[6] Capital[7] Description of business[8] Number of officers and employees

XX persons (including officers: YY persons; employees: ZZ

persons)[9] Assets under management (net assets) or contract assets: XXXX (Unit: 100 million yen, amount as of theend of the month preceding the merger)[10] Profit and loss and the status of property (Unit: 100 million yen)
Fiscal year ended [Date]
Operating income
Ordinary income
current income
Net assets

Fiscal year ended [Date]

Fiscal year ended [Date]Appended Form No. 25
Application Date: MM DD, YYYY

The Investment Trusts Association, Japan
To: Chairperson(Trade Name or Name)(Representative)

Notification of Transfer/Acquisition of Business

Since our Company has transferred/acquired the business as follows, our Company hereby reports the same
pursuant to the provisions of Article 10, Paragraph 1, Item 20 (b) of the Rules on Enforcement of Articles ofIncorporation of your Association.

Description

1. Content of business of transfer/acquisition

2. The other party to the transfer/acquisition of business

3. Date of transfer/acquisition of business

4. Method of transfer/acquisition of business

5. Reason for transfer/acquisition of businessAppended Form No. 26
Application Date: MM DD, YYYY
The Investment Trusts Association, Japan
To: Chairperson(Trade Name or Name)(Representative)

Notification of Petition for Commencement of Bankruptcy Proceedings, etc.
Since a petition for the commencement of bankruptcy proceedings, etc. has been filed against [our Company/XX
Trust Bank that is the trustee bank for the investment trust property established by our Company] as follows, ourCompany hereby reports the same pursuant to the provisions of Article 10, Paragraph 1, Item 21 of the Rules on
Enforcement of Articles of Incorporation of your Association.

1. The date on which such petition for commencement of bankruptcy proceedings, etc. was filed
2. The name, address, and name of the representative of the person who filed such petition for commencementof bankruptcy proceedings, etc. (in the case of an individual, the name and address of the individual,
excluding cases where the person who filed such petition for commencement of bankruptcy proceedings, etc.
is a Full Member)
3. The name and address of the person against whom such petition for commencement of bankruptcy
proceedings, etc. has been filed.
4. The type of such petition for commencement of bankruptcy proceedings, etc.
5. The background that led to the filing of such petition for commencement of bankruptcy proceedings, etc.
6. The content of such petition for commencement of bankruptcy proceedings, etc.
7. The name of the public offering fund, etc. that will be affected by such petition for commencement ofbankruptcy proceedings, etc.

Publication date: MM DD, YYYY
Record date: MM DD, YYYY

Location of Head Office

XX-YY, Nihombashi Kabutocho, Chuo-ku, Tokyo

Contact information:XX Group, YY Section, ZZ Department[Precautions for Description]
1. Enter all the names of public offering funds established/managed by the company that are affected by a petition
for the commencement of bankruptcy proceedings, etc.

Appended Form No. 27
Application Date: MM DD, YYYY
The Investment Trusts Association, Japan
To: Chairperson(Trade Name or Name)(Representative)

Report on Commencement of Inspection
As of [MM DD, YYYY], since the Securities and Exchange Surveillance Commission, etc. has commenced aninspection pursuant to the provisions of the Financial Instruments and Exchange Act and the Act on Investment
Trusts and Investment Corporations, our Company hereby reports the same pursuant to the provisions of Article
10, Paragraph 1, Item 22 of the Rules on Enforcement of Articles of Incorporation.

Appended Form No. 28
Application Date: MM DD, YYYY
The Investment Trusts Association, Japan
To: Chairperson(Trade Name or Name)(Representative)

Report on Completion of Inspection
Our Company has been notified by AAAA that the inspection conducted by the Securities and Exchange
Surveillance Commission, etc. pursuant to the provisions of the Financial Instruments and Exchange Act and the
Act on Investment Trusts and Investment Corporations as of [MM DD, YYYY] has been completed based on
XXXX, No. YY dated [MM DD, YYYY], and our Company has been pointed out that there are acts, etc. inviolation of laws and regulations and various regulations as follows. Therefore, our Company hereby reports thesame pursuant to the provisions of Article 10, Paragraph 1, Item 23 (a) of the Rules on Enforcement of Articles ofIncorporation.
Description
Matters pointed out, etc.
Name and provisions, etc. of laws
and regulations, and the rules of the
Association, etc.
Summary of the caseContents of acts, etc.

1. Contents of acts
2. Background, causes, etc. of occurrence
3. Status of the internal control system at the time of occurrence[Contact person]

Affiliation
Title and name
Telephone number[Precautions for Description]
1. Briefly enter the contents in the summary column of the matters pointed out and the case and enter the details in thecolumn for the contents of the act.
2. A copy of the Notice of Completion of Inspection shall be attached.

Appended Form No. 29
Application Date: MM DD, YYYY

The Investment Trusts Association, Japan
To: Chairperson(Trade Name or Name)(Representative)

Report on Completion of Inspection

Our Company has been notified by AAAA that the inspection conducted by the Securities and Exchange
Surveillance Commission, etc. pursuant to the provisions of the Financial Instruments and Exchange Act and the Act
on Investment Trusts and Investment Corporations as of [MM DD, YYYY] has been completed based on XXXX, No.
YY dated [MM DD, YYYY], and our Company has not been pointed out that there are acts, etc. in violation of laws
and regulations or various regulations as follows. Therefore, our Company hereby reports the same pursuant to theprovisions of Article 10, Paragraph 1, Item 23 (b) of the Rules on Enforcement of Articles of Incorporation.

(Attached document: Copy of the Notice of Completion of Inspection)

Appended Form No. 30
Application Date: MM DD, YYYY
The Investment Trusts Association, Japan
To: Chairperson(Trade Name or Name)(Representative)

Our Company recognizes that our Company has committed an act in violation of laws and regulations and various
regulations and other improper acts thereof as follows. Therefore, our Company hereby reports the same pursuant to
the provisions of Article 10, Paragraph 1, Item 24 of the Rules on Enforcement of Articles of Incorporation.

Description

Name and provisions, etc., if
applicable to laws and regulations,the rules of the Association, etc.
Summary of the caseContents of acts, etc.

1. Contents of acts
2. Background, causes, etc. of occurrence
3. Status of the internal control system at the time of occurrence
4. Status of correction and improvement
5. Report to the supervisory government agency[Contact person]

Affiliation
Title and name
Telephone number[Precautions for Description]
1. In the event of no violation of laws and regulations, various regulations, the basic terms and conditions, etc., the relevant
column shall be left blank.
2. Briefly enter the contents in the summary column of the case and enter details in the column for the contents of the act.
3. As to the background of occurrence, the beginning of discovery, date and time of occurrence, department of occurrence,etc. shall also be described in detail.
4. If the status of correction or improvement is being formulated or improved, a separate report shall be submitted after thecompletion thereof. In addition, if internal dispositions, etc. are taken, the details thereof shall also be described.
5. Whether or not a report has been made to the supervisory government agency, and if a report has been made, the details(date of report, etc.) thereof shall be entered, and a copy thereof shall be attached thereto.

Appended Form No. 31
Application Date: MM DD, YYYY
The Investment Trusts Association, Japan
To: Chairperson(Trade Name or Name)(Representative)

Report on Business Improvement Order
Since [our Company/AAAA that is our major associated corporation] has received a business improvement
order from XXXX based on YYYY No. ZZZZ dated [MM DD, YYYY] pursuant to the provisions of Article
51 of the Financial Instruments and Exchange Act, our Company hereby reports the same pursuant to theprovisions of Article 10, Paragraph 1, Item 25 of the Rules on Enforcement of Articles of Incorporation.

Description
Name of the administrative
agency that issued the business
improvement order
Summary of the business
improvement order
Summary of the business to be
improved
Scheduled deadline forcompletion of improvement
Name of the affected public
offering fund, etc.
Summary of effects on the
management, operation, or
disposition of the fund, etc.
[Contact person]

Affiliation
Title and name
Telephone number[Precautions for Description]
1. Enter all names of public offering funds established and managed by the company that are affected by the business
improvement order.
(Attached document: A copy of the written order, etc. pertaining to the relevant disposition, etc. (limited to cases where a
Full Member has received an order))Appended Form No. 32
Application Date: MM DD, YYYY
The Investment Trusts Association, Japan
To: Chairperson(Trade Name or Name)(Representative)

Report on Supervisory Disposition
Since [our Company/AAAA that is our major associated corporation] has received a supervisory disposition(XXXX) from XXXX based on YYYY No. ZZZZ dated [MM DD, YYYY] pursuant to the provisions of Article
52 of the Financial Instruments and Exchange Act, our Company hereby reports the same pursuant to theprovisions of Article 10, Paragraph 1, Item 26 of the Rules on Enforcement of Articles of Incorporation.

Description

Name of the administrative agency thatissued the supervisory disposition
Summary of the supervisorydisposition
Summary of the business, etc. to becorrected by the disposition
Period of the disposition, etc.
Name of the affected fund, etc.

Summary of effects on the
management, operation, or dispositionof the fund, etc.
[Contact person]

Affiliation
Title and name
Telephone number[Precautions for Description]
1. Enter all names of funds, etc. established and managed by the company that are affected by the disposition.
(Attached document: A copy of the written order, etc. pertaining to the relevant disposition, etc. (limited to cases where a
Full Member has received an order))Appended Form No. 33
Application Date: MM DD, YYYY

The Investment Trusts Association, Japan
To: Chairperson(Trade Name or Name)(Representative)

Report on Order to Submit XXXX
Since our Company has been ordered to submit AAAA from XXXX based on YYYY No. ZZZZ dated [MM DD,
YYYY] pursuant to the provisions of Article 56-2 of the Financial Instruments and Exchange Act, our Company
hereby reports the same pursuant to the provisions of Article 10, Paragraph 1, Item 27 of the Rules on
Enforcement of Articles of Incorporation.

(Attached document: A copy of the written order, etc. pertaining to such submission)

Appended Form No. 34
Application Date: MM DD, YYYY

The Investment Trusts Association, Japan
To: Chairperson(Trade Name or Name)(Representative)

Regarding Submission of XXXX
Since our Company has been ordered to submit AAAA from XXXX based on YYYY No. ZZZZ dated [MM DD,
YYYY] pursuant to the provisions of (Article 51 and Article 56-2 of) the Financial Instruments and Exchange Act
and has submitted it as of [MM DD, YYYY], our Company hereby reports the same pursuant to the provisions ofArticle 10, Paragraph 1, Item 28 of the Rules on Enforcement of Articles of Incorporation.

(Attached document: A copy of the document submitted to the Financial Services Agency)

Appended Form No. 35
Application Date: MM DD, YYYY
The Investment Trusts Association, Japan
To: Chairperson(Trade Name or Name)(Representative)

Report on Order to Hand over Investment Trust Agreement
Since [our Company/AAAA Trust Bank that is a trustee bank for the investment trust property established by ourCompany] has received an order to hand over the investment trust agreement from XXXX based on YYYY No.
ZZZZ dated [MM DD, YYYY] pursuant to the provisions of Article 23 of the Act on Investment Trusts andInvestment Corporations, our Company hereby reports the same pursuant to the provisions of Article 10,
Paragraph 1, Item 29 of the Rules on Enforcement of Articles of Incorporation.

Description

Background to the issuance of theorder of handoverName, etc. of the successor of thefund, etc. (address, name ofrepresentative, contact
information)
Summary of the business, etc. to
be corrected by the disposition
Period of the disposition, etc.
Name of the fund to be handed
over
Summary of effects on the
management, operation, or
disposition of the fund, etc.
[Contact person]

Affiliation
Title and name
Telephone number[Precautions for Description]
1. Enter all names of funds, etc. established and managed by the company that are affected by the disposition.
(Attached document: A copy of such Order, etc. (limited to cases where a Full Member has received an order))Appended Form No. 36
Application Date: MM DD, YYYY
The Investment Trusts Association, Japan
To: Chairperson(Trade Name or Name)(Representative)

Report on Order under Article 26 of Investment Trust Act
Since [our Company/AAAA that handles the public offering (private placement and other transactions) ofbeneficiary certificates of investment trusts established by our Company] received a prohibition (suspension)order of the public offering (private placement and other transactions) of beneficiary certificates (or received aprohibition (suspension) order of the handling, etc. of the public offering of beneficiary certificates at thefollowing sales company) from XXXX based on YYYY No. ZZZZ dated [MM DD, YYYY] pursuant to theprovisions of Article 26 of the Act on Investment Trusts and Investment Corporations, our Company hereby
reports the same pursuant to the provisions of Article 10, Paragraph 1, Item 30 of the Rules on Enforcement of
Articles of Incorporation.

Description

Summary of Order
Name of the company whose
public offering is prohibited(suspended)
Period of the disposition, etc.
Names of the fund, etc. whose
public offering is prohibited(suspended)
Summary of effects on the
management, operation, or
disposition of the fund, etc.
[Contact person]

Affiliation
Title and name
Telephone number[Precautions for Description]
1. Enter all names of funds, etc. established and managed by the company that are affected by the disposition.
(Attached document: A copy of such Order, etc. (limited to cases where a Full Member has received an order))Appended Form No. 37
Application date

MM DD, YYYY

The Investment Trusts Association, Japan
To: Chairperson
Trade name or name
Representative

Notification of Change of Major Shareholder
Since our major shareholders have changed, our Company hereby reports the same pursuant to the provisions ofArticle 10, Paragraph 1, Item 31 of the Rules on Enforcement of Articles of Incorporation.

Description

Name, trade name,or company name

After change
Number of voting
rights held

Percentage

Before change
Number of voting
rights held

Date of change

Percentage

MM DD, YYYY

Appended Form No. 38
Application Date: MM DD, YYYY
The Investment Trusts Association, Japan
To: Chairperson(Trade Name or Name)(Representative)

Accident Report on Case of Leakage, etc. of Personal Information, etc.
Since our Company had an accident of the case of leakage, etc. of personal information, etc., our Company hereby
reports the same as follows pursuant to the provisions of Article 10, Paragraph 1, Item 32 of the Rules on
Enforcement of Articles of Incorporation.
New/follow-up report (Previous report: MM DD, YYYY)
Name of the department where
the accident occurred

Affiliation and title ofthe person who caused
the accident and thepersons concerned

Date of occurrence

Date of discovery

Contents of Information leaked,
etc.
Information protection measures
such as encryption□ With measures□ Without measures□ With partial measures□ Unknown

Leakage destination

Status at the time of occurrence□ Wrong transmission of FAX□ Wrong transmission of e-mail□ Wrong delivery by hand to a third party□Wrong delivery of distribution, etc.
□ Oral leakage □Wrong disposal□ Lost□ Others ()

Background to discovery
Status of notification tocustomers, etc.
Presence or absence of
publication
Contents and method of
publication
Analysis of causes of occurrence,
recognition of problems, etc.
(Enter also the status ofcompliance with internal rules,
etc.)(Date of publication)

Measures to prevent recurrence,etc.
Presence or absence of reports tothe supervisory government
agencyRemarks(Date of the report)

Contact person: Affiliation
Title and name:
Telephone number:
E-mail address:
Reporting guidelines, etc. for the Accident Report on Case of Leakage, etc. of Personal Information, etc.
1.
Distinction between new and follow-up reports
Any new report shall be “new,” and the case that has already been reported and that is to be reported in a secondarymanner, such as details thereof, shall be prepared as a “follow-up report.”
2.
Name of the department where the accident occurred, the affiliation and title of the person who caused the accident,
and the persons concerned
Names of the person who caused the accident and the persons concerned are not required to be entered.
3.
Contents of the leaked information, etc.
Specifically enter the type, contents, number of customers, etc. (number of cases), and other matters of personal
information, personal data, or information on processing methods, etc. involved in an accident.
If sensitive information is included, enter the number of such information.
In addition, if the individual number and specific personal information are included, specifically enter the contents
and the number of customers, etc. (number of cases).
4.
Presence or absence of information protection measures such as encryption
With regard to the presence or absence of information protection measures such as encryption, enter the presence orabsence of measures that have been taken in advance with respect to the relevant information at the time of leakage,etc.
5.
Leakage destination
Enter whether the leakage destination has been identified and the status, etc. of collection of personal information, etc.
6.
Status at the time of occurrenceEnter the date and time of occurrence of the accident and the manner in which the accident occurred.
If any notification or report has been made to the police for theft or loss, etc., enter the fact together.
7.
Background to discovery
Enter the date of discovery and the triggers for discovery (complaints from customers, internal inspections, petitions
from persons in charge, etc.)
8.
Status of notification to customers, etc.
With regard to the response to the notification, etc. of the facts to the customer, etc. (the principal) involved in theaccident, specifically enter departments in charge of the response, the number of customers, etc., and the status of the
response, etc.
9.
Presence or absence of publication, date, content, and method of publication
If the information is to be published or has been published, specifically enter the date, content, and method of
publication, and attach the publication materials.
If it is decided not to publish the information, enter the reason therefor.
10. Analysis of causes of occurrence, recognition of problems, etc. (including the status of compliance with internal rules,
etc.)
Specifically enter the background of the accident that occurred, the cause of occurrence, etc.
In light of internal rules, etc. regarding the safety control of personal information, personal data, etc., specifically enter
the status of compliance therewith.
11. Measures to prevent recurrence, etc.
Enter corrective and improvement measures to prevent recurrence, etc.
12. Presence or absence of reports to the supervisory government agency
Enter whether the report has been made to the supervisory government agency (meaning the Financial Services
Agency and the Personal Information Protection Commission) and if the report has been made, enter the date of thereport.

Appended Form No. 39
Application Date: MM DD, YYYY
The Investment Trusts Association, Japan
To: Chairperson(Trade Name or Name)(Representative)

Notification of Abolition of XX Business

Since our Company has abolished XXXX, our Company hereby reports the same as follows pursuant to theprovisions of Article 11, Item 1 of the Rules on Enforcement of Articles of Incorporation.

Description

1. Contents of the business abolished

2. Date of abolition: MM DD, YYYY

Appended Form No. 40
Application date

MM DD, YYYY

The Investment Trusts Association, Japan
To: Chairperson
Trade name or name
Representative

Notification of Change of Trade Name or Name
Since our Company will change our trade name or name as follows as of [MM DD, YYYY], our Company hereby
notifies your Association of the same pursuant to the provisions of Article 11, Item 2 of the Rules on Enforcementof Articles of Incorporation of your Association.

Description

After change

Before change

Trade name or nameTrade name or name (Reading)Trade name or name (In English)

Date of change

MM DD, YYYY

Appended Form No. 41
Application date

MM DD, YYYY

The Investment Trusts Association, Japan
To: Chairperson
Trade name or name
Representative

Notification of Change of Location of Head OfficeSince our Company will change the location of the head office as follows, our Company hereby reports the same
to your Association pursuant to the provisions of Article 11, Item 3 of the Rules on Enforcement of Articles ofIncorporation.

Description

After change

Before change

Name of the head office to be changed
Postal code
Address
Address (In English)
Telephone number
Fax number

Date of change

MM DD, YYYY

Appended Form No. 42
Application Date: MM DD, YYYY
The Investment Trusts Association, Japan
To: Chairperson(Trade Name or Name)(Representative)

Notification of Withdrawal from Membership
Our Company hereby notifies your Association of our intention to withdraw from membership as follows
pursuant to the provisions of Article 16 of the Rules on Enforcement of Articles of Incorporation.

Description

1. Date of withdrawal

2. Reasons for withdrawal

Operational Rules
Established on September 25, 1967
Revised on December 20, 1968
Revised on January 30, 1969
Revised on January 16, 1970
Revised on April 10, 1970
Revised on October 30, 1970
Revised on July 16, 1971
Revised on May 19, 1972
Revised on November 17, 1972
Revised on January 27, 1984
Revised on October 21, 1988
Revised on March 17, 1994
Revised on December 28, 1994
Revised on December 15, 1995
Revised on November 7, 1997
Revised on February 20, 1998
Revised on March 10, 1998
Revised on November 27, 1998
Revised on April 16, 1999
Revised on November 17, 2000
Revised on March 17, 2003
Revised on March 18, 2005
Revised on December 16, 2005
Revised on February 16, 2007
Revised on September 21, 2007
Revised on March 21, 2008
Revised on June 20, 2008
Revised on September 16, 2009
Revised on June 16, 2011
Revised on June 14, 2012
Revised on April 20, 2017
Revised on June 10, 2021

Chapter 1

Article 1.

General Provisions

PurposeThe purpose of these Rules is to stipulate the business methods stipulated in each item of Article 4, Paragraph 1of the Articles of Incorporation of The Investment Trusts Association, Japan (hereinafter referred to as the“Association”)among the business of the Certified Financial Instruments Business Associations stipulated in
Article 78, paragraph (2) and Article 78-2 of the Financial Instruments and Exchange Act (Act No. 25 of 1948;
hereinafter referred to as the “FIEA”).

Chapter 2
Article 2.

Business Stipulated in Article 4, Paragraph 1, Item 1 of Articles of Incorporation
Business, etc.

The Association shall provide guidance, recommendations, and other business to have Full Members (meaning
Full Members stipulated in Article 7, Paragraph 1, Item 1 of the Articles of Incorporation; the same shall apply
hereinafter) and Financial Instruments Intermediary Service Providers (meaning financial instrumentsintermediary service providers stipulated in Article 4, Paragraph 1, Item 1 of the Articles of Incorporation; thesame shall apply hereinafter) observe the provisions of the FIEA, the Act on Investment Trusts and Investment

Corporations (Act No. 198 of 1951; hereinafter referred to as the “Investment Trust Act”)and other laws andregulations, the Articles of Incorporation, and other rules of the Association (including resolutions of the boardof directors; the same shall apply hereinafter).

Article 3.

Grasp of Status of Compliance of Members

1. The Association shall, through conducting questionnaire surveys for Full Members and Financial
Instruments Intermediary Service Providers, examining their daily business, and other activities, endeavor to
grasp the status of compliance (hereinafter referred to as the “Status of Compliance”)of Full Members andFinancial Instruments Intermediary Service Providers with the provisions of the FIEA, the Investment Trust
Act, and other laws and regulations, or the Articles of Incorporation and other rules of the Association(hereinafter referred to as the “Laws and Regulations, etc.”).
2. If the Association has obtained any information, etc. on the Status of Compliance of a Full Member or a
Financial Instruments Intermediary Service Provider, the Association shall endeavor to grasp the actual
status by holding hearings, etc. with the Full Member, as necessary.
3. If it is deemed difficult to grasp the actual status thereof by the methods stipulated in the preceding paragraph,
the Association shall, as necessary, request the submission of materials or an explanation in writing or orally
stipulated in Article 14 of the Articles of Incorporation, or conduct a member investigation stipulated in
Article 15 of the Articles of Incorporation.
4. If a member investigation is conducted pursuant to the preceding paragraph, such investigation shall be
conducted according to the methods stipulated in Article 9, Paragraph 2.

Article 4.

Guidance, etc.

1. If the Association finds that the Status of Compliance of a Full Member and a Financial Instruments
Intermediary Service Provider is inappropriate, the Association shall, as necessary, provide necessary
guidance and recommendations to the Member in order to improve the Status of Compliance.
2. The procedures for providing recommendations pursuant to the preceding paragraph shall be stipulated in theRules on Dispositions, etc. of Members (hereinafter referred to as the “Rules on Dispositions of Members“).
3. If the Association provides guidance or recommendations to a Full Member, the Association shall request theFull Member to submit a written report on the formulation of a business improvement plan and the status ofits implementation in order to improve the Status of Compliance, as necessary.

Article 5.

Business for Improving Compliance

In order to improve the status of compliance, etc. of Full Members and Financial Instruments Intermediary
Service Providers with the FIEA, the Investment Trust Act, and other laws and regulations, the Association
shall conduct the following business:(1) Implementation of training, seminars, etc. for officers and employees of Full Members and Financial
Instruments Intermediary Service Providers;(2) Dissemination of cases of violations of the Laws and Regulations, etc. by Full Members and Financial
Instruments Intermediary Service Providers; and(3) Any other business deemed necessary by the Association.

Chapter 3
Article 6.

Business Stipulated in Article 4, Paragraph 1, Item 2 of Articles of Incorporation
Business, etc.

With regard to the financial instruments business, etc. (including business pertaining to the investment trust
managed without instructions from the settlor; the same shall apply hereinafter) conducted by Full Members
and Financial Instruments Intermediary Service Providers, the Association shall conduct the member
investigation, guidance, recommendations, and other business necessary for appropriateness of asset
management, etc. and public offerings and private placements, etc. of beneficiary certificates (including thebook-entry transfer beneficial interest in an investment trust; the same shall apply hereinafter), and ensuring theprotection of investors.

Article 7.

Grasp of Status of Business Operations of Members

1. With regard to the financial instruments business, etc. conducted by Full Members and Financial Instruments
Intermediary Service Providers, the Association shall endeavor to grasp the status of business operations of
the asset management and the public offering or private placement of beneficiary certificates of Full
Members and Financial Instruments Intermediary Service Providers through conducting questionnaire
surveys for Full Members and examining their daily business.
2. If the Association has obtained information, etc. on the status of business operations such as the asset
management and the public offering or private placement of beneficiary certificates by a Full Member and a
Financial Instruments Intermediary Service Provider, the Association shall endeavor to grasp the actual
status thereof by holding hearings, etc. with the Full Member, as necessary.
3. If it is deemed difficult to grasp the actual status thereof by the methods stipulated in the preceding paragraph,
the Association shall, if necessary, request the submission of materials or an explanation in writing or orally
pursuant to Article 14 of the Articles of Incorporation, or conduct a member investigation stipulated in
Article 15 of the Articles of Incorporation.
4. If conducting a member investigation pursuant to the preceding paragraph, the Association shall conduct
such investigation according to the methods stipulated in Article 9, Paragraph 2.

Article 8.

Guidance, etc.

1. If the Association finds that the status of business operations such as the asset management and the public
offering or private placement, etc. of beneficiary certificates by a Full Member and a Financial Instruments
Intermediary Service Provider is inappropriate and that a situation is deemed necessary to protect investors,
the Association shall, as necessary, provide necessary guidance or recommendations to the Full Member inorder to ensure the appropriateness of the business operations.
2. The procedures for providing recommendations pursuant to the preceding paragraph shall be stipulated in theRules on Dispositions of Members.
3. If the Association provides guidance or recommendations to a Full Member, the Association shall request, as
necessary, the Full Member to submit a written report on the formulation of a business improvement planand the status of its implementation in order to ensure the appropriateness of the asset management, etc.

Chapter 4
Article 9.

Business Stipulated in Article 4, Paragraph 1, Item 3 of Articles of Incorporation
Member Investigation

1. The Association shall conduct a member investigation of a Full Member and a Financial Instruments
Intermediary Service Provider with regard to compliance with the FIEA, the Investment Trust Act, orders
based thereon, dispositions based thereon, the Articles of Incorporation and other rules of the Association(including resolutions of the board of directors), the basic terms and conditions of the investment trust, or the
Certificate of Incorporation of the investment corporation (hereinafter referred to as the “Laws andRegulations, etc.”), or the principle of good faith in transactions.
2. The member investigation stipulated in the preceding paragraph shall be conducted by any of the following
methods:(a) On-site investigation;(b) Investigation in writing;(c) Investigation by hearing; or(d) Other investigations by methods deemed appropriate by the Association.

Article 10.

Member Investigation Rules

Necessary matters for the implementation of the member investigation stipulated in the preceding Article shallbe stipulated in the Rules on Member Investigation.

Article 11.

Measures for Results of Member Investigation

1. If the Association has found the fact of a violation of the Laws and Regulations, etc. by the relevant Full
Member as a result of conducting a member investigation pursuant to Article 9, the Association shallappropriately respond to the violation in accordance with the Articles of Incorporation or the Rules on
Dispositions of Members, as necessary.
2. Procedures for making a disposition based on the Articles of Incorporation or taking other measures against
the relevant Full Member shall be stipulated in the Rules on Dispositions of Members.

Chapter 5
Article 12.

Business Stipulated in Article 4, Paragraph 1, Item 4 of Articles of Incorporation
Resolution of Complaints

1. The Association shall conduct the business for resolving complaints from investors concerning the businessof the financial instruments business, etc. pertaining to investment trusts and investment corporations
conducted by Full Members and Financial Instruments Intermediary Service Providers (hereinafter referred
to as the “Complaint Resolution Business”).
2. The Complaint Resolution Business stipulated in the preceding paragraph may be entrusted pursuant to theprovisions of Article 78-8, paragraph (1) of the FIEA.

3. Necessary matters for the Complaint Resolution Business shall be stipulated in the Rules on Entrustment of
Business, etc. for Resolution of Complaints and Disputes (hereinafter referred to as the “Rules on Resolutionof Complaints, etc.”).

Chapter 6
Article 13.

Business Stipulated in Article 4, Paragraph 1, Item 5 of Articles of Incorporation
Mediation for Dispute Resolution

1. If there is a dispute concerning the business of the financial instruments business, etc. pertaining toinvestment trusts and investment corporations conducted by Full Members and Financial Instruments
Intermediary Service Providers, the Association shall conduct the business pertaining to the mediation(hereinafter referred to as the “Mediation Business”)in order to resolve the dispute.
2. The Mediation Business stipulated in the preceding paragraph may be entrusted pursuant to the provision of
Article 78-8, paragraph (1) of the FIEA.
3. Necessary matters for the Mediation Business shall be stipulated in the Rules on Resolution of Complaints,
etc.

Article 14.

Entrustment of Complaint Resolution Business and Mediation Business

1. If the Complaint Resolution Business and the Mediation Business are entrusted to a third party pursuant to
the provisions of Article 12, Paragraph 2 and Article 13, Paragraph 2, the Association shall entrust suchbusiness to a person with sufficient financial basis and personnel structure to perform such businessproperly.
2. In entrusting the business pursuant to the preceding paragraph, the Association shall conclude a contract
necessary for entrusting such business such as a letter of agreement.

Chapter 7
Article 15.

Business Stipulated in Article 4, Paragraph 1, Item 6 of Articles of Incorporation
Establishment, Amendment, or Abolition of Rules

1. The Association shall establish, amend, or abolish rules (including resolutions of the board of directors)andconduct other business necessary for the appropriateness of the financial instruments business, etc. pertaining
to investment trusts and investment corporations conducted by Full Members and Financial Instruments
Intermediary Service Providers.
2. The establishment, amendment, or abolition of the rules stipulated in the preceding paragraph shall be madeby a resolution of the board of directors.

Chapter 8
Article 16.

Business Stipulated in Article 4, Paragraph 1, Item 7 of Articles of Incorporation
Business of Accredited Personal Information Protection Organization

1. The Association shall conduct the following business concerning the handling of personal information
pertaining to the financial instruments business conducted by Full Members and Financial Instruments

Intermediary Service Providers as an accredited personal information protection organization who havereceived an accreditation pursuant to Article 47, paragraph (1) of the Act on the Protection of Personal
Information (Act No. 57 of 2003):(1) Handling of complaints concerning the handling of personal information by Full Members and Financial
Instruments Intermediary Service Providers;(2) Preparation and publication of the Personal Information Protection Guidelines;(3) Guidance, recommendations, and other measures necessary to ensure compliance with the Personal
Information Protection Guidelines;(4) Provision of information to Full Members and Financial Instruments Intermediary Service Providers on
matters that contribute to ensure the proper handling of personal information;(5) Training, etc. for officers and employees of Full Members and Financial Instruments Intermediary
Service Providers in order to ensure the proper handling of personal information;(6) Publication of the name of the Full Member;(7) Liaison and coordination with relevant organizations; and(8) In addition to what is listed in the preceding items, matters necessary for ensuring the proper handling of
personal information by Full Members and Financial Instruments Intermediary Service Providers.
2. With regard to the business pertaining to the handling of complaints concerning the handling of personal
information by Full Members and Financial Instruments Intermediary Service Providers listed in Item 1 ofthe preceding paragraph, the Association shall conduct such business based on the Rules on Handling ofComplaints concerning Handling of Personal Information by Full Members and Financial Instruments
Intermediary Service Providers separately stipulated.

Chapter 9
Article 17.

Business Stipulated in Article 4, Paragraph 1, Item 8 of Articles of Incorporation
Enlightenment and Dissemination of Investment Trusts, etc.

1. The Association shall endeavor to promote the sound development of investment trusts and investment
corporations and to protect investors through activities related to the enlightenment and dissemination ofknowledge concerning investment trusts and investment corporations.
2. In order to enlighten and disseminate knowledge concerning investment trusts and investment corporations,
the Association shall conduct the following business:(1) Business concerning the issuance of various publications pertaining to investment trusts or investment
corporations;(2) Business concerning the holding of lectures, seminars, etc.; and(3) Other business concerning the enlightenment and dissemination of knowledge of investment trusts andinvestment corporations.

Chapter 10

Business Stipulated in Article 4, Paragraph 1, Item 13 of Articles of Incorporation

Article 17-2.

Registration Work of Sales Representatives

The Association shall conduct the registration work of sales representatives stipulated in Article 4, Paragraph 1,
Item 13 of the Articles of Incorporation in accordance with the rules separately stipulated. Other Business

Chapter 11
Article 18.

Other Business
Other Business

The Association shall, in order to achieve its purpose, conduct the following business:(1) Preparation and publication of statistics, etc. concerning investment trusts and investment corporations;(2) Internal and external investigation, research, and international exchanges concerning investment trusts
and investment corporations;(3) Communication and coordination of opinions among Full Members and with financial instruments
business associations, and other relevant organizations, etc.;(4) Proposals, requests, and communications to relevant government agencies and other relevantorganizations; and(5) In addition to what is listed in the preceding items, publicity activities for investors and other businessnecessary for achieving the purpose of the Association.

Chapter 12
Article 19.

Organizations, etc. of Association
Committee

1. The Association shall establish a committee for the smooth performance of the business of the Association.
2. The structure, operation, etc. of the committee stipulated in the preceding paragraph shall be stipulated in theRules on Establishment of Committee separately stipulated.
3. In addition to the committees stipulated in the Rules on Establishment of Committee, the Association may, as
necessary, establish extraordinary committees by a resolution of the board of directors.

Article 20.

Secretariat Organization

The organization, division of affairs, authority, etc. of the Secretariat of the Association shall be governed byinternal rules separately stipulated.

Article 21.

Accounting

1. The accounting procedures of the Association shall be conducted in accordance with laws and regulations,
the Articles of Incorporation of the Association, and the Rules on Accounting Procedures separately
stipulated, as well as in accordance with the Accounting Standards for Public Interest Corporations and otheraccounting standards generally accepted as fair and appropriate.
2. The Association shall conduct the accounting procedures in accordance with the Rules on Accounting
Procedures separately stipulated.
3. The Association shall conduct an audit of the accounting of the Association by a certified public accountant.

Chapter 13
Article 22.

OthersEstablishment of System for Protection of Personal Information

The Association shall, in order to prevent the leakage, loss, or damage of personal information handled in orderto perform its business, establish rules concerning the safety management of personal information, thereby
establishing an appropriate management system.
The Association shall not use information on race, creed, family origin, domicile, etc. or other special
non-public information concerning individuals handled for the performance of its business (meaning
unpublished information that has come to its knowledge in the course of its business)for purposes other thanensuring the appropriate operation of the Association’s business or for other purposes deemed necessary.

Article 23.

Securities Transactions by Officers and Employees of Association

1. The Association’s officers (limited to full-time officers; the same shall apply hereinafter) and employees(including non-regular employees; the same shall apply hereinafter)shall not sell or purchase securities basedon trends in the management of the trust property, etc. or non-public information pertaining to issuing
companies obtained in the course of their business, or other special information obtained in the course of
their duties, or solely for the purpose of pursuing speculative profits, by making use of their professional
status.
2. If any officer or employee of the Association commits any of the acts listed in the preceding paragraph, theAssociation shall take strict measures against the relevant person who commits such act.

Article 24.

Confidentiality, etc.

No officer of the Association, committee member or employee of any committee, etc., or any person who wasformerly in the position thereof shall divulge or misappropriate any secret that he/she has come to know in thecourse of performing his/her duties to others without justifiable grounds.

Supplementary Provision
The provisions shall come into force on October 1, 1967.

Supplementary Provision
Amendments to the provisions shall come into force on December 25, 1968.

Supplementary Provision
Amendments to the provisions shall come into force on February 10, 1969.

Supplementary Provision
The amended provisions of Article 5 and Article 6 shall come into force on February 1, 1970.

Supplementary Provision
The amended provisions of Article 5 and Article 7 shall come into force on April 10, 1970.

Supplementary Provision
The amended provisions of Article 5 and Article 10 shall come into force on October 1, 1970.

Supplementary Provision
The amended provisions of Article 5 shall come into force on August 25, 1971.

Supplementary Provision
The amended provisions of Article 5 shall come into force on May 17, 1972.

Supplementary Provision
The amended provisions shall come into force on December 1, 1972.

Supplementary Provision
The amended provisions of Article 2 shall come into force on January 27, 1984.

Supplementary Provision
The amended provisions of Article 3, Article 14, and Article 16 shall come into force on October 26, 1988.

Supplementary Provision
The amended provisions shall come into force on March 17, 1994.

Supplementary Provision
The amended provisions of Article 2, Article 2-2, Article 2-3, Article 3, and Article 10-2 shall come into force
on January 1, 1995.

Supplementary Provisions
1. The amended provisions shall come into force on January 1, 1996.
2. In cases where an entrusting party has come to appoint a discretionary investment company’s (meaning theinvestment advisor stipulated in Article 2-3, Paragraph 2 after the amendment; hereinafter the same shallapply in this paragraph)officer (meaning an officer stipulated in that paragraph)or employee as an officer or
employee of the entrusting party, or has come to use a business office used by a discretionary investmentcompany, if the discretionary investment company is a discretionary investment company actually
established under the laws and regulations of a foreign country at the time of the enforcement of the

provisions, the term “using (limited to the cases where it is deemed that the business of a discretionary
investment company is substantially operated as a result thereof)” in that paragraph shall be deemed to be
replaced with “In cases where it is deemed that the business of a discretionary investment company issubstantially operated as a result of using, instructions on transactions that would harm the interests ofbeneficiaries pertaining to the trust property in order to promote the interests of customers pertaining to thediscretionary investment contract concluded by the discretionary investment company.”

Supplementary Provision
The amended provisions of Article 10 and Article 10-2 shall come into force on December 1, 1997.

Supplementary Provision
The amended provisions of Article 13 shall come into force on March 23, 1998.

Supplementary Provision
The amended provisions of Article 8 shall come into force on March 24, 1998.

Supplementary Provisions
This amendment shall come into force on December 1, 1998.
* The amended provisions, etc. are as follows:(1) Article 1, Article 3, Article 4, Article 5, Article 6, Article 7, Article 10, Article 11, and Article 12 have been
amended.
(2) Articles 2 through 3, Articles 5 and 6 have been deleted, Article 4 has been changed to Article 3, Article 7
and Article 8 have been advanced to three Articles, respectively, replaced with Article 4 and Article 5, andArticle 2 has been newly established.
(3) Article 9, Article 10-2, and Article 13 have been deleted, Articles 10 through 12 and Articles 14 through 16
have been advanced to four Articles respectively, replaced with Article 6 through Article 12, and Article 9
has been newly established.

Supplementary Provisions
The amended provisions shall come into force on April 21, 1999; provided, however, that the provisions ofArticle 13, Paragraph 2 after the amendment shall apply to the investment report pertaining to the trust property
for which the fiscal year end will arrive on or after January 1, 2000.

Supplementary Provision
The amended provisions shall come into force on November 30, 2000.

Supplementary Provision
The amended provisions shall come into force on June 1, 2003.

Supplementary ProvisionThis amendment shall come into force on April 1, 2005.

Supplementary ProvisionThis amendment shall come into force on January 31, 2006.

Supplementary ProvisionThis amendment shall come into force on March 8, 2007.

Supplementary ProvisionThis amendment shall come into force on the date on which the approval of the competent government agency
is obtained for the Articles of Incorporation (September 30, 2007).

Supplementary Provisions
1.

This amendment shall come into force on the date on which the approval of the competent government
agency is obtained (March 31, 2008).

2.

Ensuring Proper Handling of Personal Information by Members (Resolution of the Board of Directors ofApril 27, 2005) shall be abolished as of the date of the approval of the competent government agency
pertaining to the amendment of the Operational Rules (March 31, 2008).

Supplementary ProvisionThis amendment shall come into force on October 1, 2008; provided, however, that the amendment of Article
10 shall come into force on the date on which the approval of the competent government agency is obtained(July 25, 2008).

Supplementary Provisions
1.

This amendment shall come into force on the date separately stipulated by the board of directors(December 17, 2009) upon the approval of the competent government agency.

2.

At the time of enforcement of this amendment, complaints that have actually been filed with the
Association pursuant to the provisions of the Complaint Resolution Rules pursuant to the provisions ofArticle 12, Paragraph 2 prior to the amendment shall be handled by the Association until they are resolved.

3.

At the time of the enforcement of this amendment, with regard to mediation that has actually been filedwith the Association pursuant to the provisions of the Complaint Resolution Rules pursuant to theprovisions of Article 13, paragraph 2 prior to the amendment, the provisions then in force shall remain
applicable until the conclusion of the case pertaining to such mediation.

Supplementary Provisions
This amendment shall come into force on the date of registration of establishment of a general corporation
stipulated in Article 106, Paragraph 1 as applied mutatis mutandis by replacing certain terms pursuant to Article

121, Paragraph 1 of the Act on Arrangement of Relevant Acts Incidental to Enforcement of the Act on General
Incorporated Associations and General Incorporated Foundations and the Act on Authorization of Public
Interest Incorporated Associations and Public Interest Incorporated Foundations.
*These Supplementary Provisions were amended by the amendment of June 14, 2012.

Supplementary Provisions
This amendment shall come into force on the date of registration of establishment of a general corporation
stipulated in Article 106, Paragraph 1 as applied mutatis mutandis by replacing certain terms pursuant to Article
121, Paragraph 1 of the Act on Arrangement of Relevant Acts Incidental to Enforcement of the Act on General
Incorporated Associations and General Incorporated Foundations and the Act on Authorization of Public
Interest Incorporated Associations and Public Interest Incorporated Foundations (January 4, 2013).

Supplementary ProvisionThis amendment shall come into force on May 30, 2017 with the approval of the competent government
agency.

Supplementary ProvisionThis amendment shall come into force on the date of the approval of the competent government agency (July 1,2021).

Rules on Establishment of the Committees
Established on February 19, 1962
Revised on April 8, 1964
Revised on March 15, 1965
Revised on March 18, 1966
Revised on April 27, 1967
Fully revised on April 18, 1969
Revised on November 19, 1976
Revised on December 21, 1979
Revised on March 20, 1981
Revised on March 18, 1983
Revised on November 21, 1986
Revised on November 20, 1987
Revised on November 18, 1988
Revised on June 21, 1991
Revised on November 27, 1998
Revised on January 19, 2001
Revised on April 19, 2002
Revised on January 20, 2006
Revised on February 16, 2007
Revised on September 19, 2008
Revised on March 19, 2009
Revised on April 21, 2011
Revised on June 16, 2011
Revised on June 14, 2012
Revised on March 9, 2017
Revised on June 8, 2017
Revised on April 18, 2019
Revised on November 21, 2019
Revised on June 10, 2020
Revised on May 20, 2021
Revised on July 15, 2021

Chapter 1:
Article 1

General Provisions
Purpose

These Rules provide for the necessary matters concerning the name, composition, operation, etc. of thecommittee to be established by the Investment Trusts Association, Japan (hereinafter referred to as the“Association”) under the provisions of Article 43 of the Articles of Incorporation.

Article 2
1.

Type of Committee

The Association shall have a Self-regulation Committee, Policy Committee, Special Measures Committee,
Officer Nomination Committee, Disciplinary Committee and Appeal Examination Committee as its
constituent committees.

2.

In addition to the committees stipulated in the preceding paragraph, the Association may establish special
committees by resolution of the Board of Directors in order to examine matters to be consulted by the
Board of Directors.

Article 3

By-laws for Meeting

Each committee may, when it finds it necessary in connection with the proceedings or the operation of the
Meeting, prescribe necessary matters in addition to those provided for in these Rules.

Chapter 2:
Article 4

Self-regulation Committee
Matters under Jurisdiction

The Self-regulation Committee shall have jurisdiction over any of the following matters and may respond toinquiries from the Board of Directors regarding any of such matters under its jurisdiction or discuss any matter
it deems necessary and submit its opinions to the Board of Directors.
(1) Matters concerning self-regulation of the investment trust and investment corporation such as operation,
valuation and accounting, and disclosure(2) Matters concerning self-regulation of public offering or private placement of beneficiary certificates(including book-entry transfer beneficial interests in investment trust), investment securities orinvestment corporation bond certificates (including book-entry transfer investment corporation bonds)
or other transactions(3) Other matters concerning self-regulation related to business conducted by the Full Members of theinvestment management business, etc.

Article 51.

Composition of Committee

The number of members of the Self-regulation Committee shall not exceed 20, and shall consist ofCommittee Members with the Association Membership (Committee Members with Full Membership andCommittee Members with Supporting Members; the same shall apply hereinafter.) and the Outside
Committee Members (committee members other than the ones with the Association Membership; thesame shall apply hereinafter.).

2.

The term of office of a committee member shall be two years and shall not preclude any reappointment.
However, the term of office of committee members elected as replacements shall be the remaining term ofoffice of their predecessors.

3.

A Committee Member with the Association Membership shall be appointed to the committee from among
persons recommended by a Member Representative as representative of a Full Member or a Supporting
Member.

4.

Outside Committee Members shall be appointed from among experts such as certified public accountants
and attorneys at law, etc. (excluding persons engaged in the ordinary business of a company engaged in
the investment management business).

Article 6

The Head and Vice-head of Committee

1.

The Self-regulation Committee shall have one Head and a small number of Vice-heads.

2.

The Chairperson shall appoint, with the consent of the Board of Directors, the Head of Committee fromamong the Outside Committee Members and the Vice-head of Committee from among the committee
members.

Article 7
1.

Convocation of Committee, etc.

The Self-regulation Committee shall be convened by the Head of Committee, who shall preside over the
meeting.

2.

The Vice-heads of Committee shall assist the Head, and shall act on his/her behalf when the Head isunable to fulfil his/her duties.

Article 8
1.

Quorum and Voting

Decisions at a Self-regulation Committee meeting shall be made with a majority of members in attendance,and by a majority of those present.

2.

Each committee member shall have one voting right. However, any committee member who has a special
interest in a resolution of the Committee shall have no voting right.

3.

When any committee member is unable to attend the deliberations and resolutions at the place where theCommittee is held due to unavoidable circumstances, etc., such member may attend the deliberations andresolutions at a telephone conference, a video conference, an online conference or any other method thatenables such member to immediately participate in the deliberations and resolutions at the Committee.
Provided, however, that this shall be done only when it is stated in the convocation notice from theConvener or when individual consent is obtained from the Convener.

Article 91.

Committee in Writing

When the Head deems it necessary, he/she may substitute a resolution by the Committee for a resolution
by requesting opinions in writing from the committee members without convening the Committee.

2.

The provisions of the preceding article shall apply mutatis mutandis to the resolution in the case of thepreceding paragraph.

Article 10
1.

Attendance of Persons Other Than Committee Members

The Chairperson, the Vice-chairperson or the Managing Director and the Secretary-General may attend
and comment on the Committee as the occasion demands.

2.

The Head of Committee may, with the consent of the Committee, permit members and persons other thanthose set forth in the preceding paragraph to attend the meeting and may ask for their opinions asnecessary.

Article 111.

Expert Committee, etc.

The Self-regulation Committee may establish a necessary examination organ such as an Expert
Committee, etc. by a decision of the Committee if it is deemed necessary to conduct an expert examination
on specific problems relating to matters under its jurisdiction.

2.

The number of members of the Expert Committee, etc., the composition of the members and other mattersnecessary for the operation of the Expert Committee shall be determined by the Committee.

Article 12

Preparation of Minutes

Minutes of the proceedings and results of the proceedings of the Self-regulation Committee shall be prepared.

Chapter 3:

Policy Committee

Article 13

Matters under Jurisdiction

The Policy Committee shall have jurisdiction over any of the following matters and may respond to inquiries
from the Board of Directors on such matters under its jurisdiction or discuss any matter it deems necessary andsubmit its opinions to the Board of Directors.
Matters regarding the operation of the Association(1) Matters concerning the investment trust and investment corporation system(2) Matters concerning taxation on the investment trust and investment corporation(3) Matters regarding promotion of and education about the investment trust and investment corporation(4) Other matters related to the activities, etc. of the investment trust industry

Article 141.

Composition of Committee

The members of the Policy Committee shall not exceed 20 and shall consist of the Committee Memberswith Full Membership.

2.

The term of office of a committee member shall be two years and shall not preclude any reappointment.
However, the term of office of members elected as replacements shall be the remaining term of office of
their predecessors.

3.

Committee members shall be appointed from among those recommended by Member Representatives asrepresentatives of Full Members.

Article 15

The Head and Vice-head of Committee

1.

The Policy Committee shall have one Head and one Vice-head.

2.

The Head and Vice-head of Committee shall be appointed by the Chairperson from among the committee
members with the consent of the Board of Directors.

Article 16

Convocation of Committee, etc.

1.

The Policy Committee shall be convened by the Head of Committee, who shall preside over the meeting.

2.

The Vice-heads of Committee shall assist the Head, and shall act on his/her behalf when the Head isunable to fulfil his/her duties.

Article 17

Quorum, Resolution and Preparation of Minutes, etc.

The provisions of Article 8, Article 9 and Article 12 shall apply mutatis mutandis to the quorum, voting, andholding of the Policy Committee in writing and preparation of the minutes of the Policy Committee. In this case,the term “Self-regulation Committee” in Article 8 and Article 12 shall be deemed to be replaced with “Policy
Committee.”Article 18
1.

Attendance of Persons Other Than Committee Members

Chairperson, the Vice-chairperson or the Managing Director and the Secretary-General may attend andcomment on the Committee as the occasion demands.

2.

The Head may, when he/she find it necessary, request the attendance of any person other than thecommittee members and the persons set forth in the preceding paragraph and hear their opinions with theconsent of the Committee.

Article 19
1.

Expert Committee, etc.

The Policy Committee may, when it finds it necessary to conduct expert examination on specific problems
relating to matters under its jurisdiction, establish necessary examination bodies such as expert
committees by a decision of the Committee.

2.

The number of members of the Expert Committee, etc., the composition of the members and other mattersnecessary for the operation of the Expert Committee shall be determined by the Committee.

Chapter 4:
Article 20

Special Measures Committee
Matters under Jurisdiction

The Special Measures Committee shall decide upon the measures to be taken in the event that the supply anddemand of Shares, etc. becomes unilateral and the market function fails to function normally or any other event
equivalent thereto (hereinafter referred to as an “Emergency Event”) occurs due to suspension of transactions
on Financial Instruments Exchanges, suspension of transactions on the foreign exchange market or decline ofstock prices on the stock market.

Article 21
1.

Composition of Committee

The number of members of the Special Measures Committee shall not exceed twelve and shall consist of
one Chairperson, Vice-chairperson or Managing Director and Committee Members with the Association
Membership.

2.

The term of office of a committee member shall be two years and shall not preclude any reappointment.
Provided, however, that the term of office of any committee member (including any person newly
appointed as Chairperson, Vice-chairperson or Managing Director) elected as a result of the re-election
shall be the remaining term of office of the predecessor.

3.

A Committee Member with Full Membership shall be appointed from among the representatives of Full
Members or their proxies, and a Committee Member with Supporting Membership shall be appointed
from among the representatives of Supporting Members.

Article 22

The Head of Committee

1.

The Head of the Special Measures Committee shall be the Chairperson.

2.

When the Head of Committee is unable to perform his/her duties, the Vice-chairperson or the Managing

Director shall act for them.
3.

When both the Head of Committee and the Vice-chairperson or the Managing Director are unable toperform their duties, a committee member designated in advance by the Head of Committee shall perform
such duties on their behalf.

Article 23
1.

Convocation of Committee

The Special Measures Committee shall be convened by the Head of Committee when he/she deem itnecessary to decide measures required in case of Emergency Event, who shall preside over the meeting.

2.

When the Special Measures Committee is convened in accordance with the provision of the preceding
paragraph, the Association shall promptly communicate the details of any Emergency Event that has
occurred and any other necessary matters to the committee members and the Association members.

Article 24
1.

Resolution, etc. for Implementation of Measures

The Special Measures Committee may decide to implement any of the measures set forth in the following
items in accordance with the details of the Emergency Event which has occurred and the circumstances
after the occurrence thereof.
(1) Suspension of acceptance of applications for establishment and cancellation(2) Other measures deemed appropriate by the Special Measures Committee

2.

When the Special Measures Committee decides to implement any measure pursuant to the provisions of
the preceding paragraph, the Association shall promptly notify the members of the content of the decided
measure and any other necessary matters.

Article 25
1.

Cancellation of Measures

The Special Measures Committee shall decide to cancel the measures taken under the provisions of thepreceding article if it is found that transactions on a financial instruments exchange have been
recommenced or any other circumstances have changed.

2.

When the Special Measures Committee has decided to cancel the Special Measures pursuant to theprovisions of the preceding paragraph, the Association shall promptly notify the Association members tothat effect.
Provided, however, that if, at the time of adopting a resolution to implement any measure pursuant to theprovisions of the preceding article, the conditions for cancellation of such measure and the time forcancellation thereof have also been adopted, such resolution to cancel such measure shall be deemed tohave been adopted.

Article 26

Quorum, Resolution and Preparation of Minutes, etc.

The provisions of Article 8, Article 9 and Article 12 shall apply mutatis mutandis to the quorum, voting, andholding of the Special Measures Committee in writing and preparation of the minutes of the Special Measures
Committee. In this case, the term “Self-regulation Committee” in Article 8 and Article 12 shall be deemed to be
replaced with “Special Measures Committee.”Article 27
1.

Voting, etc. in the Event of Unavoidable Circumstances

If the Head of the Committee deems it appropriate to take necessary emergency measures in order tosecure and protect the appropriate operation of the investment trust in the Emergency Event and deems it
difficult to immediately call a meeting of the Special Measures Committee, the Head of the Committee
may consult committee members concerning the measures provided in Article 24 by means ofcommunication such as telephone, e-mail, etc. to hear their opinions, notwithstanding the provisions ofArticle 9 as applied mutatis mutandis pursuant to Article 23 and the preceding article. If the Head of theCommittee obtains the approval of a majority of the committee members for the implementation of themeasures, it shall be deemed that a resolution has been passed at the Special Measures Committee basedon the provisions of Article 8 as applied mutatis mutandis pursuant to the preceding article.
In this case, the Head of Committee shall notify the committee members and the Association members of
the contents of the decided measures and other necessary matters as soon as possible.

2.

When the Head of the Committee finds it appropriate to take necessary measures to prevent confusion in
the investment trust market and protect investors in the Emergency Event and impossible to convene aSpecial Measures Committee or to consult with or hear the opinions of the committee members throughthe communication means, etc. prescribed in the preceding paragraph, he/she may decide to take suchmeasures at his/her discretion.
In this case, the Head of Committee shall notify the committee members and the Association members of
the contents of the decided measures and other necessary matters as soon as possible in accordance withthe state of restoration of the communication means, etc.

3.

If the Head of Committee finds that there has been a change in the situation, such as the resumption oftransactions on a financial instruments exchange or any other change in circumstances, and finds it
appropriate to adopt a resolution to cancel any measure taken pursuant to the provisions of Paragraph 1 or
2 and finds it difficult to immediately convene a Special Measures Committee meeting, the Head of theCommittee may, notwithstanding the provisions of Article 9 as applied mutatis mutandis pursuant to
Article 23 and the preceding article, consult with the committee members about the cancellation of any
measure provided for in Article 25 by means of communication such as telephone, e-mail, etc. and hear
their opinions, and if the Head of the Committee obtains the consent of a majority of committee members
regarding the cancellation of any measure, the Special Measures Committee meeting shall be deemed tohave adopted a resolution pursuant to the provisions of Article 8 as applied mutatis mutandis pursuant to
the preceding article.
In this case, the Head of Committee shall notify the committee members and the Association members of
the contents of the decided measures and other necessary matters as soon as possible.

Article 27-2

Committee Operating Procedures, etc.

In addition to what is provided for in these Rules, procedures and other matters necessary for the operation of
the Special Measures Committee shall be provided for in the Rules for Operation of the Special Measures
Committee.

Chapter 5:
Article 28
1.

Officer Nomination Committee
Matters under Jurisdiction

The Officer Nomination Committee shall recommend to the Chairperson candidates for Officers of the
Association (meaning Directors and Auditors; the same shall apply hereinafter).

2.

The Officer Nomination Committee shall recommend candidates for officers at the time of any change of
officers following the expiration of the term of office of officers in accordance with the guidelines for theappointment of officers set forth in advance by the Board of Directors.
In this case, in recommended candidates for officers to be selected from the Full Members shall be eitherof the following persons:(1) A Full Member Representative as provided in Article 6, Paragraph 1, Item 1 of the Rules for
Enforcement of the Articles of Incorporation who has submitted a notification to the Association.
(2) A person who was formerly a Representative Director, etc. among Full Members and is a Director or
who has a position similar thereto (in case the Full Member is a foreign corporation, a person who wasa representative in Japan provided by such person and who has a position similar thereto)

3.

The Officer Nomination Committee shall, in the election of candidates for officers approved by the Boardof Directors, recommend candidates for successor officers in accordance with the provisions of theproviso of Paragraph 1 of Article 2 of the Rules for Electing Officer Candidates.
In this case, when recommending candidates for officers to be selected from Full Members, based on theprovisions of Article 6, Paragraph 1, Item 1 of the Rules for Enforcement of the Articles of Incorporation,
the Full Member Representative who has been notified to the Association or a person who was in theposition of Representative Director, etc. at such company and the position of Director, etc. or a person
who has a position similar thereto shall be recommended.
Provided, however, that this shall not apply to cases where the Board of Directors has decided not toappoint any additional officer to the position left open.

4.

The Officer Nomination Committee shall nominate candidates for the Chairperson and theVice-chairperson of the Association from among candidates for the Board of Directors to be nominated inaccordance with the Guidelines for Nomination of Directors established in advance by the Board of
Directors.

Article 29
1.

Composition of Committee

The number of members of the Officer Nomination Committee shall not exceed 10 and shall consist ofCommittee Members with Full Membership as well as Outside Committee Members.

2.

The term of office of a committee member shall be two years and shall not preclude any reappointment.
However, the term of office of committee members elected as replacements shall be the remaining term ofoffice of their predecessors.

3.

Committee Members with Full Membership shall be appointed from among the Full Members whoconstitute the Board of Directors with Full Membership of the Association.

4.

Outside Committee Members shall be appointed from among experts such as attorneys at law, etc. orexternal Full Members constituting the Board of Directors of the Association.

Article 30

The Head and Vice-head of Committee

1.

The Officer Nomination Committee shall have 1 Head and 1 Vice-head.

2.

The Head of Committee shall be elected from among the Outside Committee Members, and the Vice-headof Committee shall be elected from among the Committee Members with Full Membership by the
Chairperson with the consent of the Board of Director.

Article 31
1.

Convocation of Committee, etc.

The Officer Nomination Committee shall be convened by the Head of Committee, who shall preside overthe meeting.

2.

The Vice-head of Committee shall assist the Head, and shall act on his/her behalf when the Head is unable
to fulfil his/her duties.

Article 32
1.

Quorum, Resolution and Preparation of Minutes, etc.

The provisions of Article 8, Article 9 and Article 12 shall apply mutatis mutandis to the quorum, voting,and holding of the Officer Nomination Committee in writing and preparation of the minutes of the Officer
Nomination Committee. In this case, the term “Self-regulation Committee” in Article 8 and Article 12
shall be deemed to be replaced with “Officer Nomination Committee.”

2.

The minutes to be prepared under the provisions of Article 12 as applied mutatis mutandis pursuant to thepreceding paragraph shall be kept private.

Article 33
1.

Attendance of Persons Other Than Committee Members

The Chairperson, the Vice-chairperson or the Managing Director may attend and comment on theCommittee as the occasion demands.

2.

When the Head of the Committee deems it necessary, he/she may request persons other than those set
forth in the preceding paragraph to attend the meeting with the consent of the Committee and hear theopinions of such persons.

Chapter 6:

Disciplinary Committee

Article 34

Matters under Jurisdiction

The Disciplinary Committee may respond to the consultation from the Chairperson or may state its opinions tothem with respect to any of the following:(1) Matters concerning disposition of the Association members under Article 17 of the Articles ofIncorporation and recommendation to Full Members under Article 18 of the same(2) Matters concerning disposition of Sales Representatives (meaning Sales Representatives as defined in
Article 2 of the Rules for Registration, etc. of Sales Representatives) under the same Rules(3) Other matters deemed necessary by the Chairperson(4) Matters requested in writing by one third or more of the committee members

Article 35
1.

Composition of Committee

The number of members of the Disciplinary Committee shall not exceed nine and shall consist ofCommittee Members with the Association Membership and Outside Committee Members.

2.

The term of office of a committee member shall be two years and shall not preclude any reappointment.
However, the term of office of committee members elected as replacements shall be the remaining term ofoffice of their predecessors.

3.

The Committee Member with the Association Membership shall be appointed from among the Full
Members (meaning the Directors selected from Full Members) who constitute the Board of Directors of
the Association.

4.

Outside Committee Members shall be appointed from among experts such as attorneys at law, etc.
(excluding persons concerned with the ordinary business of a company engaged in the investment
management business).

Article 36

The Head and Vice-head of Committee

1.

The Disciplinary Committee shall have one Head and one Vice-head.

2.

The Head and Vice-head of Committee shall be appointed by the Chairperson from among the committee
members with the consent of the Board of Directors.

Article 37
1.

Convocation of Committee, etc.

The Disciplinary Committee shall be convened by the Head of Committee in any of the following cases:(1) When consulted by the Chairperson(2) When requested by one third or more of the committee members in writing that specifies the purpose of
the meeting

2.

The Head of Committee shall chair the Committee and preside over the meeting.

3.

The Vice-head of Committee shall assist the Head, and shall act on the behalf of the Head when he/she areunable to fulfill his/her duties.

Article 38
1.

Quorum, Resolution and Preparation of Minutes, etc.

The provisions of Article 8, Article 9 and Article 12 shall apply mutatis mutandis to the quorum, voting,and holding of the Disciplinary Committee in writing and preparation of the minutes of the Disciplinary
Committee. In this case, the term “Self-regulation Committee” in Article 8 and Article 12 shall be deemed
to be replaced with “Disciplinary Committee.”

2.

The minutes to be prepared under the provisions of Article 12 as applied mutatis mutandis pursuant to thepreceding paragraph shall be kept private.

Chapter 7:
Article 39

Appeal Examination Committee
Matters under Jurisdiction

The Appeal Examination Committee shall examine and deliberate any appeal against the disposition ofmembers conducted by the Association as provided in Article 17 of the Articles of Incorporation and any otherdisposition of Sales Representatives as provided in the Rules of the Association.

Article 40
1.

Committee Members

The number of members of the Appeal Examination Committee shall not be more than 3 and shall consistof the Outside Committee Members.

2.

The term of office of a committee member shall be two years and shall not preclude any reappointment.
However, the term of office of committee members elected as replacements shall be the remaining term ofoffice of their predecessors.

3.

Committee members shall be appointed from among experts such as attorneys at law.

Article 41

The Head and Vice-head of Committee

1.

The Appeal Examination Committee shall have one Head and one Vice-head.

2.

The Head and Vice-head of Committee shall be appointed by the Chairperson from among the committee
members with the consent of the Board of Directors.

Article 42
1.

Convocation of Committee, etc.

The Appeal Examination Committee shall be convened by the Head of Committee, who shall chair the
meeting.

2.

The Vice-head of Committee shall assist the Head, and shall act on his/her behalf when the Head is unable
to fulfil his/her duties.

Article 43
1.

Quorum, Resolution and Preparation of Minutes, etc.

The provisions of Article 8, Article 9 and Article 12 shall apply mutatis mutandis to the quorum, voting,and holding of the Appeal Examination Committee in writing and preparation of the minutes of the
Appeal Examination Committee. In this case, the term “Self-regulation Committee” in Article 8 and
Article 12 shall be deemed to be replaced with “Appeal Examination Committee.”

2.

The minutes to be prepared under the provisions of Article 12 as applied mutatis mutandis pursuant to thepreceding paragraph shall be kept private.

Article 44

Attendance of Persons Other Than Committee Members

The Appeal Examination Committee may request the attendance of persons other than the committee members
and hear their opinions if it deems necessary.

Article 45

Committee Operating Procedures, etc.

In addition to what is provided for in these Rules, procedures for proceedings and other matters necessary forthe operation of the Appeal Examination Committee shall be provided for in the Rules on Dispositions ofMembers and Sales Representatives of Financial Instruments Intermediary Service Providers, etc.

Chapter 8:

Miscellaneous Provisions

Article 46

Resignation of Members, etc.

1.

Any member of the committee who intends to resign as a member of the committee shall notify the
Association of such resignation using Appended Form No. 1.

2.

If a committee member who intends to resign is a member with the Association Membership, therepresentative of such member shall notify the Association of the member who intends to resign and theperson recommended as his/her successor using Appended Form No. 2, notwithstanding the provisions of
the preceding paragraph.
However, in the case of any unavoidable reason, the successor of such committee member may not be
nominated.

Supplementary Provision
These Rules shall come into effect on May 1, 1969.

Supplementary Provision
The amended provisions of Article 4 shall come into effect on December 1, 1976.

Supplementary Provision
The amended provisions of Article 4 shall come into effect on December 21, 1979.

Supplementary Provision
The amended provisions of Article 4 shall come into effect on March 20, 1981.

Supplementary Provision
The amended provisions of Article 4 shall come into effect on March 18, 1983.

Supplementary Provision
The amended provisions of Article 4 shall come into effect on November 21, 1986.

Supplementary Provision
The amended provisions of Article 4 shall come into effect on November 20, 1987.

Supplementary Provision
The amended provisions of Article 4 and Article 5, Paragraph 4 shall come into effect on November 18,
1988.

Supplementary Provision
The amended provisions of Article 2, Article 3 and Article 4 shall come into effect on July 1, 1991.

Supplementary ProvisionThis amended provision shall come into effect on December 1, 1998.

Supplementary ProvisionThis amended provision shall come into effect on January 19, 2001.

Supplementary ProvisionThis revised provision shall come into effect on April 19, 2002.

Supplementary ProvisionThis amendment shall come into effect on March 1, 2006.
However, the provisions in Article 6, Paragraph 1, Item 1 after amendment shall apply to committee
members commissioned after July 1, 2006.

Supplementary ProvisionThis amendment shall come into effect on February 16, 2007.

Supplementary Provisions
1. This amendment shall come into effect on October 1, 2008.
2. Notwithstanding the provisions of Paragraph 2 of Article 5, Paragraph 2 of Article 14, Paragraph 3 of Article
21 and Paragraph 2 of Article 29, the term of office of the first committee member elected after the effective
date of the amended provisions shall be until June 30, 2009.

Supplementary ProvisionThis amendment shall come into effect on March 19, 2009.

Supplementary ProvisionThis amendment shall come into effect on June 30, 2011.

Supplementary Provisions
This amendment shall be implemented from the date of registration of the establishment of the general
corporation as provided in Article 106, Paragraph 1 as applied mutatis mutandis by replacing certain terms

pursuant to Article 121, Paragraph 1 of the Act on Arrangement of Relevant Acts Incidental to Enforcement of
the Act on General Incorporated Associations and General Incorporated Foundations and the Act on
Authorization of Public Interest Incorporated Associations and Public Interest Incorporated Foundations.
* Revised the supplementary provisions in accordance with the amendment of June 14, 2012.

Supplementary Provisions
This amendment shall be implemented from the date of registration of the establishment of the general
corporation (January 4, 2013) as provided in Article 106, Paragraph 1 as applied mutatis mutandis by replacing
certain terms pursuant to Article 121, Paragraph 1 of the Act on Arrangement of Relevant Acts Incidental to
Enforcement of the Act on General Incorporated Associations and General Incorporated Foundations and the
Act on Authorization of Public Interest Incorporated Associations and Public Interest Incorporated
Foundations.

Supplementary Provisions
This amendment shall come into effect on June 30, 2017.
However, the amended provisions of Article 28, Paragraph 2 and Paragraph 4 shall come into effect on April 1,
2017.

Supplementary ProvisionThis amendment shall come into effect on July 1, 2017.

Supplementary ProvisionThis amendment shall come into effect on May 1, 2019.
* Necessary arrangement in connection with the change of era nameSupplementary Provisions
This amendment shall come into effect on November 21, 2019.
* The amended provisions are as follows:‐

Article 28, Paragraphs 2 and 4; Article 29, Paragraphs 1 and 4; and Article 33, Paragraph 1

Supplementary Provisions
This amendment shall come into effect on June 30, 2020.
* The amended provisions are as follows:‐

Newly established Article 8, Paragraph 3.

Supplementary Provisions
This amendment shall come into effect on June 1, 2021.
* The amended provisions are as follows:‐

Appended Form No. 1 and No. 2 as specified in Article 39, Paragraph 1 and Paragraph 2

Supplementary Provisions
This amendment shall come into effect on July 15, 2021.
* The amended provisions are as follows:‐

Article 2, Paragraph 1; Article 4, Paragraph 2; Article 5, Paragraph 1; Article 14, Paragraph 1; Article
23, Paragraph 2; Article 24, Paragraph 2; Article 25, Paragraph 1; Article 27, Paragraphs 1 through 3;
Article 34‐

Article 24, Paragraph 1, Item 2 is deleted.

‐

New establishment of Article 23, Paragraph 2, Article 27-2 and Chapter 7 (Articles 39 through 45) andthe resulting chapter and article slippage

(Appended Form No. 1)
Application Date YYYY/MM/DD

The Investment Trusts Association, Japan
To: Chairperson(Trade Name or Name)(Name)

Notification of Resignation of Committee Member

I would like to resign my position as a member of the XX Committee as of YYYY/MM/DD for reasons ofconvenience.

(Appended Form No. 2)
Application Date YYYY/MM/DD

The Investment Trusts Association, Japan
To: Chairperson(Trade Name or Name)(Representative)

Change of Committee Member, etc.

The following member of the committee will be changed as of YYYY/MM/DD and his/her successors will be
nominated.

Notice1. Name of Committee

XX Committee

2. Contents of Change of Committee Members(Title)(Name, Reading)Current Committee Member

Proposed Successor(E-mail Address:)

Rules on Operation of the Special Measures Committee
Established on July 15, 2021

Article 1 Purpose
These Rules provide for procedures and other matters necessary for the meeting to proceed in accordance withthe provisions of Article 3 and Article 27-2 of the Rules on Establishment of the Committees (hereinafterreferred to as the “Rules on Establishment of the Committees”) of the Investment Trusts Association, Japan(hereinafter referred to as the “Association”).

Article 2 Convocation
A convocation of the Special Measures Committee prescribed in Article 23 of the Rules for Establishment of
the Committees shall be convened by the Head of Committee in accordance with the following:(1) An emergency as defined in Article 20 of the Rules for Establishment of the Committees (hereinafterreferred to as an “Emergency Event”) occurs when the Tokyo Stock Exchange, Inc. or the Osaka
Exchange, Inc. (hereinafter referred to as the “Tokyo Stock Exchange, etc.”) suffers a system failure,earthquake, typhoon, fire, or other disaster or riots, or acts of destruction such as terrorism (hereinafterreferred to as a “System Failure, etc.”), and purchase and sale transactions on the Tokyo Stock
Exchange, etc. (hereinafter referred to as “On-Exchange Transactions”) are suspended, and the Head ofCommittee acknowledges it necessary to take necessary measures.
(2) When an Emergency Event other than a System Failure, etc. at the Tokyo Stock Exchange, etc. asprovided in the preceding item occurs and the Head of Committee deems it necessary to decidenecessary measures

Article 3 Resolution, etc. for Implementation of Measures
1.

The Special Measures Committee shall convene in accordance with the provisions of Item 1 of thepreceding article shall decide to suspend acceptance of establishment and cancellation of contracts as set
forth in Item 1 of Paragraph 1 of Article 24 of the Rules for Establishment of the Committees (hereinafterreferred to as the “Suspension of Acceptance”) in the cases set forth in the following items:(1) In the event a System Failure, etc. has occurred before the morning session for On-Exchange
Transactions (morning session) is commenced, and the resumption of On-Exchange Transactions
during the day is not certain because the Tokyo Stock Exchange, etc. has not announced its intention to
resume On-Exchange Transactions by the end of the morning session (morning close)(2) In cases other than those in the preceding item, when resumption of On-Exchange Transactions cannot
be confirmed, and in the absence of any announcement by the Tokyo Stock Exchange, etc. regarding
resumption of On-Exchange Transactions during the day in question as of the time the Special
Measures Committee is convened

2.

The Special Measures Committee that is convened pursuant to the provisions of Item 2 of the precedingarticle may decide to implement any of the measures set forth in the following items in accordance with
the nature of the Emergency Event occurred and the circumstances after the occurrence thereof.
(1) Suspension of Acceptance(2) Other measures deemed appropriate by the Special Measures Committee

Article 4 Notice of Convocation and Notification to Members, etc.
The communication stipulated in Article 23, Paragraph 2 of the Rules for Establishment of the Committees
shall be handled in accordance with the following items:(1) When the secretariat of the Association recognizes the occurrence of a System Failure, etc. in the Tokyo
Stock Exchange, etc., the secretariat shall promptly communicate the nature of the System Failure, etc.
and possibility of convening the committee by means of the members preferred contact method(department or person in charge designated in advance to the Association as one who can promptly andreliably communicate with the committee member (hereinafter referred to as the “Special Measures
Liaison”)).
(2) When the Head of Committee decides to convene the Special Measures Committee due to theoccurrence of an Emergency Event, the secretariat of the Association shall promptly inform the Special
Measures Liaison of the necessary information for the convocation. In addition, the secretariat of the
Association shall notify the administrative liaison and the emergency liaison of the members
concerning the nature of the Emergency Event that has occurred and other necessary matters, and shallalso notify the scheduled time for convening the Special Measures Committee on the website dedicatedto the members of the Association.
(3) The Special Measures Liaison set forth in Item 1 shall be identified using Appended Form No. 1, andnotification of any such change in the content thereof shall be promptly made using Appended Form No.
2.
(4) The administrative liaison set forth in Item 2 refers to the office liaison person a Member identifies to
the Association under Article 4 of the Rules for Enforcement of the Articles of Incorporation, and theemergency liaison refers to the person the Full Member designates to the Association in advance on
Appended Form No. 3. The Committee must be promptly notified of any change to such emergency
liaison by means of Appended Form No. 4, “Electronic Notification and Storage System for
Notifications by members of the Association.”

Article 5 Notice of Resolution
With respect to the notification of resolutions made by the Special Measures Committee prescribed in Article
24, Paragraph 2 of the Rules for Establishment of the Committees and Article 25, Paragraph 2 of the same
Rules, the contents set forth in the following items shall be notified by the secretariat of the Association to theadministrative liaison and the emergency liaison as well as posted on the website dedicated to the members of
the Association.
(1) In case of a resolution to implement the measures under the provisions of Article 3, the contents of theEmergency Event and the contents of the measures so resolved(2) In case of a resolution to lift the measures under the provisions of Article 25 of the Rules on
Establishment of the Committees, the contents of such resolution

Article 6 Communication in Case of Unavoidable Circumstances
With regard to the communications provided for in each paragraph of Article 27 of the Rules on Establishmentof the Committees, the secretariat of the Association shall respond as soon as possible in accordance with theprovisions of Articles 4 and 5, taking into consideration the status of recovery of communication means, etc.

Supplementary Provision
These Rules shall come into effect on July 15, 2021.

Appended Form No. 1
Application Date YYYY/MM/DD

To: Investment Trusts Association, Japan(Trade Name or Name)

Notification of Special Measures Liaison

We hereby inform that our company’s Special Measures Liaison is the following person/department inaccordance with Article 4 of the Rules on Operation of the Special Measures Committee of your
Association.

Notice(Name/Department)(Affiliation and Title)(Telephone Number)(E-mail Address)* Special Measures Liaison is a liaison office for promptly and surely communicating between the
Association and the Special Measures Committee in the event of an Emergency Event.

Appended Form No. 2
Application Date YYYY/MM/DD

To: Investment Trusts Association, Japan(Trade Name or Name)

Notification of Change to Special Measures Liaison

As there has been a change to the following matters regarding our company’s Special Measures
Liaison, we hereby inform such change in accordance with Article 4 of the Rules on Operation of theSpecial Measures Committee of your Association.

Notice1. Changes(After changes)(Before changes)(Name/Department)(Affiliation and Title)(Telephone Number)(E-mail Address)

2. Date of Change* Special Measures Liaison is a liaison office for promptly and surely communicating between the
Association and the Special Measures Committee in the event of an Emergency Event.

Appended Form No. 3
Application Date YYYY/MM/DD
To: Investment Trusts Association, Japan(Trade Name or Name)

Notification of Emergency Liaison

We hereby inform that our company’s emergency liaison is the following person in accordance with
Article 4 of the Rules on Operation of the Special Measures Committee of your Association.

NoticePerson in Charge

Title

Office Phone
NumberOffice E-mailAddress

Emergency Contact(Home, Mobile
Phone, etc.)

1
2
3
4
5
6
7
8
9
10

* The contact information that has been notified will be linked to the Financial Services Agency (FSA) as the“Emergency Contact” that has been previously requested by the Financial Services Agency.
* If the person in charge of the “Emergency Liaison” based on Article 4 of the Rules and the “Emergency
Contact” requested by the FSA (approximately 2 people, such as a compliance officer) are different,
please inform both of them.

Appended Form No. 4
Application Date

YYYY/MM/DD

To: Investment Trusts Association, Japan

Trade Name or Name

Notification of Change of Emergency Liaison

As there has been a change to our emergency liaison, we hereby inform such change in accordancewith Article 4 of the Rules on Operation of the Special Measures Committee of your Association.
Notice(Before changes)

Person in Charge
1
2
3
4
5
6
7
8
9
10

Title

Office Phone
NumberOffice E-mailAddress

Emergency Contact(Home, Mobile
Phone, etc.)

(After changes)

Person in Charge

Title

Office Phone
NumberOffice E-mailAddress

Emergency Contact(Home, Mobile
Phone, etc.)

1
2
3
4
5
6
7
8
9
10

Date of Change

YYYY/MM/DD* The contact information that has been notified will be linked to the Financial Services Agency (FSA) as
the “Emergency Contact” that has been previously requested by the Financial Services Agency.
* If the person in charge of the “Emergency Liaison” based on Article 4 of the Rules and the “Emergency
Contact” requested by the FSA (approximately 2 people, such as a compliance officer) are different,
please inform both of them.

Rules on Dispositions of Members and Sales Representatives of Financial
Instruments Intermediary Service Providers, etc.
Established on January 20, 2006
Revised on May 18, 2007
Revised on September 21, 2007
Revised on September 19, 2008
Revised on June 16, 2011
Revised on June 14, 2012
Revised on July 15, 2021

Chapter 1:
Article 1

Purpose
Purpose

These Rules set forth necessary matters concerning disposition against a member as provided in Article 17 of
the Articles of Incorporation (meaning collection of a fine, the suspension or restriction of a membershipagainst a Full Member, and the expulsion of a Supporting Member; hereinafter referred to as a “Member
Disposition”), recommendations for Full Members as stipulated in Article 18 of the Articles of Incorporation(hereinafter referred to as “Recommendation”), disposition and other measures against a Sales Representative(meaning a sales representative stipulated in Article 2 of the same Rules; the same shall apply hereinafter) set
forth in the Rules for Registration, etc. of Sales Representatives (hereinafter referred to as the “Rules for
Registration of Sales Representatives”). (hereinafter referred to as a “Sales Representatives Disposition.”)

Chapter 2:
Article 21.

Investigation on Member Disposition and Sales Representatives Disposition, etc.
Investigation

The Chairperson may order the secretariat to investigate any case in which a Full Member is considered tofall under any of the items in Article 17, Paragraph 1 of the Articles of Incorporation or any case in whicha Full Member is considered to fall under any of the circumstances provided for in Article 18 of the
Articles of Incorporation, or any case in which a Full Member is considered to fall under any of thegrounds for disposition or refusal to register as a Sales Representative provided for in the Rules for
Registration of Sales Representatives.

2.

The Chairperson may order the secretariat to investigate any case in which a Supporting Member isconsidered to fall under any of the items in Article 17, Paragraph 2 of the Articles of Incorporation.

3.

The Chairperson may request members to submit materials or to give written or oral explanations in order
to conduct the investigations provided in the preceding two paragraphs.

4.

When requested to submit materials or give explanations as provided in the preceding paragraph, aMember shall not refuse such request without a justifiable reason.

Chapter 3:

Procedures for Member Disposition, etc.

Article 3

Consultation with the Disciplinary Committee

1.

When the Chairperson finds it appropriate to make a Member Disposition or Recommendation to suchmember as a result of the investigation provided in the preceding article or the member investigation (meaning
the member investigation provided in Article 9 of the Operational Rules ), he/she may consult with theDisciplinary Committee regarding such response and request its opinion.
2.

When requesting opinions to the Disciplinary Committee under the provisions of the preceding paragraph,
the Chairperson shall report to the Disciplinary Committee the result of the investigation pursuant toParagraph 1 or 2 of the preceding article.

Article 4
1.

Deliberation, etc. by the Disciplinary Committee

The Disciplinary Committee shall discuss the response (including the content and reasons thereof as wellas whether or not it is appropriate to make a Member Disposition or Recommendation) to any matterconsulted by the Chairperson under the provisions of the preceding article or any other matter deemednecessary by the Disciplinary Committee.

2.

In order to conduct the deliberations stipulated in the preceding paragraph, the Disciplinary Committee
may order the secretariat to conduct an investigation and request the secretariat to report the results of theinvestigation as necessary.

3.

The Disciplinary Committee may, when it finds such deliberation necessary, request the members
pertaining to such case to attend the Disciplinary Committee or to submit a detailed report thereof.

4.

If, as a result of deliberation under the provisions of Paragraph 1, the Disciplinary Committee finds it
appropriate to make a Member Disposition, the Committee shall report to the Chairperson in writing thetype, extent of, and reasons for such disposition, and when the Disciplinary Committee finds it appropriate
to make a Recommendation, shall report the contents and reasons thereof to such member.

Article 5

Opportunity for Defense

If the Chairperson submits the matter of Member Disposition to a General Meeting or the Board, such Member
shall be given an opportunity to defend the Member Disposition, and the procedures of such defense shall be
implemented according to the provisions of the By-laws on Dispositions of Members and Sales
Representatives of Financial Instruments Intermediary Service Providers, etc. (hereinafter referred to as the“By-laws on Dispositions, etc.”).

Article 6
1.

Submission of matters to General Meeting, etc.

The Chairperson shall submit the matter to the General Meeting or the Board of Directors under theprovisions of Article 17 of the Articles of Incorporation if the Chairperson finds it appropriate toundertake a Member Disposition as a result of deliberation reported by the Disciplinary Committee under
Article 4, Paragraph 4.

2.

The General Meeting or the Board of Directors shall in its resolution respect the results of thedeliberations of the Disciplinary Committee.

Article 71.

Degree of Disposition, etc.

The extent to which fines are levied or membership is suspended or restricted as provided in Article 17

Paragraph 1 of the Articles of Incorporation shall be as follows:(1) Collection of a fine

100 million yen or less

Provided, however, that in the event that the matter to be disposed of falls under the act set forth in
Article 17, Paragraph 1, Item 6 of the Articles of Incorporation, and the nature thereof is deemed
malicious and to have significantly damaged trust in the asset management industry, the maximum
amount of the fine may be set at 500 million yen.
(2) Suspension or restriction of membership no longer than 6 months
2.

The collection of a fine and the suspension or restriction of membership may be combined.

3.

A Full Member must perform their obligations as a Full Member even if membership is suspended or
restricted.

4.

The application for re-admission for a person who has been expelled shall not be accepted until one year
has passed from the date of disposition.

Article 8

Recommendation

When the Chairperson finds it appropriate to request such Full Member to improve business operations, etc. asa result of the investigation provided in Article 2, Paragraph 1, or finds it appropriate to make a
Recommendation as a result of deliberation reported by the Disciplinary Committee under Article 4, Paragraph
4, the Chairperson may make a Recommendation.

Article 9

Other Measures

The Chairperson may give oral or written warning (hereinafter referred to as “Warning”) to Full Members inaccordance with the nature of the case, in addition to making a Member Disposition or Recommendation.

Article 10

Request for Business Improvement Plans, etc.

When the Chairperson has given any disposition, Recommendation or Warning to a Full Member, he/she may
request such Full Member make a report on preparation of the business improvement plan and the state of
implementation of measures based on the business improvement plan, as well as any other necessary matters.

Chapter 4:
Article 111.

Notice and Public Announcement of Disposition to Members
Notice of Disposition, etc.

When the Board of Directors decides on a Member Disposition, the Chairperson shall notify such member
in writing of the kind and extent of disposition as well as the fact of and reason for the disposition.

2.

When making any Recommendation, the Chairperson shall notify the member subject thereto of thecontent and reasons for the Recommendation in writing.

Article 12

Report to the Disciplinary Committee

If the Chairperson submit the matter of disposition against a member who has consulted with the Disciplinary
Committee under Article 3 to the General Meeting or the Board of Director, the Chairperson shall report thecontents of the resolution to the members of the Disciplinary Committee.

Article 13
1.

Announcement of Disposition

When the Chairperson has taken any action against a Member, he/she shall notify the other members tothat effect in writing or by any other means.

2.

When the Chairperson has given notice to any other Member under the provision of the preceding
paragraph, he/she shall make such notice public.

Chapter 5:
Article 14
1.

Procedures for Sales Representatives Disposition, etc.
Consultation with the Disciplinary Committee

When the Chairperson deems it appropriate to dispose of the Sales Representative as a result of theinvestigation or the member investigation provided in Article 2, Paragraph 1, the Chairperson may consult
with the Disciplinary Committee regarding the response thereto and request its opinion.

2.

When seeking the opinion of the Disciplinary Committee pursuant to the provisions of the preceding
paragraph, the Chairperson shall report to the Disciplinary Committee the result of the investigation
pursuant to Paragraph 1 of Article 2.

Article 15
1.

Deliberation, etc. by the Disciplinary Committee

The Disciplinary Committee shall discuss the response (including the content and reasons thereof as wellas the propriety of Sales Representatives Disposition) to any matter regarding which the Chairperson
consulted under the provisions of the preceding article, or any other matter deemed necessary by the
Disciplinary Committee.

2.

In order to conduct the deliberations stipulated in the preceding paragraph, the Disciplinary Committee
may order the secretariat to conduct an investigation and request the secretariat to report the results of theinvestigation as necessary.

3.

The Disciplinary Committee may, when it finds such deliberation necessary, request Full Members or the
persons subject to the Sales Representatives Disposition pertaining to such case to attend and beinterviewed or to submit detailed statements.

4.

If, as a result of deliberation under the provisions of Paragraph 1, the Disciplinary Committee finds it
appropriate to Sales Representatives Disposition, the Committee shall report to the Chairperson in writing
the kind, extent, and reasons for such disposition, and shall notify the Full Members concerned and thepersons subject to Sales Representatives Disposition.

Article 16

Opportunity for Defense, etc.

When the Chairperson intends to submit the matter of Sales Representatives Disposition to the Board of
Directors, he/she shall give the Financial Instruments Intermediary Service Provider and the person subject to
the Sales Representatives Disposition pertaining to such case an opportunity of explanation or hearing, andshall carry out the procedures for explanation in accordance with the By-laws on Dispositions, etc.

Article 17

Notice of Disposition, etc.

When the Board of Directors decides to dispose of Sales Representatives, the Chairperson shall notify the Full
Members concerned and the persons subject to the disposition of Sales Representatives in writing of the typeand extent of the disposition and the facts and reasons subject to the disposition.

Article 18

Report to the Disciplinary Committee

The Chairperson shall report to the members of the Disciplinary Committee the content of the resolution madeat the Board of Directors after the matter was submitted regarding the Sales Representatives Disposition who
consulted with the Disciplinary Committee in accordance with Article 14.

Article 19

Announcement of Disposition

When any Sales Representative is disposed, the Chairperson shall make public the contents of the disposition
under Article 15 of the Rules for Registration of Sales Representatives.

Chapter 6:
Article 20

Appeal Procedure
AppealA Member who has received a notice under Article 11, Paragraph 1 or a Full Member and a person subject to
the Sales Representatives Disposition who has received a notice under Article 17 may file an appeal against thecontent of the disposition to the Appeal Examination Committee as stipulated in Article 39 of the Rules for
Establishment of the Committees if he/she disagree with the content of the disposition. This appeal procedure
shall be implemented in accordance with the By-laws on Dispositions, etc.
No appeal may be filed with the Appeal Examination Committee against the refusal of registration under
Article 12 of the Rules for Registration of Sales Representatives and the Sales Representatives Disposition
under Article 14 of the same Rules.

Supplementary Provisions
1.

These Rules shall come into effect on March 1, 2006.

2.

Interim Measures(1) The provisions of Paragraph 1 of Article 3 shall apply from July 1, 2006, and the number of members of
the Disciplinary Committee shall not exceed 11 during the period until the date of such application.
(2) The provisions in Paragraph 3 of Article 3 shall apply from July 1, 2007, and the term of office of thecommissioned Disciplinary Committee member until such date of application shall be one year (theterm of office of the committee member elected to fill a vacancy shall be the remaining term of office ofthe predecessor).
(3) Any person who is currently delegated to a member of the Fairness Committee shall be deemed to havebeen delegated to a member of the Disciplinary Committee, and the Rules thereof shall apply to such
person on the effective date. The term of office of the committee members in this case shall be untilJune 30, 2006.

Supplementary Provisions
This amendment shall come into effect on June 1, 2007.
However, the provisions of Article 12 before amendment shall apply to any matter reported to the Association
before the enforcement date of such amendment provision.

Supplementary ProvisionThis amendment shall be implemented from the date of approval of the Articles of Incorporation by thecompetent authority (September 30, 2007).

Supplementary ProvisionThis amendment shall come into effect on October 1, 2008.

Supplementary Provisions (supplementary provisions revised on June 14, 2012)
This amendment shall be implemented from the date of registration of the establishment of the general
corporation as provided in Article 106, Paragraph 1 as applied mutatis mutandis by replacing certain terms
pursuant to Article 121, Paragraph 1 of the Act on Arrangement of Relevant Acts Incidental to Enforcement of
the Act on General Incorporated Associations and General Incorporated Foundations and the Act on
Authorization of Public Interest Incorporated Associations and Public Interest Incorporated Foundations.

Supplementary Provisions
This amendment shall be implemented from the date of registration of the establishment of the general
corporation (January 4, 2013) as provided in Article 106, Paragraph 1 as applied mutatis mutandis by replacing
certain terms pursuant to Article 121, Paragraph 1 of the Act on Arrangement of Relevant Acts Incidental to
Enforcement of the Act on General Incorporated Associations and General Incorporated Foundations and the
Act on Authorization of Public Interest Incorporated Associations and Public Interest Incorporated
Foundations.

Supplementary Provisions
This amendment shall come into effect on July 15, 2021.
* The amended provisions are as follows:- Change to the name of the Rules- Articles 1 through 9 have been amended.
- Paragraphs 2 through 5 of Article 5 have been deleted.
- New establishment of Chapter 5 (Articles 14 through 19) and Chapter 6 (Article 20)

By-laws on Dispositions of Members and Sales Representatives of Financial
Instruments Intermediary Service Providers, etc.
Established on July 15, 2021

Chapter 1:
Article 1

General Provisions
Purpose

These By-laws shall stipulate the necessary matters in connection with the implementation of procedures forthe filing of an explanation and appeal, etc. regarding the Member Disposition and the Sales Representatives
Disposition as set forth in Article 1 of the “Rules on Dispositions of Members and Sales Representatives ofFinancial Instruments Intermediary Service Providers, etc.” (hereinafter referred to as the “Rules for
Disposition, etc.”).

Article 2

Definition

In these By-laws, the definitions of the terms set forth in the following items shall be as prescribed respectively
in those items.
(1) Member Disposition
The Member Disposition prescribed in Article 1 of the Rules for Disposition, etc.
(2) Sales Representatives Disposition
Sales Representatives Disposition as prescribed in Article 1 of the Rules for Disposition, etc.
(3) Procedures for Explanation
Procedures for explanation under the provisions of Article 5 and Article 16 of the Rules for Disposition,etc.
(4) Hearing
A hearing under the provisions of Article 14, Paragraph 2 of the Rules for Registration, etc. of Sales
Representatives (hereinafter referred to as the “Rules for Registration of Sales Representatives”).
(5) Appeal
An appeal under Article 20 of the Rules for Disposition, etc.
(6) Appeal Examination Committee
The Appeal Examination Committee stipulated in Article 39 of the Rules for Establishment of theCommittees.

Chapter 2:
Article 3

Procedures for Explanation of Member Disposition
Opportunity for Defense

1. The Chairperson shall give the member concerned an opportunity to explain when he/she intends to submit a
proposal to the General Meeting or the Board of Directors regarding the Member Disposition.

2. The presiding officer of the opportunity for explanation shall be appointed by the Chairperson from among
the officers and employees of the Association.

Article 4

Written Notice of Explanation

1. The Chairperson shall notify the members of the following matters in writing (hereinafter in this article
through Article 6 referred to as “Written Notice of Explanation”) in implementing the procedures for
explanation.
(1) Contents and basis of intended disposition(2) The facts giving rise to the disposition(3) Time and place for the explanation(4) The Written Explanation set forth in Paragraph 1 of the following article is to be submitted to the
Association within 14 days from the date of receipt of the Written Notice of Explanation(5) Other matters deemed necessary by the Association
2. If the Association is unable to confirm that the Written Notice of Explanation has reached the Member inParagraph 1 even after 30 days have elapsed from the date of sending the Written Notice of Explanation, theWritten Notice of Explanation shall be deemed to have reached the Member on the date on which 30 days
have elapsed.
3. If the Written Notice of Explanation sent by the Association does not reach the Member in Paragraph 1, such
Member may request the Association to deliver a copy of such Written Notice of Explanation until the
expiration of 30 days from the date of dispatch of such Written Notice of Explanation by the Association.
4. In response to the request in the preceding paragraph, the Association shall promptly deliver to the Member inthe preceding paragraph a copy of the Written Notice of Explanation as per the preceding paragraph. In thiscase, at the time of such delivery, such Written Notice of Explanation shall be deemed to have reached the said
Member.

Article 5

Submission of the Written Explanation and Declaration of Opinion

1. A Member who has received a Written Notice of Explanation in Paragraph 1 of the preceding Article shallsubmit to the Association a written explanation (hereinafter referred to as the “Written Explanation” in thisarticle and the following article) stating the following matters within 14 days from the day on which such
Written Notice of Explanation reaches such Member.
(1) Approval or disapproval of the matters listed in Items 1 and 2 of Paragraph 1 of the preceding article(2) Assertions regarding the matters listed in Paragraph 1, Items 1 and 2 of the preceding article
2. If the Written Notice of Explanation dispatched by the Association does not reach the Member set forth inParagraph 1 of the preceding article, said Member may submit the Written Explanation set forth in thepreceding paragraph without receiving such Written Notice of Explanation.
3. At the time of making an explanation, the Member in question may submit a Written Explanation as set forthin Paragraph 1 as well as verbally stating facts or opinions and submitting evidential documents or articles at
the time of explanation.

Article 6

Termination of Procedures for Explanation in Case of Failure to Submit the Written Explanation

The Chairperson may conclude the procedure for explanation if the Member who has received the Written
Notice of Explanation set forth in Article 4, Paragraph 1 fails to submit the Written Explanation within the time
limit set forth in Article 5, Paragraph 1 without any justifiable reason or special circumstances.

Chapter 3:
Article 7

Notice of Disposition to Members
Notice of Disposition)

1. When making a Member Disposition under Article 17 of the Articles of Incorporation, the Association shallnotify the Member of the following matters in writing (hereinafter referred to as the “Disposition Notice” inthis article and the following article)(1) Details and grounds for disposition(2) Date of disposition(3) The facts giving rise to the disposition(4) Other matters deemed necessary by the Association
2. The Disposition Notice in the preceding paragraph shall contain the following matters.
(1) A Member may appeal the details of the Disposition Notice to the Appeal Examination Committee
within 10 days from the day when the Disposition Notice arrives.
(2) When any Member files an appeal as described in the preceding item, he/she must do so by submitting
a written appeal as described in Paragraph 1 of the following article.
3. If, even after the expiration of 30 days from the date of dispatch of the Disposition Notice by the Association,
it cannot be confirmed that such Disposition Notice has reached the Member in Paragraph 1, such
Disposition Notice shall be deemed to have reached said Member on the expiration of the aforementioned 30
days.
4. If the Disposition Notice sent by the Association does not reach the Member in Paragraph 1, such Member
may request the Association to deliver a copy of such Disposition Notice until the expiration of 30 days fromthe date of dispatch of such Disposition Notice by the Association.
5. In response to the request in the preceding paragraph, the Association shall immediately deliver a copy of the
Disposition Notice in the preceding paragraph to the Member in the preceding paragraph. In this case, it shallbe deemed that the Disposition Notice has reached such Member at the time of such delivery.

Chapter 4:
Article 8

Procedure for Appeal against Member Disposition
Appeal

1. Any appeal shall be filed by the Member who has received the Disposition Notice set forth in Article 7,
Paragraph 1 (hereinafter referred to as the “Appealing Member”) must submit to the Appeal Examination
Committee a document stating the following matters (hereinafter referred to as “Written Appeal” in thisarticle and Article 15).
(1) Trade name and address of the Appealing Member(2) Details of the disposition and date entered in the Disposition Notice(3) Date of receipt of the Disposition Notice(4) The purpose and reason for the appeal against the disposition(5) Date of appeal
2. In the event that the Disposition Notice sent by the Association does not reach the Member stipulated in
Article 7, Paragraph 1, such Member may submit a Written Appeal set forth in the preceding paragraphwithout receiving such Disposition Notice.
3. Except in the case prescribed in the preceding paragraph, a copy of the Disposition Notice must be attachedto the Written Appeal.
4. The Written Appeal may be accompanied by documentary evidence, etc. pertaining to the reasons set forth inParagraph 1, Item 4.
5. Any appeal shall not preclude the effectiveness of any disposition pertaining to such appeal by the
Association.

Article 9

Appeal Examination

1. The Appeal Examination Committee shall examine whether there is any reason for appeal in the precedingarticle (hereinafter in this article through Article 11 referred to as “Appeal Examination”) and shall report theresult thereof to the Chairperson and also notify the Appealing Member.
2. The Appealing Member may not appeal against the results of the Appeal Examination.

Article 10

Notice of Results of Appeal Examination

1. In the event that the Appeal is deemed to have reasonable grounds in the Appeal Examination in Paragraph 1of the preceding article, a notice shall be given in writing stating the following matters.
(1) Trade name and address of the Appealing Member(2) The fact that the appeal was found to be reasonable and the reasons therefor and the date of the decision(3) To have a Re-examination of the disposition case pertaining to the Appeal Examination (hereinafterreferred to as “Appeal Case” in this article to Article 13, Articles 20 through 23)
2. In the event that no grounds are found in an Appeal Examination, notification shall be made in writing,stating the following matters.
(1) Trade name and address of the Appealing Member(2) The fact that the appeal was found to be groundless and the reasons therefor and the date of the decision
3. The notice in the preceding two paragraphs shall state that no appeal may be filed against the results of the
Appeal Examination.

Article 11

Consultation with the Disciplinary Committee

If, as a result of the Appeal Examination under Article 9, Paragraph 1, the Appeal Examination Committee
finds the appeal to be reasonable, the Chairperson shall once again consult with the Disciplinary Committee
regarding the Appeal Case and seek its opinion.

Article 12

Re-examination by the Disciplinary Committee, etc.

1. The Disciplinary Committee shall review the contents of the Appeal Case once again (including the details,
reasons, etc., as well as the propriety of disposition of the appeal) requested by the Chairperson in relation to
the Appeal Case (hereinafter referred to as “Re-examination” in this article through Article 14, Article 19
and Article 20).
2. The provisions of Article 4, Paragraph 2 and Paragraph 3 of the Rules for Disposition, etc. shall apply
mutatis mutandis when the Disciplinary Committee conducts Re-examination in accordance with theprovisions of the preceding paragraph. In this case, the term “Deliberation” in Article 4, Paragraph 2 andParagraph 3 shall be deemed to be replaced with “Re-examination” and the term “members pertaining tosuch case” in Article 4, Paragraph 3 shall be deemed to be replaced with “Appealing Member.”
3. If, as a result of Re-examination under the provisions of Paragraph 1, the Disciplinary Committee determinesthat the disposition of the Appeal Case is appropriate, it shall report to the Chairperson in writing to that
effect and the reasons therefor and also notify the Appealing Member to that effect.
4. If, as a result of Re-examination under the provisions of Paragraph 1, the Disciplinary Committee determinesthat the disposition of the Appeal Case is inappropriate and it is appropriate to change the disposition, theDisciplinary Committee shall report in writing to the Chairperson the type and extent of the disposition to bechanged and the reasons therefor to the Appealing Member.
5. If, as a result of Re-examination under the provisions of Paragraph 1, the Disciplinary Committee determinesthat the disposition of the Appeal Case is inappropriate and it is appropriate to revoke the disposition, theDisciplinary Committee shall inform the Chairperson in writing of the fact that the disposition should be
revoked and the reasons therefor, and shall also notify the Appealing Member to that effect.
6. The Appealing Member may not appeal the result of the Re-examination by the Disciplinary Committee.

Article 13

Opportunity for Re-explanation

1. The Chairperson shall give the Appealing Member the opportunity of re-explanation if, based on the result of
the Re-examination by the Disciplinary Committee, he proposes to the General Meeting or the Board of
Directors that the disposition of the Appeal Case be changed or revoked.
2. The presiding officer of the opportunity for re-explanation shall be appointed by the Chairperson fromamong the officers and employees of the Association.

Article 14

Procedure for Re-explanation

1. When executing the procedure for re-explanation stipulated in the preceding article, the Chairperson shallnotify the Appealing Member of a Written Notice of Re-explanation stating the following matters.
(1) To the effect that the procedures for re-explanation as prescribed in the preceding article shall be taken
during Re-examination(2) Date of disposition for Re-examination(3) Date of decision under Article 10, Paragraph 1, Item 2(4) Date and place of re-explanation(5) Other matters deemed necessary by the Association

2. The Representative of the Appealing Member or the agent appointed by such representative (hereinaftercollectively referred to as the “Re-defending Party” in this article through Article 17) must attend on the date
for re-explanation.

Article 15

Method of Proceedings on Date for Re-explanation

1. Any person who is deemed by the Chairperson to have a special interest in the Appealing Member in theprocedure for re-explanation may not preside over the procedures for re-explanation.
2. At the beginning of the first re-explanation, the presiding official shall explain the details, its grounds, thedate and the basis for the disposition, and the facts constituting the cause of said disposition to the person(s)present on the date for re-explanation.
3. The Re-defending Party may attend the meeting on the date for re-explanation, submit the Written
Re-explanation and documentary evidence, etc., state their opinion and ask questions to the staff of the
Association with the permission of the presiding official.
4. The Re-defending Party may have an assistant attend on the date for re-explanation with the permission of
the presiding official.
5. The presiding official may, when he/she finds it necessary on the date for re-explanation, ask questions to theRe-defending Party, request that he/she state his/her opinion or submit documentary evidence, etc., or
request an explanation from the staff of the Association.
6. The presiding official may present the Written Appeal and documentary evidence, etc. to the Re-defending
Party who is present on the date for re-explanation.
7. The proceedings on the date for re-explanation shall not be open to the public except when the Association
deems it appropriate to do so.
8. If, as a result of the proceedings on the date for re-explanation, the presiding official deems it necessary tocontinue the date for re-explanation, he/she may designate a further date for continuation.
9. In the case of the preceding paragraph, the date of continuation and place shall be notified in writing to the
Appealing Member in advance. However, in cases where the Re-defending Party is present on the date forre-explanation, it shall be sufficient to give notice thereof to said person involved in the re-explanation on thedate for re-explanation.

Article 16

Termination of Procedures for Re-Defense in the Absence of the Re-defending Party

If any member of the Re-defending Party fails to attend the meeting on the date for re-explanation without any
justifiable reason, the presiding official may conclude the procedures for re-explanation without giving theRe-defending Party an opportunity to express an opinion again and submit the Written Re-explanation andwritten evidence, etc.

Article 17

Record and Report of Re-explanation

1. When a date for re-explanation is held, the presiding official must prepare a record describing the progress ofthe procedure for re-explanation on each date and must have the person designated as the signatory among
the presiding officials sign and seal the record and keep it on file.

2. The presiding official shall, promptly after the termination of the procedure for re-explanation, prepare areport stating his/her opinion as to whether or not the Re-defending Party has any reason for their assertion of
the facts giving rise to the disposition, and shall report the same to the Chairperson together with the record
in Paragraph 1.
3. The Appealing Member may request inspection of the record in Paragraph 1.

Article 18

Resumption of Proceedings for Re-explanation

If the Chairperson deems it necessary to do so in consideration of circumstances arising after the termination of
the procedures for re-explanation, he/she may order the presiding official to resume the procedures forre-explanation by returning the report submitted pursuant to the provisions of Paragraph 2 of the precedingarticle. The provisions of the main clause of Article 15, Paragraph 9 shall apply mutatis mutandis in this case.

Article 19

Notice of Results of Re-examination

1. When giving notice of the results of Re-examination as stipulated in Article 12, Paragraph 1, such notice
shall be given in writing stating the following matters.
(1) Trade name and address of the Appealing Member(2) Results and reasons for Re-examination and date of decision thereof
2. In the notice in the preceding paragraph, it shall be stated that no appeal may be filed against the result of
Re-examination.

Article 20

Submission of matters to General Meeting, etc.

If the Chairperson deems it appropriate to change or revoke the disposition of the Appeal Case throughRe-examination by the Disciplinary Committee and the procedure for re-explanation by the Appealing
Members as stipulated in the preceding paragraph, he shall submit the matter to the General Meeting or the
Board of Directors.

Article 21

Notice of Disposition, etc.

If the General Meeting or the Board of Directors decides to change the disposition of the Appeal Case, theChairperson shall notify the Appealing Members in writing of the kind and extent of the changed disposition
and the facts and reasons subject to the disposition, and if the General Meeting or the Board of Directors
decides to cancel the disposition of the Appeal Case, the Chairperson shall notify the Appealing Members inwriting of the cancellation of the disposition and the reasons therefor.

Article 22

Report to the Disciplinary Committee, etc.

The Chairperson shall report the contents of the resolution to the Disciplinary Committee and the Appeal
Examination Committee if the Chairperson submits the proposal to the General Meeting or the Board of
Directors to change or revoke the disposition of the Appeal Case stipulated in the preceding paragraph.

Article 23

Announcement of Disposition

1. The Chairperson shall notify the other members in writing or otherwise if the disposition appealed is changed
or revoked under the provisions of Article 21.
2. When the Chairperson has given notice to any other Member under the provision of the preceding paragraph,he/she shall make such notice public.
3. In the case of public announcement pursuant to the preceding paragraph, the publication of Article 13,
Paragraph 2 of the Rules for Disposition, etc., concerning the Appeal Case shall be suspended.

Chapter 5:

Procedures for Explanation, etc. of Sales Representatives Disposition

Article 24

Opportunity for Defense, etc.

1. When the Chairperson intends to submit a proposal for the Sales Representatives Disposition to the Board of
Directors, he/she shall give the Financial Instruments Intermediary Service Provider (meaning the Financial
Instruments Intermediary Service Providers prescribed in Article 4, Paragraph 1, Item 1 of the Articles ofIncorporation; the same shall apply hereinafter) to which the person subject to such disposition of Sales
Representatives belongs and the person subject to such disposition of Sales Representatives (hereinafterreferred to as the “Person Subject to Disposition”) is granted an opportunity of explanation or hearing.
2. The presiding official for the opportunity of explanation, etc. shall be appointed by the Chairperson fromamong the officers and employees of the Association.

Article 25

Written Notice of Explanation

1. When the Chairperson conducts the procedures for explanation, he/she shall notify the Financial Instruments
Intermediary Service Providers through the Full Member to which the Financial Instruments Intermediary
Service Providers prescribed in Paragraph (1) of the preceding article belong or have belonged (hereinafterreferred to as the “Target Member”) of stating the following matters (hereinafter referred to as the “Written
Notice of Explanation” in this article, the following article and Article 30).
(1) Name and date of birth of the person subject to disposition(2) Contents and basis for intended disposition(3) The facts giving rise to the disposition(4) Time and place for the explanation(5) Other matters deemed necessary by the Association
2. The Written Notice of Explanation set forth in the preceding paragraph shall contain the following matters.
(1) The Financial Instruments Intermediary Service Providers must submit the Written Explanation set
forth in Paragraph 1 of the following article to the Association through the Target Member within 14
days from the day on which the Written Notice of Explanation reaches such providers.
(2) The Target Member and the Person Subject to Disposition (meaning the Sales Representative of the
Financial Instruments Intermediary Service Providers who is the subject of the Sales Representative
Disposition; the same shall apply hereinafter) shall be entitled to request the Association to have accessto an accident report (a report based on the provisions of Article 7 of the Rules on Service Work of
Employees, etc. Engaged in Financial Instruments Intermediary Service Providers (hereinafter referredto as the “Service Rules”)) and documents attached thereto pertaining to the case relating to theprocedures for explanation before the conclusion of the procedures for explanation.
3. The Target Member who has received the Written Notice of Explanation set forth in Paragraph 1 must
immediately notify the Financial Instruments Intermediary Service Providers of the contents thereof andhave the Financial Instruments Intermediary Service Providers notify the person subject to disposition of thecontents thereof.
4. If, even after the expiration of 30 days from the date of dispatch of the Written Notice of Explanation in
Paragraph 1 by the Association, it cannot be confirmed that such Written Notice of Explanation has reached
the Target Member in Paragraph 1, such Written Notice of Explanation shall be deemed to have reached suchTarget Member on the expiration of 30 days.
5. If the Written Notice of Explanation sent by the Association does not reach the Target Member in Paragraph1, such Target Member may request the Association to deliver a copy of such Written Notice of Explanation
until the expiration of 30 days from the date of dispatch of such Written Notice of Explanation by the
Association.
6. In response to the request in the preceding paragraph, the Association shall promptly deliver to the Target
Member in the preceding paragraph a copy of the Written Notice of Explanation in the preceding paragraph.
In this case, at the time of such delivery, such Written Notice of Explanation shall be deemed to have reachedsaid Target Member.
7. When the Association gives notice as provided in Paragraph 1, it shall also give notice to the Person Subject
to Disposition in the same manner. However, this shall not apply to cases where the address or residence of
the Person Subject to Disposition is unknown or where there is any other unavoidable reason.

Article 26

Submission of the Written Explanation and Declaration of Opinion

1. The Financial Instruments Intermediary Service Providers and the Person Subject to Disposition who havereceived the Written Notice of Explanation set forth in Paragraph 1 of the preceding article must submit to
the Association through the Target Member a document stating the following matters (hereinafter in thisarticle and Article 30 referred to as the “Written Explanation”) within 14 days from the day on which such
Written Notice of Explanation reached such Target Member.
(1) Approval or disapproval of the matters listed in Items 1 and 2 of Paragraph 1 of the preceding article(2) Assertions regarding the matters listed in Paragraph 1, Items 1 and 2 of the preceding article
2. If a Written Notice of Explanation dispatched by the Association fails to reach the Target Member inParagraph 1 of the preceding article, such Target Member may submit the Written Explanation in thepreceding paragraph without receiving such Written Notice of Explanation.
3. At the time of making an explanation, such Target Member may submit a Written Explanation as set forth inParagraph 1, as well as verbally stating facts or opinions and submitting evidential documents or articles at
the time of explanation.

Article 27

Notice of Hearing

1. If the Chairperson conducts a hearing, he/she shall notify the Financial Instruments Intermediary Service

Providers through the Target Member of the following matters in writing (hereinafter referred to as the“Notice of Hearing”).
(1) Name and date of birth of the person subject to disposition(2) Contents and grounds for anticipated adverse disposition(3) Facts causing adverse disposition(4) Time and place of the hearing(5) Name and address of the organization in charge of administrative affairs relating to the hearing(6) Other matters deemed necessary by the Association
2. The Notice of Hearing in the preceding paragraph shall contain the following matters.
(1) The Financial Instruments Intermediary Service Providers and the Person Subject to Disposition areentitled to appear on the date of the hearing to state their opinions and to produce any documentary
evidence or articles, or to produce written statements and documentary evidence, etc. in lieu ofappearing on the date of the hearing.
(2) The Target Member and the Person Subject to Disposition (meaning a Sales Representative of a
Financial Instruments Intermediary Service Provider who is the subject of a Sales Representative
Disposition; the same shall apply hereinafter) shall be entitled to request the Association to have accessto an accident report (a report based on the provisions of Article 7 of the Service Rules) and attacheddocuments, etc. relating to the case relating to the procedures for the hearing until the completion of theprocedures for the hearing.
3. The Target Member who has received the Notice of Hearing in Paragraph 1 must immediately notify the
Financial Instruments Intermediary Service Providers of the contents thereof and have the Financial
Instruments Intermediary Service Providers notify the Person Subject to Disposition of the contents thereof.
4. If at any time after the expiration of 30 days from the date of dispatch by the Association of the Notice ofHearing in Paragraph 1, such Notice of Hearing is not confirmed to have reached the Target Member inParagraph 1, such Notice of Hearing shall be deemed to have reached such Target Member on the expirationof 30 days.
5. If the Notice of Hearing sent by the Association does not reach the Target Member in Paragraph 1, suchTarget Member may request the Association to deliver a copy of such Notice of Hearing until the expirationof 30 days from the date of dispatch of such Notice of Hearing by the Association.
6. In response to the request in the preceding paragraph, the Association shall promptly deliver to the Target
Member in the preceding paragraph a copy of the Notice of Hearing in the preceding paragraph. In this case,at the time of such delivery, such Notice of Hearing shall be deemed to have reached such Target Member.
7. When the Association gives notice as provided in Paragraph 1, it shall also give notice to the Person Subject
to Disposition in the same manner. However, this shall not apply to cases where the address or residence of
the Person Subject to Disposition is unknown or where there is any other unavoidable reason.

Article 28

Submission of Written Statement, etc. and Statement of Opinion

1. The Financial Instruments Intermediary Service Provider and the Person Subject to Disposition who havereceived the Notice of Hearing in Paragraph 1 of the preceding article must appear on the date of the hearingand state their opinions, and must submit documentary evidence or articles, or must submit a written
statement and documentary evidence, etc. stating the following matters in lieu of appearing on the date of thehearing.
(1) Approval or disapproval of the matters listed in Items 1 and 2 of Paragraph 1 of the preceding article(2) Assertions regarding the matters listed in Paragraph 1, Items 1 and 2 of the preceding article
2. If the Notice of Hearing dispatched by the Association does not reach the Target Member in Paragraph 1 ofthe preceding article, such Target Member may submit the written statement in the preceding paragraphwithout receiving such Notice of Hearing.
3. Such Target Member may, at the time of the hearing, make oral statements of fact or opinion and produce
documentary or material evidence in addition to the written statement set forth in Paragraph 1.

Article 29

Access to Documents, etc.

1. The Target Member and the Person Subject to Disposition may request the Association to have access to theaccident report and attached documents, etc. prescribed in Article 7 of the Service Rules until the proceduresfor explanation, etc. are completed. In this case, the Association may not refuse to allow such access except
when such access is likely to harm the interests of a third party or when there is any other justifiable reason.
2. The Association may designate the time, date and place for access in the preceding paragraph.

Article 30

Termination of Procedures for Explanation in Case of Failure to Submit the Written Explanation

If all of the Financial Instruments Intermediary Service Providers and Person(s) subject to the Disposition who
have received the Written Notice of Explanation set forth in Article 25, Paragraph 1 fail to submit the Written
Explanation within the time limit set forth in Article 26, Paragraph 1 without justifiable grounds or special
circumstances, the procedures for explanation may be terminated.

Article 31

Termination of Hearing in Case of Non-Appearance, etc.

The hearing may be terminated in the event that all or part of the Financial Instruments Intermediary Service
Providers and Person(s) subject to the Disposition who have received the Notice of Hearing under Article 27,
Paragraph 1 fails to appear on the date for the hearing and fails to submit the written statement or documentary
evidence, etc. under Article 27, Paragraph 1.

Chapter 6:

Notice of Disposition to Sales Representatives

Article 32

Disposition Notice

1. The Chairperson shall notify the Financial Instruments Intermediary Service Providers through the Target
Member of the following matters in writing (hereinafter referred to as the “Disposition Notice” in this article
and the following article) in the event of disposition of the Person Subject to Disposition under Article 7 of
the Rules for Registration of Sales Representatives.
(1) Name and date of birth of the person subject to disposition(2) Contents and basis for disposition

(3) Date of disposition(4) The facts giving rise to the disposition(5) Other matters deemed necessary by the Association
2. The Disposition Notice in the preceding paragraph shall contain the following matters.
(1) The Target Member and the Person Subject to Disposition may appeal on the contents of the disposition
to the Appeal Examination Committee within 10 days from the date of arrival of the Disposition Notice.
(2) The Target Member and the Person Subject to Disposition must file an appeal in the preceding item bysubmitting the Written Appeal in Paragraph 1 of the following article.
(3) To file an appeal with the Financial Services Agency against any disposition under Article 64-5 of the
Financial Instruments and Exchange Act as applied mutatis mutandis pursuant to Article 66-25 of saidAct.
3. The Target Member who has received the Disposition Notice in Paragraph 1 must immediately notify the
Financial Instruments Intermediary Service Providers of the contents thereof and have the Financial
Instruments Intermediary Service Providers notify the Person Subject to Disposition of the contents thereof.
4. If, even after the expiration of 30 days from the date of dispatch of the Disposition Notice in Paragraph 1 by
the Association, it cannot be confirmed that such Disposition Notice has reached the Target Member inParagraph 1, such Disposition Notice shall be deemed to have reached such Target Member on the expirationof such 30 days.
5. If the Disposition Notice sent by the Association does not reach the Target Member in Paragraph 1, suchTarget Member may request the Association to deliver a copy of such Disposition Notice until the expirationof 30 days from the date of dispatch of such Disposition Notice by the Association.
6. In response to the request in the preceding paragraph, the Association shall immediately deliver a copy of the
Disposition Notice in the preceding paragraph to the Target Member in the preceding paragraph. In this case,it shall be deemed that the Disposition Notice has reached the Target Member at the time of delivery.

Chapter 7:

Procedure for Appeal against the Disposition of Sales Representatives

Article 33

Appeal

1. Any appeal shall be made by the Target Member who has received the Disposition Notice in Paragraph 1 ofthe preceding article (hereinafter referred to as the “Target Member for Appeal”) or the Person Subject to
Disposition submitting to the Appeal Examination Committee a document stating the following matters(hereinafter referred to as the “Written Appeal” in this article and Article 41).
(1) Trade name and address of the Target Member for Appeal(2) Name and date of birth of the person subject to disposition(3) Details of the disposition and date entered in the Disposition Notice(4) Date of receipt of the Disposition Notice(5) The purpose and reason for the appeal against the disposition(6) Date of appeal
2. In the event that the Disposition Notice sent by the Association does not reach the Target Member in

Paragraph 1 of the preceding article, such Target Member and the Person Subject to Disposition may submit
the Written Appeal as per the preceding paragraph without receiving such Disposition Notice.
3. Except in the case prescribed in the preceding paragraph, a copy of the Disposition Notice must be attachedto the Written Appeal.
4. The Written Appeal may be accompanied by documentary evidence, etc. pertaining to the reasons set forth inParagraph 1, Item 5.
5. Any appeal shall not preclude the effectiveness of any disposition pertaining to such appeal by the
Association.

Article 34

Appeal Examination

1. The Appeal Examination Committee shall examine whether there is any reason for appeal under thepreceding article (hereinafter referred to as “Appeal Examination” in this article through Article 36) andshall notify the Financial Instruments Intermediary Service Providers of the result thereof through the Target
Member for Appeal.
2. The Target Member for Appeal, who has received notice of the results of the Appeal Examination under thepreceding paragraph, must immediately notify the Financial Instruments Intermediary Service Providers of
the contents thereof and have the Financial Instruments Intermediary Service Providers notify the Person
Subject to Disposition of the contents thereof.
3. The Target Member for Appeal and the Person Subject to Disposition may not appeal against the results of
the Appeal Examination.

Article 35

Notice of Results of Appeal Examination

1. In the event that the Appeal is deemed to have reasonable grounds in the Appeal Examination in Paragraph 1of the preceding article, a notice shall be given in writing stating the following matters.
(1) Trade name and address of the Target Member for Appeal(2) Name and date of birth of the person subject to disposition(3) The fact that the appeal was found to be reasonable and the reasons therefor and the date of the decision(4) The fact that the disposition case relating to the Appeal Examination (hereinafter referred to as “Appeal
Case” in this article through Article 38 and Articles 46 through 49) shall be re-examined
2. In the event that no grounds are found in an Appeal Examination, notification shall be made in writing,stating the following matters.
(1) Trade name and address of the Target Member for Appeal(2) Name and date of birth of the person subject to disposition(3) The fact that the appeal was found to be groundless and the reasons therefor and the date of the decision
3. The notice in the preceding two paragraphs shall state that no appeal may be filed against the results of the
Appeal Examination.

Article 36

Consultation with the Disciplinary Committee

If the Appeal Examination Committee finds the appeal to be reasonable as a result of the Appeal Examination

under Article 34, Paragraph 1, the Chairperson shall once again consult with the Disciplinary Committee
regarding the Appeal Case and seek its opinion.

Article 37

Re-examination by the Disciplinary Committee, etc.

1. The Disciplinary Committee shall deliberate the contents of the Appeal Case (including the details, reasons,etc. as well as the propriety of disposition of the Appeal Case) requested by the Chairperson (hereinafterreferred to as “Re-examination” in this article through Article 39, Article 45 and Article 46).
2. The provisions of Article 4, Paragraph 2 and Paragraph 3 of the Rules for Disposition, etc. shall apply
mutatis mutandis when the Disciplinary Committee conducts Re-examination in accordance with theprovisions of the preceding paragraph. In this case, the term “deliberation” in Article 4, Paragraph 2 andParagraph 3 shall be deemed to be replaced with “Re-examination” and the term “members pertaining tosuch case” in Article 4, Paragraph 3 shall be deemed to be replaced with “Target Member for Appeal.”
3. If it is determined that the disposition of the Appeal Case is appropriate as a result of Re-examination under
the provisions of Paragraph 1, the Disciplinary Committee shall report to the Chairperson in writing to that
effect and the reasons therefor, and shall also notify the Financial Instruments Intermediary Service
Providers and the Person Subject to Disposition through the Target Member for Appeal.
4. If it is determined that the disposition of the Appeal Case is inappropriate and it is appropriate to change thedisposition as a result of Re-examination under the provisions of Paragraph 1, the Disciplinary Committee
shall report in writing to the Chairperson the type and extent of as well as the reasons for the disposition to bechanged and shall also notify the Financial Instruments Intermediary Service Providers and the Person
Subject to Disposition through the Target Member for Appeal.
5. If it is determined that the disposition of the Appeal Case is inappropriate and it is appropriate to rescind it asa result of Re-examination under the provisions of Paragraph 1, the Disciplinary Committee shall inform the
Chairperson in writing of the fact that it should be rescinded and the reasons therefor, and shall also notify
the Financial Instruments Intermediary Service Providers and the Person Subject to Disposition regarding
the Appeal Case through the Target Member for Appeal.
6. The Target Member for Appeal and the Person Subject to Disposition may not appeal against the result of theRe-examination by the Disciplinary Committee.

Article 38

Opportunity for Re-explanation

1. If the Chairperson intends to submit a proposal to the Board of Directors, based on the result of theRe-examination by the Disciplinary Committee, a change or revocation of the disposition of the Appeal Case,
the Chairperson shall give the said Target Member for Appeal and the Person Subject to Disposition theopportunity for re-explanation.
2. The presiding officer of the opportunity for re-explanation shall be appointed by the Chairperson fromamong the officers and employees of the Association.

Article 39

Procedure for Re-explanation

1. When carrying out the procedure for re-explanation provided in the preceding article, the Chairperson shallgive the Written Notice of Re-explanation stating the following matters to the Target Member for Appeal
and the Person Subject to Disposition pertaining to such procedure for re-explanation.
(1) To the effect that the procedures for re-explanation as prescribed in the preceding article shall be taken
during Re-examination(2) Date of disposition for Re-examination(3) Date of decision under Article 35, Paragraph 1, Item 3(4) Date and place of re-explanation(5) Other matters deemed necessary by the Association
2. The Representative of the Target Member for Appeal or the agent appointed by such representative(hereinafter collectively referred to as the “Re-defending Party” in this article and Articles 41 through 43)
must attend on the date for re-defense.

Article 40

Access to Documents, etc.

1. The Target Member for Appeal and the Person Subject to Disposition may request the Association to haveaccess to the accident report and attached documents, etc. prescribed in Article 7 of the Service Rules until
the completion of the procedures for re-explanation. In this case, the Association may not refuse to allow
such access except when such access is likely to harm the interests of a third party or when there is any otherjustifiable reason.
2. The Association may designate the time, date and place for access in the preceding paragraph.

Article 41

Method of Proceedings on Date for Re-explanation

1. Any person who is deemed by the Chairperson to have a special interest with the Target Member for Appeal
over the procedure for re-explanation may not preside over the procedure for re-explanation.
2. At the beginning of the first day for re-explanation, the presiding official shall explain to the persons present
on the day for re-explanation the contents of the disposition, the provisions of the Rules on which thedisposition is based, the date of disposition and the facts giving rise to such disposition.
3. The Re-defending Party may attend the meeting on the date for re-explanation, submit the Written
Re-explanation and documentary evidence, etc., state their opinion and ask questions to the staff of the
Association with the permission of the presiding official.
4. The Re-defending Party may have an assistant attend on the date for re-explanation with the permission of
the presiding official.
5. The presiding official may, when he/she finds it necessary on the date for re-explanation, ask questions to theRe-defending Party, request that he/she state his/her opinion or submit documentary evidence, etc., or request
an explanation from the staff of the Association.
6. The presiding official may present the Written Appeal and documentary evidence, etc. to the Re-defending
Party who is present on the date for re-explanation.
7. The proceedings on the date for re-explanation shall not be open to the public except when the Association
deems it appropriate to do so.
8. If, as a result of the proceedings on the date for re-explanation, the presiding official deems it necessary tocontinue the date for re-explanation, he/she may designate a further date for continuation.
9. In cases referred to in the preceding paragraph, the Target Member for Appeal and the Person Subject to
Disposition must be notified in advance in writing of the date of continuation and place. However, in cases
where the Re-defending Party is present on the date for re-explanation, it shall be sufficient to give notice
thereof to said person involved in the re-explanation on the date for re-explanation.

Article 42

Termination of Procedures for Re-Defense in the Absence of the Re-defending Party

If any member of the Re-defending Party fails to attend the meeting on the date for re-explanation without any
justifiable reason, the presiding official may conclude the procedures for re-explanation without giving theRe-defending Party an opportunity to express an opinion again and submit the Written Re-explanation andwritten evidence, etc.

Article 43

Record and Report of Re-explanation

1. When a date for re-explanation is held, the presiding official must prepare a record describing the progress ofthe procedure for re-explanation on each date and must have the person designated as the signatory among
the presiding officials sign and seal the record and keep it on file.
2. The presiding official shall, promptly after the termination of the procedure for re-explanation, prepare areport stating his/her opinion as to whether or not the Re-defending Party has any reason for their assertion of
the facts giving rise to the disposition, and shall report the same to the Association together with the record in
Paragraph 1.
3. The Target Member for Appeal and the Person Subject to Disposition may request inspection of the record in
Paragraph 1.

Article 44

Resumption of Proceedings for Re-explanation

If the Chairperson deems it necessary to do so in consideration of circumstances arising after the termination of
the procedures for re-explanation, he/she may order the presiding official to resume the procedures forre-explanation by returning the report submitted pursuant to the provisions of Paragraph 2 of the precedingarticle. The provisions of the main clause of Article 38, Paragraph 9 shall apply mutatis mutandis in this case.

Article 45

Notice of Results of Re-examination

1. When giving notice of the results of Re-examination as stipulated in Article 37, Paragraph 1, such notice
shall be given in writing stating the following matters.
(1) Trade name and address of the Target Member for Appeal(2) Name and date of birth of the person subject to disposition(3) Results and reasons for Re-examination and date of decision thereof
2. In the notice in the preceding paragraph, it shall be stated that no appeal may be filed against the result of
Re-examination.

Article 46

Submission of the proposal to the Board of Directors

If the Chairperson deems it appropriate to change or rescind the disposition of an Appeal Case throughRe-examination by the Disciplinary Committee as well as the procedure for re-explanation from the Target
Member for Appeal and the Person Subject to Disposition set forth in the preceding paragraph, the Chairperson
shall submit a proposal to the Board of Directors.

Article 47.

Notice of Disposition, etc.

The Chairperson shall notify in writing any decision by the Board of Directors to change the disposition of an
Appeal Case the Target Member for Appeal and the Person Subject to Disposition of the kind and extent of theamended disposition and the facts and reasoning pertaining to the disposition. Also, should the General
Meeting or the Board of Directors decide to cancel the disposition of the Appeal Case, the Chairperson shallnotify in writing the Target Member for Appeal and the Person Subject to Disposition of the cancellation of thedisposition and the reason therefor.

Article 48.

Report to the Disciplinary Committee, etc.

The Chairperson shall report the contents of the resolution to the Disciplinary Committee and the Appeal
Examination Committee if the Chairperson submit a proposal to the Board of Directors to change or revoke thedisposition of the Appeal Case stipulated in the preceding paragraph.

Article 49.

Announcement of Disposition

In the event of changes or revocation of the disposition of an Appeal Case under the provisions of Article 47,
the Chairperson shall discontinue the announcement of Article 19 of the Rules for Disposition, etc. of the
Appeal Case.

Supplementary Provision
These By-laws shall come into effect on July 15, 2021.

Rules for Electing Officer Candidates
Established on September 19, 2008
Revised on December 20, 2012
Revised on April 18, 2019
Revised on May 20, 2021

Chapter 1:
Article 1

General Provisions
Purpose

These Rules set forth the necessary matters for selecting candidates in member elections for Board of Directors
and Auditor positions (hereinafter referred to as “Officers”) for the Investment Trusts Association (hereinafterreferred to as the “Association”).

Chapter 2:

Member Elections

Article 2

Conducting Member Elections

1. The Association shall hold member elections for candidates for officer positions (hereinafter referred to as“Officer Candidates” ) from Officer Candidates in the Association within Full Members (meaning Full
Members defined in Article 7, Paragraph 1, Item 1 of the Articles of Incorporation; the same shall apply
hereinafter. ) However, when Officer Candidates are selected for reasons other than the expiration of theirterms of office and the Board of Directors approves, Officer Candidates may be selected by a method otherthan member elections.
2. The fixed number of Officer Candidates available for member elections in the preceding paragraph shall bedecided by the Board of Directors.

Article 3

Voting Rights for Member Elections

Full Members shall have the right to vote in member elections, with one vote for each Full Member. However,any Full Member whose membership is suspended or restricted shall not be entitled to vote during the period ofsuspension or restriction.

Article 4

Member Election Method

Member elections shall be conducted via secret ballots with plural entry for Officer Candidates who have filed
their candidacy under the provisions of Article 7. The same shall apply to Officer Candidates who have filed
their candidacy under Article 9, Paragraph 1.

Article 5

Determination and Notification of Member Election Dates, etc.

1. When a member election is to be held, the Association shall use a resolution of the Board of Directors todecide the date and time at which the member election voting is to be held, the place at which the member
election is to be held, and other necessary matters concerning the member election.
2. The Association shall notify Full Members of the date, time, and location of the vote, the fixed number ofOfficer Candidates in the election, and other necessary matters for the member election as decided by the
Board of Directors pursuant to the preceding paragraph at least 15 days prior to the date of the member
election (hereinafter referred to as the “Member Election Date”).

Article 6

Election Observers

1. When conducting a member election by vote, the Chairperson shall elect two or more election observers
from among the Full Member Representative possessing voting rights for each such member election, withthe consent of the Board of Directors. However, under special circumstances, officers and employees of the
Association may be appointed as election observers.
2. Election observers shall oversee matters involving voting and ballot counting.
3. Election observers are not eligible to be Officer Candidates described in Article 7.

Article 7

Notification of Candidacy

1. A person wishing to be an Officer Candidate (excluding those deemed to have submitted a candidacy
submission form under the provisions of Paragraph 2) shall file a candidacy submission form in the
appended form to the Association between the notification date based on the provisions of Article 5,
Paragraph 2 and no later than 10 days before the Member Election Date (or the next business day if such day
falls on a holiday. Hereinafter referred to as the “Candidate Deadline”).
2. Officer Candidates recommended to the Chairperson by the Officer Nomination Committee shall be deemed
to have submitted a candidacy submission form to the Association for said member election.
3. Those eligible to be Officer Candidates shall be a Full Member Representative.

Article 8

Notifications of Candidate Names, etc.

The Association shall notify Full Members of the names of Officer Candidates who have submitted candidacies
under the preceding article (including those deemed to have submitted a candidacy submission form describedin Paragraph 2 in the preceding article; the same shall apply hereinafter in this article) and other importantmatters relating to the member election without delay after the Candidate Deadline.
Additionally, if the number of Officer Candidates who have submitted their candidacy does not exceed thenumber of officers set by the Board of Directors for said member election (hereinafter referred to as the “Fixed
Number of Officers”), the Full Members shall also be notified that the candidates will be elected without voting
as set forth in Article 12.

Article 9

Submission and Notification of Supplementary Candidates

1. If the number of Officer Candidates who have submitted their candidacies by the Candidate Deadline is lessthan the Fixed Number of Officers for said member election or decreases below the Fixed Number after the
Candidate Deadline, any person wishing to be an Officer may become an Officer Candidate for said member
election by submitting a candidacy submission form to the Association between the day the Association
notifies members as set forth in the preceding article and five days before the Member Election Date (if suchday falls under a holiday, it shall be the next business day; hereinafter referred to as the “Supplementary

Candidate Deadline” ).
2. In the case of submission of candidacy under the preceding paragraph, the Association shall notify Full
Members of the names of Officer Candidates who have submitted their candidacy after the Supplementary
Candidate Deadline without delay.

Article 10

Limitations on Candidacies

A representative of a Full Member whose member rights have been suspended or restricted may not be or
become an Officer Candidate during the period of the suspension or restriction.

Article 11

Withdrawal of Candidacy

1. Any person who has filed a candidacy submission form for an Officer Candidate under the provisions ofArticle 7, Paragraph 1 and subsequently decides to withdraw his/her candidacy must notify the Association
to that effect by the Supplementary Candidate Deadline.
2. When the Association has been notified of a withdrawal of candidacy as set forth in the preceding paragraph,
the Association shall notify Full Members of the names of the candidates who have withdrawn theircandidacy without delay after the Supplementary Candidate Deadline.

Article 12

Election without Vote

1. Notwithstanding the provisions of Article 2, voting shall not occur if the number of Officer Candidates who
have submitted candidacies under Article 7, Paragraphs 1 and 2 is less than the Fixed Number of Officers in
said member election at the expiry of the Candidate Deadline.
2. In the case of the preceding paragraph, the Chairperson shall declare these candidates elected.
3. The provisions of the preceding two paragraphs shall apply mutatis mutandis to supplementary candidates
described in Article 9. In this case, the phrase “the number of Officer Candidates who have submitted
candidacies under Article 7, Paragraphs 1 and 2” in Paragraph 1 shall be deemed to be replaced with “thenumber of Officer Candidates who have submitted candidacies under Article 9, Paragraph 1”; the phrase“Fixed Number of Officers” shall be deemed to be replaced with “Fixed Number of Officers (the number
determined by deducting those already elected by the Chairperson.)”; and the phrase “Candidate Deadline”
shall be deemed to be replaced with “Supplementary Candidate Deadline.”
4. When determining the elected candidates, the Chairperson shall notify the Board of Directors to that effect.

Article 13

Voting

1. Voting shall be made by representatives of Full Members with voting rights (hereinafter referred to as“Member Representatives”) at the designated voting location (hereinafter referred to as the “DesignatedVoting Location”) on the Member Election Date.
2. Notwithstanding the provisions of the preceding paragraph, Member Representatives may vote in any of thefollowing ways:(1) Having an officer and employees of said Full Member designated by the Member Representative(hereinafter the “Agent”) cast a vote at the Designated Voting Location on the Member Election Date(2) Voting by mail, etc. between the day following the Candidate Deadline and the day before the Member
Election Date
3. When voting via the method described in Item 1 of the preceding paragraph, the Agent must submit
documentation showing that he/she has been delegated by the Member Representative to either the election
observers or a person specified by the election observers.

Article 14

Count

1. Ballots shall be counted without delay after voting has ended.
2. The election observers shall notify the Association of the election results without delay.

Article 15

Voting by Symbol

Voting shall be carried out in such a manner that the symbol ○ is entered in the designated column of the voting
form listing the names of the Officer Candidates and the number of ○ symbols shall be the same as the fixed
number of Officers set in advance by the Board of Directors.

Article 16

Invalidity of All or Part of a Vote

1. All votes cast shall be void if any of the following apply:(1) The prescribed ballot is not used
(2) The number of ○ symbols exceeds the fixed number of Officers available for election as set in advance by
the Board of Directors
2. Only the part of the vote of the Member Representative in question shall be void if one of the following items
applies to a part of a vote:(1) A part containing marks, etc. that cannot be distinguished as a ○ symbol(2) A part where it is difficult to identify a ○ symbol

Article 17

Decisions on Doubts

The election observers shall decide in the event of any doubt in voting.

Article 18

Determination of Winners

1. When Member Representatives vote in accordance with the provisions in Article 13, the Chairperson shalldetermine the final order of candidates by those who received the most votes and select candidates
sequentially until the Fixed Number of Officers has been satisfied.
2. A lottery shall be used to determine the order of candidates who received an equal number of votes based on
the provisions of the preceding paragraph.
3. When the candidates have been selected based on the provisions of Paragraph 1, the Chairperson shall report
the results to the Board of Directors without delay.

Article 19

Election Records

1. When voting is held, an election record containing the voting procedures and results shall be prepared andsigned by the election observers.
2. The Association shall attach the ballots for the member election, the candidacy submission forms, and any
withdrawal of candidacy forms to the election record and keep them until the end of the term for officer
candidates elected in that member election.

Article 20

Re-election

1. If the number of elected candidates is less than the Fixed Number of Officers, re-elections shall be conducted
for the remaining number of Officer positions without delay.
2. The provisions of Article 5 through the preceding article shall apply mutatis mutandis to re-elections.

Article 21

OthersAny matters relating to member elections not provided for by these Rules shall be determined by the Board of
Directors.

Supplementary Provision
These Rules shall come into effect on October 1, 2008.

Supplementary ProvisionThis amendment shall come into effect on January 4, 2013.

Supplementary ProvisionThis amendment shall come into effect on May 1, 2019.

Supplementary Provisions
This amendment shall come into effect on June 1, 2021.
* The amended provisions are as follows:- Appended form mentioned in Article 7(Appended Form)
Application Date YYYY/MM/DD

The Investment Trusts Association, Japan
To: Chairperson(Name of Candidate)

Seal(Trade Name or Name)(Title)Notification of Candidacy for an Officer of the Investment Trusts Association

I hereby submit my candidacy for the following Association Officer position with regards to the member
election for the next Officer term from the member notification dated YYYY/MM/DD.

Notice○ Association Officer position for which I am running(Please circle one)

Director

AuditorRules on Member Investigations
Established on July 18, 2008
Revised on September 19, 2008
Revised on March 19, 2009
Revised on December 20, 2012
Revised on March 13, 2019
Revised on May 20, 2021

Article 1

Purpose

These Rules set forth the necessary matters for conducting member investigations in accordance with Article
10 of the Operational Rules.

Article 2Investigator

Member investigations shall be conducted by an investigator appointed by the Chairperson from among
employees in the Association or another individual engaged in Association business.

Article 3

Member Investigation Policies and Plans

1. The Association shall prepare member investigation policies and plans for that year’s member investigation
as described in the By-laws and make them known to the members (Full Members as stipulated in Article 7,
Paragraph 1, Item 1 and Supporting Members as stipulated in Item 2 of the same paragraph).
2. Member investigations shall be conducted based on the member investigation policies and plans in thepreceding paragraph.
However, when deemed necessary, any matters not provided for in the member investigation policies andplans shall be handled as needed.

Article 4

Member Investigation Types

The types of member investigations are as follows:(1) General investigation
An investigation of the overall business operations of a Full Member (meaning a Full Member as
defined in Article 7, Paragraph 1, Item 1 of the Articles of Incorporation; the same shall apply
hereinafter ) that comprehensively accounts for an array of information, the results of previous
investigations, the investigation period, and other matters.
(2) Special investigation
An investigation of all or part of the business operations of a Full Member in accordance with themethods set forth in the By-laws, as deemed necessary and appropriate

Article 5

Advance Notice

When a member investigation is conducted, the Full Member shall be provided with an advance explanation of
the significant matters, the time and date of the investigation, the method thereof, the names of the investigators,
and other matters as described in the By-laws.

However, such notice may be withheld when deemed necessary by the Chairperson.

Article 6

Change or Suspension

After notice in the preceding article is provided or the commencement of the member investigation, themember investigation may be changed or suspended if conducting it has been deemed difficult due tounavoidable circumstances such as a natural disaster.

Article 7

Authority of Investigators

Investigators may, through the methods set forth in the By-laws, request a Full Member to present and allow
inspections of books, documents and articles of value relating to matters pertaining to the investigation, submit
materials, or explain the facts thereof.

Article 8

Duties of Investigators

Investigators shall observe the matters listed in the following items:(1) Conduct investigations efficiently and effectively, bearing in mind that the purpose of the investigation
is to achieve the goals of the Association, which contributes to the sound development of investment
management businesses, etc. and the protection of investors(2) When conducting an investigation, always endeavor to maintain dignity and credibility and not divulge
any secrets obtained in the course of their member investigation duties(3) When conducting an investigation, always maintain a well-balanced and calm attitude and endeavor tocertify facts and express opinions fairly and efficiently(4) Investigators shall properly understand laws, rules, etc. relating to investment trusts, endeavor tounderstand market trends, and acquire new financial products, trading methods, etc.

Article 9

Presentation of Investigator’s Certificate

At the start of an on-the-spot investigation, investigators shall present the Full Member with an Investigator’sCertificate in the form set forth in the By-laws.

Article 10

Reporting Results of On-site investigation, etc.

When an investigator has completed an on-the-spot investigation, written investigation, hearing, or any otherinvestigation, the investigator must promptly report the results thereof to the Chairperson in the manner set
forth in the By-laws.

Article 11

Notice of End to an Investigation

Upon completion of a member investigation, the Association will notify the Full Member of the results thereofin the manner set forth in the By-laws.

Article 12

Reports on Handling by Full Member

When a Full Member is requested by the Association to submit a report on handling based on the results of amember investigation, the Full Member must submit the report on the handling by the date designated by the
Association in the form specified in the By-laws using the “Electronic Notification and Storage System for
Notifications from Association Members.

Article 13

By-laws

Any matters necessary for enforcement of these Rules shall be stipulated in the By-laws.

Article 14

Delegation to Competent Committee

1. The Board of Directors shall be entitled to delegate to the Self-regulation Committee the authority to amend
any By-laws relating to these Rules.
2. The Self-regulation Committee shall promptly report to the Board of Directors any decision(s) made (limited
to those deemed necessary by the Board of Directors) concerning any delegated matters.

Supplementary Provision
These Rules shall come into effect on July 18, 2008.

Supplementary ProvisionThis amendment shall come into effect on October 1, 2008.

Supplementary ProvisionThis amendment shall come into effect on March 19, 2009.

Supplementary ProvisionThis amendment shall come into effect on January 4, 2013.

Supplementary Provisions
This amendment shall come into effect on April 1, 2019.
* The amended provisions are as follows:
Article 2

Supplementary Provisions
This amendment shall come into effect on June 1, 2021.
* The amended provisions are as follows:
Article 12By-laws on Rules on Member Investigations
Established on July 18, 2008
Revised on September 19, 2008
Revised on December 20, 2012
Revised on April 18, 2019
Revised on May 20, 2021
Revised on November 18, 2021

Article 1

Purpose

These By-laws provide for matters necessary for the enforcement of the Rules on Member Investigations(hereinafter referred to as the “Rules”).

Article 2

Member Investigation Policies and Plans

The member investigation policies and plans to be set forth in the By-laws as prescribed in Article 3, Paragraph
1 of the Rules shall include the following details.
(1) Basic concept(2) Implementation policy(3) Priority items and investigation items(4) Investigation plan(5) Other necessary matters

Article 3

Types of Special Investigation

The special investigations to be provided for in the By-laws as prescribed in Article 4, Item 2 of the Rules shallbe as follows.
(1) Partial investigation
Partial investigations to be conducted as necessary and appropriate to determine the status ofcompliance with laws, regulations, rules, etc. and the status of compliance with the fair and equitableprinciples of transactions (including the status of business operations such as asset management).
(2) Follow-up investigation
Investigations on the status of implementation of improvements regarding matters pointed out anddispositions in investigations by the Association and inspections by administrative organizations, etc.
(3) Flexible/Continuous investigation
Investigation to be made on new Full Members for which it is deemed to be especially necessary(4) Joint investigation
Investigation conducted jointly with other self-regulatory organizations at the same time

Article 4

Advance Notice

1. The matters for which advance notice is to be given as stipulated in Article 5 of the Rules shall be as follows:(1) Date and time of investigation

(2) Type of investigation(3) Method of investigation(4) The target period of investigation(5) Priority items(6) Name of the investigator(7) Other necessary matters
2. When going on-site to conduct an investigation (hereinafter referred to as an “On-site Investigation”), theinvestigator shall notify the representative of the Full Member of the commencement date of the On-site
Investigation approximately 3 weeks in advance, as a general rule.

Article 5

Explanation of Significant Matters

The matters to be explained in the By-laws provided in Article 5 of the Rules shall be as follows:(1) Authority and purpose of member investigations(2) Request for cooperation for member investigations(3) Outline of the member investigation monitor(4) Outline of the opinion reporting system(5) Other necessary matters

Article 6

Points to Consider When Requesting Documents, etc.

The methods to be specified in the By-laws as prescribed in Article 7 of the Rules shall be as follows:
When making a request, the requester shall explain the method of submission, content to be included, etc. of the
documents, etc. and shall request materials, etc. by indicating the time limit for submission. In this case, theutilization of existing documents, etc. shall be prioritized, with consideration to the clerical work load, etc. of
the Full Member.
(1) On-site investigation
i. Method by which the Full Member is requested to submit materials in advance after advance noticeand before the start of an On-site Investigation
ii. Method by which the Full Member is requested to submit materials, etc. after starting an On-site
Investigation(2) Investigation by writing, hearing or any other method
Method in which the Full Members are asked to submit materials after advance notice

Article 7

Presentation of Investigator’s Certificate

The form to be specified in the By-laws as prescribed in Article 9 of the Rules shall be shown in Appended
Form No. 1.

Article 8

Consideration for Working Hours of the Investigation Target

When conducting an On-site Investigation, care shall be taken not to interfere with the business, etc. of the Full
Member; in principle, an On-site investigation shall be conducted during the working hours of the investigation

target. When intending to conduct an inspection during non-working hours, consent must be obtained from theinvestigation target.

Article 9

Records of Fact and Background

When conducting a member investigation, a written document shall be used as necessary to clarify the mutual
recognition of the facts, the background and the problems involved.

Article 10

Member Investigation Monitor

1. Member investigation monitoring will be conducted so as to ascertain the actual status of member
investigations by hearing the opinions of investigation targets, etc., and ensure the appropriate
implementation of investigations.
2. A member investigation monitor shall be conducted by way of hearing opinions and acceptance of opinions,and opinions shall be limited to the method and period of the member investigation and the investigation
method of the investigator.
(1) Hearing opinions
As a general rule, the implementer shall be the General Affairs Manager, or any person designated by theGeneral Affairs Manager. If deemed necessary for ensuring the appropriateness of the investigation, theimplementer shall visit the investigation target during the investigation period and hear the opinions etc. of
the responsible person.
(2) Acceptance of opinions
Opinions shall be received in writing to the Chairperson and shall be submitted to the General Affairs
Manager by e-mail or mail between the date of commencement of the investigation and after one monthfrom the date of completion of the investigation (the date of delivery of the notice of investigation results).
3. Opinions from the investigation target shall be dealt with so as to contribute to the proper operation of themember investigation.

Article 11

Critiques, etc.

At the time of completion of an on-the-spot investigation, a written investigation, a hearing or any otherinvestigation with regard to the status of business operations, etc. of a Full Member which has been ascertained
through a member investigation, the investigator shall confirm whether or not there is any difference inunderstanding of the facts which has arisen between the investigator and the investigation target.

Article 12

Opinion Reporting System

When any matter of difference of opinion is confirmed through critiques, etc. as stipulated in the preceding
Article, such a matter shall be dealt with under the following opinion reporting system for the purpose of
securing transparency and fairness in the procedure for member investigations.
(1) Submit to the Secretary-General of the Association, directly or through the chief investigator, a written
statement stating the facts and the opinion of the representative (the Applicant) of the investigation target
with respect to any confirmed differences.

(2) The period for opinion reporting shall be three days from the day the critique was received (excluding
holidays of the Association starting from the day following the date of the critique ), and may be extended
for an additional period of up to two days.
(3) The General Affairs Department shall conduct a trial on the matters for which opinions are reported, andthe results of the trial shall be reflected in the written notice of the results of the investigation.

Article 13

Report

The manner to be specified in the By-laws as prescribed in Article 10 of the Rules shall be as follows:(1) When an investigator has completed any on-the-spot investigation, a written investigation, a hearing or
any other method of investigation, the investigator shall promptly prepare a member investigation result
report summarizing matters, problems, etc. ascertained through the investigation.

Article 14

Notification of Investigation Results

The methods to be specified in the By-laws as prescribed in Article 11 of the Rules shall be as follows:(1) The results of the member investigation shall be promptly notified in writing to the representative of theinvestigation target, in the name of the Chairperson.
(2) When there are any matters to be pointed out regarding the results of investigations by means of
documents, hearings or any other methods, the above mentioned notification shall be given.

Article 15

Reports on Handling by Full Member

The form to be specified in the By-laws as prescribed in Article 12 of the Rules shall be shown in Appended
Form No. 2.

Article 16

Others

The results of the member investigation shall be compiled on a semi-annual basis and thoroughly
communicated to all members.

Supplementary Provision
These By-laws shall come into effect from July 18, 2008.

Supplementary ProvisionThis amendment shall come into effect on October 1, 2008.

Supplementary ProvisionThis amendment shall come into effect on January 4, 2013.

Supplementary ProvisionThis amendment shall come into effect on May 1, 2019.

Supplementary Provisions
This amendment shall come into effect on June 1, 2021.
* The amended provisions are as follows:- As specified in Article 15 in Appended Form No. 2

Supplementary ProvisionThis amendment shall come into effect on November 18, 2021

Appended Form No. 1

Investigator’s Certificate Form
(Surface)
Investigator’s Certificate

No.

(Photo)Investigator(
This is to certify that the above-mentioned person is an investigator of the Association.

Date (YYYY/MM/DD)

The Investment Trusts Association, JapanThe Chairperson

Seal

(B8)
(Back)
Rules on Member Investigations (Extract)

Article 8 Obligation of Investigators
Investigators shall observe the matters listed in the following items:(1) Conduct investigations efficiently and effectively, bearing in mind that the purpose of theinvestigation is to achieve the goals of the Association, which contributes to the sound developmentof investment management businesses, etc. and the protection of investors(2) When conducting an investigation, always endeavor to maintain dignity and credibility and not
divulge any secrets obtained in the course of their member investigation duties(3) When conducting an investigation, always maintain a well-balanced and calm attitude andendeavor to certify facts and express opinions fairly and efficiently(4) Investigators shall properly understand laws, rules, etc. relating to investment trusts, endeavor tounderstand market trends, and acquire new financial products, trading methods, etc.

Article 9 Presentation of Investigator’s Certificate
At the start of an on-the-spot investigation, investigators shall present the Full Member with an
Investigator’s Certificate in the form set forth in the By-laws.

Appended Form No. 2
Application Date YYYY/MM/DD

To: Chairperson, Investment Trusts Association, Japan(Trade Name or Name)(Representative) Seal

Report on Handling of Member Investigation Results

This is a report on the handling of the matters pointed out in the member investigation which was notified as of[date (YYYY/MM/DD): No. XX], based on the provisions of Article 12 of the “Rules on Member
Investigations.”

Notice1. Notification items
2. Description(1) Contents of acts

(2) Background, causes, etc. of occurrence

3. Handling status[Contact Person]

Affiliation
Title and Name
Telephone Number

[Precautions for Descriptions]
1.

When there are multiple notification items, only the items listed below “Notice” shall be included in one
table for each item.

2.

In the “Notification items” space, enter the item number and item (matter).

3.

In the “Contents of acts” space, enter the main text of the Notification items.

4.

In the “Handling status” space, enter the status of correction and recurrence prevention
measures.

5.

Related materials shall be attached with regard to the status of correction, recurrence prevention
measures, etc. in the Handling status.

Rules on Management of Investment Trusts, etc.
Established on March 19, 2004
Revised on May 25, 2004
Revised on July 16, 2004
Revised on November 19, 2004
Revised on March 18, 2005
Revised on May 24, 2006
Revised on June 19, 2006
Revised on December 15, 2006
Revised on January 19, 2007
Revised on April 20, 2007
Revised on September 21, 2007
Revised on March 21, 2008
Revised on June 20, 2008
Revised on July 18, 2008
Revised on September 19, 2008
Revised on January 16, 2009
Revised on March 19, 2009
Revised on October 14, 2010
Revised on February 17, 2011
Revised on December 20, 2012
Revised on July 17, 2014
Revised on November 20, 2014
Revised on December 18, 2014
Revised on July 16, 2015
Revised on June 13, 2018
Revised on June 10, 2020
Revised on January 21, 2021

Part 1
Article 1

General Provisions
Purpose

These Rules provide for matters necessary for the proper management of the trust property of the investment
trusts and assets of investment corporations, and other matters regarding the protection of investors.

Article 2

Definition

1. The term “Investment Trust” as used in these Rules means a trust for the principal purpose of investing thetrust property in specified assets (hereinafter referred to as “Specified Assets”) as provided for in Article 3 of
the Order for Enforcement of the Act on Investment Trusts and Investment Corporations (Cabinet Order No.
480 of 2000 (hereinafter referred to as the “Cabinet Order”)).
2. The term “Investment Corporation” as used in these Rules means a corporation for the principal purpose ofinvesting assets in Specified Assets.
3. The term “Fund of Funds” as used these Rules means Investment Trusts (excluding those whose maininvestment target is solely the beneficiary certificates of the mother investment trust (Investment Trusts
whose purpose is to have their beneficiary rights acquired by the trustees of other Investment Trusts, otherthan those Investment Trusts whose investment trust contracts (hereinafter referred to as “Contracts”)
stipulate that they are to be acquired only by Funds of Funds; the same shall apply hereinafter) that theinvestment trust company itself directs the management) for the purpose of investing in beneficiarycertificates (meaning beneficiary certificates of Investment Trusts and foreign investment trusts as defined in
Article 2, Paragraph 1, Item 10 of the Financial Instruments and Exchange Act (Act No. 25 of 1948,
hereinafter referred to as the “FIEA”); the same shall apply hereinafter) of Investment Trusts and foreign
investment trusts and investment securities (investment securities and foreign investment securities(excluding foreign investment securities that are equivalent to investment corporation bonds. The same shallapply hereinafter) prescribed in Article 2, Paragraph 1, Item 11 of the FIEA. (hereinafter referred to as“Investment Trust Securities”) of Investment Corporations and foreign investment corporations.

Article 2-2

Basic Principles regarding Investment of Trust Property, etc.

1. Investment trust management companies (meaning a settlor company of investment trust as defined in
Article 2, Paragraph 11 of the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951,
hereinafter referred to as the “Investment Trust Act”) and an asset management company as defined in
Paragraph 21 of the same article) and trust companies, etc. that act as trustee companies for Investment
Trusts that are not directed by the trustee (hereinafter referred to as “Investment Trust Management
Companies, etc.”; the same shall apply hereinafter in this article and the following article) must faithfully
and with the care of a good manager direct or manage (hereinafter referred to as “Management, etc.”) theInvestment Trust Property or Investment Corporation assets (hereinafter referred to as the “Trust Property,etc.”; the same shall apply hereinafter in this article and the following article) for the benefit of beneficiariesof the Investment Trusts or Investment Corporations.
2. In conducting Management, etc. of the Trust Property, etc., Investment Trust Management Companies, etc.
shall comply with the FIEA, the Investment Trust Act, other laws and regulations, and the Rules andRegulations of the Association, and shall give consideration to the protection of investors.

Article 2-3

System for Management of Trust Property, etc.

The Management, etc. of Trust Property, etc. shall be conducted independently by Investment TrustManagement Companies, etc., and any party other than said Investment Trust Management Companies, etc.
(excluding parties who have been entrusted with all or part of the authority to conduct Management inaccordance with the provisions of Article 42-3 of the FIEA and parties who have been entrusted with part of theauthority to conduct Management, etc. in accordance with the provisions of Article 55 of the Investment Trust
Act) shall not be involved in the Management, etc. of the Trust Property, etc.

Article 2-4

Development of Liquidity Risk Management Systems

In order to take the reasonable measures set forth in Article 130, Paragraph 1, Item 8-3 of the Cabinet Office
Order on Financial Instruments Business, etc. (Order No. 52 of 2007, hereinafter referred to as the “Order on
Financial Instruments Business”) or Article 271, Paragraph 1, Item 10 of the Regulation for Enforcement of the
Act on Investment Trusts and Investment Corporations, Management Companies, etc. (meaning Investment
Trust Management Companies as defined in Article 2, Paragraph 11 of the Investment Trust Act and trust
companies, etc. that act as trustee companies for Investment Trusts that are not directed by the trustee, as
defined in Article 47 of the same Act; the same shall apply hereinafter in this article) that have established aPublicly Offered Investment Trust (excluding those set forth in Article 12, Items 1 and 2 of the Order for
Enforcement of the Act on Investment Trusts and Investment Corporations; the same shall apply hereinafter inthis article) shall establish internal rules, etc. (hereinafter in this article referred to as “Liquidity Risk
Management Rules, etc.”) based on the matters listed in the following items and develop the necessary systems(hereinafter referred to in this article as “Liquidity Risk Management Systems”). The Liquidity Risk
Management Systems established by Management Companies, etc. in accordance with the Liquidity Risk
Management Rules, etc. shall take into account the size of the Investment Trust during the process from the
Publicly Offered Investment Trust’s product design to redemption, the nature of the trading conditions, etc. forthe assets held, the investment strategy, the attributes of the point of sale, such as securities companies andregistered financial institutions, the characteristics of the anticipated investors, the conditions for establishment
and early cancellation, the product characteristics, the market trends and market environment, the impact ofthese factors on liquidity risk, and the results of stress tests, etc. (hereinafter collectively referred to as “Various
Circumstances, etc.” in this article)(1) Liquidity Risk Management Process(a) Evaluation of Liquidity Risk(i) The liquidity risk of the investment target assets of individual Publicly Offered Investment Trusts
shall be assessed, taking into account Various Circumstances, etc. throughout the process from the
Publicly Offered Investment Trust’s product design to redemption.
(ii) If the assets of the Publicly Offered Investment Trust include other Investment Trust Securities,
etc., the liquidity risk of the Investment Trust shall be assessed taking into account, as necessary,
the requisite information regarding the liquidity risk management process for other such
Investment Trust Securities, etc. and the liquidity risk of the underlying assets held indirectly.
(b) Monitoring(i) Establishment of hierarchical classifications and holding criteria based on liquidity risk forindividual Publicly Offered Investment Trusts
Assets held by individual Publicly Offered Investment Trusts shall be classified into hierarchicalclasses according to their degree of liquidity, and a lower limit of the threshold for the most liquidclass and an upper limit of the threshold for the least liquid class shall be determined. In principle,
the following hierarchical categories (classifications that take into account the number of days saleis possible and conditions) shall be established. In the event that a Management Company, etc.
decides to adopt a classification method different from that described below, it shall disclose theoutline of the classification on its website.
I. High-liquidity assets: ... Assets reasonably deemed to be sellable within three business days or
less, taking into account market impact
II. Medium-liquidity assets: ... Assets reasonably deemed to be sellable within four to sevenbusiness days, taking into account market impact
III. Low-liquidity assets: ... Assets reasonably deemed to take eight business days or more to sell,
taking into account market impact
IV. Non-Liquid Assets: ... Assets reasonably deemed to take eight business days or more to sell,and to have a significant market impact(ii) Monitoring of liquidity risk for individual Investment Trusts
A Management Company, etc. shall periodically and at an appropriate frequency monitor the
proportion of shareholdings in each hierarchical category for each Investment Trust in accordancewith the characteristics of the Investment Trust, its terms and conditions for establishment andearly cancellation, and shall maintain a trail of the monitoring methods and results, etc.
(iii) Reporting upon confirmation that the proportion of shareholdings exceeds the upper or lower
limits, etc.
If it is confirmed through the monitoring conducted by a Management Company, etc. that any
individual Investment Trust’s proportion of shareholdings exceeds or falls below the upper orlower limits established based on (i) above, the Management Company shall, in accordance withthe procedures set forth in the internal rules, report the situation to an appropriate body, such as thecommittee within the company that supervises the execution of investment instructions (the Boardof Directors, the Investment Committee, etc. (hereinafter referred to as “Board of Directors, etc.”;
the same shall apply hereinafter in this article)). In addition, if necessary, a more detailed liquidity
analysis shall be conducted, and appropriate measures shall be taken, such as providing
information to beneficiaries and considering changes to the portfolio.
(c) Stress Testing
Internal rules specifying the implementation of stress tests shall be drawn up, taking into
consideration of the size of the Publicly Offered Investment Trust, the nature of the assets held, theinvestment strategy, the attributes of the point of sale, such as securities companies and registeredfinancial institutions, the characteristics of the anticipated investors, and terms and conditions forestablishment and early cancellation. The company shall, on a regular basis and as necessary,
implement stress tests of Publicly Offered Investment Trusts established by the company underthese regulations, and depending on the situation, conduct further detailed liquidity analysis andtake appropriate actions, such as considering changes to the portfolio.
(d) Contingency Plans
Contingency plans for liquidity related to Publicly Offered Investment Trusts shall be drawn up,
their effectiveness shall be verified as appropriate, and if necessary, the addition of new measures
to deal with liquidity risk, etc. shall be considered.
(e) Periodic Review of the Liquidity Risk Management Process
With regard to the assessing and managing the liquidity risk of Publicly Offered Investment Trusts,
the liquidity risk manager should review the effectiveness of the internal rules, analytical tools,
and contingency plans used at least once a year, and take the required measures as necessary.
(2) Supervision by the Board of Directors, etc.
The Board of Directors, etc. shall ensure appropriate implementation of liquidity risk management
and appropriately supervise the company’s own management system by taking measures specified in
the By-laws to ensure that the Liquidity Risk Management Systems are appropriate and effective.
(3) Disclosure to Beneficiaries, etc.

In the event that a Management Company, etc. suspends the establishment of additional Investment
Trusts or partially cancels Publicly Offered Investment Trusts that it has established due to an
extreme decline in the liquidity of the assets held in the Investment Trust Property, etc., theManagement Company shall promptly disclose that such an event has occurred and the future
outlook, etc. on its website or by any other means.
(4) Retention of Records
Evidence of the effective functioning of the Liquidity Risk Management Systems for the past sevenyears shall be retained.
* Article 1-2 of the By-lawsPart 2

Securities Investment Trusts

Chapter 1:

Publicly Offered Securities Investment Trusts

Section 1.

Principles of Securities Investment

Article 3

Principles of Securities Investment

Securities investment trusts shall invest an amount exceeding one-half of the total amount of the Trust Propertyof said Investment Trust as investments in securities (excluding rights set forth in the items of Article 2,
Paragraph 2 of the FIEA, which are deemed to be securities pursuant to the items of the same paragraph); thesame shall apply hereinafter in this article and Article 27 ) (including transactions of securities-related
derivatives (meaning securities-related derivatives transactions as set forth in Article 28, Paragraph 8, Item 6 of
the FIEA; the same shall apply hereinafter)). However, this shall not apply when there are unavoidable
circumstances relating to investment, such as the initial establishment, cancellation and redemption of the
securities investment trusts, and the investment environment.

Section 2. Management Instructions, etc.
Article 4

Instructions for Transactions, etc.

In giving investment trust management instructions regarding the Trust Property of securities investment trusts(hereinafter referred to as “Investment Trust Property”), an investment trust management company (meaning
an investment trust management company as defined in Article 2, Paragraph 11 of the Investment Trust Act,
hereinafter referred to as a “Management Company”) shall, after comprehensively taking into consideration
market conditions and prices at the time of giving such management instructions, endeavor to give
management instructions under the conditions that it judges to be most advantageous for the Investment Trust
Property. For transactions that require quotations, such as transactions that are not conducted through an
exchange, the process relating to such decisions shall be made clear.
Article 4-2

Considerations Regarding Instructions for Transactions, etc.

When a Management Company conducts a preliminary investigation of the conditions for issuing structured
bonds, etc. before establishing the Investment Trust Property, the Management Company shall note that inmaking the decision prescribed in the preceding article with respect to investment instructions for such
structured bonds, etc., conditions such as the price and interest rate of such structured bonds, etc. shall be
determined by the market conditions, etc. at the time the investment instructions are given, and shall be
determined only at that time.
Article 5

Instructions for Transactions with Interested Parties

When giving instructions concerning transactions between the Investment Trust Property and interested partiesor the acquisition or disposal of securities, etc. issued by interested parties, a Management Company shall pay
due attention to its duty of loyalty to beneficiaries.

Article 6

Instructions Based on Investment Plans

A Management Company shall give instructions for investment of the Investment Trust Property by any of thefollowing methods (hereinafter referred to as the “Investment Plan.” The same shall apply hereinafter):(1) A method of giving instructions based on the Investment Plan
(2) A method of giving instructions by establishing an after-the-fact check system as specified in the By-laws
When instructions are given in accordance with the Investment Plan set forth in Item 1 and such
Investment Plan is changed, the reason for such changes shall be specified.
* Article 1-3 of the By-laws

Article 7

Price Formation

In giving instructions for the investment of the Investment Trust Property, a Management Company shall notgive instructions intended for price formation.
Article 8

Instructions for Transactions Conditional on Closing Quotations

A Management Company shall establish in advance internal rules including the following matters with respect
to transactions conditional on closing quotations of domestic shares (meaning transactions conducted
off-auction or off-market after the close of the trading hours of the relevant exchange based on the final pricequoted by a type-I financial instruments business operator (meaning a party that engages in Type I financial
instruments business as prescribed in Article 28, Paragraph 1 of the FIEA; the same shall apply hereinafter),and shall comply with such internal rules when giving instructions for such transactions.
(1) The following standards, etc. for instructions for transactions conditional on closing quotations(a) Standards for determining the appropriateness of conducting a transaction conditional on closing
quotations and the appropriateness, etc. of the terms and conditions based on the final price of therelevant exchange offered by the type-I financial instruments business operator, and methods forconfirming the fact that a type-I financial instruments business operator conducts hedging
transactions and the basic approach, etc. of the type-I financial instruments business operator withrespect to such hedging transactions(b) Details of orders, etc. corresponding to trends in volume and share prices, etc. on the relevant
exchange for issues for which orders are given for transactions conditional on closing quotations

(c) Standards for the ordering time for transactions conditional on closing quotations(d) Standards for selecting a type-I financial instruments business operator for ordering(2) When a type-I financial instruments business operator buys or sells shares in cash for the purpose ofhedging transactions, the following conditions shall be attached to the relevant order and execution shallbe requested in consideration of share price trends(a) To endeavor to minimize market impact(b) Any other matters deemed necessary by the Management Company(3) A system shall be established to check the effectiveness of the matters listed in Items 1 and 2 in a timely
manner, and necessary measures such as changes to internal rules shall be taken based on the results ofthe following checks.
(a) Events requiring confirmation shall be cases in which a certain level of fluctuation is found bycomparing the closing price of the issue with the price at the time of the order for a transaction
conditional on a closing quotation, or other cases in which the Management Company deems it
necessary(b) Confirmation shall be made based on information from type-I financial instruments business
operator, information vendors, etc., and, if necessary, an explanation shall be requested from thetype-I financial instruments business operator that conducted the transaction with the closing
quotation conditions regarding the consistency between the hedging transaction and the type-I
financial instruments business operator’s basic approach to hedging transactions and other mattersdeemed necessary by the Management Company(c) The details of confirmation under the provisions of (b) shall be recorded in the order slip, etc.
(4) In drawing up the standards for selecting a type-I financial instruments business operator for ordering as
set forth in Sub-item (d) of Item (1), consideration shall be given not only to trading commissions but
also to the details prescribed in Sub-items (a) and (b) of the preceding Item

Article 8-2

Management of Batch Orders, etc.

1. In the event that multiple buy/sell orders (meaning when an investment management division (meaning thedivision or party in charge of determining the instructions of trading conditions and volume for each
Investment Trust Property; the same shall apply hereinafter in this article and the following article) instructs
an ordering division (meaning the division or party in charge of placing orders (meaning orders from theordering division to financial instruments business operators; the same shall apply hereinafter) with financial
instruments business operators, etc. (meaning type-I financial instruments business operator andcorporations established under foreign laws and regulations that are similar to type-I financial instruments
business operators; the same shall apply hereinafter)) for the purchase and sale of each Investment Trust
Property; the same shall apply hereinafter in this article and the following article); the same shall apply
hereinafter) for securities, etc. (securities, margin transactions relating to securities, and derivativetransactions (derivative transactions as defined in Article 2, Paragraph 20 of the FIEA), hereinafter referred
to as “Securities, etc.” in this article) pertaining to multiple Investment Trust Properties are buy/sell orders
with the same buy/sell conditions (meaning the type and issue of Securities, etc., whether they are sold orpurchased, the type of transaction, and the execution price or price range; the same shall apply hereinafter inthis article) and these buy/sell orders correspond to any of the following orders (meaning an instruction froman investment management division to an ordering division; the same shall apply hereinafter), aManagement Company may place an order with a financial instruments business operator, etc. by combining
such multiple buy/sell orders (including cases where the Management Company places an order ininstallments from the perspective of ensuring best execution in consideration of market conditions.
Hereinafter referred to as a “Batch Order”).
Proprietary trading shall not be regarded as a Batch Order.
(1) Buy/sell orders for Securities, etc. that arrive at the ordering division before the start of market trading
hours (including the afternoon session)(2) Buy/sell orders for Securities, etc. that arrive at the ordering division during market trading hours(limited to those for which the requirements, procedures, etc. for handling orders as a Batch Order by theordering division are specified in the By-laws provided in the internal rules of a Management Company )2. Securities, etc. eligible for Batch Orders shall, for the time being, be Securities, etc. listed or registered on a
Financial Instruments Exchange Market (meaning a financial instruments exchange market as defined in
Article 2, Paragraph 17 of the FIEA; the same shall apply hereinafter), Foreign Financial Instruments Market(meaning a foreign financial instruments market as defined in Article 2, Paragraph 8, Item 3 (b) of the FIEA;
the same shall apply hereinafter), or an Over-the-Counter Financial Instruments Market (meaning a market
other than Financial Instruments Exchange Markets among financial instruments markets (meaning financial
instruments markets as defined in Article 2, Paragraph 14 of the FIEA; the same shall apply hereinafter)).
3. The execution unit price applicable to a Batch Order shall be the average unit price, and such average unit
price shall be the price calculated using the calculation method specified in the By-laws.
4. Allocation of execution results for Batch Orders shall be made on a per transaction basis, and one method
shall be selected in advance from among the allocation methods and rounding methods specified in the
By-laws, and the allocation shall be made by such method.
5. When placing a Batch Order, a Management Company shall comply with the following requirements.
(1) The investment management division and the ordering division shall be separated.
(2) The matters or documents listed in (a) and (b) below shall be indicated in the order slip prescribed in
Article 157, Paragraph 1, Item 17 (d) of the Order on Financial Instruments Business as applied mutatis
mutandis in accordance with Article 181, Paragraph 1, Item 4 of the same Act (including a document
specifying the matters to be indicated in the order slip, which is required to be attached to the order slip
under Article 171, Paragraph 3, Item 1), or a document stating the matters listed in (a) and (b) shall be
attached(a) The time of sending a buy/sell order from the investment management division to the ordering
division or the time of receiving a buy/sell order at the ordering division(b) The volume allocated to each Investment Trust Property with respect to the execution results of a
Batch Order
6. When placing a Batch Order, a Management Company shall implement the best execution of the orders after
comprehensive consideration of market conditions, prices, etc.

7. When a Management Company intends to place a Batch Order, it shall in advance establish internal rules
including the matters specified in the preceding paragraphs and establish an internal system accordingly.
8. A Management Company shall establish a compliance department and other administrative departments toensure the proper performance of Batch Orders and to verify the execution of business operations.
* Article 1-4, Article 1-5 and Article 1-6 of the By-laws* Article 37 of Rules for Investment Management Reports

Article 8-3

Management, etc. of Batch Orders with Non-Investment Trust Investment Assets or Foreign

Investment Assets
The provisions of the preceding article shall apply mutatis mutandis to Batch Orders for the Investment Trust
Property, non-investment trust investment assets (meaning investment assets as prescribed in Article 35,
Paragraph 1, Item 15 of the FIEA; the same shall apply hereinafter), and foreign investment assets (meaning
foreign investment assets as prescribed in Article 171, Paragraph 1, Item 1 of the Order on Financial
Instruments Business; the same shall apply hereinafter). In this case, the term “multiple Investment Trust
Properties” in the main clause of Article 8-2, Paragraph 1 shall be deemed to be replaced with “multiple
investment assets or foreign investment assets,” the term “for each Investment Trust Property” shall be deemed
to be replaced with “for each investment asset or foreign investment asset,” and the term “each Investment
Trust Property” in Paragraph 5, Item 2 (b) shall be deemed to be replaced with “each investment asset or
foreign investment asset.”* Article 1-7 of the By-laws

Article 9

Application for Establishment or Early Cancellation of Mother Investment Trusts and Time

Limits for Application
1. In the event that there are multiple child funds which invest in one mother investment trust, the Management
Company gives due consideration to equality among the child funds when applying for the establishment or
early cancellation of the said mother investment trust.
2. The time limit for application for such establishment or early cancellation by the manager of an Investment
Trust that is established or cancelled at the base value of the mother investment trust on the application dateshall be until the close of the market.
Provided, however, that the time limit for application for such establishment or early cancellation by the
manager of an Investment Trust that is established or cancelled at the base value of the mother investment
trust on the business day preceding the application date shall be the time limit set forth in (a) or (b) below
with regard to the Investment Trust specified in Sub-item (a) or (b) below.
(a) Investment Trusts for the purpose of achieving investment results linked to a specific index: until theclose of the market on the date of application(b) Investment Trusts other than those set forth in Sub-item (a): until the opening of the market on thedate of application
However, in the case of Investment Trusts other than those listed in (a) above, if the manager of theInvestment Trust expresses its intention (limited to those that can be quantified with respect toapplications on the next business day) by the close of the market on the business day prior to theapplication date, and if an application for establishment or early cancellation is made automatically
based on such declaration of intent on the application date, the time limit may be until the close of themarket on the application date. In this case, the declaration of intent shall be made after establishinginternal regulations on how to determine the amount and incorporation ratio in advance and how tomake an automatic application, and a record of the declaration of intent shall be kept by the system.

Article 10

Handling of Shareholders Benefits, etc.

1. The Management Company shall, upon consultation with the trustee, convert into cash and transfer to theInvestment Trust Property any goods or other items provided under the name of shareholder benefits, etc.
derived from shares incorporated in the Investment Trust Property (hereinafter referred to as “Shareholder
Benefits, etc.”) which meet the following criteria.
(1) Those that can be easily converted into cash, such as those for which there is a market for individual
conversion.
(2) Those deemed necessary for the benefit of beneficiaries, such as those that affect the base value
2. In cases where the criteria of the preceding paragraph are not met and the Shareholder Benefits, etc. can beconverted into cash collectively, they may, upon consultation with the trustee, be transferred to the Trust
Property in accordance with a specified allocation method that eliminates arbitrariness.

Section 3 Investment Target, etc.
Article 11

Scope of Shares for Incorporation, etc.

Shares to be incorporated into the Investment Trust Property shall be limited to those that fall under any of thefollowing categories.
(1) Those listed on a Financial Instruments Exchange (meaning a financial instruments exchange as definedin Article 2, Paragraph 16 of the FIEA) or a Foreign Financial Instruments Market, and those registered,etc. on an Over-the-Counter Financial Instruments Market established in a foreign country(2) Among unlisted shares or unregistered shares, those that are disclosed in accordance with the FIEA or
the Companies Act (Act No. 86 of 2005), or those that meet the requirements specified in the By-laws(including shares issued in foreign countries that are specified by the Self-regulation Committee assimilar to these)* Article 2 of the By-laws* Committee Resolution 1

Article 12

Scope of Investment Trust Securities for Incorporation, etc.

1. Investment trust securities to be incorporated into the Investment Trust Property shall be limited to those thatfall under any of the following categories.
(1) Beneficiary certificates of securities investment trusts as defined in Article 3 or investment securities of
securities investment corporations as defined in Articles 25 and 26 (including similar assets overseas

that fall under the category of beneficiary certificates of foreign Investment Trusts or foreign investment
securities as defined in the FIEA (hereinafter referred to as “Foreign Investment Trust Securities”))(2) Beneficiary certificates of real estate investment trusts or investment securities of real estate investment
corporations (including similar assets overseas that fall under the category of Foreign Investment Trust
Securities. Hereinafter referred to as “REIT Securities”) as defined in Article 3, Paragraph 1 of theRegulations on Real Estate Investment Trusts and Real Estate Investment Corporations (hereinafterreferred to as the “Regulations on REIT, etc.”)(3) Beneficiary certificates of infrastructure investment trusts or investment securities of infrastructure
investment corporations (including similar assets overseas that fall under the category of Foreign
Investment Trust Securities; hereinafter referred to as “IIT Securities”) as defined in Article 3,
Paragraph 3 of the Regulations on Infrastructure Investment Trusts and Infrastructure Investment
Corporations (hereinafter referred to as the “Regulations on IIT, etc.”)(4) Beneficiary certificates of investment trusts other than the securities investment trusts, etc. specified in
Article 27 or investment securities of Investment Corporations to which Article 30 applies (including
similar assets overseas that fall under the category of Foreign Investment Trust Securities)(5) If the Investment Trust Securities set forth in the preceding items are Foreign Investment Trust
Securities, such Foreign Investment Trust Securities shall satisfy the requirements specified in the
By-laws.
2. The total amount of Investment Trust Securities described in the preceding paragraph shall not exceed 5% of
the total amount of net assets of the relevant Investment Trust Property. However, the amount of Investment
Trust Securities specified in the By-laws shall not be included in the calculation of the total amount.
The provisions of Article 17-2 shall not apply to Investment Trust Securities managed in the range of 5% inaccordance with the provisions of this paragraph.
3. The amount that a single Management Company (including securities investment corporations to which thesaid Management Company provides investment instructions) may invest in a single investment trust
security shall not exceed 50% of the total net asset value of the Investment Trust or Investment Corporation
being invested in without the consent of the Management Company that is providing investment instructions
to the Investment Trust or Investment Corporation associated with the investment trust security being
invested in.
4. A Management Company must not give the following instructions regarding the incorporation of Investment
Trust Securities.
(1) Mutual and cyclical holdings between investment trusts(2) Investment in Funds of Funds (excluding cases where the said Fund of Funds is a mother investment
trust or Investment Trust prescribed in Article 12, Items 1 and 2 of the Cabinet Order (including foreign
investment trusts similar to these); hereinafter referred to as a “Listed Investment Trust”)
5. When incorporating Investment Trust Securities for which the Management Company itself provides
investment instructions, the Management Company shall pay due attention to conflicts of interest.
* Article 3 and Article 3-2 of the By-laws

Article 12-2 Special Provisions for Investment in Mother Investment Trusts
The provisions of Paragraph 2 and Paragraph 3 of the preceding article shall not apply to cases where theManagement Company invests in Investment Trust Securities of a mother investment trust to which theManagement Company provides investment instructions.

Article 13

Scope of Securitized Products

Securitized products to be incorporated into the Investment Trust Property shall be limited to those for which it
is possible to obtain market value in consideration of liquidity.

Article 14

Restrictions on the Incorporation of Assets into Medium-term Government Bond Funds

Medium-term government bond funds shall not incorporate the following assets.
(1) Securitized products(2) Mortgage securities(3) Silent partnership equity(4) Investment limited partnership equity(5) Beneficiary rights in money trusts (excluding those falling under the category of securities), the purposeof which is to mainly invest the Trust Property in silent partnership equity(6) Real estate(7) Leasehold rights to real estate(8) Surface rights(9) Commodities (as defined in Article 3, Item 9 of the Cabinet Order)(10) Rights pertaining to commodity investment, etc. transactions (as defined in Article 3, Item 10 of the
Cabinet Order)

Article 15

Other Transactions for Which Instructions May Be Given

1. In giving instructions for the investment of the Investment Trust Property, the Management Company may
give instructions for the following transactions, etc. specified in each of the items.
(1) Margin transactions (limited to those for sale): The total market value of an open interest shall be within
the total net asset value of the Investment Trust Property concerned. Settlement by actual delivery or
repurchase shall be permitted.
(2) Borrowing of shares (limited to those for sale): The total market value of the shares to be borrowed shallbe within the total net asset value of the Investment Trust Property concerned.
(3) Loan of securities: Securities held by the Investment Trust Property may be loaned.
(4) Bond borrowing and lending transactions (meaning so-called repo transactions and bond borrowing withcash collateral (hereinafter referred to as “Reverse Repo Transactions”)): The total market value of bondborrowing and lending transactions shall be within the total net asset value of the Investment Trust
Property concerned.
(5) Borrowing of bonds (including Reverse Repo Transactions): The total market value of the bonds to beborrowed shall be within the total net asset value of the Investment Trust Property concerned.

(6) Short selling of bonds (excluding convertible bond certificates, bonds convertible into shares of othercompanies, and corporate bonds with share warrants or share options): The total market value of bonds
for short selling shall be within the total net asset value of the Investment Trust Property concerned.
(7) Repurchase agreements (limited to those pertaining to bonds, CDs and CPs): The contract balance of the
repurchase agreement shall be within the total net asset value of the Investment Trust Property
concerned.
(8) Cash loans: Cash loans shall be limited to those for which market value can be obtained in considerationof liquidity.
(9) Borrowing of funds (including transactions through the call market): Instructions for the borrowing offunds within the limits specified in the By-laws shall be permitted only for the purpose of providing
funds for payment of early cancellation charges, for payment of dividends for dividend
reinvestment-type Investment Trusts, and in connection with the handling of accidents (limited to thosethat do not require the Investment Trust Property concerned to bear the borrowing interest)(10) Foreign exchange transactions: To be conducted in accordance with the following provisions(i) Foreign exchange transactions shall be in accordance with market practices(ii) Foreign exchange forward contracts shall be within the scope of the real net asset value of theInvestment Trust Property. However, the handling of such forward foreign exchange transactions by
Investment Trust Property that limit forward foreign exchange transactions to hedging purposes shallbe in accordance with the provisions of Article 16.
(11) Issue date settlement transactions: Only sales that are settled by delivery of shares belonging to theInvestment Trust Property may be conducted
2. When lending securities as prescribed in Item 3 of the preceding paragraph, a Management Company shallestablish internal regulations specifying policies for loans, loan terms, loan limits, credit ratings of borrowers
and other matters, and shall appropriately execute such internal rules. These internal rules shall include
provisions that fully consider the risk and return of lending and the relationship with the exercise of voting
rights when lending securities with the rights stipulated in Article 10 of the Investment Trust Act.
* Article 4 of the By-laws

Article 16

Foreign Exchange Forward Contracts for Hedge-oriented Investment Trusts

In the case of Investment Trusts in which foreign exchange forward contracts are limited to the purpose ofhedging under the Contracts, such forward contracts shall be made as follows.
(1) Forward purchases shall be made for the acquisition price of assets denominated in foreign currencies
and other money, etc. specified in the By-laws, within the maximum amount specified in the By-laws.
(2) Forward sales shall be made for held assets denominated in foreign currencies and other money, etc.
specified in the By-laws, within the maximum amount specified in the By-laws.
(3) Forward purchases and sales may be settled by receipt or payment of foreign currency or by reversing
trade.
(4) The due dates for forward purchases and sales shall not exceed the trust period of the Investment Trust
concerned.

(5) In the event that the limits specified in Items (1) or (2) are exceeded with respect to a particular
Investment Trust, adjustments shall be made within one month from the date of occurrence to bring theamount within the prescribed maximum amount.
* Articles 5 and 6 of the By-laws

Article 17

Restrictions on Investment in Derivative Transactions, etc.

1. In the event that the amount calculated in a reasonable manner prescribed by the Management Company inadvance as the amount corresponding to risks that may arise from fluctuations in interest rates, currency
prices, quotations on the Financial Instruments Market and other indices or for any other reasons with respect
to the Investment Trust Property exceeds the total amount of the net asset value of such Investment Trust
Property, a Management Company shall not conduct any Derivative Transaction, etc. or make any
investment intended to continue any Derivative Transaction, etc. (meaning Derivative Transaction as
defined in Article 2, Paragraph 20 of the FIEA, including transactions pertaining to share option certificates,
investment equity subscription right certificates, or securities or certificates representing options, trading inbonds with options, and commodity investment, etc. transactions (meaning those prescribed in Article 3,
Item 10 of the Cabinet Order). Hereinafter referred to as “Derivative Transactions, etc.”).
2. The amount calculated by the Management Company in a reasonable manner as specified in the preceding
paragraph shall be in accordance with the method specified in the By-laws.
* Article 6-2 of the By-laws

Article 17-2 Investment Restrictions to Avoid Concentration of Credit Risk
1. The reasonable methods prescribed by Financial Instruments Business Operators, etc. in advance as methods
for properly managing credit risk as specified in Article 130, Paragraph 1, Item 8-2 of the Order on Financial
Instruments Business, etc. shall be such that the ratio of the exposure to a single entity to the total amount of
net assets of the Investment Trust Property does not exceed 10% for each of the following categories, or 20%
in total. In the event that such ratio is exceeded by reason of fluctuations in prices, interest rates, currencies or
the total amount of net assets of the Investment Trust Property, adjustments shall be made to bring it insidethese limits within one month from the date on which said limits are exceeded. If it is difficult to make theadjustment within one month through normal measures, the adjustment shall be made as soon as possible
after clarifying the relevant details. However, this shall not apply when there are unavoidable circumstances
relating to investment, such as the initial establishment, early cancellation and redemption of the securities
investment trusts, or in the investment environment.
(1) Holding of shares and investment trust securities: “Share, etc. exposure”(2) Holding of securities (excluding those set forth in the preceding item), money claims (excluding thosefalling under the next item), and interests in financing anonymous associations: “Bond, etc. exposure”(3) Credits arising from exchange contract transactions, other transactions stipulated by the items of Article
15, and derivative transactions: “Derivatives, etc. exposure”
2. The exposures set forth in Items 1 and 2 of the preceding paragraph shall be regarding persons who haveissued or formed the relevant securities, money claims, or interests in financing anonymous associations

(hereinafter in this article “Securities, etc.”) or the other party in a claim (hereinafter in this article “Issuers,etc.”) and shall be deemed to be the amount of the estimated value or credit value of the holdings (in the caseof transactions with collateral, the valuation of said collateral; or in the case of a claim against said Issuers,
an amount from which the value of said claim can be deducted; the same shall apply hereinafter in thisarticle). However, the following Securities, etc. exposures shall be as set forth below, respectively:(1) For credits issued or guaranteed by the central government or central bank of the country, the local
government, or any agency of government created by these, as determined by resolution of the membersof the Self-regulation Committee, the exposure shall be 0.
(2) For credits issued or guaranteed by the central government or central bank of the country, the local
government, or any agency of government created by these denominated in local currencies, theexposure shall be 0. However, this excludes those falling under the preceding item.
(3) For credits issued or guaranteed by international organizations, the exposure shall be 0.
(4) For call loans, deposits, and CPs (including short-term corporate bonds (meaning short-term corporate
bonds as stipulated in Article 66, Item 1 of the Act on the Book-Entry Transfer of Corporate Bonds,
Shares, etc.; short-term corporate bonds as stipulated in Article 61-10, Paragraph 1 of the Insurance
Business Act; specified short-term bonds as stipulated in Article 2, Paragraph 8 of the Act on the
Securitization of Assets; short-term bonds as stipulated in Article 54, Paragraph 4, Item 1 of the Shinkin
Bank Act; short-term agricultural bonds as defined in Article 62-2, Paragraph 1 of the Norinchukin Bank
Act; and short-term foreign bonds as defined in Article 38, Paragraph 2 of the Order on Supervision ofGeneral Book-Entry Institutions)), foreign CDs or Securities as defined in Article 2, Paragraph 1, Item
18 of the FIEA (excluding those as defined in the preceding items), the exposure shall be 0 if the period
until maturity is not more than 120 days.
(5) For securities, etc. held through transactions with repurchase agreements within one month or Reverse
Repo Transactions (excluding those set forth in the preceding items), the exposure shall be 0.
3. Among the transactions listed in Item 3 of Paragraph 1, the exposure of exchange contracts (excluding thosecorresponding to over-the-counter derivative transactions; the same shall apply hereinafter in this article)
shall be regarding the other parties to the transactions and shall be as set forth below according to the contract
date.
(1) For items with a contract date arriving within 120 days, the exposure shall be 0.
(2) For more than 120 days, the amount of appraisal profit shall be the exposure.
However, if any collateral has been provided for said transactions, an amount equivalent to saidcollateral may be deducted from the amount of appraisal profit at the discretion of the Management
Company.
4. Among the transactions set forth in Paragraph 1, Item 3, the exposures of transactions set forth in therespective items of Article 15 (excluding exchange contract transactions; the same shall apply hereinafter inthis article) and derivative transactions shall be regarding the Issuers etc. of Securities and the other parties of
the transactions and shall be as set forth below, respectively.
(1) The exposure regarding the Issuers etc. of Securities shall be as follows with regard to derivativetransactions covering Securities, etc. (underlying assets) (however, it shall be 0 if the underlying assets

are those set forth in the items of Paragraph 2) and 0 with regard to Derivative Transactions, etc.
covering financial indices (interest rates, exchange rates, stock indices, futures transactions, etc.) andother Derivative Transactions.
(a) For purchases of futures transactions, the exposure shall be the appraisal value of such Futures
Transactions.
(b) The exposure for selling futures shall be 0.
(c) For purchases of call options and sales of put options, the exposure for over-the-counter derivativesof such transactions shall be the number of rights multiplied by the price of the underlying assets.
However, this may be calculated by taking into consideration the sensitivity (delta) of the option
price to the rate of change of the underlying assets.
(d) For sales of call options and purchases of put options, the exposure shall be 0.
(2) Exposure regarding the other parties of the transactions shall be as follows:(a) For market derivative transactions and foreign market derivatives transactions, the exposure shall be0.
(b) With regard to the transactions set forth in the respective items of Article 15 and over-the-counter
derivative transactions, the amount of appraisal profit (if collateral or margin is deposited for suchtransactions (including cases where settlement is made at a clearing house), the appraisal value of thecollateral or margin shall be deducted from the amount of appraisal profit) shall be the exposure.
5. Notwithstanding the provisions of Paragraph 2, in the event that an exposure in an incorporated investment
trust certificate or securitized product (limited to those for which the underlying assets are strictly segregatedfrom the proprietary assets of Issuers, etc. and secured isolation from the state of bankruptcy for the Issuers,etc.) can be looked through (i.e., an exposure or the upper limit of an exposure in said incorporated
investment trust certificate or securitized product can be identified), then the amount of said exposure or theupper limit of said exposure belonging to the Investment Trust Property may be an exposure. In this case, theprovisions of the preceding three paragraphs shall apply mutatis mutandis to calculating or identifying theexposure or the upper limit thereof in said incorporated investment trust certificate or securitized product.
* Committee Resolution 2

Article 17-3 Exceptions to Investment Restrictions to Avoid Concentration of Credit Risk
1. Among the reasonable methods set forth by Financial Instruments Business Operators, etc., in advance asmethods for properly managing credit risk as set forth in Article 130, Paragraph 1, Item 8-2 of the Order on
Financial Instruments Business, methods deemed appropriate as reasonable without reference to theprovisions of the preceding article shall be any of the following measures.
(1) Making said fund an Investment Trust as stipulated in Article 25, Item 2 of the Regulation for
Enforcement of the Act on Investment Trusts and Investment Corporations, or making said fund subject
to the application of the Rules for Operations of MMF, etc.
(2) If the investment trust contract or the Certificate of Incorporation stipulates that the Investment Trustaims at achieving investment results linked at a certain magnification to price fluctuations of indices(such as the Securities Index, the Commodity Index or the Commodity Futures Index) that satisfy all of

the following requirements, and Issuers, etc. of the Securities, etc. constituting such indices shall bedeemed to have an exposure of 0 and calculated in the manner set forth in the preceding article, theexposure of one person shall not exceed the ratio set forth in Item 1 of the same article.
(a) The amount is calculated by a person other than Investment Trust Management Companies, etc.
(b) The index and its calculation method have been publicly available(c) The Securities Index comprehensively represents the prices of a large number of issues(3) All of the following measures shall be taken in the event that there exists or is highly likely to exist acontrolling issue in the investment target (limited to when said controlling issue is deemed highly likely
to exist based on the target market of the investment, the theme, etc.):(a) The terms “10%” and “20%” set forth in the main clause of Article 17-2, Paragraph 1 shall bedeemed to be replaced with “35%” to apply the same article.
(b) The intention for specialized use shall be conspicuously indicated on the cover of the delivery
prospectus (meaning the delivery prospectus as set forth in Article 1 of the Regulations on
Preparation of Delivery Prospectus; the same shall apply hereinafter).
(c) That there is a controlling issue and the influence thereof shall be mentioned in the “Purpose andFeatures of the Fund” column of the delivery prospectus (including the fact that there is a highpossibility of such existence).
(4) If the ratio of the exposure of one person calculated in the manner set forth in Article 17-2 to the net asset
value of the Investment Trust Property exceeds the ratio set forth in Item 1 of the same article, the nameof said person shall be clearly indicated as the name of the fund so as to be easily understood by generalinvestors, and the measures set forth in (b) and (c) of the preceding item shall be taken.
2. In applying Article 17-2, Paragraph 5 in the event that investment trust certificates of investment trusts as set
forth in Item 2 of the preceding paragraph or securitized products of the same nature (assuming the products
constituting the index to be linked as underlying assets, said underlying assets shall be strictly separated fromthe specific assets of Issuers, etc. and shall be isolated from the state of bankruptcy, etc. of the Issuers, etc.)
are incorporated, the exposure of the Issuers, etc. constituting the index to be linked by the incorporated
investment trust or the Issuers, etc. of said incorporated securitized products shall be deemed to be 0 whencalculating the exposure set forth in Article 17-2.
3. The controlling issue set forth in Paragraph 1, Item 3 means the issue of specified issuers defined in any of
the following ways, in which the degree of contribution of said issuer exceeds 10%:
(1) A method in which the ratio of the market capitalization (including financial weight/risk weight/an
amount equal to these) of the issues issued by a specified issuer to the market capitalization of thecandidates for investment specified by the Management Company in accordance with the proper
procedures based on the internal rules is used as the degree of contribution of said specified issues(2) A method in which using the benchmark for which the Management Company determines its calculation
method in accordance with the appropriate procedure based on internal rules (including a benchmark
when an index calculated in accordance with the calculation method determined by a third party is
employed as a benchmark, and excluding any requirement that such index be described in the investment
trust contract, prospectus, etc.), whereby the ratio of the total amount of the issues issued by the specifiedissuer to the entire benchmark shall be regarded as the degree of contribution of said specific issue

Article 18

Indication of Contracts for Investment Trusts to Use Derivative Transactions, etc. for Purposes

Other Than Hedging
1. Investment Trusts using Derivative Transactions, etc. for purposes other than hedging shall clearly indicate
their investment attitude in the Contracts (including the attached table).
2. Notwithstanding the provisions of the preceding paragraph, the use of long-term public and corporate bondinvestment trusts, medium-term government bond funds, asset accumulation funds, and other Derivative
Transactions, etc. of Investment Trusts specified in the By-laws shall be limited to those for the purpose ofhedging.
* Article 7 of the By-laws

Article 19

Adjustment, etc. in Case of Exceeding Restrictions on the Incorporation Rate

1. If any of the following events, etc. has occurred to the Investment Trust Property, the Management Company
shall make an adjustment so that such events are within the prescribed limit within the period specified in therespective items:(1) Within six working days, including the day of occurrence, of any event exceeding the limit for thenumber of shares to be incorporated due to any rise in the value of shares or early cancellation of shares(2) Within one month, including the date of occurrence, when any event exceeding the limit ofincorporation or the scope of foreign exchange reservation occurs due to a rise in the value of foreign
securities, etc.
2. For Investment Trusts which incorporate beneficiary certificates or investment securities into which sharesor assets denominated in foreign currencies can be incorporated, the amount of shares or assets denominatedin foreign currencies incorporated in said beneficiary certificates or investment securities (limited toamounts equivalent to the incorporation of such Investment Trusts) shall be included in the calculation of thelimit of shares or assets denominated in foreign currencies incorporated in such Investment Trusts.

Article 20

Special Provisions for Funds, etc. for Comprehensive Securities Accounts

Investment targets, etc. related to funds for comprehensive securities accounts and MMFs shall be as set forthin the Rules for Operations of MMF, etc., and the provisions of Section 3 of Chapter 1 shall not apply.

Chapter 2:
Article 21

Privately Placed Securities Investment Trusts
Privately Placed Securities Investment Trusts

Instructions for management of investment trust assets in privately placed (meaning private placement as
defined in Article 2, Item 3 of the FIEA; the same shall apply hereinafter) securities investment trusts,(hereinafter “Privately Placed Investment Trust Property”) shall be given according to the following:(1) The provisions of Article 3 shall apply mutatis mutandis to marketable securities investments inprivately placed securities investment trusts, and the provisions of Article 4 through Article 10 shallapply mutatis mutandis to Management Companies that give instructions for management of privately
placed securities investment trusts. In this case, the term “securities investment trusts” in Article 3 shallbe replaced with “privately placed securities investment trusts,” the term “Trust Property of securities
investment trusts (hereinafter referred to as “Investment Trust Property”) in Article 4 shall be replacedwith “Privately Placed Investment Trust Property,” and the term “Investment Trust Property” in Article
5 through Article 7 and Article 10 shall be replaced with “Privately Placed Investment Trust Property.”(2) The provisions of Article 12 (excluding Paragraph 1, Item 5; hereinafter the same shall apply in thisparagraph) shall apply mutatis mutandis to the incorporation of beneficiary certificates of investment
trusts of the Privately Placed Investment Trust Property or investment securities of Investment
Corporations. In this case, the term “Investment Trust Property” in said article shall be replaced with
“Privately Placed Investment Trust Property.”
However, notwithstanding the provisions of Article 12, Paragraph 2, investments may be made ininvestment trust securities set forth in Article 12, Paragraph 1, Items 1 and 4 and in REIT Securities and
IIT Securities that satisfy the following requirements:(a) The securities are REIT Securities or IIT Securities that can be measured at market value(b) The management status, etc. at the time of settlement of accounts, etc. is available for REIT
Securities or IIT Securities(3) The provisions of Article 15, Paragraph 1, Item 9 shall apply mutatis mutandis to the borrowing of funds
by the Privately Placed Investment Trust Property.

Chapter 3:
Article 22

Fund of Funds
Requirements, etc. for Funds of Funds for Public Offerings

1. Public offering (other than private placements; the same shall apply hereinafter) funds of funds shall belimited to those which satisfy the following requirements:(1) If the investment trust securities to be incorporated are domestic investment trust securities, they shall be
investment trust securities for public offering (hereinafter “Publicly Offered Investment Trust
Securities”) and Investment Trust Securities to which the rules, etc. of the Association relating to the
Publicly Offered Investment Trusts are applied. If the Investment Trust Securities to be incorporated are
Foreign Investment Trust Securities, they shall be Foreign Investment Trust Securities that satisfy therequirements specified in the By-laws.
(2) Investments and transactions other than investments in investment trust securities shall be limited to thefollowing investments and transactions:(a) CPs, short-term corporate bonds, etc. (meaning short-term corporate bonds as stipulated in Article
66, Item 1 of the Act on the Book-Entry Transfer of Corporate Bonds, Shares, etc.; short-term
corporate bonds as stipulated in Article 61-10, Paragraph 1 of the Insurance Business Act; specified
short-term corporate bonds as stipulated in Article 2, Paragraph 8 of the Act on the Securitization ofAssets; short-term bonds as stipulated in Article 54-4, Paragraph 1 of the Shinkin Bank Act;short-term agricultural bonds as defined in Article 62-2, Paragraph 1 of the Norinchukin Bank Act;and short-term foreign bonds as defined in Article 38, Paragraph 2 of the Order on Supervision ofGeneral Book-Entry Institutions), CDs, deposits designated money trusts (meaning beneficiary
certificates of trust-issuing beneficiary certificate trusts as set forth in Article 2, Paragraph 1, Item 14of the FIEA and beneficiary rights of trust as set forth in Article 2, Paragraph 2, Item 1 of the said Act
that are beneficiary rights of money trusts with a principal indemnity agreement as set forth in Article
22, Paragraph 1, Item 2 of the Regulation for Enforcement of the Act on Investment Trusts andInvestment Corporations (Cabinet Office Ordinance No. 129 of 2000)), call loans, or investments inbills traded on discount markets(b) Transactions with repurchase agreements, loan transactions with debentures, or loans of investment
trust securities listed on the market(c) The following REIT Index futures transactions (meaning futures transactions covering the REIT
Index and including similar transactions in foreign countries; the same shall apply hereinafter)i) REIT Index futures transactions conducted by the funds of funds in which the investment trust
securities to be incorporated are limited to REIT Securities meeting the requirements of the itemsof Paragraph 2ii) REIT Index futures transactions to prevent any discrepancy between the market price of REIT
Securities to be incorporated and the investment results to be targeted in the investment policy inthe prospectus and the basic policy for management in the Contracts(d) In the event that a Listed Investment Trust is incorporated, in order to prevent any discrepancy
between the market price of the said Listed Investment Trust and the base value of the said fund offunds, the Linked Index (meaning the Linked Index as defined in Article 19, Paragraph 2 of theRegulation for Enforcement of the Act on Investment Trusts and Investment Corporations (Cabinet
Office Ordinance No. 129 of 2000)) of the Listed Investment Trust pertaining to the Securities Index
Futures Transaction (meaning the Securities Index Futures Transaction as defined in Article 14, Item
6 of the Cabinet Office Ordinance on Restrictions on Securities Transactions, etc. (Cabinet Office
Ordinance No. 59 of 2007))(e) Investments in beneficiary certificates of trust-issuing beneficiary certificate trusts as set forth in
Article 2, Paragraph 1, Items 14 and 17 of the FIEA (excluding those set forth in (a)) and beneficiaryrights, etc. of a trust as prescribed in Article 2, Paragraph 2 of the same act that satisfy therequirements specified in the By-laws(f) Investments in investment equity subscription right certificates (meaning those prescribed in Article
2, Paragraph 18 of the Investment Trust Act) issued by Investment Corporations pertaining to REIT
Securities and IIT Securities(3) Foreign exchange contract transactions shall be limited to hedging of assets denominated in foreign
currencies.
(4) The investment trust securities to be incorporated are limited to the scope of investment trust securities
listed in the selection conditions and list of investment trust securities to be incorporated as set forth in
the Contracts or the Certificate of Incorporation of the investment corporation (hereinafter “Certificate
of Incorporation”). However, in the case of REIT Securities, IIT Securities, and the Listed Investment
Trusts, it shall not be necessary to state the investment policy on the list if said investment policy isspecified in the selection conditions and communicated to customers in a timely manner.
(5) Said fund of funds and the investment trust securities to be incorporated shall disclose the main payment
expenses such as the trust fee rate and the acquisition commissions for each investment trust security.
(6) The fund of funds shall satisfy the requirements provided in the By-laws in addition to those provided in
the preceding items.
2. REIT Securities and IIT Securities to be incorporated by the fund of funds in a public offering shall belimited to those that satisfy the following requirements:(1) Securities which are exchange traded or over-the-counter registered (hereinafter referred to as “Listing,etc.”) (including those pertaining to a new offering or secondary distribution prior to Listing, etc., or an
additional offering or secondary distribution after Listing, etc.) and which are available for sale at any
time (excluding cases where liquidity is temporarily decreased due to sudden market change, etc.)(2) Prices are published on a day-to-day basis and can be measured at market value.
(3) The status of operations at the time of settlement of accounts is disclosed, and such information isavailable.
3. The Listed Investment Trusts to be incorporated by public offering funds of funds shall be limited to thosethat satisfy the following requirements:(1) Securities listed on the Tokyo Stock Exchange and are available for sale at any time (excluding cases inwhich liquidity is temporarily decreased due to sudden changes in market conditions, etc.).
(2) Prices are published on a day-to-day basis and can be measured at market value.
(3) The status of operations at the time of settlement of accounts is disclosed, and such information isavailable.
4. The Management Company shall disclose at least once every six months (when the accounting period is lessthan six months, at the time of making each settlement report) the latest details of securities and other assets
held by the Investment Trusts, etc. to be invested (meaning such recent details as the latest settlement reportor semiannual report of the incorporated investment trusts that can be known to the Management Company)
to the extent known to the Management Company. However, in the event that the investment trust securities
invested in are REIT Securities or IIT Securities, investment summaries of such REIT Securities and IIT
Securities at the time of the latest settlement of accounts shall be disclosed to the extent known.
5. When incorporating beneficiary certificates of investment trusts for which the Management Company itself
gives instructions for investment, the Management Company shall pay sufficient attention to conflicts ofinterest.
* Article 8 of the By-laws

Article 23

Investment Restrictions, etc. on Funds of Funds for Public Offering

1. Funds of funds for public offering shall in principle invest in multiple investment trust securities. However,this shall not apply to cases in which said funds of funds are Listed Investment Trusts and invest ininvestment trust securities for the purpose of investment in assets in foreign countries, the taking out of
which is restricted in said countries.
2. The provisions of Article 17-2 and Article 17-3 shall apply to funds of funds for public offering.

Article 24

Funds of Funds for Private Placement

The provisions of Article 3 through Article 7, Article 9 through Article 10, Article 12 (excluding Paragraph 1,
Item 5), Paragraph 1, Item 9 of Article 15, and the proviso to Paragraph 1, Item 2 of Article 21 as appliedmutatis mutandis pursuant to Article 21 shall apply mutatis mutandis to private placement of funds of funds. In
this case, the term “securities investment trusts” in Article 3 shall be replaced with “funds of funds for private
placement”; the term “Trust Property of securities investment trusts (hereinafter referred to as “Investment
Trust Property”) in Article 4 shall be replaced with “property of funds of funds for private placement”; and theterm “Investment Trust Property” in Article 5 through Article 7, Article 9 through Article 10, Article 12, andArticle 15 shall be replaced with “funds of funds for private placement.”

Part 3

Securities Investment Corporations

Article 25

Publicly Offered Securities Investment Corporations

1. The provisions of Article 3 shall apply mutatis mutandis to the management of publicly offered securities
investment corporations. In this case, the term “securities investment trusts” in the same article shall be
replaced with “securities investment corporations,” the term “Trust Property of said Investment Trust” shallbe replaced with “assets of said Investment Corporations,” the term “initial establishment” shall be replacedwith “initial founding,” and the term “cancellation and redemption” shall be replaced with “refund anddissolution of the investment units.”
2. The provisions of Article 4 through Article 13, Article 15, Article 16, Article 18, and Article 19 shall apply
mutatis mutandis to investment targets, etc., of securities investment corporations (excluding securities
investment corporations set forth in the following paragraph). In this case, the term “Trust Property of
securities investment trusts (hereinafter “Investment Trust Property”)” in Article 4 shall be replaced with“assets of securities investment corporations (hereinafter “Investment Corporation Assets”),” and the term
“Investment Trust Property” in Article 5 through Article 7, Article 10 through Article 13, Article 15, andArticle 19 shall be replaced with “Investment Corporation Assets.”
However, the provisions of Article 11 through Article 13, Article 15, Article 16, Article 18, and Article 19 asapplied mutatis mutandis pursuant to this paragraph shall not apply only when any other resolution is madeat the Investors’ General Meeting.
3. The provisions of Chapter 3 of the Rules for Operations of MMF, etc. shall apply mutatis mutandis to the
management of securities investment corporations in cases in which said securities investment corporations
are established as funds for comprehensive securities accounts (meaning securities investment trusts set forthin the Rules for Operations of MMF, etc.). In this case, the term “MRFs” in the same chapter shall be
replaced with “securities investment corporations.”

Article 26

Privately Placed Securities Investment Corporations

The provisions of Article 21 shall apply to privately placed securities investment corporations. In this case, theterm “securities investment trusts” in said article shall be replaced with “securities investment corporations,”the term “Investment Trust Property” in said article shall be replaced with “investment corporation assets,” andthe term “Privately Placed Investment Trust Property” in said article shall be replaced with “privately placed
investment corporation assets”; and in Article 15, Paragraph 1, Item 9 as applied mutatis mutandis pursuant to
Article 15, Item 3, the phrase “for the purpose of payment of early cancellation charges, payment of dividends
for dividend reinvestment-type Investment Trusts” in said article shall be replaced with “for the purpose of
repayment of investment units.”
However, the provisions of Article 12 and Article 15 (limited to Item 9 of Paragraph 1) as applied mutatis
mutandis pursuant to Article 21 shall not apply only when a resolution is otherwise made at the Investors’
General Meeting.

Part 4 Investment Trusts, etc., Mainly Invested in Assets Other Than Securities, Real Estate, or Infrastructure
Assets
Article 27

Principles of Investment

Investment Trusts mainly invested in assets other than securities, real estate, and infrastructure assets(hereinafter “Investment Trusts Other Than Securities Investment Trusts, etc.”; the same shall apply hereinafterin the following article and Article 29) shall mainly invest in the assets set forth in Article 2, Paragraph 2, Items
1 and 2 (excluding those set forth in Article 3, Paragraph 2, Item 5 of the Regulations on REIT, etc., and those
set forth in Article 3, Paragraph 5, Item 3 of the Regulations on IIT, etc.); Items 3, 4, and 5 (excluding thosepertaining to Article 3, Paragraph 3, Item 5 of the Regulations on REIT, etc., and those pertaining to Article 3,
Paragraph 6, Item 2 of the Regulations on IIT, etc.); Items 6 and 7 of the FIEA , and Article 3, Item 2 (excludingtransactions of securities-related derivatives); Items 6, 7, and 8 (excluding those pertaining to Article 3,
Paragraph 2, Item 7 of the Regulations on REIT, etc., and those pertaining to Article 3, Paragraph 6, Item 2 of
the Regulations on IIT, etc.); and aggregate assets comprising a combination of Specified Assets (excluding
aggregate assets comprising a combination of several Specified Assets such as Securities Investment Trusts,
real estate investment trusts, and infrastructure investment trusts) set forth in Items 9 and 10 of the Cabinet
Order. An amount exceeding half the total amount of assets of said investment trusts shall be used as aninvestment in these assets. However, this shall not apply when there are unavoidable circumstances relating toinvestment, such as initial establishment of Investment Trusts Other Than Securities Investment Trusts, etc.,
early cancellation and redemption of the securities investment trusts, or in the investment environment.

Article 28

Investment Restrictions, etc. on Derivative Transactions, etc. by Investment Trusts Other Than

Securities Investment Trusts, etc. and Avoiding Concentration of Credit Risk
The provisions of Article 17, Article 17-2, and Article 17-3 shall apply mutatis mutandis to investment
restrictions, etc. on Derivative Transactions, etc., conducted by Investment Trusts Other Than Securities
Investment Trusts, etc. and investment restrictions for avoiding concentration of credit risks.
Article 29

Instructions for Management of Investment Trusts Other Than Securities Investment Trusts, etc.

1. The provisions of Article 4 through Article 9 and Article 15 shall apply mutatis mutandis to instructions onthe management of Investment Trusts Other Than Securities Investment Trusts, etc. In this case, the term
“Investment Trust Property” in said article shall be replaced with “assets of Investment Trusts Other Than
Securities Investment Trusts, etc.”
2. Among the transactions set forth in Article 15 as applied mutatis mutandis pursuant to the preceding
paragraph, transactions related to securities set forth in the FIEA shall be, in principle, within an amount lessthan one half of the total amount of assets of Investment Trusts Other Than Securities Investment Trusts, etc.
3. With regard to investment targets other than the main investment targets set forth in Article 27, instructions
for the management of Investment Trusts Other Than Securities Investment Trusts, etc. shall be as set forthin the Regulations on REIT, etc., and the Regulations on IIT, etc., in addition to those set forth in thepreceding two paragraphs.

Article 30

Special Provisions on Matters concerning Management of Investment Corporations and Privately

Placed Investment Trusts
1. The provisions of Article 27 shall apply to Investment Trusts other than Investment Corporations andprivately placed securities investment trusts whose main investment targets are assets other than securities,
real estate, or infrastructure assets.
2. The provisions of Article 4 through Article 9 and Article 15 as applied mutatis mutandis pursuant to thepreceding article shall apply mutatis mutandis to Investment Trusts other than Investment Corporations andprivately placed securities investment trusts whose main investment targets are assets other than securities,
real estate, or infrastructure assets, and the provisions of Paragraph 2 of said article shall apply totransactions said Investment Corporations, etc. may conduct.
However, the provisions of Article 15 as applied mutatis mutandis pursuant to this paragraph shall not apply
to cases in which any other resolution has been made at the Investors’ General Meeting.
3. The provisions of Paragraph 3 of the preceding article shall apply mutatis mutandis to Investment Trusts
other than Investment Corporations and privately placed securities investment trusts whose main investment
targets are assets other than securities, real estate, or infrastructure assets.

Part 5

Others

Article 31

By-laws

Necessary matters for the enforcement of these Rules shall be stipulated in the By-laws.

Article 32

OthersAny matters not provided for in these Rules regarding management of the Investment Trust Property or
investment corporation assets, etc. may be decided by resolution of the Board of Directors.
Article 33

Delegation to Competent Committee

1. The Board of Directors shall be entitled to delegate to the Self-regulation Committee the authority to amend
any By-laws relating to these Rules.

2. The Self-regulation Committee shall promptly report to the Board of Directors any decision(s) made (limited
to those deemed necessary by the Board of Directors) concerning any delegated matters.

Supplementary Provisions
1. These Rules shall come into effect on April 1, 2004.
2. For securities investment trusts established as of June 30, 1999 and for which a closed-end foreign securities
investment corporation is to be incorporated in the investment trust contract, the provisions of Article 12
shall not apply to investment securities of said foreign securities investment corporations until the end of thetrust period of said securities investment trust (until the end of the trust period in the existing investment trust
contract), and said securities investment trusts shall be treated as shares as before.

Supplementary ProvisionThis amendment shall come into effect on May 25, 2004.

Supplementary ProvisionThis amendment shall come into effect on July 16, 2004.

Supplementary Provisions
This amendment shall come into effect on November 19, 2004.
However, the amended provisions of Article 11 shall come into effect from the date of commencement oftransactions on the JASDAQ Securities Exchange (Inc.)

Supplementary ProvisionThis amendment shall come into effect on March 18, 2005.

Supplementary ProvisionThis amendment shall come into effect on May 24, 2006.

Supplementary ProvisionThis amendment shall come into effect on June 19, 2006.

Supplementary ProvisionThis amendment shall come into effect on December 15, 2006.

Supplementary ProvisionThis amendment shall come into effect on January 19, 2007.

Supplementary ProvisionThis amendment shall come into effect on April 20, 2007.

Supplementary Provisions
This amendment shall come into effect on September 30, 2007.
However, securities investment trusts prescribed in the former Article 3 existing at the time of amendment(excluding those falling under securities investment trusts set forth in the new Article 3 after amendment) shallbe deemed to be securities investment trusts prescribed in the new Article 3, and Investment Trusts Other Than
Securities Investment Trusts, etc. falling under the former Article 27 (excluding those falling under securities
Investment Trusts Other Than Securities Investment Trusts, etc. set forth in the new Article 27 after
amendment) shall be deemed to be Investment Trusts Other Than Securities Investment Trusts, etc. prescribedin the new Article 27.
Supplementary ProvisionThis amendment shall come into effect from the date of approval on the amendment of the Operational Rules
by the competent government agency (March 31, 2008).
Supplementary ProvisionThis amendment shall come into effect on June 20, 2008.

Supplementary ProvisionThis amendment shall come into effect on July 18, 2008.

Supplementary ProvisionThis amendment shall come into effect on October 1, 2008.

Supplementary Provisions
1. This amendment shall come into effect on January 16, 2009.
However, the provisions then in force may be applied to securities investment trusts existing at the time ofsuch revision.
2. Short-term commercial and industrial bonds stipulated in Article 38 of the Supplementary Provisions of the
Shoko Chukin Bank Act (Act No. 74 of 2007) shall be deemed to be short-term corporate bonds stipulated in
Article 22, Paragraph 1, Item 2 (a).

Supplementary ProvisionThis amendment shall come into effect on March 19, 2009.

Supplementary ProvisionThis amendment shall come into effect on October 14, 2010.

Supplementary ProvisionThis amendment shall come into effect on February 17, 2011.

Supplementary ProvisionThis amendment shall come into effect on January 4, 2013.

Supplementary Provisions
This amendment shall come into effect on December 1, 2014.
However, the provisions of Article 17-2 and Article 17-3 shall not apply to Investment Trusts existing at thetime of amendment of these Rules for a period of five years from the effective date. This shall not apply to cases
in which reasonable methods prescribed in said article have been set forth for such Investment Trusts.
* The amended provisions are as follows:(1) Article 12, Item 2 has been amended.
(2) Paragraph 1 of Article 17 has been amended, and Paragraph 2 of Article 17 has been newly established.
(3) Articles 17-2 and 17-3 have been newly established.
(4) Article 19, Paragraph 1, Item 2 has been amended; Items 3 through 5, the former Paragraph 2 and Paragraph 3 have been
deleted; Paragraph 4 has been moved up to Paragraph 2.
(5) Paragraph 2 of Article 23 has been newly established.
(6) Article 28 has been amended.

Supplementary Provisions
This amendment shall come into effect on December 1, 2014.
* The amended provisions are as follows:
Article 22, Paragraph 1, Item 2 (f) has been newly established.

Supplementary Provisions
This amendment shall come into effect on March 1, 2015.
* The amended provisions are as follows:
Article 8-2, the introductory clause in Paragraph 1, Item 2 and Paragraph 2 are amended.

Supplementary Provisions
This amendment shall come into effect on July 16, 2015.
* The amended provisions are as follows:(1) Article 12, Paragraph 1, Item 2 has been amended; Item 3 has been newly established, and former Items 3 through 4 has
been changed to Items 4 through 5.
(2) Article 21, Item 2; Article 22, Paragraph 1, Items 2 and 4; Article 22, Paragraphs 2 and 4; Article 24; Headings for Part 4;
Article 27 have been revised.
(3) Article 29, Paragraph 3 has been newly established.
(4) Paragraphs 1 and 2 of Article 30 have been amended, and Paragraph 3 has been newly established.

Supplementary Provisions
This amendment shall come into effect on June 13, 2018.
* The amended provisions are as follows:
Article 15, Paragraph 1, Item 9 has been amended.

Supplementary Provisions
This amendment shall come into effect on January 1, 2022.
However, with regard to Article 2-4, Item 1, the Management Company, etc. shall formulate a reasonable
implementation plan in consideration of its own situation in the construction of the system and implement theplan by the completion date specified in the implementation plan.
The provisions after amendment may be applied before the date of implementation at the discretion of theManagement Companies, etc.
* The amended provisions are as follows:(1) Article 2-4 is newly established, and the requirements relating thereto (Article 8-2, Paragraph 5, Item 2) have been
amended.
(2) The cited section has been amended in connection with amendment of the By-laws.
(Unexecuted portion: portion shown in red in the text)

Supplementary Provisions
This amendment shall come into effect on January 21, 2021.
* The amended provisions are as follows:
Article 17-2, Paragraph 3 (2) Addition of Proviso has been added.

By-laws on Management of Investment Trusts, etc.
Established on March 19, 2004
Revised on May 25, 2004
Revised on June 9, 2005
Revised on May 24, 2006
Revised on September 21, 2007
Revised on November 16, 2007
Revised on January 16, 2009
Revised on March 19, 2009
Revised on February 17, 2011
Revised on July 17, 2014
Revised on November 20, 2014
Revised on December 18, 2014
Revised on July 16, 2015
Revised on June 13, 2018
Revised on June 10, 2020

Article 1

Purpose

These By-laws provide for matters necessary for enforcement of the Rules on Management of Investment
Trusts, etc. (hereinafter referred to as the “Rules”) pursuant to the provisions of Article 31 of the Rules.

Article 1-2

Supervision by the Board of Directors, etc. for Liquidity Risk Management

The measures provided in the By-laws as prescribed in Article 2-4, Item 2 of the Rules shall be as follows:(1) To ensure appropriate implementation of Liquidity Risk Management, a Liquidity Risk Manager who
evaluates whether the Liquidity Risk Management System is appropriate and effective shall be
appointed. This person shall periodically report to the Board of Directors, etc. on the status of the
management of liquidity risk and whether additional liquidity analysis, etc. has been implemented
appropriately as necessary, and confirm that the company’s management system is appropriate andeffective.
(2) When the Board of Directors, etc. judges that the Company’s Liquidity Risk Management System isinadequate, the Company shall instruct the person in charge to take necessary measures such as
appropriately reviewing the Liquidity Risk Management System and confirm the status of
implementation thereof.
(3) When verifying by the Board of Directors, etc. that its Liquidity Risk Management System is appropriate
and effective, the following matters shall be taken into consideration:(a) When it is necessary to use additional analysis and control tools, etc., are sufficient resources such as
budget and personnel available?
(b) In the event that a short-term response is required based on a request from the relevant authorities,
etc., are sufficient resources such as budget and personnel available?
(c) Is there a system in place to ensure that reports are made promptly within the company, tosupervisory authorities, and to beneficiaries, depending on the situation?
(d) With regard to the use of various Liquidity Risk Management Tools, etc., has a designated person
been appointed to decide on the commencement of use thereof?

(e) Are the policies for exercising various Liquidity Risk Management Tools, such as the establishment
and suspension of early cancellation, clearly documented?
Article 1-3

Retrospective Check System

The retrospective check system specified in the By-laws provided in Article 6, Item 2 of the Rules shall be asystem that allows for the preservation and retrospective verification of the operation plan, the execution of theoperation, and the reasons when the execution is not in accordance with the operation plan.

Article 1-4

Requirements, Procedures, etc. for Ordering Division to Handle Multiple Orders as a Batch

Order
The requirements, procedures, etc. for handling orders as a Batch Order by the ordering division specified in
the By-laws provided in Article 8-2, Paragraph 1, Item 2 of the Rules shall include any of the following:(1) When the ordering division is given discretion to execute(a) When adding an order after placing a Batch Order, if the initial Batch Order is not yet executed, theorder can be added at any time.
(b) When adding an order after placing a Batch Order, if the initial Batch Order contains partial
execution, the execution up to the said additional order shall be allocated among the Investment Trust
Property bundled in the initial Batch Order, and then a new Batch Order shall be placed for theunexecuted portion of the initial Batch Order and the additional order.
(2) When the ordering division is not given discretion to execute
Only for buy/sell orders for Securities, etc. that have been received the same time (meaning thoseprescribed in Article 8-2 of the Rules; the same shall apply hereinafter in Article 1-5).

Article 1-5

Method of Calculating Average Unit Price for Batch Orders

The calculation method specified in the By-laws as prescribed in Article 8-2, Paragraph 3 of the Rules shall be
the method of dividing the total contracted amount for a Batch Order by the total contracted volume.
In the event that any fraction arises in the price calculated by such method of calculation, the number of decimal
places and the method of treatment of such fraction shall be decided in advance with the Type I Financial
Instruments Business Operator (meaning a person engaged in the financial instruments business as defined in
Article 28, Paragraph 1 of the Financial Instruments and Exchange Act ( Act No. 25 of 1948; hereinafterreferred to as the “FIEA” )), or a corporation established under the laws of a foreign country and similar thereto.

Article 1-6

Allocation Method for Batch Orders

1. The allocation method specified in the By-laws as prescribed in Article 8-2, Paragraph 4 of the Rules shall be
the method set forth in the following items with respect to the following orders:(1) Purchase orders for Securities, etc.: Any of the methods listed in (a) or (b) below(a) Calculated by multiplying the order volume for each Investment Trust Property by the ratio obtainedby dividing the total contracted volume for the Batch Order by the total order volume.
(b) Calculated by multiplying the total contracted volume by the ratio of the total net asset value of theInvestment Trust Property in question to the total net asset value of the multiple investment trustproperties pertaining to the Batch Order.
Provided, however, that the dividend quantity in case of distribution based on such a method shall not
exceed the ordered quantity of said Investment Trust Property.
(2) Sales orders for Securities, etc.: Any of the methods listed in (a) or (b) below(a) The method listed in (a) of the preceding item(b) Calculated by multiplying the total contracted volume by the ratio of the holding volume of theInvestment Trust Property in question to the total holding volume of the securities pertaining to thesale of the multiple Investment Trust Properties pertaining to the Batch Order.
Provided, however, that the dividend quantity in case of distribution based on such a method shall not
exceed the ordered quantity of said Investment Trust Property.
(3) Other than those in the preceding two items, any other method in which fairness among funds is taken
into consideration as prescribed by internal rules.
2. Rounding as provided in Article 8-2, Paragraph 4 of the Rules shall be as follows:(1) When the number of dividend quantity calculated by the method set forth in the preceding paragraph isless than the number of trading units, the method of rounding off the number shall be the method set
forth in (a) or (b) below:(a) Truncating(b) Rounding(2) Allocation of the difference between the total number of units truncated based on the provisions in thepreceding item or the total contracted volume resulting from rounding and the total number of dividend
quantity to each Investment Trust Property shall be done by the Management Company in advance,
based on reasonable standards for priority and other necessary matters set forth in its internal rules anddistribute such amount based on such standards.

Article 1-7

The provisions of the preceding three Articles shall apply mutatis mutandis to the case where

the management of the Batch Order for Investment Trust Property and Investment Property other thanInvestment Trust Property (meaning Investment Property as defined in Article 35, Paragraph 1, Item 15 of the
FIEA; the same shall apply hereinafter) or Investment Property (limited to cases where Investment Trust
Property is included) and Foreign Investment Property (meaning Foreign Investment Property as defined in
Article 171, Paragraph 1, Item1 of the Cabinet Office Order on Financial Instruments Business, etc. (Cabinet
Office Ordinance No. 52 of 2007); the same shall apply hereinafter) is conducted. In this case, the term
“Investment Trust Property bundled” in Article 1-3, Item 1 shall be deemed to be replaced with “investment
assets or foreign investment assets bundled,” the term “each Investment Trust Property” in Article 1-5,
Paragraph 1, Item 1 (a) shall be deemed to be replaced with “each investment asset or foreign investment
asset,” the term “multiple Investment Trust Properties” in the same item (b) and the same paragraph, Item 2 (b)shall be deemed to be replaced with “multiple investment assets or foreign investment assets,” the term “theInvestment Trust Property” in the same item (b) shall be deemed to be replaced with “the investment assets orforeign investment assets,” and the term “each Investment Trust Property” in the same paragraph, Paragraph 2,

Item 2 shall be deemed to be replaced with “the investment assets or foreign investment assets.”

Article 2

Requirements for Unlisted and Unregistered SharesThose which satisfy the requirements provided in the By-laws as prescribed in Article 11, Item 2 of the Rules
shall satisfy any of the requirements listed in the following items:(1) It shall be issued by any company that has submitted a securities report (including a Securities
Registration Statement provided in Article 5 of the FIEA) under the provisions of Article 24 of the FIEA
and such securities report has an audit report attached the overall opinion of which says such securities
reports are appropriate.
(2) The financial statements, etc. are audited under the Companies Act (Act No. 86 of 2005) by a certified
public accountant or an auditing firm and accompanied by an audit report to the effect that the overall
opinion thereof is proper or lawful and shall be issued by a company to which such financial statements,
etc. are available.
(3) The financial statements, etc. audited by a certified public accountant or an auditing firm in accordancewith the provisions of the FIEA or the Companies Act and accompanied by an audit report to the effectthat the overall opinion of the certified public accountant or the auditing firm is appropriate or legal shallbe available and shall be issued by a company which is expected to be disclosed continuously in the
future.

Article 3

Requirements for Foreign Investment Trust Securities

Foreign investment trust securities which conform to the requirements specified in the By-laws as prescribed in
Article 12, Paragraph 1, Item 5 and Article 22, Paragraph 1, Item 1 of the Rules shall conform to the following
requirements:(1) They have been established under the laws of a country or territory in which:(a) Laws and regulations have been established with regard to a system for foreign investment trust
securities(b) Laws and regulations, etc. regarding disclosure pertaining to foreign investment trust securities
are in place(c) There is a supervisory government agency or any agency equivalent thereto which supervises theIssuer of foreign investment trust securities.
(d) Foreign investment trust securities shall be settled via purchase money, sale money, or fruits, etc.
(2) They are foreign investment trust securities (excluding those listed or registered (hereinafter referred to as“listed, etc.”) in foreign financial instruments markets (as defined in Article 2, Paragraph 8, Item 3 (b) of
the FIEA) or over-the-counter markets (hereinafter referred to as “Foreign Market”) or which arescheduled to be traded on a Foreign Market) that conform to the followings:(a) The total amount of net assets of the foreign investment trust or foreign investment corporation(hereinafter referred to as the “Foreign Investment Trust, etc.”) shall be 100 million yen or more(b) The total amount of the equity or net worth of the operating company or the managementcompany shall be 50,000,000 yen or more(c) The other party shall have entrusted the business of custody of assets to a bank or a trust company(d) With respect to the short selling of securities (limited to real securities), the total market value ofthe securities for which short selling has been made shall not exceed the total amount of net
assets.
(e) Borrowings shall not exceed 10% of total net assets (excluding cases where the percentage
temporarily exceeds 10% due to mergers, etc.), and(f)no more than 50% of the total number of issued shares (including investment securities issued byinvestment corporations) by a single issuing company (including investment corporations) shallbe invested in.
Provided, however, that in the case of a trust contract type Investment Trust, the total amount ofshares incorporated in all Investment Trusts for which the operating company or the managementcompany of such Investment Trust gives investment instructions shall not exceed 50% of the total
number of issued shares(g) In the case of investment in assets with insufficient liquidity such as privately placed shares,
unlisted shares, securitized products with insufficient liquidity, a method shall be put in place toensure price transparency
However, this shall not apply to those which have an investment policy that clearly stipulates thatthe amount of any assets with insufficient liquidity to be incorporated shall be 15% or below.
(h) The foreign investment corporation shall not acquire securities issued by itself.
(i)

In cases where the investment trust securities to be incorporated are foreign investment trust
beneficiary certificates, they shall be foreign investment trusts of which the operating company or
the management company prohibit the transactions for the purpose of benefiting third party otherthan itself or the investment trust beneficiary certificates and transactions fail to protect
beneficiaries or are detrimental to the propriety of the investment trust.

(j)

In cases where the investment trust securities to be incorporated are foreign investment trust
certificates, they shall be foreign investment corporation of which the operating company
prohibits the transactions for the purpose of benefiting itself or third party and transactions fail toprotect investors or are detrimental to the propriety of assets of investment corporation.

(k) The specified method of purchase in the countries or regions where setting or establishment has
been done for the reselling from the investors shall be made clear.
(l)Description of foreign investment trust beneficiary certificates or the foreign investment
corporation shall be disclosed to the investors and the supervisory government agency in the
countries or regions where setting or establishment has been done.
Provided, however, that this shall not apply to cases where disclosure is made under the FIEA.

(m) It shall be audited by an independent auditor regarding the financial statements of the Foreign
Investment Trust or the Foreign Investment Corporation(n) In the event that the amount calculated by a reasonable method determined in advance by theoperating company or the investment management company as the amount corresponding to therisk that may arise due to fluctuations in interest rates, currency prices, quotations in financial

instruments markets, or other indices, or for any other reasons, exceeds the net assets, derivativetransactions, etc. (meaning “Derivative Transactions, etc.” as prescribed in Article 17 of theRules; the same shall apply hereinafter) shall not be conducted.
Provided, however, in cases where the relevant risks that may arise in relation to Derivative
Transactions, etc. can be properly ascertained, such as by being able to obtain the daily base valueof the Investment Trust Property of the relevant foreign investment trust or the investment assetsof the relevant foreign investment corporation, the application of this item to cases where
Derivative Transactions, etc. are properly managed in domestic investment trust securities inaccordance with Article 17 of the Rules may be optional.
(o) Transactions which would be contrary to the reasonable methods specified in advance by theoperating company or the management company as a method for properly managing Credit Risk
(meaning the risk which may occur with respect to owned securities or other assets due to defaultof the counterparty of the transaction or for any other reason. ) shall not be conducted.
Provided, however, that if the exposure in such foreign investment trust securities can be looked
through, the operation of this item in the case where Credit Risk is properly managed in domestic
investment trust securities in accordance with Article 17-2 and 17-3 of the Rules shall be optional.

Article 3-2

Exception to Restrictions on Incorporation of Investment Trust Securities

The Investment Trust Securities specified in the By-laws as prescribed in Article 12, Paragraph 2 of the Rules
shall be as follows:(1) Certificates which are listed, etc. on Financial Instruments Exchange Market (meaning a financial
instruments market as defined in Article 2, Paragraph 17 of the FIEA) or a Foreign Market, and isavailable for sale at any time on such exchange market (except for a temporary decline in liquidity due tosudden market change, etc.)(2) Securities which become to be categorized as Investment Trust Securities through conversion, etc. ofshares, etc. already incorporated in the Investment Trust Property

Article 3-3

Requirements for Beneficiary Certificates, etc. of Beneficiary Certificate Issuing Trusts

Those which satisfy the requirements provided in the By-laws as prescribed in Article 22, Paragraph 1, Item 2(e) of the Rules shall satisfy the requirements listed in the following items:(1) Prices are published and can be measured at market value.
(2) The status of operations at the time of settlement of accounts is disclosed, and such information isavailable.

Article 4

Limitation on Borrowing of Funds, etc.

The limit to be provided in the By-laws as prescribed in Article 15, Paragraph 1, Item 9 of the Rules shall be theperiod and limit to be provided in each of the following items:(1) When borrowing for the purpose of providing funds for payment of early cancellation charges of theInvestment Trust Property (including repayment of funds borrowed for payment of early cancellation

charges), the period until the date of delivery of the sale proceeds of securities, etc. (meaning securities
and financial instruments; the same shall apply hereinafter ) held in the Investment Trust Property fromthe date of payment of early cancellation charges to the customer at the time of cancellation of theinvestment trust until the date of deposit of early cancellation charges of the securities, etc., or until thedate of deposit of redemption money of securities, etc. shall be five business days or less; the total
amount of the proceeds from the sale, early cancellation, and redemption of such securities, etc. shall be
the limit of the balance of borrowings.
(2) When borrowing for the purpose of providing funds to meet the payment of dividends for dividend
reinvestment-type Investment Trusts, the limit on the outstanding balance shall be the amount of
reinvestment of dividends, within a period from the dividend payment date to the next business day.
(3) When borrowing for the purpose of providing funds in connection with accident handling (limited tothose which do not cause the Investment Trust Property to bear the borrowing interest) this shall beborrowings for unavoidable accident handling which are considered to contribute primarily to investors,
and the borrowing in this case shall be the borrowing period and the borrowing limit within the scopenecessary for accident handling of the Investment Trust Property. Examples of such loans are as follows:(a) In the event that the proceeds of sale of an incorporated investment trust are expected to be depositedin the payment of the purchase price of another brand in the reclassification of any issue of a fund offunds, borrowings for the purpose of making any financing incidental to delay in receipt of suchproceeds of sale(b) In the event that the payment of dividend from an incorporated investment trust is expected to bedeposited in the payment of dividend for a fund of funds, borrowings for the purpose of making any
financing incidental to the delay in receipt of such dividend(c) In the event that the amount of margins received is expected to be funded on that day, borrowing forthe purpose of making any financing incidental to the delay in receipt of such margins

Article 5

Maximum Amount of Foreign Exchange Purchase Reservation, etc. for Investment Trusts for

the Purpose of Hedging
1. The acquisition price of assets denominated in foreign currencies and other money, etc. provided for in the
By-laws as prescribed in Article 16, Item 1 of the Rules shall be as follows:(1) Proceeds from foreign currency-denominated assets invested in Trust Property (including planned
acquisitions)(2) Money necessary for conducting transactions such as margin money and option fees denominated inforeign currencies pertaining to Derivative Transactions, etc. conducted in Trust Property (Derivative
Transactions, etc. prescribed in Article 17 of the Rules)(3) Expenses to be paid in foreign currency for Trust Property(4) Settlement price for sales reservations
2. The maximum amount to be set forth in the By-laws as provided in Article 16, Item 1 of the Rules shall be theamount obtained by deducting the total market value of assets denominated in foreign currencies held bysuch Trust Property from the amount available for incorporation of assets denominated in foreign currencies

in the Trust Property at the time of execution of the reservation. However, any reservation for which areversing trade contract has been executed (for which the currency and delivery date are the same) shall be
deducted from the balance of the reservation.

Article 6

Maximum Amount of Foreign Exchange Selling Reservation, etc. for Investment Trusts for the

Purpose of Hedging
1. The held assets denominated in foreign currencies and other money, etc. set forth in the By-laws as provided
in Article 16, Item 2 of the Rules shall be as follows:(1) Foreign currency-denominated assets held in Trust Property (including those for which acquisition iscertain)(2) Money to be received by the Trust Property such as interest and dividends, etc. pertaining to assets
denominated in foreign currencies held by the Trust Property during the trust period (including thosescheduled to be received)(3) Settlement amount for purchase reservation
2. The maximum amount to be set forth in the By-laws as provided in Article 16, Item 2 of the Rules shall be thetotal amount of the market value of assets denominated in foreign currencies held by the Trust Property at thetime of execution of the reservation plus interest and dividends, etc. that such Trust Property is expected toreceive during the trust period. However, any reservation for which a reversing trade contract has been
executed (for which the currency and delivery date are the same) shall be deducted from the balance of thereservation.
3. When calculating the total market value of assets denominated in foreign currencies prescribed in thepreceding paragraph, bonds to be redeemed during the trust period may be calculated with the redemption
amount in lieu of the market value of such bonds.

Article 6-2

Method of Investment Restrictions for Derivative Transactions, etc.

The methods to be specified in the By-laws as prescribed in Article 17, Paragraph 2 of the Rules shall be as
follows.
(1) Simplified method(2) Standard method(3) VaR method

Article 7

Investment Trusts Utilizing Derivative Transactions, etc. for Hedging Purposes

The investment trusts specified in the By-laws as prescribed in Article 18, Paragraph 2 of the Rules shall be thefollowing investment trusts:(1) Long-Term Bond Investment Trust (meaning the long-term bond investment trust established in 1961)(2) Medium-Term Government Bond Funds(3) Asset Accumulation Funds(4) Interest Funds(5) Free Financial Funds

(6) Asset Accumulation Benefit Funds

Article 8

Other Requirements Specified in Article 22, Paragraph 1, Item 6 of the Rules

The requirements specified in the By-laws as prescribed in Article 22, Paragraph 1, Item 6 of the Rules shall be
as follows:(1) Mutual or circular holding among investment trusts shall not be conducted.
(2) A fund of funds must not be invested in (excluding when said fund of funds is an investment trust as
defined in Article 12, Item 1 and 2 of the Order for Enforcement of the Act on Investment Trusts andInvestment Corporations and mother fund (including foreign investment trusts that are similar tothese) ).
(3) The amount that a single Management Company (including securities investment corporations to which
the said Management Company provides investment instructions) may invest in a single investment trust
security shall not exceed 50% of the total net asset value of the Investment Trust or Investment
Corporation being invested in without the consent of the Management Company that is providing
investment instructions to the Investment Trust or Investment Corporation associated with theinvestment trust security being invested in.

Supplementary Provision
These By-laws shall come into effect on April 1, 2004.

Supplementary ProvisionThis amendment shall come into effect on May 25, 2004.

Supplementary ProvisionThis amendment shall come into effect on June 9, 2005.

Supplementary Provisions
1.

This amendment shall come into effect on May 24, 2006.

2.

The audit provided for in Article 2, Item 2 of the revised Act shall include the audit conducted inaccordance with the former Act on Special Provisions on the Commercial Code Concerning Audits of Stock
Companies (Act No. 22 of 1974) with respect to companies that actually existed at the time of theenforcement of the Companies Act.

Supplementary ProvisionThis amendment shall come into effect on September 30, 2007.

Supplementary ProvisionThis amendment shall come into effect on November 16, 2007.

Supplementary ProvisionThis amendment shall come into effect on January 16, 2009.

Supplementary ProvisionThis amendment shall come into effect on March 19, 2009.

Supplementary ProvisionThis amendment shall come into effect on February 17, 2011.

Supplementary Provisions
This amendment shall come into effect on December 1, 2014.
* The amended provisions are as follows:
Article 6-2 has been newly established.

Supplementary Provisions
This amendment shall come into effect on December 1, 2014.
However, the provisions of Article 3, Item 2, (o) shall not apply to investment trusts existing at the time ofrevision of these By-laws until the day on which five years have passed from the effective date. This shall not
apply to cases in which reasonable methods prescribed in said article have been set forth for such Investment
Trusts.
* The amended provisions are as follows:
Article 3, Item 2 (n) and (o) have been newly established.

This amendment shall come into effect on March 1, 2015.
* The amended provisions are as follows:
Article 1-3, Item 2, and Article 1-5, Paragraph 1, Items 1 and 2 have been revised.

Supplementary Provisions
This amendment shall come into effect on July 16, 2015.
* The amended provisions are as follows:
The introductory clause in Article 3 has been revised.

Supplementary Provisions
This amendment shall come into effect on June 13, 2018.
* The amended provisions are as follows:
Article 4, Item 3 has been newly established.

Supplementary Provisions
This amendment shall come into effect on January 1, 2022.
* The amended provisions are as follows:
Article 1-2 has been newly established. The former Articles 2-1 through 2-6 have been shifted to Articles 2-2 through 2-7.

Committee Resolutions concerning Management of Investment Trusts, etc.
Established on March 19, 2004
Revised on March 9, 2006
Revised on July 10, 2008
Revised on September 19, 2008
Revised on July 17, 2014

Based on the Rules on Management of Investment Trusts, etc., (hereinafter referred to as the “Rules”) thiscommittee resolution prescribes the matters entrusted to the Self-regulation Committee.

1. The shares specified by the Self-regulation Committee stipulated in Item 2 of Article 11 of the Rules shall be
the following shares:(1) Pink Sheet Stocks in U.S.A.
(2) OTC Bulletin Board Stocks in U.S.A.

2. The countries specified by the Self-regulation Committee stipulated in Article 17-2, Paragraph 2, Item 1 of
the Rules shall be the following countries (including regions): In such countries, efforts shall be made to
develop internal administrative systems to enable appropriate response to changes in the environment, etc.
(1) Japan(2) Ireland(3) United States of America(4) The Republic of Italy(5) The Commonwealth of Australia(6) The Republic of Austria(7) Kingdom of the Netherlands(8) Canada(9) United Kingdom of Great Britain and Northern Ireland(10) The Republic of Singapore(11) Swiss Confederation(12) Kingdom of Sweden(13) Spain(14) Kingdom of Denmark(15) Federal Republic of Germany(16) New Zealand(17) Kingdom of Norway(18) Republic of Finland(19) Republic of France(20) Kingdom of Belgium(21) The Portuguese Republic

(22) The Grand Duchy of Luxembourg(23) Hong Kong Special Administrative Region

Supplementary ProvisionThis Sub-Committee resolution shall come into effect on April 1, 2004.

Supplementary ProvisionThis amendment shall come into effect on March 9, 2006.

Supplementary ProvisionThis amendment shall come into effect on July 18, 2008.

Supplementary ProvisionThis amendment shall come into effect on October 1, 2008.

Supplementary Provisions
This amendment shall come into effect on December 1, 2014.
However, this shall not apply to investment trusts already in existence at the time the amendment of thiscommittee resolution comes into effect for the first five years after the effective date thereof. This shall not
apply to cases where reasonable methods as stipulated in Articles 17-2 and 17-3 of the Rules are provided forsuch investment trusts.
* The amended provisions are as follows:
Paragraph 2 has been newly established.

Rules for Operations of MMF, etc.
Established on March 19, 2004
Revised on July 16, 2004
Revised on November 19, 2004
Revised on March 18, 2005
Revised on May 24, 2006
Revised on June 19, 2006
Revised on September 21, 2007
Revised on November 16, 2007
Revised on December 21, 2007
Revised on September 19, 2008
Revised on January 16, 2009
Revised on October 14, 2010
Revised on December 20, 2012
Revised on July 21, 2016

Chapter 1:

General Provisions

Article 1

Purpose

These Rules stipulate the matters concerning operation, valuation of incorporated assets and sales, etc., ofmoney management funds (hereinafter referred to as “MMF”) and the bond investment trust prescribed in
Article 25, Item 2 of the Regulation for Enforcement of the Act on Investment Trusts and Investment
Corporations (Order of the Prime Minister’s Office No. 129, of 2000) (limited to those for which theaccounting period is one day), which are acquired or held for an individual who is substantially a natural person
and has beneficial interests for the purpose of paying or receiving money in the purchase and sale of Securities
or in any other transactions between a Right Holder and a Financial Instruments Business Operator, etc.
(hereinafter referred to as “MRF”) (Even if it has been acquired or held by corporations, any funds are included
if an individual who is substantially a natural person makes investment judgement on acquirement/partial
cancellation thereof.) The Rules aim to bring about a stable operation of MMF and MRF (hereinafter referred toas “MMF, etc.”), thereby protecting investors.

Chapter 2:

Special Provisions for MMF

Article 2

MMF Investment Targets

1. Securities which MMF may invest in shall be the following securities:(1) National government bonds(2) Municipal bonds(3) Bonds issued by a corporation under special laws(4) Specified corporate bonds prescribed in the Act on the Securitization of Assets (Act No. 105 of 1998)(excluding specified corporate bonds with warrants for new preferred equity and convertible specified
corporate bonds in cases where the Asset Securitization Plan does not stipulate that only the warrants for
new preferred equity may be transferred.)(5) Corporate bonds (excluding corporate bonds with stock warrants, which are a combination of a warrant
certificate and a corporate bond, and limited to corporate bonds with stock options, which are specified inadvance that assets stipulated in Article 236, Paragraph 1, Item 3 of the Companies Act (Act No. 86 of2005) are the corporate bonds with said stock options and such corporate bonds stock options cannot exist
independently (including corporate bonds with stock options stipulated in Article 341-3, Paragraph 1,
Items 7 and 8 of the Old Commercial Code prior to the enforcement of the Companies Act), andconvertible corporate bonds.)(6) Commercial Papers (hereinafter referred to as “CP”)(7) Securities or certificates issued by foreign countries or foreign persons that have the characteristics of the
securities described in above 6 items.
(8) Securities or certificates issued by foreign persons that indicate the beneficiary rights or similar rights of atrust that entrusts the loan claims held by persons engaged in banking business or persons otherwise who
lends money as a business (hereinafter referred to as “Foreign Loan Trust Beneficiary Securities”)(9) Certificates of Negotiable Deposit issued by a foreign corporation (hereinafter referred to as “ForeignCD”)(10) Beneficial Interest of Monetary Claims Trust (among beneficiary certificates of trust issuing beneficiary
certificates as stipulated in Article 2, Paragraph 1, Item 14 of the Financial Instruments and Exchange Act(Act No. 25 of 1948; hereinafter referred to as the “FIEA”) and beneficiary rights of trust as stipulated in
Article 2, Paragraph 2, Item 1 of the said Act, refer to a beneficial interest of a trust in which monetaryclaims of a bank, cooperative structured financial institution defined in Article 2, Paragraph 1 of the Act
on Preferred Equity Investment by Cooperative Structured Financial Institutions (Act No. 44 of 1993),
and financial institutions listed in the items of Article 1-9 of the Order for Enforcement of the FIEA (OrderNo. 321 of 1965), or a trust company is entrusted (limited to a trust in which the beneficiary at the time of
conclusion of the contract for the trust is the settlor ), and securities or certificates issued by foreigncountries or foreign persons which have the same characteristics, or which have the same characteristics
of rights to foreign persons.)(11) Designated money trust (meaning the beneficiary rights of a money trust with a contract to replenish theprincipal as stipulated in Article 22, Paragraph 1, Item 2 of the Regulation for Enforcement of the Act on
Investment Trusts and Investment Corporations and with the characteristics of beneficiary certificates of atrust issuing beneficiary certificates as stipulated in Article 2, Paragraph 1, Item 14 of the FIEA or thecharacteristics of beneficiary rights of a trust as stipulated in Paragraph 2, Item 1 of the same article ; thesame shall apply hereinafter)
2. In addition to the securities stipulated in the preceding paragraph, the assets which the MMF may invest in
shall be the following assets (hereinafter referred to as “Financial Instruments”):(1) Deposits(2) Call Loans(3) Bills to be sold in the bill discount market (hereinafter referred to as “Discounted Bills.”)
3. Transactions for which investment instructions may be given on MMF shall be as follows:(1) Loans of securities(2) Bond lending transactions(3) Repurchase agreement

(4) Borrowing of funds (limited to borrowing of funds for payment of cancellation fees or payment of
distributions)(5) Derivative Transactions, etc., stipulated in Article 18, Paragraph 1 of the Rules on Management of
Investment Trusts, etc. (limited to cases where such transactions are used for the purpose of hedging)
4. Borrowing of funds specified in Item 4 of the preceding paragraph shall be allowed to be made within the
maximum amount, etc. stipulated in the By-laws.
* Article 2 of the By-laws

Article 3

Scope of Incorporated Securities, etc.

1. The scope of securities which MMF may incorporate shall be the following securities among the securities
stipulated in Paragraph 1 of the preceding article:(1) Japanese government bonds, government guaranteed bonds and bonds issued by the Bank of Japan(hereinafter referred to as “Government Bonds, etc.”)(2) Securities other than the securities stipulated in the preceding item which at the time of acquisition havereceived short-term credit ratings equal to or higher than P-2 or A-2 or long-term credit ratings equal to or
higher than BBB Flat or Baa2 from two or more credit rating agencies, etc. (meaning the credit rating
agencies stipulated in Article 2, Paragraph 36 of the FIEA and specified affiliated corporations stipulated
in Article 116-3, Paragraph 2 of the Cabinet Office Ordinance on Financial Instruments Business, etc. The
same shall apply hereinafter. )(3) Among securities other than those stipulated in the preceding two items for which credit ratings have beenobtained from only one credit rating agency, etc., or for which credit ratings have not been obtained fromany credit rating agency, etc., which the investment trust management company (meaning the investment
trust management company stipulated in Article 2, Paragraph 11 of the Act on Investment Trusts andInvestment Corporations (Act No. 198 of 1951) and hereinafter referred to as the “Management
Company” ) have deemed as having the same creditworthiness as those specified in the previous item
based on the financial condition of the issuer at the time of acquisition.
2. The scope of Financial Instruments which MMF may incorporate shall be the following Financial
Instruments among the Financial Instruments stipulated in Paragraph 2 of the preceding article:(1) Financial Instruments stipulated in each item of Paragraph 2 of the preceding article collateralized withsecurities stipulated in Item 1 of the preceding paragraph or those guaranteed by the Japanese governmentor the Bank of Japan.
(2) Financial Instruments other than those specified in the preceding item that fall under any of the following
sub-items:(a) Those with short-term credit ratings equal to or higher than P-2 or A-2 or long-term credit ratingsequal to or higher than BBB Flat or Baa2 from two or more credit rating agencies, etc., at the time ofacquisition.
(b) Among the Financial Instruments other than those stipulated in sub-item (a) those which haveobtained credit ratings from only one credit rating agency, etc., or for which credit ratings have notbeen obtained from a credit rating agency, etc., which the Management Company have deemed ashaving the same creditworthiness as those specified in sub-item (a), based on the financial conditionof the issuer at the time of acquisition.

Article 4

Scope of Transactions That Can Receive Investment Instructions

The transactions stipulated in Article 2, Paragraph 3 shall be conducted within the scope of business partners ortransactions stipulated in the respective items: However, this shall not apply to transactions secured by
Japanese Government Bonds, etc., or transactions guaranteed by the government or the Bank of Japan.
(1) Loans of securities shall be made to persons who fall under any of the following:(a) Those who have received short-term credit ratings equal to or higher than P-2 or A-2 or long-term
credit ratings equal to or higher than BBB Flat or Baa2 by two or more credit rating agencies, etc.
(b) Those who have received credit ratings from only one credit rating agency, etc. or who have notreceived credit ratings from credit rating agencies, etc., and which the Management Company have
deemed as having the same creditworthiness as those specified in sub-item (a), based on the financial
condition of the issuer at the time of acquisition.
(2) For bond lending transactions, the bonds subject to such transactions fall under any of the securities
stipulated in Paragraph 1 of the preceding article or transactions with a person who falls under either
sub-item (a) or sub-item (b) stipulated in the preceding item.
(3) A repurchase agreement is one in which the securities or Financial Instruments subject to suchtransactions fall under any of the securities or Financial Instruments stipulated in Paragraph 1 or 2 of thepreceding article, or transactions with a person who falls under either sub-item (a) or sub-item (b)stipulated in Item1.

Article 4-2

Considerations regarding Rating Criteria

Considering that the rating criteria stipulated in the preceding two articles and the ratings of assets held inaccordance with these provisions are only a portion of the factors for determining the creditworthiness of thesubject of the rating, the credit rating agency shall refrain from making any mechanical use thereof and shallappropriately manage the creditworthiness and other matters in-house, taking into consideration ofcomprehensive factors including factors other than the ratings.

Article 5

Remaining Maturity of Incorporated Assets

The period from the date of delivery to the date of redemption or maturity (hereinafter referred to as“Remaining Maturity”) for any assets incorporated into MMF shall not exceed one year.

Article 6Investment Restrictions

1. Securities issued by the same corporation, etc. (meaning securities stipulated in Article 3, Paragraph 1(excluding securities stipulated in Item 1) and Financial Instruments stipulated in Paragraph 2 of the same
article (excluding Financial Instruments stipulated in Item 1); hereinafter the same shall apply in this article)
Alternatively, investment in securities, etc., handled shall be within the scope of the following amounts:(1) Among securities, etc. which have received short-term credit ratings equal to or higher than P-1 or A-1 orlong-term credit ratings equal to or higher than A3 or A- from two or more credit rating agencies, or whichhave not received credit ratings from credit rating agencies, etc., the securities etc., which theManagement Company have deemed to have the same creditworthiness as the said credit ratings shall bewithin 5% of the total net assets of such investment trust property (hereinafter referred to as the “Total Net
Assets”) at the time of acquisition of such securities, etc.
(2) The amount of securities, etc. other than those stipulated in the preceding item shall be within 1% of the
Total Net Assets at the time of acquisition of such securities, etc.
2. Of the securities, etc., stipulated in Item 1 of the preceding paragraph, investment in securities, etc. issued by
the same bank shall be within 10% of the Total Net Assets at the time of acquisition, notwithstanding theprovisions of Item 1 of the preceding paragraph. Provided, that the amount of securities, etc., other than CP,
short-term company bonds, etc., (meaning short-term company bonds as stipulated in Article 66, Item 1 of
the Act on Transfer of Company Bonds, Shares, etc. (Act No. 75 of 2001), short-term company bonds as
stipulated in Article 61-10, Paragraph 1 of the Insurance Business Act, specified short-term company bonds
as stipulated in Article 2, Paragraph 8 of the Act on Securitization of Assets, short-term bonds as stipulated in
Article 54-4, Paragraph 1 of the Shinkin Bank Act, short-term agricultural and forestry bonds stipulated in
Article 62-2, Paragraph 1 of the Norinchukin Bank Act, and short-term foreign bonds stipulated in Article 38,
Paragraph 2 of the Order on Supervision of General Transfer Agencies), CD, call loans, Discounted Bills anddeposits shall be within 5% of the Total Net Assets.
3. The total amount of investment in securities, etc. as stipulated in Paragraph 1, Item 2 shall be within 10% of
the Total Net Assets at the time of acquisition of such securities, etc.
4 Notwithstanding the provisions of Paragraphs 1 through 3, the total amount incorporated for the same
trading partner shall be no more than 25% of the Total Net Assets for call loans with a trading period of no
more than five business days (excluding call transactions secured by Government Bonds, etc.)
5. Assets which may be incorporated in the investment trust property shall be limited to those which arecontracted and settled in Japanese Yen.
6. The Management Company shall not incorporate bonds for which market value is not available.
7. The Management Company shall not incorporate securitization related products and structured bonds, etc.
for which redemption amount, etc. is uncertain at the time of acquisition, as specified in the By-laws.
* Article 3 of the By-laws

Article 7

Average Remaining Maturity of Incorporated Assets

The average Remaining Maturity of the WAL method for the assets incorporated in the MMF (the period
calculated in accordance with the By-laws.) shall not exceed 90 days.
However, the average Remaining Maturity for the WAM method (the period calculated in accordance with the
By-laws) shall not exceed 60 days.
* Article 4, Article 4-2 of the By-laws* Committee Resolution 1

Article 8

DeletedArticle 9

Deleted

Article 10

Deleted

Article 11

Deleted

Article 12

Deleted

Article 13

Valuation of Incorporated Bonds, etc.

1. As a general rule, the value of incorporated bonds shall be valuated based on the market value, and themarket value shall be the value adopted from one of the following values by the Management Company foreach issue of the incorporated bond.
(1) Reference statistics (average value) for OTC trading published by the Japan Securities Dealers
Association.
(2) Financial Instruments Business Operator, etc. (Type I Financial Instruments Business Operator (meaninga person engaged in financial instruments business as stipulated in Article 28, Paragraph 1 of the FIEA;
the same shall apply hereinafter ) and a person who resembles a corporation established in accordancewith foreign laws and regulations (excluding the selling price) presented by banks, etc.)(3) Value provided by price information companies
2. Other securities, etc. shall be valuated according to the Rules Concerning Valuation and Accounting ofInvestment Trust Properties.

Article 14

Valuation by Amortized Cost Method

1. The following bonds may be valuated using the amortized cost method:(1) The following bonds with Remaining Maturity of not more than one year:(a) Government Bonds, etc.
(b) Bonds with short-term credit ratings equal to or higher than A-2 or P-2 or long-term credit ratingsequal to or higher than A3 or A- obtained from credit rating agencies, etc.
(c) Those which the Management Company have deemed to have the same creditworthiness as that
stipulated in sub-item (b) based on the financial condition of the issuer.
2. The amortized cost method stipulated in the preceding paragraph shall, assuming the book value obtained on
the day that the bond purchase was entered or the one obtained on the previous date of the previous year’s
corresponding date of the resumption day (If the corresponding date falls on public holidays, the businessdate after the holiday) as the acquisition values, valuates the bonds by calculating the difference between thebook value and redemption value (As for discounted bonds, the price including tax (The price including theamount of taxes withheld to the nominal value.) ;the same shall apply hereinafter in Article 27) and prorate
the difference on a daily basis through the duration and adding or subtracting the prorated difference on thebook value.

The added or subtracted value shall be included in trading profit or loss.
3. In the event that there is a substantial discrepancy between the market value and the appraised value of bonds
valuated by the amortized cost method due to the reduction in the rating, etc., and if the total amount of
discrepancy between the market value and the appraised value exceeds 25 basis points of the Total Net
Assets, such discrepancy shall be reported to the Board of Directors, etc. of the Management Company. In
addition, if the total amount of such discrepancy exceeds 50 basis points of the Total Net Assets, theManagement Company shall, in consultation with the audit corporation or a certified accountant, start
appropriate measures and report it to the supervisory authorities.

Article 15

Matters Regarding Sales

1. The Management Company shall consult with the companies selling such investment trusts, such as Type I
Financial Instruments Business Operators and registered financial institutions, etc. (hereinafter referred to as
the “Sales Company”) and strive to observe the following matters:(1) Strive to sell MMF mainly to individual investors.
(2) At the time of selling to large volume applicants, the company shall fully explain the importance of funds
management for MMF, and shall receive notice from the vendors no less than four business days prior tothe contract date of any cancellation exceeding a certain amount when handling cancellation requests fromlarge volume customers.
(3) The Management Company shall appropriately manage funds in cooperation with the Sales Company
according to the liquidity needs of the beneficiary.
2. The Management Company shall determine the daily cancellation acceptance limit of the customer and thefixed amount specified in Item 2 of the preceding paragraph in consultation with the Sales Company.

Article 16

Matters regarding Disclosure

1. The Management Company shall prepare investment reports on MMF based on the Rules for investment
reports, etc., for investment trusts and investment corporations (hereinafter referred to as the “Rules for
Investment Management Reports”). In this case, the Management Company shall disclose such matters in aneasy-to-understand and careful manner as much as possible in such ways as indicating unclear issues forstructured bonds.
2. The Management Company shall prepare a monthly report based on the Rules for Investment Management
Reports at least once a month and make it available to the beneficiaries by any of the following methods:(1) Posting on the website of the said Management Company(2) Storefront of the Sales Company* Article 13 of the Rules for Investment Management Reports

Article 16-2

Matters regarding Liquidity

For the purpose of securing liquidity in the operation of MMF, the Management Company shall hold no lessthan 30% of the Total Net Assets of such MMF with respect to Japanese government bonds, government
guaranteed bonds with a Remaining Maturity of not more than 60 days, credits issued by the Bank of Japan andother investment target assets with maturity of not more than five business days, and shall confirm the contentsof such investment target assets within approximately five business days.

Article 16-3

Matters to Be Stated concerning Partial Cancellation in Basic Terms and Conditions ofInvestment Trust
In order to respond to sudden changes in the market in the operation of MMF, etc., the Management Company
shall state matters concerning “partial cancellation of investment trust contract” in the investment trust contractof MMF by referring to the following words:“When there are other unavoidable circumstances such as suspension of transactions in the financial
instruments exchange (meaning the market where the purchase and sale of securities or transactions under
Article 28, Paragraph 8, Item 3 or Item 5 of the Financial Instruments and Exchange Act are conducted and inwhich such market is established among the financial instruments exchanges as stipulated in Article 2,
Paragraph 16 of the Financial Instruments and Exchange Act, and the foreign financial instruments markets
stipulated in Article 2, Paragraph 8, Item 3 (b) of the Financial Instruments and Exchange Act), the settlor may
suspend the acceptance of the request under Paragraph ○ (and may cancel any claims already accepted). ”
The above “other unavoidable circumstances” shall include cases where the fairness cannot be guaranteed forthe beneficiary due to suspension of the settlement function, unexpected cancellation, etc.

Article 16-4

Conducting Stress Tests, etc.

The Management Company shall conduct stress tests at a frequency of once every quarter, and if any specificvulnerability (credit risk, market risk, liquidity risk, etc.) is discovered as a result of the stress test, takeappropriate measures such as implementing measures to eliminate such vulnerability.

Article 17

Establishment of Internal Rules

1. The Management Company shall establish guidelines for the following matters and appropriately respondthereto:(1) Guidelines in the case where the Management Company deems to have the same creditworthiness as the
securities defined in Article 3, Paragraph 1, Item 2, which is stipulated in Item 3 of the same paragraph,and where the Management Company deems to have the same creditworthiness as the Financial
Instruments defined in Article 3, Paragraph 2, Item 2 (a), which is stipulated in Item 2 (b) of the same
paragraph(2) Guidelines for cases where the rating criteria stipulated in Article 3 are no longer met(3) Guidelines for when a significant discrepancy as stipulated in Article 14, Paragraph 3 is determined
2. When creating the guidelines stipulated in Item 1 of the preceding paragraph, the Management Company
shall stipulate the guidelines separately for each type of asset category.
3 In the event that the Management Company has established guidelines based on the provisions of Paragraph
1, it shall notify the Association of such guidelines.

Article 18

Miscellaneous Provisions

1. In the event of an urgent situation regarding MMF which is not stipulated in Chapter 2, measures shall betaken by a resolution of the Self-regulation Committee each time.
2. In the event that there are circumstances that temporarily make it difficult to comply with the provisions of
Chapter 2 due to handling of payment to customers, the Management Company shall notify the Association
to that effect and shall respond after receiving confirmation from the Association.

Chapter 3:

Special Provisions for MRF

Article 19

MRF Investment Targets, etc.

1. The securities which MRF may invest in shall be those listed below:(1) National government bonds(2) Municipal bonds(3) Bonds issued by a corporation under special laws(4) Specified corporate bonds stipulated in the Act on Securitization of Assets (excluding specified corporate
bonds with subscription rights for new preferred equity and convertible specified corporate bonds in cases
where the Asset Securitization Plan does not stipulate that only the subscription rights for new preferred
equity may be transferred.)(5) Corporate bonds (excluding corporate bonds with stock subscription rights which are a combination ofstock subscription rights securities and corporate bonds, corporate bonds with stock options, andconvertible corporate bonds.)(6) CP(7) Securities issued by a foreign country or foreign corporation which have the characteristics of the
securities stipulated in Item 6 above.
(8) Foreign Loan Trust Beneficiary Securities(9) Foreign CD(10) Loan trust beneficiary rights(11) Designated money trusts
2. The provisions of Article 2, Paragraph 2 shall apply mutatis mutandis to the Financial Instruments in which
MRF may invest. In this case, the term “MMF” in the same paragraph shall be replaced with “MRF.”
3. The transactions for which investment instructions may be given on MRF shall be as follows:(1) Loans of securities(2) Bond lending transactions(3) Repurchase agreement(4) Borrowing of funds
4. The borrowing of funds as stipulated in Item 4 of the preceding paragraph shall be allowed within the
maximum amount specified by the By-laws.
* Article 2 of the By-laws

Article 20

Scope of Securities, etc. to Be Incorporated

1. The scope of securities that can be incorporated into MRF shall be the following securities among thesecurities stipulated in Paragraph 1 of the preceding article:(1) Japanese government bonds, government guaranteed bonds and bonds issued by the Bank of Japan(2) Securities other than those stipulated in the preceding item, which have received long-term credit ratingsequal to or higher than A- or short-term credit ratings equal to or higher than A-2 from one or more credit
rating agencies, etc.
(3) Among securities other than the securities stipulated in the preceding two items which have not received
credit ratings from credit rating agencies, etc., those which the Management Company have deemed tohave the same creditworthiness as those specified in the preceding item based on the financial condition of
the issuer.
2. The scope of Financial Instruments which MRF may incorporate shall be the following Financial
Instruments among the ones prescribed in Article 2, Paragraph 2 as applied mutatis mutandis pursuant toParagraph 2 of the preceding article:(1) Financial Instruments stipulated in each item of Article 2, Paragraph 2, that have been deposited withcollateral or any other assets from the other party to the transaction.
(2) Financial Instruments other than those specified in the preceding item that fall under any of the following
sub-items:(a) Those with long-term credit ratings equal to or higher than A- or short-term credit ratings equal toor higher than A-2 from one or more credit rating agencies, etc.
(b) Among securities which have not received a credit rating from credit rating agencies, etc., but thosewhich the Management Company has deemed to have the same creditworthiness as those specified in
sub-item (a) based on the financial condition, etc. of the issuer.

Article 21

Scope of Transactions That Can Receive Investment Instructions

The transactions stipulated in Article 19, Paragraph 3 shall be conducted within the scope of the following
business partners or transactions:(1) Loans of securities shall be made to persons who fall under any of the following:(a) Those with long-term credit ratings equal to or higher than A- or short-term credit ratings equal to or
higher than A-2 from one or more credit rating agencies, etc.
(b) Those who have not received a credit rating from credit rating agencies, etc., but who are recognizedby the Management Company as having the same creditworthiness as the persons specified in
sub-item (a) based on their financial condition thereof(2) In bond lending transactions, the bond certificate subject to such transactions shall fall under any of the
securities stipulated in Article 20, Paragraph 1.
(3) As for the repurchase agreement, the securities and Financial Instruments subject to such transactions fallunder any of the securities or Financial Instruments stipulated in Article 20, Paragraph 1 or 2.

Article 21-2

Considerations regarding Rating Criteria

Considering that the rating criteria stipulated in the preceding two articles and the ratings of assets held inaccordance with these provisions are only a part of the factors for determining the creditworthiness of thesubject of the rating, the credit rating agencies shall refrain from making any mechanical use thereof and shallappropriately manage the creditworthiness and other matters in-house, taking into consideration
comprehensive factors including factors other than credit ratings.

Article 22

Investment Restrictions

1. Among Securities, etc. (meaning securities as stipulated in Article 20, Paragraph 1 (including bonds subject
to repurchase agreement and loaned bond pertaining to bond lending transactions) and Financial Instruments
stipulated in Paragraph 2 of the same article (including Financial Instruments subject to repurchaseagreement.));hereinafter the same shall apply in this article ), the amount of investment in securities, etc.
other than those with long-term credit ratings equal to or higher than AA- or short-term credit ratings equal toor higher than A-1 from two or more credit rating agencies, etc., and those that have not received credit
ratings from credit rating agencies, etc., but deemed by the Management Company as having the same
creditworthiness, shall be within 5% of the Total Net Assets.
2. The total amount of investment in Securities, etc. issued or handled by the same corporation, etc. shall bewithin the following amounts:(1) The amount of securities with long-term credit ratings equal to or higher than AA- or short-term credit
ratings equal to or higher than A-1 from two or more credit rating agencies, etc., or of those that have notreceived credit ratings from credit rating agencies, etc., but deemed by the Management Company as
having the same creditworthiness shall be within 5% of the Total Net Assets.
(2) The amount of Securities, etc. other than those stipulated in the preceding item shall be within 1% of the
Total Net Assets.
3. The provisions of the preceding two paragraphs shall not apply to securities stipulated in Article 20,
Paragraph 1, Item 1.
4. Notwithstanding the provisions of Paragraphs 1 and 2, the provisions of Article 6, Paragraph 4 shall apply tocall loans with a transaction period of five business days or less. However, Paragraph 1 and Paragraph 2 shallnot apply to a call loan with a transaction period of five business days or less and for which collateral or otherassets have been deposited by the other party to the transaction.
5. Assets which may be incorporated in the investment trust property shall be limited to those which arecontracted and settled in Japanese yen.
6 No instruction shall be made on investment in securities issued through private placements (meaning private
placements as stipulated in Article 2, Paragraph 3 of the FIEA.) (excluding short-term corporate bonds, etc.
(meaning short-term corporate bonds as stipulated in Article 66, Item 1 of the Act on Transfer of Company
Bonds, Shares, etc., short-term corporate bonds as stipulated in Article 61-10, Paragraph 1 of the Insurance
Business Act, specified short-term corporate bonds as stipulated in Article 2, Paragraph 8 of the Act on
Securitization of Assets, short-term bonds as stipulated in Article 54-4, Paragraph 1 of the Shinkin Bank Act,short-term agricultural and forestry bonds as stipulated in Article 62-2, Paragraph 1 of the Norinchukin Bank
Act, and short-term foreign bonds as stipulated in Article 38, Paragraph 2 of the Order on Supervision ofGeneral Transfer Agencies.)), in securitization related products and structured bonds, etc. whose redemption

amount, etc., is uncertain at the time of acquisition, as stipulated in the By-laws, and on investment
management through derivatives such as futures contract involving securities and financial futures trading,etc.
7. No short sale of bonds by the investment trust property shall be made.
Article 23

Remaining Maturity of Assets Incorporated in the Investment Trust Property

1. The Remaining Maturity of single Securities, etc., (excluding deposits (other than CD)) to be incorporated in
the Investment Trust Property shall not exceed one year.
2. The Remaining Maturity of Securities, etc., concerning repurchase transactions or the transaction period of
repurchase transactions and bond lending transactions shall not exceed one year.
Article 24

Average Remaining Maturity of Assets Incorporated in the Investment Trust

The provisions of Article 7 shall apply mutatis mutandis to the average Remaining Maturity of the MRF.
* Article 4, Article 4-2 of the By-laws* Committee Resolution 1

Article 25

Other Restrictions

The period from the contract date (meaning the date the investment trust property is recorded) for theacquisition of securities to the delivery date shall not exceed 10 business days.

Article 26

Adjustments When the Investment Limit Ratio Is Exceeded

In the event the ratio specified in Article 22, Paragraph 1 and Paragraph 2, Items 1 and 2 is exceeded due tounavoidable circumstances, the Management Company shall make adjustments so that the ratio is brought
within the scope of percentage within five business days including the business day on which the ratio is
exceeded.

Article 27

Valuation of Bonds, etc. Incorporated into MRF

1. The provisions of Article 13, Article 14, Paragraphs 1 and 3 shall apply mutatis mutandis in this article.
2. The amortized cost method stipulated in Article 14, Paragraphs 1 and 3 as applied mutatis mutandis in thepreceding paragraph shall valuate the bonds incorporated into MRF by calculating the difference between
the acquisition price and the redemption price from the purchase settlement date and the day before theredemption date of the MRF incorporated the bonds, and prorating the difference on a daily basis through theduration, adding or subtracting the prorated price on or from the book value on a daily basis. The book value
shall be used to valuate between acquisition date and the day before settlement date.
3 The CP incorporated by the MRF shall be valuated at acquisition cost regardless of the provisions of thepreceding paragraph, and the discount fee for the CP shall be recorded daily as interest income.

Article 27-2

Matters Regarding Sales

The Management Company shall appropriately manage funds in cooperation with the Sales Company

according to the liquidity needs of the beneficiary.

Article 27-3

Matters regarding Disclosure

The provisions of Article 16, Paragraph 2 shall apply mutatis mutandis to the monthly disclosure of the MRF.

Article 27-4

Matters regarding Liquidity

The provisions of Article 16-2 shall apply mutatis mutandis to matters regarding the liquidity of the MRF. In
this case, the term “MMF” in the same article shall be replaced with “MRF”.

Article 27-5

Matters to Be Stated concerning Partial Cancellation in Basic Terms and Conditions ofInvestment Trust
The provisions of Article 16-3 shall apply mutatis mutandis to matters regarding partial cancellation as
described in the investment trust contracts of the MRF. In this case, the term “MMF” in the same article shall be
replaced with “MRF”.

Article 27-6

Conducting Stress Tests, etc.

The provisions of Article 16-4 shall apply mutatis mutandis to the implementation of MRF stress tests, etc.

Chapter 4:

Miscellaneous Provisions

Article 28

By-laws

Necessary matters for the enforcement of these Rules shall be stipulated in the By-laws.

Article 29

OthersAny matters regarding the operation of MMF, etc. not stipulated for in these Rules (excluding those provided
for in Article 18.) may be stipulated by a resolution of the Board of Directors.

Article 30

Delegation to Competent Committee

1. The Board of Directors shall be entitled to delegate to the Self-regulation Committee the authority to amend
any By-laws relating to these Rules.
2. The Self-regulation Committee shall promptly report to the Board of Directors any decision(s) made (limited
to those deemed necessary by the Board of Directors) concerning any delegated matters.

Supplementary Provisions
1.

These Rules shall come into effect on April 1, 2004.

2.

With regard to the application of provisory clause of the supplementary provisions 1 of the former council

resolution “Management of MMFs, etc.”, the provisions then in force shall remain applicable.

Supplementary ProvisionThis amendment shall come into effect on July 16, 2004.

Supplementary ProvisionThis amendment shall come into effect on November 19, 2004.

Supplementary ProvisionThis amendment shall come into effect on March 18, 2005.

Supplementary ProvisionThis amendment shall come into effect on May 24, 2006.

Supplementary ProvisionThis amendment shall come into effect on June 19, 2006.

Supplementary Provisions
This amendment shall come into effect on September 30, 2007.
However, the revised Article 27-2 shall apply from the new accounting period to be started after the
implementation date.

Supplementary ProvisionThis amendment shall come into effect on November 16, 2007.

Supplementary ProvisionThis amendment shall come into effect on December 21, 2007.

Supplementary ProvisionThis amendment shall come into effect on October 1, 2008.

Supplementary Provisions
This amendment shall come into effect on January 16, 2009.
However, short-term commercial and industrial bonds stipulated in Article 38 of the Supplementary
Provisions of the Shoko Chukin Bank Limited Act (Act No. 74 of 2007) shall be deemed to be short term
corporate bonds, etc. stipulated in Article 9, Item 18.

Supplementary ProvisionThis amendment shall come into effect on January 1, 2011.

Supplementary ProvisionThis amendment shall come into effect on January 4, 2013.

Supplementary Provisions
This amendment shall come into effect on December 1, 2016.
However, the amended Article 1 shall come into effect on December 1, 2017.
* The amended provisions are as follows:(1) Amendment
Article 1; Article 2, Paragraph 1, Item 11; Article 7; Article 14, Paragraph 3; Former Article 17, Paragraph 1, Item 3; Article 19,
Paragraph 1, Item 4;
Article 22, Paragraphs 3 and 4 and Article 24.
(2) Newly established Articles
Article 4-2; Article 15, Paragraph 1, Item 3; Article 16-2; Article 16-3; Article 16-4; Article 21-2;
Article 27, Paragraph 1 (Former Paragraphs 1 and 2 have been deferred); Article 27-2 (Former Article 27-2 has been deferred),
Article 27-4; Article 27-5; Article 27-6
(3) Deleted
Article 5, Paragraph 2; Article 6, Paragraph 4 (former Paragraphs 5 through 8 have been moved forward); Articles 8, 9, 10, and11;
Article 12; Article 14, Paragraph 1, Item 2; Article 17, Paragraph 1, Item 2 (former Items 3 and 4 have been moved forward)

By-laws on Rules for Operations of MMF, etc.
Established on March 19, 2004
Revised on June 9, 2005
Revised on September 21, 2007
Revised on September 19, 2008
Revised on December 20, 2012
Revised on July 21, 2016

Article 1

Purpose

These By-laws set forth the necessary matters for the enforcement of the Rules for Operations of MMF, etc.
(hereinafter referred to as the “Rules”).

Article 2

Limitations on Borrowing Funds

The provisions in Article 4 of the By-laws on the Rules on Management of Investment Trusts, etc., shall apply
to the maximum amount set forth in the By-laws as provided in Article 2, Paragraph 4 and Article 19,
Paragraph 4 of the Rules. In this case, the phrase “five business days” regarding the date of deposit of securities,
etc. in Article 4, Paragraph 1 of the By-laws shall be deemed to be replaced with “20 business days” for the
maximum amount provided in Article 2, Paragraph 4 of the Rules.

Article 3

Structured Bonds with Undetermined Redemption Values, etc.

The matters provided for in the By-laws as prescribed in Article 6, Paragraph 7 and Article 22, Paragraph 6 of
the Rules shall apply to any of the following:(1) Bonds, etc. whose redemption value is linked to an index, etc.
(2) Bonds, etc. whose redemption value or interest rate is linked to an exchange rate(3) Bonds, etc. whose interest rate is linked to a long-term interest rate(4) Products with an inverse correlation to interest rate fluctuations(5) Leveraged products(6) Other products specified by the Self-regulation Committee as products with undetermined redemption
values, etc.

Article 4

Method for Calculating the Average Remaining Maturity by the WAM Method

1. The average Remaining Maturity by the WAM (Weighted Average Maturity) method for incorporated assets
as provided in Article 7 of the Rules (including cases where it is applied mutatis mutandis pursuant to Article
24 of the Rules) for Securities, etc. incorporated in the investment trust asset as of the calculation date shallbe the period obtained by taking the total period calculated by multiplying the Remaining Maturity of a
Security, etc. obtained through the calculation method stipulated in the following items for the different
types of Securities, etc. by the incorporated value of said Security, etc. (the value measured in accordancewith Rules for Valuation and Accounting of Investment Trust Properties; the same shall apply hereinafter)and dividing it by the total amount of incorporated Securities, etc.

(1) For securities (except floating rate notes and products related to repurchase transactions and bond lendingtransactions), the period is the number of days from the delivery date until the redemption date, less thenumber of days thereafter until the redemption date(2) For Financial Instruments (except products related to repurchase transactions), the period is the number ofdays from the transaction date until the maturity date, less the number of days thereafter until the maturity
date
However, the period for deposits (excluding CDs) and designated money trusts shall be counted as oneday.
(3) For floating rate notes, the period is number of days from the delivery date until the day before the next
interest rate application date, less the number of days thereafter until the next interest rate application date(4) For repurchase transactions and bond lending transactions, the period is the number of days from thetransaction date until the end date, less the number of days thereafter until the end date
2. In calculating the average Remaining Maturity, if using in the period from the contract date to the delivery
date of a Securities, etc. prescribed in preceding items for a different security, the period from the calculation
date until the maturity date for the other Securities, etc. shall be added to the calculation.
3. The Self-regulation Committee shall determine examples of calculations for the average Remaining
Maturity prescribed in Paragraph 1.

Article 4-2

Method for Calculating the Average Remaining Maturity with the WAL Method

1. The average Remaining Maturity by the WAL (Weighted Average Life) method for incorporated assets asprovided in Article 7 of the Rules (including cases where it is applied mutatis mutandis pursuant to Article 24of the Rules) for Securities, etc. incorporated in the investment trust asset as of the calculation date shall be
the period obtained by taking the total period calculated by multiplying the Remaining Maturity of a Security,
etc. obtained through the calculation method stipulated in the following items for the different types of
Securities, etc. by the incorporated value of said security, etc. and dividing it by the total amount ofincorporated Securities, etc.
(1) For securities (except products related to repurchase transactions and bond lending transactions), theperiod is the number of days from the delivery date until the redemption date, less the number of days
thereafter until the redemption date(2) For Financial Instruments (except products related to repurchase transactions), the period is the number ofdays from the transaction date until the maturity date, less the number of days thereafter until the maturity
date
However, the period for deposits (excluding CDs) and designated money trusts shall be counted as oneday.
(3) For repurchase transactions and bond lending transactions, the period is the number of days from thetransaction date until the end date, less the number of days thereafter until the end date
2. In calculating the average Remaining Maturity, if using in the period from the contract date to the delivery
date of a Securities, etc. prescribed in preceding items for a different security, the period from the calculation
date until the maturity date for the other Securities, etc. shall be added to the calculation.

Supplementary Provision
These By-laws shall come into effect on April 1, 2004.

Supplementary ProvisionThis amendment shall come into effect on June 9, 2005.

Supplementary ProvisionThis amendment shall come into effect on September 30, 2007.

Supplementary ProvisionThis amendment shall come into effect on October 1, 2008.

Supplementary ProvisionThis amendment shall come into effect on January 4, 2013.

Supplementary Provisions
This amendment shall come into effect on December 1, 2016.
* The amended provisions are as follows:
Articles 3 and 4 have been amended. Article 4-2 has been newly established. Articles 5 and 6 have been deleted.

Committee Resolution Concerning Operations of MMF, etc.
Established on March 19, 2004
Revised on September 11, 2008

This committee resolution sets forth the matters delegated to the Self-regulation Committee in accordance with
the Rules for Operations of MMF, etc.

1. The calculation example for the average Remaining Maturity set forth in Article 4, Paragraph 3 of the
By-laws on “Rules for Operations of MMF, etc.” is as follows:

Example Calculation (Calculation Date: October 1, 1997)
i. Assets 9,000,000,000 yen
Incorporated assets
Amount (Denominator)
Call Discharge (Overnight)
Call Discharge (7 days)
CP (Maturity Date: December 20, 1997)
Floating rate notes: 3,000,000,000 yen: 2,000,000,000 yen: 2,000,000,000 yen

Remaining
Days
1 day
7 days80 days(Numerator)

95 days

1,900
3,670

30
140
1,600

(the day before the next interest rate application date, January 4, 1998): 2,000,000,000 yen
Total 9,000,000,000 yen
Average Remaining Days
ii. The following agreements were added to the above portfolio on October 2:
Purchase of CP for partial funds of a Call Discharge (overnight)(Delivery Date: October 6, Maturity Date: December 5)2,000,000,000 yen
Other Assets
Call Discharge (Overnight): 3,000,000,000 yen
Call Discharge (6 days): 2,000,000,000 yen
CP (Maturity Date: December 20, 1997): 2,000,000,000 yen
Floating rate notes

40.8 days

60 days

1,200

1 day
6 days79 days

30
120
1,580

(the day before the next interest rate application date, January 4, 1998): 2,000,000,000 yen
94 days
1,880
Total 11,000,000,000 yen
4,810
Provided that the CP purchase price for the above call discharge (overnight) shall be reduced by
2,000,000,000 yen and the denominator shall be 9,000,000,000 yen.
Average Remaining Days
53.4 days
Supplementary ProvisionThis Sub-Committee resolution shall come into effect on April 1, 2004.

Supplementary ProvisionThis amendment shall come into effect on October 1, 2008.

Accounting Rules for Investment Trusts
Established on March 23, 1999
Revised on March 19, 2004
Revised on March 18, 2005
Revised on May 24, 2006
Revised on September 21, 2007
Revised on November 16, 2007
Revised on September 19, 2008
Revised on January 16, 2009
Revised on December 20, 2012

Chapter 1:
Article 1

General Provisions
PurposeThe accounting processes and entry methods in preparing balance sheets, profit, loss, and surplus statements,and supplementary schedules for investment trust property (hereinafter referred to as “Financial Statements,etc.”) as well as the content and amounts recorded for each account title of an investment trust property shall bein accordance with the provisions of the Regulation on Calculation of Investment Trust Property (Prime
Minister's Office Order No. 133 of 2000; hereinafter referred to as the “Rules for Investment Trust Financial
Statements”) and these Rules.
Article 2

Accounting Principles

The accounting processes and entry methods in preparing Financial Statements, etc. for investment trusts, etc.
shall conform to the following principles:(1) Present a true statement of the state of assets and profits and losses(2) Prepare accurate accounting books for all transactions in accordance with the principle of orderly
bookkeeping(3) Clearly state the accounting facts necessary to accurately determine the status of assets and profits andlosses(4) Apply accounting principles and procedures and entry methods for Financial Statements, etc.
continuously for each accounting period and do not change them without reason(5) If nothing is provided for in Rules for Investment Trust Financial Statements and these Rules, adhere to
generally accepted accounting principles
Article 3

Notes, etc. on Accounting Policies

1. Important accounting policies for preparing balance sheets and profit, loss, and surplus statements must be
stated in the notes. However, this shall not apply to accounting policies which are adopted in principle.
2. When any changes occur to accounting policies involving balance sheets and profit, loss, and surplus
statements, the reason for the change, and the amount of the increase or decrease resulting from the changemust be stated in the notes. However, notes are not required if the effect of the change is minor.
3. The provision of the preceding paragraph shall apply mutatis mutandis to any change in the entry method forbalance sheets and profit, loss, and surplus statements. In this case, “accounting policies” in the same
paragraph shall be deemed to be replaced with “entry method”.

Article 4

Method for Including Notes

1. Matters to be noted as provided for in these Rules must be noted in balance sheets and profit, loss, andsurplus statements.
2. In addition to what is provided for in these Rules, matters necessary for accurately determining the status ofassets or profits and losses for an investment trust must be stated in the notes of balance sheets and profit,
loss, and surplus statements.

Chapter 2:
Article 5

Balance Sheets
Division

Balance sheets must include an assets section, a liabilities section, and a net asset section, all of which shallhave totals.

Article 6

Assets Section

1. The assets section must be subdivided into account titles showing the nature of deposits, share certificates,
national government bonds and other assets so as to show the contents of assets as clearly as possible.
2. The assets section can be subdivided into account titles showing deposits, share certificates, national
government bonds and other assets as set forth in the By-laws and each account title shall record amounts,
etc. as set forth in the By-laws.
* Article 2 of the By-laws

Article 7

Liabilities Section

1. The liabilities section must be subdivided into account titles showing the nature of loans, advances received,
accounts payable and other liabilities so as to show the state of liabilities as clearly as possible.
2. The liabilities section can be subdivided into account titles showing loans, advances received, accounts
payable and other liabilities as set forth in the By-laws and each account title shall record amounts, etc. as set
forth in the By-laws.
* Article 3 of the By-laws

Article 8

Valuation of Investment Securities, etc. and Derivatives

Valuation of investment securities and other financial instruments, etc. (hereinafter referred to as “Securities,etc.”) and derivatives shall in principle be made at market value. However, this shall not apply to cases where
investment trust contracts (hereinafter referred to as “Contracts”) are otherwise provided.
Article 9

Valuation of Foreign Currency Assets and Liabilities

Valuation of assets and liabilities denominated in foreign currencies shall be based on the exchange rate of the
final day of the accounting period.

Article 10

Net Asset Section

1. The net asset section shall be divided into principal, stock price fluctuation reserve, price fluctuation reserve,and surplus or deficit.
2. The net asset section can be subdivided into account titles showing principal, stock price fluctuation reserve,
price fluctuation reserve, surplus or deficit, and other net worth items as set forth in the By-laws and eachaccount title shall record amounts, etc. as set forth in the By-laws.
* Article 4 of the By-laws

Article 11

Definition of Principal

Principal is the amount calculated by multiplying the number of beneficiary rights on the final day of theaccounting period by the amount per right specified in the Contracts.

Article 12

Definition of Stock Price Fluctuation Reserve and Price Fluctuation Reserve

The stock price fluctuation reserve or the price fluctuation reserve is the amount obtained by multiplying theamount exceeding the principal of the net asset amount by the percentage specified in the Contracts.

Article 13

Note on the Net Asset per Unit AmountThe balance sheet must contain the amount of the net asset per unit on the final day of the accounting period.

Chapter 3:
Article 14

Profit, Loss, and Surplus Statement
Division

1. The profit, loss, and surplus statement shall be divided into revenue and expenses and shall be calculated bydeducting the total amount of expenses from the total amount of revenue to obtain the net profits or losses forthe period in question. Adjusted net profits or losses shall be calculated by adding or subtracting the net
profit or loss distribution amount due to early cancellation to the calculated amount.
2. Surplus at the end of a period shall be calculated by adding or subtracting the surplus or deficit at the start ofthe period, any increases or decreases from additional trusts during the period, any increases or decreases due
to early cancellation during the period, and any distributions to the adjusted net profit.

Article 15

Account titles of Revenues and Expenses

1. Revenues and expenses for an investment trust must be subdivided into account titles with appropriate namesthat indicate the nature thereof.
2. Revenues and expenses may be subdivided into account titles as set forth in the By-laws and each accounttitle shall record amounts, etc. as set forth in the By-laws.
* Articles 5, 6 and 7 of the By-laws

Article 16

Recognizing Dividend Income

Dividend income shall be recorded on the day when the sale or purchase of said stock occurred.

Article 17

Recognizing Profit or Loss from Selling or Purchasing Securities, etc.

1. Profit or loss realized through the sale or purchase of Securities, etc. shall be recorded on the date theagreement was concluded.
2. Valuation losses or gains of Securities, etc. shall be recorded as profits or losses on the sale or purchase of
Securities, etc. on the final day of the accounting period.

Article 18

Recognition of Profit or Loss on Derivative Transactions, etc.

1. Profit or loss realized through derivative transactions, etc. shall be recorded on the date the agreement was
concluded.
2. Valuation losses or gains of derivative transactions, etc. shall be recorded as profits or losses on derivativetransactions, etc. on the final day of the accounting period.

Article 19

Recognition of Profit or Loss in Foreign Exchanges

1. Foreign exchange profits or losses realized through forward exchange transactions shall be recorded on thedate the agreement was concluded.
2. Valuation losses or gains of foreign exchange on assets and liabilities denominated in foreign currencies
shall be recorded as foreign exchange profits or losses on the final day of the accounting period.

Article 20

Deleted

Article 21

Definition of the Net Profit Distribution Amount or Net Loss Distribution Amount upon Early

Cancellation
The net profit distribution amount or net loss distribution amount accompanying an early cancellation shall be
the amount of profit or loss for the period distributed via a partial early cancellation by the Consignor during theperiod.
Article 22

Definition of Increase or Decrease from Additional Trusts during the Current Accounting Period

The increase or decrease from additional trusts during the current accounting period shall be the increase or
decrease to the surplus or deficit from the addition of a trust during the period.

Article 23

Definition of Increase or Decrease due to Early Cancellation during the Current Accounting

PeriodThe increase or decrease due to early cancellation during the current accounting period shall be the amount of
the increase or decrease to the surplus or deficit from an early cancellation during the period.
Article 24

Recording Distributions

1. Distributions of investment trusts shall be recorded in profit, loss, and surplus statements on the distribution
determination date. Any unpaid amount of the distribution shall be recorded in the balance sheet as an unpaid

income distribution.
2. The basis for calculation of distribution shall be recorded in profit, loss, and surplus statements.

Chapter 4:
Article 25

Supplementary Schedules
Supplementary Schedules to Be Prepared by the Investment Trust Management Company

1. The Investment Trust Management Company (meaning an investment trust management company as
defined in Article 2, Paragraph 11 of the Act on Investment Trusts and Investment Corporations (Act No.
198 of 1951). ) must prepare the following supplementary schedules in addition to the supplementaryschedules set forth in Article 57 of the Rules for Investment Trust Financial Statements. However,preparation of these supplementary schedules is not required when there are no transactions pertaining tothese supplementary schedules:(1) Short selling securities schedule(2) Accounts receivable schedule(3) Unit Type Distribution Statement(4) Open Type Profit Distribution Statement(5) Status of transactions with interested parties, etc.
2. The supplementary schedules listed in the preceding paragraph shall be prepared in the form specified in the
By-laws.
* Article 8 of the By-laws

Chapter 5:
Article 26

Miscellaneous Provisions
By-laws

Necessary matters for the enforcement of these Rules shall be stipulated in the By-laws.

Article 27

OthersAny matters regarding the accounting procedures for investment trusts not stipulated in these Rules may be
decided by a resolution of the Board of Directors.

Article 28

Delegation to Competent Committee

1. The Board of Directors shall be entitled to delegate to the Self-regulation Committee the authority to amend
any By-laws relating to these Rules.
2. The Self-regulation Committee shall promptly report to the Board of Directors any decision(s) made (limited
to those deemed necessary by the Board of Directors) concerning any delegated matters.

Supplementary Provision
These Rules shall come into effect on December 1, 1998.

Supplementary ProvisionThis amendment shall come into effect on April 1, 2004.

Supplementary ProvisionThis amendment shall come into effect on March 18, 2005.

Supplementary ProvisionThis amendment shall come into effect on May 24, 2006.

Supplementary Provisions
This amendment shall come into effect on September 30, 2007.
However, any documents defined in Article 25, Paragraph 1, Item 1 prior to the revision intended for the
calculation period whose preparation begun before the implementation date shall remain applicable.

Supplementary ProvisionThis amendment shall come into effect on November 16, 2007.

Supplementary ProvisionThis amendment shall come into effect on October 1, 2008.

Supplementary ProvisionThis amendment shall come into effect on January 16, 2009.

Supplementary ProvisionThis amendment shall come into effect on January 4, 2013.

By-laws on Accounting Rules for Investment Trusts
Established on March 19, 2004
Revised on March 18, 2005
Revised on May 19, 2005
Revised on January 12, 2006
Revised on May 11, 2006
Revised on June 8, 2006
Revised on January 11, 2007
Revised on January 19, 2007
Revised on September 21, 2007
Revised on November 16, 2007
Revised on December 21, 2007
Revised on March 21, 2008
Revised on January 16, 2009
Revised on March 19, 2009
Revised on November 20, 2014
Revised on April 18, 2019
Revised on September 12, 2019
Revised on September 11, 2020

Article 1

Purpose

These By-laws set forth the necessary matters for the enforcement of the Accounting Rules for Investment
Trusts (hereinafter referred to as the “Rules”).

Article 2

Assets Section

The account titles specified in the By-laws stipulated in Article 6, Paragraph 2 of the Rules shall be the titles
specified in the following items, and the amount specified in each item shall be recorded at the time specified ineach item.
(1) Deposits
Within the investment trust property (hereinafter referred to as the “Trust Property”), the amount ofdeposits shall be recorded.
(2) Money Trusts
Within the Trust Property, the amount of Money Trusts of a bank engaged in trust business and a trust
company (meaning beneficiary certificates of beneficiary certificate-issuing trusts prescribed in Article
2, Paragraph 1, Item 14 of the Financial Instruments and Exchange Act (Act No. 25 of 1948, hereinafterreferred to as the “FIEA”) and beneficial interests in Monetary Trusts with a contract indemnifying theprincipal amounts prescribed in Article 22, Paragraph 1, Item 2 of the Regulation for Enforcement of
the Act on Investment Trusts and Investment Corporations (Prime Minister’s Office Order No. 129 of
2000) among the beneficial interests in trusts prescribed in Paragraph 2, Item 1 in the same article of thesaid Act) shall be recorded.
(3) Call Loans
Within the Trust Property, the amount of call loans and discounted bills shall be recorded.
(4) Mortgage Securities
The book value of mortgage securities that have come to belong to the Trust Property (meaning the
mortgage securities prescribed in Article 2, Paragraph 1, Item 16 of the FIEA. The same shall applyhereinafter.) shall be recorded. The time to record the amount thereof shall be the date on which thepurchase agreement for such mortgage securities was made.
In preparing the balance sheet (hereinafter referred to as the “Balance Sheet”) stipulated in theRegulation on Calculation of Investment Trust Property (Prime Minister’s Office Order No. 133 of
2000; hereinafter referred to as the “Rules for Investment Trust Financial Statements”) the appraisedvalue of such mortgage securities shall be recorded.
(5) Other Financial Instruments
The acquisition value of financial instruments (meaning real asset securitization-related products) thathave come to belong to the Trust Property shall be recorded. The time to record the amount thereof shallbe the date on which the purchase agreement for such Financial Instruments was made.
(6) Monetary Claims
The acquisition value of monetary claims that have come to belong to the Trust Property (meaning
monetary claims prescribed in Article 3, Item 7 of the Order for Enforcement of the Act on Investment
Trusts and Investment Corporations (Cabinet Order No. 480, 2000, hereinafter referred to as“Enforcement Order of the Investment Trust Act.”), excluding the deposits prescribed in Item 1 and callloans prescribed in Item 3.) shall be recorded. The time to record the amount thereof shall be the date on
which the purchase agreement for such Monetary Claims was made.
In preparing the Balance Sheet, the appraised value of such Monetary Claims shall be recorded.
(7) Promissory Note
The acquisition value of promissory notes (meaning promissory notes stipulated in Article 3, Item 6 of
the Enforcement Order of the Investment Trust Act, excluding discounted bills) that have come tobelong to the Trust Property shall be recorded. The time to record the amount thereof shall be the dateon which the purchase agreement for such promissory notes was made.
In preparing the Balance Sheet, the appraised value of such promissory notes shall be recorded.
(8) Beneficial Interests
The acquisition value of beneficial interests in trusts (meaning beneficial interests in trusts stipulated in
Article 2, Paragraph 2, Item 1 of the FIEA, excluding those that fall under the category of money trusts
stipulated in Item 2 and the beneficial interests in monetary claims trusts stipulated in Item 22) that havecome to belong to the Trust Property shall be recorded. The time to record the amount thereof shall be
the date on which the purchase agreement for such beneficial interests in trusts was made.
In preparing the Balance Sheet, the appraised value of such beneficial interests in trusts shall berecorded.
(9) Investments in Capital
The acquisition value of the equity in investment in a silent partnership, etc. (meaning the right underpartnership contract, etc., that fall under Article 2, Paragraph 2, Items 5 and 6 of the FIEA and Article 3,
Item 8 of the Enforcement Order of the Investment Trust Act) that have come to belong to the Trust
Property shall be recorded. The time to record the amount thereof shall be the date on which thepurchase agreement for such equity in investment in a silent partnership, etc. was made.
In preparing the Balance Sheet, the appraised value of such equity in investment in a silent partnership,

etc. shall be recorded.
(10) Beneficiary Certificates of Trust Issuing Beneficiary Certificates
The acquisition value of beneficiary certificates of trust issuing beneficiary certificates (meaning
beneficiary certificates of trust issuing beneficiary certificates stipulated in Article 2, Paragraph 1, Item
14 of the FIEA, excluding money trusts stipulated in Item 2 and beneficial interests in monetary claims
trusts stipulated in Item 22) that have come to belong to the Trust Property shall be recorded. The time
to record the amount thereof shall be the date on which the purchase agreement for beneficiary
certificates of trust issuing beneficiary certificates was made.
In preparing the Balance Sheet, the appraised value of such beneficiary certificates of trust issuingbeneficiary certificates shall be recorded.
(11) Stock Certificates
The book value (including purchase commission fees) of stocks that have come to belong to the Trust
Property (including depositary receipts or certificates of deposit possessing the nature of stock) shall berecorded. The time to record the amount thereof shall be the day on which the purchase agreement forsuch shares was made or, for new stocks to be allocated or for dividend stocks to be distributed, andshall be the day on which the ex-right or ex-dividend old stocks are purchased or sold, and theacquisition values of such new stocks or dividends shall be the face value or issue value.
The book value per share shall be calculated by dividing the total amount acquired of the same issue
divided by the total number of shares of the same issue.
In preparing the Balance Sheet, the appraised value of such stocks shall be recorded.
(12) Stock Options Certificates
The book value (including purchase commission fees) of stock options certificates (meaning the stock
options certificates (including warrants securities or certificates) issued under the provision of Article
288, Paragraph 1 of the Companies Act, including investment equity option certificates (meaning theinvestment equity option certificates stipulated in Article 2, Paragraph 18 of the Act on Investment
Trusts and Investment Corporations (Act No. 198 of 1951, hereinafter referred to as “the Investment
Trust Act”))) that have come to belong to the Trust Property shall be recorded. The time to record theamount thereof shall be the date on which the purchase agreement for such stock options certificates
was made.
The book value per stock option certificates shall be calculated by dividing the total amount acquired of
the same issue divided by the total number of certificates of the same issue.
In preparing the Balance Sheet, the appraised value of such stock option certificates shall be recorded.
(13) Option Certificates, etc.
The book value of option certificates, etc. that have come to belong to the Trust Property (including
securities or certificates indicating rights to an option transaction stipulated in Article 2, Paragraph 1,
Item 19 of the FIEA; hereinafter referred to as “Option Certificates, etc.”) shall be recorded. The time torecord the amount thereof shall be the date on which the purchase agreement for such Option
Certificates, etc. was made.
In preparing the Balance Sheet, the appraised value of such Option Certificates, etc. shall be recorded.

(14) Preferred Equity Securities
The book value (including purchase commission fees) of preferred equity securities that have come tobelong to the Trust Property (meaning preferred securities stipulated in Article 2, Paragraph 1, Item 7 of
the FIEA and the new preferred securities stipulated in Item 8 of the same Act ) shall be recorded. The
time to record the amount thereof shall be the date on which the purchase agreement for such preferred
equity securities was made.
In preparing the Balance Sheet, the appraised value of such preferred equity securities shall be recorded.
(15) National Government Bonds
The acquisition value of national government bonds (including purchase commission fees) that havecome to belong to the Trust Property shall be recorded. In this case, accrued interest at the time ofacquisition shall not be included in the acquisition value for interest-bearing bonds.
Furthermore, the acquisition value for items with an application reservation fee shall be the amountincluding the application reservation fee for unit type investment trusts, open investment trusts(excluding bond investment trusts. The same shall apply hereinafter.) and Mother fund, whereas theacquisition value for bond investment trusts shall be the amount not including the application
reservation fee. The time to record the amount thereof shall be the date on which the purchaseagreement for such national government bonds was made.
In preparing the Balance Sheet, the appraised value of such national government bonds shall berecorded.
(16) Municipal Bonds
The provisions of the preceding item shall apply mutatis mutandis to the recording of the acquisition
value of municipal bonds, the calculation of their acquisition value in cases where there is anapplication reservation fee, and the time of recording the amount for special municipal bonds. When
doing so, the term “municipal bonds” shall replace the term “national government bonds,” the “suchmunicipal bonds” shall replace the term “such national government bonds.”
In preparing the Balance Sheet, the appraised value of such municipal bonds shall be recorded.
(17) Special Bonds
The provisions of Item 15 shall apply mutatis mutandis to the recording of the acquisition value of
special bonds, the calculation of their acquisition value in cases where there is an application
reservation fee, and the time of recording the amount for special bonds. When doing so, the term
“special bonds” shall replace the term “national government bonds,” the “such special bond” shall
replace the term “such national government bonds.”
In preparing the Balance Sheet, the appraised value of such special bonds shall be recorded.
(18) Corporate Bond (Excluding Short-Term Corporate Bonds Stipulated in Item 22)
The provisions of Item 15 shall apply mutatis mutandis to recording the acquisition value of corporate
bonds (including investment corporation bonds (meaning investment corporation bonds defined in
Article 2, Paragraph 1, Item 11 of the FIEA and foreign investment securities similar to investment
corporation bonds; the same shall apply hereinafter) and school bonds (meaning school bonds definedin Article 4, Item 1 of the Cabinet Office Order on Definitions Stipulated in Article 2 of the Financial

Instruments and Exchange Act (Cabinet Ordinance No. 14 of 1993)), and the calculation of theiracquisition values in cases where there is an application reservation fee, and time of recording theamount for bond certificates and school bonds. In this case, the term “corporate bonds” in Item 15 shall
replace the term “national government bonds,” the “such corporate bonds” shall replace the term “suchnational government bonds.”
In preparing the Balance Sheet, the appraised value of such corporate bonds shall be recorded.
(19) Equity Securities
The provisions of Item 15 shall apply mutatis mutandis to the recording of the acquisition value ofinvestment securities, the calculation of their acquisition value in cases where there is an application
reservation fee, and the time of recording the amount for equity securities. When doing so, the term
“equity securities” shall replace the term “national government bonds,” the “such equity securities”
shall replace the term “such national government bonds.”
In preparing the Balance Sheet, the appraised value of such equity securities shall be recorded.
(20) Investment Trust Beneficiary Certificates
The book value (including expenses required for acquisition) of investment trust beneficiary certificates(meaning beneficiary certificates stipulated in Article 2, Paragraph 1, Item 10 of FIEA ) that have cometo belong to the Trust Property shall be recorded. The time to record the amount thereof shall be the dateon which the purchase agreement for such investment trust beneficiary certificates was made.
In preparing the Balance Sheet, the appraised value of such investment trust beneficiary certificates, etc.
shall be recorded.
(21) Investment Securities
The book value (including expenses required for acquisition) of the investment securities (meaning
investment securities stipulated in Article 2, Paragraph 1, Item 11 of the FIEA) that have come tobelong to the Trust Property shall be recorded. The time to record the amount thereof shall be the dateon which the purchase agreement for such investment securities, etc. was made.
In preparing the Balance Sheet, the appraised value of such investment securities, etc., shall berecorded.
(22) Other Securities
The acquisition value of commercial papers, short-term corporate bonds, etc. (meaning short-term
corporate bonds as stipulated in Article 66, Item 1 of the Act on Transfer of Company Bonds, Shares,
etc., short-term corporate bonds as stipulated in Article 61-10, Paragraph 1 of the Insurance Business
Act, specified short-term corporate bonds as stipulated in Article 2, Paragraph 8 of the Act on
Securitization of Assets, short-term bonds as stipulated in Article 54-4, Paragraph 1 of the Shinkin Bank
Act, short-term agricultural and forestry bonds as stipulated in Article 62-2, Paragraph 1 of theNorinchukin Bank Act, and short-term foreign bonds as stipulated in Article 38, Paragraph 2 of theOrder on Supervision of General Transfer Agencies), negotiable certificates of deposits issued by aforeign corporation, foreign loan trust beneficiary securities (securities or certificates stipulated in
Article 2, Paragraph 1, Item 18 of FIEA, including the items that possess the same properties), andbeneficial interests in loan claims trusts (among beneficiary certificates of trust issuing beneficiarycertificates as stipulated in Article 2, Paragraph 1, Item 14 of the FIEA and beneficiary rights of trust as
stipulated in Article 2, Paragraph 2, Item 1 of the said Act, refer to a beneficial interest of a trust inwhich monetary claims of a bank, cooperative structured financial institution defined in Article 2,
Paragraph 1 of the Act on Preferred Equity Investment by Cooperative Structured Financial Institutions(Act No. 44 of 1993), and financial institutions listed in the items of Article 1-9 of the Order for
Enforcement of the FIEA (Order No. 321 of 1965), or a trust company is entrusted (limited to a trust inwhich the beneficiary at the time of conclusion of the contract for the trust is the settlor ), and securities
or certificates issued by foreign countries or foreign persons which have the same characteristics, or
which have the same characteristics of rights to foreign persons. ) shall be recorded. In this case,accrued interest at the time of acquisition shall not be included in the acquisition value for those bearing
interest. The time to record the amount thereof shall be the date on which the purchase agreement forsuch securities was made.
In preparing the Balance Sheet, a separate account title for respective securities shall be established, andthe appraised value or acquisition value of such securities shall be recorded.
(23) Mother Fund Beneficiary Certificates
The acquisition value of mother fund beneficiary certificates that have come to belong to the Trust
Property shall be recorded. The time to record the amount thereof shall be the date on which thepurchase agreement for such beneficiary certificates was made.
In preparing the Balance Sheet, the appraised value of such beneficiary certificates shall be recorded.
(24) Commodities
The acquisition value of commodities (meaning commodities stipulated in Article 2, Paragraph 1 of theCommodity Derivatives Transaction Act (Act No. 239 of 1950)) that have come to belong to the Trust
Property shall be recorded. The time to record the amount thereof shall be the date on which thepurchase agreement for such commodities was made.
In preparing the Balance Sheet, the appraised value of such commodities shall be recorded.
(25) Call Options (Purchase)
The purchase value for call options (including the expenses required for purchasing) pertaining tooption transactions by the Trust Property (meaning transactions listed in Article 2, Paragraph 21, Item 3(b) of the FIEA, transactions conducted in foreign financial instruments markets (foreign financial
instruments markets stipulated in Article 2, Paragraph 8, Item 3 of the FIEA) as well as transactions
similar to those listed in Article 2, Paragraph 21, Item 3, or transactions listed in Article 2, Paragraph 22,
Item 3 or 4 of the same Act, Article 2, Paragraph 1, Item 2 of the Act on Regulation of Commodity
Investments (Act No. 66 of 1991), Article 2, Paragraph 14, Item 4 of the Commodity Derivatives
Transaction Act, or Article 3, Item 10 (d) of the Enforcement Order of the Investment Trust Act; thesame shall apply hereinafter) shall be recorded. The time to record the amount thereof shall be the dateon which the purchase agreement for call options was made.
In preparing the Balance Sheet, the appraised value of such call options shall be recorded.
In addition, the purchase value shall be recorded for the account for the purchase of call options intransactions with options, and the time for recording and preparation of the Balance Sheet shall behandled according to the rules for call options (purchase).
(26) Put Options (Purchase)
The purchase value for put options pertaining to option transactions by the Trust Property (including
purchase costs) shall be recorded. The time to record the amount thereof shall be the date on which thepurchase agreement for such options was made.
In preparing the Balance Sheet, the appraised value of such put options shall be recorded.
In addition, the purchase value shall be recorded for the account for the purchase of put options intransactions with options, and the time for recording and preparation of the Balance Sheet shall behandled according to the rules for put options (purchase).
(27) Notional Principal Receivable Assets
The amount of notional principal that serves as the basis for receivable swap interest rate pertaining toswap transactions and the amount of notional principal that serves as the basis for purchasing in forward
rate transactions, forward currency transactions, and non-deliverable forward transactions by the Trust
Property shall be recorded. The time to record the amount thereof shall be the date on which therespective transaction agreements were made.
At the end of the fiscal year, the corresponding account of notional principal receivable assets shall be
deducted from the account, and if the difference is a positive number, the difference is transferred to theaccounts receivable, and if the difference is negative, the difference is transferred to the accounts
payable.
(28) Corresponding Account of Notional Principal Payable Liability
The amount of notional principal that serves as the basis for the payable swap interest rate pertaining toswap transactions and the outstanding amount of notional principal that serves as the basis for selling inforward rate transactions, forward currency transactions, and non-deliverable forward transactions by
the Trust Property shall be recorded. The time to record the amount thereof shall be the date on which
the respective transaction agreements were made.
At the end of the fiscal year, such notional principal payable liability account shall be deducted from theaccount, and if the difference is a positive number, the difference is transferred to the accounts
receivable, and if the difference is negative, the difference is transferred to the accounts payable.
(29) Securities Lent
The amount pertaining to loaned securities held by the Trust Property (the amount equivalent to themarket value on the day before the date of the loan came into effect for lending stock certificates and theamount equivalent to the face value for bond certificates) shall be recorded. The time to record theamount thereof shall be the date on which the loan came into effect.
At the end of the fiscal year, this shall be offset against the loan securities of loan trade account.
(30) Borrowing Trade Securities
The outstanding amount for borrowing trade securities in the Trust Property shall be recorded. The time
to record the amount thereof shall be the date on which the borrowing came into effect.
At the end of the fiscal year, this shall be offset against the securities borrowed account.
(31) Futures Purchase AccountThe purchase value (including purchase costs) subject to the transaction pertaining to the futurestransaction by the Trust Property (meaning transactions listed in Article 2, Paragraph 21, Item 1 or 2 of
the FIEA, transactions similar to those listed in Article 2, Paragraph 21, Item 1 or 2 that are conducted inforeign financial instruments markets, transactions listed in Article 2, Paragraph 14 of the Commodity
Derivatives Transaction Act (not including Item 4), and transactions listed in Article 3, Item 10 (b) of
the Enforcement Order of the Investment Trust Act; the same applies hereinafter ) shall be recorded.
The time to record the amount thereof shall be the date on which the agreement was made.
At the end of the fiscal year, the accounts payable of futures transactions shall be deducted from suchaccounts, and if the difference is a positive number, the difference is transferred to the accounts
receivable, and if the difference is negative, the difference is transferred to the accounts payable.
(32) Derivative Evaluation AccountIn preparing the Balance Sheet, valuation gains of futures transactions (excluding items related tooption transactions) and valuation gains of foreign exchange shall be recorded in this account in theassets section.
(33) Repurchase Transaction Account
The settlement amount for bonds, etc. acquired through conditional sales shall be recorded.
(34) Accounts Receivable
The following accounts receivables pertaining to securities, etc. belonging to the Trust Property shall berecorded:(a) The sales value of securities and other financial instruments, etc. (hereinafter referred to as“securities, etc.”) at the time the sales agreement was made (excluding expenses required for sale)(b) The sales value of call options or put options at the time the option sales agreement was made(excluding expenses required for sale)(c) The amount of gains generated when a resale or repurchase transaction, etc. involving futures andoptions transactions is complete(d) The amount of gains generated when premature settlement involving swap transactions is complete(e) The amount of gains generated when the transactions pertaining forward rate transactions, forward
currency transactions, and non-deliverable forward transactions are settled(f) The fixed amount when the corporate bond redemptions, capital reduction returns, money delivered
through a merger, or liquidation dividends pertaining to securities belonging to the Trust Property
have been settled(g) For exchange-traded funds, the set amount in cash when receiving a guarantee of obligation by theJapan Securities Clearing Corporation(35) Foreign Exchange Accounts Receivable
The amount for account receivable when making a reservation to sell currencies other than those whosebase value is listed (hereinafter referred to as “Foreign Currency”) shall be recorded. The time to record
the amount thereof shall be the date of making such reservation.
(36) Foreign Exchange Purchase
The outstanding amount (including exchange fees, etc.) when a purchase reservation of Foreign

Currency is made shall be recorded. The time to record the amount thereof shall be the date of making
such reservation.
(37) Accounts Receivable for Futures Transactions
The sales value for trading subjects pertaining to futures transactions by the Trust Property (excluding
sales costs) shall be recorded. The time to record the amount thereof shall be the date on which the sales
agreement for such a transaction was made. If the commission is paid at a time other than when thetransaction is complete, the amount of such payment shall be added on.
At the end of the fiscal year, the futures sales account shall be deducted from the account, and if thedifference is a positive number, the difference is transferred to the accounts receivable, and if thedifference is negative, the difference is transferred to the accounts payable.
(38) Margin Transaction Deposits
The outstanding amount of the sales in margin transactions (excluding expenses required for sales) shallbe recorded. The time to record the amount thereof shall be the date on which the sales agreement wasmade.
(39) Accrued Dividend Receivable
The amounts for account receivables for dividends pertaining to stocks, dividends from beneficiary
certificates, and dividends from investment securities that belong to the Trust Property shall berecorded.
(40) Accrued Interest
Interest income pertaining to deposits, money trusts, call loans, discounted bills, other financial
instruments, national government bonds, municipal bonds, special bonds, corporate bonds (including
investment corporation bonds) and other securities, as well as receivable swap interest rates in swap
transactions and the amount for account receivable of repurchase transactions shall be recorded.
(41) Advance Payments
The amount paid in advance by way of customers’ margin provided, etc., shall be recorded.
(42) Prepaid Expenses
The equivalent amount of accrued interests at the time of acquisition for interest-bearing bonds, etc. thathave come to belong to the Trust Property shall be recorded.
(43) Other Accrued Revenue
The amount for accounts receivable of share-lending commission generated from securities lent andmiscellaneous income and revenue generated from the Trust Property shall be recorded.
(44) Guarantee Deposits
The amount of cash or substitute securities, etc. provided to Type I Financial Instruments Business
Operators (meaning a financial instruments business operators stipulated in Article 28, Paragraph 1 of
FIEA; hereinafter referred to as “Type I Financial Instruments Business Operators.”), etc. as guarantee
deposits pertaining to margin transactions, when-issued transactions, or swap transactions, etc. by theTrust Property shall be recorded. The time to record the amount thereof shall be the date on which theguarantee deposits were provided.
(45) Customers’ Margin Provided

The amount of cash or substitute securities, etc. provided to Type I Financial Instruments Business
Operators, etc. as customers’ margin pertaining to futures transactions or option transactions by theTrust Property shall be recorded. The time to record the amount thereof shall be the date on which thecustomers’ margins were provided.
(46) Securities Received as Customers’ Deposits for Cash Collateral Received
The amount of securities, etc., received from Type I Financial Instruments Business Operators, etc. as
securities received as customers’ deposits for cash collateral received pertaining to lending of securities
that belong to the Trust Property or swap transactions, etc. shall be recorded. The time to record theamount thereof shall be the date on which the cash collateral was received.
In addition, securities received as customers’ deposits for cash collateral received shall not be
evaluated.
(47) Foreign Investment Accounts
The acquisition value of assets in foreign currency acquired with the listed currency of the base value of
the Trust Property shall be recorded (including the exchange fee). The time to record the amount thereof
shall be the date of delivery for such assets.
(48) Acquired Beneficiary Securities
When the Trust Property purchases beneficiary certificates based on the provisions of Article 30-2 ofthe Investment Trust Act prior to the enforcement of FIEA or when the Trust Property purchasebeneficiary certificates based on Article 18 of the Investment Trust Act after the enforcement of FIEA,
the purchase value of the beneficiary certificates shall be recorded.

Article 3 Liabilities Section
The account titles specified in the By-laws stipulated in Article 7, Paragraph 2 of the Rules shall be the titles
specified in the following items, and the amount specified for each item shall be recorded at the time specifiedin each item.
(1) Sales Securities for Margin Trading
The sales value for margin transactions by the Trust Property (excluding sales costs) shall be recorded.
The time to record the amount thereof shall be the date on which the sales agreement for such a margintransaction was made.
In preparing the Balance Sheet, the appraised value of such sales securities for margin trading shall berecorded.
(2) Sales of Securities Borrowed
The offer price for short-sold securities (excluding sales costs) shall be recorded. The time to record theamount thereof shall be the date on which the sales agreement was made.
In preparing the Balance Sheet, the appraised value of such sales of securities borrowed shall berecorded.
(3) Bonds Sold
The offer price for TBA transactions (meaning transactions in which the deliverable issue of thepass-through securities is not specified, but only a coupon is specified) by the Trust Property (excluding

sales costs) shall be recorded. The time to record the amount thereof shall be the date on which the sales
agreement was made.
In preparing the Balance Sheet, the appraised value of such bonds sold shall be recorded.
(4) Call Option (Sales)
The offer price for call options pertaining to option transactions by the Trust Property (excluding sales
costs) shall be recorded. The time to record the amount thereof shall be the date on which the sales
agreement for such options was made.
In preparing the Balance Sheet, the appraised value of such call options shall be recorded.
In addition, the sales value shall be recorded for the account for the sales of call options in transactions
with options, and the time for recording and preparation of the Balance Sheet shall be handledaccording to the rules for call options (sales).
(5) Put Options (Sales)
The offer price for put options pertaining to option transactions by the Trust Property (excluding sales
costs) shall be recorded. The time to record the amount thereof shall be the date on which the sales
agreement for such options was made.
In preparing the Balance Sheet, the appraised value of such put options shall be recorded.
In addition, the sales value shall be recorded for the account for the sales of put options in transactions
with options, and the time for recording and preparation of the Balance Sheet shall be handledaccording to the rules for put options (sales).
(6) Corresponding Account of Notional Principal Receivable Assets
The outstanding amount of notional principal that serves as the basis for the receivable swap interest
rate pertaining to swap transactions and the outstanding amount of notional principal that serves as thebasis for purchasing in forward rate transactions, forward currency transactions, and non-deliverable
forward transactions by the Trust Property shall be recorded. The time to record the amount thereof
shall be the date on which the respective transaction agreements were made.
At the end of the fiscal year, such accounts shall be deducted from the corresponding account of
notional principal receivable asset account, and if the difference is a positive number, the difference istransferred to the accounts receivable, and if the difference is negative, the difference is transferred tothe accounts payable.
(7) Notional Principal Payable Liability
The amount of notional principal that serves as the basis for the payable swap interest rate pertaining toswap transactions and the amount of notional principal that serves as the basis for selling in forward ratetransactions, forward currency transactions, and non-deliverable forward transactions by the Trust
Property shall be recorded. The time to record the amount thereof shall be the date on which therespective transaction agreements were made.
At the end of the fiscal year, such accounts shall be deducted from corresponding account of notional
principal payable liability, and if the difference is a positive number, the difference is transferred to theaccounts receivable, and if the difference is negative, the difference is transferred to the accounts
payable.

(8) Securities of Loan Trade
The outstanding amount of loans on securities held by the Trust Property shall be recorded. The time torecord the amount thereof shall be the date on which the loan came into effect.
At the end of the fiscal year, this shall be offset against the securities lent account.
(9) Securities Borrowed
The amount for borrowed securities shall be recorded. The time to record the amount thereof shall be
the date on which the borrowing came into effect.
At the end of the fiscal year, this shall be offset against the borrowing trade securities account.
(10) Loans
The advances paid made for the Trust Property by a trustee company and the amount borrowed by theTrust Property based on the provisions of the investment trust contract (hereinafter referred to as “theContract”) shall be recorded.
(11) Advances Received
The amount received in advance for short selling of bonds, etc. shall be recorded.
(12) Deferred Revenue
The amount received in advance as a deferral fee for accrued interest generated in ex-interest bondpurchases, etc., shall be recorded.
(13) Accounts Payable
The amount for the following accounts payables, etc. pertaining to securities, etc. belonging to the Trust
Property shall be recorded: The time to record the amount thereof shall be the date on which thetransaction agreement was made.
(a) The acquisition value of securities, etc. (including expenses required for acquisition)(b) The purchase value of call options or put options (including purchase costs)(c) The amount of loss arising from resale or repurchase, etc. pertaining to futures transactions andoption transactions(d) The amount of loss generated when such transactions are complete due to premature settlement
involving swap transactions(e) The amount of loss (basically) generated when the transactions pertaining to forward ratetransactions, forward currency transactions, and non-deliverable forward transactions are settled(14) Selling Exchange
The outstanding amount (including exchange fees, etc.) when a sales reservation of Foreign Currency ismade shall be recorded. The time to record the amount thereof shall be the date of making suchreservation.
(15) Foreign Exchange Accounts Payable
The amount for account payable for when a purchase reservation for foreign currency is made shall berecorded. The time to record the amount thereof shall be the date of making such reservation.
(16) Futures Transactions Accounts Payable
The purchase value for transactions traded as futures by the Trust Property (including purchase costs)
shall be recorded. The time to record the amount thereof shall be the date on which the purchaseagreement for such a transaction was made. If a commission, etc. is paid at a time other than when thetransaction is complete, the amount of such payment shall be added.
At the end of the fiscal year, such accounts shall be deducted from the futures purchase account, and if
the difference is a positive number, the difference is transferred to the accounts receivable, and if thedifference is negative, the difference is transferred to the accounts payable.
(17) Unpaid Share Subscription
The amount for account payable for subscription of new shares that have come to belong to the Trust
Property shall be recorded. The time to record the amount thereof shall be the date on which ex-rights
for the old stocks were purchased or sold.
(18) Unpaid Dividends
The amount for account payable for the earnings dividends of the Trust Property to the consignor shallbe recorded.
(19) Redemption Payable
The amount for account payable for the amount to be paid to the consignor from the Trust Property
upon the consignor’s partial cancellation shall be recorded (excluding remuneration for the consignor
and the trustee). The time to record the amount thereof shall be the day the principal reduction isprocessed in accounting by executing partial cancellation.
(20) Unpaid Trustee Fees
Based on the terms and conditions of the Contract, the amount for account payable for trust fees to be
paid from the Trust Property to the trustee shall be recorded.
(21) Unpaid Consignor Fees
Based on the terms and conditions of the Contract, the amount for account payable for trust fees to be
paid from the Trust Property to the consignor shall be recorded.
(22) Accrued Interest Expenses
The amount for account payables of interest expenses to be paid on loans, collateral received and theamount of swap interest payable on swap transactions shall be recorded.
(23) Futures Sales Account
The sales value (deducting the expenses required for sales) of the transaction subject to the futurestransaction shall be recorded. The time to record the amount thereof shall be the date on which the sales
agreement for such a transaction was made.
At the end of the fiscal year, such accounts shall be deducted from the accounts receivable of futurestransactions, and if the difference is a positive number, the difference is transferred to the accounts
receivable, and if the difference is negative, the difference is transferred to the accounts payable.
(24) Derivative Evaluation AccountIn preparing the Balance Sheet, valuation losses on futures transactions, etc. (excluding option
transactions) and valuation losses on foreign exchange shall be recorded in the relevant account in theliabilities section.
(25) Repurchase Transaction Account
The settlement amount for bonds, etc., sold through conditional sales shall be recorded.

(26) Securities Received as Customers’ Deposits for Guarantee Deposits
The amount of securities, etc. deposited to Type I Financial Instruments Business Operators, etc. as
securities in lieu of guarantee deposits pertaining to margin transactions, when-issued transactions,swap transactions, etc., by the Trust Property shall be recorded. The time to record the amount thereof
shall be the date on which the guarantee deposits were provided.
(27) Securities Received as Customers’ Deposits for Customers’ Margin
The amount of securities, etc. deposited to Type I Financial Instruments Business Operators, etc. as
securities in lieu of customers’ margin pertaining to futures or option transactions, etc. by the Trust
Property shall be recorded. The time to record the amount thereof shall be the date on which thecustomers’ margins were provided.
(28) Collateral Received
The amount of cash or substitute securities, etc. received from Type I Financial Instruments Business
Operators, etc. as a security deposit for loans of securities and swap transactions, etc. by the Trust
Property shall be recorded. The time to record the amount thereof amount shall be the date of receipt of
the security money.
(29) Other Accrued Expenses
The amount for account payables for miscellaneous expenses and miscellaneous losses incurred in the
Trust Property shall be recorded.

Article 4

Net Asset Section

The account titles specified in the By-laws stipulated in Article 10, Paragraph 2 of the Rules shall be the titles
specified in the following items, and the amount specified shall be recorded at the time specified in each item:(1) Principal
The principal amount of the Trust Property shall be recorded. The time to record the amount thereof
shall be the day the trust is established or the day the additional principal is established.
In addition, the day on which the reduction in principal is processed in accordance with the execution ofa partial cancellation of the consignor shall be the day following the partial cancellation application.
(For bond investment trusts that are set by interest on custody government bonds, etc., the date ofapplication for partial cancellation.)(2) Foreign Currency FundThe amount of assets denominated in foreign currencies (excluding those to be exchanged for the
principal amount at the beginning of currency swap transactions and to be exchanged again at the end ofcurrency swap transactions) acquired in the currency in which the base value of the Trust Property is
indicated shall be recorded. The time to record the amount thereof shall be the date of delivery for such
assets.
(3) Reserve for Stock Price Fluctuations
Based on the terms and conditions of the Contract, the accumulated reserve for stock price fluctuations
shall be recorded.
(4) Reserve for Value Fluctuations

Based on the terms and conditions of the Contract, the accumulated reserve for value fluctuations shallbe recorded.
(5) Reserve for Dividends
The amount of reserve for dividends which has been set aside based on the provisions of Article 55 of
the Rules concerning Valuation and Accounting of Investment Trust Property (hereinafter referred to as
the “Accounting Rules”) shall be recorded.
(6) Profit Carried Forward
The amount of profit carried forward calculated based on the provisions of Article 56, Article 58 or
Article 63 of the Accounting Rules shall be recorded.
(7) Deficit Carried Forward
The amount of deficit carried forward calculated based on the provisions of Article 55, Article 56,
Article 58 or Article 63 of the Accounting Rules shall be recorded.
(8) Retained Earnings
The Balance Sheet shall be prepared by deducting the total amount of liabilities and the amount ofprincipal from the total amount of assets

Article 5

Expenses

The account titles for expenses specified in the By-laws stipulated in Article 15, Paragraph 2 of the Rules shallbe the titles specified in the following items, and the amount specified in each item shall be recorded at the time
specified in each item.
(1) Subscription Fees
The amount paid from the Trust Property as a subscription fee at the initial establishment of the trust
based on the terms and conditions of the Contract, shall be recorded.
(2) Losses on Trading of Securities
For securities, etc., of the Trust Property, if any of the following applies, the amount shall be recorded at
the time specified in each item.
(a) When securities, etc. held by the Trust Property are sold, the amount of loss shall be recorded as thedifference between the book value and the sale value of such sold securities, etc. (less commissions
for sales and transaction taxes on securities, etc., and excluding accrued interest and prepaid accrued
interest on interest-bearing bonds and accrued interest on discount bonds for the period from the timeof acquisition thereof to the time of the sale thereof (The sale consignment fee and securities, etc.
transaction tax are deducted, and accrued interest and prepaid accrued interest on interest-bearing
bonds and accrued interest corresponding to the period from the acquisition (For those that have been
re-evaluated with new valuation after acquisition, the most recent valuation. The same shall apply
hereinafter in this item and Item 1 of the next article.) to the sale of discount bonds are not included in
the sale value.) The time to record the amount thereof shall be the date on which the sales agreement
was made.
(b) In cases where securities, etc. held by the Trust Property have been redeemed, the amount of loss
shall be recorded as the difference between the book value of such securities, etc., and the redemption

value (accrued interest for the period from the acquisition of the discount bonds to the redemption is
not included in the redemption value.) The time to record the amount thereof shall be the redemption
date.
(c) In the event of losses arising from revaluation of securities, etc., held by the Trust Property of anadditional investment trust in accordance with the provisions of Article 55, Paragraph 1, Item 1,
Article 56, Paragraph 1, Item 1 or Article 58, Item 1 of the Accounting Rules, the amount equivalent
to losses on valuation of such securities, etc., and the amount included in the valuation loss
adjustment account (excluding amounts included in losses on valuation of futures transactions, etc.)
shall be recorded. The time to record the amount thereof shall be the last day of the accounting period
as stipulated in the Contract.
(d) In the event that the securities, etc. held by the Trust Property of the mother fund are revalued inaccordance with the provisions of Article 62 of the Accounting Rules and a loss is incurred, anamount equivalent to losses arising from revaluation of such securities, etc., shall be recorded. The
time to record the amount thereof shall be the last day of the accounting period as stipulated in theContract.
(3) Losses on Futures Transactions, etc.
For futures transactions or option transactions, etc. by the Trust Property, if any of the following applies,
the amount shall be recorded at the time specified in each item.
(a) In the case where a resale or a repurchase or a sell-back of a subject of transaction has been carriedout (hereinafter referred to as the “Reverse Transaction”) the difference between the book value andthe value of the subject of such Reverse Transactions (by adding or subtracting the cost required forsuch transactions) which is the amount of loss to the Trust Property shall be recorded. The time torecord the amount thereof shall be the date on which the Reverse Transaction agreement was made.
(b) If delivery is made with contracts for difference in futures transactions, the difference between thebook value of the subject of such transactions and the settlement value thereof which is the amount ofloss to the Trust Property shall be recorded. The accounting period for recording such amount shallbe the date of delivery settlement.
The amount and the accounting period for such amounts in the case of settlement in kind of futurestransactions pertaining to standard items (including “standard items” in commodity futurestransactions) deemed to be government bonds or foreign government bonds shall be the same as in
the case of contracts for difference.
(c) If delivery is made through settlement in kind in futures transactions, the difference between the
futures purchase account and the accounts payable for futures transactions and the difference
between the futures sales account and the accounts receivable for futures transactions which are theamount of loss to the Trust Property shall be recorded. The time to record the amount thereof shall be
the next business day after delivery settlement.
(d) In the event of exercise, waiver or non-exercise of any rights in relation to option transactions, theamount equivalent to the loss for Trust Property shall be recorded as the book value of said option
which is equivalent to the amount corresponding to such exercise, waiver or non-exercise of suchrights. The time to record the amount thereof shall be the date of exercise, waiver or non-exercise ofsuch rights.
(e) In the event of any loss arising from revaluation of the transactions subject to futures transactions or
option transactions, etc., the amount equivalent to such valuation loss and the amount included in thevaluation loss adjustment account as a valuation loss for futures transactions, etc., shall be recorded.
The time to record the amount thereof shall be the last day of the accounting period as stipulated in
the Contract.
(f) At the time of premature settlement or termination of the contract pertaining to the swap transaction,
the difference between the book value of the subject of such transaction and the settlement value
which is the amount of loss to the Trust Property shall be recorded. The time to record the amountthereof shall be the date the contract for premature settlement is established or the date of terminationof the contract.
(g) In the event that losses arise from revaluation of the Trust Property of an open investment trust in
swap transactions, forward rate transactions, forward currency transactions and non-deliverable
forward transactions based on the provisions of Article 55, Paragraph 1, Item 1, Article 56, Item 1 or
Article 58, Paragraph 1, Items 2 and 3 of the Accounting Rules, the amount equivalent to thevaluation loss of said swap transaction, forward rate transaction, forward currency transaction andnon-deliverable forward transaction and the amount recorded in the valuation loss adjustment
account shall be recorded. The time to record the amount thereof shall be the last day of theaccounting period as stipulated in the Contract.
(4) Interest Expenses
Interest expense on loans and collateral received, and swap interest expense on swap transactions shallbe recorded daily. In addition, the settlement amount to be paid for forward rate transactions andforward currency transactions shall be recorded on the fixed date.
In preparing the profit and loss and retained earnings statement as defined in the Rules for Investment
Trust Financial Statements (hereinafter referred to as the “Profit and Loss Statement”), the amountcalculated by adding the cumulative amount of interest expense withdrawn at the time of thecancellation during the accounting period to the balance at the end of the period recorded as interest
expense in the Trust Property shall be recorded.
(5) Trustee Fees
Based on the terms and conditions of the Contract, the trust fees to be paid from the Trust Property to
the trustee shall be recorded daily. However, among unit type investment trusts, those for which thecontract stipulates when to record such amount shall be recorded on the day specified.
(6) Consignor Fees
The trust fees to be paid from the Trust Property to the consignor based on the terms and conditions of
the Contract, shall be recorded daily. However, among unit type investment trusts, those for which theContract stipulates the time to record such amount shall be recorded on the day specified.
(7) Losses on Early Cancellation
The difference between the initial issue value and cancellation value of beneficiary certificates subject

to partial cancellation shall be recorded as income paid from the Trust Property to the consignor upon
execution of partial cancellation by consignor. However, for open investment trust for the purpose ofinvestment in public and corporate bonds, the amount calculated based on the provisions of Article 59,
Paragraph 2 of the Accounting Rules shall be recorded. The time to record the amount thereof shall be
the date on which the principal amount is to be decreased in accounting processes in accordance withthe execution of partial early cancellation.
(8) Additional Trust Losses
The amount to be treated as a loss of Trust Property in connection with the additional trust of theprincipal, and the difference between the amount of the additional trust and such principal amount shallbe recorded. The time to record the amount thereof shall be the date on which such principal isadditionally entrusted.
(9) Other Foreign Currency Expenses
The amount of miscellaneous expenses and miscellaneous losses incurred with respect to foreign
currency-denominated assets held by the Trust Property shall be recorded.
(10) Other Expenses
The amount of miscellaneous expenses and miscellaneous losses incurred concerning the Trust
Property shall be recorded.
(11) Dividends
The amount of dividends of the Trust Property shall be recorded. The time to record the amount thereof
shall be the last day of the accounting period as stipulated in the Contract.
(12) Amount of Reserve for Stock Price Fluctuations
The amount of reserve for stock price fluctuations calculated based on the terms and conditions of theContract shall be recorded. The time for recording such amount shall be the date stipulated in theContract.
(13) Amount of Reserve for Value Fluctuations
The amount of reserve for value fluctuations calculated based on the terms and conditions of theContract shall be recorded. The time for recording such amount shall be the date stipulated in theContract.
(14) Amount of Reserve for Dividends
The amount of reserve for dividends for the current accounting period calculated based on theprovisions of Article 55, Paragraph 1, Items 4 and 5, and Article 56, Item 4 of the Accounting Rules
shall be recorded. The time to record the amount thereof shall be the last day of the accounting period as
stipulated in the Contract.
(15) Revenue Adjustment (amount equivalent to loss on trading of securities)
The amount of loss equivalent to the loss on trading of securities out of the revenue adjustment
calculated based on the provisions of Article 57 of the Accounting Rules shall be recorded. The time torecord the amount thereof shall be the date on which the principal is additionally entrusted.
(16) Revenue Adjustment (other revenue adjustment)
The amount of loss of any other revenue adjustment out of the revenue adjustment calculated based onthe provisions of Article 57 of the Accounting Rules shall be recorded. The time to record the amountthereof shall be the date on which the principal is additionally entrusted.
(17) Valuation Loss Adjustment Account
The amount of the valuation loss adjustment account calculated based on the provisions of Article 57 of
the Accounting Rules shall be recorded. The time to record the amount thereof shall be the date on
which the principal amount is to be decreased in accounting processes in accordance with the executionof partial early cancellation.

(18) Compensation Amount of Deficit Carried Forward
The amount to be compensated for the deficit carried forward shall be recorded based on the provisionsof Article 55, Paragraph 1, Items 4 to 6 of the Accounting Rules. The time to record the amount thereof
shall be the last day of the accounting period as stipulated in the Contract.
(19) Current Deficit
The amount of current deficit calculated based on the provisions of Articles 56, 58 and 63 of the
Accounting Rules shall be recorded.

Article 6

Profit

The account titles for revenues specified in the By-laws stipulated in Article 15, Paragraph 2 of the Rules shallbe the titles specified in the following items, and the amount specified in each item shall be recorded at the time
specified in each item.
(1) Gain on Securities Transactions
For securities, etc., of the Trust Property, if any of the following applies, the amount shall be recorded at
the time specified in each item.
(a) When securities, etc. held by the Trust Property are sold, the amount of profit shall be recorded as
the difference between the book value and the sale value of such sold securities, etc., (excluding
brokerage commissions for sales and transaction taxes on securities, etc., and excluding accrued
interest and prepaid accrued interest on interest-bearing bonds and accrued interest on the period
from the time of acquisition to the sale of discount bonds) shall be recorded as the amount for profit.
The time to record the amount thereof shall be the date on which the sales agreement was made.
(b) in cases where securities, etc., held by the Trust Property have been redeemed, the difference
between the book value of such securities, etc., and the redemption value (accrued interest receivablefor the period from the time of acquisition of the discount bonds to the time of sale shall not be
included in such redemption value) shall be recorded as the amount of profit for the Trust Property.
The time to record the amount thereof shall be the redemption date.
(c) When securities, etc., held by the Trust Property of an open investment trust are revalued based on
the provisions of Article 55, Paragraph 1, Item 1 of the Accounting Rules and profits are accrued
from such revaluation, the amount equivalent to the valuation gain on such securities, etc. and theamount included in the valuation gain adjustment account (excluding the amount included in thevaluation gain on futures transactions, etc.) shall be recorded. The time to record the amount thereofshall be the last day of the accounting period as stipulated in the Contract.
(d) In the event that the securities, etc., held by the Trust Property of the mother fund are revalued basedon the provisions of Article 62 of the Accounting Rules and there is profit, the amount equivalent tothe valuation profit on the said securities, etc., shall be recorded. The time to record the amountthereof shall be the last day of the accounting period as stipulated in the Contract.
(2) Gains on Futures Transactions, etc.
For futures transactions or option transactions, etc. by the Trust Property, if any of the following applies,
the amount shall be recorded at the time specified in each item.
(a) In the case of Reverse Transaction of any transaction subject to futures transaction or option
transaction, the amount of profit to the Trust Property shall be recorded as the difference between thebook value of the subject of the transaction and the value of the Reverse Transaction. (The costrequired for such transaction shall be adjusted by adding or subtracting.) The time to record theamount thereof shall be the date on which the Reverse Transaction agreement was made.
(b) If delivery is made with contracts for difference in futures transactions, the difference between thebook value of the subject of such transactions and the settlement value thereof which is the amount of
profit to the Trust Property shall be recorded. The accounting period for recording such amount shallbe the date of delivery settlement.
(c) If delivery is made through settlement in kind in futures transactions, the difference between the
futures purchase account and the accounts payable for futures transactions and the difference
between the futures sales account and the accounts receivable for futures transactions which are theamount of profit to the Trust Property shall be recorded. The time to record the amount thereof shallbe the next business day after delivery settlement.
(d) In the event in which rights are exercised, rights are not exercised, or obligations are terminated inrelation to option transactions, the amount equivalent to the profit for Trust Property shall berecorded at the book value of such option which is equivalent to the amount corresponding to such
exercise or non-exercise of such rights, or termination of such obligations. The time to record theamount thereof shall be the date of exercise of such rights, or for non-enforcement, the date of
termination of such obligation.
(e) In the event that any profit arising from revaluation of the transactions subject to futures transactions
or option transactions, etc., the amount equivalent to such valuation gain and the valuation gain
adjustment account included as valuation profit adjustment for futures transactions, etc., shall berecorded. The time to record the amount thereof shall be the last day of the accounting period as
stipulated in the Contract.
(f) At the time of interim settlement or termination of the contract pertaining to swap transaction, thedifference between the book value of the subject of such transaction and the settlement value thereof
shall be recorded as the amount of profit of the Trust Property. The time to record the amount thereof
shall be the date the contract for premature settlement is established or the date of termination of thecontract.
(g) In the event that profits are earned through revaluation of the Trust Property of an open investment

trust in swap transactions, forward rate transactions, forward currency transactions andnon-deliverable forward transactions pursuant to the provisions of Article 55, Paragraph 1, Item 1 of
the Accounting Rules, the amount equivalent to the valuation gain of said swap transaction, forward
rate transaction, forward currency transaction and the amount recorded in the valuation gain
adjustment account shall be recorded. The time to record the amount thereof shall be the last day of
the accounting period as stipulated in the Contract.
(3) Profit and Loss on Buying and Selling of Securities, etc.
In preparing the Profit and Loss Statement, the amount obtained by adding the cumulative amount of
the profit and loss on buying and selling of securities, etc., which has been withdrawn at the time ofcancellation during the period to the balance at the end of the period for profit and loss on trading of
securities, etc., shall be recorded. In the case of the unit type, the amount calculated by adding(subtracting) the amount obtained by subtracting the valuation profit and loss on trading of securities,
etc. at the end of the previous accounting period from the valuation profit and loss on trading of
securities, etc. at the end of the current accounting period shall be recorded.
(4) Profit and Loss on Derivative Transactions, etc.
In preparing the Profit and Loss Statement, the amount obtained by adding the cumulative amount of
the profit and loss on derivative transactions, etc., withdrawn at the time of cancellation during theaccounting period to the balance at the end of the period for the profit and loss on derivative transactions,etc., shall be recorded. In the case of a unit type, the amount obtained by adding (subtracting) theamount obtained by deducting the valuation profit and loss on derivative transactions, etc., at the end of
the previous accounting period from the valuation profit and loss on derivative transactions, etc., at theend of the current period shall be recorded.
(5) Dividend Income
Dividends on profits held by the Trust Property shall be recorded. The time to record the amount thereof
shall be the day on which the ex-dividend stocks are purchased or sold.
For investment trust beneficiary certificates, the amount of dividends shall be recorded. The time torecord the amount thereof shall be the day on which the ex-dividend investment trusts are purchased or
sold.
In preparing the Profit and Loss Statement, the amount obtained by adding the cumulative amount ofdividend income withdrawn at the time of cancellation during the period to the balance of dividend
income at the end of the accounting period shall be recorded.
(6) Dividend Stocks
In the case of stock dividends pertaining to shares held by the Trust Property, if the quantity of such
dividends is fixed, the face value or the issue value equivalent to the total amount of dividends shall berecorded, and if the amount of dividends is not fixed, the face value or the issue value equivalent to 90%
or less of the expected amount of dividends shall be recorded. The time to record the amount thereof
shall be the day on which the ex-dividend stocks are purchased or sold.
In preparing the Profit and Loss Statement, the amount calculated by adding the cumulative amount ofdividend stocks withdrawn at the time of cancellation during the accounting period to the balance of

dividend stocks at the end of the period shall be recorded.
(7) Interest Income
The interest received on deposits, money trusts, call loans, discount bills, and other securities, as well as
the accrued interest on interest-bearing bonds (including investment corporation bonds) or discountbonds (including investment corporation bonds) after the date of ownership of the Trust Property andthe receivable swap interest rates on swap transactions shall be recorded daily. In addition, the amountreceived for settlement amount of forward rate transactions and forward currency transactions shall berecorded on the fixed date.
In preparing the Profit and Loss Statement, the amount calculated by adding the cumulative amount ofinterest income withdrawn at the time of cancellation during the accounting period to the balance ofinterest income at the end of the period shall be recorded.
(8) Foreign Exchange Gains and Losses
In preparing the Profit and Loss Statement, the amount of other foreign currency revenues less otherforeign currency expenses at the end of the period shall be recorded.
(9) Gain on Cancellation
The amount to be compensated for a part of the loss incurred in the Trust Property due to the executionof partial cancellation by the consignor shall be the difference between the initial issue value and thecancellation value of the beneficiary certificates subject to partial cancellation. However, for open
investment trusts for the purpose of investing in public and corporate bonds, the amount calculated
based on the provisions of Article 60, Paragraph 2 of the Accounting Rules shall be recorded. The time
to record the amount thereof shall be the date on which the principal amount is to be decreased inaccounting processes in accordance with the execution of partial early cancellation.
(10) Gain on Additional Subscriptions
The amount to be treated as the profit of the Trust Property associated with the additional trust of theprincipal, and the difference between the amount of the additional trust and the initial principal amountshall be recorded. The time to record the amount thereof shall be the date on which such principal isadditionally entrusted.
(11) Other Foreign Currency Revenue
Miscellaneous revenue and miscellaneous income arising from assets denominated in foreign
currencies held by the Trust Property shall be recorded.
(12) Other Revenue
Charges for securities lent and miscellaneous income and revenue arising from Trust Property shall berecorded.
(13) Reversal Amount of Reserve for Stock Price Fluctuations
The amount of any reversal of reserve for stock price fluctuations based on the terms and conditions of
the Contract shall be recorded. The time for recording such amount shall be the day specified in theContract or in the event of a partial cancellation, the day on which the reduction in principal isprocessed in accounting with the execution of such cancellation.
(14) Reversal Amount of Reserve for Value Fluctuations

The amount of reserve for value fluctuations reversed based on the terms and conditions of the Contract
shall be recorded. The time for recording such amount shall be the day specified in the Contract or in theevent of a partial cancellation, the day on which the reduction in principal is processed in accounting
with the execution of such cancellation.
(15) Revenue Adjustment (amount equivalent to gain on securities transactions)
The amount of profit equivalent to gain on securities transactions among the revenue adjustments
calculated based on provisions of Article 57 of the Accounting Rules shall be recorded. The time torecord the amount thereof shall be the date on which the principal is additionally entrusted.
(16) Revenue Adjustment (other revenue adjustment)
The amount of profit of any other revenue adjustment out of the revenue adjustment calculated based on
the provisions of Article 57 of the Accounting rules shall be recorded. The time to record the amountthereof shall be the date on which the principal is additionally entrusted.
(17) Valuation Gain Adjustment Account
The amount of the valuation gain adjustment account calculated based on provisions of Article 57 of the
Accounting Rules shall be recorded. The time to record the amount thereof shall be the date on which
the principal amount is to be decreased in accounting processes in accordance with the execution ofpartial early cancellation.
(18) Reversal Amount of Reserve for Dividends
The amount of any reversal of reserve for distribution based on the provisions of Article 55, Paragraph
1, Item 6 of the Accounting Rules shall be recorded. The time to record the amount thereof shall be thelast day of the accounting period as stipulated in the Contract.
(19) Current Income
The amount of the current income calculated based on the provisions of Article 56, Article 58 and
Article 63 of the Accounting Rules shall be included.

Article 7

Account Titles in the Profit and Loss Statement

In preparing the Profit and Loss Statement, in addition to the titles specified in Articles 5 and 6, the titles
specified in the following items shall be established, and the amount specified in each item shall be recorded in
the titles.
(1) Current Profit Dividends or Current Loss Dividends Due to Early Cancellation
In preparing the Profit and Loss Statement of an open investment trust, the accumulated amount ofdividends distributed as profits or losses, profit and loss on buying and selling of securities, etc., andvaluation profit and loss adjustment accounts arising from early cancellation during the accounting
period shall be recorded.
(2) Opening Surplus or Opening Deficit
In preparing the Profit and Loss Statement, the amount recorded as the ending surplus in the previous
accounting period shall be recorded.
(3) Increase or Decrease Due to Additional Trusts for the Current Period
In preparing the Profit and Loss Statement, the accumulated amount of revenue adjustments associatedwith the additional trust during the period shall be recorded. For the mother fund, the accumulated
amount of profit and loss on additional trust during the period shall be recorded.
(4) Increase or Decrease Due to Early Cancellation during the Current Period
In preparing the Profit and Loss Statement, the accumulated amount of revenue adjustment, reserve fordividends and loss carried forward due to early cancellation during the accounting period shall berecorded. In addition, for unit type securities investment trusts and mother fund beneficiary securities,
the accumulated amount of profit and loss due to early cancelation during the accounting period shall berecorded.

Article 8

Form for Supplementary Schedules

The form of supplementary schedules provided in Article 25, Paragraph 2 of the Rules shall be the form
specified in the following items with respect to the supplementary schedules specified in the items:(1) Schedule of Short Sale Securities: Appended Form 1(2) Schedule of Accounts Receivable: Appended Form 2(3) Unit Type Distributable Amount Statement: Appended Form 1 stipulated in Article 11 of the By-laws on
the “Rules concerning Valuation and Accounting of Investment Trust Property” (hereinafter referred to as
the “By-laws on Valuation, etc.”) (the name of such form shall be replaced with “Unit Type Distributable
Amount Statement.”)(4) Additional Type Dividends Statement: Appended Form 2 stipulated in Article 12 of the By-laws on
Valuation, etc.
(5) Status of Transactions with Interested Parties, etc.: Appended Form 3

Supplementary Provision
These By-laws shall come into effect on April 1, 2004.

Supplementary ProvisionThis amendment shall come into effect on March 18, 2005.

Supplementary ProvisionThis amendment shall come into effect on May 19, 2005.

Supplementary ProvisionThis amendment shall come into effect on January 20, 2006.

Supplementary ProvisionThis amendment shall come into effect on May 24, 2006.

Supplementary ProvisionThis amendment shall come into effect on June 19, 2006.

Supplementary ProvisionThis amendment shall come into effect on January 11, 2007.

Supplementary Provisions
This amendment shall come into effect from the newly recorded accrued dividend receivable from July 1,
2007.
Accrued dividends receivable already recorded on the effective date shall be applied from those renewed on
and after the effective date.
[Reference]
Provisions applicable until June 30, 2007: Article 6(5) Dividend Income
The amount of dividend on profits pertaining to shares held by Trust Property shall be recorded if theamount has been determined, or shall be recorded if not determined, in an amount equivalent to 90%of the expected dividend amount.
The time to record the amount thereof shall be the day on which the ex-dividend stocks are purchased
or sold.
For investment trust beneficiary certificates, the amount of dividends shall be recorded. The time torecord the amount thereof shall be the day on which the ex-dividend investment trusts are purchased
or sold.
In preparing the Profit and Loss Statement, the amount obtained by adding the cumulative amount ofdividend income withdrawn at the time of early cancellation during the period, to the balance ofdividend income at the end of the period shall be recorded.

Supplementary ProvisionThis amendment shall come into effect on January 19, 2007.

Supplementary Provisions
This amendment shall come into effect on September 30, 2007.
However, any documents specified in Article 8, Item 1 prior to the amendment intended for the calculation
period whose preparation commenced prior to the implementation date, the provisions then in force may
remain applicable.

Supplementary ProvisionThis amendment shall come into effect on November 16, 2007.

Supplementary ProvisionThis amendment shall come into effect on December 21, 2007.

Supplementary ProvisionThis amendment shall come into effect from the date on which the Option Certificates, etc., are listed on the
Osaka Securities Exchange, Inc.
Provided, however, with regard to investment Trust Property for which the calculation period commenced
prior to the implementation date, the provisions then in force may remain applicable.

Supplementary Provisions
This amendment shall come into effect on January 16, 2009.
Provided, however, that short-term commercial and industrial bonds stipulated in Article 38 of the
Supplementary Provisions of the Shoko Chukin Bank Limited Act (Act No. 74 of 2007) shall be deemed to be
short-term corporate bonds stipulated in Article 2, Item 21.

Supplementary ProvisionThis amendment shall come into effect on March 19, 2009.

Supplementary Provisions
This amendment shall come into effect on December 1, 2014.
* The amended provisions are as follows:
Article 2, Items 12 and 48

Supplementary Provisions
This amendment shall come into effect on May 1, 2019.
* Necessary arrangement in connection with the change of era nameSupplementary Provisions
This amendment shall come into effect on September 12, 2019.
* Amendment of the deviation, etc. of the provisions due to partial amendment of the “Rules concerning Valuation andAccounting of Investment Trust Property” (Amended to move Article 63 to Article 56, etc.)

Supplementary Provisions
This amendment shall come into effect on January 1, 2021.
* New establishment of Article 2, Item 1 (34) (g)Appended Form No. 1

Schedule of Short Sale Securities(Unit:
Short sale securities
Issue

Face value ofthe sellcontract

Book value

Valuation

Valuation
profit and loss

Remarks)

Appended Form No. 2

Schedule of Accounts Receivable(Unit:
Description

Scheduled date of income(YYYY/MM/DD):

Total

Issue

Quantity

AmountRemarks)

Appended Form No. 3

Status of Transactions with Interested Parties, etc.
From (YYYY/MM/DD)
To (YYYY/MM/DD)
Transaction amount, etc.
Division

Purchase
Of which, the amountamount, etc.
of transactions withA
interested parties B
Millions of yen

Stock certificates

Stock options certificates(Warrant certificates)
Option Certificates, etc.
Public and corporate
bonds
Corporate bonds withstock options(Convertible bonds)
Corporate bonds withstock options(Corporate bonds withstock warrants)

Other securities

Stock futures transactions
Stock option transactions
Bond futures transactions
Bond option transactions
Other futures transactions
Other option transactions
Deposits
Negotiable certificates ofdeposits
Money trusts
OthersMillions of yen

B
A

Sales
Of which, the amountamount, etc.
of transactions withC
interested parties D% Millions of yen

Millions of yen

DC%Rules for Valuation and Accounting of Investment Trust Properties
Established on March 19, 2004
Revised on July 16, 2004
Revised on November 19, 2004
Revised on March 18, 2005
Revised on November 18, 2005
Revised on January 20, 2006
Revised on May 24, 2006
Revised on January 19, 2007
Revised on September 21, 2007
Revised on December 21, 2007
Revised on March 21, 2008
Revised on July 18, 2008
Revised on September 19, 2008
Revised on January 16, 2009
Revised on April 24, 2009
Revised on September 16, 2009
Revised on January 21, 2010
Revised on March 18, 2010
Revised on December 20, 2012
Revised on November 20, 2014
Revised on July 16, 2015
Revised on December 21, 2017
Revised on March 11, 2021

Part 1

General Provisions

Article 1

PurposeThe purpose of these Rules is to aid in protecting investors by optimizing the valuation and accounting of trust
property through the establishment of valuations and accounting methods for incorporated assets in investment
trust property (hereinafter referred to as “Trust Property”) and the establishment of calculations, etc., for theBase Value for beneficiary certificates (including book-entry transfer beneficial interest in an investment trust;the same shall apply hereinafter).

Part 2

Valuation of Incorporated Assets

Chapter 1
Article 2

General Provisions
Duty of Loyalty and Duty of Due Care of the Management Company

The settlor company of an investment trust (meaning a settlor company of an investment trust as defined in
Article 2, Paragraph 11 of the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951,
hereinafter referred to as the “Investment Trust Act”), hereinafter referred to as the “Management Company” )shall conduct such business with loyalty and the due care of a prudent manager for the beneficiaries invaluations of incorporated assets for Trust Properties (hereinafter referred to as the “Incorporated Assets”).

Article 3

Principles for Valuations of Incorporated Assets

The following matters shall be observed in valuations of Incorporated Assets:(1) In principle, valuations of Incorporated Assets shall be conducted using market value (meaning theprice that would be received through the sale of assets or the price that would be paid for the transfer of
liabilities in such transactions assuming that orderly transactions are carried out between market
participants on the calculation date) in accordance with accounting standards for calculating market
value.
(2) Continuity shall be the acting principle for valuations of Incorporated Assets.
(3) When a price furnished by a third party is used in valuations of Incorporated Assets, the validity,
rationality, etc., of using said price in valuations shall be periodically and continuously verified within
the company. The Management Company shall also maintain an internal system necessary forverification.
(4) When the Management Company determines it to be difficult to base valuations of Incorporated Assets
on the provisions set forth in the respective Articles in these Rules, the Management Company shallmake a valuation at a price deemed appropriate by the Management Company in accordance withaccounting standards for calculating market value. In this case, however, the background to arrive at thedecision, the method for calculating the price, internal procedures, etc., shall be recorded in writing(including electronic files) and stored for 7 years.

Article 4

Maintaining the Management Company’s Internal System

The Management Company shall maintain an internal system and endeavor to ensure the reliability ofvaluations of Incorporated Assets.

Article 5

Disclosure of Valuation Methods, etc.

The valuation methods and the appraised value of Incorporated Assets shall in principle be disclosed.

Chapter 2
Article 6
1.

Valuation of Stocks
Valuation of Stocks Listed on Domestic Exchanges

Stocks listed on a domestic financial instruments exchange (meaning a financial instruments exchange as
defined in Article 2, Paragraph 16 of the Financial Instruments and Exchange Act (Act No. 25 of 1948,
hereinafter referred to as the “FIEA”), hereinafter an “Exchange”) shall in principle be valued at the
Exchange’s final market price on the calculation date.

2.

Stocks listed on two or more Exchanges shall be valued as provided for in the following items:(1) Stocks listed on two or more Exchanges that include the Tokyo Stock Exchange (excluding stocks
newly listed on the Tokyo Stock Exchange which have been previously listed on a different Exchange
and for which the Exchange for valuation (meaning the Exchange which will provide valuation usingthat Exchange’s final market price, etc.; the same shall apply hereinafter) has not been changed by the
Self-Regulation Committee since being listed on the Tokyo Stock Exchange) shall be valued at the final
market price on the Tokyo Stock Exchange on the calculation date.
Provided, however, that if any Exchange other than the Tokyo Stock Exchange is deemed to beappropriate for valuation using that Exchange’s final market price, etc. considering transaction volume

and the number of days for which a price was attached by the Self-Regulation Committee (hereinafter,
the “Pricing Days”), valuation shall be conducted using the final market price of the other Exchange on
the calculation date.
(2) Stocks listed on two or more Exchanges that do not include the Tokyo Stock Exchange (excluding
stocks newly listed on an Exchange which have been previously listed on a different Exchange and forwhich the Exchange for valuation has not been changed by the Self-Regulation Committee since being
listed on said Exchange) shall be valued by the Self-Regulation Committee using the final market price,
etc. on the calculation date of the Exchange for valuation as set forth in Article 7 of the Rules inconsideration of the Pricing Days and transaction volume.
3.

Stocks newly listed on two or more Exchanges including the Tokyo Stock Exchange shall be valued at the
final market price on the Tokyo Stock Exchange on the calculation date, while stocks newly listed on two
or more Exchanges that do not include the Tokyo Stock Exchange shall be valued at the final market priceon the calculation date of the principal Exchange notified in connection with the new listing.
Provided, however, that if the Self-Regulation Committee designates a different Exchange as the
Exchange for valuation for a stock in consideration of the regional structure, etc. of the shareholders of
said stock, that stock shall be valued at the final market price, etc. on the calculation date of the designatedExchange.

4.

Notwithstanding the provisions of the preceding two paragraphs, if there are unavoidable circumstancessuch as difficulties in convening a Self-Regulation Committee meeting, the head of the Self-Regulation
Committee may determine the Exchange for valuation after consultation with other committee members,
etc. In this case, the Association shall promptly report the details of the decision to the members of the
Self-Regulation Committee and also notify the Management Company.

Article 7
1.

Changing the Exchange for Valuation

The Self-Regulation Committee shall promptly investigate the Pricing Days, transaction volume, etc. for adomestic stock when an Exchange listing said stock has been added or when a member Management
Company proposes that changing the Exchange for valuation is appropriate in light of the Pricing Days
and transaction volume for said stock, and shall designate the exchange for valuation.
In the event that the Exchange for valuation for said stock is changed, the Association shall notify
the Management Company of the newly determined Exchange for valuation (hereinafter referred to as the“New Exchange for Valuation”).

2.

In the event that a stock’s issuing company submits an application for delisting to the Exchange forvaluation that lists said stock, the New Exchange for Valuation shall be as follows and the Association
shall notify the Management Company of the New Exchange for Valuation.
(1) If the stock is listed on one other Exchange in addition to the Exchange for valuation, then the other
Exchange(2) If the stock is listed on two or more Exchanges in addition to the Exchange for valuation and one ofthose is the Tokyo Stock Exchange, then the Tokyo Stock Exchange(3) If the stock is listed on two or more Exchanges in addition to the Exchange for valuation and none arethe Tokyo Stock Exchange, then the principal Exchange that was notified for the new listing3.

When the Exchange for Valuation is changed pursuant to the provisions of the preceding two paragraphs,
valuation shall be made using the final market price, etc. of the New Exchange for Valuation on thecalculation date.

4.

Notwithstanding the provisions in Paragraph 1, if there are unavoidable circumstances such as difficulties
in convening a Self-Regulation Committee meeting, the head of the Self-Regulation Committee may
determine the Exchange for valuation after consultation with other committee members, etc. In this case,
the Association shall promptly report the details of its decision to the members of the Self-Regulation
Committee.

Article 8
1.

Stock Valuations without a Final Market Price on the Calculation Date

If a domestic stock has no final market price on an Exchange on the calculation date, the stock shall bevalued using the final market price on the Exchange on the day nearest to the calculation date.

2.

When an indicative quote on the calculation date for an Exchange declines by at least 10% compared to
the final market price on the day nearest to the calculation date, notwithstanding the provision in thepreceding paragraph, valuations shall use that indicative quote on the Exchange (when both an indicative
bid price and indicative asked price are shown, the indicative bid price shall be used; the same shall apply
hereinafter).
If continuing to use only the indicative quote from the day following the day of valuation using an
indicative quote, then valuations shall be made using the indicative quote on the calculation date. If neither
a final market price nor an indicative quote is available, the indicative quote from the day nearest to thecalculation date shall be used.

3.

If valuing using the final market price of the closest date is not reasonable due to reasons such as theindicative quote on the calculation date in an Exchange either reaches the low or high point for a stop orderor shows significant fluctuations, the indicative quote may be used regardless of the provisions in thepreceding two paragraphs. Valuations from an indicative quote in such cases shall be conducted according
to the previous example with reference to similar cases from the past.
The provisory clause in the preceding paragraph shall apply mutatis mutandis to handling of all days
following the day on which a valuation was conducted using that indicative quote.

4.

If there is no final market price on the first day of trading of a new public stock, valuations shall use theindicative quote from the Exchange. Provided, however, that if such indications are buy quotes and are
higher than the public offering price, those indications shall not be adopted.
The provisory clause in Paragraph 2 shall apply mutatis mutandis to the handling of all days
following the day on which valuations were conducted using the indicative quote.
When the indicative quote is adopted, the Association shall notify the member Management
Company thereof.

Article 91.

Valuation of Stocks with Ex-rights Price, etc.

The provisions of Article 6, Paragraph 1 shall apply mutatis mutandis to valuations of old stocks and newstocks when their stock subscription warrants expire (hereinafter referred to as “New and Old Stocks”),
valuations of stocks when either their claims for dividends have expired or when their subscription rights
to subsidiary shares have expired (hereinafter referred to as “Ex-Rights Stocks”), valuations of stocks
once they have started trading following a reverse stock split (hereinafter referred to as “Stock With
Trading Dates Starting Post-Merger”), and valuations of new stocks through a merger when said company
merger goes into effect.
2.

If there are no final market prices on the calculation date for New and Old Stocks, Ex-Rights Stocks, Stockwith Trading Dates Starting Post-Merger, and new stocks through a merger, valuations shall be conductedusing the respective indicative quote for each stock in the Exchange on the calculation date.
If there are no indicative quotes for the stocks in the Exchange, the stocks shall be valued at the pricecalculated using the calculation method stipulated in the By-laws (hereinafter referred to as the“Theoretical Price”) until either a final market price or indicative quote is established.

3.

The price of said stock after the day following the day on which the stock is valued at an indicative quote
based on the provision in the preceding paragraph shall be valued at the price set forth in one of theapplicable items:(1) When only the indicative quote is continuously available The indicative quote on the calculation date(2) When no final market price or indicative quote exists The most recent indicative quote

4.

If the indicative quote for such stock becomes available on any day after the day on which said stock wasvalued at the Theoretical Price in accordance with the provisory clause in Paragraph 2, that stock shall bevalued using the indicative quote and the provisions in the preceding paragraph shall apply mutatis
mutandis to valuations of that stock on the days after the day on which said stock was valued at thatindicative quote.
* Article 2 of the By-laws* Committee Resolution 1

Article 10

Valuation of Old and New Stocks with Ex-rights Price, etc. from the Same Issuing Company

If both old stock and new stock from the same issuing company have an ex-rights price, (meaning a market
price that has stock subscription warrants or a market price that has lost the claim for dividends), thenvaluations for the old stock or new stock shall be carried out using the final market price or indicative quote of
the other stock if either the old stock or the new stock does not have a final market price or indicative quote on
the calculation date.

Article 11
1.

Special Provisions for Valuation of New Stocks Subject to When-issued Transactions

Notwithstanding the provisions of Article 9, in the event of any of the following events, new stock subject
to a when-issued transaction shall be valued at the price set forth in the respective items:(1) If there is no final market price or indicative quote for the new stock and the final market price of the oldstock has declined by 10% or more compared to the closest appraised value of the new stock (meaning
the appraised value of the new stock on the business day nearest to the calculation date. The same
applies to the rest of this article.), then the final market price of the old stock on the calculation dateshall be used
(2) If the new stock does not have a final market price and only has an indicative quote and the final market
price of the old stock has declined by 10% or more compared to the price valuation of the new stock
based on the provisions of each Paragraph in Article 8, then the final market price of the old stock on thecalculation date shall be used
2.

The price of the said new stock after the business days following the day on which the stock is valued at
the final market price of old stock based on the provisions in the preceding paragraph shall be valued at theprice set forth in one of the applicable items:(1) If the new stock has a final market price, then the final market price for that stock shall be used
(2) If the new stock only has an indicative quote, then the indicative quote for that stock shall be used.
Provided, however, that if the final market price of the old stock on the calculation date has declined by
10% or more compared to the indicative quote of the new stock, then the final market price of the oldstock on the calculation date shall be used
(3) If the new stock has neither a final market price nor an indicative quote, then its valuation price on themost recent day shall be used. Provided, however, that if the final market price of the old stock on thecalculation date has declined by 10% or more compared to the valuation price, then the final market
price for the old stock on the calculation date shall be used

Article 12

Deleted

Article 13

Valuation of Stock Scheduled to be Listed

Stock scheduled to be listed shall be valued at the indicative quote on the calculation date, and if no indicative
quote on the calculation date exists, then the stock shall be valued using the indicative quote on the day nearest
to the calculation date.
However, stock for which indicative quotes have not been announced shall be valued at their acquisition value.

Article 14
1.

Valuation of Unlisted Stock

Unlisted stock (excluding stock scheduled to be listed) shall be valued using the indicative quote provided
by Type I Financial Instruments Business Operators (meaning those engaged in Type I Financial
Instruments Business as defined in Article 28, Paragraph 1 of FIEA; the same shall apply hereinafter), etc.
and if no indicative quotes are provided on the calculation date, then the unlisted stock shall be valued
using the indicative quote offered on the day nearest to the calculation date.

2.

If one month has passed since the last day an indicative quote was announced and an indicative quote has
still not been announced, the stock shall be valued at the lower of the most recent indicative quote or the
price per share as calculated based on the net asset value of the most recently published fiscal year end
until an indicative quote is announced.

Article 15
1.

Valuation of Foreign Stock

Foreign stocks listed on a foreign Financial Instruments Market outside of Japan (meaning an Exchange asdefined in Article 2, Paragraph 8, Item 3 (b) of the FIEA; hereinafter an “Overseas Exchange”) shall in
principle be valued at the Overseas Exchange’s final market price on nearest day known at the time of
calculation.
2.

Foreign stock listed in multiple countries shall in principle be valued at the final market price on thenearest day known at the time of calculation on the Exchange where the stock is listed with thepresentation currency used at the time of acquisition (foreign stock acquired on a domestic Exchange shalluse the final market price on the domestic Exchange on the calculation date).
However, if foreign stock is acquired in a country where that stock is not listed, it shall be valued at
the final market price on the nearest day known at the time of calculation on an Overseas Exchange in acountry where that foreign stock is listed.

3.

Notwithstanding the provisions of the preceding two paragraphs, if there is no final market price on thecalculation date, valuation shall use the final market price on the day nearest to that day.
Provided, however, that if the market value disappears as a result of a certain time having passed
such as the suspension of trading or a devaluation of the indicative quote price only or if the Management
Company determines that using the final market price on the nearest day is not appropriate, then theManagement Company can proceed with a valuation using a appraised value that the Management
Company accepts with reasonable grounds based on the duty of loyalty or a appraised value which both
the Management Company and the Trustee accept with reasonable grounds after mutual consultation.
If there is no final market price on a domestic Exchange as of the calculation date for foreign stockacquired on a domestic Exchange (in principle, such foreign stock is limited to those listed on a major
Exchange in its own country or other countries outside of Japan), the foreign stock shall be valued at thestandard price on the calculation date as announced by the domestic Exchange.

4.

Foreign Stock registered in a foreign over-the-counter market shall be valued at the final market price or
the final indicative bid price quote on the nearest day known at the time of calculation in said foreign
over-the-counter market.

5.

The following unlisted or unregistered foreign stocks shall be valued at the prices set forth in therespective items:(1) Stock scheduled to be listed and stock scheduled to be registered (limited to those confirmed in aprospectus, etc.) The indicative quote on the nearest day known at the time of calculation. However,stock with indicative quotes that have not been announced shall use the stock’s acquisition value.
(2) Unlisted stocks, stock subscription warrants, and stock purchase warrants assigned as shareholders or
bondholders. The indicative quote on the nearest day known at the time of calculation. However, stockwith indicative quotes that have not been announced shall use the stock’s acquisition value.
(3) Unlisted stock and unregistered stock not included in the preceding two items. Indicative quotes
provided from Financial Instruments Business Operators (meaning Type I Financial Instruments
Business Operators and corporation established under the laws of a foreign country and similar thereto;the same shall apply hereinafter), etc. However, those without an indicative quote announced on thecalculation date shall use the closest indicative quote announced by Financial Instruments Business
Operators, etc.

6.

The provision in Article 14, Paragraph 2 shall apply mutatis mutandis to the valuation of unlisted stockand unregistered stock as defined in Item 3 above.

Article 15-2

Valuation of Depositary Receipts or Certificates of Deposit

The provisions of Article 6 through Article 15 shall apply mutatis mutandis to the valuation, etc. of Depositary
Receipts or Certificates of Deposit that possess the characteristics of stocks (hereinafter referred to as“Depositary Receipts, etc.” in this Article). In this case, the term “stock” in Article 6, Article 8 through Article
10, and Article 15 shall be deemed to be replaced with “Depositary Receipts, etc.,” the term “the stock” inArticle 6, Article 7, Article 9, and Article 15 shall be deemed to be replaced with “the Depositary Receipts,
etc.,” the term “domestic stock” in Article 7 shall be deemed to be replaced with “domestic Depositary Receipts,
etc.,” and the term “listed stock” in Article 7 shall be deemed to be replaced with “listed Depositary Receipts,etc.” In Article 9, the phrase “old stocks and new stocks when their stock subscription warrants expire(hereinafter referred to as “New and Old Stocks”)” shall be deemed to be replaced with “old Depositary
Receipts, etc. and new Depositary Receipts, etc. when their stock subscription warrants expire (hereinafterreferred to as “New and Old Depositary Receipts, etc.”), the phrase “valuations of stocks when either theirclaims for dividends have expired or when their subscription rights to subsidiary shares have expired(hereinafter referred to as “Ex-Rights Stocks”) shall be deemed to be replaced with “valuations of Depositary
Receipts, etc. when either their claims for dividends have expired or when their subscription rights to
subsidiary shares have expired (hereinafter referred to as “Ex-Rights Depositary Receipts, etc.”)”; the term“New and Old Stocks” shall be deemed to be replaced with “New and Old Depositary Receipts, etc.”; the term
“Ex-Rights Stocks” shall be deemed to be replaced with “Ex-Rights Depositary Receipts, etc.”; the phrase“valuations of stocks once they have started trading following a reverse stock split (hereinafter referred to as“Stock With Trading Dates Starting Post-Merger”)” shall be deemed to be replaced with “valuations of
Depositary Receipts, etc. once they have started trading following a reverse split (hereinafter referred to as“Depositary Receipts, etc. With Trading Dates Starting Post-Merger”)”; the term “new stocks through merger”
shall be deemed to be replaced with “new Depositary Receipts, etc. through merger”; the term “Old Stock” inArticle 10 and Article 11 shall be deemed to be replaced with “Old Depositary Receipts, etc.”; the term “New
Stock” shall be deemed to be replaced with “New Depositary Receipts, etc.”; the term “the Old Stock” inArticle 10 shall be deemed to be replaced with “the Old Depositary Receipts, etc.”; the term “Listed New
Stock” in Article 11 shall be deemed to be replaced with “Listed New Depositary Receipts, etc.”; the term “theNew Stock” in Article 11 shall be deemed to be replaced with “the New Depositary Receipts, etc.”; the term
“stock scheduled to be listed” in Article 13 and Article 14 shall be deemed to be replaced with “Depositary
Receipts, etc. scheduled to be listed”; the term “Unlisted Stock” in Article 14 and Article 15 shall be deemed tobe replaced with “Unlisted Depositary Receipts, etc.” In Article 15, the term “foreign stock” shall be deemed tobe replaced with “foreign Depositary Receipts, etc.”; the term “the foreign stock” shall be deemed to be
replaced with “the foreign Depositary Receipts, etc.”; the term “unregistered stock” shall be deemed to be
replaced with “unregistered Depositary Receipts, etc.”; and the term “stock scheduled to be registered” shall bedeemed to be replaced with “Depositary Receipts, etc. scheduled to be registered.”Chapter 3
Valuation of Convertible Corporate Bonds and Stock Subscription Warrant
Securities and Certificates, etc.
Article 16
1.

Valuation of Domestic Convertible Corporate Bonds, etc.

The convertible corporate bonds listed on an Exchange and the certificates for corporate bonds with stock
options (including certificates for bonds with stock options set forth in Article 341-3, Paragraph 1, Items 7
and 8 of the Old Commercial Code prior to the enforcement of the Companies Act) (hereinafter referred toas “Convertible Corporate Bonds, etc.”), which are the property set forth in Article 236, Paragraph 1, Item
3 of the Companies Act for bonds with stock options and for which it is specified in advance that suchbonds and stock options may not exist independently, shall be valued at the final market price on thecalculation date at the Exchange.

2.

If there is no final market price for the Convertible Corporate Bonds, etc. on the calculation date but theindicative quote has been announced and the indicative quote is below the final market price on the nearest
day, the bond, etc. shall be valued at the indicative quote notwithstanding the provisions in the preceding
paragraph.

3.

The provisory clause in Article 8, Paragraph 2 hereof shall apply mutatis mutandis to valuations of such
Convertible Corporate Bonds, etc. when only the indicative quote exists on or after the day following the
day on which a valuation takes place using the indicative quote on the calculation date and when there isno final market price and indicative quote.

4.

Notwithstanding the provisions of the preceding three paragraphs, Convertible Corporate Bonds, etc. may
be valued at any of the prices set forth in the following items in consideration of the pricing status of said
Convertible Corporate Bonds, etc. at the Exchange.
However, in the event that the Management Company either cannot obtain the appraised value of
the Convertible Corporate Bonds, etc. in spite of sufficient efforts to obtain the appraised value inaccordance with the duty of loyalty set forth in Article 2 or in the event that they cannot recognize theobtained appraised value as the market value, the Management Company shall evaluate the convertible
corporate bonds, etc. using either the appraised value the Management Company considers as the market
value with reasonable grounds in accordance with the duty of loyalty or the appraised value theManagement Company and the Trustee consider as the market value with reasonable grounds after mutual
consultation:(1) Reference statistics (average value) for trading published by the Japan Securities Dealers Association(2) Prices (excluding an indicative asked price quote) provided by Financial Instruments Business
Operators, Banks, etc.
(3) Value provided by price information companies

Article 17

Deleted

Article 18

Valuation of Foreign Convertible Corporate Bonds, etc.

1.

Foreign Convertible Corporate Bonds, etc. shall be valued at one of the values set forth in the following
items:(1) Reference statistics (average value) for trading published by the Japan Securities Dealers Association(2) Prices (excluding an indicative asked price quote) provided by Financial Instruments Business
Operators, Banks, etc.
(3) Value provided by price information companies

2.

In the event that the Management Company cannot obtain a appraised value for the foreign Convertible
Corporate Bonds, etc. in spite of sufficient efforts to obtain the appraised value in accordance with theduty of loyalty set forth in Article 2 or in the event they cannot recognize the obtained appraised value as
the market value, the Management Company shall evaluate the foreign Convertible Corporate Bonds, etc.
using either the appraised value the Management Company considers as the market value with reasonablegrounds in accordance with the duty of loyalty or the appraised value the Management Company and theTrustee consider as the market value with reasonable grounds after mutual consultation.

Article 19

Valuation of Stock Subscription Warrant Securities, Stock Option Certificates, and Investment

Equity Option Certificates
1.

Stock subscription warrant securities, stock option certificates, and investment equity option certificatesissued in Japan (hereinafter referred to as “Stock Option Certificates, etc.”) shall be valued at theiracquisition value until they are listed on an Exchange, and after being listed on an Exchange they shall bevalued at the final market price on the calculation date at the Exchange.
The provisions in Article 8 shall apply mutatis mutandis to the valuation of such Stock Option
Certificates, etc. in the event that there is no final market price on the calculation date at the Exchange.

2.

Stock Option Certificates, etc. issued overseas and which are listed on Overseas Exchanges shall bevalued at the final market price at the Overseas Exchange on the nearest day known at the time of
calculation.

3.

Unlisted Stock Option Certificates, etc. issued overseas shall be valued as set forth in the following items:(1) Stock Option Certificates, etc. scheduled to be listed shall be valued using indicative quotes. However,Stock Option Certificates, etc. for which the indicative quote has not been announced shall be valued attheir acquisition value.
(2) The provisions of Article 21 shall apply mutatis mutandis to the valuation of unlisted Stock Option
Certificates, etc. not provided for in the preceding item. In this case, the term “Government bonds,
municipal bonds, and other securities described in the By-laws (hereinafter referred to as “Public andCorporate Bonds, etc.”)” in Paragraph 1 of the same Article shall be deemed to be replaced with “Stock
Option Certificates, etc.” and the term “the Public and Corporate Bonds, etc.” in Paragraph 2 of thesame Article shall be deemed to be replaced with “the Stock Option Certificates, etc.”

Article 19-2
1.

Valuation of Option Certificates, etc.

The provisions of Article 19, Paragraph 1 shall apply mutatis mutandis to the valuation of option
certificates, etc. issued in Japan (meaning securities or certificates representing rights relating to option

transactions as defined in Article 2, Paragraph 1, Item 19 of the FIEA, hereinafter referred to as “Option
Certificates, etc.”) and the provisions in Article 21 shall apply mutatis mutandis to the valuation ofunlisted Option Certificates, etc. In this case, the term “stock subscription warrant securities (warrants),
stock option certificates, and investment equity option certificates (hereinafter referred to as “Stock
Option Certificates, etc.”)” in Article 19, Paragraph 1 shall be deemed to be replaced with “Option
Certificates, etc.”; the term “the Stock Option Certificates, etc.” in Article 19, Paragraph 1 shall be deemed
to be replaced with “the Option Certificates, etc.”; the term “Government bonds, municipal bonds, andother securities described in the By-laws (hereinafter referred to as “Public and Corporate Bonds, etc.”)”in Article 21, Paragraph 1 shall be deemed to be replaced with “Option Certificates, etc.”; and the term“the Public and Corporate Bonds, etc.” in Paragraph 2 of the same Article shall be deemed to be replacedwith “the Option Certificates, etc.”2.

The provisions of Article 19, Paragraph 2 shall apply mutatis mutandis to the valuation of Option
Certificates, etc. issued overseas, and the provisions of Article 19, Paragraph 3 shall apply mutatis
mutandis to unlisted Option Certificates, etc. issued overseas. In this case, the term “Stock Option
Certificates, etc.” in Paragraph 2 and Paragraph 3, Item 2 shall be deemed to be replaced with “Option
Certificates, etc.”; the term “unlisted Stock Option Certificates, etc.” in the introductory clause of
Paragraph 3 and Item 2 of the same Paragraph shall be deemed to be replaced with “unlisted Option
Certificates, etc.”; the term “Stock Option Certificates, etc. scheduled to be listed” in Paragraph 3, Item 1
shall be deemed to be replaced with “Option Certificates, etc. scheduled to be listed”; and the term “theStock Option Certificates, etc.” in Paragraph 3, Items 1 and 2 shall be deemed to be replaced with “theOption Certificates, etc.”

Article 20
1.

Valuation of Stock Subscription Warrant Securities, etc.

Stock Subscription Warrant Securities purchased during regular trading periods shall be valued at the final
market price at the Exchange on the calculation date until the final day of regular trading.

2.

Stock subscription warrants acquired through tender offers shall be valued as New Stocks at book value(the successful bid price plus commission fees and the paid-in amount).

Chapter 4
Article 21
1.

Valuation of Public and Corporate Bonds, etc.
Valuation of Public and Corporate Bonds

Government bonds, municipal bonds, and other securities described in the By-laws (hereinafter referred toas “Public and Corporate Bonds, etc.”) shall be valued at any of the prices set forth in the following items:(1) Reference statistics (average value) for trading published by the Japan Securities Dealers Association(2) Prices (excluding an indicative asked price quote) provided by Financial Instruments Business
Operators, Banks, etc.
(3) Value provided by price information companies

2.

In the event that the Management Company cannot obtain a appraised value for the Public and Corporate
Bonds, etc. in spite of sufficient efforts to obtain the appraised value in accordance with the duty of loyalty

set forth in Article 2 or in the event they cannot recognize the obtained appraised value as the market value,
the Management Company shall evaluate the Public and Corporate Bonds, etc. using either the appraisedvalue the Management Company considers as the market value with reasonable grounds in accordancewith the duty of loyalty or the appraised value the Management Company and the Trustee consider as themarket value with reasonable grounds after mutual consultation.
* Article 3 of the By-laws

Article 22

Valuation by Amortized Cost Method

In the event that the Management Company determines that price fluctuations of Public and Corporate Bonds,
etc. to be redeemed or matured within one year from the purchase contract date (including Public and Corporate
Bonds, etc. with a redemption date or maturity date anniversary in the previous year and excluding commercial
papers as defined in Article 3, Item 7 of the By-laws) are limited, that the valuation by the amortized cost
method specified in the By-laws is reasonable, and that the Public and Corporate Bonds, etc. will not harm theinterests of the beneficiaries, the Public and Corporate Bonds, etc. may be valued by adding or subtracting theamount calculated via the method specified in the By-laws.
However, when there is a discrepancy between the market value and the appraised value and it is judged
necessary to calculate the appropriate the Base Value, the market value shall be promptly revalued.
* Article 4 of the By-laws

Article 23

Special Provisions for MMF, etc.

Notwithstanding the provisions in the preceding two Articles, valuations of incorporated Public or Corporate
Bonds in general account funds for MMF and securities shall be conducted in accordance with the Rules forOperations of MMF, etc.

Chapter 5
Article 24
1.

Valuation of Other Incorporated Assets
Valuation of Beneficiary Certificates for Investment Trusts or Loan Trusts, etc.

With regard to the following beneficiary certificates or investment securities (hereinafter referred to as“Beneficiary Certificates, etc.”), the provisions of Article 6 through Article 11 and Article 13 shall apply
mutatis mutandis to the valuation of Beneficiary Certificates, etc. listed on domestic Exchanges, and theprovisions of Article 15, Paragraph 1 through Paragraph 4 shall apply mutatis mutandis to the valuation ofBeneficiary Certificates, etc. listed on overseas Exchanges. In this case, the term “stock” in Article 9through Article 11 shall be deemed to be replaced with “Beneficiary Certificates, etc.”; the term “oldstock” shall be deemed to be replaced with “old Beneficiary Certificates, etc.”; the term “new stock” shallbe deemed to be replaced with “new Beneficiary Certificates, etc.”; the term “new stocks through merger”
in Article 9 shall be deemed to be replaced with “new investment securities through merger”; the term
“listed new stock” in Article 11 shall be deemed to be replaced with “listed new Beneficiary Certificates,etc.”; the term “stock scheduled to be listed” in Article 13 shall be deemed to be replaced with
“Beneficiary Certificates, etc. scheduled to be listed”; and the term “foreign stock” in Article 15 shall bedeemed to be replaced with “foreign Beneficiary Certificates, etc.”

Provided, however, that valuations of open-end type Beneficiary Certificates, etc. listed on anOverseas Exchange (except listed investment trusts (meaning investment trusts as defined in Article 12,
Items 1 and 2 of the Cabinet Order and listed securities investment trusts as defined in Article 9-4-2 of the
Act on Special Measures Concerning Taxation); the same shall apply hereinafter) may be valued at theunit price published by the operating company, etc. for said Beneficiary Certificates, etc.
(1) Beneficiary certificates of investment trusts or foreign investment trusts(2) Investment securities of investment corporations or foreign investment corporations(3) Beneficiary certificates for loan trusts (including those issued by foreign corporations which are of asimilar nature.)(4) Foreign Loan Trust Beneficiary Certificates(5) Beneficiary certificates of trusts that issue beneficiary certificates (meaning beneficiary certificates oftrusts that issue beneficiary certificates as defined in Article 2, Paragraph 1, Item 14 of the FIEA,
including beneficial interests in loan trust (meaning beneficial interests of a cooperative financial
institution as defined in Article 2, Paragraph 1 of the Act on Preferred Equity Investment by
Cooperative Structured Financial Institutions and Banks (Act No. 44 of 1993) and a trust that assigns
loan claims of a financial institution or trust company listed in each item of Article 1-9 of the Order for
Enforcement of the Financial Instruments and Exchange Act (Cabinet Order No. 321 of 1965) (limited
to beneficiaries at the time of the contract for the trust who are also settlors), and rights to foreign
entities that have the same nature as those rights from among the beneficiary certificates of trusts thatissue beneficiary certificates as defined in Article 2, Paragraph 1, Item 14 of the FIEA) and designatedmoney trusts (meaning beneficial interests to a money trust with a principal compensation contract as
defined in Article 22, Paragraph 1, Item 2 of the enforcement regulations for the Act on Investment
Trusts and Investment Corporations (Cabinet Office Ordinance No. 129 of 2000) from among thebeneficiary certificates of trusts that issue beneficiary certificates as defined in Article 2, Paragraph 1,
Item 14 of the FIEA))(6) Certificates of Deposit or Depositary Receipts for the Beneficiary Certificates, etc. set forth in thepreceding five items
2.

The provisions of Article 21 shall apply mutatis mutandis to the valuation of Beneficiary Certificates, etc.
listed in the preceding paragraph which are not listed on an Exchange (hereinafter referred to as “Unlisted
Beneficiary Certificates, etc.”). In this case, the term “Government bonds, municipal bonds, and othersecurities described in the By-laws (hereinafter referred to as “Public and Corporate Bonds, etc.”)” in
Paragraph 1 of the same Article shall be deemed to be replaced with “Unlisted Beneficiary Certificates,etc.” and the term “the Public and Corporate Bonds, etc.” in Paragraph 2 of the same Article shall bedeemed to be replaced with “the Unlisted Beneficiary Certificates, etc.”
However, Unlisted Beneficiary Certificates, etc. described in Items 1 and 2 of the preceding
paragraph may be valued at the Base Value published by operating company, etc. for the Beneficiary
Certificates, etc.

Article 25

Valuation of Mother Fund Beneficiary Certificates

Mother Fund beneficiary certificates shall be valued using their Base Value.

Article 26
1.

Valuation of Investment Securities, etc.

Investment securities issued by a corporation incorporated pursuant to a special Act (meaning investment
securities as defined in Article 2, Paragraph 1, Item 6 of the FIEA ), preferred equity investment
certificates as defined in the Act on Preferred Equity Investment by Cooperative Structured Financial
Institution (Act No. 44 of 1993) (meaning preferred equity investment certificates as defined in Article 2,
Paragraph 1, Item 7 of the FIEA ), and preferred equity investment certificates as defined in the Act on the
Securitization of Assets or securities indicating a right to subscribe for preferred equity (meaning
securities as defined in Article 2, Paragraph 1, Item 8 of the FIEA ) (hereinafter referred to as “Investment
Securities, etc.”) which are listed on an Exchange shall be valued at the final market price on said
Exchange on the calculation date.

2.

The provisions of Article 21 shall apply mutatis mutandis to the valuation of Investment Securities, etc.
not listed on an Exchange (hereinafter referred to as “Unlisted Investment Securities, etc.”). In this case,the term “Government bonds, municipal bonds, and other securities described in the By-laws (hereinafterreferred to as “Public and Corporate Bonds, etc.”)” in Paragraph 1 of the same Article shall be deemed tobe replaced with “Unlisted Investment Securities, etc.” and the term “the Public and Corporate Bonds,etc.” in Paragraph 2 of the same Article shall be deemed to be replaced with “the Unlisted Investment
Securities, etc.”

3.

The provisions of the preceding two paragraphs shall apply mutatis mutandis to securities or certificates ofa similar nature issued by foreign countries or foreign entities.

Article 27

Valuation of Financial Assets

The provisions of Article 21 shall apply mutatis mutandis to the valuation of deposits, call loans, domestic CDs,
and other assets stipulated in the By-laws (hereinafter referred to as “Financial Assets”). In this case, the term
“Government bonds, municipal bonds, and other securities described in the By-laws (hereinafter referred to as“Public and Corporate Bonds, etc.”)” in Paragraph 1 of the same Article shall be deemed to be replaced with“Financial Assets” and the term “the Public and Corporate Bonds, etc.” in Paragraph 2 of the same Article shallbe deemed to be replaced with “the Financial Assets.”* Article 5 of the By-laws

Article 28
1.

Valuation, etc. of Market Derivatives Transactions

Market Derivatives Transactions listed on an Exchange (meaning Market Derivatives Transactions as
defined in Article 2, Paragraph 21 of the FIEA and transactions related to commodities investment, etc., asdefined in Article 3, Item 10, (a), (c) and (d) of the Order for Enforcement of the Act on Investment Trusts
and Investment Corporations (Cabinet Order No. 480 of 2000; hereinafter referred to as the “Cabinet
Order”) conducted in the commodity markets shall be valued based on the settlement price or closing pricepublished by the Exchange on the calculation date (hereinafter referred to as the “Settlement Price, etc.”).

When the delivery settlement is complete, the deliverable issue shall be valued from the day thedeliverable issue was confirmed.
2.

Foreign Market Derivatives Transactions listed on an Overseas Exchange (meaning Foreign Market
Derivatives Transactions as defined in Article 2, Paragraph 23 of the FIEA and transactions related tocommodities investment, etc., as defined in Article 3, Item 10, (a), (c) and (d) of the Cabinet Orderconducted in the overseas commodity markets; hereinafter referred to as “Overseas Market Derivatives
Transactions”) shall be valued at the Settlement Price, etc. or the final market price announced by theOverseas Exchange on the nearest day known at the time of calculation.

3.

For Overseas Market Derivatives Transactions which are listed on two or more Overseas Exchanges andwhich can be traded between said Overseas Exchanges through a reversing trade, the Overseas Exchange
to be used in valuations via the final market price (hereinafter referred to as the “Overseas Exchange for
Valuation”) shall be determined with consideration of transaction volume, etc.

Article 29
1.

Valuation of Over-the-Counter Transactions of Derivatives

Over-the-Counter Transactions of Derivatives that do not rely on Financial Instruments Market or foreign
Financial Instruments Market (meaning Over-the-Counter Transactions of Derivatives as defined in
Article 2, Paragraph 22 of the FIEA and transactions related to commodities investment, etc. as defined in
Article 3, Item 10 of the Cabinet Order (excluding transactions related to commodities investment, etc.
falling under Paragraph 1 and Paragraph 2 of the preceding article )) shall be valued at the price presented
by the financial instruments business operator, bank, etc. or at the price provided by the price informationcompany. When valuations use the price presented by the financial instruments business operator, bank,etc., then the valuation shall not use the indicative asked price quote.

2.

In the event that the Management Company cannot obtain a appraised value for the Over-the-Counter
Transactions of Derivatives in spite of sufficient efforts to obtain the appraised value in accordance withthe duty of loyalty set forth in Article 2 or in the event they cannot recognize the obtained appraised value
as the market value, the Management Company shall evaluate the Over-the-Counter Transactions of
Derivatives using either the appraised value the Management Company considers as the market value withreasonable grounds in accordance with the duty of loyalty or the appraised value the Management
Company and the Trustee consider as the market value with reasonable grounds after mutual consultation.

Article 30

Valuation of Margin Transactions

Margin transactions shall in principle be valued at the final market price on the calculation date for the
Exchange of the issue associated with the margin transaction.

Article 31

Valuation of Mortgage Securities

The provisions of Article 21 shall apply mutatis mutandis to the valuation of mortgage securities. In this case,the term “Government bonds, municipal bonds, and other securities described in the By-laws (hereinafterreferred to as “Public and Corporate Bonds, etc.”)” in Paragraph 1 of the same Article shall be deemed to be
replaced with “mortgage securities” and the term “the Public and Corporate Bonds, etc.” in Paragraph 2 of thesame Article shall be deemed to be replaced with “the mortgage securities.”

Article 31-2
1.

Valuations of Commodities

Commodities (meaning a commodity as defined in Paragraph 4, Article 2 of the Commodity Exchange
Act (Act No. 239 of 1950)) which are listed on a commodity market (excluding those corresponding totransactions related to commodities investment, etc.) shall be valued at the final market price on thecalculation date at the Exchange.
However, if the Management Company determines that it is not appropriate to use the final market
price based on past trading volume, etc. of the commodity at the Exchange, the Management Company
may conduct a valuation of the commodity in accordance with Paragraph 3.

2.

Those listed on overseas commodity markets (excluding those corresponding to transactions related tocommodities investment, etc.) shall be valued at the final market price of the overseas Exchange on thenearest day known on the calculation date.
However, if the Management Company determines that it is not appropriate to use the final market
price based on past trading volume, etc. of the commodity at the Exchange, the Management Company
may conduct a valuation of the commodity in accordance with Paragraph 3.

3.

The provisions in Article 21 shall apply mutatis mutandis to the valuation of commodities not contained in
the preceding items. In this case, the term “Government bonds, municipal bonds, and other securities
described in the By-laws (hereinafter referred to as “Public and Corporate Bonds, etc.”)” in Paragraph 1 ofthe same Article shall be deemed to be replaced with “commodities” and the term “the Public andCorporate Bonds, etc.” in Paragraph 2 of the same Article shall be deemed to be replaced with “thecommodities.”

Chapter 6
Article 32
1.

Valuation of Assets Denominated in Foreign Currencies
Valuation Rate for Assets Denominated in Foreign Currencies

The exchange rate to be used when converting assets denominated in a foreign currency to the Base Value
displaying currency (meaning securities indicated in currencies other than the Base Value displaying
currency (including Public and Corporate Bonds denominated in multiple currencies with interest andredemption displayed and paid in different currencies and in which either the interest or redemption isdisplayed or paid in a currency other than the Base Value displaying currency, hereinafter referred to as“Securities Denominated in a Foreign Currency”), deposits displayed in currencies other than the Base
Value displaying currency, and other such assets) shall be valued at the rate calculated using the
calculation method described in the By-laws based on the midpoint price (meaning the average of thebuying price and the selling price; the same shall apply hereinafter) of the customer rate (meaning themarket price in spot communications with customers) on the calculation date (hereinafter referred to as the“Cross Rate”).

2.

In the event that customer rates are not published, transactions based on customer rates are suspended, or
any other unavoidable circumstance occurs, the Self-Regulation Committee shall determine the Cross

Rate to be used in valuations.
3.

Notwithstanding the provision of the preceding paragraph, if there are unavoidable circumstances such asdifficulties in convening a Self-Regulation Committee meeting, the head of the Self-Regulation
Committee may determine the Cross Rate after consultation with other Committee Members, etc. In thiscase, the Association shall promptly report the details of the decision to the members of the
Self-Regulation Committee and also notify the Management Company.
* Article 7 of the By-laws* Committee Resolution 2

Article 33
1.

Valuation of Foreign Exchange Reserve Transactions, etc.

Buying exchanges and selling exchanges (hereinafter referred to as “Reserve Exchanges”) pertaining to
the buying and selling of foreign currency reserves for which the midpoint price of the customer’s futures
price (meaning the customer’s futures price delivered on a fixed date of the month (meaning a fixed dateof each month counted from the calculation date; the same shall apply hereinafter)) is announced on thecalculation date shall be valued at the rate calculated using the calculation method set forth in thefollowing items for the cases set forth respectively in those items:(1) If the midpoint price of the customer’s futures price on the day the Reserve Exchanges are delivered(hereinafter referred to as “the Day”) is announced on the calculation date, valuations shall use the
Cross Rate calculated using the calculation method set forth in the By-laws.
(2) If the midpoint price of the customer’s futures price on the Day has not been announced on thecalculation date, valuations shall use the following rates:(a) If the higher customer’s futures price on the calculation date compared to the price on the Day has
been announced, the valuation rate shall be the value calculated by the calculation method set forth in
the By-laws based on the customer’s futures price for the nearest day before or after the Day forwhich a customer’s futures price has been announced.
(b) If the higher customer’s futures price on the calculation date compared to the price on the Day has
not been announced, the valuation rate shall be the midpoint price of the customer’s futures priceannounced on the day nearest the Day.
(3) Each adoption of the midpoint price of a corrected customer’s futures price in the event of a suspensionof a transaction based on the customer’s futures price shall be decided by the Self-Regulation
Committee.
(4) Notwithstanding the provision of the preceding item, if there are unavoidable circumstances such asdifficulties in convening a Self-Regulation Committee meeting, the head of the Self-Regulation
Committee may determine the midpoint price after consultation with other Committee Members, etc. In
this case, the Association shall promptly report the details of the decision to the members of the
Self-Regulation Committee and also notify the Management Company.

2.

Foreign currency Reserve Exchanges for which the midpoint price of the customer’s futures price has notbeen announced on the calculation date shall be valued at the midpoint price of the customer rates on thecalculation date.

* Article 8 of the By-laws* Committee Resolutions 3 and 4

Article 34

DeletedPart 3 Accounting for Investment Trust Properties
Chapter 1
Accounting Processes
Article 35

Accounting for Stock Conversions of Convertible Corporate Bonds, etc.

Accounting processes when converting Convertible Corporate Bonds, etc., incorporated in Trust Properties
into stock or in other situations as provided for in the By-laws shall be conducted in accordance with themethods set forth in the By-laws.
* Article 9 of the By-laws* Committee Resolution 5

Article 36
1.

Processes for Public and Corporate Bonds, etc. Involving Gensaki Transactions

The difference between the purchase price and the sell-back price (including the amount of the interiminterest for interest-bearing bonds; the same shall apply hereinafter) of public and corporate bonds
acquired through conditional sales shall be calculated on a per diem basis over the period starting on the
day following the purchase delivery date until the sell-back date and recorded as daily accrued interest
income.
For any transaction for which the sell-back date has not been fixed, an amount equivalent to one
day’s interest calculated via the rate for the transaction may be recorded as daily accrued interest income.

2.

Notwithstanding the provisions of the preceding paragraph, the difference between the purchase price andthe sell-back price for public and corporate bonds acquired through conditional sale in a
performance-based distribution type investment trust (hereinafter referred to as a “Daily Settlement OpenType Public and Corporate Bond Investment Trust”) settled on a daily basis that also operates as an open
type investment trust for the purpose of investment in public and corporate bonds shall be calculated on a
per diem basis over the period starting on the purchase delivery date until the day before the sell-back dateand recorded as daily accrued interest income.

Article 37
1.

Processes for Public and Corporate Bonds with Less Than 1 Year Remaining

Any amount added to or deducted from the book value of public and corporate bonds (including thosewhich have come on the previous anniversary of the date of redemption; the same shall apply in Paragraph
2 below) to be redeemed within one year from the purchase contract date for Daily Settlement Open Type
Public and Corporate Bond Investment Trusts under the provisions of Article 22 shall be recorded in thegains and losses of the trade.

2.

Any amount added to or deducted from the book value of public and corporate bonds to be redeemedwithin one year from the purchase contract date for investments trusts that are not Daily Settlement Open

Type Public and Corporate Bond Investment Trusts under the provisions of Article 22 shall be recorded in
the gains and losses of the trade for interest-bearing bonds and in the interest income for discount bonds.

Article 38

Processes for Financial Assets with Less Than 1 Year Remaining

For Financial Assets that mature within 1 year from the purchase contract date (including those whose previous
anniversary of the maturity date has arrived), the difference between the acquisition value (For those whose
previous anniversary of the maturity date has arrived, their acquisition value shall be the book value on theprevious anniversary of the maturity date.) and the maturity price over the period from the day following either
the delivery date of the purchase or the previous anniversary of the maturity date (If the corresponding date falls
on a public holiday, then the business date after the holiday; the same shall apply in this article) shall becalculated on a per diem basis and the value obtained shall be recorded as daily accrued interest income.

Article 39

Additional Establishments, etc. of Family Funds

Accounting for Mother Funds and Baby Funds involving the establishment or early cancellation of said parent
investment trust shall in principle be conducted using the application date based on the Base Value in theapplication (for investment trusts that collect assets retained in Trust Properties, the amount obtained by adding
or deducting said retained value; hereinafter referred to as the “Base Value, etc.”) for establishment andconducted using the day after the application for early cancellations.
However, if an investment trust is established or cancelled early at the Base Value, etc. of the Mother Fund on
the business day before the application date, additional establishment or termination processes shall be made on
the application date.

Article 40

Processes Following Delisting, etc. of Bonds Incorporated in Property Accumulation Benefit

Funds
If a bond incorporated in Property Accumulation Benefit Funds is delisted or loses its over-the-counterregistration, it shall be revalued at the final market price on the day immediately preceding the date of delistingor deregistration, with the book value corrected to said appraised value and any loss or gain in value resulting
from the revaluation calculated into profits or losses from the sale of securities.

Article 41

Accounting Processes for Special Business Taxes, etc. Involving Property Accumulation

Benefit Funds
1.

The amount equivalent to tax on the reserve provided in Article 157 of the Order for Enforcement of the
Corporation Tax Act (Cabinet Order No. 97 of 1965) shall be recorded on a per diem basis.

2.

The amount to be recorded on a per diem basis in accordance with the preceding paragraph shall beprocessed as other expenses, and shall be recorded in other accrued expenses until payment thereof.

Article 421.

Accounting Processes for Settlement of Accounts for Property Accumulation Benefit Funds

Notwithstanding the provisions in Article 55, Paragraph 1, Item 1 and Article 58, Paragraph 1, Item 1,book values shall not be revised during settlement of accounts for Property Accumulation Benefit Funds

due to revaluations of bonds incorporated in such investment trusts.
2.

Losses and profits for the period pertaining to Property Accumulation Benefit Fund shall be carried overto the next period as a deficit or profit carried forward and any gains shall not be distributed.

Chapter 2
Article 43
1.

Accounting of Assets Denominated in Foreign Currencies
Accounting of Assets Denominated in Foreign Currencies

Assets related to Trust Properties that are denominated in a foreign currency shall be processed separatelyfrom assets, liabilities, principals, gains, and losses in the Base Value displaying currency (hereinafterreferred to as “Assets Denominated in Base Value Displaying Currency”).

2.

Assets denominated in foreign currencies shall be processed using each account of such assets by eachkind of currency. Securities Denominated in a Foreign Currency listed on Japanese Exchanges shall be
accounted for separately as foreign currency denominated assets denominated in yen.

3.

Currencies other than those displaying Base Value that are acquired with Assets Denominated in Base
Value Displaying Currency (hereinafter referred to as “Foreign Currencies”) or Securities Denominated ina Foreign Currency shall be processed as Foreign currency fund accounts for foreign currency
denominated assets and processed with the foreign investment accounts in Assets Denominated in Base
Value Displaying Currency.
However, this provision shall not apply to transactions in which the amount of principal that serves
as the basis for the swap interest pertaining to currency swap is exchanged at the beginning of thetransaction and exchanged again at the end of the transaction.

Article 44

Purchasing Foreign Currencies

The acquisition and sale of Foreign Currencies shall be handled as provided for in Article 60 and Article 61 of
the Ordinance on Calculation of Investment Trust Property (Cabinet Office Ordinance No. 133 of 2000).

Article 45
1.

Buying and Selling Foreign Currency Reserves

When a Foreign Currency reserve is purchased, the amount of the reserve shall be recorded in the purchaseexchange account and foreign exchange accounts payable for Assets Denominated in Base Value
Displaying Currency.

2.

When a Foreign Currencies reserve is sold, the amount of the reserve shall be recorded in the foreignexchange accounts receivable and sell exchange account for Assets Denominated in Base Value
Displaying Currency.

Article 46

Settlements for Buying and Selling Foreign Currency Reserves

When a Foreign Currency reserve transaction is settled, the difference between the purchase exchange accountand the foreign exchange accounts payable or the difference between the foreign exchange accounts receivableand the sell exchange account for the transaction shall be recorded in either other foreign currency expenses orother foreign currency gains, and when settlement is conducted via any of the following methods, such
settlement shall be made by the method set forth in the respective item:

(1) Settlement by transfer of Foreign Currencies and Base Value Displaying Currency Shall be processed
based on the provision in Article 44(2) Settlement by reversing trade Any loss or profits arising from such trade shall be recorded in otherforeign currencies expenses or other foreign currencies gains

Article 47
1.

Processes for Currency Swap Transactions

Among transactions in which the amount of principal that serves as the basis for the swap interest is
exchanged at the beginning of the transaction and exchanged again at the end of the transaction shall beprocessed in the manner set forth in the following items with respect to the following transactions:(1) Transactions that receive Foreign Currencies at the beginning of the transaction and pay Base Value
Displaying Currency On the date the principal amount is exchanged, for assets denominated in Foreign
Currencies, the deposit account, money trust account, or call loan account shall be replaced with theswap payment liability account and, for Assets Denominated in Base Value Displaying Currency, theswap receivable asset account shall be replaced with the deposit account, money trust account, or callloan account.
(2) Transactions that pay Foreign Currencies at the beginning of the transaction and receive Base Value
Displaying Currency On the date the principal amount is exchanged, for assets denominated in Foreign
Currencies, the swap receivable asset account shall be replaced with the deposit account, money trust,or call loan account and, for Assets Denominated in Base Value Displaying Currency, the deposit
account, money trust account, or call loan account shall be replaced with the swap payment liability
account.
(3) Transactions that pay Foreign Currencies at the end of the transaction and receive Base Value
Displaying Currency On the date the principal amount is exchanged, for assets denominated in Foreign
Currencies, the deposit account, money trust account, or call loan account shall be replaced with theswap payment liability account and, for Assets Denominated in Base Value Displaying Currency, theswap receivable asset account shall be replaced with the deposit account, money trust account, or callloan account.
(4) Transactions that receive Foreign Currencies at the end of the transaction and pay Base Value
Displaying Currency On the date the principal amount is exchanged, for assets denominated in Foreign
Currencies, the swap receivable asset account shall be replaced with the deposit account, money trust
account, or call loan account and, for Assets Denominated in Base Value Displaying Currency, thedeposit account, money trust account, or call loan account shall be replaced with the swap payment
liability account.

2.

The amount to be recorded for transactions described in the preceding paragraph shall be the amount of
Foreign Currencies or Base Value Displaying Currency for the receipt or payment of the principal amount.

Article 48
1.

Conversion of Foreign Currencies

Converting Foreign Currencies within the same investment Trust Property (meaning buying and selling
between Foreign Currencies; the same shall apply hereinafter.) shall adhere to the processes prescribed inthe following article for remittances when selling Foreign Currencies and for transfers when buying
Foreign Currencies (meaning the purchase of Foreign Currencies using Base Value Displaying Currency).
2.

The exchange rate to be used for calculating the amount to convert or the amount of Base Value
Displaying Currency when Foreign Currencies are converted shall be the Cross Rate calculated under theprovisions of Article 32 on the date the trade for this conversion was established.

Article 49

Processes for Remittances

Any deduction from each profit and loss account for assets denominated in Foreign Currencies whenremittances occur (meaning sales of Foreign Currencies based on Base Value Displaying Currency) shall beprocessed as provided in the following items:(1) Deductions from a profit account shall be made in the following order:(a) Dividend income(b) Dividend stocks(c) Interest income(d) Other revenue(e) Gains on securities transactions(f) Gains on futures transactions, etc. (Futures Transactions, etc. mean derivative transactions as
defined in Article 2, Paragraph 20 of the FIEA; the same shall apply hereinafter )(2) Deductions from a loss account shall be made in the following order:(a) Interest expenses(b) Losses on securities transactions(c) Losses from futures transactions, etc.
(d) Other expenses

Article 50
1.

Settlement Processes for Assets Denominated in Foreign Currencies

For assets denominated in Foreign Currencies, securities and other financial instruments, etc. (hereinafterreferred to as “Securities, etc.”), futures and option transactions, and swap transactions shall be revalued at
the market value on the final day of the accounting period for said Trust Property, and the amount of eachgain and loss shall be transferred to a Foreign Currencies fund, after which each account balance shall be
converted into the Base Value Displaying Currency and then added to each account denominated in Base
Value Displaying Currency with the exclusion of Foreign Currencies funds.

However, unit type

investment trusts shall not revalue Securities, etc., futures and option transactions, and swap transactions.
2.

For Assets Denominated in Base Value Displaying Currency, the amount equivalent to each gain and lossof assets denominated in Foreign Currencies shall be converted into the Base Value Displaying Currency
and recorded in the gain and loss of each account and foreign investment account. In this case, the amountconverted into the Base Value Displaying Currency shall be calculated using the Cross Rate calculated
under the provisions of Article 32.

3.

The buying exchanges and selling exchanges pertaining to Foreign Currencies reserves transactions shallbe revalued at the rate calculated under the provisions of Article 33, and the gain or loss arising from therevalued exchange shall be recorded in other Foreign Currencies expenses or other Foreign Currencies
revenues. The balance of foreign exchange accounts receivable and the purchase exchange account after
revaluation shall be transferred to the accounts receivable account, and the balance of exchange accounts
payables and the sell exchange account after revaluation shall be transferred to the accounts payableaccount.
4.

After the processes in the preceding three paragraphs are complete, the Foreign Currencies fund shall be
used to offset the foreign investment account, and the difference between the two shall be recorded asother Foreign Currencies expenses or other Foreign Currencies gains, and the balance of those otherForeign Currencies expenses and other Foreign Currencies gains shall be transferred to the gains or losses
on securities transactions.

5.

After distribution of gains and settlement of accounts, an amount equivalent to the balance of assets
denominated in Foreign Currencies in each account that was added to Assets Denominated in Base Value
Displaying Currency in each account following the settlement of accounts shall be deducted from theAssets Denominated in the Base Value Displaying Currency in each account while being recorded asassets denominated in Foreign Currencies, and the foreign investment account shall record them as Assets
Denominated in the Base Value Displaying Currency and the Foreign Currencies fund shall record themas assets denominated in Foreign Currencies. In this case, the amount in foreign investment account shallcorrespond to the amount in the Foreign Currencies fund and the Foreign Currencies fund shall be theamount of the Foreign Currencies fund converted into the Base Value Displaying Currency following thesettlement of accounts.
The balance of exchange accounts receivable, purchase exchanges, exchange accounts payable, or
sales exchanges transferred to accounts receivable and accounts payable shall be transferred to eachaccount.

Part 4

Calculation of the Base Value

Article 51
1.

Principles for Calculating the Base Value

The Base Value of investment trust beneficiary certificates (including book-entry transfer beneficial
interest in an investment trust; the same shall apply hereinafter) shall be calculated in accordance with theprovisions of the Investment Trust Act, the Enforcement Order of the same Act (Cabinet Order No. 480 of
2000) and the Enforcement Regulations of the same Act (Cabinet Office Ordinance No. 129 of 2000)(hereinafter referred to as the “Ordinances, etc.”) as well as other stipulations provided by the Ordinances.
However, for matters not provided for by the Ordinances, etc., the provisions of the Regulations on Real
Estate Investment Trusts and Real Estate Investment Corporations (hereinafter referred to as the“Regulations on REIT, etc.”) and provisions of the Regulations on Infrastructure Investment Trusts andInfrastructure Investment Corporations (hereinafter referred to as the “Regulations on IIT, etc.”) shallapply mutatis mutandis and any matters not provided for by these regulations shall use generally accepted
corporate accounting standards.

2.

The Base Value of investment trust beneficiary certificates shall in principle be calculated on a per diembasis for each Base Value Displaying Currency.

3.

In principle, the provisions in Part 4 shall apply mutatis mutandis to investment corporations except for
those provided for in the Ordinances, etc. For matters not provided for in these provisions, the provisions
in Regulations on REIT, etc. and Regulations on IIT, etc., shall apply mutatis mutandis and any matters
not provided for by these regulations shall use generally accepted corporate accounting standards.

Article 52
1.

Method for Calculating the Base Value

The Base Value for investment trust beneficiary certificates shall be the amount obtained after deducting
the total amount of all debts from the total amount of assets recorded in the account ledger for said trust on
the calculation date, plus or minus gains or losses on valuations of securities and gains or losses on
valuations of futures transactions, and for securities investment trusts that invest in assets denominated in
Foreign Currencies other than those displaying Base Value, plus or minus gains or losses on valuations offoreign investment accounts and gains or losses on valuations of exchanges, and dividing it by the numberof remaining beneficial interests on the calculation date.

2.

The unit of calculation for the Base Value provided in the preceding paragraph shall be rounded off to thenearest whole yen, and shall be calculated to two decimals places (rounded off to the nearest hundredth ofa yen) at the termination of the trust. Investment trusts denominated in Foreign Currencies shall beclassified into units for market distribution (rounded off to the nearest whole unit).

3.

In calculating the Base Value as provided for in Paragraph 1, the provisions of Part 2 shall apply to
calculations of the appraised value for Incorporated Assets in the relevant investment trust.

Article 53

Definition of Terms for Calculations of the Base Value

The definitions of terms and calculation methods specified in other By-laws, such as valuation losses and gains
on securities denominated in Base Value displaying currency specified in Paragraph 1 of the preceding article,
shall be those definitions and calculation methods specified in the By-laws.
* Article 10 of the By-lawsPart 5

Accounting Processes for Distributions, etc. of Gains

Article 54
1.

Distribution of Gains, etc. for Unit Type Investment Trusts

Valuations of incorporated securities and other assets on the calculation date for unit type investment
trusts shall be conducted in accordance with the provisions of Chapter 2 through Chapter 6 of Part 2.

2.

For unit type investment trusts, if, on the final day of the calculation period, the total net worth of the Trust
Property after expenses (meaning the total amount of trust fees and other expenses. The same shall apply
in the next article.) have been deducted and before gains have been distributed exceeds the amount of theprincipal, then a distribution can occur for an amount between the amount exceeding the principal and the
distributable amount calculated using the Statement of Distributable Amounts in the Dividend Income
Calculation Statement set forth in the By-laws (hereinafter referred to as the “Dividend Income Amount”),
whichever is greater, and if the total net worth of the Trust Property is less than the amount of the principal,
then an amount within the range of the Dividend Income Amount may be distributed.
* Article 11 of the By-laws

Article 55
1.

Processes for Distribution, etc. of Gains for Open Type Investment Trusts

The process for distributing, etc. gains from open type investment trusts (excluding public and corporatebond investment trusts and listed investment trusts as provided in Article 58. The same shall apply in this
Article and in Article 57.) shall be as follows:(1) At the end of the calculation period, the Incorporated Assets inside the Trust Property shall be revalued
to an amount calculated based on the provisions in Part 2 and the book value of the assets shall becorrected to the appraised value, while gains on valuations of securities (for discount bonds, the amountshall be the amount calculated by deducting the amount equivalent to interest accrued during the
calculation period. The same shall apply to losses on valuation of securities as provided later in this
Article.) shall be added to gains on securities transactions, losses on valuations of securities shall be
added to losses on securities transactions, gains on valuations of futures transactions, etc. (for swap
transactions, with regard to the amount equivalent to the interest from the time of acquisition (in thecase of interest settlement after acquisition, the most recent interest settlement date) until the time ofrevaluation, deducting accrued interest income from the amount for swap interest received, and adding
accrued interest expenses to the amount for swap interest paid. The same shall apply to losses on
valuation of securities as provided later in this Article and to gains on valuations of futures trading andlosses on valuations of futures trading as provided for in Article 58, Paragraph 1, Item 3) shall be added
to gains on the trading of futures transactions, etc., and losses on valuations on futures transactions, etc.
shall be added to losses on the trading of futures transactions, etc. The same shall apply to losses on
valuation of securities as provided later in this Article.) shall be added to gains on securities transactions,losses on valuations of securities shall be added to losses on securities transactions, gains on valuationsof futures transactions, etc. (for swap transactions, with regard to the amount equivalent to the interest
from the time of acquisition (in the case of interest settlement after acquisition, the most recent interest
settlement date) until the time of revaluation, deducting accrued interest income from the amount forswap interest received, and adding accrued interest expenses to the amount for swap interest paid.
(2) At the end of the calculation period, the amount related to gains or losses on valuations of securities
from the amount recorded in the valuation P/L adjustment account shall be transferred to gains or losses
on securities transactions, and the amount related to gains or losses on valuations of futures transactions,etc. shall be transferred to gains or losses on the trading of futures transactions, etc.
(3) Expenses shall be deducted pro-rata from profits such as dividends (meaning the amount obtained bydeducting interest expenses from the total amount of dividends received, dividend shares received,
interest income and other profits, The same shall apply hereinafter.) and profits from the sale andpurchase of securities (meaning the amount equivalent to the total amount of losses and gains on
securities transactions and losses and gains on transactions such as futures transactions; the same shallapply hereinafter). If any amount cannot be deducted, the amount shall be recorded in profit and loss
on buying and selling of securities, etc.
(4) Any dividend income after expenses have been deducted may be either distributed in whole, but all orpart of the amount may be withheld in Trust Properties and appropriated to cover losses.

Dividend income withheld in Trust Properties shall be recorded in dividend income from thereserve for dividends and carried over to the next period.
(5) Profits from the trading of securities, etc. after expenses have been deducted may be used to compensate
for any deficit carried forward from the previous period and the balance can be distributed, but all orpart may also be withheld in Trust Properties.
The amount of any losses which cannot be covered by profits from the trading of securities shallbe carried over to the next business year as deficit carried forward.
If all or part of profits from the trading of securities is withheld in Trust Properties, such profit
shall be recorded in profit from the trading of securities of the reserve for dividends and carried over tothe next business year.
(6) The reserve for dividends carried over from the previous period may be used in full for distribution orappropriated to cover losses.
(7) If there are any losses at the end of the period, an amount equivalent to profit and loss on buying andselling of securities, etc. for the revenue adjustment shall not be used for distribution until either the
deficit amount or the amount equivalent to the profit and loss on buying and selling of securities, etc.
reaches zero (0) and shall be retained for these purposes. Any amount equivalent to the profit and loss
from the trading of securities that exceeds the retained amount may be used in full for distribution.
Additionally, other revenue adjustments from the revenue adjustment may be used in full for
distribution.
If the revenue adjustment is negative at the end of the period, the amount shall be recorded
therewith and carried over to the next period.
2.

Calculations for the distribution of gains of open type investment trusts prescribed in Paragraph 1 shall bemade in accordance with the Open Type Income Distribution Statement prescribed in the By-laws.
* Article 12 of the By-laws

Article 56

Processes for Distribution of Gains from Listed Investment Trusts

The process for the distribution of gains from listed investment trusts shall be as follows:(1) At the end of the calculation period, the Incorporated Assets in a Trust Property shall be revalued to theamount calculated based on the provisions in Part 2 and the book value of the assets shall be corrected to
the valuation amount, while gains on valuations of securities shall be added to gains on securities
transactions, losses on valuations of securities shall be added to losses on securities transactions, gains
on valuations of futures transactions, etc. shall be added to gains on the trading of futures transactions,etc. and losses on valuations of futures transactions, etc. shall be added to losses on trading of futurestransactions, etc.
(2) At the end of the calculation period, the amount related to gains or losses on valuations of securities
from the amount recorded in the valuation P/L adjustment account shall be transferred to gains or losses
on securities transactions, and the amount related to gains or losses on valuations of futures transactions,etc. shall be transferred to gains or losses on the trading of futures transactions, etc.
(3) Expenses shall be deducted from dividend income and the reserve for dividends. Expenses whichcannot be deducted shall be carried over to the next period as a negative amount in the reserve fordividends.
(4) After deducting expenses and covering negative amounts in the reserve for dividends carried over fromthe previous period, dividend income may be distributed in full. Additionally, part or all of the amount
may be retained in the Trust Properties and recorded in the reserve for dividends and carried over to thenext period.
(5) If the amount obtained by deducting the total amount of losses on securities transactions, losses fromthe trading of futures transactions, etc., losses from exchanges (early cancellation) and losses from trust
additions from the total amount of gains on securities transactions, profits from the trading of futurestransactions, etc., profits from exchanges (early cancellation) and profits from additional trusts is apositive number, then the amount shall be carried over as profit carried forward and if the amount anegative number, then it shall be carried over as deficit carried forward.
(6) After covering expenses, the balance of the distribution reserve carried over from the previous period
may be used for distribution.
(7) Distributions of gains shall be calculated using the Listed Investment Trust Income Distribution
Statement specified in the By-laws.
* Article 15 of the By-laws

Article 57

Processes for Open Type Trust Money, etc. for Open Type Investment Trusts

The processes for open type trust money and money from partial early cancellation of open type investment
trusts shall be conducted as set forth in the By-laws.
Note that, for those invested in assets denominated in foreign currency, loss or gain on the assets denominatedin foreign currency and loss or gain on valuation of securities, etc. (meaning the total amount of loss or gain on
the valuation of securities and loss or gain on the valuation of futures transactions, etc.; the same shall apply
hereinafter in this article) shall be converted respectively into the constant value presenting currency by using
the Cross Rate calculated pursuant to the provisions of Article 32, and loss or gain on assets denominated in theconstant value presenting currency and loss or gain on the valuation of securities, etc. shall be added, and loss
or gain on the valuation of exchange as well as other expenses or income on the foreign currency shall be added
to loss or gain on trading securities in the assets denominated in the said currency.
* Article 13 of the By-laws

Article 58
1.

Processes for Distribution, etc. of Gains for Open-ended Corporate Bond Investment Trusts

Distribution of gains involving open type investment trusts for the purpose of investment in public andcorporate bonds shall be made in the manner set forth in the following items:(1) At the end of the calculation period, the incorporated public or corporate bonds shall be revalued into
the amount calculated under the provisions of Article 21 through Article 23 and the book value thereof
shall be corrected to such appraised value, and gains on valuation of securities shall be added to gains
on securities transactions and losses on valuation of securities shall be added to losses on securities
transactions.

(2) The subject of any transaction involving a futures transaction or option transaction listed on an
Exchange shall be revalued into the amount calculated based on the provisions of Article 28, and any
profits from valuation of said transaction shall be added to profits from the trading of futurestransactions, etc. while any losses from valuation shall be added to losses from the trading of futurestransactions, etc.
(3) The subject of any transaction involving a swap transaction, interest rate forward transaction, forward
exchange transaction, or spot forward exchange transaction shall be revalued into the amount calculated
based on the provisions of Article 29 and the book value thereof shall be corrected to the valuation
amount, while any gains on valuation of said transaction shall be added to gains on the trading of futurestransactions, etc. and any losses on valuation of futures transactions, etc. shall be added to losses on the
trading of futures transactions, etc.
(4) If, at the end of the accounting period, after deducting the total amount of interest expenses, losses on
securities transactions, losses from the trading of futures transactions, etc., other losses, losses fromadditional trusts, deficit carried forward, trust fees, early cancellation losses and other expenses fromthe total amount of interest income, gains on securities transactions, profits from the trading of futurestransactions, etc., early cancellation gains, profits carried forward, and other gains, the total net worth of
the Trust Property before distribution of gains exceeds the principal amount (the amount obtained bymultiplying the principal amount per day by the number of beneficial interests. The same shall apply
hereinafter), the entire amount in excess of the total principal amount shall be distributed. Additionally,
if the total net worth of the Trust Property before distribution of gains is less than the total amount ofprincipal, gains shall not be distributed.
2.

Profits and losses for the period involving open type investment trusts for the purpose of investment inpublic and corporate bonds shall be calculated in the manner set forth in (a) and (b) below:(a) Losses for the period or profits for the period shall be calculated based on losses during the calculation
period and losses processed on the final day of the calculation period and profits during the calculation
period and profits processed on the final day of the calculation period.
(b) Losses for the period or profits for the period shall be added to deficit carried forward or profits carriedforward from the previous period and shall be carried over into the next period as deficit carried forward
and profits carried forward.

3.

The amount of losses from trust additions involving open type investment trusts for the purpose ofinvestment in public and corporate bonds shall be processed in the manner set forth in (a) and (b) below:(a) The total amount of losses from trust additions on the final day of the accounting period shall berecorded in that section and carried over to the next period.
(b) The amount equivalent to losses from trust additions shall be carried over to the next period as profit
carried forward.

Article 59

Processes for Open Type Trust Money and Money from Partial Early Cancellation ofOpen-ended Public and Corporate Bond Investment Trusts
1.

Open type trust money from open type public and corporate bond investment trusts shall be processed inthe manner set forth in the following items for the cases set forth respectively in those items on the day
following the settlement date:(1) If the amount of additional trust money is the same as the principal amount, the full amount of theadditional trust money shall be processed as the principal amount.
(2) If the additional trust money is less than the principal amount, the difference between the additional
trust money and the principal amount shall be processed as additional trust losses.
2.

Partial cancellation of an open type public and corporate bond investment trusts shall be processed in themanner set forth in the following items (a) and (b):(a) The difference between the amount of the early cancellation funds related to the early cancellation andthe total amount of each principal relating to the early cancellation (meaning the total amount of money
which the beneficiary entrusted to the investment trust; the same shall apply to the following item.) shallbe processed as either an early cancellation loss or early cancellation profit.
(b) The difference between the principal amount relating the early cancellation and the total amount ofeach principal shall be deducted from additional trust losses.

Article 60
1.

Processes for Distribution of Gains for Family Funds

Distribution of gains for unit type investment trusts (hereinafter referred to as “Unit Type Baby Funds”),
open type investment trusts (excluding listed investment trusts, hereinafter referred to as “Open Type
Baby Funds”) and listed investment trusts (hereinafter referred to as “Listed Investment Trust Baby
Funds”) which are to be invested in beneficiary certificates of the Mother Fund shall be processed asfollows:
Additionally, distribution of gains and trust fees shall be processed in Unit Type Baby Funds, OpenType Baby Funds, or Listed Investment Trust Baby Funds.
(1) The provisions of Article 54 shall apply mutatis mutandis to the process of profit distribution in Unit
Type Baby Funds. In this case, the term “Unit Type Investment Trusts” in said article shall be deemed
to be replaced with “Unit Type Baby Funds.”(2) The provisions of Article 55 shall apply mutatis mutandis to the distribution of gains in Open Type
Baby Funds. In this case, the term “open type investment trusts (excluding public and corporate bondinvestment trusts and listed investment trusts as provided in Article 58; the same shall apply in thisarticle and in Article 57.)” in said article shall be deemed to be replaced with “Open Type Baby Funds.”(3) The provisions of Article 56 shall apply mutatis mutandis to the distribution of gains in Listed
Investment Trust Baby Funds. In this case, the term “listed investment trusts” in said article shall bedeemed to be replaced with “Listed Investment Trust Baby Funds.”

2.

Open Type Baby Funds shall be able to appropriate gains such as dividends from the Mother Fund
incorporated in the Trust Property and an amount equivalent to the amount of the revenue adjustment andthen apply them to the distribution of gains. In this case, distribution shall be processed according to thefollowing items (a) and (b): Additionally, when gains such as dividends from the parent investment trust
and an amount equivalent to the amount of the revenue adjustment are appropriated for the distribution ofgains, such appropriation shall continue until the termination of the Trust Property.

(a) The amount available for distribution calculated in the Statement of Distributable Amounts in the
Dividend Income Calculation Statement set forth in the By-laws shall be added to gains like dividends
and deducted from the gains and losses on securities transactions. If the amount available for
distribution exceeds the net Dividend Income Amount, the amount for distribution shall be up toamount of the net Dividend Income Amount.
(b) An amount equivalent to the adjusted revenue (other adjusted revenue) calculated in the Baby Fund
Adjusted Revenue Equivalent Amount Calculation Statement in the Dividend Income Calculation
Statement set forth in the By-laws shall be added to the other adjusted revenue in the adjusted revenue
amount and deducted from the amount equivalent to profit and loss on buying and selling of securities,
etc.
* Article 14 of the By-laws

Article 61

Processes for Additional Trust Money and Money from Partial Early Cancellation of Family

Funds
1.

Differences in early cancellation funds arising from the partial early cancellation of Trust Properties in a
Unit Type Baby Fund shall be divided into early cancellation losses and early cancellation profits and eachshall be processed as a loss or profit, respectively.

2.

The provisions of Article 57 shall apply mutatis mutandis to the processes for open type trust money andmoney from partial early cancellation for Open Type Baby Funds. In this case, the term “open type
investment trusts” in said article shall be deemed to be replaced with “Open Type Baby Funds.”

3.

Processes for additional trust money and money from partial early cancellation from a Mother Fund trust
shall be handled as provided for in the following (a) and (b):(a) Differences in additional trust money arising from the additional funding of a parent investment trust
shall be divided into additional trust losses and additional trust profits and each shall be processed as aloss or profit, respectively.
(b) Differences in early cancellation funds arising from the partial early cancellation of a Trust Property ina Mother Fund shall be divided into early cancellation losses and early cancellation profits and eachshall be processed as a loss or profit, respectively.

Article 62

Valuations of Securities, etc. Incorporated in a Mother Fund on the Final Day of the Accounting

Period1.

On the final day of the accounting period for a parent investment trust, the Incorporated Assets of theMother Fund shall be revalued at the value calculated based on the provisions of Part 2.

2.

The provisions in Article 55, Paragraph 1, Item 1 shall apply mutatis mutandis to the valuation ofIncorporated Assets in the Mother Fund as defined in the above paragraph.

Article 631.

Calculations for Current Period Profits and Losses of Family Funds

Profits and losses in the current period for Unit Type Baby Funds shall be calculated as provided for in (a)and (b) below:

(a) Losses for the current period and profits for the current period shall be calculated using losses during
the calculation period, losses processed on the final day of the calculation period, profits during the
calculation period, and profits processed on the final day of the calculation period.
(b) Losses for the current period or profits for the current period shall be added to deficit carried forward
or profits carried forward from the previous period and shall be carried over into the next period as
deficit carried forward and profits carried forward.
2.

The provisions of the preceding paragraph shall apply mutatis mutandis to processes for profit and loss forthe current period of the Mother Fund. In this case, the term “Unit Type Baby Funds” in said paragraphshall be deemed to be replaced with “Mother Fund.”Part 6

Others

Article 64

By-laws

Necessary matters for the enforcement of these Rules shall be stipulated in the By-laws.

Article 65

OthersAny matters not provided for in these Rules concerning the valuation, calculation, etc. of Investment Trust
Properties may be decided by resolution of the Board of Directors.

Article 66
1.

Delegation to Competent Committee

The Board of Directors shall be entitled to delegate to the Self-Regulation Committee the decision-making
authority to amend any By-laws pertaining to these Rules.

2.

The Self-Regulation Committee shall promptly report to the Board of Directors any decision(s) made
(Limited to those deemed necessary by the Board of Directors) concerning any delegated matters.

Supplementary Provision
These Rules shall come into effect on April 1, 2004.

Supplementary Provisions
This amendment shall come into effect on July 16, 2004.
Provided, however, that the revised provisions of Article 55, Paragraph 1, Item 3 shall come into effect on
November 1, 2004.

Supplementary Provisions
This amendment shall come into effect on November 19, 2004.
Provided, however, that the amended provisions of Article 6 through Article 14 and Article 16 through Article
17 shall be implemented starting on the date trading begins on the JASDAQ Securities Exchange (Inc.)

Supplementary ProvisionThis amendment shall come into effect on March 18, 2005.

Supplementary ProvisionThis amendment shall come into effect on November 18, 2005.

Supplementary ProvisionThis amendment shall come into effect on January 20, 2006.

Supplementary ProvisionThis amendment shall come into effect on May 24, 2006.

Supplementary ProvisionThis amendment shall come into effect on January 19, 2007.

Supplementary ProvisionThis amendment shall come into effect on September 30, 2007.

Supplementary ProvisionThis amendment shall come into effect on December 21, 2007.

Supplementary Provisions
This amendment shall be implemented from the date on which the option certificates, etc., are listed on the
Osaka Securities Exchange, Inc.
Provided, however, with regard to investment Trust Property for which the calculation period commenced prior
to the implementation date, the provisions then in force may remain applicable.

Supplementary ProvisionThis amendment shall come into effect on July 18, 2008.

Supplementary ProvisionThis amendment shall come into effect on October 1, 2008.

Supplementary ProvisionThis amendment shall come into effect on January 16, 2009.

Supplementary ProvisionThis amendment shall come into effect on April 24, 2009.

Supplementary Provisions
This amendment shall come into effect on September 24, 2009.
However, for shares listed on the JASDAQ Market for which no final market price exists on theimplementation date, the phrase “the final market price on the Exchange on the day nearest to the calculationdate” in Article 8, Paragraph 1 shall be deemed to be replaced with “the valuation amount on the business day
immediately preceding the implementation date” and for Convertible Corporate Bonds, etc. listed on the
JASDAQ Market for which no final market price exists on the implementation date, the phrase “the final
market price on the calculation date” in Article 16, Paragraph 1 shall be deemed to be replaced with “thevaluation amount on the business day immediately preceding the implementation date.”

Supplementary ProvisionThis amendment shall come into effect on January 21, 2010.

Supplementary ProvisionThis amendment shall come into effect on March 18, 2010.

Supplementary ProvisionThis amendment shall come into effect on January 4, 2013.

Supplementary Provisions
This amendment shall come into effect on December 1, 2014.
* The amended provisions are as follows:
Amended Article 19, Paragraph 1; Article 32, Paragraph 1; and Article 33, Paragraph 1, Item 3.

Supplementary Provisions
This amendment shall come into effect on July 16, 2015.
* The amended provisions are as follows:
Amended Article 51, Paragraph 1 and Paragraph 3.

Supplementary Provisions
This amendment shall come into effect on December 21, 2017.
* The amended provisions are as follows:
Moved Article 63 to Article 56. The following deviation was corrected:
Corrected the introductory clause of Article 60 (Old Article 59), Paragraph 1 and newly established Item 3 of the same.

Supplementary Provisions
This amendment shall come into effect on April 1, 2021.
* The amended provisions are as follows:
Amended Article 3, Item 1, and newly established Item 3 and Item 4 in the same article.

By-laws for Rules for Valuation and Accounting of Investment Trust Properties
Established on March 19, 2004
Revised on July 16, 2004
Revised on November 19, 2004
Revised on March 18, 2005
Revised on May 19, 2005
Revised on November 18, 2005
Revised on May 11, 2006
Revised on June 8, 2006
Revised on January 19, 2007
Revised on September 21, 2007
Revised on December 21, 2007
Revised on July 10, 2008
Revised on September 19, 2008
Revised on January 16, 2009
Revised on March 19, 2009
Revised on January 21, 2010
Revised on December 8, 2011
Revised on July 21, 2016
Revised on December 21, 2017
Revised on April 18, 2019
Revised on September 11, 2020

Article 1

Purpose

These By-laws provide for matters necessary for the enforcement of the Rules for Valuation and Accounting ofInvestment Trust Properties (hereinafter referred to as the “Rules”).

Article 2

Method of Calculation of Valuation of Stocks with Ex-rights Price

The value calculated by the method of calculation stipulated in the By-laws in the provisory clause of Article 9,
Paragraph 2 of the Rules (including cases where it is applied mutatis mutandis pursuant to Article 24,
Paragraph 1 of the Rules) shall be the value calculated by the method of calculation stipulated by the
Self-Regulation Committee for the following stocks:(1) Old stocks and New stocks when their stock subscription warrants expire (hereinafter referred to as“Ex-rights”)(2) Stocks when the claim for dividends ceases (hereinafter referred to as “Ex-dividend”)(3) Stocks subject to simultaneous Ex-rights and Ex-dividend(4) Stocks went Ex-rights for subsidiary stock subscription(5) Stock With Trading Dates Starting Post-Merger(6) New stocks through merger* Committee Resolution 1

Article 3

Public and Corporate Bonds, etc.

Securities to be specified in the By-laws as provided in Article 21, Paragraph 1 of the Rules shall be thefollowing securities:(1) National government bonds(2) Municipal bonds

(3) Bonds issued by a corporation under special laws
(4) Corporate bonds (excluding convertible corporate bonds and corporate bonds with stock options forwhich it is specified in advance that the assets set forth in Article 236 Paragraph 1, Item 3 of theCompanies Act are bonds with respect to which such bonds and such stock options cannot exist
independently (including corporate bonds with stock options stipulated in Article 341-3, Paragraph 1,
Item 7 and Item 8 of the former Commercial Code prior to the enforcement of the Companies Act)
(hereinafter referred to as “Convertible Corporate Bonds, etc.”))(5) Specified corporate bonds issued by a special purpose company as prescribed in the law on
securitization of assets (Act No. 105 of 1998; hereinafter referred to as the “Asset Securitization Act”)(6) Investment corporation bond (meaning investment corporation bonds and foreign investment securities
which are similar to investment corporation debentures as defined in Article 2, Paragraph 1, Item 11 of
the Financial Instruments and Exchange Act (Act No. 25 of 1948; hereinafter referred to as “FIEA” ))(7) Commercial Papers(8) Among the beneficial interests of a trust prescribed in Article 2, Paragraph 2, Item 1 of the FIEA,
beneficial interests of a cooperative financial institution as defined in Article 2, Paragraph 1 of the Act
on Preferred Equity Investment by Cooperative Structured Financial Institutions and Banks (Act No. 44
of 1993) and a trust that assigns loan claims of a financial institution or trust company listed in each
item of Article 1-9 of the Order for Enforcement of the Financial Instruments and Exchange Act(Cabinet Order No. 321 of 1965) (limited to beneficiaries at the time of the contract for the trust who arealso settlors), and rights to foreign entities that have the same nature as those rights (hereinafter referred
to as “beneficial interest in loan trust”)(9) Promissory Notes (excluding commercial papers and notes to be bought or sold in discount markets)(10) Securities or certificates issued by a foreign country or foreign corporation which have thecharacteristics of Items 1 to 5 and Items 7 to 9(11) Depositary receipts or certificates of deposit pertaining to Items 1 through 9(12) A designated money trust (meaning a beneficial interest of a money trust with contract forcompensating the principal as defined in Article 22, Paragraph 1, Item 2 of the Regulation for
Enforcement of the Act on Investment Trusts and Investment Corporations (Cabinet Office Ordinance
No. 129 of 2000) among beneficiary rights of a trust as prescribed in Article 2, Paragraph 2, Item 1 of
the FIEA )(13) Beneficial Interests (meaning beneficial interests defined in Article 2, Paragraph 2, Item 1 of the FIEA
and excluding the beneficial interest in loan trust provided in Item 8 and designated money trusts
provided in the preceding item)(14) Rights against foreign entities which are of the nature of the rights set forth in the preceding item
(15) Membership rights of a general partnership company or limited partnership company, or membershiprights of a limited liability company(16) Membership rights of a foreign juridical person which are of the nature of the rights set forth in thepreceding item
(17) Meaning the capital contributions based on partnership contracts, anonymous partnership agreement,

an investment limited partnership agreement or Investment Limited Partnership Act (limited to thosedefined in Article 2, Paragraph 2, Item 5 of the FIEA ) and equity in investment in a silent partnershipprovided in Article 3 Item 8 of the Cabinet Order for Enforcement of the Act on Investment Trusts andInvestment Corporations (Cabinet Order No. 480 of 2000; hereinafter referred to as the “Order for
Enforcement of the Investment Trust Act” ).
(18) Rights under foreign laws and regulations similar to those listed in the preceding item
(19) Foreign CD(20) School Bonds (meaning School Bonds as defined in Article 4, Item 1 of the Cabinet Office Ordinanceon Definitions as Provided in Article 2 of the Financial Instruments and Exchange Act (Ministerial
Order No. 14 of 1993) ) and educational institution loan claims (meaning claims as defined in Article
1-3-4 of the Order for Enforcement of the Financial Instruments and Exchange Act (Cabinet Order No.
321 of 1965) )Article 4

Valuation by Amortized Cost Method

The method specified in the By-laws as provided in Article 22 of the Rules shall be that method of evaluating
securities investment trusts using the value calculated by the method defined in the respective items listed
below.
(1) Security investment trust for the purpose of investment with performance-based distribution that settles
accounts daily and is an open type security investment trust that invests in public and corporate bonds
The price shall be obtained by using the difference between the book value on the day preceding
the date of purchase contract date or the previous year’s corresponding date (if the anniversary falls ona holiday, the next business day after the holiday) as the acquisition value, with the difference inacquisition value and redemption price (the redemption price for discount bonds shall be the amountincluding tax (meaning the face value plus withholding tax; hereinafter the same shall apply in thisarticle))calculated to obtain an amount on a per diem basis during such period, that is added or
subtracted to or from the book value on a daily basis.
(2) Securities investment trusts other than those listed in the preceding item
For any of the following public and corporate bond certificates, the value thereof calculated by themethod specified in the respective items(a) Interest-bearing Bonds: Value obtained by pro-rata calculation of the difference between theacquisition value (the book value on the previous anniversary (if the anniversary falls on a holiday,
the business day following the holiday) shall be the acquisition value; the same shall apply
hereinafter) and redemption price during the relevant period added to or deducted from the bookvalue on a day-to-day basis, from the day following the anniversary of the contract date or theredemption date for the purchase in the preceding year(b) Discount Bonds: Value obtained by adding or deducting the difference between the acquisition
value and the redemption value (including tax) for the relevant period from the day following theanniversary date in the preceding year of the delivery date or redemption date pertaining to thepurchase (if the anniversary date falls on a holiday, the next business day after the holiday) to or

from the book value on a day-to-day basis until the redemption date
Article 5

Financial Assets

The financial assets defined in the By-laws as prescribed in Article 27 of the Rules shall be the following assets:(1) Deposit(2) Call Loans(3) Domestic CDs(4) Discounted bills(5) Loans(6) Monetary claims (meaning monetary claims as defined in Article 3, Item 7 of the Order for
Enforcement of the Investment Trust Act, excluding those falling under Items 1 through 3 and 5)(7) Other assets designated by the Board of Directors

Article 6

Deleted

Article 7

Valuation Rate for Assets Denominated in Foreign Currencies

The rate to be calculated by the method stipulated in the By-laws as provided in Article 32 of the Rules shall be
the rate to be calculated by the method of calculation stipulated by the Self-Regulation Committee.
* Committee Resolution 2

Article 8

Valuation Rate for Foreign Exchange Reserve Transactions, Etc.

(1) The cross rate to be calculated according to the method stipulated in the By-laws as provided in Article
33, Paragraph 1, Item 1 of the Rules shall be the rate calculated using the calculation method stipulatedby the Self-Regulation Committee.
(2) The value to be calculated by the calculation method provided in the By-laws as prescribed in Article 33,
Paragraph 1, Item 2, Sub-item (a) of the Rules shall be the value calculated using the calculation method
stipulated by the Self-Regulation Committee.
* Committee Resolutions 3 and 4

Article 91.

Accounting for Stock Conversion of Convertible Bonds, etc.

Accounting treatment for converting Convertible Corporate Bonds, etc. provided for in Article 35 of theRules into shares or in other cases provided for in the By-laws shall be treated as the Self-Regulation
Committee provides in each of the following cases:(1) Accounting when Converting Convertible Corporate Bonds into Shares(2) Accounting for Stock Subscription Warrants for New Stocks Acquired by a Tender for Rights andUnclaimed Stocks(3) Accounting for Sales Securities for Margin Trading(4) Accounting for Short Selling of Bond Certificates (Excluding Those with Interest)(5) Accounting for Short Selling of Bond Certificates (If with Interest)(6) Accounting for Borrowed Shares(7) Accounting for Settlement after Tax Deduction of an Amount Equivalent to Existing Accrued Interest
on Sales of Domestic Public and Corporate Bonds(8) Accounting for Brokerage Fees for Foreign Securities(9) Accounting for Foreign Shares Listed on Domestic Financial Instruments Exchanges(10) Accounting of Foreign Public and Corporate Bonds(11) Accounting for Discounted Bills(12) Accounting for Exercise of Stock Subscription Warrants of Corporate Bonds with Warrants(13) Accounting for Futures Trading(14) Accounting for Option Trading(15) Accounting for Corporate Bonds with Detachable Stock Subscription Warrants(16) Accounting for Euroyen Bonds(17) Accounting for Domestic Negotiable Certificates of Deposit (CD)(18) Accounting for Commercial Paper (Including Short-Term Bonds, etc.)(19) Accounting Accompanying Conversion of Shareholder Benefits(20) Accounting of Borrowed Funds(21) Accounting for Loaned Stock Certificates(22) Accounting for Loaned Bonds(23) Accounting for Borrowed Bonds(24) Accounting for Swap Transactions(25) Accounting for Forward Rate Agreement (FRA)(26) Accounting for Forward Exchange Agreements (FXAs)(27) Accounting for a Non-Deliverable Forward (NDF)(28) Accounting for Mortgage Securities(29) Accounting for Investment Trust Beneficiary Certificates and Investment Securities(30) Accounting for Foreign Income Tax Deductions for Open Type Stock Investment Trusts(31) Accounting for Pre-tender Transactions (Pre-issuance Date Transactions) of Government Bonds(32) Accounting for Inflation-Indexed Bonds(33) Accounting for Establishment of Exchange Traded Funds When There Is Debt Guarantee by the Japan
Securities Clearing Corporation2.

Short-term bonds prescribed in Item 18 mean short-term bonds defined in Article 66, Item 1 of the Act on
Book-Entry Transfer of Corporate Bonds and Shares, the short-term bonds prescribed in Article 61-10,
Paragraph 1 of the Insurance Business Act, the specified short-term bonds prescribed in Article 2,
Paragraph 8 of the Act on the Securitization of Assets, the short-term bonds prescribed in Article 54-4,
Paragraph 1 of the Shinkin Bank Act, the short-term agricultural and forestry bonds prescribed in Article
62-2, Paragraph 1 of the Norinchukin Bank Act and the short-term foreign bonds prescribed in Article 38,
Paragraph 2 of the Order on Supervision of General Book-Entry Institutions.

* Committee Resolution 5

Article 10

Definition of Terms for Calculation of the Base Value

The definitions of terms and calculation methods stipulated in the By-laws as provided in Article 53 of theRules shall be as set forth in each of the following items:(1) Valuation losses and gains on securities denominated in base value displaying currency: The difference
between the book value of securities denominated in base value displaying currency (excluding
securities pertaining to securities futures trading), credit sale certificates and securities pertaining toshort selling of securities (Securities pertaining to short selling of securities shall be the value excluding
accrued interest.) and the appraised value. Provided, however, that the amount of discount bonds listed
on an exchange shall be calculated by deducting accrued interest income from the above-listeddifference.
(2) Valuation losses and gains on futures transactions, etc. denominated in base value displaying currency:
The difference between the appraised value of the subject pertaining to the transaction in base value
displaying currency in futures transactions as defined in Article 28 of the Rules and theover-the-counter option transactions prescribed in Article 29 of the Rules. Provided, however, that forswap transactions, the amount will be that obtained by deducting the equivalent interest expenses fromthe above-listed difference for receivable swap interest rate, and the amount will be that obtained byadding the equivalent interest expenses to the above-listed difference for payable swap interest rate.
(3) Foreign investment account valuation P/L: The difference between the book value of the foreign
investment account and the total amount of the net worth of assets denominated in foreign currencies(meaning assets denominated in foreign currencies as defined in Article 32 of the Rules, the same shallapply hereinafter ) converted into the base value displaying currency.
In calculating the total net worth of assets denominated in foreign currencies, the valuation gainor loss on foreign securities and the valuation gain or loss on foreign futures transactions (which means
the valuation gain or loss on the subject to transactions conducted in currencies other than the basevalue displaying currency in futures trading prescribed in Article 28 and the over-the-counter option
transactions prescribed in Article 29) shall be calculated by the method prescribed in Items 1 and 2.
(4) Exchange valuation P/L on exchange: The difference between the book value and the appraised value ofthe purchase or sell exchange account.
(5) Remaining units of beneficial interests: In the case of an investment trust with principal of not morethan 1 yen per unit, the appropriate units such as 1,000 units, 10,000 units, 100,000 units or 1 million
units shall be converted into one unit.
For investment trusts denominated in foreign currencies, the number of units shall be fixed.
(6) Base Value: The base value shall be rounded off to the nearest yen. However, at the time of terminationof the Trust, the number shall be rounded off to the nearest hundredth of a yen (at the time oftermination of an investment trust for which the quantity of 100,000 or more remaining units ofbeneficial interests of the previous item is converted into one unit, the amount may be rounded off to thenearest whole yen).
Investment trusts denominated in foreign currencies shall be classified into units for market
distribution, and units less than one unit shall be rounded off to the nearest whole number.

Article 11

Statement of Dividend Income for Unit Type Investment Trusts

The statement of dividend income provided in Article 54, Paragraph 2 of the Rules shall be Attached Form
No. 1.

Article 12Open Type Income Distribution Statement for Open Type Investment Trusts

The Open Type Income Distribution Statement provided in Article 55, Paragraph 2 of the Rules shall be
Attached Form No. 2.

Article 13

Processes for Open Type Trust Money, etc. for Open Type Investment Trusts

The disposition of open type trust funds and partial amounts of early cancellation funds for open type
investment trusts as provided in Article 57 of the Rules shall be as follows:(1) Additional trust funds shall be handled in accordance with the Schedule of Settlement for Open Type
Trust Funds in Attached Form No. 3.
(2) Amount for partial early cancellation shall be handled in accordance with the Schedule of Settlement
for Early Cancellation Fees in Attached Form No. 4.

Article 14

Statement of Dividend Income for Open Type Baby Funds

The statement of dividend income provided in Article 60, Paragraph 2 of the Rules shall be Attached Form
No. 1.

Article 15

Income Distribution Statements for Listed Investment Trusts

The Income Distribution Statements for Listed Investment Trusts prescribed in Article 56, Item 7 of the Rules
shall be Attached Form No. 5.

Supplementary Provision
These By-laws shall come into effect on April 1, 2004.

Supplementary ProvisionThis amendment shall come into effect on November 1, 2004.

Supplementary ProvisionThis amendment shall come into effect on November 19, 2004.

Supplementary ProvisionThis amendment shall come into effect on March 18, 2005.

Supplementary ProvisionThis amendment shall come into effect on May 19, 2005.

Supplementary ProvisionThis amendment shall come into effect on November 18, 2005.

Supplementary ProvisionThis amendment shall come into effect on May 24, 2006.

Supplementary ProvisionThis amendment shall come into effect on June 19, 2006.

Supplementary ProvisionThis amendment shall come into effect on January 19, 2007.

Supplementary ProvisionThis amendment shall come into effect on September 30, 2007.

Supplementary ProvisionThis amendment shall come into effect on December 21, 2007.

Supplementary ProvisionThis amendment shall come into effect on July 18, 2008.

Supplementary ProvisionThis amendment shall come into effect on October 1, 2008.

Supplementary Provisions
This amendment shall come into effect on January 16, 2009.
However, short-term commercial and industrial bonds stipulated in Article 38 of the Supplementary Provisionsof the Shoko Chukin Bank Limited Act (Act No. 74 of 2007) shall be deemed to be short term corporate bonds,
etc. stipulated in Article 9, Item 18.

Supplementary ProvisionThis amendment shall come into effect on March 19, 2009.

Supplementary ProvisionThis amendment shall come into effect on January 21, 2010.

Supplementary Provisions
This amendment shall come into effect on July 1, 2012 and shall apply to any new securities investment trust
established after the effective date.
Provided, however, that this shall not preclude application of the provisions after amendment to securities
investment trusts established prior to the effective date.

Supplementary Provisions
This amendment shall come into effect on July 21, 2016.
* The amended articles are as follows:
Article 10, Item 5 and 6 are amended.

Supplementary Provisions
This amendment shall come into effect on December 21, 2017.
* The amended articles are as follows:- Measures deviating from provisions cited in these By-laws (Article 13, Article 14 and Article 15) in conjunction withpartial revisions to the “Rules for Valuation and Accounting of Investment Trust Properties”- Attached Form No. 1: Notes on Listings- Attached Form No. 5: Addition of (Addition of Categories) table and Notes on Listings

Supplementary Provisions
This amendment shall come into effect on May 1, 2019.
* Necessary arrangement in connection with the change of era nameSupplementary Provisions
This amendment shall come into effect on January 1, 2021.
* Article 9 Paragraph 1 (33) is newly established.

Attached Form No. 1

Dividend Income Statement(1) Statement of Distributable Amounts
Classification

AmountDividend income of the Fund: A
Mother Fund (name) dividend income: B:

Total dividend income: C (A + B)
Expenses: D
Net dividend income: E(C-D)
Number of units of Fund beneficial interests remaining at current term

units

end: F
Average number of units of Fund beneficial interests remaining during theunits

term: G
Distributable amounts: H (E × F/G)
Distributable amount per unit: I(H/F)(2) Statement of Dividend Income for Mother Fund
Dividend Income ofTerm

the Mother Fund
(NAME)J

Mother Fund Remaining Units
Total Units

The Subsidiary
Fund

K

Units L
units

Dividend Income to Be
Vested in the Baby Fund
M (J × L/K)

units

Total

(3) Statement of Amount Equivalent to Revenue Adjustment of Baby Fund
Dividend Income ofTerm

the Baby Fund
M

Baby Fund
Additional Units

Remaining

Profit Adjustment (Other

Established

Units

Revenue Adjustment)

NO

P (M × N/O)

units

Total

Amount Equivalent to theunitsNotes on Listings
1. Statement of Distributable Amounts(1) The amount of dividend income of the Mother Fund shall record (2) the total dividend income
attributable to the Baby Fund in the Statement of Dividend Income for Mother Fund.
(2) The amount of dividend income of the Fund (excluding Open Type Investment Trusts, hereinafter thesame shall apply in this item and the next item ) shall be calculated by deducting “interest expenses”
from the total amount of “dividends income,” “dividend shares,” “interest income” and “other revenue”
recorded for the Fund during the accounting period.
(3) Expenses shall be recorded in the total amount of “trust fee” and “other expenses” the Fund recorded
during the accounting period. Provided, however, that in the case of a fund in which a beneficiarycollects performance fee (meaning trust fee determined by the constant value standard) at the time ofearly cancellation, such actual performance fees shall not be included.
(4) The number of units of Fund beneficial interests remaining at the end of the current term shall becounted as the number of units at the end of the current term.
(5) The average number of units of Fund beneficial interests remaining during the term shall be counted as
the simple average of the number of units remaining at the end of each month of the relevant accounting
period. However, when the status up to the end of the accounting period is listed for the settlementmonth, the simple average at the end of each month and at the end of the accounting period shall becalculated. In this case, the term “end of the accounting period” means the end of accounting period ofeach of Baby Fund in the case of multiple Baby Funds incorporating such Mother Funds.
(6) The amount available for distribution per unit with a principal of 1 yen per unit shall be recorded in aunit that displays the constant value (with investment trusts denominated in foreign currencies in theprescribed unit).
2. Statement of Dividend Income for Mother Fund
(1) With regard to the term, there shall be listed by month sequentially the status from the month including
the first day of the relevant accounting period to the month preceding the month including the last dayof the relevant accounting period (hereinafter referred to as the “settlement month”). However, withregard to the settlement month, the status from the first day of the settlement month to the end of theaccounting period may be stated. In this case, the term “end of calculation period” means the end of
calculation period of each of the Baby Funds incorporating such Mother Fund.
(2) The amount of dividend income of the Mother Fund shall be calculated by deducting “interest
expenses” expense from the total amount of “dividends income,” “dividend shares,” “interest income”
and “other revenue” the Mother Fund recorded during each month.
(3) The remaining number of units of the Mother Fund shall in principle be counted as the number of units
as of the end of each month. However, when the status from the first day of the settlement month to theend of the accounting period is described according to (1) above, the number of units at the end of theaccounting period shall be counted.
3. Statement of Amount Equivalent to Revenue Adjustment of Baby Fund
(1) With regard to the term, there shall be listed the status from the month including the first day of therelevant accounting period to the month preceding the settlement month. However, with regard to thesettlement month, the status from the first day of the settlement month to the end of the accounting
period may be stated. In this case, the term “end of the accounting period” means the end of accounting
period of each of Baby Fund in the case of multiple Baby Funds incorporating such Mother Funds.
(2) The amount of dividend income of such Baby Fund shall sequentially record (2) the total dividend
income attributable to the Baby Fund in the Statement of Dividend Income for Mother Fund.
(3) The number of units additionally established for a Baby Fund shall be counted as the number of units
additionally established for such Baby Fund during each month.
(4) The remaining number of units of the Baby Fund shall be counted as the number of units as of the end ofeach month. However, when the status from the first day of the settlement month to the end of theaccounting period is described according to (1) above, the number of units at the end of the accounting
period shall be counted.
(5) When the amount equivalent to the revenue adjustment (P) in each month exceeds the dividend, etc.
income (M) of such Baby Fund, (M) the dividend, etc. income of such Baby Fund shall be the amountrecorded in such month.

Attached Form No. 2

Open Type Income Distribution Statement

Category
Contents of Calculation

Dividend
IncomeRevenue Adjustment
Profit andAmountLoss onEquivalent to
Buying and
Other
ExpensesProfit and Loss
Selling of
Revenueon Buying and
Securities,
Adjustments
Selling of
etc.
Securities, etc.

((

Reserve for Dividends

Dividend
IncomeDeficitGains on Selling
Carriedor Purchasing
ForwardSecurities, etc.

Principal

Total

–

(100%)–

0

1. Balance at FY End
2. Pro-Rata Amount

%)

%)

–

–

3. Amount of P/L after Deduction of Expenses
4. Compensation Amount of Deficit Carried
Forward

–

–

–

–

–

–
–

–

–

–

5. Amount of P/L after Loss Compensation–

6. Amount Available for Profit Distribution

–

–

–

7. Profit Distribution Amount

–

–

–

8. Amount of P/L after Profit Distribution

–
–

–

0

–

0

9. Amount of Reserve for Dividends

–

–

–

10. Loss Compensation Amount

–

–

–

11. Amount Carried Forward(Notes)–––

1. In the column for Dividend Income, there shall be listed an amount calculated by deducting interest expenses from the total amount of dividends income, dividend shares, interest
income and other profits; in the profit and loss on buying and selling of securities, etc. column, there shall be listed gain and loss on securities transactions and profit and loss ontransaction of futures, etc. (including amounts revalued under the provisions of Article 55 and amounts transferred from valuation profit and loss adjustment accounts); and likewise,in the Expenses column there shall be entered the total amount of trust fee and other expenses.
2. The amount of money current in each Category as of the end of the fiscal year shall be recorded in the Balance at FY End column.
3. Among the amounts listed in this Statement, the amount constituting a loss of trust property and the amount constituting a decrease in profits or an increase in losses shall be anegative amount to that effect.

Attached Form No. 3

Schedule of Settlement for Open Type Trust Funds
Date: MM, DD, YYYY
Category

Contents of Calculation(A)
Amount at Time of
Addition

Revenue Adjustment
Reserve for Dividends
Loss or Gain Valuation
AmountProfit and Loss
Gains onor Gain on on Valuation Loss or Gain Equivalent to
Deficit
Dividend on Buying and Loss
Other
Valuation ofof Foreign
Expenses Dividend Selling or CarriedProfitand
Loss
IncomeSelling of
Adjustment
Revenue
Purchasing
ForwardIncomeSecurities, etc. Securities, etc. Investment
Accounts on Buying and Adjustments
Securities,
Accounts
Selling of
etc.
Securities, etc.
(

Pro-Rata Amount of
Valuation Loss or Gain on
Foreign Investment
Accounts

Principal

Total

Units

)

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

(B)
Amount after the above
Proration
Pro-Rata Amount of
Expenses Processed(C)
Amount after Processing
Expenses
Additional
Units
(C) ×
Existing
Units(D)
Composition of Open Trust
Funds

(

%)

(

%)

–

–

–

(a)

–

(b)

–

(c)

–

–

–

–

–

(100%)
0

(d)

–

(e)

(f)

–

–

(g)

–

(h)

–

(i)

(j)

(k)

–

(A) + (D)Amount after Addition(Preparation Procedure)
1. In the Dividend Income column, there shall be entered the amount calculated by deducting interest expenses from the total amount of the dividend income, dividend shares, interest income and Other Revenue, and in the Profit andLoss on Buying and Selling of Securities, etc. column, there shall be entered the total amount of gain and loss on securities transactions, losses and gains on futures transactions, etc., losses and gains on exchange valuation, otherforeign currency expenses and other foreign currency revenues. Likewise, in the Loss or Gain on Valuation of Securities, etc. column, there shall be entered the total amount of losses and gains on valuation of securities and losses andgains on valuation of futures transactions, etc., and in Expenses, there shall be entered the total amount of trust fees and other expenses.
2. In the Amount at Time of Addition column, the amount and the number of units as of the time of addition of each item shall be entered, and any negative number shall indicate to that effect. The amount equivalent to withholding
income tax at the time of addition shall be entered in the ( ) within the Expenses column.
3. The pro-rata amount of valuation loss or gain on foreign investment accounts shall indicate the sum of gains and losses on assets denominated in foreign currencies and gains or losses on securities valuations (referring to the sum totalof valuation gains or losses on securities and valuation gains or losses on derivatives, etc. Same hereinafter. ) converted into the constant value displaying currency at the exchange rate used to calculate the constant value.
4. In the ( %) within the Pro-Rata Amount of Expenses column, there shall be entered the composition percentage of each amount calculated by deeming the total amount of dividend income and gains on buying and selling of securities,
etc. (shall be zero when there are losses on buying and selling of securities, etc.) to be 100%, and the amount obtained by prorating expenses at the same percentage shall be entered underneath the ( %).
5. In the Amount after Processing Expenses column, expenses shall be deducted from the amounts in the respective categories of the Amount at Time of Addition column, and any amount not deducted shall be recorded in Profit and Losson Buying and Selling of Securities, etc.
6. In Amount Equivalent to Profit and Loss on Buying and Selling of Securities, etc. under the Revenue Adjustment in the Composition of Open-Ended Trust Funds column, there shall be entered the total amount of (b), (c), (d), (e), and(i). Likewise, in Other Revenue Adjustments within Revenue Adjustment, there shall be entered the total amount of (a), (f), (g), and (h), and in Principal, there shall be entered the amount of (j). Similarly, in Total shall be entered theamount of (k), and in Number of Units shall be entered the number of units to be added, respectively.
7. In the Amount after Addition column, there shall be entered the total amount of the respective amounts of the Amount at Time of Addition and the Composition of Open-Ended Trust Funds columns, and there shall be entered to
Number of Units the number of units obtained by adding the additional units to the number of units as of the time of addition.

Attached Form No. 4

Schedule of Settlement for Early Cancellation Fees
Date: MM, DD, YYYY
Category

Contents of Calculation(A)
Amount at the Time of Early
Cancellation

Revenue Adjustment
Reserve for Dividends
Loss or Gain Valuation
AmountProfit and Loss
Gains onor Gain on on Valuation Loss or Gain Equivalent to
Deficit
Dividend on Buying and Loss
Other
Valuation ofof Foreign
Expenses Dividend Selling or CarriedProfitand
Loss
IncomeSelling of
Adjustment
Revenue
Purchasing
ForwardIncomeSecurities, etc. Securities, etc. Investment
Accounts on Buying and Adjustments
Securities,
Accounts
Selling of
etc.
Securities, etc.
(

Pro-Rata Amount of
Valuation Loss or Gain on
Foreign Investment
Accounts(B)
Amount after the above
Proration
Pro-Rata Amount of
Expenses

Total

Units

)

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–
(

%)

(

%)

–

(C)
Amount after Prorating
Expenses
Number of
Units
Cancelled
(C) ×
Early
Existing
Units(D)
Composition of Early
Cancellation Fees

Principal––(100%)
0

–

–

–

–

–

–

–

–

–

(A)-(D)
Amount after Early
Cancellation(Preparation Procedure)
1. In the Dividend Income column, there shall be entered the amount calculated by deducting interest expenses from the total amount of the dividend income, dividend shares, interest income and Other Revenue, and in the Profit andLoss on Buying and Selling of Securities, etc. column, there shall be entered the total amount of gain and loss on securities transactions, losses and gains on futures transactions, etc., losses and gains on exchange valuation, otherforeign currency expenses and other foreign currency revenues. Likewise, in the Loss or Gain on Valuation of Securities, etc. column, there shall be entered the total amount of losses and gains on valuation of securities and losses andgains on valuation of futures transactions, etc., and in Expenses, there shall be entered the total amount of trust fees and other expenses.
2. In the column for the Amount at the Time of Early Cancellation, there shall be entered the amount and the number of units as of the time of early cancellation, and any negative number shall indicate to that effect.
3. The pro-rata amount of valuation loss or gain on foreign investment accounts shall indicate the sum of gains and losses on assets denominated in foreign currencies and gains or losses on securities valuations (referring to the sum totalof valuation gains or losses on securities and valuation gains or losses on derivatives, etc. Same hereinafter. ) converted into the constant value displaying currency at the exchange rate used to calculate the constant value.
4. In the ( %) within the Pro-Rata Amount of Expenses column, there shall be entered the composition percentage of each amount calculated by deeming the total amount of dividend income and gains on buying and selling of securities,
etc. (shall be zero when there are losses on buying and selling of securities, etc.) to be 100%, and the amount obtained by prorating expenses at the same percentage shall be entered underneath the ( %).
5. With regard to the dividend income and the profit and loss on buying and selling of securities, etc. in the Amount after Prorating Expenses column, the pro-rata amount of expenses shall be deducted from the amount as of the time ofearly cancellation, and any amount not deducted shall be recorded in Profit and Loss on Buying and Selling of Securities, etc. and each amount at the time of early cancellation shall be entered to other categories, respectively.
6. In the Valuation Loss or Gain Adjustment Accounts within the Composition of Early Cancellation Fees column shall be entered (C) x number of units cancelled early / total amount of loss or gain on valuation of securities, etc. andvaluation loss or gain adjustment accounts in the Existing Number of Units column, and in other categories shall be entered the amount of (C) x number of units cancelled early / amount in the Existing Number of Units column, and in
Number of Units shall be entered the number of units cancelled early, respectively.
7. In the Amount after Early Cancellation column shall be entered the amount remaining after deducting each of the amounts described in (5) above from the respective amounts in the Amount at the Time of Early Cancellation column,
and any amount which cannot be deducted completely shall be entered and indicated as such. In the Number of Units column shall be entered the number of units as of the time of early cancellation less the number of units cancelled
early.

Attached Form No. 5
Income Distribution Statements for Listed Investment Trusts
Division

AmountA. Dividend income for the period
B. Mother Fund dividend income
C. Reserve for Dividends
D. Total dividend income(A+B+C)

E. Expenses
F. Amount Available for Profit Distribution(D-E)

G. Dividends
H. Amount carried forward (reserve for dividends)(F-G)

I. Units
J. Distributions per Unit

(G/I)

Notes on Listings
1. When investing in the Mother Fund, add such classification and record the total amount of dividend
income to be vested in the baby fund on Attached Form No. 1 (2) Statement of Dividend Income forMother Fund as dividend income for the Mother Fund. If no investment into the Mother Fund is to be
made, the subsequent classifications shall be advanced in order without establishing suchclassification in this statement.
2. The amount of dividend income of the fund shall be calculated by deducting “interest expenses” fromthe total amount of “dividend income,” “dividend shares,” “interest income” and “other revenue”
recorded during the accounting period.
3. Reserve for dividends shall be the amount of reserve for dividends carried over from the previous
period.
4. Expenses shall be the total amount of “trust fee” and “other expenses” recorded during the accounting
period.
5. Among the amounts listed in this statement, the amount constituting a loss of trust property and theamount constituting a decrease in profits or an increase in losses shall be a negative amount to that
effect.

Committee Resolution on Valuation and Accounting of Investment Trust
Properties
Established on March 19, 2004
Revised on July 8, 2004
Revised on November 11, 2004
Revised on March 15, 2005
Revised on November 10, 2005
Revised on March 9, 2006
Revised on May 11, 2006
Revised on June 8, 2006
Revised on July 13, 2006
Revised on October 12, 2006
Revised on January 11, 2007
Revised on March 9, 2007
Revised on June 14, 2007
Revised on September 21, 2007
Revised on September 11, 2008
Revised on March 19, 2009
Revised on January 14, 2010
Revised on April 14, 2011
Revised on September 19, 2019
Revised on April 9, 2020
Revised on September 10, 2020

This committee resolution provides for matters delegated to the Self-Regulation Committee with respect to thevaluation and accounting of investment trusts.

Article 1

The value calculated by the calculation method established by the Self-Regulation Committee

as prescribed in Article 2 of the By-laws for Rules for Valuation and Accounting of Investment Trust Properties(hereinafter referred to as the “By-laws”) shall be the value calculated by the following method:

1.

Old Stocks and New Stocks when stock subscription warrants for New Stocks have expired (hereinafterreferred to as “Ex-rights”)(1)

Old Stocks(a) In the event of paid-in capital increase (including parallel capital increase. The same shall apply
hereinafter. )Final price of Old Stocks(with rights)+

Payment per New
Stock

1 + Allotment rate of paid-in quantity per Old Stock(Note)x+

New Stock allotment rate of thepaid-in quantity per Old Stock1- 1
Split rate(i) The final market price of Old Stocks (with rights) shall be the closing price at theexchange on the last day with rights.
(ii) When one share is divided into 1.2 shares, the split rate shall be 1/1.2 (same hereinafter).
(b) In the event of a stock split
Final price of Old Stocks (with rights) x split rate

(c) Allotment of shares without contribution (limited to cases where shares of the same class as suchshares are allotted. The same shall apply hereinafter. )Final price of Old Stocks (with rights)
1 + New Stock allotment rate

(2)

New Stocks

Old Stock (Ex-rights) Appraised Value

2.

Shares when the right to demand dividends ceases (hereinafter referred to as “Ex-dividend”)
Final price with dividend - Current forecast dividend(Note)

The final market price with dividends shall be the closing price at the exchange on the lastday with dividends.

3.

Shares subject to simultaneous Ex-rights and Ex-dividends(1)

Old Stocks(a) In the event of simultaneous Ex-rights and Ex-dividends due to paid-in capital increase
Final price of Old Stock(with rights and withdividends)

Estimated distribution
for the period+

Payment per
New Stocks

×

New Stock allotment rateof paid-in quantity per
Old Stock

1 + Allotment rate of paid-in quantity per Old Stock+1
Split rate

-

1

–

(b) In the event of simultaneous Ex-rights and Ex-dividends due to a stock split[Final price of Old Stocks (with rights and with dividends) - forecast dividends for the period] x split
rate(c) In the event of simultaneous Ex-rights and Ex-dividends due to allotment of shares without
contribution
Final price of Old Stocks (with rights) - forecast dividends for the period
1 + New Stock allotment rate

(2)

New Stocks

Appraised Value of Old Stocks (Ex-rights and Ex-dividends)

4.

Shares went Ex-rights for subsidiary stock subscription

Final price of parent
company shares (with rights)–

Market value ofsubsidiary shares–

Payment per
subsidiary share

Number of subsidiary×shares allocated per
parent company share(Note)

The final market price of parent company shares (with rights) and the market value ofsubsidiary shares shall be the exchange closing price for parent company shares andsubsidiary shares on the last day rights are held.

5.

Shares on the purchase and sale commencement date after share consolidation(1)

When the date of purchase and sale commencement of shares after share consolidation is the same as
the date of Ex-dividends(Final price before share consolidation - estimated dividend for the period) ÷ consolidation rate
(Note)(i) The final price before share consolidation shall mean the closing price at the exchange on
the business day immediately preceding the commencement date of sale and purchase of thestock certificates after share consolidation (the same shall apply hereinafter).
(ii) When 2 shares are consolidated into 1 share, the consolidation rate shall be 1/2 (samehereinafter).

(2)

When the date of commencement of purchase and sale after share consolidation differs from the dateof Ex-dividends
Final price before share consolidation ÷ consolidation rate

6.

New Stocks after a merger (in the event of a consolidation-type merger)
Final price of
Old Stocks±

MergerAdjustment
for 1 Such
Old Stock×

Rate of Old
Stocks to 1
New Stockafter a merger+

Final priceof OldStock±MergerAdjustment
for 1 Such
Old Stock×

Rate of Old
Stocks to 1 New
Stock after amerger+…

Number of merged companies(Notes) 1. Figures in parentheses () shall be calculated for each merged company.
2. The merger adjustment shall be deducted in the case of delivered money through amerger and added in the case of payments.
Article 2

The method to calculate the rate specified in Article 7 of the By-laws shall be as follows:

N=B÷A
N: The cross rate on the calculation date of the constant value displaying currency (hereinafterreferred to as “the currency”).
(Round off to four decimal places.)
A: The midpoint price of customer rates on the date of calculation of the currency
B: The midpoint price of customer rates on the calculation date for currencies other than the currency
However, when the currency is Japanese currency, such formula shall not be used, and the
midpoint price of customer rates on the calculation date shall be used.

Article 3

The method of calculating the rate specified in Article 8, Paragraph 1 of the By-laws shall be asfollows:
N=B÷A
N: Cross rate at the reserved delivery date for the calculation date.
A: The midpoint price of futures rates for customers on the reserved delivery date of the currency
B: The midpoint price of futures rates for customers on the date of reserved delivery of currencies
other than the currency
Variables A and B above use the midpoint price published on the same fixed date of the monththat the midpoint price of futures rates for customers is published.
However, when the currency is Japanese currency, such calculation formula shall not be used andthe midpoint price of futures rates for customers on the date of delivery shall be used.
Moreover, N shall be rounded off to the nearest four decimal places (hereinafter the same shallapply in Article 4 below).

Article 4

The calculation method of the value specified in Article 8, Paragraph 2 of the By-laws shall be

as follows:
N = A + {(B - A) ×

n-a
b-a

}

N: Valuation rate on the valuation date of the Reserve Exchanges for such date
A: Cross rate for the date closest to but not after such date
B: Cross rate for the date closest to and after such daten: Number of days from the calculation date to such datea: Number of days from the calculation date to the date announced that is closest to but not after suchdateb: Number of days from the calculation date to the date announced that is closest to and after suchdate
Provided, however, that when the currency is Japanese currency, variables A and B in the above
formula shall be as follows:
A: The midpoint price of futures rates for customers on the day that is closest to but not after suchdate
B: The midpoint price of futures rates for customers on the day that is closest to and after such date
Furthermore, (B - A) shall be rounded off to the nearest four decimal places.

Article 5

The accounting of the matters provided in each item of Article 9 of the By-laws shall be

conducted as stipulated below:
1.

Accounting when converting convertible corporate bonds into shares(a) Timing of accounting
In principle, accounting shall be done on the day the settlor company of an investment trust (meaning asettlor company of an investment trust as defined in Article 2, Paragraph 11 of the Act on Investment

Trusts and Investment Corporations (Act No. 198, 2000) and hereinafter referred to as the “Management
Company”) gives instructions to the trustee company to convert shares.
(b) Accounting Processes(i)

The book value of the convertible corporate bonds for share conversion and the certificates forcorporate bonds with share option (including the certificates for corporate bonds with shareoption set forth in Article 341-3, Paragraph 1, Items 7 and 8 of the Old Commercial Code prior to
the enforcement of the Companies Act) (hereinafter referred to as “Convertible Corporate Bonds,etc.”), which are the property set forth in Article 236, Paragraph 1, Item 3 of the Companies Act
for corporate bonds with share option and for which it is specified in advance that such corporate
bonds and share options may not exist independently, shall be transferred to the book value of theshares.
Moreover, if there is any balance of prepaid expenses related to such conversion, such balance of
prepaid expenses shall also be transferred to the book value of the shares.

(ii) The amount of corporate bonds to be redeemed in cash which cannot be converted into shares at
the time of conversion shall be deducted from the book value of the shares obtained in (i) above
and included in the accounts receivable.
The amount recorded in the accounts receivable shall be transferred to the call loan account ormoney trust account on the date such amount is received.
(iii) Any uncollected amount of interest on such Convertible Corporate Bonds, etc. recorded during
the period up to the date of conversion into shares shall be cancelled on the date of conversion intoshares.

[Journal of Share Conversion Instruction Date]
Stock certificates

11,159,955

Corporate bonds

11,000,00045(Prepaid expenses

160,000)(Interest income-100,000)* Accounts receivable(Accrued interest income-100,000)(Number of shares:

42,553)‐ To be recorded on the date of instruction requesting conversion.
* is the amount of corporate bonds to be redeemed in cash.
‐ Interest income and accrued interest income shall be cancelled.
‐ No entry in ( ) will be made if the conversion effect does not occur by the interest payment
date of the Convertible Corporate Bonds, etc.

2.

Accounting for stock subscription warrants for New Stocks acquired by a tender for rights andunclaimed stocks(1)

Treatment of stock subscription warrants for New Shares(a) Timing of accounting
Shall be on the date of tender.
(b) Amounts, etc. to be recorded as book value
The book value shall be treated as ordinary New Stocks, the amount of which shall be thesuccessful tender price (for premiums) plus commissions and payments, and shall not be accounted
for as stock subscription warrants for New Stocks.
Moreover, payment for New Stocks shall be recorded in payment for outstanding Stocks.
(c) Fees
Said commission shall be the established commission on the successful tender price.

(2)

Treatment of forfeiture of New Stocks(a) Timing of forfeiture
Shall take place on the last day of application for such New Stocks.
(b) Accounting Processes
The unpaid amount of the payment for such New Stocks shall be cancelled and the difference
between the book value of such New Stocks and the unpaid amount of the payment shall betransferred to the book value of the parent shares, and if there are no parent shares, the difference
shall be treated as a loss on securities transactions.

3. Accounting for Sales Securities for Margin Trading
Category
1. Sell Contract

2. Repurchases

Calculations

Account Journal(1) Contract price

Number of new listed shares x new unit price listed

Contract Date

(2) Net priceContract price - listing fee - listing consumption tax - listing transaction tax(3) Sales securities for margin
trading
Margin Transaction Deposit

Net price(4) Guarantee deposits

Cash portion + substitute securities portion(5) Guarantee deposits
Substitute Securities

Substitute securities portion(1) Contract price

Number of shares repurchased x unit repurchase price(2) Deducted fees, etc. (outgoing)
Fees
Consumption tax
Transaction tax(i) Full repurchase
Full balance of sell contract fees, etc.
(ii) Partial repurchase (*1)
Balance of sell contract fees, etc. x

Number of shares repurchased
Number of outstanding sellcontract sharesFees, etc. upon repurchase(4) Right treatment unit price

5. Items corresponding to the Modification of rights (1) Right treatment unit price(5) Settlement amount

Number of shares repurchased x {(sell contract unit price - right treatment unit
price) - unit repurchasing price} - fees, etc.
(Fees, consumption tax, and transaction tax are for sell contracts (outgoing) andrepurchasing (incoming))
Difference > 0……Settlement amount receivable
Difference < 0……Settlement amount payable(6) Deducted margin transaction
deposit(i) Full repurchase
Balance of margin transaction deposit
Number of shares(ii) Partial repurchase
Balance of sell contract price x

repurchased
Number of outstanding sellcontract shares

Sales Securities for Margin Trading:Margin Transaction Deposit: ×××
×××
Gain on Securities Transactions: ×××
Accounts Receivable: ×××(Gains on Settlement)(Settlement Amount Receivable)
Accounts Payable
Loss on Securities Transactions: ×××(Settlement Amount Payable)(Loss on Settlement)
Delivery Date
Call Loans: ×××(Settlement Amount Receivable)
Accounts Payable: ×××(Settlement Amount Payable)
Other Expenses: ×××
Note 1: (Daily interest management
fees, etc.)
Call Loans: ×××(Daily interest management fees,
etc.)

Accounts Receivable: ×××(Settlement Amount Receivable)
Call Loans: ×××(Settlement Amount Payable)
Call Loans: ×××(Daily interest management fees,etc.)
Other Revenue: ×××
Note 2: (Daily interest management
fees, etc.)

Collateral Withdrawal Date
- deducted fees, etc.

(Individually calculated in (*1))(i) If before revaluation, an amount equivalent to the deducted margin transaction
deposit
Number of shares(ii) Partial repurchase after revaluation
Balance of sales securities for margin trading x

Call Loans: ×××(or money trusts)
Guarantee Deposits
Substitute Securities:×××
Contract Date

(3) Fees, etc. (incoming)(8) Settlement loss or gain

Sales Securities for Margin Trading:
×××(Net Price)

Pledge Date
Guarantee Deposits: ×××(Fees, consumption tax, and transaction tax shall be calculated separately.)(7) Deducted sales securities for
margin trading

Margin Transaction Deposit: ×××(Net Price)

repurchased
Number of outstanding sellcontract shares

Deducted sales securities for margin trading - deducted margin transaction deposit+/- settlement amount receivable and payable
Difference > 0……Gains on securities transactions
Difference < 0……Loss on securities transactions

Call Loans: ×××(or money trusts)
Guarantee Deposits
Substitute Securities: ×××

Guarantee Deposits: ×××

Category

3. Actual
DeliveryCalculations(9) Daily interest management fees,etc.
Other Proceeds
Other Expenses

Received daily interest (interest rate) - negative daily interest payable (premiums) administration costs
Note 1: This shall be the total amount of the negative daily interest payable andmargin transaction administration costs.
Note 2: This shall be the amount of the received daily interest.
Note 3: The amounts in both Note 1 and Note 2 shall be offset.
Difference > 0……Other Revenue
Difference < 0……Other Expenses(10) Guarantee deposits

Cash portion + substitute securities portion(11) Guarantee deposits
Substitute Securities

Substitute securities portion(1) Deducted fees, etc. (Outgoing)

Full amount of fees, consumption tax, and transaction tax(2) Right treatment unit

5. Items corresponding to the Modification of rights (1) Right treatment unit price(3) Settlement amount receivable(4) Deducted margin transaction
deposit(5) Deducted sales securities for
margin trading(6) Book value of deducted stock
certificates(7) Settlement loss or gain

Account Journal

Contract Date

Sales Securities for Margin Trading:×××
Number of shares actually delivered x (sell contract unit price - right treatment unit Loss on Securities Transactions: ×××
price) - deducted fees, etc.
(Loss due to revaluation)
Difference……Settlement amount receivable
Accounts Receivable: ×××(Settlement Amount Receivable)
Full amount of balance of margin transaction deposit
Loss on Securities Transactions: ×××(Loss in kind)
Full balance of sales securities for margin trading(i) Number of shares actually delivered = number of shares in kind
Full balance of book value of stock certificates(ii) Number of shares actually delivered < number of shares in kindNumber of shares actually delivered x book value unit price of stock certificates

Margin transaction deposit: ×××
Gain on Securities Transactions: ×××(Gain due to revaluation)
Share certificates: ×××(Book value in kind)
Gain on Securities Transactions: ×××(Gains in kind)

Delivery Date

Call Loans:×××
Accounts Receivable: ×××(Settlement Amount Receivable)(Settlement Amount Receivable)
Deducted sales securities for margin trading - deducted margin transaction deposit
Other
Expenses:
×××
Call
Loans: ×××(loss or gain due to revaluation)
Note 1: (Daily interest management(Daily interest management fees,
Difference > 0……Gains on securities transactions
fees, etc.)
etc.)
Difference < 0……Loss on securities transactions
Other Revenue: ×××
Settlement amount receivable - book value of deducted stock certificates (loss or Call Loans: ×××(Daily interest management fees,
Note 2: (Daily interest management
gain in kind)etc.)
fees, etc.)
Difference > 0……Gains on securities transactions
Difference < 0……Loss on securities transactions(8) Daily interest management fees
Other Revenue
Other Expenses

Received daily interest (interest rate) - negative daily interest payable (premiums) Collateral Withdrawal Dateadministration costs
Call Loans:×××
Guarantee Deposits: ×××
Note 1: This shall be the total amount of the negative daily interest payable and(or money trusts)
margin transaction administration costs.
Guarantee Deposits
Note 2: This shall be the amount of the received daily interest.
Substitute Securities: ×××
Note 3: The amounts in both Note 1 and Note 2 shall be offset.
Difference > 0……Other Revenue
Difference < 0……Other Expenses(9) Guarantee deposits

Cash portion + substitute securities portion(10) Guarantee deposits
Substitute Securities

Substitute securities portionCategory
4. Ex-dividend

Calculations

Account Journal(1) Ex-dividend adjustment amount

Estimated dividend unit price x number of outstanding sellcontract shares x (1 - withholding tax rate)

Ex-dividend Date

(2) Ex-dividend adjustment amount payable

Ex-dividend adjustment amount - ex-dividend adjustment
amount payable
Difference > 0……Other Revenue
Difference < 0……Other Expenses

Other Expenses: ×××(Amount of Ex-dividend
adjustment)

Ex-dividend adjustment amount payable - guaranteed dividend
amountDifference > 0……Other Revenue
Difference < 0……Other Expenses

Other Accrued Expenses: ×××(Amount of Ex-dividend
adjustment)(3) Guaranteed dividend adjustment amount

Other Accrued Expenses: ×××(Amount of Ex-dividend
adjustment)

Payment Date of Amount of Ex-dividend Adjustment

Other Expenses: ×××(Difference)

Call Loans: ×××(or money trusts)(Ex-dividend adjustment amount tobe paid)
Other Revenue: ×××(Difference)

Date of Recording of Guaranteed dividend adjustment amount
Other Expenses: ×××(Guaranteed dividend adjustment
amount)Call Loans: ×××(or money trusts)(Guaranteed dividend adjustment
amount)5. Modificationof Rights

Method by market
quotation revision(1) Right treatment unit
price

Unit price for market quotation revision announced by theexchange on the date of ex-rights(2) Right modification fee

Number of outstanding sell contract shares x right treatment
unit price

Method by revision on number of shares/share price
6. Valuation

7. Revaluation

Call Loans: ×××(or money trusts)(Guaranteed dividend adjustment
amount)Other Revenue: ×××(Guaranteed dividend adjustment
amount)Capital Increase Ex-rights Date
Sales Securities for Margin Trading:
×××(Right Modification Fee)

Margin Transaction Deposit: ×××(Right Modification Fee)If New Stocks are allotted in integer multiples, they shall be treated in the manner prescribed by the exchange, and the above treatment shall not
apply.
Sales securities for margin trading - (outstanding number ofsell contract shares x evaluated unit price)
Difference > 0……Gain on valuation of securities
Difference < 0……Loss on valuation of securities
The open funds will be reevaluated at the fiscal year end.
Gain on valuation of securities……Gain on securities
transactions
Loss on valuation of securities……Loss on securities
transactions

Loss or Gain on Valuation of
Securities: ×××

Date of Settlement of Accounts
Loss on Securities Transactions: ×××
Sales Securities for Margin Trading:
×××

Sales Securities for Margin Trading:
×××
Gain on Securities Transactions: ×××

4. Accounting for Short Selling of Bond Certificates (Excluding Those with Interest)
I. Actual Delivery by Purchase in Kind
Transaction

Account Journal

1. Short Sale Contract Date

August 11
Accounts Receivable

Sales of Securities Borrowed
93,521,935

2. Contract Date for Purchase in Kind

Description
Short selling of interest-bearing government bonds
Contract date: August 11
Delivery date: August 24
Contract face value: 100 million yen
93,521,935 Interest: 3.9%
Interest payment date: June 21 and December 21, twice a year
Contract unit price: 93.55 yen
Contract price: 93,550,000 yen
Transaction tax: 28,065 yen
Accrued interest: 683,835 yen
Delivery price: 94,205,770 yen

August 20
Purchase of the Same Issue
National Government Bond Certificates
Accounts Payable
Delivery date: August 24
93,650,000
93,650,000 Contract date: August 20
Contract face value: 100 million yen
Sales of Securities Borrowed
National Government Bond Certificates
93,521,935
93,650,000 Contract unit price: 93.65 yen
Contract price: 93,650,000 yen
Loss on Securities Transactions
Accrued interest: 683,835 yen
128,065
Delivery price: 94,333,835 yen

3. Delivery Date for Purchase in Kind
(Short Sale Delivery Date)

August 24
Call Loans

Accounts Receivable
94,205,770

93,521,935
Advances Received
683,835

Accounts Payable

Call Loans
93,650,000

94,333,835

Prepaid Expenses
683,835
Advances Received

Prepaid Expenses
683,835

683,835

Transaction

Account Journal

Description

4. Valuation
Loss or Gain on Valuation of Securities-78,065

Evaluated unit price: 93.60 yen
Loss or gain on valuation of securities= Sales of securities borrowed - appraised value= 93,521,935- 93,600,000

5. Revaluation of Accounts for Settlement(Open Type)Sales of Securities Borrowed

Gain on Securities Transactions
The valuation loss or gain on the date of the settlement of accounts shallbe adjusted to the book value of sales of securities borrowed.

Or
Loss on Securities Transactions

Sales of Securities Borrowed

II. Actual Delivery by Borrowing Bond CertificatesTransaction

Account Journal

1. Short Sale Contract Date

August 11
Accounts Receivable

Sales of Securities Borrowed
93,521,935

2. Date of Conclusion of Loan Agreement

Description
Short selling of interest-bearing government bonds
Contract date: August 11
Delivery date: August 24
Contract face value: 100 million yen
93,521,935 Interest: 3.9%
Interest payment date: June 21 and December 21, twice a year
Contract unit price: 93.55 yen
Contract price: 93,550,000 yen
Transaction tax: 28,065 yen
Accrued interest: 683,835 yen
Delivery price: 94,205,770 yen

No treatment
Borrowing of the Same Issue
Loan date: August 24
Repayment date: August 30
Loan face value: 100 million yen
Loan unit price: 93.75 yen
Loan amount: 93,750,000 yen

3. Loan Issue Date
(Short Sale Delivery Date)

August 24
Borrowing Trade Securities

Securities Borrowed
93,750,000

Call Loans

93,750,000
Accounts Receivable

94,205,770

93,521,935
Advances Received
683,835

Transaction

Account Journal

4. Calculating Interest Expenses

Description

August 25 - August 30
Interest Expense

Accrued Interest Expenses

Equivalent to the method of calculating accrued interest income on bond
10,684 certificates

10,684

5. Contract Date for Purchase in Kind

Purchase of the Same Issue
Contract date: August 26
Delivery date: August 30
Contract face value: 100 million yen
National Government Bond Certificates
Accounts Payable
93,850,000
93,850,000 Contract unit price: 93.85 yen
Contract price: 93,850,000 yen
Sales of Securities Borrowed
National Government Bond Certificates
93,521,935
93,850,000 Accrued interest: 747,945 yen
Delivery price: 94,597,945 yen
Loss on Securities Transactions
328,065
August 26

6. Repayment Date of Borrowed Bond Certificates

August 30
Accounts Payable

Call Loans
93,850,000

Prepaid Expenses

Prepaid Expenses
747,945

94,597,945 * Treatment of deposits for borrowed bond certificates and bondborrowing commission, etc. shall correspond to accounting for borrowed
747,945 bond certificates.

Accrued Interest Expenses
64,104
Advances Received
683,835
Interest Expense
6
Securities Borrowed

Borrowing Trade Securities
93,750,000

7. Interest Deposit

93,750,000

Interest Payment Date
Accrued Interest Expenses
XXX,XXX
Advances Received
XXX,XXXInterest Expense
XXX

Call Loans(Amount equivalent to interest)

If there is any interest payment date between the date of delivery of salesof securities borrowed and the date of repayment of borrowed bondcertificates, an amount equivalent to the interest shall be paid to thelender.

5. Accounting for Short Selling of Bond Certificates (If with Interest)
I. Actual Delivery by Purchase in Kind
Transaction

Account Journal

1. Short Sale Contract Date

August 11
Accounts Receivable

Sales of Securities Borrowed
94,205,770

2. Contract Date for Purchase in Kind

Description
Short selling of interest-bearing government bonds
Contract date: August 11
Delivery date: August 24
Contract face value: 100 million yen
94,205,770 Interest: 3.9%
Interest payment date: June 21 and December 21, twice a year
Contract unit price: 93.55 yen
Contract price: 93,550,000 yen
Transaction tax: 28,065 yen
Accrued interest: 683,835 yen
Delivery price: 94,205,770 yen

August 20
Purchase of the Same Issue
National Government Bond Certificates
Accounts Payable
Delivery date: August 24
94,333,835
94,333,835 Contract date: August 20
Contract face value: 100 million yen
Sales of Securities Borrowed
National Government Bond Certificates
94,205,770
94,333,835 Contract unit price: 93.65 yen
Contract price: 93,650,000 yen
Loss on Securities Transactions
Accrued interest: 683,835 yen
128,065
Delivery price: 94,333,835 yen

3. Delivery Date for Purchase in Kind
(Short Sale Delivery Date)

August 24
Call Loans

Accounts Receivable
94,205,770

94,205,770
Call Loans
94,333,835

Accounts Payable
94,333,835

Transaction

Account Journal

Description

4. Valuation
Loss or Gain on Valuation of Securities-78,065

Evaluated unit price: 93.60 yen
Loss or gain on valuation of securities= Sales of Securities Borrowed - (appraised value + accrued interest +interest payable)= 94,205,770 - (93,600,000 + 683,835 + 0)

The valuation loss or gain on the date of the settlement of accounts shallbe adjusted to the book value of sales of securities borrowed.

5. Revaluation of Accounts for Settlement(Open Type)Sales of Securities Borrowed

Gain on Securities Transactions

Or
Loss on Securities Transactions

Sales of Securities Borrowed

II. Actual Delivery by Borrowing Bond CertificatesTransaction

Account Journal

1. Short Sale Contract Date

August 11
Accounts Receivable

Sales of Securities Borrowed
94,205,770

2. Date of Conclusion of Loan Agreement

Short selling of interest-bearing government bonds
Contract date: August 11
Delivery date: August 24
Contract face value: 100 million yen
94,205,770 Interest: 3.9%
Interest payment date: June 21 and December 21, twice a year
Contract unit price: 93.55 yen
Contract price: 93,550,000 yen
Transaction tax: 28,065 yen
Accrued interest: 683,835 yen
Delivery price: 94,205,770 yen
Borrowing of the Same Issue
Loan date: August 24
Repayment date: August 30
Loan face value: 100 million yen
Loan unit price: 93.75 yen
Loan amount: 93,750,000 yen

No treatment

3. Loan Issue Date
(Short Sale Delivery Date)

Description

August 24
Borrowing Trade Securities

Securities Borrowed
93,750,000

Call Loans

93,750,000
Accounts Receivable

94,205,770

94,205,770

Transaction
4. Contract Date for Purchase in Kind

Account Journal

Purchase of the Same Issue
Contract date: August 26
Delivery date: August 30
National Government Bond Certificates
Accounts Payable
Contract face value: 100 million yen
94,597,945
94,597,945 Contract unit price: 93.85 yen
Sales of Securities Borrowed
National Government Bond CertificatesContract price: 93,850,000 yen
94,205,770
94,597,945 Accrued interest: 747,945 yen
Loss on Securities Transactions
Delivery price: 94,597,945 yen
392,175* If there is any interest payment date before the in-kind delivery date,
only an amount equivalent to the interest shall be deducted throughreduction of the book value of sales of securities borrowed.

5. Repayment Date for Borrowed Bond Certificates* Treatment of deposits for borrowed bond certificates and bondborrowing commission, etc. shall correspond to accounting for borrowedbond certificates.

August 30
Accounts Payable

Call Loans
94,597,945

Securities Borrowed

94,597,945
Borrowing Trade Securities

93,750,000
6. Interest Deposit

Description

August 26

93,750,000

Interest Payment Date
Accrued Interest Expenses(Amount equivalent to interest)

Call Loans(Amount equivalent to interest)

If there is any interest payment date from the date of delivery of the salesof securities borrowed until the date of repayment of the borrowed bondcertificates, the book value of the sales of securities borrowed shall beamended at the same time as payment to the lender of an amountequivalent to the interest.

6. Accounting for Borrowed Shares
Transaction

Account Journal

1. Date of Conclusion of Loan
Agreement

No account processing

Description
Example) Borrowing of stock certificates
Date of conclusion of loan agreement: September 10
Loan issue date: September 12 Repayment date: Not
normally specified
Number of borrowed shares: 10,000
Conclusion date units: 510 yen(September 10)

2. Loan Issue Date
(Delivery Date of Borrowed
Shares)

September 12
Borrowing Trade Securities
5,050,000

Securities Borrowed
5,050,000

Guarantee Deposits
5,355,000

Call Loans

3. Short-Sale (Share Sell) Contract
Date

September 13
Accounts Receivable
4,997,375

4. Share Sale and Delivery
Date

Sales of Securities Borrowed
4,997,375* There will be no trading loss or gain for funds at thetime of the loan issue date (share delivery date).
* Collateral is cash or substitute securities.
* The loan issue date and share sale and delivery date
are not necessarily the same.
* The effective date of the market value (@ 510) andthe loanable value of the deposited collateral(approximately 105%) are agreed upon in thecontract.

Example) Short sale of stock certificatesContract date: September 13 Delivery date: September 18
Number of contracted shares: 10,000
Contract unit price: 500 yen
Contract price: 5,000,000 yen
Fee: 2,625 yen (including consumption tax)
Delivery price: 4,997,375 yen* There will be no trading loss or gain for funds at thetime of short selling.
* This does not suppose short selling without shareborrowing (share sale).
* Valuation shall begin on the date of recording ofcontract.

Example) Loan rate: 0.80% per annum
Daily value x 0.80% ÷ 365 = 111* To be calculated from the loan issue date or the firstbusiness day following the loan issue date
Example) Closing at the end of month and payment on
the 10th of the following month

September 18
Call Loans
4,997,375

5. Share-Borrowing
Commission (During the
Borrowing Period)

5,355,000

Borrowing transactions are calculated at the market value of
505 yen on the business day immediately preceding the loan
issue date.
@505 yen x 10,000 shares = 5,050,000
The deposited collateral is calculated at the market value of
510 yen as of September 10, the date of conclusion of theloan agreement.
Deposited collateral: @510 yen x 10,000 shares x 105% = 5,355,000
The deposited collateral shall accrue by the transaction
agreement regardless of whether the borrowed shares are
sold.
The deposited collateral shall be marked-to-market at market
value two business days prior.
The same shall apply to any additional deposits.

Remarks* Contract execution normally takes place before theshort-sale contract date.
* There is a gap in the time between borrowing andshort sale.
* Not all shares borrowed will be short sold.

Accounts Receivable
4,997,375

Each day September 12-September 30

Other Expenses

Other Accrued Expenses
111

111

Transaction

Account Journal

6. Interest on Collateral

Each day September 12-September 30
Other Accrued Revenue

Other Revenue
13

7. Contract Date for
Repurchase in Kind

Description

Sales of Securities Borrowed
4,997,375

Accounts Payable
4,502,362
Gain on Securities
Transactions
495,013

8. Delivery Date of
Repurchased Stock Certificates

Accounts Payable

Example) Repurchase of the same issue
Contract date: October 22 Delivery date: October 25
Number of contracted shares: 10,000
Contract unit price: 450 yen
Contract price: 4,500,000 yen
Fee: 2,362 yen (including consumption tax)
Delivery price: 4,502,362 yen* Not all short-sold shares will be repurchased.

* The loan repayment date and share repurchase anddelivery date are not necessarily the same.

Call Loans
4,502,362

October 31
Securities Borrowed
5,100,000

10. Withdrawal of Collateral* Not all borrowed shares will be returned.

Borrowing Trade Securities
5,100,000

October 31
Call Loans
4,530,000

11. Payment of Share-Lending
Commission* To be recorded from the date of recording of theguarantee deposits or from the first business day
following the date of recording* The date of receipt is determined by the transaction
agreement.
Example) Closing at the end of the month and receipt
on the 10th of the following month

October 25
4,502,362

9. Borrowed Shares Repayment
Date

Example) Deposit interest rate (interest): 0.10% per annum
Daily amount of collateral x 0.10% ÷ 365 = 13
13

October 22

Guarantee Deposits
4,530,000(Payment date)
Other Accrued Expenses
3,459

Remarks

Call Loans
3,459

The same shall apply to the mark-to-market withdrawal ofcollateral.
The amount of the collateral withdrawal shall be inaccordance with the transaction agreement.

Payment amount: Σ (Daily appraisal value x 0.80% ÷ 365)
= 3,459 yen
The payment date and method for item rental shall be inaccordance with the transaction agreement.
Adjustment for any leftover amount shall be made in “Other
Expenses.”Transaction

Account Journal

Description

12. Receipt of Interest(Date of receipt)

Amount received: Σ (daily amount of collateral x 0.10% ÷365)= 455 yen
The receipt date and method for interest shall be inaccordance with the transaction agreement.
Adjustment for any leftover amount shall be made in “Other
Revenue.”Call Loans

Other Accrued Revenue455

13. Ex-Dividend

455(Ex-dividend date)
Other Expenses
30,000

Other Accrued Expenses
30,000(Right allotment date)
Other Expenses
20,000

Other Accrued Expenses
20,000(Payment date to the lender)
Other Accrued Expenses
50,00014. Ex-Rights for New Shares

Call Loans
50,000Ex-rights date: Number of short-sale shares is increased by
the number of the newly allotted shares.
(Payment date of money equivalent to fractional shares)
Other Expenses

Call Loans
38,50015. Valuation(Daily valuation)
Loss or Gain on Valuation of
Securities
××××

38,500An ex-dividend adjustment amount shall be recorded for thenumber of short-sale shares.
Ex-dividend adjustment amount = Estimated dividend unit
price x number of short-sale shares x 100%

Remarks* Payment method at the time of ex-dividend shall bein accordance with the transaction agreement.

The number of borrowed shares, excluding the number ofshort-sale shares, calculated on the ex-dividend date shall becalculated as the ex-dividend adjustment amount.
Ex-dividend adjustment amount = Estimated dividend unit
price x number of borrowed shares (*) x 100%
* Excluding the number of short-sale shares calculated on
the ex-dividend date
Example) Estimated dividend unit price: 50 yen
Number of borrowed shares: 1,000
Number of short-sale shares: 600

If the new share allotment date comes before the due date forrepayment of borrowed shares, a number of shares equivalent
to the new shares shall be refunded to the lender in old shareson the new share delivery date.
The item rental fee for new shares shall not be included until
the new share delivery date because the occurrence ofliabilities shall be from the new share delivery date.
Collateral shall be calculated by increasing the allotment of
new shares from the right allotment date.

* If fractional shares have been generated, an amountin cash equivalent to the number of fractional sharesshall be repaid based on the agreement.
* If the borrowed shares are repaid by the new shareissue date, it is sufficient to repay only the original
number of old shares and to arrange to repay a
number of old shares equivalent to the number of the
new shares on the new share issue date.

Sales of securities borrowed shall be valued on a daily basis
at actual market value.
Sales of securities borrowed - (number of short-sale shares x
evaluated market value)* Valuation shall begin on the date of recording of theshort sale (share sale) contract.
* Loan transactions shall not be evaluated.

Difference > 0……Gain on valuation of securities
Difference < 0……Loss on valuation of securities

Transaction

Account Journal

16. Revaluation(Daily valuation)
Loss on Valuation of
Securities(Sales of securities
borrowed)

Sales of Securities Borrowed(Gain on valuation of
securities)

Description
Open type funds will be reevaluated at fiscal year end.
Gain on valuation of securities……Gain on securities
transactions
Loss on valuation of securities……Loss on securities
transactions

Remarks* The following items shall be noted at the time ofcreation of a balance sheet as stipulated in the
Cabinet Office Order issued by the Prime Minister’s
Office:1. That money has been borrowed for the securities
2. The estimated market value of the securities
borrowed (those that have not been repaid)
3. That gain and loss on transactions shall be recordedon the contract date for repurchase of the sales of
securities borrowed

7. Accounting for Settlement after Tax Deduction of an Amount Equivalent to Existing Accrued Interest on Sales ofDomestic Public and Corporate Bonds
Processing shall be as follows when the equivalent amount to existing accrued interest pertaining to the sales ofdomestic public and corporate bonds is settled by the amount after tax deduction (meaning an amount from which
an equivalent amount to tax is deducted):(1) The amount equivalent to existing accrued interest recorded on the prepaid expenses account at the time ofacquisition shall be the amount less the amount equivalent to tax (meaning the amount actually to be paid).
(2) The amount for account receivable for bond interests to be recorded on a daily basis after the time ofacquisition shall be tax inclusive (meaning an amount including the amount equivalent to tax).
(3) The difference between the amount equivalent to existing accrued interest or bond interest actually received
at the time of sale or on the interest payment date and the amount of prepaid expenses account and theamount of accrued interest income account to be deducted at that time shall be adjusted by increasing or
decreasing the account for interest income.
[Journal Entry Example (excluding corporate bond calculation)]:If convertible corporate bonds with a face value of 4 million yen and an annual interest rate of 7.3% are acquired
after 100 days and sold after 50 days
1. Acquisition
Prepaid Expenses

64,000Call Loans

64,000(or money trusts)

2. Accrued Interest Income (for 50 days)
Accrued Interest Income

40,000Interest Income

40,00096,000Prepaid Expenses

64,000Accrued Interest Income

40,000Interest Income-8,0003. SaleCall Loans(or money trusts)

96,00096,0004. Interest Payment Date
Call Loans

146,000(or money trusts)

Prepaid Expenses

64,000Accrued Interest Income

66,000Interest Income

16,000146,000

146,000

8. Accounting for Brokerage Fees for Foreign Securities
Brokerage fees for foreign securities shall be processed in other foreign currency expenses accounts and otherunpaid expense accounts each time a contract is made.

[Journal Entry Example]
Brokerage fees shall be processed in the other foreign currency expenses accounts and other unpaid expense
accounts each time a contract is made.
Other Accrued Expenses

Call Loans(or money trusts)

9. Accounting for Foreign Shares Listed on Domestic Financial Instruments Exchanges
Processing of foreign securities listed on domestic financial instruments exchanges shall be as follows:(1) Amounts to be recorded on the foreign investments account and the foreign currency funds account shall be
the acquisition value of foreign shares. The amount to be deducted from these accounts shall be the bookvalue pertaining to the sale of foreign shares.
(2) Transfers of deposits recorded in assets denominated in foreign currencies to assets denominated in Japanesecurrency shall be made on the date of recording of the deposit.
Respective losses and gains on assets denominated in foreign currencies pertaining to the recorded
amount shall be simultaneously transferred to the assets denominated in Japanese currency.
(3) Deposit processing subject to the balance of account receivable on the closing date, the profit or loss of theassets denominated in foreign currencies subject to the recorded amount shall be deducted from theequivalent amount to the profit or loss that is transferred to the foreign currency funds account. Any amountthat cannot be deducted shall be processed as a loss or gain for the period.

[Journal Entry Example]
Category
1. Purchase Contract Date

Assets Denominated in Japanese Currency

Assets Denominated in Foreign Currencies

No treatment
Stock certificates: ×××

Accounts Payable: ×××

Accounts Payable: ×××
Deposit: ×××

Deposit: ×××
Foreign Currency Funds: ×××

Accounts Receivable: ×××
Loss on Transactions: ×××

Stock certificates: ×××
Gain on Transactions: ×××

2. Purchase Delivery Date
Foreign Investments a/c: ×××

3. Sales Contract Date

Call Loans: ×××(or money trusts)

No treatment

4. Sale Delivery Date
Call Loans: ×××(or money trusts)
Loss on Transactions: ×××

5. Cash Dividends(1) Ex-dividend Date

Foreign Investments a/c: ×××
Gain on Transactions: ×××

No treatment

Deposit: ×××
Foreign Currency Funds:×××
Gain on Transactions: ×××

Accounts Receivable: ×××
Deposit: ×××
Loss on Transactions: ×××

Accrued Dividends Receivable: Stock Dividends: ×××
×××(2) Deposit Date

6. Processing of ShareDividends(1) Ex-dividend Date

Remarks

Call Loans: ×××

Stock Dividends: ×××

Deposit: ×××

Accrued Dividends Receivable:
×××(or money trusts)
Other Foreign Currency
Expenses: ×××

Other Foreign Currency
Revenue: ×××

Stock Dividends: ×××

Deposit: ×××

No treatment(2) Deposit date ofCall Loans: ×××
fractional disposal amount (or money trusts)

Deposit: ×××
Other Revenue: ×××

Deposits recorded in assets denominated in foreign
currencies shall be transferred to assets denominated inJapanese currency on the date of recording the amount.
“All losses and gains on assets denominated in foreign
currencies pertaining to the amount to be recorded shallbe simultaneously transferred to the assets denominatedin Japanese currency.”
The amount deducted from foreign investments accountand foreign currency funds account shall be the bookvalue for sale of securities denominated in foreign
currencies.

Amount of accrued dividends receivable = Unit price ofdividends before tax (expressed denominated in foreign
currency)× number of shares × T.T.B on the ex-dividend dateCash dividends shall be paid to the trustee in Japanesecurrency by the bank handling the dividend payment.
The difference between T.T.B on the ex-dividend dateand T.T.B on the date the bank handling dividend
payment converts dividends into yen shall be processedon the payment date as other foreign currency expenses
or other foreign currency revenues.
Foreign income taxes are to be recorded off the books.

No treatment

Other Revenue: ×××

To be recorded in foreign investments account andForeign currency fund account.
The amount shall be the acquisition value (in Japanesecurrency) of securities denominated in foreign
currencies.
Valuation shall be added to valuation loss or gain for theforeign investments account.

Other Revenue: ×××
Deposit: ×××

Stock certificates shall be issued only for the number ofsales unit shares among the number of shares in the saleunit to be allotted.
Only the number of shares as securities denominated inforeign currencies shall be increased.
Fractional shares less than one unit shall be sold anddisposed of by the Japan Securities Clearing Associationand paid as disposition value by the institution handlingshare administration (the trustee bank).

Category
7. Processing of Stock
Splits(1) Stock Split Date:

Assets Denominated in Japanese Currency

No treatment(2) Deposit date ofCall Loans: ×××
fractional disposal amount(or money trusts)
8. Processing of Paid-in
Capital Increase(1) Ex-rights Date
(2) Date of Receipt ofProceeds from Sale

Assets Denominated in Foreign Currencies

No treatment

Other Revenue: ×××

Deposit: ×××

Other Revenue: ×××

Other Revenue: ×××

Deposit: ×××

No treatment

Call Loans: ×××

No treatment

Gain on Transactions: ×××

Other Revenue: ×××

Deposit: ×××

Gain on Transactions: ×××

Gain on Transactions: ×××

Deposit: ×××

No treatment
Deposit: ×××

Other Revenue: ×××

Other Revenue: ×××

Deposit: ×××

10. Processing After
Revaluation on the
Settlement Date(2) In Case of a Valuation
Loss:

Stock certificates shall be issued only for the number ofshares in the sales unit among the number of shares to be
allotted.
Only the number of shares as securities denominated inforeign currencies shall be increased.
Fractional shares less than one unit shall be paid for as
payment for disposition.

(or money trusts)
9. Processing of Free
Capital Increase(1) Ex-rights Date
No treatment(2) Deposit date ofCall Loans: ×××
fractional disposal amount(or money trusts)(1) In Case of a Valuation
Gain:

Remarks

Paid-in capital increase shall be disposed of by sale onsite
by the Japan Securities Clearing Association and paid as
disposition value by the institution handling shareadministration.

Stock certificates shall be issued only for the number ofshares in the sales unit among the number of shares to be
allotted.
Only the number of shares as securities denominated inforeign currencies shall be increased.
Fractional shares less than one unit shall be paid for as
disposition value.

Foreign Investments a/c : ×××

Loss on Transactions: ×××

Gain on Transactions: ×××

Foreign Investments a/c : ×××

Stock certificates: ×××

Gain on Transactions: ×××

Gain on Transactions: ×××

Foreign Currency Funds: ×××

Loss on Transactions: ×××

Stock certificates: ×××

Foreign Currency Funds: ×××

Loss on Transactions: ×××

Deposit: ×××
Foreign Currency Funds: ×××

Accrued Dividends Receivable:
×××
Deposit: ×××

Deposit: ×××

Accounts Receivable: ×××

Foreign Currency Funds: ×××

Deposit: ×××

11. Accounting for
Deposit Processing
Subject to the Balance of
Account Receivables.

(1) Payment of Dividends

Call Loans: ×××

Foreign Investment Accounts:
×××(or money trusts)(2) Receipt of Sales
Payment

Call Loans: ×××(or money trusts)

Foreign Investment Accounts:
×××

The amount deducted from the foreign investments accountand foreign currency funds account shall be the book value
for sale of securities denominated in foreign currencies plus
or minus loss or gain on sale.

10. Accounting of Foreign Public and Corporate Bonds
Processing of foreign public and corporate bonds shall be as follows:(1) Bond interest on foreign public and corporate bonds traded with interest shall not be recorded on a daily
basis but shall be recorded in a lump sum as accrued on the ex-interest date.
(2) Accounting for the purchase price of foreign public and corporate bonds payable in Japanese currency
shall be the following journal entries:(a) Accounting for assets denominated in Japanese currency
Purchase Payment Date
Foreign Investment Accounts

Call Loans (or money trusts)(b) Accounting of assets denominated in foreign currencies
Purchase Payment Date
Prepaid Expenses for Public and Corporate Bonds

Foreign Currency Funds(3) If any convertible corporate bonds denominated in foreign currencies issued by a Japanese enterpriseare converted into shares and made into assets denominated in Japanese currency, the conversion shallbe made as follows:(a) Timing of accounting
In principle, processing shall be done on the date the management company gives the trustee
company instructions for conversion into shares.
(b) Accounting of assets denominated in foreign currencies(i) The book value of convertible corporate bonds for share conversion shall be transferred to the bookvalue of stock certificates.
Any balance of prepaid expenses related to such conversion shall also be transferred to the bookvalue of the stock certificates.
(ii)Any receivable amount of interest on the convertible corporate bonds recorded during the period up
to the date of conversion into shares shall be cancelled on the date of conversion into shares.
(c) Transfer from assets denominated in foreign currencies to assets denominated in Japanesecurrency shall be processed in the same manner as revolving funds. The exchange rate used forconversion of Japanese currency shall be the middle price of customer rates on the processing date.

11. Accounting for Discounted Bills
Processing of discounted bills shall be as follows:(1) No entry shall be made for discounted bills. They shall be included in call loans and processed as a ( )statement of items.
(2) The acquisition value shall be recorded, and discount expenses shall be recorded on a daily basis asinterest income and accrued interest income.
(3) Any difference arising from resale or transfer before the settlement date shall be processed byincreasing or decreasing interest income.

[Example] If a promissory note with a face value of 100 million yen is purchased at an annual rate of 8% in
a period of 90 days and resold after 45 days, the market rate on the resale date shall be 7.75% perannum.
* 1. Call Loans

99,044,521* 2. Call Loans

98,027,398(Discounted bills)* 3. Accrued Interest Income

986,265Interest Income

30,858The acquisition price shall be withdrawn for the discounted bills.
The amount that the daily recorded amount is multiplied by the number of days elapsed is withdrawn for
the accrued interest income.
Interest income shall be calculated by deducting the difference of * 2 and * 3 from * 1.
If transfer occurs before the settlement date, the purchase funds shall use * 1 above as the acquisition priceof the discounted bills.

12. Accounting for Exercise of Stock Subscription Warrants of Corporate Bonds with Warrants(a) Timing of accounting
In principle, processing shall be done on the date on which the management company gives thetrustee company instructions to exercise stock subscription warrants.
(b) Accounting shall be classified into cash payment and substitute payment and shall be processed asfollows:[Journal Entry Example]
Classification(1) In case of cash payment

Journal Entry Example, Etc.
1) Book value of the corporate bonds ≥ Face value of the corporate bonds
Example 1: Face value of the corporate bonds………10,000,000 yen
Book value of the corporate bonds………10,500,000 yen
Balance of existing accrued interest at the time of acquisition of
the corporate bonds……………………… 200,000 yen
Balance of accrued interest income up to the time of exercise ofstock subscription warrants after the acquisition of the corporate
bonds. …………………………………… 100,000 yen
Exercise price of warrants…………………300 yen
Allowance rate of warrants………………100%
Exercise rate of warrants…………………100%
Stock Certificates 10,499,900

Corporate bonds……500,000
Call Loans: 9,999,900(or money trusts)

Classification

Journal Entry Example, Etc.
Note 1. Number of acquired shares (33,333)…The same shall apply
hereinafter.
10,000,000 yen x 100% x 100%=
300 yen(Amounts less than one share rounded down)
Note 2. Payment amount (9,999,900 yen) = 33,333 shares x 300 yen
Note 3. Of the book value of corporate bonds, the amount to betransferred to the book value of stock certificates(500,000 yen) = 10,500,000 - 10,000,000
Note 4. The balance of the existing accrued interest account at the timeof acquisition of corporate bonds(200,000 yen) shall not be included in the acquisition value ofstock certificates because the corporate bonds themselves willremain as straight bonds even after exercise of the rights.
Note 5: The balance of accrued interest income account after the time ofacquisition of the corporate bonds until exercise of stock subscription
warrants (100,000 yen) shall not be cancelled because the corporate
bonds themselves shall remain as straight bonds even after exercise of
the rights.
Note 6. Acquired stock certificates shall be processed as old shares (thesame shall apply hereinafter).
2) Book value of the corporate bonds < Face value of the corporate bonds
Book Value Example 1: Case of 9,500,000 yen
Stock certificates: 9,999,900

Call Loans: 9,999,900(or money trusts)(2) In case of substitute 1) Book value of the corporate bonds ≥ Face value of the corporate bonds
payment
Stock certificates: 10,699,900
Accounts Receivable: 100
Accrued Interest Income:-100,000

Corporate bonds: 10,500,000
Prepaid expenses: 200,000
Interest Income: -100,000

Note 1. Accounts receivable (amount to be delivered for rounding upon
said exercise)= 10,000,000 yen - (33,333 shares x 300 yen)
…The same shall apply hereinafter.
Note 2. The amount from Note 1 shall be deducted from the book valueof the corporate bonds (10,500,000 yen) and the balance of accrued
interest account at the time of acquisition of the corporate bonds

(200,000 yen), and the book value of the corporate bonds shall betransferred to the book value of the stock certificates.
Note 3. The balance of accrued interest income account (100,000 yen)from the time of the acquisition of corporate bonds until the time of
exercise of stock subscription warrants shall be cancelled.
…The same shall apply hereinafter.
2) Book value of the corporate bonds < Face value of the corporate
bondsBook Value Example 1:

Case of 9,500,000 yen

Stock certificates 10,199,900
Accounts Receivable: 100

Corporate bonds 9,500,000
Gain on Securities Transactions:
500,000

Accrued Interest Income:-100,000

Prepaid Expenses: 200,000
Interest Income: -100,000

Note 1. Gain on securities transactions (500,000 yen)
= 10,000,000 yen - 9,500,000 yen
Note 2. The book value of stock certificates shall be the amountcalculated by deducting accounts receivable (100 yen) from the facevalue of corporate bonds (10,000,000 yen) and adding the balance of
already existing accrued interest at the time of acquisition of thecorporate bonds (200,000 yen).

13. Accounting for Futures Trading
Journal entry, etc.
(Note) “Call Loans” in accounts journal entries shall mean deposits, money trusts, call loans, and customers’ margin deposits.
Category
Futures Transactions
1. Opening Transaction(1) Buy contract

Calculations, etc.

Number of contracted
units
Contract unit priceContract priceFees
Net price
Customers’ margindeposits
Customers’ margindeposits
Substitute Securities

Quantity of new contracts
Buy contract unit price
Quantity of new contracts x buy contract unit price x set multiple(Note) In case of one-way payment in advance, the fees are processedon the outstanding futures transactions a/c.
Contract price + fees
Cash portion + substitute securities
The same shall apply to sellportioncontracts.
(The same shall apply
Substitute securities portion
hereinafter.)

Accounts Journal
Contract Date
Futures Purchases
Accounts Payable for(Net Price)
Futures Transactions(Net Price)(Note) Fees
On the Contract Date in Case of Advance
Payment
Futures Purchases
Accounts Payable for Futures(Net Price)Transactions(Net price - Fees)
Call Loans or
Outstanding Amounts (Fees)

Deposit Date
Customers’ Margin
Deposits(Cash + Substitutions)(2) Sell contract
Number of contracted
units
Contract unit priceContract priceFees
Net price

Quantity of new contracts
Sell contract unit price
Quantity of new contracts x sell contract unit price x set multiple
In the case of one-way payment in advance, the fees are recorded on
the outstanding futures transactions a/c.
Contract price - fees

Call Loans, etc.
(Cash)
Customers’ Margin
Deposits
Substitute Securities(Substitutes)

Contract Date
Accounts Receivable for Futures Sale
Futures Transactions(Net Price)(Net Price)(Note) Fees
On the Contract Date in Case of Advance Payment
Accounts Receivable for
Futures Sale
Futures Transactions(Net Price)(Net price + Fees)
Call Loans, etc.
Or Accounts Payable(Fees)

Category
2. Closing Transactions(1) Reversing trade(i) Resale

Calculations, etc.
Number of contracted
units
Contract unit priceContract priceFees (outgoing)

Fees (incoming)
Right modification unit
price
Settlement amount

Deduction of accounts
payable for futurestransactions
A

Deduction of futurespurchases
B

Resale quantity
Resale unit price
Resale quantity x resale unit price x set multiple(1) Whole Resale
Full amount of the balance of the total fees of buy contracts, etc.
(2) Partial Resale (a)Resale quantity
Balance of buy contract fees ×Remaining quantity of contracts(In principle, the total amount of fees, consumption tax, and amounts
equivalent to exchange tax shall be calculated separately.)Amount equivalent to rights announced by the Exchange (The same
shall apply hereinafter.)(1) In case of incoming and outgoing collection of fees, etc. at the timeof resale
Resale quantity x {resale unit price - (buy contract unit price - rightmodification unit price)} x set multiple - fees (outgoing andincoming)
Difference ≥ 0 Settlement amount receivable
Difference < 0 Settlement amount payable(2) Incoming fee collection only at the time of resale…If the outgoing portion shall be paid when the contract is madeResale quantity x {resale unit price - (buy contract unit price - rightmodification unit price)} x set multiple - fees (incoming)
Difference ≥ 0 Settlement amount receivable
Difference < 0 Settlement amount payable(1) Whole Resell
Outstanding balance of futures transactions(2) Partial Resale
Resale quantity
Balance of buy contract price x ----------------------- + fees (outgoing)
Remaining quantity of contracts{Individually calculated in (a)}(1) If before revaluation, the amount equivalent to the amountdeducted from the outstanding amount of futures transactions above(2) Partial Resale after Revaluation
Resale quantity
Balance of futures purchases x----------------------Remaining quantity of contracts

Accounts JournalCategoryCalculations, etc.
Loss or gain on closingof accounts

Accounts payable for futures transactions - futures purchases ±settlement amount receivable and payable - advance payment fees(A)

Customers’ margindeposits(B)

Abovementioned

Accounts Journal
Contract Date
Accounts Payable for
Futures Purchases
Futures Transactions(B)(A)
Accounts Receivable
Accounts Payable(Settlement Amount(Settlement Amount
Receivable)
Payable)Losses on Futures
Gains on Futures
Transactions, etc.
Transactions, etc.
(Loss on Settlement)(Gains on Settlement)
Delivery Date
Call Loans, etc.
Accounts Receivable(Settlement Amount(Settlement Amount
Receivable)
Receivable)
Accounts Payable
Call Loans, etc.
(Settlement Amount(Settlement Amount
Payable)Payable)Call Loans, etc.

Withdrawal Date
Customers’ Margin
Deposits

Customers’ Margin
Deposits
Substitute Securities

CategoryCalculations, etc.

Accounts Journal(ii) Repurchase
Number of contracted
units
Contract unit priceContract priceFees (outgoing)

Fees (incoming)
Right modification unit
price
Settlement amount

Deduction of accountreceivables for futurestransactions
C

Deduction of futures
sales
D

Repurchase quantity
Repurchase unit price
Repurchase quantity x repurchase unit price x set multiple(1) Full Repurchase
Full amount of the balance of sell contract fees
(2) Partial Resale (a)Repurchase quantity
Balance of sell contract fees x--------------------------------Remaining quantity of contracts(In principle, the total amount of fees, consumption tax, and amounts
equivalent to exchange tax shall be calculated separately.)(1) In case of incoming and outgoing collection of fees for
repurchasing.
Repurchase quantity x {(sell contract unit price - right modification
unit price) - repurchase unit price) x set multiple - fees (outgoingand incoming)
Difference ≥ 0 Settlement amount receivable
Difference < 0 Settlement amount payable(2) If fees are collected only at the time of repurchase……The
outgoing portion shall already have been paid when the contract ismade
Repurchase quantity x {(sell contract unit price - right modification
unit price) - repurchase unit price} x set multiple - fees (incoming)
Difference ≥ 0 Settlement amount receivable(1) Full Repurchase
Outstanding balance of accounts receivable for futures transactions(2) Partial Repurchase
Repurchase quantity
Balance of sell contract price x------------------------ + fees (outgoing)
Remaining quantity of contracts{Individually calculated in (a)}(1) If before revaluation, the amount equivalent to the amountdeducted from the outstanding amount of futures transactions above(2) Partial repurchase after revaluation
Repurchase quantity
Forward sales balance x------------------------Remaining quantity of contracts

Futures Sale
(D)

Contract Date
Accounts Receivable for
Futures Transactions(C)

Accounts Receivable(Settlement Amount
Receivable)

Accounts Payable(Settlement Amount
Payable)Losses on Futures
Transactions, etc.
(Loss on Settlement)

Gains on Futures
Transactions, etc.
(Gains on Settlement)

Delivery Date
Call Loans, etc.
Accounts Receivable(Settlement Amount(Settlement Amount
Receivable)
Receivable)
Accounts Payable(Settlement Amount
Payable)Call Loans, etc.

Call Loans, etc.
(Settlement Amount
Payable)Withdrawal Date
Customers’ Margin
Deposits

Customers’ Margin
Deposits
Substitute Securities

CategoryCalculations, etc.
Loss or gain on closingof accounts

Futures sales - accounts receivable for futures transactions ±settlement amount receivable and payable - advance payment fees
(D)

Customers’ Margin
Deposits(C)

Abovementioned

Accounts JournalCategory(2) Delivery settlement(i) Contract for difference(A) Buy contract
settlement

Calculations, etc.
Number of contracted
units
Contract unit priceContract priceFees (outgoing)
Fees (incoming)
Right modification unit
price
Settlement amount

Deduction of accountpayable for futurestransactions
E
Deduction of futurespurchases
F
Settlement loss or gain

Settlement quantity
Settlement unit priceSettlement quantity x settlement price x set multiple
Fees (outgoing)(1) In case of incoming and outgoing collection of fees at the time ofsettlement
Settlement quantity x {settlement unit price - (buy contract unit
price - right modification unit price)} x set multiple - fees
(outgoing)
Difference ≥ 0 Settlement amount receivable
Difference < 0 Settlement amount payable(2) Fees are collected only at the time of settlement……If theoutgoing portion shall be paid when the contract is madeSettlement quantity x {settlement unit price - (buy contract unit
price - right modification unit price)} x set multiple
Difference ≥ 0 Settlement amount receivable
Difference < 0 Settlement amount payable
Full amount of the outstanding balance for futures transactions

Full amount of the outstanding balance for futures purchases

Accounts payable for futures transactions - futures purchases ±settlement amount receivable and payable - advance payment fees
(E)

Customers’ Margin
Deposits

Abovementioned(F)

Accounts Journal
Settlement Date
Accounts Payable for
Futures Purchases
Futures Transactions(F)(E)
Accounts Receivable
Accounts Payable(Settlement Amount(Settlement Amount
Receivable)
Payable)Losses on Futures
Gains on Futures
Transactions, etc.
Transactions, etc.
(Loss on Settlement)(Gains on Settlement)
Delivery Date
Call Loans, etc.
Accounts Receivable(Settlement Amount(Settlement Amount
Receivable)
Receivable)
Accounts Payable(Settlement Amount
Payable)Call Loans, etc.

Call Loans, etc.
(Settlement Amount
Payable)Withdrawal Date
Customers’ Margin
Deposits

Customers’ Margin
Deposits
Substitute Securities

Category(B) Sell contract settlement

Calculations, etc.
Number of contracted
units
Contract unit priceContract priceFees (outgoing)
Fees (incoming)
Right modification unit
price
Settlement amount

Withdrawal of
accounts receivable for
futures transactions

Deduction of futuressales
HSettlement loss or gain

Settlement quantity
Settlement unit priceSettlement quantity x settlement unit price x set multiple(1) In case of incoming and outgoing collection of fees at the time ofsettlement
Settlement quantity x {(sell contract unit price - right modification
unit price - settlement unit price} x set multiple - fees (outgoing)
Difference ≥ 0 Settlement amount receivable
Difference < 0 Settlement amount payable(2) If fees are collected only at the incoming time of settlement
Settlement quantity x {(sell contract unit price - right modification
unit price) - settlement unit price} x set multiple
Difference ≥ 0 Settlement amount receivable
Difference < 0 Settlement amount payable
Full balance of accounts receivable for futures transactions

Full balance of futures sales

Futures sales - accounts receivable for futures transactions ±settlement amount receivable and payable - advance payment fees
(H)

Customers’ margindeposits

Accounts Journal

Abovementioned(G)

Futures Sale
(H)

Settlement Date
Accounts Receivable for
Futures Transactions(F)

Accounts Receivable(Settlement Amount
Receivable)

Accounts Payable(Settlement Amount
Payable)Losses on Futures
Transactions, etc.
(Loss on Settlement)

Gains on Futures
Transactions, etc.
(Gains on Settlement)

Delivery Date
Call Loans, etc.
Accounts Receivable(Settlement Amount(Settlement Amount
Receivable)
Receivable)
Accounts Payable(Settlement Amount
Payable)Call Loans, etc.

Call Loans, etc.
(Settlement Amount
Payable)Withdrawal Date
Customers’ Margin
Deposits

Customers’ Margin
Deposits
Substitute Securities

Category(2) Settlement in kind(A) Actual receipt(a) Standardized
government bonds(b) Stock futures 50

Calculations, etc.

6. See Special Provision (1) for standardized government bonds transactions.
Number of contracted
units
Contract unit priceContract price
Futures fees (outgoing)

Exchange tax equivalent(outgoing)
Net price(Amount to be prorated
for the contract price)
Actual receipt fees
Settlement amount(Total customer
payment)
Withdrawal of accounts
payable for futurestransactions (E)Deduction of futurespurchases(F)(E) - (F)Spot transaction quantity (last quantity of buy contracts)
Buy contract unit price - right modification unit priceSpot transaction quantity x (buy contract unit price - rightmodification unit price) x 50,000
Futures fees (outgoing) balance (futures fees [outgoing] when thebuy contract is made- futures fees [outgoing] at the time of sellback)Exchange tax equivalent (outgoing) balance (exchange tax
equivalent [outgoing] when the buy contract is made)- exchange tax equivalent (outgoing) at the time of sellback
Contract price + futures fees (outgoing) + Exchange tax equivalent(outgoing)
Same as spot fees, described below
Contract price + futures fees (outgoing) + Exchange tax equivalent(outgoing)+ spot transaction fees
Outstanding balance of futures transactions

Accounts Journal

Next Business Day After the Last Trading Day
Stock certificates
Accounts Payable(Settlement Amount)(Settlement Amount)
Accounts Payable for
Futures Transactions(E)
Losses on Futures
Transactions, etc.
(Difference < 0)

Difference ≥ 0 Gains on futures transactions
Difference < 0 Losses on futures transactions

Gains on Futures
Transactions, etc.
(Difference ≥ 0)

Delivery Date
Call Loans(or money trusts)(Settlement Amount)(Settlement Amount)
Accounts Payable

Call Loans(or money trusts)
Balance of futures purchases

Futures Purchases(F)

Delivery Date
Customers’ Margin
Deposits

Customers’ Margin
Deposits
Substitute Securities

CategoryCalculations, etc.
Issue
(Pro-rata
amount)Deposits for each individual(c) Japanese yen currency
futures(Tokyo Financial futures)

Actual receipt
fees
Settlement
amountNumber ofacquired shares
Contract unit
price

Accounts Journal

Used to prorate the net price to the net price for each individual issue.
The share price shall be the closing price on the spot market on the last
trading day.
Net price of A1 issue
Closing price of A1 issue x number of 1 trading unit shares= Net price x
A50n issue closing price x 1 number of trading unit shares= 1 (rounded down to the nearest yen)
(Note) The difference between the net price and the total amount of the
pro rata allotment shall be allocated in the order of the smallest
security code by 1 yen each.
Net price of A1 issue x set actual receipt fees rate (rounded down to thenearest yen)(Same as the actual receipt fees)
Net price of A1 issue + actual receipt fees for A1 issue[Next Business Day After the Last Trading Day]

Actual receipt quantity x 1 trading unit number of shares
Net price of A1 issue---------------------------------------------(Rounded down to the nearest yen)
Number of acquired shares for A1 issue

Daily Trial Balance Sheet for Foreign Currency
Accounts Payable for
Futures Purchases
Futures Transactions(Gains on Futures(Losses on Futures
Transactions)
Transactions)
Daily Trial Balance Sheet for Japanese Currency
Foreign Exchange
Selling Exchange
Accounts Receivable
Accounts Payable for
Futures Transactions

Accounts Payable

Losses on Futures
Transactions, etc.

(A)

Commission in yen and consumption tax[6. See Special Provision (2)]Category

Calculations, etc.

Accounts Journal

[Delivery date]
Daily Trial Balance Sheet for Foreign Currency
Foreign Currency
Deposit
Funds(Loss Account)(Profit Account)
Daily Trial Balance Sheet for Japanese
Currency
Selling exchange
Foreign Exchange
Accounts Receivable
Call Loans, etc.
(Loss Categories)----------Accounts Payable(A)(Gain Categories)--------------Call Loans, etc.

Same as remittances of foreign currency

Category(B) Current offering(a) Standardized
government bonds(b) Stock futures 50

Calculations, etc.

Accounts Journal

6. See Special Provision (1) for standardized government bonds transactions.
Number of contracted
units
Contract unit priceContract price
Futures fees (outgoing)

Net price(Amount to be prorated
for the contract price)
Actual delivery fees
Securities transaction tax
Settlement amount(Total customer
payment)
Withdrawal fromaccounts receivable for
futures transactions (G)Deduction of futures
sales
(H)
(H) - (G)Actual delivery quantity (last quantity of buy contracts)
Sell contract unit price - right modification unit price
Actual delivery quantity x (sell contract unit price - rightmodification unit price) x 50,000
Balance of futures fees (outgoing) (Futures fees [outgoing] when thesell contract is made- futures fees [outgoing] at the time of buyback)Contract price + futures fees (outgoing) + Exchange tax equivalent(outgoing)
Same as spot fees, described below
In-kind securities transaction tax, as described below
Contract price - futures fees (outgoing) - exchange tax equivalent(outgoing)- actual delivery fees - securities transaction tax
Balance of accounts receivable for futures transactions

Balance of futures purchases

Next Business Day After the Last Trading Day
Accounts Receivable
Stock certificates(Settlement Amount)(Book value in kind)
Loss on Securities
Transactions

Gain on Securities
Transactions

Futures Sale
(H)

Accounts Receivable for
Futures Transactions(G)
Gains on Futures
Transactions, etc.
(Difference ≥ 0)

Losses on Futures
Transactions, etc.
(Difference < 0)Call Loans(or money trusts)

Delivery Date
Customers’
Deposits(Settlement Amount)

Difference ≥ 0 Gains on futures transactions
Difference < 0 Losses on futures transactions
Call Loans(or money trusts)

Margin(Settlement Amount)

Delivery Date
Customers’ Margin
Deposits

Customers’ Margin
Deposits
Substitute Securities

Category(a) Japanese yen currency
futures(Tokyo Financial futures)

Calculations, etc.

Accounts Journal[Next Business Day After the Last Trading Day]
Daily Trial Balance Sheet for Foreign Currency
Futures Sale
Accounts Receivable(Losses on Futures
for Futures
Transactions)
Transactions(Gains on Futures
Transactions)

Daily Trial Balance Sheet for Japanese Currency
Foreign Exchange
Foreign Exchange
Purchases
Accounts Payable----------- --------Accounts Payable for
Accounts Payable
Futures Transactions(A)
Losses on Futures
Transactions, etc.
Commission paid in yen and consumption tax[6. See Special Provision (2)][Delivery date]
Daily Trial Balance Sheet for Foreign Currency
Deposit
Foreign Currency
Funds
Daily Trial Balance Sheet for Japanese Currency
Foreign Exchange
Foreign Exchange
Accounts Payable
Purchases
Foreign Investment
Accounts
Call Loans, etc.
------------ --------------Accounts Payable
Call Loans, etc.
(A)
Same as foreign currency processing

Category
3. Modification of Rights

Calculations, etc.
Buy contracts
Sell contract

4. Valuation

Buy contracts

Right modification price = Remaining buy contract quantity x rightmodification unit price x set multiple
Right modification price = Remaining buy contract quantity x rightamendment unit price x set multiple(Remaining buy contract quantity x evaluated unit price x set
multiple) - buy contract net price(Market value) (Book value)
Difference ≥ 0 Valuation gain
Difference <0 Valuation Loss

Sell contract

5. Revaluation

6. Calculated Profit
Withdrawals(Remaining buy contract quantity x evaluated unit price x set
multiple) - sell contract net priceDifference > 0 Valuation Loss
Difference < 0 Valuation GainIn the case of open type investment trusts, revaluation shall be made to the market value on the fundsettlement date.
Buy contracts
Valuation gains shall be recorded as futures transaction, etc. gains, andvaluation losses shall be recorded as futures transaction, etc. losses.
Sell contract
Same as above

Acceptance of
calculated gains

If calculated gains can be withdrawn, they shall be processed bycollecting customers’ margin deposits.

Accounts Journal[Buy Contracts]
Right modification date
Accounts Payable for
Futures Purchases
Futures Transactions(Right Modification Fee)
(Right Modification Fee)
[Sell Contracts]
Right modification date
Futures Sale
Accounts Receivable for(Right Modification Fee) Futures Transactions(Right Modification
Fee)

Every day
Valuation Gain or Losson Futures Transactions,etc.
Valuation Loss (-) or
Gain[Buy Contracts]
Fund Settlement Date
Futures Purchases
Gains on Futures(Valuation Margin)
Transactions, etc.
Losses on Futures(Valuation Loss)
Transactions, etc.
Futures Purchases(Valuation Loss)(Valuation Loss)[Sell Contracts]
Fund Settlement Date
Futures Sale
Gains on Futures(Valuation Margin)
Transactions, etc.
Losses on Futures(Valuation Loss)
Transactions, etc.
Futures Sale
(Valuation Loss)(Valuation Loss)

Call Loans, etc.

Delivery Date
Customers’ Margin
Deposits

7. Special Provisions(1) Standardized Government Bonds Transactions
Journal Entry Example
Accounts Journal for Futures Purchase Contracts

Remarks

Accounts Journal for Futures Sales Contracts◇ On December 17, Fund A (open type) purchased 1 billion yen face value ◇ On October 21, Fund B (unit type) sold 1 billion yen face value ofof futures for the March contract month. (Contract Price = @ 97.50)
futures for the December contract month. (Contract Price = @ 98.00)
12/17 Contract Date
Accounts Payable for Futures
Transactions a/c
975,300,000 yen
975,300,000 yen

Futures Purchases a/c* Commission, etc.: 300,000
yen
12/19 (3rd Business Day) Customers’ Margin Deposit
Customers’ Margin Deposit a/c Money Trust a/c
30,000,000 yen (or call loans)
10,000,000 yen
Securities Received as Custom
ers’ Deposits for Customers’
Margin a/c 20,000◇ On February 10, Accounts settled due to the settlement of the fundabove Revaluate * (1).

10/21 Contract Date
Accounts Receivable for
Futures Sales a/c
Futures Transactions a/c
979,700,000 yen
979,700,000 yen* Commission, etc.: 300,000
yen

10/23 (3rd Business Day) Customers’ Margin Deposit
Customers’ Margin Deposit a/c Money Trust a/c
30,000,000 yen (or call loans)
10,000,000 yen
Securities Received as
Customers’ Deposits for
Customers’ Margin a/c 20,000(The unit type does not undergo revaluation for closing)* (1) Revaluation for closing is made for the open type only.

Final price for the contract month of March @ 97.20
Loss on Futures Transaction a/c Futures Purchases a/c
3,300,000 yen
3,300,000 yen◇ On March 4, Fund A settled the above futures transaction throughreversing trade. (Contract Price = @ 98.80)
However, this fund has been revaluated due to its February 10
closing date. (Loss on sale: 3,300,000 yen)
3/4 Contract Date
Accounts Payable for Futures
Futures Purchases a/c
Transactions a/c
972,000,000 yen
975,300,000 yen◇ On December 2, Fund B settled the above futures transaction
through reversing trade. (Contract Price = @ 99.44)
12/2 Contract Date
Futures Sales a/c
Accounts Receivable for Futu
res Transactions a/c
979,700,000 yen
979,700,000 yen* (2) Accounts Receivable a/c Gain on futures transaction a/c
15,70012,400Loss on Futures Transaction a/c * (3) Accounts Payable a/c
15,00015,000* (2) Accounts receivable (settlement amount) 12,400,000 yen =1 billion yen x (98.80 - 97.50) x 1/100 - 600,000 yen(Face Value) (Settlement Contract Price) (Purchase Contract Price)(Commission, etc.)* (3) Accounts payable (clearing price) 15,000,000 yen =1 billion yen x (98.00 - 99.44) x 1/100 - 600,000 yen(Face Value) (Sales Contract Price) (Settlement Contract Price)(Commission, etc.)

Journal Entry Example
3/7 Delivery Date (4 Business Days)
Money Trust a/c(or call loans)

Accounts Receivable a/c
12,400,000 yen

Money Trust a/c(or call loans)
10,000,000 yen
Securities Received as
Customers’ Deposits for
Customers’ Margin a/c
20,000Remarks
12/5 Delivery Date (4 Business Days)

Accounts Payable a/c

12,400,000 yen
Customers’ Margin Deposits
30,000,000 yen

5,000,000 yen
Money Trust a/c(or call loans)

Money Trust a/c(or call loans)
5,000,000 yen
Customers’ Margin Deposit a/c
30,000,000 yen

10,000,000 yen
Securities Received as
Customers’ Deposits for
Customers’ Margin a/c
20,000◇ In the event that the futures transaction above is settled through delivery ◇ In the event that the futures transaction above is settled through(actual receipt of stock purchased)
delivery (actual delivery of stock sold)- Final clearing price@97.60- Final clearing price@98.80- CF of deliverable bonds
1.025- CF of deliverable bonds
1.035- Book value of actual delivery of stock sold: 995,000 yen (@ 99.50)
3/10 (the next business day after the last day of a futures transaction)
Accounts Payable for Futures Futures Purchases a/c
Transactions a/c
975,300,000 yen
972,000,000 yen
Accounts Receivable a/c* (4) Gain on Futures
Transaction a/c
400
3,700

3/17 Actual receipt of stock purchased confirmation date (4business days before delivery date)* (6) Government Bonds a/c
Accounts Payable a/c
1,000,400
1,000,400,000 yen

12/10 (the next business day after the last day of a futures transaction)
Futures Purchases a/c

Accounts Receivable for
Futures Transactions a/c
979,700,000 yen
979,700,000 yen* (5) Loss on Futures
Accounts Payable a/c
Transaction a/c
8,600
8,600
12/10 Contact Date for Actual Delivery of Stock Sold
Accounts Receivable a/c
Government bonds a/c
1,022,273,000 yen
995,000,000 yen* (7) Gain on Sale of Public andCorporate Bonds a/c
22,273* (4) Gain on Futures Transactions: 3,700,000 yen =1 billion yen x (97.60 - 97.20) x 1/100 - 300,000 yen(Face Value) (Final Clearing Price) (Book Value) (Commission
Fees, etc.)* (5) Loss on Futures Transactions: 8,600,000 yen =1 billion yen x (97.97 - 98.80) x 1/100 - 300,000 yen(Face Value) (Book Value) (Final Clearing Price) (Commission
Fees, etc.)* (6) Government Bonds: 1,000,400,000 yen =1 billion yen x 97.60 x 1.025 x 1/100(Face Value) (Final Clearing Price) (CF)* (7) Gains on sales of public and corporate bonds: 27,273,000 yen =1 billion yen x (98.80 x 1.035 - 99.50) x 1/100 - 307,000 yen(Face Value) (Final Clearing Price) (CF) (Book Value) (Transaction
Tax)
Contract Price for Actually Delivered Stock Sold
@102.258(Transaction Tax = 1 billion yen x 102.258 x 1/100 x 3/10.000)(Tax Rate)Journal Entry Example

Remarks

3/20 Delivery Date
Accounts Payable a/c* (5) Money Trust a/c
1,000,400,000 yen (or call loans)
1,000,000,000 yen
Accounts Receivable a/c
400

12/20 Delivery Date
Money Trust a/c
Accounts Receivable a/c(or call loans)
1,022,273,000 yen* (9) 1,013,673,000 yen
Accounts Payable a/c
8,600

Money Trust a/c(or call loans)

Money Trust a/c(or call loans)* (8) Settlement Amount
1 billion yen= 1 billion yen x {(97.60 x 1.025) + (97.50 - 97.60)} x 1/100 +
600,000 yen(Face Value) (Final Clearing Price) (Deliverable Bond CF) (Sales
Contract Price) (Final Clearing Price) (Clearing Fees, etc.)
Contract Price for Stock Traded

Customers’ Margin Deposit a/c
30,000,000 yen
10,000,000 yen

Securities Received as
Customers’ Deposits for
Customers’ Margin a/c

Customers’ Margin Deposit a/c
30,000,000 yen* (9) Settlement amount
1,013,673,000 yen = 1 billion yen x

Securities Received as
Customers’ Deposits for
Customers’ Margin a/c
20,000

Delivery Price

10,000,000 yen

20,000{98.80 × 1.035) + (98.00 - 98.80)} × 1/100 - (600,000 yen + 307,000
yen)(Final Clearing Price) (Deliverable Bond CF) (Sales Contract Price)(Settlement Contract Price) (Fees) (Transaction Tax)

Contract Price for Actually Delivered Stock Sold
Delivery Price(Clearing Fees)(Transaction tax = 1 billion yen x 102.258 x 1/100 x 3/10,000 (taxrate))

Amount of actual delivery of stock sold(2) Special Provision for Accounting for the Contract Amount and Commission Charge (Including Consumption Tax) Converted Into Other Currencies, Such as in “Futures Transactions inJapanese Yen”
The following directive shall apply to accounting for brokerage commissions and consumption taxes on “Japanese Yen Currency Futures” and “US Dollar Short Term Interest Rate
Futures” within the Tokyo Financial Futures Exchange.
Buy Contracts

Sell Contracts

Daily Trial Balance Sheet for Japanese Currency Daily Trial Balance Sheet for Foreign Currency Daily Trial Balance Sheet for Japanese Currency Daily Trial Balance Sheet for Foreign Currency(1) A New Position
Opening(1) Contract Date

* Includes Commission (including consumption
tax)* Records Contract Amount* Includes Commission (including consumption
tax)* Records Contract Amount

Losses on Futures
Transactions, etc.

Futures Purchases

Losses on Futures
Transactions, etc.

Accounts Receivable Futures Sale
for Futures
Transactions

Accounts Payable for
Futures Transactions

Accounts Payable for
Futures Transactions

Accounts Payable for
Futures Transactions(2) Settlement Date
(1) Contract Date
Accounts Payable for Accounts Payable
Futures Transactions

Accounts Payable for
Futures Transactions

Futures Purchases

Accounts Payable for
Futures Transactions

Losses on Futures
Transactions, etc.

[Accounts
Receivable][Accounts Payable]

Losses on Futures
Transactions, etc.

(Settlement Contract
Amount)[Loss on Futures
Transactions, etc.][Gains on Futures
Transactions, etc.](Settlement Contract
Amount)[Deposit][Accounts Receivable]

Accounts Payable[Accounts Payable][Deposit]

Accounts Payable

Futures Sale

Accounts Receivablefor Futures
Transactions[Accounts Receivable] [Accounts Payable][Loss on Futures
Transactions, etc.][Gains on Futures
Transactions, etc.][Deposit][Accounts Receivable][Accounts Payable][Deposit](2) Delivery Date
Accounts Payable

Call Loans, etc.

Call Loans, etc.

14. Accounting for Option Trading
Journal entry, etc.
(Note) The term “Call Loans, etc.” in the following accounts journal means deposits, money trusts, call loans, and customers’ margin deposits.
Category
Option Trading
1. Opening Trading(1) Buy Contract(Applies to both call and put)

(2) Sell Contract(Applies to both call and put)

Calculations, etc.

Accounts Journal(1) CallNumber ofcontracted units
Contract unit priceContract priceFees
Net price
Book value
Book unit price

Number ofcontracted units
Contract unit priceContract priceFees
Net price
Book value
Book unit price

Customers’ Margin
Deposits
Customers’ Margin
Deposits
Substitute securities

Quantity of buy contracts
Buy contract unit price
Quantity of buy contracts x unit price x set multiple
Contract price + fees
Net price
Book value―――――――――――(Rounded down to the second decimal place)
Buy contract quantity x set multiple
Quantity of sell contracts
Sell contract unit price
Quantity of sell contracts x unit price x set multiple
Contract price - fees
Net price
Book value―――――――――――(Rounded down to the second decimal place)
Quantity of sell contracts x set multiple

Contract Date
Call Option (Buy)
Accounts Payable(Net Price)(Net Price)

Accounts Payable(Net Price)

Delivery Date
Call Loans, etc.
(Net Price)(2) Put
Contract Date
Put Option (Buy)
Accounts Payable(Net Price)(Net Price)

Accounts Payable(Net Price)

Delivery Date
Call Loans, etc.
(Net Price)(1) CallContract Date
Accounts Receivable
Call Option (Sell)(Net Price)(Net Price)

Call Loans, etc.
(Net Price)

Delivery Date
Accounts Receivable(Net Price)

Customers’ Margin
Deposits

Deposit Date
Call Loans, etc.
Customers’ Margin
Deposits
Substitute Securities

CategoryCalculations, etc.

Accounts Journal(2) Put
Contract Date
Accounts Receivable
Put Option (Sell)(Net Price)(Net Price)

Call Loans, etc.
(Net Price)

Delivery Date
Accounts Receivable(Net Price)

Customers’ Margin
Deposits

Deposit Date
Call Loans, etc.
Customers’ Margin
Deposits
Substitute Securities

Category
2. Closing Transaction(1) Resale(Applies to both call and put)

Calculations, etc.

Accounts Journal(1) CallNumber of contracted
units

Resale quantity

Contract unit price

Resale unit priceContract price

Resale quantity x resale unit price x set multiple

Contract Date
Accounts Receivable
Call Option (Buy)(Net Price)(Book Value)
Losses on Futures
Gains on Futures
Transactions, etc.
Transactions, etc.
(Difference < 0)
(Difference ≥ 0)

Fees
Net price
Book value of saleContract price - fees(1) Whole Resell
Full amount of book value(2) Partial Resale
Resale quantity x book unit price x set multiple

Call Loans, etc.
(Net Price)

Delivery Date
Accounts Receivable(Net Price)(2) Put
Contract Date
Accounts Receivable
Put Option (Buy)(Net Price)(Book Value)
Losses on Futures
Gains on Futures
Transactions, etc.
Transactions, etc.
(Difference < 0)
(Difference ≥ 0)

Call Loans, etc.
(Net Price)

Delivery Date
Accounts Receivable(Net Price)CategoryCalculations, etc.

Accounts Journal(1) Call(2) Repurchase(Applies to both call and put)Number of contracted
units

Repurchase quantity

Contract unit price

Repurchase unit priceContract price

Repurchase quantity x repurchase unit price x set multiple

Contract Date
Call Option (Sell)
Accounts Payable(Book Value)(Net Price)
Losses on Futures
Gains on Futures
Transactions, etc.
Transactions, etc.
(Difference < 0)
(Difference ≥ 0)

Fees
Net price
Book value of portion
soldTransaction loss or
gain
Customers’ margindeposits

Contract price + fees
(1) Full Repurchase
Full amount of book value(2) Partial Repurchase
Repurchase quantity x book unit price x set multiple
Book value of portion sold - Net priceDifference ≥ 0
Difference < 0Accounts Payable(Net Price)

Delivery Date
Call Loans, etc.
(Net Price)

Withdrawal Date
Customers’ Margin
Deposits
Customers’ Margin
Deposits
Substitute Securities
Call Loans, etc.

(2) Put
Contract Date
Put Option (Sell)
Accounts Payable(Book Value)(Net Price)
Losses on Futures
Gains on Futures
Transactions, etc.
Transactions, etc.
(Difference < 0)
(Difference ≥ 0)

Accounts Payable(Net Price)

Delivery Date
Call Loans, etc.
(Net Price)

Withdrawal Date
Call Loans, etc.
Customers’ Margin
Customers’ Margin
Deposits
Deposits
Substitute Securities

Category(3) Exercise of Rights(1) Exercise of Call Rights(a) Futures Options(Securities, interest,
currency, etc.)

Calculations, etc.
Number of contracted
unitsBook value of portion
to be exercised
Transfer amount fortransaction losses

Exercise quantity

Quantity of buy
contracts
Buy contract unit price
Buy Contract PriceFees
Buy contract net price
Customers’ margindeposits

Exercise quantity

Accounts Journal
Date of exercise
Losses on Futures
Call Option (Buy)Transactions, etc.
(Book Value)(Transfer amount fortransaction losses)

Exercise quantity x book value x set multiple
Book value of portion to be exercised

Date of exercise
Futures purchases
Accounts Payable for(Buy Contract Net Price) Futures Transactions(Buy Contract Net Price)

A. Buy Contracts

B. Sell Contracts(b) Futures Options(Index)Exercise price (= strike price)
Exercise quantity x exercise price x set multiple

Customers’ Margin
Deposits

Buy contract price + fees

Deposit Date
Call Loans, etc.
Customers’ Margin
Deposits
Substitute Securities

Equivalent to futures transactions accounting
Date of exercise
Accounts Receivable
Call Option (Buy)(Settlement Amount(Book Value)
Receivable)
Gains on Futures
Losses on Futures
Transactions, etc.
Transactions, etc.
(Difference ≥ 0)
(Difference < 0)(c) Spot Options

Settlement Amount
Receivable

Call Loans, etc.

(Index value - exercise price) x exercise quantity x set multiple

Delivery Date
Accounts Receivable- FeesDate of exercise
Losses on Futures
Call Option (Buy)Transactions, etc.
(Book Value)(Transfer amount fortransaction losses)
Accounts Payable(Net Purchase Price)
Stock certificates, bonds,
or deposits(Items purchased)

Accounts Payable

Delivery Date
Call Loans, etc.

Category- When there are shares
below the minimum trade
unit when exercising stock
options

Calculations, etc.
Settlement amountwhen below theminimum unit

(Final price of stock certificates - exercise price)
x quantity of stock options below minimum trade unit

(Final price of stock certificates - exercise price) > 0

Accounts Journal
Date of exercise
Accounts Receivable
Gains on Futures(Settlement AmountTransactions, etc.
Receivable When Below(Settlement Amountthe Minimum Unit)
Receivable When Below
the Minimum Unit)

Call Loans, etc.

Delivery Date
Accounts Receivable(Final price of stock certificates - exercise price) < 0
Date of exercise
Losses on Futures
Accounts Payable
Transactions, etc.
(Settlement Amount(Settlement Amount
Payable When Below
Payable When Below the
the Minimum Unit)
Minimum Unit)

Accounts Payable

Delivery Date
Call Loans, etc.

Category(2) Exercise of Put Options(a) Futures Options(Securities, interest,
currency, etc.)

Calculations, etc.
Number of contracted
unitsBook value of portion
to be exercised
Transfer amount fortransaction losses

Exercise quantity

Quantity of sellcontracts
Sell contract unit priceSell Contract Price
Fees
Sell Contract Net Price
Customers’ margindeposits

Exercise quantity

Accounts Journal
Date of exercise
Losses on Futures
Put Option (Buy)Transactions, etc.
(Book Value)(Transfer amount fortransaction losses)

Exercise quantity x book value x set multiple
Book value of portion to be exercised

Date of exercise
Accounts Receivable for Futures Sale
Futures Transactions(Sell Contract Net Price)(Sell Contract Net Price)

A. Sell Contracts

B. Resale(b) Futures Options(Index)

Deposit Date
Customers’ Margin
Call Loans, etc.
Deposits
Customers’ Margin
Deposits
Substitute Securities

Exercise Price
Exercise quantity x exercise price x set multiple
Sell Contract Price - Fees

Equivalent to futures transactions accounting
Date of exercise
Accounts Receivable
Put Option (Buy)(Settlement Amount(Book Value)
Receivable)
Gains on Futures
Losses on Futures
Transactions, etc.
Transactions, etc.
(Difference ≥ 0)
(Difference < 0)(c) Spot Options

Call Loans, etc.
Settlement Amount
Receivable

Delivery Date
Accounts Receivable(Exercise price - index value) x exercise quantity x set multiple- FeesDate of exercise
Losses on Futures
Put Option (Buy)Transactions, etc.
(Book Value)(Transfer amount for
Stock Certificates,transaction losses)
Bonds, or Deposits
Accounts Receivable(Items sold)(Net Sales)
Gain on Securities
Loss on Securities
Transactions
Transactions

Call Loans, etc.

Delivery Date
Accounts Receivable

Category- When there are shares
below the minimum trade
unit when exercising stock
options

Calculations, etc.
Settlement amountwhen below theminimum unit

(Exercise price - final price of stock certificates)
x quantity of stock options below minimum trade unit

(Exercise price - final price of stock certificates) > 0

Accounts Journal
Date of exercise
Accounts Receivable
Gains on Futures(Settlement AmountTransactions, etc.
Receivable When Below(Settlement Amountthe Minimum Unit)
Receivable When Below
the Minimum Unit)

Call Loans, etc.

Delivery Date
Accounts Receivable(Exercise price - final price of stock certificates) < 0
Date of exercise
Losses on Futures
Accounts Payable
Transactions, etc.
(Settlement Amount(Settlement Amount
Payable When Below
Payable When Below the
the Minimum Unit)
Minimum Unit)

Accounts Payable

Delivery Date
Call Loans, etc.

Category(4) Exercise of Rights(1) Exercising Call Rights(a) Futures Options(Securities, interest,
currency, etc.)

Calculations, etc.
Number of contracted
unitsBook value of portion
to be exercised
Transfer amount fortransaction gains

Accounts Journal
Date of exercise
Call Option (Sell)
Gains on Futures(Book Value)
Transactions, etc.
(Transfer amount fortransaction gains)

Exercise Quantity
Exercise quantity x book unit price x set multiple
Book value of portion to be exercised

Date of exercise
Accounts Receivable for Futures Sale
Futures Transactions(Sell Contract Net(Sell Contract Net Price) Price)

A. Sell Contracts

B. Resale(b) Futures Options(Index)Quantity of sellcontracts
Sell contract unit priceSell Contract Price
Fees
Sell Contract Net Price
Customers’ margindeposits

Exercise Quantity
Exercise Price
Exercise quantity x exercise price x set multiple

Deposit Date
Customers’ Margin
Call Loans, etc.
Deposits
Customers’ Margin
Deposits
Substitute Securities

Sell Contract Net Price - Fees

Equivalent to futures transactions accounting
Date of exercise
Call Option (Sell)
Accounts Payable(Book Value)(Settlement amount
Losses on Futurespayable)Transactions, etc.
Gains on Futures(Difference < 0)Transactions, etc.
(Difference ≥ 0)(c) Spot Options

Settlement amountpayableAccounts Payable(Index value - exercise price) x exercise quantity x set multiple

Delivery Date
Call Loans, etc.

+ FeesDate of exercise
Call Option (Sell)
Gains on Futures(Book Value)
Transactions, etc.
Accounts Receivable(Transfer amount for(Net Sales)transaction gains)
Loss on Securities
Stock Certificates,
Transactions
Bonds, or Deposits(Items sold)Gain on Securities
Transactions

Call Loans, etc.

Delivery Date
Accounts Receivable

Category- When there are shares
below the minimum trade
unit when exercising stock
options

Calculations, etc.
Settlement amountwhen below theminimum unit

(Exercise price - final price of stock certificates)
x quantity of stock options below minimum trade unit

(Exercise price - final price of stock certificates) < 0

Accounts Journal
Date of exercise
Losses on Futures
Accounts Payable
Transactions, etc.
(Settlement Amount(Settlement Amount
Payable When Below the
Payable When Below the
Minimum Unit)
Minimum Unit)

Accounts Payable

Delivery Date
Call Loans, etc.

(Exercise price - final price of stock certificates) > 0
Date of exercise
Accounts Receivable
Gains on Futures(Settlement AmountTransactions, etc.
Receivable When Below(Settlement Amountthe Minimum Unit)
Receivable When Below
the Minimum Unit)

Call Loans, etc.

Delivery Date
Accounts Receivable

Category(2) Exercise of put rights(a) Futures Options(Securities, interest,
currency, etc.)

Calculations, etc.
Number of contracted
unitsBook value of portion
to be exercised
Transfer amount fortransaction gains

Accounts Journal
Date of exercise
Put Option (Sell)
Gains on Futures(Book Value)
Transactions, etc.
(Transfer amount fortransaction gains)

Exercise Quantity
Exercise quantity x book unit price x set multiple
Book value of portion to be exercised

Date of exercise
Futures Purchases
Accounts Payable for(Buy Contract Net Price) Futures Transactions(Buy Contract Net Price)

A. Buy Contracts

B. Sell Contracts(b) Futures Options(Index)Quantity of buy
contracts
Buy contract unit price
Buy Contract PriceFees
Buy contract net price
Customers’ margindeposits

Exercise Quantity
Exercise Price
Exercise quantity x exercise price x set multiple

Deposit Date
Customers’ Margin
Call Loans, etc.
Deposits
Customers’ Margin
Deposits
Substitute Securities

Buy Contract Net Price + Fees

Equivalent to futures transactions accounting
Date of exercise
Put Option (Sell)
Accounts Payable(Book Value)(Settlement Amount
Losses on Futures
Payable)Transactions, etc.
Gains on Futures(Difference < 0)Transactions, etc.
(Difference ≥ 0)(c) Spot Options

Settlement amountpayableAccounts Payable(Exercise price - index value) x exercise quantity x set multiple

Delivery Date
Call Loans, etc.

+ FeesDate of exercise
Put Option (Sell)
Gains on Futures(Book Value)
Transactions, etc.
Stock Certificates,(Transfer amount for
Bonds, or Deposits
transaction gains)(Items purchased)
Accounts Payable(Net Purchase Price)

Accounts Payable

Delivery Date
Call Loans, etc.

Category- When there are shares
below the minimum trade
unit when exercising stock
options

Calculations, etc.
Settlement amountwhen below theminimum unit

(Final price of stock certificates - exercise price)
x quantity of stock options below minimum trade unit

(Final price of stock certificates - exercise price) < 0

Accounts Journal
Date of exercise
Losses on Futures
Accounts Payable
Transactions, etc.
(Settlement Amount(Settlement Amount
Payable When Below
Payable When Below the
the Minimum Unit)
Minimum Unit)

Accounts Payable

Delivery Date
Call Loans, etc.

(Final price of stock certificates - exercise price) > 0
Date of exercise
Accounts Receivable
Gains on Futures(Settlement AmountTransactions, etc.
Receivable When Below(Settlement Amountthe Minimum Unit)
Receivable When Below
the Minimum Unit)

Call Loans, etc.

Delivery Date
Accounts Receivable

Category(5) Waiver of Rights(Applies to both call and put)

Calculations, etc.
Number of contracted
unitsBook value of portion
waivedTransfer amount fortransaction losses

Waiver Quantity
Quantity waived x book unit value x set multiple
Book value of portion waived

Accounts Journal(1) Call
Waiver Date
Losses on Futures
Call Option (Buy)Transactions, etc.
(Book Value)(Transfer amount forsales/purchase losses)(2) Put(6) Expiration of Obligations(Applies to both call and put)Number of contracted
unitsBook value of expired
obligations
Transfer amount fortransaction gains

Number of expired obligations

Waiver Date
Losses on Futures
Put Option (Buy)Transactions, etc.
(Book Value)(Transfer amount forsales/purchase losses)

Quantity of expired obligations x book unit value x set multiple(1) CallBook value of expired obligations

Obligation Expiration Date
Call Option (Sell)
Gains on Futures(Book Value)
Transactions, etc.
(Transfer Amount for
Sales/Purchase gains)

Withdrawal Date
Call Loans, etc.
Customers’ Margin
Customers’ Margin
Deposits
Deposits
Substitute Securities(2) Put
Obligation Expiration Date
Put Option (Sell)
After-tax Gains on(Book Value)
Futures Transactions(Transfer Amount for
Sales/Purchase gains)

Withdrawal Date
Call Loans, etc.
Customers’ Margin
Customers’ Margin
Deposits
Deposits
Substitute Securities

Category
3. Valuation

Calculations, etc.
Buy
contracts
Sell
contract

4. Valuation Conversion

Call
Put
Call
Put

Appraised value - Book Value
Appraised value - Book ValueBook Value - Appraised value
Book Value - Appraised value

In the case of open type investment trusts, revaluation shall be made to the market value on the fundsettlement date.
Valuation gains shall be recorded as futures transaction, etc. gains,
Buy contracts
and valuation losses shall be recorded as futures transaction, etc.
Same between call/put
losses.
Sell contract
Same as above
Same between call/put

Accounts Journal
Every day
Valuation Gain or Losson Futures Transactions,etc.

[Buy Contracts](1) CallFund Settlement Date
Call Option (Buy)
Gains on Futures(Valuation Margin)
Transactions, etc.
(Valuation Margin)
Losses on Futures
Transactions, etc.
Call Option (Buy)(Valuation Loss)(Valuation Loss)(2) Put
Fund Settlement Date
Put Option (Buy)
Gains on Futures(Valuation Margin)
Transactions, etc.
(Valuation Margin)
Losses on Futures
Transactions, etc.
Put Option (Buy)(Valuation Loss)(Valuation Loss)CategoryCalculations, etc.

Accounts Journal[Sell Contracts](1) CallFund Settlement Date
Call Option (Sell)
Gains on Futures(Valuation Margin)
Transactions, etc.
(Valuation Margin)
Losses on Futures
Transactions, etc.
Call Option (Sell)(Valuation Loss)(Valuation Loss)(2) Put
Fund Settlement Date
Put Option (Sell)
Gains on Futures(Valuation Margin)
Transactions, etc.
(Valuation Margin)
Losses on Futures
Transactions, etc.
Put Option (Sell)(Valuation Loss)(Valuation Loss)
5. Change in Number of
Shares(Applies to both call and put)

- Open interest will be adjusted when the number of unit shares (not accompanying a change in face value)of stock options changes.
No entry to the Account Journals(E.g.) Changing trade unit from 1,000 shares to 100 shares- Option contract unit number 1 -> 10

6. Ex-Rights Accounting(Applies to both call and put)

- When a stock split, reverse stock split, or paid capital increase for the stock options occurs, the ex-rights
price will be adjusted on the ex-rights date, etc., based on the stock split/reverse stock split ratio.

No entry to the Account Journals

CategoryCalculations, etc.

Accounts Journal- The number of stock certificates subject to options for one unit of stock options shall be adjusted basedon the relevant stock split ratio, etc., when the exercise price is adjusted.
However, when the adjusted quantity is an integer multiple of the trading unit of the stock subject tooptions, the quantity shall not be adjusted, and the open interest shall be adjusted based on the relevant
stock split ratio, etc.

(Example 1) Stock Split of 1:1.1- The trading unit of subjected stock certificates per option (set multiple).
- Adjustment of exercise price- 1,000 shares -> 1,100 shares- Exercise price after split= Exercise price before split ÷ 1.1(Example 2) Stock Split of 1:2- The trading unit of subjected stock certificates per option (set multiple).
- Number of option contract units- Adjustment of exercise price- No change- Change from 1 -> 2
- Exercise price after split= Exercise price before split ÷ 2

15. Accounting for Corporate Bonds with Detachable Stock Subscription Warrants

Category
1. Corporate Bonds with Stock

Accounting Method

Accounts Journal When cum warrants are acquired, the amount required for acquisition

Subscription Warrants(excluding existing accrued interest) shall be separated into corporate

Processing For Cum Warrants

bond certificates (ex-warrants) and tock subscription warrant securities

Upon Acquisition(warrants) on the contract date for accounting purposes.

- Calculation of Book Value <When Not Listed>(1) Ex-Warrants(i)- Contract Date -Contract unit price = Latest standard indicative price(Corporate Bond Certificates) xxx(Note) The standard indicative price issued by the Japan(Accounts payable) xxx

Securities Dealers Association every Thursday shall apply from

(Stock subscription warrant securities) xxx

Friday to Thursday of the following week.
(ii) Contract price = Purchase face value x contract unit price÷100(iii) Book value = Contract priceCorporate bonds = (1)-(iii)
Stock subscription warrant securities = (2)-(iii)
Accounts payable = Cum warrants contract price(2) Warrants(i)- Delivery Date -Contract unit price =(Accounts payable) xxx (Call loans) xxx(contract unit price of cum warrants) - (contract unit price of ex-(Prepaid Expenses) xxx or money trust

warrant)(ii) Contract price =Number of warrants x (value of corporate bonds per warrant) x
unit contract price ÷ 100(iii) Book value = Contract pricePrepaid expenses= Existing accrued interest when cum warrants are acquired(= contract price of cum warrants - contract price of ex-warrant)
Call Loan = Amount received when cum warrants are acquired`Category<When Listed>

Accounts Journal(1) Ex-Warrants(i)Contract Unit Price(Closing price of cum warrants on the day before the contractdate) - (Closing price of warrants on the day before the contract
date)(Note) If there is no closing price available for either, use
the closing price on the closest date where closing prices
are available for both. (Value used to calculate securities
transaction taxes)(ii) Contract Price...Same as when not listed(iii) Brokerage Commission = (Brokerage commission at the time cum
warrants are acquired)(Rounded down to the nearest yen) x (Contract unit price forwarrants) /(Contract unit price for cum warrants)(iv) Book value = contract price + brokerage commission(2) Warrants(i)Contract unit price = (contract unit price for cum warrants) (contract unit price for ex-warrants)(ii) Contract Price...Same as when not listed(iii) Brokerage Commission = (brokerage commission at the time cum
warrants are acquired) - (brokerage commission at the time exwarrants are acquired)(iv) Book value = contract price + brokerage commission
2. Method For Managing
Balances Ex-warrants shall be individually managed in the same way as
conventional public and corporate bonds. Under certain conditions,stocks of the same issue can be merged. Warrants of a single issue aremanaged together by taking the average book value of each purchase, as
is done for stocks.

- Contract Date, Delivery Date The same account journal as when not listed.

Category

Accounting Method

Accounts Journal

Unit book value of warrants =Book value of warrants ÷ (number of warrants x face value ofcorporate bonds per warrant) x 100

3. Accounting When Warrants
Are Sold When only warrants are sold, a securities transaction tax equivalent tothose levied on stocks shall be collected.
(i)- Contract Date (Accounts receivable) xxx (Stock subscription warrant securities) xxx

Contract Price... Same as 1-(2)-(ii).

(Gain on securities transactions) xxx(ii) Brokerage commissions .... Calculated the same as for stocks(iii) Securities transaction tax = Contract price x 55/10,000(Rounded down to the nearest yen)(iv) Delivery amount = Contract price - brokerage commission securities transaction tax(v)

Accounts receivable= (iv)

Stock subscription warrant securities = (v)Gain (or loss) on securities transactions) = (vi)Book value of portion sold = Number of warrants x (amount ofcorporate bonds per warrant)(amounts under one yen rounded down) x unit book value ÷ 100(vi) Profit or loss on trade = Delivery amount - book value of portionsold- Delivery Date (Call loans) xxx(Accounts receivable) xxx
Or money trust

4. Accounting When Rights Are  The book value of shares acquired through the exercise of rights shall
Exercisedbe the payment amount plus the book value of the warrants. As such,the book value of the warrants will be transferred to the book value of- Date of Exercise (Stock certificates) xxx(Stock subscription warrant securities) xxx

the shares.

(Call loans) xxx(i)

Or money trust

Acquired shares = (Number of warrants x face value of bonds per
warrant) x grant ratio(Amounts less than one share rounded down) x Exercise ratio ÷
Exercise price(ii)

Payment amount = Acquired shares x exercise price(iii) Book value = Payment amount + warrant book value

Stock certificates = (iii)
Stock subscription warrant securities = Book value of warrant
Call Loan = (ii)Category

Accounting Method

Accounts Journal

5. Accounting for Warrants

 When the exercise period expires, warrants will cease to have any rights- Expiration Date of Exercise Period -when the Rights Exercise Period

or asset value. As such, the book value of the warrant shall be zero, and(Loss on securities transactions) xxx

Ends

the total value shall be recorded as a loss.

(Stock subscription warrant securities) xxx

6. Accounting When Cum
Warrants Are Sold The sales proceeds from cum warrants (excluding existing accrued
interest) shall be separated into ex-warrants and warrants on thecontract date, and the trading profit/loss shall be calculated individually.
(1) Ex-Warrants(i)Contract unit price ............... Same as market listing when
acquired- Contract Date (Accounts receivable) xxx(Corporate bonds) xxx(ii) Contract price ................... Same as 1-(1)-(ii)(Stock subscription warrant securities) xxx(iii) Brokerage commission: Same as market listing when acquired(Gain on securities transactions) xxx(iv) Securities transaction tax = Contract price x 4.5/10,000(Rounded down to the nearest yen)(v) Sales proceeds = Contract price - trade commission - securities
transaction tax(vi) Book value of portion sold: Calculated according to the current
method for public and corporate bonds(vii) Trading profit or loss = Sales proceeds - book value of sale

Accounts receivable = (1)-(v) + (2)-(v)Corporate bonds = (1)-(vi)Stock subscription warrant securities = (2)-(vi)Gain (or loss) on securities transaction = (1)-(vii) + (2)-(vii)
However, in situations other than when both ex-warrants and warrants
experience trade gains or losses, journal entries are to be madeseparately.

(2) Warrants(i)Contract unit price = (contract unit price for cum warrants) -- Delivery Date -(contract unit price for ex-warrants)(Call loan) xxx(Accounts receivable)

×××(ii) Contract Price... Same as 1-(2)-(ii).

(Prepaid Expenses)

×××(iii) Brokerage commissions..... Same as pro rata method used during(Accrued Interest Income)×××(Interest Income)×××

acquisition(iv) Securities transaction tax...... Same as 3-(iii)(Rounded down to the nearest yen)(v) Sales price...........Same as 3-(iv)(vi) Book value at the time of sale.........Same as 3-(v)(vii) Trading profit or loss ............. Same as 3-(vi)Category

Accounting Method

7. Daily Valuation and Closing  Listed warrants are valued daily at the market closing price.
Revaluation

When closing the accounts at the end of the term, perform revaluationfor open type trusts.

8. About Cum Warrants Bonds

 The transaction amount is to be separated into ex-warrants and warrants

Denominated in Foreignon the execution date.

Currencies

This shall be done according to Japanese separation methods.
(1) Ex-Warrants
Contract unit price = the OTC indicative bid price quote on thedate of purchase
Corresponds to warrants issued in Japan hereinafter.
(2) Warrants
Contract price = contract unit price of cum warrant) - (contract
unit price of ex-warrant)
Corresponds to warrants issued in Japan hereinafter.

Accounts Journal

16. Accounting for Euroyen Bonds(1) Accounting for Euroyen Bonds (excluding Euroyen Dual Currency Bonds; the same shall apply
hereinafter ) shall be as follows:(a) Euroyen bonds shall be accounted for in the daily trial balance sheet for Japanese currency.
(b) The bond account shall be classified according to domestic bond classification.
(c) Accounting for deposits and withdrawals related to sales and interest payments, etc. shall be donein the deposit account.
(d) In the event that the amount of deposited in (c) is used in Japan or appropriated for payment
within Japan, the destination of the deposit shall be changed (that is, an account transfer).
(2) Accounting for Euroyen Dual Currency Bonds shall be as follows:(a) Euroyen Dual Currency Bonds shall be accounted for in the daily trial balance sheet for foreign
currency displayed in yen.
(b) When bonds are redeemed, payment shall be accounted for in the daily trial balance sheet of theforeign currency received.
(i)Gains or losses on bond redemption shall be calculated in Japanese yen and accounted for in theforeign currency daily trial balance sheet displayed in yen. In this case, the amount of foreign
currency received is converted into Japanese yen at the customer rate on the same day.

(ii) After the accounting in (i) above, yen shall be transferred from the daily trial balance sheet for
the foreign currency displayed in yen to the daily trial balance sheet in Japanese yen. When
doing so, the same procedures for selling foreign currency shall apply.
(iii) Account for the purchase of foreign currency equivalent to the amount of foreign currency
received in redemption of bonds in the daily trial balance sheet in Japanese yen.
(c) Remittances of foreign currency assets displayed in yen shall be accounted for in the same way astransfers accompanying sale of foreign currency.
(3) Journal entry examples for Euroyen Bonds and Euroyen Dual Currency Bonds are as follows:(1) Journal Entry Example for Euroyen Bonds

Category

Account Journal (Assets Denominated in Japanese Currency)

1. Purchase Contract Date

(Bonds)×××(Accounts Payable)

2. Date of Deposit Destination Change(D e p o s i t)

×××

(Call Loans)
Or money trust

3. Purchase Delivery Date

(Accounts Payable)

×××(D e p o s i t)

4. Sales Contract Date

(Prepaid Expenses)

×××

5. Sale Delivery Date

(Accounts Receivable)

×××(D e p o s i t)

×××

(B o n d s)(Gains on Securities Transactions)(Accounts Receivable)

6. Date of Deposit Destination Change(Call Loans)
Or money trust

×××(D e p o s i t)

7. Recording of Accrued Interest Income(Accrued Interest Income)×××(Interest Income)8. Interest Deposit(D e p o s i t)

×××

(Accrued Interest Income)(Prepaid Expenses)(Interest Income)Remarks* Journal entry examples on delivery dates and payment dates, etc., should bemade on the date the respective notification was made.

(2) Journal Entry Example for Euroyen Dual Currency Bonds
Accounts Journal
Category

Remarks
Assets Denominated in Japanese Currency (Yen)

Assets Denominated in Foreign Currency (Yen)

1. Purchase Contract Date

No treatment(Bonds)xxx(Accounts Payable)

×××

2. Date of Yen Remittance(Foreign Investment a/c) xxx(Call loans) xxx
Or money trust(Deposit)

xxx(Foreign Currency Fund)×××

3. Purchase Delivery Date

No treatment(Accounts Payable)(Prepaid Expenses)

4. Recording of Accrued
Interest Income

No treatment(Accrued Interest Income) xxx (Interest Income)

5. Interest Deposit Date

No treatment(Deposit)

6. Sales Contract Date

No treatment(Accounts Receivable)
××× (Bonds) ×××(Losses on Securities Transaction) xxx(Gain on securities transactions) xxx

7. Sale Delivery Date

No treatment(Deposit)

×××

xxx (Deposit) ×××
xxx- Process once delivery is complete

×××(Accrued Interest Income) ×××(Prepaid Expenses)
×××(Interest Income)×××

×××(Accounts Receivable)(Accrued Interest Income)(Prepaid Expenses)(Interest Income)- Bond account is a temporary category(The same shall apply hereinafter)- If the contract is made on the Tokyo
OTC market, journal entries shall bemade at the date of purchasedelivery.

×××
×××
×××
×××

- Process when interest is deposited- Process once delivery is complete

Accounts Journal
Category

Remarks
Assets Denominated in Japanese Currency (Yen)

8. Closing Date
Revaluation(For Open Type Trusts)(Foreign Investment Accounts)
×××(Gain on securities transactions)(Losses on Securities Transaction) xxx(Foreign Investment Accounts)

9. Accounting for Bond
Redemption

10. Yen Transfer Day(Deposit) ×××(Foreign Investment Accounts)(Gains on Securities Transactions)(Foreign Investment Accounts)(Deposit)(Deposit) ×××

xxx

×××

×××
×××

×××

(Foreign Investment Accounts)(Gains on Securities Transactions)

×××

×××
×××

Assets Denominated in Foreign Currency (Yen)(Bonds) ×××(Gains on Securities Transactions)(Gains on Securities Transactions)
×××(Foreign Currency Funds)(Loss on Securities Transaction)
×××(Bonds)(Foreign Currency Funds)×××(Loss on Securities Transaction)- Valuation Gains×××- Valuation Losses
×××

×××
×××

- Yen (Deposit)
×××(Bonds) ×××(Loss on Securities Transaction)
×××(Gain on securities transactions)xxx(Foreign Currency Funds) ×××(Deposit)
×××(Gains on Securities Transactions)
×××- Daily Trial Balance Sheet for Currency Received as
Redemption (Deposit)×××(Foreign Currency Funds)
×××(Foreign Currency Funds) ×××(Deposit)
×××(Gains on Securities Transactions)

×××- Deposit = Amount of foreign
currency received asredemption x averagerate- Gain or Loss on Securities
Transaction= Deposits - Bond Book Value- Same as accounting for sales offoreign currency- Redemption proceeds received inforeign currency

17. Accounting for Domestic Negotiable Certificates of Deposit (CD)Category
1. Accounting for Purchase
Date (Delivery Date)

Account Journal
Deposit ×××

2. Recording of Accrued
Interest Income

Accrued Interest Income

×××

Remarks

Call Loans
×××(or money trusts)

Account Category: Deposits
Amount Recorded: Purchase priceInterest Income

Accounting Period: Calculated daily starting the day following the date ofpurchase until the date of sales (delivery date)Amount recorded: Daily rate of interest including tax

×××<Formula>
Per day: Maturity principal and interest (or sales amount) - purchase price=Accrued interest income
No. of days
(Rounded down to the nearest yen)
Maturity principal and interest = face value x (1 + rate on certificate x
number of days/365)(Rounded down to the nearest yen)
No. of days: From the purchase date to the date of maturity (or date ofsales), excluding the first or last day
3. Accounting for Maturity
Date or Date of Sales(Delivery Date)

Call Loans
×××(or money trusts)
Accounts Receivable

×××

Deposit ×××
Accrued Interest Income
Interest Income ×××

×××

Call Loan: Maturity principal and interest or sales amount. However, if apurchase is made midway through the period and held until thematurity date, withholding tax (20%) will be applied to theinterest for the non-holding period.
Accounts receivable: Withholding taxes at maturity date
Deposits: Purchase priceAccrued interest income: The deducted amount of accrued interest income
recordedInterest income: Difference occurred on the maturity date or date of sales<Formula>Interest income = Maturity principal and interest (or sales amount) (purchase price + accrued interest income per day x no. of
days)
Maturity principal and interest: Amount including tax
No. of days: From the purchase date to the date of maturity or sales,
excluding the first or last day

18. Accounting for Commercial Paper (Including Short-Term Bonds, etc.)
Commercial Paper (including short-term bonds, etc.) shall be calculated at the acquisition value in the Other
Securities account, and discount charges shall be recorded daily as interest income and accrued interest income.

19. Accounting Accompanying Conversion of Shareholder Benefits
The amount of shareholder benefits converted shall be recorded in Other Revenue without delay upon receipt.

20. Accounting of Borrowed Funds
Category
I. Account Processing for Loans

Accounting Method
1. Calculate the amount of the loan (repayment amount). Interest
expenses are not included.

II. Creating New Accounts

1. Interest Expense Accounts(Liability Account).... Accrued Interest Expense(Loss Account).... Interest Expense(1) The interest expense for loans shall be recorded.
(2) Interest expense shall be treated as negative income gain.

III. Calculating Interest Expense

1. To be recorded collectively on the borrowing date.

IV. Loan Amounts Denominated

1. This shall be the Foreign Exchange Accounts Receivable pertaining toin Foreign Currencyinternal transfers of accounts receivable denominated in foreign
currency.

Transaction

Account Journal

Description

1. Date of Loan

Call Loans: ×××

Loans: ×××

Interest Expense: ×××
Call Loans:×××

Loans: ×××

Interest Expense: ×××

Accrued Interest Expenses:

When interest is paidin advance
When interest is paid
afterward

×××
2. Reimbursement
Date

Loans: ×××
Accrued Interest Expenses: ×××

Call Loans: ×××

When interest is paid
afterward

21. Accounting for Loaned Stock Certificates
Category

Accounting Method

I. Accounting for Loaned Stock Certificates

1. No new account titles prescribed in the ministry orders shall be created, and as such there is no
separation of book values.
2. Loaned stock certificates are managed in the “Securities Loaned” and “Loan Transaction Securities”
accounts.
3. Loaned stock certificates are managed separately for each share issue.

II. Collateral(Acceptance of Collateral Money for Lending
Shares)1. Lending shares are accepted as trust property.

III. Creating New Accounts

1. Loaned Stock Certificates
Asset Account.................Securities Loaned
Liability Account............Loan Transaction Securities(1) The market value of the loan on the day before the loan closing date shall be recorded.
(2) To be recorded on the date the loan was made and to be withdrawn on the return date.
(3) Offset through an account transfer on the closing date and transfer back at the beginning of thefollowing fiscal term.
2. Account for Collateral Received
Asset Account.................Securities Received as Customers’ Deposits for Cash Collateral Received
Liability Account............Cash Collateral Received(1) The received amount of cash collateral for loaned shares sold shall be recorded. When securities
are accepted instead, the collateral value shall be recorded.
(2) To be recorded on the date the loan was made and to be withdrawn on the return date.
3. Interest Expense AccountLiability Account............Accrued Interest Expenses
Loss Account..................Interest expense(1) The interest expense on cash collateral for loaned shares sold shall be recorded daily.
(2) To be recorded on the date of the loan and to be withdrawn on the payment date.
(3) Interest expense shall be treated as negative income gain.

IV. Share-Lending Commission

1. Accounts to Be Recorded
Asset Account.................Other Accrued Revenue(Share-Lending Commission)
Profit Account ................Other Revenue(1) To be recorded daily starting on the date of the loan and to be withdrawn on the payment date.
(2) Share-lending commission shall be treated as income gain.

Category

Accounting Method

V. Overdue of Relevant Ex-Rights Stocks

1. Cancellation of Dividends
Cancelled on the last business day of the month.
2. An amount equivalent to dividends shall be recorded.
3. Accounts to Be Recorded
Asset Accounts............... Other Accrued Revenue
Profit Account ................ Other Revenue
To be recorded on the last business day of the month and withdrawn on the date of payment ofdividends.

VI. Overdue Capital Increase/Split/Ex-Rights
of Stock (For Stock Subscription Warrants
and Rights to Receive Stock ThroughStock Splits)

1. Accept certificates of deposits for various rights.
2. Accept new shares in exchange for certificates of deposit on the date new shares are issued andonward.
3. Processing on the date of ex-rights shall not be revoked.
4. Shares less than one unit shall be liquidated in cash. (Sale of Fractional Shares)(The commodity portion and the loan portion are processed separately in processing sales of sharesless than one unit)

VII. Settlement of Accounts

1. Accounting(1) The Securities Loaned Account and the Loan Transaction Securities Account shall be offset
through transfers.
(2) At the start of the period, these will be returned through retransfer.
2. Account Settlement Report(1) The number of loaned shares per issue shall be written in the remarks column of the securities
statement.
(2) For transactions with interested parties, state the total market value at the time of the loan.

Transaction
1. Time of Loan

2. Time of Loan Agreement
Execution
10/23/95 (Mon)

Account Journal(Balance)
Stock Certificates 150,000,000

No account processing

Description
100,000 shares of Issue A, holds book value of 150,000,000@ 1,500 Yen

Lend 30,000 shares of Stock A.
(Loan Date: 10/25/94 (Wed), Repayment date: 10/26 (Thu), Daily borrowing
rate: 60 sen)

Transaction

Account Journal

3. Business Day Before Dateof Loan
10/24 (Tue)Description
Current price of Issue A: 2000 yen

10/25
4. Date of Loan
(1) Securities Loaned
60,000,000

Loan Transaction Securities
60,000,000(2) Call Loans

Cash Collateral Received
60,000,000

60,000,000(3) Securities Received as
Cash Collateral Received
Customers’ Deposits for Cash
Collateral Received
×××
×××(1) Record loan amount for loaned stock certificates‐
The amount to be recorded is the market value on the day before the date ofloan.
(2) Record collateral‐The received amount of cash collateral for loaned shares sold shall berecorded.
(3) When accepting substitute securities‐
The collateral price shall be recorded.

5. Recording of Interest
10/26
Expense on Share-lending
Commission and Cash
(1) Other Accrued Revenue
Other Revenue(1) Record share-lending commission
Collateral for Loaned Shares
18,00018,000 ‐Number of lending shares x lending rate
Sold(2) Interest Expense
Accrued Interest Expenses
30,000 × 0.60 = 18,000
2,794
2,794 (2) Recording of interest expense on cash collateral for loaned shares sold
60,000,000 × 0.0170 ÷ 365 = 2,794

6. Reimbursement Date

10/26
(1)
(1) Loan Transaction
Securities Loaned(2)
Securities
60,000,000
60,000,000 (3)(2) Cash Collateral Received Call Loans
60,000,000
60,000,000(3) Cash Collateral Received Securities Received as
Customers’ Deposits for Cash
Collateral Received
×××
×××

Repayment of loaned share certificates
Repayment of cash collateral
Repayment when accepting substitute securities

Transaction
7. When Participating in the
Share Lending Market theFollowing Day Onward

Account Journal
Repeat 2 to 6 above

i. Loaned Share Issues
ii. Number of Loaned Sharesiii. Market Value of Loaned Share Issues
iv. Share Lending Rate
v. The amount in the account journal varies daily based on interest rate on cash
collateral for loaned shares sold

8. Date of Share-Lending
10/31
Commission Settlement(The clearing day falls on the (1) Call Loans
Other Accrued Revenue
last business day of a month.)
18,00018,000(2) Accrued Interest Expenses Call Loans
2,794
2,794

9. Overdue Lending Contracts[For Overdue Lending of
Settled Share Issues (October
Ex-Dividends)]
Date of loan: 10/31
Repayment date: 11/1
Correction of Dividends

Description

(1)
(2)

Receipt of share-lending commission
Payment of interest on cash collateral for loaned shares sold

10/31
(1) Dividend Income

Accrued Dividends
150,000 Receivable(2) Other Accrued Revenue
150,000
Other Revenue
150,000
150,000(1) Cancellation of accrued dividends receivable(30000 shares, estimated unit price 5 yen)
30,000 × 5 = 150,000(2) An amount equivalent to dividends shall be recorded.
30,000 × 5 = 150,000

Transaction
10. When the Amount
Equivalent to Dividends is
Deposited as Expected
Late January, 1996

Account Journal

Description

1/XX/96(1) Call Loans
150,000(2) Other Accrued Revenue
150,000

11. When Exceeding theLending Period (For Stock
Subscription Warrants andRights to Receive Stock
Through Stock Splits)

No account processing

12. Date of New Share Issue

No accounting (merge old and new)(1) Deposit Amount
30,000 × 5 = 150,000(2) In (9)-(2) of the above: 150,000

Receive deposit receipts for various rights from lending counterpart (JSF) on
10/31.

i. Receive new shares in exchange for certificates of deposit.
ii. Shares less than one unit shall be liquidated in cash.
(The trust bank portion and the loaned share portion are processed separately inprocessing sales of shares less than one unit)

13. Fund Closing Date

14. Beginning of theFollowing Fiscal Term

Loan Transaction Securities
×××

Securities Loaned

Securities Loaned

Loan Transaction Securities
×××

×××

×××

* Transfers between the Securities Loaned Account and the Loan Transaction
Securities Account are conducted and offset at the end of the fiscal term, thenreturned at the start of the following term.

22. Accounting for Loaned Bonds
Category

Accounting Method

I. Accounting for Loaned Bonds

1. No new account titles prescribed in the ministry orders shall be created, and as such there is no
separation of book values.
2. Loan bonds are managed in the “Securities Loaned” and “Loan Transaction Securities” accounts.
3. Loaned bonds are managed separately for each issue.

II. Acceptance of Real Property Collateral

1. Not accepted as trust property, but may be accepted.
2. Substitute securities are not valuated.

III. Creating New Accounts

1. Loaned Bonds Account
Asset Account.................Securities Loaned
Liability Account............Loan Transaction Securities(1) The face value amount of the loan shall be recorded.
(2) To be recorded on the date the loan was made and to be withdrawn on the return date.
(3) Offset through an account transfer on the closing date and transfer back at the beginning of thefollowing fiscal term.
2. Account for Collateral Received
Asset Account.................Securities Received as Customers’ Deposits for Cash Collateral Received
Liability Account............Cash Collateral Received(1) The collateral price shall be recorded.
(2) To be recorded on the date the loan was made and to be withdrawn on the return date.
3. Interest Expense AccountLiability Account............Accrued Interest Expenses
Loss Account..................Interest expense(1) The interest expense for cash collateral shall be recorded daily.
(2) To be recorded on the date of the loan and to be withdrawn on the payment date.
(3) Interest expense shall be treated as negative income gain.

IV. Share-Lending Commission

1. Accounts to Be Recorded
Asset Account.................Other Accrued Revenue
Profit Account ................Other Revenue
2. To be recorded daily starting on the date of the loan and to be withdrawn on the payment date.
3. Bond-lending commission shall be treated as income gain.

Category

Accounting Method

V. Recording of Accrued Interest Income

1. Loaned portions and non-loaned portions shall not be recorded separately.
2. When an amount equivalent to interest after taxes is deposited in a loan that has an interest payment
date during the loan period, the amount equivalent to the tax shall be cancelled from interest income.
1. Accounting

VI. Settlement of Accounts(1)

The Securities Loaned Account and the Loan Transaction Securities Account shall be offset
through transfers.

(2)

At the start of the period, these will be returned through retransfer.

2. Account Settlement Report(1)

The face value of the loan per issue shall be written in the remarks column of the securities
statement.

(2)

For transactions with interested parties, the total lending amount shall be stated.

(Monthly Report to Investment Trust Association)
Transaction
1. Time of Loan

Account Journal(Balance)#156 Face value of Japanese Government Bond Securities: 10,000,000,000, book

National Government Bondvalue of 101.50 held

Securities(Date of interest payment: 3/9/20, Rate of interest: 4.2%)

10,150,000,000

Loan of 3 billion yen at face value.

2. Time of Loan Agreement

No account processing

Execution

3. Date of Loan

Description(Date of loan: 1/18/94, Repayment date: 1/25, Bond-lending commission: 0.
0025)(Transfer)

1/18(1) Securities Loaned (Assets)

Loan Transaction Securities(1) Recording of Loan Bonds‐
The amount to be recorded shall be the face value of the loan.

(Liabilities)

4. Acceptance of Collateral

3,000,000,000

3,000,000,000

×××

Cash Collateral Received(Liabilities)
×××(1) Call Loans(2) Securities Received as
Customers’ Deposits for
Cash Collateral Received(Assets)
×××

Cash Collateral Received(Liabilities)
×××

(1)

Acceptance of cash collateral(2)

Acceptance of substitute securities

Transaction
5. During the Loan Period

Account Journal(Transfer)

Description

1/19 - 1/24

(1) Recording of the amount equivalent to interest on loaned bonds(1) Accrued Interest Income Interest Income‐ Loaned portions and non-loaned portions shall not be recorded separately.
1,150,684
1,150,684 10,000,000,000 × 0.042 ÷ 365 = 1,150,684(2) Other Accrued Revenue
Other Revenue(2) Recording of bond-lending commission
20,547
20,547‐ Face value of loan x bond-lending commission rate x loan period(3) Interest Expense
Accrued Interest Expenses‐ Bond-lending commission shall be recorded daily.
×××
××× 3,000,000,000 × 0.25 ÷ 365 = 20,547(Transfer)

1/25

6. Reimbursement Date
(1) Loan Transaction
Securities Loaned
Securities
3,000,000,000
3,000,000,000(2) Call Loans
Other Accrued Revenue
143,835
123,282
Other Revenue
20,553(3) Recording of interest expenses for cash collateral‐ Interest expense shall be recorded daily.
(1) Repayment of Loaned Bonds(2) Acceptance of bond-lending commission (deposit date)
3,000,000,000 × 0.0025 × 7 ÷ 365= 143,835... Amount received
20,547 x 6 = 123,282... Amount deducted from accounts receivable
143,835 - 123,282 = 20,553 ...Amount recorded on final date

7. Repayment of Collateral(1) Cash Collateral Received Call Loans×××××× Securities Received as(2) Accrued Interest
Customers’ Deposits for CashExpenses
××× Collateral Received
×××
Interest expense
×××
Call Loans
×××

8. Closing Date

Loan Transaction Securities Securities Loaned
3,000,000,000
3,000,000,000

9. Beginning of the Following
Securities Loaned
Loan Transaction Securities
3,000,000,000
3,000,000,000(1)

Repayment of Collateral(2)

Payment of Accrued Interest Expenses (Payment Date)* Transfers between the Securities Loaned Account and the Loan Transaction
Securities Account are conducted and offset at the end of the fiscal term, thenreturned at the start of the following term.

23. Accounting for Borrowed Bonds
Category

Accounting Method

I. Accounting for Borrowed Bonds

1. Borrowed Bond Account
Asset Account.................Borrowing Trade Securities
Liability Account............Securities Borrowed
The loan amount shall be recorded.
2. Corporate bonds shall be managed separately for each issue.

II. Recording of Income Related to Cash
Collateral

1. Accounts to Be Recorded
Asset Account.................Other Accrued Revenue
Profit Account ................Other Revenue
Revenue related to cash collateral shall be recorded.

III. Recording Bond-Borrowing Commission

IV. Recording of Accrued Interest Income on
Borrowed Bonds

Accounts to Be Recorded
Liability Account............Other Accrued Expenses
Loss Account ..................Other Expenses

1. Accrued interest income on borrowed bonds shall not be recorded.
2. When interest is deposited for borrowing that has an interest payment date during the loan period, it
shall be paid to the lender.

Account Journal for Borrowed Bonds
Transaction
1. Date of Conclusion ofLoan Agreement

Account Journal

Description

No account processing

2. Loan Issue Date

Loan date: August 24, Repayment date: August 30
Loan face value: 100 million yen
Loan unit price: 93.75 yen
Loan amount: 93,750,000 yen
Loan rate: 0.18% per annum
Interest rate on security deposit: 0.50% per annum
8/24

Borrowing Trade Securities
Securities Borrowed
93,750,000
93,750,000
Guarantee Deposits
Call Loans
93,750,000
93,750,000

3. Bond-Borrowing
Commission During Loan
Period8/25 - 8/30
Other Expenses

Other Accrued Expenses
493

Interest accrued on cash
collateral

Other Accrued Revenue
Other Revenue
1,284

493

100,000,000 yen x 0.18% x 1 ÷ 365

1,284

93,750,000 yen x 0.50% x 1 ÷ 365

Transaction

Account Journal

4. Reimbursement Date

8/30
Securities Borrowed
Borrowing Trade
93,750,000 Securities
93,750,000
Other Accrued Expenses Call Loans
2,958
2,958
Call Loans
Guarantee Deposits
93,757,704
93,750,000
Other Accrued Revenue
7,704

5. Closing Date

Securities Borrowed
93,750,000

Description

Borrowing Trade
Securities
93,750,000* Transfers between securities borrowed and borrowing trade securities are
performed and offset at the end of the fiscal term, then returned at the start of
the following term.

6. Start of Following Fiscal
Year

Borrowing Trade
Securities
93,750,000

Securities Borrowed
93,750,000

24. Accounting for Swap Transactions
Category

Accounting Method

I. Account Processing for Swap Transactions

1.
2.

No new account titles prescribed in the ministry orders shall be created.
The notional amount of the principal related to the swap contract shall be included in the accounts of“Notional Principal Receivable Assets / Corresponding Account of Notional Principal Receivable Assets” and“Notional Principal Payable Liability / Corresponding Account of Notional Principal Payable Liability.”
However, accounting for credit default swap transactions is as per the journal entry example.
(1) To be recorded on the date of execution of the contract.
(2) Swap transactions shall, in principle, be valued at market value.
(3) For open type investment trusts, revaluation shall be made on the closing date.

II. Creating New Account Titles

1.

Accounts for Swap Transactions
Asset Account …… Notional Principal Receivable Assets ……Principal for receipt of interest
Corresponding Account of Notional Principal Payable Liability …… Corresponding
account of principal for payment of interest
Liability Account ……Corresponding Account of Notional Principal Receivable Assets …… Corresponding
account of principal for receipt of interest
Notional Principal Payable Liability …… Principal for payment of interest
Accrued Interest Expenses ……Amount of account payable for payable swap interest
Loss Account …… Interest Expenses ……Payable swap interest

III. Receivable Swap Interest

IV. Payable Swap Interest[Use of Current Accounts](1) Receivable Swap Interest ……Accrued Interest Income, Interest Income(2) The amount of accrued interest income and expenses on interim settlement ……Account Receivable,
Account Payable(3) Amount of Gain or Loss on Interim Settlement …… Gains on Futures Transactions, etc., Losses on
Futures Transactions, etc.
(4) Gain or Loss on Valuation ……Valuation Gain or Loss on Futures Transactions, etc.
1.
2.

1.
2.

3.

Receivable Swap Interest shall be recorded on a daily basis. Additionally, it will not be set off against the
Payable Swap Interest.
Accounts to be Recorded(Assets) Accrued interest income(Profits)
Interest Income
The Payable Swap Interest shall be recorded on a daily basis. Additionally, it will not be offset against theReceivable Swap Interest.
Accounts to be Recorded(Losses) Interest Expenses(Liabilities)
Accrued Interest Expenses
The Payable Swap Interest shall be treated as negative income gain.

Category

Accounting Method

V. Valuation

1.
2.

VI. Settlement of Accounts

1.

Valuation shall in principle be conducted on a daily basis.
The “Notional Principal Receivable Assets” and the “Notional Principal Payable Liability” shall be valued
respectively, and the total amount of gain or loss on valuation thereof shall be added to the Net Assets as the“Gain or Loss on Valuation of Futures Transactions etc.”
However, if the market value obtained at the time of valuation is based on the difference between thepresent value of the Receivable Swap Interest and the Payable Swap Interest, the amount obtained bydeducting the Recorded Accrued Interest Income on the Receivable Swap Interest and the Recorded Accrued
Interest Expenses on the Payable Swap Interest shall be used as the market value, and either the “The Notional
Principal Receivable Assets” or the “Notional Principal Payable Liability” shall be added to or deducted fromsuch market value.

For open type investment trusts, revaluation shall be made on the closing date.
The accounts for the “Notional Principal Receivable Assets” and “Notional Principal Payable Liability” shallbe revalued respectively, and the amount of gain on valuation shall be transferred to “Profit on Futures
Transactions” and the amount of loss on valuation shall be transferred to “Loss on Futures Transactions.”
2. Account Settlement Report(1) Preparation of Balance Sheets
The Corresponding Account of Notional Principal Receivable Assets is subtracted from the notional
principal received asset account, and the Notional Principal Payable Liability Account is subtracted fromthe Corresponding Account of Notional Principal Payable Liability, and the difference is added to the
Account Receivable if it is a positive number, or to the Accounts Payable if it is a negative number.
(2) Attached Documents
The detailed statement showing the contents of each contract for the balance of swap transactions at theend of the fiscal period is attached.

[Journal Entry Example]
Transaction[Interest Rate Swap]
1. Date of Conclusion ofTransaction

Account Journal

Description(Yen - Yen)
(1) Notional Principal Receivable Corresponding Account of
Assets
Notional Principal Receivable(2) Corresponding Account of
Assets
Notional Principal Payable
Notional Principal Payable
Liability
Liability* Recording of the notional principal amount to be used for the interest rate swap
(1) Notional Principal Amount for Receipt of Interest(2) Notional Principal Amount for Payment of Interest

2. During Interest-recording
Period(1) Accrued Interest Income(2) Interest Expense

Interest Income
Accrued Interest Expenses

(1)
(2)

Recording of Interest Income on swap transactions
Recording of interest expenses on swap transactions

3. Interest Settlement Date
(Interest Payment Date)(1) Call Loans(2) Accrued Interest Expenses

Accrued Interest Income
Call Loans

(1)
(2)

Receipt of interest rate swap fees
Payment of interest rate swap fees

4. Maturity Date

(1) Corresponding Account of
Notional Principal Receivable
Assets(2) Notional Principal Payable
Liability(3) Call Loans

Notional Principal Receivable
AssetsCorresponding Account of
Notional Principal Payable
Liability
Accrued Interest Income
Interest Income
Call Loans(1)

Transfer of notional principal for interest receivable

(2)
(3)

Transfer of notional principal for interest payable
Receipt of interest rate swap fees

(4)

Payment of interest rate swap fees

(5)

When any revaluation, etc. is implemented(4) Accrued Interest Expenses
Interest Expenses(5) Losses on Futures
Transactions, etc.
5. Interim Settlement(1) Contract Date

Gains on Futures Transactions,etc.

Corresponding Account of Notional Notional Principal Receivable
Principal Receivable Assets
AssetsCorresponding Account of
Notional Principal Payable
Notional Principal Payable
Liability
Liability
Accounts Receivable
Or Losses on Futures
Gains on Futures Transactions,
Transactions, etc.
etc.
Accounts PayableTransaction(2) Delivery Date

Account Journal

Call Loans
Or Accounts Payable
Call Loans
Accrued Interest Expenses
Interest Expenses

6. Valuation

Accounts Receivable
Call Loans
Accrued Interest Income
Interest Income
Call Loans

Gain or Loss on Valuation of Futures Transactions (off-bookaccount)

7. Revaluation of Accounts for Notional Principal Receivable
AssetsSettlement
Or Losses on Futures(Open Type)Transactions, etc.
Notional Principal Payable
Liability
Or Losses on Futures
Transactions, etc.

Description

Gains on Futures Transactions,etc.
Notional Principal Receivable
AssetsGains on Futures Transactions,etc.
Notional Principal Payable
Liability‐

The “Corresponding Account of Notional Principal Receivable Assets” and the“Account of the Notional Principal Payable Liability” shall be valued
respectively, and the total amount of the valuation gains or losses thereof shall be
added to the total amount of Net Assets as the “Gain or Loss on Valuation of
Futures Transactions etc.”
However, if the market value obtained at the time of valuation is based on
the difference between the present value of the Receivable Swap Interest and the
Payable Swap Interest, the amount obtained by deducting the Recorded Accrued
Interest Income on the Receivable Swap Interest and the Recorded Accrued
Interest Expenses on the Payable Swap Interest shall be used as the market value,and either the “The Notional Principal Receivable Assets” or the “Notional
Principal Payable Liability” shall be added to or deducted from such market
value.

[Currency Swap] Without Principal Exchange
Swap Interest: Receipt in Yen, Payment in Foreign Currency
Transaction

Japanese Yen Denominated Account Journals

Foreign Currency Denominated Account Journals

1. Date of Conclusion ofTransaction

2. During Interest-recording
Period3. Interest Settlement Date
(Interest Payment Date)

4. Maturity Date

5. Interim Settlement(1) Agreement(2) Delivery Date

Notional Principal Receivable
AssetsCorresponding Account of Notional Corresponding Account of Notional
Principal Receivable Assets
Principal Payable Liability

Notional Principal Payable Liability

Accrued Interest Income

Interest Income

Interest Expenses

Accrued interest expenses

Call Loans

Accrued Interest Income

Accrued interest expenses

Deposit

Notional Principal Payable Liability
Accrued interest expenses
Losses on Futures Transactions, etc.

Corresponding Account of Notional
Principal Payable Liability
DepositGains on Futures Transactions, etc.

Corresponding Account of Notional Notional Principal Receivable
Principal Receivable Assets
AssetsCall Loans
Accrued Interest Income
Losses on Futures Transactions, etc. Gains on Futures Transactions, etc.
Interest Income

Interest expenses

Corresponding Account of Notional Notional Principal Receivable Assets Notional Principal Payable Liability
Principal Receivable Assets
Gains on Futures Transactions, etc. Accounts Receivable
Accounts Receivable
Accounts Payable
Or Losses on Futures Transactions,
Or Losses on Futures Transactions,
etc.
etc.

Corresponding Account of Notional
Principal Payable Liability
Gains on Futures Transactions, etc.
Accounts Payable

Call Loans
Or Accounts Payable
Call Loans

Accounts Receivable
DepositDepositAccounts Receivable
Call Loans
Accrued Interest Income
Interest Income

DepositOr Accounts Payable
Accrued interest expenses
Interest Expenses

Transaction

Japanese Yen Denominated Account Journals

Gain or Loss on Valuation of Futures Transactions (off-book account)

Foreign Currency Denominated Account Journals

Gain or Loss on Valuation of Futures Transactions etc. (off-book account)

6. Valuation
Notional Principal Receivable
Gains on Futures Transactions, etc. Notional Principal Payable Liability
Gains on Futures Transactions, etc.
7. Revaluation on the Settlement Assets
Notional Principal Receivable
Or Losses on Futures Transactions, etc. Notional Principal Payable Liability(Open Type)Or Losses on Futures Transactions, Assets
etc.

[Currency Swap] In case of exchange of principle (exchange at the start and re-exchange at the end)
Swap Interest: Receipt in Yen, Payment in Foreign Currency
Transaction
1. Date of Conclusion ofTransaction

2. Principal Exchange Date
Payment in Yen, Receipt inForeign Currency

Japanese Yen Denominated Account Journals

Notional Principal Receivable
AssetsForeign Currency Denominated Account Journals

Corresponding Account of Notional Corresponding Account of Notional
Principal Receivable Assets
Principal Payable Liability

Notional Principal Payable Liability

Corresponding Account of Notional Call Loans
Principal Receivable Assets

DepositCorresponding Account of Notional
Principal Payable Liability

Call Loans
Call Loans

Notional Principal Payable Liability
Accrued interest expenses

DepositDeposit

3. Maturity Date
Payment in Foreign Currency Receipt in Yen
Notional Principal Receivable
Assets
Accrued Interest Income

4. Recording of Interest, Settlement of Interest, Interim Settlement, Valuation, Maturity Termination Date, etc. shall be handled in the same manner as when the principal is not exchanged.

[Currency swap] In case of exchange of principal (exchange at the start or at the end)
Swap Interest: Receipt in Yen, Payment in Foreign Currency
Transaction

Japanese Yen Denominated Account Journals

1. Date of Conclusion ofTransaction
Notional Principal Receivable
2. Principal Exchange Date
Assets(1) Payment in Yen - Receipt inForeign Currency(2) Payment in Foreign
Currency - Receipt in Yen

Foreign Currency Denominated Account Journals

Corresponding Account of Notional Corresponding Account of Notional
Principal Receivable Assets
Principal Payable Liability

Notional Principal Payable Liability

Foreign Investment Accounts

Call Loans
Deposit∴Equivalent to current remittanceprocessing.
The remittance rate shall be theexchange.

Foreign Currency Funds

Call Loans
Loss accountForeign Investment Accounts
Profit accountDeposit
Loss accountForeign Currency Funds
Profit account∴Equivalent to current collection treatment (Remittance rate shall be the exchange rate.)
3. Recording of Interest, Settlement of Interest, Interim Settlement, Valuation, Maturity Termination Date, etc. shall be handled in the same manner as when the principal is not exchanged.
Swap Interest.... Receipt in the currency in which the base value is displayed (hereinafter referred to as “the relevant currency”) and payment in a currency other than the currency in which the base value isdisplayed (hereinafter referred to as “foreign currency”)
Transaction
1. Date of Conclusion ofTransaction

Relevant Currency-denominated AccountNotional Principal Receivable
Assets

2. Principal Exchange Date
(1) Payment in Relevant
Foreign Investment Accounts
Currency- Receipt in Foreign Currency(2) Payment in foreign currency-Receipt in Relevant Currency

Deposit
Loss accountForeign Currency Denominated Account Journals

Corresponding Account of Notional Corresponding Account of Notional
Principal Receivable Assets
Principal Payable Liability

Notional Principal Payable Liability

DepositDeposit or Call Loan
∴ Equivalent to current remittanceprocessing.
(The remittance rate shall be theexchange rate.)

Foreign Currency Funds

Foreign Investment Accounts
Profit accountDeposit or Call Loan
Loss accountForeign Currency Funds
Profit account∴Equivalent to current collection treatment (Remittance rate shall be the exchange rate.)
3. Recording of Interest, Settlement of Interest, Interim Settlement, Valuation, Maturity Termination Date, etc. shall be handled in the same manner as when the principal is not exchanged.

[Credit Default Swap]
Transaction

Account Journal

1. Date of Conclusionof Contract

2006/7/10

Formula(Buyer)Corresponding Account of Notional
Principal Payable Liability
2,000,000,000

Notional Principal Payable
Liability
2,000,000,000(Seller)
Notional Principal Receivable
Assets2,000,000,000

2. Valuation

3. Commencement
Date of Transaction(Commencement
Date)(Delivery Date)

Corresponding Account of
Notional Principal Receivable
Assets2,000,000,000

Gain or Loss on Valuation of Futures Transactions (off-book account)Remarks* CDS Transaction on July 10 (Commencement Date: July 11)‐ Notional principal: 2,000,000,000 yen (term: 5 years)‐ Premium: 30 bps (4 times of interest payment per year)‐ Interest Calculation Section: ACT/360 (and ACT/365)‐ Collection rate at the time of credit event: 40%(in case of cash settlement)‐ Maturity Date 10 July, 2011
* The principal for receipt of interest shall be the Notional Principal
Receivable Assets and the principal for payment of interest shallbe the Notional Principal Payable Liability* In the event of an up-front payment, the amount received and paid
for price shall be added to or deducted from the book value, andthe amount received and paid for the accrued interest shall berecorded in the account for advances received and prepaid
expenses on the date of execution of each transaction contract.

(1) Valuation Gain or Loss (Seller)= Market value of assets received- Notional principal receivable assets(Book Value Received)(2) Valuation Gain or Loss (Buyer)= Notional Liability for Payment (Book
Value for Payment)- Market Value of Liabilities Payable* Market value may be provided for net worth including interest.
In such a case, only the amount equivalent to the principal shallbe valued at the market value obtained by deducting the amountequivalent to accrued interest from the market value.
(Preparation of Example where Market Value is Provided in
Amount Including Interest)* The amount equivalent to accrued interest shall not be includedin the market value, but only the amount equivalent to theprincipal shall be valued. Separately recorded as Accrued
Interest Income and Accrued Interest Expenses.

2006/7/11(Buyer)
Securities Received as Customers’
Deposits for Cash Collateral
Received
2,000,000,000

Cash Collateral Received
2,000,000,000(Seller)
Customers’ Margin Deposits
2,000,000,000* Acceptance or non-acceptance of collateral from Seller shall be
determined by agreement.

Securities received as customers’
deposits for customers’ margin:
2,000,000,000* Government bonds are deposited as customer margin.
* Necessity, unnecessity and frequency of mark-to-market
revaluation shall be determined by agreement.
* Interest is paid to the trust property from the other party.

4. Recording ofinterest

From 2006/7/11(Buyer)Interest Expenses

Accrued interest expenses
16,666

16,666(Seller)
Accrued Interest Income* The time and period for recording shall be in accordance withthe agreement, etc.

Interest Income
16,666

5. Interest Payment
Date(Interest Receipt andPayment Date)
If the encashment ison the Interest
Payment Date:(1) Unit price for accrued interest andaccrued interest expenses= Premium (%) ÷ 360(Rounded down to seven decimal places)= 0.3 ÷ 360 ≒ 0.0008333(2) Accrued Interest Expenses Per Day= Accrued interest expenses unit price x
Corresponding account of notional principal
payable liability ÷ 100= 0.0008333 x 2,000,000,000 ÷ 100=16,666

16,666(3) Accrued Interest Income Per Day= Accrued interest income unit price x
Corresponding Account of Notional
Principal Receivable Assets ÷ 100

2006/10/11(Buyer)(Recorded) Accrued Interest
Expenses
1,516,606
Interest Expenses
16,726

Money Trust
1,533,332(Seller)Money Trust
1,533,332(Recorded) Accrued Interest
Income1,516,606
Interest Income
16,726(1) Ratio of elapsed days (assuming fixed* In principle, the number of days elapsed shall be calculated on one
interest rate)end from the previous interest payment date to the current= Premium (%) ÷ Number of times ofinterest payment date, and whether the calculation is based on thepayment of interest
actual number of days or on 30 days depends on the “calculation(Rounded down to seven decimal places)
category” of each transaction (specified in the instructions at the= 0.3 x 92 days (elapsed days) ÷ 360 days
time of execution).
≒ 0.0766666* “Number of days per year” for calculating the ratio of elapsed(2) Interest Expenses
days of interest shall be in accordance with “calculation= Ratio of elapsed days x Corresponding
category” (specified in the instructions at the time of execution)account of notional principal payable liability
for 365 days, 360 days, etc.
÷ 100
= 0.0766666 x 2,000,000,000 ÷ 100= 1,533,332(3) Adjusted Amount = 1,533,332 - 16,666 x
91 days = 16,726(4) Interest Income= Ratio of elapsed days x Corresponding
account of notional principal receivable
assets ÷ 100

6. Partial Cancellation(Contract Date)
When the amount ofassets and liabilities
before cancellation is
the same(No settlement ofaccounts during theperiod)2006/11/8(Buyer)(Withdrawal upon cancellation)
Notional Principal Payable
Liability
1,000,000,000

Corresponding Account of
Notional Principal Payable
Liability
1,000,000,000

Accounts Receivable
5,000,000

Gains on Futures Transactions, etc.
5,000,000

Corresponding Account of
Notional Principal Receivable
Assets1,000,000,000(Withdrawal upon cancellation)
Notional Principal Receivable
Assets1,000,000,000(Seller)

Losses on Futures Transactions,etc.
5,000,000

Accounts Payable
5,000,000(1) (Withdrawal upon cancellation) Notional
Principal Payable Liability = Notional
Principal Payable Liability Before
Cancellation x Notional Principal
Equivalent to Payment Liability on
Cancellation (Principal Portion) ÷Corresponding Account of Notional
Principal Payable Liability Before
Cancellation= 2,000,000,000 x 1,000,000,000 ÷
2,000,000,000 = 1,000,000,000(Realized in one formula. Amounts less thanYen to be rounded down (The same shallapply to the notional principle receivable
assets))(2) Gains on Futures Transactions= Net Amount Received + Amount ofInterest Expenses(3) (Withdrawal upon cancellation) The
Notional Principal Receivable Assets =The Notional Principal Receivable Assets
before cancellation x Notional Principal
equivalent to Receivable Assets on
Cancellation (principal portion) ÷ The
Corresponding Account of Notional
Principal Receivable Assets before
cancellation(4) Losses on Futures Transactions, etc.
= Amount of Net Payment + Amount ofInterest Income* Status at the time of cancellation‐ Cancellation of the amount equivalent to 1,000,000,000 yen
out of the notional principal of 2,000,000,000 yen.
‐ The cancellation amount is the amount equivalent to theprincipal and the Seller’s net payment amount is 4,750,000
yen‐ The receivable amount equivalent to accrued interest is
250,000 yen (date of delivery: November 10).
* Accrued interest income and expenses shall be recorded in thebalance of the principal before cancellation until the day before
the delivery date of partial cancellation.

7. Partial Cancellation(Delivery Date)
When the amount ofassets and liabilities
before cancellation is
the same(No settlement ofaccounts during theperiod)2006/11/10(Buyer)Principal Equivalent
Money Trust

Accounts Receivable
5,000,000

5,000,000

The amount equivalent to accrued interest (interest expenses)(Withdrawal) Accrued Interest
Expenses
241,657(Adjusted) Interest expenses
8,343

Money Trust

Cash Collateral Received
1,000,000,000

Securities Received as Customers’
Deposits for Cash Collateral
Received
1,000,000,000

250,000(1) Accrued Interest Expenses Paid
Money Trust = Accrued Interest Expenses
Paid
Withdrawn Accrued Interest Expenses =Recorded Accrued Interest Expenses
Adjusted Interest Expenses = Accrued
Interest Expenses Paid
- Withdrawn Accrued Interest Expenses* The method of receiving and paying the equivalent amount to
accrued interest shall be in principle the same as the current
bond method (partial sale).
* Accrued interest income and expenses on the principal balance
after cancellation is recorded as usual.
* The principal amount and interest rate related accounts journals
are shown separately, but in fact they are settled for funds
collectively.

* Return of government bonds as received cash collateral.

(Seller)
Principal Equivalent
Accounts Payable

Money Trust
5,000,000

5,000,000

The amount equivalent to accrued interest (interest expenses)
Money Trust
250,000

Securities Received as Customers’
Deposits for Customers’ Margin
1,000,000,000(Withdrawn) Accrued interest
income241,657(Adjusted) Interest income
8,343

Customers’ Margin Deposits
1,000,000,000(2) Accrued interest income received
Money Trust = Accrued Interest Income
Received
Withdrawn Accrued Interest Income =Recorded Accrued Interest Income
Adjusted Interest Income = Accrued
Interest Income Received- Withdrawn Accrued Interest Income* Return of government bonds as customers’ margin deposits.

8. Occurrence ofCredit Event(Settlement in Kind)
Settlement with
Deliverable Liabilityof Reference
Company
No Settlement of
Accounts for the
Period(same amount ofprincipal)

2007/1/9(Buyer)Notional Principal Payable
Liability
2,000,000,000

Corresponding Account of
Notional Principal Payable
Liability
2,000,000,000

Money Trust (Accounts
Receivable)
2,000,000,000
Loss on Securities Transactions
1,800,000,000

General Bonds

Cash Collateral Received

Securities Received as Customers’
Deposits for Cash Collateral
Received
2,000,000,000

2,000,000,000

1,900,000,000
Gains on Futures Transactions, etc.
1,900,000,000

Equivalent to Accrued Interest (Interest Expenses) 90 days
(Withdrawal) Accrued Interest
Expenses
1,483,274(Adjusted) Interest expenses
16,726

Money Trust
1,500,000(Seller)
Corresponding Account of
Notional Principal Receivable
Assets2,000,000,000

Notional Principal Receivable
Assets2,000,000,000

General Bonds

Money Trust (Accounts Payable)
2,000,000,000

100,000,000
Losses on Futures Transactions,etc.
1,900,000,000
Securities Received as Customers’
Deposits for Customers’ Margin
2,000,000,000

Customers’ Margin Deposits
2,000,000,000

Accrued Interest (Interest Received) 90 days
Money Trust
1,500,000(Withdrawn) Accrued interest
income1,483,274(Adjusted) Interest income
16,726(1) Loss on securities transactions(1,800,000,000)= book value (1,900,000,000)- Actual market price (100,000,000)(2) Accrued Interest Expenses paid
Money Trust = Accrued Interest Expenses
Paid
Withdrawn Accrued Interest Expenses =Recorded Accrued Interest Expenses
Adjusted Interest Expenses = Accrued
Interest Expenses Paid
- Withdrawn Accrued Interest Expenses(3) Accrued interest income received
Money Trust = Accrued Interest Income
Received
Withdrawn Accrued Interest Income = Recorded
Accrued Interest Income
Adjusted Interest Income = Accrued Interest
Income Received- Withdrawn Accrued Interest Income* At the time of a credit event (CE), a journal entry for thereversal of general bonds will be made.
* When the principal amount of assets and liabilities is not thesame amount as a result of revaluation of settlement ofaccounts, “Profit and Loss on Futures Transactions, etc.” will
be incurred.
* Loss on securities transactions at reasonable prices such as bookvalue and market price.
* If physical delivery is not possible at the time of CE, it isrecorded as receivable. Journal entries for Money
Trust/Account receivable and received cash collateral shall bemade on the date of delivery.

* When the principal amount of assets and liabilities is not thesame amount as a result of revaluation of settlement ofaccounts, “Profit and Loss on Futures Transactions, etc.” will
be incurred.
* Make journal entries for the recording of general bonds at thetime of CE.
* The book value of general bonds is calculated based onreasonable prices such as actual market prices. Start mark-tomarket valuation from the date of recording.
* If physical delivery is not possible at the time of CE, it isrecorded as account payable. Journal entries for Accounts
Payable / Money Trust and Customers’ Margin shall be madeon the date of delivery.

9. Occurrence ofCredit Event(Cash Settlement)Collection rate: 40%
No Settlement of
Accounts for the
Period(same amount ofprincipal)

2007/1/9(Buyer)Notional Principal Payable
Liability
2,000,000,000

Corresponding Account of
Notional Principal Payable
Liability
2,000,000,000

Cash Collateral Received
2,000,000,000

Securities Received as Customers’
Deposits for Cash Collateral
Received
2,000,000,000

Money Trust (accounts receivable)
1,200,000,000

Gains on Futures Transactions, etc.
1,200,000,000(1) Gains on Futures Transactions, etc.
= (1 - collection rate) x Notional Principal
Payable Liability (principal portion)

Equivalent to Accrued Interest (Interest Expenses) 90 days
(Withdrawal) Accrued Interest
Expenses
1,483,274(Adjusted) Interest expenses
16,726

Money Trust
1,500,000(Seller)
Corresponding Account of
Notional Principal Receivable
Assets2,000,000,000

Notional Principal Receivable
Assets2,000,000,000

Securities Received as Customers’
Deposits for Customers’ Margin
2,000,000,000

Customers’ Margin Deposits

Losses on Futures Transactions,etc.
1,200,000,000

Money Trust (Accounts Payable)
1,200,000,000

2,000,000,000

Equivalent amount to accrued interest (Interest income)Money Trust
1,500,000(2) Accrued Interest Expenses paid
Money Trust = Accrued Interest Expenses
Paid
Withdrawn Accrued Interest Expenses =Recorded Accrued Interest Expenses
Adjusted Interest Expenses = Accrued
Interest Expenses Paid
- Withdrawn Accrued Interest Expenses(Withdrawn) Accrued interest
income1,483,274(Adjusted) Interest income
16,726(3) Losses on Futures Transactions, etc.
= (1 - collection rate) x Notional Principal
Receivable Assets (principal portion)(4) Accrued interest income received
Money Trust = Accrued Interest Income
Received
Withdrawn Accrued Interest Income = Recorded
Accrued Interest Income
Adjusted Interest Income = Accrued Interest
Income Received- Withdrawn Accrued Interest Income

10. In the event thatthe principal of thepayable liabilities(receivable assets) at
the maturity date is thesame amount:

2011/7/9(Buyer)Notional Principal Payable
Liability
2,000,000,000

Corresponding Account of
Notional Principal Payable
Liability
2,000,000,000

Cash Collateral Received
2,000,000,000

Securities Received as Customers’
Deposits for Cash Collateral
Received
2,000,000,000

Corresponding Account of
Notional Principal Receivable
Assets2,000,000,000

Notional Principal Receivable
Assets2,000,000,000

Securities Received as Customers’
Deposits for Customers’ Margin
2,000,000,000

Customers’ Margin Deposits* When the principal amount of assets and liabilities is not thesame amount as a result of revaluation of settlement ofaccounts, “Profit and Loss on Futures Transactions, etc.” will
be incurred.
* Interest receipt and payment processing is the same as interest
payment date processing.

(Seller)

11. Revaluation of
Accounts for
Settlement
No partial cancellation
during the period

2,000,000,000

2006/12/10(Buyer)(Transfer) Notional Principal
Payable Liability
10,000,000

Gains on Futures Transactions, etc.
10,000,000(1) (Transfer) Notional Principal Payable
Liability= Market Value (- for Buyer’s receipt, + for
Payment) Amount - Accrued interest= -9,000,000 -1,000,000 =-10,000,000yen* In case of 0 or positive values: Loss on
Futures Transactions (absolute value)* If negative: Gain on Futures Transaction(absolute value)(Seller)
Losses on Futures Transactions,
etc.
10,000,000(Transfer) Notional Principal
Receivable Assets
10,000,000(2) (Transfer) Notional Principal Receivable
Assets= Market Value (+ for Seller’s receipt, - forPayment) Amount - Accrued interest= -9,000,000 -1,000,000 =-10,000,000yen* In case of 0 or positive value, Gain on
Futures Transaction (absolute value)* If negative, Loss on Futures Transactions(absolute value)* Status at the time of settlement of accounts‐ The balance on the previous day was 2,000,000,000 yen forboth receipt and payment, and there was no change in theprincipal amount.
‐ Market value on the day of closing date = Seller’s net
payment amount is 9,000,000 yen‐ Amount equivalent to accrued interest = 1 million yen to bereceived* Notional Principal Payable Liability after Revaluation (Book
Value)= Notional Principal Payable Liability before revaluation+ (Transfer) Notional Principal Payable Liability* Notional principal receivable assets after revaluation (bookvalue)= Notional Principal Receivable Assets before revaluation+ (Transfer) Notional Principal Receivable Assets* The equivalent amount to accrued interest income is recorded by
dividing Recorded Accrued Interest Income by
Accrued Interest Income Per Day = 0.0008333 x 2,000,000,000 ÷100= 16,666 Adjusted Amount = 1,000,000 - 16,666 x 60 days = 40
accrued but the adjusted accrued interest income and expenses arenote recorded.

12. Partial
Cancellation after
Settlement(Revaluation)
When the principal of
assets and liabilities
before cancellation is
not the same amount2007/1/15(Buyer)(Withdrawal upon cancellation)
Notional Principal Payable
Liability
995,000,000
Losses on Futures Transactions,etc.
5,000,000

Corresponding Account of
Notional Principal Payable
Liability
1,000,000,000

Losses on Futures Transactions,
etc.
10,000,000

Accounts Payable
10,000,000(Seller)
Corresponding Account of
Notional Principal Receivable
Assets1,000,000,000

Notional Principal Receivable
Assets995,000,000
Gains on Futures Transactions, etc.
5,000,000

Accounts Receivable

Gains on Futures Transactions, etc.
10,000,000

10,000,000(1) (Withdrawal upon cancellation) Notional
Principal Payable Liability = Notional
Principal Payable Liability Before
Cancellation x Notional Principal
Equivalent to Payment Liability on
Cancellation (Principal Portion) ÷Corresponding Account of Notional
Principal Payable Liability Before
Cancellation = 1,990,000,000 x
1,000,000,000 ÷ 2,000,000,000 =995,000,000(Realized in one formula. Amounts lessthan 1 Yen to be rounded down (same as
for Notional Principal Receivable
Assets))(2) Profit and Loss on Futures Transactions,etc.
= Market Value (+ For Buyer Payment, For Receipt) Amount - Accrued Interest= 10,050,000 - 50,000 = 10,000,000* In case of 0 or positive values: Loss on
Futures Transactions (absolute value)* If negative: Gain on Futures Transaction(absolute value)(3) (Withdrawal upon cancellation) The
Notional Principal Receivable Assets =The Notional Principal Receivable Assets
before cancellation x Notional Principal
equivalent to Receivable Assets on
Cancellation (principal portion) ÷ The
Corresponding Account of Notional
Principal Receivable Assets before
cancellation(4) Profit and Loss on Futures Transactions,etc.
= Market Value (+ for Seller’s receipt, - forPayment) Amount - Accrued interest= 10,050,000 - 50,000 = 10,000,000* In case of 0 or positive value, Gain on
Futures Transaction (absolute value)* If negative, Loss on Futures Transactions(absolute value)* Status at the time of cancellation (the first partial cancellation
after the revaluation of settlement of accounts in 11 above)‐ Cancellation of 1,000,000,000 yen out of the notional
principal of 2,000,000,000 yen‐ The cancellation amount is the amount equivalent to theprincipal and the Seller’s receiving net amount is 10,050,000
yen‐ The amount equivalent to accrued interest income is 50,000
yen (Delivery date: January 17).

* Accrued interest income and expenses shall be recorded in thebalance of the principal before cancellation until the day before
the delivery date of partial cancellation.
* Handling of partial cancellation delivery date is the same as 7.
(The same shall apply to the handling of the customers’ margin
or the cash collateral received.)* Treatment of accrued interest is the same as 6.

25. Accounting for Forward Rate Agreement (FRA)
Category
I. Account titles for Forward Rate Agreements

Accounting Method
1.
2.

II. Accounts

III. Forward Rate Purchase
Forward Rate Sale
IV. Valuation
V. Settlement of Accounts

1.

1.
2.
1.
2.
1.

No new account titles prescribed in the ministry orders shall be created.
The Notional Principal Amount relating to the forward rate contract shall be recorded in the accounts of “Notional Principal Receivable
Assets / Corresponding Account of Notional Principal Receivable Assets” and “Notional Principal Payable Liability/Corresponding
Account of Notional Principal Payable Liability.”(1) To be recorded on the date of conclusion of the contract.
(2) Forward Rate Agreements shall, in principle, be evaluated at the market value.
(3) For open type investment trusts, revaluation shall be made at the closing date.
Account Titles for Forward Rate Agreement
Asset Account....
Notional Principal Receivable Assets.... Principal on forward rate purchase
Corresponding Account of Notional Principal Payable Liability.... Corresponding Account of principal on forward rate
sale
Liability Account....
Corresponding Account of Notional Principal Receivable Assets... Corresponding Account of principal on forward rate
purchase
Notional Principal Payable Liability.... Corresponding Account of commensurate principal on forward rate purchase
Loss Account......Interest Expenses.................. Interest paid on forward rate transactions
Gain Account......Interest Income.................. Interest received on forward interest transactions(1) Amount for account receivable and payable in settlement... Accrued Revenue, Accounts Payable(2) Valuation Gain and Loss.... Gain or Loss on Valuation of Futures Transactions etc.
Interest on forward rate purchase shall not be recorded as interest income on a daily basis.
Interest on forward rate sale shall not be recorded as interest income on a daily basis.
Valuation shall in principle be conducted on a daily basis.
The “Notional Principal Receivable Assets” and the “Notional Principal Payable Liability” shall be valued respectively, and the gain orloss on valuation thereof shall be added to the total amount of net assets as the “Gain or Loss on Valuation of Futures Transactions etc.”
In the case of an open type investment trust, revaluation shall be made on the closing date.
The accounts for “Notional Principal Receivable Assets” and “Notional Principal Payable Liability” shall be revalued respectively, and thegain
on valuation
shall be transferred
to “Gain on Transaction of Futures Transactions” and the loss on valuation shall be transferred to(1)
Preparationof Balance
SheetsThe Corresponding Account of Notional Principal Receivable Assets is subtracted from the notional principal receivable asset
account, and the Notional Principal Payable Liability Account is subtracted from the Corresponding Account of Notional Principal
Payable Liability, and the difference is added to the accounts receivable if it is a positive number, or to the accounts payable if it is anegative number.
(2) Attached Documents
A detailed statement showing the contents of each contract for the balance of forward rate agreements at the end of the fiscal period is
attached.

[Journal Entry Example]
Transaction

Account Journal[Forward Rate Agreements]
1. Date of Conclusion of Transaction (1) Notional Principal Receivable[Purchase]
Assets[Sale]

2. Interest Determination Date
[Purchase]

Corresponding Account of
Notional Principal Receivable
Assets(1) Corresponding Account of
Notional Principal Payable
Notional Principal Payable Liability Liability(1) Corresponding Account of
Notional Principal Receivable
Notional Principal Receivable
AssetsAssetsInterest Income(2) Account Receivable
Accounts Payable
Interest Expenses
Gains on Futures Transactions, etc.
(3) Losses on Futures Transactions,etc.

Description(1) Nominal principal amount to be used for calculation of settlement amount(1) Transfer of Nominal Principal Amount(2) When the settlement amount is receiving:
When the settlement amount is payment:(3) When any revaluation, etc. is implemented[Sale]

3. Transaction Termination Date
(Settlement Date)[Purchase]/[Sale]

4. Valuation

5. Revaluation of Accounts for
Settlement(Open Type)[Purchase][Sale](1) Notional Principal Payable
Corresponding Account of Notional
Liability
Principal Payable Liability(2) Account Receivable
Interest Income
Interest Expenses
Accounts Payable(3) Losses on Futures Transactions, Gains on Futures Transactions, etc.
etc.
(1) Call Loans
Accounts Receivable
Accounts Payable
Call Loans
Gain or Loss on Valuation of Futures Transactions (off-bookaccount)(1) Notional Principal Receivable Gains on Futures Transactions, etc.
Assets
Notional Principal Receivable(2) Losses on Futures Transactions, Assets
etc.
(1) Notional Principal Payable
Gains on Futures Transactions, etc.
Liability
Notional Principal Payable Liability(2) Losses on Futures Transactions,
etc.

(1) Receiving of settlement amountPayment of Settlement Amount- The position of Notional Principal Receivable Assets or Notional Principal Payable
Liability shall be valued, and the total amount of valuation gain or loss shall be
added to the total amount of net assets as Valuation Gain or Loss on Futures
Transactions.

(1) In case of valuation gain:(2) In case of valuation loss:

26. Accounting for Forward Exchange Agreement (FXA)
Category

Accounting Method

I. Account Titles for Forward Exchange Agreement 1.
2.
II. Accounts

III. Forward Exchange Purchase
Forward Exchange Sale
IV. Valuation
V. Settlement of Accounts

1.

1.
2.
1.
2.
1.

2.

No new account titles prescribed in the ministry orders shall be created.
The notional amount of the principal relating to the forward exchange agreement shall be recorded in the accounts of “Notional Principal
Receivable Assets and Corresponding Account of Notional Principal Receivable Assets” and “Notional Principal Payable Liability andCorresponding Account of Notional Principal Payable Liability.”(1) To be recorded on the date of conclusion of the contract.
(2) Forward exchange agreements shall, in principle, be market value.
(3) For open type investment trusts, revaluation shall be made at the closing date.
Accounts for Forward Exchange Agreements
Asset Account....
Notional Principal Receivable Assets.... Principal on forward exchange purchase
Corresponding Account of Notional Principal Payable Liability... Corresponding Account of Principal on forward
exchange sale
Liability Account...
Corresponding Account of Notional Principal Receivable Assets.... Corresponding Account of Principal on forward
exchange purchase
Notional Principal Payable Liability... Principal on forward exchange sale
Loss Account......Interest Expenses................ The amount of interest paid on forward exchange transactions
Profit Account......Interest Income.................. The amount of interest received on forward exchange transactions(1) Amount of receivable and payable in settlement... Accounts Receivable, Accounts Payable(2) Valuation Gain and Loss.... Gain or Loss on Valuation of Futures Transactions etc.
Interest on forward exchange purchase shall not be recorded as interest income on a daily basis.
Interest on forward exchange sale shall not be recorded as interest income on a daily basis.
Valuation shall in principle be conducted on a daily basis.
The “Notional Principal Receivable Assets” and the “Notional Principal Payable Liability” shall be valued respectively, and the gain orloss on valuation thereof shall be added to the total amount of net assets as the “Gain or Loss on Valuation of Futures Transactions etc.”
In the case of an open type investment trust, revaluation shall be made on the closing date.
The accounts for “Notional Principal Receivable Assets” and “Notional Principal Payable Liability” shall be revalued respectively, and thegain on valuation shall be transferred to “Gain on Transaction of Futures Transactions” and the loss on valuation shall be transferred to“Loss on Transaction of Futures Transactions.”
Account Settlement Report(1) Preparation of Balance Sheets
The Corresponding Account of Notional Principal Receivable Assets is subtracted from the notional principal receivable asset
account, and the Notional Principal Payable Liability Account is subtracted from the Corresponding Account of Notional Principal
Payable Liability, and the difference is added to the accounts receivable if it is a positive number, or to the accounts payable if it is anegative number.
(2) Attached Documents
The detailed statement showing the contents of each contract for the balance of forward exchange transactions at the end of thecalculation period shall be attached.

[Journal Entry Example]
Transaction

Account Journal[Forward exchange agreement]
1. Date of Conclusion of Transaction (1) Notional Principal Receivable[Purchase]
Assets[Sale]
2. Interest Determination Date
[Purchase]

Description

Corresponding Account of Notional
Principal Receivable Assets(1) Nominal principal amount to be used for calculation of settlement amount(1) Corresponding Account of
Notional Principal Payable Liability
Notional Principal Payable Liability(1) Corresponding Account of
Notional Principal Receivable
Notional Principal Receivable
AssetsAssetsInterest Income(2) Account Receivable
Accounts Payable
Interest Expenses
Gains on Futures Transactions, etc.
(3) Losses on Futures Transactions,etc.

(1) Transfer of Nominal Principal Amount(2) When the settlement amount is receiving:
When the settlement amount is payment:(3) When any revaluation, etc. is implemented[Sale]

3. Transaction Termination Date
(Settlement Date)[Purchase]/[Sale](1) Notional Principal Payable
Corresponding Account of Notional
Liability
Principal Payable Liability(2) Account Receivable
Interest Income
Interest Expenses
Accounts Payable(3) Losses on Futures Transactions, Gains on Futures Transactions, etc.
etc.
(1) Call Loans
Accounts Payable

Accounts Receivable
Call Loans

4. Valuation
Gain or Loss on Valuation of Futures Transactions (off-book account)
5. Revaluation of Accounts for
Settlement(Open Type)[Purchase][Sale](1) Notional Principal Receivable Gains on Futures Transactions, etc.
Assets
Notional Principal Receivable(2) Losses on Futures Transactions, Assets
etc.
(1) Notional Principal Payable
Gains on Futures Transactions, etc.
Liability
Notional Principal Payable Liability(2) Losses on Futures Transactions,
etc.

(1) Receiving of settlement amountPayment of Settlement Amount- Value the position of the Notional Principal Receivable Assets or the Notional
Principal Payable Liability and add the total amount of the valuation gains orlosses to the total amount of net assets as the Valuation Gain or Loss on Exchange.
(1) In case of valuation gain:(2) In case of valuation loss:

27. Accounting for a Non-Deliverable Forward (NDF)
Summary- Settlement and transaction on balance shall be made through over-the-counter trading.
Account titles for a Non-Deliverable Forward
The notional amount of the principal for a non-deliverable forward shall be included in the accounts of “Notional Principal
Receivable Assets / Corresponding Account of Notional Principal Receivable Assets” and “Notional Principal Payable Liability/ Corresponding Account of Notional Principal Payable Liability.”(1) Recorded on the date of conclusion of the contract(2) In principle, valued at market value(3) For open type investment trusts, revaluation shall be made at the closing date.
Others- Recorded in the currency of settlement.
- Contract for difference- Valuation of individual balance at market value[Journal Entry Example]
Transaction

Account Journal

1. Date of Conclusion of Transaction[Purchase](1) Notional Principal Receivable
Assets[Sale](1) Corresponding Account of
Notional Principal Payable Liability
2. Valuation

3. Closing Date
[Purchase][Sale]

Corresponding Account of
Notional Principal Receivable
AssetsDescription(1) Nominal principal amount to be used for calculation of settlement amount

Notional Principal Payable
Liability(2) Gain or Loss on Valuation of Futures Transactions etc. (off-bookaccount)- Value the position of “Notional Principal Receivable Assets” or “Notional
Principal Payable Liability,” and add the total amount of the valuation gain orloss to the total amount of net assets as Gain or Loss on Valuation of Futures
Transactions etc.
(3) Corresponding Account of
Notional Principal Receivable(3) Transfer of Nominal Principal Amount
Notional Principal Receivable Assets Assets(4) When the settlement amount is profit:(4) Account Receivable
Gains on Futures Transactions, etc.
When the settlement amount is loss:(4) Losses on Futures Transactions, Accounts Payableetc.
(5) When any revaluation, etc. is implemented
Gains on Futures Transactions, etc.
(5) Losses on Futures Transactions,etc.
(3) Notional Principal Payable
Liability(4) Account Receivable(4) Losses on Futures Transactions,etc.

Corresponding Account of
Notional Principal Payable
Liability
Gains on Futures Transactions, etc.
Accounts Payable(5) Losses on Futures Transactions,etc.

Gains on Futures Transactions, etc.

4. Closing Date
[Purchase]/[Sale](6) Call Loan (if settlement is in yen) or
Deposit (if settlement is in foreign
currency)(6) Accounts Payable
Revaluation of Accounts for
Settlement (Open Type)[Purchase][Sale](7) Notional Principal Receivable
Assets(8) Losses on Futures Transactions,etc.
(7) Notional Principal Payable
Liability(8) Losses on Futures Transactions,etc.

Accounts Receivable
Call Loan (if settlement in yen) or Deposit(if settlement in foreign currency)(7) In case of valuation gain:
Gains on Futures Transactions, etc. (8) In case of valuation loss:
Notional Principal Receivable
AssetsGains on Futures Transactions, etc.
Notional Principal Payable
Liability28. Accounting for Mortgage Securities

Category

Account Journal

Description

1. Purchase Contract Date

* Mortgage Securities...... New Accounts
Mortgage Securities

×××

Accounts Payable

×××

Accounts Payable

×××

Call Loans

×××

2. Purchase Delivery Date

- Interest income for mortgage securities transactions shall be recorded on a perdiem basis.
- Compensation for early cancellation will be charged at around 1.2%.
*Other expenses...... Early cancellation compensation fee (commission)

3. Recording of Accrued Interest
IncomeAccrued Interest Income

×××

Interest Income

×××

Call Loans×××

Accrued Interest Income
Interest Income

×××
×××

Accounts Receivable
Other Expenses

×××
×××

Mortgage Securities

×××
×××

Call Loans

×××

Mortgage Securities
Accrued Interest Income
Interest Income

×××
×××
×××

Call Loans

×××

Mortgage Securities
Accrued Interest Income
Interest Income

×××
×××
×××

4. Interest Deposit Date

5. Early Cancellation Date

6. Delivery Date for Early
Cancellation

7. Maturity Date

29. Accounting for Investment Trust Beneficiary Certificates and Investment Securities
Category

1. Purchase Contract Date

Account Journal

Investment Trust Beneficiary
Certificates

×××

2. Purchase Delivery Date

Accounts Payable

×××

3. Ex-dividend Date

Description

Accounts Payable
×××

Call Loans×××

Accrued Dividends Receivable ×××

Dividend income

×××

4. Dividend Deposit Date

Call Loans

Accrued Dividends Receivable ×××

5. Sale Contract Date

Accounts Receivable
×××
Loss on Securities Transactions ×××

Investment Trust Beneficiary
Certificates

×××

6. Sale Delivery Date

Call Loans

Accounts Receivable

×××

7. Reimbursement Date

Accounts Receivable
×××
Loss on Securities Transactions
×××

Investment Trust Beneficiary
Certificates
Gain on Securities Transactions

×××
×××

Call Loans

Accounts Receivable

×××

×××

×××

8. Reimbursement Delivery Date

9. Valuation

10. Revaluation of Accounts for
Settlement(Open Type)

Loss or Gain on Valuation of
Securities
×××
Investment trust beneficiary
certificates (valuation gain)
Loss on securities transactions(valuation loss)

×××

Gains on securities
transactions (valuation gain)
Investment trust beneficiary
certificates (valuation loss)- In the case of investment securities, investment securities shall be deemed to
be investment trust beneficiary certificates.

30. Accounting, etc., for Foreign Income Tax Deductions for Investment Trusts(1) At the time of settlement of accounts at the end of the period, investment trusts that have paid foreign
income taxes abroad during the calculation period shall calculate information on any deduction forforeign income taxes necessary for the withholding agent, etc. to properly calculate taxes in thefollowing manner, whether through private placement, public offering, stock investment trusts, bondinvestment trusts (excluding baby bond investment trusts in the form of family funds, MMFs and funds
for a comprehensive securities account):(a) Accounting on the closing date(i)

Ratio of assets denominated in foreign currencies
The amount obtained by dividing the amount of net assets denominated in foreign currencies atthe end of the period by the total amount of net assets of trust property at the end of the period.
The upper limit shall be 1 and the integer value shall have a maximum of 1 digit and after thedecimal point shall be up to 4 digits and the remainder shall be rounded down. The lower limit
shall be 0.

(ii) Foreign Income Tax per 1 yen of revenue
The amount obtained by dividing the amount of dividends from profit (excluding the dividends
from the account for revenue adjustment, hereinafter the same shall apply) by the amountavailable for dividends from profit at the end of calculating period (excluding the dividends
from the account for revenue adjustment, hereinafter the same shall apply), multiplying theamount of foreign income tax during the period, and dividing this amount by the dividends fromprofit. The upper limit shall be 1 and the integer value shall have a maximum of 1 digit and after
the decimal point shall be up to 10 digits and the remainder shall be rounded down. The lower
limit shall be 0.
However, when the ratio of assets denominated in foreign currencies is 0, the amount of foreign
income tax per 1 yen of revenue shall also be 0.
(iii) Domestic Income Tax per 1 yen of revenue
The amount obtained by dividing the amount of domestic income taxes at the end of the periodby the amount available for dividends from profit at the end of the period. The integer values
shall be up to 1 digit, 10 digits to the right of the decimal point, and remainder shall be rounded
down.
(b) Special Treatment for Baby Fund of Family Fund(i)

Amount of net assets denominated in foreign currencies at the end of the period
The amount of net assets of foreign currency-denominated assets in a baby fund of a family fundat the end of the period shall be the sum of the amount of net assets of foreign
currency-denominated assets at the end of the period directly invested by such baby fund and theamount of net assets of foreign currency-denominated assets at the end of the period (the amountobtained by multiplying the amount of net assets of foreign currency-denominated assets heldby the mother fund at the end of the period, in which such baby fund invest, by the number
obtained by dividing the number of units of beneficial interest of the mother fund held by suchbaby fund at the end of the period by the total number of units of beneficial interest of themother fund at the end of the period) indirectly invested by such baby fund through each motherfund.
(ii) Amount of foreign income taxes during the period
The amount of foreign income taxes during the period on a baby fund of a family fund shall beobtained by adding the total amount of foreign income taxes calculated at the end of each monthfor each mother fund in which such baby fund invests, using the method in accordance with the
Attached Form 1 (2), Statement of Dividend Income for Mother Fund, prescribed in the Article
11 of the By-law of the rules on Valuation and Accounting of Investment Trust Properties, to theamount of foreign income taxes directly paid by such child fund during the period.

(2) With respect to the information for deduction of foreign income tax calculated under (1) above, thecommunication shall be as follows:(a) Unlisted Investment Trust
The data calculated in accordance with (1) shall be communicated to the sales company together
with other closing data on the closing date.
(b) Listed Investment Trust
The data calculated in accordance with (1) shall be converted into a csv file and communicated tothe sales company along with other closing data on the closing date. In this case, the starting date
for payment of dividends shall be the day after the expiration of 15 business days from the closing
date.

(3) The csv file pertaining to the listed investment trust calculated under (2) (b) above and transmitted tothe sales company shall be posted on its website at the closing date.

31. Accounting for Pre-tender Transactions (Pre-issuance Date Transactions) of Government Bonds[Transaction Terms]
Issue

Tender Announcement
Issue Date

200X, March 28
April 20

Date of Tender
Redemption Period

Japanese Government Bonds with Interest Rateof 10 Years Issued in April 200X
April 5
201X, April 20

Date of Original Purchase Contract
Face Value of Transaction
Yield on purchases of Pre-tender Transactions

200X, March 28
10,000,000 yen
0.89% (Same Purchase Price @ 100.095)

Delivery Date (= Issue Date)
Provisional Coupon
Pre-Tender Transaction Closing
Quotation

200X, April 20
0.9% (with previous bond coupon)
0.85% (Unit Price @ 100.478)

Pre-Tender Transaction Closing Quotation on the End of Fiscal Period(March 31)

0.85% (Unit Price @ 100.478)

Date of Sale Agreement
Face Value of Transaction
Yield on Sales of Pre-Tender Transactions

200X, March 28
10,000,000 yen
0.89% (Same Sales Price @ 100.67)

Delivery Date (= Issue Date)
Provisional Coupon

200X, April 20
0.9% (with previous bond coupon)

Conditions for Determination of Date of Tender

Issue: YYY Issue Bond Coupon: 0.8%

* The contract method for pre-tender transaction is not based on the unit price but the semi-annual compounded yield and the spread α against the base interest rate.
For this purpose, the purchase and sale unit price and the valuation unit price on the materials are calculated in accordance with the formula shown in the (Appendix).

(1) Handling of Purchase Agreement
Transaction
1. Purchase Contract Date

Account Journal
March 28
National Government Bond
Accounts Payable
Certificates
10,009,500
10,009,500

2. Valuation

4. Tender Date

March 31
National Government Bond
Certificates
38,300April 5
Accounts Payable
10,009,500

Gain on Securities
Transactions
38,300National Government Bond
Certificates
10,047,800

Loss on Securities
Transactions
38,300National Government Bond
Certificates
9,914,000
5. Delivery Date

April 20
Accounts Payable

Accounts Payable
9,914,000

Call Loans
9,914,000

1. Purchase unit price is calculated using provisional coupon of 0.9% and purchase yieldof 0.89%.
Shall be dealt with in the same manner as ordinary interest-bearing debt acquisitions.
(Appendix) Calculation formula -> = 100.095(Contract Price) 10,000,000 x 100.095/100 = 10,009,500
2. Valuation shall in principle be made on a daily basis.
The valuation unit price was calculated using provisional coupons of 0.9% and theclosing quotation of 0.85% on the same day.
(Appendix) Calculation formula -> = 100.478(Valuation loss or gain) 10,000,000 x 100.478/100 - 10,009,500 = 38,300

Loss or Gain on Valuation of
Securities
38,3003. Revaluation of Accounts for
Settlement

Description

9,914,000

3. Valuation unit price is calculated using provisional coupon of 0.9% and the closing
quotation of 0.85%.
(Appendix) Calculation formula -> = 100.478(Valuation loss or gain) 10,000,000 x 100.478/100 - 10,009,500 = 38,300
4. On the date of tender, the pre-tender transaction position on the initial purchase
contract date (March 28) is offset by the initial purchase price.
The purchase unit price is calculated from the coupon of 0.8% announced on the dateof the tender and the initial yield on purchase of 0.89% and recorded again.
(Appendix) Calculation formula -> = 99.14(Contract Price) 10,000,000 x 99.14/100 = 9,914,000

(2) Handling of Sales Agreement
Transaction
1. Purchase Contract Date

Account Journal
March 28
National Government Bond
Accounts Payable
Certificates
10,009,500
10,009,500

2. Valuation

3. Revaluation of Accounts for
Settlement

4. Sale Agreement Date

April 2
Accounts Receivable
10,067,000

5. Tender Date

April 5
Accounts Payable

6. Delivery Date

Gain on Securities
Transactions
38,300National Government Bond
Certificates
10,047,800
Gain on Securities
Transactions
19,200Accounts Payable

10,009,500
Accounts Receivable
9,971,000
Loss on Securities
Transactions
500
April 20
Accounts Payable

9,914,000
Accounts Receivable
10,067,000

Call Loans, etc.
9,914,000

Call Loans, etc.
9,971,000

1. Purchase unit price is calculated using provisional coupon of 0.9% and purchase yieldof 0.89%.
Shall be dealt with in the same manner as ordinary interest-bearing debt acquisitions.
(Appendix) Calculation formula -> = 100.095(Contract price)10,000,000 × 100.095/100 = 10,009,500
2. Valuation shall in principle be made on a daily basis.
The valuation unit price was calculated using provisional coupons of 0.9% and theclosing quotation of 0.85% on the same day.
(Appendix) Calculation formula -> = 100.478(Valuation Gain or Loss)10,000,000 × 100.478/100 - 10,009,500 = 38,300

Loss or Gain on Valuation of
Securities
38,300March 31
National Government Bond
Certificates
38,300Description

9,914,000
Accounts Receivable
9,971,000

3. Valuation unit price is calculated using provisional coupon of 0.9% and the closing
quotation of 0.85%.
(Appendix) Calculation formula -> = 100.478(Valuation Gain or Loss)10,000,000 × 100.478/100 - 10,009,500 = 38,300
4. Unit selling price is calculated using provisional coupon of 0.9% and yield on sales of
0.83%.
Shall be treated in the same manner as an ordinary sale of interest-bearing
government securities.
(Appendix) Calculation formula -> = 100.670(Contract price)10,000,000 × 100.670/100 = 10,67,000(Trading profit or loss) 10,067,000 - 10,047,800 (after revaluation) = 19,200
5. Based on the coupon of 0.8% announced on the date of the tender, the unit
purchasing price shall be calculated from the initial yield on purchases of 0.89%, andthe unit selling price shall be calculated from the yield on sales of 0.83% for revision.
[Purchase](Appendix) Calculation formula -> = 99.14(Contract price)10,000,000 × 99.14/100 = 9,914,000[Sale](Appendix) Calculation formula -> = 99.71(Contract price)10,000,000 × 99.71/100 = 9,971,000
Based on such revised unit prices (Purchase Unit Price 99.14, Sale Unit Price 99.71),
the trading profit or loss recorded on the sale contract date shall be revised.

(3) Handling When the Suspension of Tendering and Issuance is Announced by the Date of Tender
Transaction
1. Purchase Contract Date

Account Journal
March 28
National Government Bond
Accounts Payable
Certificates
10,009,500
10,009,500

2. Valuation

3. Revaluation of Accounts for
Settlement

4. Announcement Date ofSuspension of Issuance

1. Purchase unit price is calculated using provisional coupon of 0.9% and purchase yieldof 0.89%.
Shall be dealt with in the same manner as ordinary interest-bearing debt acquisitions.
(Appendix) Calculation formula -> = 100.095(Contract price)10,000,000 × 100.095/100 = 10,009,500
2. Valuation shall in principle be made on a daily basis.
The valuation unit price was calculated using provisional coupons of 0.9% and theclosing quotation of 0.85% on the same day.
(Appendix) Calculation formula -> = 100.478(Valuation Gain or Loss)10,000,000 × 100.478/100 - 10,009,500 = 38,300

Loss or Gain on Valuation of
Securities
38,300March 31
National Government Bond
Certificates
38,300Description

Gain on Securities
Transactions
38,3003. Valuation unit price is calculated using provisional coupon of 0.9% and the closing
quotation of 0.85%.
(Appendix) Calculation formula -> = 100.478(Valuation Gain or Loss)10,000,000 × 100.478/100 - 10,009,500 = 38,300
4. Cancellation of pre-tender transaction position and revaluation.

April 2
Loss on Securities
Transactions
38,300Accounts Payable
10,009,500

National Government Bond
Certificates
38,300National Government Bond
Certificates
10,009,500

(Appendix)(1) Interest-Bearing Government Bonds

P: Price

C: Base rate of the previous bond (% per annum)

A: Unissued period (days)

r: compounded yield (%)

N: Number of times of payment of interest

F: 182.5 - A(Published by JSDA)(1) In the course of calculation, rounded off to the nearest 10 decimal places.
(2) P is rounded down to the nearest three decimal places.

(2) Floating Rate Government Bonds

P: Price

K: 10-year government bond base rate (%)αf: α (%) decided on tender

αt: α (%) agreed in WI transactions

A: Unissued period

N: Number of times of payment of interest

F: 182.5 - A(1) In the course of calculation, rounded off to the nearest ten decimal places.
(2) P shall be rounded down to the nearest three decimal places.
However, when αf = αt, P = 100.

32. Accounting for Inflation-Indexed Bonds
Category
1. Interlock Factor

Accounting Method“Applicable index as of month ‘m’ and day ‘n’ ÷ the applicable index as of the date of issue” (rounded off to the three decimal places)* Applicable index is the national consumer price index (general index excluding fresh food; Hereinafter referred to as “CPI”) shall be used.
(1) Applicable index for month ‘m’ day ‘n’ (if n = 10) = (m - 3) month CPI(2) Applicable index for month ‘m’ day ‘n’ (if n <10)=(m - 4) Month CPI +The number of days from Month (m 1) on the 11th to Month m Day n
Number of Days in Month (m - 1)

x {(m - 3) Month CPI - (m - 4) Month CPI}

(3) Applicable index for month ‘m’ day ‘n’ (if n> 10)=(m - 3) Month CPI +Number of Days in (n - 10)
Number of Days in month ‘m’

x {(m - 2) Month CPI - (m - 3) Month CPI}

(Example) In the case of June, the CPI for March shall be the applicable index for June 10.
2. Notional Principal

Face Value at Issue x Interlock Factor

3. Accrued Interest Income

Accrued Interest Income @ = (Coupon rate ÷ 365) x Notional principal on the date of recording of interest* To clear off and re-enter on a day-to-day basis (Amount of accrued interest income up to the previous day shall be canceled, and the amount of accrued interest
income from the next day of the previous interest payment or the date of delivery to the day shall be recorded).

4. Redemption Amount

Notional Principal at Redemption Date

5. Appraised Value

Notional Principal on Valuation Date x Valuation Unit Price (without considering interlock factor)

6. Face Value Unification

When the face value is unified on the interest payment date, the weighted average purchase interlock factor and the unit book value are calculated using thefollowing formula:
Weighted average purchase interlock factor = Total notional principal amount at the time of purchase ÷ Total face value
Unit Book Value = Total Book Value ÷ Total Notional Principal Amount at the Time of Purchase[Journal Entry Example]
Transaction
1. Purchase Agreement

Account Journal
September 1 (Contract Date)
National Government Bond
Certificates
99,407,330
September 6 (delivery date)
Accounts Payable
99,407,330
Prepaid Expenses
290,183

2. Recording of Accrued
Interest Income

September 7
Accrued Interest Income
3,297
September 8
Accrued Interest Income-3,297(09/07)
Accrued Interest Income
6,594(09/07 to 09/08)

Description

Accounts Payable
99,407,330
Call Loans
99,697,513- Contract date: September 1
Delivery Date: September 6- Face value 100,000,000
Contract unit price 99.110- Interest rate 1.2%
Interest Payment Date 06/10, 12/10 twice ayear- Redemption Date 06/10/2013 (Issue Date 06/10/2003)- Applicable Index 98.1129 (09/06) 97.80 (06/10) - - - Issue Index[Interlock Factor]98.1129 ÷ 97.8 = 1.003[Notional Principal]100,000,000 × 1.003 = 100,300,000[Contract Amount]100,300,000 × 99.11/100 = 99,407,330[Accrued Interest]100,300,000 × 1.2 × 88/365 = 290,183

Interest Income
3,297Interest Income-3,297
Interest Income
6,594- Applicable index 98.1097(09/07) 98.1065 (09/08)[Interlock Factor]98.1097 ÷ 97.8 = 1.003[Notional Principal]100,000,000 × 1.003 = 100,300,000[Accrued Interest Income @](1.2 ÷ 365) × 100,300,000 = 3,297[Interlock Factor]98.1065 ÷ 97.8 = 1.003[Notional Principal]100,000,000 × 1.003 = 100,300,000[Accrued Interest Income @](1.2 ÷ 365) × 100,300,000 = 3,297

Transaction
3. Upon Redemption

Account Journal
June 10 (2013)
Call Loans
100,400,000

4. Valuation
September 1

Loss or Gain on Valuation of
Securities
10,030
September 2
Loss or Gain on Valuation of
Securities-20,060

National Government Bond
Certificates
99,407,330
Gain on Securities
Transactions
992,670

Description- Applicable Index 98.20 (06/10/2013)[Interlock Factor]98.2 ÷ 97.8 = 1.004[Notional Principal]100,000,000 × 1.004 = 100,400,000- Valuation unit price to be valued (without considering interlock factor)99.120(09/01) 99.09 (09/02)- Applicable index 98.1290(09/01) 98.1258 (09/02)[Interlock Factor]98.1290 ÷ 97.8 = 1.003[Notional Principal]100,000,000 × 1.003 = 100,300,000[Appraised Value]100,300,000 × 99.12/100 = 99,417,360[Valuation gain or loss]99,417,360 - 99,407,330 = 10,030[Interlock Factor]98.1258 ÷ 97.8 = 1.003[Notional Principal]100,000,000 × 1.003 = 100,300,000[Appraised Value]100,300,000 × 99.09/100 = 99,387,270[Valuation gain or loss]99,387,270 - 99,407,330 = -20,060

33. Accounting for Establishment of Exchange Traded Funds When There Is Debt Guarantee by the Japan
Securities Clearing Corporation(In-Kind Type)‐The Day of Establishment
Stock certificatesPrincipal

Accounts Receivable(Loss on Additional Subscriptions)‐(Gain on Additional Subscriptions)

The Day the Establishment Amount is Deposited
Money Trust

Accounts Receivable(Money Trust Type)‐‐The Day of Establishment
Accounts Receivable

Principal(Loss on Additional Subscriptions)(Gain on Additional Subscriptions)

The Day the Establishment Amount is Deposited
Money Trust

Accounts ReceivableSupplementary ProvisionThis Sub-Committee resolution shall come into effect on April 1, 2004.

Supplementary ProvisionThis amendment shall come into effect on July 16, 2004.

Supplementary ProvisionThis amendment shall come into effect on November 19, 2004.

Supplementary ProvisionThis amendment shall come into effect on March 18, 2005.

Supplementary ProvisionThis amendment shall come into effect on November 18, 2005.

Supplementary ProvisionThis amendment shall take effect on May 31, 2006 and shall apply to share splits with a record dateon or after that date.

Supplementary ProvisionThis amendment shall come into effect on May 24, 2006.

Supplementary ProvisionThis amendment shall come into effect on June 19, 2006.

Supplementary ProvisionThis amendment shall come into effect on November 1, 2006.

Supplementary ProvisionThis amendment shall come into effect on October 12, 2006.

Supplementary Provisions
This amendment shall be implemented from the newly recorded accrued dividend receivable from
July 1, 2007.
Accrued dividends already recorded on the effective date shall be applied from those renewed on
and after the effective date.

Supplementary ProvisionThis amendment shall come into effect on January 19, 2007.

Supplementary ProvisionThis amendment shall come into effect on March 9, 2007.

Supplementary ProvisionThis amendment shall come into effect on June 14, 2007.

Supplementary ProvisionThis amendment shall come into effect on September 30, 2007.

Supplementary ProvisionThis amendment shall come into effect on October 1, 2008.

Supplementary ProvisionThis amendment shall come into effect on March 19, 2009.

Supplementary ProvisionThis amendment shall come into effect on January 21, 2010.

Supplementary ProvisionThis amendment shall come into effect on April 14, 2011.

Supplementary ProvisionThis amendment shall come into effect on January 1, 2020 and shall apply to investment trusts
from which beneficiaries receive dividends on or after such date.
* Deleted items 5 30 (1) - (2) and newly added items (1) - (3).

Supplementary ProvisionThis amendment shall come into effect on April 5, 2021.
* Amended items 3 and 4.

Supplementary ProvisionThis amendment shall come into effect on January 1, 2021.
* Newly added 5 33.

Rules on Real Estate Investment Trusts and Real Estate Investment Corporations
Established on March 16, 2001
Revised on May 24, 2001
Revised on September 21, 2001
Revised on March 19, 2004
Revised on November 18, 2005
Revised on April 21, 2006
Revised on February 16, 2007
Revised on September 21, 2007
Revised on February 15, 2008
Revised on March 21, 2008
Revised on May 16, 2008
Revised on September 19, 2008
Revised on March 19, 2009
Revised on September 16, 2009
Revised on May 20, 2010
Revised on December 20, 2012
Revised on May 15, 2014
Revised on November 20, 2014
Revised on May 21, 2015
Revised on July 16, 2015
Revised on March 9, 2017
Revised on September 19, 2019
Revised on March 11, 2021

Chapter 1:
Article 1

General Provisions
Purpose

These Rules shall apply to investment trust management companies (meaning a settlor company of investment
trusts as defined in Article 2, Paragraph 11 of the Act on Investment Trusts and Investment Corporations (ActNo. 198 of 1951, hereinafter referred to as the “Investment Trust Act”) and asset management companies as
defined in Paragraph 21 of the same article) and trust companies that act as trustee companies for Investment
Trusts that are not directed by the settlor (hereinafter referred to as the “Operating Company”). The purpose of
these Rules is to establish matters necessary for the proper execution of business pertaining to REIT (Real
Estate Investment Trusts) and Real Estate Investment Corporations (hereinafter referred to as “REIT, etc.”) andto smoothly implement a system pertaining to the REIT, etc., while protecting the investors.

Article 2
1.

Basic Principles for Management

The Operating Company shall, for the beneficiary of the investment trust or the investment corporation,with loyalty and the due care of a prudent manager, direct the management or manage the assets(hereinafter referred to as “management, etc.” The same shall apply hereinafter in this Article and thefollowing Article.) of a REIT or a real estate investment corporation (hereinafter referred to as the “Trust
Property, etc.”)

2.

In management, etc., of Trust Property, etc., the Operating Company shall be in compliance with the
Financial Instruments and Exchange Act (Act No. 25 of 1948, hereinafter referred to as the “FIEA.”), andthe Investment Trust Act and other laws and regulations as well as the various rules of this Association andshall give consideration to protecting the investors.

Article 2-2

System for Management of Trust Property, etc.

In management, etc., of Trust Property, etc., the Operating Company shall voluntarily conduct it and any
person other than the Operating Company (excluding any person to whom the authority to make investment inwhole or in part has been delegated under Article 42-3 of the FIEA and any person to whom the authority tomake investment in part has been delegated under Article 55 of the Investment Trust Act) shall not be involvedin the management, etc. of the Trust Property, etc.

Article 3
1.

Definition

The term “REIT, etc.” as used in these Rules means an investment trust and an investment corporation
whose purpose is to invest an amount exceeding one half of the total amount of the investment trust
property or the assets of the investment corporation in real estate, etc. and asset-backed securities, etc. forwhich real estate, etc., is the primary investment target, as set forth in the Basic Terms and Conditions ofInvestment Trust (hereinafter referred to as the “Basic Terms and Conditions”) or the Certificate ofIncorporation of the Investment Corporation (hereinafter referred to as the “Certificate of Incorporation”)

2.

The term “Real Estates, etc.” as used in these Rules means the following assets:(1) Real estate(2) Rights of lease of real property(3) Superficies rights(4) Assets listed in the preceding three items based on foreign laws and regulations(5) The beneficial interest in trusts in which the following assets are entrusted (including comprehensive
trusts entrusted together with money incidental to real estate.)(a) Real estate(b) Rights of lease of real property(c) Superficies rights(d) Assets listed in items (a) through (c) based on foreign laws and regulations(6) Beneficial interests in money trusts for the purpose of investing in the assets listed in items 1 to 4.
(7) Equity in investment in a silent partnership in real estate (meaning an equity in investment pertaining toa contract in which one of the parties promises to make a contribution to the investment in the assets set
forth in the preceding six items that has been made by the other party, and the relevant other party
invests the contributed property mainly in the relevant assets and distributes the profits that arise fromthe relevant investment. The same shall apply hereinafter.)(8) Beneficial interests in money trusts whose purpose is to invest trust property primarily in the assets
listed in Item 7.
(9) Assets similar in nature to those set forth in paragraphs 5 through 8 that are structured in accordancewith the foreign laws and regulations.
(10) In the case stipulated in Article 194, Paragraph 2 of the Investment Trust Act, shares or capital
contributions issued by a corporation stipulated in Article 221-2 of the Regulation for Enforcement of
the Act on Investment Trusts and Investment Corporations (Ordinance of the Prime Minister’s Office
No. 129 of November 17, 2000) (hereinafter referred to as “Foreign Real Property Holding

Corporation”), whose assets are all real property and monetary claims, etc., pertaining to such real
property (excluding those listed on the foreign financial instruments market and those registered, etc.,
on the over-the-counter financial instruments market established in foreign countries).
3.

The term “asset-backed securities, etc., for which primary investment target is real estate, etc.,” used inthese Rules, means the securities stipulated in each of the following items intended for investment in realestate, etc., in an amount exceeding one half of the assets and specified in said items:(1) Preferred Equity Securities: Preferred equity securities stipulated in Article 2, Paragraph 9 of the Asset
Securitization Act (Act No.105 of 1998; hereinafter referred to as the “the Asset Securitization Act”.)(2) Mother Fund Beneficiary Certificates: Beneficiary certificates of investment trusts as stipulated in
Article 2, Paragraph 7 of the Investment Trust Act (including book-entry transfer beneficial interest in
an investment trust; hereinafter referred to as “Beneficiary Certificates”), the purpose of which is tohave the trustees of other specific Investment Trusts (hereinafter referred to as “Baby Funds”) acquire
the Beneficiary Certificates of the Investment Trust, and that the trustee of the Investment Trust and thetrustee of the Baby Fund that acquires the Beneficiary Certificates of the Investment Trust are the sameand the Basic Terms and Conditions of the Baby Fund stipulate as such.
(3) Parent Investment Securities: Investment securities stipulated in Article 2, Paragraph 15 of theInvestment Trust Act (including book-entry transfer investment equity), the purpose of which is to haveother assets of a specified investment corporation (hereinafter referred to as a “Subsidiary Investment
Corporation”) acquire such investment securities, and of which acquisition is stipulated in theCertificate of Incorporation of the Subsidiary Investment Corporation that acquires such investment
securities of the investment corporation.
(4) Beneficiary Certificates of Special Purpose Trusts: Beneficiary certificates for special purpose trusts as
stipulated in Article 2, Paragraphs 13 and 15 of the Asset Securitization Act (excluding those whichinvest in assets as stipulated in Items 5, 6 or 8 of the preceding paragraph and investments in the assets
among those stipulated in Item 9 to be invested in the assets stipulated in Items 5, 6 or 8 of the preceding
paragraph.)(5) Securities of Equity in Investment in a Silent Partnership: Equity in investment in a silent partnership as
stipulated in Article 2, Paragraph 2, Item 5 of the FIEA
(6) Assets similar in nature to those set forth in Paragraph 1 or 4 that are structured in accordance with theforeign laws and regulations.

4.

The term “amount exceeding one half of the assets of investment trust property or investment corporation”
as used in these Rules shall, in principle, be based on the amount exceeding one half of the total amount ofassets obtained by adding or subtracting valuation gains or losses on real estate, etc., and other assets to thetotal assets of the REIT, etc., less the amount of security deposits or guarantee money temporarily
deposited by the REIT, etc., (hereinafter referred to as “security deposits, etc.”)

5.

The term “Listed, etc.” as used in these Rules means any of the following:(1) Securities which can be traded in the financial instruments market established by a securities exchange,
licensed and established in accordance with the provisions of Article 80 of the FIEA.
(2) Securities registered in the Registry of Over-the-Counter Traded Securities maintained by the Japan

Securities Dealers Association established with approval under the provisions of Article 67-2 of the
FIEA
6.

The term “Unlisted, etc.,” as used in these Rules means those that do not fall under any of the items of thepreceding paragraph.

7.

The term “Open-End Type Investment Trust” as used in these Rules means an investment trust for which
the Basic Terms and Conditions of the investment trust stipulate that an additional trust may be createdwith respect to the investment trust property at the request of the investor or that the investment trust
property may be partially cancelled at the request of the beneficiary for each specific period.

8.

The term “Open-End Type Investment Corporation” as used in these Rules means an investment
corporation whose Certificate of Incorporation stipulate that it shall issue investment equity at an amountthat is fair in light of the contents of the assets of the investment corporation or that it shall make partial
refunds of its investment equity in response to a partial refund request from an investor.

9.

The “Closed-End Type Investment Trust” as used in these Rules means the investment trust that stipulates
in the Basic Terms and Conditions for said investment trust that it will not accept requests for cancelationof investment trust property from the beneficiary, except for purchases made by exercising thebeneficiaries’ right to request purchase as stipulated in Article 18 of the Investment Trust Act (including
cases where it is applied mutatis mutandis pursuant to Articles 20 and 54 of the said Act.)

10. The “Closed-End Type Investment Corporation” as used in these Rules means an investment corporationthat stipulates in its Certificate of Incorporation that it will not respond to requests for refund ofinvestment equity except for the refund of investment equity based on the exercise of the right to request arefund by the investor specified in Article 141, Paragraph 1 or Article 149-3, Paragraph 1 of theInvestment Trust Act.
Article 4

Accounting Rules for REIT, etc.

Accounting for REIT, etc., shall be carried out in accordance with the Ordinance on Accountings of Investment
Trust Property (Cabinet Office Ordinance No. 133 of 2000; hereinafter referred to as the “Ordinance on
Accountings of Investment Trust’s Financial Statements”), the Ordinance on Accountings of Investment
Corporations (Cabinet Office Ordinance No. 134 of 2000; hereinafter referred to as “Ordinance on Investment
Corporation’s Financial Statements”), these Rules, and other Rules this Association stipulates and generally
accepted corporate accounting standards and other accounting practices.

Article 4-2

Proper Management of Documents

The Operating Company shall appropriately retain and manage the sales and purchase contracts, the appraisal
reports obtained from third parties, the contracts with subcontractors and other documents necessary for theproper execution of the entrusted business pertaining to the properties held by the REIT, etc. that the
management company is entrusted to manage (hereinafter referred to as the “Entrusted REIT, etc.”).

Article 5

Valuation of Real Estate Holdings

1.

The valuation method to be used for calculating the fair value of real estate, rights of lease of real property
and superficies rights held by REIT, etc. shall be the valuation method deemed appropriate for each asset
among the following methods specified in the Basic Terms and Conditions and Certificate ofIncorporation and they shall be valuated by such valuation methods. However, this does not apply to REIT,
etc. of private placements (meaning private placements stipulated in Article 2, Paragraph 3 of FIEA. The
same shall apply hereinafter.).
(1) Appraised value based on appraisal by a real estate appraiser(2) Appraised value based on actual transactions of similar properties in the neighborhood(3) The amount reduced and adjusted based on the amount expected to be required if the property is
re-procured at that time (limited to cases where a building is being valued.)(4) Value calculated by the capitalization method (DCF Method or Direct Capitalization Method)(5) Any combination of the valuation methods stipulated in the preceding items.

2.

In principle, the valuation methods stipulated in the Basic Terms and Conditions or Certificate ofIncorporation based on the provision of the preceding paragraphs shall not be changed in accordance withthe principle of consistency.
However, another method of valuation may be adopted only when such method of valuation is nolonger appropriate for a justifiable reason and when it can be reasonably determined that there is no
problem in protecting investors.

3.

When the valuation method specified in the Basic Terms and Conditions or Certificate of Incorporation
has been changed based on the provision of the proviso to the preceding paragraph, the following mattersshall be stated in the management report or asset management report (hereinafter referred to as the“Management Report, etc.”) for the preparation period which includes the date on which the valuation
method was changed.
(1) Facts and date of change in valuation method(2) Specific details of the valuation method adopted before the change (hereinafter referred to as the“Pre-Change Valuation Method”) and of the valuation method after the change (hereinafter referred toas the “Post-Change Valuation Method”)(3) Appraised value based on the Pre-Change Valuation Method and the Appraised Value based on the
Post-Change valuation Method at the end of the accounting period(4) Specific reasons for the change in the valuation method(5) Other matters necessary for investor protection

Article 6
1.

Valuation of Real Estate, etc.

The following assets held by REIT etc., shall be valuated at the value specified in the respective items:(1) Foreign assets stipulated in Article 3, Paragraph 2, Item 4: The value calculated by the valuation method
deemed appropriate by the Operating Company from among the valuation methods stipulated in Article
5, Paragraph 1 (if such assets are denominated in foreign currencies, the value denominated in foreign
currencies and the value converted into Japanese yen shall be indicated together.)(2) The beneficiary interest of the trust stipulated in Article 3, Paragraph 2, Item 5: The value presented by

the trustee company.
(3) The beneficiary interest in the money trust stipulated in Article 3, Paragraph 2, Item 6: The value
presented by the trustee company.
(4) Equity in investment in a silent partnership in real estate as stipulated in Article 3, Paragraph 2, Item 7:
The appraised value of such equity in investment in the silent partnership presented by the business
operator of the silent partnership (value reflecting the settlement of accounts of such silent partnership)(5) The beneficial interest in the money trust stipulated in Article 3, Paragraph 2, Item 8: The value
presented by the trustee company.
(6) Assets stipulated in Article 3, Paragraph 2, Item 9: The value stipulated in the preceding four items (ifsuch assets are denominated in foreign currencies, the value denominated in foreign currencies and thevalue converted into Japanese yen shall be indicated together).
(7) Assets stipulated in Article 3, Paragraph 2, Item 10: The appraised value of shares or capital
contributions of the Foreign Real Property Holding Corporation presented by the business operator of
the said Foreign Real Property Holding Corporation (value reflecting the settlement of accounts of thesaid Foreign Real Property Holding Corporation). If such assets are denominated in foreign currencies,
the value denominated in foreign currencies and the value converted into Japanese yen shall be
indicated together)2.

For valuation of the assets stipulated in items 2 through 7 of the preceding paragraph, if unavoidable
circumstances arise, such as the inability to obtain a value for the said assets from the trustee company orbusiness operator of the said assets, the Operating Companies may valuate such assets by the method ofvaluation specified in the By-laws.

* Article 2 of the By-laws

Article 7
1.

Valuation of Asset-Backed Securities, etc.

The assets specified in each of the following items held by REIT, etc., shall be valuated at the values
specified respectively therein:(1) Preferred equity securities as stipulated in Article 3, Paragraph 3, Item 1 shall be valuated at the closing
value on the stock exchange or over-the-counter market (hereinafter referred to as the “Listed Market”)
on the calculation date, or if this is difficult, at the price presented by the special purpose company.
(2) Mother Fund Beneficiary Certificates as stipulated in Article 3, Paragraph 3, Item 2 shall be the value ofeither the closing value on the Listed Market on the calculation date or the base value calculated basedon the calculation method for base value as stipulated in these Rules.
(3) Investment securities as stipulated in Article 3, Paragraph 3, Item 3 shall be valuated at the closing
value on the Listed Market on the calculation date.
(4) Beneficiary certificates of special purpose trusts prescribed in Article 3, Paragraph 3, Item 4 shall bevaluated at the closing value on the Listed Market on the calculation date, or if this is difficult, at theprice presented by the trustee company of the special purpose trust.
(5) Securities of equity in investment in a silent partnership as stipulated in Article 3, Paragraph 3, Item 5
shall be valuated at the closing value on the Listed Market on the calculation date, or if this is difficult,at the value presented by the business operator of the silent partnership (value reflecting the settlementof accounts of such silent partnership).
(6) Assets stipulated in Article 3, Paragraph 3, Item 6 shall be valuated at the value stipulated in items 1 or
4 according to the nature of said assets (if such assets are denominated in foreign currencies, the value
shall be converted into Japanese yen.)2.

For valuation of the assets stipulated in Items 1, 3, 4 and 5 of the preceding paragraph, if unavoidable
circumstances arises, such as the inability to obtain a value for the said assets from the trustee company orbusiness operator of the said assets, the Operating Company may valuate such assets by the method ofvaluation specified in the By-laws.

* Article 3 of the By-laws

Article 8

Valuation of Other Assets

Assets other than those stipulated in Articles 6 and 7 shall be valuated according to the respective asset
valuation methods stipulated in the Rules concerning Valuation and Accounting of Investment Trust Property
and the Rules on Infrastructure Investment Trusts and Infrastructure Investment Corporations (hereinafterreferred to as the “Rules on IIT, etc.”) In this case, when REIT, etc., valuate infrastructure assets, etc., based on
the Rules on IIT, etc., “Infrastructure Investment Trusts, etc.” shall be deemed to be replaced with “REIT, etc.”
and applied. However, when it is difficult to valuate by such method, it shall be valuated in accordance withgenerally accepted corporate accounting standards and other accounting practices.

Article 91.

Preparing an Asset Management Plan

In managing REIT, etc., the Operating Company shall prepare an Asset Management Plan for each REIT,
etc., and endeavor to manage REIT, etc., in accordance with the plan.

2.

The Asset Management Plan provided in the preceding paragraph shall contain the following matters:(1) The period scheduled for the Asset Management Plan
(2) Investment policy for REIT, etc.
(3) Attributes of real estate, etc., and asset-backed securities, etc., assumed to be investment targets(4) Valuation method of assets held
(5) Standards for replacement of real estate holdings, etc., and asset backed securities, etc., held
(6) Policy for formulating a Long-Term Repair Plan for the real estate holdings, etc., the total amount of theestimated reserves for the said Long-Term Repair Plan for the real estate holdings, etc., during theaccounting period, and the amount of planned reserves for each accounting period.
(7) Policy for Formulation of Plans for Borrowing and Repayment of Funds (including plans for issuanceand redemption of investment corporation bonds (including book-entry transfer investment corporation
bonds; the same shall apply hereinafter) the same shall apply hereinafter)
The current plan for borrowing and repayment of funds shall be described as reference
information(8) If the Asset Management Plan is revised, the date of such revision and the specific reasons for such
revision(9) Other matters deemed necessary for protection of investors
3.

The period stipulated in Item 1 of the preceding paragraph shall be a period of 10 years or more, which isdeemed appropriate in light of the product attributes of the said REIT, etc.
Provided, however, that with regard to REIT, etc. for which a trust period or duration is less than 10
years in the Basic Terms and Conditions or Certificate of Incorporation, such trust period or duration shallapply.

Article 10

Public Inspection of Asset Management Plan

The Operating Company shall keep the Asset Management Plan, which was formulated in accordance with theprovisions of the preceding article, at the principal headquarters and branch offices and make it available forpublic inspection by the beneficiary or the investor of the said REIT, etc., upon their request.

Article 11
1.

Disclosure of Long-Term Repair Plan, etc.

The Operating Company shall specify in its Management Report, etc., pertaining to REIT, etc., the amountaccumulated on the last day of each accounting period based on the Long-Term Repair Plan, etc., for thereal estate holdings, etc., as stipulated in Article 9, Paragraph 2, Item 6 for each accounting period for aperiod of five years or more before the last day of said accounting period.

2.

Notwithstanding the provision of the preceding paragraph, with regard to REIT, etc., whose operation
period or duration from the establishment thereof is less than five years, the amount accumulated during
the period from the date of establishment thereof until the end of the relevant accounting period, shall be
stated for each accounting period.

Article 121.

Depreciation of Real Estate Holdings

The amount of depreciation of real estate holdings shall be calculated by the straight-line method forbuildings (excluding auxiliary equipment) and by the straight-line method or the declining-balancemethod for equipment, etc.
The method of calculating the amount of depreciation of equipment, etc., shall be specified in the
Basic Terms and Conditions or Certificate of Incorporation.

2.

Based on the provisions of provisory clause in the preceding paragraph, no changes shall be made to themethod of calculating the amount of depreciation of equipment, etc., specified in the Basic Terms andConditions or Certificate of Incorporation.
However, another method of calculation may be adopted only when such method of calculation is
no longer appropriate for a justifiable reason and when it can be reasonably determined that there is no
problem in protecting investors.

3.

The provision of Paragraph 3 of Article 5 shall apply mutatis mutandis to any change in the method of
calculation of the amount of depreciation in accordance with the provision of the preceding paragraph. In
this case, the terms “valuation method,” “Pre-Change Valuation Method” and “Post-Change Valuation
Method” in the same paragraph shall be deemed to be replaced with “calculation method,” “Pre-Change
Calculation Method” and “Post-Change Calculation Method” respectively.

Article 12-2

Deleted

Article 13

Correction of Book Value of Real Estate Held at the End of Accounting Period

The Operating Company shall correct the book value of the real estate, etc., held at the end of the accounting
period to the amount calculated by deducting the amount of depreciation calculated by the calculation method
stipulated in the Basic Terms and Conditions or Certificate of Incorporation based on the provisions of thepreceding article from the amount at the beginning of the accounting period.

Article 14
1.

Correction of Book Value of Securities Held at the End of Accounting Period

The Operating Company shall re-valuate the trading securities it holds at the end of the accounting period
to market value, correct the book value, and add the gain on valuation of securities to the gain on securities
transactions and the loss on valuation of securities to the loss on securities transactions, respectively.

2.

Other securities held shall be recorded as valuation and translation differences, etc., as stipulated in Article
20, Paragraph 5 of the Ordinance on Accountings of Investment Trust’s Financial Statements or Article 39,
Paragraph 6 of the Ordinance on Investment Corporation’s Financial Statements, in the amount calculated
by deducting the book value of such securities from the amount valuated by the method stipulated in theseRules at the end of the accounting period.

Article 15

Calculation of Useful Life of Real Estate Holdings

The useful life of the real estate holdings shall be determined appropriately, taking into consideration thefollowing matters:(1) Status of acquisition (Number of years elapsed before acquisition, etc.)(2) Status of implementation or schedule of repairs, etc.
(3) Structure of the real estate(4) Useful life in accordance with Article 56 of the Order for Enforcement of the Corporation Tax Act(Cabinet Order No. 97 of 1965) and the Ministerial Ordinance Concerning the Useful Life etc., ofDepreciable Assets (Ministerial Ordinance No. 15 of 1965)

Article 16

Other Asset Management Methods

When assets other than real estate, etc., are held, the management method of such assets shall be in accordancewith what is stipulated in the Rules on Management of Investment Trusts, etc., and the Rules on IIT, etc.

Article 17

Restrictions on Beneficiary Certificate of Investment Trusts, etc.

When Beneficiary Certificates other than Mother Fund Beneficiary Certificates stipulated in Article 3,
Paragraph 3, Item 2 or investment securities other than the parent investment securities stipulated in Article 3,
Paragraph 3, Item 3 are incorporated in REIT, etc., such incorporation shall be limited to cases where thefollowing requirements are satisfied:(1) The total amount of securities held by any one REIT, etc., (excluding the securities stipulated in Article

3, Paragraph 2, Items 5 through 9) including Beneficiary Certificates and investment securities shall beless than 50% of the total amount of assets of such REIT, etc.
(2) The amount invested by any one Operating Company in any one Investment Trust or Investment
Corporation shall be less than fifty percent (50%) of the total amount of Beneficiary Certificates orinvestment securities issued by the Investment Trust or Investment Corporation into which such
Operating Company invests in all of the Investment Trust Property managed by such Operating
Company and the assets of the Investment Corporation to which the management of such Operating
Company is entrusted.
(3) Shall not be Beneficiary Certificates or investment securities held mutually or in circulation among
investment trusts or investment corporations.
(4) The Beneficiary Certificates or investment securities shall satisfy the requirements stipulated in thefollowing items (a) and (b):(a) Shall not be Beneficiary Certificates of an investment trust that the Operating Company manages foritself, or the investment securities of investment corporations entrusted(b) Shall not be investment trust beneficiary certificates or investment securities of investment
corporations that are primarily intended to be invested in other Beneficiary Certificates or investment
securities, except for funds of funds as defined in the Rules on Management of Investment Trusts,
etc.

Article 18
1.

Borrowing of Funds

The borrowing of funds by REIT, etc., shall be limited to cases where such borrowing is necessary for the
management, etc., of Trust Property, etc., and shall be carried out with due consideration of the soundnessof such Investment Trust Property, etc., or the assets of the investment corporation.

2.

If the Operating Company borrows funds for REIT, etc., the Operating Company shall state the following
matters for each such borrowing in the Management Report, etc., for the accounting period:(1) Reasons for borrowing(2) Date of borrowing(3) Amount of borrowing(4) Lender(5) If the assets held are pledged, the name and appraised value of the assets pledged as collateral(6) Interest rate for borrowing(7) Method of repayment(8) Repayment period

Article 19

Time to Record the Losses and Gains on Sale and Purchase of Real Estate, Etc.

Losses and Gains on sale and purchase of real estates, rights of lease of real property and superficies rights shallbe recorded on the day of delivery.

Article 20

Time to Record Key Money, etc., Generated from Lease Contracts for Real Estate Holdings,

etc.
Key money or rights money (hereinafter referred to as “Key Money, etc.”) generated from the lease contract of
the real estate, etc., held shall be recorded as revenue over the corresponding period according to its nature
thereof, or when it is determined that such Key Money, etc., shall not be returned to the lessee, etc., the amountdetermined not to be returned shall be recorded as revenue.

Article 21

Security Deposits, etc., Generated from Lease Contracts for Real Estate Holdings, etc.

With respect to security deposits, etc., temporarily received in trust property or assets such as REIT, etc., suchamount shall be recorded in the assets section and the amount equivalent to such amount shall be recorded in
the liabilities section as repayment obligations.

Article 22

Repair Costs for Real Estate Holdings

When repairs to real estate etc., held (excluding capital expenditures; the same shall apply hereinafter) takes
place, in principle, the expenses for said repair shall be recorded in the period in which such repairs occurred.

Article 23

Capital Expenditures Pertaining to Real Estate Holdings, etc.

If capital expenditures are made for real estate holdings, etc., during the accounting period, the amountequivalent to the expenses required for such capital expenditures shall be added to the book value of such realestate, etc., at the end of the preceding accounting period.

Article 24
1.

Disclosure of Capital Expenditures for Real Estate Holdings etc.

When the implementation plan for capital expenditure (excluding capital expenditures that can berecorded as deductible expenses for repair reserves, etc.) specified in the By-laws has been finalized forthe real estate holdings, etc., the following matters shall be stated in the Management Report, etc., andprospectus delivered to investors prior to the execution of such capital expenditures:(1) Name and location of the real estate for which capital expenditure is to be made(2) Purpose of capital expenditure(3) Scheduled period(4) Estimated amount(5) Estimated amount of increase in the book value of said real estate after capital expenditures

2.

When it becomes necessary to make capital expenditures on real estate that is held due to a natural
catastrophe, etc., public notice to that effect shall be given promptly in the manner set forth in the Basic
Terms and Conditions, etc., and the matters set forth in the respective items of the preceding paragraphshall be stated in the Management Report, etc., for the accounting period in which the day it becomes
necessary to make capital expenditures falls.

3.

The provision of Paragraph 1 shall apply mutatis mutandis to cases where an implementation planpertaining to capital expenditures is completed. In this case, the term “when the implementation plan has
been finalized” in the main clause of Paragraph 1 shall be deemed to be replaced with “when theimplementation plan is completed,” the term “prior to the execution” shall be deemed to be replaced with

“after the execution,” the term “real estate for which capital expenditure is to be made” in Item 1 of thesame paragraph shall be deemed to be replaced with “real estate for which capital expenditure was made,”the term “purpose of capital expenditure” in Item 2 shall be deemed to be replaced with “purpose forwhich capital expenditure was made” the term “scheduled period” in Item 3 shall be deemed to be
replaced with “period”; the term “estimated amount” in Item 4 shall be deemed to be replaced with“amount,” and the term “estimated amount of increase” in Item 5 shall be deemed to be replaced with“amount of increase.”* Article 4 of the By-laws

Article 24-2

Restrictions on Countries and Regions Subject to Investment

In the event that the Operating Company gives instructions to acquire real estate, etc., located outside Japan orasset-backed securities, etc., for which the primary investment target is real estate, etc., located outside Japan(hereinafter referred to as “Foreign Real Estate, etc.”) for the purpose of investment in the Entrusted REIT, etc.,
the country or region where such property is located must satisfy the following requirements:(1) Laws, etc. must be in place to properly secure rights related to the use, income, and disposal of realestate, etc.
(2) A registration system, etc., must be in place in order to assert the details of the rights pertaining to realestate, etc., against a third party.
(3) Legal systems, etc. shall be in place to properly conclude and fulfill transaction contracts related to realestate, etc.
(4) The rate of exchange for the currency to be used in the transaction shall be properly published and may
be converted into Japanese currency if necessary without delay.
(5) An environment that allows for the proper settlement and remittance of funds shall be in place.
(6) A dispute resolution system such as a court system shall be in place.

Article 24-3

Matters to Observe Regarding Acquisition of Foreign Real Estate, etc.

When the Operating Company gives instructions to acquire Foreign Real Estate, etc., through Entrusted REIT,
etc., the matters specified in each of the following items shall be observed in order to protect the beneficiaries
and investors:(1) Conduct the same level of research as when acquiring properties in Japan.
(2) Obtain basic materials such as appraisal reports, etc., with the same level of information details andaccuracy as when acquiring properties in Japan.
(3) Take necessary measures for appropriate management and collection of leases, etc., such as selecting a
local agent in accordance with the actual circumstances of the local countries and regions.
(4) Take necessary measures to properly obtain information on the local countries, regions, and theproperty.

Article 24-4

Development of Internal System for Operating Company of Investment Corporation which

Invests in Foreign Real Estate, etc.
When the Operating Company gives instructions to acquire Foreign Real Estate, etc., through Entrusted REIT,
etc., an internal system capable of appropriately performing the matters specified in each of the following items
must be established:(1) Disclosure of information on Foreign Real Estate, etc., and local countries and regions.
(2) Retention in Japan of records of business communications, etc., with asset management companies, etc.,
in local countries and regions.
(3) Acquisition of information from the local countries and regions and timely and appropriate response tosuch information.
(4) Timely disclosure regarding occurrence of disasters, etc.

Article 24-5

Special Provisions for Health Care Facilities

In the event that the Operating Company invests in health care facilities (meaning “housing for the elderly withservices” as defined in Article 5 of the Act on Stable Supply of Residences for the Elderly (Act No. 26 of 2001),
a “fee-based home for the elderly” as defined in Article 29 of the Act on Social Welfare for the Elderly (Act No.
133 of 1963) and “group homes for the elderly with dementia” as defined in Article 5-2, Paragraph 6 of the said
Act, and hereinafter referred to as “Health Care Facilities”) as investment targets for REIT, etc., theManagement Company shall establish an internal system capable of appropriately performing the matters set
forth in the following items in accordance with the scale and nature of the business concerned.
(1) Measures that take the actual circumstances, etc., of the business operator who operates the Health Care
Facilities (hereinafter referred to as “operator”) into consideration in obtaining necessary informationfrom the operator when investing in Health Care Facilities.
(2) Provision of information to facility users and other measures to ensure that the inclusion of Health Care
Facilities as investment targets for REIT, etc., does not cause anxiety among facility users.
(3) Disclosure to investors of circumstances specific to Health Care Facilities in addition to generaldisclosure items

Chapter 2:
Section 1.
Article 251.

Investment trust
General Provisions
Minimum Net Asset Value of REIT

In principle, the minimum amount of net assets to be held by the real estate investment trust at all times(hereinafter referred to as the “Minimum Net Asset Value”) shall be 100 million yen.
However, this shall not apply to a privately placed real estate investment trust.

2.

In the case of a REIT, if the amount of such net asset value falls below the Minimum Net Asset Value
stipulated in the preceding paragraph, no instructions for the borrowing of new funds or distribution of
profits shall be given until the amount of net assets exceeds the Minimum Net Asset Value.

Section 2.
Article 26

Closed-End Type Investment Trusts
Calculation Method for the Base Value of Closed-End Type Investment Trusts

The base value for a Closed-End Type Investment Trust shall be the quotient obtained by dividing the total
amount of assets, plus or minus gains or losses on valuation of assets required to be valued at the market value
under laws and regulations for securities, etc., less depreciation and debts pertaining to real estate holdings, by
the total number of units of beneficial interest.

Article 27

Profit Distribution Sources for Closed-End Type Investment Trusts

Closed-End Type Investment Trusts may distribute in full the amount obtained (hereinafter referred to as“Investment Trust Income”) by deducting the total amount of expenses, depreciation, and deficit carriedforward for the relevant accounting period for taxes and levies, etc., (including the interest expense for the
relevant accounting period; the same shall apply hereinafter) from the total amount of profit or loss on sales ofretained real estate, etc., lease revenue, (including Key Money, etc., or security deposits, etc., determined not tobe returned to the lessee, etc.; the same shall apply hereinafter), gain or loss on securities transactions, interestand dividends on retained real estate and retained securities, etc., and profit carried forward.

Article 28
1.

Refund of Investment Principal of Closed-End Type Investment Trusts

A Closed-End Type Investment Trust shall be entitled to refund the investment principal up to an amountequivalent to 60% of the amount of depreciation to be recorded at the end of the accounting period.

2.

For privately placed Closed-End Type Investment Trusts, if the amount of Investment Trust Income is lessthan the amount of income calculated for tax purposes, notwithstanding the provisions of the preceding
paragraph, the principal of investment in combination with the Investment Trust Income amount may be
refunded up to the amount calculated based on the Tax Act.

Article 28-2

Measures for Continuous Refund of Investment Principal for Each Period

In the event that the investment principal prescribed in Paragraph 1 of the preceding article is refunded every
period on a continuous basis, the following matters must be observed:(1) The distribution policy in the Basic Terms and Conditions shall mention that the investment principal
shall be refunded every period on a continuous basis, and describe the concept thereof.
(2) As a policy for the implementation of continuous refunds of investment principal each period, internal
rules, etc., shall be established that stipulate the distribution of profits and disclosure of investment
principal refunds categories and other matters specified in the By-laws.
(3) The concept of implementing continuous refunds of investment principal each period shall bementioned in the securities registration statement, annual securities report, and prospectus, as well as
disclosed on the website, etc., upon presenting objective grounds based on rational data, etc., (past dataon settlements, engineering reports, etc.)
In addition, in order to make it easy to understand that this is a refund of the investment principal,
efforts shall be made to use simple expressions such as illustrations.
(4) When making a continuous refund of the investment principal each period, the Management Reportshall clearly state that the money is not a distribution of profit but a refund of investment principal, andexplanatory notes, etc., shall be made in the relevant section of the Management Report, uponpresenting objective grounds for the validity of the standard for such refund based on rational data, etc.
(past data on settlements, engineering reports, etc.)(5) When making a continuous refund of the investment principal each period, consideration shall be given
so as not to affect the long-term repair plan stipulated in Article 9, Paragraph 2, Item 6, and explanatory
notes, etc., shall be made in the relevant section of the Asset Management Plan and the Management
Report so that investors can understand the concept, upon presenting objective grounds for suchconcept based on rational data, etc. (past data on settlements, engineering reports, etc.)* Article 5 of the By-laws

Article 28-3

Refund of Investment Principal Other Than Continuous Refund of Investment Principal Each

PeriodWhen making refund of the investment principal in a manner other than continuous refund of the investment
principal each period as stipulated in the preceding article, sufficient consideration shall be given to the matters
stipulated in the By-laws as set forth in Item 2 of the preceding article.
The Management Report shall clearly state that the money is not a distribution of profit but a refund ofinvestment principal, and explanatory notes, etc., shall be made in the relevant section of the Management
Report upon presenting objective grounds and reasons for the validity of the standard for such refund of theinvestment principal.

Article 29

Method of Recording Lease Revenue for Closed-End Type Investment Trusts

Lease revenue generated from real estate holdings shall be recorded as revenue in the amount corresponding to
the accounting period.

Article 30
1.

Method of Recording Taxes and Levies for Closed-End Type Investment Trusts

Taxes and levies such as fixed asset taxes, etc., that are constantly incurred on the real estate held shall berecorded as expenses in an amount corresponding to such accounting period.

2.

Taxes and levies such as real estate acquisition taxes, etc. which are temporarily incurred by acquisition orsale of real estate shall be recorded as expenses on the date the payment of such taxes and levies isfinalized. However, any future fixed property tax, real estate acquisition tax, registration and license tax at
the time of acquisition of real estate, etc., may be recorded as the acquisition value.

Article 31

Method of Recording Trust Fees for Closed-End Type Investment Trusts

Trust fees shall be recorded as expenses for each accounting period in the amount corresponding to suchaccounting period.

Article 32

Trust Management Fee for Real Estate, etc., Held by Closed-End Type Investment Trusts

The trust management fee for the real estate, etc., held shall be recorded as expenses in the amountcorresponding to the relevant accounting period in accordance with the details of the trust managementagreement.

Article 33

Frequency of Calculation for Base Value for Listed Closed-End Type Investment Trusts

Listed Closed-End Type Investment Trusts shall calculate and publish the base value at the end of eachaccounting period and at the end of the interim accounting period.

Article 34

Frequency of Calculation for Base Value of Unlisted Closed-End Type Investment Trusts

The unlisted Closed-End Type Investment Trusts (excluding privately placed investment trusts) shall calculate
and publish the base value at the end of each accounting period and interim accounting period, and at the end ofeach month.

Section 3.
Article 35

Open-End Type Investment Trust
Matters to Be Noted in Management of Open-End Type Investment Trusts

In managing assets such as real estate, etc. and asset-backed securities in Open-End Type Investment Trusts,
attention shall be paid to the liquidity of the assets to be managed, and that effect shall be stipulated in the Basic
Terms and Conditions.

Article 36

Method of Calculating the Base Value of Open-End Type Investment Trusts

The base value of an Open-End Type Investment Trusts shall be the amount obtained by adding or subtracting
the valuation profit or loss on the assets held to/from the total amount of assets (for real estate held, etc., theamount shall be the value of the said real estate, etc., calculated in accordance with the provisions of Article 5,less the amount obtained by deducting the depreciation expenses for the period from beginning of theaccounting period to which the relevant calculation date belongs until the calculation date from the book value;
the same shall apply hereinafter) and subtracting any liabilities from the amount and dividing it by the total
number of units of beneficial interest.

Article 37

Profit Distribution Sources and Refund of Investment Principal of Open-End Type Investment

Trusts1.

The distributable amount of profit from an Open-End Type Investment Trust shall be within the range of
any of the larger amounts calculated based on the calculation methods listed in the following items:(1) The entire amount obtained by deducing the total amount of expenses relevant to the accounting period,
such as taxes and levies, depreciation expenses for the current period and deficit carried forward, fromthe total amount of profits or losses on sales and purchases of real estate held, etc., lease revenue, gains
or losses on securities transactions, interest and dividends on real estate held etc. and securities held,
valuation profits or losses on assets held at the end of the accounting period (for real estate, rights oflease of real property, and superficies rights, the amount obtained by deducting the book value (theamount obtained by deducting the depreciation amount for the relevant accounting period) from thevaluation price of the asset calculated in accordance with the provisions of Article 5), and profit carriedforward.
(2) The total amount of profits or losses on sale and purchase of real estate held, etc., lease revenue, gains orlosses on securities transactions, interest and dividends etc., on real estate held etc., and securities held,and profit carried forward incurred during the accounting period, less the total amount of expenses,
depreciation and losses carried forward for the accounting period such as taxes and levies.
2.

With respect to privately placed Open-End Type Investment Trusts, if the distributable amount of profit
prescribed in the preceding paragraph is less than the amount of income calculated for tax purposes,
notwithstanding the provisions of the preceding paragraph, the investment principal together with the
distributable amount of profit may be refunded up to the amount of income calculated for such tax
purposes.

Article 37-2

Refund of Investment Principal of Open-End Type Investment Trusts Privately Placed by

Qualified Institutional Investors
1.

Open-End Type Investment Trusts privately placed by qualified institutional investors (meaning private
placements by qualified institutional investors as stipulated in Article 2, Paragraph 9 of the Investment
Trust Act; the same shall apply hereinafter) may be distributed as refund of the investment principal up to
the amount equivalent to the depreciation expense to be recorded at the end of the accounting period.

2.

When the investment principal is refunded based on the provisions of the preceding paragraph, theManagement Report shall clearly state that the money is not a distribution of profit but a refund ofinvestment principal, and shall strive to prevent the investor from confusing such money with distributionof profits.

Article 38

Mutatis Mutandis Application of Open-End Type Investment Trusts

The provisions of Article 29 shall apply mutatis mutandis to the recording of lease revenue from Open-End
Type Investment Trusts, the provisions of Article 30 shall apply mutatis mutandis to the recording of taxes andlevies, the provisions of Article 31 shall apply mutatis mutandis to the recording of trust fees, and theprovisions of Article 32 shall apply mutatis mutandis to the recording of trust management fees.

Article 39

Frequency of Calculation for Base Value for Open-End Type Investment Trusts

In principle, the base value of Open-End Type Investment Trusts shall be calculated and published on the lastdate of each accounting period and the last date of the interim accounting period as well as the date specified in
the Basic Terms and Conditions on which investors and beneficiaries are able to directly apply forestablishment of additional trust or partial early cancellation of the investment trust property, as well as fivebusiness days prior to the date.

Article 40

Value of Establishment or Early Cancellation of Open-End Type Investment Trusts

If additional establishment or partial early cancellation of the investment trust property is directly made during
the accounting period or at the end of the accounting period based on requests from the investors and thebeneficiaries, such additional establishment or partial early cancellation shall be made using the base value on
the date when the request is made.

Chapter 3:
Section 1.

Investment Corporation
Closed-End Type Investment Corporation

Article 41Method of Calculating the Base Value of Closed-End Type Investment Corporations
The provisions of Article 26 shall apply mutatis mutandis to the method of calculating the base value of
Closed-End Type Investment Corporations. In this case, the term “Closed-End Type Investment Trust” in thearticle shall be deemed to be replaced with “Closed-End Type Investment Corporation” and the term “total
number of units of beneficial interest” in said article shall be deemed to be replaced with “number ofinvestment units issued.”

Article 42
1.

Profit Distribution Sources for Closed-End Type Investment Corporations

A Closed-End Type Investment Corporation may distribute the entire amount of profits (meaning profits
as defined in Article 136, Paragraph 1 of the Investment Trust Act; the same shall apply hereinafter)

2.

Notwithstanding the provisions of the preceding paragraph, in the event of discrepancy between book andtax accounting (meaning discrepancies stipulated in Article 2, Paragraph 2, Item 29 of the Ordinance on
Investment Corporation’s Financial Statements; the same shall apply hereinafter), a Closed-End Type
Investment Corporation may take any of the following actions:(1) The amount equivalent to the increase in the allowance for temporary difference, etc. adjustments(meaning what is stipulated in Article 2, Paragraph 2, Item 30 of the Ordinance on Investment
Corporation’s Financial Statements; the same shall apply hereinafter) shall be distributed by applying itto the unappropriated retained earnings in the amount of profit stipulated in the preceding paragraph.
(2) The amount equivalent to the reserve for temporary difference adjustments (meaning what is stipulated
in Article 2, Paragraph 2, Item 31 of the Ordinance on Investment Corporation’s Financial Statements;
the same shall apply hereinafter) shall be reserved by subtracting the amount as voluntary retained
earnings from the unappropriated retained earning in the amount of profit stipulated in the preceding
paragraph.

Article 42-2

Settlement of Foreign Income Tax of Closed-End Type Investment Corporations

A Closed-End Type Investment Corporation that has paid foreign income tax in the country where its assets arelocated during the period shall calculate the following data at the end of the period:(1) Ratio of assets denominated in foreign currencies
The net assets denominated in foreign currencies at the end of the period (the amount obtained bysubtracting the amount of yen-denominated assets from the amount recorded as total assets in thebalance sheet for the relevant accounting period) divided by total net assets of trust property at the endof the period (recorded as total assets in the balance sheet for the relevant accounting period). The upper
limit shall be 1 and maximum one digit of integer with decimal numbers truncated beyond the fourthdecimal place.
(2) Foreign Income Tax per Yen of Distribution
Foreign income taxes during the period (the total amount of foreign income taxes paid by theinvestment corporation from the beginning to the end of the period) divided by the amount of dividends(the amount recorded as the amount of dividends in the statement of cash distributions for the relevant
accounting period.) Maximum one digit of integer with decimal numbers truncated beyond the tenthdecimal place. When the ratio of assets denominated in foreign currencies is 0, foreign income tax per
yen of distribution shall also be 0.
(3) Domestic Income Tax per Yen of Distribution
The amount obtained by dividing the amount of domestic income tax at the end of the period by theamount of dividends (Amount recorded as the amount of cash distributions in the statement of cash
distributions for the relevant accounting period). Maximum one digit of integer with decimal numbers
truncated beyond the tenth decimal place

Article 42-3

Communication on Settlement of Accounts for Foreign Income Tax for Closed-End Type

Investment Corporations
1.

Data calculated in accordance with the provisions of the preceding article shall be converted into a csv filealong with other data on payment of dividends on the date the financial statements are approved by theboard of officers and communicated to the sales companies. In this case, the starting date for payment ofdividends shall be the day after the expiration of 15 business days from the closing date.

2.

The csv file communicated to the sales companies pursuant to the provisions of the preceding paragraphshall be posted on the website of the investment corporation on the date the financial statements areapproved by the board of officers.

Article 43

Refund of Capital Contributions Which Falls Under the Category of Distribution for

Reduction of Capital Contributions etc., under the Tax Act for Closed-End Type Investment Corporations
A Closed-End Type Investment Corporation shall be entitled to make refunds of capital contributions whichfall under the category of distributions for reduction of capital contributions, etc., under the Tax Act, up to an
amount equivalent to 60% of the amount obtained by deducting the total amount of accumulated depreciation
calculated at the end of the previous accounting period from the total amount of accumulated depreciation
recorded at the end of the accounting period.

Article 43-2

Treatment of Reversal of the Reserve for Temporary Difference Adjustments and Reversalof the Allowance for Temporary Difference Adjustments for Closed-End Type Investment Corporations
In the event that a Closed-End Type Investment Corporation records the allowance for temporary difference
adjustments or reserve for temporary difference adjustments, from the following period onward, the amount ofreversal of the reserve for temporary difference adjustments (meaning the process noted in the balance sheet inaccordance with the provisions of Article 62, Item 13 of the Ordinance on Investment Corporation’s Financial
Statements or the amount generated by the reversal of the reserve for temporary difference adjustments in lieu

of recording the amount of allowance for temporary difference adjustments; the same shall apply hereinafter)shall be added to the unappropriated retained earnings in the amount of profit and the amount of reversal of theallowance for temporary difference adjustments (meaning the amount generated by the process noted in thebalance sheet in accordance with the provisions of Article 62, Item 13 of the Ordinance on Investment
Corporation’s Financial Statements; the same shall apply hereinafter) shall be subtracted from the earnings.

Article 43-3

Description in Other Explanatory Notes in the Event of Discrepancy between Book andTax Accounting
If the establishment of allowance for temporary difference adjustments or reserve for temporary difference
adjustments or the reversals thereof are stated in the statement of cash distributions for the accounting period ofinvestment corporations in accordance with the Article 42, Paragraph 2 or the preceding article, the matterslisted in the following items shall be stated as other explanatory notes in relation to the allowance for temporary
difference adjustments or reserve for temporary difference adjustments:(1) Allowance for Temporary Difference Adjustments(i) Reasons for establishing the allowances and reversals, and assets generated, etc.
(ii) Amount for the allowance and reversal(iii) Specific method of reversal(2) Reserve for Temporary Difference Adjustments(i) Reasons for establishing reserves and reversals, etc.
(ii) Amount of reserves and reversals(iii) Specific method of reversal (with respect to reversal resulting from negative goodwill or differencesin the book value of assets resulting from a merger, the expected reversal period (which shall be within
50 years) and method of reversal (which shall be at least equal amount of reversal per each period) shallalso be described.)
Article 43-3-2

Description in the Explanatory Notes Concerning the Balance Sheet in the Event ofDiscrepancy between Book and Tax Accounting
In accordance with the provisions of Article 42, Paragraph 2 and Article 43-2, if there is any increase or
decrease in and recording of the allowance for temporary difference adjustments or the reserve for temporary
difference adjustments in the balance sheet, the following matters shall be stated in the explanatory notes forthe balance sheet:(1) Allowance for Temporary Difference Adjustments(i) Reasons for establishing the allowances and reversals, and assets generated, etc.
(ii) Initial amount occurred(iii) Opening balance of the current period, allowance for the current period (increase), reversal for thecurrent period (decrease), closing balance at the end of the current period(iv) Specific method of reversal(2) Reserve for Temporary Difference Adjustments(i) Reasons for establishing reserves and reversals, etc.

(ii) Initial amount occurred(iii) Opening balance of the current period, accumulation for the current period (increase), reversal forthe current period (decrease), balance at the end of the current period(iv) Specific method of reversal (with respect to reversal resulting from negative goodwill or differences inthe book value of assets resulting from a merger, the expected reversal period (which shall be within 50
years) and method of reversal (which shall be at least equal amount of reversal per each period) shallalso be described.)

Article 43-4

Measures for Implementing Continuous Refund of Capital Contributions Each Period That

Falls under the Category of Reduction of Capital Contributions, etc., under the Tax Act.
When making continuous refunds of capital contributions each month which falls under the category of
distributions for reduction of capital contributions etc., under the Tax Act, as stipulated in Article 43, thefollowing matters shall be observed:(1) The distribution policy in the Certificate of Incorporation shall state that continuous refunds of capital
contributions that fall under the category of distributions for reduction of capital contributions, etc.,
under the Tax Act, shall be made each period, and describe the concept thereof.
(2) Establish internal rules, etc. that provide for the disclosure of the distinction between the distribution of
profits and the refunds of capital contributions and other matters specified in the By-laws as a policy forthe implementation of continuous refunds of capital contributions each period that falls under the
category of distributions for reduction of capital contributions, etc., under the Tax Act.
(3) The concept of implementing continuous refunds of capital contributions each period that falls under
the category of distributions for reduction of capital contributions, etc., under the Tax Act, shall beclearly stated in the securities registration statement, annual securities report as well as prospectus anddisclosed on the website, etc., upon presenting objective grounds for such concept based on rationaldata, etc. (past data on settlements, engineering reports, etc.)
In addition, in order to make it easy to understand that this is a refund of capital contributions that
falls under the category of distributions for reduction of capital contributions, etc., under the Tax Act,
efforts shall be made to use simple expressions such as illustrations.
(4) When making continuous refunds of capital contributions each period that fall under the category of
distributions for reduction of capital contributions, etc., under the Tax Act, in addition to clearly statingin the asset management report that such money is not a distribution of profits but refund of capital
contributions that falls under the category of distributions for reduction of capital contributions, etc.,
under the Tax Act, explanatory notes, etc., shall be made in the relevant section of the asset
management report upon presenting objective grounds for the validity of the standard for such refund of
capital contributions, etc., based on rational data, etc., (past data on settlements, engineering reports,
etc.)(5) When making continuous refunds of capital contributions each period that fall under the category of
distributions for reduction of capital contributions, etc., under the Tax Act, consideration shall be given
so as not to affect the long-term repair plan stipulated in Article 9, Paragraph 2, Item 6, and uponpresenting objective grounds for such concept based on rational data, etc., (past data on settlements,
engineering reports, etc.) explanatory notes, etc., shall be made in the relevant section of the AssetManagement Plan and asset management report so that investors can understand the concept.
* By-laws Article 5-2

Article 43-5

Refund of Capital Contributions That Falls under the Category of Distributions for

Reduction of Capital Contributions, etc., under the Tax Act Other Than Refund of Capital Contribution That
Falls under the Continuous Distribution for Reduction of Capital Contributions, etc. for Each Period under
the Tax Act
For refund of capital contributions that falls under the category of distributions for reduction of capital
contributions, etc., under the Tax Act other than the refund of capital contribution that falls under thecontinuous distribution for reduction of capital contributions, etc. for each period under the Tax Act stipulated
in the preceding article, sufficient consideration shall be given to the matters stipulated in the By-laws as set
forth in Item 2 of the preceding article.
The management report shall clearly state that the money is not a distribution of profit but a refund of capital
contributions, etc., that falls under the category of distributions for reduction of capital contributions, etc.,
under the Tax Act, and explanatory notes, etc., shall be made in the relevant section of the management reportupon presenting objective grounds and reasons for the validity of the standard for such refund.

Article 44

Mutatis Mutandis Application of the Method of Recording Lease Revenue for Closed-End

Type Investment Corporation
1.

The provisions of Article 29 shall apply mutatis mutandis to the recording of lease revenue of a
Closed-End Type Investment Corporation, the provisions of Article 30 shall apply mutatis mutandis to therecording of taxes and levies, and the provisions of Article 32 shall apply mutatis mutandis to therecording of trust management fees for real estate held, etc.

2.

The provisions of Article 31 shall apply mutatis mutandis to the recording of remuneration paid by a
Closed-End Type Investment Corporation. In this case, the term “trust fees” in said article shall be deemed
to be replaced with “remuneration to be paid by the investment corporation to the relevant parties based on
the contract concluded between the investment corporation, the operating company that manages assets,
the general administration trustee, and the asset custodian company.”

3.

The provisions of Article 33 shall apply mutatis mutandis to the frequency of calculation of the base valueof a listed Closed-End Type Investment Corporation, and the provisions of Article 34 shall apply mutatis
mutandis to the frequency of calculation of the base value of a non-listed Closed-End Type Investment
Corporation. In this case, the term “Closed-End Type Investment Trust” in Article 33 and Article 34 shallbe deemed to be replaced with “Closed-End Type Investment Corporation.”

Article 45

Points to Consider concerning the Issuance of Investment Corporation Bonds

When a Closed-End Type Investment Corporation issues investment corporation bonds under the provisions ofArticle 139-2 of the Investment Trust Act, the terms and conditions for issuance of such investment corporation

bonds such as maturity date, method of redemption, interest rate and method of payment of interest shall beappropriately established in consideration of the status of assets of such investment corporation.

Article 46

Points to Consider concerning the Issuance of Short-Term Investment Corporation Bonds

When a Closed-End Type Investment Corporation issues short-term investment corporation bonds under theprovisions of Article 139-12 of the Investment Trust Act, the conditions for issuance of such short-term
investment corporation bonds, such as the issue value and redemption value thereof, shall be establishedappropriately in consideration of the status of the assets of such investment corporation.

Article 46-2

Points to Consider concerning the Issuance of Investment Equity Subscription Rights

When a Closed-End Type Investment Corporation issues investment equity subscription rights under theprovisions of Article 88-4 of the Investment Trust Act, the conditions of issuance, such as the exercise expiry
date of the said investment equity subscription rights, the amount of money to be contributed upon exercise, orthe calculation method thereof, shall be established appropriately in consideration of the status of the assets ofthe said investment corporation.

Section 2.

Open-End Type Investment Corporation

Article 47

Mutatis Mutandis Application Concerning Method of Calculation for the Base Value ofOpen-End Type Investment Corporation
1.

The provisions of Article 35 shall apply mutatis mutandis to the investment in real estate, etc., andasset-backed securities, etc., of an Open-End Type Investment Corporation. In this case, the term
“Open-End Type Investment Trust” in said article shall be deemed to be replaced with “Open-End Type
Investment Corporation” and the term “Basic Terms and Conditions” in said article shall be deemed to be
replaced with the “Certificate of Incorporation”

2.

The provisions of Article 36 shall apply mutatis mutandis to the calculation of the base value of an
Open-End Type Investment Corporation. In this case, the term “Open-End Type Investment Trust” in the
Article shall be deemed to be replaced with “Open-End Type Investment Corporation” and the term “total
number of units of beneficial interest” in the article shall be deemed to be replaced with “units ofinvestment equity.”

3.

The provisions of Article 42, Article 43-2, Article 43-3 and Article 43-3-2 shall apply mutatis mutandis tothe distribution of profits and description in the explanatory notes in the event of discrepancy between
book and tax accounting of the Open-End Type Investment Corporation. In this case, the term
“Closed-End Type Investment Corporation” in Article 42 and Article 43-2 shall be deemed to be replacedwith “Open-End Type Investment Corporation” and the term “may distribute the entire amount of profits”
in Article 42, Paragraph 1. ” shall be deemed to be replaced with “may distribute the entire amount of
profits or the sum of the amount of profits and the amount of valuation loss or profit on assets held at theend of the accounting period (with regard to real estate, rights of lease of real property and superficies
rights, the amount of the valuation loss or profit on such assets calculated under the provisions of Article 5,

less book value (the amount less depreciation for such accounting period)), whichever is greater. ”
4.

The provisions of Article 29 shall apply mutatis mutandis to the recording of lease revenue of an
Open-End Type Investment Corporation, the provisions of Article 30 shall apply mutatis mutandis to therecording of taxes and levies, and the provisions of Article 32 shall apply mutatis mutandis to therecording of trust management fees.

5.

The provisions of Article 44, Paragraph 2 as applied mutatis mutandis to Article 31 shall apply mutatis
mutandis to the recording of remunerations paid by Open-End Type Investment Corporations.

6.

The provisions of Article 39 shall apply mutatis mutandis to the frequency of calculation of the base valueof an Open-End Type Investment Corporation. In this case, the term “Open-End Type Investment Trust”
in said article shall be deemed to be replaced with “Open-End Type Investment Corporation,” the term“beneficiary” shall be deemed to be replaced with “investor,” and the term “application for additional
establishment or partial early cancellation of investment trust property” shall be deemed to be replacedwith “application for additional issuance of investment equity units or request for refund to the investment
corporation.”

Article 47-2

Refund of Capital Contributions Made by Open-End Type Investment Corporations for

Qualified Institutional Investors
1.

Of the Open-End Type Investment Corporations, an investment corporation that solicits only qualified
institutional investors (as defined in Article 2, Paragraph 3, Item 1 of the FIEA) and issues investment
units that satisfy the requirements as defined in Article 1-4 of the Order for Enforcement of the Financial
Instruments and Exchange Act (Cabinet Order No. 321 of 1965) as those that are not likely to betransferred to persons other than qualified institutional investors (hereinafter referred to as an “Open-End
Type Investment Corporation for Qualified Institutional Investors”) shall be able to make refunds ofcapital contributions up to the amount equivalent to the depreciation expense recorded on the last date of
the accounting period.

2.

In the event of a refund of contributions in accordance with the preceding paragraph, the investment
corporation shall clearly state in the asset management report that the money in question is not a
distribution of profits but a refund of capital contributions, and shall strive to prevent investors from
confusing such money with distributions of profits.

Article 47-3

Special Provisions on Frequency of Calculation of Base Value of Open-End Type

Investment Corporation for Qualified Institutional Investors
Notwithstanding the provisions of Article 47, Paragraph 6, the frequency of calculation of the base value ofOpen-End Type Investment Corporation for Qualified Institutional Investors can be calculated only on the lastdate of each accounting period. In this case, the investors shall be notified promptly after calculating the basevalue.

Article 47-4

Settlement of Foreign Income Taxes of Open-End Type Investment Corporations

An Open-End Type Investment Corporation that has paid foreign income taxes in the country in which its

assets are located during the period shall calculate the following data at the end of the period:(1) Ratio of assets denominated in foreign currencies
The net assets denominated in foreign currencies at the end of the period (the amount obtained bysubtracting the amount of yen-denominated assets from the amount recorded as total assets in thebalance sheet for the relevant accounting period) divided by total net assets of trust property at the endof the period (recorded as total assets in the balance sheet for the relevant accounting period). The upper
limit shall be 1 and maximum one digit of integer with decimal numbers truncated beyond the fourth
decimal place.
(2) Foreign Income Tax per Yen of Distribution
Foreign income taxes during the period (the total amount of foreign income taxes paid by theinvestment corporation from the beginning to the end of the period) divided by the amount of dividends(the amount recorded as the amount of dividends in the statement of cash distributions for the relevant
accounting period.) The upper limit shall be 1 and maximum 1 digit of integer with decimal numbers
truncated beyond the tenth decimal place.
(3) Domestic Income Tax per Yen of Distribution
The amount obtained by dividing the amount of domestic income tax at the end of the period by theamount of dividends (Amount recorded as the amount of cash distributions in the statement of cash
distributions for the relevant accounting period). Maximum one digit of integer with decimal numbers
truncated beyond the tenth decimal place

Article 47-5

Communication on Settlement of Accounts for Foreign Income Taxes of Open-End Type

Investment Corporations
The data calculated in accordance with the provisions of the preceding article shall be communicated to thesales companies on the date the financial statements are approved by the board of officers along with other data
concerning payment of distributions. In this case, if the ratio of assets denominated in foreign currencies is 0,
foreign income tax per yen of distribution shall also be 0.

Article 48
1.

Value of Additional Issuance and Refund of Open-End Type Investment Corporation

When any additional issuance or refund of investment equity units is made based on the requested by theinvestors or the unitholders, such additional issuance or refund shall be made using the base value on thedate of the request from investors and unitholders.

2.

With respect to Open-End Type Investment Corporation for Qualified Institutional Investors to which theprovisions of Article 47-3 have been applied, notwithstanding the provisions of the preceding paragraph,such application shall be made by using the base value of the last date of the accounting period
immediately preceding the date requested by the investor or the unitholder.

Article 48-2

Mutatis Mutandis Application of Considerations concerning Issuance of Investment

Equity Subscription Rights of Open-End Type Investment Corporations
The provisions of Article 46-2 shall apply mutatis mutandis to Open-End Type Investment Corporations. Inthis case, the term “Closed-End Type Investment Corporation” in said article shall be deemed to be replacedwith “Open-End type Investment Corporation.”

Chapter 4:

Miscellaneous Provisions

Article 49

By-laws

Necessary matters for the enforcement of these Rules shall be stipulated in the By-laws.

Article 50

OthersMatters concerning real estate investment trusts and real estate investment corporations that are not stipulated
in these Rules may be determined by a resolution of the Board of Directors.

Article 51
1.

Delegation to Competent Committee

The Board of Directors shall be entitled to delegate to the Self-Regulation Committee the authority toamend any By-laws relating to these Rules.

2.

The Self-Regulation Committee shall promptly report to the Board of Directors, the contents of any
decisions made by the Self-Regulation Committee with respect to any matters delegated thereto (limited
to decisions deemed necessary by the Board of Directors.).

Supplementary Provision
These Rules shall come into effect on March 16, 2001.

Supplementary ProvisionThis amendment shall come into effect on May 24, 2001.

Supplementary ProvisionThis amendment shall come into effect on September 21, 2001.

Supplementary ProvisionThis amendment shall come into effect on April 1, 2004.

Supplementary ProvisionThis amendment shall come into effect on November 18, 2005.

Supplementary ProvisionThis amendment shall come into effect on May 1, 2006.

Supplementary ProvisionThis amendment shall come into effect on February 16, 2007.

Supplementary ProvisionThis amendment shall come into effect on September 30, 2007.

Supplementary ProvisionThis amendment shall come into effect on February 15, 2008.

Supplementary ProvisionThis amendment shall be implemented from the date of approval by the competent authority (March 31, 2008).

Supplementary ProvisionThis amendment shall come into effect on May 16, 2008.

Supplementary ProvisionThis amendment shall come into effect on October 1, 2008.

Supplementary ProvisionThis amendment shall come into effect on March 19, 2009.

Supplementary ProvisionThis amendment shall come into effect on September 16, 2009.

Supplementary ProvisionThis amendment shall come into effect on May 20, 2010.

Supplementary ProvisionThis amendment shall come into effect on December 20, 2012.
* The amended provisions are as follows:
Article 27, Article 28, Article 28-2, Article 28-3, Article 37, Article 42, Article 43, Article 43-2, Article 43-3, Article 47-2
are amended

Supplementary ProvisionThis amendment shall come into effect on January 4, 2013.
* The amended provisions are as follows:
Articles 4 and 51 are amended.

Supplementary Provisions

This amendment shall come into effect on May 15, 2014.
However, the application of the amended provisions to the investment trust property or investment corporation
whose accounting period or business year has commenced on the effective date may be made from thecommencement of a new accounting period or business year.
* The amended provisions are as follows:
Article 24-5 is amended.

Supplementary Provisions
This amendment shall come into effect on December 1, 2014 and shall apply to investment corporations thatcommence their business period before the effective date and end their business period after the effective date.
* The amended provisions are as follows:
Article 46-2 and Article 48-2 are newly established.

Supplementary Provisions
1. This amendment shall come into effect as of the effective date (April 1, 2015) of the revised Accounting
Regulation for Investment Corporation (referred to as the “New Ordinance on Investment Corporation’s
Financial Statements” in Paragraph 3).
2. With respect to the calculation of profit distributions and the financial statements to be prepared for thebusiness period of an investment corporation that commenced prior to the effective date of these revised
rules, the provisions then in force shall remain applicable.
3. If any amount of voluntary reserves and unappropriated retained earnings shown on the balance sheet
pertaining to the business period which includes the effective date thereof (excluding any amountappropriated as cash distribution for the current business period) is subdivided into profits arising fromnegative goodwill set forth in Article 48, Paragraph 3 of the Ordinance on Investment Corporation’s
Financial Statements prior to amendment during any business period prior to such business period, suchamount shall be set aside as reserve for temporary difference adjustments in the statement of cash
distribution for any business period ending on the date on which two years have passed since the effective
date of the New Ordinance on Investment Corporation’s Financial Statements.
4. With regard to the application of the provisions of Article 12-2 until the time the reserve for temporary
difference adjustments is set aside in accordance with the preceding paragraph, the provisions then in force
shall remain applicable.
* The amended provisions are as follows:(1) Articles 12-2 and Paragraph 2 of Article 43 are deleted.
(2) Amended Articles 27, 28, 37, Paragraph 1 of Article 42, Paragraph 1 of Article 43, Article 43-4, Article 43-5, andParagraph 3 of Article 47.
(3) Newly established Paragraph 2 of Article 42 and Article 43-3-2.
(4) Newly established Articles 43-2 and 43-3, and the former Articles 43-2 and 43-3 were shifted to Articles 43-4 and 43-5.

Supplementary Provisions

This amendment shall come into effect on July 16, 2015.
* The amended provisions are as follows:
Amended Article 1; Article 3, Paragraph 1; Article 3, Paragraph 3, Item 3; Article 3, Paragraph 4; Article 3, Paragraph 7;
Article 8; Article 16; Article 17, Items 2 and 4; Article 18, Paragraph 1; Article 21; Article 24, Paragraph 3; Article 24-3;
Article 39; and Article 47, Paragraph 6.

Supplementary Provisions
This amendment shall come into effect on March 9, 2017.
Provided, however, that if such amendment is accompanied by a change in the Certificate of Incorporation,such amendment shall be applied on or after the date of amendment of the Certificate of Incorporation for the
relevant investment corporation.
* The amended provisions are as follows:(1) Article 3, Paragraph 2, Item 10 and Article 6, Paragraph 1, Item 7 are newly established.
(2) Amended Article 6, Paragraph 1, Items 1 and 6, and Paragraph 2 of the same article

Supplementary Provisions
This amendment shall come into effect on January 1, 2020 and shall apply to any investment corporation fromwhich the unit holders receive distributions on or after that date.
* The amended provisions are as follows:
Articles 42-2, Article 42-3, Article 47-4 and Article 47-5 are newly establishedSupplementary ProvisionThis amendment shall come into effect on March 31, 2021.
* The amended provisions are as follows:
Articles 19 and 20 are amended. Deleted the proviso of Article 22.

By-laws on Rules on Real Estate Investment Trusts and Real Estate Investment
Corporations
Established on March 19, 2004
Revised on November 18, 2005
Revised on February 14, 2006
Revised on April 11, 2006
Revised on September 21, 2007
Revised on September 16, 2009
Revised on December 20, 2012
Revised on May 21, 2015

Article 1

Purpose

These By-laws set forth necessary matters regarding the enforcement of the Rules on Real Estate Investment
Trusts and Real Estate Investment Corporations (hereinafter referred to as the “Rules”).

Article 2

Methods for Valuing Real Estate, etc.

The valuation method specified in the By-laws as prescribed in Article 6, Paragraph 2 of the Rules shall be amethod whereby a Settlor Company of Investment Trusts (hereinafter referred to as the “Management
Company”) shall value each asset comprising such assets based on the total amount of the values calculated
under the provisions of Article 5, Article 7, Paragraph 1 and Article 8 of the Rules, corresponding to the type ofeach asset.

Article 3

Appraised Value of Asset-Backed Securities

The valuation method specified in the By-laws as prescribed in Article 7, Paragraph 2 of the Rules shall be thetotal amount of the values calculated by a Settlor for each asset comprising such assets under the provisions ofArticle 5, Article 6, Paragraph 1, Article 7, Paragraph 1 and Article 8 of the Rules, corresponding to the type ofeach asset.

Article 4

Capital Expenditure

The capital expenditure specified in the By-laws as prescribed in Article 24 of the Rules shall be capital
expenditure that is equivalent to 1% or more of the acquisition book value of each individual property held by
the real estate investment trust or real estate investment corporation.

Article 5Internal Rules, etc. for Closed-End Type Investment Trusts

The matters to be specified in the By-laws as prescribed in Article 28-2, Item 2 of the Rules shall be as follows:(1) Separate disclosure of profit distribution and refund of investment principal(2) Process for deciding on the implementation of refund of investment principal(3) Approach to implementation of refund of investment principal(4) Matters to be taken into consideration when implementing the refund of investment principal ((i)
Matters affecting cash flow such as medium- to long-term capital needs such as long-term repair plans,etc., (ii) Other necessary matters))

Article 5-2

Internal Rules, etc. for Closed-End Type Investment Corporations

The matters to be specified in the By-laws as prescribed in Article 43-4, Item 2 of the Rules shall be as follows:(1) Separate disclosure of profit distribution and refund of capital contributions categorized as distribution
for reduction of capital contributions, etc., under the Tax Act(2) Process for deciding on the implementation of refund of capital contributions categorized as
distribution for reduction of capital contributions, etc., under the Tax Act(3) Approach to the implementation of refund of capital contributions categorized as distribution for
reduction of capital contributions, etc., under the Tax Act(4) Matters to be taken into consideration when implementing the refund of capital contributions
categorized as distribution for reduction of capital contributions, etc., under the Tax Act ((i) Mattersaffecting cash flow such as medium- to long-term capital needs such as long-term repair plans, etc., (ii)
Other necessary matters))

Article 6

DeletedSupplementary Provision
These By-laws shall come into effect on April 1, 2004.

Supplementary ProvisionThis amendment shall come into effect on November 18, 2005.

Supplementary ProvisionThis amendment shall come into effect on February 14, 2006.

Supplementary ProvisionThis amendment shall come into effect on May 1, 2006.

Supplementary ProvisionThis amendment shall come into effect on September 30, 2007.

Supplementary ProvisionThis amendment shall come into effect on September 16, 2009.

Supplementary ProvisionThis amendment shall come into effect on December 20, 2012.

Supplementary Provisions
1. This amendment shall come into effect as of the effective date (April 1, 2015) of the Revised on Regulation
for Investment Corporation Financial Statements (hereinafter referred to as the “New Regulation for
Investment Corporation Financial Statements” in Paragraph 3).
2. With respect to the calculation of profit distribution and the financial statements to be prepared for aninvestment corporation’s business period that commenced prior to the effective date of these Revised on
By-laws, the provisions then in force shall remain applicable.
3. If any amount of voluntary reserves and unappropriated retained earnings shown on the balance sheet
pertaining to the business period which includes the effective date thereof (excluding any amountappropriated as cash distribution for the current business period) is subdivided into profits arising fromnegative goodwill set forth in Article 48, Paragraph 3 of the Ordinance on Investment Corporation’s
Financial Statements prior to amendment during any business period prior to such business period, suchamount shall be set aside as reserve for temporary difference adjustments in the statement of cash
distribution for any business period ending on the date on which two years have passed since the effective
date of the New Ordinance on Investment Corporation’s Financial Statements.
4. With respect to application of the provisions of Article 6 up to the time when the reserve for temporary
difference adjustments is set aside in accordance with the preceding paragraph, the provisions then in force
shall remain applicable.
* The amended provisions are as follows:(1) Article 5-2 has been amended.
(2) Article 6 and Attached Form No. 1 have been deleted.

Rules on Infrastructure Investment Trusts and Infrastructure Investment
Corporations
Established on July 16, 2015
Revised on May 18, 2017

Chapter 1:
Article 1

General Provisions
PurposeThe purpose of the Rules is to prescribe the necessary matters for the settlor companies of investment trusts(meaning settlor companies of investment trusts as defined in Article 2, Paragraph 11 of the Act on Investment
Trusts and Investment Corporations (Act No. 198 of 1951; hereinafter referred to as the “Investment TrustAct”) and asset management companies as defined in Paragraph 21 of the same article) and trust companies thatare trustees of investment trusts managed without instructions from the settlor (hereinafter referred to as the“Operating Company”) to properly execute their business pertaining to infrastructure investment trusts andinfrastructure investment corporations (hereinafter referred to as “IIT, etc.”), to ensure the smooth
implementation of the system pertaining to IIT, etc., and to protect investors.

Article 2
1.

Basic Principles for Management

The Operating Company must conduct business pertaining to the direction of management or the
management (hereinafter referred to as “Management, etc.”; the same shall apply hereinafter in this article
and the following article) of the assets of an infrastructure investment trust or the assets of an
infrastructure investment corporation ( hereinafter referred to as “Trust Property, etc.”) with loyalty andthe due care of a prudent manager, and in the interest of the investment trust’s beneficiaries or theinvestment corporation.

2.

When managing Trust Property, etc., the Operating Company shall be in compliance with the Financial
Instruments and Exchange Act (Act No. 25 of 1948; hereinafter referred to as the “FIEA”), and theInvestment Trust Act and other laws and regulations, as well as the various rules of this Association, andshall give consideration to protecting investors.

Article 2-2

System for Management of Trust Property, etc.

The Operating Company shall manage the Trust Property, etc. independently, and no party other than the
Operating Company (excluding a party to whom the authority to make investments in whole or in part has beendelegated under Article 42-3 of the FIEA and a party to whom the authority to make investments in part has
been delegated under Article 55 of the Investment Trust Act) shall be involved in the Management, etc. of theTrust Property, etc.

Article 3
1.

Definition

The term “Renewable Energy Power Generation Facilities” as used in the Rules means those specified inArticle 3, Item 11 of the Order for Enforcement of the Act on Investment Trusts and Investment
Corporations (Cabinet Order No. 480 of 2000 (hereinafter referred to as the “Cabinet Order”)).
2.

The term “Rights to Operate Public Facilities, etc.” as used in the Rules means the rights specified in
Article 3, Item 12 of the Cabinet Order.

3.

The term “Infrastructure Investment Trust” as used in the Rules means an investment trust that is
stipulated in its Investment Trust Basic Terms and Conditions (hereinafter referred to as the “Basic Terms
and Conditions”) that it aims to manage an amount exceeding one half of the total amount of the assets of
the investment trust as investments in infrastructure assets, etc. and infrastructure-related assets, and theterm “Infrastructure Investment Corporation” means an investment corporation that is stipulated in its
Certificate of Incorporation of Investment Corporation (hereinafter referred to as an “Certificate ofIncorporation”) that aims to manage an amount exceeding one half of the total amount of the assets of theinvestment corporation as investments in infrastructure assets, etc. and infrastructure-related assets.
However, when determining the amount exceeding one half of its relevant amounts in an
Infrastructure Investment Corporation, in cases where out of the infrastructure assets defined in Paragraph
4, the “Renewable Energy Power Generation Facilities” exceed one half of the total amount of aninvestment corporation’s assets, then from the perspective of satisfying the conduit requirements for tax
purposes and the likelihood of cash flow generation, this shall be limited to certified power generation
facilities as defined in Article 2, Paragraph 5 of the Act on Special Measures Concerning Procurement ofElectricity from Renewable Energy Sources by Electricity Utilities (Act No. 108 of 2011). This shallapply only to those investment units that were offered to the public through a public offering at the time of
the investment corporation’s establishment or are listed on a stock exchange, and for which the Certificate
of Incorporation states that the Renewable Energy Power Generation Facilities’ method of operation shallbe leasing only.
In the case of Infrastructure Investment Corporations, in order to satisfy the conduit requirements
for tax purposes, the relevant one half limit relating to the infrastructure assets defined in Paragraph 4 shallnot be exceeded with “Rights to Operate Public Facilities, etc.” alone.
In the case of IIT, etc., if assets are managed only as investments in “assets designated by the
Self-Regulation Committee,” the relevant one half limit relating to the infrastructure assets defined in
Paragraph 4 shall not be exceeded with “assets designated by the Self-Regulation Committee” (excluding
the assets falling under the specific assets alone.

4.

The term “Infrastructure Assets” as used in the Rules means “Renewable Energy Power Generation
Facilities” and “Rights to Operate Public Facilities, etc.” as well as assets designated by the
Self-Regulation Committee.

5.

The term “Infrastructure Assets, etc.” as used in the Rules means the following assets:(1) Infrastructure Assets(2) The following assets associated with Infrastructure Assets: Land and buildings, leasehold rights to landand buildings, superficies rights to land, easement rights to land, and assets stipulated in Article 37,
Paragraph 3, Item 2 (f) of the Ordinance on Accountings of Investment Corporations (Cabinet Office
Ordinance No. 47, April 20, 2006; hereinafter referred to as the “Ordinance on Investment

Corporation’s Financial Statements”).
(3) Beneficial interests in trusts that entrust the assets listed in Item 1 and Item 2.
(4) Beneficial interests in money trusts for the purpose of managing as investments for the assets listed in
Items 1 and 2.
(5) Assets in foreign countries similar to those set forth in the preceding four items.
6.

The term “Infrastructure-related Assets” as used in the Rules means the following assets:(1) Shares, etc. (limited to those issued by unlisted companies that directly or indirectly own Infrastructure
Assets, etc., and where the unlisted company’s assets associated with Infrastructure Assets, etc. accountfor the majority of the assets held by the unlisted company)(2) Equity in investment under a contract whereby one party contributes equity for the purpose of having
the other party invest an amount exceeding one half of the contributed assets directly or indirectly in
Infrastructure Assets, etc., and the other party undertakes to invest an amount exceeding one half of thecontributed assets directly or indirectly in Infrastructure Assets, etc. and to distribute profits arisingfrom such investment.
(3) Beneficial interests in money trust whose trust assets are to be managed primarily as investments in theassets listed in Item 2.
(4) Preferred equity securities as defined in the Act on Securitization of Assets (limited to those for which
the special-purpose entity who is the issuer of such preferred equity securities invests more than one
half of its assets in Infrastructure Assets, etc.)(5) Investment trust beneficiary certificates (limited to those in which an amount exceeding one half of thetotal amount of the Investment Trust’s assets in the relevant investment trust is managed as investments
in Infrastructure Assets, etc.)(6) Investment securities (limited to those for which an amount exceeding one half of the assets held by theInvestment Corporation for investment are managed as investments in Infrastructure Assets, etc.)(7) Beneficiary certificates of a special-purpose trust as defined in the Act on Securitization of Assets(limited to those for which an amount exceeding one half of the assets held by said special purpose trustis managed as investments in Infrastructure Assets, etc.)(8) Rights under the laws and regulations of a foreign country and securities issued by a foreign party thathave the nature of the rights and securities listed in Items 1 through 7.

7.

In this Rule, the term “amount exceeding one half of the assets of investment trust property or investment
corporation” means, in principle, the amount exceeding one half of the amount obtained by adding or
subtracting valuation profit or loss on Infrastructure Assets, etc., Infrastructure-related Assets, and otherassets from the total assets of the relevant IIT, etc., and deducting security deposits or guarantee money(hereinafter referred to as “security deposits, etc.”) temporarily deposited in the IIT, etc. in question.

8.

The term “Listed” as used in the Rules means any of the following:(1) Securities which can be traded in the financial instruments market set up by the securities exchangelicensed and established under the provisions of Article 80 of the FIEA.
(2) Securities registered in the Registry of Over-the-Counter Traded Securities maintained by the Japan
Securities Dealers Association established with approval under the provisions of Article 67-2 of the

FIEA
9.

The term “Unlisted” as used in the Rules means those not falling under any of the categories specified in
the items of the preceding paragraph.

10. The term “Open-End Type Investment Trust” as used in the Rules means an Investment Trust for which
the Basic Terms and Conditions stipulate that an additional trust may be created for the investment trust
assets at the request of an investor or that the investment trust assets may be partially cancelled at therequest of a beneficiary for each specific period.
11. The term “Open-End Type Investment Corporation” as used in the Rules means an Investment
Corporation for which its Certificate of Incorporation stipulates that it shall issue investment equity at thefair value in light of the nature of the assets of the Investment Corporation or that it shall make partial
repayments of its investment equity in response to a request for partial repayment from an investor.
12. The term “Closed-End Type Investment Trust” as used in the Rules means an Investment Trust for which
the Basic Terms and Conditions stipulate that it will not accept requests for cancellation of investment
trust assets from beneficiaries, except for purchase by exercising beneficiaries’ right to request purchaseas prescribed in Article 18 of the Investment Trust Act (including cases where it is applied mutatis
mutandis under Article 20 and Article 54 of the same Act.)
13. The term “Closed-End Type Investment Corporation” as used in the Rules means an Investment
Corporation for which its Certificate of Incorporation stipulates that it will not respond to requests forrefund of investment equity, except for withdrawal of investment equity based on the exercise ofinvestors’ right to request withdrawal as prescribed in Article 141, Paragraph 1 of the Investment Trust
Act or Article 149-3, Paragraph 1 of the same Act.

Article 4

General Rules on Accounting for IIT, etc.

Accounting procedures for IIT, etc. shall be handled in accordance with the Ordinance on Accountings ofInvestment Trust Property (Cabinet Office Ordinance No. 133 of 2000; hereinafter referred to as the“Ordinance on Accountings of Investment Trust’s Financial Statements”), the Ordinance on Investment
Corporation’s Financial Statements, the Regulation, other rules established by the Association, and thegenerally accepted business accounting standards.

Article 4-2

Proper Management of Documents

The Operating Company must appropriately retain and manage the sales contracts for the properties held by the
IIT, etc. for which it undertakes the asset management business (hereinafter referred to as the “Entrusted IIT,etc.”), appraisal reports obtained from third parties, contracts with work order parties, and other documents
necessary for the proper execution of its entrusted duties.

Article 5
1.

Valuation of Infrastructure Assets and Real Estate HeldThe valuation method to be used for calculating the fair value of Infrastructure Assets, the assets set forthin Article 3, Paragraph 5, Item 2 (hereinafter referred to as “Land, Buildings, etc. Associated with
Infrastructure Assets”) and Real Estate, etc. (meaning real estate set forth in Article 3, Paragraph 2,

Item 1 of the Rules on Real Estate Investment Trusts and Real Estate Investment Corporations (hereinafterreferred to as the “Rules on REIT, etc.”), rights of lease of real property as defined in Item 2 of the same
Paragraph of the same Article, and superficies rights as defined in Item 3 of the same Paragraph of thesame Article; the same shall apply hereinafter) held by IIT, etc. shall be the valuation method deemed
appropriate for each of the assets set forth in the following items, which shall be stipulated in the Basic
Terms and Conditions or Certificate of Incorporation, and valuation shall be conducted using such method.
However, this shall not apply to IIT, etc. for private placement (meaning private placement as defined in
Article 2, Paragraph 3 of the FIEA; the same shall apply hereinafter).
(1) Appraised value based on appraisal by a real estate appraiser(2) Appraised value by a certified public accountant(3) Appraised value based on actual transactions of the similar properties in the neighborhood(4) An amount adjusted to be reduced based on the amount that would be required if the property is
re-procured at that time (limited to cases where a building is being valued.)(5) Value calculated by the capitalization method (DCF method or direct capitalization method)(6) Any combination of the valuation methods listed in the preceding items
2.

In principle, the valuation methods stipulated in the Basic Terms and Conditions or Certificate ofIncorporation based on the provision in the preceding paragraphs shall not be changed in accordance withthe principle of consistency.
However, if the valuation method adopted is no longer appropriate due to legitimate reasons, and if
it can be reasonably determined that there are no problems in terms of investor protection, the valuation
method may be changed to another method.

3.

When the valuation method specified in the Basic Terms and Conditions or Certificate of Incorporation
has been changed based on the provisions of the proviso to the preceding paragraph, the following mattersshall be stated in the management report or asset management report (hereinafter referred to as the“Management Report, etc.”) pertaining to the report preparation period which includes the date on which
the valuation method was changed.
(1) Facts and date of change in valuation method(2) Specific details of the valuation method used before the change (hereinafter referred to as the“Pre-Change Valuation Method”) and the valuation method after the change (hereinafter referred to as
the “Post-Change Valuation Method”)(3) Appraised value based on the Pre-Change Valuation Method and the Appraised Value based on the
Post-Change valuation Method at the end of the accounting period(4) Specific reasons for the change in the valuation method(5) Other matters necessary for investor protection

Article 6

Valuation of Infrastructure-related Assets, etc.

The provisions of Article 6 and Article 7 of the Rules on REIT, etc. shall apply mutatis mutandis to thevaluation of Infrastructure Assets, etc. and Infrastructure-related Assets other than those listed in the precedingarticle held by IIT, etc. (excluding those listed in Article 3, Paragraph 6, Item 1 as well as those listed in Item 8that have the nature of the rights and securities stipulated in Item 1).
In this case, “REIT, etc.” shall be deemed to be replaced with “IIT, etc.,” “Real Estate” shall be deemed to be
replaced with “Infrastructure Assets,” and “silent partnership operator” shall be deemed to be replaced with“silent partnership operator, certified public accountant or real estate appraiser.”* Article 2 of the By-Laws

Article 7

Valuation of Other Assets

The valuation of assets other than those specified in Article 5 and Article 6 shall be made in accordance with therespective asset valuation methods specified in the Rules for Valuation and Accounting of Investment Trust
Properties. However, when it is difficult to valuate by such method, it shall be valuated in accordance withgenerally accepted corporate accounting standards and other accounting practices

Article 8
1.

Preparing an Asset Management Plan

In managing IIT, etc., the Operating Company shall prepare an asset management plan for each IIT, etc.,
and shall endeavor to manage such investment in accordance with this plan.

2.

The asset management plan provided in the preceding paragraph shall contain the following matters:(1) The period scheduled for the asset management plan(2) Investment management policy for IIT, etc.
(3) Attributes of Infrastructure Assets, etc. and Infrastructure-related Assets to be assumed for the subjectof investment management(4) Valuation method of assets held
(5) Replacement criteria for Infrastructure Assets held, etc. and Infrastructure-related Assets Held
(6) Policy for formulating a long-term repair plan for Infrastructure Assets held, Land and Buildings, etc.
Associated with Infrastructure Assets, and Real Estate, etc.; total amount of estimated reserves forlong-term repair plans for Infrastructure Assets held, land and buildings, etc. Associated with
Infrastructure Assets, and Real Estate, etc. during the accounting period as well as the amount of
estimated reserves for each accounting period.
(7) Planning policy of plans associated with borrowing and repayment of funds (including plans forissuance and redemption of investment corporation bond certificates (including book-entry transfer
investment corporation bonds; the same shall apply hereinafter))Furthermore, the current plan for borrowing and repayment of funds shall be included as
reference information.
(8) If the asset management plan is revised, the date of such revision and the specific reasons for such
revision(9) Other matters deemed necessary for protection of investors

3.

The period stipulated in Item 1 of the preceding paragraph shall be a period of 10 years or more, which isdeemed appropriate in light of the product attributes of the said IIT, etc.
However, as for IIT, etc., for which the Basic Terms and Conditions or Certificate of Incorporation
stipulate the trust period or the duration of less than 10 years, this period shall be the said trust period orthe duration.

Article 9

Public Inspection of Asset Management Plan

The Operating Company shall keep the asset management plan prepared in accordance with the provisions of
the preceding article at its main head office and branch offices, and make it available for public inspection by
beneficiaries or investors when requested by beneficiaries or investors of the said IIT, etc.

Article 10
1.

Disclosure of Long-Term Repair Plan, etc.

The Operating Company shall state in its Management Reports, etc. relating to IIT, etc. the amountaccumulated at the end of each accounting period based on the long-term repair plans, etc. related toInfrastructure Assets held, Land and Buildings, etc. Associated with Infrastructure Assets, and Real Estate,etc. as set forth in Article 8, Paragraph 2, Item 6 for each accounting period for a period not less than five
years prior to the end of such accounting period.

2.

For IIT, etc. for which the investment management period or duration is less than five years from the dateof establishment, the amount accumulated during the period from their establishment to the final day of
the relevant accounting period shall be stated for each accounting period, notwithstanding the provisionsof the preceding paragraph.

Article 11

Depreciation of Infrastructure Assets Held, Land and Buildings, etc. Associated with

Infrastructure Assets, and Real Estate, etc.
1.

The amount of depreciation of Infrastructure Assets held, Land and Buildings, etc. Associated with
Infrastructure Assets, and Real Estate, etc. shall be calculated by the straight-line method for buildings(excluding attached facilities) and by the straight-line method or the declining balance method forequipment, etc.
The method of calculating the amount of depreciation of equipment, etc., shall be specified in the
Basic Terms and Conditions or Certificate of Incorporation.

2.

Based on the provisions of provisory clause in the preceding paragraph, no changes shall be made to themethod of calculating the amount of depreciation of equipment, etc., specified in the Basic Terms andConditions or Certificate of Incorporation.
However, if the calculation method adopted is no longer appropriate, and if it can be reasonably
determined that there are no problems in terms of investor protection, the calculation method may bechanged to another method.

3.

The provision of Paragraph 3 of Article 5 shall apply mutatis mutandis to any change in the method of
calculation of the amount of depreciation in accordance with the provision of the preceding paragraph. In
this case, the terms “valuation method,” “Pre-Change Valuation Method” and “Post-Change Valuation
Method” in the same paragraph shall be deemed to be replaced with “calculation method,” “Pre-Change
Calculation Method” and “Post-Change Calculation Method” respectively.

Article 12

Amendment of Book Values of Infrastructure Assets, etc. and Infrastructure-related Assets

Held as of the End of the Accounting Period
The Operating Company shall amend the book value of Infrastructure Assets, etc. and Infrastructure-related
Assets held at the end of the accounting period to the amount obtained by deducting the amount of depreciation
calculated by the calculation method stipulated in the Basic Terms and Conditions or Certificate ofIncorporation based on the provision of the preceding article from the amount at the beginning of theaccounting period.

Article 13
1.

Correction of Book Value of Securities Held at End of Accounting Period

The Operating Company shall re-value the trading securities held at the end of the accounting period to themarket value and amend the book value, and shall add the gain on revaluation of securities to the gains on
securities transactions, and add the loss on revaluation of securities to losses on securities transactions
respectively.

2.

Other securities held shall be recorded as valuation and translation differences, etc., as stipulated in Article
20, Paragraph 5 of the Ordinance on Investment Trust’s Financial Statements, or Article 39, Paragraph 6of the Ordinance on Investment Corporation’s Financial Statements, in the amount calculated bydeducting the book value of such securities from the amount valuated by the method stipulated in theseRules at the end of the accounting period.

Article 14

Calculation of the Useful Life of Infrastructure Assets Held, Land and Buildings, etc.

Associated with Infrastructure Assets, and Real Estate, etc.
The useful life of Infrastructure Assets held, Land and Buildings, etc. Associated with Infrastructure Assets,
and Real Estate, etc. shall be properly established in consideration of the following matters:(1) Status of acquisition (Number of years elapsed before acquisition, etc.)(2) Status of implementation or schedule of repairs, etc.
(3) Structure of the Infrastructure Assets, Land and Buildings, etc. Associated with Infrastructure Assets,
and Real Estate, etc.
(4) Useful life under Article 56 of the Order for Enforcement of the Corporation Tax Act (Cabinet Order No.
97 of 1965) and the Ministerial Ordinance on Useful Life, etc. of Depreciable Assets (Ministerial
Ordinance No. 15 of 1965)

Article 15

Other Asset Management Methods

In the case of holding assets other than Infrastructure Assets, etc. and Infrastructure-related Assets, the methodof management for such assets shall be as prescribed in the Rules on Management of Investment Trusts, etc.
and the Rules on REIT, etc.

Article 16

Restrictions on Beneficiary Certificate of Investment Trusts, etc.

When beneficiary certificates other than investment trust beneficiary certificates as prescribed in Article 3,
Paragraph 6, Item 5 or investment securities other than investment securities as prescribed in Article 3,
Paragraph 6, Item 6 are incorporated in the IIT, etc., such incorporation shall be limited to cases where thefollowing requirements are satisfied:(1) The total amount of securities held by any one IIT, etc. (excluding the securities specified in Article 3,
Paragraph 5 and Paragraph 6), including beneficiary certificates of investment trusts and investment
certificates, is less than 50% of the total amount of assets of the IIT, etc. in question.
(2) The amount invested by any one Operating Company in any one Investment Trust or Investment
Corporation is, of the total of the investment trust assets managed by the Operating Company and theassets of the Investment Corporation of which the management is entrusted, less than 50% of theinvestment trust to be incorporated or the total issued amount of investment trust beneficiary certificatesor investment securities issued by an Investment Corporation.
(3) They are not investment trust beneficiary certificates or investment securities held mutually or incirculation between Investment Trusts or Investment Corporations.
(4) The investment trust beneficiary certificates or the investment securities satisfy the requirements as set
forth in the following sub-items (a) and (b):(a) They are not beneficiary certificates of an investment trust that the Operating Company manages foritself, or the investment securities of investment corporations entrusted(b) They are not investment trust beneficiary certificates or investment securities of Investment
Corporations that are primarily intended to be invested in other investment trust beneficiary
certificates or investment securities, except for Funds of Funds as defined in the Rules on
Management of Investment Trusts, etc.

Article 17
1.

Borrowing of Funds

The borrowing of funds for IIT, etc. shall be limited to cases where such borrowing is necessary for the
management of the Trust Property, etc., and shall be carried out with due consideration of the soundness of
the investment trust property or investment corporation assets in question.

2.

In the event that the Operating Company has borrowed funds for the Infrastructure Investment, etc., theOperating Company shall state the following matters for each such borrowing in the Management Report,
etc. for the relevant accounting period.
(1) Reasons for borrowing(2) Date of borrowing(3) Amount of borrowing(4) Lender(5) If the assets held are pledged, the name and appraised value of the assets pledged as collateral(6) Interest rate for borrowing(7) Method of repayment(8) Repayment period

Article 18

Timing of Recording of Profits and Losses on Sale and Purchase of Infrastructure Assets Held,Land and Buildings, etc. Associated with Infrastructure Assets, and Real Estate, etc.
Trading profit or loss by the sale and purchase of Infrastructure Assets, Land and Buildings, etc. Associatedwith Infrastructure Assets, and Real Estate, etc. shall be recorded on the contract date or the delivery date.

Article 19

Timing of Recording of Key Money, etc. Arising from Lease Agreements for Infrastructure

Assets Held, Land and Buildings, etc. Associated with Infrastructure Assets, and Real Estate, etc.
With respect to key money or premium (hereinafter referred to as “Key Money, etc.”) arising from lease
contracts for Infrastructure Assets held, Land and Buildings, etc. Associated with Infrastructure Assets, andReal Estate, etc., when it is determined that the key money, etc. will not be returned to the lessee, etc. theamount of Key Money, etc. that is determined not to be returned shall be recorded as revenues.

Article 20

Security Deposits, etc. Arising from Lease Agreements for Infrastructure Assets Held, Land

and Buildings, etc. Associated with Infrastructure Assets, and Real Estate, etc.
For security deposits, etc. temporarily deposited in the trust property or assets of IIT, etc., such amount shall berecorded in the assets section and the amount equivalent to such amount shall be recorded in the liabilities
section as repayment obligations.

Article 21

Repair Expenses for Infrastructure Assets Held, Land and Buildings, etc. Associated with

Infrastructure Assets, and Real Estate, etc.
When repairs (excluding capital expenditures; the same shall apply hereinafter) are occurred to Infrastructure
Assets held, Land and Buildings, etc. Associated with Infrastructure Assets, and Real Estate, etc., the costs ofsuch repairs shall be recorded on the date of completion of the repairs.
If the cost is not finalized on the date of completion of such repairs, it shall be recorded on the date when thecost is finalized.

Article 22

Capital Expenditures for Infrastructure Assets Held, Land and Buildings, etc. Associated with

Infrastructure Assets, and Real Estate, etc.
In the event that capital expenditures are made for Infrastructure Assets held, Land and Buildings, etc.
Associated with Infrastructure Assets, and Real Estate, etc., during the accounting period, the amountequivalent to the cost required for such capital expenditures shall be added to the book value of such
Infrastructure Assets held, Land and Buildings, etc. Associated with Infrastructure Assets, and Real Estate, etc.
at the end of the preceding accounting period.

Article 23

Disclosure of Capital Expenditures for Infrastructure Assets Held, Land and Buildings, etc.

Associated with Infrastructure Assets, and Real Estate, etc.
1.

When the implementation plan for capital expenditures (excluding capital expenditures that can berecorded as deductible expenses for repair reserves, etc.) as specified in the By-laws has been finalized forInfrastructure Assets held, Land and Buildings, etc. Associated with Infrastructure Assets, and Real Estate,etc., the following matters shall be stated in the Management Report, etc., and a prospectus delivered toinvestors prior to the execution of such capital expenditures.
(1) Name and location of Infrastructure Assets, Land and Buildings, etc. Associated with Infrastructure

Assets, and Real Estate, etc. on which capital expenditure is to be made(2) Purpose of capital expenditure(3) Scheduled period(4) Estimated amount(5) The estimated increase in the book value of the said Infrastructure Assets, Land and Buildings, etc.
Associated with Infrastructure Assets, and Real Estate, etc. after the capital expenditures
2.

When it becomes necessary to make capital expenditures for Infrastructure Assets held, Land andBuildings, etc. Associated with Infrastructure Assets, and Real Estate, etc. due to a natural disaster orsimilar event, public notice to that effect shall be given promptly in the manner set forth in the Basic
Terms and Conditions etc., and the matters set forth in the items of the preceding paragraph shall be statedin the Management Report, etc., for the accounting period to which the day it becomes necessary to makecapital expenditures belongs.

3.

The provision of Paragraph 1 shall apply correspondingly to cases where an implementation planpertaining to capital expenditures is completed. In this case, the phrase “when the implementation plan has
been finalized” in the main clause of Paragraph 1 shall be read as “when the implementation plan iscompleted” and the phrase “prior to the execution” in the main clause of Paragraph 1 shall be read as “after
the execution,” the phrase “Infrastructure Assets, Land and Buildings, etc. Associated with Infrastructure
Assets, and Real Estate, etc. on which capital expenditures are to be made” in Item 1 of the same
paragraph shall be read as “Infrastructure Assets, Land and Buildings, etc. Associated with Infrastructure
Assets, and Real Estate, etc. on which capital expenditures were made,” the phrase “purpose of capital
expenditure” in Item 2 shall be read as “purpose for which capital expenditures were made,” the phrase“scheduled period” in Item 3 shall be read as “period,” the phrase “estimated amount” in Item 4 shall beread as “amount,” and the phrase “estimated increase” in Item 5 shall be read as “increase.”* Article 3 of the By-laws

Article 24

Restrictions on Countries and Regions Subject to Investment

When the Operating Company gives instructions for the acquisition of Infrastructure Assets, etc. locatedoutside Japan or Infrastructure-related Assets whose principal investment target is Infrastructure Assets, etc.
located outside Japan (hereinafter referred to as “Overseas Infrastructure-related Assets, etc.”) for the purposeof managing the Entrusted IIT, etc., the local country/region where the said assets are located must meet thefollowing requirements:(1) Legal systems, etc. are in place to properly secure the right to use, make profits and dispose of Overseas
Infrastructure-related Assets, etc.
(2) Registration systems, etc. are in place such that the content of the rights pertaining to Overseas
Infrastructure-related Assets, etc. may be asserted against third parties.
(3) Legal systems, etc. are in place to ensure the proper execution and performance of transaction contracts
relating to Overseas Infrastructure-related Assets, etc.
(4) The rate of exchange for the currency to be used in the transaction shall be properly published and may
be converted into Japanese currency if necessary without delay.

(5) An environment that allows for the proper settlement and remittance of funds shall be in place.
(6) A dispute resolution system such as a court system shall be in place.

Article 24-2

Matters to Be Observed Involving Acquisition of Overseas Infrastructure-related Assets, etc.

When giving instructions for the acquisition of Overseas Infrastructure-related Assets, etc. by the Entrusted IIT,
etc., the Operating Company shall comply with the conditions listed in the following items in order to protect
beneficiaries and investors.
(1) The same level of investigation shall be conducted as when acquiring assets in Japan.
(2) On the basic data such as appraisal reports, these shall have same level of information detail andaccuracy as those obtained when acquiring assets in Japan.
(3) Take necessary measures for appropriate management and collection of leases, etc., such as selecting a
local agent in accordance with the actual circumstances of the local countries and regions.
(4) Take necessary measures to properly obtain information on the local countries, regions, and theproperty.

Article 24-3

Establishment of Internal Systems regarding Operating Companies of Investment

Corporations that Invest in Overseas Infrastructure-related Assets, etc.
When giving instructions for the acquisition of Overseas Infrastructure-related Assets, etc. by the Entrusted IIT,
etc., the Operating Company must establish and upgrade the internal system that enables it to appropriately
carry out the matters listed in the following items:(1) Disclosure of information on Overseas Infrastructure-related Assets, etc. and the local
countries/regions.
(2) Retention in Japan of records of business communications, etc., with asset management companies, etc.,
in local countries and regions.
(3) Acquisition of information from the local countries and regions and timely and appropriate response tosuch information.
(4) Timely disclosure regarding occurrence of disasters, etc.

Chapter 2:
Section 1.
Article 251.

Investment trust
General Provisions
Minimum Net Asset Value of Infrastructure Investment Trusts

In principle, the minimum amount of net assets to be maintained by the Infrastructure Investment Trust at
all times (hereinafter referred to as the “Minimum Net Asset Value”) shall be 100 million yen. However,this shall not apply to Infrastructure Investment Trusts for private placement.

2.

In case of the net asset value of the Infrastructure Investment Trust falling short of the Minimum Net Asset
Value stipulated in the preceding paragraph, no instructions for the borrowing of new funds or distributionof profits shall be given until the amount of the net assets exceeds the Minimum Net Asset Value.

Section 2.
Article 26

Closed-End Type Investment Trusts
Calculation Method for the Base Value of Closed-End Type Investment Trusts

The base value of a Closed-End Type Investment Trust shall be the amount obtained by dividing the amountcalculated by subtracting depreciation and debts pertaining to Infrastructure Assets Held, Land and Buildings
associated with Infrastructure Assets and Real Estate, etc. from the amount obtained by adding or subtracting
the valuation gain or loss on assets that should be valued at market value under laws and regulations on
securities, etc. to/from the total asset amount by the total number of units of beneficial interests.

Article 27

Profit Distribution Sources for Closed-End Type Investment Trusts

The Closed-End Type Investment Trust may distribute in full the amount (hereinafter referred to as“Investment Trust Income”) calculated by deducting the total amount of expenses for the relevant accounting
period of taxes and public charges (including interest expenses for the relevant accounting period; the same
shall apply hereinafter), depreciation and carried-over losses from the total amount of losses and gains on saleand purchase of Infrastructure Assets Held, Land and Buildings, etc. Associated with Infrastructure Assets, andReal Estate, etc., lease revenue (including Key Money, etc., or security deposits, etc., determined not to be
returned to the lessee, etc.; the same shall apply hereinafter), losses and gains on Infrastructure-related Assets,
losses and gains on securities transactions, interest and dividends on Infrastructure Assets Held,
Infrastructure-related Assets Held, and securities held, and carried-over profit arose during the relevant
accounting period.

Article 28
1.

Refund of Investment Principal of Closed-End Type Investment Trusts

A Closed-End Type Investment Trust shall be entitled to refund the investment principal up to the amountequivalent to 60% of the amount of depreciation to be recorded at the end of the accounting period.
However, if an amount equivalent to the depreciation of the Renewable Energy Power Generation
Facilities is included in dividends received from a silent partnership, the investment principal may berepaid up to the amount of such dividends plus an amount equivalent to 60% of the depreciation.

2.

For privately placed Closed-End Type Investment Trusts, if the amount of Investment Trust Income is lessthan the amount of income calculated for tax purposes, notwithstanding the provisions of the preceding
paragraph, the principal of investment in combination with the Investment Trust Income amount may be
refunded up to the amount calculated based on the Tax Act.

Article 28-2

Measures for Continuous Refund of Investment Principal for Each Period

In the event that the investment principal prescribed in Paragraph 1 of the preceding article is refunded every
period on a continuous basis, the following matters must be observed:(1) The distribution policy in the basic terms and conditions shall mention that the investment principal
shall be refunded every period on a continuous basis, and describe the concept thereof.
(2) As a policy for the implementation of continuous refunds of investment principal each period, internal
rules, etc., shall be established that stipulate the distribution of profits and disclosure of investment
principal refunds categories and other matters specified in the By-laws.

(3) After indicating the objective grounds based on reasonable data, etc. (such as past settlement data andengineering reports (regarding Renewable Energy Power Generation Facilities, the third party
evaluation report on Renewable Energy Power Generation Facilities may be substituted therefor; thesame shall apply hereinafter)) about the policy to making a continuous refund of the investment
principal for each fiscal period, to describe the same in the securities registration statement, the annual
securities report and the prospectus as well as to disclose it on the website, etc.
In addition, in order to make it easy to understand that this is a refund of the investment principal,
efforts shall be made to use simple expressions such as illustrations.
(4) When making a continuous refund of the investment principal each period, the management report shallclearly state that the money is not a distribution of profit but a refund of investment principal, andexplanatory notes, etc., shall be made in the relevant section of the management report, upon presenting
objective grounds for the validity of the standard for such refund based on rational data, etc. (past dataon settlements, engineering reports, etc.)(5) When making a continuous refund of the investment principal for each fiscal period, the policy shall begiven so as not to affect the long-term repair plan set forth in Article 8, Paragraph 2, Item 6, and after
stating the objective grounds for such policy based on reasonable data (past settlement data, engineering
reports, etc.), to make notes, etc. in the relevant part of the asset management plan and the investment
report so as to be understood by investors.
* Article 4 of the By-laws

Article 28-3

Refund of Investment Principal Other Than Continuous Refund of Investment Principal Each

PeriodWhen making refund of the investment principal in a manner other than continuous refund of the investment
principal each period as stipulated in the preceding article, sufficient consideration shall be given to the matters
stipulated in the By-laws in Item 2 of the preceding article.
The management report shall clearly state that the money is not a distribution of profit but a refund ofinvestment principal, and explanatory notes, etc., shall be made in the relevant section of the management
report upon presenting objective grounds and reasons for the validity of the standard for such refund of theinvestment principal.

Article 29

Method of Recording Lease Revenue for Closed-End Type Investment Trusts

With regard to lease revenue arising from Infrastructure Assets Held, Land and Buildings, etc. Associated with
Infrastructure Assets, and Real Estate, etc., the amount corresponding to the relevant accounting period shall berecorded as revenues.

Article 30
1.

Method of Recording Taxes and Levies for Closed-End Type Investment Trusts

With regard to taxes and levies, such as property taxes, that are incurred on an ongoing basis on
Infrastructure Assets Held, Land and Buildings, Real Estate, etc. Associated with Infrastructure Assets,
the amount corresponding to the relevant accounting period shall be recorded as expenses.

2.

Taxes and levies such as the real estate acquisition taxes, which are incurred on a one-off basis through theacquisition or sale of Infrastructure Assets, Land and Buildings and Real Estate, etc. shall be recorded as
expenses on the date when the payment of such taxes and public charges is finalized. However, any
unearned fixed asset tax, real estate acquisition tax, and registration and license tax at the time ofacquisition of Infrastructure Assets, Land and Buildings, etc. and Real Estate Associated with
Infrastructure Assets may be recorded as the acquisition value.

Article 31

Method of Recording Trust Fees for Closed-End Type Investment Trusts

Trust fees shall be recorded as expenses for each accounting period in the amount corresponding to suchaccounting period.

Article 32

Management Commission Fees Pertaining to Infrastructure Assets Held, Land and Buildings,

etc. Associated with Infrastructure Assets, and Real Estate, etc. of Closed-End Type Investment Trusts
With respect to management commission fees pertaining to Infrastructure Assets Held, Land and Buildings, etc.
Associated with Infrastructure Assets, and Real Estate, etc., the amount corresponding to the accounting period
in accordance with the content of the management commissioning agreement shall be recorded as expenses.

Article 33

Frequency of Calculation for Base Value for Listed Closed-End Type Investment Trusts

Listed Closed-End Type Investment Trusts shall calculate and publish the base value at the end of eachaccounting period and at the end of the interim accounting period.

Article 34

Frequency of Calculation for Base Value of Unlisted Closed-End Type Investment Trusts

For unlisted Closed-End Type Investment Trusts (excluding those for private placement), the base value shallbe calculated and published at the end of each accounting period and interim accounting period as well as at theend of each month.

Section 3.
Article 35

Open-End Type Investment Trust
Matters to Be Noted in Management of Open-End Type Investment Trusts

In managing assets such as Infrastructure Assets, etc. and Infrastructure-related Assets in open-end type
investment trusts, attention shall be paid to the liquidity of the assets to be managed, and provisions to that
effect shall be stipulated in the Basic Terms and Conditions.

Article 36

Method of Calculating the Base Value of Open-End Type Investment Trusts

The base value of an Open-End Type Investment Trust shall be the quotient obtained by dividing the amountcalculated by adding or subtracting gains or losses on valuation of assets held (with respect to Infrastructure
Assets Held, Land and Buildings, etc. Associated with Infrastructure Assets, and Real Estate, etc., the amountshall be the value of such Infrastructure Assets Held, Land and Buildings, etc. Associated with Infrastructure
Assets, and Real Estate, etc., calculated in accordance with the provisions of Article 5, less the amount ofdepreciation for the period from the beginning of the accounting period that includes the relevant calculation
date to the relevant calculation date, deducted from the book value; the same shall apply hereinafter) to/from
the total assets and minus liabilities by the total number of units of beneficial interests.

Article 37

Profit Distribution Sources and Refund of Investment Principal of Open-End Type Investment

Trusts1.

The distributable amount of profit from an Open-End Type Investment Trust shall be within the range of
any of the larger amounts calculated based on the calculation methods listed in the following items:(1) The entire amount obtained by deducting the total amount of expenses for the accounting period such as
taxes and levies, etc., the amount of depreciation for the current period, and losses carried forward, fromthe total of the following: gains or losses on the sale and purchase of Infrastructure Assets Held, Land
and Buildings, etc. Associated with Infrastructure Assets, and Real Estate, etc.; lease revenue; gains andlosses on the sale and purchase of Infrastructure-related Assets, gains and losses on securities
transactions; interest and dividends, etc. on Infrastructure Assets Held, Infrastructure-Related Assets
Held, and securities held; valuation profits or losses on assets held at the end of the accounting period(for Infrastructure Assets, Land and Buildings, etc. Associated with Infrastructure Assets, and Real
Estate, etc., the amount obtained by deducting the book value (the amount obtained by deducting thedepreciation amount for the relevant accounting period) from the appraised value of the asset calculated
in accordance with the provisions of Article 5), and profit carried forward.
(2) The amount calculated by deducting the total amount of expenses such as taxes and levies pertaining to
the relevant accounting period, and the depreciation as well as losses carried forward from the total
amount of gains and losses on sale and purchase of Infrastructure Assets Held, Land and Buildings, etc.
and Real Estate, etc. Associated with Infrastructure Assets, lease revenue, gains and losses on sale andpurchase of Infrastructure-related Assets Held, gains and losses on securities transactions, interests anddividends, etc. on Infrastructure Assets Held, Infrastructure-related Assets Held and securities held aswell as profit carried forward arose during the accounting period.

2.

With respect to privately placed Open-End Type Investment Trusts, if the distributable amount of profit
prescribed in the preceding paragraph is less than the amount of income calculated for tax purposes,
notwithstanding the provisions of the preceding paragraph, the investment principal together with the
distributable amount of profit may be refunded up to the amount of income calculated for such tax
purposes.

Article 37-2

Refund of Investment Principal of Open-End Type Investment Trusts Privately Placed by

Qualified Institutional Investors
1.

Open-End Type Investment Trusts privately placed by qualified institutional investors (meaning private
placements by qualified institutional investors as stipulated in Article 2, Paragraph 9 of the Investment
Trust Act; the same shall apply hereinafter) may be distributed as refund of the investment principal up to
the amount equivalent to the depreciation expense to be recorded at the end of the accounting period.

2.

When the investment principal is refunded based on the provisions of the preceding paragraph, themanagement report shall clearly state that the money is not a distribution of profit but a refund ofinvestment principal, and shall strive to prevent the investor from confusing such money with distributionof profits.

Article 38

Mutatis Mutandis Application of Open-End Type Investment Trusts

The provisions of Article 29 shall apply mutatis mutandis to the recording of lease revenue from Open-End
Type Investment Trusts, the provisions of Article 30 shall apply mutatis mutandis to the recording of taxes andlevies, the provisions of Article 31 shall apply mutatis mutandis to the recording of trust fees, and theprovisions of Article 32 shall apply mutatis mutandis to the recording of trust management fees.

Article 39

Frequency of Calculation of Base Value for Open-End Type Investment Trusts

In principle, the base value of an Open-End Type Investment Trust shall be calculated and published on the lastdate of each accounting period and the last date of the interim accounting period as well as the date specified in
the Basic Terms and Conditions on which investors and beneficiaries are able to directly apply forestablishment of additional trust or partial early cancellation of the investment trust property, and on fivebusiness days prior to said date.

Article 40

Value of Establishment or Early Cancellation of Open-End Type Investment Trusts

If additional establishment or partial early cancellation of the investment trust property is directly made during
the accounting period or at the end of the accounting period based on requests from the investors and thebeneficiaries, such additional establishment or partial early cancellation shall be made using the base value on
the date when the request is made.

Chapter 3:
Section 1.
Article 41

Investment Corporation
Closed-End Type Investment Corporation
Method of Calculating the Base Value of Closed-End Type Investment Corporations

The provisions of Article 26 shall apply mutatis mutandis to the method of calculating the base value of
Closed-End Type Investment Corporations. In this case, the term “Closed-End Type Investment Trust” in thearticle shall be deemed to be replaced with “Closed-End Type Investment Corporation” and the term “total
number of units of beneficial interest” in said article shall be deemed to be replaced with “number ofinvestment units issued.”

Article 42
1.

Profit Distribution Sources for Closed-End Type Investment Corporations

A Closed-End Type Investment Corporation may distribute the entire amount of profits (meaning profits
as defined in Article 136, Paragraph 1 of the Investment Trust Act. The same shall apply hereinafter.)2.

Notwithstanding the provisions of the preceding paragraph, in the event of discrepancy between book andtax accounting (meaning discrepancies stipulated in Article 2, Paragraph 2, Item 29 of the Ordinance on
Investment Corporation’s Financial Statements; the same shall apply hereinafter), a Closed-End TypeInvestment Corporation may take any of the following actions:(1) The amount equivalent to the increase in the allowance for temporary difference, etc. adjustments(meaning what is stipulated in Article 2, Paragraph 2, Item 30 of the Ordinance on Investment
Corporation’s Financial Statements; the same shall apply hereinafter) shall be distributed by applying itto the unappropriated retained earnings in the amount of profit stipulated in the preceding paragraph.
(2) The amount equivalent to the reserve for temporary difference adjustments (meaning what is stipulated
in Article 2, Paragraph 2, Item 31 of the Ordinance on Investment Corporation’s Financial Statements;
the same shall apply hereinafter) shall be reserved by subtracting the amount as voluntary retained
earnings from the unappropriated retained earning in the amount of profit stipulated in the preceding
paragraph.

Article 43

Refund of Capital Contributions Which Falls Under the Category of Distribution for

Reduction of Capital Contributions etc., under the Tax Act for Closed-End Type Investment Corporations
A Closed-End Type Investment Corporation shall be entitled to make refunds of capital contributions whichfall under the category of distributions for reduction of capital contributions, etc., under the Tax Act, up to an
amount equivalent to 60% of the amount obtained by deducting the total amount of accumulated depreciation
calculated at the end of the previous accounting period from the total amount of accumulated depreciation
recorded at the end of the accounting period.
However, if an amount equivalent to the depreciation of the Renewable Energy Power Generation Facilities is
included in dividends received from a silent partnership, capital contributions categorized as a capital
distribution with decrease of investment capital, etc. under tax law may be repaid up to the amount of such
dividends plus an amount equivalent to 60% of the depreciation.

Article 43-2

Treatment of Reversal of the Reserve for Temporary Difference Adjustments and Reversal of

the Allowance for Temporary Difference Adjustments for Closed-End Type Investment Corporations
In the event that a Closed-End Type Investment Corporation records the allowance for temporary difference
adjustments or reserve for temporary difference adjustments, from the following period onward, the amount ofreversal of the reserve for temporary difference adjustments (meaning the process noted in the balance sheet inaccordance with the provisions of Article 62, Item 13 of the Ordinance on Investment Corporation’s Financial
Statements or the amount generated by the reversal of the reserve for temporary difference adjustments in lieu
of recording the amount of allowance for temporary difference adjustments. The same shall apply hereinafter)shall be added to the unappropriated retained earnings in the amount of profit and the amount of reversal of theallowance for temporary difference adjustments (meaning the amount generated by the process noted in thebalance sheet in accordance with the provisions of Article 62, Item 13 of the Ordinance on Investment
Corporation’s Financial Statements; the same shall apply hereinafter) shall be subtracted from the earnings.

Article 43-3

Description in Other Explanatory Notes in the Event of Discrepancy between Book and Tax

Accounting
If the establishment of allowance for temporary difference adjustments or reserve for temporary differenceadjustments or the reversals thereof are stated in the statement of cash distributions for the accounting period ofinvestment corporations in accordance with the Article 42, Paragraph 2 or the preceding article, the matterslisted in the following items shall be stated as other explanatory notes in relation to the allowance for temporary
difference adjustments or reserve for temporary difference adjustments:(1) Allowance for Temporary Difference Adjustments(i) Reasons for establishing the allowances and reversals, and assets generated, etc.
(ii) Amount for the allowance and reversal(iii) Specific method of reversal(2) Reserve for Temporary Difference Adjustments(i) Reasons for establishing reserves and reversals, etc.
(ii) Amount of reserves and reversals(iii) Specific method of reversal (for reversals resulting from negative goodwill or differences in asset
book value with mergers, expected period of reversal (not more than 50 years) and method of reversal(at least equal amount of reversal per period is required) shall also be stated)

Article 43-3-2

Description in the Explanatory Notes Concerning the Balance Sheet in the Event ofDiscrepancy between Book and Tax Accounting
In accordance with the provisions of Article 42, Paragraph 2 and Article 43-2, if there is any increase or
decrease in and recording of the allowance for temporary difference adjustments or the reserve for temporary
difference adjustments in the balance sheet, the following matters shall be stated in the explanatory notes forthe balance sheet:(1) Allowance for Temporary Difference Adjustments(i) Reasons for establishing the allowances and reversals, and assets generated, etc.
(ii) Initial amount occurred(iii) Opening balance of the current period, allowance for the current period (increase), reversal for thecurrent period (decrease), closing balance at the end of the current period(iv) Specific method of reversal(2) Reserve for Temporary Difference Adjustments(i) Reasons for establishing reserves and reversals, etc.
(ii) Initial amount occurred(iii) Opening balance of the current period, accumulation for the current period (increase), reversal forthe current period (decrease), balance at the end of the current period(iv) Specific method of reversal (for reversals resulting from negative goodwill or differences in asset
book value with mergers, expected period of reversal (not more than 50 years) and method of reversal(at least equal amount of reversal per period is required) shall also be stated)
Article 43-4

Measures for Implementing Continuous Refund of Capital Contributions Each Period That

Falls under the Category of Reduction of Capital Contributions, etc., under the Tax Act.
When making continuous refunds of capital contributions each month which falls under the category of

distributions for reduction of capital contributions etc., under the Tax Act, as stipulated in Article 43, thefollowing matters shall be observed:(1) The distribution policy in the Certificate of Incorporation shall state that continuous refunds of capital
contributions that fall under the category of distributions for reduction of capital contributions, etc.,
under the Tax Act, shall be made each period, and describe the concept thereof.
(2) Establish internal rules, etc. that provide for the disclosure of the distinction between the distribution of
profits and the refunds of capital contributions and other matters specified in the By-laws as a policy forthe implementation of continuous refunds of capital contributions each period that falls under the
category of distributions for reduction of capital contributions, etc., under the Tax Act.
(3) The concept of implementing continuous refunds of capital contributions each period that falls under
the category of distributions for reduction of capital contributions, etc., under the Tax Act, shall beclearly stated in the securities registration statement, annual securities report as well as prospectus anddisclosed on the website, etc., upon presenting objective grounds for such concept based on rationaldata, etc. (past data on settlements, engineering reports, etc.)
In addition, in order to make it easy to understand that this is a refund of capital contributions that
falls under the category of distributions for reduction of capital contributions, etc., under the Tax Act,
efforts shall be made to use simple expressions such as illustrations.
(4) When making continuous refunds of capital contributions each period that fall under the category of
distributions for reduction of capital contributions, etc., under the Tax Act, in addition to clearly statingin the asset management report that such money is not a distribution of profits but refund of capital
contributions that falls under the category of distributions for reduction of capital contributions, etc.,
under the Tax Act, explanatory notes, etc., shall be made in the relevant section of the asset
management report upon presenting objective grounds for the validity of the standard for such refund of
capital contributions, etc., based on rational data, etc., (past data on settlements, engineering reports,
etc.)(5) When making continuous repayments for each fiscal period of capital contributions categorized as acapital distribution with decrease of investment capital, etc. under tax law, consideration shall be given
so as not to affect the long-term repair plan stipulated in Article 8, Paragraph 2, Item 6, and uponpresenting objective grounds for such concept based on rational data, etc. (past data on settlements,
engineering reports, etc.), and explanatory notes, etc., shall be made in the relevant section of the asset
management plan and asset management report so that investors can understand the concept.
* Article 4-2 of the By-laws

Article 43-5

Refund of Capital Contributions That Falls under the Category of Distributions for Reductionof Capital Contributions, etc., under the Tax Act Other Than Refund of Capital Contribution That Falls under
the Continuous Distribution for Reduction of Capital Contributions, etc. for Each Period under the Tax Act
For refund of capital contributions that falls under the category of distributions for reduction of capital
contributions, etc., under the Tax Act other than the refund of capital contribution that falls under thecontinuous distribution for reduction of capital contributions, etc. for each period under the Tax Act stipulated

in the preceding article, sufficient consideration shall be given to the matters stipulated in Item 2 of thepreceding article of the By-laws.
The management report shall clearly state that the money is not a distribution of profit but a refund of capital
contributions, etc., that falls under the category of distributions for reduction of capital contributions, etc.,
under the Tax Act, and explanatory notes, etc., shall be made in the relevant section of the management reportupon presenting objective grounds and reasons for the validity of the standard for such refund.

Article 44

Mutatis Mutandis Application of the Method of Recording Lease Revenue for Closed-End

Type Investment Corporation
1.

The provisions of Article 29 shall apply mutatis mutandis to the recording of lease revenue of a
Closed-End Type Investment Corporation, the provisions of Article 30 shall apply mutatis mutandis to therecording of taxes and levies, and the provisions of Article 32 shall apply mutatis mutandis to therecording of management commission fees for Infrastructure Assets Held, Land and Buildings, etc.
Associated with Infrastructure Assets, and Real Estate, etc.

2.

The provisions of Article 31 shall apply mutatis mutandis to the recording of remuneration paid by a
Closed-End Type Investment Corporation. In this case, the term “trust fees” in said article shall be deemed
to be replaced with “remuneration to be paid by the investment corporation to the relevant parties based on
the contract concluded between the investment corporation, the Operating Company that manages assets,
the general administration trustee, and the asset custodian company.”

3.

The provisions of Article 33 shall apply mutatis mutandis to the frequency of calculation of the base valueof a listed Closed-End Type Investment Corporation, and the provisions of Article 34 shall apply mutatis
mutandis to the frequency of calculation of the base value of a non-listed Closed-End Type Investment
Corporation.
In this case, the term “Closed-End Type Investment Trust” in Article 33 and Article 34 shall bedeemed to be replaced with “Closed-End Type Investment Corporation.”

Article 45

Points to Consider concerning the Issuance of Investment Corporation Bonds

When a Closed-End Type Investment Corporation issues investment corporation bonds under the provisions ofArticle 139-2 of the Investment Trust Act, the terms and conditions for issuance of such investment corporation
bonds such as maturity date, method of redemption, interest rate and method of payment of interest shall beappropriately established in consideration of the status of assets of such investment corporation.

Article 45-2

Points to Consider concerning the Issuance of Short-Term Investment Corporation Bonds

When a Closed-End Type Investment Corporation issues short-term investment corporation bonds under theprovisions of Article 139-12 of the Investment Trust Act, the conditions for issuance of such short-term
investment corporation bonds, such as the issue value and redemption value thereof, shall be establishedappropriately in consideration of the status of the assets of such investment corporation.

Article 46

Points to Consider concerning the Issuance of Investment Equity Subscription Rights

When a Closed-End Type Investment Corporation issues investment equity subscription rights under theprovisions of Article 88-4 of the Investment Trust Act, the conditions of issuance, such as the exercise expiry
date of the said investment equity subscription rights, the amount of money to be contributed upon exercise, orthe calculation method thereof, shall be established appropriately in consideration of the status of the assets ofthe said investment corporation.

Section 2.
Article 47

Open-End Type Investment Corporation
Mutatis Mutandis Application Concerning Method of Calculation for the Base Value ofOpen-End Type Investment Corporation
1.

The provisions of Article 35 shall apply mutatis mutandis to the management of Infrastructure Assets, etc.
and Infrastructure-related Assets by Open-End Investment Corporations. In this case, the term “Open-End
Type Investment Trust” in said article shall be deemed to be replaced with “Open-End Type Investment
Corporation” and the term “basic terms and conditions” in said article shall be deemed to be replaced withthe “Certificate of Incorporation”

2.

The provisions of Article 36 shall apply mutatis mutandis to the calculation of the base value of Open-End
Type Investment Corporations. In this case, the term “Open-End Type Investment Trust” in the Article
shall be deemed to be replaced with “Open-End Type Investment Corporation” and the term “total numberof units of beneficial interest” in the article shall be deemed to be replaced with “units of investment
equity.”3.

The provisions of Article 42, Article 43-2, Article 43-3 and Article 43-3-2 shall apply mutatis mutandis tothe entry of notes for distribution of profits, and for any inconsistency between taxation and accounting
with respect to Open-End Type Investment Corporations. In this case, the term “Closed-End Type
Investment Corporation” in Article 42 and Article 43-2 shall be deemed to be replaced with “Open-End
Type Investment Corporation” and the term “may distribute the entire amount of profits” in Article 42,
Paragraph 1. ” shall be deemed to be replaced with “may distribute the entire amount of profits or the sumof the amount of profits and the amount of valuation loss or profit on assets held at the end of theaccounting period (with regard to real estate, rights of lease of real property and superficies rights, theamount of the valuation loss or profit on such assets calculated under the provisions of Article 5, less bookvalue (the amount less depreciation for such accounting period)), whichever is greater. ”

4.

The provisions of Article 29 shall apply mutatis mutandis to the recording of lease revenue of an
Open-End Type Investment Corporation, the provisions of Article 30 shall apply mutatis mutandis to therecording of taxes and levies, and the provisions of Article 32 shall apply mutatis mutandis to therecording of trust management fees.

5.

The provisions of Article 44, Paragraph 2 as applied mutatis mutandis to Article 31 shall apply mutatis
mutandis to the recording of remunerations paid by Open-End Type Investment Corporations.

6.

The provisions of Article 39 shall apply mutatis mutandis to the frequency of calculation of the base valueof an Open-End Type Investment Corporation. In this case, the term “Open-End Type Investment Trust”
in said article shall be deemed to be replaced with “Open-End Type Investment Corporation,” the term

“beneficiary” shall be deemed to be replaced with “investor,” and the term “application for additional
establishment or partial early cancellation of investment trust property” shall be deemed to be replacedwith “application for additional issuance of investment equity units or request for refund to the investment
corporation.”

Article 47-2

Refund of Capital Contributions Made by Open-End Type Investment Corporations for

Qualified Institutional Investors
1.

Of Open-End Type Investment Corporations, an Investment Corporation that solicits only qualified
institutional investors (as defined in Article 2, Paragraph 3, Item 1 of the FIEA) and issues investment
units that satisfy the requirements specified in Article 1-4 of the Order for Enforcement of the Financial
Instruments and Exchange Act (Cabinet Order No. 321 of 1965) as those that are not likely to betransferred to persons other than qualified institutional investors (hereinafter referred to as an “Open-End
Type Investment Corporation for Qualified Institutional Investors”) shall be able to make repayments ofcapital contributions up to an amount equivalent to the depreciation expense recorded on the last date of
the accounting period.

2.

In the event of a refund of contributions in accordance with the preceding paragraph, the investment
corporation shall clearly state in the asset management report that the money in question is not a
distribution of profits but a refund of capital contributions, and shall strive to prevent investors from
confusing such money with distributions of profits.

Article 47-3

Special Provisions on Frequency of Calculation of Base Value of Open-End Type Investment

Corporation for Qualified Institutional Investors
Notwithstanding the provisions of Article 47, Paragraph 6, the calculation frequency of the base value of an
Open-End Type Investment Corporation for Qualified Institutional Investors may be calculated only on the last
day of each accounting period. In this case, the investors shall be notified promptly after calculating the basevalue.

Article 48
1.

Value of Additional Issuance and Refund of Open-End Type Investment Corporation

When any additional issuance or refund of investment equity units is made based on the requested by theinvestors or the unitholders, such additional issuance or refund shall be made using the base value on thedate of the request from investors and unitholders.

2.

With respect to Open-End Type Investment Corporation for Qualified Institutional Investors to which theprovisions of Article 47-3 have been applied, notwithstanding the provisions of the preceding paragraph,the base value as of the last day of the accounting period immediately before the day on which a request
has been made by an investor or shareholder shall be used.

Article 49

Mutatis Mutandis Application of Considerations concerning Issuance of Investment Equity

Subscription Rights of Open-End Type Investment Corporations
The provisions of Article 46 shall apply mutatis mutandis to Open-End Type Investment Corporations. In thiscase, the term “Closed-End Type Investment Corporation” in said Article shall be read as “Open-End Type
Investment Corporation.”

Chapter 4:
Article 50

Miscellaneous Provisions
By-laws

Necessary matters for the enforcement of these Rules shall be stipulated in the By-laws.

Article 51

OthersAny matters concerning Infrastructure Investment Trusts and Infrastructure Investment Corporations that are
not provided in this Rule may be determined by a resolution of the Board of Directors.

Article 52
1.

Delegation to Competent Committee

The Board of Directors shall be entitled to delegate to the Self-Regulation Committee any amendments to
the By-laws relating to these Rules.

2.

If the Self-Regulation Committee makes a decision on any matter delegated thereto (limited to suchdecisions which the Board of Directors deems necessary), it shall promptly report the detailed content
thereof to the Board of Directors.

Supplementary Provisions
These Rules shall come into effect on July 16, 2015.
However, with regard to the handling of Renewable Energy Power Generation Facilities included in the
Infrastructure Assets defined in Article 3, Paragraph 4, necessary measures shall be taken, if deemed
appropriate, around three years after these Rules come into effect, considering the provisions pertaining to
Article 39-32-3, Paragraph 10 of the Order for Enforcement of the Act on Special Measures Concerning
Taxation.

Supplementary ProvisionThis amendment shall come into effect on May 18, 2017.
* The amended provisions are as follows:
Article 3, Paragraph 3 is amended.

By-laws for Rules on Infrastructure Investment Trusts and Infrastructure
Investment Corporations
Established on July 16, 2015

Article 1

Purpose

These By-laws set forth necessary matters for implementation of the Rules on Infrastructure Investment Trusts
and Infrastructure Investment Corporations (hereinafter referred to as the “Rules”).
Article 2

Methods for Valuation of Infrastructure-related Assets, etc.

The valuation method specified in By-laws prescribed in Article 6, Paragraph 2 and Article 7, Paragraph 2 of
the Rules on Real Estate Investment Trusts and Real Estate Investment Corporations (hereinafter referred to as
the “Rules on REIT, etc.”), which are applied mutatis mutandis in Article 6 of the Rules shall be the valuation
method based on the total of the values that the settlor company of investment trusts has evaluated inaccordance with the provisions of Article 5 and Article 7 of Rules, Article 6, Paragraph 1 and Article 7,
Paragraph 1 of Rules on REIT, etc. according to each type of assets that constitute the asset in question every
assets.
Article 3

Capital Expenditure

The capital expenditures specified in the By-laws prescribed in Article 23 of the Rules shall be the capital
expenditures that are equivalent to not less than 1% of the acquisition book value of individual Infrastructure
Assets, etc. and Real Estate, etc. held by the Infrastructure Investment Trusts or Infrastructure Investment
Corporations.
Article 4Internal Rules, etc. for Closed-End Type Investment Trusts

The matters to be specified in the By-laws as prescribed in Article 28-2, Item 2 of the Rules shall be as follows:(1) Separate disclosure of profit distribution and refund of investment principal(2) Process for deciding on the implementation of refund of investment principal(3) Approach to implementation of refund of investment principal(4) Matters to be taken into consideration when implementing the refund of investment principal ((i)
Matters affecting cash flow such as medium- to long-term capital needs such as long-term repair plans,etc., (ii) Other necessary matters))
Article 4-2

Internal Rules, etc. of Closed-End Type Investment Corporations

The matters to be specified in the By-laws as prescribed in Article 43-4, Item 2 of the Rules shall be as follows:(1) Separate disclosure of profit distribution and refund of capital contributions categorized as distribution
for reduction of capital contributions, etc., under the Tax Act(2) Process for deciding on the implementation of refund of capital contributions categorized as
distribution for reduction of capital contributions, etc., under the Tax Act(3) Approach to the implementation of refund of capital contributions categorized as distribution for
reduction of capital contributions, etc., under the Tax Act(4) Matters to be taken into consideration when implementing the refund of capital contributions

categorized as distribution for reduction of capital contributions, etc., under the Tax Act ((i) Mattersaffecting cash flow such as medium- to long-term capital needs such as long-term repair plans, etc., (ii)
Other necessary matters))

Supplementary Provision
The By-laws shall be implemented from July 16, 2015.

Regulations for Direct Offering, etc. of Beneficiary Certificates, etc.
Established on March 17, 1994
Revised on February 17, 1995
Revised on November 7, 1997
Revised on December 16, 1997
Revised on November 27, 1998
Revised on March 23, 1999
Revised on January 27, 2000
Revised on February 18, 2000
Revised on December 15, 2000
Revised on April 16, 2001
Revised on December 21, 2001
Revised on March 15, 2002
Revised on October 25, 2002
Revised on March 19, 2004
Revised on September 15, 2004
Revised on January 19, 2007
Revised on September 21, 2007
Revised on November 16, 2007
Revised on March 21, 2008
Revised on September 19, 2008
Revised on March 19, 2009
Revised on February 17, 2011
Revised on December 20, 2012
Revised on March 14, 2013
Revised on September 18, 2013
Revised on December 19, 2013
Revised on June 8, 2017
Revised on September 12, 2019
Revised on May 20, 2021
Revised on June 10, 2021

Chapter 1:
Article 1.

General Provisions
PurposeThe purpose of these Regulations is to protect investors while fairly and seamlessly conducting Direct
Offerings, etc. by specifying the necessary matters for solicitation of investments from customers, customer
management, etc. in connection with public offerings, private placements, (meaning public offerings andprivate placements as defined in Article 2, Paragraph 3 of the Financial Instruments and Exchange Act (Act No.
25 of 1948, hereinafter the “FIEA”). The same shall apply hereinafter) and other business for beneficiary
certificates (including book-entry transfer beneficial interest in an investment trust. The same shall apply
hereinafter) of investment trusts managed under instructions from the settlor that are established by Full
Members themselves (meaning Full Members as defined in Article 7, Paragraph 1, Item 1 of the Articles ofIncorporation; the same shall apply hereinafter), the handling of public offerings, private placements, and otherbusiness for investment securities or investment corporation bond certificates issued by investment
corporations for which Full Members are entrusted asset management business, and public offerings, private
placements, and other business for beneficiary certificates of investment trusts managed without instructions
from the settlor (hereinafter “Direct Offerings, etc.”).

Article 1-2.

Basic Policies for Direct Offerings, etc.

When Full Members conduct a Direct Offering, etc., they shall endeavor to protect investors by dedicatingthemselves to putting investors first and foremost while carrying out said business earnestly and fairly via theprovisions of these Regulations.

Chapter 2:

Solicitation of Investment

Article 2.

Compliance with Laws, Rules, etc.

When conducting a Direct Offering, etc., Full Members shall comply with the FIEA, the Act on Investment
Trusts and Investment Corporations (Act No. 198 of 1951, hereinafter the “Investment Trust Act”), and otherlaws as well as the various Rules of this Association (hereinafter “Laws, Rules, etc.”).

Article 3.

Solicitation Policies, etc.

Full Members shall strive to establish sound investment practices and ensure an appropriate demeanor forsolicitation. They shall also establish internal rules and ensure that officers and employees engaged in the workfor Direct Offerings, etc. (hereinafter “Sales Officers and Employees”) observe these Rules so that they will
always prioritize the interests of investors.

Article 4.

Strict Adherence to the Principle of Accountability, etc.

1. When soliciting a customer to acquire beneficiary certificates, etc. (meaning beneficiary certificates,
investment securities and investment corporation bond certificates of investment trusts managed under
instructions from the settlor and investment trusts managed without instructions from the settlor as describedin Article 1. The same shall apply hereinafter), Full Members shall use a prospectus, etc. to fully explain thenature of said product to investors and ensure that investors are aware that the acquisition should be made attheir own discretion and responsibility. At the same time, the Full Member shall fully understand theinvestor’s investment experience, investment purposes, financial resources, etc. and shall conduct public
offerings, etc. so as to conform to the investor’s intentions and circumstances.
2. When Full Members solicit to acquire beneficiary certificates of new investment trusts from among thebeneficiary certificates of investment trusts managed under instructions from the settlor that are establishedby Full Members themselves, they shall sufficiently understand the characteristics and risks of theinvestment trusts and shall not solicit to acquire any beneficiary certificates for which Full Members cannot
suppose a suitable customer.
3. Full Members must fully explain to customers all significant matters regarding the Direct Offerings, etc. ofleveraged investment trusts they established (meaning investment trusts that are managed so that theirfluctuation rate per unit of net assets for investment trust properties in investment trusts is matched to thevalue obtained by multiplying the fluctuation rate of the Benchmark Index (meaning a specific indicator or
price) by a predetermined multiplier (no lower than 2x or higher than -2x) (this does not apply to those thatare or will be listed on financial instruments exchange markets or overseas financial instruments markets andcomplex investment trusts similar to over-the-counter derivatives transactions (meaning those defined in
Article 2 of the Regulations for Complex Investment Trusts Similar to Over-the-Counter Derivatives
Transactions);the same shall apply hereinafter)) and strive to gain the understanding of the customer.

Chapter 3:
Article 5.

Service Standards
Prohibited Acts

Full Member officers and employees shall not engage in any of the following:(1) Solicitations that provide definitive judgments that the value of a beneficiary certificate, etc. will rise or
fall(2) Solicitations that present false representations or representations which are likely to cause amisunderstanding of significant matters(3) Solicitations or actions with a promise to bear all or part of the loss to customers(4) Solicitations or actions with a promise to offer special benefits to customers(5) Having a customer acquire beneficiary certificates, etc. while knowing that interested parties such as
the settlor, etc. are providing credit to the customer on the condition that the customer purchases said
beneficiary certificates, etc.
(6) Solicitations for the acquisition of such amount of beneficiary certificates, etc. that exceeds thecustomer’s financial resources as known through the customer card, etc.
(7) Direct Offerings, etc. for beneficiary certificates, etc. on a customer account without obtaining thecustomer’s consent(8) Solicitations or actions with a promise to share losses or gains with customers(9) Accepting an application to acquire beneficiary certificates, etc. from a customer although knowing thatthe customer is using a name other than their own(10) Not delivering to the other party without delay any money deposited by a customer, any beneficiary
certificates, etc. requested to be deposited at an asset management company, or any money to bedelivered to a customer, any beneficiary certificates, etc. to be returned, and any documents relating to
the business(11) The lending or borrowing of money, beneficiary certificates, etc. to or from customers in connection
with Direct Offerings, etc. for beneficiary certificates, etc.
(12) Actions that divulge any secret that may have become known in the course of their business(13) Not explaining significant matters of a switchover of beneficiary certificates, etc. (meaning theacquisition of beneficiary certificates, etc. following the early cancellation of part of investment trust
agreement involving actually held beneficiary certificates, etc., the refund of investment units, or thesale of beneficiary certificates, etc.) to customers (except professional investors (meaning professional
investors as defined in Article 2, Paragraph 31 of the FIEA (excluding those customers deemed to not
be professional investors as defined in Article 34-2, Paragraph 5 of the same Act and including thosedeemed as professional investors as defined in Article 34-3, Paragraph 4 of the same Act (including
when applied mutatis mutandis in Article 34-4, Paragraph 6 of the same Act)); the same shall apply
hereinafter)) when soliciting a switchover of beneficiary certificates, etc.

Chapter 4:
Article 6.

Customer Management
Customer Registration

1. At the commencement of transactions with customers, Full Members shall register the customer and preparea “customer card” containing the following items:(1) Name or official name(2) Address or location and contact information(3) Date of birth (limited to when the customer is a natural person; the same shall apply in the following
item)(4) Occupation(5) Investment purposes(6) Status of assets(7) Experience with securities investments(8) Motivation to become a customer(9) Other matters necessary for customer management and clerical processing
2. For investment trust management companies registered to engage in Type I Financial Instruments Businessbased on the provisions of Article 29 of the FIEA or for financial institutions registered under Article 33-2 ofthe FIEA (hereinafter “Registered Financial Institutions, etc.”), the Full Member may substitute thecustomer card described in Article 5 of the Rules on Investment Solicitation and Customer Management by
Association Members established by the Japan Securities Dealers Association for the customer cardprescribed in the preceding paragraph.
3. Full Members shall not divulge to others any information about a customer known through the customer card,etc.
4. Full Members may create and store customer cards via electromagnetic means.

Article 6-2.

Criteria for the Commencement of Solicitation

When a Full Member solicits a customer (limited to individuals and excluding professional investors; the same
shall apply hereinafter in this article and the following article) to acquire a leveraged investment trust
established by the Full Member (limited to solicitations via customer visit or phone call for customers who
have not requested such solicitation and solicitations conducted at the Full Member headquarters, businessoffices, or other business locations for customers who have not requested such solicitation), the Full Member
shall not solicit to any individual who does not meet the criteria for commencement of Solicitation to beestablished by the Full Member.

Article 6-3.

Sales via Solicitation to Elderly Customers

When a Full Member engages in the selling of investment trusts to elderly customers via solicitation, the Full
Member shall endeavor to solicit investments in an appropriate manner by establishing internal rules
concerning the definition of an elderly customer, the investment trusts to be sold, the methods of explanation,and the methods of receiving orders, etc. with consideration of the Full Member’s business category, size,
customer distribution and customer attributes, as well as social circumstances and other conditions.

Article 7.

Identity Confirmation of Customers, etc.

1. Full Members must conduct identity confirmation of customers, etc. in accordance with the provisions of the
Act on Prevention of Transfer of Criminal Proceeds (Act No. 22 of 2007; hereinafter “Criminal Proceeds
Transfer Prevention Act”) and related laws and regulations. The same shall apply when a Full Member
receives a request from a customer to store beneficiary certificates, etc. with an asset management company(meaning an asset management company as defined in Article 11, Paragraph 2).
2. Full Members shall designate a manager responsible for providing notifications of suspicious transactions
based on Article 8, Paragraph 1 of the Criminal Proceeds Transfer Prevention Act and shall work to establish
an internal audit system.

Article 8.

Prohibition of Transactions with Anti-Social Forces

1. Full Members shall not conduct transactions with any parties set forth in the following items (hereinafter“Anti-Social Forces”):(1) Organized crime groups (meaning organized crime groups as defined in Article 2, Item 2 of the Act on
the Prevention of Unjust Acts by Organized Crime Group Members)(2) Members of organized crime groups (meaning members of organized crime groups as defined in Article
2, Item 6 of the Act on the Prevention of Unjust Acts by Organized Crime Group Members)(3) An associate member of an organized crime group (meaning any person under the control of anorganized crime group or member thereof and suspected of engaging in violent and illegal act (meaning
violent and illegal act, etc. as defined in Article 2, Item 1 of the Act on the Prevention of Unjust Acts by
Organized Crime Group Members; the same shall apply hereinafter in this article) with the supporting
power of an organized crime group, or any person who is not part of an organized crime group but
cooperates in the maintenance or operation of an organized crime group such as supplying funds, arms,
etc. to an organized crime group or members of an organized crime group)(4) A business affiliated with an organized crime group (meaning a business in which members of anorganized crime group are substantially involved in its management, a business in which an associate
member of an organized crime group or a former member of an organized crime group is substantiallyinvolved in its operation and actively cooperates or engages in the maintenance or operation of anorganized crime group, such as supplying an organized crime group with funds, or a business which
actively utilizes an organized crime group in the execution of its business and cooperates in themaintenance or operation of an organized crime group)(5) Extortionists, etc. (meaning any person who is likely to commit violent and illegal acts, such as
extortion or blackmail, etc. against a company, etc. in pursuit of unlawful profit and who poses a threat
to the safety of civil society)(6) Political racketeers (meaning any person who is likely to commit violent and illegal acts, etc. in theguise of a social movement or political party or the promotion thereof in pursuit of unlawful profits andwho poses a threat to the safety of civil society)(7) Organized crime syndicates (meaning an organization or person who is at the core of structural

injustices other than those set forth in (1) through (6) and who has a relationship with an organizedcrime group and uses its power or who has financial ties with an organized crime group)(8) Any persons equivalent to any of the preceding items
2. If a Full Member discovers that an existing customer is a Anti-Social Forces, the Full Member shall endeavor
to terminate the business relationship as soon as possible.
3. If a Full Member faces any violent act or any other wrongful act, etc. when halting a transaction with a
Anti-Social Forces, the Full Member shall notify the competent police authorities, etc.
4. In order to comply with the matters stipulated in the preceding three paragraphs, Full Members shallestablish internal rules that incorporate such matters.

Article 9.

Ensuring the Safety of Transactions

When handling an acquisition application from a new customer, a high-volume customer, etc., Full Members
shall endeavor to ensure safety by receiving all or part of the application money, etc. from the customer inadvance.

Article 10.

Establishment of a Customer Management System

1. Full Members shall establish internal rules regarding customer surveys, transaction commencement criteria,
customer management, etc. to ensure proper customer management, and ensure that their officers andemployees comply with those rules.
2. Full Members shall establish a system for customer management and endeavor to accurately understand thestatus of Direct Offerings, etc. for customers and the state of business activities of Sales Officers andEmployees.

Article 10-2. Profit and Loss Notifications for Investment Trusts
A Full Member must notify customers of profit or loss (referred to as “Total Return” in the By-laws) pertaining
to an investment trust managed by the Full Member (meaning an investment trusts managed under instructions
from the settlor and investment trusts managed without instructions from the settlor; the same shall apply
hereinafter in this article) through entries or records in a transfer account book as set forth in the By-laws byeither contacting the customer directly or using a financial instruments intermediary service provider (meaning
a financial instruments intermediary service provider as listed in Article 4, Paragraph 1, Item 1 of the Articles
of Incorporation).
* Article 2 of the By-laws

Chapter 5:

Deposit and Segregated Management of Beneficiary Certificates, Segregated Custody of

Money, etc.
Article 11.

Deposit and Segregated Management of Beneficiary Certificates

1. If an investment trust management member company (meaning an investment trust management company as
defined in Article 2, Paragraph 11 of the Investment Trust Act and trust companies, etc. which are trustee

companies for investment trusts managed without instructions from the settlor. The same shall apply to therest of this article and Articles 12, 13, and 13-2) receives a request from a customer to deposit beneficiary
certificates with an asset management company, the member company may do so with the asset managementcompany.
2. The asset management company prescribed in the preceding paragraph shall be an asset managementcompany as defined in the By-laws.
* Article 3 of the By-laws

3. The investment trust management member company must manage the investment trust beneficial interest it
manages as an account management institution by entering or recording such beneficial interest in a transfer
account book separately from its own assets under Article 2, Item 1 of the Order Regarding AccountManagement Institutions (Ordinance of the Cabinet, Ministry of Justice, and Ministry of Finance No. 2 of
2002) by a method equivalent to the method prescribed in Article 43-2, Paragraphs 1 and 2 of the FIEA.
4. The investment trust management member company must receive an audit on the status of segregatedmanagement for the investment trust beneficial interest described in the preceding paragraph, conducted on aregular basis of at least once per year by a certified public accountant or an auditing firm (hereinafter a“Certified Public Accountant, etc.”) under Article 2, Item 1 of the Order Regarding Account Management
Institutions by a method equivalent to the method prescribed in Article 43-2, Paragraph 3 of the FIEA.
5. The audit described in the preceding paragraph shall create an management report (hereinafter the“Management Report”) regarding compliance with Laws, Rules, etc. concerning segregated management ofcustomer assets that contains the matters specified in the By-laws. This audit shall be the segregatedmanagement audit (hereinafter the “Segregated Management Audit”) pertaining to Assurance Engagements
for compliance with the Laws, Rules, etc. concerning segregated management using Certified Public
Accountants, etc. as set forth in the Japanese Institute of Certified Public Accountants’ Industry Committee
Practical Guidelines No. 56, “Practical guidelines for guaranteeing business concerning compliance with theLaws and Rules, etc. concerning the segregated management of customer assets at investment trust
management companies that provide Direct Offering, etc. for beneficiary certificates, etc.”* Article 3-2 of the By-laws

6. In preparing the Management Report described in the preceding paragraph, the investment trust management
member company must implement procedures to confirm that it has established and operated an effective
internal control system for compliance with the laws, regulations, etc. concerning segregated management
and has conducted the segregated management of customer assets in compliance with such laws, regulations,etc.
7. The investment trust management member company must prepare records on the matters understood in thecourse of the procedures described in the preceding paragraph and the results of those procedures.
8. When an investment trust management member company undergoes a Segregated Management Audit from a
Certified Public Accountant, etc. and receives a report on the results of the Segregated Management Audit(meaning the “Assurance Report Regarding Compliance with the Laws, Rules, etc. Concerning SegregatedManagement” submitted by the Certified Public Accountant, etc. ; hereinafter the “Segregated Management
Audit Report”), the investment trust management member company must promptly notify the Association

using the form prescribed in the By-laws via the electronic notification and storage system for notificationfrom members of the Association (hereinafter the “Notification Management System of Investment Trusts
Association”).
However, notification to the Association is not required only for investment trust management
member companies that are registered as both Type I Financial Instruments Business and Type II Financial
Instruments Business that conduct segregated management for deposits of investments from customers
pertaining to Direct Offerings as the business of the Type I Financial Instruments Business (securities
management business) and have submitted the Segregated Management Audit Report to the Japan Securities
Dealers Association.
* Article 3-2 of the By-laws

Article 11-2. Prohibition on the Acceptance of Deposits of Money or Securities
Investment corporation asset management members (meaning Full Members that are asset managementcompanies as defined in Article 2, Paragraph 21 of the Investment Trust Act) shall not accept deposits ofmoney or securities from customers in connection with their investment management business for any reason
whatsoever.

Article 12.

Segregated Management for Money

1. Investment trust management member companies must manage money deposited by customers (including
money deposited with the member company by a customer of a financial instruments intermediary service
provider; the same shall apply hereinafter) separately from their assets using a method equivalent to themethod prescribed in Article 43-2, Paragraph 2 of the FIEA and based on the By-laws on Segregated
Customer Trust Funds for Direct Offerings, etc. of Beneficiary Certificates, etc.
2. The investment trust management member company must regularly undergo Segregated Management
Audits from a Certified Public Accountant, etc. at least once per year regarding the status of segregatedmanagement for money deposited as described in the preceding paragraph in a manner equivalent to theprovisions of Article 43-2, Paragraph 3 of the FIEA.
* By-laws for Segregated Customer Trust Funds

3. Paragraphs 5 through 8 of Article 11 shall apply mutatis mutandis in this article.

Chapter 6:

Handling of Documents Provided via Electromagnetic Means, etc.

Article 12-2. Handling of Documents Provided via Electromagnetic Means, etc.
Full Members may deliver or acquire the matters to be included in a document using electromagnetic means inlieu of any documents to be delivered to or acquired from a customer in accordance with the provisions ofArticle 56, Article 57, and Article 57-3 of the Cabinet Office Order on Financial Instruments Business, etc.
(Cabinet Office Order No. 52 of 2007) or Article 11 through Article 12 of the Act on the Regulation for
Enforcement of Investment Trusts and Investment Corporations (Cabinet Office Order No. 129 of 2000).

Chapter 7:

Miscellaneous Provisions

Article 13.

Direct Offerings, etc. via Tenancy

When an investment trust management member company leases store space from a financial institution or
insurance company (hereinafter a “Financial Institution, etc.”) and engages in a Direct Offerings, etc., themember company shall conduct the Direct Offerings, etc. in the following manner:(1) Provide a dedicated space separate from any other space for Direct Offerings, etc. of investment trusts;(2) For the time being, one person shall be in residence;(3) The following items shall be disclosed in writing:(a) It is not subject to deposit insurance or a contractor protection fund(b) Unlike deposits with financial institutions, there is no guarantee of principal and unlike insurance
amounts in insurance contracts, there is no guarantee of amounts to be received, etc.
(c) The purchaser of the investment trust shall bear all risk, including any decrease in invested assets(4) When posting or distributing advertisements (meaning posters, pamphlets, etc.) for investment trusts
inside stores of Financial Institutions, etc., the advertisements shall include the matters set forth in thepreceding item in addition to the matters prescribed in Article 37 of the FIEA;(5) When subcontracting office work to the Financial Institution, etc. that is leasing the store space, thevolume of work subcontracted shall be limited to the minimum amount necessary

Article 13-2. Reinvestment through the Distribution of Income from Open Type Investment Trust
Investment trust management member companies shall adhere to the following matters regarding
reinvestments via income distributions from open type investment trust (hereinafter “Reinvestments.”):(1) When carrying out Reinvestments, Reinvestments shall be made within the range of the income
distribution and shall not be used to compensate for any shortfalls in sales units which exist at the time of
the Reinvestment(2) Paperwork for the open-ended investment trust connected to a Reinvestment made on the business day
following the settlement date shall be processed immediately to enable investment as a trust property on
the day following the settlement date

Article 14.

Notifications, etc. for Sales Officers and Employees

1. When a Full Member newly engages an officer or employee in the business of Direct Offerings, etc., the Full
Member shall notify the Association in advance regarding the name, date of birth, and date of involvement in
the business for the officer or employee in question using the form prescribed in the By-laws via the methodin the Notification Management System of Investment Trusts Association.
However, if the person newly involved in the Direct Offerings, etc. possesses the required qualifications
for a sales representative prescribed in Article 4 of the Rules Concerning Qualification and Registration, Etc.
of Sales Representatives of Association Members as established by the Japan Securities Dealers Association(hereinafter referred to as the “Rules for JSDA Sales Representatives”), the Full Member may attach a list ofnames, etc. of said officers and employees (a list stating the name, date of birth, and date that the sales
representatives became able to engage in business) in lieu of listing the notification items. In this case, theFull Member shall notify the Association immediately after said officers and employees have become able toengage in their duties as sales representatives.
2. If a Sales Officer and Employee within a notification described in the preceding paragraph changes his/hername or is no longer engaged in the relevant duties due to retirement, etc., the Full Member must notify the
Association of such change using the form specified in the By-laws via the method of the Notification
Management System of Investment Trusts Association.
However, if the person who has ceased involvement in the business is simultaneously deprived of their
qualifications as a sales representative as stipulated in Article 4 of the Rules for JSDA Sales Representatives,
the member company may attach written notification thereof in lieu of listing the required notification items.
3. Full Members shall not have any of the following persons engage in Direct Offerings, etc.:(a) A person whose sales representative registration has been rescinded under the provisions of Article
64-6, Paragraph 1 of the FIEA and for whom five years have not passed since the date of said
rescission(b) A person who has been ordered to suspend his/her sales representative duties under the provisions ofArticle 64-6, Paragraph 1 of the FIEA and who is currently in the period of suspension for those duties(c) A person who has been ordered to suspend their sales representative duties under the provisions ofArticle 7 of the Rules for Registration, etc. of Sales Representatives and who is currently in the periodof suspension for those duties* Article 4 of the By-laws

Article 15.

By-laws

Necessary matters for the enforcement of these Regulations shall be stipulated in the By-laws.

Article 16.

OthersAny matters regarding Direct Offerings, etc. of beneficiary certificates, etc. not stipulated for in theseRegulations shall be decided by a resolution of the Board of Directors.

Article 17.

Delegation to Competent Committee

1. The Board of Directors shall be entitled to delegate to the Self-Regulation Committee the authority to amend
any By-laws relating to these Regulations or any of the various Guidelines concerning Direct Offerings, etc.
of beneficiary certificates, etc.
2. The Self-Regulation Committee shall promptly report to the Board of Directors any decisions made (limited
to those deemed necessary by the Board of Directors) concerning any delegated matters.

Supplementary Provision
These Regulations shall come into effect on March 17, 1994.

Supplementary Provision
The amended provisions of Article 5 shall come into effect on February 17, 1995.

Supplementary Provision
The amended provisions of Article 18 and Article 22 shall come into effect on December 1, 1997.

Supplementary Provision
The amended provisions of Article 11, Paragraph 1 shall come into effect on December 16, 1997.

Supplementary Provisions
1. This amendment shall come into effect on December 1, 1998.
2. For beneficiary certificates deposited for custody on or before November 30, 1998, the prior Regulations
shall apply until November 30, 1999.
3. For public offerings of securities investment trusts that received approval on or before November 30, 1998,
the term “prospectus, etc.” in Article 4 shall be deemed to be replaced with “explanatory note for beneficiary
certificates” during the period from December 1, 1998 to November 30, 2000.

Supplementary Provision
The amended provisions of Article 11, Paragraph 2 shall come into effect on March 23, 1999.

Supplementary Provision
The amended provisions of Article 7, Paragraph 3 shall come into effect on February 1, 2000.

Supplementary Provision
The heading of Chapter 5 and the amended provisions of Article 11-2 and Article 14-2 shall come into effect on
April 1, 2000.

Supplementary Provision
The amended provisions of Article 1, Article 2, and Article 11-2 shall come into effect on December 15, 2000.

Supplementary Provisions
The new provisions of Article 17 shall come into effect on April 1, 2001.

Supplementary ProvisionThis amendment shall come into effect on February 1, 2002.

Supplementary Provisions
This amendment shall come into effect on April 1, 2002.
Deleted the provisory clauseSupplementary Provisions
This amendment shall come into effect on October 25, 2002.
However, the amended provisions of Article 6 and Article 7 shall come into effect on the date of enforcement(January 6, 2003) of the Act on Identity Confirmation of Customers, etc. by Financial Institutions, etc.

Supplementary Provisions
1. This amendment shall come into effect on April 1, 2004.
2. Deleted

Supplementary Provisions
1. This amendment shall come into effect on October 1, 2004.
Provided, however, that this provision shall come into effect on November 1, 2004 for any trust company
that is the trustee company for an investment trust managed without instructions from the settlor and which isactually engaged in the business of Direct Offerings, cancellation, etc. when this amended provision is
implemented.
2. Any trust company that is the trustee company for an investment trust managed without instructions from thesettlor and which is actually engaged in the business of Direct Offerings, cancellation, etc. when thisamended provision is implemented shall provide immediate notification of the individuals engaged in thebusiness of Direct Offerings, cancellation, etc. on the date the amended provision is implemented.

Supplementary ProvisionThis amendment shall come into effect on January 19, 2007.

Supplementary Provisions
1. This amendment shall come into effect on September 30, 2007.
2. The proviso to supplementary provisions following the amendment on April 1, 2002 and the supplementaryprovisions 2 following the amendment on April 1, 2004 shall be repealed as of September 30, 2007.

Supplementary ProvisionThis amendment shall come into effect on November 16, 2007.

Supplementary Provisions
This amendment shall come into effect from the date of approval on the amendment of the Operational Rules
by the competent government agency (March 31, 2008).
However, the amended provisions of Article 7 shall come into effect on March 21, 2008.

Supplementary ProvisionThis amendment shall come into effect on October 1, 2008.

Supplementary ProvisionThis amendment shall come into effect on March 19, 2009.

Supplementary ProvisionThis amendment shall come into effect on April 1, 2011.

Supplementary ProvisionThis amendment shall come into effect on January 4, 2013.

Supplementary Provisions
This amendment shall come into effect on April 1, 2013.

Supplementary Provisions
This amendment shall come into effect on December 1, 2014 and will apply to investment trusts newly
purchased by customers on or after such implementation date.

Supplementary Provisions
This amendment shall come into effect on December 19, 2013. However, the term “establishing internal rules”
in Article 6-3 shall be deemed to be replaced with “establishing internal rules and other efforts to improveconditions” during the period from the implementation date until three months after the implementation date.

Supplementary Provisions
1. This amendment shall come into effect on June 8, 2017.
However, the amendments of Article 11 and Article 12 shall come into effect on March 31, 2018.
2. For members audited by a certified public accountant or auditing firm under the provisions of Article 12 of
the Regulations prior to the implementation date of this amendment, the provisions then in effect shallremain applicable to audits conducted with a reference date on or before March 31, 2018. In such a case, themember may submit a previous audit report, etc. for notification to the Association as set forth in Article 11,
Paragraph 8.
* The amended provisions are as follows:
Amended Article 1; Article 5; Article 7, Paragraph 1; Article 8, Paragraphs 1 through 3.
Deleted Article11, Paragraph 1 and moved up Article 11, Paragraphs 2 through 3.
Newly established Article 11, Paragraphs 3 through 8 and Article 11-2.
Amended the heading for Article 12, and Paragraph 2 of the same article. Newly established Article 12, Paragraph 3.
Amended Article 13-2; Article 14, Paragraph 1; Article 14, Paragraph 2.

Supplementary ProvisionThis amendment shall come into effect on September 12, 2019.
* Corrected the deviation in Article 7

Supplementary ProvisionThis amendment shall come into effect on June 1, 2021.
* The amended provisions are as follows:
Article 11, Paragraph 8; Article 14, Paragraph 1; Article 14, Paragraph 2.

Supplementary ProvisionThis amendment shall come into effect on the date of approval (July 1, 2021) by the competent government
agency for amendments to Articles of Incorporation.
* The amended provisions are as follows:
Article 5; Article 10-2; Article 12, Paragraph 1; Article 14, Paragraphs 1 through 3

By-laws on Regulations for Direct Offerings, etc. of Beneficiary Certificates, etc.
Established on March 17, 1994
Revised on November 7, 1997
Revised on November 27, 1998
Revised on April 16, 1999
Revised on June 19, 2000
Revised on September 22, 2000
Revised on December 15, 2000
Revised on March 15, 2002
Revised on June 21, 2002
Revised on October 25, 2002
Revised on March 19, 2004
Revised on September 15, 2004
Revised on January 19, 2007
Revised on September 21, 2007
Revised on February 17, 2011
Revised on September 18, 2013
Revised on June 8, 2017
Revised on April 18, 2019
Revised on May 20, 2021

Article 1.

Purpose

These By-laws provide for matters necessary for enforcement of the Regulations for Direct Offering, etc. of
Beneficiary Certificates, etc. (hereinafter referred to as the “Regulations”).

Article 2.

Notification of the Total Return

Notification of the Total Return provided in Article 10-2 of the Regulations shall be conducted as stipulated
below.
(1) Scope of subject investment trusts(i)Notification of the Total Return shall be given for those investment trusts where the public offeringof securities (as defined in Article 2, Paragraph 3 of the Financial Instruments and Exchange Act (ActNo. 25 of 1948; hereinafter referred to as the "FIEA" )) were conducted among all investment trusts(meaning investment trusts as defined in Article 10-2 of the Regulations; the same shall apply
hereinafter ) which are managed by Full Members through entries or records in a transfer accountbook. )

(ii) Notwithstanding (i) above, the following investment trusts may be excluded from the requirements
for the Total Return notification.
(a) An investment trust which was being traded on the Financial Instruments Exchange Market at thetime of the customer's purchase;(b) Investment trusts purchased by a customer as investment assets under a discretionary investment
contract (meaning contracts as defined in Article 2, Paragraph 8, Item 12 (b) of the FIEA );(c) Investment trusts listed in the provisions of Article 65, Item 2 (a) through (c) of the Cabinet Office
Ordinance on Financial Instruments Business, etc. (Cabinet Office Ordinance No. 52 of 2007);(d) Bond investment trusts (meaning investment trusts as defined in Article 13, Item 2 (a) or (c) of theOrdinance for Enforcement of the Act on Investment Trusts and Investment Corporations (Cabinet
Office Ordinance No. 129 of 2000 ).);

(e) Umbrella investment trusts (meaning an investment trust managed as a single fund combining
multiple sub-funds under management) which satisfy all of the following requirements;a)Funds which include two or more of sub-funds that state in their investment trust contracts, etc.
that their purpose is to actively invest for a purpose other than hedging and will be linked either
positively (bull-type fund) or negatively (bear-type fund) (including those with an inverse
correlation of a certain multiple) to various indices, assets, etc., as well as sub-funds that statethat their purpose is to function as a temporary reserve fund to ensure stable management(money pool fund)b)

Funds where switching between sub-funds is possible (including sub-funds other than thosedescribed in a) above ; the same shall apply to c) below)c)(f)Funds that do not include sub-funds which make distributions more than twice a year
Investment trusts and so-called Million Investment Trusts which are deemed to be a savings
contract under the workers' property accumulation savings system (as defined in Article 6;
Paragraphs 1, 2 and 4 of the Workers' Property Accumulation Promotion Act (Act No. 92 of1971)) and for which the amount of deposit, etc. shall be notified periodically (as provided for in
Article 13-20 of Enforcement Order for the Workers' Property Accumulation Promotion Act(Cabinet Order No. 332 of 1971))(g) Investment trusts purchased using funds contributed by a defined contribution pension plan
(meaning a defined contribution pension as defined in Article 2, Paragraph 1 of the DefinedContribution Pension Act (Act No. 88 of 2001))(h) Investment trusts for which a purchase agreement has not been concluded between the relevant
Full Member and the customer
Provided, however, that investment trusts succeeded as result of a merger between Full Members
or a company split shall be handled as described in (iii) below.
(i)

Investment trust transferred between the accounts held by the same member company(j)Investment trust held by a customer for more than ten (10) consecutive years(iii) Notification of the Total Return for investment trusts held by customers that have been succeeded as
the result of a merger between Full Members or a corporate split shall be provided by the surviving
company or the successor company.
In this case, notification of the Total Return shall be given for the entire period during which thecustomer held such investment trust. However, if it is difficult to transfer the relevant data, thepurchase price may be determined by applying the market price, etc. on the date of receipt of suchinvestment trust into the customer's account, or the accumulated distribution received prior to suchreceipt may be excluded from the calculation of the Total Return.
(2) Scope of subject customers
This applies to individual customers (excluding professional investors).
However, professional investors and corporate customers may be included.
(3) Method of calculating the Total Return(i)

The Total Return shall be the amount calculated using the following formula:("(a) Appraisal value"+"(b) Cumulative distribution amount received"+ "(c) Accumulated sales
proceeds")-"(d) Accumulated purchase amount"(ii) The numerical value for each factor in the calculation formula for investment trusts shall be derived
as follows:(a) Appraisal value shall be obtained by evaluating all units of the investment trust held by therelevant customer on the base date of calculation.
Appraisal value = [Base value on the base date of calculation] x [Number of units held on the basedate of calculation] / [Calculation unit](Note) The redemption value may be used in lieu of the base value.
(b) Cumulative distribution amount received means sum of the distribution payments received (aftertax) received by the relevant customer during his/her holding period of the relevant investment
trust. However, reinvested amount of any distribution from the reinvestment-type investment trust
shall not be included.
Cumulative distribution amount received = [Cumulative sum of the distribution payments
received]
Distribution payments received = [distribution amount for the period (distribution amount per unit
x number of units held] - [Tax on the distribution amount for the period](Note 1) Reinvested amount of the reinvestment account may be included in the cumulative
distribution amount received. Provided, however, that the reinvested amount shall be also includedin the accumulated purchase amount.
(Note 2) Distribution payments received may be used on a pre-tax basis.
(c) Accumulated sales proceeds mean the total sales amount received by the customer as result ofpartial sale(s) of his/her holdings during the holding period of the relevant investment trust.
Accumulated sales proceeds = [Cumulative sum of sales proceeds]
Sales proceeds = [Redemption value] x [Number of units to be sold] / [Calculation unit] [Redemption fee] - [Consumption tax on the redemption fee](d) Accumulated purchase amount means the cumulative sum of amounts used to purchase therelevant investment trust. However, reinvested amount of any distribution from thereinvestment-type investment trust shall not be included.
Accumulated purchase amount = [Cumulative sum of purchase amounts]
Purchase amount = [Contract Price (Base value x Number of units purchased / Calculation unit)] +[Sales commission] + [Consumption tax on the sales commission](Note) When reinvested amount of the reinvestment account is included in the cumulative
distribution amount received, such reinvestment shall also be included in the accumulated
purchase amount.
(iii) For investment trusts denominated in foreign currencies, the Total Return shall be calculated in thecurrency (foreign currency) pertinent to such investment trusts. However, the Total Return may also
be calculated on a yen basis.
(4) Method of notification

(i)Notification of the Total Return shall be made by any of the following means;(a) Delivery of documents;(b) Transmission using a facsimile machine;(c) Transmission via e-mail (meaning e-mail as defined in Article 2, Item 1 of the Act on Regulationof Transmission of Specified Electronic Mail (Act No. 26 of 2002). ), or;(d) Transmission via the Internet or any other telecommunication line(ii) If notification of the Total Return is provided via a method set forth in (b) through (d) of (i) above, theprior consent of the relevant customer shall be obtained for using said method to provide notificationof the Total Return. However, customers who have already agreed to receive other documents via
electromagnetic means may be notified in advance of the fact that the notification of the Total Return
will be delivered via such means in lieu of consent.
(iii) Notwithstanding the provision of (i) above, until November 30, 2017, a Full Member may notify its
customers of Total Return by responding to inquiries received from such customers regarding their
Total Returns. In this case, the method of notification of the Total Return may be oral or any of themethods set forth in (a) through (d) of (i) above.
(iv) When notifying a customer of the Total Return in the manner set forth in (i),(d) above or pursuant to
the provision of (iii) above, a Full Member shall send a written notification that the customer canreceive the Total Return notification in such electromagnetic means before such customer becomesable to receive the notification by such means. However, any customer who has already given
consent to receive other documents by electromagnetic means may be notified by such means in lieu
of written notification (the same shall apply to the notification provided for in (6) Contents of
notification, (ii) below.).
(5) Frequency of notification and base date of calculation(i)

Notification of the Total Return as provided for in (4) Method of notification, (i) above shall be given
at least once a year. In this case, the base date of calculation for the Total Return shall be determinedby each Full Member, and the Total Return of the investment trust held by customers on such basedates shall be notified to the relevant customers.

(ii) When providing notification in accordance with (4) (iii) above, the Total Return shall be calculated atleast once per year and the most recently calculated Total Return shall be notified.
(6) Content of notification(i)

Notifications of the Total Return shall include the following items:(a) Name of the relevant investment trust;(b) Base date of calculation;(c) Appraisal value;(d) Cumulative distribution amount received and accumulated sales amount (notification of the total
amount of receipts which is the sum of both are acceptable.);(e) Accumulated purchase amount;(f) Amount of Total Return;(g) Calculation formula for Total Return;

(h) Statement to the effect that the amount listed in the document may not be used for calculating taxes,
and;(i) Other matters deemed necessary by the Full Members(ii) Notwithstanding (i) above, in the case of oral response to the inquiry as described in the (4)(iii) if thecustomer has been notified in advance in writing concerned with matters described in (i), (g) and (h)above, the Full Member may notify matters described in (i), (a), (b) and (f) above as well as othermatters deemed necessary by such Member.
(iii) With regard to the notification of the Total Return, an environment must be maintained in whichcustomers can understand the scope of investment trusts subject to the notification of the Total Returnand the basis of each calculation factor in the calculation formula for the Total Return.

Article 3.

Asset Management Companies

An asset management company as described in Article 11, Paragraph 2 of the Regulations shall be a company
which is deemed to have no issue in protecting investors by the settlor in consideration of the financial
institution’s offices and other financial foundations as prescribed in Article 51-3, Paragraph 1, Item 1 of theOrder for Enforcement of the Income Tax Act as well as its history of achievements with securities
management and operations.

Article 3-2. Matters to Be Included in the Management Report
1. The matters to be included in the management report as provided in Article 11, Paragraph 5 of theRegulations shall be as follows:(1) The obligation to comply with the laws and regulations, etc. concerning segregated management;(2) The obligation for establishing and operating an effective internal control system to ensure legal
compliance with the laws and regulations, etc. concerning segregated management;(3) The obligation to entrust segregated customer funds or manage customer securities separately if themember is also an account management institution as of the base date for audits (hereinafter referred to as
the “Base Date”);(4) The obligation to perform procedures to confirm that segregated management of customer assets has been
implemented in compliance with the laws and regulations;(5) Whether or not segregated management for customer assets complies with the laws and regulations as of theBase Date as a result of performing the procedures set forth in the preceding item;(6) The content of any event that may have a material impact on compliance with the laws and regulations, etc.
concerning segregated management which occurred after the Base Date but before the management reportsubmission date
2. The reference form for the management report shall be Attached Form 1.
3. The form specified in the By-laws as prescribed in Article 11, Paragraph 8 of the Regulations shall be
Attached Form 2.

Article 4.

Notifications for Sales Officers and Representatives

1. The form specified in the By-laws as prescribed in Article 14, Paragraph 1 of the Regulations shall be
Attached Table 1.
2. The form specified in the By-laws as prescribed in Article 14, Paragraph 2 of the Regulations shall be
Attached Table 2.

Supplementary ProvisionThis standard shall come into effect on March 17, 1994.

Supplementary Provision
The revised Regulations of Article 4, Article 5, and Article 6 shall come into effect on December 1, 1997.

Supplementary Provisions
The revised Regulations of Article 3, Article 4, Article 5, and Article 6 shall come into effect on December 1,
1998.
However, for beneficiary certificates deposited for custody on or before November 30, 1998, the priorstandards shall apply until November 30, 1999.

Supplementary Provision
The revised Regulations of Article 3 shall come into effect on April 16, 1999.

Supplementary Provision
The revised Regulations of Attached Table 1 shall come into effect on June 19, 2000.

Supplementary Provision
The revised Regulations of Attached Table 1 shall come into effect on September 22, 2000.

Supplementary ProvisionThis amendment shall come into effect on December 15, 2000.

Supplementary Provisions
This amendment shall come into effect on April 1, 2002.
Deleted the provisory clause

Supplementary Provisions
This amendment shall come into effect on October 25, 2002.
Deleted the provisory clause

Supplementary Provisions

1. This amendment shall come into effect on April 1, 2004.
2. Deleted

Supplementary ProvisionThis amendment shall come into effect on October 1, 2004.

Supplementary ProvisionThis amendment shall come into effect on January 19, 2007.

Supplementary Provisions
1. This amendment shall come into effect on September 30, 2007.
2. The proviso to supplementary provisions following the amendment on April 1, 2002, the proviso to
supplementary provisions following the amendment on October 25, 2002, and the supplementary provision 2
following the amendment on April 1, 2004 shall be repealed as of September 30, 2007.

Supplementary ProvisionThis amendment shall come into effect on April 1, 2011.

Supplementary ProvisionThis amendment shall come into effect on December 1, 2014 and will apply to investment trusts newly
purchased by customers on or after such implementation date.

Supplementary ProvisionThis amendment shall come into effect on June 8, 2017.
However, the amendments of Article 3 and Article 3-2 shall come into effect on March 31, 2018.
* The amended provisions are as follows:
Article 3 is amended. Article 3-2 is newly established. Attached Forms 1 and 2 are newly established. Attached Tables 1 and
2 are amended.

Supplementary ProvisionThis amendment shall come into effect on May 1, 2019.
* Necessary arrangement in connection with the change of era nameSupplementary ProvisionThis amendment shall come into effect on June 1, 2021.
* The amended provisions are as follows:- Attached Form 2 as provided in Article 3-2, Paragraph 3- Attached Tables 1 and 2 as provided in Article 4, Paragraphs 1 and 2

Attached Form 1[Reference Form 1](For a legal audit)
Management Report on Compliance with the Laws and Regulations, etc. Concerning Segregated Management
Reiwa (or Western calendar) (MM) (DD) (YYYY)____ Co., Ltd.
President and Representative Director ____ [Seal] (Note 1)
As the management (Note 1) of ____ Co., Ltd. (hereinafter the “Company”), pursuant to Article 2, Item 1 of
the Order Regarding Account Management Institutions and in accordance with Article 43-2, Paragraphs 1
and 2 of the Financial Instruments and Exchange Act, we are hereby responsible for the segregatedmanagement of customer assets in compliance with the following related laws and regulations and the rulesof the Investment Trusts Association, Japan.
‐
‐

‐
‐
‐

Article 43-2, Paragraph 1 and Paragraph 2 of the Financial Instruments and Exchange Act
Article 136, Article 138, Article 139, Article 141 (excluding, however, Paragraph 1, Item 3 and Items
10 through 13 and Paragraph 5 through Paragraph 7) and Article 141-3 of the Cabinet Office
Ordinance on Financial Instruments Business, etc.
August 2007 Notice No. 57 and No. 58 of the Financial Services Agency
Article 11 and Article 12 of the Regulations for Direct Offerings, etc. of Beneficiary Certificates, etc.
By-laws on Segregated Customer Trust Funds for Direct Offering, etc. of Beneficiary Certificates,etc.

We have the obligation to establish and operate an effective internal control system to comply with laws andregulations, etc., have entrusted segregated customer funds as of Reiwa (or Western calendar)
MM/DD/YYYY and have the obligation to manage customer securities separately.
The Company has implemented procedures to ensure that it applies segregated management to client assets
in compliance with applicable laws and regulations, etc. (Note 2)
As a result of implementing these procedures, the Company represents that it employs segregatedmanagement for customer assets in compliance with applicable laws and regulations, etc. as of Reiwa (orWestern calendar) MM/DD/YYYY. (Note 3)
End of document(Note 1) The term “management” means any director or executive officer who is responsible for the
execution of business operations at the company. For foreign companies, it means a representativein Japan as defined in Article 29-4, Paragraph 1, Item 4 (c) of the Financial Instruments andExchange Act (including a person acting as a representative as defined in Article 65, Paragraph 1of the same Act).
(Note 2) If any procedures were unable to be implemented, either of the following shall be included as theeffect of the procedures not being implemented:

(Sentence 1)
We have implemented the procedures to verify that ____ Co., Ltd. has segregated customer assets incompliance with the applicable laws and regulations, etc., but have not implemented the procedures
described below.
NoticeList the procedures that were unable to be executed and the details of their impacts. ········As a result of implementing these procedures, we assert that, except for the items above, ____ Co., Ltd. has
employed segregated management for customer assets in compliance with applicable laws and regulations,etc. as of Reiwa (or Western calendar) MM/DD/YYYY.

(Sentence 2)
We have implemented the procedures to verify that ____ Co., Ltd. has segregated customer assets incompliance with the applicable laws and regulations, etc., but have not implemented the procedures
described below.
NoticeList the procedures that were unable to be executed and the details of their impacts. ········As a result of implementing these procedures, we do not assert that, in view of the importance of the items
above, ____ Co., Ltd. has employed segregated management for customer assets in compliance withapplicable laws and regulations, etc. as of Reiwa (or Western calendar) MM/DD/YYYY.

(Note 3) The following shall be stated in the case of any non-compliance with laws and regulations, etc.
Because of the following items uncovered as a result of implementing these procedures, we assert that ____
Co., Ltd. has not employed segregated management for customer assets in compliance with applicable laws
and regulations, etc. as of Reiwa (or Western calendar) MM/DD/YYYY.
NoticeList the details of non-compliance with laws and regulations, etc. ×××

(For Audits under Association Rules, etc.)

Management Report on Compliance with the Laws and Regulations, etc. Concerning Segregated Management
Reiwa (or Western calendar) MM/DD/YYYY____ Co., Ltd.
President and Representative Director ____ [Seal] (Note 1)
As the management (Note 1) of ____ Co., Ltd. (hereinafter the “Company”), pursuant to Article 43-2,
Paragraph 2 of the Financial Instruments and Exchange Act in accordance with Article 123, Paragraph 1,
Item 10 of the Cabinet Office Ordinance on Financial Instruments Business, etc. as set forth in Article 40,
Item 2 of the Financial Instruments and Exchange Act, we are hereby responsible for the segregatedmanagement of customer assets in compliance with the following related laws and regulations and the rulesof the Investment Trusts Association, Japan.
‐
‐

‐
‐
‐

Article 43-2, Paragraph 2 of the Financial Instruments and Exchange Act
Article 138, Article 139, Article 141 (excluding, however, Paragraph 1, Item 3 and Items 10 through13 and Paragraph 5 through Paragraph 7) and Article 141-3 of the Cabinet Office Ordinance on
Financial Instruments Business, etc.
August 2007 Notice No. 57 and No. 58 of the Financial Services Agency
Article 12 of the Regulations for Direct Offerings, etc. of Beneficiary Certificates, etc.
By-laws on Segregated Customer Trust Funds for Direct Offering, etc. of Beneficiary Certificates,etc.

We have the obligation to establish and operate an effective internal control system to comply with laws andregulations, etc., have entrusted segregated customer funds as of Reiwa (or Western calendar)
MM/DD/YYYY and have the obligation to conduct segregated management.
The Company has implemented procedures to ensure that it applies segregated management to client assets
in compliance with applicable laws and regulations, etc. (Note 2)
As a result of implementing these procedures, the Company represents that it employs segregatedmanagement for customer assets in compliance with applicable laws and regulations, etc. as of Reiwa (orWestern calendar) MM/DD/YYYY. (Note 3)
End of document(Note 1) The term “management” means any director or executive officer who is responsible for the
execution of business operations at the Company. For foreign companies, it means a representativein Japan as defined in Article 29-4, Paragraph 1, Item 4 (c) of the Financial Instruments andExchange Act (including a person acting as a representative as defined in Article 65, Paragraph 1of the same Act).
(Note 2) If any procedures were unable to be implemented, either of the following shall be included as theeffect of the procedures not being implemented:

(Sentence 1)
We have implemented the procedures to verify that ____ Co., Ltd. has segregated customer assets incompliance with the applicable laws and regulations, etc., but have not implemented the procedures
described below.
NoticeList the procedures that were unable to be executed and the details of their impacts. ········As a result of implementing these procedures, we assert that, except for the items above, ____ Co., Ltd. has
employed segregated management for customer assets in compliance with applicable laws and regulations,etc. as of Reiwa (or Western calendar) MM/DD/YYYY.

(Sentence 2)
We have implemented the procedures to verify that ____ Co., Ltd. has segregated customer assets incompliance with the applicable laws and regulations, etc., but have not implemented the procedures
described below.
NoticeList the procedures that were unable to be executed and the details of their impacts. ········As a result of implementing these procedures, we do not assert that, in view of the importance of the items
above, ____ Co., Ltd. has employed segregated management for customer assets in compliance withapplicable laws and regulations, etc. as of Reiwa (or Western calendar) MM/DD/YYYY.

(Note 3) The following shall be stated in the case of any non-compliance with laws and regulations, etc.
Because of the following items uncovered as a result of implementing these procedures, we assert that ____
Co., Ltd. has not employed segregated management for customer assets in compliance with applicable laws
and regulations, etc. as of Reiwa (or Western calendar) MM/DD/YYYY.
NoticeList the details of non-compliance with laws and regulations, etc. ×××

[Reference Form 2]
For where there are no events that affect compliance with the laws and regulations, etc. concerning
segregated management as of the Base Date, but between the Base Date and the management reportsubmission date, subsequent events do severely affect compliance with the laws and regulations, etc.
concerning segregated management(Omitted)

As a result of implementing these procedures, ____ Co., Ltd. represents that it employs segregatedmanagement for customer assets in compliance with applicable laws and regulations, etc. as of Reiwa (orWestern calendar) MM/DD/YYYY.

Significant Subsequent Events
As of Reiwa (or Western calendar) MM/DD/YYYY, ____ Co., Ltd. is in the process of a merger by
absorption, with ____ Co., Ltd. as the surviving company and ____ Co., Ltd. as the dissolved and absorbed
company.

Attached Form 2
Application Date MM/DD/YYYY
To the Chairperson of the Investment Trusts Association, Japan:(Trade Name or Name)(Representative)

Submission of a Segregated Management Audit Report

We received a separate management audit report for the Company on MM/DD/YYYY andwill therefore submit it in accordance with the provisions of Article 11, Paragraph 8 of theRegulations for Direct Offerings, etc. of Beneficiary Certificates, etc.

(Attached documents: copy of the segregated management audit report and copy of the management report)

Attached Table 1: Notification of Sales Officers and Representatives (related to Article 4, Paragraph 1)
Application Date MM/DD/YYYY

Notification of Sales Officers and Representatives

Trade Name or Name
Telephone (Name

Furigana)

Date of Birth

Date of Engagement

MM/DD/YYYY

MM/DD/YYYY

MM/DD/YYYY

MM/DD/YYYY* Make a note of any maiden names or aliases used in business.

Attached Table 2: Notification of Change of Sales Officers and Representatives (related to Article 4, Paragraph2)
Application Date MM/DD/YYYY

Notification of Change of Sales Officers and Representatives

Trade Name or Name
Telephone (Name

Furigana

Date of Disengagement(or date of change))
Remarks

MM/DD/YYYY

MM/DD/YYYY* When there is a change in the name of a person included in a previous notification,enter the details of the previous notification (name) in the remarks column.
Also make a note if the old name is used for business after a name change.

By-laws on Segregated Customer Trust Funds for Direct Offering, etc. of
Beneficiary Certificates, etc.
Established on December 15, 2000
Revised on March 19, 2004
Revised on January 19, 2007
Revised on November 16, 2007
Revised on September 19, 2008
Revised on February 17, 2011
Revised on June 8, 2017

Article 1.

Purpose

These By-laws stipulates the necessary matters pertaining to segregated management for money to be returned
to customers regarding the business of Direct Offerings, etc. (meaning a Direct Offering, etc. as defined in
Article 1 of the Regulations for Direct Offerings, etc. of Beneficiary Certificates, etc. (hereinafter referred to as
the “Regulations”); the same shall apply hereinafter) as prescribed in Article 12 of the Regulations conductedby investment trust management member companies (meaning investment trust management companies as
defined in Article 2, Paragraph 11 of the Act on Investment Trusts and Investment Corporations (Act No. 198of 1951) and trust companies which are the trustee company of an investment trust managed without
instructions from the settlor; the same shall apply hereinafter).

Article 2.

Segregated Management

1. When an investment trust management member company discontinues services for a Direct Offering, etc.,
the company must manage money equivalent to the amount to be refunded to the customer separately fromits own individual assets.
2. An investment trust management member company must entrust money equivalent to the amount to berefunded to the customer to either a trustee company or financial institution operating a trust business(hereinafter referred to as “Trustee Company”) located in Japan for the purpose of managing said money.

Article 3.

Amount to Be Refunded to the Customer

1. The amount to be refunded to the customer prescribed in preceding article shall be the amount calculated
under Article 138 of the Cabinet Office Ordinance on Financial Instruments Business, etc. (Cabinet Office
Ordinance No. 52 of 2007, hereinafter referred to as the “Cabinet Office Ordinance”) (hereinafter referred as
the “Individual Segregated Customer Fund Amount”; the same shall apply hereinafter).
2. When calculating the Individual Segregated Customer Fund Amount under the preceding paragraph, theinvestment trust management member companies may deduct an amount equivalent to any applicableadvance payments for the customer’s purchase price.

Article 4.

Requirements, etc. for Segregated Customer Trust Funds

1. Investment trust management member companies must satisfy the requirements for trusts prescribed in
Article 2, Paragraph 2 (hereinafter referred to as “Segregated Customer Trust Fund”) in accordance with therequirements provided in Article 141 of the Cabinet Office Ordinance.

2. The beneficiary’s representative to be appointed in accordance with the provisions of Article 141, Paragraph
1, Item 3 of the Cabinet Office Ordinance shall be a person to which any of the following apply:(1) A representative director or any other equivalent person in the investment trust management member
company who is responsible for the management of business execution;(2) A person possessing suitable qualifications to supervise the execution of trust management businesssuch as a lawyer, certified public accountant, and so forth, or;
3. If any of the events described in each item of Article 79-53, Paragraph 1 of the FIEA apply to an investment
trust management member company, said member shall appoint a person described in Item 2 of thepreceding paragraph as the beneficiary’s representative.

Article 5.

Notification for Discontinuance of Services for Direct Offering, etc.

1. If an investment trust management member company, etc. decides to discontinue services for Direct Offering,etc. or if any of the reasons described in each item of Article 79-53, Paragraph 1 of the FIEA applies to said
member, the member must immediately notify the beneficiary’s representative thereof (in the case of anevent described in the items of Article 79-53, Paragraph 1 of the FIEA, the beneficiary’s representative shallbe the beneficiary’s representative provided for in Article 4, Paragraph 3; the same shall apply hereinafter inthis article).
2. If the beneficiary’s representative receives the notification described in the preceding paragraph from theinvestment trust management member company, the representative must immediately notify the Trustee
Company to that effect.

Article 6.

Prohibition of Instructions on Investment in Cases Corresponding to the Reasons Defined in theItems of Article 79-53, Paragraph 1 of the FIEA
If any of the reasons described in items of Article 79-53, Paragraph 1 of the FIEA applies to an investment trust
management member company, such member shall not provide the trustee with any instructions on investment
except when specifically acknowledged by the beneficiary’s representative (meaning the beneficiary’s
representative described in Article 4, Paragraph 3).

Article 7.

Books and Documents, etc. Pertaining to Segregated Customer Trust Funds

1. Investment trust management member companies shall notify the beneficiary’s representative of the status of
the necessary amount of segregated customer funds (meaning the total amount of the Individual Segregated
Customer Fund Amount; the same shall apply hereinafter), the amount of segregated customer trust funds(meaning the appraised value of the principal of the trust property as provided for in that item; the same shallapply hereinafter), and the necessary amount of additional trusts (meaning the amount equivalent to any
shortfall if the amount of segregated customer trust funds as provided for in that item is less than thenecessary amount of segregated customer funds; the same shall apply hereinafter) as of the reappraisal basedate (meaning the reappraisal base date set forth in Article 141, Paragraph 1, Item 7 of the Cabinet Office
Ordinance).
2. Investment trust management member companies shall prepare books listing the necessary amount ofsegregated customer funds, the amount of segregated customer trust funds, and the necessary amount ofadditional trusts on each settlement date.
3. The books and documents described in the preceding paragraph shall be kept for 10 years from the date of
their preparation.

Supplementary Provisions
1. These By-laws shall come into effect from December 15, 2000.
2. The Board of Directors’ Resolution dated February 18, 2000, entitled “Standards for Segregated Customer
Trust Funds for Direct Selling Pertaining to Public Offerings of Beneficiary Certificates and Investment
Securities Conducted by Securities Investment Trust Entrustment Businesses” is repealed.

Supplementary ProvisionThis amendment shall come into effect on April 1, 2004.

Supplementary ProvisionThis amendment shall come into effect on January 19, 2007.

Supplementary ProvisionThis amendment shall come into effect on November 16, 2007.

Supplementary ProvisionThis amendment shall come into effect on October 1, 2008.

Supplementary ProvisionThis amendment shall come into effect on April 1, 2011.

Supplementary ProvisionThis amendment shall come into effect on June 8, 2017.
* The amended provisions are as follows:
Article 1 is revised. Article 4, Paragraph 2 is revised.

Rules on Complex Investment Trusts Similar to Over-the-Counter Derivatives
Transactions
Established on February 17, 2011
Revised on December 20, 2012
Revised on June 10, 2021

Article 1.

PurposeThe purpose of these Rules is to protect investors by thoroughly developing appropriate products and preparing
appropriate disclosure materials for complex investment trusts similar to over-the-counter derivatives
transactions and by ensuring proper public offerings or private placements of beneficiary certificates forinvestment trusts established by the Company in order to secure investor confidence in financial and capital
markets.

Article 2.

Definition of Complex Investment Trusts Similar to Over-the-Counter Derivatives Transactions

In these Rules, the term “complex investment trusts similar to over-the-counter derivative transactions” means,among bonds with redemption or interest conditions set by derivatives transactions prescribed in Article 2,
Paragraph 20 of the Financial Instruments and Exchange Act (Act No. 25 of 1948, hereinafter referred to as the“FIEA”) or commodity derivative transactions prescribed in Article 2, Paragraph 15 of the Commodity
Derivatives Transaction Act (Act No. 239 of 1950), or bonds structured by a method that has the same effect assuch derivatives transactions, an investment trust that has the same merchantability as such structured bonds oran investment trust that has the same effect as such structured bonds by investing in such structured bonds as set
forth in any of the following items (except when the bond is a government bond and any of the following apply
due to deterioration of the credit status of either the issuing company or the relevant company if the bond has amechanism that refers to the credit status of a single corporation):(a) Those for which the redemption price could be below face value (excluding those designed to have thefluctuation rate of redemption price correspond to the numerical value obtained by multiplying thefluctuation rate of the price or a specific index from the date of issue until redemption (hereinafterreferred to as the “Benchmark Index”) by a preset multiple (limited to 1 or -1)) or those with conditions
for redemption with other securities due to the automatic exercise of derivative trading rights, etc.
(b) Those for which the interest is not fixed at time of issuance and for which redemption money is not paidin the same currency as the purchase currency (excluding those designed to have interest rate
fluctuations correspond to fluctuation rate of the interest index.)(c) Those for which the interest is not fixed at time of issuance and for which interest is not paid in the same
currency as the purchase currency (excluding those designed to have interest rate fluctuations
correspond to fluctuation rate of the interest index.)(d) Those for which, depending on conditions, the interest rate will be zero or very close to zero (excluding
those designed to have interest rate fluctuations correspond to fluctuation rate of the interest index.)Article 3.

General Rules for Direct Offerings, etc.

1. When soliciting new acquisition of beneficiary certificates of investment trusts among those established by
the Management Company and managed under instructions from the settlor, investment trust managementcompanies (meaning those defined in Article 2, Paragraph 11 of the Act on Investment Trusts andInvestment Corporations (Act No. 198 of 1951), hereinafter a “Management Company”) and financial
instruments intermediary service providers (meaning a financial instruments intermediary service provider
as defined in Article 4, Paragraph 1, Item 1 of the Articles of Incorporation; the same shall apply hereinafter)shall fully understood the characteristics and risks of the investment trust and shall not solicit acquisition of
those for which a suitable customer to acquire the investment trust cannot be supposed.
2. Management Companies and financial instruments intermediary service providers (hereinafter referred to as“Management Companies, etc.”) must fully explain to and strive to gain the understanding of customers
regarding the significant matters of public offerings or private placements and other business of beneficiary
certificates of investment trusts managed under instructions from the settlor established by the Management
Company.

Article 4.

Criteria for the Commencement of Solicitation

When soliciting customers (limited to individuals and excluding professional investors (meaning professional
investors as defined in Article 2, Paragraph 31 of the FIEA (excluding those who are deemed to be a customer
who is not a professional investor with regard to the types of contracts listed in Article 53, Item 1 or Item 2 of
the Cabinet Office Order on Financial Instruments Business, etc. (Cabinet Office Order No. 52 of 2007;
hereinafter the “Order on Financial Instruments Business”) in accordance with the provisions of Article 34-2,
Paragraph 5 of the FIEA and including those who are deemed to be professional investors with regards to thetypes of contracts listed in Article 53, Item 1 and Item 2 of the Order on Financial Instruments Business inaccordance with Article 34-3, Paragraph 4 of the FIEA (including when applied mutatis mutandis to Article
34-4, Paragraph 6 of the same act)); the same shall apply hereinafter in Article 5 and Article 6); the same shallapply hereinafter in this article) for the acquisition (limited to those conducted by visiting or telephoning acustomer who has not requested the solicitation of said acquisition, and those conducted at the head office orother sales or business offices of the Management Company to a customer who has not requested thesolicitation of said acquisition) of beneficiary certificates of complex investment trusts similar toover-the-counter derivatives transactions established by the Management Company, Management Companies,
etc. shall set Guidelines for the Commencement of Solicitation and shall not solicit the acquisition to customers
who do not meet the guidelines.

Article 5.

Delivery of Alert Documents, etc.

1. When intending to conclude a contract involving the acquisition of complex investment trusts similar toover-the-counter derivatives transactions established by the Management Company, Management
Companies, etc. must deliver alert documents to the customer (excluding professional investors; the same
shall apply hereinafter in this article and the following article) in advance. Provided, however, that this shallnot apply to cases where alert documents involving the acquisition of an investment trust with the same

details as such investment trust were delivered to the customer within one year of the conclusion of theinvestment for acquisition and the customer has agreed to not be issued a prospectus pursuant to theprovisions of Article 15, Paragraph 2, Item 2 of the FIEA.
2. The alert documents described in the preceding paragraph must clearly and accurately indicate the following
matters:(1) Alerts regarding risk
(2) The fact that it is possible to use the service for complaint processing and dispute resolution from the
Non-Profit Organization, Financial Instruments Mediation Assistance Center engaged in complaint anddispute resolution services entrusted by the Association in accordance with Article 12, Paragraph 2 andArticle 13, Paragraph 2 of Operational Rules, and the contact information thereof
3. When Management Companies, etc. intend to conclude a contract regarding the acquisition of an investment
trust with a customer, they shall provide advance explanations on the matters set forth in the items of thepreceding paragraph in a manner and to the degree necessary for such customer to understand the matters inlight of the customer’s knowledge, experience, status of assets, and purpose for concluding the contract.
4. If a contract is concluded for the acquisition of an investment trust within one year of the delivery date foralert documents for an investment trust with the same contents as said investment trust (including the datethat alert documents are deemed to have been delivered as set forth in this Paragraph), the provisions of theproviso to Paragraph 1 shall apply by deeming that alert documents were delivered on the date of conclusion.

Article 6.

Obtaining Confirmation Documents from Customers

When intending to conclude a contract with a customer concerning the acquisition of complex investment trusts
similar to over-the-counter derivatives transactions established by the Management Company, Management
Companies, etc. shall obtain a confirmation document from the customer regarding the acquisition in order toobtain confirmation from the customer that they have understood the following matters and will make apurchase in response to the solicitation for acquisition at the discretion and responsibility of the customer.
(1) Details of the significant matters in Article 3, Paragraph 2(2) Details in the contract stating that the customer can conduct transactions in light of the fact that, basedon the amount of estimated loss through the contract (including the amount of a sale (early cancellation)in the event of a redemption before maturity (early cancellation) (provisional estimate)), the customer
can tolerate the amount of the loss and the impact that the expected amount of loss will have on thecustomer’s business or the state of the customer’s finances or assets.

Article 7.

Delivery of Documents via Electromagnetic Means, etc.

1. Management Companies, etc. may provide the matters to be included in alert documents via theelectromagnetic means set forth in Article 56 and Article 57 of the Order on Financial Instruments Businessin lieu of physical delivery, etc. of alert documents as prescribed in Article 5. In this case, the Management
Company shall be deemed to have delivered the alert documents.
2. Management Companies, etc. may be provided the matters to be included in confirmation documents via theelectromagnetic means set forth in Article 57-3 of the Order on Financial Instruments Business in lieu ofphysical delivery, etc. of confirmation documents as prescribed in Article 6. In this case, the Management
Company shall be deemed to have secured the confirmation documents.

Article 8.

Applicable Benchmark Index

For complex investment trusts similar to over-the-counter derivatives transactions, the applicable Benchmark
Index shall be used only when the investor can obtain such index through a newspaper, information terminal,
website of the Management Company, information provided from distributers, and so forth.

Article 9.

Naming Restrictions

The name of investment trusts for complex investment trusts similar to over-the-counter derivatives
transactions (including any nicknames for investment trusts) shall not use a name that contains any of thefollowing elements, such as “Secured principal type,” “Conditional principal secured type,” “Risk reduction
type,” or “Risk limitation type.”(1) A name which could lead to a misunderstanding that the principal and yield or either the principal or
yield of the investment trust are guaranteed(2) A name which could lead to a misunderstanding that the likelihood of loss of principal is small(3) A name which could lead to a misunderstanding that the fluctuation risk in the base value is low

Article 10.

Improving Product Explanations to Distributors, etc.

1. Management Companies shall endeavor to further enhance product explanations to distributors regarding
complex investment trusts similar to over-the-counter derivatives transactions.
2. For complex investment trusts similar to over-the-counter derivatives transactions, Management Companies
shall collect information on complaints made to distributors regarding previous similar investment trusts
established by the Management Company and analyze such information. Based on the results of suchanalysis, the Management Company shall endeavor to enhance product composition in consideration ofcomplaints from investors, improve and reform newly established products, etc.

Article 11.

Special Provisions for Disclosure, etc. of Specific Complex Investment Trusts Similar toOver-the-Counter Derivatives Transactions
Disclosure, etc. of complex investment trusts similar to over-the-counter derivatives transactions which areprovided for in the By-laws shall be as provided for in the By-laws in addition to these Rules.
* Article 2 of the By-laws

Article 12.

By-laws

Necessary matters for the enforcement of these Rules shall be stipulated in the By-laws.

Article 13.

OthersAny matters not stipulated for in these Rules may be decided by a resolution of the Board of Directors.

Article 14.

Delegation to Competent Committee

1. The Board of Directors shall be entitled to delegate to the Self-Regulation Committee the authority to amend
any By-laws relating to these Rules.
2. The Self-Regulation Committee shall promptly report to the Board of Directors, the contents of any
decisions made by the Self-Regulation Committee with respect to any matters delegated thereto (limited todecisions deemed necessary by the Board of Directors. ).

Supplementary Provisions
1. These Rules shall come into effect on April 1, 2011.
2. If a Management Company intends to conclude a contract concerning the acquisition of an investment trust
on or after the date of enforcement of these Rules and has delivered alert documents to the customer prior to
the date of enforcement for these Rules in the same manner as the example in Article 5 after the date ofenforcement, the Management Company shall be deemed to have delivered the alert documents to thecustomer pursuant to the provisions of that article.

Supplementary ProvisionThis amendment shall come into effect on January 4, 2013.

Supplementary ProvisionThis amendment shall come into effect on the date of approval (July 1, 2021) by the competent government
agency for amendments to Articles of Incorporation.
* The amended provisions are as follows:
Article 3, Paragraphs 1 and 2; Article 4; Article 5, Paragraphs 1 through 3; Article 6; Article 7, Paragraphs 1 and 2

By-laws on Regulations for Complex Investment Trusts Similar toOver-the-Counter Derivatives Transactions
Established on February 17, 2011

Article 1.

Purpose

These By-laws set forth the necessary matters concerning implementation of the Regulations for Complex
Investment Trusts Similar to Over-the-Counter Derivatives Transactions (hereinafter referred to as the“Regulations”).
Article 2.

Definition of Specific Investment Trusts

Among complex investment trusts similar to over-the-counter derivatives transactions as defined in Article 11of the Regulations, investment trusts as defined in the By-laws shall be investment trusts to which the following
definition applies (hereinafter referred to as “Specific Investment Trusts” ):Investment trusts that state in the prospectus or investment trust contracts that the target investment
outcome (redemption value, revenue distribution, etc.) or trust end date will be determined by a specific index
or price level (hereinafter referred to as the “Benchmark Index”) by utilizing derivatives transactions (meaning
derivatives transactions as defined in Article 2, Paragraph 20 of the Financial Instruments and Exchange Act(Act No. 25 of 1948; hereinafter referred to as the “FIEA”) and derivatives transactions as defined in Article
2-15 of the Commodity Derivatives Transaction Act (Act No. 239 of 1950); the same shall apply hereinafter)(including those that utilize them directly or utilize them indirectly via structured bonds, etc. (meaning
structured bonds as defined in Article 2 of the Regulations; the same shall apply hereinafter)), have thefunctions and mechanisms to secure the principal (or limit losses) based on certain conditions for pricefluctuations of the Benchmark Index (except for those related to credit), and possess product attributes that will
result in damages to the principal or special profitability for investors such as the attribute that the redemption
value reflects price fluctuations of the Benchmark Index when the Benchmark Index reaches a Certain Level
during a certain period of the trust period using a knock-in option or similar investment economic effect(meaning the level when rising or falling beyond a certain range, hereinafter referred to as the “Certain Level”)
versus when that Certain Level is not reached.
Article 3.

Presentation

The following text shall be displayed on the cover or in the header of prospectuses, sales materials, and otherdocuments describing the contents of the investment trust (including documents provided via electromagnetic
means) (hereinafter referred to as “Marketing Materials, etc.”) in order to facilitate an understanding ofSpecific Investment Trusts and clearly draw the attention of investors to the risk of substantial damage to theprincipal if the Benchmark Index reaches the Certain Level. In this case, the font size shall be no smaller than 12
points as specified in the Japanese Industrial Standard Z8305, and the text shall be surrounded by a frame.

There is a risk that the principal of this investment trust will be significantly damaged
if the Benchmark Index* reaches the predetermined Certain Level. Please consider
such risk carefully when applying for this investment trust.
* The Benchmark Index shall be one which matches the content of the investment trust (for example, the“Nikkei Stock Average Index”).
Article 4.

Special Provisions for Disclosure of Marketing Materials, etc.

1. Marketing Materials, etc., for Specific Investment Trusts shall include the following items in the following
order:(1) Explanations on when the Benchmark Index reaches the Certain Level shall clearly and plainly describe
the fact that investment trusts that have reached the Certain Level of the Benchmark Index will lose
their functions to secure, etc. the principal once that Certain Level has been reached, that they shall thenhave product attributes where the redemption value fluctuates in response to the value of the
Benchmark Index, and also describe the details of the redemption value, etc. to be assumed
corresponding to price fluctuations of the Benchmark Index.
(2) If there are restrictions on early cancellation, they shall emphasize and explain the correlation between
the level of the Benchmark Index before and after reaching the Certain Level and restrictions on earlycancellation (any restrictions should be described clearly, such as “If the beneficiary attempts to redeem
an investment trust immediately before or after the Benchmark Index reaches a Certain Level, theinvestment trust cannot be redeemed if the timing of the application for redemption falls within theclosed period during which redemption cannot be made.”) in an easy-to-understand way.
(3) When incorporating structured bonds, describe the fact that they are “structured bonds that include
derivative structures” and appropriately describe the “credit risk” and “liquidity risk” of structured
bonds.
(4) Explanations on investment policies, explanations on distribution policies, and information on
structured bonds or other special mechanisms (issuer, etc.) shall be included after the descriptions (1)through (3) above.
2. The matters to be included in (1) through (3) of the preceding paragraph shall be explained using charactersand numerals in no smaller than 12-point font as specified in the Japanese Industrial Standard Z8305, andshall also be included with typographical emphasis or other devices to make them stand out as much as
possible.
3. In preparing the Delivery Prospectus, it should be noted that (1) through (4) above shall be described as the“Purpose and Features of the Fund,” followed by another description of the “Investment Risk.”
Article 5.

Special Provisions for Disclosure regarding Investment Reports

Specific Investment Trusts shall disclose the relative status of the value, start value and knock-in value, etc. of
the index as of the preparation of the investment report and shall clearly and plainly indicate the fact thatinvestment trusts that have reached the Certain Level of the Benchmark Index have lost their functions tosecure, etc. the principal due to the fact that Certain Level has been reached and that they shall have productattributes where the redemption value fluctuates in response to the value of the Benchmark Index, and also
indicate the details of the redemption value, etc. to be assumed corresponding to price fluctuations of the
Benchmark Index.
Article 6.

Special Provisions for Timely DisclosureWith regard to Specific Investment Trusts, more thorough and timely disclosure shall be made, and disclosurematerials indicating the fact that investment trusts that have reached the Certain Level of the Benchmark Index
have lost their functions to secure, etc. the principal due to the fact that Certain Level has been reached and thatthey shall have product attributes where the redemption value fluctuates in response to the value of the
Benchmark Index, and the details of the redemption value, etc. to be assumed corresponding to pricefluctuations of the Benchmark Index shall be made in clear and easy-to-understand manner, disclosed on thewebsite of the Management Company, and sent to the distributers.
Article 7.

Preparation of Disclosure Materials for Unconfirmed Information, etc.

When forming Specific Investment Trusts, the coupon rate, amount of distribution, and other determinates of
profit shall promptly be prepared as disclosure materials after they have been determined, and the disclosurematerials shall be sent to distributors.
Article 8.

Preparation of Information Disclosure Materials Using the Benchmark Index, etc.

When the Benchmark Index reaches a Certain Level when forming Specific Investment Trusts, disclosurematerials shall be prepared in accordance with the provisions of Article 6 and any Marketing Materials, etc., tobe used for public offerings of the investment trust shall state that the disclosure materials will be sent to
distributors.
Supplementary Provision
These By-laws shall come into effect from April 1, 2011.

Rules on Investment Reports, etc. for Investment Trusts and Investment
Corporations
Established on March 19, 2004
Revised on May 25, 2004
Revised on March 18, 2005
Revised on April 21, 2006
Revised on May 24, 2006
Revised on June 19, 2006
Revised on November 17, 2006
Revised on February 16, 2007
Revised on September 21, 2007
Revised on June 20, 2008
Revised on July 18, 2008
Revised on September 19, 2008
Revised on January 16, 2009
Revised on March 19, 2009
Revised on September 16, 2009
Revised on February 17, 2011
Revised on September 15, 2011
Revised on March 15, 2012
Revised on May 24, 2012
Revised on December 20, 2012
Revised on June 12, 2014
Revised on July 17, 2014
Revised on November 20, 2014
Revised on December 18, 2014
Revised on May 21, 2015
Revised on July 16, 2015
Revised on May 18, 2017
Revised on September 20, 2018
Revised on April 18, 2019

Chapter 1:
Article 1.

General Provisions
PurposeThe purpose of these Rules is to prescribe the items to be included in investment reports for investment trusts
and asset management reports for investment corporations, the information to be provided, the method ofdelivery, etc., and to ensure the proper disclosure of information, etc., concerning the management ofinvestment trusts, etc., thereby aiding investors’ understanding and contributing to their protection.

Chapter 2:
Article 2.

Items to Be Indicated in Investment Reports for Investment Trusts
Items to Be Indicated on the Cover Page of Investment Reports (Full Version)

1. The cover page of an investment trust investment report (full version) (excluding the investment trust
investment reports prescribed in Chapters 3 and 6; hereinafter the same shall apply in this chapter) shallindicate the following items of information.
(1) The label “Investment Report (Full Version)”(2) The name of the investment trust(3) Fiscal period and date of settlement (for investment trusts with accounting periods of less than six
months, the respective fiscal period and date of settlement)

(4) The structure of the investment trust in question (including the investment policy for the relevant
investment trust property.)(5) Name and address of the investment trust management company (meaning an investment trust
management company as specified in Article 2, Paragraph 11 of the Act on Investment Trusts andInvestment Corporations (Act No. 198 of 1951, hereinafter referred to as the “Investment Trust Act”),
hereinafter referred to as a “Management Company”).
(6) Name and telephone number of point of contact for inquiries, etc.
This shall include the following:(i) Name of contact, telephone number, times available(ii) Management Company’s website address, etc.
2. The structure of the investment trust in question as prescribed in Item 4 of the preceding paragraph shall bebriefly indicated in that investment trust’s prospectus.

Article 3.

Items to Be Indicated in the Main Text of Investment Reports (Full Version) and Their OrderThe main text of investment trust’s Investment Reports (Full Version) shall indicate the information as
specified in the respective items below. In principle, the Investment Reports (Full Version) shall indicate suchinformation in the following order.
(1) Investment performance since establishment(a) For unit type investment trusts, the following information shall be indicated for the duration from theestablish of the trust to the end of the current period: base value, cash dividend, fluctuation rate forthe period, beneficiary yield, and benchmark (if there is no benchmark, a reference index such as astock price index shall be used, hereinafter the same shall apply in this item and the following item),composition ratio of major assets invested and principal remaining rate.
(b) The following indicators shall be displayed for each accounting period for five or more periods prior
to the current period for open type investment trusts (for investment trusts with an accounting periodof less than six months, five or more preparation periods (referring to the preparation period
stipulated in Article 59, Paragraph 1 of the Ordinance on Accountings of Investment Trusts (Cabinet
Office Ordinance No. 133 of 2000; hereinafter referred to as the “Ordinance on Investment Trust’s
Financial Statements”); the same shall apply in Chapters 2 through 4 below)) and three or more
periods prior to the current period for open type bond investment trusts (for investment trusts with anaccounting period of less than six months, three or more preparation periods): base value, cash
dividend, fluctuation rate for the period, benchmark, composition ratio of major assets invested,status of total net assets, and indicators that show the correlation ratio between changes in base value
and changes in the underlying indicator (limited to securities investment trusts that stipulate in theinvestment trust contracts, the matters listed in Article 12, Item 2 (a) of the Order for Enforcement of
the Act on Investment Trusts and Investment Corporations (Cabinet Order No. 480 of 2000,
hereinafter referred to as the “Cabinet Order”)) (underlying indicator as defined in Article 19,
Paragraph 2 of the Regulation for Enforcement of the Act on Investment Trusts and Investment
Corporations (Ordinance of the Prime Minister’s Office No. 129 of 2000)).

(2) Base value and market trends: Changes in base value, benchmark, and composition ratio of major assets
invested for the current period (for investment trusts with an accounting period of less than six months,
the preparation period concerned; hereinafter the same shall apply in Chapters 2 to 4) shall be indicatedon a month-end basis.
(3) Explanation of investment progress, etc.
(a) The following items shall be included in the explanation of investment progress, etc.
(i) Changes in base value during the current period shall be presented using charts and tables. In
addition, when using charts and tables, in principle, the benchmark (if there is no benchmark, areference index such as a stock price index shall be used) shall be indicated together, and if it is notpossible to indicate both, the specific reason shall be indicated in a note or by other means in thefield for investment performance since establishment as stipulated in Item 1.
(ii) As a general rule, the beginning of the section shall be a brief description of the changes in basevalue (rise or fall; the same shall apply hereinafter) during the period, listing the main reasons
therefor.
(iii) For investment trusts with a benchmark, the changes in base value of the investment trust shall becompared with that of the benchmark, and the status and factors behind the difference shall beconcisely indicated, including the way in which risk (meaning tracking error, etc.) is taken.
(iv) The reasons for changes in base value shall be explained in as much detail as possible, using
charts and other methods, taking into account the investment policy in the prospectus of theinvestment trust in question and the future investment policy indicated in the investment report forthe previous period, as well as the changes in the composition ratio of major investment assets, thecomposition ratio by industry sector, and the composition ratio by country, or the timing, extent ofchanges, and reasons for changes in the issues incorporated in the investment trust.
(v) The future investment policy shall be indicated in detail based on the investment policy in theprospectus of the investment trust in question.
(vi) With respect to dividends, the basis for determining such dividends and the future investment
policy for retained earnings shall be indicated.
(b) The following matters shall be taken into consideration when presenting an explanation of
investment progress, etc.
(i) The text should be concise and plainly worded(ii) Efforts should be made to improve readability through charts, headings, bullet points, etc.
(iii) Difficult technical terms and industry terms should be avoided.
(iv) Duplication of the same information should be avoided to the extent possible(4) Details of expenses per 10,000 units: Details of expenses, etc. per 10,000 units (meaning the unit
representing base value; the same shall apply hereinafter) for the current period shall be indicated.
(5) (Reference information) Total expense rate: The following information on the total expense rate shallbe indicated as reference information. (For private placement investment trusts, this shall be optional
items to be indicated.)(a) The total expense rate is calculated by dividing the total amount of expenses (in principle, excluding

subscription fees, trading commissions, and securities transaction taxes) incurred in the operation andmanagement of the investment trust during the period (for investment trusts with accounting periodsof less than six months, the period for which the report is formulated) by the average number of unitsof beneficial interests during the period multiplied by the average base value (per unit) during theperiod. The proportion made up by each item identical to the disclosed items in the details of
expenses per 10,000 units (in principle, excluding subscription fees, trading commissions, andsecurities transaction taxes) shall be displayed in a pie chart. In a fund of funds, the total expense rateshall be the aforementioned ratio plus the expense rate of the investee funds. In addition to the ratio of
each of the aforementioned items, the target funds’ ratios of investment management expenses andratios of expenses other than investment management expenses shall be displayed in a pie chart. In
addition to this, the total expense rate, the ratio of this fund’s expenses, the ratio of the investment
target funds’ management expenses and ratios of expenses other than investment management
expenses shall be displayed in a table. Even if the details of expenses per 10,000 units of an investee
fund cannot be obtained in the fund of funds, if the ratio calculated by dividing the total amount ofexpenses incurred by the investee fund by the average total amount of net assets of the investee fundduring the period can be obtained, such ratio may be regarded as the expense rate of the investment
target funds. In principle, subscription fees, trading commissions, and securities transaction taxes
shall be excluded from the expenses of investment target funds.
(b) An explanation such as “The total expense rate (annual rate), which is calculated by dividing thetotal amount of expenses (in principle, excluding subscription fees, trading commissions, andsecurities transaction taxes) incurred in the operation and management of the investment trust during
the period (for investment trusts with an accounting period of less than six months, the period forwhich the report is formulated) by the average number of units of beneficial interests during theperiod multiplied by the average base value (per unit) during the period, is XX%” should be provided
in an easily visible location.
(c) Each ratio shall be converted to an annual rate and rounded to the second decimal place.
(d) Expenses other than investment management expenses of investment target funds shall be disclosed tothe extent possible.
(e) Expense rates of investment target funds shall be disclosed as precisely as possible, such as bydetermining the percentage of holdings on a monthly basis and multiplying by the trust fee rate of theinvestee fund.
(f) Notes that would be useful to investors regarding investment target funds, such as staggered
accounting periods, should be included.
(6) Status of purchases, sales, and transactions: The status of purchases, sales, or transactions of assets
incorporated in a trust during the current period shall be separately indicated for each type of asset as
specified in the By-laws.
(7) Status of derivative transactions: Investment trusts that actively invest in derivatives shall classify
transactions pertaining to derivatives by type as specified in the By-laws, whether domestic or foreign,and shall indicate the balance of transactions at the end of the current period (the end of the relevantpreparation period for investment trusts whose accounting period is less than six months; hereinafter thesame shall apply in Chapters 2 to 4) and the amount of transactions during the current period in
accordance with the respective classifications.
(8) Share trading ratio: The amount of shares traded, the average market capitalization of shares
incorporated in the trust, and the trading volume ratio during the current period.
(9) Major issues traded: Major investment targets shall be classified by asset type as specified in the
By-laws, and the top 10 issues in terms of trading volume shall be indicated for each classification.
(10) Status of transactions with interested parties, etc.: The status of transactions with interested parties, etc.,
the total amount of trading commissions paid to such interested parties, etc., and other matters specified
in the By-laws shall be indicated.
(11) Status of proprietary trading by Management Companies that are also engaged in Type I Financial
Instruments Business, Type II Financial Instruments Business or Business of Assuming Commodity
Transaction Debts: The status of transactions between the investment trust property and a Management
Company that concurrently engages in Type I Financial Instruments Business (referring to Type I
Financial Instruments Business as defined in Article 28, Paragraph 1 of the Financial Instruments andExchange Act (Act No. 25 of 1948; hereinafter referred to as the “FIEA”); the same shall apply
hereinafter), Type II Financial Instruments Business (referring to Type II Financial Instruments
Business as defined in Paragraph 2 of the same Article; the same shall apply hereinafter), or Business ofAssuming Commodity Transaction Debts (referring to Business of Assuming Commodity Transaction
Debts as defined in Article 2, Paragraph 17 of the Commodity Derivatives Transaction Act (Act No.
239 of 1950)), and the total amount of trading commissions paid to the Management Company inquestion shall be indicated.
(12) Status of Self-Acquisition and Disposition of beneficiary securities of investment trusts or investment
securities of investment corporations established by a Management Company: The following
information shall be indicated: the balance at the beginning of the period (for investment trusts with anaccounting period of less than six months, the balance at the end of the immediately preceding
preparation period), amount of principal created during the current period, amount of principal
cancelled during the current period, balance at the end of the current period, and the reason for thetransaction shall be indicated separately for the reasons listed in each item of Article 6-2, Paragraph 1 of
the Rules for Full Members’ Business Operations, etc.
(13) Description of Incorporated Assets: Description of Incorporated Assets into the trust shall be indicatedseparately for each type of asset as specified in the By-laws, and for each type of currency.
(14) Status of margin transactions: If margin transactions are conducted at the end of the current period, thebalance and appraised value at the end of the current period shall be indicated.
(15) Status of short selling of bonds: If short selling of bonds has been conducted as of the end of the current
period, the balance (face value) and appraised value of each type of bond at the end of the current period
shall be indicated.
(16) Status of loans and borrowing of securities: With regard to securities loaned or borrowed at the end of
the current period, the total number of shares or total face value shall be indicated by classifying eachtype of security. Securities lent or borrowed to or from an interested party, etc. should be written inparentheses, and the name of the party to or from which the securities are lent or borrowed should be
noted.
(17) Composition of the investment trust property: The assets incorporated in the trust as of the end of thecurrent period shall be classified by asset type as specified in the By-laws, and the appraised value ofeach asset and its ratio to the total amount of the investment trust property shall be indicated.
(18) Investigation of price, etc. of specified assets: If an investigation of the price, etc. of specified assets has
been conducted, the name or trade name of the person who conducted the said investigation and asummary of the results and method of the said investigation shall be indicated.
(19) Status of assets, liabilities, principal and base value, and profit and loss: A balance sheet and profit, loss
and surplus statement prepared in accordance with the provisions of the Ordinance on Investment
Trust’s Financial Statements may be used instead. In this case, when using those for which the audit has
not yet been completed, a note to that effect shall be made.
In addition, if there are any matters to be noted as stipulated in the Ordinance on Investment
Trust’s Financial Statements, such matters shall be noted.
(20) Investment trust property management summary: When the trust contract period has ended, theinvestment trust property management summary prescribed in Article 58, Paragraph 1, Item 26 of theOrdinance on Investment Trust’s Financial Statements shall be indicated.
(21) Indication of dividends, etc.: For investment trusts with an accounting period of less than six months,
dividends, etc. for each accounting period during the six months preceding the end of the preparation
period shall be indicated.
(22) Announcements: In the event that there is a change, etc. in the Basic Terms and Conditions of theinvestment trust that is deemed important by the Management Company, or if there is a change, etc. in
the management system that is deemed important by the Management Company during the current
period, the details thereof shall be indicated.
(23) Disclosure of real estate, etc. and infrastructure assets, etc.: With regard to the disclosure of investment
trust property that incorporates real estate, etc. (as defined in Article 3, Paragraph 2 of the Rules on Real
Estate Investment Trusts and Real Estate Investment Corporations (hereinafter referred to as the “Rules
on REIT, etc.”; the same shall apply hereinafter)), asset-backed securities, etc. (as defined in Article 3,
Paragraph 3 of the Rules on REIT, etc.; the same shall apply hereinafter), infrastructure assets, etc. (asdefined in Article 3, Paragraph 5 of the Rules on Infrastructure Investment Trusts and Infrastructure
Investment Corporations (hereinafter referred to as the “Rules on IIT, etc.”); the same shall apply
hereinafter), and infrastructure-related assets (as defined in Article 3, Paragraph 6 of the Rules on IIT,
etc.; the same shall apply hereinafter), it should be noted that the provisions of Chapter 7: Real Estate
Investment Trusts and Chapter 9: Infrastructure Investment Trusts apply in addition to the provisions ofArticle 58 of the Ordinance on Investment Trust’s Financial Statements.
2. The benchmark prescribed in Paragraph 1, Items 1 through 3 means an index that serves as an evaluation or
target standard for the investment results of the investment trust in question, and shall be described as such ininvestment trust contracts or its prospectus. This shall include the target indices of investment trustsmanaged through index investment.
3. The disclosure of separate information by trading market may be made at a Management Company’s
discretion.
4. When producing Investment Reports (Full Version), the term “special distribution” (as defined in Article 27of the Order for Enforcement of the Income Tax Act (Cabinet Order No. 96 of March 31, 1965); the same
shall apply hereinafter) shall be expressed as “principal payback (special distribution).”
5 For publicly offered open type investment trust, a “breakdown of distribution sources” as specified in the
By-laws shall be indicated. In addition, when indicating the information, it shall be indicated in one of theitems specified in Item 3, Item 18, or Item 20 of Paragraph 1.
* Article 2, Article 3, Article 4, Article 5, Article 6, Article 7, Article 7-2 of the By-laws

Article 3-2.

Items to be Indicated on the Cover of an Investment Trust Investment Report (Delivery

Version)The following items shall be indicated on the cover of an investment trust investment report for delivery (asdefined in Article 14, Paragraph 4 of the Investment Trust Act, hereinafter referred to as the “Investment Report(Delivery Version)”; the same shall apply hereinafter, excluding Chapter 6).
(1) The label “Investment Report (Delivery Version)”(2) The name and instrument classification of the investment trust in question as stated on the cover of the
Delivery Prospectus (including equivalent documents in the case of a privately placed investment trust;the same shall apply hereinafter in this article and the following article).
(3) Fiscal period and date of settlement (for investment trusts with accounting periods of less than six
months, the respective fiscal period and date of settlement) and the periods for which the report isformulated(4) Base value and total net assets as of the end of the fiscal year (for investment trusts with accounting
periods of less than six months, the final date of the period for which the report is formulated)(5) The fluctuation rate in the base value after dividend reinvestment (the base value calculated on theassumption that pre-tax dividends have been reinvested at the time of distribution; the same shall apply
hereinafter) and total dividends during the accounting period (for investment trusts with an accounting
period of less than six months, the “period for which the report was formulated”)(6) Name and address of the Management Company(7) Name and telephone number of point of contact for inquiries, etc.
This shall include the following:(i) Name of contact, telephone number, times available(ii) Management Company’s website address, etc.
(iii) The fact that the Investment Reports (Full Version) will be delivered upon the request of thebeneficiary and how to obtain it.
(8) To beneficiaries: “To beneficiaries” shall be stated. In this case, the information in the “Purpose andFeatures of the Fund” section of the Delivery Prospectus shall be quoted and provided.
(9) Investment policy: A concise and easy-to-understand written description of the investment policy shallbe given, with reference to the investment policy in the “Purpose and Features of the Fund” section of
the Delivery Prospectus. In addition, in order to avoid repetition of the previous item, efforts shall bemade to display the information in a way that is easy to understand for beneficiaries, such as
consolidating the areas where the information is displayed.
(10) Other information: For investment trusts that stipulate in their investment trust contracts that the items
to be included in the Investment Reports (Full Version) are to be provided by electromagnetic means(electromagnetic means as defined in Article 14, Paragraph 2 of the Investment Trust Act), that fact andthe information necessary for viewing the items to be included in the Investment Reports (Full Version)
shall be indicated.

Article 3-3.

Items to Be Indicated in the Main Text of Investment Reports (Delivery Version) and Their

Order
The main text of an investment trust’s Investment Report (Delivery Version) shall indicate the information as
specified in the respective items below. In principle, the Investment Report (Delivery Version) shall indicate
such information in the following order.
(1) Explanation of investment progress
The following items shall be included in the explanation regarding the progress of investment.
(i) Changes in base value, etc.
Changes in base value shall be presented using charts.
(ii) A concise and easy-to-understand written explanation shall be given of the main factors behind
fluctuations in the base value, while comparing them with the information described in the “Purpose
and Features of the Fund” section of the investment trust’s Delivery Prospectus.
(iii) Details of expenses per 10,000 Units during the current period (for investment trusts with anaccounting period of less than six months, the period for which the report is formulated)
The details of expenses per 10,000 units during the current period shall be presented in thefollowing manner.
(a) The statement “The average base value during the current period is XX yen” shall be written in aneasily visible location such as the summary of the item.
(b) For investment trusts with an accounting period of less than six months, as a general rule, all six
months should be listed together.
(c) Notes on “Other Expenses” shall describe typical expenditures and add additional information on
expenditures as necessary.
(d) Explanatory notes on investment target funds shall be included.
(iv) (Reference information) Total expense rate: The following items regarding the total expense rateshall be indicated as reference information. (For private placement investment trusts, this shall be
optional items to be indicated.)(a) The total expense rate is calculated by dividing the total amount of expenses (in principle,
excluding subscription fees, trading commissions, and securities transaction taxes) incurred in theoperation and management of the investment trust during the period (for investment trusts with

accounting periods of less than six months, the period for which the report is formulated) by theaverage number of units of beneficial interests during the period multiplied by the average basevalue (per unit) during the period. The proportion made up by each item identical to the disclosed
items in the details of expenses per 10,000 units (in principle, excluding subscription fees, trading
commissions, and securities transaction taxes) shall be displayed in a pie chart. In a fund of funds,
the total expense rate shall be the aforementioned ratio plus the expense rate of the investee funds.
In addition to the ratio of each of the aforementioned items, the target funds’ ratios of investment
management expenses and ratios of expenses other than investment management expenses shallbe displayed in a pie chart. In addition to this, the total expense rate, the ratio of this fund’s
expenses, the ratio of the investment target funds’ management expenses and ratios of expenses
other than investment management expenses shall be displayed in a table. Even if the details of
expenses per 10,000 units of an investee fund cannot be obtained in the fund of funds, if the ratio
calculated by dividing the total amount of expenses incurred by the investee fund by the average
total amount of net assets of the investee fund during the period can be obtained, such ratio may
be regarded as the expense rate of the investment target funds. In principle, subscription fees,
trading commissions, and securities transaction taxes shall be excluded from the expenses ofinvestment target funds.
(b) An explanation such as “The total expense rate (annual rate), which is calculated by dividing thetotal amount of expenses (in principle, excluding subscription fees, trading commissions, andsecurities transaction taxes) incurred in the operation and management of the investment trust
during the period (for investment trusts with an accounting period of less than six months, theperiod for which the report is formulated) by the average number of units of beneficial interests
during the period multiplied by the average base value (per unit) during the period, is XX%”
should be provided in an easily visible location.
(c) Each ratio shall be converted to an annual rate and rounded to the second decimal place.
(d) Expenses other than investment management expenses of investment target funds shall be
disclosed to the extent possible.
(e) Expense rates of investment target funds shall be disclosed as precisely as possible, such as bydetermining the percentage of holdings on a monthly basis and multiplying by the trust fee rate of
the investment target funds.
(f) Notes that would be useful to investors regarding investment target funds, such as staggered
accounting periods, should be included.
(v) Changes in the base value, etc. over the last five years
Changes in base value over the last five years shall be described in the following manner.
(a) Changes in base value and changes in the base value of after dividend reinvestment shall beshown using a line graph.
A note shall be made to the effect that the dividend data represents pre-tax figures.
(b) The line graph shall be accompanied by a bar graph or area graph of the change in total net assets.
(c) The base value, total dividends for the period (including tax), the fluctuation rate of thebenchmark (if there is no benchmark, a reference index such as a stock price index shall be used),
and the total amount of net assets as of the settlement date for each of the last five years shall be
indicated using charts and graphs.
For funds with an accounting period of six months or less than six months, each settlement
date shall be deemed to be a fixed settlement date for each year.
(d) In principle, benchmarks (or reference indices such as stock price indices if there is nobenchmark) shall be indicated in the relevant charts and graphs, and if this is not possible,
specific reasons shall be given.
(e) The horizontal axis of the graph shall be five years, even if the investment performance record isless than five years.
(vi) A brief and easy-to-understand explanation of the investment environment for the investment trustin question shall be provided in writing for each asset incorporated in the trust.
(vii) A concise and easy-to-understand written explanation of the investment trust’s portfolio shall begiven, for each asset incorporated in the trust, with reference to the investment progress and results
during the current period based on the investment policy described in the “Purpose and Features of
the Fund” section of the Delivery Prospectus.
(viii) The investment trust’s deviation from its benchmark during the period for which the Investment
Report (Delivery Version) is formulated shall be indicated.
For investment trusts with a benchmark, changes in the base value of the investment trust shall becompared with that of the benchmark, and the status and factors behind the difference shall be
indicated in a concise and easy-to-understand manner, including the way in which risk (tracking error,etc.) is taken.
In addition, a bar graph shall be displayed showing a comparison of the fluctuation rate between
the base value of the investment trust in question and the benchmark. If no benchmark has been
established, such fact shall be stated and the fluctuation rate in a reference index shall be used instead.
This shall not apply to investment trusts that do not have a benchmark or a reference index.
(ix) For investment trusts with an accounting period of less than six months, dividends, etc. for eachaccounting period during the six months preceding the end of the preparation period shall be
indicated.
(x) The mother fund’s investment progress and the changes in its investment status can be described in
the same section that describes the investment trust in question.
(2) Future investment policy: A concise and easy-to-understand written description of the future
investment policy shall be given, for each asset incorporated in the trust, based on the investment policyin the “Purpose and Features of the Fund” section of the Delivery Prospectus.
(3) Announcements: In the event that there is a change, etc. in the investment trust contracts that is deemed
important by the Management Company, or if there is a change, etc. in the management system that isdeemed important by the Management Company during the current period, the details thereof shall be
indicated.
(4) Summary of the investment trust: A summary of the investment trust (instrument classification, trustperiod, investment policy, main investment targets, investment method and dividend policy) shall bepresented using a table.
(5) Comparison of fluctuation rate with typical asset classes: As reference information, the “comparison offluctuation rate with representative asset classes” shown in the Delivery Prospectus shall be updated to
the latest data, using data as of the end of the month immediately preceding the end of the accounting
period (for investment trusts with accounting periods of less than six months, the end of the preparation
period).
(6) Data on the investment trust in question
The following items shall be indicated in an easy-to-understand manner by using graphs, etc.
(i) Details of assets incorporated in the investment trust
The assets stipulated in Article 58-2, Paragraph 1, Items 5 through 17 of the Ordinance on Investment
Trust’s Financial Statements shall be presented in the following manner.
(a) A table shall be displayed indicating, as of the end of the preparation period, the total number ofissues incorporated, as well as at least the top 10 issues and the proportion they account for. If
one of the top issues is a fund, the top three or more funds as of the end of the preparation period
shall be listed, and a table shall be displayed for the respective proportions they account for. In
addition, detailed information on all issues shall be included in the notes.
(b) Shares by asset, country, and currency shall, in principle, be presented in a pie chart. However, incases where the total amount exceeds 100% and cannot be shown in a pie chart, a bar chart may
be used. When bar graphs are used, notes shall be added as necessary.
(c) Pie charts shall be presented as flat graphs.
(d) In principle, graphs should be presented in terms of “ratio to net assets,” and if they are presented
in terms of “ratio to portfolio,” for example, a note to that effect should be included.
(e) If one of the top issues is a fund, the nature of that fund’s incorporated assets shall not be
indicated.
(ii) Net assets, etc.
The total amount of net assets, the total number of beneficial interests, and the base value per 10,000
units shall be indicated using a table. In addition, “the amount of additional principal created during
the current period (current preparation period) is ¥XX million, and the amount of principal cancelledduring the same period is ¥XX million” shall be written outside the field indicating net assets, etc.
For investment trusts with an accounting period of less than six months, this shall be indicatedfor each accounting period during the six months preceding the end of the preparation period.
(iii) Summary of top funds incorporated
Investment target funds such as the mother fund as defined in Article 58-2, Paragraph 2 of theOrdinance on Investment Trust’s Financial Statements shall be indicated in the following manner.
In the case of a family fund method or fund of funds, a table shall be displayed indicating, as ofthe end of the investment trust’s accounting period (preparation period), and with respect to the major
investment target funds as of the end of the most recent accounting period, the total number of issues
incorporated, as well as at least the top 10 issues and the proportion they account for. Shares by asset,

country, and currency shall be described in the following manner using charts and tables, etc.
(a) Shares by asset, country, and currency shall be in accordance with (b) and (c) of (i).
(b) Changes in base value shall be indicated by a line graph.
(c) A detailed statement of expenses per 10,000 units during the accounting period shall be provided.
(d) In cases where there are two or more layers in the structure of investment target funds, efforts
shall be made to present the information in a manner that is easy to understand for beneficiaries,
such as by describing the actual sources of investment income.
2. The benchmark prescribed in the preceding paragraph shall mean an index that serves as an evaluation or
target standard for the investment results of the investment trust in question, and shall be described as such in
the Basic Terms and Conditions of the investment trust or its Delivery Prospectus. This shall include thetarget indices of investment trusts managed through index investment.
3. When producing an Investment Report (Delivery Version), the term “special distribution” shall be expressed
as “principal payback (special distribution).”
4. For publicly offered open type investment trust, a “breakdown of distribution sources” shall be presented ina manner consistent with Article 3, Paragraph 5 of the Rules. In addition, when displaying the information, it
shall be indicated in Paragraph 1, Item 1,(viii).

Article 4.

Disclosure Relating to Mother Funds

When a mother fund is incorporated, the Investment Reports (Full Version) shall, in accordance with theprovisions of Article 58, Paragraph 2 of the Ordinance on Investment Trust’s Financial Statements, indicate thestatus of the accounting period immediately preceding the accounting period of the mother fund to which thelast day of the accounting period of the investment trust in which the relevant mother fund is incorporated
belongs.

Article 5.

Selective Open Type Investment Trusts

Open type investment trusts that consist of a group of multiple investment trusts and allow investors to selectand switchover between those investment trusts shall be able to prepare Investment Report (Full Version) andInvestment Report (Delivery Version) that compile reports indicating the matters listed in Articles 2 and 3, 3-2
and 3-3 for each investment trust.

Article 6.

Special Provisions, etc. for Funds of Funds

1. The provisions of Article 2, Article 3 and Article 9 shall apply mutatis mutandis to Funds of Funds(excluding investment trusts whose main investment target is solely the mother fund (meaning an investment
trust whose purpose is to have its beneficial interests acquired by a trustee of another investment trust,
excluding those specified in the investment trust contracts to be acquired only by Funds of Funds; the same
shall apply hereinafter in this article) for which the Management Company gives instructions on investment;
the same shall apply hereinafter).
2. In presenting the items listed in Article 3, Paragraph 1, Item 3 as applied mutatis mutandis under thepreceding paragraph, the price movements of the investment trust securities (meaning investment trustsecurities as defined in Article 2, Paragraph 3 of the Rules on Management of Investment Trusts, etc.
(hereinafter referred to as the “Management Rules”), the same shall apply hereinafter) held by a fund offunds shall be explained in relation to the changes in the base value of the fund of funds in question.
3. With respect to the following investment trust securities held as of the last day of a fund of funds’ accounting
period, the matters specified in each of the following items shall be disclosed as of the last day of theaccounting period of the investment trust securities that falls during the accounting period of the fund offunds in question (if the investment trust securities have more than one accounting period during theaccounting period of the fund of funds, the last day of the accounting period shall be the last day of the fundof funds’ most recently disclosed accounting period).
(1) Beneficiary certificates of securities investment trusts or investment certificates of securities
investment corporations as defined in Article 12, Paragraph 1, Item 1 of the Management Rules: Detailsof the securities held by the securities investment trust in question (meaning securities investment trusts
and securities investment corporations (including foreign securities investment trusts and foreign
securities investment corporations); the same shall apply hereinafter in this article), or the top issues,
and a breakdown of expenses or a profit and loss statement for the securities investment trust, etc.
(2) Beneficiary certificates of real estate investment trusts or investment securities of real estate investment
corporations as defined in Article 12, Paragraph 1, Item 2 of the Management Rules
Matters listed in the following sub-items (a) and (b):(a) The following matters with respect to beneficiary certificates of real estate investment trusts orinvestment securities of real estate investment corporations that account for more than 10% of thetotal net assets of a fund of funds as of the end of the fund of funds’ accounting period(i) The purpose and basic nature of the said real estate investment trust, etc. (meaning real estate
investment trusts and real estate investment corporations (including foreign real estate
investment trusts and foreign real estate investment corporations); the same shall apply
hereinafter in this article) or an equivalent section of the company’s profile(ii) The amount of asset management fees, etc. per unit of the said real estate investment trust,etc.
If the amount of asset management fees, etc. per unit cannot be disclosed, the reason forthis shall be indicated, together with the fact that disclosure materials on the financial results,
etc. of the said real estate investment trust, etc. can be obtained as reference information, or
the method of obtaining such materials, such as a website address where the said disclosurematerials can be viewed.
(b)To the effect that the investment management company or the general administration company of
the said real estate investment trust, etc. is a Management Company that gives instructions on the
management of the said fund of funds or an interested party thereof, if applicable.
(3) Beneficiary certificates of investment trusts other than securities investment trusts, etc., as defined in
Article 12, Paragraph 1, Item 4 of the Management Rules, or investment securities other than those of
securities investment corporations, as defined in Article 30 of the same Rules: Details of the assets heldby the investment trust, etc. in question (meaning investment trusts and investment corporations

(meaning similar assets overseas, including those that fall under the category of beneficiary certificatesof foreign investment trusts or foreign investment securities (excluding foreign investment securities
that are similar to investment corporation bonds) as defined in the FIEA) the same shall apply
hereinafter in this article), or the top issues, and a breakdown of expenses or a profit and loss statement
for the investment trust, etc.
4. Disclosure pertaining to held investment trust securities as prescribed in the preceding paragraph may be
indicated for each investment trust or investment corporation at the end of the investment report as “details ofinvestment trust securities incorporated.” Disclosure of items other than those stipulated in the preceding
paragraph shall be made by the Management Company in consideration of their importance.

Article 7.

Property Accumulation Benefit Funds

With respect to property accumulation benefit funds (meaning investment trusts that have workers as
beneficiaries based on a workers’ property accumulation benefit contract provided for in Article 6-2 of theWorkers’ Property Accumulation Promotion Act (Act No. 92 of 1971), and to which the employer who
employs the worker contributes all of the money allocated to the establishment of the investment trust), in
addition to the matters prescribed in Articles 2 and 3, the execution fee rate of trust fees, the timing of its
application, and the tax amount of special corporate income tax, etc., as specified in the Basic Terms andConditions of the investment trust, shall be noted in the profit and loss information prescribed in Article 3,
Paragraph 1, Item 18.

Article 8.

Form, etc. of Investment Reports

1. The items to be indicated as prescribed in Article 2, Paragraph 1, Item 4 and Article 3 (excluding the mattersprescribed in Paragraph 1, Items 3, 15, 17, and 19 through 21) and Article 3-3 pertaining to investment trusts
may be indicated in accordance with the form and presentation guidelines prescribed by the Self-Regulation
Committee.
2. The provisions of Articles 2 through 7 and the provisions pertaining to the preceding paragraph shall notpreclude making additional efforts beyond those prescribed.
* Committee Resolution 1, Committee Resolution 2

Article 9.

Standards for Investment Reports (Full Version)

Investment Report (Full Version) shall use B5 size (including B5 variant size (“jubako size”)) or larger paper.

Article 9-2.

Standards, etc. for Investment Reports (Delivery Version)

1. When Investment Reports (Delivery Version) are provided in printed form, B5 (including B5 variant size(“jubako size”)) or larger paper shall be used.
2. The size of text used should be large enough to be easily read by the beneficiaries.
However, for the opening section (“To beneficiaries”) and the description of major items, the text should
be 10 points or larger, as specified in Japanese Industrial Standards Z8305.
3. The amount of information shall be sufficient for beneficiaries to be able to understand it easily.

4. Regarding the style, etc. of the report, the following items shall be taken into consideration when preparing
Investment Reports (Delivery Version).
(a) Written explanations shall be concise and plainly worded. In particular, in describing the main factors
behind fluctuations in base value, the investment environment, the portfolio, deviations from thebenchmark, dividends, and future investment policy, the names of items and explanations in text should bemade more accessible to beneficiaries by, for example, adding color to the background or changing thefont.
(b) Efforts should be made to improve readability through charts, headings, bullet points, etc.
(c) Difficult technical terms and industry terms should be avoided.
(d) Duplication of the same information should be avoided to the extent possible.

Article 10.

Delivery of Investment Reports (Full Version)

1. Unless otherwise specified in the By-laws, Management Companies must deliver the Investment Report(Full Version) prescribed in Article 14, Paragraph 1 of the Investment Trust Act to known beneficiaries eachtime it is produced. However, in cases where the Basic Terms and Conditions of the investment trust
stipulate that the matters to be stated in the investment report are to be provided by electromagnetic means
instead of the delivery of the Investment Report (Full Version) set forth in Paragraph 1 of the same article of
the Act, a Management Company shall be deemed to have delivered the Investment Report (Full Version),but must deliver an actual Investment Report (Full Version) when requested to do so by beneficiaries.
Delivery of the Investment Report (Full Version) may be conducted through a distributor that has
concluded a service agreement with the Management Company regarding the delivery of the Investment
Report (Full Version).
2. In delivering an Investment Report (Full Version) under the provisions of the preceding paragraph, an
Investment Report (Full Version) may be delivered to the following beneficiaries by the methods specified ineach item.
(1) Beneficiaries who own investment trusts purchased through payroll deduction or bank transfer:
Beneficiaries may receive Investment Reports (Full Version) through their employers (including cases
where the reports are compiled and delivered under the provisions of Item 2). In this case, thedistributor shall confirm with the employer that it will be delivered from the employer to the beneficiary,and shall send the necessary number of copies to the employer.
(2) Beneficiaries who have continuously purchased property formation units or accumulated investment
account of long-term bond investment trusts (meaning long-term bond investment trusts launched in1961) under the Workers’ Property Formation Promotion Act, and/or accumulated investment accountof regular fixed-form investment trusts (meaning investment trusts of the same type with ongoing
monthly settlement of accounts, and in which continuous investment is possible), and who have been
confirmed using a method specified in the By-laws: Investment Reports (Full Version) covering amaximum of 12 months may be compiled and delivered.
(3) Beneficiaries of Property Accumulation Benefit Funds: The investment report (full version) shall bedelivered through the employer or directly.

* Article 8 and Article 9 of the By-laws

Article 10-2.

Delivery of Investment Reports (Delivery Version)

1. Unless otherwise specified in the By-laws, Management Companies must deliver the Investment Report(Delivery Version) prescribed in Article 14, Paragraph 4 of the Investment Trust Act to known beneficiaries
each time it is produced.
Delivery of the Investment Report (Delivery Version) may be conducted through a distributor that has
concluded a service agreement with the Management Company regarding the delivery of the Investment
Report (Delivery Version).
2. The provisions of Paragraph 2 of the preceding article shall apply mutatis mutandis to the delivery of theInvestment Report (Delivery Version) under the provisions of the preceding paragraph. In this case, the term
“Investment Report (Full Version)” shall be replaced with “Investment Report (Delivery Version).”* Article 8 and Article 9 of the By-laws

Chapter 3:

Items to Be Indicated for Daily Settlement Open Type Investment Trusts for Investing in

Public and Corporate Bonds
Article 11.

Items to Be Indicated on the Cover Page

The provisions of Article 2 (excluding Paragraph 1, Item 3) shall apply mutatis mutandis to the items to be
indicated on the cover of investment reports for open type investment trusts that settle accounts on a daily basis
and are intended for investing in public and corporate bonds (hereinafter referred to as “Daily Settlement Type
Bond Investment Trusts”).

Article 12.

Items to Be Indicated in the Main Text

1. The items to be indicated in the main text of the investment reports for Daily Settlement Type Bond
Investment Trusts shall be as follows.
(1) Dividend per 10,000 units(2) Explanation of investment progress, etc.
(3) Status of assets, liabilities, principal and base value(4) Status of purchases/sales and profit/loss regarding incorporated securities, etc.
(5) Status of creation/cancellation of the fund by the company(6) Details of bonds incorporated by type(7) Details of individual issues of bonds incorporated(8) Details of expenses per 10,000 units
2. In presenting the details of individual issues of bonds incorporated as prescribed in Item 7 of the preceding
paragraph, the items specified in the By-laws shall be indicated.
* Article 10 of the By-laws

Article 13.

Additional Items to Be Indicated for MMFs

1. Investment reports for MMFs (referring to investment trusts prescribed in Article 2, Paragraph 1 of the Rules
on Operation of MMFs, etc. (hereinafter referred to as the “MMF Rules”)) shall indicate the following
matters in addition to the matters prescribed in the preceding article.
(1) Ratio of incorporated assets by rating to total net assets
2. Issues for which the content is unclear, such as structured bonds, shall be indicated in an easy-to-understandmanner.

Article 14.

Form and Presentation Guidelines

The items to be indicated in the investment reports for Daily Settlement Type Bond Investment Trusts, asprescribed in the preceding three paragraphs, may be presented in accordance with the form and presentation
guidelines prescribed by the Self-Regulation Committee.
* Committee Resolution 3

Article 15.

Delivery of Investment Reports

The provisions of Paragraph 1 and Paragraph 2 of Article 10 shall apply mutatis mutandis to the delivery ofinvestment reports for Daily Settlement Type Bond Investment Trusts.

Chapter 4:
Article 16.

Items to Be Indicated in Monthly Disclosures for MRFs and MMFs
Monthly Disclosures for MMFs

1. Management Companies operating MMFs shall disclose the following items (hereinafter referred to as“Items for Monthly Disclosure”) at least once a month in the manner prescribed in Article 17.
(1) Balance and ratio of incorporated assets by type(2) Ratio of incorporation of public and corporate bonds (excluding government bonds, etc., as defined in
Article 3, Paragraph 1, Item 1 of the Rules on Operation of MMFs, etc. (“Government Bonds, etc.”) andfinancial bonds), financial bonds, CP, CDs, etc. by top five issuers(3) Ratio of incorporated assets by rating to total net assets
2. Items for Monthly Disclosure specified in the preceding paragraph shall be presented in the mannerprescribed in the By-laws.
3. The Items for Monthly Disclosure specified in Paragraph 1 may be presented in accordance with the form
and presentation guidelines prescribed by the Self-Regulation Committee.
* Article 11 of the By-laws* Committee Resolution 4

Article 16-2.

(Monthly Disclosures for MRFs

1. Management Companies operating MMFs shall disclose the Items for Monthly Disclosure at least once amonth in the manner prescribed in the following article.
(1) Balance and ratio of incorporated assets by type(2) Status of incorporation ratio of public and corporate bonds and short-term financial assets by issuer

(3) Ratio of incorporated assets by rating to total net assets
2. Items for Monthly Disclosure specified in the preceding paragraph shall be presented in the mannerprescribed in the By-laws.
3. The Items for Monthly Disclosure specified in Paragraph 1 may be presented in accordance with the form
and presentation guidelines prescribed by the Self-Regulation Committee.
* Article 11-2 of the By-laws* Committee Resolution 4

Article 17.

Method of Monthly Disclosures

The monthly disclosures specified in the preceding two articles shall be made in the following manner:(1) Posting on the website of the Management Company(2) Method of placing at the office of the distributor

Chapter 5:
Article 18.

Timely Disclosure
Timely Disclosure

1. A Management Company shall disclose the following matters regarding investment trusts for which it
provides management instructions in a timely manner via the Management Company’s website or similarmeans.
(1) For stock investment trusts, the following information shall be indicated as specified in the respective
items below.
(a) Summary of the investment trust: The base value, total amount of net assets, etc. as of the date ofestablishment, date of maturity, date of settlement of accounts, and base date (meaning the date thatserves as the basis for such timely disclosure, which is voluntarily determined by the Management
Company; the same shall apply hereinafter) shall be indicated.
(b) Graph of changes in base value: The graph shall be displayed for the past three years or more. The
basis for calculation should be clear, such as including dividends before tax deductions. In addition,for investment trusts that specify a benchmark (a benchmark as defined in Article 3, Paragraph 2; thesame shall apply hereinafter) in the prospectus, this shall be presented in comparison with suchbenchmark.
(c) The investment trust’s fluctuation rate by period: Taking the base value on the base date as astandard, the fluctuation rate shall be indicated for the periods of one year and three years (forinvestment funds that have been in existence for less than three years, the period since establishment).
The basis for calculation should be clear, such as including dividends before tax deductions. For
investment trusts that specify a benchmark in the prospectus, the fluctuation rate of such benchmarks
during each period shall also be indicated.
(d) Disclosure of expenses: In disclosing the above (b), the trust fee rate of the investment trust inquestion, or in cases where such trust fee rate fluctuates, the most recent trust fee rate as of the basedate. A note shall be added to the effect that the base value in question is the value after deducting thetrust fee rate. In this case, the indication may substitute for the amount of trust fees.
(e) Actual dividends: Figures shall be indicated for the past three periods or more.
(f) Status of asset incorporation: The status of the investment trust’s portfolio shall be indicated in termsof asset composition, top issues incorporated, proportion by industry, etc., in accordance with the
product characteristics of the investment trust.
(g) For investment trusts whose main investment target is bonds and which the Management Company
judges to be appropriate due to the nature of the investment trust’s product, the status of the portfolio
shall be indicated by the average remaining maturity or duration of the bonds in the investment trust.
(2) For public and corporate bond investment trusts, the following information shall be indicated as
specified in the respective items below.
(a) Summary of the investment trust: The date of establishment, date of redemption, date of settlement,base value on the base date and total amount of net assets, etc. shall be indicated.
(b) Disclosure of expenses: The trust fee rate of the investment trust in question (or in cases where such
trust fee rate fluctuates, the most recent trust fee rate as of the base date). It shall also be indicated thatthe base value in question is the value after deducting the trust fee rate. In this case, the indication
may substitute for the amount of trust fees.
(c) Actual dividends and changes in yield: Figures shall be indicated for the past three periods or more.
For Daily Settlement Type Bond Investment Trusts, the annualized yield or actual dividends for themost recent seven days shall be presented for the last three months or more.
(d) Status of asset incorporation: The status of the investment trust’s portfolio shall be indicated interms of asset composition, top issues incorporated, proportion by type, etc., in accordance with the
product characteristics of the investment trust.
(e) For investment trusts which the Management Company judges to be appropriate due to the nature of
the investment trust’s product, the status of the portfolio shall be indicated by the average remaining
maturity or duration of the bonds in the investment trust.
2. The timely disclosure prescribed in the preceding paragraph shall be made on a monthly basis. However, for
an interim period, it may be disclosed on a quarterly basis.
3. Among the items to be displayed as prescribed in Paragraph 1, the base value and total amount of net assets
on the base date as prescribed in Items 1 (a) and 2 (a), the fluctuation rate by period as prescribed in Item 1(c), and the graph of changes in base value as prescribed in Item 1 (b) (limited to those for the past three years
or more) may be substituted by linking to the relevant items for the investment trust in question in thecomprehensive search system for investment trusts operated by the Association.

Article 19.

Disclosure of Matters with a Significant Impact on Base Value

In order to respond to cases where a Management Company itself determines that disclosure should be madewhen an event that has had a significant impact on the base value of the relevant investment trust occurs, theManagement Company shall establish internal rules regarding whether or not disclosure is permitted inadvance, and shall disclose the details of the event that is determined to have had a significant impact on thebase value of the relevant investment trust through the Management Company’s website or other means.

Article 19-2.

Disclosure in Cases Where Investment Restrictions Are Exceeded to Avoid Concentration ofCredit Risk
1. In the event that the ratio of exposure to the total amount of net assets of the investment trust property as
specified in Article 17-2, Paragraph 1 of the Management Rules exceeds 10% for each of the categories
listed in the items of the same paragraph of the same article, or 20% in total (hereinafter referred to as the“Base Ratio”)(including cases in which Article 17-2 is applied by replacing the relevant terms in Article 17-3,
Paragraph 1, Item 3 of the Management Rules), the Management Company shall, within three months after
completing the adjustment specified in the same paragraph of the same article, disclose the fact that the Base
Ratio has been exceeded and that the adjustment has been completed thereafter on the Management
Company’s website or by other means.
2. The provisions of the preceding paragraph shall not apply to funds to which Article 17-2 of the Management
Rules does not apply and funds for which the measures prescribed in Article 17-3 (excluding Paragraph 1,
Item 3) of the same Rules have been taken.

Article 20.

Voluntary Disclosure Investment Trusts

Notwithstanding the provisions of Article 18 and Article 19, for privately placed investment trusts, listed
investment trusts (meaning investment trusts as defined in Article 12, Items 1 and 2 of the Cabinet Order andlisted securities investment trusts as defined in Article 9-4-2 of the Act on Special Measures Concerning
Taxation (Act No. 26 of 1957)), unit type investment trusts during the closed period and other investment trusts
specified in the By-laws (hereinafter referred to as “Voluntary Disclosure Investment Trusts”), disclosure shallbe made at the discretion of the Management Company.
* Article 12 of the By-laws

Chapter 6:
Article 21.

Items to Be Indicated in Investment Reports for Real Estate Investment Trusts
Items to Be Indicated on the Cover Page

The cover page of investment reports for real estate investment trusts (hereinafter the “REIT”) shall indicate thefollowing items.
(1) The label “Investment Report”(2) The name of the REIT
(3) Fiscal period and date of settlement (for REIT with accounting periods of less than six months, therespective accounting period and date of settlement)(4) Name and address of the Management Company

Article 22.

Items to Be Indicated in the Main Text and Their OrderThe main text of investment reports of REIT shall indicate the mechanism of the REIT in question (including
the investment policy for the relevant investment trust property), as well as the following information as
specified in the respective items below. In principle, the investment report shall indicate such information in thefollowing order.
(1) Changes in the investment situation, etc. of the investment trust property: Operating revenue, ordinary
income, net income for current period, net assets, total assets, base value (referring to net assets per unit
(referring to one trading unit)), and equity ratio for each of at least five accounting periods prior to thecurrent period shall be indicated.
(2) Progress of asset management during the current period: The basic policy for the REIT, its results forthe current period, and analysis thereof shall be indicated using the status of acquisition and sale of realestate, etc. and asset-backed securities, etc. during the current period (if the accounting period is lessthan six months, the period shall be the past six months from the last day of the relevant accounting
period; the same shall apply hereinafter in this chapter), as well as changes in leasable area andoccupancy rate, etc.
The relationship with the future investment policy indicated in the previous period’s investment
report shall also be indicated.
(3) Status of trust principal, etc.: If there is an increase in the trust principal in the current period due to a
public offering, etc., changes in the number of units of beneficial interests, etc. shall be indicated.
(4) Record of dividends, etc.: Dividends, etc. for each accounting period for five or more periods prior tothe current period (if the accounting period is less than six months, the dividends, etc. paid for eachaccounting period during the past six months from the end of the preparation period) shall be presented
separately for dividends from earnings and cash payments for refunds of investment principal. It shallalso indicate the basis for determining the amount of the dividend for the current period and the future
investment policy for retained earnings.
In the event that the investment principal is refunded on an ongoing basis every period as
stipulated in Article 28-2 of the Rules on REIT, etc., notes or similar information shall be provided on
the matters stipulated in Item 4 of the same article.
In addition, in the event of refunds of investment principal other than the ongoing refunds ofinvestment principal every period as provided for in Article 28-3 of the Rules on REIT, etc., notes orsimilar information shall be provided on the matters stipulated in the proviso to the same article.
(5) Future investment policy: The investment policy for the next and subsequent periods shall be indicatedin detail, including the relationship with the investment policy indicated in the Basic Terms andConditions of the investment trust, using a summary of capital expenditures, etc. for which
implementation has been approved. In this case, it shall be concisely described while using objective
expressions.
(6) Issues to be addressed: Any issues to be addressed concerning the REIT shall be indicated briefly.
However, if the same information is presented in the future investment policy as stipulated in theprevious item, such indication may be omitted.
(7) Material facts that have arisen after the settlement of accounts: Facts concerning situations that havearisen in relation to the REIT after the settlement of accounts for the current period, and material facts
concerning its operations, the status of its earnings and the rights of its beneficiaries, shall be indicated.
(8) Investment trust property management summary: When the trust contract period has ended, theinvestment trust property management summary prescribed in Article 58, Paragraph 1, Item 26 of theOrdinance on Investment Trust’s Financial Statements shall be indicated.
(9) Status of investment contributions: Total number of units of beneficial interests to be issued, total
number of units of beneficial interests already issued, and number of beneficiaries shall be indicated.
(10) Major beneficiaries: The names of the top 10 beneficiaries in order of the ratio of the number of units ofbeneficial interests held to the total number of units of beneficial interests as of the end of the fiscal
period, and the number of units of beneficial interests that each holds. However, if an individual isincluded in the top 10 holders (companies) and the ratio of the number of beneficial interests held bythat individual to the total number of beneficial interests is less than 10%, their name may be replacedwith an indication that they are an individual.
(11) Name of trustee bank as of the end of the current period(12) Composition of investment trust property: The ratio of the amount of each type of asset to the amount of
total assets as of the end of the current period shall be indicated. In this case, the effective proportion ofreal estate incorporated for each asset and the main investment targets of the assets listed in Article 3,
Paragraph 2, Items 5 to 8 of the Rules on REIT, etc. as of the end of the period shall be noted for eachtype of asset.
(13) Major assets held: For assets held as of the end of the current period, the proportion to total leasable area
and total rental revenue, etc. accounted for by each individual asset shall be indicated for at least the top
10 individual assets in terms of book value.
(14) Details of incorporated assets: Details of assets incorporated in the REIT as of the end of the current
period shall be indicated separately for each type of asset. However, in lieu of this indication, a detailed
statement of securities (meaning a detailed statement of securities as prescribed in Article 57, Paragraph
1, Item 1 of the Ordinance on Investment Trust’s Financial Statements) may be attached for securities, adetailed statement of real estate, etc. (meaning a details of real estate, etc. as prescribed in Article 57,
Paragraph 1, Item 5 of the Ordinance on Investment Trust’s Financial Statements) may be attached forreal estate, etc., a detailed statement of renewable energy power generation facilities (meaning details of
renewable energy power generation facilities, etc. as prescribed in Article 57, Paragraph 1, Item 8 of theOrdinance on Investment Trust’s Financial Statements) may be attached for renewable energy power
generation facilities, etc., and details of rights to operate public facilities, etc. (meaning a Details ofRights to Operate Public Facilities, etc., as prescribed in Article 57, Paragraph 1, Item 9 of theOrdinance on Investment Trust’s Financial Statements) may be attached for Rights to Operate Public
Facilities, etc.
When indicating renewable energy power generation facilities, in addition to the table set forth in
the detailed statement of incorporated assets in Attached Table 6 (14) of the resolution of the committee
on investment reports, etc. of infrastructure investment trusts, etc. (hereinafter referred to as the“Committee Resolution on Infrastructure Investment Trusts, etc.”), matters concerning the approved
business operator or supplier (nature of business, financial status, profit status, status of personnel
engaged in operation of the renewable energy power generation facility, performance of operation of
the renewable energy power generation facility and other important matters concerning the approved

business operator’s or supplier’s ability to perform its business) shall be indicated. If a lease contract
with respect to the renewable energy power generation facility has been entered into with a counterparty,
rental income during the accounting period of the investment trust property, expiration date of thecontract, method of contract renewal, deposit and other matters to be specified with respect to the lease
contract, price for each renewable energy power generation facility as of the end of the current period
shall be indicated. If the renewable energy power generation facility falls under the category of certified
power generation facility, matters concerning compliance with the standards set forth in each item of
Article 9, Paragraph 3 of the Act on Special Measures Concerning Procurement of Electricity from
Renewable Energy Sources shall be indicated.
In addition, when indicating operating rights for public facilities, etc., the status of public facilities,
etc. to which the said operating rights pertain (details of the service agreement for the operation of the
public facilities etc. (counterparty to the agreement, term of the agreement, annual service fee and othermatters to be specially noted regarding the said agreement), actual annual operating revenue, current
status of the public facilities etc. and other matters that have a significant impact on the price of theoperating rights for said public facilities, etc.), matters concerning the counterparty to the service
agreement for the operation of public facilities, etc. (nature of its business, financial status, status of
earnings, status of personnel engaged in the operation, etc. of the public facilities, etc., actual
performance of the operation, etc. of the public facilities, etc., and other important matters concerning
the ability of the counterparty to the agreement to execute the business), and the price for each operatingright for public facilities, etc. as of the end of the period shall be indicated in addition to the table set
forth in the details of incorporated assets in Attached Table 6 (14) of the Committee Resolution on
Infrastructure Investment Trusts.
(15) Status of other assets: Assets other than real estate, etc., asset-backed securities, etc., and infrastructure
assets, etc., as of the end of the current period shall be classified into the types of assets specified in the
By-laws and indicated separately.
However, this may be omitted for assets for which special treatment related to hedge accounting isapplied (i.e., those used as hedging instruments).
(16) Held assets by country/region: In the case of investments in overseas real estate, etc. in multiple
countries/regions, the held assets as of the end of the current period shall be indicated for eachcountry/region.
(17) Plans for capital expenditures: Implementation plans for capital expenditures that have been finalizedprior to the date on which the investment report is actually produced (hereinafter referred to as the “Dateof Production”) shall be indicated for each such plan.
(18) Capital expenditures during the period: If the implementation plans for capital expenditures have been
completed by the end of the current period, each such plan shall be indicated. When capital
expenditures are made due to natural disasters, etc., the relevant capital expenditures shall be indicatedseparately.
(19) Money set aside for long-term repair plans: The amount set aside at the end of the period based onlong-term repair plans shall be indicated as the balance of the reserve as of the end of the previous

period at the end of each period, the amount set aside and the amount reversed for each accounting
period, and the amount carried forward to the next period at the end of each period, for five or moreaccounting periods prior to the current period (if the accounting period is less than six months, it shallbe the accounting periods within the past five years or more from the end of the preparation period).
In the event that the investment principal is refunded on an ongoing basis every period as
stipulated in Article 28-2 of the Rules on REIT, etc., notes or similar information shall be provided on
the matters stipulated in Item 5 of the same article.
(20) Details of expenses related to management, etc.: The amount of total expenses and trust fees paid frominvestment trust property during the current period shall be indicated, broken down by Management
Company, trustee bank, offering agent, and total amount, as well as the details of the services for which
they are paid.
(21) Status of borrowing: If there is a balance of funds borrowed during the current period, the lender, thedate of borrowing, the balance at the end of the previous period, the balance at the end of the current
period, the average interest rate, the repayment due date, the repayment method and the use purpose of
the funds shall be indicated separately for each borrowing.
(22) Status of trading of real estate, etc., asset-backed securities, infrastructure assets, etc., andinfrastructure-related assets, etc.: The status of trading and profits/losses relating to real estate, etc.,
asset-backed securities, etc., infrastructure assets, etc., and infrastructure-related assets during theperiod shall be indicated separately for each asset.
(23) Status of trading of other assets: The status of trading of other assets and profits/losses during the period
shall be indicated separately for each asset.
(24) Investigation of the price of specified assets, etc.: The matters stipulated in Article 58, Paragraph 1,
Item 20 of the Ordinance on Investment Trust’s Financial Statements shall be indicated.
(25) Status of transactions with interested parties, etc. and major shareholders: The status of transactions
with interested parties, etc. and major shareholders (meaning major shareholders as defined in Article
29-4, Paragraph 2 of the FIEA) during the current period and the total amount of commissions paid
thereto shall be indicated.
In this case, interested parties, etc. shall be those to whom any of the following criteria (a) to (c) apply.
(a) An interested party, etc. as defined in Article 17 of the Cabinet Order(b) Corporations, associations, trusts and other similar entities (hereinafter referred to as “Corporations,etc.” in this item and Article 26, Item 27) that have entered into a discretionary investment advisory
contract for real estate, etc. (meaning a discretionary investment contract as defined in Article 2,
Paragraph 5 of the Real Estate Investment Advisory Business Registration Regulations (Ministry ofConstruction Notification No. 1828 of 2000) or Article 2, Paragraph 8, Item 12 (b) of the FIEA; thesame shall apply in Article 26, Item 27) with an interested party, etc. or major shareholder of theManagement Company.
(c) Corporations, etc. in which interested parties, etc. and major shareholders of the Management
Company hold a majority stake or constitute a majority of the officers, etc.
(26) Status of transactions, etc., with the Management Company in relation to secondary businessesoperated by the Management Company: In cases where a Management Company is engaged in a TypeI Financial Instruments Business, Type II Financial Instruments Business, Real Estate Brokerage(meaning a Real Estate Brokerage as defined in Article 2, Item 2 of the Real Estate Brokerage Act (ActNo. 176 of 1952); the same applies hereinafter), Specified Joint Real Estate Venture (meaning aSpecified Joint Real Estate Venture as defined in Article 2, Paragraph 4 of the Act on Specified Joint
Real Estate Ventures (Act No. 77 of 1994); the same applies hereinafter), or Business of Assuming
Commodity Transaction Debts, the status of transactions with said Management Company, which is a
Type I Financial Instruments Business, Type II Financial Instruments Business, Real Estate Brokerage,
Specified Joint Real Estate Venture, or Business of Assuming Commodity Transaction Debts involvedin the secondary business in question, shall be indicated alongside the total amount of trading
commissions paid to said Management Company or the total amount of commissions.
(27) Status of assets, liabilities, principal, and profits and losses: The status of assets, liabilities, principal,
and profits and losses as of the end of the current period (if the accounting period is less than six months,
the end of each accounting period in the preparation period; the same shall apply hereinafter in thischapter) shall be indicated. Alternatively, a balance sheet, profit and loss statement, and statement ofcash distribution may be attached instead.
(28) Change in the method of calculating depreciation: When there is a change in the method of calculating
the amount of depreciation of equipment, etc., during the current period, the date of the change incalculation method, the calculation method before the change, the amount calculated using the
calculation method before the change, the calculation method after the change, the amount calculatedusing the calculation method after the change, and the reason for the change shall be indicated.
(29) Change in valuation method of real estate, etc. and infrastructure assets, etc.: If the valuation method ofreal estate, leaseholds or superficies rights of real estate, or infrastructure assets, etc. is changed during
the current period, the date of change of the valuation method, the valuation method before change, theappraised value appraised by the method before change, the valuation method after change, theappraised value appraised by the method after change and the reason for change shall be indicated.
(30) Disclosures related to beneficiary certificates of investment trusts, etc. created by the company: In thecase of acquisitions, etc. listed in Article 6-3 of the Rules for Full Members’ Business Operations, etc.
as stipulated in Article 6-5 of the same Rules, the matters to be stated in the investment report, etc. shallbe as follows.
(a) Possession of beneficiary certificates for investment trusts, etc. created by the company as of the endof the current period.
(b) History of acquisitions and dispositions for each of the past five accounting periods, including theend of the current period(c) Number of units held, total amount, and ratio to total number of units issued at the end of eachaccounting period for the past five years, including the end of the current period.
(d) Other matters necessary from the viewpoint of protection of investors, etc. (limited to cases whereacquisition or disposal has been made in the past five years, including the end of the current period.)(31) Announcements: In the event that changes are made to the Basic Terms and Conditions of aninvestment trust, changes are made to the management system, etc., or events occur that theManagement Company deems appropriate to make known to beneficiaries during the current period,
the details of such events, etc. shall be indicated. However, this does not apply if the details of therelevant event, etc. are indicated in other items, etc.
* Article 13 of the By-laws

Article 23.

Disclosure Relating to Mother Funds

The provisions of Article 4 shall apply mutatis mutandis to cases where beneficiary certificates of a motherfund are incorporated in investment trust property.

Article 24.

Form and Presentation Guidelines

The items to be indicated as prescribed in Article 22 (excluding items 2, 5 through 11, 14 (ii) and (iii), 24 and31) pertaining to the investment reports of real estate investment trusts may be indicated in accordance with theform and presentation guidelines prescribed by the Self-Regulation Committee.
* Committee Resolution on Real Estate Investment Trusts, etc. 1

Article 24-2.

Production and Delivery of Documents Prescribed in Article 14, Paragraph 4 of theInvestment Trust Act
In accordance with the provisions of Article 14, Paragraph 4 of the Investment Trust Act, the Management
Company must prepare a document stating the matters to be stated in the investment report in Paragraph 1 ofthe same Article which are specified by Cabinet Office Ordinance as important matters and deliver it to known
beneficiaries each time it is produced.
In this case, the said document shall be prepared and delivered in accordance with the provisions of Article
58-2 of the Ordinance on Investment Trust’s Financial Statements, with reference to Chapter 3’s provisions
regarding Investment Reports (Delivery Version).

Chapter 7:

Items to Be Indicated in Asset Management Reports for Real Estate Investment

Corporations
Article 25.

Items to Be Indicated on the Cover Page

The cover page of asset management reports for real estate investment corporations shall indicate the following
items.
(1) The label “Asset Management Report”(2) The name of the real estate investment corporation(3) Fiscal period and date of settlement(4) Location of the head office of the real estate investment corporation

Article 26.

Items to Be Indicated in the Main Text and Their Order

1. The main text of an asset management report for a real estate investment corporation shall indicate theinformation as specified in the respective items below. In principle, the asset management report shallindicate such information in the following order.
(1) Changes in the investment situation, etc. of the investment corporation: Operating revenue, ordinary
income, net income for current period, net assets, total assets, base value (referring to net assets per unit
(referring to one trading unit)), and equity ratio for each of at least five business periods prior to thecurrent period shall be indicated.
(2) Progress of asset management during the current period: The Basic Management Policy of the realestate investment corporation, its results for the current period, and analysis thereof shall be indicatedusing the status of acquisition and sale of real estate, etc. and asset-backed securities, etc. during thecurrent period, as well as changes in leasable area and occupancy rate, etc. The relationship with the
future asset investment policy indicated in the previous period’s investment report shall also be
indicated.
(3) Increases in capital, etc.: If there is an increase in capital investment as a result of a public offering, etc.
during the current period, the change in investment units, etc. shall be indicated.
(4) Record of dividends, etc.: Dividends, etc. for each business period for five or more periods prior to thecurrent fiscal period shall be presented separately for dividends from earnings and cash payments forrefunds of investment contributions (dividends shall be classified into those from the allowance fortemporary difference adjustments and those with decrease of investment capital, etc. under the Tax Act).
It shall also indicate the basis for determining the amount of the dividend for the current period and thefuture investment policy for retained earnings.
In the event of an ongoing refund of investment categorized as a capital distribution with decreaseof investment capital, etc. under the Tax Act every fiscal period as stipulated in Article 43-4 of theRules on REIT, etc., notes or similar information shall be provided on the matters stipulated in Item 4 ofthe same article.
In addition, in the event of a refund of investment categorized as a capital distribution withdecrease of investment capital, etc. under the Tax Act other than an ongoing refund of investment
categorized as a capital distribution with decrease of investment capital, etc. under the Tax Act every
fiscal period as stipulated in Article 43-5 of the Rules on REIT, etc., notes or similar information shallbe provided on the matters stipulated in the proviso to the same article.
(5) Future investment policy: The investment policy for the next and subsequent periods shall be indicatedin detail, including the relationship with the investment policy indicated in the investment corporation’s
Certificate of Incorporation, using a summary of capital expenditures, etc. for which implementation
has been approved. In this case, it shall be concisely described using objective expressions.
(6) Issues to be addressed: Any issues to be addressed by the real estate investment corporation shall be
indicated briefly. However, if the same information is presented in the future investment policy as
stipulated in the previous item, such indication may be omitted.
(7) Material facts that have arisen after the settlement of accounts: Facts that have arisen in relation to thereal estate investment corporation after the settlement of accounts for the current period, and material
facts concerning its operations, the status of its earnings and the rights of its investors, shall beindicated.
(8) Status of investment contributions: The total number of investment units that can be issued, the total
number of investment units already issued, and the number of investors shall be indicated.
(9) Matters regarding investment units: The names of the top 10 investors in descending order of the
proportion of investment units each holds out of the total number of investment units issued (excluding
own investment units) as of the end of the current period, the number of investment units held by thesaid investors, and relevant proportion held by each.
(10) Matters regarding officers, etc.: The names, positions and responsibilities, status of concurrently held
positions, and other important matters of officers, etc. (including those who were in their position
during the relevant business period and retired by the end of the relevant business period) shall be
indicated.
(11) Asset management companies, asset custodian companies and general administration companies: The
names of the asset management companies (meaning the asset management company as defined in
Article 2, Paragraph 21 of the Investment Trust Act; the same shall apply hereinafter ) , asset custodiancompanies and general administration companies as of the end of the current period shall be indicated.
(12) Composition of real estate investment corporation assets: The ratio of the amount of each type of asset
to the total assets as of the end of the current period shall be indicated. In this case, the effective
proportion of real estate incorporated for each asset and the main investment targets of the assets listed
in Article 3, Paragraph 2, Items 5 to 8 of the Rules on REIT, etc. as of the end of the period shall be
noted for each type of asset.
(13) Major assets held: For assets held as of the end of the current period, the proportion of total leasable area
and total rental revenue, etc. accounted for by each individual asset shall be indicated for at least the top
10 individual assets in terms of book value as of the end of the current period.
(14) Details of incorporated assets: Details of assets incorporated in the REIT as of the end of the current
period shall be indicated separately for each type of asset. However, in lieu of this indication, a detailed
statement of securities (meaning a detailed statement of securities as prescribed in Article 80, Paragraph
1, Item 1 of the Ordinance on Accounting of Investment Corporations (Ordinance No. 47 of 2006,
hereinafter referred to as the “Ordinance on Investment Corporation’s Financial Statements”) may be
attached for securities, a detailed statement of real estate, etc. (meaning a details of real estate, etc. asprescribed in Article 80, Paragraph 1, Item 5 of the Ordinance on Investment Corporation’s Financial
Statements) may be attached for real estate, etc., a detailed statement of renewable energy power
generation facilities (meaning a details of renewable energy power generation facilities, etc. asprescribed in Article 80, Paragraph 1, Item 8 of the Ordinance on Investment Corporation’s Financial
Statements) may be attached for renewable energy power generation facilities, etc., and details of rights
to operate public facilities, etc. (meaning Details of Rights to Operate Public Facilities, etc. asprescribed in Article 80, Paragraph 1, Item 9 of the Ordinance on Investment Corporation’s Financial
Statements may be attached for Rights to Operate Public Facilities, etc.
When indicating renewable energy power generation facilities, in addition to the table set forth in
the detailed statement of incorporated assets in Attached Table 6 (14) of the Committee Resolution on

Infrastructure Investment Trusts, etc., matters concerning the approved business operator or supplier(nature of business, financial status, profit status, status of personnel engaged in operation of therenewable energy power generation facility, performance of operation of the renewable energy power
generation facility and other important matters concerning the approved business operator’s or
supplier’s ability to perform its business) shall be indicated. If a lease contract with respect to therenewable energy power generation facility has been entered into with a counterparty, rental income
during the business period of the investment corporation assets, expiration date of the contract, methodof contract renewal, deposit and other matters to be specified with respect to the lease contract, price foreach renewable energy power generation facility as of the end of the current period shall be indicated. If
the renewable energy power generation facility falls under the category of certified power generation
facility, matters concerning compliance with the standards set forth in each item of Article 9, Paragraph
3 of the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy
Sources shall be indicated.
In addition, when indicating operating rights for public facilities, etc., the status of public facilities,
etc. to which the said operating rights pertain (details of the service agreement for the operation of the
public facilities etc. (counterparty to the agreement, term of the agreement, annual service fee and othermatters to be specially noted regarding the said agreement), actual annual operating revenue, current
status of the public facilities etc. and other matters that have a significant impact on the price of theoperating rights for said public facilities, etc.), matters concerning the counterparty to the service
agreement for the operation of public facilities, etc. (nature of its business, financial status, status of
earnings, status of personnel engaged in the operation, etc. of the public facilities, etc., actual
performance of the operation, etc. of the public facilities, etc., and other important matters concerning
the ability of the counterparty to the agreement to execute the business), and the price for each operatingright for public facilities, etc. as of the end of the period shall be indicated in addition to the table set
forth in the details of incorporated assets in Attached Table 6 (14) of the Committee Resolution on
Infrastructure Investment Trusts.
(15) Status of other assets: Assets other than real estate, etc., asset-backed securities, etc., and infrastructure
assets, etc., as of the end of the current period shall be classified into the types of assets specified in the
By-laws and indicated separately.
However, this may be omitted for assets for which special treatment related to hedge accounting isapplied (i.e., those used as hedging instruments).
(16) Held assets by country/region: In the case of investments in overseas real estate, etc. in multiple
countries/regions, the held assets as of the end of the current period shall be indicated for eachcountry/region.
(17) Scheduled capital expenditures: Implementation plans for capital expenditures that have been finalizedprior to the Date of Production of the relevant asset management report shall be indicated for each suchplan.
(18) Capital expenditures during the period: If the implementation plans for capital expenditures have been
completed by the end of the current period, each such plan shall be indicated. When capitalexpenditures are made due to natural disasters, etc., the relevant capital expenditures shall be indicatedseparately.
(19) Money set aside for long-term repair plans: The amount set aside at the end of the period based onlong-term repair plans shall be indicated as the balance of the reserve for the start of the current period
at the end of each period, the amount set aside and the amount reversed for each business period, and theamount carried forward to the next period at the end of each period, for five or more business periods
prior to the current period (if the business period is less than six months, it shall be the business periods
within the past five years from the end of the preparation period).
In the event of a refund of investment categorized as an ongoing capital distribution with decreaseof investment capital, etc. under the Tax Act every fiscal period as stipulated in Article 43-4 of theRules on REIT, etc., notes or similar information shall be provided on the matters stipulated in Item 5 ofthe same article.
(20) Details of expenses related to management, etc.: The total amount of expenses paid by the real estate
investment corporation during the current period and expenses paid to outside contractors, etc. that haveconcluded agreements with the said real estate investment corporation shall be indicated separately by
party to which payment is made.
(21) Status of Borrowing If there is a balance of funds borrowed during the current period, the lender, thedate of borrowing, the balance at the beginning of the current period, the balance at the end of thecurrent period, the average interest rate, the repayment date, the repayment method, the use purpose of
the funds, whether or not collateral is provided, collateral properties, and other special provisions shallbe indicated separately for each borrowing.
(22) Investment corporation bonds: If there are investment corporation bonds outstanding at the end of thecurrent period, the name of the issue, date of issue, balance at the beginning of the current period,balance at the end of the current period, interest rate, redemption period, redemption method andpurpose of use, etc. shall be indicated separately for each issue.
(23) Short-term investment corporation bonds: If there are any short-term investment corporation bonds
outstanding at the end of the fiscal period, the issue name, issue date, balance at the end of the fiscal
period, issue value, redemption value, etc. shall be indicated separately for each issue.
(23-2) Investment equity subscription rights: If there are investment equity subscription rights that have notbeen exercised as of the end of the current period, the name of the issue, the date of issue, the number ofinvestment equity subscription rights unexercised as of the end of the current period, the number ofinvestment units for which the investment equity subscription rights are intended or the method of
calculating the number of units, the amount to be paid in upon exercise of the investment equity
subscription rights or the method of calculating the amount of money to be paid in upon exercise of the
new investment equity subscription rights, and the exercise period shall be indicated separately for eachissue.
(24) Status of trading of real estate, etc., asset-backed securities, infrastructure assets, etc., andinfrastructure-related assets, etc.: The status of trading and profits/losses relating to real estate, etc.,
asset-backed securities, etc., infrastructure assets, etc., and infrastructure-related assets during thecurrent period shall be indicated separately for each asset.
(25) Status of trading of other assets: The status of trading of other assets and profits/losses during thecurrent period shall be indicated separately for each asset.
(26) Investigation of the price of specified assets, etc.: The matters stipulated in Article 73, Paragraph 1,
Item 19 of the Ordinance on Investment Corporation’s Financial Statements shall be indicated.
(27) Status of transactions with interested parties, etc.: The status of transactions with interested parties, etc.
during the current period and the total amount of commissions paid thereto shall be indicated.
In this case, interested parties, etc. shall be those to whom any of the following criteria (a) to (c) apply.
(a) An interested party, etc. as defined in Article 123 of the Cabinet Order(b) A Corporation, etc. that has entered into a discretionary investment advisory contract for real estate,etc. with an interested party, etc. of the asset management company(c) A Corporation, etc. in which interested parties, etc. of the asset management company hold amajority stake or constitute a majority of the officers, etc.
(28) Status of transactions, etc., with asset management companies in relation to secondary businesses
operated by the asset management companies in question: In cases where an asset managementcompany is engaged in a Type I Financial Instruments Business, Type II Financial Instruments
Business, Real Estate Brokerage, or Specified Joint Real Estate Venture, the status of transactions
during the current period with said asset management company, which is a Type I Financial Instruments
Business, Type II Financial Instruments Business, Real Estate Brokerage, or Specified Joint Real Estate
Venture involved in the secondary business in question, shall be indicated alongside the total amount oftrading commissions paid to said asset management company or the total amount of commissions.
(29) Status of assets, liabilities, principal, and profits and losses: The status of assets, liabilities, principal,
and profits and losses as of the end of the current period shall be indicated. Alternatively, a balance
sheet, profit and loss statement, statement of changes in investors’ equity, notes, and statement of cash
distribution may be attached instead.
(30) Change in the method of calculating depreciation: When there is a change in the method of calculating
the amount of depreciation of equipment, etc., at the end of or during the current period, the date of thechange in calculation method, the calculation method before the change, the amount calculated using
the calculation method before the change, the calculation method after the change, the amountcalculated using the calculation method after the change, and the reason for the change shall be
indicated.
(31) Change in valuation method of real estate, etc. and infrastructure assets, etc.: If the valuation method ofreal estate, leaseholds or superficies rights of real estate, or infrastructure assets, etc. is changed at theend of or during the current period, the date of change of the valuation method, the valuation method
before change, the appraised value appraised by the method before change, the valuation method after
change, the appraised value appraised by the method after change, the reason for change, and any otherspecial provisions shall be indicated.
(32) Disclosures related to beneficiary certificates of investment trusts, etc. created by the company: In thecase of acquisitions, etc. listed in Article 6-3 of the Rules for Full Members’ Business Operations, etc.

as stipulated in Article 6-5 of the same Rules, the matters to be stated in the investment report, etc. shallbe as follows.
(a) Possession of beneficiary certificates for investment trusts, etc. created by the company as of the endof the current period.
(b) History of acquisitions and dispositions for each of the past five accounting periods, including theend of the current period(c) Number of units held, total amount, and ratio to total number of units issued at the end of eachaccounting period for the past five years, including the end of the current period.
(d) Other matters necessary from the viewpoint of protection of investors, etc. (limited to cases whereacquisition or disposal has been made in the past five years, including the end of the current period.)(33) Announcements: If any matter stipulated in Article 109, Paragraph 2, Items 2, 3, 5, 6 and 8 of theInvestment Trust Act is approved by the Board of Directors of the relevant real estate investment
corporation or if any other information is found to be important during the current period, the details ofsuch information shall be indicated. However, this shall not apply if the details of the relevant
information is indicated in other items, etc.
(34) Disclosure regarding overseas real estate holding corporations: In the event that the number of shares orcapital contributions held in an overseas real estate holding corporation (meaning an overseas realestate holding corporation as defined in Article 105, Item 1 (f) of the Regulation for Enforcement of the
Act on Investment Trusts and Investment Corporations; the same shall apply hereinafter) exceeds thenumber or amount obtained by multiplying the total number or total amount of issued shares or capital
contributions (excluding shares or capital contributions of the said overseas real estate holding
corporation held by itself) of the said overseas real estate holding corporation by the rate prescribed in
Article 221 of the Regulation for Enforcement of the Act on Investment Trusts and Investment
Corporations, the following matters shall be indicated for each of the overseas real estate holding
corporations in question.
(a) Amount of investment in the overseas real estate holding corporation(b) Organizational structure, purpose, business activities and profit distribution policy of the said
overseas real estate holding corporation(c) Ratio of the number or amount of shares or capital contributions of the overseas real estate holding
corporation that belong to the assets of the investment corporation to the total number or total amountof issued shares or capital contributions of the overseas real estate holding corporation(d) Details of the regulations pertaining to dividends in the country where the overseas real estateholding corporation is located(35) Disclosures regarding real estate held by overseas real estate holding corporations: In the case specified
in the preceding item, the following matters regarding real estate held by overseas real estate holding
corporations shall be indicated.
(a) Location, lot number and other matters necessary to identify the said real estate(b) For each property, the value as of the end of the current period (appraised value, listed price, roadsideprice, published sales price, or any other price that is deemed to be fair in accordance with the above)(c) If there is a party with which the investment corporation has concluded a lease agreement for theproperty (hereinafter referred to as a “Tenant” in (c)), the occupancy rate and the total number ofTenants as of the end of the current period for each property, and the investment corporation’s total
rental revenues during the business period (if such total rental revenues cannot be indicated due tounavoidable circumstances, a statement to that effect)(d) Total amount of trading transactions during the investment corporation’s business period* Article 14 of the By-laws

2. Items indicated in the notes may be omitted from the asset management report.

Article 27.

Form and Presentation Guidelines

The items to be indicated as prescribed in the preceding article (excluding Items 2, 5 through 8, 11, 14 (ii) and(iii), 26 and 33) pertaining to the asset management reports of real estate investment corporations may be
indicated in accordance with the form and presentation guidelines prescribed by the Self-Regulation
Committee.
* Committee Resolution on Real Estate Investment Trusts, etc. 2

Chapter 8:
Article 28.

Items to Be Indicated in Investment Reports for Infrastructure Investment Trusts
Items to Be Indicated on the Cover Page

The cover page of investment reports for infrastructure investment trusts (hereinafter “infrastructure
investment trusts”) shall indicate the following items.
(1) The label “Investment Report”(2) Name of the infrastructure investment trust(3) Fiscal period and date of settlement (for infrastructure investment trusts with accounting periods of lessthan six months, the respective accounting period and date of settlement)(4) Name and address of the Management Company

Article 29.

Items to Be Indicated in the Main Text and Their OrderThe main text of an infrastructure investment trust’s investment reports shall indicate the mechanism of theinfrastructure investment trust in question (including the investment policy for the relevant investment trust
property), as well as the following information as specified in the respective items below. In principle, theinvestment report shall indicate such information in the following order.
(1) Changes in the investment situation of the investment trust property: Operating revenue, ordinary
income, net income for current period, net assets, total assets, base value (referring to net assets per unit
(referring to one trading unit)), and equity ratio for each of at least five accounting periods prior to thecurrent period shall be indicated.
(2) Progress of asset management during the current period: The basic policy of the infrastructure
investment trust, its results for the current period, and analysis thereof shall be indicated using the statusof acquisition and sale of infrastructure assets, etc., infrastructure-related assets, and real estate, etc.

during the current period (if the accounting period is less than six months, the period shall be the past six
months from the last day of the relevant accounting period; the same shall apply hereinafter in thischapter), as well as changes in leasable area and occupancy rate, etc. The relationship with the future
investment policy indicated in the previous period’s investment report shall also be indicated.
(3) Status of trust principal, etc.: If there is an increase in the trust principal in the current period due to a
public offering, etc., changes in the number of units of beneficial interests, etc. shall be indicated.
(4) Record of dividends, etc.: Dividends, etc. for each calculation period for five or more periods prior tothe current period (if the accounting period is less than six months, the dividends, etc. paid for eachaccounting period during the past six months from the end of the preparation period) shall be presented
separately for dividends from earnings and cash payments for refunds of investment principal. It shallalso indicate the basis for determining the amount of the dividend for the current period and the future
investment policy for retained earnings.
In the event that the investment principal is refunded on an ongoing basis every period as
stipulated in Article 28-2 of the Rules on IIT, etc., notes or similar information shall be provided on thematters stipulated in Item 4 of the same article.
In addition, in the event of refunds of investment principal other than the ongoing refunds ofinvestment principal every period as provided for in Article 28-3 of the Rules on IIT, etc., notes orsimilar information shall be provided on the matters stipulated in the proviso to the same article.
(5) Future investment policy: The investment policy for the next and subsequent periods shall be indicatedin detail, including the relationship with the investment policy indicated in the Basic Terms andConditions, using a summary of capital expenditures, etc. for which implementation has been approved.
In this case, it shall be concisely described while using objective expressions.
(6) Issues to be addressed: Any issues to be addressed by the infrastructure investment trust shall be
indicated briefly.
However, if the same information is presented in the future investment policy as stipulated in theprevious item, such indication may be omitted.
(7) Material facts that have arisen after the settlement of accounts: Facts concerning situations that havearisen in relation to the infrastructure investment trust after the settlement of accounts for the current
period, and material facts concerning its operations, the status of its earnings and the rights of its
beneficiaries, shall be indicated.
(8) Investment trust property management summary: When the trust contract period has ended, theinvestment trust property management summary prescribed in Article 58, Paragraph 1, Item 26 of theOrdinance on Investment Trust’s Financial Statements shall be indicated.
(9) Status of investment contributions: Total number of units of beneficial interests to be issued, total
number of units of beneficial interests already issued, and number of beneficiaries shall be indicated.
(10) Major beneficiaries: The names of the top 10 beneficiaries in order of the ratio of the number of units ofbeneficial interests held to the total number of units of beneficial interests as of the end of the fiscal
period, and the number of units of beneficial interests that each holds. However, if an individual isincluded in the top 10 holders (companies) and the ratio of the number of beneficial interests held by

that individual to the total number of beneficial interests is less than 10%, their name may be replacedwith an indication that they are an individual.
(11) Name of trustee bank as of the end of the current period(12) Composition of investment trust property: The ratio of the amount of each type of asset to the amount of
total assets as of the end of the current period shall be indicated. In this case, the effective proportion of
infrastructure assets incorporated for each asset and the main investment targets of the assets listed in
Article 3, Paragraph 5, Item 3 and Article 3, Paragraph 6, Item 2 of the Rules on IIT, etc. as of the end of
the period shall be noted for each type of asset.
(13) Major assets held: For assets held as of the end of the current period, the proportion to total leasable area
and total rental revenue, etc. accounted for by each individual asset shall be indicated for at least the top
10 individual assets in terms of book value.
(14) Details of incorporated assets: Details of assets incorporated in the REIT as of the end of the current
period shall be indicated separately for each type of asset.
However, in lieu of this indication, a detailed statement of securities (meaning a detailed statementof securities as prescribed in Article 57, Paragraph 1, Item 1 of the Ordinance on Investment Trust’s
Financial Statements) may be attached for securities, a detailed statement of real estate, etc. (meaning adetails of real estate, etc. as prescribed in Article 57, Paragraph 1, Item 5 of the Ordinance on
Investment Trust’s Financial Statements) may be attached for real estate, etc., a detailed statement of
renewable energy power generation facilities (meaning details of renewable energy power generation
facilities, etc. as prescribed in Article 57, Paragraph 1, Item 8 of the Ordinance on Investment Trust’s
Financial Statements) may be attached for renewable energy power generation facilities, etc., anddetails of rights to operate public facilities, etc. (meaning Details of Rights to Operate Public Facilities,
etc., as prescribed in Article 57, Paragraph 1, Item 9 of the Ordinance on Investment Trust’s Financial
Statements) may be attached for Rights to Operate Public Facilities, etc.
When indicating renewable energy power generation facilities, in addition to the table set forth in
the detailed statement of incorporated assets in Attached Table 6 (14) of the Committee Resolution on
Infrastructure Investment Trusts, etc., matters concerning the approved business operator or supplier(nature of business, financial status, profit status, status of personnel engaged in operation of therenewable energy power generation facility, performance of operation of the renewable energy power
generation facility and other important matters concerning the approved business operator’s or
supplier’s ability to perform its business) shall be indicated. If a lease contract with respect to therenewable energy power generation facility has been entered into with a counterparty, rental income
during the accounting period of the investment trust property, expiration date of the contract, method ofcontract renewal, deposit and other matters to be specified with respect to the lease contract, price foreach renewable energy power generation facility as of the end of the current period shall be indicated. If
the renewable energy power generation facility falls under the category of certified power generation
facility, matters concerning compliance with the standards set forth in each item of Article 9, Paragraph
3 of the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy
Sources shall be indicated.

In addition, when indicating operating rights for public facilities, etc., the status of public facilities,
etc. to which the said operating rights pertain (details of the service agreement for the operation of the
public facilities etc. (counterparty to the agreement, term of the agreement, annual service fee and othermatters to be specially noted regarding the said agreement), actual annual operating revenue, current
status of the public facilities etc. and other matters that have a significant impact on the price of theoperating rights for said public facilities, etc.), matters concerning the counterparty to the service
agreement for the operation of public facilities, etc. (nature of its business, financial status, status of
earnings, status of personnel engaged in the operation, etc. of the public facilities, etc., actual
performance of the operation, etc. of the public facilities, etc., and other important matters concerning
the ability of the counterparty to the agreement to execute the business), and the price for each operatingright for public facilities, etc. as of the end of the period shall be indicated in addition to the table set
forth in the details of incorporated assets in Attached Table 6 (14) of the Committee Resolution on
Infrastructure Investment Trusts.
(15) Status of other assets: Assets other than infrastructure assets, etc., infrastructure-related assets, etc., andreal estate, etc. as of the end of the current period shall be classified into the types of assets specified in
the By-laws and indicated separately.
However, this may be omitted for assets for which special treatment related to hedge accounting isapplied (i.e., those used as hedging instruments).
(16) Held assets by country/region: In the case of investments in overseas infrastructure assets, etc. in
multiple countries/regions, the held assets as of the end of the current period shall be indicated for eachcountry/region.
(17) Scheduled capital expenditures: Implementation plans for capital expenditures that have been finalizedprior to the Date of Production shall be indicated for each such plan.
(18) Capital expenditures during the period: If the implementation plans for capital expenditures have been
completed by the end of the current period, each such plan shall be indicated. When capital
expenditures are made due to natural disasters, etc., the relevant capital expenditures shall be indicatedseparately.
(19) Money set aside for long-term repair plans: The amount set aside at the end of the period based onlong-term repair plans shall be indicated as the balance of the reserve from the end of the previous
period at the end of each period, the amount set aside and the amount reversed for each accounting
period, and the amount carried forward to the next period at the end of each period, for five or moreaccounting periods prior to the current period (if the accounting period is less than six months, it shallbe the accounting periods within the past five years or more from the end of the preparation period).
In the event that the investment principal is refunded on an ongoing basis every period as
stipulated in Article 28-2 of the Rules on IIT, etc., notes or similar information shall be provided on thematters stipulated in Item 5 of the same article.
(20) Details of expenses related to management, etc.: The amount of total expenses and trust fees paid frominvestment trust property during the current period shall be indicated, broken down by Management
Company, trustee bank, offering agent, and total amount, as well as the details of the services for whichthey are paid.
(21) Status of borrowing: If there is a balance of funds borrowed during the current period, the lender, thedate of borrowing, the balance at the end of the previous period, the balance at the end of the current
period, the average interest rate, the repayment due date, the repayment method and the use of funds
shall be indicated separately for each borrowing.
(22) Status of trading of infrastructure assets, etc., infrastructure-related assets, etc., and real estate, etc.: The
status of trading and profits/losses relating to infrastructure assets, etc., infrastructure-related assets, etc.,
and real estate, etc. during the period shall be indicated separately for each asset.
(23) Status of trading of other assets: The status of trading of other assets and profits/losses during the period
shall be indicated separately for each asset.
(24) Investigation of the price of specified assets, etc.: The matters stipulated in Article 58, Paragraph 1,
Item 20 of the Ordinance on Investment Trust’s Financial Statements shall be indicated.
(25) Status of transactions with interested parties, etc. and major shareholders: The status of transactions
with interested parties, etc. and major shareholders (meaning major shareholders as defined in Article
29-4, Paragraph 2 of the FIEA) during the current period and the total amount of commissions paid
thereto shall be indicated.
In this case, interested parties, etc. shall be those to whom any of the following criteria (a) to (c) apply.
(a) An interested party, etc. as defined in Article 17 of the Cabinet Order(b) Corporations, associations, trusts and other similar entities (hereinafter referred to as “Corporations,etc.” in this item and Article 34, Item 27) that have entered into a discretionary investment
advisory contract for infrastructure assets, etc. (meaning a discretionary investment contract as
defined in Article 2, Paragraph 5 of the Real Estate Investment Advisory Business Registration
Regulations (Ministry of Construction Notification No. 1828 of 2000) or Article 2, Paragraph 8,
Item 12 (b) of the FIEA; the same shall apply in this item and Article 34, Item 27) with aninterested party, etc. or major shareholder of the Management Company.
(c) Corporations, etc. in which interested parties, etc. and major shareholders of the Management
Company hold a majority stake or constitute a majority of the officers, etc.
(26) Status of transactions, etc., with the Management Company in relation to secondary businesses
operated by the Management Company: In cases where a Management Company is engaged in a TypeI Financial Instruments Business, Type II Financial Instruments Business, Real Estate Brokerage(meaning a Real Estate Brokerage as defined in Article 2, Item 2 of the Real Estate Brokerage Act (ActNo. 176 of 1952); the same applies hereinafter), Specified Joint Real Estate Venture (meaning aSpecified Joint Real Estate Venture as defined in Article 2, Paragraph 4 of the Act on Specified Joint
Real Estate Ventures (Act No. 77 of 1994); the same applies hereinafter), or Commodity Transactions
Brokerage Business, the status of transactions with said Management Company, which is a Type I
Financial Instruments Business, Type II Financial Instruments Business, Real Estate Brokerage,
Specified Joint Real Estate Venture, or Commodity Transactions Brokerage Business involved in thesecondary business in question, shall be indicated alongside the total amount of trading commissions
paid to said Management Company or the total amount of commissions.

(27) Status of assets, liabilities, principal, and profits and losses: The status of assets, liabilities, principal,
and profits and losses as of the end of the current period (if the accounting period is less than six months,
the end of each accounting period in the preparation period; the same shall apply hereinafter in thischapter) shall be indicated. Alternatively, a balance sheet, profit and loss statement, and statement ofcash distribution may be attached instead.
(28) Change in the method of calculating depreciation: When there is a change in the method of calculating
the amount of depreciation of equipment, etc., during the current period, the date of the change incalculation method, the calculation method before the change, the amount calculated using the
calculation method before the change, the calculation method after the change, the amount calculatedusing the calculation method after the change, and the reason for the change shall be indicated.
(29) Change in valuation method of infrastructure assets, etc. and real estate, etc.: If the valuation method of
infrastructure assets, assets specified in Article 3, Paragraph 5, Item 2 of the Rules on IIT, etc.
(hereinafter referred to as “Land and Buildings, etc. associated with Infrastructure Assets”), real estate,or leaseholds or superficies rights of real estate is changed during the current period, the date of changeof the valuation method, the valuation method before change, the appraised value appraised by themethod before change, the valuation method after change, the appraised value appraised by the method
after change and the reason for change shall be indicated.
(30) Disclosures related to beneficiary certificates of investment trusts, etc. created by the company: In thecase of acquisitions, etc. listed in Article 6-3 of the Rules for Full Members’ Business Operations, etc.
as stipulated in Article 6-5 of the same Rules, the matters to be stated in the investment report, etc. shallbe as follows.
(a) Possession of beneficiary certificates for investment trusts, etc. created by the company as of the endof the current period.
(b) History of acquisitions and dispositions for each of the past five accounting periods, including theend of the current period(c) Number of units held, total amount, and ratio to total number of units issued at the end of eachaccounting period for the past five years, including the end of the current period.
(d) Other matters necessary from the viewpoint of protection of investors, etc. (limited to cases whereacquisition or disposal has been made in the past five years, including the end of the current period)(31) Announcements: In the event that changes are made to the Basic Terms and Conditions, changes are
made to the management system, etc., or events occur that the Management Company deems
appropriate to make known to beneficiaries during the current period, the details of such events, etc.
shall be indicated. However, this does not apply if the details of the relevant event, etc. are indicated inother items, etc.
* Article 15 of the By-laws

Article 30.

Disclosure Relating to Mother Funds

The provisions of Article 4 shall apply mutatis mutandis to cases where beneficiary certificates of a motherfund are incorporated in investment trust property.

Article 31.

Form and Presentation Guidelines

The items to be indicated as prescribed in Article 29 (excluding Items 2, 5 through 11, 14 (i) and (ii), 24 and 31)
pertaining to the investment reports of infrastructure investment trusts may be indicated in accordance with theform and presentation guidelines prescribed by the Self-Regulation Committee.
* Committee Resolution on Infrastructure Investment Trusts, etc. 1

Article 32.

Production and Delivery of Documents Prescribed in Article 14, Paragraph 4 of theInvestment Trust Act
In accordance with the provisions of Article 14, Paragraph 4 of the Investment Trust Act, the Management
Company must prepare a document stating the matters to be stated in the investment report in Paragraph 1 ofthe same Article which are specified by Cabinet Office Ordinance as important matters and deliver it to known
beneficiaries each time it is produced.
In this case, the said document shall be prepared and delivered in accordance with the provisions of Article
58-2 of the Rules for Investment Trust Property Financial Statements, with reference to Chapter 3’s provisions
regarding Investment Reports (Delivery Version).

Chapter 9:

Items to Be Indicated in Asset Management Reports for Infrastructure Investment

Corporations
Article 33.

Items to Be Indicated on the Cover Page

The cover page of asset management reports for infrastructure investment corporations shall indicate thefollowing items.
(1) The label “Asset Management Report”(2) Name of the infrastructure investment corporation(3) Fiscal period and date of settlement(4) Location of the head office of the infrastructure investment corporation

Article 34.

Items to Be Indicated in the Main Text and Their Order

1. The main text of an asset management report for an infrastructure investment corporation shall indicate theinformation as specified in the respective items below. In principle, the asset management report shallindicate such information in the following order.
(1) Changes in the investment situation, etc. of the investment corporation: Operating revenue, ordinary
income, net income for current period, net assets, total assets, base value (referring to net assets per unit
(referring to one trading unit)), and equity ratio for each of at least five business periods prior to thecurrent period shall be indicated.
(2) Progress of asset management during the current period: The Basic Management Policy of theinfrastructure investment corporation, its results for the current period, and analysis thereof shall be
indicated using the status of acquisition and sale of infrastructure assets, etc., infrastructure-related

assets, and real estate, etc. during the current period, as well as changes in leasable area and occupancyrate, etc. The relationship with the future asset investment policy indicated in the previous period’s
investment report shall also be indicated.
(3) Increases in capital, etc.: If there is an increase in capital investment as a result of a public offering, etc.
during the current period, the change in investment units, etc. shall be indicated.
(4) Record of dividends, etc.: Dividends, etc. for each business period for five or more periods prior to thecurrent fiscal period shall be presented separately for dividends from earnings and cash payments forrefunds of investment contributions. It shall also indicate the basis for determining the amount of thedividend for the current period and the future investment policy for retained earnings.
In the event that investment contributions are refunded on an ongoing basis every period as
stipulated in Article 43-2 of the Rules on IIT, etc., notes or similar information shall be provided on thematters stipulated in Item 4 of the same article.
In addition, in the event of refunds of investment contributions other than the ongoing refunds ofinvestment contributions every period as provided for in Article 43-3 of the Rules on IIT, etc., notes orsimilar information shall be provided on the matters stipulated in the proviso to the same article.
(5) Future investment policy: The investment policy for the next and subsequent periods shall be indicatedin detail, including the relationship with the investment policy indicated in the investment corporation’s
Certificate of Incorporation, using a summary of capital expenditures, etc. for which implementation
has been approved. In this case, it shall be concisely described using objective expressions.
(6) Issues to be addressed: Any issues to be addressed by the infrastructure investment corporation shall be
indicated briefly. However, if the same information is presented in the future investment policy as
stipulated in the previous item, such indication may be omitted.
(7) Material facts that have arisen after the settlement of accounts: Facts that have arisen in relation to theinfrastructure investment corporation after the settlement of accounts for the current period, andmaterial facts concerning its operations, the status of its earnings and the rights of its investors, shall be
indicated.
(8) Status of investment contributions: The total number of investment units that can be issued, the total
number of investment units already issued, and the number of investors shall be indicated.
(9) Matters regarding investment units: The names of the top 10 investors in descending order of the
proportion of investment units each holds out of the total number of investment units issued (excluding
own investment units) as of the end of the current period, the number of investment units held by thesaid investors, and relevant proportion held by each.
(10) Matters regarding officers, etc.: The names, positions and responsibilities, status of concurrently held
positions, and other important matters of officers, etc. (including those who were in their position
during the relevant business period and retired by the end of the relevant business period) shall be
indicated.
(11) Asset management companies, asset custodian companies and general administration companies: The
names of the asset management companies (meaning the asset management company as defined in
Article 2, Paragraph 19 of the Investment Trust Act; the same shall apply hereinafter), asset custodian

companies and general administration companies as of the end of the current period shall be indicated.
(12) Composition of infrastructure investment corporation assets: The ratio of the amount of each type of
asset to the total assets as of the end of the current period shall be indicated. In this case, the effective
proportion of infrastructure assets incorporated for each asset and the main investment targets of theassets listed in Article 3, Paragraph 5, Item 3 and Paragraph 6, Item 2 of the Rules on IIT, etc. as of theend of the period shall be noted for each type of asset.
(13) Major assets held: For assets held as of the end of the current period, the proportion of total leasable area
and total rental revenue, etc. accounted for by each individual asset shall be indicated for at least the top
10 individual assets in terms of book value as of the end of the current period.
(14) Details of incorporated assets: Details of assets incorporated in the REIT as of the end of the current
period shall be indicated separately for each type of asset.
However, in lieu of this indication, a detailed statement of securities (meaning a detailed statementof securities as prescribed in Article 80, Paragraph 1, Item 1 of the Ordinance on Investment
Corporation’s Financial Statements) may be attached for securities, a detailed statement of real estate,etc. (meaning a details of real estate, etc. as prescribed in Article 80, Paragraph 1, Item 5 of theOrdinance on Investment Corporation’s Financial Statements) may be attached for real estate, etc., adetailed statement of renewable energy power generation facilities (meaning a details of renewableenergy power generation facilities, etc., as prescribed in Article 80, Paragraph 1, Item 8 of theOrdinance on Investment Corporation’s Financial Statements) may be attached for renewable energy
power generation facilities, etc., and details of rights to operate public facilities, etc. (meaning Detailsof Rights to Operate Public Facilities, etc. as prescribed in Article 80, Paragraph 1, Item 9 of theOrdinance on Investment Corporation’s Financial Statements may be attached for Rights to Operate
Public Facilities, etc.
When indicating renewable energy power generation facilities, in addition to the table set forth in
the detailed statement of incorporated assets in Attached Table 6 (14) of the Committee Resolution on
Infrastructure Investment Trusts, etc., matters concerning the approved business operator or supplier(nature of business, financial status, profit status, status of personnel engaged in operation of therenewable energy power generation facility, performance of operation of the renewable energy power
generation facility and other important matters concerning the approved business operator’s or
supplier’s ability to perform its business) shall be indicated. If a lease contract with respect to therenewable energy power generation facility has been entered into with a counterparty, rental income
during the business period of the investment corporation assets, expiration date of the contract, methodof contract renewal, deposit and other matters to be specified with respect to the lease contract, price foreach renewable energy power generation facility as of the end of the current period shall be indicated. If
the renewable energy power generation facility falls under the category of certified power generation
facility, matters concerning compliance with the standards set forth in each item of Article 9, Paragraph
3 of the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy
Sources shall be indicated.
In addition, when indicating operating rights for public facilities, etc., the status of public facilities,

etc. to which the said operating rights pertain (details of the service agreement for the operation of the
public facilities etc. (counterparty to the agreement, term of the agreement, annual service fee and othermatters to be specially noted regarding the said agreement), actual annual operating revenue, current
status of the public facilities etc. and other matters that have a significant impact on the price of theoperating rights for said public facilities, etc.), matters concerning the counterparty to the service
agreement for the operation of public facilities, etc. (nature of its business, financial status, status of
earnings, status of personnel engaged in the operation, etc. of the public facilities, etc., actual
performance of the operation, etc. of the public facilities, etc., and other important matters concerning
the ability of the counterparty to the agreement to execute the business), and the price for each operatingright for public facilities, etc. as of the end of the period shall be indicated in addition to the table set
forth in the details of incorporated assets in Attached Table 6 (14) of the Committee Resolution on
Infrastructure Investment Trusts.
(15) Status of other assets: Assets other than infrastructure assets, etc., infrastructure-related assets, etc., andreal estate, etc. as of the end of the current period shall be classified into the types of assets specified in
the By-laws and indicated separately.
However, this may be omitted for assets for which special treatment related to hedge accounting isapplied (i.e., those used as hedging instruments).
(16) Held assets by country/region: In the case of investments in overseas infrastructure assets, etc. in
multiple countries/regions, the held assets as of the end of the current period shall be indicated for eachcountry/region.
(17) Scheduled capital expenditures: Implementation plans for capital expenditures that have been finalizedprior to the Date of Production of the relevant asset management report shall be indicated for each suchplan.
(18) Capital expenditures during the period: If the implementation plans for capital expenditures have been
completed by the end of the current period, each such plan shall be indicated. When capital
expenditures are made due to natural disasters, etc., the relevant capital expenditures shall be indicatedseparately.
(19) Money set aside for long-term repair plans: The amount set aside at the end of the period based onlong-term repair plans shall be indicated as the balance of the reserve for the start of the current period
at the end of each period, the amount set aside and the amount reversed for each business period, and theamount carried forward to the next period at the end of each period, for five or more business periods
prior to the current period (if the business period is less than six months, it shall be the business periods
within the past five years from the end of the preparation period).
In the event that investment contributions are refunded on an ongoing basis every period as
stipulated in Article 43-2 of the Rules on IIT, etc., notes or similar information shall be provided on thematters stipulated in Item 5 of the same article.
(20) Details of expenses related to management, etc.: The total amount of expenses paid by the infrastructure
investment corporation during the current period and expenses paid to outside contractors, etc. that haveconcluded agreements with the said infrastructure investment corporation shall be indicated separately

by party to which payment is made.
(21) Status of borrowing: If there is a balance of funds borrowed during the current period, the lender, thedate of borrowing, the balance at the beginning of the current period, the balance at the end of thecurrent period, the average interest rate, the repayment due date, the repayment method, the use purposeof the funds, whether or not collateral is provided, collateral properties, and other special provisions
shall be indicated separately for each borrowing.
(22) Investment corporation bonds: If there are investment corporation bonds outstanding at the end of thecurrent period, the name of the issue, date of issue, balance at the beginning of the current period,balance at the end of the current period, interest rate, redemption period, redemption method andpurpose of use, etc. shall be indicated separately for each issue.
(23) Short-term investment corporation bonds: If there are any short-term investment corporation bonds
outstanding at the end of the fiscal period, the issue name, issue date, balance at the end of the fiscal
period, issue value, redemption value, etc. shall be indicated separately for each issue.
(23-2) Investment equity subscription rights: If there is an outstanding balance of investment equity
subscription rights at the end of the current period, the issue name, issue date, balance at the end of thecurrent period, issue value, redemption value, etc. shall be indicated separately for each issue.
(24) Status of trading of infrastructure assets, etc., infrastructure-related assets, etc., and real estate, etc.: The
status of trading and profits/losses relating to infrastructure assets, etc., infrastructure-related assets, etc.,
and real estate, etc. during the current period shall be indicated separately for each asset.
(25) Status of trading of other assets: The status of trading of other assets and profits/losses during thecurrent period shall be indicated separately for each asset.
(26) Investigation of the price of specified assets, etc.: The matters stipulated in Article 73, Paragraph 1,
Item 19 of the Ordinance on Investment Corporation’s Financial Statements shall be indicated.
(27) Status of transactions with interested parties, etc.: The status of transactions with interested parties, etc.
during the current period and the total amount of commissions paid thereto shall be indicated.
In this case, interested parties, etc. shall be those to whom any of the following criteria (a) to (c) apply.
(a) An interested party, etc. as defined in Article 123 of the Cabinet Order(b) A Corporation, etc. that has entered into a discretionary investment advisory agreement for
infrastructure assets, etc. with an interested party, etc. of the asset management company(c) A Corporation, etc. in which interested parties, etc. of the asset management company hold amajority stake or constitute a majority of the officers, etc.
(28) Status of transactions, etc., with asset management companies in relation to secondary businesses
operated by the asset management companies in question: In cases where an asset managementcompany is engaged in a Type I Financial Instruments Business, Type II Financial Instruments
Business, Real Estate Brokerage, or Specified Joint Real Estate Venture, the status of transactions
during the current period with said asset management company, which is a Type I Financial Instruments
Business, Type II Financial Instruments Business, Real Estate Brokerage, or Specified Joint Real Estate
Venture involved in the secondary business in question, shall be indicated alongside the total amount oftrading commissions paid to said asset management company or the total amount of commissions.

(29) Status of assets, liabilities, principal, and profits and losses: The status of assets, liabilities, principal,
and profits and losses as of the end of the current period shall be indicated. Alternatively, a balance
sheet, profit and loss statement, statement of changes in investors’ equity, notes, and statement of cash
distribution may be attached instead.
(30) Change in the method of calculating depreciation: When there is a change in the method of calculating
the amount of depreciation of equipment, etc., at the end of or during the current period, the date of thechange in calculation method, the calculation method before the change, the amount calculated using
the calculation method before the change, the calculation method after the change, the amountcalculated using the calculation method after the change, and the reason for the change shall be
indicated.
(31) Change in valuation method of infrastructure assets, etc. and real estate, etc.: If the valuation method of
infrastructure assets, assets specified as Land and Buildings, etc. associated with Infrastructure Assets,
real estate, leaseholds or superficies rights of real estate is changed at the end of or during the current
period, the date of change of the valuation method, the valuation method before change, the appraisedvalue appraised by the method before change, the valuation method after change, the appraised value
appraised by the method after change, the reason for change, and any other special provisions shall be
indicated.
(32) Disclosures related to beneficiary certificates of investment trusts, etc. created by the company: In thecase of acquisitions, etc. listed in Article 6-3 of the Rules for Full Members’ Business Operations, etc.
as stipulated in Article 6-5 of the same Rules, the matters to be stated in the investment report, etc. shallbe as follows.
(a) Possession of beneficiary certificates for investment trusts, etc. created by the company as of the endof the current period.
(b) History of acquisitions and dispositions for each of the past five accounting periods, including theend of the current period(c) Number of units held, total amount, and ratio to total number of units issued at the end of eachaccounting period for the past five years, including the end of the current period.
(d) Other matters necessary from the viewpoint of protection of investors, etc. (limited to cases whereacquisition or disposal has been made in the past five years, including the end of the current period)(33) Announcements: If any matter prescribed in Article 109, Paragraph 2, Items 2, 3, 5, 6 and 8 of theInvestment Trust Act is approved by the Board of Directors of the relevant Infrastructure Investment
Corporation or if any other information is found to be important during the current period, the details ofsuch information shall be indicated. However, this shall not apply if the details of the relevant
information is indicated in other items, etc.
* Article 16 of the By-laws

2. Items indicated in the notes may be omitted from the asset management report.

Article 35.

Form and Presentation Guidelines

The items to be indicated as prescribed in the preceding article (excluding Items 2, 5 through 8, 11, 14 (i) and(ii), 26 and 33) pertaining to the asset management reports of infrastructure investment corporations may be
indicated in accordance with the form and presentation guidelines prescribed by the Self-Regulation
Committee.
* Committee Resolution on Infrastructure Investment Trusts 2

Article 36.

Disclosures for Investment Corporations other than Real Estate Investment Corporations andInfrastructure Investment Corporations
With respect to asset management reports of investment corporations other than real estate investment
corporations and infrastructure investment corporations, in principle, the provisions of the Ordinance on
Investment Corporation’s Financial Statements shall apply, and in this case, the disclosure of real estate, etc.
and asset-backed securities, etc., infrastructure assets, etc. and infrastructure-related assets, etc. shall be
disclosed with reference to the provisions of Articles 26 and 34.

Chapter 10:

Miscellaneous Provisions

Article 37.

Disclosure of Batch Orders

1. A Management Company shall disclose in advance on its website its basic approach to placing batch orders,target securities, etc. (as defined in Article 8-2 of the Management Rules), target transactions, method of
allocating execution results, basic policy for best execution, internal management system, and other mattersfor reference (hereinafter referred to as “Matters for Disclosure.”)It should be noted that the Matters for Disclosure are included in 1. Status of Business (19) (i) “Status ofInternal Control over Investment Management Business” in the Business Report stipulated in Article 182,
Paragraph 1 of the Cabinet Office Ordinance on Financial Instruments Business, etc. (Cabinet Office
Ordinance No. 52 of 2007, the “Ordinance on Financial Instruments Business”).
2. In cases where batch orders are placed that include foreign investment assets (meaning foreign investment
assets as specified in Article 171, Paragraph 1, Item 1 of the Ordinance on Financial Instruments Business;the same shall apply hereinafter) or investment assets other than investment trust property (meaning
investment assets specified in Article 35, Paragraph 1, Item 15 of the FIEA; the same shall apply hereinafter),the fact that batch orders including foreign investment assets or said investment assets (to be listed byindustry sector of the investment management business) shall be disclosed in addition to the Matters forDisclosure listed in the preceding paragraph.

Article 38.

Disclosure of Risk Management Methods for Investment Restrictions on Derivative

Transactions
A Management Company shall disclose on its website a summary of the risk management method forderivative transactions that it has formulated based on the “Guidelines on Investment Restrictions on
Derivative Transactions.”

Article 39.

By-laws

Necessary matters for the enforcement of these Rules shall be stipulated in the By-laws.

Article 40.

OthersAny matters not provided for in these Rules with respect to investment reports, etc. for investment trusts andinvestment corporations may be determined by a resolution of the Board of Directors.

Article 41.

Delegation to Competent Committee

1. The Board of Directors shall be entitled to delegate to the Self-Regulation Committee the authority to amend
any By-laws relating to these Rules.
2. The Self-Regulation Committee shall promptly report to the Board of Directors, the contents of any
decisions made by the Self-Regulation Committee with respect to any matters delegated thereto (limited todecisions deemed necessary by the Board of Directors. ).

Supplementary Provision
These Rules shall come into effect on April 1, 2004.

Supplementary ProvisionThis amendment shall come into effect on May 25, 2004.

Supplementary ProvisionThis amendment shall come into effect on March 18, 2005.

Supplementary Provision
These amendments shall be effective as of May 1, 2006, and shall apply to investment reports for investment
trusts and asset management reports for investment corporations with settlement of accounts on and after May
1, 2006.

Supplementary ProvisionThis amendment shall come into effect on May 24, 2006.

Supplementary ProvisionThis amendment shall come into effect on June 19, 2006.
However, the amendments to the proviso of Article 22, Item 10 and the proviso of Article 26, Paragraph 1, Item
9 shall be implemented from July 1, 2006, and shall apply to investment reports for investment trusts and asset
management reports for investment corporations with settlement of accounts on and after that date.

Supplementary Provision
These amendments shall be effective as of December 1, 2006, and shall apply to investment reports forinvestment trusts and asset management reports for investment corporations with settlement of accounts on andafter that date.

Supplementary ProvisionThis amendment shall come into effect on February 16, 2007.

Supplementary ProvisionThis amendment shall come into effect on September 30, 2007.
However, the revised provisions (excluding Article 26, Paragraph 1, Item 22 and Article 27-2) shall be applied
from the first accounting period that starts after the effective date.

Supplementary Provision
These amendments shall be effective as of June 20, 2008 and shall apply to investment reports for real estate
investment trusts and asset management reports for real estate investment corporations with settlement ofaccounts on and after that date.

Supplementary ProvisionThis amendment shall come into effect on July 18, 2008.

Supplementary ProvisionThis amendment shall come into effect on October 1, 2008.
However, Article 22, Paragraph 1, Item 30 and Article 26, Paragraph 1, Item 32 shall apply to investment
reports for investment trusts and asset management reports for investment corporations with settlement ofaccounts on and after that date.

Supplementary ProvisionThis amendment shall come into effect on January 16, 2009.

Supplementary ProvisionThis amendment shall come into effect on March 19, 2009.

Supplementary ProvisionThis amendment shall come into effect on September 16, 2009.

Supplementary ProvisionThis amendment shall come into effect on February 17, 2011.

Supplementary Provision
These amendments shall be effective as of September 15, 2011, and shall apply to business periods beginningon and after April 1, 2011; with respect to business periods beginning before that date, the provisions then inforce shall remain applicable.

Supplementary Provisions
1. These amendments shall be effective as of June 1, 2012, and shall apply to investment reports for investment
trusts with settlement of accounts on and after that date.
2. Notwithstanding the foregoing Paragraph 1., this shall not preclude Full Members from operating under theamended provisions up to the effective date.

Supplementary Provision
These amendments shall be effective as of May 24, 2012.

Supplementary ProvisionThis amendment shall come into effect on December 20, 2012.
* The amended provisions are as follows:
Article 22, Article 26

Supplementary ProvisionThis amendment shall come into effect on January 4, 2013.
* The amended provisions are as follows:
Article 2, Article 3, Article 22, Article 26, Article 30

Supplementary Provisions
1. These amendments shall take effect on December 1, 2014, and apply to investment trust Investment Report(Full Version) and Investment Reports (Delivery Version) with preparation dates (as stipulated in Article 14,
Paragraph 1 of the New Investment Trust Act) falling on and after the effective date, and the provisions thenin force for investment reports with preparation dates (as stipulated in Article 14, Paragraph 1 of the Old
Investment Trust Act) falling prior to the effective date shall remain applicable.
2. Article 38 (Review) of the Supplementary Provisions of the Investment Trust Act states that “the government
shall review the provisions of each law after its revision (hereinafter in this article referred to as “eachrevised law”) in principle 5 years from the effective date, and take measures as deemed necessary based on
the results thereof in consideration of the state of enforcement of each revised law.” Corresponding measures
shall be taken in light of this provision.
* The amended provisions are as follows:(1)

Amended Article 1; Article 2, Paragraph 1 introductory clause, Items 1, 4 and 6; Article 3, Paragraph 1 introductoryclause, Items 4, 21, and 4.

(2)

Added Articles 3-2 and 3-3.

(3)Amended Articles 4 and 5.

(4)

Amended Article 8, Paragraph 1 and added Paragraph 2 of Article 8.

(5)

Amended Article 9.

(6)

Added Article 9-2.

(7)

Amended Article 10, Paragraph 1 and Paragraph 2, Item 1 and Item 2.

(8)Added Article 10-2 and Article 12, Paragraph 1, Item 8.

Supplementary ProvisionThis amendment shall come into effect on December 1, 2014.
* The amended provisions are as follows:
Added Article 19-2 and Article 27-3.

Supplementary ProvisionThis amendment shall come into effect on December 1, 2014.
However, Article 22 and Article 24-2 shall apply to investment trust Investment Reports (Full Version) andInvestment Reports (Delivery Version) with preparation dates (as stipulated in Article 14, Paragraph 1 of the
New Investment Trust Act) falling on and after the effective date, and the provisions then in force forinvestment reports with preparation dates (as stipulated in Article 14, Paragraph 1 of the Old Investment Trust
Act) falling prior to the effective date shall remain applicable.
* The amended provisions are as follows:(1)

Amended Article 22 introductory clause, Items 20 and 25.

(2)

Added Article 24-2; Article 26, Paragraph 1, Item 23-2; Article 26, Paragraph 1, Items 34 and 35.

Supplementary Provisions
This amendment shall come into effect on March 1, 2015.
* The amended provisions are as follows:
Amended Article 27-2, Paragraph 1.

Supplementary Provisions
1. These amendments shall be effective as of the date of enforcement of the amended Ordinance on Investment
Corporation’s Financial Statements (April 1, 2015).
2. With respect to the asset management report for business periods of investment corporations beginning prior
to the effective date of these amended regulations, the provisions then in force shall remain applicable.
* The amended provisions are as follows:
Amended Article 26, Paragraph 1, Items 4 and 19.

Supplementary Provisions
This amendment shall come into effect on July 16, 2015.
* The amended provisions are as follows:(1)Amended Article 3, Paragraph 1, Item 19 and added Item 22 of the same.

(2)

Amended Article 3-3, Paragraph 1, Item 6; Article 6, Paragraph 3, Item 3; Article 20; Article 22, Items 8, 14, 15, 22
and 29; Article 24; Article 26, Paragraph 1, Items 14, 15, 24 and 31; and Article 27.

(3)

Added Chapter 8 (Article 28 to Article 32) and Chapter 9 (Article 33 to Article 36).

(4)

Moved former Chapter 8 to Chapter 10, and former Articles 27-2 through 30 to Articles 37 through 41.

Supplementary Provisions
This amendment shall come into effect on May 18, 2017.
* The amended provisions are as follows:(1)

Deleted Article 13, Paragraph 1, Item 1 and Article 16, Paragraph 1, Item 3. Numbering reorganized accordingly.

(2)

Amended Article 22, Paragraph 14; Article 26, Paragraph 1, Item 14; Article 29, Paragraph 14; and Article 34,
Paragraph 1, Item 14.

Supplementary Provisions
These amendments shall be effective as of September 30, 2019, shall apply to investment trust Investment
Report (Full Version) and Investment Reports (Delivery Version) with preparation dates (as stipulated in
Article 14, Paragraph 1 of the Investment Trust Act) falling on and after the effective date. However, this shallnot preclude the application of the amended provisions prior to the effective date.
* The amended provisions are as follows:(1)

Added Article 3, Paragraph 1, Item 5. Numbering reorganized accordingly.

(2)

Added Article 3-3, Paragraph 1, Item 1 (iv). Rearranged numbering for the previous (iv) to (ix).

Supplementary Provisions
This amendment shall come into effect on May 1, 2019.
* Necessary arrangement in connection with the change of era name

By-laws for Rules on Investment Reports Pertaining to Investment Trusts andInvestment Corporations
Established on March 19, 2004
Revised on December 10, 2004
Revised on May 19, 2005
Revised on May 11, 2006
Revised on June 8, 2006
Revised on January 19, 2007
Revised on September 21, 2007
Revised on March 21, 2008
Revised on January 16, 2009
Revised on March 19, 2009
Revised on September 16, 2009
Revised on October 14, 2010
Revised on March 15, 2012
Revised on December 20, 2012
Revised on June 12, 2014
Revised on November 20, 2014
Revised on July 16, 2015
Revised on May 18, 2017
Revised on September 12, 2019

Article 1.

Purpose

These By-laws provide for matters necessary to the enforcement of rules on investment reports for investment
trusts and investment corporations (hereinafter referred to as the “Rules”).

Article 2.

Status of Purchase and Sale of Incorporated Assets

The types of assets to be classified as set forth in the By-laws prescribed in Article 3, Paragraph 1, Item 6 of theRules shall be the following assets, and where such assets are to be indicated, they shall be indicated by type as
set forth in the respective items.
(1) Shares: Listed and registered shares and unlisted and unregistered shares(2) Stock options certificates (including warrants securities, the same shall apply hereinafter)(3) Option certificates, etc.
(4) Corporate bonds with stock options (convertible bonds)(5) Public and corporate bonds: national government bonds, municipal bonds, special bonds and corporate
bonds (including investment corporation bonds)(6) Investment trust beneficiary certificates and investment securities(7) Investment equity subscription right certificates(8) Other Securities: Commercial papers, loan trust beneficiary rights, overseas negotiable certificates ofdeposits, and foreign loan trust beneficiary securities(9) Monetary claims(10) Promissory notes(11) Instruments (meaning those provided in Article 3, Item 9 of the Order for Enforcement of the Act on
Investment Trusts and Investment Corporations (Cabinet Order No. 480 of 2000 (hereinafter referred toas “Cabinet Order” ), and the same shall apply hereinafter) )–1–

(12) Futures transactions: Stock futures, bond futures and other futures transactions(13) Option transactions: Stock index, individual stocks, bonds, interest rates, currency and other option
transactions(14) Swap and forward transactions: Interest rates, currency, forward rate, forward currency and other swaps
and forwards(15) Mother fund beneficiary certificates: Each mother fund thereof

Article 3.

Transaction Status of Derivatives

Derivatives to be classified as stipulated in the By-laws prescribed in Article 3, Paragraph 1, Item 7 of the Rules
shall be the following types, and where such types are to be indicated, they shall be indicated by type as set
forth in the respective items.
(1) Futures transactions: Divided into shares, bonds and instruments, etc. for each issue(2) Option transactions: Divided into shares, bonds and instruments, etc. and by call and put for each issue

Article 4.

Major Issues Traded

The types of assets to be classified as stipulated in the By-laws as prescribed in Article 3, Paragraph 1, Item 9 of
the Rules shall be as follows:(1) Shares(2) Stock options certificates(3) Option certificates, etc.
(4) Corporate bonds with stock options (convertible bonds)(5) Public and corporate bonds

Article 5.

Status of Transactions with Interested Parties

Other matters provided in the By-laws as prescribed in Article 3, Paragraph 1, Item 10 of the Rules shall be as
follows:(1) Transaction of securities issued by interested parties and amount held at the end of period(2) Acquisition of securities for which financial instruments business operators (meaning type-I financial
instruments business operators ( meaning entities engaged in type-I financial instruments business as
defined in Article 28, Paragraph 1 of the Financial Instruments and Exchange Act (Act No. 25 of 1948;
hereinafter referred to as “FIEA” )) and entities similar to such that are corporations established underand conforming to foreign laws and regulations; the same shall apply hereinafter), who are interested
parties, are the managing underwriters of issue(3) Acquisition of securities for which a financial instruments business operator, who is an interested party,
or a financial institution is representative for a private placement(4) Payment rate of trading commissions to interested parties

Article 6.

Description of Incorporated Assets

The types of assets to be classified as stipulated in the By-laws prescribed in Article 3, Paragraph 1, Item 13 of–2–the Rules shall be the following types of assets, and where details of such assets are to be indicated, individual
issues shall be indicated for each type of assets set forth in the respective items.
(1) Domestic listed and unlisted shares(2) Foreign listed and registered shares and unlisted and unregistered shares(3) Domestic stock options certificates(4) Foreign stock options certificates(5) Domestic option certificates(6) Foreign option certificates(7) Domestic corporate bonds with stock options (convertible bonds)(8) Foreign corporate bonds with stock options (convertible bonds)(9) Public and corporate bonds: Domestic public and corporate bonds shall be classified by type of bond, andforeign public and corporate bonds shall be classified by currency(10) Domestic investment trust beneficiary certificates and investment securities(11) Foreign investment trust beneficiary certificates and investment securities(12) Investment equity subscription right certificates(13) Investment trust beneficiary certificates in Japanese currency that are incorporated by fund of funds(14) Foreign currency-denominated investment trust beneficiary certificates incorporated by fund of funds(15) Other domestic securities(16) Other foreign securities(17) Monetary claims: Domestic and foreign separately(18) Promissory notes: Domestic and foreign separately(19) Beneficial Interests, silent partnership equity or trust issuing beneficiary certificates: Domestic andforeign separately(20) Instruments(21) Futures transactions: Domestic and foreign separately(22) Option transactions: Domestic and foreign separately(23) Individual stock option transactions: Domestic and foreign separately(24) Swaps and forward transactions(25) Mother fund beneficiary certificates

Article 7.

Composition of Investment Trust Property

The types of assets to be classified as stipulated in the By-laws prescribed in Article 3, Paragraph 1, Item 17 of
the Rules shall be as follows:(1) Shares(2) Stock options certificates(3) Option certificates, etc.
(4) Corporate bonds with stock options (convertible bonds)(5) Public and corporate bonds(6) Investment trust beneficiary certificates and investment securities–3–(7) Investment equity subscription right certificates(8) Other securities(9) Monetary claims(10) Promissory notes(11) Beneficial Interests(12) Silent partnership equity(13) Trust issuing beneficiary certificates(14) Instruments(15) Mother fund beneficiary certificates(16) Call loans, etc.

Article 7-2. Breakdown of Distribution Source
The matters to be stipulated in the By-laws prescribed in Article 3, Paragraph 5 of the Rules shall be as follows:(1) Dividends for the period(2) Revenues for the period and income other than revenues for the period within the dividends for the period(3) Amount subject to distribution carried forward to the next period
Article 8.

Cases that Do Not Require Delivery of Investment Report (Full Version) and Investment Report(Delivery Version)
Cases provided for in the By-laws prescribed in Article 10, Paragraph 1 and Article 10-2, Paragraph 1 of theRules shall address the circumstances described below:(1) The solicitation of the application for acquiring the beneficiary certificates are made through private
placement with qualified institutional investors, and the investment trust contracts provide thatinvestment reports shall not be delivered(2) A person living with the beneficiary is expected to receive the investment report without fail, and thebeneficiary agrees not to receive the investment report by the preparation date thereof (excluding cases
in which the beneficiary has requested delivery of the investment report by the preparation date thereof)(3) Beneficiary certificates are listed on a financial instruments exchange (excluding cases in which
beneficiary certificates are specified listed securities as provided in Article 2, Paragraph 33 of the
FIEA)(4) MRFs (meaning those prescribed in Article 1 of the Rules for Operations of MMF, etc. that are public andcorporate bond investment trusts in compliance with the provisions of Article 25, Item 2 of theRegulation for Enforcement of the Act on Investment Trusts and Investment Corporations (Cabinet
Office Ordinance No. 129 of 2000))(5) Securities for professional investors prescribed in Article 4, Paragraph 3 of the FIEA, for which
information pertaining to matters to be stated in the investment report is provided or disclosed as issuer
information under Article 27-32, Paragraph 1 of the FIEA pursuant to Paragraph 1 or 2 of the same
article (limited to cases where provision or disclosure of such information is provided or disclosed inlieu of delivery of the investment report in the investment trust contract)–4–Article 9.

Verifying Beneficiary to Receive Summary Delivery

1. The confirmation method specified in the By-laws as provided in Article 10, Paragraph 2, Item 2 of the Rules
shall be a means whereby the beneficiary shall choose either the delivery for each fiscal year end or
preparation period, or a summary delivery. In this case, summary delivery shall be made in principle every 3months, and a delivery period of not less than 4 months and not more than 12 months may be established at
the discretion of the investment trust management company (meaning the investment trust managementcompany as defined in Article 2, Paragraph 11 of the Act on Investment Trusts and Investment Corporations(Act No. 198 of 1951); hereinafter referred to as the “Management Company”).
2. When a beneficiary requests a change in delivery method, the delivery method of the investment report shallbe changed in accordance with the beneficiary’s wish.

Article 10.

Details of Individual Issues of Bonds Incorporated in Daily Settlement Type Bond Investment

TrustsThe matters to be stipulated in the By-laws as prescribed in Article 12, Paragraph 2 of the Rules shall be theface value and the date of redemption.

Article 11.

MMF Monthly Disclosure Items

The method to be specified in the By-laws as prescribed in Article 16, Paragraph 2 of the Rules shall be themethod of indication as set forth in each of the following items with respect to the Items for Monthly
Disclosure.
(1) Balance of incorporated assets by type and incorporation ratio: National government bonds, municipal
bonds, special bonds (excluding financial bonds, the same shall apply hereinafter in this article and thefollowing article), financial bonds, straight bonds, corporate bonds with stock options (convertible
bonds), CPs, CDs and other assets (meaning call loans, deposits, accounts receivable and accounts
payable and other assets. The same shall apply hereinafter in this article and the following article) shallbe divided into category and the face value (except other assets, and the same shall apply in this article),and the appraised value and the incorporation ratio (meaning the ratio of the appraised value to the total
amount of net assets or total amount of assets; the same shall apply hereinafter in Item 2) shall be
indicated for each asset.
(2) Incorporation ratio of public and corporate bonds, financial bonds, CPs and CDs by top five issuers: The
name of the issuer and the incorporation ratio shall be indicated for each asset by classifying them into
public and corporate bonds (excluding national government bonds prescribed in Article 3, Paragraph 1,
Item 1 of the Rules for Operations of MMF, etc. (hereinafter referred to as “Government bonds, etc. ”)
and financial bonds), financial bonds, CPs and CDs (meaning CDs, call loans, etc. (excluding any
collateralized call loan secured by Government bonds, etc.)).
(3) Ratio of incorporated assets to total net assets by rating: Assets are classified into public and corporate
bonds and short-term financial assets, and the ratio of incorporation (meaning the ratio of the appraisedvalue to the total amount of net assets) shall be indicated for each credit rating determined by a credit–5–

rating agency (meaning a credit rating agency provided in Article 2, Paragraph 36 of the FIEA and a
specified affiliated corporation provided in Article 116-3, Paragraph 2 of the Cabinet Office Ordinanceon Financial Instruments Business, etc. Cabinet Office Ordinance No. 52 of 2007); the same shall apply
hereinafter) and for each credit rating the Management Company determines based on the financial
soundness of the issuing company.

Article 11-2 (MRF Monthly Disclosure Items
The manner of presentation specified in the By-laws as prescribed in Article 16-2, Paragraph 2 of the Rules
shall be that set forth in each of the following items corresponding to the Items for Monthly Disclosure:(1) Balance and ratio of incorporation of each type of incorporated asset: Assets in the portfolio shall be
divided into national government bonds, municipal government bonds, special bonds, finance bonds,
straight bonds, CPs, CDs and other assets, with face value (excluding other assets; the same shall apply
in this article), and the appraised value and the incorporation ratio (meaning the ratio of the appraisedvalue to the total amount of net assets or total amount of assets; the same shall apply hereinafter in Item2) shall be indicated for each asset. However, face value and appraised value may be omitted.
(2) The status of the incorporation ratio of public and corporate bonds and short-term financial assets by
issuer shall be indicated by any of the following methods:(a) Incorporation ratio of public and corporate bonds and short-term financial assets by top 10 issuers:
Assets shall be divided into public and corporate bonds (meaning corporate bonds and financial
bonds as defined in Article 19, Paragraph 1, Item 5 of the Rules for Operations of MMFs, etc.,
excluding national government bonds as defined in Paragraph 1, Item 1 and municipal bonds andspecial bonds as defined in Item 2 of the same article) and short-term financial assets (meaning CPs,
CDs, call loans, etc. (excluding any collateralized call loans secured by Government bonds, etc.), ;the same shall apply hereinafter), and the issuer and incorporation ratio shall be indicated for each
asset separately. However, although national government bonds, municipal government bonds andspecial bonds may be included when indicating the public and corporate bonds, in this case, the top
10 issues by each issuers of straight bonds and financial bonds excluding national government bonds,
municipal government bonds and special bonds shall be indicated.
(b) Incorporation ratio of incorporated assets by top 20 issuers: The issuer’s name and incorporation ratio
shall be indicated by totaling public and corporate bonds and short-term financial assets without
dividing these assets into classes. However, if the indication includes national government bonds,
municipal bonds and special bonds, the top 20 issues shall be indicated by issuer and exclude national
government bonds, municipal bonds and special bonds.
(3) Ratio of incorporated assets by credit ratings to the total amount of net assets: Assets are classified into
public and corporate bonds and short-term financial assets, and the incorporation ratio (meaning theratio of the appraised value to the total amount of net assets) shall be indicated for each credit rating by
a credit rating agency, and for each credit rating determined by the Management Company based on thefinancial soundness of the issuing company.

–6–

Article 12.

Investment Trusts Subject to Voluntary Disclosure

The investment trusts specified by the By-laws prescribed in Article 20 of the Rules shall be the following:(1) Privately placed investment trusts(2) Listed investment trusts (meaning investment trusts as defined in Article 12, Items 1 and 2 of the Cabinet
Order and listed securities investment trusts as defined in Article 9-4-2 of the Act on Special Measures
Concerning Taxation)(3) Unit type investment trusts for closed periods(4) Asset accumulation type investment trust(5) Million type investment trusts(6) Money pool type investment trusts(7) Pension type investment trusts (trusts dedicated to defined contribution pensions or variable annuities)(8) Investment trusts with a total net assets of less than 100 million yen or with a total number ofbeneficiaries of less than 50(9) Investment trusts for which the investment trust contract stipulates the portfolio not be replaced inprinciple(10) Other investment trusts similar to investment trusts (1) through (9)Article 13.

Classification of Assets Other Than Real Estate, etc. of a Real Estate Investment Trust (REIT)

The types of assets required to be classified among those other than a real estate and asset-backed securities ofa real estate investment corporation as provided in Article 22, Item 15 of the Rules shall be the following:(1) Shares and investment securities(2) Securities other than shares and investment securities(3) Securities for margin transactions(4) Specified transactions and exchange contract transactions(5) Other specified assets

Article 14.

Classification of Assets Other Than Real Estate, etc., of a Real Estate Investment Corporation

The provision in the preceding article shall apply mutatis mutandis to the type of assets required to be classified
among those other than a real estate and asset-backed securities of a real estate investment corporation asprovided in Article 26, Item 15 of the Rules.

Article 15.

Classification of Assets Other Than Infrastructure Assets, etc., and Infrastructure-related Assetsof an Infrastructure Investment Trust
The types of assets required to be classified among those other than infrastructure assets andinfrastructure-related assets of an infrastructure investment corporation as provided in Article 29, Item 15 of
the Rules shall be the following:(1) Shares (excluding those provided in Article 3, Paragraph 6, Item 1 of the Regulations on Infrastructure
Investment Trusts and Infrastructure Investment Corporations (hereinafter referred to as “Regulations
on IIT, etc.”); the same shall apply hereinafter) and investment securities (excluding those provided in–7–Article 3, Paragraph 6, Item 6 of the Regulations on IIT, etc.; the same shall apply hereinafter.)(2) Securities other than shares and investment securities(3) Securities for margin transactions(4) Specified transactions and exchange contract transactions(5) Other specified assets

Article 16.

Classification of Assets Other Than Infrastructure Assets, etc. and Infrastructure-related Assets ofan Infrastructure Investment Corporation
The provision in the preceding article shall apply mutatis mutandis to the type of assets required to be classified
among those other than infrastructure assets and infrastructure-related assets of an infrastructure investment
corporation as provided in Article 34, Item 15 of the Rules.

Supplementary Provision
These By-laws shall come into effect on April 1, 2004.

Supplementary ProvisionThis revision shall be in force from the date of commencement of trading on the Jasdaq Securities Exchange,
Inc.

Supplementary ProvisionThis amendment shall come into effect on May 19, 2005.

Supplementary ProvisionThis amendment shall come into effect on May 24, 2006.

Supplementary ProvisionThis amendment shall come into effect on June 19, 2006.

Supplementary ProvisionThis amendment shall come into effect on January 19, 2007.

Supplementary ProvisionThis amendment shall come into effect on September 30, 2007.
However, revised provisions shall apply as of the new accounting period starting on the effective date.

Supplementary Provisions
This amendment shall come into effect from the date on which the Option Certificates, etc., are listed on the
Osaka Securities Exchange, Inc.
–8–

Provided, however, with regard to investment Trust Property for which the calculation period commenced prior
to the implementation date, the provisions then in force may remain applicable.

Supplementary ProvisionThis amendment shall come into effect on January 16, 2009.

Supplementary ProvisionThis amendment shall come into effect on March 19, 2009.

Supplementary ProvisionThis amendment shall come into effect on September 16, 2009.

Supplementary ProvisionThis revision shall take effect on January 1, 2011 and will apply beginning with monthly disclosures based on
subsequent dates.

Supplementary Provisions
1. These amendments shall be effective as of June 1, 2012, and shall apply to investment reports for investment
trusts with settlement of accounts on and after that date.
2. Notwithstanding the foregoing Paragraph 1., this shall not preclude Full Members from operating under theamended provisions up to the effective date.
Supplementary ProvisionThis amendment shall come into effect on January 4, 2013.

Supplementary Provisions
1. These amendments shall take effect on December 1, 2014, and apply to investment trust Investment Report(Full Version) and Investment Reports (Delivery Version) with preparation dates (as stipulated in Article 14,
Paragraph 1 of the New Investment Trust Act) falling on and after the effective date, and the provisions thenin force for investment reports with preparation dates (as stipulated in Article 14, Paragraph 1 of the Old
Investment Trust Act) falling prior to the effective date shall remain applicable.
2. Article 38 (Review) of the Supplementary Provisions of the Investment Trust Act states that “the government
shall review the provisions of each law after its revision (hereinafter in this article referred to as “eachrevised law”) in principle 5 years from the effective date, and take measures as deemed necessary based on
the results thereof in consideration of the state of enforcement of each revised law.” Corresponding measures
shall be taken in light of this provision.
* The amended Articles are as follows:
Article 8 is revised.

–9–Supplementary ProvisionThis revision shall take effect on December 1, 2014, and apply to the Investment Report (Full Version) and theInvestment Report (Delivery Version) of investment trusts pertaining to the preparation date stipulated in
Article 14, Paragraph 1 of the new Investment Trust Act falling after the effective date, and the investment
report pertaining to the preparation date stipulated in Article 14, Paragraph 1 of the old Investment Trust Act
that falls prior to the effective date shall remain applicable.
* The amended Articles are as follows:
Article 2, Item7, Article 6, Item12 and Article 7, Item 7 are newly established. Numbering reorganized accordingly.

Supplementary ProvisionThis amendment shall come into effect on July 16, 2015.
* The amended Articles are as follows:
Articles 15 and 16 are newly established.

Supplementary ProvisionThis amendment shall come into effect on May 18, 2017.
* The amended Articles are as follows:
Article 11, Item 3 is deleted. Numbering reorganized accordingly.

Supplementary ProvisionThis revision shall come into effect on September 30, 2019.
* Corrected numbering error of items in conjunction with partial revision (September 30, 2019) in the “Rules for Investment
Reports, etc., for Investment Trusts and Investment Corporations.”–10–

Committee Resolutions on Investment Reports Concerning Investment Trusts andInvestment Corporations
Established on March 19, 2004
Revised on December 10, 2004
Revised on May 19, 2005
Revised on May 11, 2006
Revised on June 8, 2006
Revised on January 11, 2007
Revised on September 21, 2007
Revised on November 8, 2007
Revised on March 13, 2008
Revised on July 10, 2008
Revised on September 11, 2008
Revised on January 16, 2009
Revised on March 19, 2009
Revised on October 14, 2010
Revised on March 15, 2012
Revised on June 12, 2014
Revised on November 20, 2014
Revised on May 18, 2017
Revised on September 20, 2018
Revised on April 18, 2019

This committee resolution sets forth the form and presentation guidelines of the items to be indicated forinvestment reports as provided in Article 8 and Article 14, and monthly disclosure as provided in Article 16,
Paragraph 3 and Article 16-2, Paragraph 3 to which the Self-Regulation Committee has been delegatedpursuant to the Rules for Investment Reports, etc., for Investment Trusts and Investment Corporations.

1. The form and presentation guidelines of items to be indicated pertaining to the Investment Report (FullVersion) provided in Article 8 of the Rules shall be as shown in Attached Table 1.

2. The form and presentation guidelines of items to be indicated pertaining to the Investment Reports (Delivery
Version) prescribed in Article 8 of the Rules shall be as shown Attached Table 1-2.

3. The form and presentation guidelines of items to be indicated pertaining to the investment report as
stipulated in Article 14 of the Rules shall be as shown in Attached Table 2.

4. The form and presentation guidelines of items to be indicated pertaining to monthly disclosure as prescribedin Article 16, Paragraph 3 and Article 16-2, Paragraph 3 of the Rules shall be as shown in Attached Table 3.

–1–

Supplementary ProvisionThis Sub-Committee resolution shall be implemented from April 1, 2004.

Supplementary ProvisionThis revision shall be in force from the date of commencement of trading on the Jasdaq Securities Exchange,
Inc.

Supplementary ProvisionThis amendment shall come into effect on May 19, 2005.

Supplementary ProvisionThis amendment shall come into effect on May 24, 2006.

Supplementary ProvisionThis amendment shall come into effect on June 19, 2006.

Supplementary ProvisionThis amendment shall come into effect on January 19, 2007.

Supplementary ProvisionThis revision will come into effect on September 30, 2007.
However, the revised provisions shall apply as of the new accounting period starting on the effective date.

Supplementary ProvisionThis amendment shall come into effect on November 16, 2007.

Supplementary ProvisionThis amendment shall come into effect from the date on which the Option Certificates, etc., are listed on the
Osaka Securities Exchange, Inc.
Provided, however, with regard to investment Trust Property for which the calculation period commenced prior
to the implementation date, the provisions then in force may remain applicable.

Supplementary ProvisionThis amendment shall come into effect on July 18, 2008.

Supplementary ProvisionThis amendment shall come into effect on October 1, 2008.

–2–

Supplementary ProvisionThis amendment shall come into effect on January 16, 2009.

Supplementary ProvisionThis amendment shall come into effect on March 19, 2009.

Supplementary ProvisionThis revision shall be effective as from January 1, 2011. Revised Attached Table 2 shall apply starting with theinvestment report to be prepared on or this date, and revised Attached Table 3 shall apply starting with themonthly disclosure based on or after the same date.

Supplementary Provisions
1. These amendments shall be effective as of June 1, 2012, and shall apply to investment reports for investment
trusts with settlement of accounts on and after that date.
2. Notwithstanding the foregoing Paragraph 1., Full Members shall not be precluded from operating under therevised provisions until such effective date.

Supplementary Provisions
1. These amendments shall take effect on December 1, 2014, and apply to investment trust Investment Report(Full Version) and Investment Reports (Delivery Version) with preparation dates (as stipulated in Article 14,
Paragraph 1 of the New Investment Trust Act) falling on and after the effective date, and the provisions thenin force for investment reports with preparation dates (as stipulated in Article 14, Paragraph 1 of the Old
Investment Trust Act) falling prior to the effective date shall remain applicable.
2. In Article 38 (Review) of the Supplementary Provisions of the Investment Trust Act, the “government shallreview the provisions of each law after its revision (hereinafter in this article referred to as “each revisedlaw”) in principle 5 years from the effective date, and take measures as deemed necessary based on the
results thereof in consideration of the state of enforcement of each revised law”).
* The amended Articles are as follows:(1)

1 is revised.

(2)

Old 2 and old 3 are moved down one place, and a new 2 is added.

(3)

Attached Table 1 headings, 2 (1) B (c), and (3) Table A and B (b) are revised, and items from the old (c) to the old (f)are each moved down by one character, and (c) is newly added.

(4)

Attached Table 1 2 (4) headings, Table A, (Note 1), (Note 2), B headings and (c) are revised, the old (k) is deleted, andthe old (l) shall be moved up to (k), and a new (l) and (m) shall be added.

(5)

Attached Table 1 2 (16) B (d) is revised.

(6)

Attached Table 1-2 is newly added.

(7)

Attached Table 2 old 5 (3), old 6 is moved down to 6 (1) and 6 (2) and 7 is newly added.

–3–Supplementary Provisions
This revision shall take effect on December 1, 2014, and apply to the Investment Report (Full Version) and theInvestment Report (Delivery Version) of investment trusts pertaining to the preparation date stipulated in
Article 14, Paragraph 1 of the new Investment Trust Act falling after the effective date, and the investment
report pertaining to the preparation date stipulated in Article 14, Paragraph 1 of the old Investment Trust Act
that falls prior to the effective date shall remain applicable.
* The revisions are as follows:(1)

G is newly added to Attached Table 1 2 (5) A. Form Example (a) and the following G through M are moved down.

(2)

Attached Table 1 2 (5) B. Labeling Considerations (a) is revised.

(3)

Attached Table 1 2 (12) A. Form example (l) is newly added and the following (l) through (x) are moved down.

(4)

Attached Table 1 2 (12) B. Labeling Considerations (a) is revised.

(5)

Attached Table 1 2 (16) A. Form Examples (a) and B. Labeling Considerations (a) is revised.

Supplementary Provisions
This amendment shall come into effect on May 18, 2017.
* The revisions are as follows:(1)

Attached Table 2 6 (1) is deleted. (2) is moved up and A. Form Examples and B. (c) are revised.

(2)

Attached Table 3 3 is deleted. 4 is moved up and A. Form Examples and B. (b) are revised.

Supplementary Provisions
These amendments shall be effective as of September 30, 2019, shall apply to investment trust Investment
Report (Full Version) and Investment Reports (Delivery Version) with preparation dates (as stipulated in
Article 14, Paragraph 1 of the Investment Trust Act) falling on and after the effective date. However, this shallnot preclude the application of the amended provisions prior to the effective date.
* The revisions are as follows:(1)

Attached Table 1 2. (4) (n) and (5) are newly added. Old (5) through (18) are moved down.

(2)

Attached Table 1-2 2. (1) (i) A. Examples of Indication and B. Labeling Considerations are revised.

(3)

Attached Table 1-2 2. (1) (iii) (n) and (iv) are newly added. Old (iv) through (viii) are moved down.

Supplementary ProvisionThis amendment shall come into effect on May 1, 2019.
* Necessary arrangement in connection with the change of era name–4–

Attached Table 1

Form and Indication Examples of an Investment Report (Full Version) for a
Securities Investment Trust(Articles 2 and 3 of the Rules)

1. Structure of Fund (Article 2, Paragraph 1, Item 4 of the Rules)
A. Form Examples
The structure of fund is as follows:
Instrument
Classification
Trust Period andClosed Period
Investment Policy
Major Investment

Baby funds

Targets

Stock mother funds
Maximum ratio of incorporation ofIncorporation

mother funds into baby funds

Restriction

Maximum ratio of incorporation of stocks
into mother funds

Distribution Policy

B. Considerations in Labeling “Structure of Fund”(a) The instrument classification shall be those stated in the prospectus.
(b) When the investment policy is indicated in the case of a fund for system investment, the name of thesystem shall be indicated.

–5–

2. Items to be Indicated in the Text (Article 3 of the Rules)
The form of items to be indicated in the text shall be as follows:(1) Investment performance since establishment
A. Form Examples(a) In the case of unit type investment trusts〇

Investment Performance Since Establishment

Benchmark(Reference
Ratio
index)
Stock
Principal
Settlement
BeneficiaryofRemaining
Fluctuation
Fluctuation Incorporation
PeriodYield
Stock
Dividend Fluctuation
Ratio, etc.
Rate
Rate
Rate
Futures(Ex-Distribution) Including
DuringDuringDuringTax
PeriodPeriodPeriod
Yen
Yen
Yen
%
%
%
%
%
%
(Inception Date)
–
–
–
–
–
MM/DD/YYYY
Base Value

1st Period(MM/DD/YYYY)……………

2nd Periodn Period(Notes)1. Fluctuation amount and fluctuation rate of the base value include dividends.
2. Ratio of stock futures = Buying ratio - Selling ratio–6–

(b) Open type investment trusts
Fund with an accounting period of less than 6 months〇

Investment Performance During the Last 5 Preparation Periods (for Open Type Bond Investment Trusts, theLast 3 Preparation Periods)
Benchmark(Reference
index)

Base Value
Preparation Period

End of 1st Preparation
PeriodMM/DD/YYYY
End of 2nd
Preparation Period
MM/DD/YYYY
End of 3rd Preparation
PeriodEnd of 4th Preparation
PeriodEnd of 5th Preparation
Period(Notes)Stock
Ratio of
Fluctuation Fluctuation Incorporation Stock Total Net
Dividend
AssetsRate
Rate
Ratio, etc. Futures(Ex-Distribution) Including
DuringDuringTax
PeriodPeriod
Yen

Yen

%

%

%

%

Millionsof yen1. The fluctuation rate in the base value includes dividends.
2. Ratio of stock futures = Buying ratio - Selling ratio

Funds with an accounting period of 6 months or more〇

Investment Performance During the Last 5 Periods (for Open Type Bond Investment Trusts, the Last 3

Preparation Periods)
Benchmark(Reference
index)

Base Value
Settlement Period

1st Period
MM/DD/YYYY
2nd Period
MM/DD/YYYY
3rd Period
4th Period
5th Period(Notes)Stock
Ratio of
Fluctuation Fluctuation Incorporation Stock Total Net
Dividend
AssetsRate
Rate
Ratio, etc. Futures(Ex-Distribution) Including
DuringDuringTax
PeriodPeriodYen

Yen%

1. The fluctuation rate in the base value includes dividends.
2. Ratio of stock futures = Buying ratio - Selling ratio

–7–

%

%

%

Millions ofyenB. Labeling Considerations(a) In the case of a fund for which benchmarks are specified in the Contracts or prospectus, suchbenchmarks shall be indicated as reference indices, and in the case of other funds, appropriate
indices (for example, the Nikkei 225 Series, TOPIX, stock price index by capital size, overseas
stock price index, CB Quick average, or exchange rate, etc.) shall be indicated as referenceindices in accordance with the nature of those instruments.
(b) In the “Explanation of Investment Progress, etc.,” if the transition of the base value cannot beshown in a chart together with the benchmark (or reference index such as a stock index in theabsence of a benchmark), the specific reason they are not shown together (for example, a detailed
reason why the benchmark or reference index does not exist even in the case of a theme type fundor pursuit of absolute return type fund shall be listed. ) shall be indicated by a note made in acolumn in the “Investment Performance Since Establishment.”(c) Items such as the stock incorporation ratio shall indicate the ratio of major assets to be invested
that is determined appropriate in accordance with the investment guidelines of the fund (forexample, the ratio of corporate bonds with stock options (convertible bonds) for a fund invested
mainly in corporate bonds with stock options (convertible bonds)).
Stock options certificates (including warrant certificates, the same shall apply hereinafter in
Attached Table 1) and option certificates with the nature of shares shall be included in the stock
ratio of incorporation, and it shall be noted that stock options certificates and option certificates,
etc., having the nature of shares shall be included.
In the case of the family fund method, the substantial incorporation ratio shall be indicated.
(d) Funds with an accounting period of less than 6 months shall be indicated at the end of each
preparation period.
However, such presentation may be made at the end of each fiscal year.
(e) In the event that any fund whose accounting period is less than 6 months is indicated at the end ofeach preparation period, the explanation of the settlement period corresponding to the preparation
period of every 6 months ( __th period through __th period) shall be noted in the margin.
(f) For a fund of funds, stock price index, etc. expressing the goal of the fund of funds and theincorporation ratio of the Investment Trust Securities shall be indicated.
(g) In the case of a securities investment trust for which the provisions in Article 12, Item 2, (a) of theOrder for Enforcement of the Act on Investment Trusts and Investment Corporations are provided
in the contracts of the investment trust, index that expresses the interlock rate between thefluctuation of index subject to the interlocking (meaning the index to be interlocked as prescribedin Article 19, Paragraph 2 of the Regulation for Enforcement of the Act on Investment Trusts andInvestment Corporations (Cabinet Office Ordinance No. 129 of 2000) and fluctuation of the net
assets (base value) of the investment trust property. The same shall apply hereinafter. ) shall be
indicated.

–8–

Interlock Rate (Example)
Net assets at the end of
periodNet assets at the
beginning of period÷Index subject to interlocking
at the end of period
Index subject to interlocking
at the beginning of period–9–×100(%)

(2) Base Value and Market Trend
A. Form Examples
Fund with an accounting period of less than 6 months〇

Base Value and Market Trend for the Past 6 Months

Settlement
PeriodBenchmark
Stock(Reference index)
Ratio of
Incorporation
Stock Futures
Fluctuation
Fluctuation
Ratio, etc.
Rate
Rate

Base Value
MM/DD/YYYY(Beginning of period)

Yen

%

%

%

%

(End of month)__th Period(End of month)(End of period)
MM/DD/YYYY(Beginning of period)(End of month)__th Period(End of month)(End of period)
MM/DD/YYYY(Note) Base value at the end of the period includes dividends, and the fluctuation rate is as compared with the beginning of theperiod.

–10–

Funds with an accounting period of 6 months or more

Base Value and Market Trends for the Current Period
BenchmarkBase Value
Stock
Ratio of(Reference index)
MM/DD/YYYY
Incorporation Stock
Fluctuation
Fluctuation
Ratio, etc. Futures
Rate
Rate
Yen
%
%
%
%
(Beginning of
period)MM/DD/YYYY〇(End of month)(End of month)(End of period)
MM/DD/YYYY(Note) Base value at the end of the period includes dividends, and the fluctuation rate is as compared with the beginning of theperiod.

B. Labeling Considerations(a) Labeling Considerations (a), (b) and (c) in “Investment Performance Since Establishment” shallbe applied correspondingly.
(b) The monthly base date during the period excluding the beginning and end of the period shall be
the last business day at the end of the month. Provided, that the end-of-month notice may beomitted when such information is determined not necessary in accordance with the nature of thefund’s instruments.
(c) The fluctuation rate of base values and stock price indexes shall be as compared with the
beginning of the period.
(d) For funds with an accounting period of less than 6 months, transition in the base value shall be
indicated for the last 6 months before the end of the preparation period for the investment report.
(e) For a fund of funds, stock price index, etc. expressing the goal of the fund of funds and theincorporation ratio of the Investment Trust Securities shall be indicated.

–11–

(3) Breakdown of the Distribution Source
A. Indication Examples
Fund with an accounting period of less than 6 months (monthly settlement)

Item

__th
Period__th
Period(Units: yen / %, per 10,000 shares before taxes)
__th
__th
__th
__th
PeriodPeriodPeriodPeriodMM/DD/YYYY MM/DD/
YYYY

MM/DD/YYYY MM/DD/
YYYY

MM/DD/YYYY MM/DD/
YYYY

MM/DD/YYYY MM/DD/
YYYY

MM/DD/YYYY MM/DD/
YYYY

MM/DD/YYYY MM/DD/
YYYY

Dividends for the Period(Ratio to base value)
Revenue for the Period
Income Other Than
Revenue for the Period
Amount Subject toDistribution Carried
Forward to the Next Period
Fund with an accounting period of 6 months or more (Example of 1-year settlement)(Units: yen / %, per 10,000 shares before taxes)__th Period
Item

MM/DD/YYYY
MM/DD/YYYY

Dividends for the Period(Ratio to base value)
Revenue for the Period
Income Other Than Revenue
for the Period
Amount Subject to Distribution
Carried Forward to the Next
PeriodB. Labeling Considerations(a) The status of each accounting period during the period subject to preparation of the investment
report shall be separately indicated.
(b) The amount to be indicated shall be per 10,000 shares (meaning the units for indicating the basevalue, the same shall apply hereinafter).
(c) “Dividends for the Period” indicates “(Ratio to base value),” in which case it shall be noted thatthe ratio to base value is the ratio to the base value at the end of the period (including dividends) todividends for the period including tax, which is different from the rate of return of the fund.
(d) “Revenue for the Period” shall indicate the sum of the amounts allocated for distribution for theperiod from “Revenues from dividends, etc. after deduction of expenses” and “Gains on sale after
deduction of expenses and compensation for loss carried forward (including valuation gains).”(e) “Income Other Than Revenue for the Period” shall indicate the total amount allocated for
distribution for the period from the “reserve for dividends” and the “revenue adjustment.”–12–

(f) When calculating “Revenue for the Period” and “Income Other Than Revenue for the Period,” ifthere is any amount less than the decimal point per 10,000 shares, such amount shall be added up
including the amount less than the decimal point, and the amount added up shall be rounded down
to the decimal point.
If there is no numerical value in a corresponding column, “-” shall be indicated, and if there
is only a numerical value after the decimal point, “0” shall be indicated.
“Revenue for the Period” and “Income Other Than Revenue for the Period” are rounded
down to the nearest whole number. If the total amount of revenues for the period does not matchthe amount of “Dividends for the Period,” such fact shall be indicated in the notes. Even if thenumbers are matched, the fact of such also may be noted.
(g) “Amount Subject to Distribution Carried Forward to the Next Period” shall indicate the amountobtained by deducting “Dividends for the Period” from “Amount Available for Distribution of
Revenues for the Period.”–13–

(4) Details of Expenses per 10,000 Units
A. Form Examples
Fund with an accounting period of less than 6 months〇

Details of Expenses per 10,000 Units__th Period to __th Period
Item(MM/DD/YYYY MM/DD/YYYY)
AmountYen

Summary of Items

Ratio
%

Where described in (Note 1): (☆1)
Where described in (Note 1): (☆2)
Where described in (Note 1): (☆3)
Where described in (Note 1): (☆4)(a) Trust Fees
(Investment trust company)(Seller)(Trustee company)(b) Subscription Fees

Where described in (Note 1): (☆5)(c) Trading Commissions(Shares)(Stock options certificates)(Option certificates, etc.)(Corporate bonds with stock options(convertible bonds)) (instruments)(Futures and options)(d) Securities Transaction Tax(Shares)(Stock options certificates)(Option certificates, etc.)(Corporate bonds with stock options(convertible bonds))(Public and corporate bonds)(e) Other Expenses(Storage expenses)(Audit expenses)(Other)

Where described in (Note 1): (☆6)

Where described in (Note 1): (☆7)

Total

–14–

Funds with an accounting period of 6 months or more〇

Details of Expenses per 10,000 Units
Current Period(MM/DD/YYYY MM/DD/YYYY)

Item

AmountYen

Summary of Items

Ratio
%

Where described in (Note 1): (☆1)
Where described in (Note 1): (☆2)
Where described in (Note 1): (☆3)
Where described in (Note 1): (☆4)(a) Trust Fees
(Investment trust company)(Seller)(Trustee company)(b) Subscription Fees

Where described in (Note 1): (☆5)(c) Trading Commissions(Shares)(Stock options certificates)(Option certificates, etc.)(Corporate bonds with stock options(convertible bonds))(Instruments)(Futures and options)(d) Securities Transaction Tax(Shares)(Stock options certificates)(Option certificates, etc.)(Corporate bonds with stock options(convertible bonds))(Public and corporate bonds)(e) Other Expenses(Storage expenses)(Audit expenses)(Other)

Where described in (Note 1): (☆6)

Where described in (Note 1): (☆7)

Total
(Note 1)In the following Notes, (☆) shall be inserted in the right column of the table, and each company shallinsert other items as it deems necessary.
(Unit type investment trust)(Marginal notes) Overview of items
Expenses incurred during the period (including consumption tax for applicable items) are calculated using
the simplified method because the number of units of beneficial interest changes as a result of earlycancellation.
(The method of calculation shall be described, but real numbers may be omitted.)(☆1) (a) Trust fee = [Average base value during the period] x Trust fee rate (*)(*) Fund for which trust fees are recorded daily on a net asset basis.

–15–

Or
[Trust fees payable at the end of the semiannual period][Trust fees payable at the end of the period]=+[Number of units of beneficial interest at the end of the semiannual period][Number of units of beneficial
interest at the end of the period]
The average base value for the period is 〇〇〇〇 yen.
The “Ratio” column indicates the ratio obtained by dividing the each amount of expenses per 10,000
units by the average base value during the period and multiplying 100.
The following job description of items for compensation are examples used for examples.
(☆2) Compensation for management of the entrusted funds(☆3) Compensation for sending various documents such as the Investment Report (Delivery Version),managing the fund in the account, and providing information after purchase(☆4) Compensation for management of investment property and execution of instructions from investment
trust companies(☆5) (c) Trading commissions =[Trading commissions during the period][Average number of units of beneficial interest during the period]

Trading commissions are fees to be paid to brokers for the purchase and sale of securities[Securities transaction tax during the period](☆6) (d) Securities transaction tax =[Average number of units of beneficial interest during the period]
The securities transaction tax is a tax on transactions arising from each transaction of securities.
(☆7) (e) Other expenses =[Other expenses during the period][Average number of units of beneficial interest during the period]

Other Expenses- Storage expenses are expenses required for the storage of securities, remittance of funds,
and transfer of assets that are paid to overseas storage banks, etc.
- Audit expenses are expenses related to audits of the fund to be paid to the auditing
corporation or entity.
- For expenses incurred other than those described above, concrete items shall be listed andthe nature of services shall be described.
(Open type investment trusts)(Marginal notes) Overview of items
Expenses during the period (including consumption tax for applicable items) are calculated using thesimplified method because the number of units of beneficial interest changes as a result of addition or
early cancellation.
(The method of calculation shall be described, but real numbers may be omitted.)(☆1) (a) Trust fee = [Average base value during the period] x Trust fee rate

–16–

The average base value for the period is 〇〇〇〇 yen.
The “Ratio” column indicates the ratio obtained by dividing the each amount of expenses per 10,000
units by the average base value during the period and multiplying 100.
The following job description of items for compensation are examples used for examples.
(☆2) Compensation for management of the entrusted funds(☆3) Compensation for sending various documents such as the Investment Report (Delivery Version),managing the fund in the account, and providing information after purchase(☆4) Compensation for management of investment property and execution of instructions from investment
trust companies[Trading commissions during the period](☆5) (c) Trading commissions =[Average number of units of beneficial interest during the period]
Trading commissions are fees to be paid to brokers for the purchase and sale of securities(☆6) (d) Securities transaction tax =[Securities transaction tax during the period][Average number of units of beneficial interest during the period]

The securities transaction tax is a tax on transactions arising from each transaction of securities.

(☆7) (e) Other expenses =[Other expenses during the period][Average number of units of beneficial interest during the period]

Other Expenses- Storage expenses are expenses required for the storage of securities, remittance of funds,
and transfer of assets that are paid to overseas storage banks, etc.
- Audit expenses are expenses related to audits of the fund to be paid to the auditing
corporation or entity.
- For expenses incurred other than those described above, concrete items shall be listed andthe nature of services shall be described.
(Unit type and open type investment trusts)(Note 2) Figures less than 1 yen are rounded off for each item.
In the case of the family fund method, the following provisory clause shall be indicated after (Note 1):“Trading commissions, securities transaction taxes and other expenses include, of the amount paid by
the mother fund incorporated by this fund, the amount corresponds to the fund.”

B. Considerations in Labeling Details of Expenses per 10,000 Units
Points to consider when listing the calculation method of (Note 1) and real numbers(a) Trading commissions, securities transaction taxes and other expenses during the period shall be inunits of 1,000 yen. (Amounts less than 1 unit omitted)–17–

(b) The average number of units of beneficial interest during the period is the simple average of thenumber of units remaining as of the end of each month. The unit is 1,000 units. (In the case of afund whose principal is 1 yen per unit, the unit for indicating the base value)(c) Trading commissions, securities transaction taxes and other expenses per 10,000 units arerounded off to the nearest yen.
(d) The average base value during the period is a simple average as of the end of each month.
(e) Conversion of foreign currencies into Japanese yen shall be made in the following manner:
Trading commissions, securities transaction taxes and other expenses are the total amount ofJapanese currency converted at the medium price as of the end of each month (closing date forthe month to which the settlement date belongs).
(f) Trading commissions, securities transaction taxes and other expenses during the period shall becalculated by adding the amount of each mother fund attributable to baby funds, which shall becalculated in accordance with the statement of dividend income based on the amount paid directly
by baby funds.
(g) When such amount is negative (minus), put (-) in the table.
(h) For funds with an accounting period of less than 6 months, quantities (a) through (e) of eachaccounting period shall be calculated and the total amount for the past 6 months before the end of
preparation shall be listed. However, it may also be indicated for each settlement of accounts.
(i) For funds with an accounting period of 6 months or more, the preceding period may also be
indicated.
(j) With respect to direct sales-only funds, it is not necessary to indicate the Seller in Trust fees.
(k) For the (c) trading commissions and (d) securities transaction taxes of a fund of funds, the amountof commissions and transaction taxes related to the purchase and sale of investment trust
securities shall be indicated.
(l) With regard to investment target funds, a note to the effect that “expenses for each item do notinclude expenses paid by the investment trust securities (excluding the mother fund) incorporated
in this fund” shall be made.
In addition, in accordance with the status of each fund, the note for stating “Those for which“Details of Expenses per 10,000 Units” as of the end of the most recent accounting period of suchinvestment trust certificates can be acquired shall be indicated in the “Summary of Top-Ranked
Incorporated Funds,” shall be attached and the itemized expenses shall be made available forreference.
(m) The “Ratio” column shall be accompanied by a note to the effect that “each amount of expenses
per 10,000 units is divided by the average base value during the period and multiplied by 100.”(n) In cases such as the amount of expenses other than storage expenses and audit expenses incurredamong other expenses is relatively large, notes on the contents of individual and specific expenses
shall be entered as necessary.

–18–

(5) (Reference Information) Total Expense Rate
A. Form Examples

Total expense rate ((i) + (ii) + (iii))

0.90%(i) Ratio of expenses of this fund

0.75%(ii) Ratio of investment management expenses of the investment
target funds(iii) Ratio of non-investment management expenses of theinvestment target funds

0.10%

0.05%

(Note 1) Expenses in (i) are calculated using the simplified method for details of expenses per 10,000
Units.
(Note 2) Each expense, in principle, does not include subscription fees, trading commissions andsecurities transaction taxes.
(Note 3) Each percentage is calculated on an annual basis.
(Note 4) Investment target funds is the investment trust security (excluding the mother fund) that are–19–

incorporated by this fund.
(Note 5) Expenses in (i) include expenses paid by the mother fund and do not include expenses paid by theinvestment target funds.
(Note 6) The period for which expenses in (i) and expenses in (ii) and (iii) are included may differ.
(Note 7) Figure is calculated on the above premises. For this reason, these values are for information onlyand differ from the ratio of actual expenses incurred.

B. (Reference Information) Considerations in Labeling the Total Expense Rate(a) The ratio of investment management expenses and other expenses shall be the ratio (per annum)of each expense during the period used in the details of expenses per 10,000 Units.
(b) When there are investment target funds, notes shall be provided on the matters in (Note 4) through(Note 6).
(c) For a fund of funds, the total sum of (i) Ratio of expenses of this fund (the value obtained, inprinciple, by subtracting the rate of subscription fees, trading commissions and securities
transaction taxes from the total listed in “Details of Expenses per 10,000 Units” and calculating
this rate on an annual basis), (ii) Ratio of investment management expenses of the investment
target fund (the simplified method in which the value obtained by subtracting the rate of“investment management expenses (trust fees) of this fund” from the rate of “substantial
investment management expenses (trust fees)” listed in the prospectus (hereinafter referred to as
the “investment management expenses rate (simplified)”) may be used.) and (iii) Ratio of
non-management and administrative expenses of the investment target fund (excluding, inprinciple, subscription fees, trading commissions, and securities transaction taxes) (thesimplified method, in which the rate obtained by subtracting the investment management
expenses rate (simplified) from the total expense rate of the investment target fund in question),
may also be used.) shall be indicated in a pie graph as the total expenses ratio.
In making such entries, such information shall be disclosed in as much detail as possible, andsuch necessary notes as those in (Note 7) shall be made so as not to cause misunderstanding to
the beneficiary.
When (iii) Ratio of expenses other than management and administrative expenses of theinvestment target fund cannot be assessed, the name of the disclosure item shall be “expense
rate (excluding expenses other than management and administrative expenses of the investment
target fund)” and it shall be noted to the effect that “in some cases, there may be expenses otherthan the investment management expenses in the investment target fund which are not includedin the above.”(d) For funds other than a fund of funds, the above table shall be omitted.

–20–

(6) Status of Trades and Transactions
A. Form Examples(a) Direct investment funds
A. Shares
Fund with an accounting period of less than 6 months

Trading in the Past 6 Months (from MM/DD/YYYY to MM/DD/YYYY)
Settlement Period__th Period to __th Period
Purchased
Sold
Number ofAmountNumber ofAmountSharesShares〇Thousand shares Thousands of yen

Domestic

ListedUnlisted()

U.S.A.

Hundred shares

Foreign

U.K.
……………
Unlisted,
Unregistered(U.S.A.)()

Thousands of
USD
Thousand pounds

Thousand shares Thousands of yen()

Hundred shares

Thousand………

()

Thousands of
USD
Thousand pounds
Thousand………

(Note 1) The amount is the price for delivery.
(Note 2) Figures in () are increases or decreases resulting from allocation of new shares, stock conversion, merger,etc., and are not included in the figures in the upper part.

Funds with an accounting period of 6 months or more〇

Trading Status During the Fiscal Period (from MM/DD/YYYY to MM/DD/YYYY)
Purchased
Sold
Number of
Number ofAmountAmountSharesSharesDomesticThousand shares Thousands of yen

Listed()()

Thousand shares Thousands of yen

(

)

(

)

Unlisted

Foreign

U.S.A.
U.K.
……………
Unlisted,
Unregistered(U.S.A.)

Hundred shares

Thousands of
USD
Thousand pounds
Thousand………

Hundred shares

Thousands of
USD
Thousand pounds
Thousand………

(Note 1) The amount is the price for delivery.
(Note 2) Figures in () are increases or decreases resulting from allocation of new shares, stock conversion, merger,etc., and are not included in the figures in the upper part.

–21–

B. Stock Options CertificatesFund with an accounting period of less than 6 months

Settlement
Period__th Period to __th Period
Purchased
Number ofAmountCertificates
Certificates Thousands of yen

Domestic

Sold
Number ofAmountCertificates
Certificates Thousands of yen(

Foreign

U.S.A.
U.K.

)

(

)

Thousands of
USD
Thousand pounds

Thousands of
USD
Thousand pounds

Thousand………

Thousand………

……

(Note 1) The amount is the price for delivery.
(Note 2) Figures in () indicate increases or decreases due to exercise of rights and expiration of exercise period, and are

not included in the figures in the upper part.

Funds with an accounting period of 6 months or more

Purchased
Number ofAmountCertificates
Domestic
Foreign

U.S.A.
U.K.
……

Certificates Thousands of yen

Sold
Number ofAmountCertificates
Certificates Thousands of yen

(

)

(

)

Thousands of
USD
Thousand pounds

Thousands of
USD
Thousand pounds

Thousand………

Thousand………

(Note 1) The amount is the price for delivery.
(Note 2) Figures in () indicate increases or decreases due to exercise of rights and expiration of exercise period, and are

not included in the figures in the upper part.

–22–

C. Option Certificates, etc.
Fund with an accounting period of less than 6 months

Settlement
Period__th Period to __th Period
Purchased
Number ofAmountCertificates
Certificates Thousands of yen

Domestic

Sold
Number ofAmountCertificates
Certificates Thousands of yen(

Foreign

U.S.A.
U.K.

)

(

)

Thousands of
USD
Thousand pounds

Thousands of
USD
Thousand pounds

Thousand………

Thousand………

……

(Note 1) The amount is the price for delivery.
(Note 2) Figures in () indicate increases or decreases due to exercise of rights and expiration of exercise period, and are

not included in the figures in the upper part.

Funds with an accounting period of 6 months or more

Purchased
Number ofAmountCertificates
Domestic
Foreign

U.S.A.
U.K.
……

Certificates Thousands of yen

Sold
Number ofAmountCertificates
Certificates Thousands of yen

(

)

(

)

Thousands of
USD
Thousand pounds

Thousands of
USD
Thousand pounds

Thousand………

Thousand………

(Note 1) The amount is the price for delivery.
(Note 2) Figures in () indicate increases or decreases due to exercise of rights and expiration of exercise period, and are

not included in the figures in the upper part.

–23–

D. Corporate Bonds with Stock Options (Convertible Bonds)
Fund with an accounting period of less than 6 months

Settlement
Period__th Period to __th Period
Purchased
Face Value
AmountDomestic

Sold
Face Value
AmountThousands of yen Thousands of yen Thousands of yen Thousands of yen

(

)

(

)

ForeignThousands ofThousands ofThousands ofThousands of
U.S.A.
USD
USD
USD
USD
U.K. Thousand pounds Thousand pounds Thousand pounds Thousand pounds……

Thousand……… Thousand……… Thousand……… Thousand………

(Note 1) The amount is the price for delivery (excluding accrued interest).
(Note 2) Figures in () indicate the decrease due to the exercise of options and are not included in the figures in theupper part.

Funds with an accounting period of 6 months or more

Purchased
Face Value
AmountDomestic

Sold
Face Value
AmountThousands of yen Thousands of yen Thousands of yen Thousands of yen

(

)

(

)

ForeignThousands ofThousands ofThousands ofThousands of
U.S.A.
USD
USD
USD
USD
U.K. Thousand pounds Thousand pounds Thousand pounds Thousand pounds……

Thousand……… Thousand……… Thousand……… Thousand………

(Note 1) The amount is the price for delivery (excluding accrued interest).
(Note 2) Figures in () indicate the decrease due to the exercise of options and are not included in the figures in theupper part.

–24–

E. Public and Corporate Bonds
Fund with an accounting period of less than 6 months

Settlement Period

Thousands of yen

Thousands of yen()

Thousands of USD

Thousands of USD()

Thousand pounds

Thousand pounds()

Thousand………

Thousand………
()

U.S.A.

National
government bondcertificates
Municipal bondDomestic certificatesSpecial bondcertificates
Corporate bondcertificates
National
government bondcertificates
Municipal bondcertificatesSpecial bondcertificates
Corporate bondcertificates
National
government bondcertificates
Municipal bondcertificatesSpecial bondcertificates
Corporate bondcertificates
National
government bondcertificates
Municipal bondcertificatesSpecial bondcertificates
Corporate bondcertificates__th Period to __th Period
Purchase Price
Sell Price

U.K.

Foreign…………

(Note 1) The amount is the price for delivery (excluding accrued interest).
(Note 2) Figures in () indicate the decrease due to reimbursement and are not included in the figures in the upper part.

(Note 3) Corporate bonds do not include corporate bonds with stock options (convertible bonds).

–25–

Funds with an accounting period of 6 months or more

Domestic
U.S.A.
U.K.

Foreign…………

National
government bondcertificates
Municipal bondcertificatesSpecial bondcertificates
Corporate bondcertificates
National
government bondcertificates
Municipal bondcertificatesSpecial bondcertificates
Corporate bondcertificates
National
government bondcertificates
Municipal bondcertificatesSpecial bondcertificates
Corporate bondcertificates
National
government bondcertificates
Municipal bondcertificatesSpecial bondcertificates
Corporate bondcertificates

Purchase Price

Sell Price

Thousands of yen

Thousands of yen()

Thousands of USD

Thousands of USD()

Thousand pounds

Thousand pounds()

Thousand………

Thousand………
()(Note 1) The amount is the price for delivery (excluding accrued interest).
(Note 2) Figures in () indicate the decrease due to reimbursement and are not included in the figures in the upper part.

(Note 3) Corporate bonds do not include corporate bonds with stock options (convertible bonds).

–26–

F. Investment Trust Beneficiary Certificates, Investment Securities
Fund with an accounting period of less than 6 months

Settlement
Period__th Period to __th Period
Number of Units

Purchase Price

Thousand units

Number of Units

Thousands of yen

Domestic(Thousand units)

Sell Price
Thousands of yen()

Thousands of USD

Thousands of USD()

Thousand pounds

Thousand pounds()

Thousand………

Thousand………
()

U.S.A.
Foreign

U.K.
……

(Note 1) The amount is the price for delivery.
(Note 2) Figures in () indicate the decrease due to reimbursement and are not included in the figures in the upper part.

Funds with an accounting period of 6 months or more

Number of Units

Purchase Price

Thousand units

Domestic

Number of Units

Thousands of yen()

Thousand units

Sell Price
Thousands of yen()

Thousands of USD

Thousands of USD()

Thousand pounds

Thousand pounds()

Thousand………

Thousand………
()

U.S.A.
Foreign

U.K.
……

(Note 1) The amount is the price for delivery.
(Note 2) Figures in () indicate the decrease due to reimbursement and are not included in the figures in the upper part.

–27–

G. Investment Equity Subscription Right CertificatesFund with an accounting period of less than 6 months

Settlement
Period__th Period to __th Period
Purchased
Number of
Certificates

Sold
AmountNumber of
Certificates

Domestic(

Amount)()

U.S.A.
Foreign

U.K.
・・・・(Note 1) The amount is the price for delivery.
(Note 2) Figures in () indicate increases or decreases due to exercise of rights and expiration of exercise period, and are

not included in the figures in the upper part.

Funds with an accounting period of 6 months or more

Settlement
Period__th Period to __th Period
Purchased
Number of
Certificates

Sold
AmountDomestic

Number of
Certificates()

Amount()

U.S.A.
Foreign

U.K.
・・・・(Note 1) The amount is the price for delivery.
(Note 2) Figures in () indicate increases or decreases due to exercise of rights and expiration of exercise period, and are

not included in the figures in the upper part.

–28–

H. Other Securities
Fund with an accounting period of less than 6 months

Settlement Period
Domestic

Commercial papers__th Period to __th Period
Purchase Price
Sell Price
Thousands of yen

Thousands of USD

Thousands of USD

Thousand pounds

Thousand pounds

Thousand………

Thousand………

Beneficial interest of monetaryclaims trust

U.S.A.
U.K.

ForeignThousands of yen-

Negotiable certificates ofdeposits
Commercial papers
Loan trust beneficiary
securities
Beneficial interest ofmonetary claims trust
Negotiable certificates ofdeposits
Commercial papers
Loan trust beneficiary
securities
Beneficial interest ofmonetary claims trust
Negotiable certificates ofdeposits
Commercial papers
Loan trust beneficiary
securities
Beneficial interest ofmonetary claims trust(Note) The amounts are prices for delivery.

–29–

Funds with an accounting period of 6 months or more

Domestic

Commercial papers

Purchase Price

Sell Price

Thousands of yen

Thousands of yen

Thousands of USD

Thousands of USD

Thousand pounds

Thousand pounds

Thousand………

Thousand………

Beneficial interest of monetaryclaims trust
U.S.A.
U.K.

Foreign-

Negotiable certificates ofdeposits
Commercial papers
Loan trust beneficiary
securities
Beneficial interest ofmonetary claims trust
Negotiable certificates ofdeposits
Commercial papers
Loan trust beneficiary
securities
Beneficial interest ofmonetary claims trust
Negotiable certificates ofdeposits
Commercial papers
Loan trust beneficiary
securities
Beneficial interest ofmonetary claims trust(Note) The amounts are prices for delivery.

–30–

I Monetary Claims
Fund with an accounting period of less than 6 months

Settlement
Period__th Period to __th Period
Type

Purchase Price

Sell Price

Foreign

Domestic
U.S.A.
U.K.

Thousands of yen

Thousands of yen

Thousands of USD

Thousands of USD

Thousand pounds

Thousand pounds……

Thousand………

Thousand………

Funds with an accounting period of 6 months or more

Type

Purchase Price

Sell Price

Foreign

Domestic
U.S.A.
U.K.

Thousands of yen

Thousands of yen

Thousands of USD

Thousands of USD

Thousand pounds

Thousand pounds……

Thousand………

Thousand………

J. Promissory Notes
Fund with an accounting period of less than 6 months

Settlement
Period__th Period to __th Period
Purchase Price

Sell Price

Thousands of yen

Thousands of yen

U.S.A.

Thousands of USD

Thousands of USD

U.K.

Thousand pounds

Thousand pounds……

Thousand………

Thousand………

Domestic
ForeignFunds with an accounting period of 6 months or more

Purchase Price

Sell Price

Foreign

DomesticThousands of yen

Thousands of yen

U.S.A.

Thousands of USD

Thousands of USD

U.K.

Thousand pounds

Thousand pounds……

Thousand………

Thousand………

–31–

K. Instruments
Fund with an accounting period of less than 6 months〇 Trading in the Past 6 Months (From MM/DD/YYYY to MM/DD/YYYY)
Settlement Period
By Type__th Period to __th Period
Purchased
Sold
Quantity
AmountQuantity
AmountThousands of USD

Thousands of USD

U.S.A.

Gold
Azuki
beans

Thousand pounds

Thousand pounds

U.K.

Gold
Azuki
beans

Thousand ...

Thousand ...

…

…

… … … …

Foreign Currency

Thousands of yen…

Japanese
Currency

Thousands of yen

Gold
Azuki beans(Note1) The amounts are prices for delivery.
(Note2) Quantity shall be indicated on a voluntary basis.

Funds with an accounting period of 6 months or more

〇 Trading Status during the Fiscal Period (From MM/DD/YYYY to MM/DD/YYYY)
Purchased
Quantity
AmountBy TypeSold
Quantity

AmountThousands of USD

Thousands of USD

U.S.A.

Gold
Azuki
beans

Thousand pounds

Thousand pounds

U.K.

Gold
Azuki
beans

Thousand ...

Thousand ...

Gold
Azuki beans…

…

… … … …

Foreign Currency

Thousands of yen…

Japanese
Currency

Thousands of yen(Note1) The amounts are prices for delivery.
(Note2) Quantity shall be indicated on a voluntary basis.

–32–

L. Trading Status of Futures by Type
Fund with an accounting period of less than 6 months

Settlement Period
By Type

Foreign

Stock futures transactions
Bond futures transactions
Instrument futurestransactions

Millions ofyenMillions ofyenMillions ofyenMillions ofyen…

Domestic

Stock futures transactions
Bond futures transactions
Instrument futurestransactions__th Period to __th Period
Buy contracts
Sell contracts
New
Settlement New sell Settlement
purchase
price
price
price
price

…

(Note) The amounts are prices for delivery.

Funds with an accounting period of 6 months or more

By Type

Foreign

Stock futures transactions
Bond futures transactions
Instrument futurestransactions

Millions ofyenMillions ofyen…

Domestic

Stock futures transactions
Bond futures transactions
Instrument futurestransactions

Buy contracts
New
Settlement
purchase
price
price

…
(Note) The amounts are prices for delivery.

–33–

Sell contracts
New sell
price

Settlement
price

Millions ofyenMillions ofyenM. Trading Status of Options by Type
Fund with an accounting period of less than 6 months

Settlement Period__th Period to __th Period
Buy contracts

By Type
Stock index
optiontransaction
Individual
stock option
transaction

By
New
Expiration
Settlement Exercise Waiver New sell Settlement Exercise
call/put purchaseofprice of rights of rights priceprice of rights
price
obligation
Call
Put

Millionsof yenMillions ofyenMillionsof yen

Call
Put
Call
Put

Interest rate

Call
Put

Currency

Call
Put

Instrument
index option
transaction

Call
Put

…

Domestic

Bond option
transaction

Call
Put

Stock index
optiontransaction
Individual
stock option
transaction

Sell contracts

Call
Put
Call
Put
Call
Put

Interest rate

Call
Put

Currency

Call
Put

Instrument
index option
transaction

Call
Put

…

Foreign

Bond option
transaction

Call
Put

(Note) The amounts are prices for delivery.

–34–

Millionsof yenMillionsof yenMillions ofyenMillionsof yenMillions ofyenFunds with an accounting period of 6 months or more

By Type
Stock index
optiontransaction
Individual
stock option
transaction

Buy contracts
Sell contracts
By
New
Expiration
Settlement Exercise Waiver New sell Settlement Exercise
call/put purchaseofprice of rights of rights priceprice of rights
price
obligation
Call
Put

Millions ofyenMillionsof yen

Call
Put
Call
Put

Interest rate

Call
Put

Currency

Call
Put

Instrument
index option
transaction

Call
Put

…

Domestic

Bond option
transaction

Call
Put

Stock index
optiontransaction
Individual
stock option
transaction

Millionsof yen

Call
Put
Call
Put
Call
Put

Interest rate

Call
Put

Currency

Call
Put

Instrument
index option
transaction

Call
Put

…

Foreign

Bond option
transaction

Call
Put

(Note) The amounts are prices for delivery.

–35–

Millionsof yenMillionsof yenMillions ofyenMillionsof yenMillions ofyenN. Transaction Status of Swaps and Forwards
Fund with an accounting period of less than 6 months〇

Contract Prices for Swaps and Forward Transaction
Type__th Period to __th Period
Contract Price

Interest rate

Millions of yen

Currency
Forward rate
Forwardcurrency
Forward
instrument…
(Note) The amounts are prices for delivery.

Funds with an accounting period of 6 months or moreType

Current Period
Contract Price

Interest rate

Millions of yen

Currency
Forward rate
Forwardcurrency
Forward
instrument…
(Note) The amounts are prices for delivery.

–36–

(b) Indirect investment funds
Fund with an accounting period of less than 6 months〇

Inception and Early Cancellation of Mother Fund Beneficiary Securities(From MM/DD/YYYY to MM/DD/YYYY)
Settlement
Period__th Period to __th Period
Inception
Units
Amount

Early Cancellation
Units
AmountThousand units Thousands of yen

Thousand units Thousands of yen___ Mother___ Mother___ MotherFunds with an accounting period of 6 months or more〇

Inception and Early Cancellation of Mother Fund Beneficiary Securities(From MM/DD/YYYY to MM/DD/YYYY)
Inception
Early Cancellation
Units
AmountUnits
AmountThousand units Thousands of yen

Thousand units Thousands of yen___ Mother___ Mother___ Mother–37–

B. Labeling Considerations
Funds with an accounting period of less than 6 months will be shown by totaling the trading status forthe past 6 months before the end of the preparation period of the investment report. However, suchinformation may be indicated for each settlement period.
(a) Direct investment funds(i) The table to be displayed shall be categorized by assets, and displayed in the order of: shares,
stock options certificates, option certificates, corporate bonds with stock options (convertible
bonds), public and corporate bonds, investment trust beneficiary certificates and investment
securities, investment equity subscription right certificates, other securities, monetary claims,
promissory notes, instruments, futures, options, swaps and forward transactions.
(ii) Indicate each separately for domestic and foreign countries.
(iii) For assets not applicable, omit the table and incrementally increase the number in ().

(iv) The amount denominated in foreign currencies that is converted into Japanese yen shall becalculated in the following manner:
The trade amount during the period is the total amount of Japanese currency converted at themedian rate as of the end of each month (or as of the closing date for the month to which theclosing date belongs).
(v) H Other Securities shall be indicated on a voluntary basis and may be omitted.
(vi) Quantity of K Instruments shall be indicated on a voluntary basis and may be omitted.
(vii) L Trading Status of Futures by Type and M Trading Status of Options by Type may be omitted
in the case of funds that actively use derivatives when (6) Trading Status of Derivatives ispresented separately.
(viii) Investment trust beneficiary certificates and investment securities shall be indicated by issue.
(b) Indirect investment funds
In the event that the baby fund has directly incorporated therein, indication of (a) direct
investment fund shall be applied mutatis mutandis, and thereafter the establish and earlycancellation of the mother fund beneficiary certificates for each issue shall be indicated.

–38–

(7) Trading Status of Derivatives(Funds that actively utilize derivatives)
A. Form Examples
A. Futures Transactions and Balances by Issue

Fund with an accounting period of less than 6 months

Settlement Period__th Period to __th Period
Appraised value at the end of
Buy contracts
Sell contracts
preparation period
New
Buy
Sell
Valuation
Settlement New sell Settlement
purchase
contract contract profit or
price
price
price
price
amount amountloss

By IssueSharesMillions ofyenMillions ofyenMillions of
yen

……

Bonds

Nikkei 225
Nikkei 300

Domestic…

Instruments…

…

S&P 500

Foreign

Bonds
Instruments…

………… …

Shares–36–

Millions ofyenMillions ofyenMillions ofyenMillions ofyenFunds with an accounting period of 6 months or more

Appraised value at the end of theperiodNew
Buy
Sell
Valuation
Settlement New sell Settlement
purchase
contract contract profit or
price
price
price
price
amount amountloss
Buy contracts

By IssueNikkei 225
SharesMillions ofyenMillions ofyen

Nikkei 300
……

Bonds

Millions ofyen

Sell contracts

Domestic…

Instruments…

…

S&P 500

Bonds
Foreign Instruments…………

Shares…

…

–37–

Millions ofyenMillions ofyenMillions ofyenMillions ofyenB. Options Transactions and Balances by Issue
Fund with an accounting period of less than 6 months
Settlement Period__th Period to __th Period
Buy contracts

Nikkei225

Call Millions Millions of Millions Millions Millions Millions of Millionsof yenyenof yenPut

Nikkei300
Individual
share
…

Bonds
Domestic…
Instruments

…

…

Call
S&P 500
Put
SharesIndividual
share
…

Bonds

…

Instruments…

Foreign

Appraised value at the endof preparation period

By
New
New
Expiration Buy
Sell Valuation
call/put
Settlement Exercise Waiver
Settlement Exercise
purchase
sellofcontract contract profit or
price of rights of rights
price of rights
price
price
obligation amount amount loss

By IssueSharesSell contracts

…

…

–38–

of yenof yenyenof yenMillions Millions Millions Millions ofof yen of yen of yenyenFunds with an accounting period of 6 months or more

Buy contracts

Nikkei225

Call Millions Millions of Millions Millions Millions Millions of Millionsof yenyenof yenPut

Nikkei300
Individual
share
…

Bonds
Domestic…
Instruments

…

…

Call
S&P 500
Put
SharesIndividual
share
…

Bonds

…

Instruments…

Foreign

Appraised value at the endof preparation period

By
New
New
Expiration Buy
Sell Valuation
call/put
Settlement Exercise Waiver
Settlement Exercise
purchase
sellofcontract contract profit or
price of rights of rights
price of rights
price
price
obligation amount amount loss

By IssueSharesSell contracts

…

…

–39–

of yenof yenyenof yenMillions Millions Millions Millions ofof yen of yen of yenyenB. Labeling Considerations(a) Each item shall be indicated separately for domestic and foreign countries.
(b) Amounts denominated in foreign currencies that are converted into Japanese yen shall becalculated in the following manner:
The trade amount during the period is the total amount of Japanese currency converted at themedian rate as of the end of each month (or as of the closing date for the month to which theclosing date belongs).
(c) Individual stock options may be disclosed either by issue or by total amount.
However, in the case of disclosure by total amount, (w) Period-end balance of individual stock
options by issue in (13) Description of Incorporated Assets shall be applied correspondingly.
(d) For funds whose accounting period is less than 6 months, the amount of transactions during thepast 6 months before the end of preparation period of the investment report and the transactionsbalance at the end of the preparation period shall be indicated. However, such information may
be indicated for each settlement period.

(8) Share Trading Ratio
A. Form Examples(a) Direct investment funds
Fund with an accounting period of less than 6 months〇

Ratio of Share Trading Amount to Average Market Value of Incorporated ShareItem__th Period to __th Period(a) Amount of shares traded during theperiod(b) Average market value of incorporated
shares during the period

Thousands of yen(c) Trading volume ratio (a)/(b)Funds with an accounting period of 6 months or more〇

Ratio of Share Trading Amount to Average Market Value of Incorporated Share
Item

Current Period(a) Amount of shares traded during theperiod(b) Average market value of incorporated
shares during the period(c) Trading volume ratio (a)/(b)Thousands of yen–40–

(b) Indirect investment funds
Fund with an accounting period of less than 6 months〇

Ratio of Share Trading Amount to Average Market Value of Incorporated Share__th Period to __th Period

Item

Baby Fund(a) Amount of shares traded during the period

Mother Fund

Thousands of yen

Thousands of yen(b) Average market value of incorporated
shares during the period(c) Trading volume ratio (a)/(b)Funds with an accounting period of 6 months or more〇

Ratio of Share Trading Amount to Average Market Value of Incorporated Share
Current Period

Item

Baby Fund(a) Amount of shares traded during the period

Mother Fund

Thousands of yen

Thousands of yen(b) Average market value of incorporated
shares during the period(c) Trading volume ratio (a)/(b)B. Labeling Considerations(a) The trading volume ratio is rounded down to 2nd decimal places.
(b) The amount of shares traded during the period shall not include any capital increase or dividend
shares. The unit is thousands of yen. (Amounts less than 1 unit omitted)(c) The average market value of incorporated shares during the period shall be the simple average
excluding the number of months with no balance at the end of the month. The unit is thousandsof yen. (Amounts less than 1 unit omitted)(d) Foreign currency-denominated shares shall be converted into Japanese yen in the following
manner:- The amount of share trading during the period is the total amount of Japanese currency
converted at the medium price as of the end of each month (or as of the closing date for themonth to which the closing date belongs).
- The average market value of incorporated shares during the period is the total amount ofJapanese currency converted at the median rate as of the end of each month.
(e) In the case of an indirect investment fund:The share trading ratio of the baby funds and each such mother fund shall be indicated. The
accounting period (*) shall be the accounting period (*) of the baby fund.
If the current date as of presentation of the incorporated securities is the end of the month–41–

preceding the month in which the settlement date of the baby fund falls, the period foraccounting the share trading amount (*) may be up to the end of the previous month.
In addition, in the event of trust termination, this period may be from the day following theindicated current date of the immediately preceding settlement of the baby fund (in the case offunds with an accounting period of less than 6 months, the end of the preceding preparation
period) to the last day of the month preceding the month in which the day when theincorporation of the beneficiary certificate of the mother fund beneficiary certificates becomeszero falls upon.
(f) For funds whose accounting period is less than 6 months, the trading volume ratio for the past 6months before the end of the investment report preparation period shall be shown in total.
However, such information may be indicated for each settlement period.

(*) For funds with an accounting period of less than 6 months, the period of the past 6 months before
the end of preparation period of the investment report shall be used.

(9) Major Issues Traded
A. Form Examples
A. Shares
Fund with an accounting period of less than 6 months〇

Major Issues Traded in the Past 6 Months__th Period
Purchased

Issue

NumberAmountof Shares
Thousand Thousands
sharesof yen__th Period
Sold

Purchased

Sold

Average
Average
Average
Average
NumberNumberNumberunit Issue
Amountunit Issue
Amountunit Issue
Amountunitof Sharesof Sharesof Shares
price
price
price
price
Yen

Thousand Thousands
sharesof yenYen–42–

Thousand Thousands
sharesof yenYen

Thousand Thousands
sharesof yenYenFunds with an accounting period of 6 months or more〇

Major Issues Traded During the Period

Issue

Current Period
Purchased
Number of
Average unit
AmountIssue
Sharesprice
Thousand Thousands
sharesof yenYen

Sold
Number of
Average unit
AmountSharesprice
Thousand Thousands
sharesof yenYen

B. Corporate Bonds with Stock Options (Convertible Bonds)
Fund with an accounting period of less than 6 months__th Period__th Period

Purchased
Issue

AmountThousands of
yen

Sold
Issue

Purchased
AmountIssue

Thousands of
yen

–43–

AmountThousands of
yen

Sold
Issue

AmountThousands ofyenFunds with an accounting period of 6 months or more
Purchased
Issue
AmountSold
Issue

Thousands ofyen

AmountThousands ofyen

B. Labeling Considerations(a) Price for delivery of the top 10 or so issues (domestic and foreign brands may be included) shallbe indicated.
(b) Those denominated in foreign currencies shall be indicated on a yen basis.
(c) Major investment targets shall be classified by incorporated securities, and the order ofpresentation shall be in the order of shares, stock options certificates, option certificates,
corporate bonds with stock options (convertible bonds), and public and corporate bonds. The
form for public and corporate bonds shall be the same as that of corporate bonds with stock
options (convertible bonds), and tables for those not applicable thereto may be omitted.
(d) For funds whose accounting period is less than 6 months, major issues traded during the past 6months before the end of the preparation period for the investment report shall be indicated foreach settlement period. However, such information may be totaled and indicated for each issueduring the preparation period.
(e) Major issues traded shall be subject to voluntary indication and may be omitted.

–44–

(10) Status of Transactions with Interested Parties
A. Form Examples(a) Direct investment funds
A. Status of Transactions with Interested Parties
Fund with an accounting period of less than 6 months〇

Status of Transactions with Interested Parties in the Past 6 Months
Settlement Period__th Period to __th Period

Category

Purchaseamount, etc.
A

SharesStock options certificates
Option certificates, etc.
Public and corporate bonds
Corporate bonds with stock
options (convertible bonds)
Corporate bonds with stock
options (corporate bonds withstock subscription warrants)
Other securities……
Stock futures transactions
Stock option transactions
Bond futures transactions
Bond option transactions
Other futures transactions
Other option transactions……
Deposits
Negotiable certificates of deposit
Monetary trusts
OthersRepurchase agreements (publicand corporate bonds)
Repurchase agreements (othersecurities)
Repurchase agreements(negotiable certificates of deposit)
Monetary claims
Promissory notes
Beneficial interests
Silent partnership equity
Trusts issuing beneficiary
certificates……

Millions of yen

Sales amount,
etc.

Status of
trading withinterested
parties B

B/A

Millions of yen

%

–45–

C
Millions of yen

Status of
trading withinterested
parties D

D/C

Millions of yen%Funds with an accounting period of 6 months or more〇

Status of Transactions with Interested Parties During the Current Period
Current Period
Category

Purchaseamount, etc.
A

SharesStock options certificates
Option certificates, etc.
Public and corporate bonds
Corporate bonds with stock
options (convertible bonds)
Corporate bonds with stock
options (corporate bonds withstock subscription warrants)
Other securities……
Stock futures transactions
Stock option transactions
Bond futures transactions
Bond option transactions
Other futures transactions
Other option transactions……
Deposits
Negotiable certificates of deposit
Monetary trusts
OthersRepurchase agreements (publicand corporate bonds)
Repurchase agreements (othersecurities)
Repurchase agreements(negotiable certificates of deposit)
Monetary claims
Promissory notes
Beneficial interests
Silent partnership equity
Trusts issuing beneficiary
certificates……

Millions of yen

Sales amount,
etc.

Status of
trading withinterested
parties B

B/A

Millions of yen

%

–46–

C
Millions of yen

Status of
trading withinterested
parties D

D/C

Millions of yen%

B. Securities Issued by Interested Parties
Fund with an accounting period of less than 6 months

Purchase
Price

Type

Millions of yen
SharesStock options
certificates
Option certificates, etc.
Corporate bonds withstock options(convertible bonds):__th Period to __th Period
Sell Price
Amount held at theend of the
preparation period
Millions of yen

Millions of yen

Funds with an accounting period of 6 months or more

Type

Purchase
Price

Millions of yen
SharesStock options
certificates
Option certificates, etc.
Corporate bonds withstock options(convertible bonds):

Current Period
Amount held at the
Sell Priceend of the
preparation period
Millions of yen

Millions of yen

C. Securities Issued with the Financial Instruments Business Operator, Which is an Interested
Party, Acting as the Managing Underwriter
D. Securities Issued for Which the Financial Instruments Business Operator or Financial Institution
That is an Interested Party Becomes the Representative Handling the Private Placement

Fund with an accounting period of less than 6 months

Type
SharesStock options
certificates
Option certificates, etc.
Corporate bonds withstock options(convertible bonds):__th Period to __th Period
Purchase amountMillions of yen–47–

Funds with an accounting period of 6 months or more

Current Period
Purchase amountType
SharesStock options
certificates
Option certificates, etc.
Corporate bonds withstock options(convertible bonds):

Millions of yen

E. Ratio of Payment to Interested Parties to Total Trading Commissions
Fund with an accounting period of less than 6 months

Ratio of Payments to Interested Parties in the Past 6 Months
Item__th Period to __th Period
Thousands of yen
Total trading commissions (A)Of which, payments to interested
parties (B)%(B)/(A)〇

Funds with an accounting period of 6 months or more

Ratio of Payments to Interested Parties During the Current Period
Item
Current Period
Thousands of yen
Total trading commissions (A)Of which, payments to interested
parties (B)%(B)/(A)〇(b) Indirect investment funds
The form shall conform to that of a direct investment fund.

B. Labeling Considerations(a) The amount shall be indicated as the price for delivery.
(b) Interested parties shall be noted in the margin as follows:“An interested party is an interested party as defined in Article 11, Paragraph 1 of the Act on
Investment Trusts and Investment Corporations, and an interested party for the fund for theperiod under review is ○○○○, ○○○○…..”(c) From “A. Status of Transactions with Interested Parties” to “E. Ratio of Payment to Interested
Parties to Total Trading Commissions” shall apply correspondingly to funds of funds.
(d) In the case of an indirect investment fund, such amount shall be indicated by securities in the–48–

order of baby fund (if directly incorporated) and each mother fund.
For A, the corresponding period (accounting period for a baby fund or each accounting period
for a fund whose accounting period is less than 6 months) is clearly noted, with the average
holding ratio indicated in the margin as follows:“Average holding ratio ○.○%* The average holding ratio is the ratio of the number of units held by the mother fund of thebaby fund to the total number of remaining units of the mother fund. ”
In addition, E is noted as follows:“Total trading commissions include, of the amount paid by the mother fundincorporated to this fund, the amount corresponding to the fund.”(e) Omitted where not applicable.
(f) The method of conversion of foreign currencies into Japanese yen shall be as follows:
The trade amount during the period is the total amount of Japanese currency converted at themedian rate as of the end of each month (or as of the closing date for the month to which theclosing date belongs).
(g) Securities issued by an interested party include negotiable certificates of deposit.
(h) With regard to C and D, the amount of acquisition thereof shall be indicated in cases where C or
D is actually acquired through application for acquisition by the issue date thereof and where C
or D is acquired within 30 days after the issue date thereof.
(i)

For funds whose accounting period is less than 6 months, the status of transaction withinterested parties during the past 6 months before the end of preparation of the investment reportshall be indicated in the aggregate. However, such information may also be presented for eachsettlement period during the preparation period.

(j)Regarding the share columns for A, B and C, listed or registered shares and unlisted or
unregistered shares may be separately indicated.

–49–

(11) Status of Proprietary Tradings Conducted by the Management Company Which Concurrently Operates a
Type I Financial Instruments Business, a Type II Financial Instruments Business, or an Instrument
Transactions Brokerage Business
A. Form Examples
Fund with an accounting period of less than 6 months
Settlement Period
Category

Securities
Securities futures transactions
Securities index futurestransactions
Securities option transactions
Securities forward transactions
Over-the-counter securities index
forward transactions
Over-the-counter securities option
transactions
Financial futures transactions
Over-the-counter financial futurestransactions
Instruments
Instrument futures transactions
Instrument index futurestransactions
Instrument index option
transactions__th Period to __th Period
Purchased
Sold
Purchase Of which, status
Of which, status
Sell PricePriceof proprietaryof proprietary(B)/(A)(C)
trading (B)trading (D)(A)
Millionsof yenMillions of yen･･
Transactions in foreign markets
similar to the above

–50–

(%)

Millionsof yenMillions of yen(D)/(C)(%)

Funds with an accounting period of 6 months or more
Current Period
Category

Purchased
Purchase Of which, status
Priceof proprietary(A)
trading (B)Securities
Securities futures transactions
Securities index futurestransactions
Securities option transactions
Securities forward transactions
Over-the-counter securities index
forward transactions
Over-the-counter securities option
transactions
Financial futures transactions
Over-the-counter financial futurestransactions
Instruments
Instrument futures transactions
Instrument index futurestransactions
Instrument index option
transactions

Millionsof yenMillions of yen(B)/(A)(%)

Sold
Of which, status
Sell Priceof proprietary(C)
trading (D)Millionsof yen(D)/(C)

Millions of yen(%)

･･
Transactions in foreign markets
similar to the above

B. Labeling Considerations(a) The total amount of trading commissions paid to the investment trust management company
shall be noted in the margin.
(b) For swaps and forward transactions, the amount of the transaction and the ratio to the total
amount shall be noted in the margin.
(c) For funds whose accounting period is less than 6 months, the status of proprietary trading during
the past 6 months before the end of the investment report preparation period shall be indicated in
total. However, such information may also be presented for each settlement period during the
preparation period.
(d) It is not necessary to indicate categories in which proprietary trading is not conducted.

–51–

(12) Status of Self-Acquisition and Disposition of the Beneficiary Certificates of Investment Trusts theManagement Company Itself Established or Investment Securities of an Investment Corporation
A. Indication Examples○ Status of In-house Establishment and Early Cancellation of This Fund
Beginningbalance(principal)

Principal
Principal
Balance at end of
established for cancelled early
periodReason for transaction
the period during the period (principal)

Millions of yen

Millions of yen

Millions of yen

Millions of yen

B. Labeling Considerations(a) The reasons for transactions shall be indicated separately for the matters set forth in each item of
Article 6-2, Paragraph 1 of the Rules on Full Members’ Business Operations, etc.
(b) For funds whose accounting period is less than 6 months, the balance at the beginning and theend of the preparation period of the investment report and the amount of establishment and earlycancellation during the preparation period shall be presented in the same manner as the example.

(13) Description of Incorporated Assets
A. Form Examples(a) Domestic shares
A. Listed Shares
Fund with an accounting period of less than 6 months〇

Statement of Incorporated Securities
End of the __thPreparation Period
Issue
Number of Shares___ industry (##, #%)
Issue
…
Issue
___ industry (##, #%)
Issue
…
Issue

Thousand shares

End of the __thPreparation Period
Number of Appraised
sharesvalue
ThousandsharesThousands ofyen

Number of shares,
amount
Total
Number of issues<percentage>(Note 1) Figures in (shares.
(Note 2) Figures in <<%>) in the issue column indicate the ratio of each type of industry to the total appraised value of domestic> in the total column indicate the ratio of the appraised value to the total amount of net assets.

–52–

Funds with an accounting period of 6 months or more〇Statement of Incorporated Securities
Beginning of Period
End of Current Period(End of previous period)
Issue
Number of Shares
Thousand shares___ industry (##, #%)
Issue
…
Issue
___ industry (##, #%)
Issue
…
Issue
Number of shares,
amount
Total
Number of issues<percentage>

Number of Appraised
sharesvalue
ThousandsharesThousands of
yen

<

%>

(Note 1) Figures in (shares.

) in the issue column indicate the ratio of each type of industry to the total appraised value of domestic(Note 2) Figures in <> in the total column indicate the ratio of the appraised value to the total amount of net assets.

B. Unlisted Shares
Fund with an accounting period of less than 6 months〇

Statement of Incorporated Securities
End of the __thPreparation Period

End of the __thPreparation Period

Number of Shares

Number of Appraised
shares
value

Issue

Thousand shares___ industry (##, #%)○○ issue…
○○ issueThousandsharesThousands ofyen

Number of shares,
amount
Total
Number of issues<percentage><%>(Note 1) Figures in (shares.

) in the issue column indicate the ratio of each type of industry to the total appraised value of domestic(Note 2) Figures in <> in the total column indicate the ratio of the appraised value to the total amount of net assets.

–53–

Funds with an accounting period of 6 months or more〇Statement of Incorporated Securities
Beginning of Period
End of Current Period(End of previous period)

Issue

Number of Shares
Thousand shares___ industry (##, #%)○○ issue…
○○ issueNumber of shares,
amount
Total
Number of issues<percentage>

Number of Appraised
sharesvalue
ThousandsharesThousands of
yen

<

%>

(Note 1) Figures in (shares.

) in the issue column indicate the ratio of each type of industry to the total appraised value of domestic(Note 2) Figures in <> in the total column indicate the ratio of the appraised value to the total amount of net assets.

(b) Foreign Shares
A. Listed, Registered Shares–54–

Fund with an accounting period of less than 6 months〇

Statement of Incorporated Securities
End of the__th
End of the __th Preparation Period
Preparation
PeriodIssue(U.S.A. ………NewYork market)
Issue
…
Issue

Appraised Value
Number of
SharesNumber ofAmountAmount in
Sharesdenominate
Japanesed in foreignyencurrency

Hundred shares

Hundred shares

Thousands of
USD

Industry

Thousands ofyen

Sub total

Number of shares,
amountNumber of issues<percentage>

–

Total

%>

<

%>

<

%>

Thousandpounds(U.K. ………London
market)
Issue
…
…
Issue
Sub total<

Number of shares,
amountNumber of issues<percentage>–

Number of shares,
amount–Number of issues<percentage>–(Note 1) The amount converted into Japanese yen is calculated by converting the market value at the end of the period into
Japanese yen at the Telegraphic Transfer Middle Rate (TTM) for customers in Japan.
(Note 2) The value in <> is the ratio of the appraised value of share from each country to total net assets.

–55–

Funds with an accounting period of 6 months or more〇Statement of Incorporated Securities
Beginning of
Period (End of
previous
period)End of Period

Issue(U.S.A. ………NewYork market)
Issue
…
…
Issue

Appraised Value
Number of
SharesNumber ofAmountAmount in
Sharesdenominate
Japanesed in foreignyencurrency

Hundred shares

Hundred shares

Thousands of
USD

Industry

Thousands ofyen

Sub total

Number of shares,
amountNumber of issues<percentage>–
Thousandpounds(U.K. ………London
market)
Issue
…
…
Issue

<

%>

Thousands ofyen

Sub total

Number of shares,
amount

Total

Number of issues<percentage>–

Number of shares,
amount–Number of issues<percentage>

–

<

%>

<

%>

(Note 1) The amount converted into Japanese yen is calculated by converting the market value at the end of the period into
Japanese yen at the Telegraphic Transfer Middle Rate (TTM) for customers in Japan.
(Note 2) The value in <> is the ratio of the appraised value of share from each country to total net assets.

–56–

B. Unlisted, Unregistered Share
Fund with an accounting period of less than 6 months〇

Statement of Incorporated Securities
End of the__th
End of the __th Preparation Period
Preparation
PeriodIssue
Appraised Value
AmountNumber of
Number ofAmount indenominate
SharesSharesJapanesed in foreignyencurrency
Hundred shares

Thousands of
USD

Thousands ofyen

Sub total

–

<

%>

Sub total(U.S.A.)
Issue
…
…
Issue
Number of shares,
amountNumber of issues<percentage>
○○
Issue
…
…
Issue
Number of shares,
amountNumber of issues<percentage>
Number of shares,
amountNumber of issues<percentage>

Hundred shares

–

<

%>

<

%>

Total

–
–

(Note 1) The amount converted into Japanese yen is calculated by converting the market value at the end of the period into
Japanese yen at the Telegraphic Transfer Middle Rate (TTM) for customers in Japan.
(Note 2) The value in <> is the ratio of the appraised value of share from each country to total net assets.

–57–

Funds with an accounting period of 6 months or more〇Statement of Incorporated Securities
Beginning of
Period (End of
previous
period)Issue
Number of
SharesAppraised Value
AmountNumber ofAmount indenominate
SharesJapanesed in foreignyencurrency

Hundred shares

Hundred shares

Thousands of
USD

Thousands ofyen

Sub total

–

<

%>

Sub total(U.S.A.)
Issue
…
…
Issue
Number of shares,
amountNumber of issues<percentage>
○○
Issue
…
…
Issue
Number of shares,
amountNumber of issues<percentage>
Number of shares,
amountNumber of issues<percentage>

End of Period

–

<

%>

<

%>

Total

–
–

(Note 1) The amount converted into Japanese yen is calculated by converting the market value at the end of the period into
Japanese yen at the Telegraphic Transfer Middle Rate (TTM) for customers in Japan.
(Note 2) The value in <> is the ratio of the appraised value of share from each country to total net assets.

–58–

(c) Domestic Stock Options CertificatesFund with an accounting period of less than 6 months

Statement of Incorporated Securities
End of the __thPreparation Period

End of the __th Preparation
PeriodIssue
Number of Certificates
Certificates○○ issue…
○○ issueNumber of
Certificates

Appraisedvalue

Certificates Thousandsof yenNumber of certificates,
amount
Total
Number of issues<percentage>(Note) Figures in <<%>> in the total column indicate the ratio of appraised value to total net assets.

Funds with an accounting period of 6 months or moreStatement of Incorporated Securities

Issue

Beginning of Period
End of Current Period(End of previous period)
Number of Certificates
Certificates○○ issue…
…
○○ issue

Total

Number of Appraised
Certificates
value
CertificatesThousands ofyen

Number of certificates,
amountNumber of issues<percentage>(Note) Figures in <<%>> in the total column indicate the ratio of appraised value to total net assets.

–58–

(d) Foreign Stock Options CertificatesFund with an accounting period of less than 6 months

Statement of Incorporated Securities
End of the__thPreparation
PeriodEnd of the __th Preparation Period

Appraised Value
AmountNumber of Number ofAmount indenominatedCertificates CertificatesJapanese
in foreignyencurrency

Issue

Certificates(U.S.A.)
Issue
…
…
Issue

CertificatesThousands of
USD

Thousands ofyen

Sub total

Number ofcertificates, amount
Number of issues<percentage>

–

Total

%>

<

%>

<

%>

Thousandpounds(U.K.)
Issue
…
…
Issue
Sub total<

Number ofcertificates, amount
Number of issues<percentage>–

Number ofcertificates, amount–

Number of issues<percentage>–(Note 1) The amount converted into Japanese yen is calculated by converting the market value at the end of the period into
Japanese yen using the Telegraphic Transfer Middle Rate (TTM) for customers in Japan.
(Note 2) The value in <> is the ratio of the appraised value by each country to total net assets.

–59–

Funds with an accounting period of 6 months or moreStatement of Incorporated Securities
Beginning of
Period (End of
previous
period)Issue

End of Current Period

Appraised Value
Number of Number ofAmountAmount in
Certificates Certificates denominated Japanese
in foreignyen
Certificates

CertificatesThousands of
USD

Thousands ofyen(U.S.A.)
Issue
…
…
Issue
Sub total

Number ofcertificates, amount
Number of issues<percentage>

–

Total

%>

<

%>

<

%>

Thousandpounds(U.K.)
Issue
…
…
Issue
Sub total<

Number ofcertificates, amount
Number of issues<percentage>–

Number ofcertificates, amount–

Number of issues<percentage>–(Note 1) The amount converted into Japanese yen is calculated by converting the market value at the end of the period into
Japanese yen at the Telegraphic Transfer Middle Rate (TTM) for customers in Japan.
(Note 2) The value in <> is the ratio of the appraised value by each country to total net assets.

–60–

(e) Domestic Option CertificatesFund with an accounting period of less than 6 months

Statement of Incorporated Securities
End of the __thPreparation Period

End of the __thPreparation Period

Number of Certificates

Number of Appraised
Certificates
value

Issue

Certificates

Certificates○○ issue…
○○ issueThousands ofyen

Number of certificates,
amount
Total
Number of issues<percentage>(Note) Figures in <<%>> in the total column indicate the ratio of appraised value to total net assets.

Funds with an accounting period of 6 months or moreStatement of Incorporated Securities

Issue

Beginning of Period
End of Current Period(End of previous period)
Number of Certificates
Certificates○○ issue…
…
○○ issueNumber of Appraised
Certificates
value
CertificatesThousands ofyen

Number of certificates,
amount
Total
Number of issues<percentage>(Note) Figures in <<%>> in the total column indicate the ratio of appraised value to total net assets.

–61–

(f) Foreign Option CertificatesFund with an accounting period of less than 6 months

Statement of Incorporated Securities
End of the__thPreparation
PeriodEnd of the __th Preparation Period

Appraised Value
AmountNumber of Number ofAmount indenominatedCertificates CertificatesJapanese
in foreignyencurrency

Issue

Certificates(U.S.A.)
Issue
…
…
Issue

CertificatesThousands of
USD

Thousands ofyen

Sub total

Number ofcertificates, amount
Number of issues<percentage>

–

Total

%>

<

%>

<

%>

Thousandpounds(U.K.)
Issue
…
…
Issue
Sub total<

Number ofcertificates, amount
Number of issues<percentage>–

Number ofcertificates, amount–

Number of issues<percentage>–(Note 1) The amount converted into Japanese yen is calculated by converting the market value at the end of the period into
Japanese yen using the Telegraphic Transfer Middle Rate (TTM) for customers in Japan.
(Note 2) The value in <> is the ratio of the appraised value by each country to total net assets.

–62–

Funds with an accounting period of 6 months or moreStatement of Incorporated Securities
Beginning of
Period (End of
previous period)

End of Current Period
Appraised Value

Issue

Number of
Certificates

Certificates

Certificates

Sub total(U.S.A.)
Issue
…
Issue
Number ofcertificates, amount

Number of
Certificates

Sub total

Number of issues<percentage>(U.K.)
Issue
…
Issue
Number ofcertificates, amountAmountAmount indenominated inJapanese yen
foreign currency
Thousands of USD

Thousands of
yen

–

Total

<

%>

<

%>

<

%>

Thousand pounds

Number of issues<percentage>–

Number ofcertificates, amount–

Number of issues<percentage>–(Note 1) The amount converted into Japanese yen is calculated by converting the market value at the end of the period into
Japanese yen at the Telegraphic Transfer Middle Rate (TTM) for customers in Japan.
(Note 2) The value in <> is the ratio of the appraised value by each country to total net assets.

(g) Domestic Corporate Bonds with Stock Options (Convertible Bonds)
Statement of Incorporated Securities
End of the __th Preparation Period
Face Value
Appraised Value

Issue

Thousands of yen

Issue
…
Issue

Thousands of yen

Amount
Total

Number of issues<percentage>(Note) Figures in <<%>> in the total column indicate the ratio of the appraised value to total net assets.

–63–

(h) Foreign Corporate Bonds with Stock Options (Convertible Bonds)
Statement of Incorporated Securities
End of the __th Preparation Period
Appraised Value
Face ValueIn Foreign
Amount in
Currency
Japanese yen

Issue

Thousands of USD

Thousands of USD

Sub
total

(U.S.A.)
Issue
…
Issue
AmountNumber of issues<percentage>(U.K.)
Issue
…
Issue
AmountThousands of yen<
Thousand pounds

Thousand pounds

Sub
total
Total

Number of issues<percentage>
AmountNumber of issues<percentage>%>

Thousands of yen

<

%>

<

%>

(Note 1) The amount converted into Japanese yen is calculated by converting the market value at the end of the period into
Japanese yen at the Telegraphic Transfer Middle Rate (TTM) for customers in Japan.
(Note 2) The value in <> is the ratio of the appraised value to total net assets.

(i) Public and Corporate Bonds
A. Disclosures by Bond Type(A) Domestic (denominated in Japanese currency) Public and Corporate Bonds
Statement of Incorporated Securities

Preparation Period
Category

Face
Value

End of the __th Preparation Period
Of which, ratio
Ratio of incorporation by
Appraised
Ratio ofof incorporation
remaining periods
value
incorporation of BB rating or 5 years or 2 years or Less than 2
below
more
more
years

Thousands Thousands of
Nationalof yenyen
government bondcertificates
Municipal bondSpecial bond(Excluding
financial bonds)
Financial bonds
Corporate bonds
with stock options(convertible bonds)
Straight bonds
Total

%

%

%

%

%

(Note) The incorporation ratio is the ratio of the appraised value to total net assets. (However, the total asset amount may also be
used for open type public and corporate bond investment trusts.)–64–

(B) Foreign Public and Corporate Bonds (Denominated in Foreign Currency)Statement of Incorporated Securities

Preparation
PeriodEnd of the __th Preparation Period

Ratio of incorporation by
Of which,remaining periods
ratio of
Face
Ratio ofAmountCategory
incorporation
Value denominated Amount in incorporation
5 years or 2 years or Less thanof BB rating
in foreign Japanese yen
more
more
2 years
or below
currency
Thousand Thousand USD Thousands of yen
%
%
%
%
%
U.S.A.
Appraised Value

U.K.

USD
Thousandpounds…
Total

Thousandpounds––(Note 1) The amount converted into Japanese yen is calculated by converting the market value at the end of the period into
Japanese yen at the Telegraphic Transfer Middle Rate (TTM) for customers in Japan.
(Note 2) Ratio of incorporation is the ratio of the appraised value to total net assets (however, the total amount of assets may also
be used for open type public and corporate bond investment trusts).

B. Individual Issue Disclosure (Denominated in Japanese and Foreign Currencies)(A) Domestic (denominated in Japanese currency) Public and Corporate Bonds
Statement of Incorporated Securities

Preparation
PeriodIssue

End of the __th Preparation Period
Rate(National
government bonds)

Face Value

Appraised Value

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Redemption
Date

Sub total–(Municipal bonds)–

Sub total

–

(・・・)

–

Sub total
Total

–
–

–
–

–65–

(B) Foreign (Denominated in Foreign Currency) Public and Corporate Bonds
Statement of Incorporated Securities

Preparation
PeriodEnd of the __th Preparation Period
Appraised Value

Issue

Type

Rate

AmountFace
Redemption
denominated
In Japanese
Value
Date
in foreignyencurrency(U.S.A.)

Thousands of
USD

Issue
Sub total–––(U.K.)––

ThousandpoundsIssue
Sub total

–

–

–

Issue
Sub total
Total

–
–

–
–

–
–

Thousands of
yen

–

–

Thousand ...

(・・)

Thousands ofyen

Thousand ...

–
–

–
–

(j) Domestic Investment Trust Beneficiary Certificates and Investment Securities
Fund with an accounting period of less than 6 months

Statement of Incorporated Securities
Issue

End of the __thPreparation Period
Number of Units

Issue

Thousand units

End of the __th Preparation Period
Number of Units
Thousand units

Appraised value
Thousands of yen

…



Issue
Total

AmountNumber of issues<percentage>(Note) Figures in <

<

%>

<

%>

> in the total column indicate the ratio of the appraised value to total net assets.

–66–

Funds with an accounting period of 6 months or moreStatement of Incorporated Securities
Issue

Beginning of Period(End of previous
period)Number of Units

Number of Units

Appraised value

Thousand units

Thousand units

Thousands of yen

<

<

Issue
…
Issue
AmountNumber of issues<percentage>

Total(Note) Figures in <End of Current Period%>%>> in the total column indicate the ratio of the appraised value to total net assets.

(k) Foreign Investment Trust Beneficiary Certificates and Investment Securities
Fund with an accounting period of less than 6 months

Statement of Incorporated Securities

Issue(U.S.A.)
Issue
Issue
Sub total

AmountNumber of issues<percentage>

(UK)
Issue
Issue
Sub total

Total

AmountNumber of issues<percentage>
AmountNumber of issues<percentage>

End of the __thPreparation
PeriodEnd of the __th Preparation Period

AmountAmount in
Number of Units Number of Units denominated inJapanese yen
foreign currency
Thousand units

Thousand units

<%>

<%>

Thousand units

Thousand units

<%>

<%>

Thousands of USD

Thousands of yen

Thousand pounds

Thousands of yen

–
–

<%>

<%>

–

(Note 1) The amount converted into Japanese yen is calculated by converting the market value at the end of the period into
Japanese yen using the Telegraphic Transfer Middle Rate (TTM) for customers in Japan.
(Note 2) Figures in < > indicate the ratio of appraised value of investment trust beneficiary certificates and investment securities
by each country to total net assets.

–67–

Funds with an accounting period of 6 months or moreStatement of Incorporated Securities
Beginning of
Period (End of
previous period)

End of Current Period

Issue
Number of
Units(U.S.A.)
Issue
Issue
Sub total

AmountNumber of issues<percentage>(U.K.)Issue
Issue
Sub total

Total

AmountNumber of issues<percentage>
AmountNumber of issues<percentage>

Number of
Units

Thousand units

Thousand units

<%>

<%>

Thousand units

Thousand units

<%>

<%>

AmountAmount indenominated inJapanese yen
foreign currency
Thousands of USD

Thousands of yen

Thousand pounds

Thousands of yen

–
–

<%>

<%>

–

(Note 1) The amount converted into Japanese yen is calculated by converting the market value at the end of the period into
Japanese yen using the Telegraphic Transfer Middle Rate (TTM) for customers in Japan.
(Note 2) Figures in < > indicate the ratio of appraised value of investment trust beneficiary certificates and investment securities
by each country to total net assets.

–68–

(l) Investment Equity Subscription Right CertificatesFund with an accounting period of less than 6 months

Statement of Incorporated Securities
Issue

End of the __thPreparation Period

End of the __th Preparation Period

Number of Certificates Number of Certificates

Appraised value○○ issue…
○○ issue

Total

Number ofcertificates, amount
Number of issues<percentage>(Note) Figures in <<%>> in the total column indicate the ratio of the appraised value to total net assets.

Funds with an accounting period of 6 months or moreStatement of Incorporated Securities

Issue

Beginning of Period(End of previous
period)End of Current Period

Number of Certificates Number of Certificates

Appraised value○○ issue…
…
○○ issue

Total

Number ofcertificates, amount
Number of issues<percentage>(Note) Figures in <<> in the total column indicate the ratio of the appraised value to total net assets.

–69–

%>

(m) Details of Japanese Currency-Denominated Funds Incorporated by a Fund of Funds
Fund Name

End of Current Period
Appraised Value

Number of units
units

Stock funds
○○○○
○○○○

Ratio

Millions of yen%

Sub total
Bond funds
○○○○
○○○○
Sub total
Real estate funds
○○○○
○○○○
Sub total…
Total(Note) The value in the percentage column is the percentage to net asset.

(n) Details of Foreign Currency-Denominated Funds Incorporated by a Fund of Funds
Fund Name
Stock funds
○○○○
○○○○

Number of
units
units

End of Current Period
Appraised ValueIn Foreign
Amount in Japanese
Currencyyen
Thousands of USD
Thousand pounds……

Sub total
Bond funds
○○○○
○○○○
Sub total
Real estate funds
○○○○
○○○○
Sub total…
Total(Note) The value in the percentage column is the percentage to net asset.

–70–

Millions of yen

Ratio
%

(o) Other Domestic SecuritiesStatement of Incorporated Securities
End of the __th Preparation Period
Appraised value

Ratio

Thousands of yen

Commercial papers
Loan trust beneficiary rights(Note) The value in <

(%)

<
<

>
>

> indicates the ratio of the appraised value to total net assets.

(p) Other Foreign SecuritiesStatement of Incorporated Securities
End of the __th Preparation Period
AmountAmount indenominated in
Ratio
Japanese yen
foreign currency

Classification(U.S.A.)
Negotiable certificates ofdepositCommercial papers
Loan trust beneficiary
securities
Beneficial interest ofmonetary claims trust
Sub total(U.K.)
Negotiable certificates ofdepositCommercial papers
Loan trust beneficiary
securities
Beneficial interest ofmonetary claims trust
Sub total(Foreign total)
Negotiable certificates ofdepositCommercial papers
Loan trust beneficiary
securities
Beneficial interest ofmonetary claims trust
Total

Thousands of USD

Thousands of yen

Thousand pounds

–
–
–
–

–

(%)

<
<
<
<

>
>
>
>

<
<
<
<
<

>
>
>
>
>

<
<
<
<
<

>
>
>
>
>

<

>

(Note 1) The amount converted into Japanese yen is calculated by converting the market value at the end of the period into
Japanese yen using the Telegraphic Transfer Middle Rate (TTM) for customers in Japan.
(Note 2) The value in <> indicates the ratio of the appraised value to total net assets.

–71–

(q) Monetary Claims
End of the __th Preparation Period
Type

Total Receivables
Thousands of yen

Domestic

End of the __th Preparation Period
Total Receivables
Type
In Foreign
Amount in
Currency
Japanese yen
Forei
gn

U.S.A.
U.K.
………

Thousands of USD

Thousands of yen

Thousand pounds

Thousands of yen

Thousand ...

Thousands of yen(r) Promissory Notes
End of the __th Preparation
PeriodReceivable amountThousands of yen

Domestic

End of the __th Preparation Period
Receivable amount
In Foreign Currency
Amount in Japanese yen
Foreign

U.S.A.

Thousands of USD

Thousands of yen

U.K.

Thousand pounds

Thousands of yen

Thousand ...

Thousands of yen

………

–72–

(s) Beneficial Interests, Silent Partnership Equity, and Beneficiary Certificate Issuing Trusts- The main content of each item shall be added.
End of the __th Preparation Period
Type

Appraised Value
Thousands of yen

Beneficial interests

Thousands of yen

Silent Partnership Equity

DomesticThousands of yen

Beneficiary certificate
issuing trusts

U.S.A.

Foreign

U.K.

……………

End of the __th Preparation Period
Appraised ValueType
In Foreign
Amount in
Currency
Japanese yen
Thousands of USD
Thousands of yen
Beneficial interests
Thousands
of
USD
Thousands of yen
Silent Partnership
EquityBeneficiary certificate Thousands of USD Thousands of yen
issuing trusts
Thousand pounds
Thousands of yen
Beneficial interests
ThousandpoundsThousands of yen
Silent Partnership
EquityThousands of yen
Beneficiary certificate Thousand pounds
issuing trusts
Thousand ...
Thousands of yen
Beneficial interests
Thousand...
Thousands of yen
Silent Partnership
EquityThousand ...
Thousands of yen
Beneficiary certificate
issuing trusts(t) Period-end balance by instrument
A. Instruments in Japanese Yen
Fund with an accounting period of less than 6 months

Statement of Incorporated Instruments

By TypeEnd of the __thPreparation
PeriodQuantity

End of the __th Preparation
PeriodQuantity

Appraised
Value
Thousands of yen

Gold
Azuki beans…
Total(Note) Figures in <Amount<percentage>––> in the total column indicate the ratio of the appraised value to total net assets.

–73–

<

%>

Funds with an accounting period of 6 months or moreStatement of Incorporated Instruments

By Type

Beginning of
Period (End of
previous period)
Quantity

End of Current Period
Quantity

Appraised
Value
Thousands of yen

Gold
Azuki beans…
Amount<percentage>

Total(Note) Figures in <

–

–

<

%>

> in the total column indicate the ratio of the appraised value to total net assets.

B. Instruments Denominated in Foreign Currencies
Fund with an accounting period of less than 6 months

Statement of Incorporated Instruments
End of the __thPreparation
PeriodEnd of the __th Preparation Period

By Type
Quantity

Quantity

Appraised Value
Amountdenominated
Amount inin foreign
Japanese yen
currency
Thousands of
USD(U.S.A.)Gold
Azuki beans

Thousands of yen…
Sub total

Amount<percentage>

–

–

(○ ○)

<

%>

Thousands of yen

Gold
Azuki beans…
Sub total
Total

Amount<percentage>
Amount<percentage>

–
–

–

<

%>

–

<

%>

(Note 1) The amount converted into Japanese yen is calculated by converting the market value at the end of the period into
Japanese yen at the Telegraphic Transfer Middle Rate (TTM) for customers in Japan.
(Note 2) The value in <> is the ratio of the instrument appraised value of each country to total net assets.

–74–

Funds with an accounting period of 6 months or moreStatement of Incorporated Instruments
Beginning of
Period (End of
previous period)

End of Current Period

By Type
Quantity

Quantity

Appraised Value
Amountdenominated
Amount inin foreign
Japanese yen
currency
Thousands of
USD(U.S.A.)Gold
Azuki beans

Thousands of yen…
Sub total

Amount<percentage>

–

–

(○ ○)

<

%>

Thousands of yen

Gold
Azuki beans…
Sub total
Total

Amount<percentage>
Amount<percentage>

–
–

–

<

%>

–

<

%>

(Note 1) The amount converted into Japanese yen is calculated by converting the market value at the end of the period into
Japanese yen at the Telegraphic Transfer Middle Rate (TTM) for customers in Japan.
(Note 2) The value in <> is the ratio of the instrument appraised value of each country to total net assets.

–75–

(u) Period-End Balance of Futures Transactions by IssueStatement of Incorporated Securities
By Issue

End of the __th Preparation Period
Purchase priceSell priceMillions of yen

Millions of yen

Nikkei Stock Average

Nikkei 300

TOPIX

Domestic

Futures 50

Standard government
bonds

Currency

Instruments…………

S&P 500

Foreign

Instruments…………

(Note) Appraised value denominated in foreign currencies is calculated by converting the market value at the end of the period
into Japanese yen at the medium price at the end of the preparation period.

–76–

(v) Period-End Balance of Options by Issue
By Issue

By call/put

Nikkei 225
SharesNikkei 300
TOPIX

Bonds

Domestic

Interest rate

Currency

Instruments…

S&P 500
SharesForeign

Bonds

Instruments

T-BOND

Call
Put
Call
Put
Call
Put
Call
Put
Call
Put
Call
Put
Call
Put
Call
Put
Call
Put
Call
Put
Call
Put
Call
Put
Call
Put
Call
Put
Call
Put
Call
Put
Call
Put
Call
Put
Call
Put

End of the __th Preparation Period
Purchase priceSell priceMillions ofyenMillions of yen

…

Call
Put

(Note) Appraised value denominated in foreign currencies is calculated by converting the market value at the end of the period
into Japanese yen at the medium price at the end of the preparation period.

–77–

(w) Period-End Balance of Individual Stock Options by IssueStatement of Incorporated Securities
By
call/put

By Issue

Purchase priceMillions of yen

Sell priceMillions of yen

…

○○○○

Foreign

○○○○
○○○○
…

Domestic○○○○

End of the __th Preparation Period(Note) Appraised value denominated in foreign currencies is calculated by converting the market value at the end of the period
into Japanese yen at the medium price at the end of the preparation period.

(x) Balance of Swaps and Forward Transactions
Contract Balance
Notional amount of principal at end of the__th preparation periodTypemillion yen…

Interest rate
Currency
Forward rate
Forward currency
Forward instrument
Total(y) Balance of Mother Fund
Fund with an accounting period of less than 6 months

〇Statement of Incorporated Securities

Type

End of the __thPreparation Period
Units____ Mother____ Mother____ MotherEnd of the __th Preparation Period
Units

Appraised value

Thousand units

Thousand units

Thousands of yen

Thousand units

Thousand units

Thousands of yen

Thousand units

Thousand units

Thousands of yen–78–

Funds with an accounting period of 6 months or more〇Statement of Incorporated Securities
Beginning of Period(End of previous period)
Units

Type

End of Current Period
Units____ MotherThousand units

Thousand units____ MotherThousand units

Thousand units____ MotherThousand units

Thousand units

Appraised value
Thousands of yen
Thousands of yen
Thousands of yen

B. Labeling Considerations(a) A statement of incorporated assets shall be prepared for each asset.
(b) The order of indication shall be as follows: shares, stock options certificates, option certificates,
corporate bonds with stock options (convertible bonds), public and corporate bonds, investment
trust beneficiary certificates and investment securities, investment equity subscription rightcertificates, other securities, monetary claims, promissory notes, beneficial interests, silent
partnership equity, trusts issuing beneficiary certificates, instruments, futures, options, swaps,
forward transactions, and mother funds.
(c) Domestic shares shall be classified by industry and indicated by issue.
(d) In the case of a fund mainly invests in corporate bonds with stock options (convertible bonds),
corporate bonds with stock options (convertible bonds) shall be indicated by issue, separatelyfrom straight bonds. When corporate bonds with stock options (convertible bonds) are indicatedseparately by issue, they shall be omitted from example presentations of (A) Domestic(denominated in Japanese currency) and (B) Foreign (denominated in foreign currency) bonds
indicated in A. Disclosures by Bond Type in (i) public and corporate bonds.
(e) For assets not applicable, the table shall be omitted and the number in () incrementally

increased.
In the event that there are absolutely no shares, stock options certificates or option certificates etc.
with the nature of shares in the stock investment trust, such fact shall be stated in the notes.
(f) For the statement of securities of the mother fund, the total number of units of beneficial interest insuch mother fund shall be noted in the margin.
(g) For investment trust beneficiary certificates and investment securities or mother funds, thenumber of units at the end of the previous period and the number of units at the end of the current
period and the appraised value shall be indicated.
(h) For incorporated shares (including stock options certificates and option certificates having thenature of shares), the number of shares (number of certificates) as of the end of the previous
period and the number of shares (number of certificates) as of the end of the current period as wellas the appraised value shall be indicated.
(For funds with an accounting period of less than 6 months, the end of the previous period and the–79–

end of the current period shall be read as the end of the previous preparation period and the end of
the current preparation period.)
For incorporated securities other than shares (including stock options certificates and option
certificates having the nature of shares), a securities statement at the end of the current period
shall be presented in principle, but disclosure of details beyond provisions such as presentation at
the end of the previous period shall be at the discretion of each company.
(i) For funds whose accounting period is less than 6 months, the record for the end of each settlement
period during the last 6 months before the end of such investment report preparation period may
be indicated.
(j) With regard to (Note) in A. Disclosures by Bond Type in (i) public and corporate bonds, this shallnot apply if such rate is likely to make it impossible to accurately indicate the status of the trust
property.
Non-listed bonds may be presented as a breakdown by category.
(k) The types of bonds in the Issue column of (A) Domestic public and corporate bonds in B
Individual Issue Disclosure in (i) public and corporate bonds shall be categorized into national
government bonds, municipal bonds, special bonds (excluding financial bonds), financial bonds,
corporate bonds with stock options (convertible bonds), and straight bonds (including investment
corporation bonds) and other corporate bonds.
(l) With regard to the real estate investment trust to be incorporated, if the operating company or theadministrative trustee company thereof is a settlor company of investment trusts or interested
party thereof who gives instructions for the management of a fund of funds, such fact shall be
indicated by explanatory notes.
(m) For the investment trust securities (excluding real estate investment trusts) incorporated into afund of funds, a statement of incorporated securities for major investment targets shall be
indicated and prepared for the most recent settlement period available for each investment trust(semiannual settlements or quarterly reports may also be acceptable.). In this case, however, therelevant part of the report of the investment trust securities into which the investment is made may
be excerpted (such as top issues and major transactions) and indicated. They may also be shown in
the “Contents of Incorporated Investment Trust Securities” at the end of the items to be indicatedin the investment report.

(14) Status of Margin Transactions
A. Form Examples
Issue

Margin Transactions Short Balance
End of the __th Preparation Period
Number of Shares
Appraised value
Thousand shares

Total

–80–

Thousands of yen

B. Labeling Considerations(a) For funds with an accounting period of less than 6 months, the balance of margin transactions at
the end of each settlement period during the past 6 months before the end of the preparation
period may be indicated.
(b) The status of margin transactions shall be indicated on a voluntary basis and may not be indicated.

(15) Status of Short Selling of Bonds
A. Form Examples
Type

End of the __th Preparation Period
Face Value
Appraised value

National Government
Bonds

Thousands of yen

Thousands of yen

Municipal Bonds
Special Bonds (excluding
financial bonds)
Financial Bonds
Straight Bonds
Total

B. Labeling Considerations(a) For funds with an accounting period of less than 6 months, the status of short selling of bonds atthe end of each fiscal period during the past 6 months before the end of the preparation period
may be indicated.
(b) The status of short selling of bonds shall be indicated on a voluntary basis and may be omitted.

–81–

(17) Composition of Investment Trust Property
A. Form Examples(a) In the case of a direct investment fundComposition of an Investment Trust Property
As of MM/DD/YYYY
Item

SharesStock options certificates
Option certificates, etc.
Corporate Bonds with Stock
Options (Convertible bonds)
Public and corporate bonds
Investment trust beneficiary
certificates
Investment equity subscription
right certificates
Other securities…
Instruments…
Call Loans, and Other
Instruments
Total Amount of Investment
Trust Property

End of the __th Preparation Period
Appraised value
Ratio
Thousands of yen

%

100.0

(Note 1) The amount of assets denominated in foreign currency converted into Japanese yen is calculated by converting themarket value at the end of the period into Japanese yen using the Telegraphic Transfer Middle Rate (TTM) for customers in Japan.
The exchange rate in Japanese yen on MM DD is ___.
(Note 2) The ratio of assets denominated in foreign currencies to the total amount of investment trust property is ___ thousand
yen, ○.○%.

–82–

(b) In the case of an indirect investment fundComposition of an Investment Trust Property

Item

As of MM/DD/YYYY
End of the __th Preparation Period
Appraised value
Ratio

SharesPublic and Corporate Bonds
Other securities…
___ Stock Mother___ Corporate Bond MotherCall Loans, and Other
Instruments
Total Amount of Investment
Trust Property

Thousands of yen

%

100.0

(Note 1) The amount of assets denominated in foreign currency converted into Japanese yen is calculated by converting themarket value at the end of the period into Japanese yen using the Telegraphic Transfer Middle Rate (TTM) for customers in Japan.
The exchange rate in Japanese yen on MM DD is ___.
(Note 2) The ratio of assets denominated in foreign currencies to the total amount of investment trust property is ___ thousand
yen, ○.○% in stock mother funds, and ___ thousand yen, ○.○% in public and corporate bond mother funds.

B. Labeling Considerations(a) Incorporated assets shall be indicated by dividing them into shares, stock options certificates, opt
ion certificates, corporate bonds with stock options (convertible bonds), public and corporate bonds, investment trust beneficiary certificates and investment securities, investment equity subscri
ption right certificates, other securities, monetary claims, promissory notes, beneficial interests,
silent partnership equity, trusts issuing beneficiary certificates, instruments and mother fund ben
eficiary certificates.
(b) For the denominator of the incorporation ratio, the total amount of investment trust property shal
l be indicated in the table.
(c) Other items such as call loans, etc., shall be the amount and ratio of incorporated securities to thetotal amount of the investment trust property.
(d) For the family fund method, the display order shall be directly incorporated funds firstly and foll
owed by the mother fund.
(e) The ratio of the total net assets pertaining to assets denominated in foreign currencies to total inv
estment trust property at the end of the current preparation period shall be noted.
(f) For funds whose accounting period is less than 6 months, the composition of the trust property atthe end of the preparation period of the investment report shall be indicated. However, such infor
mation may also be presented for each settlement period during the preparation period.
(g) Items for assets not applicable shall be omitted.

–83–

(19) Status of Assets, Liabilities, Principal and Base Value and Status of Profit and Loss
A. Indication Examples(a) Unit Type Investment Trusts
Fund with an accounting period of less than 6 months○ Status of Assets, Liabilities, Principal and Base value
As of (MM/DD/YYYY) and (MM/DD/YYYY)
Item

End of __th Period * In case ofredemption:
Yen
Yen [at redemption]

End of __th Period(A) Assets
Call Loans, etc.
Shares (Appraised value)
Stock options certificates(Appraised value)
Option certificates, etc.(Appraisedvalue)
Public and Corporate Bonds(Appraised value)
Investment trust beneficiary
certificates (Appraised value)
Instruments (Appraised value)…
No. __ Stock Fund (Appraisedvalue)
No. __ Public and Corporate Bond
Fund (Appraised value)
Call option (Purchase)
Put option (Purchase)
Accounts Receivable
Accrued Dividends Receivable
Accrued Interest
Prepaid Expenses
Other Accrued Revenue
Guarantee Deposits
Customers’ Margin Deposits…
(B) Liabilities
Call Option (Sell)
Put Option (Sell)
Loans
Accounts Payable
Unpaid Share Subscription
Unpaid Dividends
Redemption Payable
Accrued Trust Fees Payable
Accrued Interest Expenses
Other Accrued Expenses…
(C) Total Net Assets (Note)
Principal
Profit or Loss Carried Forward for
the Next Period[Profit or loss on redemption](D) Total Units of Beneficial Interest
Base Value per Unit (C/D)–[Redemption value per unit (C/D)]

units
Yen

units
Yen
yen sen(Note) Loss or gain on valuation of futures transactions, etc. (XXXX yen) is added to Assets (A) - Liabilities (B).

–84–

Funds with an accounting period of 6 months or more

○ Status of Assets, Liabilities, Principal and Base value
As of (MM/DD/YYYY)
Item

End of Current Period(A) Assets
Call Loans, etc.
Shares (Appraised value)
Stock options certificates(Appraised value)
Option certificates, etc.(Appraisedvalue)
Public and Corporate Bonds(Appraised value)
Investment trust beneficiary
certificates (Appraised value)
Instruments (Appraised value)…
No. __ Stock Fund (Appraisedvalue)
No. __ Public and Corporate Bond
Fund (Appraised value)
Call option (Purchase)
Put option (Purchase)
Accounts Receivable
Accrued Dividends Receivable
Accrued Interest
Prepaid Expenses
Other Accrued Revenue
Guarantee Deposits
Customers’ Margin Deposits…
(B) Liabilities
Call Option (Sell)
Put Option (Sell)
Loans
Accounts Payable
Unpaid Share Subscription
Unpaid Dividends
Redemption Payable
Accrued Trust Fees Payable
Accrued Interest Expenses
Other Accrued Expenses…
(C) Total Net Assets (Note)
Principal
Profit or Loss Carried Forward for
the Next Period[Profit or loss on redemption](D) Total Units of Beneficial Interest
Base Value per Unit (C/D)[Redemption value per unit (C/D)]* In case ofredemption:
Yen [at redemption]

units
Yen
yen sen(Note) Loss or gain on valuation of futures transactions, etc. (XXXX yen) is added to Assets (A) - Liabilities (B).

–85–

Fund with an accounting period of less than 6 months○ Status of Profit and Loss__th Period From MM/DD/YYYY To MM/DD/YYYY__th Period From MM/DD/YYYY To MM/DD/YYYY
Item

End of __th Period(A) Dividend, etc., Income
Dividend Income
Interest Income
Other Revenues
Interest Expenses(B) Gain or Loss on Securities
Transaction
Gain on Sale
Loss on Sale
(C) Gain or Loss on Futures
Transactions, etc.
Gains on Transactions
Loss on Transactions(D) Loss or Gain on Valuation of

End of __th Period

Yen

Yen

-

-

-

-

-

-

-

-

Securities(E) Loss or Gain on Valuation of
Futures Transactions, etc.
(F) Trust Fees, etc.
(G) Subscription Fees
(H) Current Period Profit or Loss (A+B+ C + D + E + F + G)
(I) Profit or Loss Carried Forwardfrom the Previous Period(J) Profit or Loss on Early
Cancellation(K) Total (H + I + J)(L) Dividends
Profit or Loss Carried Forward to
the Next Period (K + L)
[Profit or loss on redemption][Of which, reserve for stock pricefluctuation]…

–86–

Funds with an accounting period of 6 months or more

○ Status of Profit and Loss
Current Period From MM/DD/YYYY To MM/DD/YYYY
Item

Current Period(A) Dividend, etc., Income
Dividend Income
Interest Income
Other Revenues
Interest Expenses(B) Gain or Loss on Securities
Transaction
Gain on Sale
Loss on Sale
(C) Gain or Loss on Futures
Transactions, etc.
Gains on Transactions
Loss on Transactions(D) Loss or Gain on Valuation of

Yen

-

-

Securities(E) Loss or Gain on Valuation of
Futures Transactions, etc.

-

(F) Trust Fees, etc.
(G) Subscription Fees
(H) Current Period Profit or Loss (A+B+ C + D + E + F + G)
(I) Profit or Loss Carried Forward fromthe Previous Period-(J) Profit or Loss on Early Cancellation(K) Total (H + I + J)(L) Dividends
Profit or Loss Carried Forward to
the Next Period (K + L)
[Profit or loss on redemption][Of which, reserve for stock pricefluctuation]…

–87–

(b) Open Type Investment Trusts
Fund with an accounting period of less than 6 months○ Status of Assets, Liabilities, Principal and Base value
As of (MM/DD/YYYY), (MM/DD/ YYYY)
Item

End of __th Period * In case ofredemption:
Yen
Yen [at redemption]

End of __th Period(A) Assets
Call Loans, etc.
Shares (Appraised value)
Stock options certificates(Appraised value)
Option certificates, etc. (Appraisedvalue)
Public and Corporate Bonds(Appraised value)
Equity Securities (Appraised value)
Investment trust beneficiary
certificates (Appraised value)
Other securities (Appraised value)
Instruments (Appraised value)…
Call Option (Purchase)
Put Option (Purchase)
Accounts Receivable
Accrued Dividends Receivable
Accrued Interest
Prepaid Expenses
Other Accrued Revenue
Guarantee Deposits
Customers’ Margin Deposits…
(B) Liabilities
Call Option (Sell)
Put Option (Sell)
Loans
Accounts Payable
Unpaid Share Subscription
Unpaid Dividends
Redemption Payable
Accrued Trust Fees Payable
Accrued Interest Expenses
Securities Received as Customers’
Deposits for Guarantee Deposits
Securities Received as Customers’
Deposits for Customers’ Margin
Other Accrued Expenses…
(C) Total Net Assets (A) - (B)Principal
Profit or Loss Carried Forward for
the Next Period(D) Total Units of Beneficial Interest
Base Value per Unit (C/D)[Redemption value per unit (C/D)]

units
Yen
–

–88–

units
Yen For 1 yen per unit:
yen sen (C/D, unit forindicating base value)Funds with an accounting period of 6 months or more

○ Status of Assets, Liabilities, Principal and Base value
As of (MM/DD/YYYY)
Item

End of Current Period(A) Assets
Call Loans, etc.
Shares (Appraised value)
Stock options certificates(Appraised value)
Option certificates, etc. (Appraisedvalue)
Public and Corporate Bonds(Appraised value)
Equity Securities (Appraised value)
Investment trust beneficiary
certificates (Appraised value)
Other securities (Appraised value)
Instruments (Appraised value)…
Call Option (Purchase)
Put Option (Purchase)
Accounts Receivable
Accrued Dividends Receivable
Accrued Interest
Prepaid Expenses
Other Accrued Revenue
Guarantee Deposits
Customers’ Margin Deposits…
(B) Liabilities
Call Option (Sell)
Put Option (Sell)
Loans
Accounts Payable
Unpaid Share Subscription
Unpaid Dividends
Redemption Payable
Accrued Trust Fees Payable
Accrued Interest Expenses
Securities Received as Customers’
Deposits for Guarantee Deposits
Securities Received as Customers’
Deposits for Customers’ Margin
Other Accrued Expenses…
(C) Total Net Assets (A) - (B)Principal
Profit or Loss Carried Forward for
the Next Period(D) Total Units of Beneficial Interest
Base Value per Unit (C/D)[Redemption value per unit (C/D)]* In case ofredemption:
Yen [at redemption]

units For 1 yen per unit:
Yen (C/D, unit foryen sen indicating base value)–89–Fund with an accounting periodof less than 6 months○ Status of Profit and Loss__th Period From MM/DD/YYYY To MM/DD/YYYY__th Period From MM/DD/YYYY To MM/DD/YYYY
Item

End of __th Period

End of __th Period(A) Dividend, etc., Income
Dividend Income
Interest Income
Other Revenues
Interest Expenses(B) Gain or Loss on Securities
Transaction
Gain on Sale
Loss on Sale
(C) Gain or Loss on Futures
Transactions, etc.
Gains on Transactions
Loss on Transactions(D) Trust Fees, etc.
(E) Current Period Profit or Loss (A+

-

-

-

-

-

-

-

-

B+ C + D)(F) Profit or Loss Carried Forwardfrom the Previous Period(G) Profit or Loss on Open Type Trusts(Equivalent amount for
dividends, etc.)(Equivalent amount for trading
profit or loss)(H) Total (E + F + G)
(I) Dividends
Profit or Loss Carried forward to
the Next Period (H + I)Profit or Loss on Open Type
Trusts(Equivalent amount for
dividends, etc.)(Equivalent amount for trading
profit or loss)[Profit or loss on redemption]
Reserve for Dividends
Profit or Loss Carried Forward…

–90–Funds with an accounting period of 6 months or more

○ Status of Profit and Loss
Current Period From MM/DD/YYYY To MM/DD/YYYY
Item

Current Period(A) Dividend, etc., Income
Dividend Income
Interest Income
Other Revenues
Interest Expenses(B) Gain or Loss on Securities
Transaction
Gain on Sale
Loss on Sale
(C) Gain or Loss on Futures
Transactions, etc.
Gains on Transactions
Loss on Transactions(D) Trust Fees, etc. etc.
(E) Current Period Profit or Loss (A+--B+ C + D)(F) Profit or Loss Carried Forwardfrom the Previous Period(G) Profit or Loss on Open Type Trusts(Equivalent amount for
dividends, etc.)(Equivalent amount for trading
profit or loss)(H) Total (E + F + G)-

(I) Dividends
Profit or Loss Carried Forward to
the Next Period (H + I)Profit or Loss on Open Type
Trusts(Equivalent amount for
dividends, etc.)(Equivalent amount for trading
profit or loss)[Profit or loss on redemption]
Reserve for Dividends
Profit or Loss Carried Forward…

–91–

(c) Bond Investment Trusts
Fund with an accounting period of less than 6 months〇

Status of Assets, Liabilities, Principal and Base Value
As of (MM/DD/YYYY), (MM/DD/ YYYY)
Item

End of __th Period

End of __th Period

Yen

Yen

units
Yen
–

units
Yen
yen sen(A) Assets
Call Loans, etc.
National Government Bonds(Appraised value)
Municipal Bonds (Appraised value)
Special Bonds (Appraised value)
Corporate Bonds (Appraised value)
Investment trust beneficiary
certificates (Appraised value)
Other Securities (Appraised value)…
Call Option (Purchase)
Put Option (Purchase)
Accounts Receivable
Accrued Interest
Accrued Gain Receivable
Prepaid Expenses
Other Accrued Revenue
Customers’ Margin Deposits…
(B) Liabilities
Call Option (Sell)
Put Option (Sell)
Loans
Accounts Payable
Unpaid Dividends
Redemption Payable
Accrued Trust Fees Payable
Securities Received as Customers’
Deposits for Customers’ Margin
Other Accrued Expenses…
(C) Total Net Assets (A) - (B)Principal
Profit or Loss Carried Forward for
the Next Period[Profit or loss on redemption](D) Total Units of Beneficial Interest
Base Value per 10,000 Units (C/D)[Redemption value per 10,000 units(C/D)]–92–* In case of redemption:[at redemption]

Funds with an accounting period of 6 months or more〇

Status of Assets, Liabilities, Principal and Base Value
As of (MM/DD/YYYY)
Item

End of Current Period(A) Assets
Call Loans, etc.
National Government Bonds(Appraised value)
Municipal Bonds (Appraised value)
Special Bonds (Appraised value)
Corporate Bonds (Appraised value)
Investment trust beneficiary
certificates (Appraised value)
Other Securities (Appraised value)…
Call Option (Purchase)
Put Option (Purchase)
Accounts Receivable
Accrued Interest
Accrued Gain Receivable
Prepaid Expenses
Other Accrued Revenue
Customers’ Margin Deposits…
(B) Liabilities
Call Option (Sell)
Put Option (Sell)
Loans
Accounts Payable
Unpaid Dividends
Redemption Payable
Accrued Trust Fees Payable
Securities Received as Customers’
Deposits for Customers’ Margin
Other Accrued Expenses…
(C) Total Net Assets (A) - (B)Principal
Profit or Loss Carried Forward for
the Next Period[Profit or loss on redemption](D) Total Units of Beneficial Interest
Base Value per 10,000 Units (C/D)[Redemption value per 10,000 units(C/D)]* In case ofredemption:
Yen [at redemption]

units
Yen
yen sen–93–Fund with an accounting period of less than 6 months○ Status of Profit and Loss__th Period From MM/DD/YYYY To MM/DD/YYYY__th Period From MM/DD/YYYY To MM/DD/YYYY
Item

End of __th Period

End of __th Period(A) Interest Income, etc.
Interest Income
Accrued Gain
Other Revenues
Interest Expenses(B) Gain or Loss on Securities
Transaction
Gain on Sale
Loss on Sale
(C) Gain or Loss on Futures
Transactions, etc.
Gains on Transactions
Loss on Transactions(D) Trust Fees, etc. etc.
(E) Current Period Net Profit (A + B +

-

-

-

-

-

-

-

-

C + D)(F) Profit or Loss Carried Forwardfrom the Previous Period(G) Profit or Loss on Early
Cancellation(H) Total (E + F + G)
(I) Dividends
Profit or Loss Carried Forward to
the Next Period (H + I)[Profit or loss on redemption]…

–94–

Funds with an accounting period of 6 months or more

○ Status of Profit and Loss
Current Period From MM/DD/YYYY To MM/DD/YYYY
Item

Current Period(A) Interest Income, etc.
Interest Income
Accrued Gain
Other Revenues
Interest Expenses(B) Gain or Loss on Securities
Transaction
Gain on Sale
Loss on Sale
(C) Gain or Loss on Futures
Transactions, etc.
Gains on Transactions
Loss on Transactions(D) Trust Fees, etc. etc.
(E) Current Period Net Profit (A + B +--C + D)(F) Profit or Loss Carried Forwardfrom the Previous Period(G) Profit or Loss on Early
Cancellation-(H) Total (E + F + G)
(I) Dividends
Profit or Loss Carried Forward to
the Next Period (H + I)[Profit or loss on redemption]…

B. Labeling Considerations(a) For funds whose accounting period is less than 6 months, the status of assets, liabilities, principal
and base value and the status of profit and loss for each settlement period during the past 6 months
before the end of the preparation period shall be indicated. However, the status of assets, liabilities,
principal and base value at the end of the preparation period may be indicated, and the status ofprofit and loss may be presented in total for the preparation period.
(b) Any matters to be stipulated in the provisions of the Ordinance on Investment Trust’s Financial
Statements shall be stated in the notes.

–95–

Attached Table 1-2

Form and Indication Example of Investment Report (Delivery Version) for
Securities Investment Trusts(Articles 3-2 and 3-3 of the Rules)

1. Items to Be Indicated on the Cover Page (Article 3-2 of the Rules)(8) To Beneficiaries:
A. Indication Examples
To Beneficiaries:
We would like to thank you for your continued patronage.
The “〇〇〇〇 Fund” has just completed the settlement of accounts for its 〇th period.
The fund has been managed with the aim of ______. We would like to report on the investment
progress of this period as follows:
We look forward to your continued support and patronage.
B. Labeling Considerations when displaying “To Beneficiaries”(a) When showing the information, it shall be shown conspicuously and with reference to theindication examples above.

–96–

2. Items to Be Indicated in the Text (Article 3-3 of the Rules)
The form of items to be indicated in the text shall be as follows:(1) Explanation of investment progress(i) Changes in base value, etc.
A.

Indication Example* Base value after dividend reinvestment is calculated on the assumption that income distribution (includingtax) is reinvested at the time of distribution and indicates the actual performance of fund management.
* Whether or not dividends are reinvested depends on the course the customer is utilizing. Also, the terms oftaxation vary depending on the purchase price of the fund. Therefore, it does not indicate the profit and loss
status of the customer.

B. Labeling Considerations(a) The changes in the base value, the changes in the base value after dividend reinvestment, andthe changes in the amount of total net assets during the preparation period shall be indicatedin one chart.
(b) The changes in the base value and the changes in the base value after dividend reinvestment
shall be indicated on a line graph and it shall be stated that the left axis indicates the unit of–97–

measurement.
(c) The changes in the amount of total net assets shall be displayed on the line graph along withthe area graph and it shall be stated that the right axis indicates the unit of measurement.
(d) The base value and the rate of fluctuation (after reinvestment of dividends) at the beginningand the end of the preparation period shall be displayed. In addition, the “Amount ofdividends paid” shall be displayed near the base value at the end of the period.
(e) In principle, benchmarks shall be included in such charts.
(f) The following note shall be displayed below the above diagram:- That the base value after dividend reinvestment shall be calculated by assuming that thedividends (including tax) has been reinvested at the time of distribution, and indicates theactual performance of fund management.
- Whether or not dividends are reinvested depends on the course the customer is utilizing.
Also, the terms of taxation vary depending on the purchase price of the fund. Therefore,that it does not indicate the profit and loss status of the customer.

(ii) Main Factors for Fluctuations in the Base Value
When explaining main factors for fluctuations in the base value, the explanation shall be concise
and easy to understand in writing, comparing it to the contents described in the “Purpose and Featuresof the Fund” section of the Delivery Prospectus of the investment trust.

–98–

(iii) Details of Expenses per 10,000 Units
A. Form Examples
Fund with an accounting period of less than 6 months〇

Details of Expenses per 10,000 Units__th Period to __th Period
Item(MM/DD/YYYY Amount
Yen

Summary of Items

Ratio
%

Where described in (Note 1): (☆1)(a) Trust Fees
(Investment trust company)

Where described in (Note 1): (☆2)(Seller)

Where described in (Note 1): (☆3)(Trustee company)

Where described in (Note 1): (☆4)(b) Subscription Fees
Where described in (Note 1): (☆5)(c) Trading Commissions(Shares)(Stock options certificates)(Option certificates, etc.)(Corporate bonds with stock options(convertible bonds)) (instruments)(Futures and options)

Where described in (Note 1): (☆6)(d) Securities Transaction Tax(Shares)(Stock options certificates)(Option certificates, etc.)(Corporate bonds with stock options(convertible bonds))(Public and corporate bonds)

Where described in (Note 1): (☆7)(e) Other Expenses(Storage expenses)(Audit expenses)(Other)
Total

–99–

Funds with an accounting period of 6 months or more〇

Details of Expenses per 10,000 Units
Current Period
Item(MM/DD/YYYY MM/DD/YYYY)
AmountYen(a) Trust Fees
(Investment trust company)

Summary of Items

Ratio
%

Where described in (Note 1): (☆1)
Where described in (Note 1): (☆2)(Seller)

Where described in (Note 1): (☆3)(Trustee company)

Where described in (Note 1): (☆4)(b) Subscription Fees
Where described in (Note 1): (☆5)(c) Trading Commissions(Shares)(Stock options certificates)(Option certificates, etc.)(Corporate bonds with stock
options (convertible bonds))(Instruments)(Futures and options)(d) Securities Transaction Tax(Shares)

Where described in (Note 1): (☆6)

(Stock options certificates)(Option certificates, etc.)(Corporate bonds with stock
options (convertible bonds))(Public and corporate bonds)(e) Other Expenses(Storage expenses)

Where described in (Note 1): (☆7)

(Audit expenses)(Other)
Total(Note 1)In the following Notes, (☆) shall be inserted in the right column of the table, and each company shallinsert other items as it deems necessary.
(Unit type investment trust)(Marginal notes) Overview of items
Expenses incurred during the period (including consumption tax for applicable items) are calculated using
the simplified method because the number of units of beneficial interest changes as a result of earlycancellation.
(The method of calculation shall be described, but real numbers may be omitted.)–100–

(☆1) (a) Trust fee = [Average base value during the period] x Trust fee rate (*)(*) Fund for which trust fees are recorded daily on a net asset basis.
Or[Trust fees payable at the end of the semiannual period] [Trust fees payable at the end of the period]=+[Number of units of beneficial interest at the end of the semiannual period] [Number of units of beneficial
interest at the end of the period]
The average base value for the period is 〇〇〇〇 yen.
The “Ratio” column indicates the ratio obtained by dividing the each amount of expenses per 10,000 units
by the average base value during the period and multiplying 100.
The following job description of items for compensation are examples used for examples.
(☆2) Compensation for management of the entrusted funds(☆3) Compensation for sending various documents such as the Investment Report (Delivery Version),managing the fund in the account, and providing information after purchase(☆4) Compensation for management of investment property and execution of instructions from investment
trust companies[Trading commissions during the period](☆5) (c) Trading commissions =[Average number of units of beneficial interest during the period]
Trading commissions are fees to be paid to brokers for the purchase and sale of securities[Securities transaction tax during the period](☆6) (d) Securities transaction tax =[Average number of units of beneficial interest during the period]
The securities transaction tax is a tax on transactions arising from each transaction of securities.

(☆7) (e) Other expenses =[Other expenses during the period][Average number of units of beneficial interest during the period]

Other Expenses‐ Storage expenses are expenses required for the storage of securities, remittance of funds, and transfer
of assets that are paid to overseas storage banks, etc.
‐ Audit expenses are expenses related to audits of the fund to be paid to the auditing corporation orentity.
‐ For expenses incurred other than those described above, concrete items shall be listed and the nature ofservices shall be described.
(Open type investment trusts)(Marginal notes) Overview of items
Expenses during the period (including consumption tax for applicable items) are calculated using thesimplified method because the number of units of beneficial interest changes as a result of addition or
early cancellation.

–101–

(The method of calculation shall be described, but real numbers may be omitted.)(☆1) (a) Trust fee = [Average base value during the period] x Trust fee rate
The average base value for the period is 〇〇〇〇 yen.
The “Ratio” column indicates the ratio obtained by dividing the each amount of expenses per 10,000
units by the average base value during the period and multiplying 100.
The following job description of items for compensation are examples used for examples.
(☆2) Compensation for management of the entrusted funds(☆3) Compensation for sending various documents such as an Investment Reports (Delivery Version), etc., formanagement of funds in accounts, or for providing information after purchase, etc.
(☆4) Compensation for management of investment property and execution of instructions from investment
trust companies[Trading commissions during the period](☆5) (c) Trading commissions =[Average number of units of beneficial interest during the period]
Trading commissions are fees to be paid to brokers for the purchase and sale of securities[Securities transaction tax during the period](☆6) (d) Securities transaction tax =[Average number of units of beneficial interest during the period]
The securities transaction tax is a tax on transactions arising from each transaction of securities.

(☆7) (e) Other expenses =[Other expenses during the period][Average number of units of beneficial interest during the period]

Other Expenses‐ Storage expenses are expenses required for the storage of securities, remittance of funds, and transfer
of assets that are paid to overseas storage banks, etc.
‐ Audit expenses are expenses related to audits of the fund to be paid to the auditing corporation orentity.
‐ For expenses incurred other than those described above, concrete items shall be listed and the nature ofservices shall be described.
(Unit type and open type investment trusts)(Note 2) Figures less than 1 yen are rounded off for each item.
In the case of the family fund method, the following provisory clause shall be indicated after (Note 1):“Trading commissions, securities transaction taxes and other expenses include, of the amount paid by
the mother fund incorporated by this fund, the amount corresponds to the fund.”

B. Considerations in Labeling Details of Expenses per 10,000 Units
Points to consider when listing the calculation method of (Note 1) and real numbers(a) Trading commissions, securities transaction taxes and other expenses during the period shallbe in units of 1,000 yen. (Amounts less than one unit are round off)(b) The average number of units of beneficial interest during the period is the simple average of–102–

the number of units remaining as of the end of each month. The unit is 1,000 units. (For funds
whose principal is 1 yen per unit, the unit that indicates the base value)(c) Trading commissions, securities transaction taxes and other expenses per 10,000 units arerounded off to the nearest yen.
(d) The average base value during the period is a simple average as of the end of each month.
(e) Conversion of foreign currencies into Japanese yen shall be made in the following manner:
Trading commissions, securities transaction taxes and other expenses are the total amount ofJapanese currency converted at the medium price as of the end of each month (closing date
for the month to which the settlement date belongs).
(f) Trading commissions, securities transaction taxes and other expenses during the period shallbe calculated by adding the amount of each mother fund attributable to baby funds, whichshall be calculated in accordance with the statement of dividend income based on the amount
paid directly by baby funds.
(g) When such amount is negative (minus), put (-) in the table.
(h) For funds with an accounting period of less than 6 months, quantities (a) through (e) of eachaccounting period shall be calculated and the total amount for the past 6 months before theend of preparation shall be listed. However, it may also be indicated for each settlement ofaccounts.
(i)

For funds with an accounting period of 6 months or more, the preceding period may also be
indicated.

(j)

For direct sales-only funds, it is not necessary to show the item for sales company in the trustfees.

(k) For the (c) trading commissions and (d) securities transaction taxes of a fund of funds, theamount of commissions and transaction taxes related to the purchase and sale of investment
trust securities shall be indicated.
(l)With regard to investment target funds, a note to the effect that “expenses for each item do notinclude expenses paid by the investment trust securities (excluding the mother fund)incorporated in this fund” shall be made.
In addition, in accordance with the status of each fund, the note for stating “Those forwhich “Details of Expenses per 10,000 Units” as of the end of the most recent accounting
period of such investment trust certificates can be acquired shall be indicated in the“Summary of Top-Ranked Incorporated Funds,” shall be attached and the itemized expenses
shall be made available for reference.

(m) The “Ratio” column shall be accompanied by a note to the effect that “each amount ofexpenses per 10,000 units is divided by the average base value during the period andmultiplied by 100.”(n) In cases such as the amount of expenses other than storage expenses and audit expenses
incurred among other expenses is relatively large, notes on the contents of individual andspecific expenses shall be entered as necessary.

–103–

(iv) (Reference information) total expense rate
A. Indication Examples

Total Expense Rate ((i) + (ii) + (iii))

0.90%(i) Ratio of expenses of this fund

0.75%(ii) Ratio of investment management expenses of the investment target funds

0.10%(iii) Ratio of non-investment management expenses of the investment target funds

0.05%(Note 1) Expenses in (i) are calculated by the simplified method used in the details of expenses per 10,000
units.
(Note 2) Each expense, in principle, does not include subscription fees, trading commissions andsecurities transaction taxes.
(Note 3) Each percentage is calculated on an annual basis.
(Note 4) Investment target funds is the investment trust security (excluding the mother fund) that areincorporated by this fund.
(Note 5) Expenses in (i) include expenses paid by the mother fund and do not include expenses paid by theinvestment target funds.
(Note 6) The period for which expenses in (i) and expenses in (ii) and (iii) are included may differ.

–104–

(Note 7) Figure is calculated on the above premises. For this reason, these values are for information onlyand differ from the ratio of actual expenses incurred.

B. (Reference Information) Considerations in Labeling the Total Expense Rate(a) The ratio of investment management expenses and other expenses shall be the ratio (perannum) of each expense during the period used in the details of expenses per 10,000 Units.
(b) When there are investment target funds, notes shall be provided on the matters in (Note 4)
through (Note 6).
(c) For a fund of funds, the total sum of (i) Ratio of expenses of this fund (the value obtained, inprinciple, by subtracting the rate of subscription fees, trading commissions and securities
transaction taxes from the total listed in “Details of Expenses per 10,000 Units” andcalculating this rate on an annual basis), (ii) Ratio of investment management expenses of theinvestment target fund (the simplified method in which the value obtained by subtracting therate of “investment management expenses (trust fees) of this fund” from the rate of“substantial investment management expenses (trust fees)” listed in the prospectus(hereinafter referred to as the “investment management expenses rate (simplified)”) may be
used.) and (iii) Ratio of non-management and administrative expenses of the investment
target fund (excluding, in principle, subscription fees, trading commissions, and securities
transaction taxes) (the simplified method, in which the rate obtained by subtracting theinvestment management expenses rate (simplified) from the total expense rate of theinvestment target fund in question), may also be used.) shall be indicated in a pie graph as thetotal expenses ratio.
In making such entries, such information shall be disclosed in as much detail as possible, andsuch necessary notes as those in (Note 7) shall be made so as not to cause misunderstanding to
the beneficiary.
When (iii) Ratio of expenses other than management and administrative expenses of theinvestment target fund cannot be assessed, the name of the disclosure item shall be “expense
rate (excluding expenses other than management and administrative expenses of theinvestment target fund)” and it shall be noted to the effect that “in some cases, there may be
expenses other than the investment management expenses in the investment target fundwhich are not included in the above.”(d) For funds other than fund of funds, the above table shall be omitted.

–105–

(v) Changes in the base value, etc. over the last five years
A. Indication Examples

Beginning of theperiod:MM/DD/YYYY

Settlement date:
MM/DD/YYYY

Settlement date:
MM/DD/YYYY

Settlement date:
MM/DD/YYYY

Settlement date:
MM/DD/YYYY

Settlement date:
MM/DD/YYYY

Base value (Yen)
Total dividends per period (including tax) (Yen)The fluctuation rate in the base value after dividend
reinvestment (%)
The fluctuation rate of AAA Index (in yen) (%)
The fluctuation rate of BBB Index (in yen) (%)
The fluctuation rate of CCC Index (in yen) (%)
Total net assets (million yen)
(Note) AAA Index (in yen), BBB Index (in yen), CCC (in yen) are reference indices for this fund.
The reference index is listed as a representative index that explains the market trends of investment target assets.

● Reference Index- AAA Index is ‥‥‥‥‥‥- BBB Index is ‥‥‥‥‥‥- CCC Index is ‥‥‥‥‥‥- For overseas indices, the local closing price on the previous business day is adopted inconsideration of reflection in the base value.
B. Labeling Considerations(a) The changes in the base value, in the base value after dividend reinvestment, and in theamount of total net assets over the last five years shall be depicted in one chart.
(b) The changes in the base value and the changes in the base value after dividend reinvestment
shall be indicated on a line graph and it shall be stated that the left axis indicates the unit ofmeasurement.
(c) The line graph shall be accompanied by a bar graph or area graph of the change in total net
assets, and it shall be indicated that the unit is on the right axis.
(d) The fluctuation rate of base values, dividend per period (including tax), benchmark (if there is
no benchmark, reference index for stock indices, etc., shall be used.) and the total net assets
on the settlement dates for the past five years shall be depicted using charts. For funds whose
accounting period is six months or less than six months, each settlement date shall be deemed–106–to be a fixed settlement date for each fiscal year.
(e) In principle, benchmarks (or reference indices such as stock indices if no benchmarks areavailable) shall be depicted in such charts, and if it cannot be included, the specific reasons
shall be indicated.
(f) When presenting reference indices such as stock indices, etc., such indices shall be shown
below the chart with reference to the following notes:- (Example) The 〇〇〇 Index, △△△△ Index, and ×××× Index are reference indices forthis fund. Reference indices are listed as representative indices that explain the market pricesof the investment target asset.
(g) When reference indices such as stock price indices are included, “Reference Indices” and an
explanation of the relevant indices shall be indicated below the chart.
(h) Even if actual investment is less than five years, the horizontal axis of the graph shall be five
years.
(vi) Investment environment
When indicating, explanations shall be concise and easy to understand in writing for each asset
incorporated.

(vii) Portfolio of the investment trust
The display shall include a concise and easy-to-understand explanation in writing, of the progressand results of investment during the current period for each asset incorporated, based on theinvestment policy described in the “Purpose and Features of the Fund” section of the Delivery
Prospectus.

–107–

(viii) Differences from the benchmark of such investment trusts
A. Indication Examples

B. Labeling Considerations(a) The comparison of the fluctuation rates of the base value of the relevant investment trust andthe benchmark (if no benchmark exists, reference index such as stock indices, etc., shall be
used.) at the end of each accounting period during the period for preparation of theInvestment Reports (Delivery Version) shall be indicated using a bar graph.
(b) In principle, the comparison with the benchmark (if no benchmark exists, reference index
such as stock indices, etc., shall be used.) shall be shown, and if it cannot be shown, thespecific reason shall be shown.
(ix) Dividends
A. Indication Examples
Dividends per 10,000 units (including tax) for the _th period to _th period were set at ___ yeneach. Retained earnings shall be managed in accordance with the future investment policy.

–108–

Fund with an accounting period of less than six months (Example of monthly settlement)(Units: yen / %, per 10,000 shares before taxes)

Item

__th
PeriodMM/DD/YYYY MM/DD/
YYYY

__th
PeriodMM/DD/YYYY MM/DD/
YYYY

__th
PeriodMM/DD/YYYY MM/DD/
YYYY

__th
PeriodMM/DD/YYYY MM/DD/
YYYY

__th
PeriodMM/DD/YYYY MM/DD/
YYYY

__th
PeriodMM/DD/YYYY MM/DD/
YYYY

Dividends for the Period(Ratio to base value)
Revenue for the Period
Income Other Than
Revenue for the Period
Amount Subject toDistribution Carried
Forward to the Next Period

Fund with an accounting period of 6 months or more (Example of 1-year settlement)(Units: yen / %, per 10,000 shares before taxes)
Item__th Period
MM/DD/YYYY MM/DD/YYYY

Dividends for the Period(Ratio to base value)
Revenue for the Period
Income Other Than Revenue
for the Period
Amount Subject to Distribution
Carried Forward to the Next
PeriodB. Labeling Considerations(a) The status of each accounting period during the period for preparation of the Investment
Reports (Delivery Version) shall be stated separately.
(b) Units for display shall be about 10,000 units (meaning the unit that indicates the base value;
the same shall apply hereinafter.).
(c) “Dividends for the Period” indicates “(Ratio to base value),” in which case it shall be notedthat the ratio to base value is the ratio to the base value at the end of the period (including
dividends) to dividends for the period including tax, which is different from the rate of returnof the fund.
(d) “Revenue for the Period” shall indicate the sum of the amounts allocated for distribution forthe period from “Revenues from dividends, etc. after deduction of expenses” and “Gains onsale after deduction of expenses and compensation for loss carried forward (including
valuation gains).”(e) “Income Other Than Revenue for the Period” shall indicate the total amount allocated for
distribution for the period from the “reserve for dividends” and the “revenue adjustment.”–109–

(f) When calculating “Revenue for the Period” and “Income Other Than Revenue for the
Period,” if there is any amount less than the decimal point per 10,000 shares, such amountshall be added up including the amount less than the decimal point, and the amount added up
shall be rounded down to the decimal point.
If there is no numerical value in a corresponding column, “-” shall be indicated, and if
there is only a numerical value after the decimal point, “0” shall be indicated.
“Revenue for the Period” and “Income Other Than Revenue for the Period” are rounded
down to the nearest whole number. If the total amount of revenues for the period does notmatch the amount of “Dividends for the Period,” such fact shall be indicated in the notes.
Even if the numbers are matched, the fact of such also may be noted.
(g) “Amount Subject to Distribution Carried Forward to the Next Period” shall indicate theamount obtained by deducting “Dividends for the Period” from “Amount Available forDistribution of Revenues for the Period.”(2) Future Investment Policy
The future investment policy, based on the investment policy in the “Purpose and Features of theFund” section of the Delivery Prospectus, shall be indicated in a concise and easy to understand mannerin writing for each asset incorporated.

(3) Notice
A. Indication Examples○ Concerning Changes in Management System
During the preparation period, a credit research team was organized in the department involved indeciding on the investment policy. The team aims to strengthen the ability to analyze thecreditworthiness of companies targeted for investment by comprehensively organizing and utilizing
information from rating agencies.

B. Labeling Considerations(a) In the event that there is a change in the contracts of the investment trust during current periodthat is deemed important by the management company, or if there is a change in the
management system or some other change that is deemed important by the managementcompany, the details of such change shall be displayed.

–110–

(4) Overview of the Investment Trust
A. Form Examples
Instrument
Open Type / Overseas / Combined Assets
Classification
Trust Period

Indefinite
The Fund will invest in overseas public corporate bonds, real estate investment trust securities, andInvestment Policy

shares as its principal investment targets, aiming to achieve medium- to long-term growth of its
trust properties by securing stable dividend and acquiring gains on valuation.
(i) Beneficiary Certificates of Global Sovereign Mother Fund(ii) Beneficiary Certificates of Overseas REIT Mother FundThis Fund(iii) Beneficiary Certificates of Overseas High Dividend Stock Mother
Fund
Global Sovereign
Overseas Public and Corporate Bonds, etc.
Mother Fund

Major Investment
Overseas REIT

Beneficiary Certificates of a Real Estate Investment Trust or Investment

Mother Fund

Securities of a Real Estate Investment Corporation Listed on Overseas

TargetFinancial Instruments Exchanges or Registered Over-the-Counter(including scheduled listing and registration )Overseas High

Shares Listed on Overseas Financial Instruments Exchange and Those

Dividend Stock

Registered Over-the-Counter (including scheduled listing andMother Fundregistration )(i) The beneficiary certificates of each mother fund shall be incorporated by one-third of the total
Method of Managing

net assets of each trust property.

the Fund(ii) Currency hedging for avoiding the risk of fluctuations in exchange rates is not performed on
assets denominated in foreign currency.
The amount to be distributed includes profits such as dividends after deducting expenses and gains
on transactions (including appraisal profits), etc., and, in principle, is aimed to make stable
distributions on an ongoing basis. Depending on the level of base value, etc., distributions may beDistribution Policy
made mainly from gains on transactions, etc., (including valuation gains) in consideration of thelevel of distribution resources for continuing stable distribution in the future. However, if theamount to be distributed is small, distribution may not be made.

B. Labeling Considerations(a) When displaying the summary of such investment trusts, the instrument classification, trust
period, investment policy, principal investment targets, investment method and distribution
policy shall be indicated.

–111–

(5) Comparison of Fluctuation Rates with Typical Asset Classes
A. Indication Examples(Average fluctuation rate, annual maximum fluctuation rate and minimum fluctuation rate (%) of the fund andother typical asset classes)

Average
Value
Maximum
Value
Minimum
Value

This FundJapanese
SharesShares ofDeveloped
Countries

Shares ofEmerging
Countries

Japanese
Bonds

Bonds ofDeveloped
Countries

Bonds of
Emerging
Countries

+4.3

-13.6

+1.2

+4.9

+2.3

-8.8

+10.9

35.5

28.5

57.0

91.6

4.1

2.6

38.9

-23.9

-45.4

-47.9

-56.6

0

-18.9

-18.2

(Note) Not all asset classes are investment targets of the fund.

* The average, maximum, and minimum one-year fluctuation rates during the five-year period frommonth ____ of year ____ to month____ of year ____ are shown for this fund and other typicalasset classes.
* Index for each asset class
Japanese Shares ····························· ○○○○○
Shares of Developed Countries ··········· ○○○○○
Shares of Emerging Countries ············ ○○○○○
Japanese Bonds ······························ ○○○○○
Bonds of Developed Countries············ ○○○○○
Bonds of Emerging Countries ············· ○○○○○(Note) Overseas indices are converted into yen on the assumption that investments are made without exchange hedging.

B. Labeling Considerations(a) The image diagram is for illustrative purposes and shall be indicated in accordance with theinvestment trust instruments handled by each company. When the average, maximum, and–112–

minimum fluctuation rates are shown in the diagram, “(Average fluctuation rate, annual
maximum and minimum fluctuation rate (%) for this fund and other typical asset classes)”does not need to be shown.
(b) The fluctuation rate in the image chart is those as of the end of the most recent month and not
the data as of the settlement date. So for example, statements such as “The above fluctuation
rate is a result of calculation dating back 60 months from the end of the most recent monthand is different from the figure corresponding to the settlement date.” shall be made withoriginality and ingenuity.
(6) Data on the investment trust in question(i) Details of assets incorporated in the investment trust
A. Indication Examples〇 Incorporated (Top Ranking) Funds (Issues)

B. Labeling Considerations(a) The indication examples are for illustrative purposes and shall be described according to theinvestment trust instruments handled by each company.
(b) When presenting the contents of the incorporated assets as of the last day of the preparation
period, the top ranking issues on the last day of the preparation period shall be displayed, andthe ratio of incorporation thereof shall be indicated by using charts and diagrams, and sharesby assets, countries and currencies shall be presented by using pie charts.
(c) If the investment trust is a family fund method or a fund of funds, the top three funds or moreon the last day of the accounting period (the last day of the preparation period) shall be listed
and the ratio of incorporation for each shall be described.
(d) A note to the effect that “Detailed information, etc. regarding all issues are described in theInvestment Report (Full Version).” shall be indicated.

–113–

(2) Net Assets, etc.
A. Indication Examples

Item

End of __th
PeriodEnd of __th
PeriodEnd of __th
PeriodEnd of __th
PeriodEnd of __th
PeriodEnd of __th
PeriodMM/DD/YYYY

MM/DD/YYYY

MM/DD/YYYY

MM/DD/YYYY

MM/DD/YYYY

MM/DD/YYYY

Yen

Yen

Yen

Yen

Yen

Yen

units

units

units

units

units

units

Yen

Yen

Yen

Yen

Yen

Yen

Total Net Assets

Total Number ofUnits of Beneficial
Interest
Base Value per
10,000 Units* The additional principal amount for establishment during the preparation period (from the __th period to the __th period) is______ yen, and the cancellation principal amount is ______ yen.

B. Labeling Considerations(a) The image diagram is for illustrative purposes and shall be indicated in accordance with theinvestment trust instruments handled by each company.
(b) In presenting net assets, etc. during the preparation period, the total amount of net assets, thetotal number of units of beneficial interest and the base value per 10,000 units shall bepresented at the end of each period. At the same time, the additional principal amount forestablishment and the cancellation principal amount during the preparation period shall be
noted outside the table.
(iii) Overview of top-ranked incorporated funds
A. Indication Examples–114–

(Note 1) Data on changes in the base value, top incorporated issues, shares by asset, country, and currency are as of
MM/DD/YYYY.
(Note 2) The itemized expenses per 10,000 units is for the most recent fiscal year end of the incorporated fund. See notes on page
1 for expense items.
(Note 3) The ratio of shares by assets and currency is the ratio of the appraised value to the total amount of net assets, and the ratioof distribution by country is the ratio of the appraised value to the portfolio.

B. Labeling Considerations(a) The image diagram is for illustrative purposes and shall be indicated in accordance with theinvestment trust instruments handled by each company.
(b) When presenting the summary of the top-ranking incorporated funds on the last day of the–115–

preparation period, the change in the base value for each issue of funds incorporated as of thelast day of preparation period, the top 10 or more issues, the ratio of incorporation for eachissue and the total number of issues, details of expenses per 10,000 units, share by assets,share by countries and share by currencies as of the last day of the preparation period of theinvestment target funds shall be presented in accordance with the features of the funds in the
Delivery Prospectus.
The change in base value shall be presented by using a line graph, and the top 10 or moreissues, the ratio of incorporation for each issue and the number of all issues as well as thedetails of expenses per 10,000 units as of the last day of the preparation period of theinvestment target funds shall be presented by using a table. In addition, shares by assets,shares by country and shares by currency shall be presented by using a pie chart. Whenpresenting the top 10 or more issues, items such as currency, category, country of investment,
etc., deemed necessary may be combined for presentation.
(c) In the case of a fund of funds, etc., where it is not possible to obtain such information for the“Details of expenses per 10,000 units” in (b) above, a note to that effect shall be provided.
(d) In the case of a family fund method or a fund incorporated into a fund of funds, the top 10 ormore issues as of the last day of the most recent accounting period (the last day of the
preparation period) shall be described, and the ratio of incorporation for each issue and thenumber of all issues shall be described.
(e) In cases where there are two or more layers in the structure of investment target funds, a pie
chart shall be displayed according to the number of hierarchical structures, or for funds
beyond the funds invested in, a pie chart shall be displayed so that the actual asset
composition of funds invested in can be seen.
At that case, since the composition of assets that the funds invest in is shown clearly, it
should be noted that it is necessary to include a note such as “Although the fund (beneficial
interest) is directly invested, the investment assets beyond that are shown.”–116–

Attached Table 2

Presentation Details of a Fund That Is an Open Investment Trusts for Investment in
Public and Corporate Bonds and Settles its Accounts on a Day-to-Day Basis(Article 14 of the Rules)
1. Dividends per 10,000 Units
A. Form Examples
Notice of Dividends Per 10,000 Units (from MM/DD/YYYY to MM/DD/YYYY)
Dividends per 10,000 Units
Month
Total
Including Tax
Income Tax
Local Tax
Withholding Tax
MM
MM
MM
MM
MM
MM

Net Proceeds(Note) Dividends are the cumulative total of each month from the last business day in the previous monthto the day before the last business day in the current month.

B. Labeling Considerations
Dividends, etc. for each month during the preparation period shall be displayed.

2. Status of Assets, Liabilities, Principal and Base Value
Form Examples(End of preparation period: as of MM/DD/YYYY)
Status of Assets, Liabilities, Principal and Base Value
AssetsPublic and Corporate
Bonds

Other securities

Total Net Assets
Call Loans, etc.
Other Assets

AmountRatio

AmountRatio

AmountRatio

million yen____ %

million yen____ %

million yen____ %

Liabilities
Total

Foreign
Currency-Denominated Net
Asset Ratio__ million yen million yen _ million
yen____ %

Principal

million yen

Base
Value per10,000Unitsyen(Note 1) The average number of days remaining as of MM/DD is _____. (Only for funds for comprehensive
securities accounts)(Note 2) The amount carried forward for next period as of MM/DD is _____.
(Note 3) The ratio is to the total amount of investment trust property (____ million yen).

–117–

3. Status of Trading and Profit and Loss
A. Form Examples(Preparation period: from MM/DD/YYYY to MM/DD/YYYY)
Status of Trading for Incorporated Securities
Purchased

Status of Futures Transactions

Sold

Buy contracts

Public andPublic andCorporate Other Securities Corporate Other Securities
Bonds
Bonds
Millionsof yen[](Notes)Millions of yen[]

Millions of
yen

[

]

Millions of yen[]

Status of Profit and Loss

Sell contracts

Operating
IncomeProfit and Trust Fees
New
Distribution
Settlement New sell Settlement
Losspurchase
price
price
price
price
Millions of Millions ofyenyenMillions ofyenMillions of Millions of
yen
yen

[

[

[

]

[

]

]

Millions ofyenMillions ofyen]

1. Purchase and sale of public and corporate bonds shall be made in the amount of delivery (excluding
accrued interest).
The figures in parentheses ( ) represent the decrease due to redemption and are not included in the
figures in the upper rows.
2. The transaction balance (appraised value) of the futures transactions as of MM/DD is __ hundred
million yen for the amount of purchases and __ hundred million yen for the amount of sales. (Notes on
China F, MMF, Interest F, FFF.)
3. The total amount, in parentheses [ ], of the Status of Trading for Incorporated Securities during theperiod and of the Status of Futures Transactions is the amount of transactions by interested parties.
* “The interested party is an interested party as defined in Article 11, Paragraph 1 of the Act on
Investment Trusts and Investment Corporations, and an interested party of the fund for the current
period under review is ___. ”

B. Labeling Considerations(a) The status of trading and profit and loss during the preparation period shall be shown in total, but may
be shown on a monthly basis.
(b) Regarding the trading status of assets and incorporated securities, it is permissible to classify anddisplay foreign currencies.
(c) The amounts of assets, liabilities, principal, sales and purchases, and profits and losses may be
indicated in units of 1,000 yen.
(d) Any notes stipulated in the Ordinance on Accountings of Investment Trust Property shall be noted.
(e) When the price, etc. of specified assets has been investigated, a summary of the results and method of
the investigation shall be indicated.

–118–

4. Status of In-house Establishment and Cancellation of this Fund
A. Form Examples
Beginning balance Principal established(principal)
for the period
Millions of yen

Principal cancelled
early during theperiodBalance at end of
period (principal)

Millions of yen

Millions of yen

Millions of yen

Reason for transaction

B. Labeling Considerations
The reason for transaction shall be indicated separately in each of the items of Article 6-2, Paragraph 1 of
the Rules on Full Members’ Business Operations, Etc.

5. Disclosure of Incorporated Bonds(1) Disclosure by Bond Type
A. Form Examples
a. Domestic (Yen-Denominated) Public and Corporate Bonds〇

Statement of Incorporated Securities

Category

National Government
Bonds(End of preparation period: as of MM/DD/YYYY)
Of which, Ratio of incorporation by remaining
ratio ofperiodAppraised Ratio of incorporation
Face Value
Value incorporation of assets 5 years or 2 years or Less than 2
rated BB or
more
more
years
lower
Millions ofyenMillions of
yen

(

(

)

)

%

(

)

%

(

)

%

(

)

%

(

)

%

(

)

Municipal Bonds
Special Bonds(Excluding financial
bonds)
Financial Bonds
Corporate Bonds with
Stock Options(Convertible bonds)
Straight Bonds
Total(Note 1) Ratio of incorporation is the ratio of appraised value to the total amount of assets.
(Note 2) ( ) is an intermediate-term national government bonds and is written in parentheses. (Intermediate-term national
government bond funds only)–119–b. Foreign (Foreign Currency Denominated) Public and Corporate Bonds〇

Statement of Incorporated Securities(End of preparation period: as of MM/DD/YYYY)
Ratio of incorporation by
Of Which,
Appraised Valueremaining period
ratio ofRatio of incorporation
AmountAmount inincorporation of assets 5 years or 2 years or Less than 2denominatedJapanese
rated BB or
in foreign
more
more
years
yen
lower
currency

Category

Face
Value

U.S.A.

ThousandThousand USD
USD

U.K.

ThousandpoundsMillions of
yen

%

%

%

%

%

Thousandpounds

Total(Note 1) The amount converted into Japanese yen is converted into yen based on the current Telegraphic Transfer Middle
Rate (TTM) for customers.
The applicable exchange rate is ___.
(Note 2) Ratio of incorporation is the ratio of appraised value to the total amount of assets.

B. Labeling Considerations(Considerations in Labeling of Domestic (Yen-Denominated) Public and Corporate Bonds)(a) The rate of incorporation for MMFs by remaining period is presented separately for periods of
one year or more and for periods of less than one year.
(b) For funds for comprehensive securities accounts, it shall not be necessary to indicate the ratio ofincorporation of assets rated BB or lower and the ratio of incorporation by remaining period.
(c) The rate of incorporation shall be the ratio of appraised value to the total amount of assets,
unless such ratio is likely to make it impossible to accurately indicate the status of theinvestment trust property.

(Considerations in Labeling of Foreign Public and Corporate Bonds (Foreign Currency Denominated))(a) MMFs and free financial funds shall be shown.
(b) The rate of incorporation for MMFs by remaining period is presented separately for periods of
one year or more and for periods of less than one year.
(c) The rate of incorporation shall be the ratio of appraised value to the total amount of assets,
unless such ratio is likely to make it impossible to accurately indicate the status of theinvestment trust property.

–120–

(2) Disclosure of Individual Issues (Japanese Yen and Foreign Currency Denominated)
A. Form Examples
a. Domestic (Yen-Denominated) Public and Corporate Bonds〇

Statement of Incorporated Securities
As of MM/DD/YYYY

Issue

Rate

(National government
bonds)

Face Value

Appraised Value

Thousands of yen

Thousands of yen

Redemption
Date

Sub total

–

–

–

–

–

–

–
–

–
–

–
–

(Municipal bonds)

Sub total(・・・)

Sub total
Total

b. Foreign (Foreign Currency Denominated) Public and Corporate Bonds
Statement of Incorporated Securities
Preparation
As of MM/DD/YYYY
Period〇Appraised Value
Issue

Type

Rate

AmountFace
Redemption
Value denominated In JapaneseDate
in foreignyencurrency(U.S.A.)Issue
Sub total

Thousands of
USD

–

–

–

(U.K.)Issue
Sub total–
Thousandpounds––––Thousand ...

(・・)

Issue
Sub total
Total

–

–

–

–

–

–

–

–

Thousands ofyen
Thousands ofyen
Thousands ofyen–

Thousands ofyen
Thousand ...

–Thousands ofyen
Thousands of
yen

–
–

(Note) The amount converted into Japanese yen is calculated by converting the market value at the end of the period into
Japanese yen using the Telegraphic Transfer Middle Rate (TTM) for customers in Japan.

–121–

B. Labeling Considerations(a) The types of bonds in the Issue column in the table of A Domestic Public and Corporate Bonds
shall be classified into the following categories: national government bonds, municipal bonds,
special bonds (excluding financial bonds), financial bonds, corporate bonds with stock
options (convertible bonds), straight bonds and other bonds.

6. Additional Disclosures of MMF(1) Ratio of incorporated assets by rating to total net assets
A. Form Examples(as of MM/DD/YYYY)
Public and corporate bonds
RatingAAA

Ratio ofincorporation

Short-Term Financial Assets
Rating
A-1

AA

A-2

A

A-3

BBB

NR

BBB-

Other Assets

Ratio ofincorporation

Less than or equal to BB
A- equivalent or higher

A-2 equivalent or higher

BBB equivalent or higher
National government
bonds, government
guaranteed bonds,
municipal bonds
Total

Total

(Note 1) The ratio of incorporation is the ratio of appraised value to the total amount of net assets.
(Note 2) “A- equivalent or higher” and “BBB equivalent or higher” for public and corporate bonds and “A-2 equivalentor higher” for short-term financial assets are determined based on the guidelines prepared by the company inaccordance with the voluntary rules of the Investment Trust Association, Japan, “Rules for Operations of MMF,
etc.” The figures in the upper section of “BBB equivalent or higher” and “A-2 equivalent or higher” are thosewith credit ratings from one credit rating agency, etc., (meaning a credit rating agency as defined in Article 2,
Paragraph 36 of the Financial Instruments and Exchange Act, and a specified affiliated corporation as defined in
Article 116-3, Paragraph 2 of the Cabinet Office Ordinance on Financial Instruments Business, etc. (Cabinet
Office Ordinance No. 52 of 2007); the same shall apply hereinafter. ) The figures in the bottom section are those
without credit ratings from credit rating agencies, etc.
(Note 3) Other assets are designated money trusts, accounts receivable, accounts payable, etc.

B. Labeling Considerations(a) Information on MMF shall be shown.
(b) The credit ratings indicated may also be based on the credit ratings by credit rating agency, etc.,
adopted by each company.

–122–

(c) For “A- equivalent or higher,” “BBB equivalent or higher” and “A-2 equivalent or higher” thosedetermined by the guidelines prepared by each company shall be displayed.
(d) When any of the items in (c) above ceases to apply, the ratio of such assets shall be noted in themargin.

7. Details of Expenses per 10,000 Units
A. Form Examples

Item

Preparation Period(MM/DD/YYYY MM/DD/YYYY)
AmountRatio
Yen(a) Trust Fees

Summary of Items%

Where described in (Note 1): (☆1)

(Investment trust company)

Where described in (Note 1): (☆2)(Seller)

Where described in (Note 1): (☆3)(Trustee company)

Where described in (Note 1): (☆4)(b) Subscription Fees
Where described in (Note 1): (☆5)(c) Trading Commissions(Corporate bonds with stock options(convertible bonds))(Futures and options)(d) Securities Transaction Tax(Corporate bonds with stock options(convertible bonds))(Public and corporate bonds)(e) Other Expenses(Storage Costs, etc.)(Audit expenses)(Other Typical Expenses)

Where described in (Note 1): (☆6)

Where described in (Note 1): (☆7)

Total
(Note 1)In the following Notes, (☆) shall be inserted in the right column of the table, and each company shall insert
other items as it deems necessary.
(Marginal notes) Overview of items
Expenses during the preparation period (including consumption tax, if applicable) are calculated using
the simplified method because the number of units of beneficial interest fluctuates as a result of additionor early cancellation.
(The method of calculation shall be described, but real numbers may be omitted.)(☆ 1) (a) Trust fees= [Average base value during preparation period] x Trust fee rate
The average base value during the preparation period is 10,000 yen.
The “Ratio” column indicates the ratio obtained by dividing the each amount of expenses per 10,000
units by the average base value during the period and multiplying 100.
(☆2) Compensation for management of the entrusted funds–123–

The following job description of items for compensation are examples used for examples.
(☆2) Compensation for management of the entrusted funds(☆3) Compensation for sending various documents such as the Investment Report (Delivery Version),managing the fund in the account, and providing information after purchase(☆4) Compensation for management of investment property and execution of instructions from investment
trust companies
Trading commissions during preparation period](☆5) (c) Trading commissions =[Average number of units of beneficial interest during the preparation period]
Trading commissions are fees to be paid to brokers for the purchase and sale of securities[Securities transaction tax during preparation period](☆6) (d) Securities transaction tax =[Average number of units of beneficial interest during the preparation period]
The securities transaction tax is a tax on transactions arising from each transaction of securities.
[Other expenses during preparation period](☆7) (e) Other expenses =[Average number of units of beneficial interest during the preparation period]
Other Expenses‐
Storage expenses are expenses required for the storage of securities, remittance of funds, andtransfer of assets that are paid to overseas storage banks, etc.
‐

Audit expenses are expenses related to audits of the fund to be paid to the auditing corporation orentity.

‐For expenses incurred other than those described above, concrete items shall be listed and thenature of services shall be described.

B. Considerations in Labeling Details of Expenses per 10,000 Units
Points to consider when listing the calculation method of (Note 1) and real numbers(a) Trading commissions, securities transaction taxes and other expenses during the preparation period
shall be in units of 1,000 yen. (Amounts less than one unit are round off)(b) The average number of units of beneficial interest during the preparation period is the simple averageof the remaining units at the end of each month. The unit is 1,000 units. (For funds whose principal is 1
yen per unit, the unit that indicates the base value)(c) Trading commissions, securities transaction taxes and other expenses per 10,000 units are rounded off
to the nearest yen.
(d) Average base value during the preparation period is a simple average as of the end of each month.
(e) Conversion of foreign currencies into Japanese yen shall be made in the following manner:
Trading commissions, securities transaction taxes and other expenses are the total amount of Japanesecurrency converted at the medium price as of the end of each month (closing date for the month towhich the settlement date belongs).
(f) When such amount is negative (minus), put (-) in the table.

–124–

Attached Table 3

Forms and Indication Example for Monthly Disclosure of MMF and MRF(Article 16, Paragraph 3 and Article 16-2, Paragraph 3 of the Rules)○ Monthly Disclosure of MMF
1. Balance and Ratio of Incorporated Assets by Type
A. Form Examples
Created Monthly
Category

As of MM/DD/YYYY
Face Value
Millions of yen

National Government
Bond Certificates
Municipal bondSpecial Bonds(Excluding financial
bonds)
Financial bonds
Straight bonds
Corporate Bonds with
Stock Options(Convertible bonds)
CP
CD
Other Assets
Total

Appraised Value
Millions of yen

Ratio ofincorporation %–––(Note 1) Other assets include call loans, deposits, accounts receivable, accounts payable, etc.
(Note 2) The ratio of incorporation is the ratio of appraised value to the total amount of net assets.

B. Considerations in Preparation
The ratio of incorporation may also be a ratio to the total amount of assets.

2. Status of Incorporation Rate by Top Five Issuers of Public and Corporate Bonds (Excluding National
Government Bonds and Financial Bonds), Financial Bonds, CP, CD, etc.
A. Form Examples(as of MM/DD/YYYY)
Incorporation Ratio of Incorporated Assets by Issuer (Top 5 Companies)
Public and corporate
Financial Bonds
CPCD, etc.
bonds
Name of Ratio of Name of Ratio of Name of Ratio of Name of Ratio of
Ranking
Issuer incorporation Issuer incorporation Issuer incorporation Issuer incorporation
1
2
3
4
5
(Notes) 1. “National government bonds, etc.” means Japanese government bonds (including Financing Bills.),
government-guaranteed bonds.
2. For CD, etc., refers to CD, call loan, etc. (excluding calls secured by secured government bonds, etc.)–125–

B. Considerations in Preparation
The ratio of incorporation may also be a ratio to the total amount of assets.

3. Ratio of Incorporated Assets by Rating to Total Net Assets
A. Form Examples(as of MM/DD/YYYY)

AAA

Public and corporate bonds
Ratio ofRatingincorporation

A-1

Short-Term Financial Assets
Ratio ofRatingincorporation

AA

A-2

A

A-3

BBB

NR

BBB-

Other Assets

Less than or equal to BB
A- equivalent or higher

A-2 equivalent or higher

BBB equivalent or higher
National government
bonds, government
guaranteed bonds,
municipal bonds
Total

Total

(Note 1) The ratio of incorporation is the ratio of appraised value to the total amount of net assets.
(Note 2) “A- equivalent or higher” and “BBB equivalent or higher” for public and corporate bonds and “A-2 equivalentor higher” for short-term financial assets are determined based on the guidelines prepared by the company inaccordance with the voluntary rules of the Investment Trust Association, Japan, “Rules for Operations of MMF,
etc.” The figures in the upper sections of “BBB equivalent or higher” and “A-2 equivalent or higher” are thosewith credit ratings from one credit rating agency, etc., and the figures in the lower sections are those without
credit ratings from a credit rating agency, etc.
(Note 3) Other assets are designated money trusts, accounts receivable, accounts payable, etc.

B. Considerations in Preparation(a) The credit ratings indicated may also be based on the credit ratings by the credit rating agency, etc.,
adopted by each company.
(b) For “A- equivalent or higher,” “BBB equivalent or higher” and “A-2 equivalent or higher” thosedetermined by the guidelines prepared by each company shall be displayed.
(c) When any of the items in (b) above ceases to apply, the ratio of such assets shall be noted in themargin.

–126–

○ Monthly MRF Disclosures
1. Balance and Ratio of Incorporated Assets by Type
A. Form Examples
Created Monthly
Category

As of MM/DD/YYYY
Face Value
Millions of yen

Appraised Value
Millions of yen

Ratio ofincorporation %National Government
Bond Certificates
Municipal bondSpecial Bonds(Excluding financial
bonds)
Financial Bonds
Straight Bonds
CP
CD

–

Other Assets

–

Total

–

(Note 1) Other assets include call loans, deposits, accounts receivable, accounts payable, etc.
(Note 2) The ratio of incorporation is the ratio of appraised value to the total amount of net assets.

B. Considerations in Preparation(a) Face value and appraised value may be omitted.
(b) The ratio of incorporation may also be a ratio to the total amount of assets.

2. Status of Incorporation Ratio of Public and Corporate Bonds and Short-Term Financial Assets by Issuer
A. Form Examples(as of MM/DD/YYYY)
Incorporation Ratio of Incorporated Assets by Issuer (Top 10
Companies)
Public and Corporate Bonds
Short-Term Financial Assets
Ratio ofRatio of
Ranking Name of issuer
Name of issuer
incorporation
incorporation
1
2.
3
4
5
6
7
8
9
10
(Note 1) “Public and Corporate Bonds” is ○○○○○.
(Note 2) “Short-Term Financial Assets” shall mean CP, CD, call loans, etc. (excluding calls secured by government bonds, etc.).

–127–

B. Considerations in Preparation(a) The status of the ratio of incorporation of public and corporate bonds and short-term financial assets
by issuer shall be indicated in any of the following ways:
A) The method of indicating the name of the issuer and the ratio of incorporation for each of the
public and corporate bonds (meaning straight bonds and financial bonds, and excludes national
government bonds, municipal bonds and special bonds ) and short-term financial assets.
However, when national government bonds, municipal bonds, and special bonds are included,
the top 10 bonds by issuer for both straight bonds and financial bonds, excluding national
government bonds, municipal bonds, and special bonds, shall be shown.
B) The method of indicating the name of the issuer and the ratio of incorporation by adding
together the public and corporate bonds and short-term financial assets without classifying them.
However, when public and corporate bonds, municipal bonds and special bonds are included,
the top 20 bonds by issuer, excluding national government bonds, municipal bonds and special
bonds shall be indicated.
(b) The ratio of incorporation may also be a ratio to the total amount of assets.
(c) (Note) 1. Explanatory notes for “public and corporate bonds” shall be clearly indicated in addition
to the method described in Considerations in Preparation (a) above.

3. Ratio of Incorporated Assets by Rating to Total Net Assets
A. Form Examples(as of MM/DD/YYYY)
Public and corporate bonds
Ratio ofRatingincorporation

Short-Term Financial Assets
Ratio ofRatingincorporation

AAA
AA
A
BBB or lower

A-1
A-2
A-3
NR
Other Assets

A equivalent or higher

A-2 equivalent or higher

National government
bonds, municipal bonds,
special bonds
Total

Total

(Note 1) The ratio of incorporation is the ratio of appraised value to the total amount of net assets.
(Note 2) “A-equivalent or higher” for public and corporate bonds and “A-2 equivalent or higher” for short-term financial
assets are those determined by the guidelines prepared by the company in accordance with the voluntary rules of
the Investment Trusts Association, Japan, “Rules for Operations of MMF, etc.” The figures in the upper sections
are those with credit ratings from one credit rating agency, etc., and the figures in the lower sections are those
without credit ratings from a credit rating agency, etc.
(Note 3) Other assets are designated money trusts, accounts receivable, accounts payable, etc.

B. Considerations in Preparation(a) The credit ratings indicated may also be based on the credit ratings by the credit rating agency, etc.,–128–

adopted by each company.
(b) “A equivalent or higher” and “A-2 equivalent or higher” shall be determined and indicated inaccordance with the guidelines prepared by each company.
(c) When any of the items in (b) above ceases to apply, the ratio of such assets shall be noted in themargin.
(d) The item columns for “national government bonds, municipal bonds, special bonds” may besummed up in the appropriate rating columns without classification. In this case, however, it shallbe noted that “national government bonds, municipal bonds and special bonds” are included in theappropriate rating column.

–129–Committee Resolution Concerning Investment Reports, etc., of Real Estate
Investment Trusts, etc.
Established on March 19, 2004
Revised on May 21, 2004
Revised on April 11, 2006
Revised on June 13, 2006
Revised on September 21, 2007
Revised on June 10, 2008
Revised on September 9, 2008
Revised on January 16, 2009
Revised on September 10, 2009
Revised on September 15, 2011
Revised on September 12, 2013
Revised on January 9, 2014
Revised on November 20, 2014
Revised on May 21, 2015
Revised on July 16, 2015
Revised on May 18, 2017
Revised on April 18, 2019

This committee resolution stipulates the form and presentation guidelines of the items to be indicated inconnection with the investment report provided in Article 24 and the asset management reports provided in
Article 27 to which the Self-Regulation Committee has been delegated pursuant to the Rules for investment
reports, etc., for investment trusts and investment corporations.

1. The form and the presentation guidelines of items to be indicated pertaining to the investment reportprovided in Article 24 of the Rules shall be as shown in Attached Table 4.
2. The form and the presentation guidelines of items to be indicated pertaining to the asset management reportprovided in Article 27 of the Rules shall be as shown in Attached Table 5.

Supplementary ProvisionThis Sub-Committee resolution shall be implemented from April 1, 2004.

Supplementary ProvisionThis amendment to the resolution of the subcommittee shall come into effect on May 21, 2004.

Supplementary Provision
These amendments shall be effective as of May 1, 2006, and shall apply to investment reports for investment
trusts and asset management reports for investment corporations with settlement of accounts on and after May
1, 2006.

Supplementary ProvisionThis amendment shall come into effect as of July 1, 2006, and shall apply to investment trust management
reports and asset management reports of investment corporations whose settlement of accounts comes on orafter July 1, 2006.
–1–

Supplementary ProvisionThis amendment shall come into effect on September 30, 2007. However, the amended provisions (excluding
Attached Table 5 (22).) shall apply to those whose new accounting period starting on or after the effective date.

Supplementary ProvisionThis amendment shall come into effect as of June 20, 2008 and shall apply to investment trust management
reports and asset management reports of investment corporations whose settlement of accounts comes on orafter June 20, 2008.

Supplementary ProvisionThis amendment shall come into effect as of October 1, 2008 and shall apply to investment trust management
reports and asset management reports of investment corporations whose settlement of accounts comes on orafter October 1, 2008.

Supplementary ProvisionThis amendment shall come into effect on January 16, 2009.

Supplementary ProvisionThis amendment shall come into effect on September 16, 2009.

Supplementary Provision
These amendments shall be effective as of September 15, 2011, and shall apply to business periods beginningon and after April 1, 2011; with respect to business periods beginning before that date, the provisions then inforce shall remain applicable.

Supplementary ProvisionThis amendment shall come into effect on September 12, 2013.

Supplementary ProvisionThis amendment shall come into effect on January 9, 2014.

Supplementary ProvisionThis amendment shall come into effect as of December 1, 2014 and shall apply to investment trust management
reports and asset management reports of investment corporations whose settlement of accounts comes on orafter December 1, 2014.
* The revisions are as follows:(1) Attached Table 4 (20): Revised on statement of expenses related to management, etc., (Table) and added (Notes on
Entries) 3.

–2–

(2) Newly established Attached Table 5 (23) 2.
(3) Attached Table 5 (27) (i): Revised on the status of transactions (Table) and (Notes on Entries) 3.
(4) Attached Table 5 (29) (1): Added items to the balance sheet and added (Notes on Entries) 2. and 3.
(5) Attached Table 5 (29) (2): Added items to the profit and loss statement(6) Attached Table 5 (29) (4): Revised on the statement of changes in investor capital (Table) and added (Notes on Entries)
3. and 4.
(7) Newly established Attached Table 5 (34) (35).

Supplementary Provisions
1. These amendments shall be effective as of the date of enforcement of the amended Ordinance on Investment
Corporation’s Financial Statements (April 1, 2015).
2. With respect to the asset management report for the business period of the investment corporation thatcommenced prior to the effective date of this revised resolution of the Committee, the provisions then in force
shall remain applicable.
* The revisions are as follows:(1) Attached Table 5 (4): Revised on the distributions results (Table) and (Notes on Entries).
(2) Attached Table 5 (29) (1): Added (Notes on Entries) 1 and 3 for the balance sheet. Old 1 changed to 2, and old 2 and 3changed to 4 and 5.
(3) Attached Table 5 (29) (2): Revised on the (Notes on Entries) for the profit and loss statement.
(4) Attached Table 5 (29) (3): Revised on the (Notes on Entries) for the statement of cash distributions. Added 3 and 4.
(5) Attached Table 5 (29) (4): Revised on the (Notes on Entries) for the statement of changes in investor capital.

Supplementary ProvisionThis amendment shall come into effect as of July 16, 2015 and shall apply to investment trust management
reports and asset management reports of investment corporations whose settlement of accounts comes on orafter July 16, 2015.
* The revisions are as follows:(1) Attached Table 4- (12): Revised on the table.
- (14) (i): Added (Notes on Entries) 5. (ii) to (iii) are newly established. Previous (ii) changed to (iv).
- (17) and (18): Added tables.
- (22): Changed the name of the table. Added Table. Revised on (Notes on Entries) 1.
- (25) and (28): Revised on the table.
- (29): Change the name of the table. Revised on the table.
(2) Attached Table 5- (12): Revised on the table.
- (14) (i): Added (Notes on Entries) 5. (ii) to (iii) are newly established. Previous (ii) changed to (iv).
- (17) and (18): Added tables.
- (24): Changed the name of the table. Added Table. Revised on (Notes on Entries) 1.

–3–

- (27): Revised on the table.
- (29) - (2): Established of new items for the profit and loss statement.
- (30): Revised on the table.
- (31): Changed the name of the table. Revised on the table.

Supplementary ProvisionThis amendment shall come into effect on May 18, 2017.
* The revisions are as follows:(1) Attached Table 4 (14) (ii) b(2) Attached Table 5 (14) (ii) b

Supplementary ProvisionThis amendment shall come into effect on May 1, 2019.
* Necessary arrangement in connection with the change of era name–4–

Attached Table 4: form and Presentation Example of Investment Report of Real Estate Investment Trust(Article 22 of the Rules)(1) Changes in investment trust property management status, etc.

Operating Revenue
Ordinary Income
Current Period Net
IncomeTotal Assets

Net Assets

Period [1]From:
MM/DD/YYYY
To: MM/DD/YYYY
Thousands of yen
Thousands of yen

Period [2]From:
MM/DD/YYYY
To: MM/DD/YYYY
Thousands of yen
Thousands of yen

Period [3]From:
MM/DD/YYYY
To: MM/DD/YYYY
Thousands of yen
Thousands of yen

Period [4]From:
MM/DD/YYYY
To: MM/DD/YYYY
Thousands of yen
Thousands of yen

Period [5]From:
MM/DD/YYYY
To: MM/DD/YYYY
Thousands of yen
Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen( % compared to theprevious period)
Thousands of yen( % compared to theprevious period)

Thousands of yen( % compared to theprevious period)
Thousands of yen( % compared to theprevious period)

Thousands of yen( % compared to theprevious period)
Thousands of yen( % compared to theprevious period)

Thousands of yen( % compared to theprevious period)
Thousands of yen( % compared to theprevious period)

Thousands of yen( % compared to theprevious period)
Thousands of yen( % compared to theprevious period)

Yen

Yen

Yen

Yen

Yen

%
(Increase or decrease
from the previous
period)%(Increase or decrease
from the previous
period)%(Increase or decrease
from the previous
period)%(Increase or decrease
from the previous
period)%(Increase or decrease
from the previous
period)Base Value(Net Asset Amountper Unit)
Equity Ratio(Notes on Entries)
1. “Operating Revenues,” “Ordinary Income,” “Net Income for Current Period,” “Total Assets” and “Net Assets” shall be
indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used when deemed appropriate for theprotection of investors.
2. The “Amount of Net Assets per Unit” shall be indicated in units of yen. However, other units may be used.
3. “Equity Ratio” and “Comparison to Previous Period,” shall be rounded off to the second decimal place and indicated to thefirst decimal place.

(3) Status of Trust Principal, etc.
MM/DD/YYYY

Description

Number of Units of Beneficial
Interest Issued
Increase or
Balancedecrease

Total Amount of Trust Principal
Increase or
decrease

Remarks
Balance(Notes on Entries)
1. The “Description” shall indicate whether it is a “Capital Increase” (public offering or private placement), “Installments” or“Amalgamation,” etc., separately.
2. The “Total Amount of Trust Principal” shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may
be used when deemed appropriate for the protection of investors.
3. “Remarks” shall indicate the reasons for the act and other matters deemed important for investor protection.

–5–(4) Performance of Distributions, etc.

Total Net Income for
Current Period

Period [1]Period [2]Period [3]Period [4]Period [5]
From:
From:
From:
From:
From:
MM/DD/YYYY
MM/DD/YYYY
MM/DD/YYYY
MM/DD/YYYY
MM/DD/YYYY
To: MM/DD/YYYY To: MM/DD/YYYY To: MM/DD/YYYY To: MM/DD/YYYY To: MM/DD/YYYY
Thousands of yen
Thousands of yen
Thousands of yen
Thousands of yen
Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Retained Earnings
Thousands of yen
Thousands of yen
Thousands of yen
Thousands of yen
Thousands of yen
Total Cash(__________ yen)(__________ yen)(__________ yen)(__________ yen)(__________ yen)
Distributions(Distributions per
Unit)
Thousands of yen
Thousands of yen
Thousands of yen
Thousands of yen
Thousands of yen
Of which,
Total Profit(__________ yen)(__________ yen)(__________ yen)(__________ yen)(__________ yen)
Distributions(Profit Distributions
per Unit)
Thousands of yen
Thousands of yen
Thousands of yen
Thousands of yen
Thousands of yen
Of which,Total(__________ yen)(__________ yen)(__________ yen)(__________ yen)(__________ yen)
Return of Investment
Principal(ReturnonofEntries)
Investment(NotesPrincipal
per Unit)of “Total Net Income for Current Period ,” “Retained Earnings,” “Total Cash Distributions,” “Total Profit
1. The amounts
Distributions,” and “Total Return of Investment Principal” shall be indicated in units of 1,000 yen or 1,000,000 yen, and theamounts of “Distribution Per Unit,” “Profit Distribution Per Unit,” and “Return of Investment Principal per Unit” shall be
indicated in units of yen. However, other units may be used when deemed appropriate for the protection of investors.

(12) Composition of Investment Trust Property
Total Holdings

R e a lProportion to Total Assets

Actual Real Estate Holdings

Proportion to Total Assets

Thousands of yen%

E s t a t e
Thousands of yen%

Thousands of yen

Renewable Energy Power Generation Facilities
Right to Operate Public Facilities etc.
･･

O t h e r
T o t a l･･･

A s s e t s
A s s e t s%
Thousands of yen

Thousands of yen%

Rights of Lease of Real Estate

Silent Partnership Equity

Thousands of yen
Thousands of yen

Superficies Rights

Trust Beneficiary Interest in Real Estate

Amount of Assets Held in Foreign
Currencies
Valuati on Gains or Losses of Foreign Exchange Proportion to Total Assets%
Thousands of yen

Thousands of yen
Thousands of yen%

Thousands of yen%

Thousands of yen%

Thousands of yen%

Thousands of yen%

Thousands of yen%

Thousands of yen%

Thousands of yen%

Thousands of yen%

Thousands of yen%

Thousands of yen%

Thousands of yen%

Thousands of yen%

Thousands of yen%%
Thousands of yen

Thousands of yen%
Thousands of yen

Thousands of yen%
Thousands of yen

Thousands of yen%
Thousands of yen

Thousands of yen%
Thousands of yen

Thousands of yen%
Thousands of yen

Thousands of yen%
Thousands of yen

Thousands of yen(Notes on Entries)
1. When “Superficies Rights” and “Rights of Lease of Real Estate” are held together with buildings, etc., they shall be
combined and indicated together with buildings, etc., in the “Real Estate” field.
2. “Total Holdings” shall indicate the book value at the end of the period including the amount of foreign
currency-denominated assets held. “Actual Real Estate Holdings” shall indicate the amount obtained by deducting cash, etc.,
held in said assets from the book value of the asset at the end of the period.
3. For “Proportion to Total Assets,” the ratio of the “Actual Real Estate Holdings” of the relevant assets to the total amounts of–6–%

assets should be written in parenthesis.
4. “Foreign Currency-Denominated Assets Held,” shall indicate the amount of overseas real estate, etc., held out of the total
holdings, valuated and converted at the exchange rate at the time of acquisition. “Valuation Gains or Losses of Foreign
Exchange” shall display the amount obtained by subtracting the book value at the end of the period valuated and converted at
the exchange rate at the time of acquisition from the book value at the end of the period valuated and converted at theexchange rate at the end of the period. “Proportion to Total Assets” shall indicate the ratio of said assets to the total amount ofassets.
5. “Proportion to Total Assets” shall be rounded off to the second decimal place and indicated to the first decimal place.
6. The “Total Holdings,” “Actual Real Estate Holdings,” “Foreign Currency-Denominated Assets Held” and “Valuation Gains
or Losses of Foreign Exchange” shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used
when deemed appropriate for the protection of investors.
7. The field “Foreign Currency-Denominated Assets Held” may be omitted if there are no overseas real estate holdings.

(13) Major Assets Held
Name of Real Estate,
etc.
____Building (Trust
Beneficiary Right)

Total

Occupancy
Leased Area
Rate

Proportion
to Total
RentalBusiness
RevenueBook Value

Leasable Area

Thousands ofyen
Thousands ofyen
Thousands of
yen

m2

m2

%

%

m2

m2

%

%

m2

m2

%

%

Thousands ofyen
Thousands of
yen

m2

m2

%

%

m2

m2

%

%

Thousands of
yen

m2

m2

%

%

Principal Use(Notes on Entries)
1. “Name of Real Estate, etc.,” shall indicate the name, etc., indicated in the Securities Registration Statement, etc.
2. “Book Value” shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used when deemed
appropriate for the protection of investors.
3. For the number of properties, land, buildings, Superficies Rights, leasehold rights, etc., located at the same parcel number,etc., shall be counted as one property.
4. “Leasable Area” and “Leased Area” shall be indicated in units of m2. However, other units may be used when deemed
appropriate for the protection of investors.
5. The “Occupancy Rate” (the ratio of leased area to the leasable area at the end of the relevant accounting period) and the“Proportion to Total Rental Business Revenue” shall be rounded off to the second decimal place and indicated to the firstdecimal place. However, other units may be used when deemed appropriate for the protection of investors.
6. The term “Principal Use” shall indicate what is deemed appropriate as the “Principal Use” of the relevant asset or theunderlying asset of the said asset at the discretion of the investment trust entrustment business, taking into considerationsuch factors as the ratio of rental area and rental revenue by use for the said asset or the underlying asset of the said asset.

–7–(14) Details of Incorporated Assets(i) Details of Incorporated Assets in Real Estate, etc.
Prior Period (MM/DD/YYYY toCurrent Period (MM/DD/YYYY to
MM/DD/YYYY)
MM/DD/YYYY)
Name ofCalculated Total
Total
During Proportion
During Proportion
Real
Form of Value at Number Occupancy
Number Occupancy Rental to Total
Location
Rental to Total
Estate,Ownership the End of
of
Rate
of
Rate
Business Rental
Business Rental
etc.
Period Tenants at End of
Tenants at End of Earning Business
Earning Businessat End of the Period
at End of the Period Period Revenue
Period Revenue
the Period
the PeriodTokyo○○ WardTotal–

Thousands ofyen
Thousands ofyen–

Thousands ofyen
Thousands ofyen
Thousands ofyen

Thousands ofyen
Thousands of%yen%

Thousands ofyen
Thousands of%yen
Thousands of
%
yen
%

%
%
%
%
%

Thousands ofyen
Thousands of%yen%

Thousands ofyen
Thousands of%yen
Thousands of
%
yen
%

%
%
%
%
%

(Notes on Entries)
1. The field “Calculated Value at the End of Period,” shall indicate the appraised value at the end of period, which is calculatedby the valuation method stipulated in Article 5 and Article 6 of the Rules on Real Estate Investment Trusts and Real Estate
Investment Corporations. For overseas real estate, etc., the appraised value at the end of period shall be indicated in Japanese
yen converted at the exchange rate at the end of the period.
For overseas real estate, etc., the amount in the currency of acquisition of the relevant assets shall be indicated in parenthesesin accordance with the unit of the amount indicated in Japanese currency conversion. However, the Total field need not beshown in the currency of such acquisition.
2. If the asset is overseas real estate, etc., the amount of “Rental Business Revenue” shall be the amount of rental businessrevenue valuated and converted at the exchange rate at the end of the period.
With regard to overseas real estate, etc., the amount in the currency in which such rental business revenue is received shallbe indicated in parentheses in accordance with the unit of the amount indicated in Japanese currency. However, the Total
field need not be shown in such receiving currency.
3. Figures for “Calculated Value at the End of Period” and “Rental Business Revenue” shall be indicated in units of 1,000 yen
or 1,000,000 yen. However, other units may be used when deemed appropriate for the protection of investors.
4. The “Occupancy Rate” (the ratio of leased area to the leasable area at the end of the relevant accounting period) and the“Proportion to Total Rental Business Revenue” shall be rounded off to the second decimal place and indicated to the firstdecimal place.
5. The land and other assets shown in “(ii) Details of Renewable Energy Power Generation Facilities, etc.” and “(iii) Details ofRights to Operate Public Facilities, etc.” shall not be indicated.

–8–

(ii) Details of Renewable Energy Power Generation Facilities, etc.
(a) Summary Table(Unit:_____)
Type ofAssetsBalance attheBeginningof Current
PeriodIncrease
DuringCurrent
PeriodDecrease
DuringCurrent
PeriodBalanceat the End
of Current
PeriodAccumulated Depreciation or
Accumulated
Amortization

Amortization
for Current
PeriodBalanceat End ofCurrent
PeriodDescription

Liquid Assets

Total

Tangible Fixed Assets
Total
Intangible Fixed Assets

Total(Notes on Entries)
1. Land and other assets used for power generation projects associated with renewable energy power generation facilities shallalso be indicated.
2. The “Liquid Assets,” “Tangible Fixed Assets,” and “Intangible Fixed Assets” fields shall be indicated according to theclassification of the items listed in the balance sheet.
3. The fields for “Balance at the Beginning of the Current Period,” “Increase During Current Period,” “Decrease During
Current Period,” and “Balance at the End of the Current Period,” shall be indicated based on the acquisition price of theapplicable assets.
4. Note the details of the increase and decrease during the current period.
5. If there is an increase or decrease in the amount exceeding 1% of the total amount of assets of the same type, the reason for
the increase or decrease shall be indicated in the “Description” field.
6. If the acquisition cost is revised due to special reasons, such revaluation differences, etc., shall be displayed as an internal
note (in parentheses) in the “Increase During Current Period” or “Decrease During Current Period” fields, and the reason forincrease or decrease shall be indicated in the “Description” field.

–9–(b) Details of Renewable Energy Power Generation Facilities, etc.
Date of Certification

Name of Certified Business
Operator, etc.

Name of the Other Party of theSpecified Contract, etc.

Procurement Price, etc.

Procurement Period, etc.

Date of Acquisition

-

-

-

-

-

-

-

-

-

Subtotal

-

-

-

-

-

-

-

-

-

-

-

-

Subtotal

-

-

-

-

-

-

-

-

-

-

-

-

Subtotal

-

-

-

-

-

-

-

-

-

-

-

-

Total

-

-

-

-

-

-

-

-

-

-

-

-

Status of Collateral

Structure-

Book Value at the End of
Current Period

Districts and Zones-

Acquisition Cost

Location-

Site Area

Name

SubtotalClassification of
Equipment, etc.

No.

(Notes on Entries)
1. Land and other assets used for power generation projects associated with renewable energy power generation facilities shallalso be indicated.
2. In the “Name” field, indicate the name which adequately represents the renewable energy power generation facility, such as
the name of the facility described in the application for approval by the Minister of Economy, Trade and Industry pursuant to
Article 9, Paragraph 3 of the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy
Sources by Electricity Utilities.
3. In the “Location” field, indicate the location (up to the lot number) of the renewable energy power generation facility and theland and other assets to be used for the power generation project incidental thereto (hereinafter referred to as “renewableenergy power generation facility, etc.” in (b) and (c)).
4. In the “Districts and Zones” field, the use district listed in Article 8, Paragraph 1, Item 1 of the City Planning Act (Act No.
100 of 1968) shall be indicated.
5. In the “Structure” field, indicate the structure, etc., of the renewable energy power generation facility (in the case of land, theland classification).
6. In the “Date of Certification” field, enter the date of approval by the Minister of Economy, Trade and Industry pursuant to
the provision in Article 9, Paragraph 3 of the Act on Special Measures Concerning Procurement of Electricity from
Renewable Energy Sources by Electricity Utilities when the renewable energy power generation facilities fall under the
category of certified power generation facilities (if any change has been approved pursuant to the provision in Article 10,
Paragraph 1 of the same Act, the date of certification and the details of such change, and if any change has been notified
pursuant to the provision in Paragraph 2 or 3 of the said Article, the date of acceptance of such notification and the details ofsuch change shall be included).
7. In the “Name of Certified Business Operator, etc.” field, when the renewable energy power generation facilities fall under
the category of certified power generation facilities, the name of the certified business operator shall be indicated, and inother cases, the name of the person who is considered the provider shall be indicated.
8. In the “Name of the Other Party of the Specified Contract, etc.” field, the name of the other party of the specific contract shall–10–

be indicated when the renewable energy power generation facilities fall under the category of certified power generation
facilities, and in other cases, the name of the other party of the electricity supply contract shall be indicated.
9. In the “Procurement Price, etc.” field, indicate the procurement price when the renewable energy power generation facilities
fall under the category of certified power generation facilities, otherwise, the price per kilowatt hour of renewable energy
electricity to be supplied under the power supply contract shall be indicated.
10. In the “Procurement Period, etc.” field, indicate the procurement period when the renewable energy power generation
facilities fall under the category of certified power generation facilities, or the contract period of the power supply contract inother cases.
11. In the “Date of Acquisition” field, indicate the date of acquisition of the renewable energy power generation facility, etc.
12. Subtotals in the “Site Area,” “Acquisition Cost” and “Book Value at the End of the Current Period” fields shall be thesubtotal for each category of facilities.
13. In the “Status of Collateral” field, if the renewable energy power generation facility, etc. in question is pledged as collateral,
an indication to that effect shall be given.
14. The “No.” field shall be consistent with the organization No. of such renewable energy power generation facilities in “(c)Details of Revenue Status of Renewable Energy Power Generation Facilities, etc.”(c) Details of Revenue Status of Renewable Energy Power Generation Facilities, etc.
Organization No.

Name of
Property___th Period
MM/YYYY to
MM/YYYY___th Period
MM/YYYY to
MM/YYYY

Location

Renewable Energy
Power Generation
Facilities
Land
Building
Renewable Energy
Power Generation
Facilities
Land
Building

Item
Rental Business
Revenue Rent
・・・・・
Rental Business
Revenue
Subtotal A
Rental Business
Expenses
Taxes and Levies(of which, Property tax)
Miscellaneous Expenses(of which, ・・・・)(of which, ・・・・)
Depreciation(of which, ・・・・)(of which, ・・・・)
・・・・・
Rental Business
Expenses
Subtotal B
Renewable Energy
Power Generation
Equipment Rental
Business Profits andLossesA - B–11–___th Period
MM/YYYY to
MM/YYYY___th Period
MM/YYYY to
MM/YYYY___th Period
MM/YYYY to
MM/YYYY

(Notes on Entries)
1. This table shall be prepared for each renewable energy power generation facility. When land or other assets used for power
generation business are leased as one unit, revenues and expenses related to such assets shall also be indicated. If therenewable energy generation facility and land or other assets are managed in an integrated manner, such properties are notprecluded from being prepared as a single property.
2. Shall prepare for the past five periods.
3. For miscellaneous expenses and costs, enter utility costs, subcontract management costs, and repair costs, etc.
4. In addition to machinery and equipment, depreciation expenses shall also indicate buildings, appliances, fixtures, etc.,
relevant to the renewable energy power generation facility.

(iii) Details of Rights to Operate Public Facilities, etc.
(a) Summary Table(Unit:_____)
Type ofAssetsBalance attheBeginningof Current
PeriodIncrease
DuringCurrent
PeriodDecrease
DuringCurrent
PeriodBalanceat the End
of Current
PeriodAccumulated Depreciation or
Accumulated
Amortization

Amortization
for Current
PeriodBalanceat End ofCurrent
PeriodDescription

LiquidAssetsTotal
Tangible Fixed
Assets
Total
Intangible Fixed
Assets

Total(Notes on Entries)
1. The Right to Operate Public Facilities, etc., public facilities etc., pertaining to the Right to Operate Public Facilities etc., andland and other assets acquired incidental to the business of operating public facilities etc., pertaining to the Right to Operate
Public Facilities, etc. (hereinafter referred to as “Right to Operate Public Facilities, etc.” in (b) and (c)) shall be indicated.
2. The “Liquid Assets,” “Tangible Fixed Assets,” and “Intangible Fixed Assets” fields shall be indicated according to theclassification of the items listed in the balance sheet.
3. The fields for “Balance at the Beginning of the Current Period,” “Increase During Current Period,” “Decrease During
Current Period,” and “Balance at the End of the Current Period,” shall be indicated based on the acquisition price of theapplicable assets.
4. Note the details of the increase and decrease during current period.
5. If there is an increase or decrease in the amount exceeding 1% of the total amount of assets of the same type, the reason for
the increase or decrease shall be indicated in the “Description” field.
6. If the acquisition cost is revised due to special reasons, such revaluation differences, etc. shall be displayed as an internal
note (in parentheses) in the “Increase During Current Period” or “Decrease During Current Period” fields, and the reason forincrease or decrease shall be indicated in the “Description” field.

–12–

(b) Details of the Right to Operate Public Facilities, etc.
No.

Name

Matters Regarding the Right to Operate
Public Facilities, etc.

Matters Regarding Public Facilities, etc.

Status of CollateralBook Value at the End of
Current Period

Acquisition Cost

Date of Acquisition

Duration

Total Area

Structure

Name of the other party to theentrustment contract for theoperation of public facilities, etc.

Name of Manager, etc.

Districts and Zones

Location(Notes on Entries)
1. If land or other assets are acquired incidental to the management of public facilities pertaining to the Right to Operate Public
Facilities, the relevant assets shall also be indicated in the fields for “No.,” “Name,” “Location,” “Districts and Zones,”“Structure,” “Total Area,” “Date of Acquisition,” “Acquisition Cost,” “Book Value at the End of Current Period,”and“Status of Collateral.”
2. In the “Location” field, indicate the location (up to the lot number) of such public facilities, etc.
3. In the “Districts and Zones” field, the use district listed in Article 8, Paragraph 1, Item 1 of the City Planning Act shall be
indicated.
4. In the column of “Name of Manager, etc.,” indicate the name of the manager, etc., of such public facilities, etc.
5. In the “Structure” field, indicate the structure (land category in the case of land) of such public facilities, etc.
6. In the “Duration” field, the duration (beginning and ending) of the said Right to Operate Public Facilities, etc. shall be
indicated.
7. In the “Date of Acquisition” field, indicate the date of acquisition of the Right to Operate Public Facilities, etc.
8. In the “Status of Collateral” field, if the Right to Operate Public Facilities, etc,. is pledged as collateral, an indication to that
effect shall be given.
9. The “No.” field shall be consistent with the organization No. in “(c) Details of Revenue Status of Right to Operate Public
Facilities, etc.”(c) Details of Revenue Status of Right to Operate Public Facilities, etc.
Organization
No.

Name of Property

Right to Operate Public
Facilities, etc.
Land
Building
Right to Operate Public
Facilities, etc.
Land
Building–13–

Location

Item___th Period
MM/YYYY to
MM/YYYY___th Period
MM/YYYY to
MM/YYYY___th Period
MM/YYYY to
MM/YYYY___th Period
MM/YYYY to
MM/YYYY___th Period
MM/YYYY to
MM/YYYY

Revenue from public
facilities operating
business
・・・・・
Revenue from public
facilities operating
business
Subtotal A
Operating Business
Expenses
Taxes and Levies(of which, Property tax)
Miscellaneous Expenses(of which, ・・・・)(of which, ・・・・)
Depreciation or
Amortization(of which, ・・・・)(of which, ・・・・)
・・・・・
Expenses for public
facilities operating
business
Subtotal B
Profit and loss frompublic facilities
operating business
A-B(Notes on Entries)
1. This table shall be prepared for each Right to Operate Public Facilities, etc. If land or other assets are acquired incidental tothe operation of public facilities, etc., pertaining to the Right to Operate Public Facilities, etc., such assets shall also be
indicated.
2. Shall prepare for the past five periods.
3. For miscellaneous expenses and costs, enter utility costs, subcontract management costs, and repair costs, etc.
4. Depreciation or amortization shall include not only the Right to Operate Public Facilities, etc., but also assets acquired
incidental to the operating project.
5. If the operating business expenses include the expenses prescribed in Article 20 of the Act on Promotion of Private FinanceInitiative, the amount and the breakdown of the amount shall be stated in the margin.

(iv) Details of Assets Incorporated in Securities
Name of Stocks

Total

Book Value

Type ofAssetsAppraised Value

Quantity
Unit Price––

AmountThousands ofyen
Thousands ofyen
Thousands of–yen

Unit Price

AmountValuation
profit or loss

Thousands of Thousands ofyenyenThousands of Thousands ofyenyenThousands of Thousands of
–
yen
yen

Remarks–(Notes on Entries)
1. The “Book Value,” “Appraised Value,” and “Valuation Profit or Loss” fields shall be indicated in units of 1,000 yen or
1,000,000 yen. However, other units may be used when deemed appropriate for the protection of investors.

–14–(15) Status of Other Assets(i) Stocks and investment securities
Issue

Numberof
SharesAcquisition Cost
Unit PriceAppraised Value

AmountUnit Price

AmountValuation
Profit or
Loss

Remarks

Total(ii) Securities other than stocks

Type

Issue

Total
Face
Value

(Unit:
Book
Value

AccruedInterest
IncomeAdvance
Payments
Accruedinterest

Appraised
Value

Valuation
Profit or
Loss)

RemarksTotal(iii) Detailed Statement of Margin Transaction Balance(Unit:

Margin Transaction
Issue

Number of
Shares Sold

Book Value

Appraised Value–15–

Valuation profit
or loss

Remarks)

(iv) Table of Contract Amount and Market Value of Specified Transactions and Exchange Contract
Transactions, etc.
Category(Unit:
Contract Amount, etc.
Of which, morethan one year

Type

Current Value

Market Transactions
Transactions other than Market Transactions

Futures Transactions
Sell contracts
Buy contracts
Option Trading
Sell contracts
Call
Put
Buy contracts
Call
Put
Forward Transactions
Sell contracts
Buy contracts
Exchange Contract Transaction
Sell contracts
Buy contracts
Option Trading
Sell contracts
Call
Put
Buy contracts
Call
Put
Swap Transactions
Variable Receipts and
Fixed Payments
Fixed Receipts andVariable Payments
OthersTotal(v) Details of Other Specified Assets
Type ofSpecified
Assets)Quantity(Unit:)

Book Value
Unit Price

AmountAppraised Value
Unit Price

Total

–16–

AmountValuation
profit or
loss

Remarks

(16) Status of Asset Holdings by Country and Region
Country

Calculated Value atthe End of Period

Total Holdings

Number of
Properties

Proportion to
Total Assets

Japan

Thousands of yen

Thousands of yen%

Properties

U.S.A.

Thousands of yen

Thousands of yen%

Properties･･･

Thousands of yen

Thousands of yen%

Properties

Total

Thousands of yen

Thousands of yen

100%

Properties(Notes on Entries)
1. The “Total Holdings” shall indicate the book value at the end of the period, and the “Calculated Value at the End of Period”
shall indicate the appraised value at the end of period in accordance with the valuation methods set forth in Article 5 andArticle 6 of the Rules on Real Estate Investment Trusts and Real Estate Investment Corporations. Amounts shall be indicatedin units of 1,000 yen or 1,000,000 yen. However, other units may also be indicated together when deemed appropriate for theprotection of investors.
2. The “Total Holdings” of overseas real estate, etc., shall be converted into Japanese yen using the exchange rate at the time ofacquisition, and the “Calculated Value at the End of Period” shall be converted into Japanese yen using the exchange rate at
the end of the period.
3. The “Proportion to Total Assets” shall indicate the ratio of the calculated value at the end of the period of each relevant
country or region to the total calculated value at the end of the period, and shall be rounded off to the second decimal placeand indicated to the first decimal place.

(17) Schedule of Capital Expenditures
Estimated Amount for Work
Construction Cost
Total Amount Paid
or Payment Amount

Name of Real Estate,
etc.

Location

PurposeEstimated Duration○○ Building

Chuo Ward,Tokyo○○ RenovationWork

From : MM/DD/YYYY
To: MM/DD/YYYY

Thousands of yen

Thousands of yen

Thousands of yen○○ Building

Chuo Ward,Tokyo○○ RenovationWork

From : MM/DD/YYYY
To: MM/DD/YYYY

Thousands of yen

Thousands of yen

Thousands of yen

Name of
Infrastructure Assets,
etc.

Location

PurposeEstimated Duration

Chuo Ward,Tokyo
Chuo Ward,Tokyo○○ Renovation
Work○○ RenovationWork

From : MM/DD/YYYY
To: MM/DD/YYYY
From : MM/DD/YYYY
To: MM/DD/YYYY

○○○○
○○○○

Total

Total

Estimated Amount for Work
Construction Cost
Total Amount Paid
or Payment AmountThousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen(Notes on Entries)
1. The “Construction Cost or Payment Amount” shall be indicated on a work basis or on a payment basis inunits of 1,000 yen or 1,000,000 yen. However, other units may be used when deemed appropriate for the protection of
investors.
2. For “Construction Cost or Payment Amount,” specify in the margin that the amount is indicated on a “workbasis” or “payment basis.”(18) Capital Expenditures during the Period
Name of Real
Estate, etc.

Location○○ Building○○ Ward, Tokyo○○ Building○○ Ward, Tokyo

Purpose

Period○○ Renovation
Work○○ RenovationWork

From: MM/DD/YYYY
To: MM/DD/YYYY
From: MM/DD/YYYY
To: MM/DD/YYYY–17–

Construction Cost or
Payment AmountThousands of yen
Thousands of yen

Name of
Infrastructure
Assets, etc.

Location○○○○○○ Ward, Tokyo○○○○○○ Ward, Tokyo

Construction Cost or
Payment AmountPurpose

Period○○ Renovation
Work○○ RenovationWork

From: MM/DD/YYYY
To: MM/DD/YYYY
From: MM/DD/YYYY
To: MM/DD/YYYY

Thousands of yen
Thousands of yen(Notes on Entries)
1. The “Construction Cost or Payment Amount” shall be indicated on a work basis or payment basis in units of 1,000 yen or
1,000,000 yen. However, other units may be used when deemed appropriate for the protection of investors.
2. For “Construction Cost or Payment Amount,” it should be clearly indicated in the margin that it is indicated on a “Work
Basis” or “Payment Basis.”(19) Money Accumulated for Long-Term Repair Plans___th Period___th Period___th Period___th Period___th Period
From: MM/DD/YYYY From: MM/DD/YYYY From: MM/DD/YYYY From: MM/DD/YYYY From: MM/DD/YYYY
To: MM/DD/YYYY To: MM/DD/YYYY To: MM/DD/YYYY To: MM/DD/YYYY To: MM/DD/YYYYBusiness Period

Balance of Funds
Thousands of yen
Thousands of yen
Thousands of yen
Thousands of yen
Thousands of yen
Reserved at the End of
the Previous Period
Amount Reserved forThousands of yen
Thousands of yen
Thousands of yen
Thousands of yen
Thousands of yen
Current period
Amount of Reversal ofThousands of yen
Thousands of yen
Thousands of yen
Thousands of yen
Thousands of yen
Reserve for Current
PeriodAmount Carried
Thousands of yen
Thousands of yen
Thousands of yen
Thousands of yen
Thousands of yen
Forward(Notes on Entries)
1. The “Reserve Fund” referred to in this table refers to the money that must be actually set aside systematically and regularly
each period from surplus cash flow such as depreciation expenses, etc. (including that associated with profits internallyretained) in accordance with the long-term repair plan indicated in the asset management plan stipulated in Article 9,
Paragraph2 of the Rules on Real Estate Investment Trusts and Real Estate Investment Corporations.
2. Amounts shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used when deemed
appropriate for the protection of investors.

(20) Details of Expenses for Management, etc.
Item(a) Total Trust Fees

Current Period

Description of Service

Thousands of yen

Consignor Fees
Of which, clerical service charge

Thousands of yen
Thousands of yen

Trustee Fees

Thousands of yen(b) Other Expenses

Thousands of yen
Total

Thousands of yen(Notes on Entries)
1. Amounts shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used when deemed
appropriate for the protection of investors.
2. For “(b) Other Expenses,” if there are expenses directly paid from the investment trust property other than trust fees, the total
amount shall be displayed.
3. In the “Description of Service” field, the details of expenses for which each expense is a consideration shall be described,
and for “(b) Other Expenses,” the details of services for which each cost is a consideration shall be described upondescribing the breakdown of specific costs.

–18–

(21) Status of Borrowing
Category
LenderShort-Term Loans

Total

Long-Term Loans

Total

Date of
Borrowing

Balance at the Balance at
AverageEnd of the the End ofInterestPrevious
Current
Rate
PeriodPeriodThousands ofyen
Thousands ofyen
Thousands ofyen
Thousands ofyen
Thousands ofyen
Thousands ofyen
Thousands ofyen
Thousands ofyen

Repayment Method of
Due Date Repayment

Use

Description

Thousandsof yenThousandsof yenThousandsof yenThousandsof yenThousandsof yenThousandsof yenThousandsof yenThousandsof yen(Notes on Entries)
1. In principle, loans shall be classified into short-term and long-term and indicated by lender.
2. “Average Interest Rate” shall indicate the weighted average interest rate.
3. “Method of Repayment” shall indicate the method of repayment such as equal repayment of principal, equal repayment ofinterest, or lump-sum repayment on due date, etc.
4. “Description” shall indicate whether collateral is pledged or not, the name of the collateral, and any other special notes.
5. “Balance at the End of the Previous Period” and “Balance at the End of the Current Period” shall be indicated in units of
1,000 yen or 1,000,000 yen. However, other units may be used when deemed appropriate for the protection of investors.

(22) Trading Status of Real Estate, etc., Asset-Backed Securities, etc., and Infrastructure Assets, etc., andInfrastructure-Related Assets, etc.
Name of Real
Estate, etc.
○○ Building (Real
Estate)Acquisition
Date of
Acquisition

Total

Name of
Infrastructure
Assets, etc.
○○○○
(Infrastructure
Assets)

Total

Acquisition Cost

Transfer
Date ofTransfer

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Acquisition
Date of
Acquisition

Amount of Transfer

Acquisition Cost

Book Value
Thousands of yen
Thousands of yen
Thousands of yen

Profit or Loss on
Sale
Thousands of yen
Thousands of yen
Thousands of yen

Transfer
Date ofTransfer

Amount of Transfer

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Book Value
Thousands of yen
Thousands of yen
Thousands of yen

Profit or Loss on
Sale
Thousands of yen
Thousands of yen
Thousands of yen(Notes on Entries)
1. The “Acquisition Cost” shall indicate the amount (sales price indicated in the sales contract, etc.) that does not include
various expenses required for the acquisition of the relevant real estate, etc., and infrastructure assets, etc. (real estate sales
intermediary fees, sales commissions, etc. incurred when acquiring infrastructure assets, etc.), and a note to that effect shallbe indicated in the margin.
2. “Acquisition Cost,” “Transfer Value,” “Book Value” and “Profit or Loss on Sale” shall be indicated in units of 1,000 yen or
1,000,000 yen. However, other units may be used when deemed appropriate for the protection of investors.

–19–(23) Sales and Purchase of Other Assets, etc.
PurchasedType of Assets

SharesNumber of
Certificates,
etc.

AmountThousands of
yen

Sold
Number of
Certificates,
etc.

AmountThousands ofyen

Balance at the End of Current
PeriodNumber ofAmountCertificates,
etc.
Thousands ofyen

Investment
Securities

Thousands ofyen

Thousands ofyen

Thousands of
yen

Bonds

Thousands ofyen

Thousands ofyen

Thousands of
yen

････

Thousands ofyen

Thousands ofyen

Thousands of
yen

Total

Thousands ofyen

Thousands ofyen

Thousands ofyen(Notes on Entries)
1. The “Amount” shall indicate the delivery price (amount not including accrued interest and various expenses (trading
commissions for sale and purchase, etc.)) and shall make a note to that effect in the margin.
2. “Amount” shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used when deemed
appropriate for the protection of investors.

(25) Status of Transactions with Interested Parties and Major Shareholders(i) Status of Transactions
Transaction Amount, etc.
Category
Amount of Purchase, etc.

Total AmountAmount of Sale, etc.

Thousands of yen

Thousands of yen

Of which, the amount to be purchased frominterested parties, etc. ___,000 yen ( %)Of which, the amount of sales to interested
parties, etc. ___,000 yen ( %)Breakdown of Status of Transaction with Interested Parties, etc.
_AAA Co., Ltd.

___,000 yen (%)___,000 yen (%)

BBB Co., Ltd.

___,000 yen (%)___,000 yen (

%)

Total

___,000 yen (%)___,000 yen (%)(ii) Amount of Payment Fees, etc.
Classification(Building) Management
Service Fees
Real Estate Transaction
Fees
Commission for Sale ofTrust Beneficiary Right
Commissions Incurred in
Acquiring Infrastructure
Assets, etc.
……

Payment Fees, etc.
Total Amount (A)Breakdown of Transactions with Interested
Parties, etc.
Payee

Payment Amount (B)Percentage to
Total Amount(B/A) %AAA Co., Ltd.

Thousands of yen%

BBB Co., Ltd.

Thousands of yen%

Thousands of yen

CCC Co., Ltd.

Thousands of yen%

Thousands of yen

DDD Co., Ltd.

Thousands of yen%

Thousands of yen

EEE Co., Ltd.

Thousands of yen%

Thousands of yen……

Thousands of yen%

Thousands of yen–20–

(Notes on Entries)
1. Figures in parenthesis ( ) shall indicate the ratio to the total amount of each item rounded off to the second decimal place.
2. “Amount of Purchase, etc.,” “Amount of Sale, etc.” and “Amount of Payment Fees, etc.” shall be indicated in units of 1,000
yen or 1,000,000 yen. However, other units may be used when deemed appropriate for the protection of investors.
3. When transactions with interested persons, etc. and major shareholders are made in foreign currencies, the amount shall be
converted into Japanese yen at the exchange rate at the time of transaction and indicated in units of 1,000 yen or 1,000,000
yen. However, other units may be used when deemed appropriate for the protection of investors. The amount in the currency
in which such transaction is made shall be indicated in parentheses in the unit corresponding to the unit of the amountconverted into Japanese yen. However, the total field need not be shown in the currency in which such transaction is made.
4. If monetary payments are made to interested parties other than payment fees, etc., as described above, important mattersamong them shall be noted in the margin.

(26) Status, etc., of Transactions with the Entrusted Business Operator Pertaining to the Subsidiary BusinessConducted by the Entrusted Business Operator
Name of fees__th Period
From: MM/DD/YYYY
To: MM/DD/YYYY

Securities Transaction Fees

Thousands of yen････

Thousands of yen

Total

Thousands of yen(Notes on Entries)
1. A note in the margin shall be made concerning subsidiary business to the effect that “Subsidiary Business for this period is,○○, ×× and ････ ”
2. Amounts shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used when deemed
appropriate for the protection of investors.

(27) Status of Assets, Liabilities, Principal, and Profit and Loss
(Refer to Attached Table 5 (29))(28) Change in Method of Calculating Depreciation
AmountCalculation
Amount Calculated
Date of Change in
Calculated Using Newly Adopted
Method Adopted
by the Method of
Calculation
the Pre-change Calculation Method
Before theCalculation After
MethodCalculation
After Change
ChangeChangeMethodReason for
ChangeOthers○○ Building
Equipment
×× Building
Equipment
○○○○
○○○○

(Notes on Entries)
1. “Amount Calculated” shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used when
deemed appropriate for the protection of investors.

(29) Change in Valuation Method of Real Estate, etc. and Infrastructure Assets, etc.
Date of Change
Valuationof Valuation Method Adopted
MethodBefore Change

Appraised Value
Using thePre-change
Valuation
MethodNewly Adopted
Valuation Method
After Change○○ Building
×× Building
○○○○
○○○○

–21–

Appraised Value
After Change

Reason for
ChangeOthers(Notes on Entries)
1. “Appraised Value” shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used when deemed
appropriate for the protection of investors.

(30) Status, etc., of In-House Establishment of Investment Trust Beneficiary Certificates, etc.
(i) Status of Acquisition, etc.
Date:
MM/DD/YYYY

Number of Units
Acquired

Number of Units
Disposed

Number of Units
Held

Cumulative Total(Notes on Entries)
1. In the “Number of Units Held” field, enter the number of units the investment trust management company continues to holdafter the relevant acquisition, etc.
2. In the “Cumulative Total” field, enter the number of units acquired and disposed of over the past five years, including the endof the current period, the cumulative total of each, and the number of units held at the end of the current period.

(ii) Status of Holdings, etc.
Number of Units
Held at End of
PeriodTotal Holdings at
End of Period

Ratio to Total
Number of Units
Issued__th Period
From: MM/DD/YYYY
To: MM/DD/YYYY__th Period
From: MM/DD/YYYY
To: MM/DD/YYYY__th Period
From: MM/DD/YYYY
To: MM/DD/YYYY__th Period
From: MM/DD/YYYY
To: MM/DD/YYYY__th Period
From: MM/DD/YYYY
To: MM/DD/YYYY(Notes on Entries)
1. “Total Holdings at End of Period” shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be
used when deemed appropriate for the protection of investors.
2. In the column of “Ratio to Total Number of Units Issued,” the ratio of the number of units held at the end of the period to thetotal number of units issued shall be rounded off to the second decimal place and indicated to the first decimal place.

–22–

Attached Table 5 : Form and Presentation Example of Asset Management Report of Real Estate Investment
Corporation (Article 26 of the Rules)(1) Changes in the Investment Corporation’s Management Status, etc.
Period [1]From:
MM/DD/YYYY
To: MM/DD/YYYY
Thousands of yen

Period [2]From:
MM/DD/YYYY
To: MM/DD/YYYY
Thousands of yen

Period [3]From:
MM/DD/YYYY
To: MM/DD/YYYY
Thousands of yen

Period [4]From:
MM/DD/YYYY
To: MM/DD/YYYY
Thousands of yen

Period [5]From:
MM/DD/YYYY
To: MM/DD/YYYY
Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen( % compared to theprevious period)
Thousands of yen( % compared to theprevious period)

Thousands of yen( % compared to theprevious period)
Thousands of yen( % compared to theprevious period)

Thousands of yen( % compared to theprevious period)
Thousands of yen( % compared to theprevious period)

Thousands of yen( % compared to theprevious period)
Thousands of yen( % compared to theprevious period)

Thousands of yen( % compared to theprevious period)
Thousands of yen( % compared to theprevious period)

Yen

Yen

Yen

Yen

Yen

%
(Increase or decrease
from the previous
period)%(Increase or decrease
from the previous
period)%(Increase or decrease
from the previous
period)%(Increase or decrease
from the previous
period)%(Increase or decrease
from the previous
period)Operating Revenue

Ordinary Income
Current Period Net
IncomeTotal Assets

Net Assets
Amount of Net Assets
per Unit(Constant Value)
Equity Ratio(Notes on Entries)
1. “Operating Revenues,” “Ordinary Income,” “Net Income for Current Period,” “Total Assets” and “Net Assets” shall be
indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used when deemed appropriate for theprotection of investors.
2. The “Amount of Net Assets per Unit” shall be indicated in units of yen. However, other units may be used.
3. “Equity Ratio” and “Comparison to Previous Period,” shall be rounded off to the second decimal place and indicated to thefirst decimal place.

(3) Status of Capital Increase, etc.
Number of Investment Units Issued
MM/DD/YYYY

Description

Increase or
decrease

Balance

Total Amount of Contributions
Increase or
decrease

Remarks
Balance(Notes on Entries)
1. The “Description” shall indicate whether it is a “Capital Increase” (public offering or private placement), “Installments” or“Amalgamation,” etc., separately.
2. “Total Amount of Contributions” shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used
when deemed appropriate for the protection of investors.
3. “Remarks” shall indicate the reasons for the act and other matters deemed important for investor protection.

–23–

(4) Performance of Distributions, etc.

Total Net Income for
Current Period
Retained Earnings
Total Cash Distributions(Distributions per Unit)
Of which, Total Profit
Distributions(Profit Distributions per
Unit)
Of Which, Total
Repayment ofContributions(Repayment ofContributions per Unit)
Total Amount ofDistributions from
Allowance for
Temporary Difference
Adjustments out of Total
Repayment ofContributions(Distribution from
Allowance for
Temporary Difference
Adjustments out of
Repayment ofContributions per Unit)
Total Amount ofDistributions from
Distributions for
Reduction of Capital
Contributions under Tax
Act out of Total
Repayment ofContributions(Distributions from
Distributions for
Reduction of Capital
Contributions under Tax
Act out of Repayment ofContributions Per Unit)

Period [1]Period [2]Period [3]Period [4]Period [5]
From:
From:
From:
From:
From:
MM/DD/YYYY
MM/DD/YYYY
MM/DD/YYYY
MM/DD/YYYY
MM/DD/YYYY
To: MM/DD/YYYY To: MM/DD/YYYY To: MM/DD/YYYY To: MM/DD/YYYY To: MM/DD/YYYY
Thousands of yen
Thousands of yen
Thousands of yen
Thousands of yen
Thousands of yen
Thousands of yen
Thousands of yen(__________ yen)Thousands of yen
Thousands of yen(__________ yen)Thousands of yen
Thousands of yen(__________ yen)Thousands of yen
Thousands of yen(__________ yen)Thousands of yen
Thousands of yen(__________ yen)Thousands of yen(__________ yen)Thousands of yen(__________ yen)Thousands of yen(__________ yen)Thousands of yen(__________ yen)Thousands of yen(__________ yen)Thousands of yen(__________ yen)Thousands of yen(__________ yen)Thousands of yen(__________ yen)Thousands of yen(__________ yen)Thousands of yen(__________ yen)Thousands of yen(__________ yen)Thousands of yen(__________ yen)Thousands of yen(__________ yen)Thousands of yen(__________ yen)Thousands of yen(__________ yen)Thousands of yen(__________ yen)Thousands of yen(__________ yen)Thousands of yen(__________ yen)Thousands of yen(__________ yen)Thousands of yen(__________ yen)

(Notes on Entries)
1. The amounts of “Total Net Income for Current Period,” “Retained Earnings,” “Total Cash Distributions,” “Total Profit
Distributions,” “Total Repayment of Contributions,” “Total Amount of Distributions from Allowance for Temporary Difference
Adjustments,” and “Total Amount of Distributions from Distributions for Reduction of Capital Contributions under Tax Act” shallbe indicated in units of 1,000 yen or 1,000,000 yen, and the amounts of “Distribution Per Unit,” “Profit Distribution Per Unit,”“Principal Payment Per Unit,” “Distributions from Allowance for Temporary Difference Adjustments per Unit,” and “Distributions
for Reduction of Capital Contributions Under the Tax Act Per Unit” shall be indicated in units of yen. However, other units may be
used when deemed appropriate for the protection of investors.

(9) Matters Regarding Investment Units
Name or Title

Number of Investment
Units Owned (Units)–24–

Ratio of Investment Units
Owned to Total Number of Units
Issued (%)

(10) Facts Concerning Officers, etc.
Position

Name or Title Officer, etc.

Total Amount of
Remuneration for Each
Position during the Relevant
Business Period(Units of 1,000 yen)

Main Concurrent Offices,
etc.

(Notes on Entries)
1. If no remuneration is received from the investment corporation, such fact shall be indicated.
2. In addition, other important matters that are deemed appropriate to be indicated for the purposes of investor protection, such as
the dismissal of officers, etc., shall be indicated.

(12) Assets Composition of the Real Estate Investment Corporation.
Total Holdings

R e a lAmount of Assets Held in Foreign
Currencies

Proportion to Total Assets

Actual Real Estate Holdings

Proportion to Total Assets

Thousands of yen%

Thousands of yen%

Thousands of yen%

Thousands of yen%

Thousands of yen%

Thousands of yen%

Thousands of yen%

Thousands of yen%

Thousands of yen%

Thousands of yen%

Thousands of yen%

Thousands of yen%

Thousands of yen%

Thousands of yen%

Thousands of yen%

Thousands of yen%

Thousands of yen%

E s t a t e

Renewable Energy Power Generation Facilities

Right to Operate Public Facilities etc.
･

･

･

･

･

O t h e r

A s s e t s

T o t a l

A s s e t s

Thousands of yen%
Thousands of yen
Thousands of yen

Rights of Lease of Real Estate

Silent Partnership Equity

Proportion to Total Assets

Thousands of yen

Superficies Rights

Trust Beneficiary Interest in Real Estate

Foreign Exchange Valuation Loss%
Thousands of yen

Thousands of yen%
Thousands of yen

Thousands of yen%
Thousands of yen

Thousands of yen%
Thousands of yen

Thousands of yen%
Thousands of yen

Thousands of yen%
Thousands of yen

Thousands of yen%
Thousands of yen

Thousands of yen%
Thousands of yen

Thousands of yen(Notes on Entries)
1. When “Superficies Rights” and “Rights of Lease of Real Estate” are held together with buildings, etc., they shall be
combined and indicated together with buildings, etc., in the “Real Estate” field.
2. “Total Holdings” shall indicate the book value at the end of the period including the amount of foreign
currency-denominated assets held. “Actual Real Estate Holdings” shall indicate the amount obtained by deducting cash, etc.,
held in said assets from the book value of the asset at the end of the period.
3. For “Proportion to Total Assets,” the ratio of the “Actual Real Estate Holdings” of the relevant assets to the total amounts ofassets should be written in parenthesis.
4. “Assets Held in Foreign Currency” shall indicate the amount of overseas real estate holdings out of the total holdings
valuated and converted using the exchange rate at the time of acquisition. “Valuation Gains or Losses of Foreign Exchange”
shall display the amount obtained by subtracting the book value at the end of the period valuated and converted at theexchange rate at the time of acquisition from the book value at the end of the period valuated and converted at the exchange
rate at the end of the period. “Proportion to Total Assets” shall indicate the ratio of said assets to the total amount of assets.
5..The “Proportion to Total Assets” shall be rounded off to the second decimal place and indicated to the first decimal place.
6.The “Total Holdings,” “Actual Real Estate Holdings,” “Foreign Currency-Denominated Assets Held” and “Valuation Gains

–25–

%

or Losses of Foreign Exchange” shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used
when deemed appropriate for the protection of investors.
7.The field “Foreign Currency-Denominated Assets Held” may be omitted if there are no overseas real estate holdings.

(13) Major Assets Held
Name of Real Estate,
etc.
____Building (Trust
Beneficiary Right)

Total

Proportion
to Total
RentalRevenue%Book Value

Leasable Area

Leased Area

Occupancy
Rate

Thousands ofyen
Thousands ofyen
Thousands of
yen

m2

m2

%

2

m

2

m

%

%

m2

m2

%

%

Thousands ofyen
Thousands of
yen

m2

m2

%

%

m2

m2

%

%

Thousands of
yen

m2

m2

%

%

Principal Use(Notes on Entries)
1. “Name of Real Estate, etc.,” shall indicate the name, etc., indicated in the Securities Registration Statement, etc.
2. “Book Value” shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used when deemed
appropriate for the protection of investors.
3. For the number of properties, land, buildings, Superficies Rights, leasehold rights, etc., located at the same parcel number,etc., shall be counted as one property.
4. “Leasable Area” and “Leased Area” shall be indicated in units of m2. However, other units may be used when deemed
appropriate for the protection of investors.
5. The “Occupancy Rate” (the ratio of the rented area to the rentable area at the end of the relevant accounting period) and the“Proportion to Total Rental Revenue” shall be rounded off to the second decimal place and indicated to the first decimal
place. However, other units may be used when deemed appropriate for the protection of investors.
6. The term “Principal Use” shall indicate what is deemed appropriate as the “Principal Use” of the relevant asset or theunderlying asset of the said asset at the discretion of the investment trust entrustment business, taking into considerationsuch factors as the ratio of rental area and rental revenue by use for the said asset or the underlying asset of the said asset.

(14) Details of Incorporated Assets(i) Details of Incorporated Assets in Real Estate, etc.
Previous Period (MM/DD/YYYY Current Period (MM/DD/YYYY MM/DD/YYYY)
MM/DD/YYYY)
Total
Name ofCalculated Number
During
Proportion Total
During Proportion
Real
Form ofOccupancy
Occupancy
Location
Value at theofRentalto Total Number ofRentalto Total
Estate,Ownership
Rate
Rate
End of Period Tenants
Business
RentalTenants
Business
Rentaletc.
at End ofat End ofat EndEarning
Business at End of
Earning
Businessthe Period
the Periodof thePeriodRevenue the Period
PeriodRevenue
PeriodTokyo
Thousands
Thousands
Thousands%%%%○○ Wardof yenof yenof yenThousands
Thousands
Thousands%%%%of yenof yenof yen

Total

–

–

Thousandsof yenThousandsof yenThousandsof yen%%%Thousandsof yenThousandsof yenThousandsof yen

%

%

%

%
%

%

Thousandsof yenThousandsof yenThousandsof yen%%%(Notes on Entries)
1. The field “Calculated Value at the End of Period,” shall indicate the appraised value at the end of period, which is calculatedby the valuation method stipulated in Article 5 and Article 6 of the Rules on Real Estate Investment Trusts and Real Estate
Investment Corporations. For overseas real estate, etc., the appraised value at the end of period shall be indicated in Japanese
yen converted at the exchange rate at the end of the period.
For overseas real estate, etc., the amount in the currency of acquisition of the relevant assets shall be indicated in parentheses–26–

in accordance with the unit of the amount indicated in Japanese currency conversion. However, the Total field need not beshown in the currency of such acquisition.
2. If the asset is overseas real estate, etc., the amount of “Rental Business Revenue” shall be the amount of rental businessrevenue valuated and converted at the exchange rate at the end of the period.
With regard to overseas real estate, etc., the amount in the currency in which such rental business revenue is received shallbe indicated in parentheses in accordance with the unit of the amount indicated in Japanese currency. However, the Total
field need not be shown in such receiving currency.
3. Figures for “Calculated Value at the End of Period” and “Rental Business Revenue” shall be presented in units of 1,000 yen
or 1,000,000 yen. However, other units may be used when deemed appropriate for the protection of investors.
4. The “Occupancy Rate” (the ratio of leased area to the leasable area at the end of the relevant accounting period) and the“Proportion to Total Rental Business Revenue” shall be rounded off to the second decimal place and indicated to the firstdecimal place.
5. The land and other assets shown in “(ii) Details of Renewable Energy Power Generation Facilities, etc.” and “(iii) Details ofRight to Operate Public Facilities, etc.” shall not be indicated.

(ii) Details of Renewable Energy Power Generation Facilities, etc.
(a) Summary Table(Unit:_____)

Type ofAssetsBalance attheBeginningof Current
PeriodIncrease
DuringCurrent
PeriodDecrease
DuringCurrent
PeriodBalance atthe End of
Current
PeriodAccumulated
Depreciation or
Amortiz
Accumulated
ation for
Amortization
Current
PeriodBalanceat EndofCurrent
PeriodDescription

LiquidAssetsTotal
Tangible Fixed
Assets
Total
Intangible Fixed
Assets

Total(Notes on Entries)
1. Land and other assets used for power generation projects associated with renewable energy power generation facilities shallalso be indicated.
2. The “Liquid Assets,” “Tangible Fixed Assets,” and “Intangible Fixed Assets” fields shall be indicated according to theclassification of the items listed in the balance sheet.
3. The fields for “Balance at the Beginning of the Current Period,” “Increase During Current Period,” “Decrease During
Current Period,” and “Balance at the End of the Current Period,” shall be indicated based on the acquisition price of theapplicable assets.
4. Note the details of the increase and decrease during the current period.
5. If there is an increase or decrease in the amount exceeding 1% of the total amount of assets of the same type, the reason for
the increase or decrease shall be indicated in the “Description” field.
6. If the acquisition cost is revised due to special reasons, such revaluation differences, etc. shall be displayed as an internal
note (in parentheses) in the “Increase During Current Period” or “Decrease During Current Period” fields, and the reason forincrease or decrease shall be indicated in the “Description” field.

–27–

(b) Details of Renewable Energy Power Generation Facilities, etc.

Name

Location

Districts and Zones

Structure

Date ofCertification

Name of Certified
Business Operator,
etc.

Name of the Other
Party of theSpecified Contract,
etc.

Date of Acquisition

Status of CollateralBook Value at theEnd of Current
PeriodAcquisition Cost

-

-

-

-

-

-

-

-

-

-

-

Sub
total

-

-

-

-

-

-

-

-

-

-

-

-

Sub
total

-

-

-

-

-

-

-

-

-

-

-

-

Sub
total
Total

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Procurement
Period, etc.
Procurement Price,
etc.

No.
-

Site Area

Classification of
Equipment, etc.
Sub
total

(Notes on Entries)
1. Land and other assets used for power generation projects associated with renewable energy power generation facilities shallalso be indicated.
2. In the “Name” field, indicate the name which adequately represents the renewable energy power generation facility, such as
the name of the facility described in the application for approval by the Minister of Economy, Trade and Industry pursuant to
Article 9, Paragraph 3 of the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy
Sources by Electricity Utilities.
3. In the “Location” field, indicate the location (up to the lot number) of the renewable energy power generation facility and theland and other assets to be used for the power generation project incidental thereto (hereinafter referred to as “renewableenergy power generation facility, etc.” in (b) and (c)).
4. In the “Districts and Zones” field, the use district listed in Article 8, Paragraph 1, Item 1 of the City Planning Act (Act No.
100 of 1968) shall be indicated.
5. In the “Structure” field, indicate the structure, etc., of the renewable energy power generation facility, etc. (in the case of land,
the land classification).
6. In the “Date of Certification” field, enter the date of approval by theMinister of Economy, Trade and Industry pursuant to theprovision in Article 9, Paragraph 3 of the Act on Special Measures Concerning Procurement of Electricity from Renewable
Energy Sources by Electricity Utilities when the renewable energy power generation facilities fall under the category ofcertified power generation facilities (if any change has been approved pursuant to the provision in Article 10, Paragraph 1 ofthe same Act, the date of certification and the details of such change, and if any change has been notified pursuant to theprovision in Paragraph 2 or 3 of the said Article, the date of acceptance of such notification and the details of such change
shall be included).
7. In the “Name of Certified Business Operator, etc.” field, when the renewable energy power generation facilities fall under
the category of certified power generation facilities, the name of the certified business operator shall be indicated, and inother cases, the name of the person who is considered the provider shall be indicated.
8. In the “Name of the Other Party of the Specified Contract, etc.” field, the name of the other party of the specific contract shallbe indicated when the renewable energy power generation facilities fall under the category of certified power generation
facilities, and in other cases, the name of the other party of the electricity supply contract shall be indicated.
9. In the “Procurement Price, etc.” field, indicate the procurement price when the renewable energy power generation facilities
fall under the category of certified power generation facilities, otherwise, the price per kilowatt hour of renewable energy
electricity to be supplied under the power supply contract shall be indicated.
10. In the “Procurement Period, etc.” field, indicate the procurement period when the renewable energy power generation–28–

facility falls under the category of an approved power generation facility, or the contract period of the power supply contract
in other cases.
11. In the “Date of Acquisition” field, indicate the date of acquisition of the renewable energy power generation facility, etc.
12. Subtotals in the “Site Area,” “Acquisition Cost” and “Book Value at the End of the Current Period” fields shall be thesubtotal for each category of facilities.
13. In the “Status of Collateral” field, if the renewable energy power generation facility, etc. in question is pledged as collateral,
an indication to that effect shall be given.
14. The “No.” field shall be consistent with the organization No. of such renewable energy power generation facilities in “(c)Details of Revenue Status of Renewable Energy Power Generation Facilities, etc.”(c) Details of Revenue Status of Renewable Energy Power Generation Facilities, etc.
Organization No.

Name of Property

Location

Renewable Energy
Power Generation
Facilities
Land
Building
Renewable Energy
Power Generation
Facilities
Land
Building

Item___th Period
MM/DD/YY
MM/DD/YY-___th Period
MM/DD/YY
MM/DD/YY-___th Period
MM/DD/YY
MM/DD/YY-___th Period
MM/YYYY- MM/YYYY___th Period
MM/DD/YY
MM/DD/YY-

Rental Business
Revenue Rent
・・・・・
Rental Business
Revenue
Subtotal A
Rental Business
Expenses
Taxes and Levies(of which, Property tax)
Miscellaneous Expenses(of which, ・・・・)(of which, ・・・・)
Depreciation(of which, ・・・・)(of which, ・・・・)
・・・・・
Rental Business
Expenses
Subtotal B
Renewable Energy
Power Generation
Facilities Rental
Business Profit and Loss
A - B
(Notes on Entries)
1. This table shall be prepared for each renewable energy power generation facility. When land or other assets used for power
generation business are leased as one unit, revenues and expenses related to such assets shall also be indicated. If therenewable energy generation facility and land or other assets are managed in an integrated manner, such properties are notprecluded from being prepared as a single property.
2. Shall prepare for the past five periods.

–29–

3. For miscellaneous expenses and costs, enter utility costs, subcontract management costs, and repair costs, etc.
4. In addition to machinery and equipment, depreciation expenses shall also indicate buildings, appliances, fixtures, etc.,
relevant to the renewable energy power generation facility.

(iii) Details of Rights to Operate Public Facilities, etc.
(a) Summary Table(Unit:_____)
Balance at the
Beginning ofType of Assets
Current
PeriodIncrease
DuringCurrent
PeriodDecrease
DuringCurrent
PeriodAccumulated
Depreciation or
Balance at theEnd of theAmortizat
Current
Accumulated
ion for
PeriodDepreciation Current
PeriodBalance at
End ofCurrent
PeriodDescription

Liquid Assets
Total

Tangible Fixed Assets
Total
Intangible Fixed Assets
Total(Notes on Entries)
1. The Right to Operate Public Facilities etc., public facilities etc., pertaining to the right to manage public facilities etc., andland and other assets acquired incidental to the business of managing public facilities etc., pertaining to the Right to Operate
Public Facilities etc. (hereinafter referred to as “Right to Operate Public Facilities etc.” in (b) and (c)) shall be indicated.
2. The “Liquid Assets,” “Tangible Fixed Assets,” and “Intangible Fixed Assets” fields shall be indicated according to theclassification of the items listed in the balance sheet.
3. The fields for “Balance at the Beginning of the Current Period,” “Increase During Current Period,” “Decrease During
Current Period,” and “Balance at the End of the Current Period,” shall be indicated based on the acquisition price of theapplicable assets.
4. Note the details of the increase and decrease during current period.
5. If there is an increase or decrease in the amount exceeding 1% of the total amount of assets of the same type, the reason for
the increase or decrease shall be indicated in the “Description” field.
6. If the acquisition cost is revised due to special reasons, such revaluation differences, etc. shall be displayed as an internal
note (in parentheses) in the “Increase During Current Period” or “Decrease During Current Period” fields, and the reason forincrease or decrease shall be indicated in the “Description” field.

–30–

(b) Details of the Right to Operate Public Facilities, etc.

No.

Name

Matters Regarding Public Facilities, etc.

Matters Regarding the Right to Operate Public
Facilities, etc.

Status of CollateralBook Value at the End of
Current Period

Acquisition Cost

Date of Acquisition

Duration

Total Area

Structure

Name of the other party to theentrustment contract pertaining
to the management of public
facilities, etc.

Name of Manager, etc.

Districts and Zones

Location(Notes on Entries)
1. If land or other assets are acquired incidental to the management of public facilities pertaining to the Right to Operate Public
Facilities, etc., the relevant assets shall also be indicated in the fields for “No.,” “Name,” “Location,” “Districts and Zones,”“Structure,” “Total Area,” “Date of Acquisition,” “Acquisition Cost,” “Book Value at the End of Current Period,” and“Status of Collateral.”
2. In the “Location” field, indicate the location (up to the lot number) of such public facilities, etc.
3. In the “Districts and Zones” field, the use district listed in Article 8, Paragraph 1, Item 1 of the City Planning Act shall be
indicated.
4. In the column of “Name of Manager, etc.,” indicate the name of the manager, etc., of such public facilities, etc.
5. In the “Structure” field, indicate the structure (land category in the case of land) of such public facilities, etc.
6. In the “Duration” field, the duration (beginning and ending) of the said Right to Operate Public Facilities, etc. shall be
indicated.
7. In the “Date of Acquisition” field, indicate the date of acquisition of the Right to Operate Public Facilities, etc.
8. In the “Status of Collateral” field, if the Right to Operate Public Facilities, etc. is pledged as collateral, an indication to that
effect shall be given.
9. The “No.” field shall be consistent with the organization No. in “(c) Details of Revenue Status of Right to Operate Public
Facilities, etc.”–31–(c) Details of Revenue Status of Right to Operate Public Facilities, etc.
Organization No.

Name of
Property___th Period
MM/DD/YY MM/DD/YY___th Period
MM/DD/YY MM/DD/YY

Location

Right to Operate Public
Facilities, etc.
Land
Building
Right to Operate Public
Facilities, etc.
Land
Building
Item___th Period
MM/DD/YY MM/DD/YY___th Period
MM/DD/YY MM/DD/YY___th Period
MM/DD/YY MM/DD/YY

Revenue from public
facilities operating
business
・・・・・
Revenue from public
facilities operating
business
Subtotal A
Operating Business
Expenses
Taxes and Levies(of which, Property
Tax)
Miscellaneous Expenses(of which, ・・・・)(of which, ・・・・)
Depreciation or
Amortization(of which, ・・・・)(of which, ・・・・)
・・・・・
Expenses for public
facilities operating
business
Subtotal B
Profit and loss frompublic facilities
operating business
A - B(Notes on Entries)
1. This table shall be prepared for each Right to Operate Public Facilities, etc. If land or other assets are acquired incidental tothe operation of public facilities, etc., pertaining to the Right to Operate Public Facilities, etc., such assets shall also be
indicated.
2. Shall prepare for the past five periods.
3. For miscellaneous expenses and costs, enter utility costs, subcontract management costs, and repair costs, etc.
4. Depreciation or amortization shall include not only the Right to Operate Public Facilities, etc., but also assets acquired
incidental to the operating project.
5. If the operating business expenses include the expenses prescribed in Article 20 of the Act on Promotion of Private FinanceInitiative, the amount and the breakdown of the amount shall be stated in the margin.

–32–

(iv) Details of Assets Incorporated in Securities
Book Value

Type ofAssetsName of Stocks

Unit Price

–

Total

Appraised Value

Quantity
AmountUnit Price

Thousands ofyen
Thousands ofyen
Thousands of
–
yen

–

AmountValuation
profit or loss

Remarks

Thousands of Thousands ofyenyenThousands of Thousands ofyenyenThousands of Thousands of
–
yen
yen

–

(Notes on Entries)
1. The “Book Value,” “Appraised Value,” and “Valuation Profit or Loss” fields shall be indicated in units of 1,000 yen or
1,000,000 yen. However, other units may be used when deemed appropriate for the protection of investors.

(15) Status of Other Assets(i) Stocks and investment securities
Numberof Shares

Issue

Acquisition Cost
Unit PriceAppraised Value

AmountUnit Price

AmountValuation
profit or
loss

Remarks

Total(ii) Securities other than stocks
Type

Issue

Total Face
Value

(Unit:
AccruedInterest
IncomeBook
Value

Advance
Payments
Accruedinterest

Appraised
Value

Valuation
profit or
loss)

RemarksTotal(iii) Detailed Statement of Margin Transaction Balance(Unit:)

Margin Transaction
Issue

Number of Shares
SoldBook Value

Appraised Value

Valuation profit orloss

Remarks(iv) Table of Contract Amount and Market Value of Specified Transactions and Exchange Contract
Transactions, etc.

(Unit:–33–)

CategoryContract Amount, etc.
Of which, morethan one year

Type

Current Value

Futures Transactions
Market Transactions

Sell contracts
Buy contracts
Option Trading
Sell contracts
Call
Put
Buy contracts
Call
Put
Forward Transactions
Sell contracts

Transactions other than Market Transactions

Buy contracts
Exchange Contract Transaction
Sell contracts
Buy contracts
Option Trading
Sell contracts
Call
Put
Buy contracts
Call
Put
Swap Transactions
Variable Receipts and Fixed
Payments
Fixed Receipts and Variable
Payments
OthersTotal(v) Details of Other Specified Assets
Type ofSpecified
Assets(Unit:

Book Value

Appraised Value

Quantity
Unit Price

AmountUnit Price

Total

–34–

AmountValuation
profit or
loss)

Remarks

(16) Status of Asset Holdings by Country and Region
CountryJapan
U.S.A.
･･･
Total

Calculated Valueat the End of
PeriodProportion to
Total Assets

Thousands of yen
Thousands of yen
Thousands of yen

Thousands of yen
Thousands of yen
Thousands of yen%%%

Properties
Properties
Properties

Thousands of yen

Thousands of yen

100%

Properties

Total Holdings

Number of
Properties(Notes on Entries)
1. The “Total Holdings” shall indicate the book value at the end of the period, and the “Calculated Value at the End of Period”
shall indicate the appraised value at the end of period in accordance with the valuation methods set forth in Article 5 andArticle 6 of the Rules on Real Estate Investment Trusts and Real Estate Investment Corporations. Amounts shall be indicatedin units of 1,000 yen or 1,000,000 yen. However, other units may also be indicated together when deemed appropriate for theprotection of investors.
2. The “Total Holdings” of overseas real estate, etc., shall be converted into Japanese yen using the exchange rate at the time ofacquisition, and the “Calculated Value at the End of Period” shall be converted into Japanese yen using the exchange rate at
the end of the period.
3. The “Proportion to Total Assets” shall indicate the ratio of the calculated value at the end of the period of each relevant
country or region to the total calculated value at the end of the period, and shall be rounded off to the second decimal placeand indicated to the first decimal place.

(17) Schedule of Capital Expenditures
Name of Real
Estate, etc.
○○ Building○○ Building

Name of
Infrastructure
Assets, etc.
○○○○
○○○○

Estimated Amount for Work
Location

PurposeEstimated Duration

Chuo Ward,Tokyo
Chuo Ward,Tokyo○○ Renovation
Work○○ RenovationWork

From : MM/DD/YYYY
To: MM/DD/YYYY
From : MM/DD/YYYY
To: MM/DD/YYYY

Location

PurposeEstimated Duration

Chuo Ward,Tokyo
Chuo Ward,Tokyo○○ Renovation
Work○○ RenovationWork

From : MM/DD/YYYY
To: MM/DD/YYYY
From : MM/DD/YYYY
To: MM/DD/YYYY

Construction Cost
Total Amount Paid
or Payment AmountThousands of yen Thousands of yen Thousands of yen
Total

Thousands of yen

Thousands of yen

Thousands of yen

Estimated Amount for Work
Construction Cost
Total Amount Paid
or Payment AmountThousands of yen Thousands of yen Thousands of yen
Total

Thousands of yen

Thousands of yen

Thousands of yen(Notes on Entries)
1. The “Construction Cost or Payment Amount” shall be indicated on a work basis or on a payment basis in units of 1,000 yen
or 1,000,000 yen. However, other units may be used when deemed appropriate for the protection of investors.
2. For “Construction Cost or Payment Amount,” specify in the margin that the amount is indicated on a “work basis” or“payment basis.”(18) Capital Expenditures during the Period
Name of Real
Estate, etc.

Location○○ Building○○ Ward, Tokyo○○ Building○○ Ward, Tokyo

Name of
Infrastructure
Assets, etc.

Location○○○○○○ Ward, Tokyo○○○○○○ Ward, Tokyo

Purpose

Period○○ Renovation
Work○○ RenovationWork

From: MM/DD/YYYY
To: MM/DD/YYYY
From: MM/DD/YYYY
To: MM/DD/YYYY

Purpose

Period○○ Renovation
Work○○ RenovationWork

From: MM/DD/YYYY
To: MM/DD/YYYY
From: MM/DD/YYYY
To: MM/DD/YYYY–35–

Construction Cost or
Payment AmountThousands of yen
Thousands of yen

Construction Cost or
Payment AmountThousands of yen
Thousands of yen

(Notes on Entries)
1. The “Construction Cost or Payment Amount” shall be indicated on a work basis or payment basis in unitsof 1,000 yen or 1,000,000 yen. However, other units may be used when deemed appropriate for theprotection of investors.
2. For “Construction Cost or Payment Amount,” it should be clearly indicated in the margin that it isindicated on a “Work Basis” or “Payment Basis.”(19) Money Accumulated for Long-Term Repair Plans
Business Period___th Period___th Period___th Period___th Period___th Period
From: MM/DD/YYYY From: MM/DD/YYYY From: MM/DD/YYYY From: MM/DD/YYYY From: MM/DD/YYYY
To: MM/DD/YYYY To: MM/DD/YYYY To: MM/DD/YYYY To: MM/DD/YYYY To: MM/DD/YYYY

Balance of Funds
Reserved at the
Beginning of the Period
Amount Reserved for
Current period
Amount of Reversal of
Reserve for Current
PeriodAmount Carried Forward

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen(Notes on Entries)
1. The “Reserve Fund” referred to in this table refers to the money that must be actually set aside systematically and regularly
each period from surplus cash flow such as depreciation expenses, etc. (including that associated with profits internallyretained) in accordance with the long-term repair plan indicated in the asset management plan stipulated in Article 9,
Paragraph2 of the Rules on Real Estate Investment Trusts and Real Estate Investment Corporations.
2. Amounts shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used when deemed
appropriate for the protection of investors.

(20) Details of Expenses for Management, etc.
Item

Current Period(a) Asset Management Fees

Thousands of yen(b) Asset Custody Fees

Thousands of yen(c) General Administration Fees

Thousands of yen(d) Officer’s Remuneration

Thousands of yen(e) Other Expenses

Thousands of yen

Total

Thousands of yen(Notes on Entries)
1. Amounts shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used when deemed
appropriate for the protection of investors.
2. In “(e) Other Expenses,” shall indicate expenses other than (a) through (d) that are related to the management of theinvestment corporation, if any.

–36–

(21) Status of Borrowing
Category
LenderShort-Term Loans

Total

Long-Term Loans

Total

Date of
Borrowing

Balance attheBeginningof Current
PeriodBalance at
Averagethe End of
Repayment Method ofInterest
Current
Due Date Repayment
Rate
PeriodThousands ofyen
Thousands ofyen
Thousands ofyen
Thousands ofyen
Thousands ofyen
Thousands ofyen
Thousands ofyen
Thousands ofyen

Thousandsof yenThousandsof yenThousandsof yenThousandsof yenThousandsof yenThousandsof yenThousandsof yenThousandsof yenUse

Description(Notes on Entries)
1. In principle, loans shall be classified into short-term and long-term and indicated by lender.
2. “Average Interest Rate” shall indicate the weighted average interest rate.
3. “Method of Repayment” shall indicate the method of repayment such as equal repayment of principal, equal repayment ofinterest, or lump-sum repayment on due date, etc.
4. “Description” shall indicate whether collateral is pledged or not, the name of the collateral, and any other special notes.
5. “Balance at the Beginning of the Current Period” and “Balance at the End of the Current Period” shall be indicated in unitsof 1,000 yen or 1,000,000 yen. However, other units may be used when deemed appropriate for the protection of investors.

(22) Investment Corporation Bonds
Issue

Date of Issue

Balance at the Balance at the
Beginning ofEnd ofCurrent
Current
PeriodPeriodRate

Redemption
PeriodMethod ofRedemption

Use

Description(Notes on Entries)
1. “Balance at the Beginning of the Current Period” and “Balance at the End of the Current Period” shall be indicated in unitsof 1,000 yen or 1,000,000 yen. However, other units may be used when deemed appropriate for the protection of investors.

(23) Short-Term Investment Corporation Bonds
Issue

Date of Issue

Balance at the End of
Current Period

Issue Value

Redemption Price

Description(Notes on Entries)
1. The “Balance at the End of the Current Period” shall be indicated in units of 1,000 yen or 1,000,000 yen. However, otherunits may be used when deemed appropriate for the protection of investors.

–37–

(23) - 2 Investment Equity Subscription Rights

Name of
StocksDate of Issue

Number ofUnits ofInvestment
EquitySubscription
Rights Not
Exercised at theEnd of theCurrent Period

Number ofInvestment Units to
Be Issued Upon
Exercise of the Said
Investment Equity
Subscription Rights
or the Method of
Calculating the
Number of Units

The Amount of
Money to beContributed Upon
Exercise or the
Method for
Calculating Such
AmountExercise
Period forInvestment
EquitySubscription
RightsDescription(Notes on Entries)
1. “The Amount of Money to be Contributed Upon Exercise” shall be indicated in units of 1,000 yen or 1,000,000 yen.
However, other units may be used when deemed appropriate for the protection of investors.

(24) Trading Status of Real Estate, etc., Asset-Backed Securities, etc., and Infrastructure Assets, etc., andInfrastructure-Related Assets, etc.
Name of Real
Estate, etc.

Acquisition
Date of
Acquisition○○ Building (Real
Estate)Total
The Name of
Infrastructure
Assets, etc.

Acquisition Cost

Transfer
Date ofTransfer

Book Value

Profit or Loss on
Sale

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Acquisition
Date of
Acquisition

Amount of Transfer

Acquisition Cost

Transfer
Date ofTransfer

Amount of Transfer

Book Value

Profit or Loss on
Sale

○○○○
(Infrastructure
Assets)Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen

Total

Thousands of yen

Thousands of yen

Thousands of yen

Thousands of yen(Notes on Entries)
1. The “Acquisition Cost” shall indicate the amount (sales price indicated in the sales contract, etc.) that does not include
various expenses required for the acquisition of the relevant real estate, etc., and infrastructure assets, etc. (real estate sales
intermediary fees, sales commissions, etc. incurred when acquiring infrastructure assets, etc.), and a note to that effect shallbe indicated in the margin.
2. “Acquisition Cost,” “Transfer Value,” “Book Value” and “Profit or Loss on Sale” shall be indicated in units of 1,000 yen or
1,000,000 yen. However, other units may be used when deemed appropriate for the protection of investors.

–38–

(25) Sales and Purchase of Other Assets, etc.
PurchasedType of Assets

SharesNumber of
Certificates,
etc.

Sold
Number of
Certificates,
etc.

AmountThousands ofyen

AmountThousands ofyen

Balance at the End of Current
PeriodNumber ofAmountCertificates,
etc.
Thousands ofyen

Investment
Securities

Thousands ofyen

Thousands ofyen

Thousands of
yen

Bonds

Thousands ofyen

Thousands ofyen

Thousands of
yen

････

Thousands ofyen

Thousands ofyen

Thousands of
yen

Total

Thousands ofyen

Thousands ofyen

Thousands ofyen(Notes on Entries)
1. The “Amount” shall indicate the delivery price (amount not including accrued interest and various expenses (trading
commissions for sale and purchase, etc.)) and shall make a note to that effect in the margin.
2. “Amount” shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used when deemed
appropriate for the protection of investors.

(27) Status of Transactions with Interested Parties, etc.
(i) Status of Transactions
Transaction Amount, etc.
Category
Amount of Purchase, etc.
Total

Amount of Sale, etc.

Thousands of yen

Thousands of yen

Breakdown of Status of Transaction with Interested Parties, etc.
____ AAA Co., Ltd.

thousand yen ( %)thousand yen ( %)BBB Co., Ltd.

thousand yen ( %)thousand yen ( %)Totalthousand yen ( %)thousand yen ( %)(ii) Amount of Payment Fees, etc.

Category

Total Amount ofPayment Fees, etc.
(A)

(Building) Management
Service Fees

Thousands of yen

Real Estate Transaction
Fees
Commission for Sale ofTrust Beneficiary Right

Thousands of yen

Commissions Incurred in
Acquiring Infrastructure
Assets, etc.
……

Breakdown of Transactions with Interested
Parties, etc.
Payee
AAA Co., Ltd.
BBB Co., Ltd.

Thousands of yen

Thousands of yen

Thousands of yen

CCC Co., Ltd.
DDD Co., Ltd.

EEE Co., Ltd.
……

–39–

Payment Amount (B)Percentage to Total
Amount(B/A) %

Thousands of yen%

Thousands of yen%

Thousands of yen%

Thousands of yen%

Thousands of yen%

Thousands of yen%

(Notes on Entries)
1. Figures in parenthesis ( ) shall indicate the ratio to the total amount of each item rounded off to the second decimal place.
2. “Amount of Purchase, etc.,” “Amount of Sale, etc.” and “Amount of Payment Fees, etc.” shall be indicated in units of 1,000
yen or 1,000,000 yen. However, other units may be used when deemed appropriate for the protection of investors.
3. When a transaction with an interested party, etc. is conducted in a foreign currency, the amount shall be converted into
Japanese yen at the exchange rate at the time of transaction and indicated in units of 1,000 yen or 1,000,000 yen. However,other units may be used when deemed appropriate for the protection of investors. The amount in the currency in which suchtransaction is made shall be indicated in parentheses in the unit corresponding to the unit of the amount converted into
Japanese yen. However, the total field need not be shown in the currency in which such transaction is made.
4. If monetary payments are made to interested parties other than payment fees, etc., as described above, important mattersamong them shall be noted in the margin.

(28) Status of Transactions, etc., with Asset Management Company Pertaining to the Subsidiary BusinessConducted by the Said Asset Management Company, etc.
Name of fees__th Period
From: MM/DD/YYYY
To: MM/DD/YYYY

Securities Transaction Fees

Thousands of yen････

Thousands of yen

Total

Thousands of yen(Notes on Entries)
1. A note in the margin shall be made concerning subsidiary business to the effect that “Subsidiary Business for this period is,○○, ×× and ････ ”
2. Amounts shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used when deemed
appropriate for the protection of investors.

–40–

(29) Status of Assets, Liabilities, Principal, and Profit and Loss
(1) Balance Sheet
Previous Period(MM/DD/YYYY)
Assets:Liquid Assets
Cash and Deposits
Cash and Deposits in Trust
Notes Receivable
Business Accounts Receivable
Securities
Advance Payments
Parent Corporation Investment Units
Prepaid Expenses
Accrued Revenue
Deferred Tax Assets
OthersBad Debt Allowance
Total Liquid Assets
Fixed Assets
Tangible Fixed Assets
Building
Accumulated Depreciation
Buildings (Net)
Structures
Accumulated Depreciation
Structures (Net)
Machinery and Equipment
Accumulated Depreciation
Machinery and equipment (net)Land
Construction in Progress
Buildings in Trust
Accumulated Depreciation
Buildings in Trust (Net)Land in Trust
Construction in Progress in Trust
Total Tangible Fixed Assets
Intangible Fixed Assets
Leasehold
OthersTotal Intangible Fixed Assets
Investments and Other Assets
Investment Securities
Capital Contributions
Deferred Tax Assets
Leasehold and Guarantee Deposits
in Trust
OthersTotal Investments and Other Assets
Total Fixed Assets
Deferred Assets
Investment Unit Issuance Expenses
Total Deferred Assets
Total Assets–41–(Unit: Yen)
Current Period(MM/DD/YYYY)

Liabilities:
Liquid Liabilities
Operating Accounts Payable
Advances Received
Deposits
Accrued Expenses
Deferred Revenue
Deferred Tax Liabilities
OthersTotal Liquid Liabilities
Fixed Liabilities
Investment Corporation Bonds
Long-Term Loans
Deferred Tax Liabilities
OthersTotal Fixed Liabilities
Total Liabilities
Net Assets Section
Investor Capital
Total Amount of Contributions
New Investment Unit Application
MarginSurplusCapital Surplus
Voluntary Retained Earnings
Unappropriated Profit for theCurrent Period or Unappropriated
Loss at the End of the Current
Period (-)
Total Surplus
Own Investment Equity
Total Investor Capital
Valuation and Translation Differences,etc.
Valuation Difference on Other Securities
Deferred hedge profit and loss
Total Valuation and Translation
Differences, etc.
Investment Equity Subscription Rights
Total Net Assets
Total Liabilities and Net Assets(Notes on Entries)
1. When the “Total Amount of Contributions” and “Deduction of Total Capital Contributions” are presented separately, if the“Deduction of Total Capital Contributions” includes allowance for temporary difference adjustments it should be noted thatthe said allowance for temporary difference adjustments shall be shown separately from other deductions of capital
contributions.
2. If the “Voluntary Retained Earnings” in the “Surplus” of the “Investor Capital” in the “Net Assets Section” includes the
special reserve for reduction in replacement or the reserve for temporary difference adjustments, it should be noted that suchspecial reserve for reduction in replacement or the reserve for temporary difference adjustments shall be indicated separatelyfrom other voluntary retained earnings.
3. When “Capital Surplus” and “Deduction of Capital Surplus” are presented separately, if allowance for temporary difference
adjustments is included in the “Deduction of Capital Surplus”, it should be noted that the said allowance for temporary
difference adjustments shall be shown separately from other deductions of capital surplus.
4. Items related to investment equity subscription right may be classified as deduction items for items related to own
investment equity subscription rights.
5. The amount of own investment equity subscription rights must be directly deducted from the amount of investment equity
subscription rights and the amount remaining after deduction must be indicated as the amount of investment equity
subscription rights. However, this does not preclude the presentation of own investment equity subscription rights from as adeduction.

–42–

(2) Profit and Loss Statement(Unit: Yen)
Previous Period
Current Period(From MM/DD/YYYY (From MM/DD/YYYY
To MM/DD/YYYY)To MM/DD/YYYY)

Operating Revenue
Rental Revenue from Real Estate
Rental Business Revenue
Other Rental Business Revenue
Profit on Sale of Real Estate, etc.
Rental Income from Renewable Energy
Power Generation Facilities
Profit on Sale of Renewable Energy
Power Generation Facilities
Profit on Sale of Right to Operate
Public Facilities, etc.
Profit on Sale of Public Facilities, etc.
Management Business Revenue from
Public Facilities, etc.
Interest Income
Dividend income
Total Operating Revenue
Operating Expenses
Rental Business Expenses
Loss on Sale of Renewable Energy
Power Generation Facilities
Loss on sale of Right to Operate Public
Facilities, etc.
Loss on Sale of Public Facilities, etc.
Management Business Expenses for
Public Facilities, etc.
Asset Management Fees
Asset Custody Fees
General Clerical Fees
Officer’s Remuneration
Impairment Loss
Other Operating Expenses
Total Operating Expenses
Operating Income
Non-operating Income
Total Non-operating Income
Non-operating Expenses
Interest Expense
Investment Corporation Bond Interest
Amortization of Investment
Corporation Bond Issuance Expenses
Total Non-operating Expenses
Ordinary Income
Extraordinary Income
Gain on Negative Goodwill
Total Extraordinary Income
Extraordinary Losses
Impairment Loss
Loss Due to Disaster
Total Extraordinary Losses
Total Net Income for Current Period
before Taxes
Corporate Tax, Inhabitant Tax andBusiness Tax
Corporate Tax Adjustments
Total Corporate Tax, etc.
Net Income for Current Period
Profit Carried Forward from thePrevious Period
Profit Carried Forward from thePrevious Term before Retroactive
Application or Loss Carried Forward–43–

from the Previous Term before
Retroactive Application
Impact of the Retrospective
Applicability
Total Profit or Loss Carried Forwardfrom the Previous Period
Unappropriated Profit or
Unappropriated Loss for the Current
Period (-)(Notes on Entries)
1. It should be noted that if the amount of any reversal of retained profits for a certain purpose included in “UnappropriatedProfit or Unappropriated Loss at the End of the Current Period (-)” includes any reversal of special reserve for reduction in
replacement or the reserve for temporary difference adjustments, it should be noted that the amount of such reversal of
special reserve for reduction in replacement or the reserve for temporary difference adjustments shall be indicated separatelyfrom any other reversal.

(3) Statement for Cash Distributions
Statement for Cash Distributions
Previous Period Following Period(From MM/DD/YYYY

MM/DD/YYY

To From MM/DD/YYYY MM/DD/YYY

I. Unappropriated Profit for Current Period
II. Additional Distributions of Excess of Profit
Deduction of Total Capital Contributions
Deduction of Capital Surplus
III. Distribution Amount(Amount of Distribution per Investment Unit)(of which, distributions in excess of earnings)
IV. Voluntary Retained Earnings
×× Provision of Reserve
×× Provision of Reserve
V. Profit Carried Forward to Next Period
Method of Calculating the Amount of Distribution
Amount of Distribution per Investment Unit
(Notes on Entries)
1. In the event that the “Voluntary Retained Earnings” is to be reversed and appropriated to cash distributions for the current
fiscal period, and the reversal amount includes the reversal amount set forth in Article 18-2, Paragraph 1, Item 3 of theRegulations Concerning Calculation of Investment Corporation or the reversal amount of the reserve for temporary
difference adjustments, it should be noted that such reversal amount must be indicated separately from the reversal amountof other reserves.
2. When the item of “IV. Voluntary Retained Earnings” includes the special reserve for reduction in replacement or the reserve
for temporary difference adjustment, it should be noted that such special reserve for reduction in replacement or the reserve
for temporary difference adjustment must be shown separately from other voluntary retained earnings.
3. As to indication of “Deduction of Total Capital Contributions” and “Deduction of Capital Surplus” when allowance fortemporary difference adjustments is included in the amount of distribution in excess of profits, it should be noted that theamount of deduction for such allowance for temporary difference adjustments must be indicated separately from any otherdeductions.
4. In the case where profits are incorporated into total capital contribution and the deduction for total capital contribution is–44–subtracted, if the amount of the said subtraction includes the reversal of the allowance for temporary difference adjustments,
the portion of the amount of the said subtraction consisting of the reversal of the allowance for temporary difference
adjustments shall be indicated separately from other subtractions, and if the allowance for temporary difference adjustments
pertaining to capital surplus is transferred to the deduction of capital surplus, that fact and the amount thereof shall be
indicated.

(4) Statement of changes in investor capitalPrevious period (from MM/DD/YYYY to MM/DD/YYYY)

Fluctuation initems other thaninvestor capitalduring current
period(Net)
Total
Fluctuations
during Current
PeriodBalance at theEnd of Current
Period–45–

Total Net Assets

・・・

Total Valuation and Translation
Differences, etc.

Fluctuation for
Current Period

Deferred hedge profit and loss

Balance at the
Beginning of theCurrent Period
after
Retrospective
Adjustment

Valuation Difference on Other
Securities

Cumulative
Effect ofRetrospective
Application

Total Investor Capital

Balance at the
Beginning ofCurrent Period

Own Investment Equity

Total Surplus

Unappropriated Profit or
Unappropriated Loss at theEnd of the Current Period (-)

Voluntary Retained Earnings

Capital Surplus

New Investment Unit Application
MarginTotal Amount of Contributions

SurplusInvestment Equity Subscription Rights

Valuation and Translation
Differences, etc.

Investor Capital

Current period (from MM/DD/YYYY to MM/DD/YYYY)
Valuation and Translation
Differences, etc.

Investor Capital

Total Net Assets

Investment Equity
Subscription Rights

Total Valuation andTranslation
Differences, etc.

Deferred hedge profit
and loss

Valuation Difference
on Other Securities

Total Investor Capital

Own Investment
EquitySurplus
Total
Unappropriat
ed Profit or
Unappropriat
ed Loss at theEnd of theCurrent
Voluntary(-)
PeriodRetained
Earnings

CapitalSurplus

New Investment Unit
Application Margin

Total Amount ofContributions

Surplus

Balance at the
Beginning ofCurrent Period
Cumulative
Effect ofRetrospective
Application
Balance at the
Beginning of theCurrent Period
after
Retrospective
Adjustment
Fluctuation for
Current Period
・・・

Fluctuation initems other thaninvestor capitalduring current
period(Net)
Total
Fluctuations
during Current
PeriodBalance at theEnd of Current
Period(Notes on Entries)
1. If the “Voluntary Retained Earnings” in the “Surplus” of the “Investor Capital” includes the special reserve for reduction in
replacement or the reserve for temporary difference adjustments, it should be noted that such special reserve for reduction in
replacement or the reserve for temporary difference adjustments shall be shown separately from other voluntary retained
earnings.
2. It shall be possible to prepare a form in which each item of net assets is arranged vertically.
3. Items related to investment equity subscription rights may be classified as deduction items for own investment equity
subscription rights.
4. The amount for own investment equity subscription rights shall be directly deducted from the amount of investment equity
subscription rights and the amount remaining after deduction shall be indicated as the amount of investment equity
subscription rights. However, this does not preclude the presentation of own investment equity subscription rights from as adeduction.

–46–

(30) Change in Method of Calculating Depreciation
AmountCalculation
Amount Calculated
Date of Change in
Calculated Using Newly Adopted
Method Adopted
by the Method of
Calculation
the Pre-change Calculation Method
Before theCalculation After
MethodCalculation
After Change
ChangeChangeMethodReason for
ChangeOthers○○ Building
Equipment
×× Building
Equipment
○○○○○
○○○○○

(Notes on Entries)
1. “Amount Calculated” shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used when
deemed appropriate for the protection of investors.

(31) Change in Valuation Method of Real Estate, etc. and Infrastructure Assets, etc.
Date of Change
Valuationof Valuation Method Adopted
MethodBefore Change

Appraised Value
Using thePre-change
Valuation
MethodNewly Adopted
Valuation Method
After Change

Appraised Value
After Change

Reason for
ChangeOthers○○ Building
×× Building
○○○○○

○○○○○
(Notes on Entries)
1. “Appraised Value” shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used when deemed
appropriate for the protection of investors.

(32) Status, etc., of In-House Establishment of Investment Trust Beneficiary Certificates, etc.
(i) Status of Acquisition, etc.
Date:
MM/DD/YYYY

Number of Units
Acquired

Number of Units
Disposed

Number of Units Held

Cumulative(Notes on Entries)
1. In the “Number of Units Held” field, enter the number of units the investment trust management company continues to holdafter the relevant acquisition, etc.
2. In the “Cumulative Total” field, enter the number of units acquired and disposed of over the past five years, including the endof the current period, the cumulative total of each, and the number of units held at the end of the current period.

–47–

(ii) Status of Holdings, etc.
Number ofUnits Held at
End of Period

Total Holdings at
End of Period

Ratio to Total
Number of Units
Issued__th Period
From: MM/DD/YYYY
To: MM/DD/YYYY__th Period
From: MM/DD/YYYY
To: MM/DD/YYYY__th Period
From: MM/DD/YYYY
To: MM/DD/YYYY__th Period
From: MM/DD/YYYY
To: MM/DD/YYYY__th Period
From: MM/DD/YYYY
To: MM/DD/YYYY(Notes on Entries)
1. “Total Holdings at End of Period” shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be
used when deemed appropriate for the protection of investors.
2. In the column of “Ratio to Total Number of Units Issued,” the ratio of the number of units held at the end of the period to thetotal number of units issued shall be rounded off to the second decimal place and indicated to the first decimal place.

(34) Disclosure of Overseas Real Estate Holding Corporations

Name

Amount Invested

Ratio of the Number orOrganizational Structure,
Amount of Shares or
Details of Regulations
Purpose, Business
Capital Contributions to
Pertaining to Dividends in
Activities, and Profit
the Total Number or
the Country of ResidenceDistribution Policy
Amount of Issued Shares orCapital Contributions

Thousands of yen%

Thousands of yen%(Notes on Entries)
1. The “Amount Invested” shall be the amount converted into Japanese yen at the exchange rate at the time of investment andindicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used when deemed appropriate for theprotection of investors. Also, the amount in the currency in which such contribution is made shall be indicated in parentheses
in the unit corresponding to the unit of the amount converted into Japanese yen.
2. “Ratio of the Number or Amount of Shares or Capital Contributions to the Total Number or Amount of Issued Shares orCapital Contributions” shall be rounded off to the second decimal place and indicated to the first decimal place.

–48–

(35) Disclosure of Real Estate Owned by Overseas Real Estate Holding Corporation
Current Period (MM/DD/YYYY - MM/DD/YYYY)%

Thousandsof yen%Thousandsof yen%Thousandsof yen%Thousandsof yenThousands of yen%Thousandsof yen%Thousandsof yen%Thousandsof yen%Thousandsof yenThousands of yen%Thousandsof yen%Thousandsof yen%Thousandsof yen%Thousandsof yenThousands of yen%Thousandsof yen%Thousandsof yen%Thousandsof yen%Thousandsof yenThousands of yen%Thousandsof yen%Thousandsof yen%Thousandsof yen%Thousandsof yenSales Amount
During the
PeriodSales Amount
During the
PeriodProportion to
Total Rental
Business
Revenue
RentalBusiness
During theEarning Period
Occupancy
Rate
at End of the
PeriodTotal Numberofat End of the
PeriodProportion to
Total Rental
Business
Revenue
RentalBusiness
During theEarning Period
Occupancy
Rate
at End of the
PeriodThousands of yen

Total Numberof Tenants at
End of Period–

Calculated Value atthe End of Period–

Form of Ownership

Location

Name
Total

Previous Period (MM/DD/YYYY MM/DD/YYYY)(Notes on Entries)
1. The field “Calculated Value at the End of Period,” shall indicate the appraised value at the end of period, which is calculatedby the valuation method stipulated in Article 5 and Article 6 of the Rules on Real Estate Investment Trusts and Real Estate
Investment Corporations. For overseas real estate, etc., the appraised value at the end of period shall be indicated in Japanese
yen converted at the exchange rate at the end of the period.
For overseas real estate, etc., the amount in the currency of acquisition of the relevant assets shall be indicated in parenthesesin accordance with the unit of the amount indicated in Japanese currency conversion. However, the Total field need not beshown in the currency of such acquisition.
2. When the assets concerned are overseas real estate, etc., the amount of “Rental Business Revenue” shall be valuated andconverted at the average exchange rate during the period.
With regard to overseas real estate, etc., the amount in the currency in which such rental business revenue is received shallbe indicated in parentheses in accordance with the unit of the amount indicated in Japanese currency. However, the Total
field need not be shown in such receiving currency.
3. Figures for “Calculated Value at the End of Period” and “Rental Business Revenue” shall be indicated in units of 1,000 yen
or 1,000,000 yen. However, other units may be used when deemed appropriate for the protection of investors.
4. The “Occupancy Rate” (the ratio of leased area to the leasable area at the end of the relevant accounting period) and the“Proportion to Total Rental Business Revenue” shall be rounded off to the second decimal place and indicated to the firstdecimal place.
5. When the assets concerned are overseas real estate, etc., “Sales Amount” shall indicate the total trading value of theinvestment corporation during the business period valuated and converted at the average exchange rate during the period.
With regard to overseas real estate, etc., the amount in the currency in which such rental business revenue is received shallbe indicated in parentheses in accordance with the unit of the amount indicated in Japanese currency. However, the Total
field need not be shown in such receiving currency.

–49–

Committee Resolution Concerning Investment Report of Infrastructure Investment
TrustsEstablished on July 16, 2015
Revised on May 18, 2017
Revised on April 18, 2019

This committee resolution stipulates the form and presentation guidelines of the items to be indicated inconnection with the investment report provided in Article 31 and the asset management reports provided in
Article 35 to which the Self-Regulation Committee has been delegated pursuant to the Rules for investment
reports, etc., for investment trusts and investment corporations.

1. The form and the presentation guidelines of items to be indicated pertaining to the investment reportprovided in Article 31 of the Rules shall be as shown in Attached Table 6.
2. The form and the presentation guidelines of items to be indicated pertaining to the asset management reportprovided in Article 35 of the Rules shall be as shown in Attached Table 7.

Supplementary ProvisionThis committee resolution shall come into effect on July 16, 2015.

Supplementary ProvisionThis amendment shall come into effect on May 18, 2017.
* The revisions are as follows:(1) Attached Table 6 (14) (i) (b)(2) Attached Table 7 (14) (i) (b)Supplementary ProvisionThis amendment shall come into effect on May 1, 2019.
* Necessary arrangement in connection with the change of era name– 1 –

Attached Table 6: Format and Indication Example of Investment Reports for Infrastructure Investment Trusts(Article 31 of the Rules)(1) Changes in investment trust property management status, etc.

Operating Revenue
Ordinary Income
Current Period Net
IncomePeriod [1]From:

Period [2]From:Period [3]From:

Period [4]From:

Period [5]From:

MM/DD/YYYY
To: MM/DD/YYYY

MM/DD/YYYY
To: MM/DD/YYYY

MM/DD/YYYY
To: MM/DD/YYYY

MM/DD/YYYY
To: MM/DD/YYYY

MM/DD/YYYY
To: MM/DD/YYYY

Thousands yen
Thousands yen
Thousands yen

Thousands yen
Thousands yen
Thousands yen

Thousands yen
Thousands yen
Thousands yen

Thousands yen
Thousands yen
Thousands yen

Thousands yen
Thousands yen
Thousands yen

Thousands yen(% Compared to
the Previous
Period)Thousands yen(% Compared to
the Previous
Period)Thousands yen(% Compared to
the Previous
Period)Thousands yen(% Compared to
the Previous
Period)Total Assets

Thousands yen
Thousands yen
Thousands yen(% Compared to the (% Compared to the (% Compared to thePrevious Period)
Previous Period)
Previous Period)

Net Assets

Thousands yen
Thousands yen
Thousands yen(% Compared to the (% Compared to the (% Compared to thePrevious Period)
Previous Period)
Previous Period)

Base Value(Amount of Net
Assets per Unit)
Equity Ratio

Yen

Yen

Yen

Yen

Yen

%
(Increase or
decrease from theprevious period)%(Increase or
decrease from theprevious period)%(Increase or
decrease from theprevious period)%(Increase or
decrease from theprevious period)%(Increase or
decrease from theprevious period)(Notes on Entries)
1. “Operating Revenues,” “Ordinary Income,” “Total Net Income for Current Period,” “Total Assets” and “Net Assets” shallbe indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used when deemed appropriate for theprotection of investors.
2. The “Amount of Net Assets per Unit” shall be indicated in units of yen. However, other units may be used.
3. “Equity Ratio” and “Comparison to Previous Period,” shall be rounded off to the second decimal place and indicated to thefirst decimal place.

(3) Status of Trust Principal, etc.

MM/DD/YYYY

Description

Number of Units ofBeneficial Interest Issued
Increase or
Balancedecrease

Total Amount of Trust
Principal
Increase or
Balancedecrease

Remarks(Notes on Entries)
1. The “Description” shall indicate whether it is a “Capital Increase” (public offering or private placement), “Installments,” or“Amalgamation,” etc., separately.
2. The “Total Amount of Trust Principal” shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may
be used when deemed appropriate for the protection of investors.
3. “Remarks” shall indicate the reasons for the act and other matters deemed important for investor protection.

– 2 –(4) Performance of Distributions, etc.
Period [1]From:

Period [2]From:Period [3]From:

Period [4]From:

Period [5]From:

MM/DD/YYYY
To: MM/DD/YYYY

MM/DD/YYYY
To: MM/DD/YYYY

MM/DD/YYYY
To: MM/DD/YYYY

MM/DD/YYYY
To: MM/DD/YYYY

MM/DD/YYYY
To: MM/DD/YYYY

Total Net Income forThousands yen
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Current Period
Retained Earnings
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Total Cash
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Distributions
(
yen)
(
yen)
(
yen)
(
yen)
(
yen)
(Distributions per
Unit)
Of which, Total Profit
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Distributions
(
yen)
(
yen)
(
yen)
(
yen)
(
yen)
(Profit Distributions
per Unit)
Of which, Total
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Return of Investment
(
yen)
(
yen)
(
yen)
(
yen)
(
yen)
Principal(Return of Investment
Principal per Unit)(Notes on Entries)
1. “Total Net Income for Current Period,” “Retained Earnings,” Total Cash Distributions,” “Total Profit Distributions,” and“Total Principal Payment” shall be indicated in units of 1,000 yen or units of 1 million yen. “Distributions per Unit,”“Profit Distribution Per Unit,” and “Return of Investment Principal per Unit” shall be indicated in units of yen. However,other units may be used when deemed appropriate for the protection of investors.

– 3 –(12) Composition of Investment Trust Property
Total Holdings

Renewable Energy Power Generation Facilities
Right to Operate Public Facilities
R e a lE s t a t e

Superficies Rights
Rights of Lease of Real Estate
Infrastructure Trust Beneficiary Rights
Silent Partnership Equity
･

･

･

･

･

O t h e r

A s s e t s

T o t a l

A s s e t s

Proportion to Total Assets

Amount of real infrastructure assets heldThousands yen

Proportion to Total Assets%

Thousands yen%

Thousands yen%

Thousands yen%

Thousands yen%

Thousands yen
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Thousands yen

%
%
%
%
%
%
%
%
%
%

Foreign Currency-Denominated
Assets Held
Valuation Gains or Losses of Foreign Exchange Proportion to Total Assets
Thousands yen
Thousands yen%
Thousands yen
Thousands yen%
Thousands yen
Thousands yen%
Thousands yen
Thousands yen%
Thousands yen
Thousands yen%
Thousands yen
Thousands yen%
Thousands yen
Thousands yen%
Thousands yen
Thousands yen%
Thousands yen
Thousands yen%
Thousands yen
Thousands yen%(Notes on Entries)
1. When “Superficies Rights” and “Rights of Lease of Real Estate” are held together with buildings, etc., they shall be
combined and indicated together with buildings, etc., in the “Real Estate” field.
2. “Total Holdings” shall indicate the book value at the end of the period including the amount of foreign currency
denominated assets held. “Amount of real infrastructure assets held” shall indicate the amount obtained by deducting cash
held in said assets from the book value at the end of the period for said assets.
3. Regarding the “Proportion to Total Assets,” the ratio of said assets “amount of real infrastructure assets held” to total assets
shall be written in parentheses.
4. “Foreign Currency-Denominated Assets Held,” shall indicate the amount of overseas infrastructure-related assets andoverseas real estate held out of the total amount held, valuated and converted at the exchange rate at the time of acquisition.
“Valuation Gains or Losses of Foreign Exchange” shall display the amount obtained by subtracting the book value at theend of the period valuated and converted at the exchange rate at the time of acquisition from the book value at the end of
the period valuated and converted at the exchange rate at the end of the period. “Proportion to Total Assets” shall indicate
the ratio of said assets to the total amount of assets.
5. “Proportion to Total Assets” shall be rounded off to the second decimal place and indicated to the first decimal place.
6. The “Total Holdings,” “Actual Real Estate Holdings,” “Foreign Currency-Denominated Assets Held” and “Valuation
Gains or Losses of Foreign Exchange” shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may
be used when deemed appropriate for the protection of investors.
7. The field “Foreign Currency Denominated Assets Held” may be omitted if there are no overseas infrastructure-related
assets or overseas real estate holdings.

– 4 –(13) Major Assets Held
Summary of assets
including infrastructure
assetsMatters regarding valuation ofassets including infrastructure
assetsMatters regarding income
arising from assets including
infrastructure assets

Matters exerting a material
impact on investment
decisions for assets including
infrastructure assets

Name of Real Estate, etc.

Book Value____Building (Trust
Beneficiary Right)

Thousands yen

m2

Proportion to
Occupancy Total Rental
Rate
Business
Revenuem2%%

Thousands yen

m2

m2

%

%

Thousands yen

m2

m2

%

%

Thousands yen

m2

m2

%

%

Thousands yen

m2

m2

%

%

Thousands yen

m2

m2

%

%

Total

Leasable
Area

Leased Area

Principal Use(Notes on Entries)
1. “Summary of assets including infrastructure assets” shall describe, for example, the name, location, use, size, structure,
performance, etc., in an easy-to-understand manner.
2. “Matters regarding valuation of assets including infrastructure assets” shall describe, for example, the price of assets,
including infrastructure assets, recognized as fair (including the valuation method and the name or title of the evaluator),
details of collateral and matters that exert a material impact on valuation of assets including infrastructure assets in aneasy-to-understand manner.
3. “Matters regarding income arising from assets including infrastructure assets” shall describe, for example, the status ofrevenues generated from assets including infrastructure assets (including a breakdown thereof), specific actual results ofprojects from which revenues are generated, and information for reference in evaluating such actual results in aneasy-to-understand manner.
4. Assets including infrastructure assets traded on an exchange shall describe the exchange, and assets to which the otherparty with rights is entitled shall be classified by area according to the address or location of the other party with rights, andfor each such asset, the name, quantity, price (book value and market value or appraised value (together with the method ofvaluation)), and investment ratio of the asset shall be described together.
5. “Name of Real Estate, etc.,” shall indicate the name, etc., indicated in the Securities Registration Statement, etc.
6. “Book Value” shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used when deemed
appropriate for the protection of investors.
7. For the number of properties, land, buildings, surface rights, leasehold rights, etc., located at the same parcel number, etc.,
shall be counted as one property.
8. “Leasable Area” and “Leased Area” shall be indicated in units of m2. However, other units may be used when deemed
appropriate for the protection of investors.
9. The “Occupancy Rate” (the ratio of leased area to the leasable area at the end of the relevant accounting period) and the“Proportion to Total Rental Business Revenue” shall be rounded off to the second decimal place and indicated to the firstdecimal place. However, other units may be used when deemed appropriate for the protection of investors.
10. The term “Principal Use” shall indicate what is deemed appropriate as the “Principal Use” of the relevant asset or theunderlying asset of the said asset at the discretion of the investment trust entrustment business, taking into considerationsuch factors as the ratio of rental area and rental revenue by use for the said asset or the underlying asset of the said asset.

– 5 –(14) Details of Incorporated Assets(i) Details of Renewable Energy Power Generation Facilities, etc.
(a) Summary Table(Unit:_____)

Type of Assets

Balance attheBeginningof Current
PeriodIncrease
DuringCurrent
PeriodDecrease
DuringCurrent
PeriodAccumulated Depreciation or
Balance
Balance atat the End Accumulated Amortization
End ofDescription
for Currentof Current Amortization
Current
PeriodPeriodPeriodLiquidAssetsTotal

Tangible
Fixed
Assets
Total

Intangible
Fixed
Assets
Total(Notes on Entries)
1. Land and other assets used for power generation projects associated with renewable energy power generation facilities
shall also be indicated.
2. The “Liquid Assets,” “Tangible Fixed Assets,” and “Intangible Fixed Assets” fields shall be indicated according to theclassification of the items listed in the balance sheet.
3. The fields for “Balance at the Beginning of the Current Period,” “Increase During Current Period,” “Decrease During
Current Period,” and “Balance at the End of the Current Period,” shall be indicated based on the acquisition price of theapplicable assets.
4. Note the details of the increase and decrease during the current period.
5. If there is an increase or decrease in the amount exceeding 1% of the total amount of assets of the same type, the reason for
the increase or decrease shall be indicated in the “Description” field.
6. If the acquisition cost is revised due to special reasons, such revaluation differences, etc., shall be displayed as an internal
note (in parentheses) in the “Increase During Current Period” or “Decrease During Current Period” fields, and the reason
for increase or decrease shall be indicated in the “Description” field.

– 6 –(b) Details of Renewable Energy Power Generation Facilities, etc.
Districts and Zones

Structure

Date of Certification

Name of Certified
Business Operator, etc.

Name of the Other Party of
the Specified Contract, etc.

Procurement Price, etc.

Procurement Period,etc.

Date of Acquisition

-

-

-

-

-

-

-

-

-

Subtotal

-

-

-

-

-

-

-

-

-

-

-

-

Subtotal

-

-

-

-

-

-

-

-

-

-

-

-

Subtotal

-

-

-

-

-

-

-

-

-

-

-

-

Total

-

-

-

-

-

-

-

-

-

-

-

-

Status of Collateral

Location-Book Value at the End
of Current Period

Name

-

Acquisition Cost

No.

-

Site Area

Classification of
Equipment, etc.
Subtotal(Notes on Entries)
1. Land and other assets used for power generation projects associated with renewable energy power generation facilities
shall also be indicated.
2. In the “Name” field, indicate the name which adequately represents the renewable energy power generation facility, suchas the name of the facility described in the application for approval by the Minister of Economy, Trade and Industry
pursuant to Article 9, Paragraph 3 of the Act on Special Measures Concerning Procurement of Electricity from Renewable
Energy Sources by Electricity Utilities.
3. In the “Location” field, indicate the location (up to the lot number) of the renewable energy power generation facility andthe land and other assets to be used for the power generation project incidental thereto (hereinafter referred to as“renewable energy power generation facility, etc.” in (b) and (c)).
4. In the “Districts and Zones” field, the use district listed in Article 8, Paragraph 1, Item 1 of the City Planning Act (Act No.
100 of 1968) shall be indicated.
5. In the “Structure” field, indicate the structure, etc., of the renewable energy power generation facility (in the case of land,
the land classification).
6. In the “Date of Certification” field, enter the date of approval by the Minister of Economy, Trade and Industry pursuant to
the provision of Article 9, Paragraph 3 of the Act on Special Measures Concerning Procurement of Electricity from
Renewable Energy Sources by Electricity Utilities when the renewable energy power generation facilities fall under the
category of certified power generation facilities (if any change has been approved pursuant to the provision of Article 10,
Paragraph 1 of the same Act, the date of certification and the details of such change, and if any change has been notified
pursuant to the provision of Paragraph 2 or 3 of the said Article, the date of acceptance of such notification and the detailsof such change shall be included).
7. In the “Name of Certified Business Operator, etc.” field, when the renewable energy power generation facilities fall under
the category of certified power generation facilities, the name of the certified business operator shall be indicated, and inother cases, the name of the person who is considered the provider shall be indicated.
8. In the “Name of the Other Party of the Specified Contract, etc.” field, the name of the other party of the specific contract
shall be indicated when the renewable energy power generation facilities fall under the category of certified power
generation facilities, and in other cases, the name of the other party of the electricity supply contract shall be indicated.
9. In the “Procurement Price, etc.” field, indicate the procurement price when the renewable energy power generation
facilities fall under the category of certified power generation facilities, otherwise, the price per kilowatt hour of renewableenergy electricity to be supplied under the power supply contract shall be indicated.
10. In the “Procurement Period, etc.” field, indicate the procurement period when the renewable energy power generation– 7 –facilities fall under the category of certified power generation facilities, or the contract period of the power supply contract
in other cases.
11. In the “Date of Acquisition” field, indicate the date of acquisition of the renewable energy power generation facility, etc.
12. Subtotals in the “Site Area,” “Acquisition Cost” and “Book Value at the End of the Current Period” fields shall be thesubtotal for each category of facilities.
13. In the “Status of Collateral” field, if the renewable energy power generation facility, etc. in question is pledged ascollateral, an indication to that effect shall be given.
14. The “No.” field shall be consistent with the organization No. of such renewable energy power generation facilities in “(c)Details of Revenue Status of Renewable Energy Power Generation Facilities, etc.”(c) Details of Revenue Status of Renewable Energy Power Generation Facilities, etc.
Organization
No.

Name of
Property___ Period
MM DD,YYYY to MM
DD, YYYY___ Period
MM DD,YYYY to MM
DD, YYYY

Location

Renewable Energy Power
Generation Facilities
Land
Building
Renewable Energy Power
Generation Facilities
Land
Building

Item___ Period
MM DD,YYYY to MM
DD, YYYY___ Period
MM DD,YYYY to MM
DD, YYYY___ Period
MM DD, YYYY
to MM DD,
YYYY

Rental Business Revenue
Rent
・・・・・
Rental Business Revenue
Subtotal A
Rental Business Expenses
Taxes and Levies(of which, Property tax)
Miscellaneous Expenses(of which, ・・・・)(of which, ・・・・)
Depreciation(of which, ・・・・)(of which, ・・・・)
・・・・・
Rental Business Expenses
Subtotal B

Renewable Energy Power
Generation
Equipment Rental BusinessProfits and Losses
A-B(Notes on Entries)
1. This table shall be prepared for each renewable energy power generation facility. When land or other assets used for power
generation business are leased as one unit, revenues and expenses related to such assets shall also be indicated. If therenewable energy generation facility and land or other assets are managed in an integrated manner, such properties are notprecluded from being prepared as a single property.
2. Shall prepare for the past five periods.

– 8 –3. For miscellaneous expenses and costs, enter utility costs, subcontract management costs, and repair costs, etc.
4. In addition to machinery and equipment, depreciation expenses shall also indicate buildings, appliances, fixtures, etc.,
relevant to the renewable energy power generation facility.

(ii) Details of Rights to Operate Public Facilities, etc.
(a) Summary Table(Unit:_____)

Type of Assets

Balance attheBeginningof Current
PeriodIncrease
DuringCurrent
PeriodDecrease
DuringCurrent
PeriodBalanceat theEnd ofCurrent
PeriodAccumulated Depreciation or
Accumulated Amortization
Amortization
for Current
PeriodBalanceat EndofCurrent
PeriodDescription

LiquidAssetsTotal

Tangible
Fixed
Assets

Total

Intangible
Fixed
Assets

Total(Notes on Entries)
1. The Right to Operate Public Facilities, etc., public facilities etc., pertaining to the Right to Operate Public Facilities etc.,
and land and other assets acquired incidental to the business of operating public facilities etc., pertaining to the Right toOperate Public Facilities, etc. (hereinafter referred to as “Right to Operate Public Facilities, etc.” in (b) and (c)) shall be
indicated.
2. The “Liquid Assets,” “Tangible Fixed Assets,” and “Intangible Fixed Assets” fields shall be indicated according to theclassification of the items listed in the balance sheet.
3. The fields for “Balance at the Beginning of the Current Period,” “Increase During Current Period,” “Decrease During
Current Period,” and “Balance at the End of the Current Period,” shall be indicated based on the acquisition price of theapplicable assets.
4. Note the details of the increase and decrease during current period.
5. If there is an increase or decrease in the amount exceeding 1% of the total amount of assets of the same type, the reason for
the increase or decrease shall be indicated in the “Description” field.
6. If the acquisition cost is revised due to special reasons, such revaluation differences, etc. shall be displayed as an internal
note (in parentheses) in the “Increase During Current Period” or “Decrease During Current Period” fields, and the reason
for increase or decrease shall be indicated in the “Description” field.

– 9 –(b) Details of the Right to Operate Public Facilities, etc.
No.

Name

Matters Regarding the Right to Operate
Public Facilities, etc.

Matters regarding public facilities, etc.

Status of CollateralBook Value at the End
of Current Period

Acquisition Cost

Date of Acquisition

Duration

Total Area

Structure

Name of the otherparty to theentrustment contract
for the operation of
public facilities, etc.

Name of Manager,
etc.

Districts and Zones

Location(Notes on Entries)
1. If land or other assets are acquired incidental to the management of public facilities pertaining to the Right to Operate
Public Facilities, the relevant assets shall also be indicated in the fields for “No.,” “Name,” “Location,” “Districts andZones,” “Structure,” “Total Area,” “Date of Acquisition,” “Acquisition Cost,” “Book Value at the End of Current Period,”and “Status of Collateral.”
2. In the “Location” field, indicate the location (up to the lot number) of such public facilities, etc.
3. In the “Districts and Zones” field, the use district listed in Article 8, Paragraph 1, Item 1 of the City Planning Act shall be
indicated.
4. In the column of “Name of Manager, etc.,” indicate the name of the manager, etc., of such public facilities, etc.
5. In the “Structure” field, indicate the structure (land category in the case of land) of such public facilities, etc.
6. In the “Duration” field, the duration (beginning and ending) of the said Right to Operate Public Facilities, etc. shall be
indicated.
7. In the “Date of Acquisition” field, indicate the date of acquisition of the Right to Operate Public Facilities, etc.
8. In the “Status of Collateral” field, if the Right to Operate Public Facilities, etc. is pledged as collateral, an indication to that
effect shall be given.
9. The “No.” field shall be consistent with the organization No. in “(c) Details of Revenue Status of Right to Operate Public
Facilities, etc.”– 10 –

(c) Details of Revenue Status of Right to Operate Public Facilities, etc.
Organization
No.

Name of
Property___ Period
MM DD,YYYY to MM
DD, YYYY___ Period
MM DD,YYYY to MM
DD, YYYY

Location

Right to Operate Public
Facilities, etc.
Land
Building
Right to Operate Public
Facilities, etc.
Land
Building

Item___ Period
MM DD,YYYY to MM
DD, YYYY___ Period
MM DD,YYYY to MM
DD, YYYY___ Period
MM DD,YYYY to MM
DD, YYYY

Revenue from public
facilities operating business・・・・・
Revenue from public
facilities operating business
Subtotal A
Operating Business
Expenses
Taxes and Levies(of which, Property tax)
Miscellaneous Expenses(of which, ・・・・)(of which, ・・・・)
Depreciation or
Amortization(of which, ・・・・)(of which, ・・・・)
・・・・・
Expenses for public
facilities operating business
Subtotal B
Profit and loss from public
facilities operating business
A-B(Notes on Entries)
1. This table shall be prepared for each Right to Operate Public Facilities, etc. If land or other assets are acquired incidental tothe operation of public facilities, etc., pertaining to the Right to Operate Public Facilities, etc., such assets shall also be
indicated.
2. Shall prepare for the past five periods.
3. For miscellaneous expenses and costs, enter utility costs, subcontract management costs, and repair costs, etc.
4. Depreciation or amortization shall include not only the Right to Operate Public Facilities, etc., but also assets acquired
incidental to the operating project.
5. If the operating business expenses include the expenses prescribed in Article 20 of the Act on Promotion of Private FinanceInitiative, the amount and the breakdown of the amount shall be stated in the margin.

– 11 –

(iii) Details of incorporated real estate assets

Name ofCalculated
Real
Form of Value at the
Location
Estate,Ownership End ofetc.
Period○○ Ward,
Tokyo

Total

–

Thousandsyen
Thousandsyen–Previous Period (MM/DD/YYYY Current Period (MM/DD/YYYY MM/DD/YYYY)
MM/DD/YYYY)
Total
RentalProportion Total
RentalProportion
Number Occupancy
Occupancy
Businessto Total Number
Businessto Total
of
Rate
Rate
Revenue
Rentalof
Revenue
Rentalat Endat End ofat End ofDuring the Business at End of
During the Businessof thethe Period
the Period
PeriodRevenue the Period
PeriodRevenue
Period% Thousands%% Thousands
%
yen
yen
% Thousands%% Thousands
%
yen
yen

Thousandsyen
Thousandsyen%

Thousands
yen

%

%

Thousandsyen
Thousands
yen

%

%

%

%

Thousands
yen

%

%

Thousandsyen
Thousandsyen%

Thousands
yen

%

%

(Notes on Entries)
1. The field “Calculated Value at the End of Period,” shall indicate the appraised value at the end of period, which is
calculated by the valuation method stipulated in Article 5 and Article 6 of the Rules on Real Estate Investment Trusts andReal Estate Investment Corporations. For overseas real estate, etc., the appraised value at the end of period shall be
indicated in Japanese yen converted at the exchange rate at the end of the period.
For overseas real estate, etc., the amount in the currency of acquisition of the relevant assets shall be indicated inparentheses in accordance with the unit of the amount indicated in Japanese currency conversion. However, the Total fieldneed not be shown in the currency of such acquisition.
2. If the asset is overseas real estate, etc., the amount of “Rental Business Revenue” shall be the amount of rental businessrevenue valuated and converted at the exchange rate at the end of the period.
With regard to overseas real estate, etc., the amount in the currency in which such rental business revenue is received shallbe indicated in parentheses in accordance with the unit of the amount indicated in Japanese currency. However, the Total
field need not be shown in such receiving currency.
3. Figures for “Calculated Value at the End of Period” and “Rental Business Revenue” shall be indicated in units of 1,000 yen
or 1,000,000 yen. However, other units may be used when deemed appropriate for the protection of investors.
4. The “Occupancy Rate” (the ratio of leased area to the leasable area at the end of the relevant accounting period) and the“Proportion to Total Rental Business Revenue” shall be rounded off to the second decimal place and indicated to the firstdecimal place.
5. The land and other assets indicated in “(i) Details of Renewable Energy Power Generation Facilities, etc.” and “(ii) Detailsof Rights to Operate Public Facilities, etc.” shall not be indicated.

– 12 –

(iv) Details of Assets Incorporated in Securities
Book Value

Type ofAssetsName of Stocks

Unit Price

–

Total

Appraised Value
AmountValuation
Profit or
Loss

Thousandsyen
Thousandsyen
Thousandsyen

Thousandsyen
Thousandsyen
Thousandsyen

Quantity–

AmountUnit Price

Thousandsyen
Thousandsyen
Thousands
yen

–

–

Remarks–(Notes on Entries)
1. The “Book Value,” “Appraised Value,” and “Valuation Profit or Loss” fields shall be indicated in units of 1,000 yen or
1,000,000 yen. However, other units may be used when deemed appropriate for the protection of investors.

(15) Status of Other Assets(i) Stocks and investment securities
Issue

Number of
SharesAcquisition Cost
Unit PriceAppraised Value

AmountUnit Price

AmountValuation
Profit or
Loss

Remarks

Total(ii) Securities other than stocks
Type

Total
Face
Value

Issue

Book
Value

AccruedInterest
IncomeAdvance
Payments
Accrued interest

Appraised
Value(Unit:)

Valuation
Profit or Loss

RemarksTotal(iii) Detailed Statement of Margin Transaction Balance(Unit:)
Margin Transaction
Issue

Number of
Shares Sold

Book Value

Appraised Value– 13 –

Valuation Profit
or Loss

Remarks

(iv) Table of Contract Amount and Market Value of Specified Transactions and Exchange Contract
Transactions, etc.

(Unit:

Category

Contract Amount, etc.
Of which, morethan one year

Type

)

Current Value

Market Transactions
Transactions other than Market Transactions

Futures Transactions
Sell contracts
Buy contracts
Option Transactions
Sell contracts
Call
Put
Buy contracts
Call
Put
Forward Transactions
Sell contracts
Buy contracts
Exchange Contract Transactions
Sell contracts
Buy contracts
Option Transactions
Sell contracts
Call
Put
Buy contracts
Call
Put
Swap transaction
Variable Receipts and Fixed Payments
Fixed Receipts and Variable Payments
OthersTotal(v) Details of Other Specified Assets
Type ofSpecified
AssetsBook Value

Appraised Value

Quantity
Unit Price

AmountUnit Price

Total– 14 –

Amount(Unit:)

Valuation
Profit or
Loss

Remarks

(16) Status of Asset Holdings by Country and Region

CountryJapan
U.S.A.
･･･
Total

Calculated Valueat the End of
PeriodTotal Holdings

Number ofproperties

Thousands yen

Thousands yen

Proportion to
Total Assets%

Thousands yen

Thousands yen%

Properties

Thousands yen

Thousands yen%

Properties

Thousands yen

Thousands yen

100%

Properties

Properties(Notes on Entries)
1. “Total Holdings” shall indicate the book value at the end of the period, and “Calculated Value at the End of Period” shallindicate the valuation at the end of the period in accordance with the valuation methods set forth in Article 5, Article 6, andArticle 7 of the Regulations on Infrastructure Investment Trusts. Amounts shall be indicated in units of 1,000 yen or
1,000,000 yen. However, other units may also be indicated together when deemed appropriate for the protection of
investors.
2. The “Total Holdings” of overseas infrastructure-related assets and overseas real estate shall be converted into Japanese yen
using the exchange rate at the time of acquisition, and the “Calculated Value at the End of Period” shall be converted into
Japanese yen using the exchange rate at the end of period.
3. The “Proportion to Total Assets” shall indicate the ratio of the calculated value at the end of the period of each relevant
country or region to the total calculated value at the end of the period, and shall be rounded off to the second decimal placeand indicated to the first decimal place.

(17) Schedule of Capital Expenditures
Name of
Infrastructure
Assets, etc.
○○○○
○○○○

Estimated Amount for Work
Location

PurposeEstimated Duration

Chuo Ward,Tokyo
Chuo Ward,Tokyo○○ Renovation
Work○○ RenovationWork

From : MM/DD/YYYY
To: MM/DD/YYYY
From : MM/DD/YYYY
To: MM/DD/YYYY

Construction Cost
or Payment
Total Amount Paid
AmountTotal
Thousands yen

Thousands yen

Thousands yen

Thousands yen

Thousands yen

Thousands yen

Estimated Amount for Work
Name of Real
Estate, etc.
○○ Building○○ Building

Location

PurposeEstimated Duration

Chuo Ward,Tokyo
Chuo Ward,Tokyo○○ Renovation
Work○○ RenovationWork

From : MM/DD/YYYY
To: MM/DD/YYYY
From : MM/DD/YYYY
To: MM/DD/YYYY

Total

Construction Cost
or Payment
Total Amount Paid
AmountThousands yen

Thousands yen

Thousands yen

Thousands yen

Thousands yen

Thousands yen(Notes on Entries)
1. The “Construction Cost or Payment Amount” shall be indicated on a work basis or on a payment basis in units of 1,000
yen or 1,000,000 yen. However, other units may be used when deemed appropriate for the protection of investors.
2. For “Construction Cost or Payment Amount,” specify in the margin that the amount is indicated on a “work basis” or“payment basis.”(18) Capital Expenditures during the Period
Name of
Infrastructure
Assets, etc.

Construction Cost or
Payment Amount

Location

Purpose

Period○○○○○○ Ward, Tokyo○○ RenovationWork

From: MM/DD/YYYY
To: MM/DD/YYYY

Thousands yen○○○○○○ Ward, Tokyo○○ RenovationWork

From: MM/DD/YYYY
To: MM/DD/YYYY

Thousands yen– 15 –Name of Real
Estate, etc.

Location○○ Building○○ Ward, Tokyo○○ Building○○ Ward, Tokyo

Construction Cost or
Payment AmountPurpose

Period○○ Renovation
Work○○ RenovationWork

From: MM/DD/YYYY
To: MM/DD/YYYY
From: MM/DD/YYYY
To: MM/DD/YYYY

Thousands yen
Thousands yen(Notes on Entries)
1. The “Construction Cost or Payment Amount” shall be indicated on a work basis or payment basis in units of 1,000 yen or
1,000,000 yen. However, other units may be used when deemed appropriate for the protection of investors.
2. For “Construction Cost or Payment Amount,” it should be clearly indicated in the margin that it is indicated on a “Work
Basis” or “Payment Basis.”(19) Money Accumulated for Long-Term Repair Plans
Business Period___ Period
From:___ Period
From:___ Period
From:___ Period
From:___ Period
From:

MM/DD/YYYY
To: MM/DD/YYYY

MM/DD/YYYY
To: MM/DD/YYYY

MM/DD/YYYY
To: MM/DD/YYYY

MM/DD/YYYY
To: MM/DD/YYYY

MM/DD/YYYY
To: MM/DD/YYYY

Balance of Funds
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Reserved at the End of
the Previous Period
Amount Reserved forThousands yen
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Current period
Amount of Reversal ofThousands yen
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Reserve for Current
PeriodAmount Carried
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Forward(Notes on Entries)
1. The “Reserve Fund” referred to in this table refers to the money that must be actually set aside systematically and regularly
each period from surplus cash flow such as depreciation expenses, etc. (including that associated with profits internallyretained) in accordance with the long-term repair plan indicated in the asset management plan stipulated in Article 8,
Paragraph2 of the Rules on Real Estate Investment Trusts and Real Estate Investment Corporations.
2. Amounts shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used when deemed
appropriate for the protection of investors.

(20) Details of Expenses for Management, etc.
Item

Current Period(a) Total Trust Fees

Thousands yen

Consignor Fees

Thousands yen

Of which, clerical service charge

Thousands yen

Trustee Fees

Thousands yen(b) Other Expenses

Thousands yen
Total

Description of Service

Thousands yen-(Notes on Entries)
1. Amounts shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used when deemed
appropriate for the protection of investors.
2. For “(b) Other Expenses,” if there are expenses directly paid from the investment trust property other than trust fees, thetotal amount shall be displayed.
3. In the “Description of Service” field, the details of expenses for which each expense is a consideration shall be described,
and for “(b) Other Expenses,” the details of services for which each cost is a consideration shall be described upondescribing the breakdown of specific costs.

– 16 –

(21) Status of Borrowing
Category
LenderBalance at the Balance at
End of thethe End ofPrevious
Current
PeriodPeriodDate of
Borrowing

Short-Term Loans

Thousands yen
Thousands yen
Thousands yen
Thousands yen

Total

Long-Term Loans

Thousands yen
Thousands yen
Thousands yen
Thousands yen

Total

Average
RepaymentInterest
Due Date
Rate

Method of
Repayment

Use

Description

Thousandsyen
Thousandsyen
Thousandsyen
Thousandsyen
Thousandsyen
Thousandsyen
Thousandsyen
Thousandsyen(Notes on Entries)
1. In principle, loans shall be classified into short-term and long-term and indicated by lender.
2. “Average Interest Rate” shall indicate the weighted average interest rate.
3. “Method of Repayment” shall indicate the method of repayment such as equal repayment of principal, equal repayment ofinterest, or lump-sum repayment on due date, etc.
4. “Description” shall indicate whether collateral is pledged or not, the name of the collateral, and any other special notes.
5. “Balance at the End of the Previous Period” and “Balance at the End of the Current Period” shall be indicated in units of
1,000 yen or 1,000,000 yen. However, other units may be used when deemed appropriate for the protection of investors.

(22) Trading of Infrastructure Assets, Infrastructure-Related Assets, Real Estate, and Asset-Backed Securities
Name of
Infrastructure
Assets, etc.

Acquisition
Date of
Acquisition○○○○(Infrastructure
Assets)

Total

Name of Real
Estate, etc.
○○ Building (Real
Estate)Total

Acquisition Cost

Transfer
Date ofTransfer

Book Value

Profit or Loss on
Sale

Thousands yen

Thousands yen

Thousands yen

Thousands yen

Thousands yen

Thousands yen

Thousands yen

Thousands yen

Thousands yen

Thousands yen

Thousands yen

Thousands yen

Acquisition
Date of
Acquisition

Amount of Transfer

Acquisition Cost

Transfer
Date ofTransfer

Amount of Transfer

Book Value

Profit or Loss on
Sale

Thousands yen

Thousands yen

Thousands yen

Thousands yen

Thousands yen

Thousands yen

Thousands yen

Thousands yen

Thousands yen

Thousands yen

Thousands yen

Thousands yen(Notes on Entries)
1. “Acquisition Cost” shall indicate the amount excluding various expenses required for the acquisition of infrastructure
assets and real estate (such as trading fees incurred in the acquisition of the infrastructure assets and real estate trading
brokerage fees), and that shall be explained in a marginal note.
2. “Acquisition Cost,” “Transfer Value,” “Book Value” and “Profit or Loss on Sale” shall be indicated in units of 1,000 yen
or 1,000,000 yen. However, other units may be used when deemed appropriate for the protection of investors.

– 17 –

(23) Sales and Purchase of Other Assets, etc.
PurchasedType of Assets

Number of
Certificates, etc.

Sold
AmountNumber of
Certificates, etc.

AmountThousandsyen
Thousandsyen
Thousandsyen
Thousandsyen
Thousands
yen

SharesInvestment
Securities
Bonds
････
Total

Thousandsyen
Thousandsyen
Thousandsyen
Thousandsyen
Thousandsyen

Balance at the End of Current
PeriodNumber ofAmountCertificates, etc.
Thousandsyen
Thousandsyen
Thousandsyen
Thousandsyen
Thousandsyen(Notes on Entries)
1. The “Amount” shall indicate the delivery price (amount not including accrued interest and various expenses (trading
commissions for sale and purchase, etc.)) and shall make a note to that effect in the margin.
2. “Amount” shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used when deemed
appropriate for the protection of investors.

(25) Status of Transactions with Interested Parties and Major Shareholders(i) Status of Transactions
Transaction Amount, etc.
Category
Amount of Purchase, etc.

Amount of Sale, etc.

Thousands yen
Total

Of which, the amount to be purchased frominterested parties, etc. ___,000 yen (%)

Thousands yen
Of which, the amount of sales to interested
parties, etc. ___,000 yen (%)

Breakdown of Status of Transaction with Interested Parties, etc.
____ Co., Ltd.

___,000 yen (%)___,000 yen (%)×× Co., Ltd.

___,000 yen (%)___,000 yen (

%)

Total

___,000 yen (%)___,000 yen (%)(ii) Amount of Payment Fees, etc.

Classification

Payment Fees, etc.
Total Amount (A)Breakdown of Transactions with Interested
Parties, etc.
Payment Amount
Payee
(B)

Percentage to Total
Amount(B/A) %AAA Co., Ltd.

Thousands yen%

BBB Co., Ltd.

Thousands yen%

Thousands yen

CCC Co., Ltd.

Thousands yen%

Real Estate Transaction Fees

Thousands yen

DDD Co., Ltd.

Thousands yen%

Commission for Sale of Trust
Beneficiary Right

Thousands yen

EEE Co., Ltd.

Thousands yen%……

Thousands yen……

Thousands yen%(Building) Management
Service Fees

Thousands yen

Commissions Incurred in
Acquiring Infrastructure
Assets, etc.

– 18 –

(Notes on Entries)
1. Figures in parenthesis ( ) shall indicate the ratio to the total amount of each item rounded off to the second decimal place.
2. “Amount of Purchase, etc.,” “Amount of Sale, etc.” and “Amount of Payment Fees, etc.” shall be indicated in units of
1,000 yen or 1,000,000 yen. However, other units may be used when deemed appropriate for the protection of investors.
3. When transactions with interested persons, etc. and major shareholders are made in foreign currencies, the amount shall be
converted into Japanese yen at the exchange rate at the time of transaction and indicated in units of 1,000 yen or 1,000,000
yen. However, other units may be used when deemed appropriate for the protection of investors. The amount in thecurrency in which such transaction is made shall be indicated in parentheses in the unit corresponding to the unit of theamount converted into Japanese yen. However, the total field need not be shown in the currency in which such transaction
is made.
4. If monetary payments are made to interested parties other than payment fees, etc., as described above, important mattersamong them shall be noted in the margin.

(26) Status, etc., of Transactions with the Entrusted Business Operator Pertaining to the Subsidiary BusinessConducted by the Entrusted Business Operator
Name of fees
Securities Transaction Fees
････
Total

__th Period
From: MM/DD/YYYY
To: MM/DD/YYYY
Thousands yen
Thousands yen
Thousands yen(Notes on Entries)
1. A note in the margin shall be made concerning subsidiary business to the effect that “Subsidiary Business for this period is○○, ×× and ････. ”
2. Amounts shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used when deemed
appropriate for the protection of investors.

(27) Status of Assets, Liabilities, Principal, and Profit and Loss(See Attached Table 7 (29))(28) Change in Method of Calculating Depreciation
AmountCalculation
Amount Calculated
Date of Change in
Calculated Using Newly Adopted
Method Adopted
by the Method of
Calculation
the Pre-change Calculation Method
Before theCalculation After
MethodCalculation
After Change
ChangeChangeMethodReason for
ChangeOthers○○○○○○○○○○○○○○ Building
Equipment
×× Building
Equipment(Notes on Entries)
1. “Amount Calculated” shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used when
deemed appropriate for the protection of investors.

– 19 –

(29) Change in Valuation Method for Infrastructure Assets and Real Estate
Date of Change
Valuationof Valuation
Method Adopted
MethodBefore Change

Appraised Value
Using thePre-change
Valuation
MethodNewly Adopted
Valuation Method
After Change

Appraised Value
After Change

Reason for
ChangeOthers○○○○○○○○○○○○○○ Building
×× Building(Notes on Entries)
1. “Appraised Value” shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used when
deemed appropriate for the protection of investors.

(30) Status, etc., of In-House Establishment of Investment Trust Beneficiary Certificates, etc.
(i) Status of Acquisition, etc.
Date:
MM/DD/YYYY

Number of Units
Acquired

Number of Units
Disposed

Number of Units
Held

Cumulative Total(Notes on Entries)
1. In the “Number of Units Held” field, enter the number of units the investment trust management company continues tohold after the relevant acquisition, etc.
2. In the “Cumulative Total” field, enter the number of units acquired and disposed of over the past five years, including theend of the current period, the cumulative total of each, and the number of units held at the end of the current period.

(ii) Status of Holdings, etc.
Number of Units
Held at End of Period

Total Holdings at
End of Period

Ratio to Total Numberof Units Issued__th Period
From: MM/DD/YYYY
To: MM/DD/YYYY__th Period
From: MM/DD/YYYY
To: MM/DD/YYYY__th Period
From: MM/DD/YYYY
To: MM/DD/YYYY__th Period
From: MM/DD/YYYY
To: MM/DD/YYYY__th Period
From: MM/DD/YYYY
To: MM/DD/YYYY(Notes on Entries)
1. “Total Holdings at End of Period” shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be
used when deemed appropriate for the protection of investors.
2. In the column of “Ratio to Total Number of Units Issued,” the ratio of the number of units held at the end of the period tothe total number of units issued shall be rounded off to the second decimal place and indicated to the first decimal place.

– 20 –

Attached Table 7: Format and Indication Example of Asset Management Reports for Infrastructure
Investment Corporations (Article 35 of the Rules)(1) Changes in the Investment Corporation’s Management Status, etc.

Operating Revenue
Ordinary Income
Current Period Net
IncomePeriod [1]Period [2]Period [3]Period [4]Period [5]From: MM/DD/YYYY
To: MM/DD/YYYY

From: MM/DD/YYYY
To: MM/DD/YYYY

From: MM/DD/YYYY
To: MM/DD/YYYY

From: MM/DD/YYYY
To: MM/DD/YYYY

From: MM/DD/YYYY
To: MM/DD/YYYY

Thousands yen
Thousands yen

Thousands yen
Thousands yen

Thousands yen
Thousands yen

Thousands yen
Thousands yen

Thousands yen
Thousands yen

Thousands yen

Thousands yen

Thousands yen

Thousands yen

Thousands yen

Thousands yen(% Compared to
the Previous
Period)Thousands yen(% Compared to
the Previous
Period)Thousands yen(% Compared to
the Previous
Period)Thousands yen(% Compared to
the Previous
Period)Total Assets

Thousands yen
Thousands yen
Thousands yen(% Compared to the (% Compared to the (% Compared to thePrevious Period)
Previous Period)
Previous Period)

Net Assets

Thousands yen
Thousands yen
Thousands yen(% Compared to the (% Compared to the (% Compared to thePrevious Period)
Previous Period)
Previous Period)

Amount of Net
Assets per Unit
(Base Value)
Equity Ratio

Yen

Yen

Yen

Yen

Yen

%
(Increase or
decrease from theprevious period)%(Increase or
decrease from theprevious period)%(Increase or
decrease from theprevious period)%(Increase or
decrease from theprevious period)%(Increase or
decrease from theprevious period)(Notes on Entries)
1. “Operating Revenues,” “Ordinary Income,” “Net Income for Current Period,” “Total Assets” and “Net Assets” shall be
indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used when deemed appropriate for theprotection of investors.
2. The “Amount of Net Assets per Unit” shall be indicated in units of yen. However, other units may be used.
3. “Equity Ratio” and “Comparison to Previous Period,” shall be rounded off to the second decimal place and indicated to thefirst decimal place.

(3) Status of Capital Increase, etc.

MM/DD/YYYY

Number of Investment Units
Total Amount ofIssuedContributions
Description
Increase or
Increase or
Balance
Balancedecreasedecrease

Remarks(Notes on Entries)
1. The “Description” shall indicate whether it is a “Capital Increase” (public offering or private placement), “Installments,” or“Amalgamation,” etc., separately.
2. “Total Amount of Contributions” shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be
used when deemed appropriate for the protection of investors.
3. “Remarks” shall indicate the reasons for the act and other matters deemed important for investor protection.

– 21 –

(4) Performance of Distributions, etc.
Period [1]Period [2]Period [3]Period [4]Period [5]From: MM/DD/YYYY
To: MM/DD/YYYY

From: MM/DD/YYYY
To: MM/DD/YYYY

From: MM/DD/YYYY
To: MM/DD/YYYY

From: MM/DD/YYYY
To: MM/DD/YYYY

From: MM/DD/YYYY
To: MM/DD/YYYY

Total Net Income forThousands yen
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Current Period
Retained Earnings
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Total CashDistributions
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Thousands yen(Distributions per
(
yen)
(
yen)
(
yen)
(
yen)
(
yen)
Unit)
Of which, Total Profit
Distributions
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Thousands yen(Profit Distributions
(
yen)
(
yen)
(
yen)
(
yen)
(
yen)
per Unit)
Of Which, Total
Repayment ofContributions
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Thousands yen(Repayment of
(
yen)
(
yen)
(
yen)
(
yen)
(
yen)
Contributions per
Unit)
Total Amount ofDistributions from
Allowance for
Temporary Difference
Adjustments, out of
Total Repayment ofContributions
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Thousands yen(Distribution from
(
yen)
(
yen)
(
yen)
(
yen)
(
yen)
Allowance for
Temporary Difference
Adjustments, out of
Repayment ofContributions per
Unit)
Total Amount ofDistributions from
Distributions for
Reduction of Capital
Contributions underTax Act out of Total
Repayment ofContributions
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Thousands yen(Distributions from
(
yen)
(
yen)
(
yen)
(
yen)
(
yen)
Distributions for
Reduction of Capital
Contributions underTax Act out of Total
Repayment ofContributions Per
Unit)(Notes on Entries)
1. “Total Net Income for Current Period,” “Retained Earnings,” “Total Cash Distributions,” “Total Profit Distributions,”“Total Repayment of Contributions,” “Total Amount of Distributions from Allowance for Temporary Difference
Adjustments,” and “Total Amount of Distributions from Distributions for Reduction of Capital Contributions under Tax
Act” shall be indicated in units of 1,000 yen or 1 million yen. “Distribution per Unit,” “Profit Distribution Per Unit,” and“Total Amount of Distributions from Allowance for Temporary Difference Adjustments” and “Total Distributions for
Reduction of Capital Contributions Under the Tax Act Per Unit” shall be indicated in units of yen. However, other units
may be used when deemed appropriate for the protection of investors.

– 22 –

(9) Matters Regarding Investment Units
Number of Investment
Units Owned (Units)

Name or Title

Ratio of Investment Units Owned toTotal Number of Units Issued (%)(10) Facts Concerning Officers, etc.
Title

Name or Title Officer, etc.

Main Concurrent
Offices, etc.

Total amount of remuneration foreach position during the relevantbusiness period (1,000 yen)

(Notes on Entries)
1. If no remuneration is received from the investment corporation, such fact shall be indicated.
2. In addition, other important matters that are deemed appropriate to be indicated for the purposes of investor protection,such as the dismissal of officers, etc., shall be indicated.

(12) Composition of Infrastructure Investment Corporation’s Assets

Amount of real infrastructure assets held

Proportion to Total
Assets
Proportion to Total Assets

Foreign Currency-Denominated
Assets Held
Valuation Gains or Losses of Foreig n Exchange Proportion to Total Assets

Thousands yen%

Thousands yen

Total Holdings

Renewable Energy Power Generation Facilities

Thousands yen
Thousands yen%

Right to Operate Public Facilities
Thousands yen%

Thousands yen%%

Rights of Lease of Real Estate

Silent Partnership Equity
･

･

･

･

･

Other Assets%

Thousands yen%

Thousands yen%

Thousands yen%

Thousands yen%

Thousands yen%

Thousands yen%

Thousands yen%– 23 –%
Thousands yen

Thousands yen
Thousands yen%
Thousands yen

Thousands yen
Thousands yen%
Thousands yen

Thousands yen

Superficies Rights

Infrastructure Trust Beneficiary Rights

Thousands yen
Thousands yen

Real Estate%%
Thousands yen

Thousands yen%
Thousands yen

Thousands yen%
Thousands yen

Thousands yen%
Thousands yen

Thousands yen%

Total Assets

Thousands yen%

Thousands yen%

Thousands yen
Thousands yen(Notes on Entries)
1. When “Superficies Rights” and “Rights of Lease of Real Estate” are held together with buildings, etc., they shall be
combined and indicated together with buildings, etc., in the “Real Estate” field.
2. “Total Holdings” shall indicate the book value at the end of the period including the amount of foreign currency
denominated assets held. “Amount of real infrastructure assets held” shall indicate the amount obtained by deducting cash
held in said assets from the book value at the end of the period for said assets.
3. Regarding the “Proportion to Total Assets,” the ratio of said assets “amount of real infrastructure assets held” to total assets
shall be written in parentheses.
4. “Assets Held in Foreign Currency” shall indicate the amount of overseas infrastructure-related assets and overseas realestate held out of the total amount held, evaluated and converted at the exchange rate at the time of acquisition. “Valuation
Gains or Losses of Foreign Exchange” shall display the amount obtained by subtracting the book value at the end of theperiod valuated and converted at the exchange rate at the time of acquisition from the book value at the end of the periodvaluated and converted at the exchange rate at the end of the period. “Proportion to Total Assets” shall indicate the ratio of
said assets to the total amount of assets.
5. “Proportion to Total Assets” shall be rounded off to the second decimal place and indicated to the first decimal place.
6. The “Total Holdings,” “Actual Real Estate Holdings,” “Foreign Currency-Denominated Assets Held” and “Valuation
Gains or Losses of Foreign Exchange” shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may
be used when deemed appropriate for the protection of investors.
7. The field “Foreign Currency Denominated Assets Held” may be omitted if there are no overseas infrastructure-related
assets or overseas real estate holdings.

(13) Major Assets Held
Summary of assets
including infrastructure
assetsName of Real Estate,
etc.
____Building (Trust
Beneficiary Right)

Total

Matters regarding valuation ofassets including infrastructure
assetsMatters regarding income
arising from assets including
infrastructure assets

Matters exerting a material
impact on investment
decisions for assets including
infrastructure assets

Book Value

Leasable Area

Leased Area

Thousandsyen
Thousandsyen
Thousands
yen

m2

m2

Proportion
to Total
RentalRevenue
%
%

m2

m2

%

%

m2

m2

%

%

m2

m2

%

%

m2

m2

%

%

m2

m2

%

%

Thousandsyen
Thousandsyen
Thousandsyen

Occupancy
Rate

Principal Use(Notes on Entries)
1. “Summary of assets including infrastructure assets” shall describe, for example, the name, location, use, size, structure,
performance, etc., in an easy-to-understand manner.
2. “Matters regarding valuation of assets including infrastructure assets” shall describe, for example, the price of assets,– 24 –%

including infrastructure assets, recognized as fair (including the valuation method and the name or title of the evaluator);
details of collateral; and matters that exert a material impact on valuation of assets including infrastructure assets in aneasy-to-understand manner.
3. “Matters regarding income arising from assets including infrastructure assets” shall describe, for example, the status ofrevenues generated from assets including infrastructure assets (including a breakdown thereof), specific actual results ofprojects from which revenues are generated, and information for reference in evaluating such actual results in aneasy-to-understand manner.
4. Assets including infrastructure assets traded on an exchange shall describe the exchange, and assets to which the otherparty with rights is entitled shall be classified by area according to the address or location of the other party with rights, andfor each such asset, the name, quantity, price (book value and market value or appraised value (together with the method ofvaluation)), and investment ratio of the asset shall be described together.
5. “Name of Real Estate, etc.,” shall indicate the name, etc., indicated in the Securities Registration Statement, etc.
6. “Book Value” shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used when deemed
appropriate for the protection of investors.
7. For the number of properties, land, buildings, surface rights, leasehold rights, etc., located at the same parcel number, etc.,
shall be counted as one property.
8. “Leasable Area” and “Leased Area” shall be indicated in units of m2. However, other units may be used when deemed
appropriate for the protection of investors.
9. The “Occupancy Rate” (the ratio of the rented area to the rentable area at the end of the relevant accounting period) and the“Proportion to Total Rental Revenue” shall be rounded off to the second decimal place and indicated to the first decimal
place. However, other units may be used when deemed appropriate for the protection of investors.
10. The term “Principal Use” shall indicate what is deemed appropriate as the “Principal Use” of the relevant asset or theunderlying asset of the said asset at the discretion of the investment trust entrustment business, taking into considerationsuch factors as the ratio of rental area and rental revenue by use for the said asset or the underlying asset of the said asset.

(14) Details of Incorporated Assets(i) Details of Renewable Energy Power Generation Facilities, etc.
(a) Summary Table(Unit:_____)

Type of Assets

Balance attheBeginningof Current
PeriodIncrease
DuringCurrent
PeriodDecrease
DuringCurrent
PeriodBalanceat theEnd ofCurrent
PeriodAccumulated Depreciation or
Accumulated Amortization
Amortization for Current
PeriodBalanceat EndofCurrent
PeriodDescription

LiquidAssetsTotal

Tangible
Fixed
Assets
Total

Intangible
Fixed
Assets
Total(Notes on Entries)
1. Land and other assets used for power generation projects associated with renewable energy power generation facilities
shall also be indicated.
2. The “Liquid Assets,” “Tangible Fixed Assets,” and “Intangible Fixed Assets” fields shall be indicated according to theclassification of the items listed in the balance sheet.
3. The fields for “Balance at the Beginning of the Current Period,” “Increase During Current Period,” “Decrease During
Current Period,” and “Balance at the End of the Current Period,” shall be indicated based on the acquisition price of theapplicable assets.
4. Note the details of the increase and decrease during the current period.
5. If there is an increase or decrease in the amount exceeding 1% of the total amount of assets of the same type, the reason for– 25 –

the increase or decrease shall be indicated in the “Description” field.
6. If the acquisition cost is revised due to special reasons, such revaluation differences, etc. shall be displayed as an internal
note (in parentheses) in the “Increase During Current Period” or “Decrease During Current Period” fields, and the reason
for increase or decrease shall be indicated in the “Description” field.

(b) Details of Renewable Energy Power Generation Facilities, etc.

Districts and Zones

Structure

Date of Certification

Name of Certified Business Operator,
etc.

Name of the Other Party of the Specified
Contract, etc.

Procurement Price, etc.

Procurement Period, etc.

Date of Acquisition

-

-

-

-

-

-

-

-

-

Subtotal

-

-

-

-

-

-

-

-

-

-

-

-

Subtotal

-

-

-

-

-

-

-

-

-

-

-

-

Subtotal

-

-

-

-

-

-

-

-

-

-

-

-

Total

-

-

-

-

-

-

-

-

-

-

-

-

Status of Collateral

Location-Book Value at the End of Current Period

Name

-

Acquisition Cost

No.
-

Site Area

Classification of Equipment, etc.
Subtotal(Notes on Entries)
1. Land and other assets used for power generation projects associated with renewable energy power generation facilities
shall also be indicated.
2. In the “Name” field, indicate the name which adequately represents the renewable energy power generation facility, suchas the name of the facility described in the application for approval by the Minister of Economy, Trade and Industry
pursuant to Article 9, Paragraph 3 of the Act on Special Measures Concerning Procurement of Electricity from Renewable
Energy Sources by Electricity Utilities.
3. In the “Location” field, indicate the location (up to the lot number) of the renewable energy power generation facility andthe land and other assets to be used for the power generation project incidental thereto (hereinafter referred to as“renewable energy power generation facility, etc.” in (b) and (c)).
4. In the “Districts and Zones” field, the use district listed in Article 8, Paragraph 1, Item 1 of the City Planning Act (Act No.
100 of 1968) shall be indicated.
5. In the “Structure” field, indicate the structure, of the renewable energy power generation facility, etc. (in the case of land,
the land classification).
6. In the “Date of Certification” field, enter the date of approval by the Minister of Economy, Trade and Industry pursuant to
the provision of Article 9, Paragraph 3 of the Act on Special Measures Concerning Procurement of Electricity from
Renewable Energy Sources by Electricity Utilities when the renewable energy power generation facilities fall under the
category of certified power generation facilities (if any change has been approved pursuant to the provision of Article 10,– 26 –

Paragraph 1 of the same Act, the date of certification and the details of such change, and if any change has been notified
pursuant to the provision of Paragraph 2 or 3 of the said Article, the date of acceptance of such notification and the detailsof such change shall be included).
7. In the “Name of Certified Business Operator, etc.” field, when the renewable energy power generation facilities fall under
the category of certified power generation facilities, the name of the certified business operator shall be indicated, and inother cases, the name of the person who is considered the provider shall be indicated.
8. In the “Name of the Other Party of the Specified Contract, etc.” field, the name of the other party of the specific contract
shall be indicated when the renewable energy power generation facilities fall under the category of certified power
generation facilities, and in other cases, the name of the other party of the electricity supply contract shall be indicated.
9. In the “Procurement Price, etc.” field, indicate the procurement price when the renewable energy power generation
facilities fall under the category of certified power generation facilities, otherwise, the price per kilowatt hour of renewableenergy electricity to be supplied under the power supply contract shall be indicated.
10. In the “Procurement Period, etc.” field, indicate the procurement period when the renewable energy power generation
facilities fall under the category of certified power generation facilities, or the contract period of the power supply contract
in other cases.
11. In the “Date of Acquisition” field, indicate the date of acquisition of the renewable energy power generation facility, etc.
12. Subtotals in the “Site Area,” “Acquisition Cost” and “Book Value at the End of the Current Period” fields shall be thesubtotal for each category of facilities.
13. In the “Status of Collateral” field, if the renewable energy power generation facility, etc. in question is pledged ascollateral, an indication to that effect shall be given.
14. The “No.” field shall be consistent with the organization No. of such renewable energy power generation facilities in “(c)Details of Revenue Status of Renewable Energy Power Generation Facilities, etc.”(c) Details of Revenue Status of Renewable Energy Power Generation Facilities, etc.
Organization
No.

Name of Property

Location

Renewable Energy Power
Generation Facilities
Land
Building
Renewable Energy Power
Generation Facilities
Land
Building

Item___ Period
MM DD, YYYY
to MM DD,YYYY___ Period
MM DD, YYYY
to MM DD,
YYYY

Rental Business Revenue Rent
・・・・・
Rental Business Revenue
Subtotal A
Rental Business Expenses
Taxes and Levies(of which, Property Tax)
Miscellaneous Expenses(of which, ・・・・)(of which, ・・・・)
Depreciation(of which, ・・・・)(of which, ・・・・)
・・・・・
Rental Business Expenses
Subtotal B
Rental business profit and loss
from renewable energy power
generation facilities
A-B– 27 –___ Period
MM DD, YYYY to
MM DD, YYYY___ Period
MM DD, YYYY
to MM DD,YYYY___ Period
MM DD, YYYY
to MM DD,
YYYY

(Notes on Entries)
1. This table shall be prepared for each renewable energy power generation facility. When land or other assets used for power
generation business are leased as one unit, revenues and expenses related to such assets shall also be indicated. If therenewable energy generation facility and land or other assets are managed in an integrated manner, such properties are notprecluded from being prepared as a single property.
2. Shall prepare for the past five periods.
3. For miscellaneous expenses and costs, enter utility costs, subcontract management costs, and repair costs, etc.
4. In addition to machinery and equipment, depreciation expenses shall also indicate buildings, appliances, fixtures, etc.,
relevant to the renewable energy power generation facility.

(ii) Details of Rights to Operate Public Facilities, etc.
(a) Summary Table(Unit:_____)

Type of Assets

Balance attheBeginningof Current
PeriodIncrease
DuringCurrent
PeriodDecrease
DuringCurrent
PeriodBalanceat theEnd ofCurrent
PeriodAccumulated Depreciation or
Accumulated
Amortization

Amortization
for Current
PeriodBalanceat EndofCurrent
PeriodDescription

LiquidAssetsTotal

Tangible
Fixed
Assets

Total

Intangible
Fixed
Assets

Total(Notes on Entries)
1. The right to manage public facilities etc., public facilities etc., pertaining to the right to manage public facilities etc., andland and other assets acquired incidental to the business of managing public facilities etc., pertaining to the right to manage
public facilities etc. (hereinafter referred to as “Right to Operate Public Facilities, etc.” in (b) and (c)) shall be indicated.
2. The “Liquid Assets,” “Tangible Fixed Assets,” and “Intangible Fixed Assets” fields shall be indicated according to theclassification of the items listed in the balance sheet.
3. The fields for “Balance at the Beginning of the Current Period,” “Increase During Current Period,” “Decrease During
Current Period,” and “Balance at the End of the Current Period,” shall be indicated based on the acquisition price of theapplicable assets.
4. Note the details of the increase and decrease during current period.
5. If there is an increase or decrease in the amount exceeding 1% of the total amount of assets of the same type, the reason for
the increase or decrease shall be indicated in the “Description” field.
6. If the acquisition cost is revised due to special reasons, such revaluation differences, etc., shall be displayed as an internal
note (in parentheses) in the “Increase During Current Period” or “Decrease During Current Period” fields, and the reason
for increase or decrease shall be indicated in the “Description” field.

– 28 –

(b) Details of the Right to Operate Public Facilities, etc.
No.

Name

Matters Regarding the Right toOperate Public Facilities, etc.

Matters regarding public facilities, etc.

Status of CollateralBook Value at the End of Current
PeriodAcquisition Cost

Date of Acquisition

Duration

Total Area

Structure

Name of the other party to theentrustment contract for theoperation of public facilities, etc.

Name of Manager, etc.

Districts and Zones

Location(Notes on Entries)
1. If land or other assets are acquired incidental to the management of public facilities pertaining to the Right to Operate
Public Facilities, etc., the relevant assets shall also be indicated in the fields for “No.,” “Name,” “Location,” “Districts andZones,” “Structure,” “Total Area,” “Date of Acquisition,” “Acquisition Cost,” “Book Value at the End of Current Period,”and “Status of Collateral.”
2. In the “Location” field, indicate the location (up to the lot number) of such public facilities, etc.
3. In the “Districts and Zones” field, the use district listed in Article 8, Paragraph 1, Item 1 of the City Planning Act shall be
indicated.
4. In the column of “Name of Manager, etc.,” indicate the name of the manager, etc., of such public facilities, etc.
5. In the “Structure” field, indicate the structure (land category in the case of land) of such public facilities, etc.
6. In the “Duration” field, the duration (beginning and ending) of the said Right to Operate Public Facilities, etc. shall be
indicated.
7. In the “Date of Acquisition” field, indicate the date of acquisition of the Right to Operate Public Facilities, etc.
8. In the “Status of Collateral” field, if the Right to Operate Public Facilities, etc. is pledged as collateral, an indication to that
effect shall be given.
9. The “No.” field shall be consistent with the organization No. in “(c) Details of Revenue Status of Right to Operate Public
Facilities, etc.”(c) Details of Revenue Status of Right to Operate Public Facilities, etc.
Organization
No.

Name of Property

Right to Operate Public
Facilities, etc.
Land
Building
Right to Operate Public
Facilities, etc.
Land
Building– 29 –

Location___ Period
MM DD, YYYY
to MM DD,
YYYY

Item

___ Period
MM DD, YYYY
to MM DD,YYYY___ Period
MM DD, YYYY
to MM DD,YYYY___ Period
MM DD, YYYY
to MM DD,YYYY___ Period
MM DD, YYYY
to MM DD,
YYYY

Revenue from public
facilities operating business・・・・・
Revenue from public
facilities operating business
Subtotal A
Operating Business
Expenses
Taxes and Levies(of which, Property tax)
Miscellaneous Expenses(of which, ・・・・)(of which, ・・・・)
Depreciation or
Amortization(of which, ・・・・)(of which, ・・・・)
・・・・・
Expenses for public
facilities operating business
Subtotal B
Profit and loss from public
facilities operating business
A-B(Notes on Entries)
1. This table shall be prepared for each Right to Operate Public Facilities, etc. If land or other assets are acquired incidental tothe operation of public facilities, etc., pertaining to the Right to Operate Public Facilities, etc., such assets shall also be
indicated.
2. Shall prepare for the past five periods.
3. For miscellaneous expenses and costs, enter utility costs, subcontract management costs, and repair costs, etc.
4. Depreciation or amortization shall include not only the Right to Operate Public Facilities, etc., but also assets acquired
incidental to the operating project.
5. If the operating business expenses include the expenses prescribed in Article 20 of the Act on Promotion of Private FinanceInitiative, the amount and the breakdown of the amount shall be stated in the margin.

(iii) Details of incorporated real estate assets
Name ofCalculated
Real
Form of Value at the
Estate, Location
Ownership End ofetc.
Period○○ Ward,
Tokyo

Total

–

Thousandsyen
Thousandsyen–

Thousandsyen
Thousandsyen
ThousandsyenPrevious Period (MM/DD/YYYY Current Period (MM/DD/YYYY MM/DD/YYYY)
MM/DD/YYYY)
Total
RentalProportion
RentalProportion
Number Occupancy
Total Occupancy
Businessto TotalBusinessto Totalof
Rate
Number of
Rate
Revenue
RentalRevenue
Rentalat Endat End ofat End of at End of
During the Business
During the Businessof thethe Period
the Period the Period
PeriodRevenue
PeriodRevenue
PeriodThousands
Thousands
%
%
%
%
yen
yen
Thousands
Thousands
%
%
%
%
yen
yen
%
%
%

Thousandsyen
Thousandsyen
Thousands
yen

%

%

%

%

%

%

Thousandsyen
Thousandsyen
Thousands
yen

%
%
%

(Notes on Entries)
1. The field “Calculated Value at the End of Period,” shall indicate the appraised value at the end of period, which is
calculated by the valuation method stipulated in Article 5 and Article 6 of the Rules on Real Estate Investment Trusts andReal Estate Investment Corporations. For overseas real estate, etc., the appraised value at the end of period shall be
indicated in Japanese yen converted at the exchange rate at the end of the period.
For overseas real estate, etc., the amount in the currency of acquisition of the relevant assets shall be indicated inparentheses in accordance with the unit of the amount indicated in Japanese currency conversion. However, the Total field– 30 –

need not be shown in the currency of such acquisition.
2. If the asset is overseas real estate, etc., the amount of “Rental Business Revenue” shall be the amount of rental businessrevenue valuated and converted at the exchange rate at the end of the period.
With regard to overseas real estate, etc., the amount in the currency in which such rental business revenue is received shallbe indicated in parentheses in accordance with the unit of the amount indicated in Japanese currency. However, the Total
field need not be shown in such receiving currency.
3. Figures for “Calculated Value at the End of Period” and “Rental Business Revenue” shall be presented in units of 1,000
yen or 1,000,000 yen. However, other units may be used when deemed appropriate for the protection of investors.
4. The “Occupancy Rate” (the ratio of leased area to the leasable area at the end of the relevant accounting period) and the“Proportion to Total Rental Business Revenue” shall be rounded off to the second decimal place and indicated to the firstdecimal place.
5. The land and other assets shown in “(i) Details of Renewable Energy Power Generation Facilities, etc.” and “(ii) Details ofRight to Operate Public Facilities, etc.” shall not be indicated.

(iv) Details of Assets Incorporated in Securities
Name of Stocks

Book Value

Type ofAssetsUnit Price

–

–

Total

AmountValuation
Profit or
Loss

Thousandsyen
Thousandsyen
Thousandsyen

Thousandsyen
Thousandsyen
Thousands
yen

Appraised Value

Quantity
AmountUnit Price

Thousandsyen
Thousandsyen
Thousands
yen

–

–

Remarks–(Notes on Entries)
1. The “Book Value,” “Appraised Value,” and “Valuation Profit or Loss” fields shall be indicated in units of 1,000 yen or
1,000,000 yen. However, other units may be used when deemed appropriate for the protection of investors.

(15) Status of Other Assets(i) Stocks and investment securities
Issue

Number of
SharesAcquisition Cost
Unit PriceAppraised Value

AmountUnit Price

AmountValuation
Profit or
Loss

Remarks

Total(ii) Securities other than stocks
Type

Issue

Total
Face
Value

(Unit:
Book
Value

AccruedInterest
IncomeTotal– 31 –

Advance
Payments
Accruedinterest

Appraised
Value

Valuation
Profit or
Loss)
Remarks

(iii) Detailed Statement of Margin Transaction Balance(Unit:)

Margin Transaction
Issue

Number of
Shares Sold

Book Value

Appraised Value

Remarks

Valuation Profit
or Loss(iv) Table of Contract Amount and Market Value of Specified Transactions and Exchange Contract
Transactions, etc.

(Unit:

Category

Type

Contract Amount, etc.
Of which, morethan one year

Market Transactions
Transactions other than Market Transactions

Futures Transactions
Sell contracts
Buy contracts
Option Transactions
Sell contracts
Call
Put
Buy contracts
Call
Put
Forward Transactions
Sell contracts
Buy contracts
Exchange Contract Transactions
Sell contracts
Buy contracts
Option Transactions
Sell contracts
Call
Put
Buy contracts
Call
Put
Swap transaction
Variable Receipts and
Fixed Payments
Fixed Receipts andVariable Payments
OthersTotal– 32 –)

Current Value

(v) Details of Other Specified Assets
Type ofSpecified
AssetsQuantityBook Value
Unit PriceAppraised Value

AmountUnit Price

Amount(Unit:)

Valuation
Profit or
Loss

Remarks

Total(16) Status of Asset Holdings by Country and Region
Country

Total Holdings

Calculated Valueat the End of
PeriodProportion to
Total Assets

Number ofproperties

Japan

Thousands yen

Thousands yen%

Properties

U.S.A.

Thousands yen

Thousands yen%

Properties･･･

Thousands yen

Thousands yen%

Properties

Total

Thousands yen

Thousands yen

100%

Properties(Notes on Entries)
1. “Total Holdings” shall indicate the book value at the end of the period, and “Calculated Value at the End of Period” shallindicate the valuation at the end of the period in accordance with the valuation methods set forth in Article 5, Article 6, andArticle 7 of the Regulations on Infrastructure Investment Trusts. Amounts shall be indicated in units of 1,000 yen or
1,000,000 yen. However, other units may also be indicated together when deemed appropriate for the protection of
investors.
2. The “Total Holdings” of infrastructure-related assets and overseas real estate shall be converted into Japanese yen using theexchange rate at the time of acquisition, and the “Calculated Value at the End of Period” shall be converted into Japanese
yen using the exchange rate at the end of period.
3. The “Proportion to Total Assets” shall indicate the ratio of the calculated value at the end of the period of each relevant
country or region to the total calculated value at the end of the period, and shall be rounded off to the second decimal placeand indicated to the first decimal place.

(17) Schedule of Capital Expenditures
Name of
Infrastructure
Assets, etc.
○○○○
○○○○

Estimated Amount for Work
Location

PurposeEstimated Duration

Chuo Ward,Tokyo
Chuo Ward,Tokyo○○ Renovation
Work○○ RenovationWork

From : MM/DD/YYYY
To: MM/DD/YYYY
From : MM/DD/YYYY
To: MM/DD/YYYY

Construction Cost
or Payment
Total Amount Paid
AmountTotal
Thousands yen

Thousands yen

Thousands yen

Thousands yen

Thousands yen

Thousands yen

Estimated Amount for Work
Name of Real
Estate, etc.
○○ Building○○ Building

Location

PurposeEstimated Duration

Chuo Ward,Tokyo
Chuo Ward,Tokyo○○ Renovation
Work○○ RenovationWork

From : MM/DD/YYYY
To: MM/DD/YYYY
From : MM/DD/YYYY
To: MM/DD/YYYY– 33 –

Total

Construction Cost
or Payment
Total Amount Paid
AmountThousands yen

Thousands yen

Thousands yen

Thousands yen

Thousands yen

Thousands yen

(Notes on Entries)
1. The “Construction Cost or Payment Amount” shall be indicated on a work basis or on a payment basis in units of 1,000
yen or 1,000,000 yen. However, other units may be used when deemed appropriate for the protection of investors.
2. For “Construction Cost or Payment Amount,” specify in the margin that the amount is indicated on a “work basis” or“payment basis.”(18) Capital Expenditures during the Period
Name of
Infrastructure
Assets, etc.

Location

Purpose○○○○○○ Ward, Tokyo○○ Renovation
Work

○○○○

○○ Ward, Tokyo○○ RenovationWork

Name of Real
Estate, etc.

Location

Purpose○○ Building○○ Ward, Tokyo○○ Renovation
Work○○ Building○○ Ward, Tokyo○○ Renovation
Work

Construction Cost or
Payment Amount

PeriodFrom: MM/DD/YYYY
To: MM/DD/YYYY

Thousands yen

From: MM/DD/YYYY
To: MM/DD/YYYY

Thousands yen

PeriodFrom: MM/DD/YYYY
To: MM/DD/YYYY
From: MM/DD/YYYY
To: MM/DD/YYYY

Construction Cost or
Payment AmountThousands yen

Thousands yen(Notes on Entries)
1. The “Construction Cost or Payment Amount” shall be indicated on a work basis or payment basis in units of 1,000 yen or
1,000,000 yen. However, other units may be used when deemed appropriate for the protection of investors.
2. For “Construction Cost or Payment Amount,” it should be clearly indicated in the margin that it is indicated on a “Work
Basis” or “Payment Basis.”(19) Money Accumulated for Long-Term Repair Plans___ PeriodBusiness Period___ Period___ Period___ Period___ Period

From: MM/DD/YYYY From: MM/DD/YYYY From: MM/DD/YYYY From: MM/DD/YYYY From: MM/DD/YYYY
To: MM/DD/YYYY To: MM/DD/YYYY To: MM/DD/YYYY To: MM/DD/YYYY To: MM/DD/YYYY

Balance of Funds
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Reserved at the
Beginning of the
PeriodAmount Reserved forThousands yen
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Current period
Amount of Reversal ofThousands yen
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Reserve for Current
PeriodAmount Carried
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Thousands yen
Forward(Notes on Entries)
1. The “Reserve Fund” referred to in this table refers to the money that must be actually set aside systematically and regularly
each period from surplus cash flow such as depreciation expenses, etc. (including that associated with profits internallyretained) in accordance with the long-term repair plan indicated in the asset management plan stipulated in Article 8,
Paragraph2 of the Rules on Real Estate Investment Trusts and Real Estate Investment Corporations.
2. Amounts shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used when deemed
appropriate for the protection of investors.

– 34 –

(20) Details of Expenses for Management, etc.
Item

Current Period(a) Asset Management Fees

Thousands yen(b) Asset Custody Fees

Thousands yen(c) General Administration Fees

Thousands yen(d) Officer’s Remuneration

Thousands yen(e) Other Expenses

Thousands yen

Total

Thousands yen(Notes on Entries)
1. Amounts shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used when deemed
appropriate for the protection of investors.
2. In “(e) Other Expenses,” shall indicate expenses other than (a) through (d) that are related to the management of theinvestment corporation, if any.

(21) Status of Borrowing
Category
LenderShort-Term Loans

Total

Long-Term Loans

Total

Date of
Borrowing

Balance attheBeginningof Current
PeriodBalanceat theEnd ofCurrent
PeriodThousandsyen
Thousandsyen
Thousandsyen
Thousandsyen
Thousandsyen
Thousandsyen
Thousandsyen
Thousandsyen

Thousandsyen
Thousandsyen
Thousandsyen
Thousandsyen
Thousandsyen
Thousandsyen
Thousandsyen
Thousands
yen

Average
Interest
Rate

Repayment
Due Date

Method of
Repayment

Use

Description(Notes on Entries)
1. In principle, loans shall be classified into short-term and long-term and indicated by lender.
2. “Average Interest Rate” shall indicate the weighted average interest rate.
3. “Method of Repayment” shall indicate the method of repayment such as equal repayment of principal, equal repayment ofinterest, or lump-sum repayment on due date, etc.
4. “Description” shall indicate whether collateral is pledged or not, the name of the collateral, and any other special notes.
5. “Balance at the Beginning of the Current Period” and “Balance at the End of the Current Period” shall be indicated in unitsof 1,000 yen or 1,000,000 yen. However, other units may be used when deemed appropriate for the protection of investors.

(22) Investment Corporation Bonds
Issue

Date of Issue

Balance at the Balance at the
Beginning of End of Current
Current Period
PeriodRate– 35 –

Redemption
PeriodMethod ofRedemption

Use

Description

(Notes on Entries)
1. “Balance at the Beginning of the Current Period” and “Balance at the End of the Current Period” shall be indicated in unitsof 1,000 yen or 1,000,000 yen. However, other units may be used when deemed appropriate for the protection of investors.

(23) Short-Term Investment Corporation Bonds
Issue

Balance at the End of
Current Period

Date of Issue

Issue Value

Redemption Price

Description(Notes on Entries)
1. The “Balance at the End of the Current Period” shall be indicated in units of 1,000 yen or 1,000,000 yen. However, otherunits may be used when deemed appropriate for the protection of investors.

(23)-2 Investment Equity Subscription Rights

Name of
StocksDate of Issue

Number of Investment
Number of Units of Units to Be Issued Upon
The Amount of Money
Investment Equity
Exercise of the Said
to be Contributed Upon Exercise Period for
Subscription Rights
Investment Equity
Exercise or the Method Investment Equity
Not Exercised at the Subscription Rights or
for Calculating Such Subscription Rights
End of the Current
the Method ofAmountPeriodCalculating the Numberof Units

Description(Notes on Entries)
1. “The Amount of Money to be Contributed Upon Exercise” shall be indicated in units of 1,000 yen or 1,000,000 yen.
However, other units may be used when deemed appropriate for the protection of investors.

(24) Trading of Infrastructure Assets, Infrastructure-Related Assets, Real Estate, and Asset-Backed Securities
Name of
Infrastructure
Assets, etc.

Acquisition
Date of
Acquisition○ ○ ○ ○ (Infrastructure
Assets)Total

Transfer

Thousands yen

Thousands yen

Profit or Loss on
Sale
Thousandsyen
Thousands yen

Thousands yen

Thousands yen

Thousands yen

Thousands yen

Thousands yen

Thousands yen

Thousands yen

Thousands yen

Acquisition Cost

Date ofTransfer

Acquisition

Name of Real
Estate, etc.

Date of○○ Building (Real

Acquisition

Amount of Transfer

Book Value

Transfer

Acquisition Cost

Date ofAmount of Transfer

Thousands yen

Transfer

Thousands yen

Thousands yen

Sale
Thousands
yenBook Value

Profit or Loss on

Estate)Thousands yen

Thousands yen

Thousands yen

Thousands yen

Total

Thousands yen

Thousands yen

Thousands yen

Thousands yen(Notes on Entries)
1. “Acquisition Cost” shall indicate the amount excluding various expenses required for the acquisition of infrastructure
assets and real estate (such as trading fees incurred in the acquisition of the infrastructure assets and real estate trading
brokerage fees), and that shall be explained in a marginal note.
2. “Acquisition Cost,” “Transfer Value,” “Book Value” and “Profit or Loss on Sale” shall be indicated in units of 1,000 yen
or 1,000,000 yen. However, other units may be used when deemed appropriate for the protection of investors.

– 36 –

(25) Sales and Purchase of Other Assets, etc.
Purchased

Balance at the End of Current

Sold

Type of Assets

Number of Period Amount

Number ofAmountNumber ofAmountSharesCertificates,

Thousands yen

Certificates,

Thousands yen

Certificates,

Thousands yen

Investment

etc.

Thousands yen

etc.

Thousands yen

etc.

Thousands yen

Securities
Bonds

Thousands yen

Thousands yen

Thousands yen････

Thousands yen

Thousands yen

Thousands yen

Total

Thousands yen

Thousands yen

Thousands yen(Notes on Entries)
1. The “Amount” shall indicate the delivery price (amount not including accrued interest and various expenses (trading
commissions for sale and purchase, etc.)) and shall make a note to that effect in the margin.
2. “Amount” shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used when deemed
appropriate for the protection of investors.

(27) Status of Transactions with Interested Parties, etc.
(i) Status of Transactions
Transaction Amount, etc.

Category

Amount of Purchase, etc.

Amount of Sale, etc.
Thousands yen

Total

Thousands yen

Breakdown of Status of Transaction with Interested Parties, etc.
AAA Co., Ltd.

___,000 yen (%)___,000 yen (%)

BBB Co., Ltd.

___,000 yen (%)___,000 yen (

%)

Total

___,000 yen (%)___,000 yen (%)(ii) Amount of Payment Fees, etc.

Category(Building)Management Service
Fees
Commissions Incurredin Acquiring
Infrastructure Assets,
etc.
Real EstateTransaction Fees
Commission for Saleof Trust Beneficiary
Right
……

Total Amountof Payment
Fees, etc. (A)Thousands yen

Breakdown of Transactions with
Interested Parties, etc.
Payment Amount
Payee
(B)
AAA Co., Ltd.
Thousands yen

Percentage to Total
Amount(B/A) %%BBB Co., Ltd.

Thousands yen%

Thousands yen

CCC Co., Ltd.

Thousands yen%

Thousands yen

DDD Co., Ltd.

Thousands yen%

Thousands yen

EEE Co., Ltd.

Thousands yen%

Thousands yen……

Thousands yen%(Notes on Entries)
1. Figures in parenthesis ( ) shall indicate the ratio to the total amount of each item rounded off to the second decimal place.
2. “Amount of Purchase, etc.,” “Amount of Sale, etc.” and “Amount of Payment Fees, etc.” shall be indicated in units of
1,000 yen or 1,000,000 yen. However, other units may be used when deemed appropriate for the protection of investors.
3. When a transaction with an interested party, etc. is conducted in a foreign currency, the amount shall be converted into
Japanese yen at the exchange rate at the time of transaction and indicated in units of 1,000 yen or 1,000,000 yen. However,other units may be used when deemed appropriate for the protection of investors. The amount in the currency in whichsuch transaction is made shall be indicated in parentheses in the unit corresponding to the unit of the amount converted into

– 37 –

Japanese yen. However, the total field need not be shown in the currency in which such transaction is made.
4. If monetary payments are made to interested parties other than payment fees, etc., as described above, important mattersamong them shall be noted in the margin.

(28) Status of Transactions, etc., with Asset Management Company Pertaining to the Subsidiary BusinessConducted by the Said Asset Management Company, etc.

Name of fees__th Period
From: MM/DD/YYYY
To: MM/DD/YYYY

Securities Transaction Fees

Thousands yen････

Thousands yen

Total

Thousands yen(Notes on Entries)
1. A note in the margin shall be made concerning subsidiary business to the effect that “Subsidiary Business for this period is○○, ×× and ････. ”
2. Amounts shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used when deemed
appropriate for the protection of investors.

– 38 –

(29) Status of Assets, Liabilities, Principal, and Profit and Loss
(1) Balance Sheet(Unit: Yen)
Previous Period(MM/DD/YYYY)

Assets:Liquid Assets
Cash and Deposits
Cash and Deposits in Trust
Notes Receivable
Business Accounts Receivable
Securities
Advance Payments
Parent Corporation Investment Units
Prepaid Expenses
Accrued Revenue
Deferred Tax Assets
OthersBad Debt Allowance
Total Liquid Assets
Fixed Assets
Tangible Fixed Assets
Building
Accumulated Depreciation
Buildings (Net)
Structures
Accumulated Depreciation
Structures (Net)
Machinery and Equipment
Accumulated Depreciation
Machinery and equipment (net)Land
Construction in Progress
Buildings in Trust
Accumulated Depreciation
Buildings in Trust (Net)Land in Trust
Construction in Progress in Trust
Total Tangible Fixed Assets
Intangible Fixed Assets
Leasehold
OthersTotal Intangible Fixed Assets
Investments and Other Assets
Investment Securities
Capital Contributions
Deferred Tax Assets
Leasehold and Guarantee Deposits
in Trust
OthersTotal Investments and Other Assets
Total Fixed Assets
Deferred Assets
Investment Unit Issuance Expenses
Total Deferred Assets
Total Assets– 39 –

Current Period(MM/DD/YYYY)

Liabilities:
Liquid Liabilities
Operating Accounts Payable
Advances Received
Deposits
Accrued Expenses
Deferred Revenue
Deferred Tax Liabilities
OthersTotal Liquid Liabilities
Fixed Liabilities
Investment Corporation Bonds
Long-Term Loans
Deferred Tax Liabilities
OthersTotal Fixed Liabilities
Total Liabilities
Net Assets Section
Investor Capital
Total Amount of Contributions
New Investment Unit Application
MarginSurplusCapital Surplus
Voluntary Retained Earnings
Unappropriated retained earnings
or undisposed loss at the end of theperiod (-)
Total Surplus
Own Investment Equity
Total Investor Capital
Valuation and Translation Differences,etc.
Valuation Difference on Other
Securities
Deferred Hedge Profit and Loss
Total Valuation and Translation
Differences, etc.
Investment Equity Subscription Rights
Total Net Assets
Total Liabilities and Net Assets(Notes on Entries)
1. When the “Total Amount of Contributions” and “Deduction of Total Capital Contributions” are presented separately, if the“Deduction of Total Capital Contributions” includes allowance for temporary difference adjustments, it should be notedthat the said allowance for temporary difference adjustments shall be shown separately from other deductions of total
capital contributions.
2. If the “Voluntary Retained Earnings” in the “Surplus” of the “Investor Capital” in the “Net Assets Section” includes the
special reserve for reduction in replacement or the reserve for temporary difference adjustments, it should be noted thatsuch special reserve for reduction in replacement or the reserve for temporary difference adjustments shall be indicatedseparately from other voluntary retained earnings.
When “Capital Surplus” and “Deduction of Capital Surplus” are presented separately, if allowance for temporary difference
adjustments is included in the “Deduction of Capital Surplus”, it should be noted that the said allowance for temporary
difference adjustments shall be shown separately from other deductions of capital surplus.
4. Items related to investment equity subscription right may be classified as deduction items for items related to own
investment equity subscription rights.
5. The amount for own investment equity subscription rights shall be directly deducted from the amount of investment equity
subscription rights and the amount remaining after deduction shall be indicated as the amount of investment equity
subscription rights. However, this does not preclude the presentation of own investment equity subscription rights from as
a deduction.

– 40 –

(2) Profit and Loss Statement(Unit: Yen)
Previous Period
Current Period(From MM/DD/YYYY(From MM/DD/YYYY
To MM/DD/YYYY)To MM/DD/YYYY)

Operating Revenue
Rental Revenue from Real Estate
Rental Business Revenue
Other Rental Business Revenue
Profit on Sale of Real Estate, etc.
Rental Income from Renewable Energy
Power Generation Facilities
Profit on Sale of Renewable Energy
Power Generation Facilities
Profit on Sale of Right to Operate
Public Facilities, etc.
Profit on Sale of Public Facilities, etc.
Management Business Revenue from
Public Facilities, etc.
Interest Income
Dividend income
Total Operating Revenue
Operating Expenses
Rental Business Expenses
Loss on Sale of Renewable Energy
Power Generation Facilities
Loss on sale of Right to Operate Public
Facilities, etc.
Loss on Sale of Public Facilities, etc.
Management Business Expenses for
Public Facilities, etc.
Asset Management Fees
Asset Custody Fees
General Clerical Fees
Officer’s Remuneration
Impairment Loss
Other Operating Expenses
Total Operating Expenses
Operating Income
Non-operating Income
Total Non-operating Income
Non-operating Expenses
Interest Expense
Investment Corporation Bond Interest
Amortization of Investment
Corporation Bond Issuance Expenses
Total Non-operating Expenses
Ordinary Income
Extraordinary Income
Gain on Negative Goodwill
Total Extraordinary Income
Extraordinary Losses– 41 –

Impairment Loss
Loss Due to Disaster
Total Extraordinary Losses
Total Net Income for Current Period
before Taxes
Corporate Tax, Inhabitant Tax andBusiness Tax
Corporate Tax Adjustments
Total Corporate Tax, etc.
Net Income for Current Period
Profit Carried Forward from the Previous
PeriodProfit Carried Forward from thePrevious Term Before Retroactive
Application or Loss Carried Forwardfrom the Previous Term Before
Retroactive Application
Impact of the Retrospective
Applicability
Total Profit or Loss Carried Forwardfrom the Previous Period
Unappropriated Profit or Unappropriated
Loss at the End of the Current Period (-)(Notes on Entries)
1. Note that if profits reserved for a specific purpose in “unappropriated retained earnings or undisposed
loss at the end of the period (-)” include the reversal amount according to that purpose of special reserve
for reduction in replacement or the reversal amount for reserve for temporary differences adjustments,
the reversal amount of special reserve for reduction in replacement or the reversal amount for reserve fortemporary difference adjustments must be indicated separately from any other reversal.

– 42 –

(3) Statement for Cash Distributions
Statement for Cash Distributions
Previous Period
Following Period(From MM/DD/YYYY
MM/DD/YYY
To From MM/DD/YYYY
MM/DD/YYY)

I. Unappropriated Profit for Current Period
II. Additional Distributions of Excess of Profit
Deduction of Total Capital Contributions
Deduction of Capital Surplus
III. Distribution Amount(Amount of Distribution per Investment Unit)(of which, distributions in excess of earnings)
IV. Voluntary Retained Earnings
×× Provision of Reserve
×× Provision of Reserve
V. Profit Carried Forward to Next Period

Method of Calculating the Amount of Distribution
Amount of Distribution per Investment Unit
(Notes on Entries)
1. In the event that the “Voluntary Retained Earnings” is to be reversed and appropriated to cash distributions for the current
fiscal period, and the reversal amount includes the reversal amount set forth in Article 18-2, Paragraph 1, Item 3 of theRegulations Concerning Calculation of Investment Corporation or the reversal amount of the reserve for temporary
difference adjustments, it should be noted that such reversal amount must be indicated separately from the reversal amountof other reserves.
2. When the item of “IV Voluntary Retained Earnings” includes the special reserve for reduction in replacement or the
reserve for temporary difference adjustment, it should be noted that such special reserve for reduction in replacement or the
reserve for temporary difference adjustment must be shown separately from other voluntary retained earnings.
3. As to indication of “Deduction of Total Capital Contributions” and “Deduction of Capital Surplus” when allowance fortemporary difference adjustments is included in the amount of distribution in excess of profits, it should be noted that theamount of deduction for such allowance for temporary difference adjustments must be indicated separately from any otherdeductions.
4. In the case where profits are incorporated into total capital contribution and the deduction for total capital contribution issubtracted, if the amount of the said subtraction includes the reversal of the allowance for temporary difference adjustments,
the portion of the amount of the said subtraction consisting of the reversal of the allowance for temporary difference
adjustments shall be indicated separately from other subtractions, and if the allowance for temporary difference
adjustments pertaining to capital surplus is transferred to the deduction of capital surplus, that fact and the amount thereof
shall be indicated.

– 43 –

(4) Statement of changes in investor capitalPrevious period (from MM/DD/YYYY to MM/DD/YYYY)– 44 –

Total Net Assets

Fluctuation in
Items Other
Than Investor
Capital during
Current
Period(Net)
Total
Fluctuations
duringCurrent
PeriodBalance at theEnd ofCurrent
PeriodTotal Valuation and Translation
Differences, etc.

・・・

Deferred Hedge Profit and Loss

Balance at the
Beginning of
the Current
Period after
Retrospective
Adjustment
Fluctuation
for Current
PeriodValuation Difference on Other
Securities

Cumulative
Effect ofRetrospective
Application

Total Investor Capital

Balance at the
Beginning ofCurrent
PeriodOwn Investment Equity

Total Surplus

Unappropriated Profit or
Unappropriated Loss at theEnd of the Current Period (-)

Voluntary Retained Earnings

Capital Surplus

New Investment Unit Application
MarginTotal Amount of Contributions

SurplusInvestment Equity Subscription Rights

Valuation and Translation
Differences, etc.

Investor Capital

Current period (from MM/DD/YYYY to MM/DD/YYYY)

Total Net Assets

Total Valuation and Translation
Differences, etc.

Deferred Hedge Profit and Loss

Valuation Difference on Other
Securities

Total Investor Capital

Own Investment Equity

Total Surplus

Unappropriated Profit or
Unappropriated Loss at
the End of the Current
Period (-)

Voluntary Retained
Earnings

Capital Surplus

New Investment Unit
Application Margin

Total Amount of Contributions

SurplusInvestment Equity Subscription Rights

Valuation andTranslation
Differences, etc.

Investor Capital

Balance at the
Beginning ofCurrent
PeriodCumulative
Effect ofRetrospective
Application
Balance at the
Beginning of
the Current
Period after
Retrospective
Adjustment
Fluctuation
for Current
Period・・・
Fluctuation in
Items Other
Than Investor
CapitalduringCurrent
Period(Net)
Total
Fluctuations
duringCurrent
PeriodBalance at theEnd ofCurrent
Period(Notes on Entries)
1. When the “Voluntary Retained Earnings” in “Surplus” of the “Investor Capital” includes the special reserve for reduction
in replacement or the reserve for temporary difference adjustments, it should be noted that such special reserve for
reduction in replacement or the reserve for temporary difference adjustments shall be shown separately from othervoluntary retained earnings.
2. It shall be possible to prepare a form in which each item of net assets is arranged vertically.
3. Items related to investment equity subscription rights may be classified as deduction items for own investment equity
subscription rights.
4. The amount for own investment equity subscription rights shall be directly deducted from the amount of investment equity
subscription rights and the amount remaining after deduction shall be indicated as the amount of investment equity
subscription rights. However, this does not preclude the presentation of own investment equity subscription rights from as adeduction.

– 45 –

(30) Change in Method of Calculating Depreciation
AmountCalculation
Amount Calculated
Date of Change in
Calculated Using Newly Adopted
Method Adopted
by the Method of
Calculation
the Pre-change Calculation Method
Before theCalculation After
MethodCalculation
After Change
ChangeChangeMethodReason for
ChangeOthers○○○○○○○○○○○○○○ Building
Equipment
×× Building
Equipment(Notes on Entries)
1. “Amount Calculated” shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units
may be used when deemed appropriate for the protection of investors.
(31) Change in Valuation Method for Infrastructure Assets and Real Estate
Date of Change
Valuationof Valuation
Method Adopted
MethodBefore Change

Appraised Value
Using thePre-change
Valuation
MethodNewly Adopted
Valuation Method
After Change

Appraised Value
After Change

Reason for
ChangeOthers○○○○○○○○○○○○○○ Building
×× Building(Notes on Entries)
1. “Appraised Value” shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be used when
deemed appropriate for the protection of investors.

(32) Status, etc., of In-House Establishment of Investment Trust Beneficiary Certificates, etc.
(i) Status of Acquisition, etc.
Date:
MM/DD/YYYY

Number of Units
Acquired

Number of Units
Disposed

Number of Units
Held

Cumulative Total(Notes on Entries)
1. In the “Number of Units Held” field, enter the number of units the investment trust management company continues tohold after the relevant acquisition, etc.
2. In the “Cumulative Total” field, enter the number of units acquired and disposed of over the past five years, including theend of the current period, the cumulative total of each, and the number of units held at the end of the current period.

– 46 –

(ii) Status of Holdings, etc.
Number of Units Heldat End of Period

Total Holdings at
End of Period

Ratio tototal units issued__th Period
From: MM/DD/YYYY
To: MM/DD/YYYY__th Period
From: MM/DD/YYYY
To: MM/DD/YYYY__th Period
From: MM/DD/YYYY
To: MM/DD/YYYY__th Period
From: MM/DD/YYYY
To: MM/DD/YYYY__th Period
From: MM/DD/YYYY
To: MM/DD/YYYY(Notes on Entries)
1. “Total Holdings at End of Period” shall be indicated in units of 1,000 yen or 1,000,000 yen. However, other units may be
used when deemed appropriate for the protection of investors.
2. In the column of “Ratio to Total Number of Units Issued,” the ratio of the number of units held at the end of the period tothe total number of units issued shall be rounded off to the second decimal place and indicated to the first decimal place.

– 47 –

Rules for Preparation of Delivery Prospectus
Established on March 18, 2010
Revised on November 17, 2011
Revised December 20, 2012
Revised on February 21, 2013
Revised June 12, 2014
Revised July 17, 2014
Revised June 10, 2020
Revised on December 16, 2021

Article 1.

PurposeThe purpose of these Rules is to establish the items and the content to be described in the prospectus forinvestment trusts (the prospectus as provided in Article 15, Paragraph 2 of the Financial Instruments andExchange Act (Act No. 25 of 1948; hereinafter referred to as the “FIEA”), hereinafter referred to as the“Delivery Prospectus”), strive for optimization of disclosure information, and by means of that aid in investor
understanding and contribute to investor protection.

Article 2.

Matters Described on the Cover Pages, etc., of the Delivery Prospectus

The following matters shall be described on the cover pages, etc., (from the cover page to before mattersdescribed in Article 3) of the Delivery Prospectus.
However, (1) through (7) (excluding (iii), (iv), (v) and (vii) of (4)) shall be described on the cover page.
(1) The fact that it is the Delivery Prospectus
This shall be described as the “Investment Trust Explanatory Manual (Delivery Prospectus).”
The prospectus provided in Article 15, Paragraph 3 of the FIEA (hereinafter referred to as the“Requested Prospectus”) shall be clearly distinguished from the Delivery Prospectus and described as the“Investment Trust Explanatory Manual (Requested Prospectus).”(2) The fact that it is a prospectus under the FIEA
The fact that it is a prospectus based on the provisions of Article 13 of the Financial Instruments andExchange Act shall be described.
(3) Fund name and instrument classification
The fund name mentioned in the Securities Registration Statement (hereinafter referred to as the“Registration Statement”) and the instrument classification applicable to the fund (meaning the productclassification in the “Guidelines on Instrument Classification”; the same shall apply hereinafter) shall berecorded.
(4) Information on management companies, etc.
The following matters shall be described as the latest information on management companies, etc. In thiscase, note that the management companies information must be described after the entry for “fund name.”(i) Management company name(ii) Financial instruments business operator registration number(iii) Date of establishment–1–

(iv) Capital(v) The total net assets of the investment trust property managed by the management company(vi) The fact that they are the party giving instructions for management of the fund(vii) In addition to the above, if there is any matter which is judged to be advisable to be described as
management company information, said matter shall also be described. In this case, note that thematter shall be within the scope stated in the Registration Statement.
(5) Information on the trustee company
The trustee company’s name and the fact that they are the party in charge of custody and management offund assets shall be recorded.
(6) How to obtain detailed information
The following matters shall be recorded as methods of obtaining detailed information:(i) Home page address, telephone number, and reception hours of the management company(ii) How to obtain the Requested Prospectus and that the investment trust contract (hereinafter referred
to as the “Contract”) shall be described in the Requested Prospectus.
(7) Date of commencement of use
The date of commencement of use of the Delivery Prospectus shall be recorded.
(8) Matters regarding the effect of registration
For matters regarding the effect of notification under Article 4, Paragraph 1 or Paragraph 2 of the FIEA,
any of the following details shall be recorded:(i) Date of notification and how to confirm whether or not the notification is in effect(ii) The date of notification and the fact that notification is in effect as well as the effective date(9) Instrument classification and attribute category table
The instrument classification and attribute category table shall be recorded. In this case, a table of the
instrument classification and attribute category to which the fund is applicable shall be recorded on the
cover pages, etc., in the format prescribed in the By-laws. The detailed content shall be described in the
Requested Prospectus.
In addition, it shall be noted that the content of instrument classification and attribute categories can beviewed on the website of the Investment Trusts Association, Japan.
(10) Other matters described(i) That if any significant change is made to the content of the product, the intention of the beneficiaryshall be confirmed in advance in accordance with the Act on Investment Trusts and Investment
Corporations (Act No. 198 of 1951, hereinafter referred to as the “Investment Trust Act”)(ii) That the investment trust assets are segregated by the trustee company based on the Trust Act(iii) That the Requested Prospectus shall be delivered by the sales company at the investor’s request andthat, if such a request is made, it must be recorded(iv) A statement to the effect of “Please read the content of this document sufficiently before
purchasing.”* Article 2 of the By-laws–2–

Article 3.

Matters Described in the Text and Order of Description

The text of the Delivery Prospectus shall describe the content set forth in each of the following items withregard to the following matters. In addition, the Delivery Prospectus shall describe the items in the following
order:(1) Purpose and features of the fund(i) Purpose of the fundMatters considered the purpose of the fund shall be stated based on the “Basic Policy” and the“Investment Attitude,” etc., described in the “Basic Management Policy” of the Contract.
(ii) Characteristics of the fund
Based on the “Basic Policy” and the “Investment Attitude,” etc., described in the “BasicManagement Policy” of the Contract, and in consideration of the product attributes of the fund, points
of interest for investment shall be explained in an easy-to-understand manner so that investors canplainly comprehend the characteristics of the fund. Matters characteristic of the fund such as the
structure of fund, investment method, management process, investment restrictions, and distribution
policy shall also be described. In this case, bear in mind the following matters:(a) In addition to explanation in writing when describing the characteristics of the fund, attachment of
diagrams, etc., shall also be possible as necessary. In particular, when explaining the structure offund, it is advisable to explain the content of the main investment target and investment method(whether the fund directly invests or indirectly invests through the family fund method, etc.) by
which the fund generates profits, using diagrams, etc., so that investors can easily understand.
(b) If an operating authority is delegated, the name of the party to whom the investment is delegated,
content of the delegation, etc., shall be described.
(c) For funds for which the investment goals or investment policy is expected to change during thetrust period, the content at the time of initial establishment and content after the change shall be
described.
(d) With regard to the currency selection type of investment trust, etc., the structure of fund and thesources of revenue shall be specified in conceptual diagrams, and the risk and return of each sourceof revenue shall be explained using conceptual diagrams for each element in order to render acomplete picture. When preparing conceptual diagrams, the details shall be devised and describedin conformity with the structure of each fund with reference to the description method set forth in
the By-laws.
(e) When describing the distribution policy, that the distribution policy does not guarantee future
distribution shall be devised and described, with reference to the description method set forth in
the By-laws.
(2) Investment risk(i) Main factors of fluctuations in constant value
When describing investment risk, the description shall be devised, for example, by determining theorder of description in accordance with the degree of influence on the fund and emphasizing
characters by changing its size and boldness.
–3–

At the beginning of the clause on investment risk, it shall also be stated that all profits and losses
arising from management of the fund shall belong to the investors, that the investment trust shall be afinancial instrument without principal guarantee, and that the investment trust shall differ from
deposits and savings.
(ii) Other points to note
The following matters shall be described as other points of note:(a) The fact that a cooling-off period does not apply(b) Matters concerning liquidity risk
Explanation of the circumstances in which the fund’s liquidity risk may be actualized andexplanation of restrictions, etc., on requests for early cancellation by investors (beneficiaries)
arising therefrom(c) Other matters to be specially mentioned(iii) Risk management system
The management system (including the liquidity risk management system) of the fund and the
management company shall be briefly described.
(iv) Comparison of fluctuation rate with typical asset classes
For reference information, the chart comparing the fluctuation rate between the fund and typical asset
classes shall be devised and described with reference to the description method provided in the
By-laws in the following manner:(a) The annual fluctuation rate of the fund (meaning the number obtained by multiplying the quotientobtained by dividing the difference obtained by subtracting the constant value after dividend
reinvestment as of the end of each month of the previous year from the constant value after
dividend reinvestment as of the end of each month (the constant value calculated by deeming thatthe distribution amount before taxes has been reinvested at the time of distribution; the same shallapply in (iv) and (v)) by the constant value after dividend reinvestment as of the end of each monthof the previous year by 100; hereinafter referred to as the “Annual Fluctuation Rate of the Fund”;
the same shall apply in (iv) and (v)) and the annual fluctuation rate (meaning the number obtainedby multiplying the quotient obtained by dividing the difference obtained by subtracting the valueof the index from the end of each month of the previous year from the value of the index from theend of each month by the value of the index from the end of each month of the previous year by100; the same shall apply in (iv) hereinafter) of the typical asset class (meaning about six kinds ofindices regarding securities and other investment assets, calculated on an objective and fair basis
and to be continuously published; the same shall apply in (iv) hereinafter) shall be described usingbar graphs representing the average value, maximum value and minimum value of 60 units of dataobtained by shifting the measurement period by month.
(b) Among funds for which there are not 60 units of data on the Annual Fluctuation Rate of the Fund,the average value, maximum value, and minimum value shall be calculated using annual
fluctuation rate data of the benchmark (meaning the index in cases in which the goal is to make thedegree of variability of the unit price pertaining to the fund consistent with the degree of variability–4–

of the specific index [limited to cases in which that intention is determined in the Contract
pertaining to the fund or in which it is recorded in the Securities Registration Statement]; the same
shall apply in (4) and (5) hereinafter) instead of data on the Annual Fluctuation Rate of the Fundfor periods in which the fund has no annual fluctuation rate. However, that this shall not apply tocases in which there is a concern that the use of such benchmark’s annual fluctuation rate data may
cause misunderstanding for the Investors.
(c) If the average value, maximum value, and minimum value are calculated by using data on theannual fluctuation rate of the benchmark instead of data on the Annual Fluctuation Rate of theFund, that fact shall be stated, and then necessary matters shall be described so as not to cause
misunderstanding for investors. In addition, if the annual fluctuation rate of the benchmark has notbeen used due to concern that use of the annual fluctuation rate of the benchmark may cause
misunderstanding for investors, that fact and the reason thereof shall be described. (The same shallapply in (v) hereinafter.)(d) As for a fund for which there are not 60 units of data on the Annual Fluctuation Rate of the Fund(including the case when the annual fluctuation rate of the benchmark is used; the same shall applyin (d) hereinafter), if there is concern that showing the index of the Annual Fluctuation Rate of theFund and the annual fluctuation rate of the typical asset classes in the same diagram may cause
misunderstanding for investors for the fund, some way shall be devised such as distinguishingthese diagrams clearly, etc.
(e) If the constant value after dividend reinvestment differs from the actual constant value of the fund,it shall be noted that the annual fluctuation rate calculated by deeming that distribution before
taxes has been reinvested is described, and this may differ from the annual fluctuation rate
calculated based on the actual constant value. (The same shall apply in (v) hereinafter.)(v) Changes in the Annual Fluctuation Rate of the Fund and the Constant Value after Dividend
Reinvestment
For reference information, the Annual Fluctuation Rate of the Fund and the changes in the constantvalue after dividend reinvestment shall be devised and described in the following manner, using thedescription method provided in the By-laws as a reference.
In principle, entries shall be made next to “(iv) Comparison of fluctuation rate with typical asset
classes” above.
(a) In describing the changes in Annual Fluctuation Rate of the Fund and the constant value after
dividend reinvestment, 60 units of data on the Annual Fluctuation Rate of the Fund for each monthshall be displayed in bar graphs with regard to the Annual Fluctuation Rate of the Fund, and theconstant value after dividend reinvestment shall be displayed in line graphs.
(b) Among funds for which there are not 60 units of data on the Annual Fluctuation Rate of the Fund,funds with a benchmark shall record the data on the annual fluctuation rate of the benchmark forthe period during which there are no data on the Annual Fluctuation Rate of the Fund. However,that this shall not apply to cases in which there is a concern that the use of such benchmark’s
annual fluctuation rate data may cause misunderstanding for the Investors.
–5–(c) If the annual fluctuation rate of the benchmark is used, the Annual Fluctuation Rate of the Fundand the annual fluctuation rate of the benchmark shall be described in separate graphs or sorted bycolor so that they can be clearly distinguished.
(d) If the constant value after dividend reinvestment described differs from the actual constant value,
it shall be noted that the constant value calculated by deeming that distribution before taxes has
been reinvested is described, and this may differ from the actual constant value.
(3) Investment performance
The following matters shall be recorded regarding the status of management of the fund: Such mattersshall be described as reference information at the end of “Management status” and “Investment
performance” in the Registration Statement.
In addition, changes in (i) constant value (including the index value obtained by reinvesting dividends;
the same shall apply hereinafter), net assets and (iv) annual rate of return in A), and changes in (i) averageannual yield for seven days and net assets in B) shall in principle describe the management status for thatlast 10 years. For funds with an investment period of less than 10 years, the management status up to theinvestment period shall be stated.
Furthermore, it is preferable that details of investment performance and details of investment risk be
described on facing pages.
A) Matters described for funds other than daily settlement funds(i) Changes in constant value and net assets
Changes in constant value and net assets shall be described in the following manner:(a) Changes in constant value shall be recorded in a line graph.
(c) The line graph shall be accompanied by a bar graph or area graph of the change in total net assets.
(ii) Changes in distribution
Changes in distribution shall be described in the following manner:(a) Changes in distribution for each settlement period shall be described in the method specified in
the By-laws.
(b) It shall be noted that the distribution data are the figures before taxes.
(iii) Status of major assets
The status of major assets shall be described in the following manner:(a) In consideration of the characteristics and risk features of the fund, descriptions shall be given of
approximately 10 issues that have a significant influence on management. In this case, funds
managed through the family fund method, etc. may be described according to the substantial
investment destination.
(b) In order to enable investors to easily understand the status of the portfolio, it is advisable torecord the status of the industry-classified ratio (top industry after incorporation) and the status of
the investment ratios by asset in diagrams, etc., according to the characteristics of the fund.
(iv) Changes in the annual rate of return
In principle, changes in the annual rate of return shall be described for each calendar year in thefollowing manner:–6–

(a) Changes in the Annual Fluctuation Rate of the Fund shall be described using a bar graph.
(b) Among newly established funds, funds with a benchmark shall, in principle, describe changes in
the fluctuation rate of the benchmark over 10 years using a bar graph. However, this shall not
apply to cases in which there is concern that the use of such benchmark’s fluctuation rate may
cause misunderstanding for the Investor (the same shall apply in (c) hereinafter).
(c) Among funds with an investment period of less than 10 years, funds with a benchmark shall either
describe changes in the fluctuation rate of the benchmark over the period up to the year before theestablishment of the fund during the most recent 10 years, or shall also include a bar graphshowing the fluctuation rate of the benchmark applicable to the last 10 years. In this case, thefund’s fluctuation rate and the benchmark’s fluctuation rate shall be described in separate
diagrams or sorted by color so that they can be clearly distinguished.
(d) if there is no benchmark, a statement to the effect that there is no benchmark shall be recorded,
and if there is any concern that the inclusion of the benchmark would cause misunderstanding for
the Investors, a statement to that effect shall be recorded.
(v) In (i) and (iv), the basis of calculation shall be noted, such as by stating, “It is calculated by deemingthat the distribution amount at the time of settlement of accounts has been reinvested without tax.”B) Matters described for daily settlement funds(i) Changes in average annual yield for seven days and net assets
Changes in the average annual yield for seven days and net assets shall be recorded in the following
manner:(a) Changes in the average annual yield for seven days shall be recorded in a line graph.
(c) The line graph shall be accompanied by a bar graph or area graph of the change in total net assets.
(c) Note that data on the average annual yield for seven days shall be pre-tax.
(ii) Status of major assets
The status of major assets shall be described in the following manner:(a) In consideration of the characteristics and risk features of the fund, descriptions shall be given of
approximately 10 issues that have a significant influence on management.
(b) In order to enable investors to easily understand the status of the portfolio, it is advisable to record
the status of the investment ratios by asset in diagrams, etc., according to the characteristics of thefund.
C) Notes on description of investment performance
The following matters shall be described as notes on investment performance:(a) The fact that the investment performance of the fund is past results and does not promise future
investment results(b) If a benchmark is described, that the information on the benchmark is described solely as reference
information and is not investment performance of the fund(c) If management status is disclosed (or is scheduled to be disclosed) on the management company’s
website, etc., a statement to that effect(4) Procedures and fees–7–

Procedures and fees shall be described in the format prescribed in the By-laws.

2. The currency selection type of investment trust, etc., prescribed in Item (1)-(ii)-(d) of the preceding
paragraph shall be a currency selection type of investment trust (meaning an investment trust consisting ofmultiple currency courses selectable by the investor, seeking profits from incorporated assets as well as
multiple profits (premiums from foreign exchange transaction (profits corresponding to differences ininterest rate) and profits on currency exchange) in the currency of the course) and shall be an investment trust
seeking profits equivalent to a currency selection type of investment trust in a single-currency course.
* By-laws Article 3, Article 3-2, Article 5, and Article 6

Article 4.

Additional Information

1. In addition to the matters described in accordance with the preceding article, funds with information thatshould be disclosed to investors as characteristics or risks of the fund shall specify it as “additional mattersdescribed” and describe the content of the information according to the description in the Registration
Statement. In this case, the following matters shall be taken into consideration:(1) The fund of funds must state in the Delivery Prospectus the content of the list for the fund to be invested
and the outline of the fund (major investment targets, investment areas, etc.).
(2) For funds with target investment results (constant value, redemption value, income distribution, etc.) or
trust termination dates, etc. determined under certain conditions fixed by the values of explicit indices,
etc. through investment in structured bonds or use of other special mechanisms, the content of thestructured bonds or other special mechanisms and the content of the target investment results must be
described in the Delivery Prospectus.
(3) For funds aiming to seek profits not easily affected by a specific market or funds aiming to seek profits
through a long/short strategy, the content of the investment goals and investment method must be
described in the Delivery Prospectus.
(4) If a fund actively utilizes derivative transactions, the content of the investment method through suchderivative transactions, the target investment results, and the content of risks shall be described in the
Delivery Prospectus.
(5) If assets for which the publication of the value of structured bonds, etc., or liquidation period is limited toa specific date are the main investment targets, that the circumstances affect constant value calculationand liquidation of the fund shall be described in the Delivery Prospectus.
(6) For monthly distribution-type investment trusts and bimonthly distribution-type investment trusts (thosefor which the settlement frequency is every month or every other month), the following content must be
described in the Delivery Prospectus in the manner prescribed in the By-laws:(i) That distribution shall be paid from the net assets of the investment trust(ii) That distribution may be paid in excess of profits(iii) That distribution may, in whole or in part, be equivalent to partial payback of the principal(7) If an investment trust related to a leverage index, etc. (an investment trust that falls under Article 83,
Paragraph 1, Item 8 of the Cabinet Office Ordinance on Financial Instruments Business, etc.) is subject–8–

to the matters set forth in sub-items (a) and (b) of the same item, such fact, the reasons therefor, and thematters set forth in sub-item (c) of the same item must be described in the Delivery Prospectus.
2. The matters set forth in the items of the preceding paragraph shall not be precluded from being described as“Purpose and Features of the Fund” or “investment risk” rather than “additional matters described.”* Article 4 of the By-laws

Article 4-2.

Precautionary Wording for Funds Investing in Low-Liquidity Assets“IV Non-Liquid Assets” specified by management companies based on Article 2-4, Item 1(b) of the Rules on
Management of Investment Trusts, etc. (if management companies adopt a classification method different fromthe classification method set forth in Article 2-4, Item 1(b) of the said Rules, the lowest of said classification)
shall be the main investment target of the fund, and if advance redemption of the fund is difficult due to theconcentration of early cancellation requests from beneficiaries during the trust period, the following measures
shall be taken:(1) Prominently displaying on the cover page of the Delivery Prospectus the fact that liquidity is lacking(2) Describing in the section on “investment risk” in the Delivery Prospectus that liquidity is lacking(including the fact that liquidity is likely to be lacking) and the impact thereof

Article 4-3.

Special Provisions for Privately Placed Investment Trusts Invested in Low-Liquidity Assets

With regard to privately placed investment trusts for which it is expected to be difficult to respond to requests
for partial cancellation from beneficiaries during the trust period, from the viewpoint of encouraging caution
against the liquidity risk of the privately placed investment trusts, when preparing documents used for
explanation of products to investors, a description of the risk in Article 3, Paragraph 1, Item 2-(ii)-(b) and thecontent corresponding to items (iii) that should be described as a risk management system shall beconspicuously indicated in the passage in the document where the descriptions of the product attributes andcharacteristics of the investment trust are recorded.

Article 5Special Provisions for the Delivery Prospectus of Multiple Funds

When recording a Delivery Prospectus for multiple funds, based on the object of the provisions in Article 2
through Article 4, the Delivery Prospectus may be devised and recorded so as to enable the Investors to clearly
understand the differences among the funds within the scope specified by laws and regulations and to the extent
that such differences do not cause any misunderstanding to the investor.

Article 5-2.

Special Provisions for the Delivery Prospectus of Funds Subject to Credit Risk Diversification

ControlFunds that fall under Article 17-3, Paragraph 1, Items 3 and 4 of the Rules on Management of Investment
Trusts, etc., shall be described with reference to the description method provided in the By-laws.
* Article 6-2 of the By-laws

Article 6.

Requirements for Delivery of Contracts–9–

If the full text of the Contract is recorded in the Requested Prospectus, the provisions of Article 5 of theInvestment Trust Act shall be satisfied by delivering the Delivery Prospectus recording the main content of theContract to the investor.
In addition, the main content of the Contract may be recorded in the Delivery Prospectus in a concise andeasy-to-understand manner based on the matters described in the Contract.

Article 7.

Standards, etc., for the Delivery Prospectus

1. The standard for providing the Delivery Prospectus as printed material shall be A4 size.
2. The characters used shall be of a size that gives consideration to legibility for investors. When stating mattersregarding investment risk that are provided as requirements for the pre-contract documents, the charactersshall be characters 10-point size or larger as provided for in Japanese Industrial Standard Z8305.
However, with regard to the statements at the beginning of “Investment risk” in the second sentence ofArticle 3, Paragraph 1, Item 2-(i) that all profits and losses arising from management of the fund shall belong
to the investors, that the investment trust shall be a financial instrument without principal guarantee, and thatthe investment trust shall differ from deposits and savings, said statements shall be made in characters larger
than those other than at the beginning of “Investment risk” or, if this is difficult, said statements shall bemade in such a way that they stand out, such as in red type or underlined.
3. The volume shall be appropriate so that investors can easily understand.
4. In addition to the matters set forth in each of the preceding paragraphs, the written expressions to be noted in
preparing the Delivery Prospectus shall be as specified in the By-laws.
* Article 7 of the By-laws

Article 8.

By-laws

Necessary matters for the enforcement of these Rules shall be stipulated in the By-laws.

Article 9.

OthersAny matters not provided for in these Rules with regard to the Delivery Prospectus of an investment trust may
be decided by resolution of the Board of Directors.

Article 10

Delegation to Competent Committee

1. The Board of Directors shall be entitled to delegate to the Self-Regulation Committee the authority to amend
any By-laws relating to these Rules.
2. The Self-Regulation Committee shall promptly report to the Board of Directors, the contents of any
decisions made by the Self-Regulation Committee with respect to any matters delegated thereto (limited todecisions deemed necessary by the Board of Directors. ).

Supplementary Provisions–10–

1. These Rules shall come into effect on July 1, 2010.
However, this provision shall be applied from the Delivery Prospectus of the Securities Registration
Statement newly submitted on or after the effective date.
2. The “Guidelines for Preparation of the Prospectus” (Established March 15, 2002) shall be repealed as of theeffective date upon the establishment of these Rules.

Supplementary Provisions
1. This amendment shall come into effect on February 1, 2012 and shall apply to those whose Securities
Registration Statement is newly submitted on or after the effective date.
2. Notwithstanding the foregoing Paragraph 1., Full Members shall not be precluded from operating based on
the provisions after amendment until the date of such application.

Supplementary ProvisionThis amendment shall come into effect on January 4, 2013.

Supplementary Provisions
1. This amendment shall come into effect on February 21, 2013 and shall apply to any new Securities
Registration Statement submitted on or after the effective date.
2. Notwithstanding 1. above, full members shall not be precluded from operating based on the provisions after
the amendment until the date of such application.

Supplementary Provisions
1. This amendment shall come into effect on December 1, 2014 and shall apply to any new Securities
Registration Statement submitted on or after the effective date. Securities Registration Statements submitted
before the effective date shall be according to former precedent.
2. In the Supplementary Provisions of the Financial Instruments Act (Article 38 of the Act. No. 45 of 2013
[Review]) the “government shall review the provisions of each law after its revision (hereinafter in thisarticle referred to as “Each Revised Law”) in principle five years from the effective date, and take measures
as deemed necessary based on the results thereof in consideration of the state of enforcement of each revised
law.”* The amended Articles are as follows:(1) Article 1 is amended.
(2) Article 3, Paragraph 1, Item 2-(iv) and Item 2-(v) are newly established.

Supplementary ProvisionThis amendment shall come into effect on December 1, 2014.
* The amended Articles are as follows:
Article 5-2 is newly established.

–11–Supplementary Provisions
This amendment shall come into effect on January 1, 2022 and shall apply to any Delivery Prospectus thatcomes into use on or after the effective date.
However, if management companies decide to implement Article 2-4, Item 1 of the Rules on Management of
Investment Trusts, etc., on a day after January 1, 2022 after formulating a reasonable implementation plan
based on their own circumstances, such amendment may go into effect on such day.
The provisions after amendment may be applied before the date of implementation at the discretion of theManagement Companies, etc.
* The amended Articles are as follows:(1) Article 3, Item 2-(ii)-(b) is newly established, and the former “b” is amended to “c.”(2) Article 3, Item 2-(iii)(3) Articles 4-2 and 4-3 are newly established.

Supplementary ProvisionThis amendment shall come into effect on January 24, 2022.
Note that with respect to the application of the revised provision in Article 4, Paragraph 1, Item 7, theprovisions then in force may remain applicable for up to one year after the effective date.
* The amended Articles are as follows:(1) Added Article 4, Paragraph 1, Item 7.

–12–

By-laws on the Rules for Preparation of Delivery Prospectus
Established on March 18, 2010
Revised on November 17, 2011
Revised on February 21, 2013
Revised on June 12, 2014
Revised on July 17, 2014

Article 1.

Purpose

These By-laws shall provide for matters necessary for implementation of the Rules for Preparation of Delivery
Prospectus (hereinafter referred to as the “Rules”).

Article 2.

Description Format for Instrument Classification and Attribute Categories

The format provided for in the By-laws as prescribed in Article 2, Item 9 of the Rules shall be the following
format:Unit
type/open
type‥

Instrument Classification
Investment
Investment
target areatarget assets(Source ofrevenue)‥‥‥

Investment
target assets‥‥

Attribute Category
Settlement
Investment
frequency
target area‥

Investment
form

‥

‥

‥

‥

(Points to consider in writing)
1. Instrument Classification and attribute category shall be clearly distinguished.
2. Among the above items, any item not applicable may be omitted.
3. In the “Currency hedge” section stated in the attribute category, record whether there are hedges against
exchange risk against the yen.
4. In the event that it is difficult to indicate the item in the parentheses of “investment target assets” in thetable due to space, etc., it may be recorded in the margins of the table as required.

Article 3.

Description Method as Specified in the By-laws as the Characteristics of the FundThe description method specified in the By-laws as prescribed in Article 3, Paragraph 1, Item 1-(ii)-(d) and (e)of the Rules shall be as follows:(1) With regard to currency selection type of investment trusts, etc., (meaning the investment trust prescribedin Article 3, Paragraph 2 of the Rules; the same shall apply hereinafter) the places of publication of thematters set forth in (i) through (ii) below shall be specified in conformity with the product attributes of
the investment trust with much consideration.

(i) For currency selection type of investment trusts, the elements of their respective revenue sources (forexample, “revenues from investment target assets,” “premiums from exchange transactions(revenues equivalent to interest rate differences),” “revenues from exchange fluctuations,” etc.) shall–1–

be explained in the text of the Delivery Prospectus using writing and diagrams, and conceptual
diagrams illustrating the mechanism of currency selection type of investment trusts shall also berecorded, with reference to the following example diagrams.
Conceptual diagram example illustrating the mechanism of currency selection type of investment trusts(ii) A conceptual diagram illustrating the risk and return of currency selection type of investment trusts
shall be recorded with reference to the following example diagram in order to confirm the risk andreturn of currency selection type of investment trusts in a single diagram that presents “cases in which
profits can be gained” and “cases in which losses and costs will arise” for each element of the source ofrevenue.



Conceptual diagram example illustrating risk and return for currency selection type of investment trusts–2–

(Points to consider in writing)
1. Conceptual diagrams shall be in accordance with the investment trust product scheme handled by eachcompany for illustrative purposes.
(2) With regard to the description of the “Distribution Policy” set forth in Article 3, Paragraph 1, Item
1-(ii)-(e) of the Rules, that the distribution policy does not guarantee future distribution shall be devised
and recorded with reference to the following description examples:(i) If describing only in writing, for example, “Payment of future distribution and the amount thereof
shall not be guaranteed,” shall be indicated with some contrivance such as making the size of thecharacters in the description in the text an equivalent size.
(ii) If writing is added to conceptual diagrams in the “Distribution Policy,” for example, “The above isfor illustrative purposes only and does not indicate or guarantee the payment of distribution in the
future or the amount thereof,” shall be indicated with some contrivance such as making the size of thecharacters in the description in the text an equivalent size or considering the balance with theconceptual diagram.

Article 3-2.

(Description Format for Comparison of Fluctuation Rate with Typical Asset Classes)

The description method specified in the By-laws as prescribed in Article 3, Paragraph 1, Item 2-(iv) of theRules shall be as follows: Conceptual diagram example of a comparison of fluctuation rate with typical asset classes<Comparison of fluctuation rate of the fund with other typical asset classes>–3–

(Average fluctuation rate, annual maximum fluctuation rate and minimum fluctuation rate (%) of the fund andother typical asset classes)
This FundJapanese
Shares+4.3

Average
Value
Maximum
Value
Minimum
Value

Shares ofEmerging
Countries+4.9

Japanese
Bonds

-13.6

Shares ofDeveloped
Countries
+1.2

+2.3

Bonds ofDeveloped
Countries-8.8

Bonds of
Emerging
Countries
+10.9

35.5

28.5

57.0

91.6

4.1

2.6

38.9

-23.9

-45.4

-47.9

-56.6

0

-18.9

-18.2

(Note) Not all asset classes are investment targets of the fund.

* The average, maximum, and minimum fluctuation rates for every end-of-month of the last year
during the five-year period from MMYY to MMYY are shown for the fund and other typical asset
classes.

* Index for each asset class
Japanese Shares ...................................... ○○○○○
Shares of Developed Countries ............... ○○○○○
Shares of Emerging Countries ................. ○○○○○
Japanese Bonds ....................................... ○○○○○
Bonds of Developed Countries................ ○○○○○
Bonds of Emerging Countries ................. ○○○○○(Note) Overseas indices are converted into yen on the assumption that investments are made without exchange hedging.

(Points to consider in writing)
1. Conceptual diagrams shall be in accordance with the investment trust product handled by each company
for illustrative purposes. When the average, maximum, and minimum fluctuation rates are shown in the
diagram, the table “(for average fluctuation rate, annual maximum fluctuation rate, and minimum
fluctuation rate (%) for the fund and other typical asset classes)” need not be shown.
2. In recording a graph for comparison with typical asset classes, in order to make it easy for investors tounderstand the purpose of including this graph, creative efforts shall be made by, for example, statingthat “The graph has been created so as to enable quantitative comparison between the fund and typicalasset classes.”

Article 3-3.

(Description Format for Changes in Annual Fluctuation Rate of the Fund and Base Value after

Dividend Reinvestment)
The description method specified in the By-laws as prescribed in Article 3, Paragraph 1, Item 2-(v) of the Rules
shall be as follows:

–4–



Conceptual diagram example indicating changes in Annual Fluctuation Rate of the Fund and basevalue after dividend reinvestment(Points to consider in writing)
1. Conceptual diagrams shall be in accordance with the investment trust product handled by each company
for illustrative purposes.

Article 4.

Description Method Specified in the By-laws as Additional Information

The description method specified in the By-laws as prescribed in Article 4, Paragraph 1, Item 6 of the Rules
shall be as follows:
According to the description method in (i) to (iii) below, investment trusts as set forth in Article 4, Paragraph 1,
Item 6 of the Rules shall be noted as “Points to Consider in Income Distribution,” etc., and shall in principle bedescribed following the passage on distribution policy in the “Purpose and Features of the Fund.”Investment trusts subject to this item shall mean publicly offered open type investment trust (excluding
exchange-traded securities investment trusts (investment trusts prescribed in Article 12, Items 1 and 2 of theRegulation for Enforcement Order of the Act on Investment Trusts and Investment Corporations and listed
investment trusts prescribed in Article 9-4-2 of the Act on Special Measures Concerning Taxation; hereinafterreferred to as “Listed Investment Trust”)).
(i) Recording method for image of payment of distribution
As an explanation in writing, for example, that “Unlike interest on deposits and savings, distribution ispaid out of the net assets of the investment trust, so when distribution is paid, the base value is reduced
by an equivalent amount,” shall be recorded in a conspicuous manner, such as enclosed by a frame, anda conceptual diagram of the distribution paid out of the net assets of the investment trust in reference tothe example diagram below shall also be recorded.

–5–



Conceptual diagram example of distribution paid out of the net assets of the investment trust
Distribution

Image of distribution paid
from the investment trust
Net assets of the investment trust(ii) Recording method for image in which distribution is paid in excess of profits
As an explanation in writing, for example, that “Distribution may be paid in excess of profits generated
during the accounting period (transaction gains such as distributions after deduction of expenses,
including valuation gains). In that case, the base value on the current closing date will be lower thanthat of the previous period’s settlement date. In addition, the standard for distribution does notnecessarily indicate the rate of return of the fund during the calculation period,” shall be recorded in aconspicuous manner, such as enclosed by a frame, and a conceptual diagram of distribution payment inexcess of profits in reference to the example diagram below shall also be recorded.
Conceptual diagram example of distribution paid in excess of profits generated during the calculation
period(If the base value increases from the previous closing date) (If the base value decreases from the previous
closing date)(Points to consider in writing)
1. With regard to the distribution amount, as an explanation in a conceptual diagram, the following shallbe clearly noted: (i) dividend income after deduction of expenses, (ii) transaction gains including–6–

valuation gains after deduction of expenses, (iii) reserve for dividends, and (iv) revenue adjustment. It
shall also be recorded that “Distribution shall be paid out of the distribution amount based on the
distribution policy.”
2. With regard to the expression of conceptual diagrams, the specific amount of money shall be recorded
in an easy-to-understand manner.
3. With regard to conceptual diagrams, it shall be recorded to “Bear in mind that the above is forillustrative purposes only and does not indicate or guarantee the actual distribution amount or the basevalue.”(iii) Recording method for image in which distribution, in whole or in part, is equivalent to partial paybackof the principal.
As an explanation in writing, for example, that “Depending on the investor’s purchase price of the fund,
distribution, in whole or in part, may be substantially equivalent to a partial payback of the principal,”or that “Depending on the investor’s purchase price of the fund, distribution, in whole or in part, may besubstantially equivalent to a partial payback of the principal. The same shall apply when the increase in
the base value is smaller than the increase in the distribution amount due to management status after thepurchase of the fund,” shall be recorded in a conspicuous manner, such as enclosed by a frame, and aconceptual diagram of a case in which distribution, in whole or in part, is equivalent to a partial paybackof the principal, in reference to the example diagram below, shall also be recorded.

–7–



Conceptual diagram example of a case in which distribution, in whole or in part, is equivalent to a partial
payback of the principal(A case in which distribution is in part equivalent to a partial payback of the principal)

Ordinary distribution

Investor’s purchase pricePrincipal payback(Special distribution)(Initial individual
principal)
Base value after payment
of distribution
Individual principal* The principal payback(special distribution) shall bedeemed substantially a partial
refund of the principal, andthe individual principal shallbe decreased only by thatamount.
In addition, the principal
payback (special distribution)
portion shall be exemptedfrom taxation.

(Cases in which the whole distribution is equivalent to partial payback of the principal)

Investor’s purchase pricePrincipal payback(Special distribution)(Initial individual
principal)
Base value after payment
of distribution
Individual principal(Points to consider in writing)
1. When recording that distribution, in whole or in part, is equivalent to a partial payback of the principal,a description of ordinary distribution (distribution from the portion exceeding individual principal[investor’s purchase price of the fund]) and the principal payback (special distribution) (distribution
from the portion below individual principal) shall be recorded. In addition, with regard to the principal
payback (special distribution), it shall be recorded that “The investor’s individual principal after
distribution shall decrease by the amount of the principal payback (special distribution).”
2. As a note, “With regard to taxation on ordinary distribution, refer to ‘Fund Expenses and Taxes’ in‘Procedures and Fees, etc.’ of the Delivery Prospectus,” shall be inserted. Conceptual diagrams ofcases in which distribution, in whole or in part, is equivalent to partial payback of the principal may berecorded in “Fund Expenses and Taxes” in “Procedures and fees.”–8–Article 5.

Description Method for Changes in Distribution

The description method specified in Article 3, Paragraph 1, Item 3 A)-(ii) of the Rules shall be as follows:
Description example (1) (example of twice-yearly settlement fund)October 200940 yenApril 2009

60 yenOctober 2008

30 yenApril 2008

50 yenOctober 2007

40 yenCumulative total since establishment

The past five calculation periods
and cumulative total since
establishment are shown together.

2,460 yen

Description example (2) (example of monthly settlement fund)October 200940 yenSeptember 200940 yenAugust 200940 yenJuly 200940 yenJune 200940 yenCumulative total for the most recent year

480 yen

Cumulative total since establishment

2,400 yen

The past five calculation periods,
cumulative total for the most recent
year, and cumulative total since
establishment are shown together.

(Points to consider in writing)
1. When recording changes in distribution, these shall be described in the form of a table for at least thelatest five calculation periods.
As in the description example above, the total value of several calculation periods (for example, since
establishment and the last several calculation periods) may also be described together.
2. The unit of distribution (per 1 unit; per 10,000 units; etc.) shall be specified.
3. It shall be recorded that the distribution data are figures before taxes.

Article 6.

Description Format for Procedures and Fees

The format provided for in the By-laws as prescribed in Article 3, Paragraph 1, Item 4 of the Rules shall be thefollowing format: However, listed investment trusts, property accumulation benefit funds (investment trusts
with beneficiaries being workers under workers’ property accumulation contracts as provided in Article 6-2 ofthe Workers’ Property Accumulation Promotion Act (Act No. 92 of 1971), in which the employer who employs
the workers shall contribute all of the money to be allocated to the establishment of the investment trust), andfunds exclusively for defined contribution pension plans (investment trusts for the purpose of managing funds
contributed by individuals or employers under the Defined Contribution Pension Act (Act No. 88 of 2001))
may be established in accordance with the characteristics of said funds.

–9–(1) Application memo
Purchase units
Purchase value
Purchase priceLiquidation unit
Liquidation value
Liquidation priceApplication deadline
Purchase application period
Restrictions on liquidation
Suspension and cancellation of acceptance ofpurchase and liquidation applications
Trust Period
Advance redemption
Closing date
Distribution of profits
Limit of trust money
Notification
Investment Report
Taxation-related* Points to consider in writing 1* Points to consider in writing 2* Points to consider in writing 3* Points to consider in writing 4* Points to consider in writing 5* Points to consider in writing 6* Points to consider in writing 7* Points to consider in writing 8* Points to consider in writing 9* Points to consider in writing 10(Points to consider in writing)
1. “Purchase price” shall indicate the due date by which the Investor shall pay the purchase price.
2. “Liquidation price” shall indicate the date of commencement of payment of the liquidation price.
3. “Purchase application period” may be stated at the beginning of the application memo if it is considered
to be important information for investors in newly established funds or unit types.
4. “Restrictions on liquidation” shall indicate restrictions pertaining to closed terms or large-scale earlycancellations if such matters exist. If such matters do not exist, that shall be indicated as “N/A” or “-.”
5. “Suspension and cancellation of acceptance of purchase and liquidation applications” shall state that
acceptance of purchase and liquidation applications may be suspended or cancelled due to suspensionof transactions at financial instruments exchanges, etc.
6. “Trust period” shall indicate the “trust establishment date” and the “redemption date” (or if the trust
period is indefinite, a statement to that effect).
7. “Advance redemption” shall indicate that the fund may be redeemed in advance and the requirements
therefore.
8. “Distribution of profits” shall indicate the frequency of distribution, handling of distribution(possibilities for reinvestment), etc.
9. “Investment Report” shall indicate the time of preparation of the investment report (if an Investment
Report (Delivery Version) has been prepared, the Investment Report (Delivery Version)) and the factthat the investment report will be delivered to known beneficiaries.
10. “Taxation-related” shall in principle indicate that the trust is to be treated as a share investment trust
for taxation purposes or that the trust is to be treated as a public and corporate bond investment trust for
taxation purposes. In addition, if any dividend deduction system or deduction for dividends isapplicable, such fact shall be indicated. However, this shall not apply to any of the following investment
trusts:‐ Publicly offered bond investment trust prescribed in Article 2, Paragraph 1, Item 15-3 of the Income
Tax Act
11. In addition to the above items, if there are any other matters to be described, such as the characteristics–10–

of the fund or any other matters considered necessary, said other matters shall be described in addition
to the above items as appropriate.

(2) Fund expenses and taxes(a) Fund expenses
Expenses directly borne by the investor
Commission at time of purchase* Points to consider in writing 2
Amount retained in trust property
Expenses indirectly borne by the investor in the trust property
Investment management expenses (trust fee)
* Points to consider in writing 3(Management company)* Points to consider in writing 3(Seller)* Points to consider in writing 3(Trustee company)* Points to consider in writing 3* Points to consider in writing 5*

Other expenses and fees
* Passages to write in parentheses(Points to consider in writing)
1. With regard to expenses directly borne by the investor (commission at the time of purchase,amount retained in trust assets) and expenses indirectly borne by the investor (investment
management expenses (trust fee) and other expenses and fees), the amount or rate of fees,collection method, and collection period shall be recorded. In recording commission at the time ofpurchase, the amount retained in trust property, investment management expenses (trust fee(total)), and fees at the time of liquidation, efforts shall be made so that they are conspicuous, suchas by using red type or underlining.
2. With regard to commission at the time of purchase, the content of the services for which thecommission is compensation shall be described in a table so as to compare with the commission.
3. With regard to investment management expenses (trust fee), not only the total price with tax but
also the calculation method, amount or rate, collection method, and collection period shall be
indicated for each party to whom payment is made, and the same shall be indicated in the table forcomparison with reference to the following matters:
Trust fee = base value during the investment period x trust fee rate
(Management company) Compensation for management of entrusted funds(Sales company) Compensation for sending various documents such as investment reports,
managing the fund in the account, providing information after purchase, etc.
(Trustee company) Compensation for administration of investment property and execution of
instructions from the management company
4. For expenses not applicable to any of the above items, the fact that such expenses are notapplicable shall be indicated.
5. With regard to other expenses and fees, the calculation method, amount or rate, collection method,collection period, and content of services for which the fees are the compensation (for example,–11–

fees for audits, etc.) shall be recorded for each party to whom payment is made. In addition, if rates
cannot be recorded in advance, such fact and the reason therefore shall be recorded, and if rates canbe confirmed in the Requested Prospectus, such fact shall be recorded.
6. For funds that collect expenses other than the above items and which have expenses to be
separately described (for example, funds that collect fees at the time of liquidation), the items shallbe added as appropriate, and the content of the expenses and services for which the fees are thecompensation shall be described.
7. In the case of the fund of funds, the content of substantial expenses shall be described withreference to the following examples.
If explaining substantial expenses is difficult, it may be substituted with such statement.

[Description example of investment management expenses (trust fee) for the fund of funds]
Investment management expenses of the fund (trust fee)
(Management company)(Seller)(Trustee company)
Investment trust securities considered
the investment target
Substantial burden
8. If explaining the above points to consider in writing in the table items is difficult, the points toconsider in writing may be described in the table margins as appropriate.

(a) Taxes
Taxes shall be stated in accordance with the classification of share investment trusts and public andcorporate bond investment trusts based on the following examples.
[Description example of share investment trusts]‐

Taxes shall apply in the period listed.

‐

The following table shows the withholding tax rates of individual investors, which may vary dependingon taxation methods.
PeriodAt distribution

Item

Taxes

Income taxes and●% against ordinary distribution

local taxes
At the time of liquidation

Income taxes and(early cancellation) andlocal taxes

at the time of redemption

Taxation as dividend income

Taxation as transfer income●% against marginal profits (transfer
profits) at the time of liquidation (earlycancellation) and redemption‐

Since the above is as of MMDDYY, tax rates may change if tax laws are amended.

‐

Cases of corporations differ from the above.

–12–

‐

It is recommended that details of tax handling be confirmed with tax specialists.

[Description example of public and corporate bond investment trusts]‐

Taxes shall apply in the period listed.

‐

The following table shows tax rates for individual investors. (May differ if using tax exemption systems)
PeriodAt distribution

Item

Taxes

Income taxes and●% of distribution

local taxes
At the time of liquidation

Income taxes and(early cancellation) andlocal taxes

redemption

Taxation as interest income

Taxation as interest income●% against the amount in excess of(individual) principal at the time ofliquidation (early cancellation) and at thetime of redemption‐

Since the above is as of MMDDYY, tax rates may change if tax laws are amended.

‐

Cases of corporations differ from the above.

‐

It is recommended that details of tax handling be confirmed with tax specialists.

Article 6-2.

The Description Method Specified in the By-laws regarding Names of Funds Subject to Credit

Risk Diversification Control
The description method specified in the By-laws as prescribed in Article 5-2 shall be devised and recorded withreference to the following description examples:(1) If there is or is likely to be a controlling issue in excess of the ratio set forth in Article 17-2, Paragraph 1of the Rules on Management of Investment Trusts, etc. (hereinafter referred to as the “Management
Rules”) in the investment target, the fund shall conspicuously indicate on the cover page of the Delivery
Prospectus that it will engage in specialized investment and state in the section on “Purpose andFeatures of the Fund” that there is a controlling issue (including the fact that there is high likelihood of
there being a controlling issue) and the effects thereof.


Examples of description in the section on “Purpose and Features of the Fund” of a Delivery Prospectus inwhich a controlling issue exists or is highly likely to exist.
‐ The Fund adopts the XX Stock Index as a benchmark. Since the XX Stock Index has a controllingissue that accounts for, or is likely to account for, more than 10% contribution of the said index,
investment concentrated in that specific issue may occur, and large losses may be incurred in theevent of bankruptcy or deterioration in business operation or financial status concerned with suchcontrolling issue.
‐ The fund combines the XX index with the YY index at a weight of 5:5 and uses that index converted
into yen as the benchmark. Since this benchmark has a controlling issue that accounts for, or is likely
to account for, more than 10% contribution of the said benchmark, investment concentrated in that–13–

specific issue may occur, and large losses may be incurred in the event of bankruptcy or deteriorationin business operation or financial status concerned with such controlling issue.
‐ The fund has invested in XX-related shares. Since XX-related shares have a controlling issue that
accounts for, or is likely to account for, more than 10% contribution of the shares, investment
concentrated in that specific issue may occur, and large losses may be incurred in the event ofbankruptcy or deterioration in business operation or financial status concerned with such controllingissue.

(2) If the ratio of the exposure to a single entity calculated in the manner set forth in Article 17-2 of theManagement Rules to the net assets of the investment trust property exceeds the ratio set forth in Item 1of the same article, the name of such single entity shall be clearly indicated in the name of the fund so as
to be easily understood by general investors, the fact that such single person is engaged in specialized
investment shall be conspicuously indicated on the cover page of the Delivery Prospectus, and theexistence (including the fact that it is highly likely to exist) and the effect thereof shall be stated in thesection on “Purpose and Features of the Fund”


Examples of fund names that clearly indicate the name of a fund with an entity whose exposure exceeds
the regulation ratio‐ “XX Share Fund” (XX is a company name; several companies are possible.)‐ “Indonesian Government Bond Fund”‐ “World Bank Bond Fund”

Article 7.

Written Expression

The written expression provided for in the By-laws as prescribed in Article 7, Paragraph 4 of the Rules shall be
the following items:(1) When explanation is made in writing, the following matters should be taken into consideration:(a) To endeavor to express matters concisely and simply. Also, to avoid ambiguous expressions anddescribe as specifically as possible.
(b) To endeavor to shorten single sentences as much as possible and not include multiple pieces of
information in one sentence. Also, in principle, not to use any irony or double negatives in a
sentence.
(c) To refrain from using difficult technical terms as much as possible. Also, to endeavor to use thesame terms to indicate the same content.
(2) To pay attention to the following matters when using graphs and diagrams:(a) To endeavor to select the most suitable format so that investors can easily make decisions.
(b) To endeavor to present content so as not to cause misunderstanding for investors.
(3) When using photographs, illustrations, etc., to pay attention to the following matters:(a) Not to present content in ways likely to cause misunderstanding or prejudice for the investor (forexample, any photograph which may cause misunderstanding of the content of the investment
target asset by exaggerating part thereof or any portraits of prominent people that may cause–14–misunderstanding of investment policies).
(b) When presenting photographs or illustrations, strive for a layout that does not make the text
difficult to read.
(4) For publicly offered open type investment trust, the term “special distribution” (as defined in Article 27of the Order for Enforcement of the Income Tax Act (Cabinet Order No. 96 of March 31, 1965); thesame shall apply hereinafter.) shall be expressed as “Principal payback (special distribution).”(5) Not to indicate the terms “stability” or “stable” regarding currency selection type of investment trusts inthe distribution policy.
However, this shall not apply to courses for hedging against yen.

Supplementary Provisions
These By-laws shall be implemented from July 1, 2010.
However, this provision shall be applied from the Delivery Prospectus of the Securities Registration Statement
newly submitted on or after the effective date.

Supplementary Provisions
1. This amendment shall come into effect on February 1, 2012 and shall apply to those whose Securities
Registration Statement is newly submitted on or after the effective date.
2. Notwithstanding the foregoing Paragraph 1., Full Members shall not be precluded from operating based on
the provisions after the amendment before the date of such application.

Supplementary Provisions
1. This amendment shall come into effect on June 1, 2012 and shall apply to those whose Securities
Registration Statement is newly submitted on or after the effective date.
2. When a Securities Registration Statement is newly submitted after the effective date for currency selection
type of investment trusts already actually existing on the effective date that use the terms “stability” or“stable,” the provisions of Article 7, Item 5 after amendment shall not apply to the following <Noteexamples>.
<Note examples>
The policy is that “In principle, stable distribution shall be done mainly for profits such as interest anddividends,” but this does not suggest that profits from investment will be stable or that the base value
will change stably. In addition, it should be noted that stable distribution may not be realized dependingon the base value standard, management status, etc.
3. Notwithstanding the foregoing Paragraph 1. and 2., Full Members shall not be precluded from operating
under the revised provisions until such effective date.

–15–

Supplementary Provisions
1. This amendment shall come into effect on February 21, 2013 and shall apply to any new Securities
Registration Statement submitted on or after the effective date.
2. Notwithstanding the foregoing Paragraph 1., Full Members shall not be precluded from operating based on
the provisions after the amendment before the date of such application.

Supplementary Provisions
1. This amendment shall come into effect on December 1, 2014 and shall apply to those whose Securities
Registration Statement is newly submitted on or after the effective date, and those whose Securities
Registration Statement is submitted before the effective date shall be according to former precedent.
2. In the Supplementary Provisions of the Financial Instruments Act (Article 38 of the Act. No. 45 of 2013
[Review]) the “government shall review the provisions of each law after its revision (hereinafter in thisarticle referred to as “Each Revised Law”) in principle five years from the effective date, and take measures
as deemed necessary based on the results thereof in consideration of the state of enforcement of each revised
law.”* The amended Articles are as follows:(1) Articles 3-2 and 3-3 are newly established.
(2) Article 5 is amended.
(3) The introductory clause of Article 6, (1) (Points to consider in writing) 9, (2)-(a) Table, and (Points to consider in writing)the former 2, 4, and 5 are amended. The former 2 through 7 are each deferred. 2 is newly established.
(4) The table in Article 6 (2)-(a) is amended.

Supplementary ProvisionThis amendment shall come into effect on December 1, 2014.
* The amended Articles are as follows:
Article 6-2 has been newly established.

–16–

Rules on Display of Advertising, etc. and Provision of Gifts
Established on June 20, 1969
Revised on June 16, 1995
Revised on October 18, 1995
Revised on February 19, 1999
Revised on December 15, 2000
Revised on April 28, 2004
Revised on September 21, 2007
Revised on March 21, 2008
Revised on September 19, 2008
Revised on January 16, 2009
Revised on March 19, 2009
Revised on February 17, 2011
Revised on December 20, 2012

Article 1. Purpose
The purpose of these Rules is to promote the appropriate display of advertising and provision of gifts by setting
forth the display, methods, and matters to be observed with regard to the display of advertisements, etc. and theprovision of gifts relating to investment trusts and investment corporations (hereinafter referred to as“Investment Trusts, etc.”) managed by Full Members (meaning full members as set forth in Article 7,
Paragraph 1, Item 1 of the Articles of Incorporation; the same shall apply hereinafter ) and thereby contribute to
the protection of investors.

Article 2. Definition
In these Rules, the definitions of the terms set forth in the following items shall be as prescribed respectively inthose items.
(1) Display of Advertising, etc.
Display which is conducted based on advertising as it is prescribed in Article 37 of the Financial
Instruments and Exchange Act (Act No. 25 of 1948, hereinafter referred to as the “FIEA” ) and action as
it is prescribed in Article 72 of the Cabinet Office Ordinance on Financial Instruments Business, etc.
(Cabinet Office Ordinance No. 52 of 2007 ) (hereinafter referred to as “Advertising, etc.” ), regarding
the content of business such as an investment management (limited to the business listed in Article 2,
Paragraph 8, Item 12 (a) and Item 14 of the FIEA), trading of beneficiary certificates (meaning
beneficiary certificates, investment securities, or investment corporation bond certificates) and othertransactions, etc. conducted by the Full Members.
(2) Gifts
Economic gain as defined in Paragraph 1 of the Fair Trade Commission Notice No. 3 of 1962,“Designation of Premiums and Display in Accordance with Article 2 of the Act against Unjustifiable
Premiums and Misleading Representations.”

Article 3. Basic Principles
1. When a Full Member(s) conducts any display of Advertising, etc., the Full Member must comply with the–1–fair and equitable principles of transactions in accordance with the attitude for protection of investors andendeavor to maintain dignity as well as to provide accurate information and to display clearly and accurately.
2. When a Full Member(s) provides Gifts, the Full Member must comply with the fair and equitable principlesof transactions, endeavor to maintain dignity, and provide Gifts in an appropriate manner.

Article 4. Prohibited Acts
1. A Full Member shall not display Advertising, etc. that comes under or is likely to come under any one of thefollowing items:(1) That which is contrary to business ethics or the fair and equitable principles of transactions(2) That which causes a Full Member to lose its dignity(3) Advertising, etc. displayed in a way that violates the FIEA, the Act on Investment Trusts and Investment
Corporations (Act No. 198 of 1951), other law and regulations, or the basic terms and conditions of thetrust(4) Advertisement etc. with display that indicates evasion of law(5) That which interferes with fair competition among Full Members(6) That which is arbitrary or excessively subjective(7) That which judgment, evaluation, etc. is to be made, but the basis for such judgment, evaluation, etc. is
not specified(8) That which is misleading to imply that the principal and yield are guaranteed(9) That which may lead to a misunderstanding of the content of the business of an investment trust
management company (including a trust company, etc., which is a trustee company of an investment
trust managed without instructions from a settlor ), trustee, asset custodian company, or sales company(meaning a party that has been registered as a Type I Financial Instruments Business under theprovisions of Article 29 of the FIEA, or a financial institution that has been registered under theprovision of Article 33-2 of the same Act)
(10) That which provides a conclusive judgment on future investment performance(11) Other matters which may affect an investor’s judgment on sound investment
2. When providing Gifts to customers, a Full Member shall not provide Gifts in a way that violates or is likely
to violate the Act against Unjustifiable Premiums and Misleading Representations or any other laws andregulations.
3. A Full Member shall not have any third party directly or indirectly conduct the display of Advertising, etc. inviolation of the provision in Paragraph 1 or provide any Gifts in violation of the provision of the preceding
paragraph.

Article 5. Internal Inspection of Full Members
When displaying Advertising, etc. or providing Gifts, a Full Member must appoint a person in charge ofscreening the display of Advertising, etc. and the provision of Gifts (hereinafter referred to as “Person in chargeof screening advertisements”). The Person in charge of screening advertisements must inspect whether or notthere have been any violations of the provisions in the preceding article.
–2–However, this shall not apply to any display of Advertising, etc. for professional investors (meaning
professional investors as defined in Article 2, Paragraph 31 of the FIEA (excluding persons deemed to becustomers other than professional investors pursuant to the provisions of Article 34-2, Paragraph 5 of the sameact but including persons deemed to be professional investors under the provisions of Article 34-3, Paragraph 4of the same act (including cases where applied mutatis mutandis pursuant to Article 34-4 Paragraph 6 ))).

Article 6. Establishment of Internal Control Systems
Full Members shall establish internal rules concerning the inspection system, inspection standards, the custodysystem for the display of Advertising, etc. and the provision of Gifts, and shall make officers and employees
observe such rules, in order to ensure proper display of Advertising, etc. and provision of Gifts.

Article 7. Investigation of Violations
1. When the Association deems that the display of Advertising, etc. or the provision of Gifts made by a Full
Member or its employees is or is likely to be in violation of the provisions of Article 3 or Article 4, theAssociation may request the Full Member to submit materials and may conduct a hearing into thecircumstances.
2. Full Members shall comply with any requests for submission of materials or hearings provided in thepreceding paragraph.

Article 8. Guidelines for Advertising, etc.
In addition to the matters set forth in these Rules, required matters related to the display of Advertising, etc., by
Full Members shall be set forth in the “Guidelines for Advertising, etc.”

Article 9. Others
Any matters regarding the display of Advertising, etc. or the provision of Gifts not stipulated in these Rules
shall be decided by a resolution of the Board of Directors.

Article 10. Delegation to Competent Committee
1. The Board of Directors shall be entitled to delegate to the Self-Regulation Committee the authority to amend
the Guidelines for Advertising, etc.
2. The Self-Regulation Committee shall promptly report to the Board of Directors any decisions made (limited
to those deemed necessary by the Board of Directors) concerning any delegated matters.

–3–

Supplementary Provisions
1. These Standards for Advertising and Publicity shall come into effect on July 1, 1969.
2. The Board of Directors’ decision of November 30, 1960, “The Association’s Self-Regulating Standards for
Advertising Based on Notices and Directives for Prospectuses,” is repealed.

Supplementary Provisions
1. This amendment shall come into effect on June 16, 1995.
2. Any amendment other than the 10 post-amendment provisions shall come into effect on October 1, 1995.

Supplementary Provisions
1. This amendment shall come into effect on October 18, 1995.
2. Deleted

Supplementary ProvisionThis amendment shall come into effect on February 19, 1999.

Supplementary ProvisionThis amendment shall come into effect on December 15, 2000.

Supplementary ProvisionThis amendment shall come into effect on May 1, 2004.

Supplementary Provisions
1. This amendment shall come into effect on September 30, 2007.
2. The supplementary provisions 2 in connection with the amendment dated October 18, 1995, are repealed asof September 30, 2007.

Supplementary Provisions
This amendment shall come into effect from the date of approval on the amendment of the Operational Rules
by the competent government agency (March 31, 2008).

Supplementary ProvisionThis amendment shall come into effect on October 1, 2008.

Supplementary ProvisionThis amendment shall come into effect on January 16, 2009.

–4–

Supplementary ProvisionThis amendment shall come into effect on March 19, 2009.

Supplementary ProvisionThis amendment shall come into effect on April 1, 2011.

Supplementary ProvisionThis amendment shall come into effect on January 4, 2013.

–5–

Rules on Entrustment of Business, etc. for Resolution of Complaints and Disputes
Established on March 16, 2001
Revised on April 18, 2003
Revised on December 19, 2003
Revised on March 19, 2004
Revised on April 15, 2005
Revised on January 19, 2007
Revised on September 21, 2007
Revised on March 21, 2008
Revised on September 19, 2008
Revised on March 19, 2009
Revised on October 15, 2009
Revised on December 16, 2010
Revised on December 20, 2012
Revised on April 18, 2019
Revised on May 20, 2021
Revised on June 10, 2021

Article 1. Purpose
The purpose of these Rules is, by prescribing necessary matters for responding to complaints from investors
and requests for settlement of disputes concerning the Financial Instruments Business pertaining to theinvestment trust and the investment corporation (hereinafter referred to as “Investment Trust, etc.”) of the
Financial Instruments Intermediary Service Provider (meaning the Financial Instruments Intermediary Service
Provider set forth in Article 4, Paragraph 1, Item 1 of the Articles of Incorporation; the same shall apply
hereinafter) and Full Members (meaning Full Members as defined in Article 7, Paragraph 1, Item 1 of the
Articles of Incorporation; the same shall apply hereinafter) under the provisions of Article 4, Paragraph 1, Items
4 and 5 of the Articles of Incorporation, to secure the confidence of investors and thereby contribute to thesound development of the Investment Trust, etc. and protection of investors by promoting prompt andtransparent responses from a fair and neutral standpoint.

Article 2. Definition
1. The term “Complaint” as used in these rules means investors expressing dissatisfaction such as making arequest that Full Member of The Investment Trusts Association, Japan (hereinafter referred to as the“Association”) or a Financial Instruments Intermediary Service Provider (hereinafter referred to as “FullMembers, etc.”) take action based on their responsibility or obligation.
2. The term “Dispute” as used in these Rules means any complaint provided in the preceding paragraph whichcannot be settled between the parties.

Article 3. Entrustment of Business1. Based on Article 12, Paragraph 2 and Article 13, Paragraph 2 of the Operational Rules, the Association shallentrust the services set forth in the following items to the Non-Profit Organization, Financial Instruments
Mediation Assistance Center (hereinafter referred to as the “Center”).
(1) To settle complaints from investors concerning the business of Financial Instruments Business, etc.
–1–

pertaining to Investment Trusts, etc. conducted by Full Members, etc.
(2) When there is any dispute concerning the business of Financial Instruments Business, etc. pertaining toInvestment Trusts, etc. conducted by Full Members, etc., mediation shall be conducted to resolve suchdispute.
2. The scope of business entrustment for complaint resolution or mediation, the method of bearing expenses,
and other necessary matters concerning business entrustment in the preceding paragraph shall be determinedin accordance with an agreement between the Association and the Center.
3. Incidental to the implementation of the business in Paragraph 1 above, the Association may have the Center
provide investors with consultation services on investment trusts, etc.
4. In addition to what is provided for in these Rules, matters necessary for complaint resolution and mediation
services to be entrusted to the Center shall be as provided for in the Rules of the Center.

Article 4. Participation of the Association
Notwithstanding the provisions of the preceding article, the Association may, if it deems it necessary,participate in the services set forth in Paragraph 1, Item 1 of the preceding article in the manner prescribed in
the Rules of the Center.

Article 5. Responsibilities of Full Members, etc.
1. Upon receipt of notification from the Center, Full Members, etc., shall promptly contact the person who has
filed the complaint and shall respond in good faith to this and endeavor to resolve such complaint.
In the event that the Association is involved pursuant to the provision of Article 4, the same shall apply to any
notice from the Association.
2. Full Members, etc., must cooperate in good faith in the business of the Center and the Association in order topromote the resolution of complaints or disputes from investors.
3. Full Members, etc. shall cooperate with the Center in settlement of any complaint from the investor if
requested by the Center to explain the circumstances, express an opinion, reply to the investor, directly
negotiate with the investor, report the result of the response, etc. in accordance with the Rules of the Center.
4. Full Members, etc., shall take complaints seriously, identify the reason for the occurrence, etc., and endeavor
to prevent any recurrence by taking corrective measures, etc.

Article 6. Participation in Mediation Proceedings, etc.
1. In the event that an investor of Full Members, etc. files a request for mediation with the Center under anagreement, Full Members, etc., who are the counterparty to such dispute shall accept the Center’s mediation
for such dispute, participate in such mediation proceedings, and shall also bear the obligations set forth in thefollowing items:(1) To submit a written answer with the Center in accordance with the Rules of the Center.
(2) To give explanations in person or in writing or submit materials at the request of the Center in accordancewith the Rules of the Center. (Excluding cases where the Full Members, etc., have a justifiable reason
not to do so.)–2–

(3) To pay the user fee per mediation holding day in accordance with the Rules of the Center.
2. In the event that Full Members, etc., file an application for mediation with the Center against an investor as
the other party with regard to a dispute concerning the Financial Instruments Business, etc. pertaining to an
Investment Trust, etc., that are conducted by Full Members, etc., such Full Members, etc., shall pay the
mediation application fee.

Article 7. Measures in the Case of Recommendation for Mediation Proposals
If a mediator of the Center prepares a mediation proposal in accordance with the Rules of the Center, presents it
to both parties, and recommends their acceptance thereof, the Full Members, etc. shall comply with theprovisions of the Rules of the Center.

Article 8. Dissemination
1. The Association and the Full Members, etc., shall endeavor to raise awareness of the services of the Center.
2. When the Association receives a report from the Center on the status of consultation, complaint resolution, or
mediation conducted by the Center, the Association shall inform the Full Member of a summary of thematters, except for matters related to the secrecy of the parties concerned.
3. The Association shall keep Full Members, etc., informed of a summary of the status of consultations andsettlement of complaints made by the Association in connection with the provision of Article 4, except for
matters related to the secrecy of the parties concerned, and shall also make such information public on aregular basis.

Article 9. Notification of Contact Point
1. Full Members, etc. shall notify the name of the department serving as the contact point for handlingcomplaints and its telephone number (hereinafter referred to as the “Contact Point”) via “Electronic
Notification and Storage System for Notifications from Association Members” (hereinafter referred to as the“The Investment Trusts Association’s Notification Management System”) using Attached Form 1.
2. When there has been any change in the Contact Point as set forth in the preceding paragraph, such change
shall be notified using Attached Form 2 through via the Notification Management System of Investment
Trusts Association.

Article 10.

Reports on Compliance with Rules by Full Members, etc.

1. The Association may receive reports from the Center on the status of compliance by Full Members, etc., withthe laws regarding the services set forth in Article 3, Paragraph 1, and the Rules of the Center.
2. Upon receipt of the report set forth in the preceding paragraph from the Center, the Association shall takenecessary measures based on the Rules regarding the operation of the Disciplinary Committee and thedisposition of members.

Article 11.

OthersAny matters not provided for in these Rules on Entrustment of Business, etc., for Resolution of Complaints and–3–Disputes may be decided by resolution of the Board of Directors.

Supplementary Provisions
1. These Rules shall come into effect on March 16, 2001.
2. From the date above, the resolution of the Board of Directors of November 27, 1998, entitled “Approach to
Handling Complaints,” is abolished.

Supplementary ProvisionThis amendment shall come into effect on April 18, 2003.
However, the amended provisions of Article 12 through Article 16 shall come into effect from the date of theconclusion of the agreement with the bar association.

Supplementary Provision
The amended provisions of Article 15 and Article 15-2 shall come into effect from the date of conclusion of theagreement with the bar association.
* The date of agreement with the bar association is March 1, 2004.

Supplementary ProvisionThis amendment shall come into effect on April 1, 2004.

Supplementary ProvisionThis amendment shall come into effect on April 15, 2005.

Supplementary ProvisionThis amendment shall come into effect on January 19, 2007.

Supplementary ProvisionThis amendment shall come into effect on September 30, 2007.

Supplementary ProvisionThis amendment shall come into effect on March 21, 2008.

Supplementary ProvisionThis amendment shall come into effect on October 1, 2008.

Supplementary ProvisionThis amendment shall come into effect on March 19, 2009.

Supplementary Provisions–4–

1. This amendment shall come into effect from a date to be determined separately by the Association(hereinafter referred to as the “Effective Date”).
2. By-laws on Rules for Resolution of Complaints, etc. (Established April 18, 2003) shall be abolished as of theEffective Date with the revision of these Rules.
3. Notwithstanding the provisions of the preceding two paragraphs, the provisions prior to amendment andabolishment shall remain in effect with respect to mediation requested by the Association on the day before
the Effective Date and for which services have been entrusted to the Arbitration Center provided in Article
12 prior to amendment until all cases regarding such mediation are completed. The same shall apply to any
complaints which have been made to the Association on the day before the Effective Date.
* The Effective Date shall be the date of commencement of operations of the Non-Profit Organization, Financial Instruments
Mediation Assistance Center (February 1, 2010).

Supplementary ProvisionThis amendment shall come into effect on the date to be determined separately by the Association (scheduled to
be April 1, 2011).

Supplementary ProvisionThis amendment shall come into effect on January 4, 2013.

Supplementary ProvisionThis amendment shall come into effect on May 1, 2019.
* Necessary arrangement in connection with the change of era nameSupplementary ProvisionThis amendment shall come into effect on June 1, 2021.
* The amended Articles are as follows:- Article 9, Paragraph 1 and Paragraph 2- Attached Form 1 and Attached Form 2 specified in the respective paragraphs of the same Article.

Supplementary ProvisionThis amendment shall come into effect on the date of approval (July 1, 2021) by the competent government
agency for amendments to Articles of Incorporation.
* The amended Articles are as follows:- Amendment of Article 3 and Article 5 through Article 10 in connection with the amendment of Article 1 and Article 2- Article 9, Paragraph 1 and Paragraph 2–5–

Attached Form 1

Application Date

MM/DD/YYYY

To: Chairperson of the Investment Trusts Association, Japan

Trade Name orName
Representative

Notification Form for Contact Point for Handling Complaints

We hereby notify the Contact Point for Handling Complaints pursuant to the provisions of Article 9,
Paragraph 1 of the “Rules on Entrustment of Business, etc., for Resolution of Complaints and Disputes.”

Complaint Handling Department
Telephone Number–6–

Attached Form 2

Application Date

MM/DD/YYYY

To: Chairperson of the Investment Trusts Association, Japan

Trade Name orName
Representative

Notification Form for Change of Contact Point for Complaints

We hereby notify the change of Contact Point for Handling Complaints pursuant to the provisions of Article
9, Paragraph 2 of the Rules on Entrustment of Business, etc., for Resolution of Complaints and Disputes.

After Change

Before Change

Complaint Handling
Department
Telephone Number

Date of Change–7–

MM/DD/YYYY

Rules for Reporting on Investment Trusts and Investment Corporations
Established on March 19, 2004
Revised on July 16, 2004
Revised on September 21, 2007
Revised on May 16, 2008
Revised on September 19, 2008
Revised on May 24, 2012
Revised on December 20, 2012
Revised on November 15, 2018
Revised on April 17, 2020

Article 1.

PurposeThe purpose of these Rules is to set forth the date of submission, reports, data, and other reported matters to besubmitted to the Association concerning assets and other matters of the investment trusts which investment
trust management companies as defined in Article 2, Paragraph 11 of the Act on Investment Trusts andInvestment Corporations (Act No. 198 of 1951) (hereinafter referred to as “Management Companies”) andasset management companies as defined in Paragraph 21 of the same Article (hereinafter referred to as “AssetManagement Companies” ), and trust companies, etc. that act as trustee companies for investment trusts
managed without instructions from the settlor as defined in Article 47, Paragraph 1 of the same Act (hereinafterreferred to as “Trust Companies, etc.”) give management instructions for or manage and investment
corporations for which management is outsourced (hereinafter referred to as “Investment Trusts, etc.”).
Article 2.

Periodic Report of Investment Trusts, etc.

1. The Management Companies and the Trust Companies, etc. shall prepare the following reports and data
(hereinafter referred to as “Reports, etc.”) on investment trusts, etc. (excluding investment trusts andinvestment corporations prescribed in Article 3, Paragraph 1 of the Rules on Real Estate Investment Trusts
and Real Estate Investment Corporations (hereinafter referred to as “REIT, etc.”)) as of the end of eachmonth and submit this to the Association.
(1) Table showing change in assets(2) Table showing principal(3) Table showing income distribution and trust fees
(4) List of funds(5) Table showing management status(a)

Summary table(b)

Surplus funds schedule(c)

Schedule of other securities (by type)(d)

Schedule of incorporation of domestic investment trusts and REITs listed on domestic stock
exchanges(e)Schedule of assets denominated in foreign currencies (by type)(f)

Schedule of assets denominated in foreign currencies (by currency)(g)Statement of other securities (by foreign currency denomination type)–1–

(6) Table showing the purchase and sale of stocks (domestic)(7) Table showing the purchase and sale of stocks (by currency)(8) Table showing the purchase and sale of public and corporate bonds (domestic)(9) Table showing the purchase and sale of public and corporate bonds (foreign)(10) Table showing the purchase and sale of convertible corporate bonds with stock acquisition rights(domestic)(11) Schedule by industry(12) Fund summary(13) Schedule of the balance of public and corporate bonds by type(14) Table showing option trading (domestic)(15) Table showing option trading (foreign)(16) Table showing futures transactions (domestic)(17) Table showing futures transactions (foreign)(18) Establishment amount and cancellation amount (during the month) by business category and total of net
assets (at the end of the month)(19) Report on public offering for beneficiary certificates (closed-end stocks and investments and long-term
public and corporate bond investment trusts)(20) Settlement and redemption funds(21) Mother fund information(22) Sales company and commission(23) Other Reports, etc. set forth in the By-laws
2. The format of the Reports, etc., prescribed in each item of the preceding paragraph, and the date ofsubmission to the Association shall be set forth in the By-laws.
* Article 2 of the By-laws

Article 2-2. Report on the URL, etc., of the Delivery Prospectus
The Management Companies and the Trust Companies, etc., shall report to the Association the URL of the
Delivery Prospectus posted on its website or the PDF data of the Delivery Prospectus and other necessary
matters concerning the investment trust. The subject of the report, the matters to be reported, and the date ofsubmission shall be set forth in the By-laws.
* By-laws Article 2-2

Article 3.

Periodic Reporting of REIT, etc.

1. The Asset Management Companies shall prepare and submit to the Association the following Reports, etc.
on REIT, etc. The end-of-month information set forth in Item 2 shall be prepared as of the end of each month,and the settlement and financial status set forth in Item 3 (the status of individual incorporated real estate set
forth in Item 3-c shall be limited to the status of holding at the end of the settlement period) shall be prepared
as of the end of the settlement period.
(1) Information specific to REIT
(2) Information on REITs at the end of the month–2–

(a) Change in assets(b) Status of public offering and secondary distribution, etc.
(c) Status of all incorporated real estate (holding status)(d) Status of purchase and sale of assets(3) Settlement and financial status of REITs(a) Financial status(b) Information on the composition of managed assets(c) Individual status of incorporated real estate (acquisition, sale and holding status at the end of thesettlement period)
2. The format of the Reports, etc., prescribed in the preceding paragraph and the date of submission to the
Association shall be set forth in the By-laws.
* Article 3 of the By-laws

Article 4.

By-laws

Necessary matters for the enforcement of these Rules shall be stipulated in the By-laws.
Article 5.

OthersAny matters regarding the reports for Investment Trusts, etc., not stipulated for in these Rules may be decided
by a resolution of the Board of Directors.
Article 6.

Delegation to Competent Committee

1. The Board of Directors shall be entitled to delegate to the Self-Regulation Committee the authority to amend
any By-laws relating to these Rules.
2. The Self-Regulation Committee shall promptly report to the Board of Directors, the contents of any
decisions made by the Self-Regulation Committee with respect to any matters delegated thereto (limited todecisions deemed necessary by the Board of Directors.)

Supplementary Provision
These Rules shall come into effect on April 1, 2004.

Supplementary ProvisionThis amendment shall come into effect on April 1, 2004.

Supplementary ProvisionThis amendment shall come into effect on September 30, 2007.

–3–

Supplementary ProvisionThis amendment shall come into effect on a date to be determined separately by the Board of Directors(February 18, 2010).
(The date of implementation was decided at the Board of Directors held on February 18, 2010.)

Supplementary ProvisionThis amendment shall come into effect on October 1, 2008.

Supplementary Provision
These amendments shall be effective as of May 24, 2012.

Supplementary ProvisionThis amendment shall come into effect on January 4, 2013.

Supplementary ProvisionThis amendment shall come into effect on November 15, 2018.
* The amended Articles are as follows:
Article 2, Paragraph 1, Items 13, 20 and 21 are deleted. Numbering reorganized accordingly.

Supplementary ProvisionThis amendment shall come into effect on April 17, 2020.
* The amended Articles are as follows:
Article 1, Article 2, Paragraph 1, Item 2-2–4–

By-Laws on Rules for Reporting on Investment Trusts and Investment
Corporations
Established on March 19, 2004
Revised on July 16, 2004
Revised on May 19, 2005
Revised on January 19, 2007
Revised on May 16, 2008
Revised on September 19, 2008
Revised on March 19, 2009
Revised on May 24, 2012
Revised on December 20, 2012
Revised on November 15, 2018
Revised on April 18, 2019
Revised on July 18, 2019

Article 1.

PurposeThe By-laws set forth necessary provisions for implementing the Rules for Reporting on Investment Trusts andInvestment Corporations (hereinafter referred to as the “Rules”).
Article 2.

Form, etc. of Reports, etc. for Investment Trust, etc.

The form and the submission date of Reports, etc. for Investment Trusts, etc. prescribed in Article 2, Paragraph
2 of the Rules, shall be the form and submission date set forth below:
Name of Reports, etc.
1. Table showing change in assets

Report Form
Attached Table 1

2. Table showing principal
3. Table showing income distribution and trust fees
4. List of funds
5. Table showing management status(a) Summary Table(b) Surplus funds schedule(c) Statement of other securities (by type)(d) Schedule of incorporation of domestic investment trusts
and REITs listed on domestic stock exchanges

Attached Table 2
Attached Table 3
Attached Table 4(e) Schedule of assets denominated in foreign currencies (bytype)

Attached Table 9(f) Schedule of assets denominated in foreign currencies (bycurrency)(g) Statement of other securities (by foreign currency
denomination type)
6. Table showing the purchase and sale of stocks (domestic)

Attached Table 10

Same as above
Same as above
Same as above
In principle, the 6thbusiness day of thefollowing month.
In principle, the 4th
business day of thefollowing month.
Same as above

Attached Table 11Same as above

Attached Table 12

Same as above

7. Table showing the purchase and sale of stocks (bycurrency)
8. Table showing the purchase and sale of public andcorporate bonds (domestic)
9. Table showing the purchase and sale of public andcorporate bonds (foreign)

Attached Table 13

Same as above

Attached Table 14

Same as above

Attached Table 15

Same as above–1–

Attached Table 5
Attached Table 6
Attached Table 7
Attached Table 8

Date of Submission
In principle, the 4th
business day of thefollowing month.
Same as above
Same as above
Same as above10. Table showing the purchase and sale of convertible
corporate bonds with stock acquisition rights (domestic)

Attached Table 16

Same as above

11. Schedule by industry
12. Fund Summary

Attached Table 17
Attached Table 18

13. Schedule of the balance of public and corporate bonds bytype

Attached Table 19

14. Table showing option trading (domestic)
15. Table showing option trading (foreign)
16. Table showing futures transactions (domestic)
17. Table showing futures transactions (foreign)
18. Establishment amount and cancellation amount (during
the month) by business category and total of net assets (at theend of the month)
19. Report on public offering for beneficiary certificates(closed-end stocks and investments and long-term public andcorporate bond investment trusts)

Attached Table 20
Attached Table 20
Attached Table 21
Attached Table 21
Attached Table 22

Same as above
When a trust is established,changed, and re-divided (ormerged)In principle, the 4th
business day of thefollowing month.
Same as above
Same as above
Same as above
Same as above
Same as above

Attached Table 23

The 15th business day of
the following month

20. Settlement and redemption funds

Attached Table 24

21. Mother fund information

Attached Table 25

22. Sales company and commission

Attached Table 26

In principle, the 15th
business day of everymonth
In principle, the 4th
business day of thefollowing month.
When a trust is establishedor changed

Article 2-2. Subject, etc., of the Report on the URL, etc. of the Delivery Prospectus
The report subject, reported matters, and the submission date set forth in the By-laws as provided in the Article
2-2 of the Rules shall be as follows:
Report subject
The report subject shall be the Delivery
Prospectus for publicly offered investment
trusts (open type). However, the following
investment trusts may be excluded from thereport. In the event that a report is not to be
made, the name of such investment trust, theAssociation Fund Code, and the applicablereason (any of (a) through (d) below) shall bereported to the Association by e-mail.
(a) Investment trusts which can be purchased
only through salary deduction(b) Investment trusts exclusively for DefinedContribution Pension(c) Asset-building payment type investment
trusts(d) Investment trusts, etc. exclusively for
wrap and SMA for the purpose ofproviding comprehensive asset
management and management services
based on a discretionary investment
contract between an investor and a sales
company

Reported matters
1. URL of Delivery Prospectus
2. Does the URL has an expiration
date (yes/no)
3. If “yes” in 2 above, theexpiration dateOr
1. PDF data of the Delivery
Prospectus
2. Expiration date of 1 above–2–

Date of Submission
1. When establishing a new
trust
Until the commencement
date of the initial offering
However, in the case of
self-establishment, until thedate of self-establishment
2. At the time of revision of the
Delivery Prospectus
Until the expiration date of
the effective period of the
pre-revision Delivery
Prospectus

Article 3.

Form, etc. of Reports, etc. for REIT, etc.

The form and the submission date of Reports, etc. for REIT, etc. prescribed in Article 3, Paragraph 2 of theRules, shall be the form and submission date set forth below:
Name of Reports, etc.
1. Information specific to REIT

Report Form
Attached Table 29

Date of Submission
In case of new registration,
before the start of theoffering and each time theregistered information ischanged

2. Information on REITs at the end of the month(a) Change in assets

Attached Table 30(b) Status of public offering and secondary distribution, etc.

Attached Table 31(c)

Attached Table 32

From the 20th business day
to the end of the following
month
From the 20th business day
to the end of the monthfollowing the month inwhich the offering, etc. is
madeFrom the 20th business day
to the end of the following
monthSame as above

Status of all incorporated real estate (holding status)(d) Status of purchase and sale of assets
3. Settlement and Financial Status of REITs(a) Financial status

Attached Table 33(b) Information on the composition of managed assets

Attached Table 35(c) Individual status of incorporated real estate (acquisition,
sale and holding status at the end of the settlement period)

Attached Table 36

Attached Table 34

Supplementary Provision
These By-laws shall come into effect on April 1, 2004.

Supplementary ProvisionThis amendment shall come into effect on April 1, 2004.

Supplementary ProvisionThis amendment shall come into effect on May 19, 2005.

–3–

Within 3 months from thelast day of the month inwhich the settlement datefalls
Same as above
For acquisition or sale, eachtime it occurs
For holding status at theend of the settlement
period, within 3 months
from the last day of themonth in which thesettlement date falls

Supplementary ProvisionThis amendment shall come into effect on January 19, 2007.

Supplementary Provisions
This amendment shall come into effect on the dates set out below.
1. The revision of the report form (revision of the form of the report concerning the incorporation of foreign realestate only) of the attached table concerning the “status of all incorporated real estate (holding status),” the“purchase and sale of assets,” and the “individual status of incorporated real estate” of REIT, etc., shall be
implemented from May 16, 2008, and applied from the report of June 2008.
However, if foreign real estate has not been incorporated, the pre-revision report form may be used from theeffective date until a date fixed by the Board of Directors.
2. Any amendments other than those provided in 1 above shall come into effect on a date* to be determined
separately by the Board of Directors.

Supplementary Provisions
1. This amendment shall come into effect from a date* separately determined by the Board of Directors.
However, any amendments to “26 Advance offering report” and “27 Advance offering plan” in the table in
Article 2 and Article 3 (the contents of the advance offering plan) shall come into effect from October 1,
2008.
2. In Attached Table 26-2, Attached Table 26-3, Attached Table 27-2 and Attached Table 27-3 in the
pre-revision report form prior to the partial revision of the “By-laws on Rules for Periodic Reporting ofInvestment Trusts and Investment Corporations” (Board of Directors resolution on May 16, 2008), the term“member certificate” shall be replaced with “Supporting Member” and the term “member sales company”
shall be replaced with “Supporting Member sales company.” This amendment shall come into effect from
October 1, 2008, and it will apply from the report for the end of October 2008.

Supplementary ProvisionThis amendment shall come into effect on March 19, 2009.

* (Resolution of the Board of Directors of February 18, 2010)
1. Effective date of the revised rules, etc.
The effective date will be “February 18, 2010.”
Article 2 (Form, etc. of Reports, etc. for Investment Trust, etc.) of the By-laws after amendment shall apply
from the report for February 2010, and Article 3 (Form, etc. of Reports, etc. for REIT, etc.) of the By-laws
shall apply from the report for January 2010.
However, the reports by Attached Table 18 (Fund Summary) and Attached Table 28 (Sales Company andCommission) set forth in Article 2 of the By-laws after amendment shall apply to funds, etc., established orchanged after the effective date.
2. Measures for parallel operation–4–

In order to implement parallel operation of the new and old systems, reports based on Article 2 of the
By-laws prior to revision (excluding reports set forth in No. 5, 6, and 7 (b), 16, 26, and 27 in the table of
Article 2 of the By-laws) are requested from the effective date of the revised rules, etc. until March 31, 2010.
However, reports on investment trusts to be newly established by the end of February 2010 in pre-revision
Attached Table 19 (Fund Summary) shall be made by February 26, 2010.

Supplementary Provision
These amendments shall be effective as of May 24, 2012.

Supplementary ProvisionThis amendment shall come into effect on January 4, 2013.

Supplementary ProvisionThis amendment shall come into effect on November 15, 2018.
However, the revision of the profit distribution amount provided in Attached Table 1 and Attached Table 3 as
set forth in Article 2 shall come into effect from February 28, 2019, and shall be applied from the report ofMarch 2019.
* The amended Articles are as follows:- Points to consider in Attached Table 1 and items and points to consider in Attached Table 3 shall be revised.
- Items in Attached Table 5 to Attached Table 7, Attached Table 9, Attached Table 11, Attached Table 14, Attached Table
15, and Attached Table 22 after amendment shall be revised.
- Pre-revision “Attached Table 19, Attached Table 24-1, and Attached Table 24-2” shall be deleted, and deviation in table
numbers shall be corrected

Supplementary ProvisionThis amendment shall come into effect on May 1, 2019.
* Necessary arrangement in connection with the change of era nameSupplementary Provisions
1. This amendment shall come into effect from December 23, 2019, and will apply to any new investment
trusts established after the effective date.
2. This amendment shall apply from January 31, 2020, for investment trusts established prior to the effective
date of this amendment (other than redeemed investment trusts). Full Members shall not be precluded
from operating based on the provisions after the amendment until the date of such application.
* The amended Articles are as follows:- 45-50 added to Attached Table 18 “Fund Summary Items.” 2. “Matters to be reported regarding privately placed
investment trusts” has been newly added to the section “Points to consider in reporting,” and subsequent items have beenarranged accordingly.

–5–

Attached Table 1

Table Showing Change in Assets(During MM/YYYY)
Company name:Co., Ltd.
(Unit: Yen)

Item

Type and Name of Trust Property
Total Amount (I + II)[Stock Investment Trust]
Unit Type Total‐ Breakdown of Unit TypeOpen Type Total‐ Breakdown of Open TypeI. Total Stock Investment Trusts

Total Net Asset
Early CancellationNet
at the End of Established
Redemption Changes in
the Previous Amount Cancellation
Amount
Fund
Ratio
Month
AmountAmountIncomeDistribution
AmountBalance at the End of
Net Assets
Changes in
the Month
Investment
Changes in
Number of Total Net
AmountPercentage
AmountFunds
Assets[Public and Corporate Bond Investment
Trust]
Unit Type Total‐ Breakdown of Unit TypeOpen Type Total‐ Breakdown of Open Type
II. Total Public and Corporate Bond
Investment Trust
Long-Term Public and Corporate Bond
Investment Trust⋮[Privately Placed Investment Trust]
Stock Investment Trusts (Private
Placement)‐ Breakdown of Stock Investment
TrustsPublic and Corporate Bond Investment
Trusts (Private Placement)‐ Breakdown of Bond Investment
TrustsTotal Amount (Private Placement)(Points to consider in reporting)
1. Investment trusts, etc. are to be reported (excluding mother funds).
2. The total amount of net assets at the end of the preceding month, the cancellation rate, net changes in fund amount, income distribution amount, changes in investment amount, changes
in net assets amount and percentage and the number of funds shall be calculated on the Association System.

–6–

Attached Table 2

Table Showing Principal(During MM/YYYY)
Company name:Co., Ltd.
(Unit: Yen)

Item Balance at the Endof the Previous
Type and Name of Trust PropertyMonthTotal Amount[Stock Investment Trust]

Inception

Early
Balance at the End
Redemption
Cancellationof the Month

Increase or
decrease

Unit Type Total
Open Type Total
Total Amount of Stock Investment
Trusts[Public and Corporate Bond
Investment Trust]
Total Amount of Public andCorporate Bond Investment Trusts

1.
2.

(Points to consider in reporting)
Investment trusts and Investment corporations for publicly offered are to be reported. The investment corporation will report only the balance at the end of the month.
The balance at the end of the previous month, changes in the amount shall be calculated on the Association System.

–7–

Attached Table 3

Table Showing Income Distribution Amount and Trust Fees
(End of MM/YYYY)

Company name:Co., Ltd.
(Unit: Yen)

Item
Income Distribution Amount

Trust Fees

Type and Name of Trust Property
Total Amount (I + II)[Stock Investment Trust]
Unit Type Total
Open Type Total
I. Total Stock Investment Trusts[Public and Corporate Bond Investment
Trust]
Long-Term Public and Corporate Bond
Investment Trust… …
II. Total Public and Corporate Bond
Investment Trust[Privately Placed Investment Trust]
Stock Investment Trusts (Private
Placement)
Public and Corporate Bond Investment
Trusts (Private Placement)
Total Amount (Private Placement)(Points to consider in reporting)
1. With respect to investment trusts (excluding mother funds), each amount incurred during the current month(including those recorded as accrued) will be reported. Trust fees will be reported only for publicly offeredinvestment trusts.

–8–

Attached Table 4

List of Funds(MM/DD/YYYY)
Company name:Co., Ltd.

1. Unit Type
Remaining Principal

Name of Trust Property
Trust Period
Year/Month

ClosedTerm

Closing
Date

Date Established

Distribution
InitialPeriodEstablished
AmountRatio of Incorporation
Investment
Trust
Securities
Total Net
AssetsAmountPercentage

Millions ofyenYear/Month MM/DD/YYYY (MM/DD)

Millions ofyen%Millions ofyen%

Public andCorporate
Bonds

Shares%Beneficiary CertificatesBase Value%

End of the Month
Yen

Total
Number ofDistribution
BeneficiaryYears inMonth-on-MonthAmount since Yield since Management
ChangeEstablishment Establishment
Yen
Yen
%
Year/s

2. Open Type

Name of Trust Property

Ratio of Incorporation(Trust Moneyin Average) Total Net
Trust Money
AssetsPublic andBalance
Shares Corporate Investment
Millions ofMillions of Millions of
Bonds Trust Securities
yen
yen
yen
%
%
%

Initial Limit on Trust
Established
Money
RemainingAmountAmountPrincipal
Trust Period Date Established Closing Date
Year/Month MM/DD/YYYY(MM/DD)

Millions ofyenMillions ofyen

Beneficiary CertificatesBase Value

Total
Distribution Number of Years
Month-on-Month Amount for the in Management
End of the Month
ChangePast 3 Years
Yen
Yen
Yen
Year/s

3. Public and Corporate Bonds

Name of Trust Property
Trust Period
Year/Month

ClosedTerm

InitialEstablished Limit on
Trust Money
AmountDistribution
AmountPeriodDate EstablishedYear/Month MM/DD/YYYY

Millions ofyenMillions ofyenRemaining
Principal

Trust
Money
BalanceMillions of Millions ofyenyen

Ratio of
Incorporation
Public andCorporate
Total Net Assets
Bonds
Millions of yen%

Beneficiary CertificatesBase Value

Fluctuation
Rate since
End of the Month-on-Month Establishment
Month
ChangeYen
Yen%

4. Mother Funds
InitialLimit on Trust
Established
Money
RemainingAmountAmountPrincipal

Name of Trust Property
Trust Period
Year/Month

Total Net
AssetsDate Established
MM/DD/YYYY

Public andCorporate Investment
Trust
bonds
Securities

SharesMillions ofyenMillions ofyenMillions ofyen

Beneficiary CertificatesBase Value

Ratio of Incorporation
Trust Money
BalanceMillions ofyenMillions of
yen

–9–

%

%

%

Investment Investment Investment
End of the Month-on-Month Yield since Yield for the Yield for the
MonthChangeEstablishment Past 1 Year Past 3 Years
Yen
Yen
%
%
%

(Points to consider in reporting)
1. This is a report on publicly offered investment trusts and mother funds.
2. The report on publicly offered investment trusts will cover the balance of trust money (open type only) andthe incorporation ratio and those on mother funds will cover the balance of trust money, the incorporation
ratio and the total amount of net assets, and other matters shall be calculated on the Association System.
3. The report on the baby fund will cover the ratio for direct incorporation and the substantial incorporation
ratio prorated in proportion to the ratio of shareholding in the mother fund will be calculated on the
Association System.

–10–

Attached Table 5
Table Showing Management Status(End of MM/YYYY)
Company name:
1. Summary Table

Co., Ltd.
(Unit: Yen)

Item

Type and Name of Trust Property

AssetsStock
Public and Of which, Investment
Stock Subscription Corporate Convertible
Trust Investment Other
Bonds with Beneficiary Securities Assets
Certificates Warrant
Bond
Stock
Certificates Certificates
Certificates
Acquisition

Total
(A)

Loss or
Valuation Valuation
Total
Total Net Assets
gain on Gain or Loss Loss or
Number of Base Value of
Total
of Trust Property
valuation on Futures
Gain onUnits ofBeneficiary
Liabilities(F)ofTransactions, Foreign
Beneficial Certificates(B)(A)securities
etc.
Exchange
Interest[F/G](B)+(C)+(D)+(E)
(C)
(D)
(E)
(G)

Total Amount (I + II)[Stock Investment Trust]
Unit Type Total
Open Type Total
I. Total Stock Investment Trusts[Public and Corporate Bond
Investment Trust]Long-Term Public and Corporate
Bond Investment Trust⋮

II. Total Public and Corporate
Bond Investment Trust[Privately Placed Investment
Trust]
Stock Investment Trusts (Private
Placement)
Public and Corporate Bond
Investment Trusts (Private
Placement)
Total Amount (Private
Placement)(Points to consider in reporting)
1. Investment trusts (including mother funds) will be reported.
2. The total number of units of beneficial interest shall be, in principle, the number of units converted into 10,000 yen per unit (the number of units
displaying base value).
3. The total amount of assets, the total amount of net assets of trust property, the base value of beneficiary certificates, etc. shall be calculated by the
Association System.
4. With respect to the baby fund, the amount of assets directly incorporated shall be reported, and the amount of substantial incorporation prorated in proportion to the ratio of shareholdingsin the mother fund shall be calculated by the Association System.

–11–

Attached Table 6

Surplus Funds Schedule(As of the end of MM/YYYY)
Company name:Co., Ltd.
(Unit: Yen)

Item
Deposit

Of which, Certificates Money Trust

Call Loans

Discounted Bills

Total

Type and Name of Trust Property
Total Amount (I + II)

of Negotiable Deposit[Stock Investment Trust]
Unit Type Total
Open Type Total
I. Total Stock Investment Trusts[Public and Corporate Bond Investment Trust]II. Total Public and Corporate Bond Investment
Trust
Money Reserve Funds[Privately Placed Investment Trust]
Stock Investment Trusts (Private Placement)
Public and Corporate Bond Investment Trusts(Private Placement)
Total Amount (Private Placement)(Points to consider in reporting)
1. Investment trusts (including mother funds) will be reported.
2. The total is to be calculated on the Association System.
3. With respect to the baby fund, the amount directly incorporated shall be reported, and the amount of substantial incorporation prorated in proportion to the ratio of shareholdings in the mother fund shall be calculated on the Association System.

–12–

Attached Table 7
Schedule of other securities (by type)(As of the end of MM/YYYY)
Company name:Co., Ltd.
(Unit: Yen)

Item

CD

CP

Foreign Loan
Trust Beneficiary Securities

Loan Bond
Beneficial interests

Total

Type and Name of Trust Property

Total Amount (I + II)[Stock Investment Trust]
Unit Type Total
Open Type Total
I. Total Stock Investment Trusts[Public and Corporate Bond
Investment Trust]II. Total Public and Corporate Bond
Investment Trust
Money Reserve Funds[Privately Placed Investment Trust]
Stock Investment Trusts (Private
Placement)
Public and Corporate Bond
Investment Trusts (Private
Placement)
Total Amount (Private Placement)(Points to consider in reporting)
1. Investment trusts (including mother funds) will be reported.
2. The total is to be calculated on the Association System.
3. With respect to the baby fund, the amount directly incorporated shall be reported, and the amount of substantial incorporation prorated in proportion
to the ratio of shareholdings in the mother fund shall be calculated on the Association System.

–13–

Attached Table 8
Schedule of incorporation of domestic investment trusts and REITs listed on domestic stock exchanges(As of the end of MM/YYYY)
Company name:Co., Ltd.
(Unit: Million Yen)

Item
Domestic Investment Trust
Securities (Publicly Offered
Investment Trust)Domestic Investment Trust
Securities (Privately Placed
Investment Trust)Domestic Listed Real Estate
Investment Trust Investment
Securities

Type and Name of Trust Property

Total AmountPublicly Offered Stock
Investment Trust
Privately Placed Stock
Investment Trust(Points to consider in reporting)
1. Publicly offered stock investment trusts and privately placed stock investment trusts will be reported.
2. The total is to be calculated on the Association System.

–14–

Total

Attached Table 9

Schedule of Assets Denominated in Foreign Currencies (By Type)(As of the end of MM/YYYY)
Company name:
Item

Type and Name of Trust Property

AssetsOf which,
Stock
Public and Convertible Investment
Stock
Subscription Corporate Bonds with
Trust
Investment
Certificates Warrant
Bond
Stock
Beneficiary Securities
Certificates Certificates Acquisition Certificates
Rights

Deposit

Other Assets Total (A)Co., Ltd.
(Unit: Yen)

Total
Valuation Valuation Loss
Amount ofLoss oror Gain on
Total
Net Assets
Gain on Foreign Futures
Liabilities
DenominatedForeign Transactions,(B)
in Foreign
Securities
etc.
Currencies(C)(D)(A)-(B)+(D)Total (I + II)[Stock Investment Trust]
Unit Type Total
Open Type Total
I. Total Stock Investment Trusts[Public and Corporate Bond Investment
Trust]
Long-Term Public and Corporate Bond
Investment Trust
II. Total Public and Corporate Bond
Investment Trust[Privately Placed Investment Trust]
Stock Investment Trusts (Private
Placement)
Public and Corporate Bond Investment
Trusts (Private Placement)
Total Amount (Private Placement)(Points to consider in reporting)
1.With regard to the publicly offered investment trust and the mother fund, the amount converted at the exchange rate used for calculation of the trust property at the end of the current monthshall be reported.
2.The total amount of assets and the total amount of net assets denominated in foreign currencies shall be calculated on the Association System.
3.With respect to the baby fund, the amount directly incorporated shall be reported, and the amount of substantial incorporation prorated in proportion to the ratio of shareholdings in themother fund shall be calculated on the Association System.

–15–

Attached Table 10

Schedule of Assets Denominated in Foreign Currencies (By Currency)(As of the end of MM/YYYY)
Company name:
Item

Type and Name of Trust Property[Breakdown by Currency Type]
Foreign Currency Total
U.S.A.
CanadaGermany
Netherlands
FranceAustralia
UK
Swiss
Yen
Italy
Hong Kong
SwedenSingapore
Malaysia
Finland
Total for Euro Participants⋮⋮

AssetsOf which,
Stock
Public and Convertible Investment
Stock
Subscription Corporate Bonds with
Trust
Investment
Certificates Warrant
Bond
Beneficiary Securities
Stock
Certificates Certificates Acquisition Certificates

Deposit

Other Assets Total (A)Co., Ltd.
(Unit: Yen)

Valuation Total Amount
Valuation
Loss or Gain of Net Assets
Total Loss or Gainon Foreign Denominated in
Liabilities on Foreign
Futures
Foreign(B)
Securities
Transactions, Currencies(C)etc.
(A)-(B)+(D)Rights(Notes for reporting)
1. With regard to the publicly offered investment trust and the mother fund, the amount converted at the exchange rate used for calculation of the trust property at the end of the current monthshall be reported.
2. For the Euro, a detailed description of each participant country and the total for all participants will be provided.
For details of Euro (participating countries), only the items of share certificates, stock subscription warrants, public and corporate bond certificates, convertible bonds with stock acquisitionrights, beneficiary certificates of investment trusts and investment securities shall be entered.
3. The total amount of assets and the total amount of net assets denominated in foreign currencies shall be calculated on the Association System.
4. With respect to the baby fund, the amount directly incorporated shall be reported, and the amount of substantial incorporation prorated in proportion to the ratio of shareholdings in the motherfund shall be calculated on the Association System.

–16–

Attached Table 11
Statement of other securities (by foreign currency denomination type)(As of the end of MM/YYYY)
Company name:Co., Ltd.
(Unit: Yen)

Item

CD

CP

Foreign Loan
Loan
Trust Beneficiary SecuritiesTrust Beneficiary Rights

Total

Type and Name of Trust Property

Total Amount (I + II)[Stock Investment Trust]
Unit Type Total
Open Type Total
I. Total Stock Investment Trusts[Public and Corporate Bond
Investment Trust]II. Total Public and Corporate Bond
Investment Trust
Money Reserve Funds(Points to consider in reporting)1.
With regard to the publicly offered investment trust and the mother fund, the amount converted at the exchange rate used for calculation of the trust property at the end of the current monthshall be reported.
2.
The total is to be calculated on the Association System.
3.
With respect to the baby fund, the amount directly incorporated shall be reported, and the amount of substantial incorporation prorated in proportion to the ratio of shareholdings in themother fund shall be calculated on the Association System.

–17–

Attached Table 12

Table Showing the Purchase and Sale of Stocks (Domestic)(During MM/YYYY)
Company name:Co., Ltd.
(Upper Part: Number of Shares)(Lower Part: Amount)(Unit: Shares, Yen)

Item
MarketPurchased
Non-Market

Total

Sold
Non-Market

MarketTotal

Net Buying or Selling(-)

Margin Transaction
Sold
Repurchase

Type of Trust Property[Publicly Offered
Investment Trust]
Unit Type Total
Open Type Total
Total Amount of Stock
Investment Trusts[Privately Placed
Investment Trust]
Unit Type Total
Open Type Total
Total Amount of Stock
Investment Trusts(Points to consider in reporting)
1. Stock investment trusts (including mother funds) will be reported.
2. The contract amount shall be stated on the basis of the contract date.
3. For right bidding, “face value + premium” will be added to the purchase price.
4. Purchase amount, sales amount and net buying or selling shall be calculated on the Association System.
5. With regard to baby funds, the substantial sales amount prorated in proportion to the ratio of shareholdings in the mother fund shall be calculated on the Association System.

–18–

Attached Table 13

Table Showing the Purchase and Sale of Stocks (By Currency)(For MM/YYYY)
Company name:Co., Ltd.

(Total Stock Investment Trusts)(Unit: Shares, Yen)
Purchase

Sale

Margin Transaction

Net Change (-)

Sold

Currency Type
Number of
SharesAmountNumber of
SharesAmountNumber of
SharesAmountNumber of
SharesAmountRepurchase
Number ofAmountSharesForeign Currency Total
U.S.A.
CanadaGermany
Netherlands
FranceAustralia
UK
Swiss
Yen
Italy
Hong Kong
SwedenSingapore
Malaysia
Finland
Total for Euro Participants⋮⋮(Notes for reporting)
1. Stock investment trusts (including mother funds) will be reported.
2. With regard to contract amounts, on the basis of the contract date, the amount converted at the exchange rate used for calculation of the trust property at the end of the current monthshall be entered.
3. For the Euro, a detailed description of each participant country and the total for all participants will be provided.
4. The net changes in number and amount of shares shall be calculated by the Association System.
5. With regard to baby funds, the substantial sales amount prorated in proportion to the ratio of shareholdings in the mother fund shall be calculated on the Association System.

–19–

Attached Table 14

Table Showing the Purchase and Sale of Public and Corporate Bonds (Domestic)(During MM/YYYY)
Company name:Co., Ltd.

1. Public and Corporate Bonds Denominated in Japanese Currency
Purchased

Item

Type and Name of Trust Property(Unit: Yen)

New Bonds
Publicly Offered
Bonds

Non-Publicly
Offered Bonds

Net Change in
Sub Total

Existing Bonds

Total

Sold

Redemption
Amount (-)

Total Amount (I + II)[Stock Investment Trust]
Unit Type Total
Open Type Total
I. Total Stock Investment Trusts[Public and Corporate Bond
Investment Trust]II. Total Public and Corporate Bond
Investment Trust
Money Reserve Funds(Points to consider in reporting)
1. The publicly offered investment trust and mother fund will be reported.
2. The contract amount shall be stated on the basis of the contract date (including the amount for Gensaki purchase and sale).
3. Publicly offered bonds shall be in general those publicly offered and shall not be limited to those offered by securities companies as underwriters.
4. Privately Placed Municipal Bonds shall be treated as non-publicly offered bonds.
5. Subtotals, totals and net changes in amount will be calculated on the Association system.
6. With regard to baby funds, the substantial sales amount prorated in proportion to the ratio of shareholdings in the mother fund shall be calculated on the Association System.

–20–

Attached Table 15

Table Showing the Purchase and Sale of Public and Corporate Bonds (Foreign)(During MM/YYYY)
Company name:
2. Public and Corporate Bonds Denominated in Foreign Currencies

Co., Ltd.
(Unit: Yen)

Item
Purchased

Sold

Redemption

Net Change in Amount (-)

Type and Name of Trust Property
Total Amount (I + II)[Stock Investment Trust]
Unit Type Total
Open Type Total
I. Total Stock Investment Trusts[Public and Corporate Bond Investment
Trust]
II. Total Public and Corporate Bond
Investment Trust
Money Reserve Funds(Points to consider in reporting)
1. The publicly offered investment trust and mother fund will be reported.
2. The contract amount shall be calculated on the basis of the contract date at the exchange rate used for calculating the trust property at the end of the current month (including the amount for
Gensaki purchases and sales).
3. The net change in amount will be calculated on the Association system.
4. With regard to baby funds, the substantial sales amount prorated in proportion to the ratio of shareholdings in the mother fund shall be calculated on the Association System.

–21–

Attached Table 16

Table Showing the Purchase and Sale of Convertible Bonds with Stock Acquisition Rights (Domestic)(During MM/YYYY)

Company name:Co., Ltd.

(Unit: Yen)
Item
Purchased

Sold
Redemption

Type of Trust Property

Of which, Convertible Net Change in Amount (-)
Portion

Unit Type Total

Open Type Total

Stock Investment Trusts Total
Public and Corporate Bond Investment
Trusts Total
Total Amount(Points to consider in reporting)
1. The publicly offered investment trust and mother fund will be reported.
2. The contract amount shall be stated on the basis of the contract date (including the amount for Gensaki purchase and sale).
3. The net change in amount will be calculated on the Association system.
4.
With regard to baby funds, the substantial sales amount prorated in proportion to the ratio of shareholdings in the mother fund shall be calculated on the Association System.

–22–

Attached Table 17

Schedule by Industry(End of MM/YYYY)
Type of Trust Property ()

Company name:Co., Ltd.

Ratio

Ratio

Item
Industry

Number of Shares(Shares)

Current Value
(%)

(Yen)

(%)

Agriculture, Forestry, andFisheries
MiningConstruction
Food
Textile Products
Pulp and Paper
Chemicals
Pharmaceuticals
Oil and Coal Products
Rubber Products
Glass and Ceramics
Steel
Nonferrous Metal
Metal Products
Machinery
Electrical Equipment
Transport Equipment
Precision Equipment
Other ProductsElectricity and Gas
Land Transport
Shipping
Air Transport
Warehousing andTransportation
Communications
Wholesale Business
RetailBanking
Securities
Insurance
Other Financial Services
Real Estate
Service Industry
Total Domestic Stock
Total Foreign Stock
Total(Points to consider in reporting)
1. This report is on publicly offered stock investment trusts and mother funds.
2. Each percentage, the total number and percentage of domestic stock, the total number and percentage of
foreign stock, and the aggregated number and percentage shall be calculated by the Association System.
3. For the Baby Fund, the Association System shall calculate the incorporated amount in real terms
prorated in proportion to the share ratio in the Mother Fund.

–23–

Attached Table 18

Fund Summary Items
Item No.

Name of Item

Item No.

Name of Item

01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

Investment Trust Company
Code
ISIN CodeInvestment Trusts Association
Fund CodeType CodeName of Fund
Fund Nickname
Own Fund Code
Daily Settlement-type CodePublic offering and private
placement category
Date of Establishment(Incorporation)
Unit Principal
Minimum Buy-in Category /Unit
Maturity Date
Product Classification CodeStatistical CodePublic Offering Start andClosing Date
Proposed Amount
Settlement Date
Buying Commission
Early Cancellation Fee

26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50

Trust Fees (Securities)
Trust Fees (Brokerage)
Frequency of Settlement(Annual)Trust Period
Distribution Policy
Established AmountContingency Fee System
Equity Weighting Limit
Foreign Currency Limit
Limit on Trust Money Amount
Reinvestment Category
Trust Fee CodeRecord Date of Subdivision
Subdivision of Shares
Consolidation Record Date
Consolidation of Shares
In-Kind Investment Trust Code
Extended Maturity Flag
Advance Redemption Flag
Attributes of Beneficiary
Type of Fund
Money TrustFund of Funds
Early Cancellation Period
Early Cancellation Refund Term

(Points to consider in reporting)
1. For publicly offered investment trusts, the matters in 01, 02, 04 to 12, 14 to 21, and 23 to 27 are to bereported no later than the day before the start of the public offering. Other matters (excluding 38 to
41, 43 and 44 to 50) are to be reported no later than the day before the date of the investment trust
establishment. However, the report for Exchange Traded Funds (ETF) under 11 is to be made no later
than the day following the date of the investment trust establishment.
2. For private placement investment trusts (excluding mother funds), the matters in 01, 02, 04 to 11, 13,
15, 18, 30, 42, and 45 to 50 are to be reported no later than the day before the date of the investment
trust establishment.
3. For the Mother Fund, matters in 01, 02, 04 to 11, 13, 15, 18, and 42 are to be reported no later than the
day before the date of investment trust establishment.
4. For the Investment Corporation, 01, 02, 04, 05, 09, 10, 13, and 18 are to be reported no later than the
day before the date of establishment.
5. When changes have been made to any of the matters reported, the content of such change is to bereported without delay. Any changes to the matters under 13 will be registered for 43 or 44.
6. Matters in 38 to 41 are to be reported no later than the day before the record date of subdivisionor consolidation. Furthermore, for consolidations, the outline of the surviving fund is to bereported.
7. Matters in 03, 19 (open type investment trust only), 22, 28, 29, and 31 are to be registered on the
Association system.
–24–

Attached Table 19
Schedule of the Balance of Public and Corporate Bonds by Type(As of the end of MM/YYYY)
Company name:(XX Fund)(Unit: Yen)
Special Bond
Certificates

National government bond certificates

Long
Term

Mid
Term

Co., Ltd.

Short
Term

Others

Total

Municipalbond

Of which,
Financial
Bonds

Corporate bondBusiness
Bonds

Convertible Bond
Certificates withStock
Acquisition
RightsCorporate
Bonds with
Stock
Options

Total

Other Bonds
Denominatedin Japanese
Currency

Sub
Total

Bonds
Denominatedin Foreign
Currencies

Total(Points to consider in reporting)1.
The publicly offered funds and the mother funds will be reported.
2.
The amount converted into Japanese yen for bonds denominated in foreign currencies shall be the amount converted at the exchange rate used for calculation of the trust property atthe end of the current month.
3.
Business bonds shall include investment corporation bonds.
4.
The sub total and total of government and corporate bonds will be calculated on the Association System.
5.
For the Baby Fund, the Association System shall calculate the incorporated amount in real terms prorated in proportion to the share ratio in the Mother Fund.

–26–

Attached Table 20

Table Showing Options Trading(During MM/YYYY)

Company name:Co., Ltd.
(Unit: Yen)

Sold
Balance atSales
the End ofAmountthe Previous During the
Month
Month

Category

Options for
StocksCall

Options for
Bonds

Call

Interest
rate

Call

Other

Currency

OthersRepurchaseAmountDuring the
MonthPurchased

Exercised
RightsBalance at Purchases
Balance atRightsTermination
the End ofAmountthe End of
During the During thethe Previous During thethe Month
Month
Month
Month
Month

Sell-Back Execution of Waiver ofAmountRightsRightsDuring the During the During the
Month
Month
Month

Balance atthe End of
the Month

Put

Put

Put
Call
Put
Call
Put
Call

Total

Put

(Points to consider in reporting)
1.
The status of domestic and foreign transactions of the publicly offered funds and mother funds will be reported.
2.
With regard to foreign transactions, the amount converted at the exchange rate used for calculation of the trust property at the end of the current month shall be entered.
3.
The balance at the end of the month shall be the amount calculated by multiplying the exercise value of the options by the number of options.
4.
The balance at the end of the previous month and the total will be calculated on the Association System.
5.
With regard to baby funds, the substantial sales amount prorated in proportion to the ratio of shareholdings in the mother fund shall be calculated on the Association System.

–27–

Attached Table 21

Table Showing Futures Transactions(During MM/YYYY)
Company Name

Co., Ltd(Unit: Yen)

Sold
Category

Futures Transactions for Stock

Purchased

Balance at the End Sales Amount
Repurchase
Balance at the End Balance at the End Purchases Amount Resale Amount Balance at the Endof the Previous During the Month Amount Duringof the Previous During the Month During the Monthof the Monthof the MonthMonth
the Month
Month

Futures Transactions for
Bonds
Interest
Other

Currency
OthersTotal(Points to consider in reporting)
1.
The status of domestic and foreign transactions of the publicly offered funds and mother funds will be reported.
2.
With regard to foreign transactions, the amount converted at the exchange rate used for calculation of the trust property at the end of the current month shall be entered.
3.
The balance at the end of the previous month and the total will be calculated on the Association System.
4.
With regard to baby funds, the substantial sales amount prorated in proportion to the ratio of shareholdings in the mother fund shall be calculated on the Association System.

–28–

Attached Table 22
Establishment amount and cancellation amount (during the month) by business category and total of net
assets (at the end of the month)(as of the last day of MM/YYYY)
Company name:Co., Ltd.
(Unit: Yen)
(1) Stock(2) Public and Total (1) + (2)Investment
Corporate
Bond
Public Offering
Establishment
Private Placement
AmountTotal
PublicOffering
Securities Cancellation AmountCompany(including
Private Placement(A)
redemption)
Total
Public Offering
Total Net Assets
Private Placement
Total
Public Offering
Establishment
Private Placement
Amount
Total
Registered
Public Offering
Financial
Cancellation Amount (including redemption) Private Placement
Institution
Total
(B)
Public Offering
Total Net Assets
Private Placement
Total
Public Offering
Establishment
Private Placement
AmountTotal
Public Offering
Japan Post
Bank
Cancellation Amount (including redemption) Private Placement
(C)
Total
Public Offering
Total Net Assets
Private Placement
Total
Public Offering
Established Amount Private Placement
Total
PublicOffering
DirectSales
Cancellation Amount (including redemption) Private Placement
(D)
Total
Public Offering
Total Net Assets
Private Placement
Total
Public Offering
Established Amount Private Placement
Total
Public Offering
Total(A)+(B)+( Cancellation Amount (including redemption) Private Placement
C)+(D)
Total
Public Offering
Total Net Assets
Private Placement
Total(Points to consider in reporting)
1. Publicly offered funds and private placement funds (excluding mother funds) are to be reported.
2. The total of the establishment amount, the cancellation amount (including redemption) and the total amount of net assets,
and the total of (1) + (2), shall be calculated on the Association System.

–29–

Attached Table 23

Beneficiary Certificate Public Offering Report
Fund Name
Date EstablishedPublic Offering Period
Company name:Co., Ltd.

(1) Public offering status by applicant
Classification

AmountPercentage

Financial corporations

Thousands yen

Number of persons%

Percentage

People%Business corporations
Non-profit organizations
Individuals
Total
Share from financial
industry applicantsNote: In the Amount and Number of persons columns, direct sales shall be indicated using parenthesis for e
ach item in Table (1). E.g., “(1234).”(2) Public offering status by application amountApplication amountAmount500,000 yen or lessThousands yen

Percentage

Number of perso%

PeoplePercentage%

500,001 yen to 1,000,000 yen
1,000,001 yen to 3,000,000 yen
3,000,001 yen to 5,000,000 yen
5,000,001 yen to 10,000,000 yen
Over 10,000,000 yen
( )
100.0
100.0
Note 1: In the total column for Amount and Number of persons, the offering amount related to cumulative
investment contracts shall be indicated in parenthesis. E.g., “(1234).”
2. For long-term public and corporate bond investment trusts, the application amount column shall be
divided into the following amounts: “100,000 yen or less,” “100,001 yen to 200,000 yen,” “200,001
yen to 500,000 yen,” “500,001 yen to 1,000,000 yen,” “1,000,001 yen to 3,000,000 yen,” and “over3,000,000 yen.” The breakdown of amounts considered to be property accumulation shall be entered in
the margin as shown below.
Of which, property accumulation savings accountNo. of items,000 yen
Of which, property accumulation pension accountNo. of items,000 yen
Total

(

)

–30–

Attached Table 24

Settlement and Redemption Funds(MM/YYYY)

Fund Name

Company name: Co., Ltd.
Number of
Settlement or
Settlement Periods
Redemption dateSettlement or
Redemption……
……
Note: Of publicly offered investment trusts, funds whose settlement or redemption is on the following month
are to be reported (excludes trusts which have daily settlements).

Attached Table 25

Mother Fund Information(End of MM/YYYY)
Company name:Co., Ltd.

(1) Mother Fund Information (fund code, number of units of beneficial
interest)
Reported matters(2) Information on child funds that belong to relevant mother fund (fundcode, number of units of beneficial interest, distinction between public
offering and private placement)

Note: The Mother Fund is to be reported.

Attached Table 26

Sales Company and Commission

Reported matters

1) Company name, 2) Fund code, 3) Sales company of the fund, 4) Sellingcommission rate of the sales company (excluding tax)

Note 1: For publicly offered open type investment trusts, the maximum commission rate for each sales
company is to be reported.
2. At the time of the establishment of a trust, such notification shall be made by the day before thecommencement of the public offering, and if any change occurs thereafter, such notification shall bemade by the 6th business day of the following month.

–31–

Attached Table 29
1. Information specific to REIT
Item
number
1
2.
3
4
5
6
7
8

Item

Description

Investment Trusts Association Fund
Code
Name of investment corporation or
investment trust
English name of investment
corporation or investment trust
Nickname, etc. of investment
corporation or investment trust
Investment Trust Company CodeName of investment trust managementcompany
Name of trustee company for generaladministration
Name of asset custodian company(trustee bank)

9Type category 1

10Type category 2

11

Listing category

12

Market category

13

16
17

Date of establishment
Application commencement date(public offering commencement date)
Application end date (public offeringend date)
Registration date (establishment date)Listing date18

Management period

19
20
21

Frequency of settlement (annual)
Settlement Date
Settlement date variability category

22

Dissolution date (redemption date)

14
15

23
24
25
26

27

28

Redemption price at the time ofdissolution (redemption price)
Application units at issue
Minimum application units
Application commission category
Included inprice/not
Application
included incommission
priceAmountBase value representation category
Management
remuneration

29

Details ofmanagement cost,
etc.

Asset custody
remuneration
Remuneration
to salescompany

The system, etc. shall be determined separately
Official name

Fund nickname/abbreviated name (if applicable)
The system, etc. shall be determined separately(1) Investment corporation(2) Contract type (managed under instructions from the settlor)(3) Contract type (managed without instructions from the settlor)(1) Closed end(2) Open end
Listed (0) unlisted (1)System, etc., including the Tokyo Stock Exchange (1), shall be
determined separately.
MM-DD-YYYY Date of registration of incorporation
MM-DD-YYYY In the case of contract type, public offeringcommencement date
MM-DD-YYYY In the case of contract type, public offering end date
MM-DD-YYYY In the case of contract type, establishment date
MM-DD-YYYY Date: MM/DD/YYYY
Period of existence for investment corporation
In the case of contract type, trust period. Indefinite=99
n times
MMDD MMDD
Constant (0) variable (1)MM-DD-YYYY Expiration date of the period of existence. In the case ofcontract type, redemption date
Value per unit (up to two decimal places). In the case of a contract type,the redemption price
Number of units(For open end only) units
No application commission (0) With application commission (1)Included in price (0) not included in price (1)(Yen)
Japanese yen (0) foreign currency (1)Briefly describe the management remuneration structure.
Ex. 1) Rental income x3%, 2) rental profit x3%, 3) sales price x0.5%, etc.
In the case of a contractor, the trust remuneration of the managementcompany
Briefly describe the system of asset custody remuneration In the case ofcontract type, the trust remuneration of the trustee company.
For contract type open end only.

–32–

Attached Table 30

2. End of month REITs information
A. Change in assets
Itemnumber
1
2.
3

4

5

6

7
8

(Amount: in millions of yen)
Item

Data date
Investment Trusts Association Fund CodeName of investment corporation or investment
trust
Number of investment units at previous
month-end(Number of units of beneficial interest)
Net asset balance at previous month-end (A)Units of investment(Number of units ofbeneficial interest)
Additional contribution
Amount of contribution(Established amount)(B)(Total amount of trust
money)
Units of investment(Number of units ofRefund of contribution beneficial interest)(Cancellation amount)
Refund amount (C)(Total amount of trust
money)
Number of units ofRedemption
beneficial interest(Upon dissolution)
Redemption (D)Change in capital(E)=(B)-(C)-(D)9Change caused by management of trust (F)10Change in assets

11
12
13
14
15

Description

Number of units of investment at month-end(Number of units of beneficial interest)
Balance of net assets at month-end(A)+(E)+(F)Total amount of contributions
Total assets
Total amount of incorporated real estate
Total liabilities
Of which, the outstanding balanceof investment corporation bonds

MM-DD-YYYY Date of applicable data
The system, etc., shall be determined separately.
Official nameIn the case of contract type, the number of units of beneficial
interest

In the case of contract type, the number of units of beneficial
interest
In the case of a contract type, the established amount (total
amount of trust money)In the case of contract type, the number of units of beneficial
interest
In the case of a contract type, the cancellation amount (total
amount of trust money)In the case of contract type, the amount of change in funds
Increase or decrease in surplus (profit or loss for the period +internal reserves such as profit carried forward) due tomanagement of trust, etc.
Difference between the total amount of net assets at the end of
the current month and the total amount of net assets at the endof the previous month
In the case of contract type, the number of units of beneficial
interest

In the case of contract type, principal balance
Total assets at month-end
The sum of the disclosed reference values

Note:
1. Any Ex-Distribution after approval of settlement of accounts shall be included in the change caused bymanagement of trust.
2. The month in which any Ex-Distribution falls shall be the month in which settlement of accounts is ap
proved.
3. 8, 9, 10, 14 do not require input as calculation is automatic.
4. Amounts less than one unit shall be rounded down (same applies to the below forms).

–33–

Attached Table 31

B. Status of offering and sale, etc.
Itemnumber
1
2.
3

Item

Description

Data date
Investment Trusts Association Fund CodeName of investment corporation or investment
trust

MM-DD-YYYY Date of applicable data
The system, etc. shall be determined separately
Official name4

Date of application (public offering):

5
6Date of payment
Public offering and private placement category
Initial public offering or additional public offering
category
Number of public offering investment units(number of units of beneficial interest)
Number of secondary distribution investment
units (number of units of beneficial interest)

7
8
9
10

Issue price(Application price including commission)

11

Issue value

12

Paid amount

13

Secondary distribution priceMM-DD-YYYY In the case of contract type, the date of public
offering
MM-DD-YYYY(1) Public offering (2) private placement(1) Initial (2) additional
Number of units to be additionally issued

The issue price per unit
In the case of contract type, the application price including
commission (in yen)Amount to be paid per unit (subscription price, etc.) (in yen)
Change in total amount of contributions in the case ofadditional issuance (in millions of yen)Amount to be paid by an investor in the case of secondary
distribution (in millions of yen)

- Not a cumulative amount for each public offering.

–34–

Attached Table 32

C. Status of all incorporated real estate (holding status) (MM/YYYY)
Name of investment trust or investment corporation
Item

Japan

U.S.A.

･･･

Total

Number ofproperties
incorporated

Total
leasablearea (A)m2

Total leased
area (B)m2

Occupancy
rate (C)%(B)÷(A)

Number oftenants

Disclosure
valuation

Principal Use
OfficeCommercial
or retail
Housing
Hotel
Distribution
facilities
OthersTotal
Principal Use
OfficeCommercial
or retail
Housing
Hotel
Distribution
facilities
OthersTotal
Principal Use
OfficeCommercial
or retail
Housing
Hotel
Distribution
facilities
OthersTotal
Principal Use
OfficeCommercial
or retail
Housing
Hotel
Distribution
facilities
Others
Total

Note 1: “Other” is for purposes other than “Office,” “Commercial or retail,” “Housing,” “Hotel,” and“Distribution facilities.”
2: Entries for “Total” and “Occupancy rate (C)” are not required because they are automaticallycalculated.
3: The “Disclosure valuation” shall be the reference value disclosed by each investment corporation, etc.,
in the valuation method stipulated in the Certificate of Incorporation, etc.

–35–

Attached Table 33

D. Purchase and sale of assets (MM/YYYY)
Name of investment trust or investment corporation(Unit: Million Yen)
Item

Japan

Real estate

Real estate intrust

Acquisition
amountSales amount

U.S.A.

Acquisition
amountSales amount

CanadaAcquisition
amountSales amount･･･

Acquisition
amountSales amount

Total

Acquisition
amountSales amount–36–

Real estate
investment
securities

Other realestate-related
assetsOther specified
assetsAttached Table 34

3. Settlement and Financial Status of REITs
A. Financial status
Itemnumber
1
2.
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19

Description

Data date
Investment Trusts Association Fund CodeName of investment corporation or investment trust
Settlement period
Settlement Date
Operating revenue
Profit or loss from rental of real estate
Profit or loss from sale of real estate
Profit or loss from sale of securities
Other operating income
Other operating expenses
Total operating income
Non-operating income
Ordinary income
Income for the current period
Total profit distributions
Total return of contribution (principal)
Number of Investment Units Issued
Profit distributions
Distribution perDistribution amount for excess
unit
profit/principal return amountIndividuals/others
Bank/trust bank
Life insurance/Non-life
Number of
insurance
holders at
Securities Company
period end
Other financial services
Other domestic corporations
Foreigner (corporate/individual)
Individuals/others
Bank/trust bank
Life insurance/Non-life
Number of
insurance
Units Held atSecurities Company
End of Period
Other financial services
Other domestic corporations
Foreigner (corporate/individual)
Financial
institution

21

Item

Financial
institution

20(Amount: in millions of yen)

–37–

MM-DD-YYYY Date of applicable data
The system, etc. shall be determined separately
Official name
MMDD

Profit or loss from sale of real estate other than in No. 7
Profit or loss from sale of securities during the business
year
Other income during the business year
Total operating expenses less than or equal to asset
management remuneration

Profit after taxes
In millions of yen
In millions of yen
Number of units
Yen

In the case of an investment corporation, the number ofinvestors
In the case of contract type, the number of beneficiaries

Attached Table 35

B. Information on the composition of managed assets
Itemnumber
1
2.
3

4

5

Item

Other assets

7

Total assets at period end
Securities
Valuation profit or
Foreign exchange
loss
Others91011

Description

Data date
Investment Trusts Association Fund CodeName of investment corporation or investment trust
Real estate
LeaseholdReal estate related Superficies rights
assetsReal estate in trust
Silent Partnership Equity
OthersReal estate investment
securities (REIT
Securities
beneficiary certificates)
Other securities

6

8(Amount: in millions of yen)

MM-DD-YYYY Date of applicable data
The system, etc. shall be determined separately
Official nameBook Value (Note 1) and component ratio (%) (Note 2)
Same as above
Same as above
Same as above
Same as above
Same as above
Valuation (Note 1) and component ratio (%) (Note 2)
Same as above
Deposits, money trusts, call loans, discount bills, etc.
(including balance sheet accruals)

Of which, amount forloans
Of which, the outstandingbalance of investment
corporation bonds
Total net assets at period end
Base value at period end
Total amount ofliabilities

Note 1: Value after depreciation
2: Ratio to “10 Total net assets at period end” Component ratio is automatically calculated so input is
not required.

–38–

Attached Table 36
C. Individual status of incorporated real estate (acquisition and sale) (MM/YYYY)
Name of investment trust or investment corporation(Amount: in millions of yen)
Name ofproperty

Date ofacquisition

Date ofsale

Acquisition
Cost

Book
Value

Sale
price

Area

RegionLocation

Propertyuse

Note 1: “Date of acquisition” and “Date of sale” are the dates stated in the sales contract.
2: The “Acquisition cost” and “Sale price” are the prices stated in the sales contract.
3: “Book value” is based on the date of purchase of the property. There are also changes that are to beentered at the end of each period.
4. For assets denominated in foreign currencies, indicate the country name in the “Location” column.
Entry in the “Region” column is not necessary.

–39–

Rules on Notification and Publication, etc. of the Base Value of Investment Trusts
Established on March 19, 2004
Revised on January 19, 2007
Revised on September 21, 2007
Revised on September 19, 2008
Revised on January 16, 2009
Revised on December 20, 2012
Revised on May 20, 2021

Article 1.

Purpose

These Rules set forth the necessary notification and publication for base value and notification and publication
for invalid beneficiary certificates and other necessary items necessary for the use of investment trust
beneficiary certificates (including book-entry transfer beneficial interest in an investment trust; hereinafterreferred to as “beneficiary certificates” ) as substitute securities, such as customer margin for margintransactions.

Article 2.

Beneficiary Certificates for Substitute Securities

This Association shall publish the base value of subject beneficiary certificates (including book-entry transfer
beneficial interest in an investment trust) of substitute securities such as customer margin for margintransactions. However, this shall not apply to subject certificates among investment trusts during a closed
period, investment trusts exclusively for cumulative investment and investment trusts whose cancellation islimited to a certain date.

Article 3.

Notification of Base Value

1. The Investment Trust Management Company (meaning the Investment Trust Management Company as
defined in Article 2, Paragraph 11 of the Act on Investment Trusts and Investment Corporations (Act No.
198 of 1951), and hereinafter referred to as the “Management Company”) shall notify the Association of thebase value of the investment trust as prescribed in the preceding article by electromagnetic means atapproximately the time set forth in the By-laws.
2. The value to be notified to the Association shall be the base value calculated under Article 52 of the Rules for
Valuation and Accounting of Investment Trust Properties, and other values shall not be adopted.
* Article 2 of the By-laws

Article 4.

Publication of Base Value

The Association shall publish the base value notified by the Management Company in the manner set forth in
the By-laws.
* Article 3 of the By-laws

Article 5.

Notification of Invalid Securities

1. The Management Company shall request the sales company to inform the Management Company which is–1–engaged in the management of the investment trust or the investment corporation (hereinafter referred to as
the “Investment Trusts, etc.” ) without delay when an invalid security has been identified or invalidation
regarding any beneficiary certificate or investment security (meaning a beneficiary security or investment
security which has been reported to be invalid; the same shall apply hereinafter) has been reported to thesales company (meaning the type-I financial instruments business operator designated by the Management
Company (meaning a party that engages in Type I financial instruments business as prescribed in Article 28,
Paragraph 1 of the FIEA (Act No. 25 of 1948 ) and the Registered Financial Institution; the same shall apply
hereinafter ).
2. Upon receipt of the notification set forth in the preceding paragraph from a sales company, the Management
Company shall notify the sales company that is handling the investment trust and notify the Association byelectromagnetic means.

Article 6.

Publication of Invalid Securities

Upon receipt of notification of invalid securities from the Management Company as specified in Paragraph 2 ofthe preceding article, the Association shall promptly prepare a list of the serial numbers of the invalid securities
and publish the list on the website for Association members.

Article 7.

Form for Notifying the Association, etc.

When notifying the Association of invalid securities in accordance with Article 5, Paragraph 2, theManagement Company must do so using the form set forth in the By-laws via “Electronic Notification andStorage System for Notifications from Association Members.”
When publishing the invalid securities as prescribed in the preceding paragraph, the Association shall doit in the form set forth in By-laws.
* Article 4 of the By-laws

Article 8.

Fund Code Unification

The Association shall standardize the fund code for investment trusts in order to facilitate the administration ofclerical work by the sales company and contribute to the appropriate operation of the base value publication
system for beneficiary certificates.

Article 9.

Deleted

Article 10.

By-laws

Necessary matters for the enforcement of these Rules shall be stipulated in the By-laws.

Article 11.

OthersAny matters not provided for in these Rules concerning notification, publication, etc. of the base value ofinvestment trusts may be decided by a resolution of the Board of Directors.

–2–Article 12.

Delegation to Competent Committee

1. The Board of Directors shall be entitled to delegate to the Self-Regulation Committee the authority to amend
any By-laws relating to these Rules.
2. When the Self-regulation Committee decides a matter delegated to it (limited to those decisions the Board of
Directors deems necessary), they shall promptly inform the Board of Directors of the details thereof.

Supplementary Provision
These Rules shall come into effect on April 1, 2004.

Supplementary ProvisionThis amendment shall come into effect on January 19, 2007.

Supplementary ProvisionThis amendment shall come into effect on September 30, 2007.

Supplementary ProvisionThis amendment shall come into effect on October 1, 2008.

Supplementary ProvisionThis amendment shall come into effect on January 16, 2009.

Supplementary ProvisionThis amendment shall come into effect on January 4, 2013.

Supplementary ProvisionThis amendment shall come into effect on June 1, 2021.
* The amended provisions are as follows:
Article 7.

–3–

By-Laws on Rules on Notification and Publication, etc. of the Base Value ofInvestment Trusts
Established on March 19, 2004
Revised on July 8, 2004
Revised on November 11, 2004
Revised on September 21, 2007
Revised on September 19, 2008
Revised on December 20, 2012
Revised on May 20, 2021

Article 1.

Purpose

These By-laws provide for matters necessary for the enforcement of the Rules on Notification and Publication,etc., of the Base Value of Investment Trusts (hereinafter referred to as the “Rules”).

Article 2.

The Time Base Value is Notified

The time base value is notified as specified by the By-laws as prescribed in Article 3, Paragraph 1 of the Rules
shall be 8 p.m. on the day.

Article 3.

Method for Publishing Base Value

The methods to be specified by the By-laws as prescribed in Article 4 of the Rules shall be as follows:(1) The Association shall publish the base value of the investment trust prescribed in Article 2 of the Rules as
the “List of Base Values Published by the Investment Trusts Association” through QUICK.
(2) The “List of Base Values Published by the Investment Trusts Association” shall indicate the name of theinvestment trust management company (meaning the investment trust management company as defined in
Article 2, Paragraph 11 of the Act on Investment Trusts and Investment Corporations (Act No. 198 of1951); hereinafter referred to as the “Management Company”), the name of the investment trust, the code
number of such investment trust and the base value on the day thereof, and shall be indicated for eachManagement Company.

Article 4.

Form for Notification to the Association

The form set forth in Article 7 of the Rules and the By-Laws as prescribed in the second sentence of the same
article shall be the form set forth in Attached Table 1.

Supplementary Provision
These By-laws come into effect on April 1, 2004.

Supplementary ProvisionThis amendment shall come into effect on July 1, 2004.

–1–

Supplementary ProvisionThis amendment shall come into effect on November 19, 2004.

Supplementary ProvisionThis amendment shall come into effect on September 30, 2007.

Supplementary ProvisionThis amendment shall come into effect on October 1, 2008.

Supplementary ProvisionThis amendment shall come into effect on January 4, 2013.

Supplementary ProvisionThis amendment shall come into effect on June 1, 2021.
* The amended provisions are as follows:- Attached Table 1 specified in Article 4.

–2–

Attached Table 1

Application Date MM/DD/YYYY

Trade Name or Name

Notification of Serial Number of Invalid Beneficiary Certificates and Investment S
ecurities

Fund Name

Code Number Type of Certificate–3–

Serial Number(first half)

Serial Number (latter half)Rules on Full Members’ Business Operations, Etc.
Established on March 21, 2008
Revised on September 19, 2008
Revised on March 19, 2009
Revised on September 16, 2009
Revised on March 15, 2012
Revised on December 20, 2012
Revised on June 13, 2013
Revised on July 18, 2013
Revised on July 16, 2015
Article 1.

PurposeThe purpose of these Rules is to provide for matters necessary for proper business operations, etc. pertaining toinvestment trusts and investment corporations, etc. of Full Members (meaning a Full Member as defined in
Article 7, Paragraph 1, Item 1 of the Articles of Incorporation; the same shall apply hereinafter.)

Article 2.

Exercise of Voting Rights

1. The investment trust management member companies, etc. (meaning the investment trust managementcompany as defined in Article 2, Paragraph 11 of the Act on Investment Trusts and Investment Corporations(Act No. 198 of 1951) (hereinafter referred to as the “Investment Trust Management Member Companies”)
and the Full Members who are asset management companies as defined in Paragraph 21 of the Act on
Investment Trusts and Investment Corporations; the same shall apply hereinafter) shall give instructions as tothe exercise of voting rights pertaining to shares held as investment trust property as set forth in the following
items:(1) Instructions to exercise voting rights pertaining to shares held as investment trust property by investment
trust management member companies, etc. shall be given in writing. However, this shall not apply tocases where the investment trust management member companies, etc. previously enter into terms of use,etc. with the operating organization (meaning the organization operating the system for exercising voting
rights by electromagnetic means) and the trustee company, and exercise voting rights by electromagnetic
means.
(2) The investment trust management member companies, etc. shall clearly indicate to the trustee thefollowing declarations of intent with respect to each proposal stated in the notice to convene a general
meeting of shareholders:(a) To be in favor of the proposal;(b) To be opposed to the proposal;(c) To give an Investment Trust Management Company unconditional authority as an agent; or(d) To abstain from voting.
2. The investment trust management member companies, etc. shall establish provisions concerning the basic
concept of exercising voting rights and authority for decision making, etc. prescribed in the preceding
paragraph.
–1–3. The investment trust management member companies, etc. shall give instructions for the exercise of voting
rights pertaining to foreign shares held as investment trust property in accordance with the circumstances of
the relevant country.

Article 3.

Prohibited Acts for Officers and Employees

A Full Member must prevent any person who is an officer or employee of the Full Member from using theirposition in the course of duties to sell or purchase securities based on trends in the management of the trust
property, etc. or important non-public information pertaining to issuing companies obtained in connection with
their business, or other special information obtained in the course of their duties, or solely for the purpose of
pursuing speculative profits.

Article 4.

Measures to Be Taken Against Offenders

1. If any officers or employees of a Full Member commits any of the acts listed in the preceding article, such
Full Member shall take strict measures against the relevant person who commits such act.
2. If a Full Member has taken the measures prescribed in the preceding paragraph, such Full Member shallsubmit a written report to the Association that describes the entirety of the act and measures taken.

Article 5.

Development of Insider Trading Control Systems

1. To prevent insider trading, Full Members shall endeavor to develop insider trading control systems, such as
establishing internal rules for the management of unpublished, important information pertaining to theissuing company which has been acquired by the officers or employees of a Full Member in connection with
their business.
2. The internal rules provided in the preceding paragraph shall be as set forth by the Self-Regulation
Committee.
* Committee Resolution 1

Article 5-2. Development of an Internal System for Determining Distributions
1. Investment Trust Management Member Companies shall develop an operation manual, etc. that contains thematters listed below in order to conduct distribution in accordance with the distribution policy, such asdetermining distribution amounts based on a conservative assessment of the source of distribution andremaining capacity of distribution, for investment trusts premised on stable and continuous distribution(meaning Monthly Distribution Type Investment Trusts and Bimonthly Distribution Type Investment Trusts(those with monthly and bimonthly settlement frequency)).
(1) Process to determine distributions;(2) Matters to be considered in the review of distributions; and(3) Basic concept for determining distributions.
2. Investment Trust Management Member Companies shall endeavor to ensure the rigorous implementation ofoperations based on the operation manuals, etc., provided in the preceding paragraph.
3. The development, etc. of the operation manual, etc. and thorough implementation of operations based–2–thereon set forth in the preceding two paragraphs shall be as determined by the Self-Regulation Committee.
* Committee Resolution 2

Article 6.

Acquisition or Disposition of Beneficiary Certificates of Investment Trusts or Investment

Securities of Investment Corporations for Which Management, etc. Is Conducted by a Full Member
1. A Full Member shall not acquire or dispose of (hereinafter referred to as “Acquisition, etc.”) beneficiary
certificates of an investment trust or investment securities of an investment corporation which the Full
Member conducts management, etc. of as their own assets (hereinafter referred to as “Investment Trust
Beneficiary Certificates Issued In-House, etc.”)
2. The provisions of the preceding paragraph shall not apply to cases where a Full Member makes Acquisition,etc. of Investment Trust Beneficiary Certificates Issued In-House, etc. (excluding REIT, etc. as defined in
Article 3, Paragraph 1 of the Rules on Real Estate Investment Trusts and Real Estate Investment Corporations
and beneficiary certificates of Infrastructure Investment Trusts, etc. or investment securities as defined in
Article 3, Paragraph 3 of the Rules on Infrastructure Investment Trusts and Infrastructure Investment
Corporations; the same shall apply in Article 6-2) necessary for ordinary operations such as temporary
Acquisition, etc. associated with the settlement of accidents.

Article 6-2. Acquisition, etc. of Investment Trust Beneficiary Certificates Issued In-House, etc. Except for
REIT, etc. and Infrastructure Investment Trusts, etc.
1. Notwithstanding the provision of Paragraph 1 of the preceding article, a Full Member may conduct
Acquisition, etc. of Investment Trust Beneficiary Certificates Issued In-House, etc. that falls under any of thefollowing items:(1) Acquisition, etc. at the time of initial establishment or initial operation;(2) Acquisition, etc. to adequately maintain product attributes; or(3) Acquisition, etc. for management of company assets.
2. The Acquisition, etc., to adequately maintain product attributes as set forth in Item 2 of the preceding
paragraph shall be as follows:(1) Acquisition, etc. of an investment trust, etc. to aim for investment performance linked to a specific stock
price index, etc. (meaning index fund) to the extent necessary to maintain a portfolio distinctive to suchinvestment trust;(2) Acquisition, etc. to the extent necessary in an investment trust group comprised of several investment
trusts in which conducting switchover between the investment trusts that comprise the investment trustgroup is permitted when there is a risk of not being able to maintain the operation of the investment trustgroup due to decrease in the balance of the specific investment trust; and(3) Any other Acquisition, etc., which is deemed necessary by the Board of Directors to maintain the productattributes of the investment trust.

Article 6-3

Acquisition, etc. of Investment Trust Beneficiary Certificates Issued In-House, etc. That Are

REIT, etc. and Infrastructure Investment Trusts, etc.
–3–

1. Notwithstanding the provision of Paragraph 1 of Article 6, a Full Member may conduct Acquisition, etc. of
Investment Trust Beneficiary Certificates Issued In-House, etc., that are REIT, etc. and Infrastructure
Investment Trusts, etc., if the conditions of the following items are satisfied:(1) The Investment Trust Beneficiary Certificates Issued In-House, etc. are beneficiary certificates andinvestment securities of REIT, etc. and Infrastructure Investment Trusts, etc.;(2) Internal procedures for Acquisition, etc. are stipulated in the internal rules beforehand;(3) The company’s Board of Directors has resolved the matters to be stipulated in the By-laws regarding theimplementation of Acquisition, etc.; and(4) The Acquisition, etc. satisfies the requirements set forth in the By-laws.
2. When a resolution of the Board of Directors set forth in Item (3) of the preceding paragraph is made, a Full
Member shall promptly publicize the matters provided for in the By-laws.
3. In the event that a Full Member conducts Acquisition, etc. of Investment Trust Beneficiary Certificates
Issued In-House, etc., that are REIT, etc. and Infrastructure Investment Trusts, etc. in accordance with theresolution of the Board of Directors set forth in Paragraph 1, Item 3, such Full Member must promptly
publicize the matters set forth in the By-laws.
*Articles 2 and 3 of the By-laws

Article 6-4. Conducting Acquisition, etc. of Investment Trust Beneficiary Certificates Issued In-House, etc.
That Are REIT, etc. and Infrastructure Investment Trusts, etc.
1. A Full Member shall not conduct Acquisition, etc., until the day on which 5 days have passed from the day of
the resolution of the Board of Directors provided in Paragraph 1, Item 3 of the preceding article.
2. Notwithstanding the provision of the preceding paragraph, in the event that a Full Member is expected to
publicize any important facts which may have a material impact on the acquisition price or investment
decision of investors with regard to REIT, etc., and Infrastructure Investment Trusts, etc., such Full Member
shall not conduct Acquisition, etc. until 7 days have passed from the day of publication of such fact.
3. If a Full Member becomes unable to conduct an Acquisition, etc. resolved by the Board of Directors pursuant
to the provision in the preceding paragraph, such Full Member must conduct Acquisition, etc. after aresolution is made at the Board of Directors as provided in Article 6-3, Paragraph 1, Item 3 for a second time,
except for cases where the Board of Directors has made a resolution to respond to such situation in advance.

Article 6-5. Disclosure in the Case of Acquisition, etc. of Investment Trust Beneficiary Certificates Issued
In-House, etc.
When a Full Member has made any Acquisition, etc., as set forth in Article 6-2 or Article 6-3, such Full
Member shall make disclosures in the investment report or asset management report in accordance with theRules on Investment Reports, etc. for Investment Trusts and Investment Corporations prescribed separately.

Article 6-6. Prohibition of Securities, Rights, and Transactions of Which REIT, etc., Are Underlying Assets
A Full Member shall not invest in securities, rights, or transactions of which on REIT, etc. and Infrastructure
Investment Trusts, etc. managed by the Full Member are the sole underlying assets.
–4–Article 7.

Valid Period of Securities Registration Statement, etc.

The Securities Registration Statement and Prospectus for public offering of domestic beneficiary certificates ofinvestment trusts and domestic investment securities shall be valid for no more than 16 months.

Article 8.

Time Limit for Acceptance of Applications for Purchase and Cancellation of Stock Investment

TrustsInvestment Trust Management Member Companies shall observe the following matters with regard to stock
investment trusts:(1) To require that the sales company complies with the requirement that acceptance of purchase andcancellation by customers (including buy-back; the same shall apply hereinafter) be closed by 3 p.m. at thelatest; and(2) To fix the number of units of additional establishment or cancellation related to the customer’s purchaseand cancellation transactions on the business day and promptly notify the trustee bank of such number ofunits.

Article 9.

Selling to Large Volume Applicants

1. Investment Trust Management Member Companies shall decide with the sales company, for open type
investment trusts, the maximum amount that will be accepted for cancellation and the predetermined amountfor which prior notification is required per application by large volume applicants for each investment trust.
In this case, sufficient consideration shall be given to the size and product attributes of the investment trust,and the amount shall be an amount that will not hinder the operation of the investment trust.
2. The Investment Trust Management Company Member shall request the sales company to notify theInvestment Trust Management Company Member of any cancellation exceeding the predetermined amountprovided in the preceding paragraph by 12:30 p.m. on the contract date.

Article 10

Payment of Distributions

Investment Trust Management Member Companies shall require that the sales company comply withcommencing the payment of distributions or redemption money related to the investment trust to customers, inprinciple, within 5 business days after the closing date or the redemption date of the investment trust(hereinafter referred to as “Closing Date, etc.” and if such Closing Date, etc. is a holiday, the next businessday).

Article 11

Notice of Refund of Subscription Fees and Consumption Tax for Investment Trusts with

Commission Included
In the event that the sales company returns the investor all or part of the subscription fees (including
consumption tax) for an investment trust with commission included, Investment Trust Management Member
Companies shall have the sales company notify the Investment Trust Management Member Companies of thetotal amount equivalent to the consumption tax to be returned to the investor on the date of conclusion of the–5–trust agreement.

Article 12

Handling of Money Arising after Termination of the Trust for an Investment Trust Property

1. If there are amounts that can be estimated of the accounts receivable related to the investment trust at the timeof termination of an investment trust, in principle, Investment Trust Management Member Companies shalltransfer the amount to investment trust property.
The trustee shall make transfer to investment trust property on behalf of the Investment Trust Management
Member Companies.
2. If any money not transferred as prescribed in the preceding paragraph arises after the termination of the trust,in principle, Investment Trust Management Member Companies shall return such money to the beneficiaryat the time of termination of the trust.
In returning such money to the beneficiary, the expenses involved in such return may be deducted.

Article 13

Delegation to Competent Committee

1. The Board of Directors shall be entitled to delegate to the Self-Regulation Committee the authority to amend
any By-laws relating to these Rules.
2. The Self-Regulation Committee shall promptly report to the Board of Directors, the contents of any
decisions made by the Self-Regulation Committee with respect to any matters delegated thereto (limited todecisions deemed necessary by the Board of Directors.).

Supplementary Provisions
1. These Rules shall be implemented from the date of approval by the competent government agency foramendments to the Operational Rules (March 31, 2008).
2. The Board of Directors resolution (established on March 16, 2004) regarding the operation, etc. ofinvestment trusts shall be abolished as of the date of approval by the competent government agency foramendments of the Operational Rules (March 31, 2008).

Supplementary Provisions
1. This amendment shall come into effect on October 1, 2008.
2. The Rules for public offering or sales of investment trusts, and the By-laws for the rules for public offering or
sales of investment trusts shall be abolished as of October 1, 2008.

Supplementary ProvisionThis amendment shall come into effect on March 19, 2009.

Supplementary ProvisionThis amendment will come into effect on December 30, 2009.
–6–

Supplementary Provisions
1. This amendment shall come into effect on May 1, 2012.
2. Notwithstanding 1. above, this shall not preclude Full Members from operating under the amended
provisions up to the effective date.

Supplementary ProvisionThis amendment shall come into effect on January 4, 2013.

Supplementary ProvisionThis amendment shall come into effect on June 13, 2013.
Supplementary ProvisionThis amendment shall come into effect on July 18, 2013.
Supplementary ProvisionThis amendment shall come into effect on July 16, 2015.
* The amended Articles are as follows:
Article 6, Paragraph 2, Headings of Article 6-2, Headings of Article 6-3 and the main clause of Paragraph 1 of the same
Article and Item 1 of the same paragraph, Paragraph 3 of the same Article, Headings of Article 6-4 and Paragraph 2 of thesame Article, Article 6-6–7–

By-laws Concerning Rules on Full Members’ Business Operations, etc.
Established on September 19, 2008
Revised on July 16, 2015

Article 1. Purpose
These By-laws prescribe matters necessary to enforce the Rules on Full Members’ Business Operations, etc.
(hereinafter referred to as the “Rules”).

Article 2. Board of Directors Resolution on Self-Acquisition, etc.
1. The matters to be resolved at the Board of Directors according to the By-laws as provided in Article 6-3,
Paragraph 1, Item 3 of the Rules shall be as follows:(1) Date or period of acquisition or disposition (hereinafter referred to as “Acquisition, etc.”)(2) Distinction of acquisition and disposition(3) Number of units and the total amount of REIT, etc. for which Acquisition, etc. to be conducted(4) Value and method for determining the value of Acquisition, etc.
(5) Method of Acquisition, etc.
(6) Purpose and the usage of funds, etc. for Acquisition, etc.
(7) The name of the entrusted party and the outline of the entrusted affairs in the case that instructions, etc.
for Acquisition, etc. are entrusted to a third party
2. The matters provided in the By-laws as prescribed in Article 6-3, Paragraph 2 of the Rules shall be thematters outlined in the items of the preceding paragraph and the date they were resolved.
3. The matters provided in the By-laws as prescribed in Article 6-3, Paragraph 3 of the Rules shall be as
follows:(1) Date or period of Acquisition, etc.
(2) The total amount and number of units of investment trust beneficiary certificates, etc., issued in-house forwhich Acquisition, etc. was conducted(3) The total amount and number of units of investment trust beneficiary certificates, etc., issued in-house
which are held by Full Members after Acquisition, etc.
(4) Method of Acquisition, etc.
(5) Other matters considered necessary from the viewpoint of protecting investors

Article 3. Requirements for Acquisition, etc. for RIET, etc. and IIT, etc.
1. The acquisition provided in the By-laws as prescribed in Article 6-3, Paragraph 1, Item 4 of the Rules shallbe an acquisition that satisfies the following requirements:(1) An acquisition that falls under any of the following:(a) An acquisition in the course of a public offering for capital increase or any other act similar
thereto.
(b) Acquisition when the capital, etc., is returned by investment trust beneficiary certificates, etc.,–1–issued in-house in lieu of money in the liquidation of a silent partnership which Full Members areinvesting.
(c) An acquisition from an investor who owns a majority of the beneficiary certificates of theinvestment trust issued in-house in order to satisfy the conduit requirements under the tax laws for
RIET, etc. and IIT, etc. for which the investor has been entrusted with investment operations.
(d) Other acquisitions deemed necessary at the board of directors.
(2) The Acquisition Cost in the case of an acquisition pursuant to Item 1, (a) shall be the public offering anddistribution price determined through the book-building method related to the relevant public offering
for capital increase or a fair price considered to be equivalent thereto.
2. A disposition satisfying the requirements provided in the By-laws as prescribed in Article 6-3, Paragraph 1,
Item 4 of the Rules shall be a disposition that satisfies the requirements provided in the respective items in
the following cases:(1) In the case of disposition in on-exchange transactions, Full Members shall give sufficient consideration
to the disposition value, the number of units to be disposed per day, and the timing of disposition, etc. so
as not to cause market manipulation or any similar act with regard to the instructions for suchdisposition.
(2) In the case of disposition in off-exchange transactions, the disposition price shall be, in principle, the final
price for the relevant on-exchange transaction for investment trust beneficiary certificates, etc., issued
in-house on the contract date or the settlement date. However, when making a disposition at a different
price under a contract with a transferee, such as in the case of applying for a tender offer by a third party,
care is to be taken not to make a disposition at a price that would be significantly disadvantageous toother investors.

Supplementary Provision
These By-laws shall be implemented on October 1, 2008.

Supplementary ProvisionThis amendment shall come into effect on July 16, 2015.
* The amended Articles are as follows:
The titles of Article 3 and Article 3, Paragraph 1, Item 1 (c) are amended.

–2–

Committee Resolution on Full Members’ Business Operations, etc.
Established on March 15, 2012
Revised on June 13, 2013

Based on the Rules on Full Members’ Business Operations, etc. (hereinafter referred to as the “Rules”),
this committee resolution prescribes the following matters concerning the business operations, etc. of Full
Members.
1. The internal rules provided in Article 5, Paragraph 2 of the Rules are as follows:

A Full Member (meaning a Full Member as prescribed in Article 7, Paragraph 1, Item 1 of the Articles ofIncorporation; the same shall apply hereinafter) must establish internal rules including the following mattersin order to prevent insider trading before it occurs:(1) Compliance with Laws and Regulations, etc.
(i) Full Members shall comply with the Financial Instruments and Exchange Act (Act No. 25 of 1948,
hereinafter referred to as the “FIEA”) and other laws and regulations, etc. and shall endeavor to prevent
insider trading before it occurs.
(ii) A Full Member shall not encourage any person who may have knowledge of any corporate
information set forth in Article 1, Paragraph 4, Item 14 of the Cabinet Office Ordinance on Financial
Instruments Business, etc. (Cabinet Office Ordinance No. 52 of 2007) (hereinafter referred to as“Corporate Information”) or any information likely to fall under any of the foregoing to provide suchinformation.
(iii) A Full Member shall not consider whether or not any Corporate Information or any information likely
to fall under Corporate Information has been provided as well as the content thereof in evaluating or
selecting a counterparty to whom an order pertaining to transactions of securities, etc., is to be placed.
(iv) Full Member officers and employees shall not receive entertainment or provision of money or goods
beyond the scope of reasonable social conventions from officers and employees of the counterparty towhom an order pertaining to transactions of securities, etc., is to be placed.
(2) Management of Corporate Information(i) A Full Member shall appoint an Information Control Manager (in principle, a director or any otherperson holding a similar position) from their officers and employees.
(ii) When any officer or employee has obtained Corporate Information or any information which is likely
to fall under Corporate Information, the officer or employee shall immediately report such information
to the Information Control Manager, etc. (meaning the Information Control Manager or any person
designated by the Information Control Manager; the same shall apply hereinafter).
(iii) When the Information Control Manager, etc. receives a report related to the preceding item from any
officer or employee, the Information Control Manager shall examine whether or not such information
falls under the category of Corporate Information, and if so, shall give such officer or employee–1–necessary instructions regarding the administration, etc. of such Corporate Information.
(iv) When any officer or employee has received a report pertaining to Corporate Information or has
obtained Corporate Information or any information which is likely to correspond to Corporate
Information, such officer or employee shall not communicate Corporate Information to any otherperson inside or outside the Company, except when permitted by the Information Control Manager, etc.
(3) Business operations
A Full Member shall not conduct any act based on Corporate Information in the performance of theinvestment management business.
However, this shall not apply to cases falling under any of the items in Article 166, Paragraph 6, or Article
167, Paragraph 5 of the FIEA.
(4) Proprietary trading
A Full Member and their officers and employees shall not conduct transactions based on Corporate
Information on their own accounts.
However, this shall not apply to cases falling under any of the items in Article 166, Paragraph 6, or Article
167, Paragraph 5 of the FIEA.

2. The preparation of internal system for determining distributions as provided in Article 5, Paragraph 2 of
the Rules shall be as follows:(1) Preparation of an operation manual, etc.
The Investment Trust Management Member Company (meaning Full Members who are investment trust
management companies as defined in Article 2, Paragraph 11 of Act on Investment Trusts and Investment
Corporations (Act No. 198 of 1951); the same shall apply hereinafter) shall prepare an operation manual, etc.
containing the following matters:(i) Process to determine distributions(a) Organization, committee, etc. for review(b) Organization, committee, or official who will make the final decision(c) Involvement of officers, etc., in determining distributions (committee chairperson, approval, report,
etc.)(ii) Matters to be considered in the review of distributions(a) The distribution policy provided in the basic terms and conditions and prospectus of the fund(b) The status of the funds for distribution (revenues for the period, funds to be carried over, etc.)(c) The reference base value(d) Forecasts that take into consideration factors such as the market outlook and portfolio conditions, inaccordance with the characteristics of the fund(e) Other necessary matters, etc. (frequency of distribution (number of settlements), product attributesof funds such as index funds, etc., cash flow status, etc.)(iii) Basic concept for determining distributions
In the operation manual, etc., it shall be stated that distributions are to be determined conservatively,
such as considering the matters in ii. above and setting quantity standards.
–2–

(2) Rigorous implementation of operations in line with the operation manual, etc.
The Investment Trust Management Member Company shall rigorously implement operations in line with theoperation manual, etc., and clarify their actions in determining distributions

Supplementary Provisions
1. This committee resolution shall come into effect on May 1, 2012.
2. Notwithstanding the foregoing 1., Full Members shall not be precluded from operating under the revised
provisions before such effective date.

Supplementary ProvisionThis amendment shall come into effect on June 13, 2013.

–3–

Rules for Supporting Members
Established on March 9, 2017

Article 1.

Purpose, etc.

1. The purpose of these Rules is to provide for matters concerning Supporting Members as prescribed in Article
7, Paragraph 1, Item 2 of the Articles of Incorporation of the Investment Trusts Association, Japan(hereinafter referred to as the “Association”), thereby ensuring the proper and smooth operation of the
Association.
2. Supporting Members are Authorized Financial Instruments Business Associations, Certified Financial
Instruments Business Associations, Certified Investor Protection Organizations, or corporations engaged inservices related to the investment trust entrustment business, etc., and these members agree with the purposeof the Association and cooperate in its activities.

Article 2.

Application for Membership

A person who intends to become a Supporting Member may apply for membership by submitting anapplication for admission in Attached Form No. 2 as prescribed in Article 2, Paragraph 3 of the Rules on
Enforcement of Articles of Incorporation.

Article 3.

Approval of Admission

Upon submission of the documents prescribed in the preceding article and application of membership, theBoard of Directors may approve the applicant as a Supporting Member.
Provided, however, that this shall not apply to any persons falling under the grounds for membership
refusal as prescribed in Article 9, Paragraph 2 of the Articles of Incorporation or any persons falling under anyof the following items:(1) When deemed that the person falls under any of the provisions of Article 7, Item 1, (i) to (v); or(2) When deemed that the person has committed an act falling under any of provisions of Article 7, Item 2,(i) to (v).

Article 4.

Membership Fee

Any person who is approved for admission pursuant to the preceding article shall pay the membership fee inaccordance with the Rules on Admission Fees and Membership Fees as determined by the General Meeting.

Article 5.

Validation of Membership Qualification

The qualification of a Supporting Member shall be valid from the date that admission is approved by the Boardof Directors.

–1–Article 6.

Withdrawal, etc.

When a Supporting Member intends to withdraw from membership, such Supporting Member shall submit inadvance the Notification of Withdrawal from Membership in Attached Form No. 42 as prescribed in Article 12,
Paragraph 1 of the Rules on Enforcement of Articles of Incorporation.

Article 7.

Exclusion of Anti-Social Forces

The grounds set forth in Article 17, Paragraph 2, Item 3 of the Articles of Incorporation shall be as follows:(1) When deemed that the person falls under the category of anti-social forces or any of the following
provisions of (i) to (v):(i)

Having any relationship where anti-social forces are deemed to control management;(ii) Having any relationship where anti-social forces are deemed to be substantially involved inmanagement;(iii) Having any relationship deemed to be using anti-social forces unjustly for the purpose of
acquiring an illicit gain for one’s company, oneself, or a third-party or causing injury to athird-party;(iv) Having any relationship deemed to be involved in providing funds, etc. or special favors toanti-social forces;(v) Officers or any person substantially involved in management having any relationship with
anti-social forces that is socially condemned.
(2) When deemed that the acts committed by the person or through a third-party fall under any of thefollowing provisions of (i) to (v):(i)

Violent demands;(ii) Unreasonable demands exceeding legal responsibility;(iii) Threating statements or acts of violence in connection with transactions;(iv) Spreading rumors or using fraudulent means to damage another party’s reputation or interferingwith another party’s business;(v) Any other act equivalent to (i) to (iv) in this item.

Article 8.

Amendment of Rules

These Rules may be amended by resolution of the Board of Directors.

Article 9.

By-laws

Matters necessary for the enforcement of these Rules shall be separately decided by the Chairperson.

Supplementary Provision
These Rules shall come into effect on April 1, 2017.

–2–

Rules on Operations by Officers and Employees, etc. to Trade Shares, etc. on Their
Own Accounts
Established on January 16, 2009
Revised on October 15, 2009
Revised on December 20, 2012

Article 1.

PurposeThe purpose of these Rules is to prevent conflict of interest transactions and any other inappropriate
transactions by providing for internal rules and establishing an internal system to comply with Article 3 of theRules for Full Members’ Business Operations, etc. in connection with transactions of shares, etc. made on theirown accounts by officers and employees, etc. involved in the operation and investigation, etc. of shares, etc. of
Full Members (meaning the Full Members set forth in Article 7, Paragraph 1, Item 1 of the Articles ofIncorporation; the same shall apply hereinafter), thereby contributing to securing the fairness and reliability ofbusiness pertaining to investment trusts and protecting investors.

Article 2.

Definition

1. “Shares, etc.” in these Rules means domestic and foreign shares and rights and corporate bonds, etc. that canbe converted into shares including corporate bonds with share warrants or share options.
2. “Officers and Employees, etc. Involved in the Operation and Investigation, etc. of Shares, etc.” in theseRules means any officer or employee of Full Members (excluding Full Members who only perform asset
management for a real estate investment trust or Real Estate Investment Corporations; the same shall apply
hereinafter) who is in charge of the management business of an investment trust property or assets of aninvestment corporation to be invested in shares, etc. (hereinafter referred to as the “Trust Property, etc.”),who is in a position to know such management trends, or who is in a position to know unpublished important
information or any other special information (hereinafter referred to as “Important Information”) pertaining
to issuing companies in the course of duties, or any relative who shares a livelihood with such persons(excluding any person who is a lineal descendant and whose investment decision is not affected by an officer
or employee of the investment trust entrustment company).
It should be noted that the term “relative who shares a livelihood” may includes not only those who livewith such persons (excluding anyone who obviously lives financially independently) but also those who live
separately from such persons while also habitually remitting living expenses, school fees, medical expenses,
etc.
3. “Proprietary Trading” in these Rules means any of the following transactions pertaining to shares, etc.
conducted on one’s own account. Provided, however, that these Rules shall not apply to any transaction set
forth in the By-laws.
(1) Stock trading, margin transactions, futures transactions, option trading, and over-the-counter derivatives
transactions(2) Acquisition of shares, etc. through public offering or secondary distribution(3) Acquisition of shares, etc. under Cumulative Investment Contract–1–

(4) Transaction pertaining to stock mini investment plan.
4. “Fund Manager” in these Rules means any person who selects the issues traded, trading conditions, andvolume, etc. of shares, etc. in Trust Property, etc.
5. “Trader” in these Rules means any person who places orders for the sale and purchase of shares, etc. in Trust
Property, etc. with a Type I Financial Instruments Business Operator (meaning a Type I Financial
Instruments Business Operator prescribed in Article 28, Paragraph 1 of the Financial Instruments andExchange Act).
6. “Analyst” in these Rules means any person engaged in corporate research pertaining to management of Trust
Property, etc.
7. “Valid Period of Approval” in these Rules means the valid period of approval as stipulated in Article 6(hereinafter referred to as the “Valid Period”) for implementation of proprietary trading.
8. “Period for Prohibition of Proprietary Trading” in these Rules means the period in which proprietary tradingis prohibited for fund managers, traders, and analysts.
* Article 2 of the By-laws

Article 3.

Formulation of Internal Rules, etc.

1. Full Members shall provide for the Internal Rules concerning the proprietary trading of shares, etc.
conducted by officers and employees, etc. involved in the operation and investigation, etc. of shares, etc., andshall take the necessary measures such as providing regular training, etc. so that officers and employees
comply with such rules.
In addition, the matters established in the Internal Rules shall be those established in these Rules and the
By-laws.
2. Full Members shall appoint a person in charge of screening the proprietary trading of shares, etc. conductedby officers and employees, etc. involved in the operation and investigation, etc. of shares, etc. (hereinafterreferred to as “Person in Charge of Screening for Proprietary Trading”), and have such Person in Charge of
Screening for Proprietary Trading examine whether there are any facts that constitute a violation of theInternal Rules.
Multiple persons in charge of screening for proprietary trading may be assigned to divide the screening
amongst them.
* Article 3 of the By-laws

Article 4.

Prohibited Acts

Officers and employees, etc. involved in the operation and investigation, etc. of shares, etc. shall not engage inany of the acts set forth in the following items:(1) Transactions leveraging their professional position or transactions based on Important Information which
they have learnt in the course of their duties;(2) Transactions solely for the purpose of seeking speculative profits;(3) Transactions in priority to customer profits such as front running, etc.;(4) Any other transactions prohibited under laws and regulations, etc.
–2–Article 5.

Limitation of Holding Period

In order to prevent transactions for the purpose of seeking speculative profits or other unfair transactionsprescribed in Item 2 of the preceding article, Full Members shall establish in their Internal Rules a period of 6months or more as the holding period (i.e. lock-up period) of shares, etc.
However, that if the applicant and a relative who shares a livelihood with such applicant acquire the same issue
more than once, the date of the last acquisition shall be regarded as the initial date of reckoning. In the case of
acquisition of shares, etc. under a Cumulative Investment Contract, the date of the first acquisition shall be
regarded as the initial date of reckoning.

Article 6.

Prior Application

Officers and employees, etc. involved in the operation and investigation, etc. of shares, etc. shall apply inadvanced in writing (including by electromagnetic means) to the Person in Charge of Screening for Proprietary
Trading and obtain approval for such proprietary trading in performing any proprietary trading of shares, etc.
However, application and approval for the acquisition of shares, etc. under the Cumulative Investment Contract
shall be made in accordance with the procedures set forth in the By-laws.
* Article 4 of the By-laws

Article 7.

Screening

1. The Person in Charge of Screening for Proprietary Trading who has received the prior application under thepreceding article shall screen the matters set forth in the following items:(1) The limitation of holding period prescribed in Article 5 is met. Provided, however, that this shall not
apply to cases approved by the Person in Charge of Screening for Proprietary Trading as an unavoidable
circumstance for the applicant (e.g. cases where the applicant and a relative who shares a livelihood
with such applicant become unable to earn a living due to illness, etc.).
(2) If the applicant is any of the following persons (including applications for transactions by a relative whoshares a livelihood with such applicant), the application shall not be for the shares, etc. set forth in thefollowing. Provided, however, that this shall not apply to cases where shares, etc. are acquired under a
Cumulative Investment Contract or to cases approved by the Person in Charge of Screening for
Proprietary Trading as an unavoidable circumstance (e.g. cases where acquired shares, etc. are sold andappropriated for the payment of inheritance tax due to succession to the estate, etc.).
(A) Fund Manager
Shares, etc. traded or scheduled to be traded during the Period for Prohibition of Proprietary Trading
concerning the Trust Property, etc. which the applicant is responsible for managing at the time of theapplication (excluding the Trust Property, etc. aimed at investment performance linked to arepresentative stock price index on the market; hereinafter the same shall apply in the following
article);(B) Trader (including a person who also serves as a fund manager)
Shares, etc. traded or scheduled to be traded during the Period for Prohibition of Proprietary Trading–3–

based on the instructions for purchase orders received by the applicant from the fund manager for
determining a part of the execution of trading at the time of application;(C) Analysts (including fund managers or traders who conduct corporate research through company
tours, etc.)
Shares, etc. issued by any company (including affiliated companies) which the applicant researched
or intends to research during the Period for Prohibition of Proprietary Trading as part of suchapplicant’s duties at the time of application.

2. Full Members shall establish in their Internal Rules the periods set forth in the following items as the Period
for Prohibition of Proprietary Trading for the persons set forth in the Item 2 of the preceding paragraph:(1) Period for Prohibition of Proprietary Trading for the persons set forth in (A) and (B): A period from 3
business days or more before the previous business day of the scheduled transaction date (hereinafterreferred to as “Base Date”) until 3 business days or more after the next business day of the Base Date as
established by Full Members.
However, if a period of 2 days or more is established as the Valid Period, the Base Date shall be the firstday of such Valid Period, and the period shall be from 3 business days or more before the previous
business day of such date until 3 business days or more after the next business day of the final day of the
Valid Period as established by Full Members.
(2) Period for Prohibition of Proprietary Trading for any of the persons set forth in (C): A period from 1
month or more before the Base Date until the Base Date as established by Full Members.
However, if the Valid Period is established, a period from 1 month or more before such Base Date until the
final day of the Valid Period as established by Full Members.

Article 8.

Confirmation in Trading of Trust Property, etc. After Application Date

1. If the applicant is a fund manager and trades shares, etc. pertaining to the application for the Trust Property,
etc. which such applicant is responsible for managing within a fixed period from application until after the
proprietary trading contract, such applicant shall obtain prior confirmation from the Person in Charge of
Screening for Proprietary Trading.
Provided, however, that this shall not apply to cases where the proprietary trading by the applicant is atransaction provided for in the By-laws (hereinafter the same shall apply in the following article).
2. Full Members shall establish in their Internal Rules a period of 3 business days or more for the fixed period
specified in the preceding paragraph.
* Articles 3 and 5 of the By-laws

Article 9.

Report, etc.

When a proprietary trading of shares, etc. has taken place, the applicant shall report to the Person in Charge of
Screening for Proprietary Trading without delay.
* Article 3 of the By-laws–4–Article 10.

Retention of Records

1. Full Members shall retain records concerning prior applications, the details of screenings, and the contents ofany violations and the status of corrective measures therefor and other related records.
2. Full Members shall establish in their Internal Rules a period of 5 years or more as the retention period in thepreceding paragraph.

Article 11.

By-laws

Necessary matters for the enforcement of these Rules shall be stipulated in the By-laws.

Article 12.

OthersAny matters not provided for in these Rules regarding proprietary trading by officers and employees, etc.
involved in the operation and investigation, etc. of shares, etc. may be decided by a resolution of the Board of
Directors.

Article 13.

Delegation to Competent Committee

1. The Board of Directors shall be entitled to delegate to the Self-Regulation Committee the authority to amend
any By-laws relating to these Rules.
2. The Self-Regulation Committee shall promptly report to the Board of Directors, the contents of any
decisions made by the Self-Regulation Committee with respect to any matters delegated thereto (limited todecisions deemed necessary by the Board of Directors.).

Supplementary Provisions
1. These Rules shall come into effect on January 16, 2009.
2. “Considerations in Preparing Internal Rules for Transactions of Shares, etc. by Officers and Employees, etc.
on Their Own Accounts (November 17, 2006)” shall be repealed as of January 16, 2009.

Supplementary Provisions
1. This amendment shall come into effect on October 15, 2009.
However, the provisions of Articles 3, Article 4, Article 7 and Article 8 after amendment shall apply fromJanuary 18, 2010.
2. Notwithstanding the foregoing proviso 1. above, Full Members shall not be precluded from operating under
the provisions of Article 3, Article 4, Article 7 and Article 8 after the amendment before the date of suchapplication.

Supplementary ProvisionThis amendment shall come into effect on January 4, 2013.

–5–

<Reference>
Rules on Operations by Officers and Employees, etc. to Trade Shares, etc. on Their Own Accounts
Period for Prohibition of Proprietary Trading Prescribed in Article 7, Paragraph 2
Article 7, Paragraph 2 of the Rules stipulates the Period for Prohibition of Proprietary Trading for fundmanagers, etc., and this period is illustrated as follows.
The Period for Prohibition of Proprietary Trading is required to be stipulated based on the following
information in the Internal Rules concerning the proprietary trading of shares, etc. conducted by officers
and employees, etc. involved in the operation and investigation, etc. of shares, etc.
1. Period for Prohibition of Proprietary Trading for Fund Managers and Traders (Article 7, Paragraph 2,
Item 1 of the Rules)(1) Period set forth in the main clause of Item 1
Period for Prohibition of Proprietary Trading

T-2

~ T-3

T-1

Scheduled date ofproprietary trading (T)

T+1

T+2

T+3~

T+N+2

T+N+3~(2) Period set forth in the proviso to Item 1
Period for Prohibition of Proprietary Trading

~ T-3

T-2

T-1

Commencement
date of Valid
Period (T)Final day of Valid
Period (T + N) T+N+1* The Valid Period of Approval is for N days (the same shall apply to 2. (2)).
2. Period for Prohibition of Proprietary Trading for Analysts (Article 7, Paragraph 2, Item 2 of theRules)(1) Period set forth in the main clause of Item 2
Period for Prohibition of Proprietary Trading

Proprietary Trading
Scheduled date (T)~ T-1 month(2) Period set forth in the proviso to Item 2
Period for Prohibition of Proprietary Trading~ T-1 month

Valid Period
Commenceme
nt date (T)– 6 –Valid Period
Final day (T + N)

By-laws Concerning Rules on Operations by Officers and Employees, etc. to Trade
Shares, etc. on Their Own Accounts
Established on October 15, 2009

Article 1. Purpose
These By-laws provide for matters necessary for the enforcement of the Rules on Operations by Officers andEmployees, etc. to Trade Shares, etc. on Their Own Accounts (hereinafter referred to as the “Rules”).

Article 2. Not Categorized as Proprietary Trading
Transactions not falling under proprietary trading pursuant to Article 2, Paragraph 3 of the Rules shall be as
follows:(1) Acquisition of shares, etc. through subscription to an employee stock ownership plan, etc.
(2) Acquisition of shares, etc. through subscription to a defined contribution pension plan;(3) Exercising options, over-the-counter options or stock options granted by the Company as remuneration
or bonus, etc.

Article 3. Matters to Be Established in Internal Rules
The matters provided in the Internal Rules prescribed in Article 3, Paragraph 1 of the Rules shall be as follows:(1) Procedures for the Person in Charge of Screening for Proprietary Trading prescribed in Article 3,
Paragraph 2 of the Rules to conduct proprietary trading under Article 2, Paragraph 3 of the Rules;(2) Procedures to confirm that an act does not fall under prohibited acts prescribed in Article 4 of the Rules;(3) Form of application prescribed in Article 6 of the Rules (including the date of application, the name of the
securities company and the name of the transaction account, the issue, the quantity, distinction of sellingor buying), the method of procedures, and the Valid Period of Approval;(4) Matters screened as prescribed in Article 7 of the Rules;(5) Confirmation procedures prescribed in Article 8 of the Rules;(6) Reporting procedures prescribed in Article 9 of the Rules;(7) Other necessary matters based on the circumstances of services and internal systems, etc.

Article 4. Application and Approval of Cumulative Investment Contract
The application and approval of the acquisition of shares, etc. under the Cumulative Investment Contract asprescribed in Article 6 of the Rules shall be made when applying for the Cumulative Investment Contract orwhen changing the contents of such contract (e.g. any changes to the amount of investment or the issue thereof,
suspension or resumption of purchase).

Article 5. Transactions Not Requiring Confirmation and Reporting
The transactions set forth in the By-laws prescribed in the proviso to Article 8, Paragraph 1 of the Rules shall betransactions for acquisition under the Cumulative Investment Contract for shares, etc.
–1–

Supplementary Provisions
1. These By-laws shall come into effect form October 15, 2009.
However, the provisions of Articles 2 and 3 shall apply from January 18, 2010.
2. Notwithstanding the proviso to 1. above, Full Members shall not be precluded from operating under theprovisions of Articles 2 and 3 before the date of application.

–2–

Rules on Processing Complaints for Full Members’ Handling of Personal
Information
Established on April 27, 2005
Revised on July 15, 2005
Revised on January 19, 2007
Revised on September 21, 2007
Revised on September 19, 2008
Revised on March 19, 2009
Revised on December 20, 2012
Revised on May 18, 2017
Revised on April 18, 2019
Revised on May 20, 2021
Revised on November 18, 2022

Article 1.

Purpose

These Rules provide for matters necessary for procedures, etc. to process complaints concerning the handlingof personal information by Full Members (meaning Full Members as stipulated in Article 7, Paragraph 1, Item
1 of the Articles of Incorporation; the same shall apply hereinafter ) of the Investment Trusts Association,
Japan (hereinafter referred to as the “Association”).

Article 2.

Scope of Complaints Handled

The Association shall process complaints concerning the handling of personal information pertaining to theinvestment management business conducted by Full Members (limited to the business set forth in Article 2,
Paragraph 8, Items 12 (a) and 14 of the Financial Instruments and Exchange Act (hereinafter referred to as the“FIEA”; Act No. 25 of 1948 ) ), business pertaining to the investment trusts managed without instructions fromthe settlor, and the business set forth in Article 2, Paragraph 8, Item 7 of the FIEA pertaining to beneficiary
certificates, etc. (meaning beneficiary certificates, investment securities, and investment corporation bondcertificates) (hereinafter referred to as “Complaints Concerning the Handling of Personal Information”).

Article 3.

Basic Attitude

In processing Complaints Concerning the Handling of Personal Information, the Association shall maintain afair and impartial attitude and endeavor to resolve such complaints promptly and in a highly transparent mannerfrom a fair and neutral standpoint.

Article 4.

Complaint Advisor

1. In order to process Complaints Concerning the Handling of Personal Information, the Association shallappoint a complaint advisor at its secretariat.
2. In order to facilitate the appropriate processing of Complaints Concerning the Handling of Personal
Information, the Association shall endeavor to educate complaint advisors through training, etc.

–1–Article 5.

Complaint Processing Procedures

1. When a resolution of a Complaint Concerning the Handling of Personal Information by the Full Member has
been filed by a complainant, etc. (meaning a complainant and an agent who is delegated by the complainant),
the Association shall give necessary advice to such complainant upon consultation, investigate thecircumstances pertaining to such complaint, and notify the Full Member of the contents of the complaint
requesting such Full Member to promptly resolve this matter.
2. When receiving an oral complaint under the preceding paragraph, the Association may request thecomplainant to submit relevant documents as necessary.

Article 6.

External Opinion Hearing System

In the event that a hearing of opinions by a third-party is desired for the resolution of a Complaint Concerning
the Handling of Personal Information prescribed in Paragraph 1 of the preceding article that was filed by acomplainant, etc., the Association may hear opinions, as necessary, from a fair third-party such as an attorney atlaw, etc.

Article 7.

Submission of Materials, etc.

1. The Association may request a Full Member to provide a written or oral explanation or to submit materials
when deemed necessary for the resolution of a complaint pertaining to the complaint under the precedingarticle.
2. A Full Member may not refuse any request from the Association pursuant to the provisions of the preceding
paragraph without justifiable grounds.

Article 8.

Responsibilities of Full Members

1. When receiving notification of any Complaint Concerning the Handling of Personal Information from the
Association under the provisions of Article 5, Paragraph 1, the Full Member shall respond in good faith andendeavor to resolve such complaint.
2. Full Members shall report to the Association the background and outcome of their response to any
complaints notified by the Association under the provisions of Article 5, Paragraph 1.

Article 9.

Explanation to Complainant

At the request of the complainant, the Association shall explain to such complainant the result of the responseby the Full Member as reported in accordance with the provisions in Paragraph 2 of the preceding article.
Provided, however, that this shall not apply when an explanation from the Full Member is considered to beappropriate.

Article 10.

Notification of Reception Desk for Members

1. In order to smoothly process Complaints Concerning the Handling of Personal Information, Full Members
shall notify the Association of the reception desk dealing with such complaints via “Electronic Notificationand Storage System for Notifications from Members of the Association (hereinafter referred to as the–2–

“Notification Management System of Investment Trusts Association”)” using Attached Form 1.
2. Any changes to the reception desk set forth in the preceding paragraph shall be notified to the Association via
the Notification Management System of Investment Trusts Association using Attached Form 2.

Article 11.

Reception Desk Processing Complaints

The business pertaining to processing Complaints Concerning the Handling of Personal Information prescribedin Article 5 shall be handled by the Member Supervision and Investigation Office.

Article 12.

Bearing of Costs

The Association shall not collect any fees for processing Complaints Concerning the Handling of Personal
Information from the complainant. However, any communication expenses, etc. required for procedures, etc. to
be filed by the complainant shall be borne by the complainant.

Article 13.

Retention of Records on Outcome of Complaint Processing, etc.

1. The Association shall record and retain the reception status of Complaints Concerning the Handling of
Personal Information and the outcome of the response thereto.
2. The period to retain records, etc. prescribed in the preceding paragraph shall be 5 years.

Article 14.

Publication of Aggregated Outcome of Complaint Processing

The Association shall periodically make public the aggregated outcomes of complaint processing.

Article 15.

Confidentiality

The complaint advisor or a person who served in the capacity thereof shall not divulge to others or
misappropriate any secret learned in the course of processing Complaints Concerning the Handling of Personal
Information without justifiable grounds.

Article 16.

Auditing of Complaint Processing

The Association shall audit for the Member Supervision and Investigation Office, which handles the businesspertaining to processing Complaints Concerning the Handling of Personal Information.
Audits in these cases shall be performed by an audit supervisor who is designated in advance from employees
outside of the Member Supervision and Investigation Office.

Article 17.

OthersAny matters not provided for in these Rules regarding procedures for processing complaints from investors
concerning the handling of personal information by Full Members may be decided by resolution of the Boardof Directors.

–3–

Supplementary Provision
These Rules shall come into effect on the day that the Association obtains certification from an accredited
personal information protection organization under the provisions of Article 37, Paragraph 1 of the Act on theProtection of Personal Information. (Implemented on July 1, 2005)

Supplementary ProvisionThis amendment shall come into effect on July 15, 2005.

Supplementary ProvisionThis amendment shall come into effect on January 19, 2007.

Supplementary ProvisionThis amendment shall come into effect on September 30, 2007.

Supplementary ProvisionThis amendment shall come into effect on October 1, 2008.

Supplementary ProvisionThis amendment shall come into effect on March 19, 2009.

Supplementary ProvisionThis amendment shall come into effect on January 4, 2013.

Supplementary ProvisionThis amendment shall come into effect on May 30, 2017.
* The amended Articles are as follows:- Article 16 has been newly established and the former Article 16 have been amended to Article 17.

Supplementary ProvisionThis amendment shall come into effect on May 1, 2019.
* Necessary arrangement in connection with the change of era nameSupplementary ProvisionThis amendment shall come into effect on June 1, 2021.
* The amended Articles are as follows:- Article 10, Paragraphs 1 and 2- Attached Form 1 and Attached Form 2 specified in the respective paragraphs of the same Article.

–4–

Supplementary ProvisionThis amendment shall come into effect on November 18, 2021.
* The amended Articles are as follows:- Article 11and Article 16,–5–

Attached Form 1

Application Date

MM/DD/YYYY

To: Chairperson of the Investment Trusts Association, Japan

Trade Name orName
Representative

Notification of Reception Desk for Complaints Concerning the Handling of Personal Information

We hereby notify you of the reception desk for complaints pursuant to Article 10, Paragraph 1 of the Rules on
Processing Complaints for Full Members’ Handling of Personal Information.

Department Receiving Complaints
Telephone Number
Title of Contact
Name of Contact (Reading)Name of Contact–6–

Attached Form 2

Application Date

MM/DD/YYYY

To: Chairperson of the Investment Trusts Association, Japan

Trade Name orName
Representative

Notification of Changes to Reception Desk for Complains Concerning the Handling of Personal
Information

We hereby notify you of the changes in the reception desk for complaints pursuant to Article 10, Paragraph 2 of
the Rules on Processing Complaints for Full Members’ Handling of Personal Information.

Before Change

After Change
Department Receiving Complaints
Telephone Number
Title of Contact
Name of Contact (Reading)Name of Contact

Date of Change–7–

MM/DD/YYYY

Rules for Registration, etc. of Sales Representatives
Established June 10, 2021
Revised on January 20, 2022

Article 1.

PurposeThe purpose of these Rules is to provide for procedures for the registration application of Sales Representatives,
refusal requirements for registration, and dispositions of Sales Representatives, etc. in connection with theentrusted services to register Sales Representatives under Article 64-7, Paragraph 1 of the Financial
Instruments and Exchange Act (Act No. 25 of 1948; hereinafter referred to as the “FIEA”) as applied mutatis
mutandis pursuant to Article 66-25 of such Act, thereby ensuring the proper and smooth operation of the Sales
Representative Registration System.

Article 2.

Definition“Sales Representative” in these Rules shall mean an officer or employee (hereinafter referred to as the“Employees, etc.”) engaged in the Financial Instruments Intermediary Service conducted by a Financial
Instruments Intermediary Service Provider prescribed in Article 4, Paragraph 1, Item 1 of the Articles ofIncorporation (hereinafter referred to as the “Financial Instruments Intermediary Service”) who performs for a
Full Member the acts set forth in any of the items in Article 64, Paragraph 1 of the FIEA as applied mutatis
mutandis pursuant to Article 66-25 of the FIEA (hereinafter referred to as the “Duties of a Sales
Representative”).

Article 3.

Obligation to Register Sales Representatives

If a Full Member lets the Employees, etc. of a Financial Instruments Intermediary Service Provider perform theduties of a Sales Representative pertaining to the Financial Instruments Intermediary Service, the Full Member
shall register such person’s name, date of birth and other matters stipulated in the By-laws in the Sales
Representative Registry (hereinafter referred to as the “Registry”) provided by the Association.
* Article 2 of the By-laws

Article 4.

Qualification Requirements for Registration of Sales Representative

The Association shall handle the Employees, etc. of a Financial Instruments Intermediary Service Provider
who fall under any of the following items as persons qualified to register as Sales Representatives:(1) A person who has passed the Class-1 Sales Representative Qualification Exam pursuant to Rules
Concerning Qualification Examination for Sales Representatives, etc., established by the Japan
Securities Dealers Association (hereinafter referred to as the “Rules for Qualification Examination by
JSDA”);(2) A person who has passed Class-2 Sales Representative Qualification Exam pursuant to the Rules for–1–

Qualification Examination by JSDA.

Article 5.

Sales Representative Qualifications

Full Members may not obtain registration for any person who is not qualified to register as a Sales
Representative as provided for in the preceding article.

Article 6.

Prohibition of Duties of Unqualified Sales Representatives

Full Members shall not let the Employees, etc. of a Financial Instruments Intermediary Service Provider
perform the duties of Sales Representative prescribed in Article 2 unless such person satisfies the requirements
set forth in the preceding article.

Article 7.

Rescission of Sales Representative Qualifications and Disposition for the Suspension of

Qualification Requirements
1. When the result of the examination of reported details from Full Members pursuant to Article 7 of the Rules
on Services of Employees, etc. Engaged in Financial Instruments Intermediary Services (hereinafter referred
to as the “Service Rules”) indicate that a Sales Representative (including a person who was formerly a Sales
Representative; hereinafter the same shall apply in this Article) has violated any laws or regulations inconnection with the duties of a sales representative or business incidental thereto or has committed any otherextremely inappropriate acts in connected to such duties, the Association shall rescind the sales
representative qualifications prescribed in Article 5 (hereinafter referred to as the “Disposition to Rescind
Sales Representative Qualifications” in this Article) or suspend the validity of the sales representative
qualifications requirements for a period not longer than 2 years (hereinafter referred to as the “Disposition
for the Suspension of Sales Representative Qualification Requirements” in this Article).
2. When a person who has become subject to a disposition for the suspension of Sales Representative
qualification requirements under the preceding paragraph falls under any of the following items, theAssociation shall rescind such representative’s qualifications as a Sales Representative:(1) When a person who has become subject to a disposition for the suspension of sales representative
qualification requirements for a period exceeding 1 month is then, within 5 years from the date thatdecision was issued, subject to another suspension of sales representative qualification requirements forwhich the suspension period exceeds 1 month;(2) When a person who has become subject to a disposition for the suspension of sales representative
qualification requirements is then, within 5 years from the date that decision was issued, subject toanother suspension of sales representative qualification requirements and during this suspension period
is subject to further disposition for suspension of sales representative qualification requirements.
3. Full Members shall not let any person who has become subject to disposition to rescind sales representative
qualifications pursuant to the provisions of the Paragraph 1 or 2 or Article 14 herein perform the duties of a
Sales Representative for 5 years from the date this decision was issued.
4. Full Members shall not let any person who has become subject to suspension of sales representative
qualification requirements pursuant to the provisions of the Paragraph 1 or Article 14 herein perform the–2–

duties of a Sales Representative during the period in which the validity of these sales representative
qualification requirements are suspended.

Article 8.

Disposition Procedures, etc.

The matters necessary for the disposition to rescind sales representative qualifications and the disposition forthe suspension of sales representative qualification requirements prescribed in the preceding article shall be
stipulated in the Rules on Dispositions of Members and Sales Representatives of Financial Instruments
Intermediary Service Providers, etc.

Article 9.

Applying for Registration of Sales Representative

1. When a Full Member intends to register a Sales Representative in accordance to Article 3, such Full Member
shall submit to the Association an application for registration stating the following matters using the“Electronic Notification and Storage System for Notifications from Members of the Association”(hereinafter referred to as the “Notification Management System of Investment Trusts Association”):(1) The trade name or name of the Full Member applying for registration (hereinafter referred to as the“Member for Registration Application”) and the name of its representative;(2) The following matters regarding the Sales Representative pertaining to the application for registration:(a) Name, date of birth, and gender;(b) Trade name or name of the Financial Instruments Intermediary Service Provider and the name of its
representative;(c) Distinction of officers or employees;(d) Date of passing the Class-1 or Class-2 Sales Representative Qualification Exam pursuant to theRules for Qualification Examination by JSDA;(e) Whether the person enrolled in sales representative recertification training conducted by the Japan
Securities Dealers Association, and if so, the date of completion for the sales representative
recertification training course most recently enrolled in;(f) Whether the person has served as a sales representative (including duties as a sales representative
prescribed in Article 75, Paragraph 2 of the Act on the Provision of Financial Services (hereinafterreferred to as the “Financial Services Act”)) and, for those who have served as a sales representative,
the period in which such duties were performed and trade name or name of the Financial
Instruments Business Operator or Registered Financial Institution (hereinafter referred to as“Financial Instruments Business Operator, etc.”), the Financial Instruments Intermediary Service
Providers, or Financial Service Intermediary Provider (meaning a Financial Service Intermediary
Provider as set forth in Article 11, Paragraph 6 of the Financial Services Act; the same shall apply
hereinafter) to which they belonged;(g) Whether the person has served duties of the Financial Instruments Intermediary Service or Securities,
etc. Intermediary Business Operations (meaning Securities, etc. Intermediary Business Operations
as defined in Article 11, Paragraph 4 of the Financial Services Act ; the same shall apply
hereinafter) and, for those who have served duties of the Financial Instruments Intermediary–3–Service or Securities, etc. Intermediary Business Operations, the period in which such duties were
performed;(h) Whether the person engaged in the Financial Instruments Business, and if so, the period during
which the person has engaged in this business;
2. The curriculum vitae or extract of residence certificates for the Sales Representative intending to obtainregistration or documents in lieu thereof and other documents stipulated by the By-laws shall be appended tothe application for registration.
* Articles 3 and 5 of the By-laws

Article 10

Inquiry to the Association

1. If a person who intends to register as a Sales Representative pursuant to the provisions in the precedingarticle was an Individual Financial Instruments Intermediary Service Provider during the past 5 years(meaning an Individual Financial Instruments Intermediary Service Provider as stipulated in Article 4, Item
3 of the Rules for Financial Instruments Intermediary Service Providers; the same shall apply hereinafter), iscurrently an Individual Financial Instruments Intermediary Service Provider, was a Sales Representative of a
Financial Instruments Intermediary Service Provider during the past 5 years, or is currently a Sales
Representative of a Financial Instruments Intermediary Service Provider, the Full Member shall inquiry to
the Association whether such person has been subject to a disposition by the Association.
2. When receiving the inquiry pursuant to the preceding paragraph, the Association shall respond to themember without delay regarding whether a disposition has been issued for such person during the 5 years
prior to the inquiry date and a summary thereof.

Article 11.

Registration and Notice of Registration

1. If a Full Member has applied for registration pursuant to the provisions of Article 9, Paragraph 1, theAssociation shall immediately register the matters set forth in Article 3 in the Registry, except in cases
falling under the provisions of Paragraph 1 of the following article.
2. When registering matters pursuant to the preceding paragraph, the Association shall notify the member forthe registration application in writing to that effect without delay.

Article 12.

Refusal of Registration

1. The Association shall refuse registration of any Sales Representative in the application for registration who
falls under any of the following items or who has made a false statement or failed to state a material fact in
the application for registration or any attached documents:(1) A person specified in Article 29-4, Paragraph 1, Item 2 (a) through (i) of the FIEA;(2) A person whose registration as a Sales Representative has been rescinded as prescribed in Article 64-5 of
the FIEA as applied mutatis mutandis pursuant to Article 66-25 of the FIEA and Article 77 of the
Financial Services Act or the provisions of Article 14, Paragraph 1 of these Rules, and for whom 5 years
have not passed since the date of such rescission;(3) A person registered as a Sales Representative belonging to a Financial Instruments Business Operator,–4–etc., Financial Instruments Intermediary Service Provider, or Financial Service Intermediary Provider
that is not a member for the registration application;(4) A person registered under Article 66 of the FIEA or a person registered under Article 12 of the Financial
Services Act (limited to the category of Securities, etc. Intermediary Business Operations)2. When the Association intends to refuse registration pursuant to the preceding paragraph, the Association
shall notify such member for registration application and conduct a hearing in accordance with theprovisions of the By-laws.
3. If the Association refuses registration as a result of the hearing pursuant to the preceding paragraph, theAssociation shall notify the member for the registration application in writing to that effect without delay.
* Article 4, Paragraph 1 of the By-laws

Article 13.

Notification of Changes, etc. to Registered Matters

1. When any of the following facts have occurred with respect to a Sales Representative who has beenregistered pursuant to Article 9, Paragraph 1, the Full Member shall, without delay, notify the Association tothat effect in the predetermined format using the Notification Management System of Investment Trust
Association:(1) When there have been changes to any of the matters set forth in Article 9, Paragraph 1, Item 2, (a) and (b);(2) When anything falls under any of the provisions of Article 64-4, Items 2 or 3 of the FIEA applied mutatis
mutandis pursuant to Article 66-25 of such Act;
(3) When a person ceases to perform the duties of a Sales Representative due to retirement or any otherreasons.
2. If a Sales Representative has caused customers loss due to misconduct as stipulated in Article 5 of theService Rules, a Full Member who intends to make a notification therefor pursuant to Item 3 of the preceding
paragraph shall submit to the Association an accident report as stipulated in Article 7 of such Service Rules
using the Notification Management System of Investment Trusts Association.
* Article 5 of the By-laws

Article 14.

Disposition of Sales Representatives

1. If a registered Sales Representative falls under any of the following items, the Association may rescind theregistration thereof or suspend the duties of a Sales Representative for a period not longer than 2 years:(1) When the person falls under any provision in Article 29-4, Paragraph 1, Item 2, (a) to (i) of the FIEA, orwhen it’s discovered that at the time of registration the person already fell under any of the items in
Article 12, Paragraph 1;(2) When the person has violated any laws or regulations in connection with the duties of a Sales
Representative pertaining to the Financial Instruments Intermediary Service or business incidental
thereto or has conducted any other acts deemed extremely inappropriate in connected to these duties;(3) In the event that registration has been deleted pursuant to Article 17, Paragraph 1, Item 3 during the past
5 years, when it’s discovered that any act committed while registered (limited to such act during the past
5 years) falls under the preceding item.
–5–2. When the Association intends to issue a disposition pursuant to the preceding paragraph, the Association
shall notify the Full Member to which such Sales Representative belongs and conduct a hearing inaccordance with the provisions of the By-laws.
3. If the Association has disposed of the Sales Representative as a result of the hearing pursuant to theprovisions in the preceding paragraph, the Association shall notify the Full Member to which such Sales
Representative belongs without delay, detailing the reason therefor in writing.
* Article 4, Paragraph 2 of the By-laws

Article 15.

Publication of Disposition of Sales Representatives

When making the notification set forth in Paragraph 3 of the preceding article, the Association shall makepublic the contents of the disposition pertaining to the Sales Representative in accordance with the following
items:(1) Subject of Public Announcement: Recommendations made by the Securities and Exchange SurveillanceCommission under Article 20, Paragraph 1 of the Act for Establishment of the Financial Services
Agency;(2) Contents of Public Announcement: Name and title of affiliated Financial Instruments Intermediary
Service Provider, outline of the violation of Laws and Regulations, etc., and the contents of thedisposition.

Article 16.

Training for Subjects of Disposition

Full Members shall promptly have any person who has become subject to suspension of sales representative
qualification requirements pursuant to the Article 7 Paragraph 1 herein or who has become subject tosuspension of the duties of a Sales Representative pursuant to Article 14, Paragraph 1 herein enroll in training
designated by the Association.

Article 17.

Deletion of Registration

1. In the event of the following cases, the Association shall delete the registration of the Sales Representativefrom the Registry:(1) When the registration of a Sales Representative is rescinded pursuant to the provisions of Article 14,
Paragraph 1;(2) When the Full Member to which such Sales Representative belongs loses its membership qualification
for the Association;(3) When the fact is ascertained that such person ceases to perform the duties of a Sales Representative due toretirement or any other reasons.
2. When deleting the registration of a Sales Representative pursuant to the provisions of Items 2 or 3 of thepreceding paragraph, the Association shall notify the Full Member to which such Sales Representative
belongs in writing to this effect without delay.

–6–Article 18.

Notification of Registration WorkIn the cases of registration prescribed in Article 11, Paragraph 1, changes to the registration pertaining to
notification prescribed in Article 13, disposition prescribed in Article 14, Paragraph 1 (excluding rescission ofregistration) or deletion of registration prescribed in the preceding article, the Association shall, without delay,
submit a document stating the following matters to the Director-General of the Local Finance Bureau having
jurisdiction over the location of the headquarters or principal business office of the Full Member to which such
Sales Representative belongs (or to the Director-General of the Fukuoka Local Finance Branch Bureau if
located within the jurisdiction of the Fukuoka Local Finance Branch Bureau):(1) Trade name or name of the Full Member to which such Sales Representative belongs;(2) Name and date of birth of the Sales Representative;(3) Contents of the registration work handled and the date handled;(4) If the contents of the registration work set forth in the preceding item is subject to a disposition forsuspension of duties or deletion of registration, the reason therefor.

Article 19.

Payment of Registration Fee

1. When a Full Member intends to obtain registration of a Sales Representative pursuant to Article 11,
Paragraph 1, such Full Member shall pay to the Association the registration fee set forth in Article 256 ofCabinet Office Order on Financial Instruments Business, etc.
2. The registration fees in the preceding paragraph shall be, in principle, paid in cash at the time the application
for registration is submitted.

Article 20.

Enrollment in Sales Representative Recertification Training, etc

1. Full Members shall have registered Sales Representatives (limited to persons whose qualification
requirements fall under Article 5; the same shall apply in this Article and the following article) enroll in asales representative recertification training course (hereinafter referred to as the “Recertification Training”)
within 1 year from the first day of the month every fifth year based on the date of registration thereof(hereinafter referred to as the “Sales Representative Registration Date”). Provided, however, that this shallnot apply to any person set forth in the By-laws.
2. When any person not registered as a Sales Representative has been newly registered as a Sales
Representative, the Full Member shall have such person enroll in the recertification training in the preceding
paragraph within 180 days after the sales representative registration date. Provided, however, that this shallnot apply to any person set forth in the By-laws.
3. The Association shall suspend all sales representative qualifications of any person who has not completed therecertification training within the period stipulated in the preceding two paragraphs on the day following thefinal day of this period (referred to hereinafter as the “Compulsory Enrollment Period”) and shall notify the
Full Member to which such person belongs to that effect.
4. A Full Member shall not let a person whose qualifications as a Sales Representative has been suspended
pursuant to the preceding paragraph perform the duties of a Sales Representative until such suspension iscancelled.
–7–5. A Full Member may have any person who has not completed the recertification training by the compulsory
enrollment period enroll in such training within 180 days from the day after the compulsory enrollment
period (hereinafter referred to as the “Grace Period”).
6. The Association shall cancel the suspension of sales representative qualifications for any person who hascompleted the recertification training pursuant to the preceding paragraph on the date of completion, andshall notify the Full Member to which such person belongs to that effect.
7. If a person fails to complete the recertification training during the grace period (including cases where theregistration of a Sales Representative is deleted during the grace period), the Association shall rescind all
sales representative qualifications and notify the Full Member to which such person belongs to that effect.
* Article 6 of the By-laws

Article 21.

Enrollment in In-House Training

Full Members shall have registered Sales Representatives enroll in annual in-house training to improve theircredentials as Sales Representatives, in addition to the recertification training.

Article 22.

Delegation to By-laws

Necessary matters for the enforcement of these Rules shall be stipulated in the By-laws.

Supplementary Provisions
These Rules shall come into effect on the date of approval (July 1, 2021) by the competent government agency
for amendments to Articles of Incorporation.

Supplementary Provisions
This amendment shall come into effect on January 20, 2022.
* The amended Articles are as follows:- Article 9, Paragraph 1, Item 2-(f) and 2-(g) are amended.
- Article 12, Paragraph 1, Items 2 through 4 are amended.

–8–

By-laws Concerning Rules on Registration, etc. of Sales Representatives
Established on June 10, 2021

Article 1.

Purpose

These By-laws provide for matters necessary for the enforcement of the Rules on Registration, etc. of Sales
Representatives (hereinafter referred to as the “Rules”).

Article 2.

Matters to Be Stated in Registry

The matters to be specified in the By-laws prescribed in Article 3 of the Rules shall be as follows:(1) Trade name or name of the member applying for the registration and the name of its representative;(2) The following matters regarding the Sales Representative pertaining to the application for registration:(a) Name, date of birth, and gender;(b) Trade name or name of the Financial Instruments Intermediary Service Provider and the name of
its representative;(c) Distinction of officers or employees;(d) Date of passing Class-1 or Class-2 Sales Representative Qualification Exam pursuant to the Rules
Concerning Qualification Examination for Sales Representatives, etc., established by the Japan
Securities Dealers Association;(e) Whether the person enrolled in sales representative recertification training conducted by the Japan
Securities Dealers Association, and if so, the date of completion for the sales representative
recertification training course most recently enrolled in;(f)

Whether the person has performed the duties of a Sales Representative, and if so, the trade nameor name of the Financial Instruments Business Operator or Registered Financial Institution(hereinafter referred to as the “Financial Instruments Business Operator, etc.”) or the Financial
Instruments Intermediary Service Provider to which the person belonged and the period in whichsuch duties were performed;(g) If a disposition was imposed for the suspension of the duties of a Sales Representative pursuant to
the provisions of Article 64-5, Paragraph 1 of the Financial Instruments and Exchange Act (Act No.
25 of 1948; hereinafter referred to as the “FIEA”) as applied mutatis mutandis pursuant to Article
66-25 of the FIEA and the provisions of Article 14, Paragraph 1 of the Rules, the date, reason andduration of such disposition;(h) Whether the person engaged in the Financial Instruments Intermediary Service, and if so, theperiod during which such person has engaged in these services.

Article 3.

Procedures for Registration Application, etc.

The applicant for the registration prescribed in Article 9 of the Rules shall be the Full Member Representative.

–1–

Article 4.

Procedures for Hearings, etc.

1. When conducting the hearing prescribed in Article 12, Paragraph 2 of the Rules, the Association shall notify
the Full Member Representative in writing stating the date, location, and outline of the hearing.
2. When conducting the hearing prescribed in Article 14, Paragraph 2 of the Rules, the Association shall notify
the Financial Instruments Intermediary Service Provider in writing through the Full Member stating the dateand location of the hearing and the content of the anticipated adverse disposition, and the necessary mattersshall be provided for in the Rules on Dispositions of Members and Sales Representatives of Financial
Instruments Intermediary Service Providers, etc.

Article 5.

Form of Application, etc. for Registration

1. Notification under Article 9 and the provisions of each item of Article 13, Paragraph 1 of the Rules shall be
as set forth in the following items:(1) Application for Registration of Sales Representatives prescribed in Article 9 of the Rules;

Attached

Form No. 1(2) For cases falling under Article 13, Paragraph 1, Item 1 of the Rules:

Attached Form No. 2(3) For cases falling under Article 13, Paragraph 1, Item 2 of the Rules:

Attached Form No. 3(4) For cases falling under Article 13, Paragraph 1, Item 3 of the Rules:

Attached Form No. 4

2. When submitting the application for registration of Sales Representatives pertaining to Item 1 of thepreceding paragraph, a document in which the Sales Representative and the member who made theapplication for registration pledges that the Sales Representative in the application for registration does not
fall under any of the items of Article 64-2, Paragraph 1 of the FEIA as applied mutatis mutandis pursuant to
Article 66-25 of the FEIA (documents stipulated in the By-laws prescribed in Article 9, Paragraph 2 of theRules) shall be affixed using Attached Form 5.

Article 6.

Special Provisions for Qualification Renewal Training

The persons provided for in the By-laws prescribed in the proviso to Article 20, Paragraphs 1 or 2 of the Rules
shall be the persons set forth in the following items:(1) A person who has, within 2 years prior to the first day of the period stipulated in Article 20, Paragraphs
1 or 2 of the Rules, passed the qualification exam conducted by the Japan Securities Dealers
Association or has completed a sales representative recertification training course conducted by the
Association;(2) A person whose enrollment in a recertification training course is deemed difficult by the Association
due to unavoidable circumstances (This may be subject to certain conditions as deemed necessary by
the Association.).

Supplementary Provision
These By-laws shall come into effect on the date of approval (July 1, 2021) by the competent government
agency for amendments to the Articles of Incorporation.

–2–

Attached Form No. 1

Application Date MM/DD/YYYY

To: Chairperson of the Investment Trusts Association, Japan(Trade Name or Name)(Representative)

Application for Registration of Sales Representative

As I would like to obtain registration for a Sales Representative, I hereby apply for registration inaccordance with the provision in Article 3 of the Rules on Registration, etc. of Sales
Representatives as shown in the attachment.

(Attachment: Application for Registration of Sales Representative)–3–

(Attachment to Attached Form No. 1)

Application for Registration of Sales Representative

No.

Application
Date(Mandatory)

Member No. Last Name
(Mandatory)(Mandatory)

Last NameFirst NameFirst Name
(Kana)(Kana)(Mandatory)(Mandatory)(Mandatory)

Gender(Mandatory)

Remarks on
Distinction of
Sales
Qualification
Officers or Representative Accredit
Obtainment(Mandatory)
Employees
Qualification
ation
Procedure(Mandatory)
Exam

Date of Birth(Mandatory)

1
2

NumberSales
Representative
NumberMember No.

Intermediary
Service
Provider’s
Number

From

To

1
2

–4–

Date ofDate of
Qualification Reason Qualification
Renewal(Accreditation)
Training(Mandatory)

Name ofIntermediary
Service
ProviderIntermediary
Representative
Sales
Service
Record ofof Intermediary Represent
Provider’sDisposition
Service Provider ative
NumberAttached Form No. 2

Application Date MM/DD/YYYY

To: Chairperson of the Investment Trusts Association, Japan(Trade Name or Name)(Representative)

Notification of Change of Registered Matters for Sales Representatives

I hereby notify the following change(s) as stated in the Attachment pursuant to the provisions ofParagraph 1 of Article 13 of the Rules on Registration, etc. of Sales Representatives.

(Attachment: Notification of Change of Registered Matters for Sales Representatives)–5–

(Attachment to Attached Form No. 2)

Notification of Change of Registered Matters for Sales Representatives

No.

Application
Date(Mandatory)

Member No.

Last Name(Mandatory)(Mandatory)

Last Name(Kana)(Mandatory)

First Name
(Mandatory)

First Name
(Kana)(Mandatory)

GenderDate of Birth(Mandatory)(Mandatory)

Distinction of
Officers or
Employees(Mandatory)

1
2

–6–

Name ofIntermediary
Intermediary Service Service Provider’s
ProviderNumberRepresentative ofIntermediary
Service Provider

Changed Items

Before Change

After Change

–7–Attached Form No. 3

Application Date YYYY/MM/DD

To: Chairperson of the Investment Trusts Association, Japan(Trade Name or Name)(Representative)

Notification of Disqualification of Registered Sales Representatives

Since it has been found that the person specified in the Attachment falls under the provisions of Article
29-4, Paragraph 1, Item 2 (a) through (g) of the FIEA, I hereby notify thereof in accordance with theprovisions of Article 13, Paragraph 1of the Rules on Registration, etc. of Sales Representatives.

(Attachment: Notification of Disqualification)–7–

(Attachment to Attached Form No. 3)

Notification of Disqualification of Registered Sales Representatives

Application
Member No.
No.
Date(Mandatory)(Mandatory)

Last Name(Mandatory)

Last Name(Kana)(Mandatory)

First Name
(Mandatory)

First Name
(Kana)(Mandatory)

GenderDate of Birth(Mandatory)(Mandatory)

Distinction of
Officers or
Employees(Mandatory)

1
2

–8–

Name ofIntermediary
Service Provider

Intermediary
Representative
Service Provider’s of Intermediary Disqualification
NumberService Provider

–8–

Attached Form No. 4

Application Date MM/DD/YYYY

To: Chairperson of the Investment Trusts Association, Japan(Trade Name or Name)(Representative)

Notification of Discontinuance of Duties of Registered Sales Representative

Since the person specified in the Attachment ceases to perform the duties of a Sales Representative, I
hereby notify thereof in accordance with the provisions of Article 13, Paragraph 1 of the Rules on
Registration, etc. of Sales Representatives.

(Attachment: Notification of Discontinuance of Duties)–9–

(Attachment to Attached Form No. 4)

Notification of Discontinuance of Duties of Registered Sales Representative

No.

Application Date(Mandatory)

Member No.

Last Name(Mandatory)(Mandatory)

Last Name(Kana)(Mandatory)

First Name
(Mandatory)

First Name
(Kana)(Mandatory)

GenderDate of Birth(Mandatory)(Mandatory)

1
2

–10–

Distinction ofName of
Officers orIntermediary
Employees Service Provider(Mandatory)

Intermediary
Service
Provider’s
NumberRepresentative
Cancellationof Intermediary
Date
Service Provider

Reason forCancellation

–10–

Attached Form No.5
Written Pledge
Date: MM/DD/YYYY(Sales Representative)

Name
Date of Birth(Registration Applicant)Location
Trade Name or Name
Name of Representative

We, hereby, pledge that the Sales Representative

does not fall under any of the categories of

persons listed below:
1. An adult ward or a person under curatorship or a person who is treated the same as such a person under the laws and regulations of a foreignstate;
2. A person that has become subject to an order to commence bankruptcy proceedings and has not obtained a restoration of rights, or a person thatis treated in the same manner under foreign laws and regulations;
3. A person who has been sentenced to imprisonment or a severer punishment (including an equivalent punishment under the laws and regulationsof a foreign state), if 5 years have not yet passed since the date on which that person finished serving the sentence or ceased to be subject to its
enforcement;
4. A person that, during the 30 days prior to the date of rescission, was the officer of a corporation, in a case in which a corporation was a Financial
Instruments Business Operator but has had the registration referred to in Article 29 of the Financial Instruments and Exchange Act (hereinafterreferred to as the “FIEA”) rescinded pursuant to the provisions of Article 52, Paragraph 1, Article 53, Paragraph 3, or Article 57-6, Paragraph 3of the FIEA; in a case in which a corporation was an Authorized Firm for On-Exchange Transactions prescribed in Article 60-4, Paragraph 1 of
the FIEA but has had the permission referred to in Article 60, Paragraph 1 of the FIEA rescinded pursuant to the provisions of Article 60-8,
Paragraph 1 of the FIEA; in a case in which a corporation was a Financial Instruments Intermediary Service Provider but has had the registrationreferred to in Article 66 of the FIEA rescinded pursuant to the provisions of Article 66-20, Paragraph 1 of the FIEA; in a case in which a
corporation was a credit rating agency but has had its registration referred to in Article 66-27 of the FIEA rescind pursuant to the provisions ofArticle 66-42, Paragraph 1 of the FIEA; and in a case in which the corporation had obtained registration or permission of the same kind in aforeign state pursuant to the provisions of a foreign law or regulation that is equivalent to the FIEA (including authorization or any otheradministrative disposition similar to such registration or permission), but has had that registration or permission rescinded; if 5 years have not yet
passed since the date of the rescission;
5. An individual who was a Financial Instruments Business Operator but has had the registration referred to in Article 29 of the FIEA rescindedpursuant to the provisions of Article 52, Paragraph 1 of the FIEA; or an individual who was a Financial Instruments Intermediary Service
Provider but has had the registration referred to in Article 66 of the FIEA rescinded pursuant to the provisions of Article 66-20, Paragraph 1 of
the FIEA; or an individual that had obtained registration of the same kind in a foreign state under the provisions of a foreign law and regulationequivalent to the FIEA (including permission or any other administrative disposition similar to such registration) or that had obtained permissionof the same kind as the permission referred to in Article 60, Paragraph 1 of the FIEA (including permission or any other administrative
disposition that is similar to such permission) but has had that registration or permission of the same kind rescinded; if 5 years have not yet
passed since the date of the rescission;
6. A person falling under the category of an officer who has been dismissed or removed under Article 52, Paragraph 2, Article 60-8, Paragraph 2,
Article 66-20, Paragraph 2, or Article 66-42, Paragraph 2 of the FIEA; or an officer whose dismissal or removal has been ordered in a foreignstate pursuant to the provisions of a foreign law or regulation that is equivalent to the FIEA, if 5 years have not yet passed since the date of thedisposition;
7. A person who has been sentenced to a fine (including an equivalent sentence under a foreign law or regulation) for violating the provisions of the
FIEA, the Secured Bond Trust Act, the Act on Engagement in Trust Business by Financial Institutions, the Commodity Derivatives Transaction
Act, the Act on Investment Trusts and Investment Corporations, the Real Estate Brokerage Act, Act Regulating the Receipt of Contributions, theReceipt of Deposits, and Interest Rates, the Installment Sales Act, the Money Lending Business Act, the Act on Deposit Transaction Agreements
for Specified Commodities, the Act on Regulation of Commodity Investment, the Act on Specified Joint Real Estate Ventures, the Act on
Securitization of Assets, the Act on Issuance, etc. of Bonds for Financial Corporations’ Loan Business, the Trust Business Act, the Patent Act,
the Utility Model Act, the Design Act, the Trademark Act, the Copyright Act, the Act on the Circuit Layout of a Semiconductor Integrated
Circuits, the Act on Special Measures for the Reorganization Proceedings of Financial Institutions, the Plant Variety Protection and Seed Act, theCivil Rehabilitation Act, the Act on Recognition of and Assistance for Foreign Insolvency Proceedings, the Act on General Incorporated
Associations and General Incorporated Foundations, the Act on Authorization of Public Interest Incorporated Associations and Public Interest
Incorporated Foundations, the Corporate Reorganization Act, the Bankruptcy Act, the Companies Act, or the Act on Prevention of Unjust Acts
by Organized Crime Group Members (excluding the provisions of Article 32, Paragraph 2, Item 7 of the same Act) or for violating the provisionsof a foreign law or regulation that is equivalent to any of these Acts, or for committing any offense under the Penal Code or the Act on
Punishment of Physical Violence and Others, if 5 years have not yet passed since the date on which that person finished serving the sentence orceased to be subject to its enforcement;
8. A person that has had a registration as Sales Representative rescinded pursuant to the provisions of Article 64-5, Paragraph 1 of the FIEA if 5
years have not yet passed since the date of the rescission;
9. A person registered as being a Sales Representative affiliated with a Financial Instruments Business Operator, Registered Financial Institution,
or Financial Instruments Intermediary Service Provider;
10. A person who has been registered pursuant to the provisions of Article 66 of the FIEA.
End

–11–

Rules on Financial Instruments Intermediary Service Providers
Established on June 10, 2021

Article 1.

PurposeThe purpose of these Rules is to provide for matters to be observed by Financial Instruments Intermediary
Service Providers in connection with the entrustment of business pertaining to the Financial Instruments
Intermediary Service by Full Members and to ensure the proper operation of business by such Financial
Instruments Intermediary Service Providers through the instruction and supervision of Full Members, thereby
contributing to the protection of investors.

Article 2.

Definition

In these Rules, the definitions of the terms set forth in the following items are as prescribed respectively inthose items.
(1) Acts of Financial Instruments Intermediation
The acts set forth in Article 2, Paragraph 11, Item 3 of the Financial Instruments and Exchange Act (ActNo. 25 of 1948; hereinafter referred to as the “FIEA”).
(2) Financial Instruments Intermediary Service
Services pertaining to the acts set forth in the preceding item.
(3) Financial Instruments Intermediary Service Provider
A Financial Instruments Intermediary Service Provider prescribed in Article 4, Paragraph 1, Item 1 of
the Articles of Incorporation.
(4) Officer
An officer of a corporate Financial Instruments Intermediary Service Provider who is in charge of the
Financial Instruments Intermediary Service. (excluding Article 5)(5) Employee
An employee or other worker of a Financial Instruments Intermediary Service Provider who is engaged
in the Financial Instruments Intermediary Service at its business office or other offices located in Japan.
(6) Sales Representative
An officer or employee of a Financial Instruments Intermediary Service Provider who has beenregistered as Sales Representative of the Financial Instruments Intermediary Service Provider
prescribed in Article 64, Paragraph 1 of the FIEA as applied mutatis mutandis pursuant to Article 66-25
of such Act. (excluding Article 5)(7) Duties of Sales Representatives
The acts set forth in the provisions of each item of Article 64, Paragraph 1 of the FIEA as appliedmutatis mutandis pursuant to Article 66-25 of such Act in connection with acts of financial instrumentsintermediation. Provided, however, that a person who has passed the Class-2 Sales Representative–1–

Qualification Exam prescribed in Article 4, Item 2 of the Rules on Registration, etc. of Sales
Representatives (hereinafter referred to as “Rules on Sales Representatives”) and has been registeredunder Article 3 of such Rules may not perform any of the following duties as a Sales Representative:(a) Complex investment trusts similar to over-the-counter derivatives transactions(b) Leveraged investment trusts

Article 3.

Strict Compliance with Laws and Regulations, etc. for Financial Instruments Intermediary

Service Providers
1. Full Members shall fully inform the Financial Instruments Intermediary Service Provider of the FIEA andother relevant laws and regulations as well as the Articles of Incorporation and other rules of the Association(hereinafter referred to as the “Laws and Regulations, etc.”) and ensure compliance with them.
2. When a Full Member learns that a Financial Instruments Intermediary Service Provider has committed any
act in violation of the Laws and Regulations, etc., such Full Member shall request for the Financial
Instruments Intermediary Service Provider to rectify this matter.

Article 4.

Execution of Service Agreement for Financial Instruments Intermediary Service

When executing a Service Agreement for the Financial Instruments Intermediary Service, Full Members shallprovide for the following matters in the Service Agreement:(1) Financial Instruments Intermediary Service Providers and their officers or employees shall comply with
the FIEA and other relevant laws and regulations.
(2) Full Members shall instruct and supervise Financial Instruments Intermediary Service Providers so thatthey comply with the Articles of Incorporation and other rules of the Associations, and the Financial
Instruments Intermediary Service Provider shall adhere to these instructions from the Full Members.
(3) If the Association has implemented any disposition or other measure for a Full Member pertaining to a
Financial Instruments Intermediary Service Provider who is an individual (hereinafter referred to as an“Individual Financial Instruments Intermediary Service Provider”) or a Sales Representative of a
Financial Instruments Intermediary Service Provider, the Individual Financial Instruments
Intermediary Service Provider or Sales Representative shall adhere to such disposition or measure.
(4) When the Association requests a Full Member to interview or submit material from the Financial
Instruments Intermediary Service Provider, the Financial Instruments Intermediary Service Provider
shall comply with these requests.
(5) Full Members may inspect the Financial Instruments Intermediary Service Provider, and the Financial
Instruments Intermediary Service Provider must comply with this inspection.

Article 5.

Prohibition on Associations with Full Members’ Sales Officers and Employees

1. Full Members shall not have any person who belongs to another Full Member conduct business pertaining to
the Financial Instruments Intermediary Service.
2. If a Full Member entrusts the Financial Instruments Intermediary Service with a person to whom a Sales–2–

Representative of another Full Member belongs, such Full Member shall clearly indicate in a contract thatthe registration of the Sales Representative must be deleted before such Sales Representative completes theregistration of the Financial Instruments Intermediary Service and that the entrusted services pertaining to
the Financial Instruments Intermediary Service may not be commenced unless the registration of the Sales
Representative is deleted.
3. A Full Member shall not give notification specifying any officer or other employee of a Financial
Instruments Intermediary Service Provider as its own Sales Officers and Employees.

Article 6.

Thoroughness of Basic Principles for Solicitation of Investment, etc.

1. Full Members must thoroughly communicate the following matters to the Financial Instruments
Intermediary Service Provider to ensure adherence to them:(1) To comply with Laws and Regulations, etc. and conduct business activities exclusively for investors,
ensuring that investor’s trust is the highest priority at all times.
(2) To maintain a sufficient understanding of customer’s investment experience, purpose of investment,
financial resources, etc., and endeavor to solicit investment suited to the customer’s intention andcurrent situation.
(3) To give sufficient explanations to customers and endeavor to garner their understanding with regard to
significant matters pertaining to transactions for acts of financial instruments intermediation.
(4) When soliciting investment, to make customers understand that investments should be made at their sole
discretion and responsibility.
2. A Full Member shall establish a system in which the Financial Instruments Intermediary Service Provider
uses the “Customer Card” provided by the Full Member pursuant to Article 6 of the Rules for Direct
Offerings of Beneficiary Certificates and appropriately solicits investment as set forth in Articles 6-2 and 6-3
of such Rules.

Article 7.

Establishment of Customer Management System for Financial Instruments Intermediary Service

Provider, Establishment of Internal Rules and Internal Control, etc.
Full Members shall instruct Financial Instruments Intermediary Service Providers to establish, maintain, andstrictly adhere to internal rules so as to ensure the proper transactions with customers through the Financial
Instruments Intermediary Service Provider and proper customer management system, and shall assess thebusiness operations of such Financial Instruments Intermediary Service Provider.

Article 8.

Prevention of Solicitation of Excessively Speculative Transactions

Full Members must properly instruct and manage the Financial Instruments Intermediary Service Providers sothat they will not solicit excessively speculative transactions from customers.

Article 9.

Examination of Representation of Advertising, etc. by Financial Instruments Intermediary

Service Providers
1. Full Members shall not have a Financial Instruments Intermediary Service Provider make any display of–3–

advertising, etc or any provision of gifts, etc. pertaining to the Financial Instruments Intermediary Service
conducted by the Financial Instruments Intermediary Service Provider unless these have been examined inaccordance with the provisions of the Rules on Display of Advertising, etc. and Provision of Gifts, etc.
(hereinafter referred to as the “Rules on Advertising, etc.” in the following paragraph).
2. When the Association deems the display of advertising, etc. and provision of gifts pertaining to the Financial
Instruments Intermediary Service provided by the Financial Instruments Intermediary Service Provider is inviolation or is likely to be in violation of the provisions of Articles 3 or 4 of the Rules on Advertising, etc.,
the Association may request the Full Member to submit a report or materials.
3. Full Members shall comply with any requests for submission of reports or materials prescribed in thepreceding paragraph.

Article 10.

Publicity of Complaint and Consultation Office for Customers

Full Members shall make known to Financial Instruments Intermediary Service Providers to pass onto
customers its department in charge of handling complaints filed by customers and disputes with customers
pertaining to the services of the Financial Instruments Intermediary Service Provider.

Article 11.

Prohibition of Duties of Unqualified Sales Representatives

1. Full Members shall prevent an Individual Financial Instruments Intermediary Service Provider fromperforming the duties of a Sales Representative unless any of the requirements in provisions of each item of
Article 4 of the Rules on Sales Representatives are satisfied.
2. The scope of the Sales Representative’s duties under the preceding paragraph shall be in accordance with theclassification in Article 2, Item 7.

Article 12.

Attendance, etc. in Sales Representative Qualification Renewal Training for Individual Financial

Instruments Intermediary Service Providers
1. Full Members shall have Individual Financial Instruments Intermediary Service Providers attend a sales
representatives qualification renewal training course as set forth in Article 20 of the Rules on Sales
Representatives (hereinafter referred to as the “Qualification Renewal Training”) so as to complete thiswithin the period set forth in the following items (hereinafter referred to as the “Compulsory Attendance
Period” in this Article):(1) within 180 days after the date services were commenced; or(2) within one year from the first day of the month every fifth year after the date services were commenced.
2. The provisions of the preceding paragraph shall not apply in those cases falling under any of the following
items:(1) A person who has, within 2 years prior to the first day of the Compulsory Attendance Period, passed thequalification exam or has completed a Qualification Renewal Training under the Rules Concerning
Qualification Examination for Sales Representatives, etc., established by the Japan Securities Dealers
Association (hereinafter referred to as the “Rules for Qualification Examination by JSDA”);(2) A person who has passed the qualification exam under the Rules for Qualification Examination by JSDA
–4–

within the Compulsory Attendance Period;(3) A person whose attendance in a Qualification Renewal Training is deemed difficult due to unavoidable
circumstances (This may be subject to certain conditions as deemed necessary by the Association.).
3. The Association shall suspend all sales representative qualifications of any Individual Financial Instruments
Intermediary Service Provider who has not completed the Qualification Renewal Training within theCompulsory Attendance Period on the day following the final day of this Period (referred to as the“Compulsory Attendance Deadline” in Paragraph 5) and shall notify such Individual Financial Instruments
Intermediary Service Provider to that effect through the Full Member.
4. A Full Member shall not have a person whose qualifications as a Sales Representative has been suspended
pursuant to the preceding paragraph perform the duties of a Sales Representative until such suspension iscancelled.
5. Full Members shall endeavor to have any Individual Financial Instruments Intermediary Service Providers
whose qualification as a Sales Representative has been suspended under the provisions of Paragraph 3 attend
Qualification Renewal Training so as to complete such Training within 180 days from the day after theCompulsory Attendance Deadline (hereinafter referred to as the “Grace Period” in this Article).
6. The Association shall cancel the suspension of sales representative qualifications for any person who hascompleted the Qualification Renewal Training in the Grace Period on the date of completion, and shall notify
the Individual Financial Instruments Intermediary Service Provider to that effect through the Full Member.
7. If a person fails to complete the Qualification Renewal Training during the Grace Period (including cases
where the registration of a Sales Representative is deleted during the Grace Period), the Association shallrescind sales representative qualifications from the Association for that person on the day after the final dayof the Grace Period, and shall notify the Individual Financial Instruments Intermediary Service Provider tothat effect through the Full Member.
8. When notifying under Paragraph 3, Paragraph 6, or the preceding paragraph, the Association shall inform all
Full Members to which the Individual Financial Instruments Intermediary Service Provider belongs to of thisnotification.

Article 13.

Prohibited Acts

Full Members shall prevent an Individual Financial Instruments Intermediary Service Provider fromperforming any of the acts set forth in the following items:(1) Solicitation through the provision of conclusive evaluations about price increases or decreases forbeneficiary certificates, etc. (meaning beneficiary certificates (including book-entry transfer beneficial
interest in an investment trust), investment securities (including book-entry transfer investment equity)
or investment corporation bond certificates (including book-entry transfer investment corporation
bonds); the same shall apply hereinafter);(2) Solicitations that present false representations or representations which are likely to cause amisunderstanding of significant matters;(3) Solicitations or actions that oblige customers to bear all or part of any losses;(4) Solicitations or actions with a promise to offer special benefits to customers–5–(5) Having a customer acquire beneficiary certificates, etc. while knowing that interested parties of a Full
Member are providing credit to the customer on the condition that the customer purchases said
beneficiary certificates, etc.
(6) Solicitations for the acquisition of an amount of beneficiary certificates, etc. that exceeds the customer’s
financial resources as known through the customer card, etc.
(7) Handling direct offerings or private placement for beneficiary certificates, etc. on a customer accountwithout obtaining the customer’s consent;(8) Solicitations or actions that obligate customers to share profits or losses;(9) Accepting an application to acquire beneficiary certificates, etc. from a customer while knowing that thecustomer is using a name other than their own(10) Not immediately delivering to the other party any money deposited by a customer, any beneficiary
certificates, etc. requested to be deposited at an asset management company, any money to be delivered
to a customer, any beneficiary certificates, etc. to be returned, and any documents relating to thebusiness(11) The lending or borrowing of money or beneficiary certificates, etc. to or from customers in connection
with the handling of direct offerings or private placement of Beneficiary Certificates, etc.
(12) Actions that divulge any secret that may have become known over the course of duties(13) Not explaining significant matters of a switchover of beneficiary certificates, etc. (meaning theacquisition of beneficiary certificates, etc. following the early cancellation of part of an investment trust
agreement involving actually held beneficiary certificates, etc., the refund of investment units, or thesale of such beneficiary certificates, etc.) to customers (except professional investors (meaning
professional investors as defined in Article 2, Paragraph 31 of the FIEA (excluding those customers
deemed to not be professional investors as defined in Article 34-2, Paragraph 5 of such Act andincluding those deemed as professional investors as defined in Article 34-3, Paragraph 4 of such Act(including when applied mutatis mutandis pursuant to Article 34,-4, Paragraph 6 of such Act)).) whensoliciting such a switchover of beneficiary certificates, etc.

Article 14.

Misconduct

Full Members shall instruct and supervise the Individual Financial Instruments Intermediary Service Provider
so as not to conduct any of the acts set forth in the following items (hereinafter referred to as “Misconduct”):(1) Executing a customer’s order without confirming the contents thereof;(2) Soliciting to mislead customers on any of the matters set forth in (a) through (c) below:(a) The nature of the securities(b) The conditions of the transaction(c) An increase or decrease in the price of securities(3) Mishandling business due to negligence in the execution of a customer’s order;(4) Erroneously executing a customer’s orders due to the malfunctioning of an electronic data processing
system; or(5) Committing any other act in violation of laws and regulations.
–6–Article 15.

Disposition of Violators

If an Individual Financial Instruments Intermediary Service Provider (including an entity that was an
Individual Financial Instruments Intermediary Service Provider; the same shall apply hereinafter except Article18) commits an act that violates any laws and regulations or any of the provisions of Article 11 or Article 13
herein or that is misconduct prescribed in the preceding article in connection to the Financial Instruments
Intermediary Service, the Full Member shall take the appropriate disposition of such Individual Financial
Instruments Intermediary Service Provider according to the nature of the violation.

Article 16.

Accident Report

1. If a Full Member is discovered to have caused any loss to a customer through any act of an Individual
Financial Instruments Intermediary Service Provider that violates any laws or regulations or the provisionsof Article 11 or Article 13 herein or that is misconduct set forth in Article 14 herein, in connection with the
Financial Instruments Intermediary Service, such Full Member shall immediately submit to the Associationan accident report by means of the Attached Form using the “Electronic Notification and Storage System for
Notification from Members of the Association” (hereinafter referred to as the “Notification Management
System of Investment Trusts Association”). Provided, however, that this shall not apply to cases where themisconduct set forth in Article 14, Items 1 and 2 are due to negligence as well as the misconduct set forth in
Item 3.
2. Whenever a new matter to be reported arises with regard to the content of the report in the preceding
paragraph, Full Members shall resubmit to the Association the report in that paragraph detailing thesecircumstances using the Notification Management System of Investment Trusts Association.
3. When requested by the Association to provide an explanation or evidential documents pertaining to thecontents of a report submitted as prescribed in the preceding two paragraphs, the Full Member shall comply
with such requests without delay.

Article 17.

Disposition for the Suspension of Sales Representative Qualification Requirements

1. When the result of the examination of reported details from Full Members pursuant to the provision of thepreceding article indicates that an Individual Financial Instruments Intermediary Service Provider has
violated any laws and regulations in connection with the duties of a Sales Representative or businessincidental thereto or has committed extremely inappropriate acts in connection with such duties, theAssociation shall suspend the validity of its registration qualification requirement as a Sales Representative
for a period not longer than 2 years (hereinafter referred to as the “Disposition for the Suspension of Sales
Representative Qualification Requirements”).
2. A Full Member shall not have an Individual Financial Instruments Intermediary Service Provider who has
become subject to suspension of Sales Representative qualification requirements pursuant to the provisionsof the preceding paragraph or Article 11 herein perform the duties of a Sales Representative during theperiod in which the validity of these Sales Representative qualification requirements are suspended.

–7–

Article 18.

Attendance in In-House Training for Individual Financial Instruments Intermediary Service

Providers
Full Members shall have Individual Financial Instruments Intermediary Service Providers attend annual
in-house training as stipulated in Article 21 of the Rules on Sales Representatives, in addition to Qualification
Renewal Training.

Article 19.

Training for Subjects of Disposition

Full Members shall promptly have any person who has become subject to suspension of sales representative
qualification requirements pursuant to the provisions of Article 17 herein attend the training designated by the
Association.

Article 20.

ReportWhen a case occurs that falls under any of the following items, a Full Member shall report the details thereof to
the Association without delay by a predetermined method.
(1) When a person who has entered into the Service Agreement for the Financial Instruments Intermediary
Service has been registered as conducting the Financial Instruments Intermediary Service;(2) When entrusting services for acts of financial instruments intermediation to a Financial Instruments
Intermediary Service Provider;(3) When ceasing the entrustment under the preceding item to the Financial Instruments Intermediary
Service Provider;(4) When the trade name or name of the Financial Instruments Intermediary Service Provider is changed;(5) When the Local Finance Bureau with which the Financial Instruments Intermediary Service Provider isregistered (Local Finance Branch Bureau) is changed;(6) When any Financial Instruments Intermediary Service Provider or its officers or employees have beenfound to have committed an act in violation of any laws or regulations or any of various rules inconnection with the Financial Instruments Intermediary Service (excluding cases where an “Accident
Report” has been submitted under the provisions of Article 7 of the Rules on Services of Employees, etc.
Engaged in Financial Instruments Intermediary Services; the same shall apply in the following item);(7) When details of the acts in the preceding item have been identified;(8) When it’s found that an inspection under the provisions of the FIEA has been commenced or has been
completed for the Financial Instruments Intermediary Service Provider;(9) When it’s found that the Financial Instruments Intermediary Service Provider is subject to a rescinded
registration, suspension of services, or dismissal of an officer under the provisions of Article 66-20 of
the FIEA;(10) When it’s found that the Financial Instruments Intermediary Service Provider or its officers or
employees have been sentenced to a fine or severer punishment under the provisions of the FIEA or any
other laws and regulations in connection with the Financial Instrument Intermediary Service;(11) When it’s found that the Financial Instruments Intermediary Service Provider has become a party to any
litigation or mediation in connection with the Financial Instrument Intermediary Service or that such–8–

litigation or mediation has been concluded;(12) In addition to aforementioned in the preceding item, anything deemed necessary by the Association.

Article 21.

Handling Entrustment by Multiple Full Members

1. If two or more Full Members entrust the Financial Instruments Intermediary Service to one Financial
Instruments Intermediary Service Provider, these Full Members shall, upon consultation with each other,
designate one of them to represent the multiple Full Members (hereinafter referred to as the “Representative
Full Member”). The Representative Full Member shall immediately notify the Association thereof using theNotification Management System of Investment Trusts Association with the written consent of the Financial
Instruments Intermediary Service Provider. The same shall apply when the Representative Full Member has
been changed.
2. The Representative Full Member shall carry out the procedures pertaining to Financial Instruments
Intermediary Service Providers with the Association set forth in the following items:(1) Submission of Application for Registration, etc. of Sales Representatives as stipulated in Article 9,
Paragraph 1 of the Rules on Sales Representatives;(2) Reporting under Items 1, 4 and 5 of the preceding article;(3) Procedures for training for persons whose duties as Sales Representatives are suspended as stipulated in
Article 15 of the Rules on Sales Representatives;(4) Procedures to attend Qualification Renewal Training as stipulated in Article 22 of the Rules on Sales
Representatives;(5) In addition to aforementioned in the preceding item, anything deemed necessary by the Association.
3. If notifying the Financial Instruments Intermediary Service Provider is necessary in the preceding paragraph,
the Association shall do so through the Representative Full Member.

Supplementary Provision
These Rules shall come into effect on the date of approval (July 1, 2021) by the competent government agency
for amendments to Articles of Incorporation.

–9–

Rules on Services of Employees, etc. Engaged in Financial Instruments
Intermediary Services
Established on June 10, 2021

Article 1. Purpose
The purpose of these Rules is to provide for the standard of services and sales representative qualifications, etc.
of officers or employees (hereinafter referred to as the “Employees, etc.”) engaged in the Financial Instruments
Intermediary Services of a Financial Instruments Intermediary Service Provider prescribed in Article 4,
Paragraph 1, Item 1 of the Articles of Incorporation (hereinafter referred to as the “Financial Instruments
Intermediary Service”) as well as to clarify members’ responsibilities for supervising Employees, etc., thereby
protecting investors and ensuring the proper and smooth operation of business.

Article 2. Definition
In these Rules, the definitions of the terms set forth in the following items are as prescribed respectively inthose items.
(1) Acts of Financial Instruments Intermediation
The acts set forth in Article 2, Paragraph 11, Item 3 of the Financial Instruments and Exchange Act (ActNo. 25 of 1948; hereinafter referred to as the “FIEA”).
(2) Financial Instruments Intermediary Service
Services pertaining to the acts set forth in the preceding item.
(3) Financial Instruments Intermediary Service Provider
A Financial Instruments Intermediary Service Provider prescribed in Article 4, Paragraph 1, Item 1 of
the Articles of Incorporation.
(4) Officer
An officer of a corporate Financial Instruments Intermediary Service Provider who is in charge of the
Financial Instruments Intermediary Service.
(5) Employee
An employee or other worker of a Financial Instruments Intermediary Service Provider who is engaged
in the Financial Instruments Intermediary Service at its business office or other offices located in Japan.
(6) Sales Representative
An Employee, etc. of a Financial Instruments Intermediary Service Provider who has been registered as
Sales Representative of the Financial Instruments Intermediary Service Provider prescribed in Article
64, Paragraph 1 of the FIEA as applied mutatis mutandis pursuant to Article 66-25 of such Act.
(7) Duties of Sales Representatives
The acts set forth in Article 64, Paragraph 1, Item 1 of the FIEA as applied mutatis mutandis pursuant to
Article 66-25 of such Act in connection with acts of financial instruments intermediation.

–1–

Article 3. Compliance with Laws, Regulations, and Rules, etc.
When Employees, etc. of a Financial Instruments Intermediary Service Providers engage in the Financial
Instruments Intermediary Service, Full Members shall ensure that this business is performed in a fair andproper manner in accordance with the FIEA, other relevant laws and regulations, and the rules of the
Association.

Article 4. Prohibited Acts
Full Members shall prevent the Employees, etc. of a Financial Instruments Intermediary Service Provider fromperforming any of the acts set forth in the following items:(1) Solicitation through the provision of conclusive evaluations about price increases or decreases forbeneficiary certificates, etc. (meaning beneficiary certificates (including book-entry transfer beneficial
interest in an investment trust), investment securities (including book-entry transfer investment equity)
or investment corporation bond certificates (including book-entry transfer investment corporation
bonds); the same shall apply hereinafter);(2) Solicitations that present false representations or representations which are likely to cause amisunderstanding of significant matters;(3) Solicitations or actions with a promise to bear all or part of the loss to customers(4) Solicitations or actions with a promise to offer special benefits to customers(5) Having a customer acquire beneficiary certificates, etc. while knowing that interested parties of a Full
Member are providing credit to the customer on the condition that the customer purchases said
beneficiary certificates, etc.
(6) Solicitations for the acquisition of an amount of beneficiary certificates, etc. that exceeds the customer’s
financial resources as known through the customer card, etc.
(7) Handling direct offerings or private placement for beneficiary certificates, etc. on a customer accountwithout obtaining the customer’s consent;(8) Solicitations or actions that obligate customers to share profits or losses;(9) Accepting an application to acquire beneficiary certificates, etc. from a customer while knowing that thecustomer is using a name other than their own(10) Not immediately delivering to the other party any money deposited by a customer, any beneficiary
certificates, etc. requested to be deposited at an asset management company, any money to be delivered
to a customer, any beneficiary certificates, etc. to be returned, and any documents relating to thebusiness(11) The lending or borrowing of money or beneficiary certificates, etc. to or from customers in connection
with the handling of direct offerings or private placement of Beneficiary Certificates, etc.
(12) Actions that divulge any secret that may have become known over the course of duties(13) Not explaining significant matters of a switchover of beneficiary certificates, etc. (meaning theacquisition of beneficiary certificates, etc. following the early cancellation of part of an investment trust
agreement involving actually held beneficiary certificates, etc., the refund of investment units, or the–2–sale of such beneficiary certificates, etc.) to customers (except professional investors (meaning
professional investors as defined in Article 2, Paragraph 31 of the FIEA (excluding those customers
deemed to not be professional investors as defined in Article 34-2, Paragraph 5 of such Act andincluding those deemed as professional investors as defined in Article 34-3, Paragraph 4 of such Act(including when applied mutatis mutandis pursuant to Article 34,-4, Paragraph 6 of such Act)).) whensoliciting such a switchover of beneficiary certificates, etc.

Article 5. Misconduct
Full Members shall instruct and supervise the Employees, etc. of Financial Instruments Intermediary Service
Providers so that they will not conduct any of the acts set forth in the following items (hereinafter referred to as“Misconduct”):(1) Executing a customer’s order without confirming the contents thereof;(2) Soliciting to mislead customers on any of the matters set forth in (a) through (c) below:(a) The nature of the securities(b) The conditions of the transaction(c) An increase or decrease in the price of securities(3) Mishandling business due to negligence in the execution of a customer’s order;(4) Erroneously executing a customer’s orders due to the malfunctioning of an electronic data processing
system; or(5) Committing any other act in violation of laws and regulations.

Article 6. Disposition of Violators
If the Employees, etc. of a Financial Instruments Intermediary Service Provider (including a person who was an
Employee, etc.; the same shall apply hereinafter) commits an act that runs counter to any of the provisions ofArticle 6 or each item of Article 4 of the Rules on Registration, etc. of Sales Representatives (hereinafterreferred to as the “Rules on Sales Representatives”) or is misconduct prescribed in the preceding article inconnection with the Financial Instruments Intermediary Service, the Full Member shall take the proper
disposition of such Employees, etc. according to the nature of the violation.

Article 7. Accident Report
1. If a Full Member is discovered to have caused any loss to a customer through any act by the Employees, etc.
of a Financial Instruments Intermediary Service Provider that runs counter to any laws or regulations or any
provisions of Article 6 or each item of Article 4 of the Rules for Sales Representatives or that is misconduct
prescribed in Article 5 herein, in connection with the Financial Instruments Intermediary Service, such Full
Member shall immediately submit to the Association an accident report by means of the Attached Formusing the “Electronic Notification and Storage System for Notifications from Members of the Association”(hereinafter referred to as the “Notification Management System of Investment Trusts Association”).
Provided, however, that this shall not apply to cases where the misconduct set forth in Article 5, Items 1 and
2 is due to negligence as well as the misconduct set forth in Item 3.
–3–

2. Whenever a new matter to be reported arises with regard to the content of the report in the preceding
paragraph, Full Members shall resubmit to the Association the report in that paragraph detailing thesecircumstances using the Notification Management System of Investment Trusts Association.
3. When requested by the Association to provide an explanation or evidential documents pertaining to thecontents of a report submitted as prescribed in the preceding two paragraphs, the Full Member shall comply
with such requests without delay.

Supplementary Provision
These Rules shall come into effect on the date of approval (July 1, 2021) by the competent government agency
for amendments to Articles of Incorporation.

–4–

Attached Form
Application Date YYYY/MM/DD
To: Chairperson of the Investment Trusts Association, Japan(Trade Name or Name)(Representative)
The Financial Instruments Intermediary Service Provider conducting the Financial Instruments
Intermediary Service entrusted by the Company has been discovered to have caused a loss to acustomer due to the act of its Employees, etc. that runs counter to laws or regulations, any provisions ofArticle 6 or each item of Article 4 of the Rules on Registration, etc. of Sales Representatives or
misconduct prescribed in Article 5 of Rules on Services of Employees, etc. Engaged in Financial
Instruments Intermediary Services. Therefore, the Company hereby reports such losses under theprovisions of Article 7 of the Rules on Service of Employees, etc. Engaged in Financial Instruments
Intermediary Services.
NoticeName and Provisions, etc. ofLaws and Regulations, and theRules of the Association, etc.
Outline of the Case
1. Contents of acts
2. Background, causes, etc. of occurrenceContents of Acts, etc.

3. Status of internal control system at the time of occurrence
4. Status of correction and improvement
5. Reporting to supervisory government agency[Contact person]

Affiliation
Title and name
Telephone Number[Precautions for Descriptions]1.
Briefly enter the contents in the “Outline of the Case” column and enter details in the “Contents of Acts” column.
2.
Describe in detail the beginning of discovery, date and time of occurrence, department of occurrence, etc. for“Background of Occurrence.”
3.
If the status of corrections or improvements that they’re being formulated or improved, a separate report shall be
submitted after the completion thereof.
In addition, if dispositions, etc. are made, the details thereof shall also be described.
4.
Whether a report has been made to the supervisory government agency, and if so, the details (date of report, etc.)
thereof shall be entered, and a copy thereof shall be attached thereto.
(Please remove the red text before submitting this report.)–5–

Rules for the Handling of Public Offerings or Private Placements of Beneficiary
Certificates through a Financial Service Intermediary Provider
Established on January 20, 2022

Article 1.

PurposeThe purpose of these Rules is to provide for the matters to be observed when a Full Member (meaning a Full
Member as defined in Article 7, Paragraph 1, Item 1 of the articles of incorporation; the same shall apply
hereinafter) makes a public offering or private placement of beneficiary certificates (including book-entry
transfer investment trust beneficiary certificates; the same shall apply hereinafter) through a financial service
intermediary provider and thereby optimize transactions via financial service intermediary providers andcontribute to investor protection.

Article 2.

Definition

In these Rules, the definitions of the terms set forth in the following items shall be as prescribed respectively inthose items.
(1) Financial Service Intermediary Provider: A financial service intermediary provider as defined in Article
11, Paragraph 6 of the Act on the Provision of Financial Services (hereinafter referred to as the“Financial Services Act”).
(2) Securities, Etc. Intermediary Business Operations: Securities, etc. intermediary business operations as
defined in Article 11, Paragraph 4 of the Financial Services Act (excluding operations involved in theitems listed in Item 4 of said paragraph).

Article 3.

Confirmation, etc. of a Financial Service Intermediary Provider’s Internal Control System

1. When a Full Member concludes a contract with a financial service intermediary provider or a contract for
securities, etc. intermediary business operations, such Full Members must confirm that said financial service
intermediary provider maintains an internal control system that adequately complies with the Financial
Services Act and other laws and regulations in order to contribute to the optimal public offering or private
placement of beneficiary certificates through said financial service intermediary provider.
2. Full Members must endeavor to establish a cooperative relationship with the financial service intermediary
provider they have contracted for securities, etc. intermediary business operations for the sharing ofnecessary information in a timely and appropriate manner.

Article 4.

Concluding a Contract for Securities, Etc. Intermediary Business Operations

When a Full Member concludes a contract with a financial service intermediary provider for securities, etc.
intermediary business operations, such Full Member shall specify the following items in said contract from theperspective of fulfilling the Full Member’s responsibilities in the securities market and complying with the–1–

Financial Instruments and Exchange Act and other laws and regulations. Provided, however, that this shall not
apply to any matters for which it is clear that a contract is not required in consideration of the contents or
characteristics of the instruments and services handled by the financial service intermediary provider.
(1) Matters concerning responsibilities and the division of roles regarding delivering documents,
explanations, etc. to customers;(2) Matters concerning the provision and management of information relating to customers;(3) Matters concerning countermeasures against the violation of laws, etc. and accidents;(4) Matters concerning cooperation and the division of roles for the prevention of unfair trade;(5) Matters concerning the handling of disputes with customers;(6) Matters concerning the prevention of the transfer of profits from crimes, etc.;(7) Matters concerning advertisements;(8) Matters concerning the review and renewal of the contract;(9) Matters concerning the confirmation of the performance status of entrusted matters, etc.; and(10) Other matters deemed necessary by the Full Members

Article 5.

Proper Use of Customer Cards, etc.

1. When a Full Member entrusts customer solicitation to a financial service intermediary provider, such Full
Member must provide the information considered necessary for the financial service intermediary provider
to properly solicit investments and manage said customers from among the information on customer cards(meaning a customer card described in Article 6 of the Regulations for Direct Offering, etc. of Beneficiary
Certificates, etc.; the same shall apply hereinafter.).
2. When a Full Member receives information on a customer from a financial service intermediary provider
based on a contract prescribed in Article 4, the Full Member must update the contents of the customer card asnecessary.

Article 6.

Performance of Obligations Based on Division of Roles

Full Members shall perform their obligations for the delivery of written documents, explanations, etc. tocustomers and the prevention of unfair trading based on customer information held by the Full Member inaccordance with the division of roles described in a contract prescribed in Article 4.

Article 7.

Confirmation of the Performance Status of Entrusted Matters, etc.

Full Members shall, appropriately or on a regular basis, confirm the internal control system, performance status,
etc. of business entrusted to the financial service intermediary provider.

Article 8.

Prohibited Acts

Full Members shall not request a financial service intermediary provider to perform acts similar to securities,
etc. intermediary business operations and other acts to solicitate customers that involve beneficiary certificatesthat cannot be handled by financial service intermediary providers pursuant to the provisions of the Financial
Services Act.
–2–

Article 9.

ReportWhen any of the following items applies to a Full Member, such Full Member shall use the Attached Form to
immediately report the contents thereof to the Association via the “Electronic Notification and Storage System
for Notifications from Members of the Association.”(1) When a Full Member enters into a contract with a financial service intermediary provider for securities,
etc. intermediary business operations;(2) When a Full Member cancels a contract with a financial service intermediary provider for securities, etc.
intermediary business operations;(3) When there is a change to the trade name or name of the financial service intermediary provider withwhom a Full Member has concluded a contract for securities, etc. intermediary business operations; or(4) In addition to aforementioned in the preceding item, anything deemed necessary by the Association.

Article 10

Concept of Rules

The Association shall set forth matters regarding the operation of these Rules among Full Members in the“Concept of Rules for the Handling of Public Offerings or Private Placements of Beneficiary Certificatesthrough a Financial Service Intermediary Provider.”Supplementary Provision
These Rules shall come into effect on January 20, 2022.

–3–

Attached Form
Application Date YYYY/MM/DD

The Investment Trusts Association, Japan
To: Chairperson(Trade Name or Name)(Representative)

Report on the Conclusion, etc. of a Contract with a Financial Service Intermediary Provider for Securities, etc.
Intermediary Business Operations
Content of report [1. Conclusion of contract 2. Cancellation of contract 3. Change](Circle the appropriate number)

1. Conclusion of contract or 2. Cancellation of contract
Kana
Trade Name, etc.
Date of Contract(Conclusion/Cancellation)

MM/DD/YYYY

Attached documents- A document (copy) describing the contents of the contract for securities, etc. intermediary business
operations concluded with the financial service intermediary provider [only when concluding a contract]

3. Change (a change to the trade name or name of the financial service intermediary provider for which acontract exists)

Item(Before changes)(After changes)

Kana
Trade Name, etc.
Date of Change

MM/DD/YYYY[Contact person]

Affiliation
Title and name
Telephone Number–4–

Guidelines on Product Classification
Established on October 26, 2006
Revised on September 19, 2008
Revised on September 16, 2009
Revised on March 18, 2010
Revised on February 21, 2013

Purpose
These Guidelines are intended to provide guidelines for investors and beneficiaries to classify products in aneasy-to-understand manner and to state the classification on the cover page, etc. of the prospectus and otherdocuments in order to contribute to the use of the selection of products, such as the purchase of investment
trusts (which shall cover investment trust beneficiary certificates for public offering), and settlor companies
shall classify the products according to the methods stipulated below:

I. Product classification stated on the cover page of the prospectus, etc.
The product classification stated on the cover page of the prospectus, etc. shall be, in principle, the combinationof “1.,” “2.,” and “3.” below. In addition, if the classification listed in 4. is applicable, such classification shallbe indicated in addition to “1.,” “2.,” and “3.”

1. Categories of unit-type investment trusts and additional-type investment trusts(1) Unit-type investment trust: A fund in which the funds publicly offered are initially trusted as a unit, andno additional funds are established thereafter.
(2) Additional-type investment trust: A fund that is established once, but subsequently additionallyestablished and managed together with the existing trust property.

2. Categories by investment target area
(1) Domestic: A product for which the prospectus or the basic terms and conditions of the investment truststates that the principal investment income from incorporated assets is substantially derived fromdomestic assets.
(2) Overseas: A product for which the prospectus or the basic terms and conditions of the investment truststates that the principal investment income from incorporated assets is substantially derived fromoverseas assets.
(3) Domestic and overseas: A product for which the prospectus or the basic terms and conditions of theinvestment trust states that the investment income from domestic and overseas assets are substantiallythe source.

3. Categories by investment target assets(1) Shares: A product for which the prospectus or the basic terms and conditions of the investment truststates that the principal investment income from incorporated assets is substantially derived from shares.
－1－(2) Bonds: A product for which the prospectus or the basic terms and conditions of the investment truststates that the principal investment income from incorporated assets is substantially derived from bonds.
(3) Real estate investment trust (REIT): A product for which the prospectus or the basic terms andconditions of the investment trust states that the principal investment income from incorporated assets issubstantially derived from beneficiary certificates of real estate investment trusts and investment
certificates of real estate investment corporations.
(4) Other assets: Products for which the prospectus or the basic terms and conditions of the investment truststates that the principal investment income from incorporated assets is substantially derived from assets
other than those listed in (1) through (3) above. The name of the asset that is the specific source ofincome may also be stated together with other assets.
(5) Combined assets: A product for which the prospectus or the basic terms and conditions of the investment
trust states that the investment income from multiple assets among the assets listed in (1) through (4)above is substantially derived from the investment income.

4. Independent categories(1) MMF (Money Management Fund): MMFs stipulated in the Rules on Operation of MMFs, etc.
(2) MRF (Money Reserve Fund): MRFs stipulated in the Rules on Operation of MMFs, etc.
(3) ETF: Securities investment trusts stipulated in Article 12, item (i) and item (ii) of the Order for
Enforcement of the Act on Investment Trusts and Investment Corporations (Cabinet Order No. 480 of
2000) and listed securities investment trusts stipulated in Article 9-4-2 of the Act on Special Measures
Concerning Taxation (Act No. 26 of 1957).

II. Product classification used as a supplement to the cover page of the prospectus, etc.
If any of the following classification is applicable, such classification shall be stated on the cover page of theprospectus, etc. in addition to the product classification listed in “I”.

(1) Index type: A product for which the prospectus or the basic terms and conditions of the investment truststates that the company aims to achieve investment results linked to various indices.
(2) Special type: A product for which the prospectus or the basic terms and conditions of the investment
trust states a special mechanism or investment method that is deemed necessary to draw the attention of
investors. In the case of “conditional operation type” in the sub-classification of special types in theattribute category of “III.,” such sub-classification shall be appended in parentheses, and in the case ofother sub-classification, such sub-classification may be appended in parentheses.

III. Attribute categories of products
In the product description of the main text of the prospectus, etc. (meaning anything except the cover page;
provided, however, that the sub-classification of special types may be stated on the cover page), efforts shall be－2－

made to explain by using the following attribute categories and their definitions in addition to the classificationof “I.” and “II.” In addition, this does not preclude each company’s own fund explanation:

1. Attribute categories by investment target assets: Attribute categories shall be stated for the incorporated
assets themselves, not for the assets that are the source of income as defined in “I.” If the assets that are thesource of income differ from incorporated assets, the company shall clearly state such difference and shallendeavor to refer to the difference from those stated on the cover page based on the definition of “I.”
(1) Shares:[1] General: Any shares not applicable to the following attributes of large-cap stocks and medium- tosmall-cap stocks:[2] Large-cap stocks: Those for which the prospectus or the basic terms and conditions of the investment
trust states that the investment will be made mainly in large-cap stocks.
[3] Medium- to small-cap stocks: Those for which the prospectus or the basic terms and conditions of theinvestment trust states that the investment will be made mainly in medium- to small-cap stocks.
(2) Bonds:[1] General: Any bonds not applicable to the following attributes of public bonds, corporate bonds, andother bonds:[2] Public bonds: Bonds for which the prospectus or the basic terms and conditions of the investment
trust states that the investment will be made mainly in government bonds issued by the governmentof Japan or other countries (including local government bonds, government guaranteed bonds,
government agency bonds, and international agency bonds; the same shall apply hereinafter).
[3] Corporate bonds: Bonds for which the prospectus or the basic terms and conditions of the investment
trust states that the investment will be made mainly in corporate bonds issued by companies, etc.
[4] Other bonds: Bonds for which the prospectus or the basic terms and conditions of the investment truststates that the investment will be made mainly in bonds other than public bonds or corporate bonds.
[5] Attributes by credit such as grading: In the prospectus or the basic terms and conditions of theinvestment trust, in addition to the categories by the “issuer” of [1] through [4] above, if there is aclear statement with respect to credit in particular, it is also permissible to include “high-gradebonds,” “low-grade bonds,” and others in addition to the categories listed in [1] through [4] above.
(3) Real estate investment trust: No further detailed classification shall be made.
(4) Other assets: The assets incorporated shall be stated.
(5) Combined assets: If any of the following sub-classification applies, such sub-classification may also be
included:[1] Asset allocation fixed type: A product for which the prospectus or the basic terms and conditions of
the investment trust states that multiple assets are to be the investment target and that the rate ofincorporation is to be fixed. The incorporated assets shall be listed.
[2] Asset allocation change type: A product for which the prospectus or the basic terms and conditions of
the investment trust states that multiple assets are to be the investment target and that the rate ofincorporation is to be flexibly changed or do not state that the same is to be fixed. The incorporated－3－

assets shall be listed.

2. Attribute categories by settlement frequency[1] Once a year: A product for which the prospectus or the basic terms and conditions of the investment
trust states that the account is settled once a year.
[2] Twice a year: A product for which the prospectus or the basic terms and conditions of the investment
trust states that the account is settled twice a year.
[3] Four times a year: A product for which the prospectus or the basic terms and conditions of theinvestment trust states that the account is settled four times a year.
[4] Six times a year (bimonthly): A product for which the prospectus or the basic terms and conditions of
the investment trust states that the account is settled six times a year.
[5] Twelve times a year (monthly): A product for which the prospectus or the basic terms and conditionsof the investment trust states that the account is settled twelve times a year (monthly).
[6] On a daily basis: A product for which the prospectus or the basic terms and conditions of theinvestment trust states that the account is settled on a daily basis.
[7] Others: All products that do not apply to the above attributes.

3. Attribute categories by investment target area: (Multiple use possible)[1] Global: A product for which the prospectus or the basic terms and conditions of the investment truststates that the investment income from incorporated assets is derived from global assets. Whether“Japan” is included or not in “global assets” shall be clearly stated.
[2] Japan: A product for which the prospectus or the basic terms and conditions of the investment truststates that the investment income from incorporated assets is derived from assets in Japan.
[3] North America: A product for which the prospectus or the basic terms and conditions of theinvestment trust states that the investment income from incorporated assets is derived from assets in
the North American region.
[4] Europe: A product for which the prospectus or the basic terms and conditions of the investment truststates that the investment income from incorporated assets is derived from assets in the European
region.
[5] Asia: A product for which the prospectus or the basic terms and conditions of the investment truststates that the investment income from incorporated assets is derived from assets in the Asian region
excluding Japan.
[6] Oceania: A product for which the prospectus or the basic terms and conditions of the investment truststates that the investment income from incorporated assets is derived from assets in the Oceania
region.
[7] Latin America: A product for which the prospectus or the basic terms and conditions of theinvestment trust states that the investment income from incorporated assets is derived from assets in
the Latin America region.
[8] Africa: A product for which the prospectus or the basic terms and conditions of the investment trust－4－states that the investment income from incorporated assets is derived from assets in the Africa region.
[9] Middle and Near East (Middle East): A product for which the prospectus or the basic terms andconditions of the investment trust states that the investment income from incorporated assets isderived from assets in the Middle and Near East region.
[10] Emerging: A product for which the prospectus or the basic terms and conditions of the investment
trust states that the investment income from incorporated assets is derived from assets in theemerging region (emerging growth countries (regions)).

4. Attribute categories by investment form
[1] Family funds: A product for which the prospectus or the basic terms and conditions of the investment
trust states that investments are made with the mother investment trust (excluding those invested onlyin the fund of funds) as an investment target.
[2] Fund of funds: Fund of funds stipulated in Article 2 of the Rules on Management of Investment
Trusts, etc.

5. Attribute categories by currency hedge[1] With currency hedge: A product for which the prospectus or the basic terms and conditions of theinvestment trust states that a full currency hedge or a currency hedge on some assets will be
conducted.
[2] No currency hedge: A product for which the prospectus or the basic terms and conditions of theinvestment trust states that the currency exchange will not be hedged or for which there is nostatement to the effect that the currency exchange will be hedged.

6. Attribute categories by target index in index funds[1] Nikkei 225[2] TOPIX[3] Other indices: Any item that does not apply to the above indices.

7. Special type[1] Bull-bear type: A product for which the prospectus or the basic terms and conditions of theinvestment trust states that derivative instruments are used for purposes other than hedging, actively
invested, and that it is aimed at linking or backlinking to various indices, assets, etc. (including fixed
doubling of linkage or backward linkage).
[2] Conditional operation type: A product for which the prospectus or the basic terms and conditions of
the investment trust states that the target investment results (base value, redemption value, profit
distribution, etc.), the trust termination date, etc. are determined by certain conditions that are
determined based on the value of an explicit index, etc. by investing in structured bonds or using
other special mechanisms.
[3] Long/short type/Absolute profit seeking type: A product for which the prospectus or the basic terms－5－and conditions of the investment trust states that it aims to pursue profits that are less susceptible tospecific markets, or that it aims to pursue profits through a long/short strategy.
[4] Other types: Products for which the prospectus or the basic terms and conditions of the investment
trust states special mechanisms or investment methods that do not fall under any of the attributes
listed in [1] through [3] above.

IV. Precautions when stating product classification and attribute categories
The product classification listed on the cover page of the prospectus (meaning the classification of “I.” and “II.”,and if the sub-classification of the special type of “III.” is stated on the cover page, the sub-classification ofsuch special type shall be included; the same shall apply hereinafter), and for attribute categories used in themain text of the prospectus, each list and its definition shall be stated in such prospectus with reference to theexamples separately stipulated. With regard to the classification not used on the cover page of the prospectus
and the definition of the attribute categories not used in the main text, it is permissible to state a method that
contributes to the convenience of investors, such as stating the website address, etc. of the Association insteadof stating the same in the prospectus. In addition, the product classification, the attribute categories of products,
and others stated in the prospectus shall also be stated in the securities registration statement.

V. Special provisions on the prospectus for delivery
With regard to the prospectus for delivery, the phrase “each list and its definition shall be stated in suchprospectus with reference to the examples separately stipulated” in “IV.” above shall be applied by replacing
the phrase “shall be stated in the form stipulated in Article 2 of the By-laws for the Rules for Preparation of
Prospectus for Delivery based on Article 2, Item 9 of the Rules for Preparation of Prospectus for Delivery.”Supplementary Provisions
1. This resolution of the board of directors shall come into force on the date separately stipulated and shallapply to newly established funds on or after the effective date.
2. Any fund established prior to the date of implementation of this resolution of the board of directors shallapply from the date on which one (1) year has elapsed from the effective date; provided, however, that thisshall not preclude the application of the provisions of this resolution of the board of directors during theperiod up to the date on which one (1) year has elapsed.

Note:

The Effective Date of the Guidelines on Product Classification, etc. (Board of Directors on May 16,2008) stipulates that the Guidelines on Product Classification (Board of Directors resolution dated October
26, 2006) shall come into force on January 1, 2009.
－6－

Supplementary Provisions
This resolution of the Board of Directors shall come into force on January 1, 2009.

Supplementary Provisions
This amendment shall come into force on September 16, 2009.

Supplementary Provisions
This amendment shall come into force on July 1, 2010.
Provided, however, that this amendment shall apply from the prospectus for delivery of the securities
registration statement newly submitted on or after the effective date.
Supplementary Provisions
1. This amendment shall come into force on February 21, 2013 and shall apply to those who have submitted a
new securities registration statement on or after the effective date.
2. Notwithstanding the foregoing “1.,” Full Members shall not be precluded from operating based on theprovisions after the amendment until the date of such application.

－7－

Example
Form of the list of product classification and attribute categories, and points to consider in writing

Product classification table
Investment
target area

Unit type/additional type

Investment target assets(source of income)Independent
category

Supplementary
classification

SharesDomestic

MMF

Unit type

Bond
Overseas

Index type

Real estate investment trust

MRF

Other assets
(
)

ETF

Additional type
Domestic andoverseas

Special typeCombined assets

Note: The product classification applicable to the Fund is indicated by shading.

Attribute category table
Investment
target assets

Settlement
frequency

Investment
target area

SharesGeneralLarge-cap
stocksMedium- tosmall-cap
stocksOnce a year

GlobalTwice a year

Japan

Four times a
year

North
America

Six times ayear(bimonthly)

EuropeTwelve times
a year(monthly)

Oceania

Bond
GeneralPublic bonds
Corporate
bonds
Other bonds
Creditattributes()
Real estate
investment
trust

Investment
form

Currencyhedge

On a daily
basis
Others()

Special type

Bull-bear type
Nikkei 225
Family Funds

Yes
(

)

Asia

Latin America

Target index

Conditional
operation type
TOPIX

Fund of funds

None
Others()

AfricaMiddle andNear East(Middle East)

Long/short
type/Absolute
profit seeking
type

Others()

Emerging
Other assets()
Combined
assets()
Asset
allocation
fixed type
Asset
allocation
change type

Note: The attribute categories applicable to the Fund are indicated by shading.

－8－

(Points to Consider in Writing)

1. Appropriate product classification and attribute categories shall be indicated by shading. In addition, for the
shaded classification or attribute category, the definition shall be stated in such a way that investors caneasily understand it based on the Guidelines on Product Classification (Board of Directors resolution).
2. The columns for “Independent category,” “Supplemental classification,” in the product classification table
and the columns for “Investment form,” “Target index,” and “Special type” in the attribute category tableshall be indicated only when there is an applicable attribute category, and if there is no applicable category,the column shall be omitted. In addition, the “Currency hedge” column shall be indicated only wheninvesting in assets denominated in foreign currencies.
3. In parentheses of “Other assets” in the column “Investment target assets (source of income),” the types of“products,” “beneficial interest in trust,” and others shall be included. In addition, in the column of theparentheses of “Combined assets” in the attribute category table, for example, the incorporated assets such as“shares and bonds” shall be included, and in the case where the “Asset allocation fixed type” and “Asset
allocation change type” are not included in the main text of the prospectus, etc., they may be deleted from theattribute category table.
4. In the parentheses of “Credit attributes” in the “Investment target assets” column, state “high-grade bonds,”“low-grade bonds,” and others. In addition, the parentheses of “Other assets” shall be included in “beneficial
interest in trust,” “beneficial interest in loan trust,” and others.
5. In the column “Investment target assets” in the attribute category table, “Other assets (investment trust
securities)” shall be stated in the case of a family fund or a fund of funds. The real investment target assets
beyond the investment trust securities may also be included, and if such assets are stated, for example,
incorporated assets such as “other assets (investment trust securities (shares))” shall be stated.
6. In the parentheses of “Others” in the “Settlement frequency” column, the appropriate settlement frequency
shall be included.
7. In the “Currency hedge” column stated in the attribute category, state whether or not hedges are applied
against exchange risk against the yen.
8. In the parentheses of “With currency hedge“in the “Currency hedge“ column, state “full hedge,” “partial
hedge,” “timely hedge,” and others for currency hedge against the yen.
9. In the parentheses of “Others” in the “Target index” column, state the name of the index to be targeted.

－9－10. For the “Long/short type/Absolute profit seeking type” in the “Special type” column, only the attributecategory corresponding to either the long/short type or the absolute profit seeking type shall be stated. In
addition, in the parentheses of “Other types,” state the appropriate names indicating the nature of themechanism, investment method, etc.
11. In the parentheses of “3.” through “10.” above, the references may be stated in the main text of theprospectus, instead of stating in such parentheses.

－10－Committee Resolution on Guidelines on Product Classification
Established on September 11, 2008

This Committee Resolution stipulates matters to be noted in the operation of the Guidelines on Product
Classification.
1. With regard to “Categories by investment target assets,” the points of “principal” shall be categorized bypaying attention to the following matters:(1) It means cases where it is clear that the principal investment income from incorporated assets issubstantially derived from XX, such as when the prospectus or the basic terms and conditions of theinvestment trust clearly state wording such as “based on the full investment management at XX” or “basedon the incorporation of XX at a high level,” which means that investment will be conducted approximately
100% or similar thereto. The term “XX” shall include the statement of any single asset class of any one of“shares,” “bonds,” “real estate investment trusts,” or “other assets.”(2) It means cases where it can be confirmed by the settlor company that the prospectus or the basic terms andconditions of the investment trust states that the main investment target is a single asset class, either“shares,” “bonds,” “real estate investment trusts,” or “other assets,” and that the content is equivalent tothe standards in (1).
(3) It means cases where “combined assets” means any case other than (1) and (2) in which the prospectus or
the basic terms and conditions of the investment trust clearly states the wording substantially “major
investment targets are multiple asset classes” or the like.
2. With regard to “Categories by investment target area,” the points of “principal” shall be categorized bypaying attention to the following matters:(1) In cases where it is clear that the principal investment income from incorporated assets is substantiallyderived from domestic assets, such as cases where the prospectus or the basic terms and conditions of theinvestment trust clearly states that “‘overseas’ assets shall be kept at approximately 10% or less” or“‘overseas’ assets shall be kept at approximately 10%,” or other wording, such cases shall be categorizedas “domestic.” (including those for which the settlor company can confirm that the content is equivalent)(2) In cases where it is clear that the principal investment income from incorporated assets is substantiallyderived from overseas assets, such as cases where the prospectus or the basic terms and conditions of theinvestment trust clearly states that “‘domestic’ assets shall be kept at approximately 10% or less” or“‘domestic’ assets shall be kept at approximately 10%,” or other wording, such cases shall be categorized
as “overseas.” (including those for which the settlor company can confirm that the content is equivalent)(3) “Domestic and overseas” shall be categorized as other than (1) and (2) above.
3. With regard to “Categories by investment target area,” the investment target area shall be categorized basedon the judgment criteria of “country in which the issuer is located” if the principal investment target asset is－1－

“shares,” and “currency” if the principal investment target asset is “bonds”; provided, however, that thisshall not apply to “bonds” where it is appropriate to use the “country in which the issuer is located” as the
judgment criteria in consideration of credit risk, etc. In the case of “structured bonds” with underlying assetsthat are the source of profits, such as “ products” and “shares,” they shall be categorized based on the
judgment criteria of the “country in which the issuer is located” of the underlying assets that are the source ofprofits.
4. With regard to the attribute category by “investment target assets” of family funds or fund of funds shall be
categorized as “other assets (investment trust securities)” based on the concept that “the attribute category
for assets themselves shall be stated” of the Guidelines on Product Classification; provided, however, thatfrom the viewpoint of clarifying the real investment target assets of “other assets (investment trust
securities),” it is possible to also include the real investment target assets.

Supplementary Provisions
1. This Sub-committee Resolution shall come into force on 1 January, 2009.
2. As from October 1, 2008, the “Sub-committee Resolution on Guidelines on Product Classification” shall be
replaced by the “Committee Resolution on Product Classification.”－2－

Guidelines for Protection of Personal Information
Established on March 18, 2005
Revised on September 21, 2007
Revised on March 21, 2008
Revised on March 19, 2009
Revised on December 17, 2009
Revised on December 20, 2012
Revised on October 15, 2015
Revised on February 18, 2016
Revised on April 20, 2017
Revised on July 15, 2021

Article 1.

Purpose

1. In accordance with the Act on the Protection of Personal Information (Act No. 57 of 2003; hereinafterreferred to as the “Protection Act”), the Cabinet Order to Enforce the Act on the Protection of Personal
Information (Cabinet Order No. 507 of 2003; hereinafter referred to as the “Enforcement Order”), theEnforcement Rules for the Act on the Protection of Personal Information (Rules of the Personal Information
Protection Commission No. 3 of 2016; hereinafter referred to as the “Enforcement Rules”), the Basic Policyon the Protection of Personal Information (Cabinet Decision on April 2, 2004), the Guidelines on the Act on
the Protection of Personal Information (Volume on General Rules) (Notification of the Personal Information
Protection Commission No. 6 of 2016), (Volume on Provision to a Third Party in a Foreign Country) of thesaid guidelines (Notification of the Personal Information Protection Commission No. 7 of 2016), (Volume
on Confirmation and Record-Keeping Obligations upon Third-Party Provision) of the said guidelines(Notification of the Personal Information Protection Commission No. 8 of 2016), (Volume on Anonymously
Processed Information) of the said guidelines (Notification of the Personal Information Protection
Commission No. 9 of 2016), the Guidelines for the Protection of Personal Information in the Finance Sector(Notification of the Personal Information Protection Commission, Financial Services Agency No. 1 of 2017)
and the Practical Guideline on the Security Control Actions under the Guidelines for Protection of Personal
Information in the Finance Sector (Notification of the Personal Information Protection Commission,
Financial Services Agency No. 2 of 2017), and others (hereinafter referred to as the “Laws and Regulations
on Protection of Personal Information”), these guidelines provide for specification of utilization purposes,
security control actions and other matters related to personal information as well as specific actions to betaken by Full Members (meaning Full Members specified in Article 7, Paragraph 1, Item 1 of the Articles ofIncorporation; the same shall apply hereinafter) of the Investment Trusts Association, Japan (hereinafterreferred to as the “Association”) in order to ensure the proper handling of personal information in business
operations related to the investment management business (meaning operations set forth in Article 2,
Paragraph 8, Item 12 (a) and Item 14 of the same paragraph of the Financial Instruments and Exchange Act(Act No 25 of 1948; hereinafter referred as the “FIEA”) including business operations incidental thereto)
operated by Full Members and business operations related to investment trust managed without instructions
from the settlor, and business operations set forth in Article 2, Paragraph 8, Item 7 of the FIEA in association
with beneficiary certificates, etc. (meaning beneficiary certificates (including book-entry transfer beneficial－1－interest in an investment trust), investment corporation bond certificates (including book-entry transfer
investment equity) or investment corporation bond certificates (including book-entry transfer investment
corporation bonds)).
2. In order to prevent divulgation, unauthorized leakage, or any other similar incident involving personal
information, it is necessary for Full Members to develop systems for appropriate control of personal
information in accordance with Laws and Regulations on Protection of Personal Information as well as
related laws and regulations and guidelines, etc.

Article 2.

Definition

In the Guidelines, the terms set forth in the following items are as defined in the respective items.
(1) Personal Information
This term refers to any information relating to a living person that is capable of identifying a specificperson (including any information that can be readily collated with other information and thereby canidentify a specific individual) or which contains a personal identification code.
“Information Relating to an Individual” is not limited to information identifying an individual such as
name, address, gender, date of birth and face image, and is all information representing facts, judgment,
and evaluation with respect to attributes such as body, property, occupation and title of an individual,
which also includes evaluation information, information made public by publications, etc., andinformation in the form of image or voice, whether or not such information is concealed by encryption, etc.
If the above-mentioned “Information Relating to an Individual,” combined with names, etc., “can identify
a specific individual,” it becomes “Personal Information.”
If Information Relating to a non-living Individual is simultaneously Information Relating to a living
Individual such as bereaved family members, the information shall be regarded as Information Relating to
the living Individual.
In addition, information relating to corporations and other organizations, such as company name, does
not basically fall under the category of “Personal Information”; however, when Information Relating to an
Individual, such as names of officers, is included in the information, such part of the information falls
under the category of “Personal Information.”
Furthermore, “individuals” naturally include foreign nationals.
(1-2) Personal Identification Codes
This term refers to letters, numbers, symbols, and other codes specified in Article 1 of the Enforcement
Order as those that can identify a specific individual from the information alone.
(2) Personal Information Database, etc.
This term refers to a collection of information including Personal Information listed below; provided,
however, that this shall exclude those that are unlikely to damage rights and interests of individuals in lightof the method of use.
(a) Database, etc. systematically arranged so that specific Personal Information can be searched byusing a computer(b) In addition to those described in (a) above, database, etc. systematically arranged so that specific－2－Personal Information can be easily searched by organizing personal information in accordance withcertain rules, which are placed in such a state that it can be easily searched with a table of contents,
index, codes, etc.
(3) Personal Data
This term refers to Personal Information constituting a Personal Information Database, etc.
(4) Personal Information Handling Business Operators
This term refers to a person providing a Personal Information Database, etc. for use in business; however,excluding central government organizations, local governments, incorporated administrative agencies, etc.
set forth by the Act on the Protection of Personal Information Held by Incorporated Administrative
Agencies, etc. (Act No. 59 of 2003), and local incorporated administrative agencies set forth by the Local
Incorporate Administrative Agencies Act (Act No. 118 of 2003).
The term “business” used herein in reference to “for use in business” means similar acts that are
repeatedly and continuously carried out for a certain purpose and deemed to be business under normalsocial conventions, whether for profit or non-profit.
In addition, any person providing a Personal Information Database, etc. for use in business is deemed to
be a Personal Information Handling Business Operator, regardless of the number of specific individuals
identified by Personal Information constituting the Personal Information Database, etc.
Even a non-juridical association (voluntary organization) or an individual with no capacity of right shallbe deemed to be a Personal Information Handling Business Operator if the association or individual
provides a Personal Information Database, etc. for use in business.
(5) Principal
The term refers to a specific person identified by Personal Information.
(6) Retained Personal Data
This term refers to any Personal Data for which a Full Member has all authority to disclose, correct, add toor delete from the contents, to discontinue use, to erase, or to discontinue provision to any third party at therequest of a Principal or his/her representative, other than the following Personal Data.
(a) Personal Data that are likely to harm the life, body, or property of a Principal or a third party if theirpresence or absence is made known(b) Personal Data that are likely to promote or induce illegal or unjust acts if their presence or absence ismade known(c) Personal Data that are likely to impair the safety of Japan, impair trust relationship with othercountries or international organizations, or suffer disadvantages in negotiations with other countries
or international organizations if their presence or absence is made known(d) Personal Data that are likely to interfere with the prevention, suppression, or investigation of crimes
or the maintenance of public safety and order if their presence or absence is made known(e) Personal data to be deleted (except for renewal) within six (6) months(7) Special Care-required Personal Information
The term refers to Personal Information comprising certain descriptions, etc. as those whose handlingrequires special care so as not to cause unfair discrimination, prejudice, or other disadvantages.
－3－(8) Sensitive Information
In the finance sector, this term refers to Special Care-required Personal Information and information
relating to individuals’ membership in a labor union, family origin, registered domicile, healthcare, andsex life (among these, excluding the matters falling under the category of the Special Care-required
Personal Information) (excluding any information made public by the Principal or by a national
government organ, local public entity, or any of those set forth in the items of Article 76, Paragraph 1 of
the Protection Act, or the items of Article 6 of the Enforcement Rules, or seemingly clear informationacquired by visual observation, filming, or photographing of the Principal).
(9) Anonymously Processed Information
This term refers to Information Relating to an Individual that can be produced from processing Personal
Information so as to neither be able to identify a specific individual by taking action prescribed inaccordance with the divisions of Personal Information nor be able to restore the Personal Information.

Article 3.

Specification of Purpose of Use

1. A Full Member must, in handling Personal Information, specify in what kind of business the Personal
Information is provided for use and for what purpose it is used as explicitly as possible so that the Principal
can reasonably anticipate them.
2. When a utilization purpose in the preceding paragraph is specified, abstract expressions such as “to be used
for a purpose required by the company” are not considered to satisfy the requirement of “as explicitly as
possible.” Therefore, a Full Member must make efforts to specify the utilization purpose by indicating thefinancial instruments or services to be provided.
3. When utilization purposes of specific Personal Information are limited by laws and regulations, etc., a Full
Member is to clearly indicate that fact.
4. A Full Member must, in case of altering utilization purpose, not do so beyond “the scope recognizedreasonably relevant to the pre-altered utilization purpose” stipulated in Article 15, Paragraph 2 of theProtection Act.

Article 4.

Format of Consent

When obtaining the consent of a Principal specified in the next article, Article 13 and Article 13-2, a Full
Member is to do so in writing (including an electromagnetic record; the same shall apply hereinafter) in
principle.
In the case where the Principal is a minor, adult ward, person under curatorship, or person under assistanceand does not have the ability to judge results of the consent to the handling of Personal Information, and othercases, consent must be obtained from a person with parental authority or legal representative, etc.

Article 5.

Restriction due to a Utilization Purpose

1. A Full Member must not handle Personal Information without obtaining in advance a Principal’s consent
beyond the necessary scope to achieve a utilization purpose specified in Article 3.
However, use of Personal Information (such as sending an e-mail or making a telephone call) to obtain a－4－

Principal’s consent in advance shall not be deemed as a utilization for unintended purposes even if it is notincluded the utilization purposes as originally specified.
2. A Full Member must, in case of having acquired Personal Information as a result of succession of a businessfrom another Personal Information Handling Business Operator because of a merger or other reason, nothandle the Personal Information without obtaining in advance a Principal’s consent beyond the necessary
scope to achieve the pre-succession utilization purpose of the said Personal Information.
In addition, when personal information is handled within the necessary scope to achieve thepre-succession utilization purpose, it shall not be deemed as a utilization for unintended purposes, and a
Principal’s consent does not need to be obtained.
3. The preceding two paragraphs shall not apply to any of the following cases.
(1) Cases based on laws and regulations(2) Cases in which there is a need to protect a human life, body, or property, and when it is difficult to obtaina Principal’s consent(3) Cases in which there is a special need to enhance public hygiene or promote fostering healthy children,
and when it is difficult to obtain a Principal’s consent(4) Cases in which there is a need to cooperate with a central government organization or a local government,
or a person entrusted by them performing affairs prescribed by laws and regulations, and when there isa possibility that obtaining a Principal’s consent would interfere with the performance of the said affairs

Article 6.

Handling of Sensitive Information

1. A Full Member shall not acquire, use, or provide to a third party any Sensitive Information, except for thefollowing cases.
(1) Cases based on laws and regulations, etc.
(2) Cases in which there is a need to protect a human life, body, or property(3) Cases in which there is a special need to enhance public hygiene or promote fostering healthy children(4) Cases in which there is a need to cooperate with a central government organization or a local government,
or a person entrusted by them performing affairs prescribed by laws and regulations(5) Cases in which there is a need to acquire, use, or provide to a third party any Sensitive Information of its
employees, etc. concerning their affiliation to or membership in a political or religious group or labor
union within the scope necessary for the performance of affairs relating to withholding taxes, etc.
(6) Cases in which any Sensitive Information is acquired, used, or provided to a third party to the extent
necessary for performing the transfer of rights and obligations arising from inheritance procedures(7) Cases in which a Full Member acquires, uses, or provides to a third party any Sensitive Information basedon the consent of a Principal to the extent necessary for performing its services from the necessity toensure appropriate operation of its businesses run by the Full Member(8) Cases in which biometric information, which falls under the category of Sensitive Information, is usedbased on a Principal’s consent for the purpose of identity verification－5－

2. When a Full Member acquires, uses, or provides to a third party any Sensitive Information in the case set
forth in the preceding paragraph, the Full Member shall handle the information with extreme caution so as to
avoid acquisition, use, or provision to a third party of the information beyond the grounds set forth in thesame paragraph.
3. When a Full Member acquires, uses, or provides to a third party any Sensitive Information in the cases set
forth in Paragraph 1 of this article, the Full Member must make a response appropriately in accordance withLaws and Regulations on Protection of Personal Information.
4. Article 23, Paragraph 2 of the Protection Act (opt-out provision) is not to apply to the case where a Full
Member provides Sensitive Information to a third party.

Article 7.

Proper Acquisition of Personal Information

1. A Full Member must not acquire Personal Information by deceit or other improper means. In addition, a Full
Member must not unjustifiably infringe interests of a Principal in acquiring Personal Information from athird party.
2. When acquiring Personal Information through provision from a third party, a Full Member shall confirm thestatus of compliance with laws and regulations of the provider and also confirm that the Personal
Information has been lawfully acquired.

Article 8.

Notification, Public Disclosure, Clear Indication, etc. of a Utilization Purpose When Acquiring

Personal Information
1. A Full Member must, in case of having acquired Personal Information except in cases where a utilization
purpose has been disclosed in advance to the public, promptly inform a Principal of, or disclose to the public,
the utilization purpose. In this case, the method to “inform” is to be in writing, in principle, and as for the
method to “disclose to the public,” a Full Member must employ appropriate methods, such as making therelevant matters public on its website, etc. or posting or keeping the document at a counter of the head officeor any other business office, etc., depending on the sales method of its financial instruments or other mode ofbusiness.
2. A Full Member must, notwithstanding the provisions of the preceding paragraph, in cases where it acquires
the Principal’s Personal Information stated in a written contract or other document as a result of conclusionof a contract with a Principal, state the utilization purpose explicitly to the said Principal in advance. This,
however, shall not apply in cases where there is an urgent need to protect a human life, body, or property.
3. A Full Member must, in case of altering a utilization purpose, inform a Principal of, or disclose to the public,
the post-altered utilization purpose.
4. The preceding three paragraphs shall not apply to any of the following cases.
(1) Cases in which there is a possibility that informing a Principal of, or disclosing to the public, a utilization
purpose would harm a Principal or third party’s life, body, property, or other rights and interests(2) Cases in which there is a possibility that informing a Principal of, or disclosing to the public, a utilization
purpose would harm the rights or legitimate interests of the Full Member(3) Cases in which there is a need to cooperate with a central government organization or a local government－6－

performing affairs prescribed by laws and regulations, and when there is a possibility that informing a
Principal of, or disclosing to the public, a utilization purpose would interfere with the performance ofthe said affairs(4) Cases in which it can be recognized, judging from the acquisitional circumstances, that a utilization
purpose is clear

Article 9.

Assurance, etc. about the Accuracy of Data Contents

A Full Member must endeavor to keep Personal Data accurate and up-to-date within the necessary scope toachieve a utilization purpose by establishing procedures for collation and confirmation at the time of inputting
Personal Information into a Personal Information Database, etc., establishing procedures for correction, etc. in
the event of discovery of errors, etc., renewing record matters, setting a retention period, etc.
It should be noted that it is not necessary to update the Personal Data held in a single uniform way or at all
times, and it is sufficient to ensure accuracy and recency within the necessary scope in accordance with therespective utilization purposes.
In addition, a Full Member must endeavor to delete Personal Data without delay when utilization of the data
has become unnecessary, such as cases where the utilization purpose has been achieved and there is no longer
reasonable reason to hold such Personal Data in relation to the purpose, and where the business constituting thepremise for the purpose has been discontinued although the utilization purpose has not been achieved. However,this shall not apply to cases where the retention period, etc. is stipulated by laws and regulations.

Article 10.

Security Control Action

1. A Full Member must take necessary and appropriate action, such as establishment of basic policies andhandling rules for security control and development of a system for security control measures, for the
security control of Personal Data including preventing the leakage, loss, or damage of its handled Personal
Data. In addition, necessary and appropriate action must include “Institutional Security Control Measures,”“Human Security Control Measures,” and “Technological Security Control Measures” in accordance witheach stage of acquisition, utilization and preservation, etc. of Personal Data. These actions shall be thosecorresponding to risks arising from the scale and nature of the business, the handling status of Personal Data
(including the size and volume of its handled Personal Data; the same shall apply hereinafter), the nature of
the medium in which Personal Data is recorded and other factors, in consideration of the significance of
infringement and rights and interests that may be suffered by the Principal in the event of a leakage, loss, or
damage of Personal Data.
2. The definition of terms in this article is as follows.
(1) Institutional Security Control Measures
This term means measures for system development and actions to be taken by Full Member for security
control of Personal Data, such as to clearly determine the responsibility and authority of each officer andemployee (meaning persons engaging in the business of a Full Member within its organization under
direct or indirect control and supervision of the Full Member, not limited to employees having an
employment relationship (regular employees, contract employees, fixed-term employees, part-timers, and－7－

casual staff, etc.), but including those without an employment relationship with the Full Member(directors, accounting advisors (when an accounting advisor is a corporation, employees who are to
perform the duties thereof), company auditors, executive officers, or temporary staff; the same shall apply
hereinafter), establish and implement rules on security control, and inspect and audit the implementation
status.
(2) Human Security Control Measures
This term means to conclude a non-disclosure contract with officers and employees and provide them witheducation and training, thereby supervising officers and employees so as to ensure security control of
Personal Data.
(3) Technological Security Control Measures
This term means technological measures concerning security control of Personal Data, such as to limit
access to Personal Data and the information system handling such data, and to monitor that information
system.
3. A Full Member must take the following Institutional Security Control Measures for establishing basic
policies and handling rules for security control of Personal Data.
(1) Development of rules, etc.
(a) Development of basic policies for security control of Personal Data(b) Development of handling rules for security control of Personal Data(c) Development of rules for inspection and audit of the handling status of Personal Data(d) Development of rules for outsourcing(2) Handling rules for safety control at each stage(a) Handling rules at the stage of acquisition and input of data(a) Handling rules at the stage of use and processing of data(a) Handling rules at the stage of preservation and retention of data(d) Handling rules at the stage of transfer and sending of data(e) Handling rules at the stage of deletion and disposal of data(f) Handling rules at the stage of responding to information leakage or other incidents
4. A Full Member must take the following Institutional Security Control Measures, Human Security Control
Measures and Technological Security Control Measures for developing a system for security control of
Personal Data.
(1) Institutional Security Control Measures(a) Appointment of employees responsible for the management of Personal Data, etc. (a person
responsible for Personal Data management who is the overall person in charge of execution ofoperations relating to security control of Personal Data, persons responsible for Personal Data
management in each division handling Personal Data)(b) Development of security control actions in rules of employment, etc.
(c) Operation in line with the handling rules for security control of Personal Data(d) Development of means to check the handling status of Personal Data(e) Development and implementation of a system for inspection and audit of the handling status of－8－Personal Data(f) Development of a system for responding to information leakage or other incidents(2) Human Security Control Measures(a) Conclusion of a non-disclosure contract, etc. concerning Personal Data with officers and employees(b) Clarification of roles, responsibilities, etc. of officers and employees(c) Thorough dissemination of security control actions to officers and employees and their educationand training(d) Checking of compliance with predetermined Personal Data management procedures by officers andemployees(3) Technological Security Control Measures(a) Identification and authentication of Personal Data users(b) Setting of management categories of Personal Data and access control(c) Management of authority to access Personal Data(d) Measures to prevent the leakage, damage, etc. of Personal Data(e) Recording and analysis of access to Personal Data(f) Recording and analysis of operation of the information systems handling Personal Data(g) Monitoring and audit of the information system handling Personal Data

Article 11.

Supervision over Officers and Employees

1. A Full Member must, in having its officers and employees handle Personal Data, establish an appropriate
internal management system and exercise necessary and appropriate supervision over the officers andemployees so as to seek the security control of the Personal Data. The supervision shall correspond to risks
arising from the nature of the business, the handling status of Personal Data and other factors, inconsideration of the significance of infringement of rights and interests that may be suffered by the Principal
in the event of a leakage, loss, or damage of Personal Data.
2. A Full Member is to exercise the “necessary and appropriate supervision” over the officers and employees in
the preceding paragraph by establishing the following systems, etc.
(1) To conclude a contract, etc. upon recruiting an officer or employee to ensure that the officer or employee
will not disclose to a third party any Personal Data that the person has come to know in relation tobusinesses operated by the Full Member or use such data for unintended purposes while being
employed and after resigning from the job(2) To clarify the roles and responsibilities of officers and employees through establishing handling rules toensure proper handling of Personal Data, and thoroughly disseminate the obligation to ensure security
control among its officers and employees and provide them with education and training(3) To develop a system for checking compliance of its officers and employees with the matters specified ininternal security control rules and inspecting and auditing their attitudes toward the protection of
Personal Data in order to prevent them from taking out any Personal Data.

－9－Article 12.

Supervision over Outsourcees

1. When a Full Member outsources the partial or entire handling of Personal Data (including the entirety ofoutsourcing contracts, irrespective of the form or type thereof, under which a Full Member has another entity
carry out the whole or part of the handling of Personal Data), the Full Member must exercise necessary andappropriate supervision over the relevant outsourcee so as to ensure security control of the outsourced
Personal Data. The supervision shall correspond to risks arising from the scale and nature of the outsourced
business, the handling status of Personal Data and other factors, in consideration of the significance of
infringement of rights and interests that may be suffered by the Principal in the event of a leakage, loss, or
damage of Personal Data.
2. A Full Member must select an entity that is found to be properly handling Personal Data as an outsourcee andsecure measures for security control of Personal Data also at that outsourcee so that security control
measures are taken for the outsourced Personal Data (in the case where an outsourcee further outsources
personal information-related duties, the Full Member shall also supervise whether the outsourcee
sufficiently supervises the sub-outsourcees). Specifically, a Full Member must make the following responses,
etc. for example.
(1) Specify the requirements to develop an organizational system and establish basic policies and handlingrules for security control as the criteria for selecting outsourcees and review those criteria regularly inorder to ensure the security control of the Personal Data.
When selecting an outsourcee, it is desirable that the Full Member checks the candidate’s capabilities
by visiting the place where Personal Data is handled, as necessary, or by other reasonable methods andhas its person responsible for the management of Personal Data make an evaluation of the candidate
appropriately.
(2) Incorporate in an outsourcing contract specific security control actions that clarify the authority on the
supervision and audit of and the collection of reports from the outsourcee, prohibition of the leakage of,stealing and alteration, and the utilization of Personal Data for unintended purposes by the outsourcee,
conditions concerning sub-outsourcing and the responsibility of the outsourcee in the event of
information leakage, etc., and at the same time, check the outsourcee’s compliance with the security
control actions incorporated in the outsourcing contract, regularly or as needed, and review thosemeasures through conducting audits regularly or taking other actions.
It is desirable that the person responsible for Personal Data management, etc. review the security
control actions incorporated in the outsourcing contract and appropriately evaluate the outsourcee’s
compliance therewith.
When an outsourcee intends to outsource the relevant duties to another entity, it is desirable that theFull Member sufficiently confirms that the outsourcee appropriately supervises the sub-outsourcee of
this article and that the sub-outsourcee takes security control actions based on Article 20 of theProtection Act, as in the case with the outsourcee, by such means as requesting the outsourcee to makea report on the sub-outsourcee, the content of duties to the sub-outsourced, and sub-outsourcee’s
method of handling Personal Data in advance and go through prior approval process or implementing
regular audits by themselves or making the outsourcee do so. The same shall apply to cases of further－10－sub-outsourcing.

Article 13.

Restriction on Third-Party Provision

1. A Full Member must not provide Personal Data to a third party (meaning those who do not fall under any of
the categories of a Full Member attempting to provide the Personal Data and a Principal relating to the
Personal Data, regardless of whether the party is an individual, corporation or any other organization; thesame shall apply except for Articles 13-2 through 13-5) without obtaining in advance a Principal’s consent.
In obtaining consent, the Full Member must clearly indicate the content within a reasonable and appropriate
scope that is considered necessary for the Principal to make a judgment on the consent in accordance with thescale and nature of the business, the handling status of Personal Data and other factors.
If provision of Personal Information to a third party is assumed in advance, a Full Member must specify
the fact in the utilization purpose.
However, in any of the following cases, a Principal’s consent is unnecessary in the provision of Personal
Data to a third party.
(1) Cases based on laws and regulations(2) Cases in which there is a need to protect a human life, body, or property, and when it is difficult to obtaina Principal’s consent(3) Cases in which there is a special need to enhance public hygiene or promote fostering healthy children,
and when it is difficult to obtain a Principal’s consent(4) Cases in which there is a need to cooperate with a central government organization or a local government,
or a person entrusted by them performing affairs prescribed by laws and regulations, and when there isa possibility that obtaining a Principal’s consent would interfere with the performance of the said affairs
2. A Full Member, with regard to Personal Data provided to a third party (excluding Sensitive Information; thesame shall apply in this paragraph) may, in cases where it is set to cease in response to a Principal’s request
a third-party provision of Personal Data that can identify the Principal and when it has in advance informed a
Principal of those matters set forth in the following or put them into a state where a Principal can easily know,
and notified them to the Personal Information Protection Commission, provide the said Personal Data to athird party notwithstanding the provisions of the preceding paragraph.
In addition, a Full Member itself shall also disclose the content of the notification by using the Internet orother appropriate methods.
Sensitive Information may not be provided to a third party due to an opt-out policy.
(1) To set a third-party provision as a utilization purpose(2) The categories of Personal Data provided to a third party(3) Means or method of a third-party provision(4) To cease, in response to a Principal’s request, a third-party provision of Personal Data that can identify
the Principal(5) Method of receiving a Principal’s request
3. A Full Member must, in case of altering those matters set forth in item (2), item (3), or item (5) of thepreceding paragraph, in advance inform a Principal of the contents to be altered or put them into a state－11－where a Principal can easily know and notify them to the Personal Information Protection Commission.
In addition, when notifying the contents to be altered to the Personal Information Protection Commission
pursuant to this paragraph, a Full Member itself shall also disclose the content.
4. In any of the following cases, a person receiving the provision of the Personal Data does not fall under a third
party.
(1) Cases in which Personal Data is provided as a result of a Full Member’s outsourcing of the whole or partof the handling of the Personal Data within the necessary scope to achieve a utilization purpose.
(2) Cases in which Personal Data is provided as a result of business succession caused by a merger or otherreason (limited to cases where Personal Data is used even after the succession of the business within thescope of the utilization purpose before the Personal Data is provided due to the business succession)(3) Cases in which Personal Data to be jointly utilized by a specified person is provided to the specified
person, and when a Principal has in advance been informed or a state has been in place where a
Principal can easily know to that effect as well as of the categories of the jointly utilized Personal Data,the scope of a jointly utilizing person, the utilization purpose of the utilizing person, and the name orappellation of the person responsible for controlling the said Personal Data (meaning a person who
primarily accepts and processes complaints, makes decisions on disclosure, correction, etc. andutilization cease, etc., and has responsibilities for security control in the jointly utilizing person;
hereinafter referred to as the “Control Manager” in Paragraph 6)
5. Any notification given by a Full Member pursuant to the provisions of item (3) of the preceding paragraph is
to be in writing in principle. With regard to a notification, etc. concerning “the scope of a jointly utilizing
person,” a Full Member must make efforts to list jointly utilizing persons individually.
6 A Full Member must, in case of altering a utilization purpose for a utilizing person or the name or appellationof the Control Manager set forth in Paragraph 4, item (3), in advance inform a Principal of the contents to bealtered or put them into a state where a Principal can easily know.

Article 13-2. Restriction on Provision to a Third Party in a Foreign Country
A Full Member, except in those cases set forth in each item of Paragraph 1 of the preceding article, must, incase of providing Personal Data to a third party (excluding a person establishing a system conforming tostandards prescribed by the Enforcement Rules as necessary for continuously taking action equivalent to the
one that a Personal Information Handling Business Operator shall take concerning the handling of Personal
Data; hereinafter the same shall apply in this article) in a foreign country (meaning a country or region locatedoutside the territory of Japan; hereinafter the same shall apply) (excluding those prescribed in the Enforcement
Rules as a country establishing a personal information protection system recognized to have equivalent
standards to that in Japan in regard to the protection of an individual’s rights and interests; hereinafter the same
shall apply in this article and the next article), in advance obtain a Principal’s consent to the effect that he or she
approves for the provision to a third party in a foreign country. In this case, the provisions of the same article
shall not apply.

－12－

Article 13-3. Keeping, etc. of a Record on a Third-Party Provision
A Full Member must, when having provided personal data to a third party (excluding a person set forth in each
item of Article 2, Paragraph 5 of the Protection Act; the same shall apply in this article through Article 13-5),
keep a record of the date of the Personal Data provision, the name or appellation of the third party, and othermatters prescribed in the Enforcement Rules.
However, when providing Personal Data to a third party in Japan, keeping of records shall be unnecessary if
the case falls under any of items (1) through (7) below.
In addition, in the provision to a third party in a foreign country, keeping of records shall be unnecessary if
the case falls under any of items (1) through (4), or if the third party meets standards stipulated in the
Enforcement Rules and the case falls under each item of Article 23, Paragraph 5 of the Protection Act.
(1) Cases based on laws and regulations(2) Cases in which there is a need to protect a human life, body, or property, and when it is difficult to obtaina Principal’s consent(3) Cases in which there is a special need to enhance public hygiene or promote fostering healthy children,
and when it is difficult to obtain a Principal’s consent(4) Cases in which there is a need to cooperate with a central government organization or a local government,
or a person entrusted by them performing affairs prescribed by laws and regulations, and when there isa possibility that obtaining a Principal’s consent would interfere with the performance of the said affairs(5) Cases in which Personal Data is provided as a result of a Full Member’s outsourcing of the whole or partof the handling of the Personal Data within the necessary scope to achieve a utilization purpose.
(6) Cases in which Personal Data is provided as a result of business succession caused by a merger or otherreason.
(7) Cases in which Personal Data to be jointly utilized by a specified person is provided to the specified
person, and when a Principal has in advance been informed or a state has been in place where a
Principal can easily know to that effect as well as of the categories of the jointly utilized Personal Data,the scope of a jointly utilizing person, the utilization purpose of the utilizing person, and the name orappellation of the person responsible for controlling the said Personal Data

Article 13-4. Confirmation, etc. when Receiving a Third-Party Provision
A Full Member, when receiving the provision of Personal Data from a third party, confirm the name orappellation and address of the third party and, for a corporate body, the name of its representative (fornon-corporate body having appointed a representative or administrator, the said representative or
administrator), and process of acquisition of the personal information by the third party, and keep a record ofmatters stipulated in Article 26, Paragraph 3 of the Protection Act, except in the following cases.
However, the confirmation and record-keeping obligations shall not apply to any case that is not a provision
by a “provider” substantially.
(1) Cases based on laws and regulations(2) Cases in which there is a need to protect a human life, body, or property, and when it is difficult to obtaina Principal’s consent－13－(3) Cases in which there is a special need to enhance public hygiene or promote fostering healthy children,
and when it is difficult to obtain a Principal’s consent(4) Cases in which there is a need to cooperate with a central government organization or a local government,
or a person entrusted by them performing affairs prescribed by laws and regulations, and when there isa possibility that obtaining a Principal’s consent would interfere with the performance of the said affairs(5) Cases in which Personal Data is provided as a result of a Full Member’s outsourcing of the whole or partof the handling of the Personal Data within the necessary scope to achieve a utilization purpose.
(6) Cases in which Personal Data is provided as a result of business succession caused by a merger or otherreason.
(7) Cases in which Personal Data to be jointly utilized by a specified person is provided to the specified
person, and when a Principal has in advance been informed or a state has been in place where a
Principal can easily know to that effect as well as of the categories of the jointly utilized Personal Data,the scope of a jointly utilizing person, the utilization purpose of the utilizing person, and the name orappellation of the person responsible for controlling the said Personal Data

Article 13-5. Retention Period for Keeping Records upon Third-Party Provision
Records made in accordance with Article 13-3 and Article 13-4 must be kept for the period specified in the
Enforcement Rules from the date of creating these records.

Article 14.

Public Disclosure, etc. on Matters Relating to Retained Personal Data

1. A Full Member must, concerning its Retained Personal Data, put the following matters into a state where a
Principal can know (including those cases in which it, at the request of a Principal, responds without delay).
When the utilization purpose includes provision of information to a third party, the fact must be clearly statedas the content in Item (2).
(1) Appellation of the Full Member(2) Utilization purpose of all Retained Personal Data (excluding those cases falling under Article 8,
Paragraph 4, Item (1) through Item (3))(3) Procedures for responding to a request pursuant to the provisions of Paragraph 1 of the succeeding
paragraph or a demand pursuant to the provisions of Article 15, Paragraph 1, Article 16, Paragraph 1, or
Article 17, Paragraph 1 or Paragraph 2 (including the amount of a fee when it is prescribed pursuant to
the provisions of Article 20)(4) In-house contact point to which a complaint is to be filed in regard to handling of Retained Personal Data
(5) Appellation of the accredited personal information protection organization and contact point to which
resolution of its complaint is to be filed
2. A Full Member must, when requested by a Principal to get informed of a utilization purpose of Retained
Personal Data that can identify the Principal, inform the said Principal thereof without delay. This, however,shall not apply in those cases falling under any of the following items.
(1) Cases in which the utilization purpose of Retained Personal Data that can identify the said Principal isclear pursuant to the provisions of the preceding paragraph－14－

(2) Cases falling under Article 8, Paragraph 4, Items (1) through Item (3)3. A Full Member must, when having been requested based on the provisions of the preceding paragraph but
deciding not to inform a Principal of the utilization purpose of Retained Personal Data, inform the Principal
to that effect without delay.

Article 15.

Disclosure

1. A Full Member must, when having received a demand of disclosing Retained Personal Data that can identify
a Principal (when such data does not exist, including informing a Principal thereof) from the Principal,
disclose the Retained Personal Data to the Principal without delay by means of issuing a document (whenthere is a method agreed by the person demanding the disclosure, that method). However, in cases wheredisclosing such data falls under any of the following cases, the whole or part thereof may not be disclosed.
(1) Cases in which there is a possibility of harming a Principal or third party’s life, body, property, or otherrights and interests(2) Cases in which there is a possibility of interfering security with the said Full Member implementing its
business properly(3) Cases of violating other laws or regulations
2. A Full Member must, when having decided not to disclose the whole or part of Retained Personal Data inconnection with a demand pursuant to the provisions of the preceding paragraph or when the Retained
Personal Data does not exist, inform a Principal thereof without delay. The reasons for the decision shall be
explained by showing the provisions of the law supporting the decision and facts that are the basis of thedecision.

Article 16.

Correction, etc.

1. In case of having received a demand made by a Principal for making a correction, addition, or deletion(hereinafter referred to as a “Correction, etc.”) of the contents of Retained Personal Data that can identify the
Principal by reason that the data are neither correct nor factual, a Full Member must conduct a necessary
investigation, such as confirmation of facts, without delay to the extent necessary to achieve a utilization
purpose and, based on the result thereof, make a Correction, etc. of the contents of the Retained Personal
Data in principle.
2. A Full Member must, when having made a Correction, etc. on the whole or part of the contents of the
Retained Personal Data in connection with a demand specified in the preceding paragraph or when having
made a decision not to make a Correction, etc., inform a Principal without delay to that effect (including,when having made a Correction, etc., the contents thereof). If a Full Member does not make a Correction,etc., the Full Member is to explain the reasons by presenting grounds for the decision not to make a
Correction, etc. and facts supporting the decision.

Article 17.

Utilization Cease, etc.

1. In case of having received a demand made by a Principal for a utilization use or deletion (hereinafter referred
to as a “Utilization Cease, etc.”) of Retained Personal Data that can identify the Principal by reason that the－15－Retained Personal Data has been handled in violation of the provisions of Article 5 or has been acquired inviolation of the provisions of Article 7 and when it has become clear that there is a reason in the demand, aFull Member must fulfill a Utilization Cease, etc. of the said Retained Personal Data to the extent necessary
to redress a violation without delay. This, however, shall not apply in case where a Utilization Cease, etc. ofthe said Retained Personal Data requires a large expense or other cases where it is difficult to fulfill a
Utilization Cease, etc. and when necessary alternative action is taken to protect a Principal’s rights andinterests.
2. In case of having received a demand made by a Principal for ceasing a third-party provision of Retained
Personal Data that can identify the Principal by reason that the Retained Personal Data are being provided toa third party in violation of the provisions of Article 13, Paragraph 1 and when it has become clear that there
is a reason in the demand, a Full Member must cease the third-party provision of the Retained Personal Data
without delay in principle. This, however, shall not apply in cases where ceasing the third-party provision of
the said Retained Personal Data requires a large expense or other cases where it is difficult to cease thethird-party provision and when necessary alternative action is taken to protect a Principal’s rights andinterests.
3. A Full Member must, when having fulfilled a utilization cease etc. or decided not to fulfill a Utilization
Cease, etc. of the whole or part of Retained Personal Data in connection with a demand pursuant to theprovisions of Paragraph 1, or when having ceased a third-party provision or decided not to cease a third party
provision of the whole of Retained Personal Data in connection with a demand pursuant to the provisions of
the preceding paragraph, inform a Principal to that effect (including, when taking a measure that is different
from the action requested by the Principal, the contents of the measure) without delay.

Article 18.

Explanation of Reason

In case of informing a Principal to the effect that, as regards the whole or part of action requested or demandedby the Principal pursuant to the provisions of Article 14, Paragraph 3, Article 15, Paragraph 2, Article 16,
Paragraph 2, and Paragraph 3 of the preceding article, the action will not be taken, or to the effect that different
action from the said action will be taken, when explaining a reason therefor to the said Principal, a Full Member
is to present grounds for the decision not to take the action or to take a different action and facts supporting thedecision.

Article 19.

Procedures for Responding to Demand, etc. for Disclosure, etc.

1. A Full Member may, as regards a request pursuant to the provisions of Article 14, Paragraph 2 or a demand
pursuant to the provisions of Article 15, Paragraph 1, Article 16, Paragraph 1, Article 17, Paragraph 1 orParagraph 2 (hereinafter referred to as a “Demand, etc. for Disclosure, etc.”), decide on a method ofreceiving a request or demand. In this case, a Full Member is to regularly post that method on its website
together with the Pronouncement Concerning Protection of Personal Information as specified in Article 23,
or regularly posting or keeping it at a business office counter, etc.
(1) Contact point to which a Demand, etc. for Disclosure, etc. is to be made(2) Form of documents to be submitted at the time of a Demand, etc. for Disclosure, etc. and other methods－16－

of receiving Demand, etc. for Disclosure, etc.
(3) Method of confirming that a person who makes a Demand, etc. for Disclosure, etc. is the Principal or arepresentative (meaning a legal representative for a minor or adult ward, or a representative entrusted
by the Principal; the same shall apply in this article)(4) Amount of the fee in Article 33, Paragraph 1 of the Protection Act and method for collection thereof(including the case where such a demand, etc. is free of charge)(5) Matters necessary to identify Retained Personal Data that are subject to a Demand, etc. for Disclosure,etc.
(6) Method of replying to a Demand, etc. for Disclosure, etc.
2. A Full Member shall decide on the following matters in addition to each item of the preceding paragraph as
the procedures for cases where a representative makes a Demand, etc. for Disclosure, etc. A Full Member
shall not be precluded from disclosing the relevant personal data directly only to the Principal in response toa Demand, etc. for Disclosure, etc. made by a representative.
(1) Method for identity verification of a representative(2) Method to confirm a representative’s authority of representation
3. A Full Member must, in establishing a procedure for Demand, etc. for Disclosure, etc. based on theprovisions of the preceding two paragraphs, give consideration so as not to impose excessive burden on a
Principal.

Article 20.

Fees

1. A Full Member may, when having been requested to inform of a utilization purpose pursuant to theprovisions of Article 14, Paragraph 2 or when having received a demand for disclosure pursuant to theprovisions of Article 15, Paragraph 1, collect a fee in relation to taking such action.
2. A Full Member must, in case of collecting a fee pursuant to the provisions of the preceding paragraph, decideon the amount of the fee within a range recognized as reasonable considering actual expenses.

Article 21.

A Full Member’s Dealing with a Complaint

1. A Full Member must strive to deal appropriately and promptly with a complaint about the handling of
Personal Information.
2. A Full Member must strive to establish the system necessary to achieve a purpose under the preceding
paragraph through setup of a contact point for receiving complaints, formulation of procedures for dealing
with complaints, provision of sufficient education and training to officers and employees engaging in dealing
with complaints, and other means.

Article 22.

Response to Personal Information Leakage or Other Incidents

1. In the event of the leakage of any Personal Information or the leakage of information concerning descriptions,etc. and Personal Identification Codes deleted from Personal Information used to produce Anonymously
Processed Information and information relating to a processing method carried out pursuant to the provisionsof Article 36, Paragraph 1 of the Protection Act (hereinafter referred to as “Personal Information Leakage or－17－Other Incidents”), a Full Member is to immediately report that incident to the Financial Services Agency andthe Association. If, in addition to Personal Information Leakage or Other Incidents, leakage of specificpersonal information specified in Article 2, Paragraph 8 of the Act on the Uses of Numbers to Identify aSpecific Individual in Administrative Procedures (Act No. 27 of 2013) occurs, a Full Member shall also
report the incident to the Personal Information Protection Commission.
2. In the event of any of Personal Information Leakage or Other Incidents, a Full Member is to disclose the facts
concerning the incident and preventive measures to the public without delay from the perspective ofpreventing secondary damage or the occurrence of any similar incidents.
3. In the event of any of Personal Information Leakage or Other Incidents, a Full Member is to promptly informthe Principal involved in the relevant incident of the facts concerning the incident.

Article 23.

Formulation of the Pronouncement Concerning Protection of Personal Information

1. In consideration of the significance of explaining policies related to Personal Information in advance in aneasy-to-understand manner, a Full Member is to formulate the pronouncement concerning its ideas andpolicies concerning protection of Personal Information (so-called privacy policy or privacy statement, etc.;
hereinafter referred to as the “Pronouncement Concerning Protection of Personal Information”) and discloseit to the public.
2. For example, the Pronouncement Concerning Protection of Personal Information is to include the following
matters.
(1) Pronouncement of policies concerning protection of Personal Information, such as the compliance withrelated laws and regulations, etc., prohibition of utilization of Personal Information for unintended
purposes and proper processing of complaints(2) Simple explanation of procedures for notification and public disclosure of the utilization purposes of
personal information under Article 18 of the Protection Act(3) Simple explanation of procedures for disclosure, etc. under Article 27 of the Protection Act or othervarious procedures for handling of Personal Information(4) Contact information on offices processing inquiries and complaints concerning handling of Personal
Information
3. A Full Member shall strive to incorporate as many descriptions as possible in consideration of the following
points, depending on the characteristics, scale, and actual status of business activities, from the perspectiveof protecting rights and interests of a Principal, including general consumers, in the Pronouncement
Concerning Protection of Personal Information.
(1) When a Principal makes a request, a Full Member is to suspend sending of direct email or otherwise
voluntarily cease the utilization of the Retained Personal Data.
(2) A Full Member is to endeavor to increase transparency regarding outsourcing, such as clarifying whether
it outsources any business or the content of outsourced business if any.
(3) A Full Member is to devise means to clarify utilization purposes for the respective Principal, throughefforts such as presenting limited utilization purposes separately by the type of customers inconsideration of the business contents or voluntarily endeavoring to limit utilization purposes based on－18－each choice by a Principal.
(4) A Full Member is to indicate sources and methods of acquiring Personal Information (types of
information sources, etc.) as concretely as possible.

Article 24.

Review of the Guidelines

The Guidelines shall be reviewed as necessary.

Article 25.

Report to the Association, etc.

1. The Association may request a Full Member to make a report where appropriate to confirm the Full
Member’s compliance with the Guidelines.
2. The Association shall provide guidance and recommendations and take other measures necessary to have
Full Members comply with the Guidelines.
3. A Full Member must comply with the Guidelines and follow necessary guidance and recommendations
provided, and other measures taken by the Association.

Supplementary Provision
The Guidelines shall come into force on April 1, 2005.

Supplementary ProvisionThis amendment shall come into force on 30 September 2007.

Supplementary ProvisionThis amendment shall come into force on March 21, 2008.

Supplementary ProvisionThis amendment shall come into force on March 19, 2009.

Supplementary ProvisionThis amendment shall come into force on December 17, 2009.

Supplementary ProvisionThis amendment shall come into force on January 4, 2013.

Supplementary ProvisionThis amendment shall come into force on October 15, 2015.
* The amended provisions, etc. are as follows:- Amendment of Articles
Articles 1 through 3, Article 7, Articles 10 through 12, Article 22－19－

- Revision of explanations
Articles 1 through 3, Articles 5 through 10, Article 12, Article 13, Article 15, Article 19, Article 22, Article 23- Revision of reference provisions
Articles 1 through 3, Article 5, Article 7, Articles 9 through 13, Article 16

Supplementary ProvisionThis amendment shall come into force on February 18, 2016.
* The amended provisions, etc. are as follows:- Explanation and reference provisions of Article 7- Article 22, Paragraph 1 and explanation

Supplementary ProvisionThis amendment shall come into force on 30 May, 2017.
* The amended provisions, etc. are as follows:- Amendment of provisions, etc.
Articles 1 through 23 and 25 have been amended and Articles 13-2 through 13-5 have been newly added.
- Amendment of explanation and reference provisions, etc.
The explanation and reference provisions for each provision have been transferred to the newly established “Explanationon the Guidelines for Protection of Personal Information,” and deleted. The explanation and reference provisions havealso been amended in accordance with the amended provisions.

Supplementary ProvisionThis amendment shall come into force on July 15, 2021.
* The amended provisions, etc. are as follows:- Article 1.
- Amendment of explanation and reference provisions, etc.
Articles 2 through 4, 7, 8, 10, 13, 13-2, and 23 have been amended.
Supplementary provisions are newly added.

－20－

Explanation on the Guidelines for Protection of Personal Information
Established on April 20, 2017
Revised on July 15, 2021

Guidelines for Protection of Personal Information
Article 1. Purpose
1. In accordance with the Act on the Protection of
Personal Information (Act No. 57 of 2003;
hereinafter referred to as the “Protection Act”), theCabinet Order to Enforce the Act on the Protection of
Personal Information (Cabinet Order No. 507 of
2003; hereinafter referred to as the “Enforcement
Order”), the Enforcement Rules for the Act on theProtection of Personal Information (Rules of the
Personal Information Protection Commission No. 3
of 2016; hereinafter referred to as the “Enforcement
Rules”), the Basic Policy on the Protection of
Personal Information (Cabinet Decision on April 2,
2004), the Guidelines on the Act on the Protection of
Personal Information (Volume on General Rules)(Notification of the Personal Information Protection
Commission No. 6 of 2016), (Volume on Provision
to a Third Party in a Foreign Country) of the said
guidelines (Notification of the Personal Information
Protection Commission No. 7 of 2016), (Volume on
Confirmation and Record-Keeping Obligations upon
Third-Party Provision) of the said guidelines(Notification of the Personal Information Protection
Commission No. 8 of 2016), (Volume on
Anonymously Processed Information) of the said
guidelines (Notification of the Personal Information
Protection Commission No. 9 of 2016), theGuidelines for the Protection of Personal Informationin the Finance Sector (Notification of the Personal
Information Protection Commission, Financial
Services Agency No. 1 of 2017) and the Practical
Guideline on the Security Control Actions under the
Guidelines for Protection of Personal Information in
the Finance Sector (Notification of the Personal
Information Protection Commission, Financial
Services Agency No. 2 of 2017), and others(hereinafter referred to as the “Laws and Regulations
on Protection of Personal Information”), theseguidelines provide for specification of utilization
purposes, security control actions and other mattersrelated to personal information as well as specificactions to be taken by Full Members (meaning Full
Members specified in Article 7, Paragraph 1, Item 1of the Articles of Incorporation; the same shall apply
hereinafter) of the Investment Trusts Association,
Japan (hereinafter referred to as the “Association”) inorder to ensure the proper handling of personal
information in business operations related to theinvestment management business operated by Full
Members (meaning operations set forth in Article 2,
Paragraph 8, Item 12 (a) and Item 14 of the same
paragraph of the Financial Instruments and Exchange

Explanations(1) The Guidelines have been developed based on theprovisions of Article 53 of the Protection Act, andprovide for matters to be observed by Full
Members and necessary actions, etc. to ensure
proper handling of Personal Information in
operation and direct public offering services
conducted by Full Members in line with thecurrent circumstances of Full Members’ services.
(2) The Guidelines shall apply to all Full Members.
(3) “Explanations” presents specific examples andreference examples of ideas and practices for
implementing the Guidelines.
Specific examples shown in the explanations
are not intended to be limited to these examples,and attention is required, as there may be elements
to be considered separately depending on
individual cases.
(4) The individual number (Article 2, Paragraph 5 of
the Act on the Uses of Numbers to Identify aSpecific Individual in Administrative Procedures(Act No. 27 of 2013; hereinafter referred to as the“Numbers Act”)) is also regarded as Personal
Information; however, it should be noted that
handling of the individual number and specificpersonal information (Article 2, Paragraph 8 of the
Numbers Act) may be separately provided for in
the Numbers Act, relevant government
ordinances, and related guidelines.
(5) A Full Member shall comply with the Personal
Information Protection Guidelines established byeach accredited personal information protection
organization with regard to handling of Personal
Information in services other than the operationand direct public offering services of Full
Members, and shall endeavor to appropriately
handle Personal Information in accordance withthe purport of the Guidelines if the relevant
accredited personal information protection
organization has no guidelines, etc.
(6) With regard to the Finance Sector GL and the
Finance Sector Practical Guidelines, based on the
General Rules GL, a Full Member has stipulated
matters for which strict actions are required
particularly of Personal Information HandlingBusiness Operators in the finance sector inconnection with handling of Personal Information,and other matters in light of the nature and use of
Personal Information in the finance sector, and it
should be noted that any matters not provided forin the Finance Sector GL and the Finance Sector
Practical Guidelines are governed by the General－ 1 －Guidelines for Protection of Personal Information
Act (Act No 25 of 1948; hereinafter referred as the“FIEA”) including business operations incidental
thereto) and business operations related toinvestment trust managed without instructions fromthe settlor, and business operations set forth in
Article 2, Paragraph 8, Item 7 of the FIEA in
association with beneficiary certificates, etc.
(meaning beneficiary certificates (including
book-entry transfer beneficial interest in an
investment trust), investment corporation bondcertificates (including book-entry transfer investment
equity), or investment corporation bond certificates(including book-entry transfer investment
corporation bonds)).
2. In order to prevent divulgation, unauthorizedleakage, or any other similar incident involving
personal information, it is necessary for Full
Members to develop systems for appropriate controlof personal information in accordance with Laws andRegulations on Protection of Personal Information as
well as related laws and regulations and guidelines,
etc.

Explanations
Rules GL, etc. In addition, it should also be notedthat the Finance Sector GL states as follows.
(i) Failure to follow any of the provisions that aredescribed with the phrase “must (do)” may be
judged to constitute violation of the provision of
the Act.
(ii) Failure to follow any of the provisions that aredescribed with the phrases “is to (do),” “it isappropriate to (do),” or “it is desirable to (do)” is
not judged immediately to constitute violation of
the provision of law. Nevertheless, a Full Member
is required to take strict measures in light of thenature and use of personal information in thefinance sector.
(7) In this explanation, the abbreviated name ofguidelines, etc. relating to Personal Information
shall be as follows.
(i) General Rules GL
Guidelines on the Act on the Protection of
Personal Information (Volume on General Rules)(Notification of the Personal Information
Protection Commission No. 6 of 2016)(ii) Foreign GL
Guidelines on the Act on the Protection of
Personal Information (Volume on Provision to a
Third Party in a Foreign Country) (Notification of
the Personal Information Protection Commission
No. 7 of 2016)(iii) Confirmation and Record-Keeping GL
Guidelines on the Act on the Protection of
Personal Information (Volume on Confirmation
and Record-Keeping Obligations upon
Third-Party Provision) (Notification of the
Personal Information Protection Commission No.
8 of 2016)(iv) Anonymous Processing GL
Guidelines on the Act on the Protection of
Personal Information (Volume on Anonymously
Processed Information) (Notification of the
Personal Information Protection Commission No.
9 of 2016)(v) Finance Sector GL
Guidelines for the Protection of Personal
Information in the Finance Sector (Notification of
the Personal Information Protection Commission,
Financial Services Agency No. 1 of 2017)(vi) Finance Sector Practical Guidelines
Practical Guideline on the Security Control
Actions under the Guidelines for Protection of
Personal Information in the Finance Sector(Notification of the Personal Information
Protection Commission, Financial Services
Agency No. 2 of 2017)(vii) Numbers Act, Finance GL(Supplementary volume) Guidelines for Proper
Handling of Specific Personal Information in
Financial Services of the Guidelines for Proper
Handling of Specific Personal Information (forBusiness Operators) (Notification of the Specific－2－Guidelines for Protection of Personal Information

Article 2. Definition
In the Guidelines, the terms set forth in the following
items are as defined in the respective items.

(1) Personal Information
This term refers to any information relating to aliving person that is capable of identifying a
specific person (including any information thatcan be readily collated with other information andthereby can identify a specific individual) or
which contains a personal identification code.
“Information Relating to an Individual” is not
limited to information identifying an individualsuch as name, address, gender, date of birth andface image, and is all information representing
facts, judgment, and evaluation with respect toattributes such as body, property, occupation andtitle of an individual, which also includes
evaluation information, information made publicby publications, etc., and information in the formof image or voice, whether or not such informationis concealed by encryption, etc. If theabove-mentioned “Information Relating to an
Individual,” combined with names, etc., “canidentify a specific individual,” it becomes“Personal Information.”
If Information Relating to a non-living
Individual is simultaneously Information Relating
to a living Individual such as bereaved family
members, the information shall be regarded as
Information Relating to the living Individual.
In addition, information relating to corporations
and other organizations, such as company name,does not basically fall under the category of“Personal Information”; however, when
Information Relating to an Individual, such as
names of officers, is included in the information,such part of the information falls under the
category of “Personal Information.”
Furthermore, “individuals” naturally include
foreign nationals.

Explanations
Personal Information Protection Commission No.
5 of 2014)(viii) Basic Policy
the Basic Policy on the Protection of Personal
Information (Cabinet Decision on April 2, 2004)[Reference provisions, etc.]
Article 1 and Article 60 of the Protection Act, Article 1of the Finance Sector GL, Article 4 of the Numbers Act
The definitions of the terms used in the Guidelines are
based on each paragraph of Article 2 of the Protection
Act, 2 of the General Rules GL, and Article 5,
Paragraph 1 of the Finance Sector GL
1. Personal Information (No. 1)(1) Specific examples of “Personal Information”
In addition to information relating tobeneficiaries, etc. and information relating tocustomers for direct public offering (hereinafterreferred to as “customers”), information relating
to individuals of prospective customers, clientcompanies, securities issuing companies, etc. andinformation relating to individuals acquired by a
Full Member in its operation and direct public
offering services, etc. broadly meet the definition.
Personal Information in management of
employment of a Full Member’s officers andemployees (refer to Article 10, Paragraph 2 of the
Guidelines), etc. (such as information on
recruitment, wages, personal evaluation, andmedical checkups) and Personal Information onshareholders of a Full Member itself are notsubject to the Guidelines.
(i) Information on Beneficiaries, etc.
For example, the following may fall under thiscategory.
(a) Description in documents proving opinionsof beneficiaries on change of contracts
stipulated in Article 17 of the Act on
Investment Trusts and Investment
Corporations (Act No. 198 of 1951;
hereinafter referred to as the “Investment
Trust Act”)(b) Matters stated in beneficial interest registers
provided in Article 26, Paragraph 1, Item 8of the Ordinance for Enforcement of the Act
on Investment Trusts and Investment
Corporations (Ordinance of the Prime
Minister’s Office No. 129 of 2000)(c) Information pertaining to Investors of aninvestment corporation in the event thatadministrative work has been entrusted by
the investment corporation under Article 117of the Investment Trust Act(ii) Information on customers (including information
on original customers whose account was closed
by cancellation of contract, etc.)
For example, the following may fall under thiscategory.
(a) Matters stated in the Customer Card

－3－

Guidelines for Protection of Personal Information

Explanations(b) Matters stated in identification records(c) Matters stated in transaction accountapplication forms(d) Information pertaining to a customer’stransactions (including matters stated in atransaction balance report, as well as cash
flows of customer accounts and acceptanceand delivery of beneficiary certificates, etc.)(e) Matters stated in an application form for
brokerage to a custodian(f) Correspondence with customers(iii) Information on individuals of prospective
customers, client companies, securities issuing
companies, etc.
For example, the following may fall under thiscategory.
(a) Information such as name, company name,title, and telephone number(b) Information obtained from questionnaires
and list brokers, etc.
(c) Information that is in the public domain
through official gazettes, large taxpayer lists,
personnel records, etc.
* Since the acquisition of Individual Number islimited to the purpose of performing clerical
work specified in the Number Act, theprovision of Individual Number must not berequested from any prospective customer.
[Reference provisions, etc.]
Article 15 of the Numbers Act(2) Examples falling under the category of informationthat “can identify a specific individual”
For example, the following may fall under thiscategory.
(i) Information including name(ii) Information that does not include names but
can identify a specific individual by numbers,
symbols, images, sounds, or other information
attached to each individual contained in theinformation(iii) Information that cannot solely identify a
specific individual but can identify a specificindividual by comparing numbers, symbols, orother information contained in the information
with other information held by a Full Member
or information disclosed to the public throughprocessing by a computer, etc.
(3) Cases falling under the category of “informationthat can be readily collated with other informationand thereby can identify a specific individual”
For example, in the case where Personal
Information independently acquired by eachhandling department of a Full Member isseparately stored in a database installed in eachhandling department, when both handlingdepartments can check information on both
databases in a general manner in the ordinary
course of business, the information is considered
in a state where it “can be readily collated.”－4－

Guidelines for Protection of Personal Information

1-2 Personal Identification Codes
This term refers to letters, numbers, symbols, andother codes specified in Article 1 of the
Enforcement Order as those that can identify a
specific individual from the information alone.

Explanations
On the other hand, in the case where it isnecessary to make inquiries of other business
operators and other cases, when it is difficult tocollate information, or when it is not possible for a
Full Member to collate information on both
databases in a general manner in the ordinary
course of business without taking time and effort
because both handling departments of the Full
Member or the person in the position ofsupervising the departments, etc. are strictly
prohibited from handling both databases in theregulations or operation, the information isconsidered in a state where it “cannot be readilycollated.”[Reference provisions, etc.]
Article 2 of Protection Act, 2-1 of General Rules GL
1-2. Personal Identification Codes (Item 1-2)
A “Personal Identification Code” refers to any
character/letter, number, symbol, or other codes
prescribed by cabinet order as those that can identify
a specific individual from the information alone.
Any information containing those falling under thiscategory is regarded as Personal Information.
Specific examples of Personal Identification
Codes are as follows.
(1) A character/letter, symbol, or other codes into which
any bodily feature has been converted for use bycomputers that is enough to identify a specificindividual, as shown in the following examples(i) Linear pattern formed by undulations on thesurface of the iris(ii) Vocal quality determined by vibration of vocal
cords, opening and closing of glottis, and shapeand change of vocal tract when vocalizing(iii) Posture while walking and movement of botharms, stride length, and other aspects of walking(iv) Shape of veins defined by their branches andendpoints in a palm or in the back of a hand or
under the skin of fingers(v) Fingerprint or palm print(2) Passport number(3) Basic pension number(4) License number(5) Resident register code(6) Individual number* Information on the deceased is not included in
Personal Information, but it should be noted that
individual numbers are subject to security
control action even if they are related to thedeceased.
[Reference provisions, etc.]Article 12 of the
Numbers Act(7) Number, etc. stated in an insurance card for healthinsurance that can identify a Principal* Numbers attached by private sector, etc. shallnot be Personal Identification Codes.
* It should be noted that there is some Personal
Information that is not a Personal Identification
Code but is regarded as Personal Information.

－5－

Guidelines for Protection of Personal Information(2) Personal Information Database, etc.
This term refers to a collection of information
including Personal Information listed below;
provided, however, that this shall exclude thosethat are unlikely to damage rights and interests ofindividuals in light of the method of use.
(a) Database, etc. systematically arranged so thatspecific Personal Information can be searchedby using a computer(b) In addition to those described in (a) above,
database, etc. systematically arranged so thatspecific Personal Information can be easily
searched by organizing personal information inaccordance with certain rules, which are placedin such a state that it can be easily searched witha table of contents, index, codes, etc.

Explanations[Reference provisions, etc.]
Article 2 of the Protection Act, Article 1 of
Enforcement Order, Article 2 through Article 4 of the
Enforcement Rules, 2-2 of the General Rules GL
2. Personal Information Database, etc. (No. 2)(1) Examples falling under the category of “Personal
Information Database, etc.”
For example, the following may fall under thiscategory.
(i) Cases where officers and employees enter andorganize information in business cards using
spreadsheet software, etc. on business computers(irrespective of the owner), and use or provide it
for “the company’s businesses” such as
solicitation of transactions to customers (Item 2(a))(ii) Even if a computer is not used, customer cards,
etc. that are arranged in Japanese alphabeticalorder with an index (Item 2 (b))(2) Examples not falling under the category of“Personal Information Database, etc.”
Telephone directories, housing maps, personnel
records, car navigation systems, questionnaire
results, etc. on the market that have not beenedited, processed, classified, or organized(3) Under the Numbers Act, a Personal Information
Database, etc. is stipulated as a “personal
information file.” In addition, a personal
information file containing an individual number
is a “specific personal information file.” It should
be noted that the Numbers Act prohibits financial
institutions from using individual numbers as
customer numbers for the purpose of customer
management. The same shall apply in cases where
the number is replaced by alphabet, etc. by acertain rule of replacement, etc.
*1 The Numbers Act stipulates that the person in
charge of processes using individual numbers, etc.
and the person engaged in processes using individual
numbers, etc. must not create a specific personal
information file beyond the extent necessary forhandling processes using individual numbers, etc.
Therefore, when an individual number is stated in an
inquiry document, etc. received through tax
investigation, the individual number must be deleted
or disposed of immediately after the utilization
purpose is achieved, regardless of whether theindividual number is for an existing customer or not.
*2 Since April 2020, an account management
institution has been required under the General Act
of National Taxes to manage subscriber information
in a state of being searchable by an individual
number. However, under the Numbers Act, it isprohibited to use an individual number as customer
number for customer management.
[Reference provisions, etc.]
Article 2 of the Number Act, 1-(1) of the Numbers Act,
Finance GL, 2-4 of the General Rules, Article
74-13-3 of the General Rules for National Taxes－6－

Guidelines for Protection of Personal Information(3) Personal Data
This term refers to Personal Information
constituting a Personal Information Database, etc.

(4) Personal Information Handling Business Operators
This term refers to a person providing a Personal
Information Database, etc. for use in business;
however, excluding central governmentorganizations, local governments, incorporated
administrative agencies, etc. set forth by the Act
on the Protection of Personal Information Held byIncorporated Administrative Agencies, etc. (ActNo. 59 of 2003), and local incorporated
administrative agencies set forth by the Local
Incorporate Administrative Agencies Act (ActNo. 118 of 2003).
The term “business” used herein in reference to“for use in business” means similar acts that are
repeatedly and continuously carried out for acertain purpose and deemed to be business undernormal social conventions, whether for profit or
non-profit.
In addition, any person providing a Personal

Explanations
3. Personal Data (Item 3)(1) Examples falling under the category of “Personal
Data”
For example, the following may fall under thiscategory.
(i) Personal Information downloaded from a
Personal Information Database, etc. to a recording
medium(ii) Information output from a Personal Information
Database, etc. on paper (including copies thereof)(iii) In the case where a paper-based application
form for opening a transaction account or acustomer card, etc. prior to data entry is
searchable in Japanese alphabetical order or
account number order (falling under the categoryof “Personal Information Database, etc.”),Personal Information constituting the Personal
Information Database, etc.
(iv) In the case where even if the data has beenprocessed by deleting “names” or any other means
so that a third party cannot identify a specificindividual from the data, specific Personal
Information can be identified by comparing withother information and specific Personal
Information can be easily retrieved from a Full
Member’s perspective (falling under the categoryof “Personal Information Database, etc.”),Personal Information constituting the Personal
Information Database, etc.
(2) Examples not falling under the category of“Personal Data”
For example, in the case where a paper-based
application form for opening a transaction
account or a customer card, etc. prior to data entry
is not in a state of being searchable in Japanesealphabetical order or account number order, etc.,
Personal Information contained therein does not
fall under the category.
[Reference provisions, etc.]
Article 2 of the Protection Act, 2-6 of the General Rules[Reference provisions, etc.]Article 2 of the Protection
Act, 2-5 of the General Rules GL－7－

Guidelines for Protection of Personal Information
Information Database, etc. for use in business isdeemed to be a Personal Information HandlingBusiness Operator, regardless of the number of
specific individuals identified by Personal
Information constituting the Personal Information
Database, etc.
Even a non-juridical association (voluntaryorganization) or an individual with no capacity ofright shall be deemed to be a Personal Information
Handling Business Operator if the association orindividual provides a Personal Information
Database, etc. for use in business.
(5) Principal
The term refers to a specific person identified by
Personal Information.
(6) Retained Personal Data
This term refers to any Personal Data for which a
Full Member has all authority to disclose, correct,
add to or delete from the contents, to discontinueuse, to erase, or to discontinue provision to any
third party at the request of a Principal or his/her
representative, other than the following Personal
Data.

(a) Personal Data that are likely to harm the life,
body, or property of a Principal or a third party
if their presence or absence is made known(b) Personal Data that are likely to promote or
induce illegal or unjust acts if their presence orabsence is made known

Explanations[Reference provisions, etc.]
Article 2 of the Protection Act
4. Retained Personal Data (Item 6)(1) Examples of “Retained Personal Data”
For example, the following may fall under thiscategory.
(i) Personal information constituting Personal
Information Database, etc. internally prepared andprocessed (database on the company’s customers,
etc., or documents and books thereof)(ii) When a Full Member itself has authority torespond to all requests for disclosure, correction,
addition or deletion, cessation, elimination, andcessation of provision to a third party (referred toas “authority for disclosure, etc.” in (2)) for a
database created and possessed by combining
external data such as corporate data with data
within the Full Member, the data falls under the
category of “Retained Personal Data.”(2) Examples not falling under the category of“Retained Personal Data”
For example, a database, etc. obtained by a Full
Member from an outsourcer in the case ofhandling Personal Data as outsourced service, andfor which a Full Member itself has no authority
for disclosure, etc. does not fall under the
category.
[Reference provisions, etc.]
Article 2 of the Protection Act, 2-7 of the General Rules(3) Specific Examples of “Personal Data that are likely
to promote or induce illegal or unjust acts if theirpresence or absence is made known” (Item 6 (b))(i) Cases where a Full Member holds Personal Dataof an organized crime group, so-called “sokaiya”(corporate racketeer), an antisocial organization orits members, etc. for the purpose of preventing
acts of unreasonable demand or otherwise
examining the commencement of transactions(ii) Cases where a Full Member holds Personal Dataof a person who repeats such acts of unreasonable
demands in order to prevent such acts fromso-called suspicious persons, malicious claimants,
etc.
[Reference provisions, etc.]
Article 2 of the Protection Act, 2-7 of the General Rules－8－

Guidelines for Protection of Personal Information(c) Personal Data that are likely to impair thesafety of Japan, impair trust relationship withother countries or international organizations,or suffer disadvantages in negotiations withother countries or international organizations if
their presence or absence is made known(d) Personal Data that are likely to interfere withthe prevention, suppression, or investigation ofcrimes or the maintenance of public safety andorder if their presence or absence is madeknown(e) Personal data to be deleted (except for
renewal) within six (6) months(7) Special Care-required Personal Information
The term refers to Personal Information
comprising certain descriptions, etc. as those
whose handling requires special care so as not tocause unfair discrimination, prejudice, or otherdisadvantages.

Explanations(4) Specific examples of “Personal Data that are likely
to impair the safety of Japan, impair trust
relationship with other countries or internationalorganizations, or suffer disadvantages innegotiations with other countries or internationalorganizations if their presence or absence is madeknown” (Item 6 (c))
For example, information on schedule of VIPs’
activities[Reference provisions, etc.]
Article 2 of the Protection Act, 2-7 of the General Rules(5) Specific examples of “Personal Data that are likely
to interfere with the prevention, suppression, orinvestigation of crimes or the maintenance of
public safety and order if their presence or absence
is made known” (Item 6 (d))(i) Cases where a Full Member holds Personal Dataof suspect, etc. in the course of receiving andreplying to inquiries from the police regarding
matters related to investigations(ii) Information subject to notification oftransactions that are suspected to relate to criminal
proceeds (suspicious transactions)(iii) Information on an account used for a banktransfer fraud[Reference provisions, etc.]
Article 2 of the Protection Act, Article 4 and Article 5of the Enforcement Order, 2-7 of the General Rules[Reference provisions, etc.]
Article 2 of the Protection Act, 2-7 of the General Rules
5. Special Care-required Personal Information (Item 7)
Specific examples of information falling under the
category of Special Care-required Personal
Information(1) Race(2) Creed(3) Social status(4) Medical history(5) Criminal background(6) Fact that a person has been damaged by crime(7) Fact that a person has a physical disability, an
intellectual disability, a mental disability(including a developmental disability), or any
other physical or mental disability stipulated by
the Enforcement Rules(8) Results of medical checkups or other inspections forprevention and early detection of diseases
conducted by physicians or other persons engaged
in healthcare-related duties for a Principal(9) Fact that based on results of medical checkups, etc.,
or on the grounds of sickness, injury, or othermental or physical change, guidance or medical
treatment or prescription for improving the mental
or physical condition of a Principal has been
provided by a physician, etc.
(10) Fact that arrest, search, seizure, detention,
institution of prosecution, or any other proceedingin connection with a criminal case has been taken－9－

Guidelines for Protection of Personal Information(8) Sensitive Information
In the finance sector, this term refers to Special
Care-required Personal Information andinformation relating to individuals’ membershipin a labor union, family origin, registereddomicile, healthcare, and sex life (among these,
excluding the matters falling under the category of
the Special Care-required Personal Information)(excluding any information made public by the
Principal or by a national government organ, local
public entity, or any of those set forth in the itemsof Article 76, Paragraph 1 of the Protection Act, or
the items of Article 6 of the Enforcement Rules, orseemingly clear information acquired by visualobservation, filming, or photographing of the
Principal).
(9) Anonymously Processed Information
This term refers to Information Relating to an
Individual that can be produced from processing
Personal Information so as to neither be able toidentify a specific individual by taking action
prescribed in accordance with the divisions of
Personal Information nor be able to restore the
Personal Information.

Explanations
with a Principal as the suspect or defendant(11) Fact that investigation, protective measures,
adjudication, protective measures, or any otherproceedings relating to a case for the protection of
a juvenile have been taken for a Principal as ajuvenile prescribed in Article 3, Paragraph 1 of theJuvenile Act or a person suspected of being such ajuvenile[Reference provisions, etc.]
Article 2 of the Protection Act, 2-3 of the General Rules
6. Sensitive Information (Item 8)
It should be noted that any information made publicby the Principal or by a national government organ,
local public entity, or any of those set forth in theitems of Article 76, Paragraph 1 of the Protection
Act, or the items of Article 6 of the Enforcement
Rules, or seemingly clear information acquired byvisual observation, filming, or photographing of the
Principal shall not be included in Sensitive
Information even if such information falls under the
category of Special Care-required Personal
Information under laws and regulations.
[Reference provisions, etc.]
Article 5 of the Finance Sector GL

7. Anonymously Processed Information (Item 9)(1) The following information is considered to fallunder the category of Anonymously Processed
Information.
(i) In the case of Personal Information that is “thosecontaining a name, date of birth, or otherdescriptions, etc. whereby a specific individual
can be identified (including those that can bereadily collated with other information andthereby identify a specific individual),”information generated by deleting a name, date ofbirth, or other descriptions, etc. contained fromthe Personal Information so that a specificindividual cannot be identified(ii) In the case of Personal Information that “contains
a Personal Identification Code,” information fromwhich all Personal Identification Codes includedin the Personal Information are deleted so that a
specific individual cannot be identified* “Can identify a specific individual” refers to astate that can be judged so under social
conventions from the information alone or
those stored by combining multiple pieces of
information, and depends on whether it can beconcluded that identity between a specificliving person and information is recognizedwith a common person’s judgment or
understanding.
(2) When Anonymously Processed Information iscreated, it is necessary to take actions inaccordance with the Protection Act and theAnonymous Processing GL. “Anonymously
Processed Information is created” refers to－10－

Guidelines for Protection of Personal Information

Article 3. Specification of Purpose of Use
1. A Full Member must, in handling Personal
Information, specify in what kind of business the
Personal Information is provided for use and for what
purpose it is used as explicitly as possible so that the
Principal can reasonably anticipate them.
2. When a utilization purpose in the preceding
paragraph is specified, abstract expressions such as“to be used for a purpose required by the company”
are not considered to satisfy the requirement of “asexplicitly as possible.” Therefore, a Full Member
must make efforts to specify the utilization purpose
by indicating the financial instruments or services tobe provided.
3. When utilization purposes of specific Personal
Information are limited by laws and regulations, etc.,
a Full Member is to clearly indicate that fact.
4. A Full Member must, in case of altering utilization
purpose, not do so beyond “the scope recognizedreasonably relevant to the pre-altered utilization
purpose” stipulated in Article 15, Paragraph 2 of theProtection Act.

Explanations
creating such information to be handled as
Anonymously Processed Information. For
example, cases where information continues to behandled as Personal Information after some
Personal Information such as name is deleted (orreplaced by other descriptions, etc.) as part of
security control action (including cases where
original Personal Information is restored) or where
Personal Information is processed to create
statistical information, or other cases do not fallunder the category of “Anonymously Processed
Information is created.”[Reference provisions, etc.]
Article 2 of Protection Act, 2-8 of the General Rules,
2-1 of the Anonymous Processing GL
1. If provision of Personal Information to a third party
is assumed in advance when identifying theutilization purpose, a Full Member needs to specify
the purpose so that the fact is clearly understood.
2. Examples of specifying a utilization purpose
Each Full Member shall specify a purpose ofutilizing Personal Information by reference to thefollowing examples.
(1) Business details (optional matter)
The description of business details shall be at thediscretion of each company, and in the case where
they are described, the following examples shallbe referred to.
(i) Business operations set forth in Article 2,
Paragraph 8, Item 12, (a) of the FIEA or business
operations set forth in Item 14 of the said
paragraph and business operations incidental
thereto (in the case of a trust company, etc. whichis the trustee company of an investment trust
managed without instructions from the settlor,
trust business, and business operations incidental
thereto)(ii) Business operations stipulated in Article 2,
Paragraph 8, Item 7 of the FIEA(iii) Business operations that a Full Member may
engage in under Article 35, Paragraph 2 of the
FIEA and business operations incidental thereto(iv) Any other business operations that a Full
Member may engage in and business operations
incidental thereto (including any business
operations that may be permitted in the future)(2) Utilization purpose (required matter)
For example, a utilization purpose shall beconcretely specified as follows. It is also possible
to describe the purpose of utilizing individual
numbers. In this case, make sure that customers
can clearly understand that the utilization purpose
is independent of the purpose of utilizing other
Personal Information.
(i) To solicit, sell, or offer services for securities
issued by the company(ii) To judge the appropriateness of provision of
goods and services in light of the principle of－11－

Guidelines for Protection of Personal Information

Explanations
suitability, etc.
(iii) To receive applications for securities or services
such as opening transaction accounts, etc.
(iv) To confirm that the person is a customer, thePrincipal, or a representative of the Principal(v) To report the transaction results, balance, etc. tocustomers(vi) To perform clerical work for transactions withcustomers(vii) To exercise rights and perform obligations
under contracts with customers or laws, etc.
(viii) To conduct market research, and research anddevelopment of financial products and services
through data analysis, questionnaires, etc.
(ix) To appropriately perform entrusted work in thecase where a whole or part of administration workfor Personal Information is entrusted by aninvestment corporation to the company as a trustee
for general administration work, and other cases(x) Otherwise to perform transactions withcustomers properly and smoothly● Purpose of utilizing individual number
Regardless of the purpose of utilizing Personal
Information in any of the preceding items, anindividual number shall be used solely for“clerical work for application and notification for
opening an account for financial Instruments
transaction” and “clerical work for preparationand submission of legal documents related tofinancial instruments transactions.”* In the case of notifying, publicizing, or clearly
showing the purpose of utilizing individual
numbers separately from the purpose of utilizing
Personal Information, it is necessary to clearly
indicate to the customer that the purpose ofutilizing Personal Information has been notified,publicized, or clearly shown separately and thentake care not to make any omission in notifying,publicizing, or clearly showing the respective
utilization purposes. For example, it is possible todescribe the purpose of utilizing individual
number as follows.
● Purpose of utilizing individual number(i) Clerical work for application and notification
for account opening for financial instruments
transactions(ii) Clerical work for preparation and submissionof legal documents relating to financial
instruments transactions* Please check the purpose of utilizing Personal
Information other than personal number,which has been made public on our website,etc.
3. Scope of change of a utilization purpose(Examples of acceptable cases)“Send product information, etc. by mail” →“Send product information, etc. via e-mail”(Examples of unacceptable cases)“Used for tabulation of questionnaire” → “Used－12－

Guidelines for Protection of Personal Information

Article 4. Format of Consent
When obtaining the consent of a Principal specified
in the next article, Article 13 and Article 13-2, a Full
Member is to do so in writing (including anelectromagnetic record; the same shall apply
hereinafter) in principle.
In the case where the Principal is a minor, adultward, person under curatorship, or person underassistance and does not have the ability to judge
results of the consent to the handling of Personal
Information, and other cases, consent must be
obtained from a person with parental authority orlegal representative, etc.

Article 5. Restriction due to a Utilization Purpose
1. A Full Member must not handle Personal
Information without obtaining in advance a
Principal’s consent beyond the necessary scope toachieve a utilization purpose specified in Article 3.
However, use of Personal Information (such as

Explanations
for mailing of product information, etc.”[Reference provisions, etc.]
Article 15 of the Protection Act, Article 2 of the
Finance Sector GL, 1 - (1) of the Numbers Act, FinanceGL, 3-1-1 and 3-1-2 of the General Rules GL(1) Specific examples of methods to obtain “consent”(i) Method to obtain consent by stating a utilization
purpose and consent wording on a written
document with which Personal Information is
obtained directly from the Principal or on anotherwritten document and requiring a Principal’s
signature (and seal)(ii) In the case of the Internet, etc., method throughreception of intercommunication using electriccommunication lines such as e-mail, SMS, etc.
from a Principal with indication of intention to
give consent on the screen (such as clicking of an
approval button by a Principal, touching a touch
panel to indicate consent, and input using a button,
switch, etc.) or consent wording stated on it(hereinafter referred to as “e-mail, etc.”), voice
entry by a Principal, and other means(iii) In the case of non-face-to-face communication,such as telephone calls, other than (i) and (ii)above, when consent is obtained orally, it isnecessary to establish a system in whichindication of a customer’s intention to consent canbe verified subsequently by making internal
records (listening sheets, etc.) or recording voice,etc.
(2) Matters to be noted in the case of using a writtenconsent that is prepared in advance
It is desirable that a Principal understandprovisions regarding handling of Personal
Information that are clearly separated from othersby changing the size of letters and expression ofsentences, etc.
Alternatively, it is desirable to check consent insuch a way that the intention of a Principal can beclearly reflected, for example, by providing a
confirmation field in a written consent documentthat is prepared in advance and allowing thePrincipal to check the consent.
(3) In the case where a Principal is a minor, it isconsidered that consent of a person with parental
authority is necessary when the minor does nothave the ability to judge the result of his or her
consent regarding handling of Personal
Information.
[Reference provisions, etc.]2-12 of the General Rules GL, Article 3 of the Finance
Sector GL(1) When a Full Member uses Personal Informationthat has already been obtained in connection withbusiness operations to be newly handled, thePersonal Information is considered to be within
the scope necessary to achieve a utilization－13－

Guidelines for Protection of Personal Information
sending an e-mail or making a telephone call) toobtain a Principal’s consent in advance shall not be
deemed as a utilization for unintended purposes even
if it is not included the utilization purposes as
originally specified.

2. A Full Member must, in case of having acquired
Personal Information as a result of succession of abusiness from another Personal Information
Handling Business Operator because of a merger orother reason, not handle the Personal Information
without obtaining in advance a Principal’s consent
beyond the necessary scope to achieve thepre-succession utilization purpose of the said
Personal Information.
In addition, when personal information is handledwithin the necessary scope to achieve thepre-succession utilization purpose, it shall not be
deemed as a utilization for unintended purposes, anda Principal’s consent does not need to be obtained.

3. The preceding two paragraphs shall not apply to anyof the following cases.

(1) Cases based on laws and regulations

Explanations
purpose specified in Article 3, unless thesebusiness operations are deviated from “any otherbusiness operations that a Full Member may
engage in and business operations incidental
thereto (including any business operations that
may be permitted in the future)” specified in theutilization purpose.
[Reference provisions, etc.]
Article 16 of the Protection Act, 3-1-3 of the General
Rules GL
(2) Under the category of “merger or other reason”(Paragraph 2), in addition to a merger, generallybusiness succession in which Personal Data, suchas customer information, related to the businessare generally also taken over as a whole, including
business transfer, contribution in kind of business,and company split, etc., fall.
After the business succession, when handling
Personal Information beyond the scope necessary
to achieve the utilization purpose before thebusiness succession, it is necessary to obtainconsent of a Principal in advance. However, even
if the use of Personal Information to obtain theconsent (such as sending e-mails and making
telephone calls) is not stated as the utilization
purpose before the succession of business, suchuse of Personal Information shall not be regarded
as use for any purpose other than the original
intent.
(3) It should be noted that, in principle, individual
number may not be used for any purpose otherthan the original intent even if consent of the
Principal is obtained.
[Reference provisions, etc.]
Article 16 of the Protection Act, 3-1-4 of the General
Rules GL, Article 9, and Article 30, Paragraph 3 of the
Numbers Act and 1 - (1) of the Numbers Act, FinanceGL(4) Notwithstanding any of the items set forth inParagraph 3, individual numbers may be handled
exceptionally only in the following cases.
(i) Cases in which a financial institution pays moneyat the time of serious disaster, etc.
(ii) Cases in which there is a need to protect a human
life, body, or property, and when the Principal has
given consent or it is difficult to obtain a
Principal’s consent[Reference provisions, etc.]
Article 16 of the Protection Act, Article 9 of the
Numbers Act, 1 - (1) of the Numbers Act, Finance GL(5) Specific examples of “cases based on laws andregulations” (Paragraph 3, Item 1)
For example, the following may fall under thiscategory.
(i) Article 74-2 through Article 74-6 of the Act onGeneral Rules for National Taxes (Questioning
and Inspection by Tax Authorities)(ii) Article 1 of the National Tax Violations Control
Act (Voluntary Investigation of Criminal Cases by－14－

Guidelines for Protection of Personal Information－15－

Explanations
Collecting Officials or Tax Collectors)(iii) Article 197 of the Code of Criminal Procedure(Inquiry for Matters Related to Investigation)(iv) Article 8, Paragraph 1 of the Act on Preventionof Transfer of Proceeds from Crime (hereinafterreferred to as the “Crime Proceeds Transfer
Prevention Act”) (Notification of Suspicious
Transactions, etc.)(v) Article 223 of the Code of Civil Procedure(Order to Submit Documents)(vi) Article 218, Paragraph 1 of the Code of Criminal
Procedure (Seizure, Search and Inspection by
Warrant)(vii) Article 225 of the Income Tax Act (Payment
Record and Notice of Payment)(viii) Article 72-63 of the Local Tax Act (Right of
Employees of the Ministry of Internal Affairs andCommunications to Ask Questions and Make
Inspection Pertaining to Individual Business Tax);(ix) Article 141 of the National Tax Collection Act(Questioning and Inspection)(x) Article 10-6 of the Act on Special Provisions, etc.
of the Income Tax Act, the Corporation Tax Act,and the Local Tax Act Incidental to Enforcementof Tax Treaties, etc. (Report of AccountInformation Pertaining to Automatic Information
Exchange System based on the Common
Reporting Standards (CRS))(xi) Article 56-2, Article 210, and Article 211 of the
FIEA (Collection and Inspection of Report,
Questioning, Inspection, Retention, etc., Visit,
Search, Seizure, etc.)(xii) Article 78, Paragraph 2, Article 78, Paragraph
6, and Article 78, Paragraph 7 of the FIEA
* Provision of information to self-regulatingorganizations under the FIEA, etc.
Cases where a Full Member provides
Personal Information to the Association inorder to carry out the Association’s
self-regulation related services, such asreporting and notification to the Association,
investigation by the Association or complaint
consultation and mediation business by the
Association, etc. under the provisions of the
Articles of Incorporation and other rules of the
Association, which have been established inaccordance with the FIEA, etc.
(xiii) Article 23-2, Paragraph 2 of the Attorney Act(Inquiries from Bar Associations)
For example, cases where it becomes necessary
as evidential material to be submitted to a court,etc.
It should be noted that although the relevantlaws and regulations have a provision statingthat a third party may request provision of
Personal Information, when a Full Member isallowed not to respond to the request for ajustifiable reason, the Full Member shall
respond within the scope of the necessity andGuidelines for Protection of Personal Information(2) Cases in which there is a need to protect a human
life, body, or property, and when it is difficult toobtain a Principal’s consent(3) Cases in which there is a special need to enhance
public hygiene or promote fostering healthy
children, and when it is difficult to obtain a
Principal’s consent(4) Cases in which there is a need to cooperate with acentral government organization or a local
government, or a person entrusted by them
performing affairs prescribed by laws andregulations, and when there is a possibility thatobtaining a Principal’s consent would interferewith the performance of the said affairs

Explanations
reasonableness of use for any purpose otherthan the original intention in light of the purportof the relevant laws and regulations.
In this case, for example, as a response when
an inquiry of a bar association is received, if it
is difficult to judge whether the response iswithin the scope of the necessity andreasonableness of providing Personal Data, it isdesirable to obtain the Principal’s consent.
[Reference provisions, etc.]
Article 16 of the Protection Act, 3-1-5 of the General
Rules GL
(6) Specific examples of “cases in which there is a needto protect a human life, body, or property, andwhen it is difficult to obtain a Principal’s consent”(Paragraph 3, Item 2)
For example, “person” includes “corporation,”and the following may fall under this category.
(i) Cases of collecting information on illegal
activities of an organized crime group, so-called“sokaiya” (corporate racketeer), an antisocialorganization or its members, etc., information on
an account used for a bank transfer fraud, andother information(ii) Cases of making inquiries of the police about
customers who are suspected to be antisocial
forces(iii) Cases of providing information to medical
institutions in order to deal with sudden illness ofcustomers, etc.
(iv) Cases of providing information to the police
about a person who persistently and intentionallyinterferes with business(v) Assets disclosure to a family member of a
Principal in a situation in which the Principal ismissing due to an earthquake, disaster, etc.
continues[Reference provisions, etc.]
Article 16 of the Protection Act, 3-1-5 of the General
Rules GL
[Reference provisions, etc.]
Article 16 of the Protection Act, 3-1-5 of the General
Rules GL
(7) Specific examples of “cases in which there is a needto cooperate with a central governmentorganization or a local government, or a person
entrusted by them performing affairs prescribedby laws and regulations, and when there is apossibility that obtaining a Principal’s consent
would interfere with the performance of the saidaffairs” (Paragraph 3, Item 4)
For example, the following may fall under thiscategory.
(i) Cases of responding to voluntary investigation
conducted by tax authorities from the perspectiveof achieving appropriate taxation without
exercising individual rights to ask questions andinvestigate.

－16－

Guidelines for Protection of Personal Information

Article 6. Handling of Sensitive Information
1. A Full Member shall not acquire, use, or provide to athird party any Sensitive Information, except for thefollowing cases.

Explanations(Note) A Full Member individually judges
whether or not “there is a need to cooperate.”
However, it is desirable that a Full Member
accepts an “inquiry form for transactions of
securities, etc.” and other documents from tax
authorities, identifies Personal Information
subject to the inquiry, and then provides therelevant information.
(ii) Cases of responding to voluntary investigation
by police(iii) Cases of providing police with information on
an account used for a bank transfer fraud(iv) Cases of replying to a general statistical survey
It should be noted that a Full Member shall
respond within the scope of the necessity andreasonableness of use for any purpose other than theoriginal intention in light of the purport of thevoluntary request.
[Reference provisions]
Article 16 of the Protection Act, Article 4 of the
Finance Sector GL, 3-1-5 of the General Rules GL(1) Examples of information not falling under the
category of Sensitive Information
For example, the following does not fall under the
category.
(i) Publicly known information stated in newspapers,
television programs, official gazettes, etc.
(ii) Information on “nationality (including theexistence of permanent residence)” in the case ofusing the “nationality” in order to confirm thegoverning law in the performance of inheritanceand tax obligations(2) Matters to be noted regarding Sensitive Information(i) The timing for acquiring Sensitive Information is
the stage at which a Full Member stores theinformation as information used for businesspurposes by binding it to a file or other means.
(ii) When a copy of a driver’s license stating
registered address, conditions of the license, etc.
(limited to those where the content of theconditions, etc. falls under the category of
Sensitive Information) is received as an
identification document from a customer in order
to identify the customer under the Crime Proceeds
Transfer Prevention Act, etc. on and after April 1,
2005, if the registered address, conditions of thelicense, etc. are blacked out swiftly before filing(storing), this is not regarded as “acquisition” of
Sensitive Information.
In addition, it should be noted that information
regarding intention to donate organs, etc.
(including special columns), which is notnecessary for identification confirmation, shallnot be acquired from the back of a driver’s
license, the face of an individual number card, ahealth insurance card, and others, regardless ofwhether it is Sensitive Information, because such

－17－

Guidelines for Protection of Personal Information(1) Cases based on laws and regulations, etc.

(2) Cases in which there is a need to protect a human
life, body, or property

Explanations
information is not necessary for operation anddirect public offering services, etc.
It should be noted that Sensitive Informationacquired prior to April 1, 2005 may not be used orprovided to any third party on and after the saiddate, except in the cases set forth in each item of
Paragraph 1 of this article.
It should also be noted that any Special
Care-required Personal Information acquired
prior to May 30, 2017 (excluding Sensitive
Information prior to May 30, 2017) may not be
used or provided to any third party after May 30,
2017 except in the cases set forth in the items of
Paragraph 1 of this Article.
(3) Specific examples of “cases based on laws andregulations, etc.” (Paragraph 1, Item 1)
In addition to laws, government ordinances,ordinances, and treaties, with regard to guidance
documents issued by cabinet decision or a public
office, for example, the following may fall under
this category.
(i) Cases of receiving a physical disability certificate(copy) from a customer in order to check his or her
qualification to use the “tax-free small-sum
savings system for people with disabilities.”(ii) Cases of acquiring information on the antisocial
activities of an organized crime group, anantisocial organization or its members describedin documents and others at a meeting, etc. of theOrganized Crime Group Expulsion Campaign
Promotion Center under the Act on the Preventionof Unjust Acts by Organized Crime Group
Members(iii) Cases of providing Personal Information
through notification of suspicious transactions
under Article 8, Paragraph 1 of the Crime
Proceeds Transfer Prevention Act(4) Specific examples of “cases in which there is a needto protect a human life, body, or property”(Paragraph 1, Item 2)(i) Cases of acquiring criminal information for the
purpose of identifying an organized crime group,so-called “sokaiya” (corporate racketeer), an
antisocial organization or its members, etc.
(ii) Cases where a Full Member obtains information
on sickness such as dementia from a family
member or the like of a customer whose
decision-making ability has deteriorated on behalfof the customer, when the Full Member confirms
conformity of the customer[Reference provisions, etc.]
Article 17, Paragraph 2, Item 2 of the Protection Act(3) Cases in which there is a special need to enhance
public hygiene or promote fostering healthy
children－18－

Guidelines for Protection of Personal Information(4) Cases in which there is a need to cooperate with acentral government organization or a local
government, or a person entrusted by them
performing affairs prescribed by laws andregulations(5) Cases in which there is a need to acquire, use, or
provide to a third party any Sensitive Informationof its employees, etc. concerning their affiliation toor membership in a political or religious group orlabor union within the scope necessary for the
performance of affairs relating to withholding
taxes, etc.
(6) Cases in which any Sensitive Information is
acquired, used, or provided to a third party to theextent necessary for performing the transfer ofrights and obligations arising from inheritanceprocedures(7) Cases in which a Full Member acquires, uses, orprovides to a third party any Sensitive Information
based on the consent of a Principal to the extent
necessary for performing its services from thenecessity to ensure appropriate operation of its
businesses run by the Full Member(8) Cases in which biometric information, which falls
under the category of Sensitive Information, isused based on a Principal’s consent for the purposeof identity verification
2. When a Full Member acquires, uses, or provides to athird party any Sensitive Information in the case set
forth in the preceding paragraph, the Full Member
shall handle the information with extreme caution soas to avoid acquisition, use, or provision to a third
party of the information beyond the grounds set forthin the same paragraph.
3. When a Full Member acquires, uses, or provides to athird party any Sensitive Information in the cases set
forth in Paragraph 1 of this article, the Full Member
must make a response appropriately in accordancewith Laws and Regulations on Protection of Personal
Information.
4. Article 23, Paragraph 2 of the Protection Act (opt-out
provision) is not to apply to the case where a Full
Member provides Sensitive Information to a third
party.

Article 7. Proper Acquisition of Personal
Information
1. A Full Member must not acquire Personal
Information by deceit or other improper means. In
addition, a Full Member must not unjustifiably
infringe interests of a Principal in acquiring Personal
Information from a third party.

Explanations(5) Specific examples of cases in which any Sensitive
Information is acquired, used, or provided to athird party to the extent necessary for performing
the transfer of rights and obligations arising frominheritance procedures (Paragraph 1, Item 6)
For example, cases of obtaining a copy of a family
register for inheritance proceedings[Reference provisions, etc.]
Article 5 of the Finance Sector GL(6) “Biometric information” refers to an example of a
Personal Identification Code (1) in Explanation
1-2 of Article 2.

(7) It should be noted that, for example, in acquiring
Special Care-required Personal Information,consent of the Principal shall be obtained inadvance in accordance with Article 17, Paragraph
2 of the Protection Act.
(8) Since provision of Special Care-required Personal
Information to third parties through opt-out isprohibited by the Protection Act, any Sensitive
Information that does not fall under the category of
special care-required Personal Information also is
not to be provided to a third party through opt-out.
(1) Cases where Personal Information has beenobtained by “improper means”
For example, the following may fall under thiscategory.
(i) Cases of acquiring Personal Information of afamily member, such as income situation offamily, which is not relevant in consideration of
the acquisition circumstance from a child or a－19－

Guidelines for Protection of Personal Information

Explanations
person with a disability who does not haveadequate judgment ability, without consent of thefamily member.
(ii) Cases of acquiring Personal Information by
forcing someone into the violation of therestriction of provision to a third party stipulated
in Article 23, Paragraph 1 of the Protection Act(iii) Cases of acquiring Personal Information from a
Principal by intentionally showing false
information as to the entity acquiring personal
Information, utilization purpose, etc.
(iv) Cases of acquiring Personal Information fromother business operators by instructing the otherbusiness operators to obtain the Personal
Information through improper means(v) Cases of acquiring Personal Information despiteknowing or being able to know easily that
violation of the restriction of provision to a third
party prescribed in Article 23, Paragraph 1 of theProtection Act is being committed(vi) Cases of acquiring Personal Information despiteknowing or being able to know easily that the
Personal Information has been acquired by
improper means(2) Acquisition of individual number and basic pension
numberIt should be noted that individual number andbasic pension number must not be obtained otherthan in cases specified by laws and regulations (*1).
From May 25, 2020, the notification card for
confirming individual number has been abolished,
but a transitional measure has been taken, and thecard may be used for identification under the
Numbers Act only when the following conditions
are satisfied (pursuant to the partial enforcementof the “Act for Partial Revision of the Act on Useof Information and Communications Technology
in Administrative Procedures, etc. for Improving
the Convenience for Persons Concerned in
Administrative Procedures, etc. through Use ofInformation and Communications Technology
and Simplifying and Streamlining Administrative
Operations”).
(i) There is no change to matters described on the
notification card.
However, in the case where there is any change
to matters described on the notification card
before the date of abolishment, if measures tochange matters to be described on the notification
card have not been taken by the mayor of themunicipality (including the mayor of a specialward), the transitional measures concerning theguidance for protection of Personal Information
shall not apply.
(ii) Confirmation is to be made that mattersdescribed on a notification card are present
information, by the method specified by the
Numbers Act such as receiving identification－20－

Guidelines for Protection of Personal Information

2. When acquiring Personal Information throughprovision from a third party, a Full Member shallconfirm the status of compliance with laws andregulations of the provider and also confirm that the
Personal Information has been lawfully acquired.

Explanations
documents separately.
* 1. It should be also noted that in addition to individual
number, any request to disclose basic pension
number, symbol, number, etc. for insured persons(meaning insurer number and number, symbol,
number, etc. for insured persons; the same shallapply hereinafter) is prohibited in principle, even forthe purpose of identity confirmation (the restriction
on request for disclosure is imposed on symbol,
number, etc. for insured persons on and after October
1, 2020 when the revised Health Insurance Act, etc.
comes into effect). For example, in the case of
requesting a copy of a health insurance card, etc. as
an identification document on the website or leaflets,
etc. for customers, if “Please confirm that the symbolor number is clearly shown.” or other descriptions
are presented on the website or leaflets, etc., thismight be deemed as request for disclosure of
number, symbol, number, etc. for insured persons.
Therefore, a Full Member should refrain fromproviding such notification.
[Reference provisions, etc.]
Article 17 of the Protection Act, 3-2-1 of the General
Rules GL, Articles 15, 16, 19 and 20 of the Numbers
Act, 3-(2) and 3-(3) of the General Rules GL, Article
108-4 of the National Pension Act, Article 194-2 of the
Health Insurance Act, Article 161-2 of the Act on
Assurance of Medical Care for Elderly People, Article
111-2 of the National Health Insurance Act, Article
143-2 of the Mariners Insurance Act, Article 45 of thePrivate School Personnel Mutual Aid Act, Article
112-2 of the National Public Officers Mutual Aid
Association Act, Article 144-24-2 of the Act on Mutual
Aid Association for Local Public Officers, Article
74-13-4 of the Act on General Rules for National
Taxes, Article 8 of the Act on Improvement in Methodof Number Use (Act No. 28 of 2013)(3) Specific method to confirm the status of complianceof a provider
For example, confirmation for opt-out, theutilization purpose, and disclosure procedures,and that contact information for receiving
inquiries and complaints, and other matters are
possible.
(4) For example, the fact that “Personal Information to
be provided has been obtained legally” isconfirmed by any of the following methods.
(i) Inspection of documents such as contracts
showing the process of acquisition, etc.
(ii) Acceptance of confirmation stating that the
information has been obtained legally(iii) Oral confirmation of legality and proper
preservation of internal records
If it cannot be confirmed that Personal
Information to be provided has been legallyobtained, it is desirable to consider a prudent
response, including voluntary restraint of theacquisition.
[Reference provisions, etc.]3-2-1 of the General Rule－21－

Guidelines for Protection of Personal Information

Article 8. Notification, Public Disclosure, Clear
Indication, etc. of a Utilization Purpose When
Acquiring Personal Information
1. A Full Member must, in case of having acquired
Personal Information except in cases where autilization purpose has been disclosed in advance tothe public, promptly inform a Principal of, ordisclose to the public, the utilization purpose. In thiscase, the method to “inform” is to be in writing, inprinciple, and as for the method to “disclose to the
public,” a Full Member must employ appropriate
methods, such as making the relevant matters public
on its website, etc. or posting or keeping the
document at a counter of the head office or any otherbusiness office, etc., depending on the sales methodof its financial instruments or other mode of business.

2. A Full Member must, notwithstanding the provisionsof the preceding paragraph, in cases where it acquires
the Principal’s Personal Information stated in a
written contract or other document as a result ofconclusion of a contract with a Principal, state theutilization purpose explicitly to the said Principal inadvance. This, however, shall not apply in cases
where there is an urgent need to protect a human life,
body, or property.

Explanations
GL(*) With regard to Personal Data transferred from theEuropean Economic Area (EEA) based on an
adequacy decision under Article 45 of theRegulation of the European Parliament and of theCouncil on the Protection of Natural Persons withregard to the Processing of Personal Data and on theFree Movement of Such Data, and Repealing
Directive 95-46-EC (General Data Protection
Regulation: hereinafter referred to as the “GDPR”)(meaning “Personal Data” set forth in Article 4, Item
1 of the GDRP), it should be noted such Personal
Data are subject to application of the complementaryrules.
[Reference provisions, etc.]
Complementary Rules(1) Specific examples of the method to “Inform”
For example, there are the following methods.
(i) Notification by directly delivering documents
such as leaflets (in principle)(ii) Notification given orally or through automatic
answering machine, etc.
(iii) Notification sent by e-mail,facsimile, etc. or
notification by sending a document by mail, etc.
(2) Specific examples of a method to “disclose to the
public”
For example, there are the following methods.
(i) Posting at a place that can be accessed from the
top page of the company’s own website with one
operation or so.
(ii) Posting of posters, etc. and keeping anddistribution of pamphlets, etc. at a place that
customers are expected to visit, such as thecompany’s business office(Note) With regard to Personal Information held prior
to the date of enforcement of the Protection Act on
April 1, 2005, there was no act of acquiring relevant
Personal Information at the time of the enforcementof the Protection Act, and the provisions of Article
18 of the Protection Act shall not apply.
[Reference provisions, etc.]
2-10, 2-11 of the General Rules GL(3) Examples of “cases where it acquires Personal
Information stated in a written contract or otherdocument” from a Principal (Paragraph 2)
For example, there are the following cases.
(i) Cases of receiving an application form fortransaction account setup or an application form
for brokerage to a custodian company, etc. from a
Principal(ii) Cases of receiving identification documents or
copies thereof from a Principal(iii) Cases of directly obtaining Personal Information
stated in a reply card or questionnaire from a
Principal(iv) Cases of obtaining Personal Information that aperson wishing to participate in a campaign－22－

Guidelines for Protection of Personal Information

Explanations
sponsored by the company entered on the input
screen of the company’s website to apply for theparticipation(4) Specific examples of “clear indication” method
For example, there are the following methods.
(i) Method of clearly indicating the matter on a
document stating a utilization purpose(ii) Method of clearly indicating the matter byposting posters, etc.
(iii) Method of clearly indicating the matter by
distributing pamphlets or leaflets, etc.
(iv) In the case of Internet transactions, method ofclearly indicating the matter on the input screen
for customers or by e-mail to customers(5) Content of “clear indication,” etc.
(i) The content to be “clearly indicated” is the
purpose of utilizing Personal Information
obtained. “Clear indication” shall be made either
by indicating only the purpose of utilizing
Personal Information stated in the contract orother documents, or by indicating all or part of thecomprehensive utilization purpose specified in
Article 3.
(ii) In the case where the comprehensive utilization
purpose is clearly indicated at the time ofcommencing a transaction, etc., when a purpose ofutilizing Personal Information stated in thecontract or any other documents is within thescope of the comprehensive utilization purposethat has been clearly indicated at the time ofcommencing a transaction, etc., it is not necessary
to clearly indicate a utilization purpose again,
each time the Personal Information in writing is
obtained.
(6) Specific examples of required notification or public
disclosure to a Principal (excluding Cases where
notification is to be given individually before
acquisition)(i) Cases of obtaining Personal Information that has
been voluntarily made public by a Principal on theInternet (excluding cases of merely browsing the
Personal Information)(ii) Cases of obtaining Personal Information fromthe Internet, official gazettes, personnel records,
etc. (excluding cases of merely browsing the
Personal Information)(iii) Cases of receiving a third-party provision of
Personal Information[Reference provisions, etc.]3-2-3 and 3-2-4 of theGeneral Rules GL(7) Notification, public disclosure, and clear indicationof the purpose of utilizing individual number(i) A Full Member must also make notification,
public disclosure, and clear indication of the
purpose of utilizing individual number.
(ii) It is possible that notification, public disclosure,and clear indication of the purpose of utilizing
individual number are made by adding the
purpose to the purpose of utilizing Personal－23－

Guidelines for Protection of Personal Information

3. A Full Member must, in case of altering a utilization
purpose, inform a Principal of, or disclose to the
public, the post-altered utilization purpose.
4. The preceding three paragraphs shall not apply to anyof the following cases.
(1) Cases in which there is a possibility that informing a

Explanations
Information. However, it is not precluded to makenotification, public disclosure, and clear
indication of the purpose of utilizing individual
number separately from the purpose of utilizing
Personal Information.
(iii) When notification, public disclosure, and clear
indication of the purpose of utilizing individual
number is made by adding it to the purpose ofutilizing Personal Information, make sure that
customers can clearly understand that the purposeof utilizing individual number is independent
from the purpose of utilizing other Personal
Information. For example, the following
descriptions are possible.
● Regardless of the above purpose of utilizing
Personal Information, an individual number
shall be used solely for “clerical work forapplication and notification for opening an
account for financial Instruments transaction”
and “clerical work for preparation andsubmission of legal documents related tofinancial instruments transactions.”(iv) In the case of notifying, publicizing, or clearly
showing the purpose of utilizing individual
numbers separately from the purpose of utilizing
Personal Information, it is necessary to clearly
indicate to the customer that the purpose ofutilizing Personal Information has been notified,publicized, or clearly shown separately and thentake care not to make any omission in notifying,publicizing, or clearly showing the respective
utilization purposes. For example, it is possible todescribe the purpose of utilizing individual
number as follows.
● Purpose of utilizing individual number
1) Clerical work for application and notification
for account opening for financial instruments
transactions
2) Clerical work for preparation and submissionof legal documents relating to financial
instruments transactions* Please check the purpose of utilizing Personal
Information other than personal number, which
has been made public on our website, etc.
(v) When entrusting collection of individual
numbers to a Financial Instruments Intermediary
Service Provider, it should be noted that theutilization purpose to be clearly indicated by the
Financial Instruments Intermediary Service
Provider to customers is not the utilization
purpose of the Financial Instruments Intermediary
Service Provider itself but the utilization purpose
stipulated by the entrusting Full Member.
[Reference provisions, etc.]
Article 18, Paragraph 3 of the Protection Act, 3-1-2 ofthe General Rules GL(8) Specific examples of “cases in which there is a－24－

Guidelines for Protection of Personal Information
Principal of, or disclosing to the public, autilization purpose would harm a Principal or third
party’s life, body, property, or other rights andinterests(2) Cases in which there is a possibility that informing a
Principal of, or disclosing to the public, autilization purpose would harm the rights orlegitimate interests of the Full Member(3) Cases in which there is a need to cooperate with acentral government organization or a local
government performing affairs prescribed by laws
and regulations, and when there is a possibility that
informing a Principal of, or disclosing to the
public, a utilization purpose would interfere withthe performance of the said affairs

Explanations
possibility that informing a Principal of, ordisclosing to the public, the utilization purpose
would harm a Principal or third party’s life, body,property or other rights and interests” (Paragraph
4, Item 1)
For example, cases where a provider of
information on an organized crime group,so-called “sokaiya” (corporate racketeer), an
antisocial organization or its members, etc.,
information subject to a report of suspicioustransactions, information on an account used forbank transfer fraud, information on a malicious
person who has interfered with business
operations may cause a third party’s unjustified
resentment[Reference provisions, etc.]
Article 18, Paragraph 4 of the Protection Act, 3-2-5 of
the General Rules GL(9) Specific examples of “cases in which there is apossibility that informing a Principal of, ordisclosing to the public, the utilization purpose
would harm the rights or legitimate interests of theFull Member” (Paragraph 4, Item 2)
For example, the following may fall under thiscategory.
(i) Cases where the revelation that a Full Member
has acquired information on antisocial forces suchas an organized crime group, information subject
to a report of suspicious transactions, information
on an account used for bank transfer fraud,
information on a malicious person who hasinterfered with business operations causes harm to
the Full Member that has received provision of
information(ii) Cases where something related to company
secrets such as the content of development of new
products, etc. conducted by a Full Member andknow-how on sales and marketing is revealed
from notification or a utilization purpose madepublic, causing harm to healthy competition[Reference provisions, etc.]
Article 18, Paragraph 4 of the Protection Act,
3-2-5 of the General Rules GL(10) Specific examples of “cases in which there is aneed to cooperate with a central governmentorganization or a local government performing
affairs prescribed by laws and regulations, andwhen there is a possibility that informing a
Principal of, or disclosing to the public, theutilization purpose would interfere with theperformance of the said affairs” (Paragraph 4,
Item 3)For example, cases of receiving provided
Personal Information on a suspect necessary forcooperation in an investigation from an
investigation agency[Reference provisions, etc.]
Article 18, Paragraph 4 of the Protection Act, 3-2-5 of
the General Rules GL－25－

Guidelines for Protection of Personal Information(4) Cases in which it can be recognized, judging fromthe acquisitional circumstances, that a utilization
purpose is clear

Article 9. Assurance, etc. about the Accuracy ofData Contents
1. A Full Member must endeavor to keep Personal Data
accurate and up-to-date within the necessary scope toachieve the utilization purpose by establishingprocedures for collation and confirmation at the timeof inputting Personal Information into Personal
Information Database, etc., establishing proceduresfor correction, etc. in the event of discovery of errors,
etc., renewing record matters, setting a retention
period, etc.
It should be noted that it is not necessary to update
the Personal Data held in a single uniform way or at
all times, and it is sufficient to ensure accuracy andrecency within the necessary scope in accordancewith the respective utilization purposes.
In addition, a Full Member must endeavor todelete Personal Data without delay when utilizationof the data has become unnecessary, such as cases
where the utilization purpose has been achieved andthere is no longer reasonable reason to hold such
Personal Data in relation to the purpose, and where
the business constituting the premise for the purpose
has been discontinued although the utilization
purpose has not been achieved. However, this shallnot apply to cases where the retention period, etc. is
stipulated by laws and regulations.

Explanations(11) Specific examples of “cases in which it can berecognized, judging from the acquisitional
circumstances, that a utilization purpose is clear”(Paragraph 4, Item 4)
For example, the following may fall under thiscategory.
(i) Cases where information on the address and nameprovided by a requester in connection with adocument request by phone, etc. is used solely forsending the requested document(ii) Cases of acquiring personal names, etc. of therepresentative person, officers, and employees incharge of a corporation through transactions withthe corporation and using such Personal
Information solely for these transactions(iii) Cases of acquiring Personal Information
through exchange of business cards for futurecommunications
When sending direct mails or conducting
solicitation activities, it is considered that theutilization purpose is clearly indicated byconfirming the fact at the time of exchanging
business cards or before sending direct mails.
(iv) Cases of calling back at an incoming numberthat is not anonymous concerning the same matter[Reference provisions, etc.]
Article 18, Paragraph 4 of the Protection Act, 3-2-5 of
the General Rules GL, Article 6 of the Finance Sector
GL(1) Specific examples of methods to “keep Personal
Data accurate and up to date”
Each Full Member shall endeavor to reflect thecontent of notification from customers promptly
and accurately in a Personal Information
Database, etc., and at the same time, makenecessary responses, for example, by thefollowing methods.
(i) Disseminate procedures for notification of changeof names, addresses, etc. of customers on
documents delivered at the time of concluding
contracts, transaction balance reports, etc., andwebsites.
(ii) Inform the customer himself or herself of
information on a customer card, etc. on a regularbasis and request the customer to confirm thecontent thereof.
* It should be noted that individual numbers shall not
be described in any documents, etc. other thanpayment records, etc., because individual
numbers may not be used beyond the scope of theutilization purpose.
(2) “Retention period”
The retention period also applies to permanentstorage with reasonable reason.
* It should be noted that individual numbers may be
stored only if it is necessary to do clerical work
specified in the Numbers Act, and must therefore
be deleted and disposed of as soon as possible－26－

Guidelines for Protection of Personal Information

Article 10. Security Control Action
1. A Full Member must take necessary and appropriate
action, such as establishment of basic policies andhandling rules for security control and developmentof a system for security control measures, for the
security control of Personal Data including
preventing the leakage, loss, or damage of its handled
Personal Data. In addition, necessary and appropriate
action must include “Institutional Security Control
Measures,” “Human Security Control Measures,”and “Technological Security Control Measures” inaccordance with each stage of acquisition, utilizationand preservation, etc. of Personal Data. These actions
shall be those corresponding to risks arising from thescale and nature of the business, the handling statusof Personal Data (including the size and volume of its
handled Personal Data; the same shall apply
hereinafter), the nature of the medium in which
Personal Data is recorded and other factors, inconsideration of the significance of infringement andrights and interests that may be suffered by the
Principal in the event of a leakage, loss, or damage of
Personal Data.
2. The definition of terms in this article is as follows.
(1) Institutional Security Control Measures
This term means measures for systemdevelopment and actions to be taken by Full
Member for security control of Personal Data,such as to clearly determine the responsibility andauthority of each officer and employee (meaning
persons engaging in the business of a Full Member
within its organization under direct or indirectcontrol and supervision of the Full Member, notlimited to employees having an employment
relationship (regular employees, contract
employees, fixed-term employees, part-timers,
and casual staff, etc.), but including those without
an employment relationship with the Full Member(directors, accounting advisors (when an
accounting advisor is a corporation, employees
who are to perform the duties thereof), company
auditors, executive officers, or temporary staff;
the same shall apply hereinafter), establish andimplement rules on security control, and inspect
and audit the implementation status.
(2) Human Security Control Measures
This term means to conclude a non-disclosure
contract with officers and employees and provide
them with education and training, thereby
supervising officers and employees so as to ensure
security control of Personal Data.
(3) Technological Security Control Measures

Explanations
when the retention period set forth in theapplicable laws and regulations expires.
[Reference provisions, etc.]
Article 19 of the Protection Act, 3-3-1 of the General
Rules GL, Article 7 of the Finance Sector GL, Article
20 of the Numbers Act, 3 - (3) of the Numbers Act,
Finance GL(1) A Full Member shall take appropriate measures inaccordance with the size, content of businesses,
etc. of the Full Member based on the Finance
Sector GL and the Finance Sector Practical
Guidelines, in order to prevent leakage, loss, or
damage of Personal Data, and otherwise to ensure
security control of Personal Data.
(2) Specific examples of those corresponding to risks
For example, a list that is available for purchaseby many and unspecified people as needed atbookstores and has not been processed at all by a
Full Member (line markers and sticky notes on thelist does not constitute processing) is considered
to be unlikely to infringe any right or interest of anindividual. Therefore, even if such a list is
disposed of without being processed by adocument shredder or if such a list is collected, thelist will not violate the Full Member’s obligation
to take security control measures.
[Reference provisions, etc.]
Article 20 of the Protection Act, Article 8 of the
Finance Sector GL, Finance Sector Practical
Guidelines, Article 12 of the Numbers Act)

－27－

Guidelines for Protection of Personal Information
This term means technological measuresconcerning security control of Personal Data, suchas to limit access to Personal Data and theinformation system handling such data, and tomonitor that information system.
3. A Full Member must take the following Institutional
Security Control Measures for establishing basic
policies and handling rules for security control of
Personal Data.
(1) Development of rules, etc.
(a) Development of basic policies for security
control of Personal Data(b) Development of handling rules for security
control of Personal Data(c) Development of rules for inspection and auditof the handling status of Personal Data(d) Development of rules for outsourcing(2) Handling rules for safety control at each stage(a) Handling rules at the stage of acquisition andinput of data(a) Handling rules at the stage of use andprocessing of data(a) Handling rules at the stage of preservation andretention of data(d) Handling rules at the stage of transfer andsending of data(e) Handling rules at the stage of deletion anddisposal of data(f) Handling rules at the stage of responding to
information leakage or other incidents
4. A Full Member must take the following Institutional
Security Control Measures, Human Security Control
Measures and Technological Security Control
Measures for developing a system for security
control of Personal Data.
(1) Institutional Security Control Measures(a) Appointment of employees responsible for the
management of Personal Data, etc. (a person
responsible for Personal Data management who
is the overall person in charge of execution ofoperations relating to security control of
Personal Data, persons responsible for Personal
Data management in each division handling
Personal Data)(b) Development of security control actions inrules of employment, etc.
(c) Operation in line with the handling rules forsecurity control of Personal Data(d) Development of means to check the handlingstatus of Personal Data(e) Development and implementation of a system
for inspection and audit of the handling status of
Personal Data(f) Development of a system for responding to
information leakage or other incidents(2) Human Security Control Measures(a) Conclusion of a non-disclosure contract, etc.
concerning Personal Data with officers andemployees

Explanations(3) Specific examples of means to check the handlingstatus of Personal Data(i) As for Personal Data, it is required to put in placea ledger containing the following matters.
(a) Items to be obtained, (b) Utilization purpose,(c) Place of storage, method of storage, andstorage life, (d) Department of administration, (e)Status of access authority(ii) On the other hand, as for specific Personal
Information files, it is required to put in place aledger (not to state any specific Personal
Information) with the following matters serving as
examples.
(a) Type and name of the specific Personal
Information file, (b) Responsible person,
department in charge of handling, (c) Utilization
purpose, (d) Status of deletion and disposal, (e)Person with access rights－28－

Guidelines for Protection of Personal Information(b) Clarification of roles, responsibilities, etc. ofofficers and employees(c) Thorough dissemination of security control
actions to officers and employees and theireducation and training(d) Checking of compliance with predetermined
Personal Data management procedures byofficers and employees(3) Technological Security Control Measures(a) Identification and authentication of Personal
Data users(b) Setting of management categories of Personal
Data and access control(c) Management of authority to access Personal
Data(d) Measures to prevent the leakage, damage, etc.
of Personal Data(e) Recording and analysis of access to Personal
Data(f) Recording and analysis of operation of theinformation systems handling Personal Data(g) Monitoring and audit of the information
system handling Personal Data

Explanations(4) It should be noted that some of Institutional
Security Control Measures and Technological
Security Control Measures are required to be put
in place as “physical security control measures”
under the Numbers Act, Finance GL.
Specifically, the following measures may betaken.
(i) Specific examples of control of areas where
specific Personal Information, etc. is handled(a) In installation sites of a computer system, etc.
storing a specific Personal Information file oran area where the specific Personal Information
file can be taken out by writing it on an external
storage medium, as controlled areas, enteringand leaving management, restriction on devices
brought, installation of surveillance cameras
where needed, and other measures may be
implemented.
(b) Other than the above, in places where specific
Personal Information, etc. is obtained and input
to a computer system, or documents, etc. are
temporarily stored, as handling areas,
installation of walls or partitions, inventions on
seating configuration, and other measures may
be implemented.
(ii) Specific examples of measures to prevent theft,etc. of equipment, electronic media, etc.
In order to prevent theft or loss, etc. ofequipment, electronic media, documents, etc. inareas where specific Personal Information files
are handled, electronic media or documents, etc.
shall be stored in lockable cabinets, folders, etc.,
and equipment shall be fixed using security wires,etc.
(iii) Specific examples of measures to prevent
leakage, etc. in the case of taking out electronic－29－

Guidelines for Protection of Personal Information

Explanations
media, etc.
When electronic media or documents, etc. on
which specific Personal Information, etc. arerecorded are taken out, secure measures shall betaken, including encryption, protection using
passwords, implementation of measures whereindividual numbers are not found out easily due to
use of lockable transport containers, etc., and useof traceable transport means.
(iv) Specific examples of deletion of individual
numbers and disposal of equipment, electronic
media, etc.
When the retention period, etc. set forth in theapplicable laws and regulations, etc. expires,
individual numbers shall be deleted or disposed ofby any means that cannot be restored as promptly
as possible, and the record of such deletion or
disposal shall be kept. In addition, whencommissioning these works, a Full Member shallconfirm with its contractor whether individual
numbers have been surely deleted or disposed ofby means of certificates, etc.
(v) Specific examples of responses to tax inspectionsin and after April 2020
- In and after April 2020, while as part of a tax
investigation using individual numbers, national
tax authorities present reference documents, etc.
containing individual numbers through research
visit, the receipt of such reference documents, etc.
(including copies thereof) shall be handled by the
person managing handling clerical affairs relating
to individual numbers, such as branch manager, or
the person in charge of handling clerical affairs
relating to individual numbers. In addition, theperson managing handling clerical affairs relating
to individual numbers, or the person in charge ofhandling clerical affairs relating to individual
numbers shall forward the inquiry documents, etc.
to a specific controlled area in each company, andshall check such inquiry documents, etc. with its
own customer information and answer the inquiry,
etc. to national tax authorities in the controlled
area.
- When an individual number is stated in an
inquiry document, etc. received throughforwarding from a branch office that received a
research visit or by mail from national tax
authorities, the individual number must be deleted
or disposed of immediately after the utilization
purpose is achieved, regardless of whether theindividual number is for an existing customer ornot.
[Reference provisions, etc.]
Article 20 of the Protection Act, 3-3-2 of the General
Rules, Article 8 of the Finance Sector GL, Finance
Sector Practical Guidelines－30－

Guidelines for Protection of Personal Information
Article 11. Supervision over Officers andEmployees
1. A Full Member must, in having its officers andemployees handle Personal Data, establish an
appropriate internal management system andexercise necessary and appropriate supervision over
the officers and employees so as to seek the security
control of the Personal Data. The supervision shallcorrespond to risks arising from the nature of thebusiness, the handling status of Personal Data andother factors, in consideration of the significance of
infringement of rights and interests that may besuffered by the Principal in the event of a leakage,loss, or damage of Personal Data.
2. A Full Member is to exercise the “necessary andappropriate supervision” over the officers andemployees in the preceding paragraph byestablishing the following systems, etc.
(1) To conclude a contract, etc. upon recruiting an
officer or employee to ensure that the officer or
employee will not disclose to a third party any
Personal Data that the person has come to know inrelation to businesses operated by the Full Member
or use such data for unintended purposes while
being employed and after resigning from the job(2) To clarify the roles and responsibilities of officers
and employees through establishing handling rules
to ensure proper handling of Personal Data, andthoroughly disseminate the obligation to ensure
security control among its officers and employees
and provide them with education and training(3) To develop a system for checking compliance of its
officers and employees with the matters specified
in internal security control rules and inspecting
and auditing their attitudes toward the protectionof Personal Data in order to prevent them fromtaking out any Personal Data.
Article 12. Supervision over Outsourcees
1. When a Full Member outsources the partial or entire
handling of Personal Data (including the entirety ofoutsourcing contracts, irrespective of the form ortype thereof, under which a Full Member has anotherentity carry out the whole or part of the handling of
Personal Data), the Full Member must exercise
necessary and appropriate supervision over the
relevant outsourcee so as to ensure security control of
the outsourced Personal Data. The supervision shallcorrespond to risks arising from the scale and natureof the outsourced business, the handling status of
Personal Data and other factors, in consideration of
the significance of infringement of rights andinterests that may be suffered by the Principal in theevent of a leakage, loss, or damage of Personal Data.
2. A Full Member must select an entity that is found to
be properly handling Personal Data as an outsourcee
and secure measures for security control of Personal
Data also at that outsourcee so that security control
measures are taken for the outsourced Personal Data
(in the case where an outsourcee further outsources

Explanations(1) For the definition of officers and employees in thisarticle, see Article 10, Paragraph 2, Item 1 of the
Guidelines(2) Specific examples of cases where necessary andappropriate supervision has not been exercisedover officers and employees(i) Cases where it is not confirmed that officers andemployees are performing their duties inaccordance with the rules for security control
measures for Personal Data, and as a result,
Personal Data are leaked(ii) Cases where any laptop computer or external
recording medium containing Personal Data has
been repeatedly taken out in violation of internal
rules, etc. of the company, but the act has been
neglected, and as a result, the personal computeror external recording medium is lost and Personal
Data are leaked.
[Reference provisions, etc.]
Article 21 of the Protection Act, 3-3-3 of the General
Rules GL, Article 9 of the Finance Sector GL, Finance
Sector Practical Guidelines, Article 12 of the Numbers
Act(1) Outsourcees include foreign outsourcees.
(2) It should be noted that when clerical affairs relating
to individual numbers are outsourced, the same
control as that of the outsourcer must be required.
(3) In the case of sub-outsourcing and thereafter, it isnecessary to require the equivalent control and toprovide supervision appropriately.
[Reference provisions, etc.]
Article 22 of the Protection Act, Article 10 of the
Finance Sector GL, Finance Sector Practical
Guidelines, Article 11 of the Numbers Act, 2-(1)of the Numbers Act, Finance GL(4) It should be noted that, in the case of
sub-outsourcing of clerical affairs relating toindividual numbers, it is necessary to obtain
permission from the original outsourcer.
[Reference provisions, etc.]
Article 10 of the Numbers Act, 2 - (1) of the
Numbers Act, Finance GL(5) Specific examples of cases where necessary andappropriate supervision has not been exercised－31－

Guidelines for Protection of Personal Information
personal information-related duties, the Full Member
shall also supervise whether the outsourcee
sufficiently supervises the sub-outsourcees).
Specifically, a Full Member must make the following
responses, etc. for example.
(1) Specify the requirements to develop an
organizational system and establish basic policies
and handling rules for security control as thecriteria for selecting outsourcees and review thosecriteria regularly in order to ensure the security
control of the Personal Data.
When selecting an outsourcee, it is desirable
that the Full Member checks the candidate’s
capabilities by visiting the place where Personal
Data is handled, as necessary, or by otherreasonable methods and has its person responsible
for the management of Personal Data make anevaluation of the candidate appropriately.
(2) Incorporate in an outsourcing contract specificsecurity control actions that clarify the authority
on the supervision and audit of and the collectionof reports from the outsourcee, prohibition of theleakage of, stealing and alteration, and theutilization of Personal Data for unintended
purposes by the outsourcee, conditions concerning
sub-outsourcing and the responsibility of theoutsourcee in the event of information leakage,etc., and at the same time, check the outsourcee’s
compliance with the security control actions
incorporated in the outsourcing contract, regularlyor as needed, and review those measures throughconducting audits regularly or taking other actions.
It is desirable that the person responsible for
Personal Data management, etc. review the
security control actions incorporated in theoutsourcing contract and appropriately evaluate
the outsourcee’s compliance therewith.
When an outsourcee intends to outsource therelevant duties to another entity, it is desirable that
the Full Member sufficiently confirms that theoutsourcee appropriately supervises the
sub-outsourcee of this article and that the
sub-outsourcee takes security control actions
based on Article 20 of the Protection Act, as in thecase with the outsourcee, by such means asrequesting the outsourcee to make a report on the
sub-outsourcee, the content of duties to the
sub-outsourced, and sub-outsourcee’s method ofhandling Personal Data in advance and go throughprior approval process or implementing regular
audits by themselves or making the outsourcee doso. The same shall apply to cases of further
sub-outsourcing.
Article 13. Restriction on Third-Party Provision
1. A Full Member must not provide Personal Data to athird party (meaning those who do not fall under anyof the categories of a Full Member attempting toprovide the Personal Data and a Principal relating to
the Personal Data, regardless of whether the party is

Explanations
over those receiving outsourcing contracts(i) Cases where as a result of outsourcing to an
external business operator without understanding
the status of security control actions for Personal
Data at the time of concluding the contract andthereafter, the outsourcee leaks Personal Data(ii) Cases where as a result of giving no instructions
to an outsourcee on the content of necessary
security control actions in relation to handling
Personal Data, the outsourcee leaks Personal Data(iii) Cases where an outsourcer does not give any
instructions to an outsourcee on terms andconditions of sub-outsourcing and failed toconfirm the status of handling Personal Data of
the outsourcee, and the outsourcee sub-outsources
processing of Personal Data, and as a result, thesub-outsourcee leaks Personal Data.
(iv) Cases where an outsourcer has not taken any
necessary measures such as requesting an
outsourcee to make a report on sub-outsourcing,
despite the contract providing for understandingof the implementation status of sub-outsourcing
by the outsourcee, and sub-outsourcing that theoutsourcer does not know is implemented, and as
a result, the sub-outsourcee leaks Personal Data.
[Reference provisions, etc.]
Article 22 of the Protection Act, 3-3-4 of theGeneral Rules GL(1) Matters to be noted in the case of providing
Personal Data
When a Full Member provides Personal Data to athird party, it is necessary to obtain consent fromthe Principal in advance. If a Full Member intends－32－

Guidelines for Protection of Personal Information
an individual, corporation or any other organization;
the same shall apply except for Article 13-2 throughArticle 13-5) without obtaining in advance a
Principal’s consent. In obtaining consent, the Full
Member must clearly indicate the content within areasonable and appropriate scope that is considerednecessary for the Principal to make a judgment on theconsent in accordance with the scale and nature of
the business, the handling status of Personal Data andother factors.
If provision of Personal Information to a third
party is assumed in advance, a Full Member mustspecify the fact in the utilization purpose.
However, in any of the following cases, a
Principal’s consent is unnecessary in the provision of
Personal Data to a third party.

(1) Cases based on laws and regulations

Explanations
to provide Personal Data without obtaining
consent from the Principal, the Full Member shallconfirm whether or not the provision of Personal
Data falls under any of the following and takenecessary actions.
(i) Exclusion from application under laws andregulations, etc. (Paragraph 1, Item 1 through Item
4)(ii) By opt-out (Paragraph 2)* It should be noted that any opt-out is notallowed for Sensitive Information (as defined in
Article 2, Paragraph 1, Item 8 of the
Guidelines).
(iii) Outsourcing (Paragraph 4, Item 1)(iv) Business succession such as merger (Paragraph
4, Item 2)(v) Joint use (Paragraph 4, Item 3)
When obtaining consent for provision of Personal
Data to a third party, consent shall be acquired inwriting in principle, and the consent shall beobtained after having the Principal recognize thethird party to which the Personal Data is provided,
the utilization purpose of the third party receiving
the provided data, and the content of information
to be provided to the third party throughdescriptions in the written document.
(2) Third-party provision of specific Personal
Information
Specific Personal Information may be provided toa third party only in the cases stipulated under the
Numbers Act. Notwithstanding Items 1 through 4
in the left column, a Full Member may provide
specific Personal Information only when apayment record with individual number stated on
it is submitted to the district director of the tax
office.
Also, it should be noted that individual
numbers are not intended for joint use, and such
use is regarded as third-party provision.
[Reference provisions, etc.]
Article 15, Article 19, Article 30, Paragraph 3 of the
Numbers Act, 3 - (2) of the Numbers Act, Finance GL(3) Specific Examples of “cases based on laws andregulations” (Paragraph 1, Item 1)
For example, the following may fall under thiscategory.
(i) Article 74-2 through Article 74-6 of the Act onGeneral Rules for National Taxes (Questioning
and Inspection by Tax Authorities)(ii) Article 1 of the National Tax Violations Control
Act (Voluntary Investigation of Criminal Cases by
Collecting Officials or Tax Collectors)(iii) Article 197 of the Code of Criminal Procedure(Inquiry for Matters Related to Investigation)(iv) Article 8, Paragraph 1 of the Crime Proceeds
Transfer Prevention Act (Notification of
Suspicious Transactions)(v) Article 223 of the Code of Civil Procedure(Order to Submit Documents)－33－

Guidelines for Protection of Personal Information

Explanations(vi) Article 218, Paragraph 1 of the Code of Criminal
Procedure (Seizure, Search, and Inspection by
Warrant)(vii) Article 225 of the Income Tax Act (Payment
Record and Notice of Payment)(viii) Article 72-63 of the Local Tax Act (Right of
Employees of the Ministry of Internal Affairs andCommunications to Ask Questions and Make
Inspection Pertaining to Individual Business Tax);(ix) Article 141 of the National Tax Collection Act(Questioning and Inspection)(x) Article 10-6 of the Act on Special Provisions, etc.
of the Income Tax Act, the Corporation Tax Act,and the Local Tax Act Incidental to Enforcementof Tax Treaties, etc. (Report of AccountInformation Pertaining to Automatic Information
Exchange System based on the Common
Reporting Standards (CRS))(xi) Article 56-2, Article 210 and Article 211 of the
FIEA (Collection and Inspection of Report,
Questioning, Inspection, Retention, etc., Visit,
Search, Seizure, etc.)(xii) Article 78, Paragraph 2, Article 78, Paragraph
6, and Article 78, Paragraph 7 of the FIEA
* Provision of information to self-regulatingorganizations under the FIEA
Cases where a Full Member provides
Personal Information to the Association inorder to carry out the Association’s
self-regulation related services, such asreporting and notification to the Association,
investigation by the Association or complaint
consultation and mediation business by the
Association, etc. under the provisions of the
Articles of Incorporation and other rules of the
Association, which have been established inaccordance with the FIEA, etc.
(xiii) Article 23-2, Paragraph 2 of the Attorney Act(Inquiries from Bar Associations)
For example, cases where it becomes necessary as
evidential material to be submitted to a court, etc.
It should be noted that although the relevantlaws and regulations have a provision stating that athird party may request provision of Personal
Information, when a Full Member is allowed not
to respond to the request for a justifiable reason,
the Full Member shall respond within the scope ofthe necessity and reasonableness of use for any
purpose other than the original intention in light ofthe purport of the relevant laws and regulations.
In this case, for example, as a response when
an inquiry of a bar association is received, if it isdifficult to judge whether the response is within
the scope of the necessity and reasonableness ofproviding Personal Data, it is desirable to obtain
the Principal’s consent.
[Reference provisions, etc.]
Article 23 of the Protection Act, 3-4-1 of the General
Rules GL

－34－

Guidelines for Protection of Personal Information(2) Cases in which there is a need to protect a human
life, body, or property, and when it is difficult toobtain a Principal’s consent(3) Cases in which there is a special need to enhance
public hygiene or promote fostering healthy
children, and when it is difficult to obtain a
Principal’s consent(4) Cases in which there is a need to cooperate with acentral government organization or a local
government, or a person entrusted by them
performing affairs prescribed by laws andregulations, and when there is a possibility thatobtaining a Principal’s consent would interferewith the performance of the said affairs

Explanations(4) Specific examples of “cases in which there is a needto protect a human life, body, or property, andwhen it is difficult to obtain a Principal’s consent”(Paragraph 1, Item 2)
For example, “person” includes “corporation,”and the following may fall under this category.
(i) Cases of providing information on illegal
activities of an organized crime group, so-called“sokaiya” (corporate racketeer), an antisocialorganization or its members, etc., information on
an account used for a bank transfer fraud, andother information(ii) Cases of making inquiries of the police about
customers who are suspected to be antisocial
forces(iii) Cases of providing information to medical
institutions in order to deal with sudden illness ofcustomers, etc.
(iv) Cases of providing information to the police
about a person who persistently and intentionallyinterferes with business(v) Cases of assets disclosure to a family member ofa Principal in the case where the situation in which
the Principal is missing due to an earthquake,disaster, etc. continues[Reference provisions, etc.]
Article 23 of the Protection Act, 3-4-1 of the General
Rules GL
[Reference provisions, etc.]
Article 23 of the Protection Act, 3-4-1 of the General
Rules GL
(5) Specific examples of “cases in which there is a needto cooperate with a central governmentorganization or a local government, or a person
entrusted by them performing affairs prescribedby laws and regulations, and when there is apossibility that obtaining a Principal’s consent
would interfere with the performance of the saidaffairs” (Paragraph 1, Item 4)
For example, the following may fall under thiscategory.
(i) Cases of responding to voluntary investigation
conducted by tax authorities from the perspectiveof achieving appropriate taxation without
exercising individual rights to ask questions andinvestigate.
(Note) A Full Member individually judges
whether or not “there is a need to cooperate.”
However, it is desirable that a Full Member
accepts an “inquiry form for transactions of
securities, etc.” and other documents from tax
authorities, identifies Personal Information
subject to the inquiry, and then provides therelevant information.
(ii) Cases of responding to voluntary investigation
by police(iii) Cases of replying to a general statistical survey
It should be noted that a Full Member shall respond－35－

Guidelines for Protection of Personal Information

2. A Full Member, with regard to Personal Data
provided to a third party (excluding Sensitive
Information; the same shall apply in this paragraph)may, in cases where it is set to cease in response to a
Principal’s request a third-party provision of
Personal Data that can identify the Principal andwhen it has in advance informed a Principal of thosematters set forth in the following or put them into astate where a Principal can easily know, and notified
them to the Personal Information Protection
Commission, provide the said Personal Data to athird party notwithstanding the provisions of thepreceding paragraph.
In addition, a Full Member itself shall also
disclose the content of the notification by using theInternet or other appropriate methods.
Sensitive Information may not be provided to athird party due to an opt-out policy.

(1) To set a third-party provision as a utilization
purpose(2) The categories of Personal Data provided to a third
party(3) Means or method of a third-party provision

Explanations
within the scope of the necessity and reasonablenessof use for any purpose other than the original
intention in light of the purport of the voluntary
request.
[Reference provisions, etc.]
Article 23 of the Protection Act, 3-4-1 of the General
Rules GL
(6) Specific examples of methods to “inform”(Paragraph 2)
For example, there are the following methods.
(i) Notification by directly delivering documents (inprinciple)(ii) Notification given orally or through automatic
answering machine, etc.
(iii) Notification sent by e-mail, facsimile, etc. or
notification by sending a document by mail, etc.
(7) “State where a Principal can easily know”(Paragraph 2)
A “state where a Principal can easily know” meansa condition in which a Principal can easily knowsome information in terms of time and means if heor she tries to know. Therefore, it is necessary for a
Full Member to make continuous publicannouncements in the following manner, forexample, in accordance with the manner of its
business.
(i) Posting or keeping posters, etc. at store counters,
etc. all the time(ii) Continuous distribution of pamphlets and leaflets(iii) Posting on the website all the time
(Note) It is desirable to have multiple means.
(8) Third-party provision of specific Personal
Information
Specific Personal Information may be provided toa third party only in the cases stipulated under the
Numbers Act. Notwithstanding the provisions ofParagraph 2 in the left column, a Full Member
may provide specific Personal Information only
when a payment record with individual number
stated on it is submitted to the district director of
the tax office.
[Reference provisions, etc.]
Article 23 of the Protection Act, 2-10, 3-4-2 of theGeneral Rules GL[Reference provisions, etc.]
Article 23 of the Protection Act, 3-4-2 of the General
Rules GL
[Reference provisions, etc.]
Article 23 of the Protection Act, 3-4-2 of the General
Rules GL
(9) Specific Examples of “means or method of athird-party provision” (Paragraph 2, Item 3)
For example, the following may fall under thiscategory.
(i) Published as a book (including e-book)(ii) Posted on the Internet(iii) Printed out and delivered(iv) Distributed by various communication means(v) Delivered in the form of other external recording－36－

Guidelines for Protection of Personal Information(4) To cease, in response to a Principal’s request, athird-party provision of Personal Data that canidentify the Principal(5) Method of receiving a Principal’s request

3. A Full Member must, in case of altering those mattersset forth in item (2), item (3), or item (5) of thepreceding paragraph, in advance inform a Principalof the contents to be altered or put them into a state
where a Principal can easily know and notify them to
the Personal Information Protection Commission.
In addition, when notifying the contents to bealtered to the Personal Information Protection
Commission pursuant to this paragraph, a Full
Member itself shall also disclose the content.
4. In any of the following cases, a person receiving theprovision of the Personal Data does not fall under athird party.
(1) Cases in which Personal Data is provided as a resultof a Full Member’s outsourcing of the whole orpart of the handling of the Personal Data within thenecessary scope to achieve a utilization purpose.

Explanations
media[Reference provisions, etc.]
Article 23 of the Protection Act, 3-4-2 of the General
Rules GL
[Reference provisions, etc.]
Article 23 of the Protection Act, 3-4-2 of the General
Rules GL
(10) Specific examples of “method of receiving a
Principal’s request” (Paragraph 2, Item 5)(i) By mail(ii) By sending e-mails(iii) Input to a designation form on the webpage(iv) Reception at the counter of business offices(v) Telephone[Reference provisions, etc.]
Article 23 of the Protection Act, 3-4-2 of the General
Rules GL
(11) Specific examples of methods to “inform” and for“a state where a Principal can easily know”(Paragraph 3)
Same as (6) and (7) above[Reference provisions, etc.]
Article 23 of the Protection Act, 2-10, 3-4-2 of theGeneral Rules GL[Reference provisions, etc.]
Article 23 of the Protection Act, 3-4-3 of the General
Rules GL
(12) Specific examples of “cases in which Personal
Data are provided as a result of a Full Member’s
outsourcing of a whole or part of the handling of
the Personal Data within the necessary scope toachieve a utilization purpose” (Paragraph 4, Item1)
For example, the following cases may fallunder this category.
(i) Cases of providing customer data andcommissioning entry work(ii) Cases of providing customer data andcommissioning sending of documents(iii) Outsourcing of clerical work(iv) Outsourcing of storage and disposal of customer
data(Note) Because reasonableness lies in an outsourcee
being treated as being coupled with the Personal
Information Handling Business Operator who isthe providing entity in relation with the Principal
only within the scope of outsourced work, theoutsourcee cannot handle the Personal Data inanything other than the outsourced work.
(Note) It should be noted that a Full Member must
provide necessary and appropriate supervision
over its outsourcees pursuant to Article 12.
[Reference provisions, etc.]
Article 23 of the Protection Act, 3-4-3 of the General－37－

Guidelines for Protection of Personal Information(2) Cases in which Personal Data is provided as a resultof business succession caused by a merger or otherreason (limited to cases where Personal Data isused even after the succession of the businesswithin the scope of the utilization purpose before
the Personal Data is provided due to the businesssuccession)

Explanations
Rules GL
(12-1) Financial Instruments Intermediary Services
The giving and receiving of Personal Dataobtained in connection with the financial
instruments intermediary service between a Full
Member and a Financial Instruments Intermediary
Service Provider can be organized as “method of
obtaining consent of a Principal,” “case ofoutsourcing,” or “case of joint use,” and it isnecessary to take necessary measures according toeach case.
It should be noted that individual numbers cannot
be organized as “method of obtaining consent of a
Principal,” and “case of joint use,” and organized as“case of outsourcing” (financial instrumentsintermediary service is also considered to be a formof outsourcing), and such cases are regarded as
third-party provision.
It should be noted that, even if a Financial
Instruments Intermediary Service Provider does notuse an individual number, when the Financial
Instruments Intermediary Service Provider performs
the business of receiving a document containing an
individual number (including an envelope or the likethat clearly indicates that the document contains an
individual number with a sight of “individual
number related documents are enclosed,” etc. even if
the document is sealed) from customers andtransferring the document to an outsourcing
Association member, this case shall be deemed as
outsourcing under the Numbers Act.
(13) Specific examples of “cases in which Personal
Data are provided as a result of businesssuccession caused by a merger or other reason”(Paragraph 4, Item 2)
In addition to a merger, generally businesssuccession in which Personal Data, such as
customer information, related to the business isgenerally also taken over as a whole, including
business transfer, contribution in kind of businessand company split, etc., fall.
In cases where at the negotiation stage before
entering into a contract for the businesssuccession, a Full Member undergoes
investigation by the other party and provides theother party with its own Personal Data, the Full
Member may provide the Personal Data withoutobtaining consent of the Principal in advance orwithout going through opt-out procedures in thethird-party provision. However, the Full Member
must conclude a contract to have the other party
comply with the security control actions such as
the utilization purpose and handling method for
the Personal Data, measures when a leakage, etc.
occurs, and measures when the negotiation for thebusiness succession breaks down.
[Reference provisions, etc.]
Article 23 of the Protection Act, 3-4-3 of the General
Rules GL

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Guidelines for Protection of Personal Information(3) Cases in which Personal Data to be jointly utilized
by a specified person is provided to the specified
person, and when a Principal has in advance been
informed or a state has been in place where a
Principal can easily know to that effect as well asof the categories of the jointly utilized Personal
Data, the scope of a jointly utilizing person, theutilization purpose of the utilizing person, and thename or appellation of the person responsible forcontrolling the said Personal Data (meaning aperson who primarily accepts and processes
complaints, makes decisions on disclosure,correction, etc. and utilization cease, etc., and has
responsibilities for security control in the jointly
utilizing person; hereinafter referred to as the“Control Manager” in Paragraph 6)

5. Any notification given by a Full Member pursuant to
the provisions of item (3) of the preceding paragraphis to be in writing in principle. With regard to a
notification, etc. concerning “the scope of a jointly
utilizing person,” a Full Member must make efforts
to list jointly utilizing persons individually.

Explanations(14) Specific examples of “joint use” (Paragraph 4,
Item 3)(i) Cases where information is jointly used within thescope of the utilization purpose at the time ofacquisition in order to provide comprehensive
services with group companies(i) Cases where Personal Data is jointly used among
the parent company and fellow subsidiaries within
the scope of the utilization purpose at the time ofacquisition
It should be noted that it is not always
necessary for all the joint users to mutuallyprovide Personal Data subject to the joint use.
However, with regard to joint use, it isnecessary to pay attention to the restriction on
provision of non-disclosure informationprescribed in Article 153, Paragraph 1, Item 7 andArticle 154, Paragraph 1, Item 4 of the Cabinet
Office Order on Financial Instruments Business,
etc. The same shall apply hereinafter.
In addition, when Personal Data that has been
already obtained by a specific business operator isused jointly with other business operators, thePersonal Data must be jointly used within thescope of the utilization purpose specified by thebusiness operator that has already obtained thedata in accordance with the provisions of Article
15, Paragraph 1 of the Protection Act.
[Reference provisions, etc.]
Article 23 of the Protection Act, 3-4-3 of the General
Rules GL
(15) Specific examples of methods to “inform” and for“a state has been in place where a Principal caneasily know” (Paragraph 4, Item 3)
Same as (6) and (7) above[Reference provisions, etc.]
Article 23 of the Protection Act,2-10, 3-4-2 of theGeneral Rules GL(16) It should be noted that individual numbers are notintended for joint use, and such use is limited tocases allowed by laws and regulations.
[Reference provisions, etc.]
Article 30, Paragraph 3 of the Numbers Act, 3-(2) of
the Numbers Act, Finance GL(17) Scope of joint users (Paragraph 5)(i) It is desirable to list joint users individually. In thecase where they are not listed individually, inorder to clarify the extent to which the scope of
jointly using persons from a perspective of a
Principal, such joint users shall be stated as, forexample, “The Company and consolidated
companies and companies accounted for by theequity method described in the securities report,
etc.”(ii) In the case of (i) above, it is possible to indicate
the scope of joint users in an easy-to-understandmanner by, for example, stating names of the joint
users on the website.
(18) When a Full Member implements joint use, from－39－

Guidelines for Protection of Personal Information

6. A Full Member must, in case of altering a utilization
purpose for a utilizing person or the name orappellation of the Control Manager set forth inParagraph 4, item (3), in advance inform a Principalof the contents to be altered or put them into a state
where a Principal can easily know.

Explanations
the viewpoint of clarifying and smoothly
implementing responsibilities, etc. of joint users,
it is desirable to determine in advance thefollowing matters, for example, in addition to
information in the preceding paragraph.
(i) Requirements for joint users (certain frameworks
in implementation of business operations throughjoint use such as being a group company andparticipating in a specific campaign business)(ii) Person responsible for handling Personal
Information, person in charge of inquiries, andcontact information of each joint user(iii) Matters related to handling of Personal Data to
be jointly used(a) Matters related to prevention of leakage, etc.
of Personal Data(b) Prohibition of processing, use, copying,
reproduction, etc. for a purpose other than theoriginal purpose(c) Matters related to return, deletion, and disposalof data after termination of joint use(iv) Measures to be taken when arrangements forhandling Personal Data to be jointly used have notbeen observed(v) Matters related to reports and communications in
the event of an incident or accident involving
Personal Data to be jointly used(vi) Procedures for terminating the joint use[Reference provisions, etc.]
Article 23 of the Protection Act, 3-4-3 of the General
Rules GL
(19) Specific examples of methods to “inform” and for“a state where a Principal can easily know”(Paragraph 6)
Same as (6) and (7) above[Reference provisions, etc.]Article 23 of the Protection
Act, 2-10 and 3-4-2 of the General Rules GL, Article
11, and Article 4 of the Finance Sector GL(20) It is not permitted in principle to change the“categories of the jointly utilized Personal Data”
and the “scope of jointly using persons”; however,in the following cases, for example, these items
may be jointly used after being changed.
(i) Cases where consent of a Principal is obtained inadvance for any category of Personal Data to be
jointly used or change of the business operator(ii) Cases where there is a change in the name of a
jointly using business operator, but there is nochange in the categories of Personal Data to be
jointly used(iii) Cases where business of a jointly using business
operator was succeeded
However, it should be noted that this is based on
the premise that there is no change in the
categories of Personal Data to be jointly used.
[Reference provisions, etc.]
Article 23 of the Protection Act, 3-4-3 of the General
Rules GL

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Guidelines for Protection of Personal Information
Article 13-2. Restriction on Provision to a Third
Party in a Foreign Country
1. A Full Member, except in those cases set forth ineach item of Paragraph 1 of the preceding article,
must, in case of providing Personal Data to a third
party (excluding a person establishing a system
conforming to standards prescribed by the
Enforcement Rules as necessary for continuously
taking action equivalent to the one that a Personal
Information Handling Business Operator shall takeconcerning the handling of Personal Data;
hereinafter the same shall apply in this article) in aforeign country (meaning a country or region locatedoutside the territory of Japan; hereinafter the same
shall apply) (excluding those prescribed in the
Enforcement Rules as a country establishing apersonal information protection system recognized tohave equivalent standards to that in Japan in regard to
the protection of an individual’s rights and interests;
hereinafter the same shall apply in this article and thenext article), in advance obtain a Principal’s consent
to the effect that he or she approves for the provision
to a third party in a foreign country. In this case, theprovisions of the same article shall not apply.

Explanations
With regard to provision of Personal Data to a third
party, when the party is excluded from “foreigncountries” under Article 24 of the Protection Act orwhen the party does not fall under “third parties” under(2) or (3), it is not necessary to obtain “a Principal’s
consent to the effect that he or she approves of theprovision to a third party in a foreign country,” orotherwise, such consent is required.
When the case is regarded as provision of data to athird party in a foreign country, it is necessary to obtaina Principal’s consent to the provision to a third party ina foreign country, unless each item of Article 23,
Paragraph 1 of the Protection Act applies. In otherwords, even in the case of outsourcing, businesssuccession, or joint use (in the cases set forth in therespective items of Article 23, Paragraph 5 of theProtection Act), consent of a Principal is required,unlike provision to a third party in Japan.
(1) “Countries” to be excluded from “foreigncountries”
Under the category of foreign countries that have apersonal information protection related system
which is considered to be at the level equivalent tothat of Japan in protection of rights and interests ofindividuals stipulated in the provisions of Article
24 of the act, countries set forth in the Notificationof the Specific Personal Information Protection
Commission No. 1 of 2019 pursuant to Article 11of the Enforcement Rules (*) falls.
* Countries stipulated in the Agreement on theEuropean Economic Area Agreement as ofFebruary 14, 2020 listed below* If the following countries stipulated in theAgreement on the European Economic Area
Agreement are changed on or after February 14,
2020, prompt response is required.
Iceland, Ireland, Italy, Great Britain, Estonia,
Austria, the Netherlands, Cyprus, Greece,
Croatia, Sweden, Spain, Slovakia, Slovenia, theCzech Republic, Denmark, Germany, Norway,
Hungary, Finland, France, Bulgaria, Belgium,
Poland, Portugal, Malta, Latvia, Lithuania,
Liechtenstein, Romania, and Luxembourg(2) Views of “third party”
In general, a “third party” means any person otherthan a Personal Information Handling Business
Operator providing Personal Data and a Principal
specified by the Personal Data.
[Specific examples](i) When the person providing Personal Data and therecipient are both corporations, they do notconstitute a “third party” if their corporate status is
the same.
- When a Japanese company provides Personal
Data to a local subsidiary of the company, thesubsidiary falls under “third party in a foreigncountry.”- When a Japanese corporation of a－41－

Guidelines for Protection of Personal Information

Explanations
foreign-affiliated company provides Personal
Data to the parent company located abroad, theparent company falls under “third party in aforeign country.”- When a Japanese company provides Personal
Data within the same legal personality such as
its local business offices or branch offices, suchoffices do not fall under “third party in a foreigncountry.”(ii) Even if the recipient of Personal Data is a foreignjuridical person, it shall not be deemed to be a“third party in a foreign country” when it isrecognized that “Personal Information Database,etc.” is used for the purpose of its business inJapan, for example, the case where the foreignjuridical person has established a business officein Japan.
- When a Japanese company’s head office inTokyo provides Personal Data to a Tokyo
branch of a foreign company, the branch shallnot be regarded as a “third party in a foreigncountry.”(3) Those who are excluded from “third parties” as “aperson establishing a system conforming tostandards prescribed by the Enforcement Rules asnecessary for continuously taking action
equivalent to the one that a Personal Information
Handling Business Operator shall take”
With regard to a person establishing a system
conforming to standards prescribed by the
Enforcement Rules as necessary for continuously
taking action equivalent to the one that a Personal
Information Handling Business Operator shalltake, consent of a Principal set forth in this article
is not required for handling of Personal Data.
In cases that fall under (i) or (ii) below, theperson shall be deemed to have established such asystem.
(i) Between a Full Member and the recipient of
Personal Data, the implementation of measures inline with the purport of the provisions of Chapter
4, Section 1 of the Protection Act is ensured byappropriate and reasonable means with regard tohandling of the Personal Data by the recipient of
the provision[Contents to be put in place for “measures in linewith the purport of the provisions of Chapter 4,
Section 1 of the Protection Act”]
Article 15 through Article 35 of the Protection Act(excluding Article 17, Paragraph 2, Article 25,
Article 26, and Article 34 of the Protection Act)[Specific examples of the “international framework”
having the above contents in place (reference)]- OECD Privacy Guidelines- APEC Privacy Framework[“appropriate and reasonable means]“Appropriate and reasonable means” should be
judged on a case-by-case basis, but it is necessary
to be a means whereby a third party in a foreign－42－

Guidelines for Protection of Personal Information

Article 13-3. Keeping, etc. of a Record on a
Third-Party Provision
1. A Full Member must, when having provided personal
data to a third party (excluding a person set forth ineach item of Article 2, Paragraph 5 of the Protection
Act; the same shall apply in this article throughArticle 13-5), keep a record of the date of the
Personal Data provision, the name or appellation of
the third party, and other matters prescribed in the
Enforcement Rules.
However, when providing Personal Data to a third
party in Japan, keeping of records shall be
unnecessary if the case falls under any of items (1)through (7) below.
In addition, in the provision to a third party in aforeign country, keeping of records shall be
unnecessary if the case falls under any of items (1)through (4), or if the third party meets standards
stipulated in the Enforcement Rules and the case falls
under each item of Article 23, Paragraph 5 of theProtection Act.
(1) Cases based on laws and regulations(2) Cases in which there is a need to protect a human
life, body, or property, and when it is difficult toobtain a Principal’s consent(3) Cases in which there is a special need to enhance

Explanations
country to whom Personal Data is provided canassure that the third party continues to takemeasures equivalent to measures to be taken by aJapanese Personal Information Handling Business
Operator. For example, the following cases fallunder this category.
- In the case of outsourcing handling of Personal
Data to a business operator located in a foreigncountry, contracts, confirmations, memoranda,
etc. between the provider and the recipient- In the case of transferring Personal Data within
the same corporate group, internal rules, privacy
policies, etc. applicable to the provider and therecipient(ii) The recipient of Personal Data shall haveobtained a certification based on an internationalframework for handling personal information.
[Specific examples of certification system based on
an international framework]- APEC Cross-Border Privacy Rule (CBPR)
System
In the case where a providing Full Member has
obtained the CBPR certification and therecipient “third party in a foreign country” is aperson handling personal information on behalfof the Full Member, the Full Member’s meeting
requirements for obtaining the CBPR
certification is also construed as one of“appropriate and reasonable means.”[Reference provisions, etc.]
Article 24 of the Protection Act, Article 11, and Article
11-2 of the Enforcement Rules, 3-4-4 of the General
Rules, Foreign GL(1) In this Article, those who fall under the following
categories are excluded from “third party.”(i) National governmental institutions(ii) Local governments(iii) Independent administrative agencies, etc.
(iv) Local incorporated administrative agencies(2) Pursuant to the provisions of Article 23, Paragraph
2 of the Protection Act, when providing Personal
Data to a third party through opt-out, records ofthe following items shall be made.
(i) Date of provision of the Personal Data(ii) Name or appellation of the third party or any
other matters sufficient to specify the third party(if data is provided to many and unspecified
persons, to that effect);(iii) Name of Principals to be identified by the
Personal Data or other matters sufficient to
identify the Principals(iv) Categories of the Personal Data
(3) Pursuant to the provisions of Article 23, Paragraph
1 or Article 24 of the Protection Act, whenproviding Personal Data to a third party, records ofthe following items shall be made (in the case ofobtaining consent of a Principal each time; * Thesame shall apply regardless of whether the third－43－

Guidelines for Protection of Personal Information
public hygiene or promote fostering healthy
children, and when it is difficult to obtain a
Principal’s consent(4) Cases in which there is a need to cooperate with acentral government organization or a local
government, or a person entrusted by them
performing affairs prescribed by laws andregulations, and when there is a possibility thatobtaining a Principal’s consent would interferewith the performance of the said affairs(5) Cases in which Personal Data is provided as a resultof a Full Member’s outsourcing of the whole orpart of the handling of the Personal Data within thenecessary scope to achieve a utilization purpose.
(6) Cases in which Personal Data is provided as a resultof business succession caused by a merger or otherreason.
(7) Cases in which Personal Data to be jointly utilized
by a specified person is provided to the specified
person, and when a Principal has in advance been
informed or a state has been in place where a
Principal can easily know to that effect as well asof the categories of the jointly utilized Personal
Data, the scope of a jointly utilizing person, theutilization purpose of the utilizing person, and thename or appellation of the person responsible forcontrolling the said Personal Data

Explanations
party is in Japan or abroad).
(i) Fact that consent of the Principal set forth in
Article 23, Paragraph 1 or Article 24 of theProtection Act has been obtained(ii) Name or appellation of the third party or any
other matters sufficient to specify the third party(if data is provided to many and unspecified
persons, to that effect);(iii) Name of Principals to be identified by the
Personal Data or other matters sufficient to
identify the Principals(iv) Categories of the Personal Data
(4) In the case where Personal Data was provided to athird party, records shall be made in writing,electromagnetic records, or microfilm.
(5) The record-keeping obligation shall not apply to
any case that is not the provision by a “provider”
substantially. The following cases fall under thiscategory.
(i) Provision by the Principal
Content entered by the poster himself or herself
through SNS, etc.
(ii) Provided on behalf of the Principal(a) Cases where the name, contact information,etc. of a person in charge are provided in
response to a customer’s inquiry about thecontent of transactions by telephone(b) Cases of introducing a customer in a joint
venture among a parent company and its
subsidiaries and where an application for
opening an account, placement of orders has
been made by the customer and the customer
has recognized the content of information to bereceived or provided among the parent
company and its subsidiaries, the recipient of
the data, etc. at the time of the application, andthe provision is considered to be specifically
identified.
(c) Cases of receiving Personal Data provided
from a customer as introduction by his or her
acquaintance(6) The record-keeping obligation shall not apply to
any case that is not the provision to a “recipient”
substantially. The following cases fall under thiscategory.
(i) Cases of providing information to those who arein a relationship that can be assessed to be an
integral part of the Principal, such as the
Principal’s representative, family member, etc.
For example, this means the case where asalesperson of a financial institution explains the
profit and loss situation of financial instruments
held to a customer who comes with his or her
family.
(ii) Cases where with the provider’s intention to
eventually provide information to the Principal,
the information is provided to a third party
through the intervention of the recipient, and thePrincipal can recognize this clearly－44－

Guidelines for Protection of Personal Information

Article 13-4. Confirmation, etc. when Receiving a
Third-Party Provision
1. A Full Member, when receiving the provision of
Personal Data from a third party, confirm the nameor appellation and address of the third party and, for a
corporate body, the name of its representative (fornon-corporate body having appointed a
representative or administrator, the said
representative or administrator), and process ofacquisition of the personal information by the third
party, and keep a record of matters stipulated in
Article 26, Paragraph 3 of the Protection Act, except
in the following cases.
However, the confirmation and record-keeping
obligations shall not apply to any case that is not aprovision by a “provider” substantially.
(1) Cases based on laws and regulations(2) Cases in which there is a need to protect a human
life, body, or property, and when it is difficult toobtain a Principal’s consent(3) Cases in which there is a special need to enhance
public hygiene or promote fostering healthy
children, and when it is difficult to obtain a
Principal’s consent(4) Cases in which there is a need to cooperate with acentral government organization or a local
government, or a person entrusted by them
performing affairs prescribed by laws andregulations, and when there is a possibility that

Explanations(7) Views on the act of “provision”
Published information that can be obtained bymany and unspecified persons is originallyinformation that the recipient can obtain by itself,
and the act of the providers’ intentionallyproviding the information to the recipient meansthat the provider takes care of the obtaining act onbehalf of the recipient. Therefore, this act
substantially does not fall under the category ofthird-party provision for which the confirmation
and record-keeping obligations should be
imposed, and the obligations shall not apply.
For example, information disclosed on a
website, etc., information reported by the media,
and others fall under this category. However,information that can be accessed only by specificpersons, non-public information that can beobtained in business operations of the provider,etc. are excluded.
In addition, the act of making Personal Dataavailable for public must be recorded as theprovider.
* It should be noted that as even so-called public
information falls under the category of “personal
information,” provisions other than theconfirmation and record-keeping obligations shallapply.
[Reference provisions, etc.]
Article 23 and Article 25 of the Protection Act, 2 and 3of the Confirmation and Record-Keeping GL(1) The concept of “third party” in this article is thesame as the concept in Article 13-3.
(2) Concept of “process of acquisition of the Personal
Data by the third party”
When it is suspected that Personal Data to beprovided has not been legally obtained,
confirmation of the process of acquisition of the
Personal Data by the third party is required inorder to prevent the use and distribution of the
Personal Data. For example, this means
confirmation of the content of the following
items.
(i) Type of the obtainer(Principal as a customer, Principal as an
employee, other Personal Information HandlingBusiness Operator, private person such as afamily member, friend, etc., so-called public
information, etc.)(iii) Manner of the obtaining act(Whether it is obtained directly from thePrincipal, whether it is obtained with charge,
whether it is obtained from so-called public
information, whether it is obtained byintroduction, whether it is obtained as a private
person, etc.)
A “letter of consent on information sharing”
accepted from a customer among a parent
company and its subsidiaries can be used

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Guidelines for Protection of Personal Information
obtaining a Principal’s consent would interferewith the performance of the said affairs(5) Cases in which Personal Data is provided as a resultof a Full Member’s outsourcing of the whole orpart of the handling of the Personal Data within thenecessary scope to achieve a utilization purpose.
(6) Cases in which Personal Data is provided as a resultof business succession caused by a merger or otherreason.
(7) Cases in which Personal Data to be jointly utilized
by a specified person is provided to the specified
person, and when a Principal has in advance been
informed or a state has been in place where a
Principal can easily know to that effect as well asof the categories of the jointly utilized Personal
Data, the scope of a jointly utilizing person, theutilization purpose of the utilizing person, and thename or appellation of the person responsible forcontrolling the said Personal Data

Explanations
because it generally shows the process ofacquisition.
(3) When receiving Personal Data provided from athird party, records on the following items shall bemade.
(i) Cases of receiving third-party provision from a
Personal Information Handling Business Operator
through opt-out(a) Date of receiving provision of the Personal
Data(b) Name or appellation and address of the third
party and, for a corporate body, the name of its
representative (for non-corporate body having
appointed a representative or administrator,
the said representative or administrator)(c) Process of acquisition of the Personal Databy the third party(d) Name of Principals to be identified by the
Personal Data or other matters sufficient to
identify the Principals(e) Categories of the Personal Data(f) Fact that the information has been publishedby the Personal Information Protection
Commission(ii) Cases of receiving third-party provision from a
Personal Information Handling Business Operator
each time by consent of the Principal(a) Fact that consent of the Principal set forth in
Article 23, Paragraph 1 or Article 24 of theProtection Act has been obtained(b) Name or appellation and address of the third
party and, for a corporate body, the name of its
representative (for non-corporate body having
appointed a representative or administrator,
the said representative or administrator)(c) Process of acquisition of the Personal Databy the third party(d) Name of Principals to be identified by the
Personal Data or other matters sufficient to
identify the Principals(e) Categories of the Personal Data(iii) Cases of receiving third-party provision from a
private person, etc.
(a) Name or appellation and address of the third
party and, for a corporate body, the name of its
representative (for non-corporate body having
appointed a representative or administrator,
the said representative or administrator)(b) Process of acquisition of the Personal Databy the third party(c) Name of Principals to be identified by the
Personal Data or other matters sufficient to
identify the Principals(d) Categories of the Personal Data
* When the personal data provider is a Personal
Information Handling Business Operator,
confirmation of the process of individualacquisition is not required if it can be confirmedthat the business operator’s internal rules or basic－46－

Guidelines for Protection of Personal Information

Explanations
terms and conditions for customers, etc. stipulatethat Personal Information shall be acquired
appropriately.
(4) With regard to the content in (3) above confirmed
upon receiving Personal Data provided from athird party, records shall be made in writing,electromagnetic records, or microfilm.
(5) The confirmation and record-keeping obligations
shall not apply to any case that is not the provision
by a “provider” substantially. The following cases
fall under this category.
(i) Provision by the Principal
Content entered by the poster himself or herself
through SNS, etc.
(ii) Provided on behalf of the Principal(a) Cases where the name, contact information,etc. of a person in charge are provided in
response to a customer’s inquiry about thecontent of transactions by telephone(b) Cases of introducing a customer in a joint
venture among a parent company and its
subsidiaries and where an application for
opening an account, placement of orders has
been made by the customer and the customer
has recognized the content of information to bereceived or provided among the parent
company and its subsidiaries, the recipient of
the data, etc. at the time of the application, andthe provision is considered to be specifically
identified.
(c) Cases of receiving Personal Data provided
from a customer as introduction by his or her
acquaintance(6) A case that is not the provision to a “recipient”
substantially means the following cases.
(i) Cases of providing information to those who arein a relationship that can be assessed to be an
integral part of the Principal, such as the
Principal’s representative, family member, etc.
For example, this means the case where asalesperson of a financial institution explains the
profit and loss situation of financial instruments
held to a customer who comes with his or her
family.
(ii) Cases where with the provider’s intention to
eventually provide information to the Principal,
the information is provided to a third party
through the intervention of the recipient, and thePrincipal can recognize this clearly(7) Concept of the action of “receiving provision”
Because the confirmation and record-keeping
obligations apply in cases where there is theaction of “receiving Personal Data provided froma third party,” you cannot say that there is theaction of receiving provision in the action of
merely browsing Personal Data, so theconfirmation and record-keeping obligations shallnot apply.
The action of a Personal Information Handling－47－

Guidelines for Protection of Personal Information

Article 13-5. Retention Period for Keeping
Records upon Third-Party Provision
Records made in accordance with Article 13-3 andArticle 13-4 must be kept for the period specified in
the Enforcement Rules from the date of creatingthese records.

Explanations
Business Operator making Personal Dataavailable for use by a third party falls under the
category of the providing action.
In addition, in the case where Personal Data isprovided orally, by facsimile, by e-mail, by
telephone, etc., unilaterally without regard to therecipient’s intention, if the recipient has not taken
any action of “receiving provision,” theconfirmation and record-keeping obligations shallnot apply.
(8) Concept in the case where the confirmation andrecord-keeping obligations shall not apply to therecipient
Even if information falls under the category of
Personal Data to the provider, in the case where
information not falling under the category of“Personal Data,” or even “Personal Information,”to the recipient is received, the confirmation andrecord-keeping obligations shall not apply.
For example, the following cases fall under thiscategory.
(i) Cases of receiving provided data from which it
is impossible to identify an individual bydeleting his or her name etc. by the provider(ii) Cases of receiving data with only ID number
controlled by the provider attached[Reference provisions, etc.]
Article 25 and Article 26 of the Protection Act, 2 and 4of the Record-Keeping GL(1) When Personal Data is provided to a third party,
created records shall be maintained according to
the following cases.
(i) In the case where records are made by means set
forth in Article 12, Paragraph 3 of the
Enforcement Rules, until the day on which one
year has passed since the last provision of
Personal Data pertaining to the records(ii) In the case where records are made by means set
forth in Article 12, Paragraph 2 or Article 16,
Paragraph 2 of the Enforcement Rules, until the
day on which three years have passed since thelast provision of Personal Data pertaining to therecords*When Personal Data of multiple persons areprovided, records of the Personal Data may bemade collectively instead of individually. In thiscase, the retention period shall be calculated foreach individual.
(iii) Three years in cases other than (i) and (ii)(2) In providing Personal Data, it is possible to use logsof the date and time of transmission, thedestination of transmission, etc. as part of records
in this section.
[Reference provisions, etc.]
Article 25 and Article 26 of the Protection Act－48－

Guidelines for Protection of Personal Information
Article 14.
Public Disclosure, etc. on Matters
Relating to Retained Personal Data
1. A Full Member must, concerning its Retained
Personal Data, put the following matters into a state
where a Principal can know (including those cases inwhich it, at the request of a Principal, responds
without delay). When the utilization purpose
includes provision of information to a third party, thefact must be clearly stated as the content in Item (2).

(1) Appellation of the Full Member(2) Utilization purpose of all Retained Personal Data
(excluding those cases falling under Article 8,
Paragraph 4, Item (1) through Item (3))(3) Procedures for responding to a request pursuant to
the provisions of Paragraph 1 of the succeeding
paragraph or a demand pursuant to the provisionsof Article 15, Paragraph 1, Article 16, Paragraph 1,
or Article 17, Paragraph 1 or Paragraph 2(including the amount of a fee when it isprescribed pursuant to the provisions of Article 20)(4) In-house contact point to which a complaint is to be
filed in regard to handling of Retained Personal
Data(5) Appellation of the accredited personal information
protection organization and contact point to which
resolution of its complaint is to be filed
2. A Full Member must, when requested by a Principal
to get informed of a utilization purpose of Retained
Personal Data that can identify the Principal, informthe said Principal thereof without delay. This,
however, shall not apply in those cases falling under
any of the following items.
(1) Cases in which the utilization purpose of Retained

Explanations(1) Specific examples of cases where matters related to
Retained Personal Data are put into a “state wherea Principal can know (including those cases inwhich it, at the request of a Principal, responds
without delay)” (Paragraph 1)
The state means a condition in which a Principal
can know the information if he or she tries to know.
A Full Member needs to take appropriate measures,for example, by the following methods, inaccordance with the manner of its business.
(i) Continuous posting of posters or keeping of
documents the front of the store at stores(Alternatively, there is a means of posting
information together with the Pronouncement
Concerning Protection of Personal Information set
forth in Article 23; the same shall apply
hereinafter).
(ii) Continuous distribution of pamphlets and leaflets(iii) Continuous posting on the website(iv) Delivery of a documents, sending of documents
by mail, facsimile, etc. at the request of the
Principal.
(v) Replying orally or by telephone, e-mail, etc. in
response to the Principal’s request
It is sufficient to inform the subject Principal ofnecessary matters, and it is not necessary to make achange on all the used media at the same time.
[Reference provisions, etc.]
Article 27 of the Protection Act, 3-5-1 of the General
Rules GL
[Reference provisions, etc.]
Article 27 of the Protection Act, 3-5-1 of the General
Rules GL
- When the utilization purpose includes third-party
provision, the fact shall also be clearly presented.
[Reference provisions, etc.]
Article 27 of the Protection Act, 3-5-1 of the General
Rules GL
[Reference provisions, etc.]
Article 27 of the Protection Act, 3-5-1 of the General
Rules GL

[Reference provisions, etc.]
Article 27 of the Protection Act, 3-5-1 of the General
Rules GL
[Reference provisions, etc.]
Article 27 of the Protection Act, 3-5-1 of the General
Rules GL
(2) Specific examples of methods to “inform”(Paragraph 2 and Paragraph 3)
For example, there are the following methods.
(i) Notification by directly delivering documents(ii) Notification given orally or through automatic
answering machine, etc.
(iii) Notification sent by e-mail,facsimile, etc. or－49－

Guidelines for Protection of Personal Information
Personal Data that can identify the said Principal isclear pursuant to the provisions of the preceding
paragraph(2) Cases falling under Article 8, Paragraph 4, Items (1)through Item (3)3. A Full Member must, when having been requested
based on the provisions of the preceding paragraphbut deciding not to inform a Principal of theutilization purpose of Retained Personal Data, informthe Principal to that effect without delay.
Article 15. Disclosure
1. A Full Member must, when having received ademand of disclosing Retained Personal Data that
can identify a Principal (when such data does notexist, including informing a Principal thereof) fromthe Principal, disclose the Retained Personal Data to
the Principal without delay by means of issuing a
document (when there is a method agreed by the
person demanding the disclosure, that method).
However, in cases where disclosing such data falls
under any of the following cases, the whole or part
thereof may not be disclosed.
(1) Cases in which there is a possibility of harming a
Principal or third party’s life, body, property, orother rights and interests(2) Cases in which there is a possibility of interfering
security with the said Full Member implementing
its business properly(3) Cases of violating other laws or regulations

Explanations
notification by sending a document by mail, etc.
[Reference provisions, etc.]
Article 27 of the Protection Act, Article 8 of the
Enforcement Order, 2-10 and 3-5-1 of the General
Rules GL, Article 12 of the Finance Sector GL[Reference provisions, etc.]
Article 27 of the Protection Act, 3-5-1 of the General
Rules GL

(1) Specific examples of a “method agreed by the
person demanding the disclosure” (Paragraph 1)
For example, there are the following methods.
(i) By e-mail, etc.
(ii) By telephone(2) When a demand for disclosing “whether or not there
is any individual number” is made by a Principal, it
is sufficient to disclose the fact of “obtaining
individual numbers.”[Reference provisions, etc.]
Article 28 of the Protection Act, 3-5-2 of the General
Rules GL

(3) Examples falling under cases in which there is apossibility of interfering with the said Full Member
implementing its business properly (Paragraph 1,
Item 2)For example, the following cases may fall under thiscategory.
(i) Cases where a demand for disclosure of
information added by a Full Member, such as
assessment information, is received, or wheredisclosure of Retained Personal Data prevents
proper implementation of transactions withcustomers(ii) Cases where the same Principal repeatedly
demands disclosure of the same content that
requires a complicated response, and the contact
point for inquiries is practically occupied, which
is likely to cause substantial hindrance to business
operations such as interruption of other inquiry
handling operations(iii) Cases where corporate secrets are likely to berevealed(4) Examples not falling under “cases in which there isa possibility of interfering with the said Full
Member implementing its business properly”(Paragraph 1, Item 2)
For example, only the large amount of Retained
Personal Data to be disclosed cannot constitute a
reason for non-disclosure.
[Reference provisions, etc.]
Article 28 of the Protection Act, 3-5-2 of the General
Rules GL
(5) “Cases of violating other laws or regulations”
means, for example, violation of Article 134 of thePenal Code (unlawful disclosure of confidential－50－

Guidelines for Protection of Personal Information

2. A Full Member must, when having decided not todisclose the whole or part of Retained Personal Datain connection with a demand pursuant to theprovisions of the preceding paragraph or when the
Retained Personal Data does not exist, inform a
Principal thereof without delay. The reasons for thedecision shall be explained by showing theprovisions of the law supporting the decision andfacts that are the basis of the decision.

Article 16. Correction, etc.
1. In case of having received a demand made by a
Principal for making a correction, addition, ordeletion (hereinafter referred to as a “Correction,etc.”) of the contents of Retained Personal Data that
can identify the Principal by reason that the data areneither correct nor factual, a Full Member must
conduct a necessary investigation, such asconfirmation of facts, without delay to the extent
necessary to achieve the utilization purpose and,based on the result thereof, make a Correction, etc. of
the contents of the Retained Personal Data in
principle.

2. A Full Member must, when having made a
Correction, etc. on the whole or part of the contentsof the Retained Personal Data in connection with ademand specified in the preceding paragraph or when
having made a decision not to make a Correction,etc., inform a Principal without delay to that effect(including, when having made a Correction, etc., thecontents thereof). If a Full Member does not make a
Correction, etc., the Full Member is to explain thereasons by presenting grounds for the decision not to

Explanations
information) or Article 4 of theTelecommunications Business Act (protection of
secrecy of communications) (Paragraph 1, Item
3).
In addition, if, pursuant to the provisions ofother laws and regulations, Retained Personal
Data that specifies the person is to be disclosed bya method equivalent to the methods set forth in
Article 28, Paragraph 2 of the Protection Act andArticle 9 of the Cabinet Order (when there is amethod agreed by the person demanding thedisclosure, that method), the provisions of Article
28, Paragraph 1 and Paragraph 2 shall not apply,
and the provisions of the other laws andregulations shall apply.
[Reference provisions, etc.]
Article 28 of the Protection Act, 3-5-2 of the General
Rules GL
(6) Specific examples of methods to “inform” and“explain” (Paragraph 2)
For example, there are the following methods.
(i) Notification by directly delivering documents(ii) Notification given orally or through automatic
answering machine, etc.
(iii) Notification sent by e-mail,facsimile, etc. or
notification by sending a document by mail, etc.
[Reference provisions, etc.]
Article 28 of the Protection Act, Article 9 of the
Enforcement Order, 2-10 and 3-5-2 of the General
Rules GL, Article 13 of the Finance Sector GL(1) Correction, etc.
(i) Correction, etc. is to be made within the scopenecessary for achieving the utilization purpose,and any Correction, etc. beyond the necessity
shall not be required.
(ii) Correction, etc. is based on the Protection Act,and shall not apply to notification of change of
name, address, etc. from customers, etc.
(2) When Correction, etc. is not necessary for theutilization purpose or when it is not correct toindicate that the Retained Personal Data iserroneous, Correction, etc. is not necessary. In thiscase, however, it should be noted that it isnecessary to notify the Principal without delaythat any Correction, etc. will not be made.
[Reference provisions, etc.]
Article 29 of the Protection Act, 3-5-3 of the General
Rules GL
(3) Specific examples of methods to “inform” and“explain” (Paragraph 2)
For example, there are the following methods.
(i) Notification by directly delivering documents(ii) Notification given orally or through automatic
answering machine, etc.
(iii) Notification sent by e-mail,facsimile, etc. or
notification by sending a document by mail, etc.
[Reference provisions, etc.]
Article 29 of the Protection Act, 2-10 of the General－51－

Guidelines for Protection of Personal Information
make a Correction, etc. and facts supporting thedecision.
Article 17. Utilization Cease, etc.
1. In case of having received a demand made by a
Principal for a utilization use or deletion (hereinafterreferred to as a “Utilization Cease, etc.”) of Retained
Personal Data that can identify the Principal byreason that the Retained Personal Data has beenhandled in violation of the provisions of Article 5 orhas been acquired in violation of the provisions ofArticle 7 and when it has become clear that there is areason for the demand, a Full Member must fulfill a
Utilization Cease, etc. of the said Retained Personal
Data to the extent necessary to redress a violation
without delay. This, however, shall not apply in casewhere a Utilization Cease, etc. of the said Retained
Personal Data requires a large expense or other cases
where it is difficult to fulfill a Utilization Cease, etc.
and when necessary alternative action is taken toprotect a Principal’s rights and interests.
2. In case of having received a demand made by a
Principal for ceasing a third-party provision of
Retained Personal Data that can identify the Principal
by reason that the Retained Personal Data are being
provided to a third party in violation of the provisionsof Article 13, Paragraph 1 and when it has become
clear that there is a reason in the demand, a Full
Member must cease the third-party provision of the
Retained Personal Data without delay in principle.
This, however, shall not apply in cases where ceasing
the third-party provision of the said Retained
Personal Data requires a large expense or other cases
where it is difficult to cease the third-party provision
and when necessary alternative action is taken toprotect a Principal’s rights and interests.
3. A Full Member must, when having fulfilled autilization cease etc. or decided not to fulfill a
Utilization Cease, etc. of the whole or part of
Retained Personal Data in connection with a demand
pursuant to the provisions of Paragraph 1, or when
having ceased a third-party provision or decided not
to cease a third party provision of the whole of
Retained Personal Data in connection with a demand
pursuant to the provisions of the preceding
paragraph, inform a Principal to that effect(including, when taking a measure that is different
from the action requested by the Principal, thecontents of the measure) without delay.
Article 18. Explanation of Reason
In case of informing a Principal to the effect that, asregards the whole or part of action requested or
demanded by the Principal pursuant to the provisionsof Article 14, Paragraph 3, Article 15, Paragraph 2,
Article 16, Paragraph 2, and Paragraph 3 of thepreceding article, the action will not be taken, or to
the effect that different action from the said action
will be taken, when explaining a reason therefor to
the said Principal, a Full Member is to present
grounds for the decision not to take the action or to

Explanations
Rules GL, Article 14 of the Finance Section GL(1) Even if all of Retained Personal Data are requested
to be deleted, when the violation of the procedures
can be corrected by suspension of use, taking suchmeasures has fulfilled the obligation to do so, and
it is not always necessary to implement therequired measures as they are.
When it is not correct to indicate that theviolation of the procedures is erroneous,utilization suspension, etc. is not necessary.
(2) When it is not correct to indicate that the violationof the procedures is erroneous, it is not necessary
to suspend the third-party provision.
[Reference provisions, etc.]
Article 30 of the Protection Act, 3-5-4 of the General
Rules GL

[Reference provisions, etc.]
Article 30 of the Protection Act, 3-5-4 of the General
Rules GL

(3) Specific examples of methods to “inform”(Paragraph 3)
For example, there are the following methods.
(i) Notification by directly delivering documents(ii) Notification given orally or through automatic
answering machine, etc.
(iii) Notification sent by e-mail,facsimile, etc. or
notification by sending a document by mail, etc.
[Reference provisions, etc.]
Article 30 of the Protection Act, 2-10, 3-5-4 of theGeneral Rules GL○ Specific examples of methods to “inform” and“explain”
For example, there are the following methods.
(i) Notification by directly delivering documents(ii) Notification given orally or through automatic
answering machine, etc.
(iii) Notification sent by e-mail,facsimile, etc. or
notification by sending a document by mail, etc.
[Reference provisions, etc.]
Article 31 of the Protection Act, 2-10 of the General－52－

Guidelines for Protection of Personal Information
take a different action and facts supporting thedecision.

Explanations
Rules GL, 3-5-5, Article 14 of the Finance Sector GL

Article 19. Procedures for Responding to Demand,
etc. for Disclosure, etc.
1. A Full Member may, as regards a request pursuant to
the provisions of Article 14, Paragraph 2 or a demand
pursuant to the provisions of Article 15, Paragraph 1,
Article 16, Paragraph 1, Article 17, Paragraph 1 orParagraph 2 (hereinafter referred to as a “Demand,
etc. for Disclosure, etc.”), decided on a method ofreceiving a request or demand. In this case, a Full
Member is to regularly post that method on its
website together with the Pronouncement
Concerning Protection of Personal Information as
specified in Article 23, or regularly posting or
keeping it at a business office counter, etc.

1. When a Full Member has stipulated a method forreceiving a Demand, etc. for Disclosure, etc., theFull Member shall keep such information available
to a Principal (including cases where the Full
Member answers such a request from a Principal
without delay).
2. A Full Member may request a Principal to present
matters necessary to specify Retained Personal Data(e.g.: address, ID, password, member number, etc.)
for identification of the Principal subject to a
Demand, etc. for Disclosure, etc. in order to facilitateprocedures for disclosure, etc.
[Reference provisions, etc.]
Article 32 of the Protection Act, 3-5-6 of the General
Rules GL, Article 15 of the Finance Sector GL(1) Specific example of “Contact point to which a
Demand, etc. for Disclosure, etc. is to be made”(Paragraph 1, Item 1)
For example, department names, addresses,
telephone numbers, e-mail addresses, etc. of head
offices, branch offices, business offices, businesscenters, and others.
[Reference provisions, etc.]
Article 32 of the Protection Act, 3-5-6 of the General
Rules GL, Article 15 of the Finance Sector GL(2) “Documents to be submitted at the time of a
Demand, etc. for Disclosure, etc.” (Paragraph 1,
Item 2)
It is desirable for a Full Member to determine
documents to be submitted by a Principal at the timeof a Demand, etc. for Disclosure, etc.
(i) For a Principal
For example, an application for disclosure of“Retained Personal Data,” an application forchange, etc., an application for utilizationsuspension, etc., and an identification document(ii) For a representative
For example, in addition to documents in (i)above, a letter of attorney specified by a Full
Member, and an identification document of arepresentative(3) Specific example of “other methods of receiving a
Demand, etc. for Disclosure, etc.” (Paragraph 1,
Item 2)For example, multiple means are possible,
such as visit, mails, and electronic means.
(Note) Because restricting a method of a Demand, etc.
for Disclosure, etc. to visit may “impose excessive
burden on a Principal,” it is desirable to provide analternative method.
[Reference provisions, etc.]
Article 32 of the Protection Act, 3-5-6 of the General
Rules GL, Article 15 of the Finance Sector GL(1) Contact point to which a Demand, etc. forDisclosure, etc. is to be made(2) Form of documents to be submitted at the time of a
Demand, etc. for Disclosure, etc. and othermethods of receiving Demand, etc. for Disclosure,
etc.

－53－

Guidelines for Protection of Personal Information(3) Method of confirming that a person who makes a
Demand, etc. for Disclosure, etc. is the Principal or arepresentative (meaning a legal representative for aminor or adult ward, or a representative entrusted by
the Principal; the same shall apply in this article)(4) Amount of the fee in Article 33, Paragraph 1 of theProtection Act and method for collection thereof(including the case where such a demand, etc. isfree of charge)(5) Matters necessary to identify Retained Personal
Data that are subject to a Demand, etc. forDisclosure, etc.

(6) Method of replying to a Demand, etc. forDisclosure, etc.

Explanations(4) Specific Examples of “Method for identity
verification” (Paragraph 1, Item 3)
Adequate and appropriate identification procedures
shall be established, including identification
procedures based on the provisions of the Crime
Proceeds Transfer Prevention Act or identification
procedures at the same level.
It should be noted that the term “representative”
used herein shall be limited to a representative set
forth in Article 11 of the Enforcement Order, not atransaction representative stipulated in the internal
rules, etc. by each Full Member.
[Reference provisions, etc.]
Article 32 of the Protection Act, 3-5-6 of the General
Rules GL, Article 15 of the Finance Sector GL[Reference provisions, etc.]
Article 32 of the Protection Act, 3-5-6 of the General
Rules GL, Article 15 of the Finance Sector GL(5) Specific examples of “matters necessary to identify
Retained Personal Data” (Paragraph 1, Item 5)
For example, a name, an address, a date of birth, atelephone number, the name of a transaction office,an account number, and the like are possible.
In requesting these matters, it should be noted thatconvenience for a Principal shall be taken into
consideration by providing information contributing
to identification of such Retained Personal Data sothat a Principal can easily and accurately make a
Demand, etc. for Disclosure, etc.
[Reference provisions, etc.]
Article 32 of the Protection Act, 3-5-6 of the General
Rules GL, Article 15 of the Finance Sector GL(6) Specific example of a “method of replying to a
Demand, etc. for Disclosure, etc.” (Paragraph 1,
Item 6)For example, there are the following methods.
(i) By mail, telephone, e-mail, etc.
(ii) Depending on information to be disclosed, areply may not be made on the spot, but later.
When disclosing an individual number in response
to a request from a Principal, it is necessary to takemeasures to prevent others from seeing the scene in
the case of face-to-face contact with a Principal, and
it is desirable to send a document containing theindividual number by mail with a tracking functionin the case of mailing.
[Reference provisions, etc.]
Article 32 of the Protection Act, 3-5-6 of the General
Rules GL, Article 15 of the Finance Sector GL

2. A Full Member shall decide on the following mattersin addition to each item of the preceding paragraph as
the procedures for cases where a representative
makes a Demand, etc. for Disclosure, etc. A Full
Member shall not be precluded from disclosing therelevant personal data directly only to the Principal in
response to a Demand, etc. for Disclosure, etc. madeby a representative.

－54－

Guidelines for Protection of Personal Information(1) Method for identity verification of a representative(2) Method to confirm a representative’s authority ofrepresentation

3. A Full Member must, in establishing a procedure for
Demand, etc. for Disclosure, etc. based on theprovisions of the preceding two paragraphs, giveconsideration so as not to impose excessive burden
on a Principal.
Article 20. Fees
1. A Full Member may, when having been requested to
inform of a utilization purpose pursuant to theprovisions of Article 14, Paragraph 2 or when having
receiving a demand for disclosure pursuant to theprovisions of Article 15, Paragraph 1, collect a fee in
relation to taking such action.
2. A Full Member must, in case of collecting a fee
pursuant to the provisions of the preceding
paragraph, decide on the amount of the fee within arange recognized as reasonable considering actual
expenses.
Article 21. A Full Member’s Dealing with aComplaint
1. A Full Member must strive to deal appropriately andpromptly with a complaint about the handling of
Personal Information.
2. A Full Member must strive to establish the system
necessary to achieve a purpose under the preceding
paragraph through setup of a contact point forreceiving complaints, formulation of procedures for
dealing with complaints, provision of sufficient
education and training to officers and employees
engaging in dealing with complaints, and othermeans.
Article 22. Response to Personal Information
Leakage or Other Incidents
1. In the event of the leakage of any personal
information or the leakage of information concerning
descriptions, etc. and Personal Identification Codes

Explanations(7) Specific example of “method for identity
verification of a representative” (Paragraph 2,
Item 1)
Verification procedures similar to those in (4) above
shall be established.
(8) Specific examples of a “method to confirm a
representative’s authority of representation”(Paragraph 2, Item 2)
For example, there are the following methods.
(i) Except letter of attorney predetermined by the
Full Member, no other means are allowed.
(ii) Even if a letter of attorney, etc. is submitted,
when any special circumstances suggesting theletter of attorney are found, the information shallnot be disclosed until the Principal’s intention to
grant the authority of representation can be
confirmed by telephone, etc.
(ii) When the authority of representation cannot be
confirmed by the method predetermined by the
Full Member, the authority shall not be disclosed.
[Reference provisions, etc.]
Article 32 of the Protection Act, Article 10 of the
Enforcement Order, 3-5-6 of the General Rules GL,
Article 15 of the Finance Sector GL

In determining the amount of the fee within the scope
deemed reasonable in consideration of actual costs, aFull Member is to endeavor to calculate the fee amountreasonably based on the estimated average actual costsof procedures for disclosure, etc. with similar contents.
[Reference provisions, etc.]
Article 33 of the Protection Act, 3-5-7 of the General
Rules GL

[Reference provisions, etc.]
Article 35 of the Protection Act, 3-6 of the General
Rules GL, Article 16 of the Finance Sector GL(1) Personal Information Leakage or Other Incidents
includes accidents due to loss or damage.
(2) In the event of incorrect delivery, incorrecttransmission, etc. of mails, e-mails, facsimile, and－55－

Guidelines for Protection of Personal Information
deleted from personal information used to produce
Anonymously Processed Information andinformation relating to a processing method carriedout pursuant to the provisions of Article 36,
Paragraph 1 of the Protection Act (hereinafterreferred to as “Personal Information Leakage or
Other Incidents”), a Full Member is to immediately
report that incident to the Financial Services Agency
and the Association. If, in addition to Personal
Information Leakage or Other Incidents, leakage of
specific personal information specified in Article 2,
Paragraph 8 of the Act on the Uses of Numbers to
Identify a Specific Individual in Administrative
Procedures (Act No. 27 of 2013) occurs, a Full
Member shall also report the incident to the Personal
Information Protection Commission.
2. In the event of any of Personal Information Leakage
or Other Incidents, a Full Member is to disclose thefacts concerning the incident and preventive
measures to the public without delay from theperspective of preventing secondary damage or theoccurrence of any similar incidents.
3. In the event of any of Personal Information Leakage
or Other Incidents, a Full Member is to promptly
inform the Principal involved in the relevant incidentof the facts concerning the incident.
Article 23. Formulation of the Pronouncement
Concerning Protection of Personal Information
1. In consideration of the significance of explaining
policies related to Personal Information in advance inan easy-to-understand manner, a Full Member is toformulate the pronouncement concerning its ideas
and policies concerning protection of Personal
Information (so-called privacy policy or privacy
statement, etc.; hereinafter referred to as the“Pronouncement Concerning Protection of Personal
Information”) and disclose it to the public.
2. For example, the Pronouncement Concerning
Protection of Personal Information is to include thefollowing matters.
(1) Pronouncement of policies concerning protection of
Personal Information, such as the compliance withrelated laws and regulations, etc., prohibition ofutilization of Personal Information for unintended
purposes and proper processing of complaints(2) Simple explanation of procedures for notificationand public disclosure of the utilization purposes of
personal information under Article 18 of theProtection Act(3) Simple explanation of procedures for disclosure,etc. under Article 27 of the Protection Act or othervarious procedures for handling of Personal
Information(4) Contact information on offices processing inquiries
and complaints concerning handling of Personal
Information
3. A Full Member shall strive to incorporate as many
descriptions as possible in consideration of thefollowing points, depending on the characteristics,

Explanations
others, even if the loss of the content, etc. is minor,
the incident needs to be made public whensecondary damage or similar incidents could
occur.
(3) When leakage, etc. of specific personal information
occurs, it is necessary to make reports, etc. inaccordance with measures to be taken in the eventof leakage, etc. of specific personal information as
stipulated by the Personal Information Protection
Commission and the Financial Services Agency.
[Reference provisions, etc.]
Basic Policy, Article 17 of the Finance Sector GL,
Anonymous Processing GL(1) The title, form, content, composition, etc. of public
disclosure may be at the discretion of each Full
Member.
(2) Specific examples of a method to disclose to the
publicFor example, there are the following methods.
(i) Posting or keeping posters, documents, etc. at thecounter of business offices, etc.
(ii) Description in and distribution of pamphlets(iii) Posting on an online website
Care should be taken to make the disclosed
information easy to see and understand for the users,
and it is also possible to describe it by item
separately in multiple media.
For example, it is possible to add a note to therelevant part of the “Pronouncement Concerning
Protection of Personal Information” that is currently
published, and then provide a link to the website for
specific examples of the type of outsourced works
and sources of acquiring Personal Information to
direct people to the detailed explanation.
[Reference provisions, etc.]
Article 18 and Article 27 of the Protection Act, Basic
Policy, Article 18 of the Finance Sector GL－56－

Guidelines for Protection of Personal Information
scale, and actual status of business activities, fromthe perspective of protecting rights and interests of a
Principal, including general consumers, in the
Pronouncement Concerning Protection of Personal
Information.
(1) When a Principal makes a request, a Full Member is
to suspend sending of direct email or otherwise
voluntarily suspend the utilization of the Retained
Personal Data.
(2) A Full Member is to endeavor to increasetransparency regarding outsourcing, such as
clarifying whether it outsources any business or
the content of outsourced business if any.
(3) A Full Member is to devise means to clarify
utilization purposes for the respective Principal,
through efforts such as presenting limited
utilization purposes separately by the type ofcustomers in consideration of the business
contents or voluntarily endeavoring to limit
utilization purposes based on each choice by a
Principal.

(4) A Full Member is to indicate sources and methodsof acquiring Personal Information (types of
information sources, etc.) as concretely as
possible.

Article 24. Review of the Guidelines
The Guidelines shall be reviewed as necessary.

Explanations(3) Specific examples of “a Full Member is to endeavor
to increase transparency regarding outsourcing,such as clarifying whether it outsources any
business or the content of outsourced business ifany” (Item 2)
For example, if it is difficult to list all outsourced
clerical works due to their large number, it isconsidered that giving examples contributes totransparency regarding outsourcing.
(Example)
The Company outsources a part of our business
operations. In addition, business operations inwhich the Company has outsourcing contractors
handle Personal Information include thefollowing operations.
- Printing or forwarding of documents to be sent
to customers- Provision of professional advice, etc. from thestandpoint of law, accounting, etc.
- Works related to operation and maintenance of
information systems(4) Specific examples of “A Full Member is to indicate
sources and methods of acquiring Personal
Information (types of information sources, etc.) as
concretely as possible.” (Item 4)
For example, when the number of sources or
methods of acquiring Personal Information islarge, showing them an example is considered tocontribute to protection of rights and interests of a
Principal.
(Example)
Sources of acquiring Personal Information to beobtained by the Company are as follows.
- Information directly provided by customers in
an application for opening an account,questionnaires, etc.
- Information contained in commerciallyavailable books such as quarterly corporate
reports and executive officers’ reports andinformation published in newspapers and on theInternet- Information heard from customers through theprovision of goods and services (* If phone calls
are recorded, it is possible to include suchinformation as well)[Reference provisions, etc.]
Article 19 of the Finance Sector GL－57－

Guidelines for Protection of Personal Information
Article 25. Report to the Association, etc.
1. The Association may request a Full Member to makea report where appropriate to confirm the Full
Member’s compliance with the Guidelines.
2. The Association shall provide guidance andrecommendations and take other measures necessary
to have Full Members comply with the Guidelines.
3. A Full Member must comply with the Guidelines andfollow necessary guidance and recommendations
provided, and other measures taken by the
Association.

Explanations[Reference provisions, etc.]
Article 53 of the Protection Act

Supplementary ProvisionThis amendment will come into effect on July 15, 2021.
* Amended sections, etc. are explanations of the following articles, etc.
- Revision: Article 13 (5), Article 13-2 (1), Article 23 (2), Reference provisions, etc.
- Establishment and addition: *1 and* 2 of Article 2 (3), Article 4 (3), proviso to Article 7 (2) and thereafter, and(Note) of (4), Article 8 (7) (v), Article 10 (4) (v), (Note) of (12) and (12-1) of Article 13

－58－

－59－

Guidelines on Investment Restrictions on Derivative Transactions, etc.
Established on December 21, 2007
Revised on September 19, 2008
Revised on December 20, 2012
Revised on July 17, 2014
Revised on November 20, 2014
Revised on July 16, 2015

1. Purpose
The purpose of these Guidelines is to state the basic principles of proper management and operation of a
Member Management Company (meaning a Member that is an Investment Trust Management Company as
defined in Article 2, Paragraph 11 of the Act on Investment Trusts and Investment Corporations (Act No.
198 of 1951); the same shall apply hereafter ) so that such Member does not infringe on the investment
restrictions on Derivative Transactions etc. (hereinafter referred to as the “Derivative Transactions” ) set
forth in Article 130, Paragraph 1, Item 8 of the Cabinet Office Order on Financial Instruments Business (ActNo. 52 of 2007; hereinafter referred to as the “Cabinet Office Ordinance” ) and Article 17 of the Rules on
Management of Investment Trusts, etc.

2. Basic Principle and Treatment
With regard to the method of managing investment pertaining to Derivative Transactions, the Member
Management Company shall provide for risk management method in the internal rules with reference to therisk management method set forth in “3.,” and shall properly manage and perform such investment so as not
to commit the prohibited acts set forth in the Cabinet Office Order.
It should be noted that the risk management methods described in the Guidelines are merely examples anddo not preclude a Member Management Company from prescribing in its internal rules other risk
management measures that such member deems appropriate.

3. Examples of Risk Management Methods(1) In the event that investment is to be made only in real assets such as stocks and bonds and no investment
instructions are to be given for Derivative Transactions, (including cases where investment instructions
are not actually given for Derivative Transactions for the investment trust property for which Derivative
Transactions are available for investment instructions), it is considered that no special management isnecessary.
(2) Where investment instructions for Derivative Transactions are to be given solely for the purpose ofhedging, any one of the following measures in (i) through (iii) can be selected and applied.
(3) Where investment instructions for Derivative Transactions are to be given for other purposes than forhedging (including the case of giving investment instructions for Derivative Transactions for both
hedging purpose and non-hedging purpose in an investment trust), either of the following (ii) or (iii)
may be selected for application.

－1－

(i)

Simple method
Method of management that prevents the notional principal amount of the Derivative
Transactions engaged from exceeding the total net asset value of the concerned investment trust
property(ii) Standard Method
Method of management that controls the risk amount under 80% of the total net asset value of theinvestment trust property. Such risk amount shall be derived from adopting the standard method
for calculating the market risk equivalent among other methods of calculating the market risk
equivalent according to the capital adequacy requirements for Financial Instruments Business
Operators (according to Notification No. 59 of the Financial Services Agency, “Establishment ofStandards for Calculating Market Risk Equivalent, Counterparty Risk Equivalent andFundamental Risk Equivalent concerned with Financial Instruments Business Operators” ).
(Note)‐

Calculation method shall be applied for the entire portfolio, not limited to derivative
products. (The same applies in (iii).)‐

Market risk equivalent shall be calculated by multiplying the exposure value of individual
investment target by ratio set forth in the “Establishment of Standards for Calculating
Market Risk Equivalent, Counterparty Risk Equivalent and Fundamental Risk Equivalentconcerned with Financial Instruments Business Operators.”‐

For derivative products, calculation shall be made by basically converting to the position of
the underlying assets and then multiplying such converted amount by the relevant ratio. In
the event that the position of the derivative product equals the corresponding position of
the underlying asset, such positions may be set off against each other.

(iii) VaR method
Method of management that keeps the risk amount under 80% of the total net asset value of theinvestment trust property. Such risk amount shall be derived from adopting the method for
calculating the market risk equivalent under the internal control model (VaR method) among
other methods of calculating the market risk equivalent according to the capital adequacy
requirements for Financial Instruments Business Operators.
(Note)‐The holding period shall be 10 business days or more in principle. However, if mainly
dealing with those with high liquidity such as listed futures instruments, the holding period
may be five business days or more.

‐

It is essential for the Member Management Company to appropriately manage the situation
at the time of stress. In this case, in addition to the calculation method of applying to theconcerned portfolios the relevant historical data during the stress period after specifying
such period of 12 months that should include the period of stress, it is also consideredappropriate for each Member Management Company to prescribe proper management
practices.
－2－‐

It is essential for the Member Management Company to appropriately manage their risk by
utilizing measures such as back-testing of their risk measurement model. In such a case, in
addition to setting the multiplier at 3 to 4, they may select an appropriate multiplier.

4. Inclusion of investment restrictions on Derivative Transactions in the investment trust contract anddisclosure of risk management measures
With regard to investment trusts for which the basic terms and conditions of the investment trust stipulate that
Derivative Transactions may be made, the management method of Derivative Transactions as set forth in the
Guidelines shall be included in the basic terms and conditions of the investment trust, and published on thewebsite of the investment management company in accordance with the provisions of Article 38 of the Rules
on Investment Reports, etc. Pertaining to Investment Trusts and Investment Corporations.

Supplementary Provision
The Guidelines shall come into effect on December 21, 2007.

Supplementary Provision
The amendments shall come into effect on October 1, 2008.

Supplementary Provision
The amendments shall come into effect on January 4, 2013.

Supplementary Provision
The amendments shall come into effect on December 1, 2014.
* The amended provisions are as follows:(1)

Revisions to the title and Articles 1 and 2 of the Guidelines.

(2)

Revisions to (1) through (3) and establishment of (i), (ii), and (iii) concerned with Article 3.

(3)

Establishment of Article 4.

Supplementary Provision
The amendments shall come into effect on December 1, 2014.
* The amended provisions are as follows:
Revisions to Articles 1 and 2

Supplementary Provision
The amendments shall come into effect on July 16, 2015.
* The amended provisions are as follows:
Revisions to Article 4.

－3－

Guidelines on Investment Restrictions to Avoid Concentration of Credit Risk
Established on July 17, 2014

1. Purpose
The purpose of these Guidelines is to state the basic principle of proper management and operation of a
Member Management Company (Investment Trust Management Company as defined in Article 2,
Paragraph 11 of the Act on Investment Trusts and Investment Corporations: Act No. 198 of 1951; the same
shall apply hereafter ) so that such Member does not infringe on the investment restrictions as provided for in
Article 130, Paragraph 1, Item 8-2 of the Cabinet Office Ordinance on Financial Instruments Business (ActNo. 52 of 2007; hereinafter referred to as the “Cabinet Office Ordinance” ) and Articles 17-2 and 17-3 of theRules on Management of Investment Trusts, etc. (hereinafter referred to as the “Rules” ).

2. Basic Principle and Treatment
With regard to the method of management pertaining to investment restrictions for avoiding concentration of
credit risk, the Member Management Company shall establish internal rules in advance with reference to the
management methods as set forth in “3.” below, and shall appropriately manage and perform their operation
so as not to commit any prohibited acts as provided for in the Cabinet Office Ordinance and the Rules.
In addition, the principle of complying with the Rules and relevant examples are provided in “4.” toserve proper management and operation thereof.
It should be noted that the management methods, etc. described in the Guidelines are merely examples
and shall not preclude a Member Management Company from prescribing in its internal rules othermanagement measures, etc. that are deemed appropriate by such Member.

3. Examples of Management Methods
As the management methods according to Article 17-2, Paragraph 5 of the Rules, the following control flow
may be observed.
(i) Investment Trust Securities that exceed 10% of the total net asset are not incorporated into the relevant
Fund of Funds (including an adjustment to be made to comply with such percentage restriction pursuant to
Article 17-2, Paragraph 1 of the Rules).
(ii) If the provision of (i) above is not satisfied, it shall be ascertained in the investment trust contract of theInvestment Trust Securities that account for more than 10% of the relevant fund’s total net asset, thatinvestment restrictions similar to or stricter than those provided for in Article 17-2, Paragraph 1 of theRules are being applied thereto.
(iii) If the provision of (ii) above is not satisfied, identify an asset mix or the upper limit of its exposure in
relation to the relevant Investment Trust Securities that account for more than 10% of the relevant fund’s
total net asset.
(iv) If the provision of (iii) above is not satisfied, bind the relevant Investment Trust Securities that account－1－

for more than 10% of the relevant fund’s total net asset by the investment guidelines, and oblige them toreport the compliance status thereof.

4. Principles and Examples of Complying with Rules(1) The provisions of Article 17-2, Paragraph 2, Item 1 of the Rules make an exception for so-calledsovereign and quasi-sovereign bonds issued in local currencies or by the countries specified by the
Self-regulation Committee. Furthermore, the Self-regulation Committee specifies and lists the countries
and regions with reference to the Notification No. 59 of the Financial Services Agency, “Establishmentof Standards for Calculating Market Risk Equivalent, Counterparty Risk Equivalent, and Fundamental
Risk Equivalent concerned with Financial Instruments Business Operators,” where risk exposure to thebonds issued or guaranteed by the central government, central bank, local governments, etc.
denominated in other than local currencies, is deemed nil.
(2) Regarding Article 17-2, Paragraph 3 of the Rules, foreign exchange contracts within 120 days shall bedeemed an exception, while latent profit on long-term contracts and over-the-counter derivative
contracts shall be considered to be an exposure.
(3) With regard to Article 17-2, Paragraph 4, Item 1 of the Rules, the issuer exposure shall be added to theactual securities (in case of purchase) in case of “Stock Future Transactions,” while only thecounterparty exposure shall be added in case of “Stock Index Futures Transactions” (nil in the case oflisted future index).
(4) Regarding Article 17-2, Paragraph 4, Item 2 of the Rules, the unencumbered portion of over-the-counter
derivative contracts, is calculated as a counterparty exposure, and in case of market derivatives, thecounterparty exposure is deemed nil.
(5) Regarding Article 17-3, Paragraph 1, Item 2 of the Rules, exposure of an index fund to the shares that do
not constitute the relevant index shall not exceed the prescribed limit, and investment in structured bonds
shall not be an exception.
(6) Article 17-3, Paragraph 1, Item 3 of the Rules requires disclosure when holding in a specific share has ahigh weighting (specialized type).
* Examples of description in the “Purposes and Features of Fund” of a prospectus for delivery where theconcerned fund holds or likely to hold dominant issue(s) in its portfolio weighting.
○ The Fund adopts the XX Stock Index as its benchmark. Since the XX Stock Index has a dominantissue that accounts for, or is likely to account for, more than 10% of the said index, investment insuch dominant issue may occur, and as a result large losses may be incurred in the event ofbankruptcy or deterioration in business operations or financial status concerned with suchdominant issue.
○ The Fund uses a synthetic index as its benchmark that combines a XX index with YY index on an
equal basis and converted into yen. Since this benchmark has a dominant issue which accounts for,or is likely to account for, more than 10% in its contribution to such a synthetic index, investment
may concentrate on such a specific issue, and large losses may be incurred in the event ofbankruptcy or deterioration in business operations or financial status concerned with such－2－

dominant issue.
○ The Fund invests in the shares relevant to XX theme. Since there are dominant issues among theshares relevant to XX theme that may result in individually accounting for more than 10% of theportfolio, investment may be concentrated in such specific issues and large losses may be incurredin the event of bankruptcy or deterioration in business operations or financial status concerned withsuch dominant issues.

* Description examples of limiting holding ratio pursuant to the rules for investment diversification in
investment trust contract.
<Diversified Fund>

Case that conforms to the provisions of Article 17-2, Paragraph 1 of the Rules

The ratios of shares, etc. exposure, bond, etc. exposure, and derivatives, etc. exposure to a single
entity to the total amount of net assets of the Investment Trust property prescribed in the Rules of theInvestment Trusts Association, Japan, are to be, in principle, 10% at maximum respectively, and 20%
at maximum in total. Where such ratio exceeds the above limits, adjustment is to be made so as tokeep such ratio within the limits in accordance with the Rules of the Investment Trusts Association,
Japan.
<Specialized Fund>

Case to which the provisions of Article 17-3, Paragraph 1, Item 3 of the Rules apply

The ratio of exposure to a single entity prescribed in the Rules of the Investment Trusts Association,
Japan, is to be 35% or below. Where such ratio exceeds the above limit, adjustment shall be made so
as to keep such ratio within the limit in accordance with the Rules of the Investment Trusts
Association, Japan.

(7) Article 17-3, Paragraph 1, Item 4 of the Rules defines a fund to which the name of issuer etc. is attached
to its name such as the employee shareholding association fund.
* Examples of fund name that clearly indicate that its exposure to a certain issue is likely to exceed theprescribed limit.
○ XX Stock Fund (XX is a company name and could be multiple companies.)○ Indonesian Government Bond Fund
○ World Bank Bond Fund

(8) In Article 17-3, Paragraph 2 of the Rules, securitization products of the same nature are assumed to befunds that invest in gold price-linked bonds issued by an investment corporation and investment trusts
issuing beneficiary certificates that hold gold as assets.

Supplementary Provisions
The Guidelines shall come into effect on December 1, 2014.
However, this shall not apply to investment trusts in existence at the time when the Guidelines come into effectfor the first five years after the effective date thereof. However, this shall not apply where reasonable measures
as prescribed in Articles 17-2 and 17-3 of the Rules are provided for such investment trusts.
－3－

Approach to the “Rules on Complex Investment Trusts Similar to Over-the-counter
Derivatives Transactions” and “Regulations for Direct Offering, etc. of Beneficiary
Certificates, etc.”
Established on February 17, 2011
Revised on December 13, 2012

Interpretation of the provisions of Article 3, Paragraph 1 of the “Rules on Complex Investment Trusts
Similar to Over-the-counter Derivatives Transactions” and Article 4, Paragraph 2 of the “Regulations for
Direct Offering, etc. of Beneficiary Certificates, etc.”
Q1 It is stipulated that “when soliciting acquisition of beneficiary certificates of new investment trusts
among those established by the Management Company and managed under instructions from thesettlor, the Management Company shall fully understand the characteristics and risks of theinvestment trust and shall not solicit acquisition of those for which a suitable customer to acquire
the investment trust cannot be supposed.” Why such provision was established?

This provision is one of the requirements by the Financial Services Agency in order to strengthen its sales
and solicitation rules by voluntary regulation in the “Ideas for Restrictions on Uninvited Solicitation of
Derivatives Transactions” published by the Agency on September 13, 2010.
In the provision, as part of “practicing the principles of suitability,” it is stipulated that “for complex
structured bonds and investment trusts similar to over-the-counter derivative transactions, which are
difficult for individual customers to understand, the development of voluntary regulations to exercise suchprinciples of suitability is required.” Specifically, they demand “the establishment of standards todetermine whether or not solicitation could be commenced in accordance with the risk characteristics ofproduct and the nature of the customers (Criteria for the Commencement of Solicitation) as well as
conducting prior verification of the product as to its suitability for sale to investors (Suitability on
Reasonable Grounds).”
Behind these requirements are a large number of complaints received by consumer groups, which claimthat certain complex products with risk characteristics similar to derivative transactions have been sold tothe elderly who do not have substantial assets nor seem to have a high level of understanding for suchinvestment, resulting in their unexpected large losses incurred.
This provision is prescribed to put into practice the abovementioned “Suitability on Reasonable
Grounds.” It provides that whenever a Full Member (Management Company) solicits its customers toacquire a beneficiary certificate of a new investment trust, the Full Member shall verify in advance therelevant investment trust to be reasonable as an investment target at least for a certain type of customers andthat any investment trust for which the Full Member cannot think of suitable customers to market based onreasonable grounds shall not be solicited for acquisition.

－1－

Q2 What does the “Suitability on Reasonable Grounds” mean?

Regarding the principle of Suitability, in Article 40 of the Financial Instruments and Exchange Act
provides, it is provided that “investment management company shall not or cause to, fail to protect theirinvestors by conducting solicitation deemed inappropriate in light of such investors’ knowledge,
experiences, financial conditions and objectives of entering into such financial transaction.” In other words,
suitability means the appropriateness of solicitation for each customer.
In contrast, “Suitability on Reasonable Grounds” is a concept to seek confirmation that an investment
trust to be solicited is reasonable at least for a certain type of customers as an investment target. It should be
noted that the term “certain type of customers,” as used herein, means the scope of target customers for the
relevant investment for whom such investment is deemed reasonable in consideration of the attributes,
financial status, investment experiences, risk tolerance, etc. thereof.
To confirm that an investment trust is reasonable for a certain type of customers as an investment target
means, in other words, that the person soliciting such acquisition (Full Member (Management Company))must have a sufficient understanding of the said investment trust. For example, with regard to an investment
trust that is expected to be solicited for acquisition only to a certain type of customers as a result of priorverification, it is necessary to ascertain that appropriate solicitation activities be conducted by sharing theverification results among the departments concerned in accordance with certain internal rules, making thescope of the target customers widely known among the concerned parties, establishing the Criteria for theCommencement of Solicitation, if necessary, providing sufficient employee training, and so on.

Q3 What kind of investment trust does the “beneficiary certificate of new investment trust” mean?
“Beneficiary certificate of new investment trust” shall apply to investment trusts that are to be newly
solicited by the Full Member (Management Company) to their customers for investment after the effective
date of these Regulations.
However, no new verification process shall be required for any investment trust that has been once
verified at each solicitation for acquisition. In addition, with regard to any investment trust that has thesame product nature and risk characteristics as an investment trust that has already been verified,verification can be considered to have been made with the confirmation that such investment trusts are of
the same type. Naturally, in soliciting investment in any of these investment trusts, the Management
Company is expected to conduct their solicitation activities in conformity with the intentions andcircumstances of the investors in light of such investors’ knowledge, experiences, financial conditions, andobjectives of entering into such financial transaction contract.
In addition, among investment trusts that have been solicited to their customers prior to the effective dateof the Regulations, for example, a complex investment trust similar to the over-the-counter derivatives
transactions discussed herein may be examined again if it has not been properly established that the said－2－

investment trust is reasonable for a certain type of customers as an investment target under the existing
internal rules (e.g., the case where target party of the solicitation for acquisition has not been properly
examined).
The Regulations provide for the beneficiary certificates of new investment trusts. However, where it isconsidered that there has been a material change in the risks, etc. (price fluctuation risk, credit risk, liquidity
risk, etc.) of existing investment trusts that have been verified previously (including those that had beensolicited prior to the effective date of the Regulations) as result of sudden change in the investment
environment (e.g., fluctuations of market conditions, system change, increased consultation and complaints,etc.), such investment trusts may be re-examined as appropriate, and consideration may be possibly given
to changes in the target customers for solicitation or suspension of the solicitation for acquisition.
Contents and depth, responsible division, and procedures concerned with the verification must bepractically and appropriately determined in conformity with the actual conditions of each Management
Company and implemented according to the type and risk characteristics of each investment trust.

Q4 What are specifically expected by the text “to verify in advance that the relevant investment trust to
be solicited is reasonable at least for a certain type of customers as an investment target”?

Verification of the same detail is not necessary for all investment trusts, and flexible response is possible forplain products such as a listed share fund. Since the purpose of examining the Suitability on Reasonable
Grounds is to ascertain that the relevant investment fund is reasonable at least for a certain type ofcustomers as an investment target, vanilla funds without complex structure and widely recognized funds insociety require only simplified examination to identify and set the scope of certain type of customers.
On the other hand, for complex investment trusts, etc. similar to over-the-counter derivative transactions,
it will be imperative to perform more detailed examination. The following recommendations indicate theviewpoint from which verification should be performed, and do not require that verification process be
performed in the order of (1), (2), and (3). These verifications may be performed as a single process, or may
be conducted individually by different divisions. In addition, in the event that the solicitation for acquisitionis limited to qualified institutional investors (equivalent to the verification in (2)), the verification in (1)may be simplified or omitted, depending on the subject investment trust and/or the target investors.
(1) Decision on investment trust to be solicited(i) Nature and degree of risk
What kind of risk the customers would suffer and when such risk occurs. Then, it is reasonable toexamine if the size of such risk is acceptable to the customers. First, it is recommended to check
whether or not any investment trust with similar product and risk characteristics has already beenverified. If there does not exist any similar investment trust already verified, then the relevant
investment trust needs to be verified.
Verification shall be made in accordance with the characteristics of a product. Especially for
products with complicated structure, verification may be made carefully by conducting various－3－

simulations, comparisons, and analyses on items including the following. It should be noted that thetypes of risk are not limited to the following examples.
- Price fluctuation risk: Possible impact and its magnitude caused by fluctuations in interest rates,
stock prices, exchange rates, commodity prices, etc.
- Credit risk: Possibility of default of the concerned investment trust and effects on such trust caused bycredit deterioration of the issuer, guarantor, counterparty, underlying assets, etc.
- Liquidity risk: Liquidity of the concerned investment trust and effects on such trust caused by thelack of liquidity of the underlying assets.
(ii) Cost and performance
Verification is required for cost to be paid by the customers. Such cost may include fees, trust fees,
interest rates, etc., but actual amount or rate itself does not represent an issue. It is more important toexamine whether such amount or rate is reasonable and acceptable to the customers in light of the
product characteristics, trade practices, etc. For example, when introducing an investment trust withhigher sales commission and trust fee rates than those of investment trusts currently being offered, it isrecommended to verify the reasonableness of such high rates.
In addition, verification is required to review whether the performance expectation for thecustomers is reasonable according to the product attributes, etc. For example, it is appropriate to verify
whether the performance expectation of an investment trust with complicated structure is reasonable
in comparison with existing products with similar schemes or securities to be invested in. Furthermore,
it is appropriate to investigate whether or not the same level of performance can be obtained with asimpler structure or a lower risk while investing in the same type of asset. In this process, it is also
important to investigate that the expected interest yield, return, etc. are reasonable.
(2) Identification of target investors for solicitation for acquisition(i) Target customers
Based on the results of the verification in (1) above, the existence or non-existence and the scope oftarget customers for solicitation for acquisition will be identified.
As a result, the Full Member shall not engage in solicitation for acquisition of the concerned
investment trust when they are unable to identify suitable target customers thereof.
In addition to the verification performed in compliance with the Regulations, if the Full Member
determines that it is necessary to impose certain restrictions on solicitation activities with respect to an
investment trust, which they market (including setting conditions for the target customers andselection of uninvited customers for the investment), they may clearly state substance of such
restrictions.
(ii) Method of imposing possible restrictions
In addition to the verification performed in compliance with the Regulations, if the Full Member
determines that it is necessary to impose certain restrictions on solicitation activities with respect to an
investment trust, which they market, they need to decide which to apply the “Guidelines for theCommencement of Solicitation” or the “Criteria for the Commencement of Transactions” as a methodof restriction, as well as whether or not to obtain the letter of understanding from the relevant－4－customers.
(3) Method of solicitation for acquisition
Based on the results of the verification described in (1) and (2) above and decision on the format ofsolicitation for acquisition (through public offering or private placement), it is required to examine theappropriateness of the necessary marketing materials such as the prospectus, pre-contract documents,
advertising, etc.
Since it is important for the person who conducts solicitation for acquisition to have a sufficientunderstanding of the relevant investment trust with respect to its suitability on reasonable grounds, notonly appropriateness of the marketing materials but also awareness and understanding of Sales Officers
and Representatives to the effect shall be checked. In particular, regarding investment trusts withcomplex structure, it may be advisable to provide staff education such as in-house training.

Q5 Who should perform the prior verification? Should the Legal department or Compliancedepartments always perform them?

With regard to the decision on the suitability of an investment trust for solicitation for acquisition, theproduct department, which develops and creates such investment trusts, and/or the trading department,
which purchases such products, should be involved in determining the level of risks, etc. Based on suchdecision, it is considered desirable that the Sales management department, the Legal department, and theCompliance department should jointly identify target customers who are suitable for such investment trust.
The legal and compliance check does not always have to be conducted by an independent specialized
unit. For example, when attributes of the investment trust concerned are simple or degree of risk thereof issmall, or when only qualified institutional investors are solicited for acquisition, the manager of the productdepartment may conduct the legal and compliance check.
It is also possible to conduct the verification in committee or another organization in which eachdepartment concerned participates. Including such circumstances, it is indispensable to establish an internal
system for prior verification in advance.

－5－



Interpretation of the provisions of Article 3, Paragraph 2 of the “Rules on Complex Investment Trusts
Similar to Over-the-counter Derivative Transactions” and explanation of “Significant Matters” as set
forth in Article 4, Paragraph 3 of the “Regulations for Direct Offering, etc. of Beneficiary Certificates,
etc.”
Q6-1

What are the “Significant Matters” in connection with the offering or private placement andother business (hereinafter collectively referred to as “Direct Offering, etc.” ) of complex
investment trusts similar to over-the-counter derivative transactions?
In the case of engaging in offering or private placement and other business (“Direct Offering, etc.”) ofcomplex investment trusts similar to over-the-counter derivative transactions for the customers (excluding
professional investors ), the following items are regarded as Significant Matters among others, in addition
to risk, fees, etc. stated in a prospectus.
(i) Estimated losses (provisional estimate) assuming the worst-case scenario regarding the level offinancial indices, etc. relevant to the complex investment trust similar to over-the-counter derivativetransactions.
(ii)

Fact to the effect that in the event that the situation different from the premise assumed in (i) above

occurs, the amount of loss may further increase (including an explanation of such situation ).
(iii) Details of the estimate amount to be received by an investor in case of premature sale (cancellation),including the estimate amount to be received in case of premature sale or cancellation assuming aworst-case scenario in relation to the level of relevant index, etc. and the fact to the effect that theactual amount to be received for such premature sale or cancellation may be less than the estimate
amount provided.
Please refer to “Q6-2” and “Q6-4” for the method of explaining the estimate amount of loss on theassumption of the worst-case scenario mentioned in (i) and amount to be received as result of prematuresales (cancellation) under the assumption of the worst-case scenario mentioned in (iii).

Q6-2

What kind of explanation is necessary for the “estimate loss amount assuming the worst-casescenario (at time of maturity/redemption of contract),” which is a Significant Matter for a complex
investment trust similar to over-the-counter derivative transactions?

It is necessary to explain to the customers in plain language the extent to which losses are possible to be
incurred by such transaction in regard to the “estimate amount of losses based on the worst-case scenario.”
There are two ways to that effect:(Note) This “Q6-2“ explains the estimated loss amount at the time of redemption for an investment trust
similar to over-the-counter derivatives. Please refer to “Q6-4” for the estimated amount of loss
caused by early cancellation or premature sale.

－6－

(i) The extent to which losses are possible to be incurred in light of historical price movements (e.g.,
track records) of the referenced financial indices.
(ii)

The extent to which losses are possibly incurred when the referenced financial indicator falls (orrises) to a certain degree. (Conduct sensitivity analysis by assuming multiple degrees of declines (orrises) of the relevant financial indicator.)
The method described in (i) is referred to as “explanation based on historical data,” while the method
described in (ii) is referred to as “explanation based on loss simulation.” In order to inform the customersof the amount of possible loss under the assumption of the worst-case scenario in an easy-to-understandmanner, it is considered essential to include, in principle, the estimate amount derived from the method
described in (i) in the explanatory materials of the transaction.
However, regarding the method in (i), there may be instances where there are no historical records
available for reference or measurement using historical data is not appropriate in view of the productattributes. See below for the examples of such products. In such circumstance, it may be recommended toinclude the estimate amount derived from the method described in (ii), an explanation as to why theestimate based on method of (i) is not given (or cannot be given) as well as circumstances where themaximum loss may occur.
Even if the estimate derived based on the method (i) is stated, it does not prohibit from including theestimate derived based on the method (ii) in accordance with the attributes of the relevant product.
Moreover, bearing in mind that the estimate based on the method (i) is calculated as per pastexperiences, it is necessary to additionally state that the loss incurred may further increase in an event ofsituation different from the premise, including an explanation as to what such situation may be. The
statement “there is a possibility of further increase in loss in an event of a situation different from thepremise” is required for any investment trust similar to over-the-counter derivative transactions. In
particular, regarding the product for which although there has been no major change in the index in thepast, the potential loss could substantially exceed the figures calculated based on the method (i) in viewof its product attributes, it is advisable to devise an explanation to prevent the customers frommisunderstanding that maximum loss will be only in the scope of the estimates calculated based on themethod (i).
On the other hand, if there is no clear reason not to state the estimate based on the method (i), it isconsidered necessary to include such estimate as well as the estimate based on the method (ii).
In any case, please keep in mind that the contents must be explained to the customers in such a manneras to be easy for them to understand and not to be misleading as to the extent of loss that such transaction
could incur.

<Examples of Products Unsuitable for Measurement by Historical Data>- Products for which the reference financial index has no historical data (If any index shows similar
price movements to the reference index and can be substituted for it, such substitute index shall beapplied for the explanation based on historical data.) [Examples: Products that refer to individual
stocks that have not been listed long enough or newly designed financial index, those with a knock-in－7－

clause but have not reached the knock-in level in the past, etc.]- Products with a variety of reference financial indices for which it is difficult to assume a worst-casescenario based on historical data [Example: Products with reference to a large number of individual
shares, each of which has a knock-in price with varying redemption price subject to the number ofknocked-in shares, etc.]- Product whose price or cash flow will be 100 (par value) but become 0 (nil) if the reference index
reaches a certain prescribed condition where the maximum expected loss is 100%, meaning noresidual value to the product. [Example: Product the redemption price of which is nil if the price of thereference stock at the time of redemption is below a certain level with par value to be reimbursed inany other instance, interest rate swap product with the maximum loss expected when variable interest
rate is 0%, etc.]- Products for which the credit risk of an individual enterprise such as an issuer is used as a reference
financial index or those products for which the credit risk is a sole factor for damaging the redemption
value [Example: Products whose prices fluctuate when a credit event occurs to the reference enterprise,products for which redemption will be made at a par value except when a credit event occurs to theissuer, etc.]- Products referring to financial indices that have been stable over a long period of time [Example:
Products referring to yen interest rates, etc.]* If a Full Member reasonably judges that the estimate based on historical data is possible for any of
those products listed above as examples (including those for which measurement is judged impossibleat the time of redemption but possible in case of premature sale), such measurement shall not be
prevented from being mentioned in the explanatory materials.

Q6-3

What period of time should be referred to when using historical data to estimate the possible

loss? Also, how should I calculate the amount of loss?

No reference period is specified. However, since the purpose of using historical data is to clearly indicate
losses expected under the worst-case scenario, it is desirable that the period of reference should be deemed
reasonable by our Full Member in light of the product attributes and should include a period of time during
which the reference data is judged to have fluctuated significantly. It is not essential to apply all available
historical data of the financial indicator to which the concerned product refers, or to use the same reference
periods of historical data for all when referencing multiple financial indices. However, it should be notedthat these points have to be sufficiently understood by the customers.
The estimate of possible loss may be calculated by the Full Member in a manner that they believe is easy
for their customers to understand and reasonably assume the worst-case scenario. For example, there is acalculation method based on the rate of change between the maximum and minimum values during thereference period, or calculation based on the maximum rate of decline during the relevant number of years－8－

in the reference period according to the term to maturity of the financial product to be sold. However, thelatter method may not be suitable for financial instruments for which the term to maturity (or contract
period) is super long or conversely very short.
Although the same calculation method may not always be applicable to all transactions and products
handled by a Full Member, it should be noted to apply the same calculation method at least to similartransactions or products as far as possible so as not to cause misunderstanding among customers.
The historical data used for calculation must be reviewed on a regular basis.
In the event that the current value of the referenced financial benchmark is significantly different fromthe one presented as the worst-case scenario in the explanatory material, a prompt change of the description
shall be regarded appropriate. Especially when such a situation arises with respect to the products currently
being sold, it is necessary to fully explain the situation to the customers.

Q6-4

What kind of explanation is necessary for “liquidation value to be received for premature sale(cancellation settlement) estimated under the worst-case scenario,” which is a Significant Matterfor complex investment trusts similar to over-the-counter derivatives transactions?
1. With regard to the “Liquidation amount to be received by an investor for premature sale (cancellation
settlement) estimated under the worst-case scenario,” it is also considered necessary, in principle, toprovide an explanation based on the historical data as is the case with the estimate amount of possible
loss assumed on the worst-case scenario.
2. The Japan Securities Dealers Association has the following views on over-the-counter derivativetransactions:
Unlike redemption amount at the time of expiration of contract, the amount to be received by an investor
for premature sale (cancellation settlement) is affected by the presence or absence of a penalty imposed
for such cancellation in relation to over-the-counter derivative transactions and by the liquidity status at
the time of sale and the level of yield over the remaining term in relation to structured bonds. Therefore,
in preparing the relevant explanatory materials, it is essential to clarify the conditions applicable forpremature sales or cancellation including the presence or absence of such penalty, assumed timing of thecancellation, etc. as consideration items. Then, if it is truly difficult to calculate the liquidation value tobe received at the time of early cancellation in relation to over-the-counter derivative transactions andsuch an estimate based on historical data is not or cannot be provided as the supplementary explanation,
the explanation based on loss simulation calculated in the method (ii) may be provided. However, theexplanation based on loss simulation calculated on the method (ii) alone may not be able to adequately
and sufficiently address the estimate of possible loss.
Under such a circumstance, it is also advisable to provide the following explanation instead of the
explanation concerned with method (i) on top of showing the theoretical price level assumed in themethod (ii).
(a) There may be expenses or losses arising as a result of concluding an alternative transaction or a－9－

counter transaction made by a member of the Japan Securities Dealers Association with a third party inconnection with the cancellation of contract; (b) Such expenses or losses shall be borne by the customer
at the time of early cancellation as a part of cancellation settlement (penalty); (c) With respect to suchcancellation settlement (penalty), it is impossible to calculate an estimate; (d) Accordingly, it is difficult
to calculate an estimate of possible loss; (e) The cancellation settlement (penalty) payable by thecustomer may exceed the estimated amount of loss based on the worst-case scenario at the time ofcontract maturity.
3. With regard to complex investment trusts similar to over-the-counter derivative transactions, if it isconsidered truly difficult to adequately and sufficiently explain the liquidation amount to be received byan investor for premature sale (settlement for cancellation) for reasons such as insufficient liquidity ofthe products concerned, as in the case of 2 above, it is also possible to explain that losses exceeding those
calculated on the theoretical price level may be incurred after clearly describing the reason for thedifficulty of calculation together with the theoretical price level assumed in method (ii).

Q7 What are the “Significant Matters” in connection with the Direct Offering, etc. of the leveraged
investment trusts (excluding those listed on the Financial Instruments Exchange Market and thosefalling under 6; the same shall apply in 7. )?

When engaging in Direct Offering, etc. of the leveraged investment trusts to customers (excluding
professional investors ), as is the case with other investment trusts, the objectives, characteristics, risks, fees,
etc. of the fund stipulated in the prospectus shall be explained. Furthermore, it is advisable to explain thefollowing matters specifically.
In giving an explanation, since it is important for the customers to gain sufficient understanding, itshould be contemplated to obtain a confirmation letter of understanding from such customers in order toascertain their understanding.
(i) Since the concerned fund is managed with the aim of achieving a higher return than the referenced
index by a certain margin, in case such index falls, there is a possibility of incurring a larger loss
compared with the index referenced.
(ii) In case when investment trust concerned is a bull or bear fund, the bear fund is managed with the aimof having an opposite investment effect against the referenced index by a certain factor. Accordingly,
if such index rises, the fund has a possibility of incurring a larger loss compared with the index
referenced.
Interpretation of “Criteria for the Commencement of Solicitation” as set forth in Article 4 of the “Rules
on Complex Investment Trusts Similar to Over-the-counter Derivatives Transactions” and Article 6-2 ofthe “Regulations for Direct Offering, etc. of Beneficiary Certificates, etc.”
Q8 Why did the “Criteria for the Commencement of Solicitation” become established?

－10－

“Criteria for the Commencement of Solicitation” are one of the standards required by the Financial Services
Agency to strengthen its sales and solicitation rules by voluntary regulation in the “Ideas for Restrictions on
Uninvited Solicitation of Derivatives Transactions” published by the Agency on September 13, 2010.
In the provision, as part of “practicing the principles of suitability,” it is stipulated that “for complex
structured bonds and investment trusts similar to over-the-counter derivative transactions, which are
difficult for individual customers to understand, the development of voluntary regulations to exercise suchprinciples of suitability is required.” Specifically, they demand “the establishment of standards todetermine whether or not solicitation could be commenced in accordance with the risk characteristics ofproduct and the nature of the customers (Criteria for the Commencement of Solicitation) as well as
conducting prior verification of the product as to its suitability for sale to investors (Suitability on
Reasonable Grounds).”
The reason why the “Criteria for the Commencement of Solicitation” are required is a large number ofcomplaints received by consumer groups, which claim that certain complex products with risk
characteristics similar to derivative transactions have been sold to the elderly who do not have substantial
assets nor seem to have a high level of understanding for such investment, resulting in unexpected large
losses incurred.
It can be said that the substance of such complaints varies from one to another, but the fact that suchcomplaints have arisen in large numbers is not a desirable situation in terms of fostering, maintaining, andimproving the relationship of trust between investors and Full Members (Management Companies).
The purpose of the “Criteria for the Commencement of Solicitation” set forth in the rules of thisAssociation is not only to put into practice the requirements by the Financial Services Agency that thestandards for conducting solicitation in accordance with the risk characteristics of products and nature ofcustomers (Criteria for the Commencement of Solicitation) should be established, but also to prevent Full
Members (Management Companies) from engaging in solicitation activities for investments that are highly
likely to create such complaints through self-regulating the scope of target customers.

Q9 Is the “Criteria for the Commencement of Solicitation” different from the “Criteria for theCommencement of Transactions”? If so, what is the difference?
As set forth in Article 4 of the “Rules on Complex Investment Trusts Similar to Over-the-counter
Derivatives Transactions” and Article 6-2 of the “Regulations for Direct Offering, etc. of Beneficiary
Certificates, etc.,” the “Criteria for the Commencement of Solicitation” shall establish the scope ofcustomers for whom investment solicitation by visit, telephone call, or at the branch counter is allowed
among those customers who have not asked for solicitation for the concerned investment. Accordingly, nosolicitation shall be made to customers who do not meet the Criteria, whether or not such solicitation will
result in the conclusion of a contract.
The term “solicitation,” as used herein, means, as provided for in Article 4 of the “Rules on Complex
Investment Trusts Similar to Over-the-counter Derivatives Transactions” and Article 6-2 of the－11－

“Regulations for Direct Offering, etc. of Beneficiary Certificates, etc.,” any solicitation for acquisition
made to a customer who has not requested such solicitation for acquisition for the concerned investment byvisit or telephone or at the head office or any business office of a Full Member (Management Company).
Herein, the scope of customers is limited to individual investors excluding professional investors.
Restrictions on uninvited solicitation provided for in Article 38, Paragraph 4 of the Financial Instruments
and Exchange Act are only concerned for visits or telephone calls. However, it should be noted that theCriteria apply to a customer who visits a branch of the Full Member for the purpose of consultation orpurchase of a different product because it is necessary to pay sufficient attention to the suitability, etc. of thecustomer when making solicitation for another product not contemplated by such customer.

Q10 What kind of standards do the “Criteria for the Commencement of Solicitation” are supposed toestablish? Should specific numerical criteria be established?
“Criteria for the Commencement of Solicitation” must be determined in accordance with the risk
characteristics of the product and the nature of the customer. In consideration of the principles of suitability
and recent examples of trouble, it is advisable to prepare solicitation standards based on the following
prerequisites:

1. Age and trading experience of investor
Since investment trusts subject to the establishment of the “Criteria for the Commencement of
Solicitation” are complex products with risk characteristics similar to those of derivative transactions, it
is natural that such investment trusts are intended for customers with a certain level of understanding
and judgment. Therefore, it is reasonable to set standards based on the age and investment experience ofan investor.
It is generally considered that as one ages, one’s ability to understand and make decisions declines,
and in view of the fact that recent news reports have indicated that elderly people living alone or theelderly with dementia are suffering from property damage one after another, it is considered to beeffective to develop standards with due consideration to one’s age, such as obliging more careful
application of such standards to the elderly.
Of course, it does not mean everyone over a certain age has a lack of, or a low level of, understanding,and it depends on an individual. Therefore, when developing standards based on the customers’ age, it
is conceivable to establish such standards taking into account not only their specific age but also theirtrading experience, financial status, etc., in addition to requiring an interview with the customers
themselves or their family members to ascertain their level of understanding prior to any solicitation
concerned with customers older than the specific age.
With regard to trading experience, for example, it is conceivable to require as criteria that the relevant
customer has conducted similar transactions in the past. However, it does not necessarily indicate thatsolicitation must be prohibited for any customer without similar experience in the past. Because trading－12－

experience is regarded as a part of basis for measuring their level of comprehension and judgment, it isalso reasonable to require as condition having an interview with the relevant customer so as to ascertain
their level of understanding.
Furthermore, as trading experience will change with time, it is necessary for each Full Member tomake a judgment based on information obtained during the period of time considered reasonable rather
than making a mechanical judgment based on information on the customer card created at the time ofaccount opening many years ago.
2. Financial status of investor (Major form of income and holding status of financial assets)
Investment solicitation subject to the establishment of the “Criteria for the Commencement of
Solicitation” would be suitable only for investors with a certain amount of income or financial assets.
For example, products with a high level of minimum investment amount or with low liquidity should besold only to customers with a certain degree of financial resources such as financial assets, etc.
Financial status of a customer may be measured by the total financial assets and revenues of thecustomer rather than by the assets held in custody of the Full Member. However, since these are
difficult to measure accurately, it is necessary to take care not to overestimate them.
3. Investment objectives and policy of investor
In most cases, solicitation for acquisition subject to the establishment of the “Criteria for theCommencement of Solicitation” is not considered to be suitable for a customer whose investment
objective is to secure the safety of principal or a customer who is investing from the fund for futureliving.
Moreover, even for speculative purposes, each investor is likely to have a difference tolerance level
for risk. Consequently, it is appropriate to develop the criteria in consideration of the tolerance level forrisk.
As investment objectives and policy are also likely to change with time, it is imperative to pay
sufficient attention to the changing objectives and policy of existing customers as well. It should also be
noted that investment objectives and policy of an investor may vary subject to the nature of theinvestment fund.
4. Others
In addition to the listed above, it is reasonable to include into the criteria matters which a Full Member(Management Company) considers appropriate in consideration of risk characteristics of the product,such as prior interview with the relevant customer.

Any standard that is not sufficiently specific, or which can be met by every customer, will be contrary to theintent of the establishment of the “Criteria for the Commencement of Solicitation.” Consequently, it isessential to make them effective.

－13－

Q11 Should the “Criteria for the Commencement of Solicitation” be established for each transaction oreach product? Can it be established comprehensively?

There are many types of complex investment trusts similar to over-the-counter derivative transactions thatare subject to the establishment of the “Criteria for the Commencement of Solicitation” in their productattributes and risk profile. However, given the possibility that the establishment of detailed standards foreach investment trust may lead to operational difficulty and loss of effectiveness, this does not preclude thepossibility of grading investment trusts into different groups dependent on their risk characteristics and thendeveloping separate standards per risk grade group for the management of target customers per investment
solicitation in accordance with the internal procedures. Under such circumstance, it is possible to establish
in advance multiple types of the Criteria for the Commencement of Solicitation subject to the degree of risk
characteristics, etc. of product and identify an appropriate type of the Criteria whenever handling a new
product.
It is considered desirable for Full Members (Management Companies) to establish effective standards
from the viewpoint of investor protection in accordance with the product attributes and risk profile of aninvestment trust to be solicited for acquisition.

Q12 What sort of system is required to confirm that the Criteria for the Commencement of Solicitation issatisfied?
The probable items to be provided for in the “Criteria for the Commencement of Solicitation” are expected
to include those which cannot be measured by numerical values only as discussed in Q10 and those which
may change constantly. In consideration of these points, it is appropriate that, with regard to items related toa customer’s capability to understand complex structure that cannot be measured by numerical values alone,a relevant manager (who is practically in charge of managing Sales Officers and Representatives and may
belong to either the sales department or the internal control department) shall confirm or approve whether
or not the concerned customer satisfies the Criteria for the Commencement of Solicitation by conducting ahearing from the responsible Sales Officers and Representatives regarding such customer’s latest
conditions or conducting a direct interview with such customer, if appropriate.
In addition, where the relevant managers are obligated to check themselves any item established, which
is difficult to confirm due to a lack of numerical criterion, it is considered appropriate to establish a control
system in accordance with the business method and system environment of a Full Member (Management
Company) so that such confirmation process can be verified later.

Q13 How often should the Criteria for the Commencement of Solicitation be applied?

It will be desirable to apply the Criteria for the Commencement of Solicitation to check whether or not the－14－

customer satisfies such Criteria at each solicitation for acquisition based on the information available at thetime of such solicitation. Meanwhile, in the event that the Full Member has already confirmed that thecustomer meets the Criteria for the Commencement of Solicitation for a certain range of transactions andhas been recognized as such customer who can be solicited after having obtained confirmation and approval
from the relevant managers, while continuously being engaged in transactions with the company thereafter,
the company may not have to go through the same procedures for each solicitation to satisfy the Criteria.
However, in case of the elderly people, their understanding and judgment may deteriorate as they age,and their investment objectives and policy may also change in some cases. Therefore, it is considered
important to periodically review customers’ suitability for solicitation.
In the event that there is a substantial change in the situation of a customer who is classified to be suitable
for solicitation after having started solicitation for a product, it is necessary to examine whether or not suchcustomer should continue to be treated as a suitable customer in accordance with the internal procedures
established before continuing the soliciting activities for the said investment. If, as a result of such review,
it is determined based on new facts that the customer concerned doesn’t satisfy the Criteria for theCommencement of Solicitation anymore, it is appropriate to recognize such customer not suitable forsolicitation and record the result as such.
Interpretation of the provisions of Article 5 of the “Rules on Complex Investment Trusts Similar toOver-the-counter Derivatives Transactions”
Q14 What is an “Alert Document”?

The purpose of the Alert Document is to enable customers to clearly and concisely understand whether or
not the transaction to be solicited is subject to the restrictions on uninvited solicitation with higher risk
compared with general transactions. Specifically, the Management Company will deliver and explain the
document that includes (i) warning regarding risk and (ii) the availability of financial ADR institutions forfiling complaint and dispute resolution together with their contact information.

Q15 Is the format of the “Alert Document” fixed?

Although the format to be used has not been fixed, please use the example format of Alert Document that is
prepared as reference.

Q16 Is it possible to change the example format of the “Alert Document”?

Although it is not always necessary to follow the example format with regard to the expression, font size,
character type, use of underlines, etc., in consideration of the purpose of such document as warning, it isrecommended any Alert Document is prepared with reference to the example provided.
－15－

Please clearly and accurately describe those items to be included in the Alert Document as listed in (i)and (ii) in the answer to Q14.

Q17 At what timing should the “Alert Document” be delivered?

Basically, such document must be delivered to the customer before the conclusion of a contract.
Therefore, it may be delivered at latest at the same time of delivering the pre-contract documents andprospectus. Please refer to Q18 and Q19 for the method of delivery.

Q18 Is it possible to deliver the Alert Document at the same time or being combined with the
pre-contract documents and prospectus?

Since the purpose of the Alert Document is for the customers to understand its content in an easy andconcise manner, it is basically assumed that to be delivered as a single independent document.
However, it is not to prohibit delivering such warning together with the pre-contract documents andprospectus (including delivery by mail, etc. ). In such case, it is desirable that such an Alert Document beplaced on top of the pre-contract documents and prospectus.
Although it is possible to deliver the Alert Document simultaneously with the pre-contract documents
and/or prospectus in order to prevent any omission in delivering such Warnings, in such a case, it isindispensable to devise ways to ensure that the Warnings is read, by placing it on top of the pre-contract
documents or inserting such an Alert Document between the first pages of the prospectus.
Thus, when delivering the Alert Document at the same time as other documents, it is recommended to
pay attention to the delivery method so as to avoid the situation where such document is not recognized orread by the customer, being lost among other documents.

Q19 Is it possible to deliver the “Alert Document” by electromagnetic means?
Alert Document may be delivered electronically as provided in Article 7 of the “Rules on Complex
Investment Trusts Similar to Over-the-counter Derivatives Transactions.” However, in such a case, it isimperative to devise ways to ensure that the Alert Document is read. For example, when registering a PDF
file or displaying a link to such document, it is necessary to combine the files into one file or to set a button
to confirm that the user has inspected the concerned document. When delivering the document byelectromagnetic means and concluding the transaction by telephone or visit, it is reasonable to obtain oral
confirmation from the customer at such occasion of verbal communication.
As for the contact information of ADR agencies, it should be presented in a manner that is easy for thecustomers to immediately find them when needed. For example, in addition to posting the contact
information of the ADR agencies in an easy-to-find place on the home page of a Full Member (such as a site－16－

where various policies obligated to be published under laws and various contact information for complaints
are posted), the text that “contact information of the ADR agencies is also posted in xx (site address)” canbe included in the Alert Document to be displayed on the trading site of company’s website so as to serve
customers’ convenience.
OthersQ20 With regard to “complex investment trusts similar to over-the-counter derivatives” and “leveraged
investment trusts,” should the investment trust management company inform the distribution
companies selling such investment trusts of such facts?

In order not to create problems with handling of the relevant investment trust when distributed by multiple
companies, it is desirable for the investment trust management company, developer of the relevant
investment trust, to inform all the sales companies involved that the investment trust concerned is a“complex investment trust similar to over-the-counter derivatives transaction” or a “leveraged investment
trust.”

Q21 In the definition of “complex investment trusts similar to over-the-counter derivatives transactions,”
what is the significance of the text, “an investment trust which has the same product attributes as, orsimilar effects to, the structured bonds in which the concerned investment trust invests”?
The “Rules on Investment Solicitation and Customer Management by Association Members” of the Japan
Securities Dealers Association impose restrictions on complex structured bonds similar to over-the-counter
derivative transactions. Therefore, if a customer who purchases an investment trust that holds structured
bond subject to such restrictions falls into the similar situation to investing directly in such restrictedstructured bond, this will create an act of regulatory arbitrage.
In order to prevent such regulatory arbitrage from occurring when investment trusts are developed tohave the same effect as the structured bonds subject to the regulations by investing directly in such
structured bonds or have similar effects as if such investment trust was itself structured bonds, the term has
defined those investment trusts with the same as, or similar effects to, the structured bonds so that similar
restrictions are applicable to such trusts as those imposed on the concerned structured bonds.

Q22 Item “b” in the definition of “complex investment trusts similar to over-the-counter derivativetransactions” lists “trusts where redemption price could be below the par value.” Because unlike
bonds, any investment trust has an inherent risk of falling below par value, isn’t this definition
misleading as if it were referring to all investment trusts?
In the definition of Article 2, the items “a” through “e” describe certain prerequisites concerned with the－17－definition of “bonds” and not to describe investment trusts.
This definition is not concerned with the risk of falling below par value inherent in all investment trusts
but with those bonds where their values could fall under par value.

Q23 If an investment trust is developed as to have the same effects as a leveraged investment trust byinvesting in leveraged structured bonds, is the product a “complex investment trust similar to an
over-the-counter derivatives transaction” or a “leveraged investment trust”?
When an investment trust is developed so as to have the same effects as a “leveraged structured bond” byinvesting in leveraged “structured bonds,” all such products will be classified as complex investment trust
similar to an over-the-counter derivative transaction.
Investment trusts developed to have correlation or inverse correlation to a variety of indices or assets
through the direct investment in futures transactions in shares, over-the-counter forex option, etc. are notcategorized as complex investment trusts similar to over-the-counter derivatives transactions. Suchproducts are subject to the restrictions as leveraged investment trusts only if the definition of leveraged
investment trust applies to them.

Q24 In the definition of the “complex investment trusts similar to over-the-counter derivatives
transactions,” is it not possible to assume that the scope of application of such definition may varydepending on an investment trust management company that develops such investment trusts?

To prevent such situation from happening, in addition to the definitions set forth herein, details of the natureof complex structured bonds similar to derivative transactions are separately listed in the table, which isprepared by the Japan Securities Dealers Association and separately presented.
In the event that an investment trust is developed to which such table is not applicable or which isdifficult to classify, the relevant committee, etc. within the Investment Trusts Association, Japan shall share
information on the suitability of classification and take measures to serve the convenience of Full Members.
* This is a compilation of the interpretations and ideas regarding the “Regulations for Complex Investment
Trusts Similar to Over-the-Counter Derivative Transactions” enforced on April 1, 2011.

Supplementary Provision
The amendments come into effect on December 13, 2012.

－18－

Guidelines for Utilizing REITs to Promote Supply of Health Care Facilities
Established on May 15, 2014

1. Purpose
The purpose of these Guidelines is to provide for the basic principles in order for an investment trust
management company (investment trust management company and asset management company as defined in
Article 2, Paragraphs 11 and 21 of the Act on Investment Trusts and Investment Corporations (Act No. 198 of1951) ) to appropriately perform their business according to the “Special Provisions for Health Care Facilities”
as defined in Article 24-5 of the Rules on Real Estate Investment Trusts (REIT) and Real Estate Investment
Corporations.

2. Basic Principle(1) Measures for obtaining necessary information from the Operators when investing in Health Care Facilities
in consideration of actual conditions, etc. pertinent to the Operator
Since Health Care Facilities are assets for which special knowledge and expertise are required for theiroperation, when an investment management company invests in such Facilities as an asset for real estate
investment trusts, it is necessary for the management company to conduct an appropriate businessevaluation of the Operator, such as their business capability and stability of management according to theoperational nature of the Health Care Facilities as part of the asset evaluation process.
Information to be collected and acquired by the management company from the Operator may, forexample, include the following listed in (a) to (e):a.

Information on reasons for departure of the residents, operating expenses, breakdown and trend
thereof, marketing structure, the situation on acquiring new residents, etc. in order to understand themarketing capability of the Operator and profitability of the facilities,b.

Information on the number of staff by occupation, changes in the number of full-time and part-time
staff, status of employees’ qualifications, turnover rate, etc. in order to understand the staffing
structure,c.

Reference materials and information related to care plans and care records, incident accident reports,
administrative audit (inspections), various manuals, etc. in order to check the status of care provisionand compliance,d.

Financial and accounting item statements for the past several years to check the financial condition of
the Operator and/or the guarantor of the lease contract guaranteeing the rent payment, ande.

Information on the Operator’s efforts to absorb opinions for improving the satisfaction level of theirresidents and the status of implementing a third-party evaluation.

When the investment management company tries to collect the above information from the Operator, such
Operator may encounter the following issues:‐

The system for providing timely information has not been established.
－1－

‐

Since there is a lot of highly confidential information, including sensitive personal information, etc.
involved in operating Health Care Facilities, there exist concerns for external leakage of information,
as well as psychological resistance to such information disclosure.

‐Lack of understanding on the part of the Operator for the reasons why the management company
requires such information, purposes for which such information is to be used, and so on.

Therefore, the management company may take the following actions in consideration of suchcircumstances.
(i)

Share understanding with the Operator regarding the necessary information and purpose of information
obtained and so on by giving clear explanation to the Operator about such necessity of information,
reasons why such information is needed, purposes for which such information is used, etc. from the
management company.

(ii) Despite the existence of required data at the hands of the Operator, if such data is not organizedsystematically or can’t be provided in a timely manner, the investment management company shallsupport the Operator in maintaining and organizing such data in order to obtain the necessary
information.
(iii) With respect to highly confidential information such as specific individual data, and strategies, methods,
and actual conditions concerned with the management of the relevant facilities, the issue can beaddressed by concluding a confidentiality agreement with the Operator or using aggregate data in orderto prevent such information from being leaked outside.
(iv) If it is still difficult to obtain reference materials or data from the Operator even after the measuresdescribed in (i) through (iii) above are taken, it is recommended to take a flexible approach in line withthe actual circumstances of the Operator, such as conducting interviews and on-site inspections.

(2) Provision of information to facility users and other measures to ensure that the inclusion of Health Care
Facilities as investment targets for the REIT, etc., does not cause anxiety among facility users.
If an investment management company invests in Health Care Facilities through the REIT, etc., the usersof the facilities are likely to have the following concerns:‐

Whether they can use the relevant facilities consistently and continuously‐

Level of services provided by an Operator may be downgraded for the benefit of the concerned REIT,
etc., and‐The rent to be paid by the Operator to such REIT, etc. may be raised, resulting in higher fees forresidents and/or the users of the facilities’ services.

In order to dispel such concerns and anxieties, it is advisable that the management company should
encourage the Operator to provide information and explanations to the users of the facilities regarding thefollowing matters, and that the management company themselves in cooperation with the Operator
provides such information and explanations to the users as much as possible.
(i)

Structure and characteristics of the relevant REIT, etc. and relationship among such REIT, the Operator,－2－and users of the facilities(ii) Investment policy of the REIT, etc. that aims at a stable long-term ownership, and appropriate
maintenance and management of the facilities, etc. to be provided under such policy(iii) Fact that they are managed under the policy of investing in Health Care Facilities, thus unlikely to beconverted for other purposes(iv) Information on past investment records and sponsors(v) Efforts by such REIT, etc. to monitor the quality of Operator services, etc.
Furthermore, it is advisable that the following points should be stipulated as clearly as possible in the leaseagreement, etc. to be concluded between the REIT, etc. and the Operator. In particular, it is recommended thatthe investment management company shall periodically check with the Operator whether the facilities
conform to or comply with the related laws and administrative guidance related to Health Care Facilities.
(i)

The Operator shall conform to and comply with, applicable laws, regulations, and administrative
guidance with regard to the conditions of the Health Care Facilities subject to the investment by the
REIT, user fees to be paid to the Operator by the users of such facilities, and the contents of contracts
between the users thereof and the Operator.

(ii) Details of services to be provided by the Operator to the users of the facilities.
(iii) Details of maintenance, repairs, etc. of the buildings to be conducted by the REIT, etc. that owns the
Health Care Facilities concerned.
(iv) Terms and conditions concerned with discharge or cancellation of the lease agreement, or change of therent.

(3) Disclosure to investors of circumstances specific to Health Care Facilities in addition to general disclosure
items
For the Health Care Facilities as well as other assets that have been invested by the REIT, etc., disclosure
is required for the benefit of investors as to information on the general disclosure items, including thepresent conditions of land and structures, and rights thereto (location, area, age, etc.), profit anddistribution estimates, etc. at the same level as other assets.
In addition to the above, for Health Care Facilities disclosure is required for the benefit of investors as toinformation regarding the Operator, business evaluation, legislative revisions, etc.
Accordingly, the investment management company may disclose to the investors the following matters inconsideration of the circumstances specific to the Health Care Facilities:‐

Information on change of Operator‐

Summary of the Operator’s business and information on their marketing capability (business statusof the Operator, etc.)‐

Risk information related to legislative revisions, and degree of the Operator’s dependence on
long-term care insurance premiums for their income‐

Summary information on the real estate appraisal pursuant to the operation of the relevant HealthCare business‐

Summary of current lease (occupancy rate, etc.) and details of lease contract (contract period,－3－

provision regarding rent revision, etc.) between the REIT, etc. and the Operator concerned‐

Operating status of facilities in which the REIT, etc. invest (operating profit before depreciation, etc.
for all or individual properties held in such REITs)‐

Information concerned with the residents (number of residents, occupancy rate, lump sum deposit
amount, monthly management fee, etc.)‐

Information on investment policies, investment systems (investment schemes), etc. for Health Care
Facilities by the relevant REIT, etc.

‐

Presence or absence of a backup Operator‐

Versatility of properties‐

Information on implementation of business due diligence, etc.

Since some of the information is highly confidential or specialized, this may cause the Operator anxiety andpsychological resistance to disclosing such information to investors as it is. Under such circumstance, fromthe viewpoint of facilitating disclosure to investors, the investment manager shall take necessary measures
such as the following in order to disclose information on the Operator and the operational status of the Aged
Care facilities:‐

To disclose information on multiple facilities collectively.

‐

With respect to highly confidential and delicate information that is difficult to disclose individually,reference information shall be disclosed, including an indicator, index, ratio, and others that indicate
the Operator’s ability to pay rents, etc.

‐

Highly specialized information shall be processed into information easy to understand for investors
prior to disclosure.

(4) Others
When applying the “Special Provisions on Health Care Facilities” set forth in Article 24-5 of the Rules on
Real Estate Investment Trusts and Real Estate Investment Corporations and these Guidelines, if the ratio
of invested amount in Health Care Facilities to total assets of such REIT, etc. is low with limited effects
thereto, appropriate response may be taken in accordance with such ratio and the degree of influence.

Supplementary Provision
The Guidelines shall come into effect on May 15, 2014.
Provided, however, that for any REIT or investment corporation whose accounting period or business year hascommenced prior to such effective date, the amended provisions shall apply from the commencement date of
the following accounting period or business year.

－4－Guidelines for Advertising, etc.
Established on April 28, 2004
Revised on October 13, 2006
Revised on May 17, 2012
Revised on February 21, 2013
Revised on December 12, 2013
Revised on July 15, 2014
Revised on November 12, 2015
Revised on January 14, 2016
Revised on December 13, 2018
Revised on September 9, 2021
Revised on December 9, 2021

PART 1 Summary of Laws and Regulations

1. Definitions of Advertisement, etc.
Advertising or similar activities in Article 2 of the Rules on Display of Advertising, etc. and Provision of Gifts(hereinafter referred to as the “Rules”) are defined as follows referring to the Financial Instruments andExchange Act (Act No. 25 of 1948: Hereinafter referred to as the “FIEA”).
“When advertising the contents of its Financial Instruments Business or performing any similar act specified
by Cabinet Office Order(*1), a Financial Instruments Business Operator, etc. must give the following
particulars(*2), pursuant to Cabinet Office Order provisions: ” [Article 37 of FIEA](* 1) “Advertisement or any other act specified by Cabinet Office Order as being similar thereto”[Article
72 of Cabinet Office Order on Financial Instruments Business, etc. (hereinafter referred to as the“Order on Financial Instruments Business”)](1) Advertising
The following acts are considered to be advertising:[“Summary of and Financial Service

Agency’s View, on Comments” dated July 31, 2007. I. Financial Instruments and Exchange Act Regulation of Advertising, etc. [Article 37] (hereinafter referred to as “Public Comment”) Nos.
14-16, 46-51]- Television commercial- Radio commercial- Display of poster- Publication in newspaper- Publication in magazine- Online publishing(Note) Among the above, it should be noted that TV commercials, radio commercials, and display of
posters may fall under the category of “advertising, etc. in which their characteristics need to be taken
into consideration” as discussed in (3) below.

－1－(2) Act similar to advertising
Act of providing information of identical content to a large number of people by any of the followingmeans is considered to be an act similar to advertising.
- Mail- Letter delivery service- Facsimile transmission- Electronic mail transmission- Provision of leaflets or brochure- Others
However, the following shall not fall into the classification of advertising. [Each item of Article 72 of
the Order on Financial Instruments Business](i) distribution of documents prepared in accordance with laws or regulations, or in accordance withthe dispositions rendered by administrative agencies under the laws and regulations;(ii) Distribution of materials on the analysis and appraisal of the respective companies (analyst
report) not intended to be used for solicitation for the conclusion of a contract for financial
instruments transaction;(iii) Provision of gifts or any other products indicating all of the following information only
(so-called novelty products; limited to those with clear and accurate indication of matters listed insubitems (b) through (d) below) (Even if all required matters are not displayed on such gifts or
products themselves, it is acceptable if they are provided together with other materials or articles
on which such omitted matters are displayed.):(a) Name, issue, or alias of any of the following;- Contract for financial instruments transaction or the types thereof;- Securities or the types thereof;- Invested business or the types thereof; or- Information equivalent to those listed above;(b) Trade name, name, or alias of the financial instruments business operator, etc.;(c) The fact to the effect that there is a risk of principal loss or that such loss could exceed the
security deposits, etc. (limited to the case where the letters or numerical characters representing
such matters are indicated in a size that does not differ substantially from the largest letters or
numerical figures used for indicating other matters);(d) Notice to the effect that the recipient thereof should comprehensively read pre-contract
documents (or prospectus), etc.

(* 2) Particulars to be indicated in advertising, etc.
The following particulars shall be indicated in advertising, etc. (advertising or performing any similaract):(i) The trade name or name of the Financial Instruments Business Operator, etc. [Article
－2－

37,

Paragraph 1, item (i) of the FIEA](ii) An indication that it is a Financial Instruments Business Operator, etc., and its registration
number; and[Article 37, Paragraph 1, item (ii) of the FIEA](iii) The particulars of the contents of the Financial Instruments Business that the Financial
Instruments Business Operator, etc. engages in, which are regarded as material particulars that
may have an impact on customers’ judgment.

[Article 37, Paragraph 1, item (iii) of the FIEA](a) The particulars of fees, remuneration, or any other consideration payable by the customer withregard to a Financial Instruments Transaction Contract;[Article 16, Paragraph 1, item(i) of Order for Enforcement of the Financial Instruments and Exchange Act (hereinafterreferred to as the “Enforcement Order.”)]- The amount of the consideration payable by customers in relation to a Contract for Financial
Instruments Transaction irrespective of its name such as fees, remuneration, expenses, orothers (excluding the price of the Securities or the Amount of Security Deposit, etc.) itemizedby the types of such consideration or the upper limit thereof, or the outline of the method of
calculation thereof (including the ratio to the price of the Securities, the amount of the
Derivative Transactions, etc., that pertains to the Contract for Financial Instruments
Transaction, or the ratio to the profit generating from the Acts of Financial Instruments
Transaction); and the total of such amount or upper limit thereof, or the outline of the methodof calculation thereof; provided, however, that in cases where these details cannot be
indicated, such fact and the reasons therefor are indicated. [Article 74, Paragraph 1 of theOrder on Financial Instruments Business]- Pertaining to the acquisition of rights to be indicated in investment trust, foreign investment
trust, partnership agreement, or foreign partnership agreement, where the properties
pertaining to such investment trust beneficial interests, etc. are to be invested in orcontributed to, another investment trust beneficial interests, etc. the Fees, etc. are to include atrust fee and any other fees concerned with such investment trust beneficial interests, etc.
subject to investment or contribution. Etc. [Article 74, Paragraphs 2, 3, and 4 of the Order on
Financial Instruments Business](b) The following particulars, if there is a risk of a loss to arise that has as its direct cause
fluctuations in interest rates, foreign exchange rates, quotations on a Financial Instruments
Market, or any other indicator, as regards an act that constitutes a financial instruments
transaction conducted by a customer; (risk warning)[Article 16, Paragraph 1, item (iv), of

the Enforcement Order]- Relevant indicator; and- Indication of the risk that fluctuations in that indicator could give rise to a loss and the reasonsfor such loss.
(c) The facts regarding significant matters on the contract for financial instruments transaction,
which would be disadvantageous to the customer;[Article 16, Paragraph 1, item (vii), of

the Enforcement Order, and Article 76, item (i) of the Order on Financial Instruments Business]－3－

(d) If the Financial Instruments Business Operator belongs to any Association (limited to those
whose main members are ones engaged in the relevant Financial Instruments Business), suchfact and the name of such Association [Article 16, Paragraph 1, item (vii) of the Enforcement
Order and Article 76, item (ii) of the Order on Financial Instruments Business] (However, thisdoes not prevent the member company from voluntarily listing the membership of otherfinancial instruments business associations than that of the Financial Instruments Firms
Associations, indication of which is a statutory description item. [Summary of FSA Comments
dated June 5, 2019 and FSA’s Opinion on Comments, Nos. 16, 17])(e) In case where the Financial Instruments Business Operator advertises their acts of financial
instruments transaction in connection with a Leveraged Index, etc. (meaning a quotation orother index in a Financial Instruments Market which is calculated so that its daily rate of change
is obtained by multiplying the daily rate of change of another index (hereinafter referred to as
the "Original Index") by a certain ratio; the same shall apply hereinafter), the following matters[Article 16, Paragraph 1, item (vii), of the Enforcement Order, and Article 76, item (iv) of theOrder on Financial Instruments Business]- If there is any risk of diversion between the rate of change of such Leveraged Index and therate obtained by multiplying the rate of change of the Original Index by a certain ratio, suchfact and the reasons therefor- If investment in securities related to such Leveraged Index, does not conform to themedium-to-long term investment objectives, such fact and the reasons therefor(3) Advertising, etc. in which their characteristics need to be taken into consideration
The following particulars shall be indicated if the acts of advertising, etc. are to be carried out by
way of broadcasting, using the broadcast equipment of a private broadcaster or any other means
specified by Cabinet Office Order as being equivalent thereto(*3); [Article 16, Paragraph 2 of
the Enforcement Order](i) Trade name or name of the Financial Instruments Business Operator, etc.;(ii) Indication that it is a Financial Instruments Business Operator, etc., and its registration number;and(iii) Fact to the effect that there is a risk of a loss arising that has as its direct cause fluctuations ininterest rates, foreign exchange rates, quotations on a Financial Instruments Market, or any otherindicator, as regards an act that constitutes a financial instruments transaction conducted by acustomer; and [Article 16, Paragraph 2, item (i) of the Enforcement Order](iv) Notice to the effect that the recipient should comprehensively read pre-contract documents orprospectus. [Article 16, Paragraph 2(ii) of the Enforcement Order, and Article 77, Paragraph 2 andArticle 72, item (iii)(d) of the Order on Financial Instruments Business](* 3) Broadcasting through the broadcasting facilities of a general broadcaster or any other method specified
by Cabinet Office Order as being equivalent thereto.
－4－(i) To broadcast using the broadcasting facilities of the following (so-called television commercial orradio commercial): [Article 77, Paragraph 1, item (i) of the Order on Financial Instruments
Business, Public Comment Nos. 50 and 51](a) Cable television broadcasters;(b) Any person who is engaged in wired radio; and(c) Any person who is engaged in broadcasting utilizing telecommunications services.
(ii) To make available for the customer’s inspection the contents of information recorded in the files
stored on the computer used by a Financial Instruments Business Operator, etc. or by a person who
has accepted entrustment of the service of advertising, etc. to be made by the Financial Instruments
Business Operator, etc. (limited to information identical to that provided by means of broadcasting
using the broadcasting facilities of a general broadcaster or by the means specified in the preceding
item (i)) via telecommunications line (online posting of the contents of television commercial orradio commercial); [Article 77, Paragraph 1, item (ii) of the Order on Financial Instruments
Business](iii) To present to the public an indoor or outdoor advertisement regularly or continuously for a fixed
period, by means of posting or indicating it on signboards, standing signboards, bills, notices,
advertising towers, billboards, buildings, any other structures, or any other methods similar thereto(posters put on signboards, walls or electronic bulletin boards, etc. excluding cases where such aposter is used for distribution as leaflet, electronic bulletin boards). [Article 77, Paragraph 1, item(iii) of the Order on Financial Instruments Business](4) Method of Indication of advertising, etc.
In cases where a Financial Instruments Business Operator, etc. intend to conduct advertising or
similar acts with regard to the contents of their Financial Instruments Business, they must clearly andaccurately indicate the matters listed in (*2) above. [Article 73, Paragraph 1 of the Order on Financial
Instruments Business]
In addition, the matters specified in provision (iii)(b) of (*2) above shall be indicated in a font sizethat does not differ substantially from the size of the largest letters or numerical figures used forindicating other matters than such matters. [Article 73, Paragraph 2 of the Order on Financial
Instruments Business](5) Prohibition of Misleading Advertising
When advertising the contents of their Financial Instruments Business or engaging in any similar act,a Financial Instruments Business Operator, etc. shall not make a representation that significantly
conflicts with the fact of the matter or that could cause a person to have a serious misconception
about the prospect of profiting from the performance of an act that constitutes a financial instruments
transaction. [Article 37, Paragraph 2 of the FIEA](i) Matters related to cancellation of a Contract for a Financial Instruments Transaction
78, item (i) of the Order on Financial Instruments Business]－5－[Article(ii) Matters related to the sharing of all or part of the losses or a guarantee of profit, in connection
with a Contract for a Financial Instruments Transaction [Article 78, item (ii) of the Order on
Financial Instruments Business](iii) Matters related to agreement for liquidated damages (including penalties) pertaining to theContract for Financial Instruments Transaction [Article 78, item (iii) of the Order on Financial
Instruments Business](iv) Matters related to the financial instruments market or any other market similar thereto located ina foreign state, which pertains to the Contract for Financial Instruments Transaction[Article

78, item (iv) of the Order on Financial Instruments Business](v) Matters regarding financial resources or credit of Financial Instruments Business Operators, etc.
[Article 78, item (v) of the Order on Financial Instruments Business](vi) Matters related to the performance of the financial instruments business conducted by the
Financial Instruments Business Operator, etc. [Article 78, item (vi) of the Order on Financial
Instruments Business](vii) Matters related to the amount of the Fees, etc. payable by customers in connection with acontract for financial instruments transaction or the method of calculation thereof, and the method
and timing of the payment of such fees, and the payee of such fees, etc.

[Article 78, item(vii) of the Order on Financial Instruments Business](viii) In case of advertising, etc. for acts of financial instruments transaction related to the Leveraged
Index, etc., the following matters [Article 78, item (xiv) of the Order on Financial Instruments
Business]- Nature of the Leveraged Index, etc. or securities relating thereto- Matters concerning changes in numerical values of the Leverage Index, etc. or prices of securities
relating to such Leverage Index, etc., or prospects thereof(6) Treatment of Professional Investors
Provisions in Article 37 of the FIEA shall not apply to advertising, etc. intended for professional
investors. [Article 45, Item (i) of the FIEA]

2. Outline of other regulations of the Financial Instruments and Exchange Act(1) Other reference materials than prospectus
If any of the documents, drawings, sounds, or other materials than prospectus are used for the purposeof a public offering or secondary placement of securities, it is prohibited for any person to make a false
or misleading representation in such materials. [Article 13, Paragraph 5 of the FIEA](2) Other Considerations (Summary of Laws and Regulations)(i) Financial Instruments Business Operator, etc. or officers or employee thereof shall not engage inproviding a customer with false information in connection with the conclusion of a financial
instruments transaction contract or solicitation thereof.
－6－[Article 38, item (i) of the FIEA]

(ii) Financial Instruments Business Operator, etc. or officers or employee thereof shall not engage inproviding a customer with a conclusive assessment of a matter that is uncertain or with informationthat could mislead the customer into believing that such uncertain matter is certain, thereby
soliciting the customer to conclude a financial instruments transaction contract.

[Article

38, item (ii) of the FIEA](iii) Financial Instruments Business Operator, etc. or officers or employee thereof shall not engage insupplying a customer with a credit rating that has been determined by a person who is engaged insuch services but not registered as credit rating agency, without informing the relevant customer ofthe fact that such person giving the credit rating is not registered under the FIEA and thesignificance, etc. of such registration, thereby soliciting the customer to conclude a financial
instruments transaction contract.

[Article 38, item (iii) of the FIEA](iv) Financial Instruments Business Operator, etc. or officers or employee thereof shall not engage inmaking any false representation or any representation that is likely to cause any misunderstandingon significant matters in connection with the conclusion of or solicitation for, a financial
instruments transaction contract. [Article 38, item (ix) of the FIEA and Article 117, Paragraph 1,
item (ii) of the Order on Financial Instruments Business]* In addition to the above prohibitions imposed on the Financial Instruments Business Operators, etc., itshould be noted that the Article 168 (Prohibition on Issuing Public Notice of False Quotations),
Article 169 (Restriction on the Receipt of Consideration for Presenting an Opinion in Newspaper),
Article 170 (Prohibition on Representing a Purchase as Advantageous), and Article 171 (Prohibition
on Representations of Fixed Amount Dividends) of the FIEA provide for generally prohibited acts.

3. Necessity of Internal Inspection
The internal inspection by the Full Members as provided for in Article 5 of the Rules (the Full Members as
stipulated in Article 6 of the Articles of Incorporation; the same shall apply hereinafter.) shall be performed
as follows:(1) Even for advertising, etc. that is not subject to an examination pursuant to Article 5, Paragraph 1 of
the “Rules for, etc. Display and Provision of Gift, etc.,” if the content of such advertising, etc. falls
under the prohibited acts provided in Article 4 of the Rules, it amounts to a violation of the Rules.
Therefore, it is necessary for a person who creates the advertising, etc. or a person who uses suchadvertising, etc. to confirm that the said advertising, etc. does not amount to any violation. In addition,
when an inspection is required by the internal rules, it is necessary to comply with such internal
regulations.

(2) If reference materials created for professional investors without examination are used for otherpersons than professional investors without appropriate screening by a person in charge ofadvertisement materials, such act shall be a violation of the Rules. (It is not considered to constituteadvertising, etc. where provision of information is intended for a single customer when such－7－

information is tailored for the customer.) [Public comment No. 66]
4. Internal Inspection System
The internal inspection as provided in Article 5 of the Rules and the development of the internal control
system as provided in Article 6 of the Rules concerned with Full Members shall be performed as follows:(1) Person in charge of screening advertisements shall be appointed by each member company inconsideration of their organizational structure, business operation, etc. Multiple persons may be
appointed in charge of screening advertisements.
(2) The appointment of person(s) in charge of screening advertisements need not be notified to the
Association.
(3) When a person in charge of screening advertisements examines advertising, etc. made by oneself, it
is necessary to establish a system to properly review and control such advertisement, etc. inaccordance with “5. Inspection Standards” and “6. Safekeeping of Advertising, etc.” below.

5. Inspection Standards
Advertising, etc. conducted by Full Members must not fall under or be likely to fall under the provisions ofArticle 4 of the Rules, and the person in charge of screening advertisements must also pay attention to thefollowing matters:(1) With regard to advertising, etc. to be prepared by a member company, such inspection shall be madeto ascertain that there is no issue in light of Article 4 of the Rules in addition to paying attention to theprovisions in the “Part 2. Considerations for Preparing Advertisement, etc. for Investment Trusts.”(2) With regard to advertising, etc. where the items to be indicated have been prescribed in advance,such as the term sheet for bond issues and the required items, including issue name, terms, etc. are to
be entered in the form, examination of such form may be required without needing to inspectindividual advertising, etc. (Inspection of prototypes alone will be sufficient.)(3) When any of the materials produced by other companies are used for its own advertising, etc., thecontent thereof cannot usually be modified. Therefore, in light of Article 4 of the Rules, theinspection shall be made concerning whether or not such materials can be used for the relevant
member’s own advertising, etc., after taking necessary measures (such as providing a separate
document describing the statutory description items to customers simultaneously with the concerned
advertisement) to indicate the statutory description items under the FIEA, which include thecompany or trade name, the fact that it is a Financial Instruments Business Operator, etc., its
registration number, and the name of the industry associations to which the Company belongs(limited to those whose members or a majority of such members are engaged in the Financial
Instruments Business). (However, this does not prevent the company from voluntarily listing themembership of other financial instruments business associations than that of the Financial
Instruments Firms Associations, indication of which is a statutory description item. [Summary of
FSA Comments dated June 5, 2019 and FSA’s Opinion on Comments, Nos. 16, 17])
6. Safekeeping of Advertising, etc.
With regard to the safekeeping system provided for in Article 6 of the Rules, each company shall determine－8－the period, method, etc. relevant to such safekeeping.

<Reference>
Applicability of Advertising, etc.

Subjects of regulation under the Regulations of Advertising, etc. (Article 37 of the FIEA), are those advertisingand acts similar to advertising conducted by the Financial Instruments Business Operators, etc. on theirfinancial instruments business. (excluding advertising, etc. to professional investors.)
Therefore, the following are main points in determining whether or not a certain act is subject to theRegulations of Advertising, etc.
(i) Whether or not the act is regarded as “advertising” or “acts similar to advertising”:(ii) Whether or not such act is concerned with the Financial Instruments Business:(iii) Whether or not such act is deemed as advertising, etc. or falls under the category of advertising,etc., which is excluded from the application of the restrictions on advertising, etc.

1. Applicability of definition; “Advertisement” or “Act Similar to Advertising”(1) “Advertising” in general is intended to inform (including the intention for publicity) the wider publicof a certain matter at all times or on a continuing basis, and the following acts are considered to be
advertising: [Public comment Nos. 14-16, 46-49](i) TV commercial and radio commercial(ii) Display of poster(iii) Publication in newspaper or magazine(iv) Online posting(2) “Acts Similar to Advertising” are considered to be acts of providing a large number of people withinformation of identical content by any of the following methods:(i) Mail(ii) Letter delivery service(iii) Facsimile transmission(iv) Electronic mail transmission(v) Provision of leaflets or brochure(vi) Others(3) “Provision of information intended for a single customer when such information is tailored for thecustomer” is not considered as advertising, etc. because such an act is considered to be an act ofindividual marketing or solicitation. [Public comment No. 66]

2. Whether or not the act is concerned with the Financial Instruments Business:(1) “Financial Instruments Business” means the contents of business as provided for in the respective
item of Article 2, Paragraph 8 of the FIEA. For example, if the following contents are indicated, it is－9－generally considered that such indication is made as a means of soliciting for the relevant products.
Accordingly, it will be classified as contents of the Financial Instruments Business.

[Public

comment Nos. 19-21, 29, 34, 53, etc.](i) Names of products relating to Financial Instruments Business (names of investment trusts, etc.)(ii) Type of products (investment trust, etc. excluding those that do not refer to specific financial
instruments but merely introduce their product line-up.)(iii) Means of transaction and names of services(iv) List of products and services provided by the relevant Financial Instruments Business Operator,etc.
(v) Information on the structure of financial instruments(vi) Information on the structure, scheme, advantage, and disadvantage of financial instruments
transaction(2) Representation such as the following is not considered to concern Financial Instruments Business.
[Public comment Nos. 29, 33, 36, 37](i) Information that is limited to guidance on tax system or explanation of laws and systems(ii) Communication as to relocation of a branch office or something like that(iii) Display limited to business hours or hours of operation(iv) Expression akin to a catch phrase that does not indicate any outline or details of a financial
instrument product, including those texts such as “Stocks, Government Bonds, Public Debentures,
Investment Trusts,” “XX Securities Company for Investment Trusts,” or “XX Securities Company
for Government Bonds for Individual Investors.”
3. Whether or not such act is deemed as advertising, etc. or falls under the category of advertising, etc., which is
excluded from the application of the restrictions on advertising, etc.
(1) The following are legally not considered to be advertising, etc.:[Article 72 of Order on

Financial Instruments Business, Public comment Nos. 40-45, 53](i) Distribution of documents prepared in accordance with laws and regulations, or in accordancewith the dispositions rendered by administrative agencies under the laws and regulations;(statutory public notice, company public notice, prospectus, foreign securities information,
investment report of investment trust, etc.)(ii) Distribution of materials on the analysis and appraisal of the respective companies (analyst
report) not intended to be used for solicitation for the conclusion of a contract for financial
instruments transaction;(iii) Provision of gifts or other products (so-called novelty products such as notepads, ballpoint pens,saving boxes, etc.) that indicate all of the following items only:(a) Name, issue, or alias of any of the following;- Contract for financial instruments transaction or the types thereof;- Securities or the types thereof;－10－- Invested business or the types thereof; or- Information equivalent to those listed above;(b) Trade name, name, or alias of the financial instruments business operator, etc.;(c) The fact to the effect that there is a risk of principal loss or that such loss could exceed the
security deposits, etc. (limited to the case where the letters or numerical characters representing
such matters are indicated in a size that does not differ substantially from the largest letters or
numerical figures used for indicating other matters);(d) Notice to the effect that the recipient thereof should comprehensively read pre-contract
documents (or prospectus), etc.
(Note 1) Gifts and other products as prescribed in (iii) above shall be limited to those that clearly
and accurately indicate the matters listed in (b) through (d) above.
(Note 2) Regarding the provision as prescribed in (iii) above, even if all required matters are notdisplayed on such gifts or products themselves, it is acceptable if they are provided
together with other materials or articles on which such omitted matters are displayed.
However, they should indicate only matters concerned with (a) through (d) above.
(2) Restrictions on advertising, etc. are not applied to advertising, etc. intended for professional investors.
4. Others(1) When a Financial Instruments Business Operator, etc. use an advertisement, etc. prepared by anothercompany as in the following manners, such an advertisement is also deemed to be advertising, etc.:[Public comment Nos. 54, 55, 258]
(i) Act of affixing posters on investment trust created by the investment trust management company
or distributing leaflets thereof(ii) Act of affixing posters on Japanese government bonds or local government bonds intended forindividual investors created by the Ministry of Finance or local governments or distributing
leaflets thereof(2) The following acts are not considered to be advertising, etc. in general.

[Public

comment

No. 53, “Answering the Questions on the Financial Instruments and Exchange Act,” Q6](i) Distribution of press release materials exclusively to the press(ii) Act of providing newspapers and magazines (economic magazines, money magazines, quarterly
corporate handbook, etc.) themselves.
(iii) Act of purely providing information by providing materials that contain individual product namebut do not contain any wording for direct solicitation, product summary, or details in relation to therelevant product without any intention of soliciting investment into such product.
For example, any of the followings acts that satisfies these requirements:(a) Act of sending an invitation solely for the purpose of informing of such seminar or putting－11－

up posters to that effect;(b) Act of sending an information request form (postcard format) to be used by customers orquestionnaire to customers;(c) Act of distributing disclosure magazines and annual reports;(d) Act of providing IR materials, etc. for the purpose of explaining the contents of the financial
statements; and others* It should be noted that “List of our Investment Products” cannot be said to be “not for the
purpose of inducing purchase of individual products” in general.
* With respect to the invitation to a seminar as stipulated in (a) above, where information ofidentical content is provided to a large number of people such as the Financial Instruments
Business conducted by the Financial Instruments Business Operator, etc. and the explanation on
individual products or services provided by such Business Operator, etc. in addition to theinvitation, such an act is considered to be advertising, etc. Furthermore, where investment
solicitation for a financial instruments product is conducted (including a specific productexplanation for the purpose of solicitation) at the seminar, it is considered necessary to clearly
indicate that the purpose of such a seminar includes solicitation for a financial instrumenttransaction regardless of whether such an act falls under the category of advertising, etc. [Public
Comment No. 25](iv) Act of providing customers with information materials, etc. that contain individual product namebut do not contain any wording for direct solicitation, the product summary, or details in relation to
the relevant product without any intention of soliciting investment into such product (such as thosedeemed to be part of after-sales services)
For example, the following satisfy the provision.
- Act of providing the base value, etc. of an investment trust- Act of providing timely disclosure materials (investment reports) prepared by the investment
management company as prescribed in Article 18 of the Rules on Investment Reports, etc.
Pertaining to Investment Trusts and Investment Corporations by the Investment Trust
Association- Act of providing reports on economy, exchange rates, etc.
- Act of providing press release materials and documents to notify customers of the occurrenceof any important event (such as delisting, merger, redemption, stock split, or any othercorporate action) concerned with their securities.
- Act of providing statistical data containing only objective facts* In order to be recognized as a part of after-sales services, it is considered necessary that theprovision of such after-sales services be limited to the existing investors of the relevant products(in case of publishing on a website, etc., such after-sales service information shall not be
published on any page that can be easily accessed by any person other than the holders of therelevant products), that such materials to be provided shall not include any indication, etc.
recommending any additional purchase or disposal, and that information or descriptions relating－12－

to other products or transactions shall not be provided as an integral part. Furthermore, it isadvisable to add such statements as “this information is provided as part of after-sales service tothe customer holding xx (product/issue name)” or “this is for the purpose of providing
information on xx and should not be deemed any recommendation thereto.” However, it should
be noted that these wordings alone are not sufficient to determine whether the relevant act is apart of after-sales service.

－13－

Part 2. Considerations for Preparing Advertisement, etc. for Investment Trusts, etc.
I. General Provisions
1. Basic Matters regarding Representation
When advertisement, etc. is displayed, the requirements described in the Part 1. Summary of Laws andRegulations; 1. Definitions of Advertising, etc. of the Guidelines must be satisfied. In addition, the following
matters and the provisions described in Paragraphs 2 through 15 shall be taken into account:(i) Whether or not the matters to be indicated as stipulated in the FIEA are clearly and accurately
indicated.
(ii) Whether or not there is any misleading representation that could give rise to a customer’s
misunderstanding that the commissions, fees, other payments, or expenses payable by the customer are
free or substantially less than the actual amount.
(iii) With regard to any of the matters to be indicated as stipulated in the FIEA, whether or not such matters
are indicated in advertising, etc. in a manner to make them unjustly difficult to notice in terms of the
font size, font, and color in terms of the characters used.
(iv) In the event that there is a risk of loss arising directly from the fluctuations in indicators related tointerest rates, market, etc., whether or not the index concerned, the fact that a loss could be incurred, thereasons therefor, and other matters concerning risk are indicated in a size not substantially different
from the largest letters or numerical figures used for the advertisement, etc.
(v) Whether or not only the advantages of the contract are emphasized while making the indication
concerning the disadvantages thereof conspicuously less visible.
(vi) When advertising, etc. is made on the image screen, whether or not there is a sufficient display time
secured to read all required matters as stipulated in the FIEA.

* When displaying advertising, etc., it should be noted to make it easy to understand by using graphs,
drawings, plain words, etc. as much as possible, so as not to cause investors any misunderstanding.
Especially with regard to matters related to risks and expenses, attention should be paid to making themclear and easy-to-understand in addition to their layout, font size, color scheme, etc.

2. Considerations regarding Misleading Advertisement, etc.
(1) Considerations
When advertising, etc. is displayed, it is necessary to pay attention to the following items so as to
avoid misleading advertisement.
(i) Whether or not the advertisement makes definitive predictions on the future movements of theprices and other numerical features of securities and other financial instruments as well as rewards
to be received; whether or not such advertisement unduly stimulates customers’ investment
appetites by using descriptions that could lead them to erroneously believe that profits areguaranteed.
(ii) Whether or not there is any representation to indicate the yield guarantee or compensation for aloss in whole or in part, or mislead investors into believing that such guarantee for yield or－14－

compensation is available.
(iii) When any expression such as “select” is used for describing an issue, whether or not such
expression is used to mislead investors into believing that such issue is significantly superior toother securities or issues. *(iv) When an offering period, the number of applicants, etc. are not limited, whether or not there is
any indication that may mislead investors into believing that such limitation exists.
(e) Whether or not there is any representation to mislead investors into believing that the Prime
Minister, the Commissioner of the Financial Services Agency, or any other public agency has
recommended the Financial Instruments Business Operator, etc. or guaranteed the contents ofadvertising, etc. by indicating such Operator is legally registered.
(vi) Whether or not the relevant indication is in violation or likely to be in violation of the prefecturalordinances and other laws and regulations pursuant to the Act Against Unjustifiable Premiums andMisleading Representations and the Outdoor Advertisement Act.
(vii) Whether or not the advertisement is so marked as to attract public criticism as excessive
advertising.

*For REIT and infrastructure fund, refer to the corresponding sections of “III. ETF (Exchange
Traded Fund), REIT (Real Estate Investment Trust) and Infrastructure Fund, 7. Considerations
regarding REIT and Infrastructure Fund” when using the expression such as “Select Issues” and soon.

(2) Comparative Advertising
When a Full Member makes a comparison with other Full Member(s) with respect to their fees, or
actual performance of financial instruments products (so-called comparative advertisement; this does
not include a list of one’s product line-up.), such comparison must satisfy all of the following
requirements from (i) through (iii) regardless of the concerned advertising medium, size of suchadvertisement, or other factors. For example, it should be noted that if all of the requirements in (i)through (iii) are not met while claiming “the lowest level in the industry” or “our commission is thelowest,” or if any of the representations made is false, such an advertisement shall be regarded as a
Misleading Advertisement. Furthermore, in the case of comparative advertisement, it is necessary to
pay attention to clearly specifying the scope of comparison, selection criteria, etc. in order to avoid
any misunderstanding by investors.
(i) The contents claimed in the comparative advertisement have been objectively verified.
For example, the following may not be deemed to be objectively verified:- To display
and compare figures based on theoretical (imaginary) calculation as if they were actual or
definitive figures.
- To present and compare the actual operating performance, etc. of other company’s products as if
such performance, etc. were its own.
－15－

- To present and compare the ratings and evaluation by a very small number of customers(including the survey results) as if they were general (majority) opinions.
(ii) Accurate and proper reference of verified figures and facts.
For example, the following may not be considered an accurate and appropriate reference:- To present and compare investment performance, commission rates, etc. in an arbitrary mannerwithout sufficient investigation despite the existence of products with better investment
performance or more favorable commission rates.
- To present and compare results or findings based on specific conditions as if they were applicable
under all conditions.
- To present and compare actual figures relevant to a very limited period of time or results
extracted from a very small number of samples.
- To present and compare matters which differ from the actual facts at present even if such matterswere accurate and proper at the specified time of the investigation.
* It is considered desirable to check the underlying data to confirm that the figures are accurately
and properly quoted in the inspection of the comparative advertisement and to keep records
thereof as appropriate.
(iii) The method of comparison shall be fair.
For example, the following may not be considered a fair comparison:- To compare two different types of things (for example, management performance of investment
trusts which have different product attributes such as investment policies, investment assets,etc.) without any reasonable grounds and present one’s own products superior.
- For example, to present and compare ratings or subjectively selected assessment that areprovided by oneself or those commissioned by such person (e.g., affiliate, listing operator,
advertising agencies, etc.) in a review site, affiliate site, listing advertisement, etc., as if they
were objective assessment by third parties.
- To place one’s own advertisements on a comparative website, knowing that such a website
subjects its ranking according to the amount of fees received from an advertiser.
* See also Section “14. Advertising, etc. on the Internet,” (6) and (7)(*) Refer to “Interpretation of Act Against Unjustifiable Premiums and Misleading Presentations
Regarding Comparative Advertising” (April 21, 1987, Fair Trade Commission).

3. Matters Regarding Public Offering or Secondary Placement(1) Prohibition of solicitation before submission of securities registration statements
Under the provisions of Article 4, Paragraph 1 of the FIEA, with respect to solicitation for a public
offering or secondary placement of securities to which the provisions of Chapter II Disclosure of
Corporate Affairs of the FIEA are applicable, except for cases specified by the Cabinet Order or for asecondary placement of foreign securities, solicitation for investment or any other act similar thereto
shall not be conducted unless the issuer has submitted the securities registration statements regarding－16－

such public offering or secondary placement to the Prime Minister.

(2) Reference materials, etc. to be delivered to customers(i) Delivery of prospectus
After submitting the securities registration statements, a Full Member may make solicitation for a
public offering or secondary placement by using a prospectus or a provisional prospectus producedby the issuer of the concerned securities. In addition, in case of soliciting the investor to acquire thesecurities through such offering or secondary placement, the prospectus shall be delivered to theinvestors concerned in advance or at the same time of solicitation.
The use of a prospectus is classified as the “distribution of documents prepared pursuant to thelaws and regulations” and therefore, does not fall under the category of advertising, etc. [Article 72,
Item (i) of the Order on Financial Instruments Business, Public Comment No. 53](ii) Preparation and delivery of marketing materials (other materials than the prospectus)
As a result of the revision of the Securities and Exchange Law in December 2004, the definition ofprospectus was reviewed. Consequently, the “summary prospectus”, which summarizes thecontents of the prospectus, and so-called "tombstone advertisement" for informing investors of theplace where the prospectus is to be delivered and other matters, are classified as documents,
drawings, sound or other materials (marketing materials *) rather than the prospectus, and are
subject to the regulations which prohibit any false or misleading representation when suchmaterials are used. (Article 13; Paragraph 5 of the Act)* Legal positions, etc. of marketing materials- Marketing materials are considered to be “documents, drawings, sound, and other materials
than the prospectus” as stipulated in Article 13, Paragraph 5 of the FIEA.
Marketing materials may be used before the delivery of the prospectus.
- The act of providing information of the identical contents to a large number of persons using
marketing materials is considered to be advertising, etc.

[Public comment No. 18]

Since marketing materials (other materials than the prospectus) must not contain any false or
misleading representation, it is necessary to comprehensively examine the whole of such
representation and make sure not to lack investor protection in light of the following points,
among others:(a) Any inconsistency between the representation of such documents and those of theprospectus;(b) Any inconsistency concerned with the underlying assumptions between the representationsof such documents (e.g., analysis) and those of the prospectus;(c) Where any assumption used for the representation of such documents (e.g., analysis) is notclearly indicated or such assumption is unreasonable;(d) Where any representation of such documents is arbitrarily distorted;(e) Where the process leading to the representation of such documents is arbitrarily distorted;(f) When any significant matter is not stated in such documents while emphasizing only the－17－advantageous points; etc.
Whether or not any of the above items is applicable to the marketing materials (materials otherthan the prospectus) to be provided at the time of individual solicitation shall be determined
individually and specifically according to the nature of such materials. However, it isconsidered highly probable that such materials constitute a false or misleading representation
if any of the above items (a) through (f) is applicable.

4. Representation of Significant Matters under the Act on Provision of Financial Services
A Full Member shall refer to the “Guidelines on Accountability of Investment Trust Management Company
pursuant to the Financial Instruments Sales Act” stipulated by the Association, as well as the Act on
Provision of Financial Services (Act No. 101 of 2000; hereinafter referred to as the “Financial Service
Provision Act”) and the Enforcement Order thereof, when describing in advertising, etc. any of the
Significant Matters as provided for in the Financial Service Provision Act.

5. Tax Indication(1) In connection with the purchase, sale, or other transactions of investment trusts, etc., it is desirable toindicate the method of taxation on distributions, profit, or loss on transfer, etc.
(2) In connection with the purchase, sale, or other transactions of investment trusts, etc., there shall be no
representation that implies or is liable to be misunderstood to be implying, exemption from taxation
on distributions, profit or loss on transfer, or inheritance tax, gift tax, etc.

6. Obligation to Display Total Price with Tax pursuant to Consumption Tax Law
When prices of products and services are indicated in advertising, etc., it is obligatory to display the total
price with tax (display of price including the total amount of consumption tax and local consumption tax).
[Article 63 of Consumption Tax Law]
* As a result of the change in the consumption tax rate, during the period up to March 31, 2021, there wasa special provision in the Consumption Tax Law that enabled the prices excluding taxes to be displayedon the premise that necessary measures are taken in order to prevent any misunderstanding that theprices displayed are inclusive of taxes. However, it should be noted that such special provision has notbeen applied since April 1, 2021, and the total amount is required to be displayed.

(1) Example of displaying total price with tax (Tax rate at 10%)
11,000 yen
11,000 yen (including tax)
11,000 yen (10,000 yen excluding tax)
11,000 yen (including 1,000 yen as tax)
11,000 yen (10,000 yen excluding tax, 1,000 yen as tax)
10,000 yen (11,000 yen including tax)－18－

(2) Display example of base value and commission rates subject to the obligation to display total pricewith tax
When indicating a base value of product or services, commission rates, etc., the obligations to display
the total price with tax include any price display that is practically indicating a price, although suchprice does not represent the final transaction price itself (e.g., sales commissions rate and trust fees
concerned with investment trust investment).
[Examples of displaying commission rates at public offering and trust fees] (Tax rate at 10%)
1.10% (Including tax)
1.10% (1.00% before tax)
1.10% (including 0.10% as tax)
1.10% (1.00% before tax, 0.10% as tax)
1% fee rate per annum plus consumption tax and local consumption tax, resulting in the total
rate of 1.10% per annum

7. Display of Catch Phrase
If the contents of display do not include any description of product outline or details but are limited to aso-called catch-all phrase such as “XX Company for Specified Account” together with the company name,its address, and contact details, such display is not necessarily described as an unmistakable solicitation for
any individual financial product, and therefore, not considered to be classified as advertising, etc. However,
it is necessary to note not to use any arbitrary or excessively subjective expression that may cause
misunderstanding by investors, such as exaggerating only certain parts of the product characteristics orextracting a limited part of the actual investment performance concerned with the relevant investment trust.
[Public comment No. 33]

8. Reproduction of copies of articles, illustrations of a likeness, statistical data, and others(1) Unauthorized reproduction of any newspaper and magazine articles, etc. are prohibited.
(Note) When any of these articles, etc. are used, the consent of the copyright holder shall be
required, except in cases where the use of such articles, etc. by quote is permitted under the
Copyright Act.
(Reference)
In order for any quote to be permitted without the consent of the copyright holder pursuant to the
Copyright Act, the work must be quoted consistent with fair practices and within a scope that isjustified for the purpose of news reporting, critique, study, or other place in which the work isquoted. (Article 32, Paragraph 1 of the Copyright Act). In order to correspond to the definitionof “quote” in the same Article, it is interpreted necessary to satisfy the following requirements:(i) the materials, etc. to be quoted have already been published; (ii) the “master-servant
relationship” between the quoted part and the other part can be clearly identified; (iii) the“quoted part” can be easily distinguished from the other part by the use of parentheses, etc.; and(iv) such quote must not appear to injure the personal rights of the author. Furthermore, quotes－19－

of works pursuant to the Article must clearly indicate their source of origin (Article 48 of the
Copyright Act), and in some cases, it is necessary to specify the author’s name of the work
quoted, the name of the publication in which the quoted work is originally published, andlocation of such quotation (such as the page numbers).
(2) The considerations discussed in the section above shall apply to cartoons and illustrations among others.
(3) When an article, etc. contain a photograph of an individual or information that can identify an individual,
it is necessary to take appropriate actions from the viewpoint of protecting portrait rights and personal
information of the concerned.
(4) When statistical materials and others produced by any national or local government agency, incorporated
administrative agency, or local incorporated administrative agency for the purpose of making themknown to the public are used as explanatory materials in the member’s own publication or otheradvertising, etc., such materials may be reproduced by specifying their source thereof.
Statistical materials, etc. produced by a person other than national or local government agencies,
incorporated administrative agencies, or local incorporated administrative agencies shall be treated in thesame manner as described in items (1) through (3) above.
9. Tie-up Articles, etc.
When an article, opinion, etc. is published by a third party based on a tie-up arrangement with suchthird-party media (e.g., TV, radio, newspaper, magazine) or an Internet site, etc. operated by anothercompany, organization, or person (regardless of whether or not any consideration is paid or received), it isnecessary to pay attention to the following points:(1) Whether or not such article or opinion falls under the category of advertising, etc. concerned with the
Financial Instruments Business.
Based on the fact that persons who have not been registered with the Prime Minister shall not engage
in the Financial Instruments Business, it is essential to examine whether or not such article or opinion
constitutes advertisements, etc. concerned with the Financial Instruments Business, and if confirmed asadvertising, etc. for our Full Member regarding their Financial Instruments Business as a result of suchexamination, the Required Representations for such advertisement as provided for in laws andregulations, etc. shall be indicated.
(2) Whether or not the contents of the article, etc. are correct and proper.
Where a tie-up article or the like is deemed to be advertising, etc. concerning the Financial
Instruments Business, it is imperative to confirm that the contents of such article are correct and properin light of “Part 2. Considerations for Preparing Advertisement, etc. for Investment Trusts; I. General
Provisions.” When the contents of such article, etc. are found to be inappropriate after publication, it isnecessary for the member concerned to take necessary actions, such as requesting correction or deletion
thereof.
10. IR Materials(1) When the IR materials (including videos and explanatory images) prepared by a listed company other－20－

than Full Members are posted on a Full Member’s home page, etc. as an independent page for otherpurpose than solicitation for a financial instruments transaction (securities transaction, etc.), such
publication is not considered to be advertising, etc. In such a case, in order to prevent any arbitrary
provision of information that may be judged, in effect, to be a recommendation of a specific issue,
criteria and policy shall be established in advance with regard to the selection method of the companies
and the type of materials to be published, and then such selection and publication shall be made inaccordance with the criteria and policy established. Moreover, in order to prevent investors fromregarding them mistakenly as advertising, etc. by a Full Member, the following measures may be taken.
(i) When publishing the relevant materials on the homepage of a Full Member, it is recommended to put
the title such as “Company IR Corner” etc. and make such a page independent from the Full
Member’s own homepage by developing a separate window where viewers reach by clicking thebanner advertisement or tab, etc.
(ii) The explanatory text as to the following matters shall be included in an eminent manner.
- The published materials were produced by the company for the benefit of investors and not by themember company. (or materials produced by such company for the purpose of their IR activities).
- The purpose of publication is to provide information and not to solicit investment in the securities.
- Member company does not warrant the accuracy of their content.
- Information provided may change without notice in future or may not be up-to-date.
(iii) Statements such as the following shall not be made on the concerned pages.
- Description to encourage investment (“Time to buy now,” “Recommended issue,” “Select issue,”etc.)- Any description that may influence the investment decision by investors (such as “Undervalued
company,” “Company with earnings upgrade trend,” “Peak profit company,” etc.)- Stock price and dividend yield of the relevant company; rating, opinions, underwriting experiences,and other comments by a Full Member concerned with the relevant company.
(iv) It should be noted that the placement order of those IR materials on the relevant page should bebased on a random or objective standard according to, e.g., a Japanese alphabetical order of company
names, order of company code numbers, or date of production or publication of such IR materials.

(2) When IR materials (including videos and explanatory images) prepared by a listed company, etc. otherthan Full Members are published on such Full Member’s website, etc. for the purpose of soliciting theconclusion of a financial instruments transaction contract (securities transactions), such publication isconsidered to be advertising, etc. In such a case, the following points should be noted:(i) The area for advertising, etc. including the IR materials shall be clearly defined, and in such area, theinvestment company shall place eminently explanatory description to the effect that this area is forthe purpose of publishing IR materials of the issuer companies for the purpose of xx (text such as“reference information for your investment decision”).
(ii) The section prepared by the issuer company and one written by a Full Member shall be clearly
distinguishable.
(iii) The statutory description items concerning advertising, etc. under the FIEA (investment risk,－21－

commission rates, etc. in relation to investment in stocks or bonds) shall be specified in the said area.
(iv) Although investment recommendation, etc. may be included, the Considerations regarding
advertising, etc. for share investments etc. as stipulated in the “Guidelines for Advertising, etc.” shallbe observed.

11. Opinions, etc. of Third Parties
In advertising, etc. conducted by a Full Member, when a third party has expressed an opinion relevant to an
investment decision and such third party has been paid or is promised to be paid for his/her opinion, such fact
shall be disclosed in accordance with the provisions of Article 169 of the FIEA. Provided that, however, suchthird party displays such opinion as an “advertisement” in exchange for the advertising fee (in the event thatsuch content is clearly viewed as advertisement at a glance), such disclosure is considered unnecessary.
12. Advertising, etc. for Professional Investors
When the recipient of advertising, etc. is limited to professional investors, the advertising restrictions of the
FIEA do not apply, and therefore, there is no obligation to inspect advertising under the Rules. However, it isnecessary to ascertain that no false or misleading representation concerning the significant matters are madeand that laws and regulations are properly complied with.

13. Precaution for Preventing Misidentification with Deposits, etc.
In advertising, etc. related to the sale of investment trusts, etc. to be made by a Full Member company who
also engages in deposit-taking business, it is desirable to include a warning to prevent any misidentificationof such investment product with deposit.

14. Notice on Financial Instruments Intermediary Service Provider
Concerning the advertising, etc. related to sales of investment trusts, etc. by a financial instrument
intermediary service provider, it is desirable to indicate that such Financial Instrument Intermediary Service
Provider is to handle the sales.

15. Advertising, etc. on the Internet(1) Any excessively subjective expression that may cause misunderstanding by investors shall not be madefor any “Banner Advertisement” or “Text Advertisement” on websites or any advertisement utilizing
limited space such as in Twitter (hereinafter collectively referred to as “Banner Advertisement, etc. ”).
* In order to avoid any excessively subjective indication that may cause misunderstanding byinvestors, in the Banner Advertisement, etc. for complicated investment trusts similar toover-the-counter derivatives transactions (e.g., investment trusts whose principal is secured only
under certain conditions) where it is prohibited to use representation such as “(conditional)
principal-secured type,” wording like “principal-secured type” shall not be used even as a catchphrase, etc. When the indication like “principal-secured type” is presented in the detailed－22－explanation on the linked page, the definition of and conditions for the principal security may bedescribed in an easily understandable manner, and the risk of failure to satisfy such conditions may
be clearly explained in such a page.

(2) In case of conducting Banner Advertisement, etc. for an individual product or describing the individual
product on Twitter, if Required Representations as stipulated by laws and regulations (hereinafter referred
to as the “Required Representation” in Article 14 below) are displayed on a separate page that isrecognized by the customers to be integral to the page where the relevant advertisement is placed, it isconsidered to have complied with the regulations on advertising, etc. Incidentally, it is considered that theunity will be recognized from the customers’ perspective if such customers can easily move from the
Banner Advertisement, etc. to another page on which the Required Representations are displayed.
However, it is highly unlikely that the unity is recognized by the customers for those that require many
clicks to transition to another page on which the Required Representations are displayed or for those that
require a long scroll down to reach the section in another page where such Required Representations are
displayed. When a video (limited to the one with the identical content as a television commercial, etc.) isdisplayed on the website, corresponding measures to those applicable for a television commercial shall betaken. However, when another video, explanatory materials, or Banner Advertisement, etc. are to be
displayed one after another in turn, it is necessary to display the Required Representation for each display
or to display them on a separate but integral location as described above.
[Public comment Nos. 93-95](3) If, on a member company’s website, (i) the list of products and services is displayed on the first page; (ii)various products or services are displayed; and (iii) the contents of individual products and services are
displayed at the end, and the contents of such individual products and services are displayed, when thecontents of individual products and services as described in (iii) are displayed with the “fees, etc.” or “riskwarning” that are statutory description items on the pages for the contents of individual products andservices, then such display on such website is considered to be basically in compliance with therestrictions on advertising, etc.

[Public comment No. 95]

When only a part of the product attributes (yield, investment benefits, etc.) of an individual product isdisplayed in addition to its product name by using the product logo, other captions, diagrams, or pictureson the Full Member’s website, it is possible to display Required Representation in a prominent place of thesame page (including in the form of electronic files such as PDF) in order to inform the customers of theirintegrity with the relevant product, or to create a link or tag with explanation such as “Details are here” or“Explanation about risk” in a prominent place so that users can easily reach the page where such Required
Representations are displayed. Therefore, such a response is generally considered to comply with therestrictions on advertising, etc. It is necessary to pay attention to the size of letters with respect to risk
warning text.

(4) In the event that materials prepared by another company that do not contain any statutory description－23－

items or Required Representations (e.g., place of prospectus to be delivered) are published on our member
company’s website as the member’s own advertising, etc. (including the case where the member
company’s website has a link to the materials posted on another company’s websites so as to make themavailable for perusal), it may be recommended to display such statutory description items or Required
Representations on the same page containing the relevant advertising, etc. (page of the member company
where such link is pasted) so as to clarify their integrity for customers. Accordingly, such a response isgenerally considered to comply with the restrictions on advertising, etc. and the Guidelines.

[Public

comment Nos. 94, 95](5) When the contents of the financial instruments business are indicated on social media (*) like details ofa specific product, such indication is considered to be equivalent to advertising, etc. In this case, refer to(2) above as to how to present the Required Representation. In addition, although comments made by third
parties such as retweets and follows are generally not considered to be advertisements, etc. made by a Full
Member, if such comments are recognized to be a part of representation made by such Full Member, they
may fall into the classification of advertising, etc. by the relevant Full Member.

[Public

comment

Nos. 15, 16]* In the Guidelines, “social media” means SNS (social network service) such as Facebook and Mixi,
and Twitter.

(6) Affiliate advertisement (*) is not made by Financial Instruments Business Operators, etc. themselves
and in principle is not considered to be advertising, etc. as defined by the FIEA. However, in order toprevent inappropriate affiliate advertising relating to Financial Instruments Business Operators, etc.
themselves or their products and services from being placed, due consideration should be paid to thematters set forth in (i) or (ii) below respectively.
* In the Guidelines, the term “affiliate advertisement” means that a blog or website operator(hereinafter referred to as “Affiliate”) other than Full Members as advertiser (hereinafter referred
to as the “Full Member” in the paragraph (6)) publishes on their sites Banner Advertisement, etc.
of products or services provided by such Full Member, where the success fee pursuant to thepredetermined terms and conditions is paid to such Affiliate by the Full Member in the event thatviewers of the site click such Banner Advertisement, and access the website of the Full Member
via the Banner Advertisement to purchase or make a purchase application for their product orservices. However, when an advertising distribution network (hereinafter referred to as“Network”) is formed by an advertisement distribution agency by assembling multiple websites
serving as advertising media, this shall not apply to Internet advertising in which Banner
Advertisement, etc. selected from those received from the advertisers by the Network program areplaced in the vacant space (advertising space) of the relevant websites of the Network members.
(i) Case where a Full Member concludes a contract directly with an Affiliate (Direct contract)
When a Full Member conducts an affiliate advertisement after concluding a contract directlywith an Affiliate (including the case where a fee is paid for an affiliate advertisement containing a－24－

product ranking, etc. in accordance with the contents of such advertisement), such advertisement
shall be handled as follows as being similar to one’s own advertising, etc.:(a) Prior to the publication of any affiliate advertisement, a Full Member shall take appropriate
measures such as conducting the same examination applicable to advertising, etc. produced by
the member company themselves, concerned with the contents of website on which suchmember places their Banner Advertisement, etc. (hereinafter referred to as “Contents”).
(b) At the time of examining such Contents, if any Content is judged to be “inappropriate” in lightof their own examination standards, the Full Member shall request the Affiliate to amend ordelete such inappropriate Content. If any improvement is not made thereafter, the Full Member
shall take appropriate actions including terminating the contract with such Affiliate.
(c) To develop a link to a landing page by clicking the company’s Banner Advertisement, etc.
pasted on the affiliate advertisement page, and on such landing page, it should be clearly statedto the effect that “the website you are viewing has not been created by our Company” and that“impressions and comments posted on this page are those of the author and not of ourCompany.” On this occasion, it is necessary to ascertain that such warning is clearly describedand placed at an eminent position where it is easy for investors to find.
(d) Endeavor to indicate the Required Representation (such as summary of Financial Instruments
Business Operator, etc. and risk items) as provided for in the FIEA. In this case, the Required
Representation may be published on a landing page linked to the Banner Advertisement, etc.
In the event that a Financial Instruments Business Operator, etc. is deemed to be practicallyengaged in Affiliate advertising, for example, by giving specific instructions to an Affiliate
regarding the content of such advertisement, such affiliate advertising may be regarded as the“Operator’s own advertising, etc. (commission of advertisement production)”. For this reason,
what may be recognized as “Operator’s own advertising, etc.” shall be subject to the sameinspection applicable to other advertising, etc. in accordance with the procedures and standards
established by the member company.
(ii) Case where a Full Member concludes a contract with an Affiliate through ASP (Indirect contract)
When a Full Member conducts an affiliate advertisement through an affiliate service provider(hereinafter referred to as “ASP”) (where a separate contract is entered into between a Full
Member and ASP, and between ASP and an Affiliate), the following actions may be taken.
(a) With regard to the Contents subject to remuneration payment from a Full Member to ASP(regardless of whether or not any remuneration to be actually paid from the ASP to an Affiliate;
the same shall apply hereinafter), such Contents shall be reviewed after the event at the time ofsuch remuneration payment.
If Contents can be checked before the placement of the affiliate advertisement, such Contents
may be checked in advance.
(b) When any Content is recognized as inappropriate at the time of checking, a Full Member shallpromptly request an Affiliate directly or via ASP to modify or delete such inappropriate Content.
If any improvement is not made after the request, the member company shall take appropriate－25－actions that include requesting the ASP to terminate their contract with such Affiliate (*).
* Termination of a contract means that a contract between the ASP and the Affiliate be terminated,or that the ASP prohibits such Affiliate from posting Banner Advertisement, etc. provided by
the Full Member.
(c) To develop a link to a landing page by clicking the company’s Banner Advertisement, etc.
pasted on the affiliate advertisement page, and on such landing page, it should be clearly statedto the effect that “the website you are viewing has not been created by our Company” and that“impressions and comments posted on this page are those of the author and not of ourCompany.” On this occasion, it is necessary to ascertain that such warning is clearly describedand placed at an eminent position where it is easy for investors to find.
(d) Endeavor to indicate the summary of Financial Instruments Business Operator, etc. and risk
items on the landing page that is linked to the Banner Advertisement, etc.
(Note) For the practical treatment of affiliate advertising, refer to the “Q&A on Affiliate Advertising”
by the Japan Securities Dealers Association.

(7) In the event that a Full Member posts or causes a third party (including employees of such Full Member
and their families) to post any “review (Kuchikomi)” information on any “review (Kuchikomi)” site
regardless of whether or not the Full Member bears any advertising expenses or pays rewards, the Full
Member should bear in mind that any display of such “review” information may be deemed to be theiradvertising, etc. Such review site includes any site on the Internet that publishes so-called “reviews” suchas reputation or rumors relating to specific companies, their products and services, etc., including thoseintended for the exchange of the reviews, those developed by companies themselves intended to provide
review information on their products and services, and blogs written by individuals among others. Whensuch review information is regarded as advertising, etc., it is necessary to add the Required Representation,
as well as to comply with the provisions discussed in Part 2. Considerations for Preparing Advertisement,
etc. for Investment Trusts; I. General Provision).
* This does not include acts of employees or their families, etc. of a Full Member who conduct suchact privately without receiving any instruction or request to the effect from the Full Member.
However, based on the fact that it is prohibited for an individual employee to make any advertising,
etc. on the financial instruments business conducted by a Full Member without examination by the
person in charge of advertisement (as defined as Person in charge of screening advertisements
pursuant to Article 5 of the “Rules for Display of Advertisement, etc. and Gifts”), it is necessary toprovide its employees with proper education, etc. and to take actions such as having theinappropriate display deleted or corrected if any inappropriate display is identified.
Moreover, it should be noted that not only websites on the Internet but also publications or
documents containing similar “review” information, even if they are processed or edited in part,may be regarded as advertising, etc. by the Full Member.
For example, the following indications may be considered to be advertising, etc. by the Full
Member when made by themselves or by a third party at their request (whether or not any expense－26－

or reward for such “review” is paid).
- Any indication that is considered to give a favorable rating on the value of such Full Member’s
products, etc.
(“XX of YY (name of such Full Member) is an attractive product to invest in emerging country
ZZ,” etc.)- Any indication that is considered to induce purchase, sale, or any other transaction concernedwith such Full Member’s products, etc.
(“You must buy XX of YY Company.,” etc.)- Any representation that may be mistaken as a rating made by a third party with respect to the
products or services provided by such Full Member;(“No. 1 ranking in the ease of its use for transaction screen: YY Company!”, etc.)
As described above, it is also important to note that, in addition to the act of a Full Member granting
high ratings on their own products, etc., any act of causing low evaluation information on such Full
Member themselves or their products, etc. to be deleted or act of assigning low evaluation to another
Full Member or their products, may be regarded as a misleading advertisement and violate laws andregulations subject to its substance as the act of so-called stealth marketing.

(Note) Refer to the “Issues and Considerations regarding the Act on Unjustifiable Premiums and Misleading
Representations in relation to Consumer Transactions on Internet” (partially Revised on May 9,
2012; Consumer Affairs Agency).

16. Considerations for Advertising, etc. on NISA Accounts
When preparing advertising, etc. for general NISA accounts, junior NISA accounts, and NISA saving
accounts, it is necessary to describe consideration matters(*), etc. based on the system design and objectivesof each account in an easy-to-understand manner so as not to cause customers any misunderstanding.
* Refer to the Comprehensive Guidelines for Supervision of Financial Instruments Business Operators,
etc.; IV-3-1-2 (8) Considerations regarding Solicitation for Transactions Utilizing NISA; (i)Development of system for providing explanations to customers; (b) Explanation on NISA system.

Incidentally, brochures, etc. that describe only the details of NISA system such as “NISA Guide on Tax”
and “NISA Guide on Laws and Systems” do not correspond to the contents of financial instruments
business and therefore, are not regarded to be advertising, etc.

(Note 1) In these Guidelines, Nippon individual savings account for adults (General NISA), Nippon
individual savings account for minors (Junior NISA), and Nippon individual savings accountspecially designed for installment investment by adults (Saving or Tsumitate NISA) are collectively
referred to as the “NISA System.”(Note 2) In these Guidelines, the account for General NISA (General NISA account), the account for Junior－27－

NISA (Junior NISA account), and the account for Saving NISA (Saving NISA account) arecollectively referred to as “NISA accounts.”

II. Investment Trusts, etc.
1. Consideration in Preparing Marketing Materials(1) Required Representations
In making advertising, etc. for an investment trust, etc., the following items shall always be stated:
With regard to private placement of investment trusts, each member company shall refer to theprovisions of this section “II. Investment Trusts, etc.” in their handling.
(i) Statutory description items(a) With regard to fees, etc. among the statutory description items, in addition to purchase orredemption fees (including switching fees), following should be described (hereinaftercollectively referred to as the "Fees, etc.").
- Operation and administration expenses (trust fees)- Amount retained in trust property- Other expenses and fees
When listing Fees, etc. for fund of funds, it is considered necessary to also state Fees, etc.
required for investing in the subject funds (the maximum amount of Fees, etc. payable orsummary of the calculation method thereof may be indicated), and to have the customers
understand the actual expenses to be borne by them in an easy-to-understand manner.
* With regard to the description of Fees, etc. in the list of multiple investment trust productnames without detailed explanations of individual products (those based on which investment
decisions cannot be made), it is considered appropriate to state to the effect that “for the
products in the list, you may be charged the Fees, etc. including investment or liquidation fees
(maximum X.X%), and management and administration expenses (trust fees, etc.) as set forth
for each product.” [Public comment No. 155](b) With regard to losses due to fluctuations in the relevant index among thestatutory description items, following should be included. - Text on price fluctuation risk
- In case of investment trusts denominated in foreign currencies, text on exchange rate risk
* With regard to price fluctuations, price fluctuation factors of invested assets (shares,
yen-denominated public and corporate bonds, etc.) relevant to the concerned investment trust
shall be specifically indicated.
* With regard to the description of risk warning in the list of multiple investment trust productnames without detailed explanations of individual products (those based on which investment
decisions cannot be made), it is considered appropriate to state to the effect that “the productsin the guide may cause you loss due to fluctuations in prices, etc. ”* In the case of investment trusts with currency selection, even if it is denominated in yen, it isnecessary to indicate the exchange rate risk. (The same shall apply not only for the investment－28－

trusts with currency selection, but also for those whose main investment targets are assets
denominated in foreign currency where the exchange rate fluctuations have a possibly direct
effect on the base value of the relevant investment fund.)(c) With regard to the "statement that there is a risk of diversion between the rate of change of such
Leveraged Index and the rate obtained by multiplying the rate of change of the Original Index
by a certain ratio and the reasons therefor" among the statutory description items pertaining to
the acts of financial instruments transaction in relation to the Leveraged Index, etc., it isadvisable to state such matters in an easy-to-understand manner by using charts or the like asnecessary; for example, when stating that "during a period of two or more business days, the rateof increase or decrease of the Leveraged Index does not generally correspond to the certain
factor of the rate of increase or decrease of the Original Index for the same period. If suchsituation continues for a long period of time, the expected investment return may not be
achieved. "In addition, with regard to the “statement that investment in securities related to such
Leveraged Index, may not conform to the medium-to-long term investment objectives and thereasons therefor", it is conceivable to state, for example; “for the reasons described above, suchinvestment may not be suitable for long-term investment as it is designed for capturing return by
the movements of market prices in a relatively short period of time”.
(ii) Name of the investment trust(iii) Method and place of obtaining the prospectus(iv) Principal party of preparing such marketing materials and the statement to the effect that “whenapplying for an investment, please make sure to read the prospectus to be delivered and make yourown decision.”(v) If a closed period is established for the relevant investment trust, the statement to the effect that“during the closed period, liquidation of your investment shall not be allowed.”(vi) If there are any other restrictions applicable for investment or liquidation, statement to that effect.

(2) Matters desirable to be indicated(i) Outline of fund(ii) Matters regarding the offer(iii) Matters regarding redemption(iv) Matters related to cancellation (buy-back) (date of redemption, application procedures, etc. forcancellation (buy-back))(v) Matters related to taxation(3) Specific Considerations
Specific considerations when making advertising, etc. investment trusts, etc. are as follows:(i) Indicating method and place of obtaining the prospectus
Even if there are multiple parties to provide the prospectus, it is not necessary to indicate the－29－company names, etc. of all parties. Company name, etc. of only a single party is required.
In this case, it is possible to indicate such information as “Contact XX company for prospectus”
or “Company xx for any inquiry.”(ii) Evaluation by third party
When presenting an evaluation of such investment trust, etc. made by a third-party organizationsuch as a rating agency and others, the name of such organization and the date for evaluation shallbe stated, together with a statement to the effect that “such evaluation is based on an analysis ofpast performance over a certain period of time and does not guarantee any future performance orelse.”(iii) Reference to report by a third-party organization, etc.
(a) When preparing a document quoting an evaluation, analysis, comment, or others on therelevant investment trust, etc. produced by a third-party organization as marketing materials, thename of such organization, the production date of such document, and subject period overwhich the relevant evaluation, etc. was made shall be stated, together with the statement to theeffect that “such evaluation, etc. do not guarantee any future performance, etc.”.
(b) In the case of using, as marketing materials, a document and others containing the evaluation,
analysis, etc. concerned with the relevant investment trust, etc. prepared by a third-party
organization, an indication shall be made to the effect that “such evaluation is based on an
analysis of past performance over a certain period of time and does not guarantee any future
performance, etc.”(iv) Presentation of evaluation, analysis, etc. on market environment, etc.
When presenting an evaluation, analysis, etc. of the market environment, etc. related to theinvestment subjects of the relevant investment trust, etc. obtained from a research institution, theobjective facts, data, and others that are the basis for the evaluation or analysis by such institution
shall be presented, together with the name, etc. thereof, in addition to paying attention toexpressing the contents in an objective manner. In addition, a statement to the effect that “future
investment performance, etc. are not guaranteed.” shall be included.
(v) Presentation of investment method, etc.
When explaining price fluctuation factors, etc. caused by the management method or assets subject
to investment concerned with such investment trust, etc., objective and plain expressions shall be
used. Furthermore, when model, etc. are to be displayed, the calculation examples and others on
which such model is based shall be added for the purpose of objectivity, and any representationthat might cause misunderstanding by investors shall not be used.
(vi) Presentation of investment performance, etc.
(a) To indicate the data for a period lasting not less than the preceding three (3) years (for a productwith track record less than three years after its establishment, application of the continuous
period after its establishment), and refrain from making any indication that could give rise to
misunderstanding by investors by emphasizing a specific part of the investment performance. In
this case, together with the calculation period of such performance, a statement to the effect that－30－

such historical performance is not to guarantee any future performance shall be made.
Incidentally, the annualized return of an investment trust, etc. with less than six (6) months oftrack record after its initial establishment shall not be indicated.
(b) When indicating an investment performance of an open-type bond investment trust that
distributes daily based on actual performance or investment trusts of similar management styledespite not conducting daily distribution, the annualized yield based on the performance of
preceding seven days (or based on monthly average performance) shall be indicated. In suchcases, together with the calculation period of the said performance, the fact shall be indicated tothe effect that such performance has been obtained in the past and does not guarantee any future
performance, etc.
(c) When presenting actual investment performance, etc., it is necessary to clarify whether suchinvestment performance, etc. are before or after tax. In addition, when any fees, etc. are payableat the time of cancellation, it is necessary to clarify whether such investment performance, etc.
are before or after such fees payable.
(d) When presenting actual investment performance, etc. for investment trusts denominated inforeign currencies, the currency pertaining to such investment performance, etc. shall be
disclosed. When such performance is presented in yen, the exchange rate applied shall be
disclosed.
(e) When comparing the past investment performance with the market index, etc., the name ofsuch index, etc. shall be disclosed. When an original synthetic index, etc. is used, its calculation
formula and the basis for such calculation shall also be disclosed.
(vii) Indication of distributions(a) It should be noted that some part or all of the distribution may constitute a partial refund of theprincipal.
* When indicating on special distribution in advertising, etc. to be produced after theenforcement of the partial revision to the “Rules on Investment Reports, etc. Pertaining toInvestment Trusts and Investment Corporations” (after June 1, 2012), it is desirable todescribe “special distribution” or “principal refund (special distribution)” as is the case withthe description in investment management reports and prospectus for delivery.
(b) When indicating distribution, considering the movements of the base value inclusive of such
distribution during the calculation period subject to distribution, due attention should be paid sothat the investors can appropriately judge the actual investment performance of such investment
trust.
*Refer to the section (xiii) Indication on monthly distribution type and currency selection typeof investment trusts when indicating for the monthly distribution type of trust.
(c) To expressly indicate whether such distribution amount is before or after tax.
(d) It should be noted so as not to cause the investors misunderstanding that the indicateddistribution of the past is also to be received in future by emphasizing excessively the pastrecord of distribution payment.
－31－

For example, a notice shall be given to the effect that “depending on the operational results,
the distribution amount may change or the distribution may be suspended.”(viii) Presentation of investment policy, etc.
When presenting the future investment policy, etc. of the fund manager of such investment trust,etc., objective data, etc. with the sources thereof on which the judgment of such fund manager isbased shall be indicated while taking note to refrain from making excessively arbitrary expression,as well as giving a caution to the effect that such investment policy may change due to change inthe future market environment, etc.
(ix) Indication of name, etc. of investment trust, etc.
The name of such investment trust, etc. as mentioned in the securities registration statements shallbe indicated. When using any nickname of the investment trust, etc., use of such nickname shall belimited to the one mentioned in the securities registration statements.
(x) Indication of investment trust with security for principal (excluding complex investment trusts
similar to over-the-counter derivative transactions)
For an investment trust that indicates the security of investment principal in the prospectus(excluding complex investment trusts similar to over-the-counter derivative transactions),
attention shall be paid so as not to mislead customers with respect to such security of principal, forexample, by describing the definition and conditions of such security.
(xi) Indication on complex investment trusts similar to over-the-counter derivative transactions
When making representation regarding investment trusts as provided for in Article 2 of the Rules
on Complex Investment Trusts Similar to Over-the-Counter Derivatives Transactions, it should be
noted that the representations shall comply with the provisions of the said Rules and their by-laws
so as not to cause customers any misunderstanding as to the safety of the principal.
(xii) Representations of leveraged investment trusts
In relation to the leveraged investment trust as prescribed in Article 4, Paragraph 3 of theRegulations for Direct Offering, etc. of Beneficiary Certificates, etc., when a Full Member needs
to receive a “Confirmation Letter” and advertising, etc. is prepared as explanatory material forsuch “Confirmation Letter,” the necessary matters shall be indicated by referring to Article 6 of theRules on Complex Investment Trusts Similar to Over-the-Counter Derivatives Transactions.
(xiii) Indication on monthly distribution type and currency selection type of investment trusts
When indicating for a monthly distribution type of investment trust or a currency selection type ofinvestment trust, respecting objectives of the Notices of the Japan Securities Dealers Association,“Development of system for providing explanations at time of sales and solicitation of investment
trusts” dated July 22, 2011, and “Provision of reference materials in brochure for monthly
distribution type or currency selection type of investment trusts” dated August 2, 2011, thefollowing matters shall be considered from the perspective of enhancing the provision system of
explanations.
(a) Explanatory description regarding distribution of monthly distribution type of investment trust
When making an explanation about distribution of a monthly distribution type of investment－32－

trust, it is desirable to indicate the following matters in accordance with the contents of theconcerned advertising, etc. so as not to mislead the investors into believing that such
distributions are the same as interest earned on deposits with reference to the Considerations on
Distribution stipulated in the prospectus. At the time of display, attention should be paid to makethe display as easy to understand as possible by using charts, tables, graphs, etc.
- Unlike interest earned on deposits and savings, distributions are paid out of the net assets of theinvestment trust.
- Distribution may be paid in excess of income generated during the relevant accounting period.
- Depending on the purchase price by a beneficiary, part or all of the distribution could be apartial repayment of the principal for all practical purposes.
Explanatory description regarding income of currency selection type of investment trust
When presenting an explanation of income concerned with a currency-selection type ofinvestment trust, it is desirable to indicate the following matters in accordance with the contentsof the concerned advertising, etc. regarding the instances where income, loss, or cost may be
incurred with reference to the descriptions in the prospectus. At the time of display, attention
should be paid to make the display as easy to understand as possible by using charts, tables,graphs, etc.
- Management structure of currency selection type of investment trusts (image of fund flow)- Relationship between profit and loss due to an increase or decrease in prices of investment
assets, premium (profit arising from interest rate difference), or cost (expense due to interest
rate difference), and foreign exchange gain or loss(c) Indication concerning sales commissions
When indicating on the sales commissions for monthly distribution type and currency
selection type of investment trusts, it is desirable to indicate as much as possible in a mannereasy for customers to understand in accordance with the contents of such advertising, etc. by not
only indicating the commission rate but also the method of collecting such commissions andexamples of actual commissions to be paid according to the investment amounts.

(4) Display of product classification graph based on risk return profile
When a Full Member or a distribution company uses a product classification graph based on a risk
return profile produced by the member company or distribution company of such investment trust,etc., since such classification is not an evaluation obtained from a third-party organization such as arating agency, etc., in order to avoid misunderstanding of its objectivity, indication such as follows
shall be required: “This classification graph has been produced by us (or XXX Company) based on
the scope of investment instructions stated in the investment trust contract and will not guarantee any
future investment performance, etc. ”
When using a product classification graph based on a risk return profile prepared by anothercompany, approval as to its use shall be obtained from such company.
When creating a product classification graph based on a risk return profile, a Full Member shall－33－

follow the specific procedures set forth in the section IV of the Guidelines.

(5) Indication as to the provision of gift, etc.
When indicating the provision of gift, etc., it should be noted that such indication shall not cause any
misunderstanding on the product attributes of the investment trust or be excessively inciting forinvestment thereof.

2. Considerations for using marketing materials, etc.
(1) Medium to be used
There are no restrictions on the medium in which the marketing materials may be used.

(2) Use of explanatory materials, etc.
Reference materials, etc. to be used in explanatory meetings, etc. for investors, may also be
categorized as marketing materials depending on the contents or method of use thereof.

(3) Use after submission of securities registration statements
Marketing materials may be used after the submission of securities registration statements regardlessof the effective date concerned with such statements.

(4) Use of management reports, etc. of an investment trust prepared by a Full Member
When delivering to customers a management report, etc. of an investment trust prepared by a Full
Member as advertising, etc., that does not indicate any of the Required Representations, it isconsidered that such Required Representations are indicated if the said report, etc. is delivered
together with other materials indicating such Required Representations.

[Public

comment

Nos. 53, 258]

(5) Use of explanatory materials on monthly distribution type and currency selection type of investment
trustsAny indications shall not be regarded advertising, etc. as long as such indications are made within thescope as described in the “Provision of reference materials in brochure for monthly distribution typeor currency selection type of investment trusts” dated August 2, 2011, by the Japan Securities Dealers
Association. However, it should be noted that when incorporated in other materials or used withadditional contents, such indication may amount to advertising, etc. [Public comment No. 53,“Answering the Questions on the Financial Instruments and Exchange Act,” Q6]

3. Considerations when displaying rankings
When ranking is displayed in advertising, etc. for investment trusts, it is necessary to pay attention to thefollowing matters so as to avoid any misunderstanding:(1) Selection Criteria－34－

To display the selection criteria of the sample products as to the ranking with attention paid to thefollowing points:(i) When displaying the ranking title, avoid using a misleading title as to the selection criteria thereof.
(ii) To indicate the scope of selection for such ranking. In particular, if any investment trust is
excluded from the ranking list despite being within the scope of selection criteria, such fact shall beclearly indicated.
(Example) The selection range for the purchase-amount ranking is all investment trusts provided
by us. However, some investment trusts such as MRF are excluded from the ranking.
(iii) To indicate the period of time to which the ranking is relevant.

(2) Other Considerations
Any other matters requiring attention shall be indicated as necessary.

III ETF (Exchange Traded Fund), REIT (Real Estate Investment Trust), and Infrastructure Fund
1. General Introduction
Unlike other investment trusts, investments in ETF (Exchange Traded Fund), REIT (Real Estate Investment
Trust), and infrastructure fund are normally made by trading on Financial Instruments Exchange, etc. likeshares instead of by offering or placement. Considerations for advertising, etc. for ETF, REIT, andinfrastructure fund by Full Members are as follows:
Advertising, etc. at the time of offering or secondary placement shall be made through the aforementioned
procedures in the section “II Investment Trust, etc.” for ETF while such advertising, etc. for REIT andinfrastructure fund shall comply with the provisions of the following “2. Advertising, etc. for offering or
secondary placement of REIT and Infrastructure Fund.”

2. Advertising, etc. for offering or secondary placement of REIT and Infrastructure Fund
(1) Required Representations
When making advertising, etc. for public offering or secondary placement of a REIT or
infrastructure fund using marketing materials, the following items shall always be indicated:(i) Statutory description items
With regard to losses due to fluctuations in the relevant index among the statutory description
items (refer to the Part 1. Summary of Laws and Regulations; 1. Definitions of Advertising, etc. (*2) “Particulars to be indicated in advertising, etc.”; the same shall apply hereinafter.), following
should be indicated:- Text on price fluctuation risk
- Text on exchange rate risk in case of securities denominated in foreign currencies(ii) Name of the investment corporation(iii) Method and place of obtaining the prospectus (only when such prospectus is produced)－35－

(iv) Statement to the effect that investment decisions should be made after the perusal of theprospectus (only when such prospectus is prepared)(2) Matters desirable to be indicated(i) Matters concerning the application guidelines (secondary placement) in the prospectus (limited
to the instance when producing the prospectus)(3) Specific Considerations(i) Indicating method and place of obtaining the prospectus
Even if there are multiple parties to provide the prospectus, it is not necessary to indicate thecompany names, etc. of all parties. Company name, etc. of only a single party is required.
In this case, it is possible to indicate such information as “Contact XX company for prospectus”
or “Company xx for any inquiry.”(ii) Indication of earnings forecast, etc. disclosed by the issuer of such investment securities
In the event that the issuer of such investment securities presents, as advertising, etc., earning
forecasts disclosed pursuant to the regulations of the relevant Financial Instruments Exchange andan Authorized Financial Instruments Firms Association, such issuer shall also state to the effectthat the concerned performance forecasts are disclosed by the issuer themselves, together with theassumptions that constitute a basis for the relevant forecasts (e.g., summary of accounts or press
release dated DD/MM/YY), as well as the fact that such forecasts do not guarantee any future priceperformance, etc.
(iii) Evaluation or analysis by a member company or a third party
Not to present the valuation or analysis of the relevant investment securities by the member
company or any third party.
(iv) Advertising, etc. for the provision of gift, etc.
No representation shall be made as to the offering of any gifts, etc. (including a prize competition)
for any individual investment securities.

(4) Introduction of specific examples
An advertisement that indicates the following items without error (including so-called tombstone
advertisement) by extracting the relevant descriptions from the prospectus shall not be deemed to bea false or misleading indication in general. However, it should be noted that if any other description
than those listed in (i) and (ii) below is combined in the indication or subject to the font size, etc. ofthe letters used, such an advertisement may be classified as a false or misleading indication.
When preparing so-called “tombstone advertising,” refer to the items listed in (i) and (ii) below.
Separately, when preparing the “Application Guidelines” to be used for a secondary placement that
does not require the production of a prospectus, pertinent matters shall be selected from those listedin (i) and (ii) below and indicated.
(i) Required Representations(a) Statutory description items－36－

With respect to losses caused by index fluctuations among the statutory description items,
following should be indicated:- Text on price fluctuation risk
- Text on exchange rate risk in case of securities denominated in foreign currencies(b) Name of the investment corporation(c) Method and place of obtaining the prospectus (if the prospectus is not to be produced, address
and telephone number, etc. of the relevant business office)(d) Statement to the effect that investment decisions should be made after the perusal of theprospectus (only when such a prospectus is prepared)(e) Statement to the effect that a prospectus is not produced (limited to the instance where theprospectus is not to be produced)(ii) Examples of additional indications other than (i) above(a) Product code;(b) Relevant Exchange;(c) minimum unit required for investment;(d) book building (declaration of investment intention) period;(e) Date of determining provisional conditions,(f) Offer price (possibly provisional price);(g) Number of units on offer;(h) Offer period;(I) Scheduled date of listing or delivery date (commencement date of trading);(j) Underwriting syndicate members;(k) Use of funds raised;(l) Explanation regarding any lock-up provision; and(m) Description of book building procedures and considerations thereof.

3. Representation concerned with ETF(1) Required Representations(a) When preparing any advertising, etc. for ETF, the following items shall always be indicated:(i) Statutory description items
With respect to losses caused by index fluctuations among the statutory description items,
following should be indicated:- Text on price fluctuation risk of such ETF itself- Text on exchange rate risk in case of securities denominated in foreign currencies* With regard to the price fluctuation risk, it is considered desirable to state that there is a pricefluctuation risk due to the movements of the associated index, etc. in addition to the pricefluctuations of relevant ETF itself.
－37－

Where it is difficult to identify financial indicators such as stock prices, interest rates, foreignexchange rates, commodity prices, etc., that are likely to affect the relevant index from theproduct name or the name of linked index, it is considered desirable to state the type of relevant
index (e.g., stock index, interest rate index, bond index, exchange rate index, commodity priceindex, etc.).
* When referring in advertising, etc. to the product attributes of an ETF whose underlying assets
are bonds, it is considered desirable to state the pertinent credit risk as appropriate.
(b) With regard to the "statement that there is a risk of diversion between the rate of change of such
Leveraged Index and the rate obtained by multiplying the rate of change of the Original Index
by a certain ratio and the reasons therefor" among the statutory description items pertaining to
the acts of financial instruments transaction in relation to the Leveraged Index, etc., it isadvisable to state such matters in an easy-to-understand manner by using charts or the like asnecessary; for example, when stating that "during a period of two or more business days, the rateof increase or decrease of the Leveraged Index does not generally correspond to the certain
factor of the rate of increase or decrease of the Original Index for the same period. If suchsituation continues for a long period of time, the expected investment return may not be
achieved. "In addition, with regard to the “statement that investment in securities related to such
Leveraged Index, may not conform to the medium-to-long term investment objectives and thereasons therefor", it is conceivable to state, for example; “for the reasons described above, suchinvestment may not be suitable for long-term investment as it is designed for capturing return by
the movements of market prices in a relatively short period of time”.
(ii) Fund name (If there is a product with a similar name, state the fund code, etc. in order to avoid any
confusion.)(iii) Name of the index etc. to be linked (If the name of the linked index etc. is obvious by the fundname, it may be omitted.)(iv) In case of a physical commodity-based ETF, such fact shall be indicated.

(2) Matters desirable to be indicated(i) Financial Instruments Exchange or Foreign Financial Instruments Exchange on which the ETF islisted(ii) Investment Policy(iii) Details of linked Index, etc.
(iv) Affiliated corporation of the fund (Management Company, Trustee Company, etc.);(v) Distribution policy(vi) Matters regarding expenses of the fund (trust fees, etc.)(vii) Matters regarding taxation－38－

4. Considerations concerning ETF(1) Considerations concerning the representations of ETFs that invest in linked bonds and OTC derivativetransactions
An ETF investing in linked bonds and OTC derivative transactions has a credit risk related to theissuers of the linked bonds and the counterparty of the derivative transactions in which such ETF
invests, as well as a price fluctuation risk arising from fluctuations in the price of such ETF itself andthe linked Index.
Since the homepage, etc. of the Financial Instruments Exchange on which such ETF is listed has
an explanatory page regarding credit risk (hereinafter referred to as the “Explanatory Page”), it isdesirable to display a useful information (such as the URL address of the Explanatory Page), when
making advertising, etc. for explaining the product attributes of such ETF.

(2) Considerations regarding the representations of ETFs linked to an enhanced index, leveraged index, orinverse index
If investment is made without investors’ full understanding of the product attributes and risks inrelation to the ETFs linked to the enhanced index, leveraged index, or inverse index, such investors
may experience unexpected loss or fail to gain expected return as a result of the price fluctuations
unanticipated by them.
In creating advertising, etc. describing the product attributes of such ETFs, in addition to theindication explaining the product attributes of the relevant ETF in such advertisement, it should beconsidered to introduce Explanatory Pages, etc. (its URL address, etc.) provided on the homepage,etc. of the financial instruments exchange on which such ETF is listed.
In case of advertising an ETF linked to the leveraged or inverse index, it should be noted that thematters set forth in (b) of "3. Representation concerned with ETF; (1) Required Representation, (i)Statutory Description Items" must be stated as statutory description items.

5. Representation concerned with REIT
(1) Required Representations(i) Statutory description items
With respect to losses due to index fluctuations among the statutory description items, following
should be indicated:- Text on price fluctuation risk

With regard to the price fluctuation risk, it is required to state that there is a risk of damage to theinvestment principal due to the price and/or profitability fluctuations of the real estate assets underinvestment in addition to the price fluctuation risk of relevant REIT itself.
(ii) Name of investment corporation(iii) Type of main investment object (e.g., office buildings, commercial facilities, etc.)－39－(2) Matters desirable to be indicated(i) Financial Instruments Exchange or Foreign Financial Instruments Exchange on which the ETF islisted(ii) Investment Policy(iii) Details of the investment objects(iv) Details of risk(v) Affiliated entities of the trust (Asset Management Company, Administrative Agent, Custodian,etc.)(vi) Distribution policy(vii) Matters regarding expenses of trust (management fees, etc.)(viii) Matters concerning taxation

6. Representation concerned with infrastructure fund(1) Required Representations(i) Statutory description items
With respect to losses due to index fluctuations among the statutory description items, following
should be indicated:- Text on price fluctuation risk

With regard to the price fluctuation risk, it is required to state that there is a risk of damage to theinvestment principal due to the price and/or profitability fluctuations of the infrastructure assets
under investment in addition to the price fluctuation risk of the relevant infrastructure fund itself.
(ii) Name of fund(iii) Type of main investment objects (e.g., renewable energy power generation facilities, right tooperate public facilities, etc.)(2) Matters desirable to be indicated(i) Financial Instruments Exchange or Foreign Financial Instruments Exchange on which the ETF islisted(ii) Investment Policy(iii) Form of holding assets by investment corporation (direct holding, indirect holding)(iv) Details of investment assets(v) Details of risk(vi) Affiliated entities of the fund (Asset Management Company, Operator, Administrative Agent,
Custodian, etc.)(vii) Distribution Policy(viii) Matters regarding expenses of fund (management fees, etc.)(ix) Matters regarding taxation (*)* Under the taxation system as of November 2015, with respect to the infrastructure fund where the－40－

investment corporation directly owns renewable energy power generation facilities, this item shall
include matters related to the application of corporate taxation system to the fund, including the factthat tax on the investment corporation may be applied in the future due to the temporary measuresapplicable to the conduit investments.

7. Considerations for REIT and Infrastructure Fund
(1) Indication of “Select Issue,” etc.
When conducting advertising, etc. for REITs or infrastructure funds in regular publications,
pamphlets, leaflets, websites, etc. as “Select Issue” selected by the member company, the indicationof “Select Issue,” etc. shall be made with reference to the provisions of “Guidelines for Advertising,etc.; II. Shares 2. Advertising, etc. on Secondary Market, (1) Introduction of individual companies,(iii) Considerations regarding the expression of the Select Issues, etc., (a) Large-volume sales
recommendation, etc.” by the Japan Securities Dealers Association so as not to fall under the
category of Large-volume sales recommendation or “uniform and intensive recommendation of
specific securities by providing subjective or arbitrary information” as prescribed in Article 12,
Paragraph 1 of the “Rules Concerning Solicitation for Investment and Management of Customers,
etc. by Association Members” by the Japan Securities Dealers Association. The same shall apply toadvertising, etc. regarding distribution.

(*) <Reference>
By Japan Securities Dealers Association, “Guidelines for Advertising, etc.;
II. Shares 2. Advertising, etc. on Secondary Market; (1) Introduction of individual companies (iii)
Considerations regarding the expression of the Select Issues,” etc.
(a) Large-volume sales recommendation, etc.
When conducting advertising, etc. for REITs or infrastructure funds in regular publications,
pamphlets, leaflets, websites, etc. as “Select Issue” selected by the member company, it shall bemade with consideration that the formation of fair prices shall not be impaired by the large-scalepurchase of such specific securities, resulting in a Large-volume sales recommendation as definedin Article 117, Paragraph 1, item (xvii) or (xviii) of the Order on Financial Instruments Business,
which regulates excessive recommendation to be made to an unspecified and large number ofpeople for a small number of specific products, or “uniform and intensive recommendation of
specific securities by providing subjective or arbitrary information” as prescribed in Article 12,
Paragraph 1 of the “Rules for Solicitation of Investment by Association Members, Customer
Management, etc.” (hereinafter referred to as “Rules for Investment Solicitation) by the Japan
Securities Dealers Association. In particular, when it is considered highly probable that thedefinition of large-volume sales recommendation or uniform and intensive recommendation isrelevant in light of the medium and the period of time (size of prospective audience), contents ofthe display (whether or not such indication contains only objective facts or subjective opinion aswell), the number of securities to be advertised and their liquidity, the number of people who－41－

provide advertising, etc., the expression like “Select Issue” shall not be used.
For example, advertisement in newspaper, radio, and television will be displayed to an
extremely large number of people, and in consideration of the space and time for such display, it isconsidered inappropriate to use an expression such as “Select Issue,” etc. In addition, with regard
to print media such as magazines, etc., when it is considered highly probable that the definition oflarge-volume sales recommendation or uniform and intensive recommendation is relevant in lightof the number of copies in circulation, publication period, display space, and so on, expressions
such as “Select Issue” shall not be used.
Similarly, with regard to websites, etc. on the Internet (including those available only forspecific members), taking into account the location and period of publication, the number of users,
the ease of access, contents of the display, etc., when it is considered highly probable that thedefinition of large-volume sales recommendation or uniform and intensive recommendation isrelevant, expressions such as “Select Issue” shall not be used.
The same shall apply to advertising, etc. regarding the shareholder benefit plan.
When using the expression “Select Issue” and the like in advertising, etc., considering the media
used and the number of target audience for such advertisement, it is recommended to indicate in
the relevant advertisement, etc. in a plain language that the final investment decision should bemade by investors themselves as appropriate in addition to stating the reason and criteria for
selecting such “Select Issue.”(2) Confirmation of existence of any sensitive and undisclosed corporate information, etc.
Advertising, etc. shall not be conducted unless the Sales Inspection Division has confirmed inadvance the existence of sensitive and undisclosed corporate information.

(3) Prohibition of providing gifts, etc. in relation to individual fund/trust
No representation shall be made as to the offering of any gifts, etc. (including a prize competition) for
any individual REIT or infrastructure fund.

(4) Representation concerned with yields
When indicating the distribution yield of a REIT or an infrastructure fund, such yield shall be
indicated pursuant to the “Guidelines for Advertising, etc.; II. Shares 2. Advertisement, etc. on
Secondary Market; (1) (ii) (e) *Considerations” by the Japan Securities Dealers Association.

* Corresponding part of the “Guidelines for Advertising, etc.” of Japan Securities Dealers
Association(e) Matters regarding the indication, etc. of distribution- Displayed in monetary amount (yen) per share (distribution ratio may also be indicated).
- In case of displaying the distribution ratio, the relevant share price and distribution amount as
the basis for such calculation shall be included.
－42－

- If such distribution amount is as expected, that fact and the person who calculated such
estimate (e.g., issuer company, etc.) shall be indicated.
(Note) Regarding the shareholder benefit plan, any benefit shall not be combined with the
distribution so as to include such benefits in calculating the distribution ratio. In
addition, the monetary amount derived from monetizing such benefits and the
distribution amount shall not be combined for an indication.

(Example) “Meal voucher of 2000 yen per 1,000 shares”; permitted“xx% per annum when converting a meal voucher of 2000 yen into the yield”;
not permitted

IV Preparation of Product Classification according to Risk Return Profile of Investment Trusts, etc.
In soliciting for offering, etc. of investment trusts, etc., from the viewpoint of assisting investors tounderstand that the investment trusts, etc. are risk products and that the degree of risk varies depending on
the type of products, the investment trust management company, etc. may, at its own responsibility, produce
a product classification chart as the supplementary material to a prospectus according to the following
procedures and indicate to the investors the relevant classification of its investment trust, etc. subject to such
solicitation for offering, etc.
When preparing such a classification chart, the following texts shall be included: “The positioning of each
investment trust described in the chart indicates the degree of risk inherent to such investment trust, etc., thatis anticipated by the investment trust management company in its management thereof, and does notguarantee any future performance or else” and “This material is prepared for marketing purposes and theprospectus must be perused prior to any investment decision.”
For the purpose of preventing investors from misunderstanding, any product classification chart shall notsummarize in a single chart various investment trusts, etc. managed by multiple investment trust
management companies, etc.

(1) Preparation proceduresSpecific procedures for creating a product classification chart based on risk return profile of investment
trust, etc.
(i) Name and description of each group
Investment Trusts, etc. are classified into the following five groups (see Attachment).
Group I: Focus on Stable Yield Income
Fund managed with the aim of securing stable yield. Accordingly, fluctuation in the basevalue of the fund is extremely limited despite no guarantee provided for the principal.
Group II: Pursuit of Yield Income
Fund managed with the aim of pursuing higher yield. Accordingly, fluctuation in the base－43－

value of the fund is limited.
Group III: Balanced Pursuit of Capital Gain and Yield Income
Fund managed with the aim to pursue both capital gains and yield income. Accordingly,
base value of the fund may fluctuate not insignificantly.
Group IV: Pursuit of Capital Gains
Fund managed with the aim of actively pursuing capital gains. Accordingly, base value ofthe fund could fluctuate significantly.
V Group: Aggressive Pursuit of Capital Gains
Fund managed with the aim of aggressively pursuing capital gains. Accordingly, basevalue of the fund could fluctuate in a quite volatile manner.

－44－

(2) Attachment+ Return -Pursuit of Capital Gains

Aggressive Pursuit ofCapital Gains

Balanced Pursuit of Capital
Gains and Yield Income
Pursuit of Yield Income

Fund managed with the aim of

Focus on Stable Yield
IncomeFund managed with the aim ofFund managed with the aim ofpursuing higher yield.

securing stable yield.

Accordingly, fluctuation in the

Accordingly, fluctuation in thebase value of the fund isbase value of the fund islimited.

extremely limited despite noFund managed with the aim of

aggressively pursuing capitalFund managed with the aim to

actively pursuing capital gains.

gains.

pursue both capital gains andAccordingly, base value of theAccordingly, base value of theyield income.

fund could fluctuate

fund could fluctuate in a quite

Accordingly, base value of thesignificantly.

volatile manner.

fund may fluctuate notinsignificantly.

The higher a fund is located, theguarantee provided for the
principal.

The closer to the right a fund is located, the greater
the fluctuation of the fund’s base value

37

Risk

Supplementary Provision
The revised Guidelines shall come into effect on May 1, 2004.

Supplementary Provisions
1. This amendment shall come into effect on October 13, 2006.
2. Advertising, etc. to which the revised provisions are applicable shall be those newly planned and produced
after our member companies have promptly established the internal structure according to such revision.

Supplementary ProvisionThis amendment shall come into force on 17 May, 2012.

Supplementary ProvisionThis amendment shall come into effect on February 21, 2013.

Supplementary ProvisionThis amendment shall come into effect on December 12, 2013.

Supplementary ProvisionThis amendment shall come into effect on July 15, 2014.
* The amended provisions are as follows:(1) Amendment to heading of Part 2. I. Article 2. (1) and establishment of paragraph (2).
(2) Amendment to Part 2, I. Article 6(1) and (2), and the heading of Article 8.
(3) Previous provisions of Part 2. I. Article 9 have been amended and incorporated in 8 (4), and Article 9 has been newly
established.
(4) Amendment to Part 2. I. Article 14 (2), (6) (i) (c), and (ii) (c), and establishment of paragraph (7).

Supplementary ProvisionThis amendment shall come into force on 12 November, 2015.
* The amended provisions are as follows:(1) Establishment of Part 2, I. Article 2(1) (iii). Moving down previous item numbers (iii) through (vi). Addition toreference. Establishment of Article 15.
(2) Establishment of Part 2, II. Article 3.
(3) Amendment to heading of Part 2, III. Amendment of 1 and 2. Establishment of Article 6.
Previous Article 6 is renumbered and the heading revised. Amendment of (1), (3) and (4) of 7.

Supplementary ProvisionThis amendment shall come into effect on January 14, 2016.
* The amended provisions are as follows:(1) Articles 1 and 15 of Part 2, I. have been amended.

－38－

Supplementary ProvisionThis amendment shall come into effect on December 13, 2018.
* The amended provisions are as follows:(1) Amendment to Part 2, I., 2, (iii), 6 and 15.

Supplementary ProvisionThis amendment shall come into effect on September 9, 2021.
* The amended provisions are as follows:(1) Amendment to Part 1, Articles 1(iii)(d), 2(iv), 5 (3) and 6. Amendment to the <Reference>, Article 4 (2)(iii) and (iv):
Applicability of Advertising, etc.
(2) Amendment to Part 2, I. Article 6. Establishment of Article 10. Previous Articles 10 through 16 have been renumbered.
(3) Amendment to Part 2, III. Article 7(1).

Supplementary ProvisionThis amendment shall come into effect on January 24, 2022.
* The amended provisions are as follows:(1) Establishment of (2) (*2) (iii)(e) and (5) (viii) of Part 1; Article 1(2) Amendment to Part 2, I. Article 4.
(3) Establishment of Part 2, II. Article 1 (1) (i) (c).
(4) Establishment of Article 3 (1) (i) (b) and Amendment to Article 4 (2), of Part 2, III.

－39－

<Reference>

Comparing Investment Performance, etc. of Funds in Marketing Materials
Established on September 6, 2002

I. The Sales Marketing Committee has had repeated discussions on “Comparison of funds’ investment
performance with the market index, etc.” and “Comparison of investment performance among funds” to be
published in the marketing materials that are investment solicitation materials other than the prospectus forinvestment trusts, etc., and has generally decided on their handling as follows taking into account theopinions of the authorities concerned.

1. Entries in the securities registration statements (prospectus) are not necessary.

2. When comparing the investment performance of the fund with the market index and the investment
performances among the funds,(1) It is necessary to clearly state product characteristics of each fund; and(2) In order not to give investors a misleading impression, the purpose of such use (or production) shallbe clearly stated.
For example, a statement to the effect that the purpose of use (production) is to assist investors’
investment selection in their asset management for such investors to understand the effectivenessof diversified investment in various funds.

II. In accordance with the basic concept mentioned above, each company hereto shall make its own decision on
its responsibility with full recognition of its relevance to the Act against Unjustifiable Premiums andMisleading Representations.

－1－Guidelines on Accountability of Investment Trust Management Company pursuant
to the Act on Provision of Financial Services
Established on December 8, 2000
Revised on January 19, 2007
Revised on September 21, 2007
Revised on September 19, 2008
Revised on March 19, 2009

I. Purpose of the Guidelines
This Guidelines indicate practical examples and considerations in exercising accountability required offinancial instrument distributors, etc. as provided for in the Act on Provision of Financial Services (Act No.
101 of 2000; hereinafter referred to as the “Financial Instruments Sales Act”) when an investment trust
management company (entity as prescribed in Article 2, Paragraph 11 of the Act on Investment Trusts andInvestment Corporations: Act No. 198 of 1951; the same shall apply hereinafter ) engages in offerings, etc.
(offering or private placement; the same shall apply hereinafter) of the beneficiary certificates of aninvestment trust established by such investment management company.

II. Summary of Accountability pursuant to the Financial Instruments Sales Act
1.

Under the Financial Instruments Sales Act, when an investment trust management company intends tomake a public offering, etc. of beneficiary certificates of an investment trust established by itself, it must
explain the following matters (hereinafter referred to as the “Significant Matters”) to customers before
such offering, etc. of beneficiary certificates are made.
(Article 3, Paragraph 1 of the Financial Instruments Sales Act)(i)

If the relevant sale of financial instruments involves the risk of incurring a loss of principal, due tofluctuations in the interest rate, the value of currencies, quotations on a financial instruments market(meaning a financial instruments market as prescribed in Article 2, Paragraph 14 of the Financial
Instruments and Exchange Act (Act No. 25 of 1948; hereinafter referred to as the “FIEA” ), or any
other indicators as the direct cause thereof, the following matters must be explained:(a) The fact that there is a risk of incurring a loss of principal;(b) The relevant indicator; and(c) The important portions of the structure of transactions pertaining to the relevant sale of financial
instruments that generate the risk of incurring a loss of principal with fluctuations in the indicator
set forth in sub-item (b) as the direct cause thereof:[Price Fluctuation Risk](ii) If sale of the relevant financial instruments involves the risk of incurring a loss of principal directly
caused by changes in the status of the business operations or assets of the person carrying out that saleof financial instruments or any other persons, the following matters must be explained:(a) The fact that there is a risk of incurring a loss of principal;(b) The relevant person; and(c) Important portions of the transaction structure pertaining to the sale of the relevant financial－1－

instrument that contain the risk of incurring a loss of principal directly caused by changes in thestatus of business operations or assets of the person set forth in sub-item (b):[Credit Risk](iii) In addition to what is provided for in items (i) and (ii), if sale of the relevant financial instrument
involves the risk of incurring a loss of principal directly caused by the grounds that are specified in
the Order for Enforcement of the Act on Sales, etc. of Financial Instruments (Cabinet Order No. 484
of 2006; hereinafter referred to as the “Cabinet Order”) as important factors that can influence thecustomers’ judgment, the following matters must be explained:(a) The fact that there is a risk of incurring a loss of principal;(b) The relevant ground(s); and(c) Important portions of the transaction structure pertaining to the relevant sale of financial
instrument that contain the risk of incurring a loss of principal, with the grounds set forth in
sub-item (b) as the direct cause thereof;(iv) If there is any period during which the exercise of the rights pertinent to the concerned financial
instruments or cancellation of the sale contract pertaining to such financial instruments is restricted, astatement to that effect shall be provided.
[Restriction concerned with Period for Exercise of Rights and Cancellation of Contract]2.

The explanation prescribed in the preceding paragraph must be provided in a manner and to the extent
necessary for the customer to understand them according to such customer’s knowledge, experience,
financial status, and objective for concluding such contract pertaining to the relevant financial instrument.
(Article 3, Paragraph 2 of the Financial Instruments Sales Act)

(Note) The heading in parentheses [ ] is not included in the provisions of the Financial Instruments Sales Act
but added in the Guidelines.

III. Contents of Explanation
1.

Basic Concept
The Financial Instruments Sales Act does not provide for any specifics on the Significant Matters to be
explained to customers, but investment trust management companies are required to explain such
Significant Matters to a large number of customers to such an extent that they can understand them.

2.

Practical Handling
In consideration of the fact that investment trust management companies are required “to explain such
Significant Matters to a large number of customers to such an extent that they can understand them,” thecontents of Significant Matters to be explained and examples of specific explanation at the time ofoffering, etc. of each beneficiary certificate shall be as follows:

－2－



Beneficiary CertificatesBeneficiary Certificate ofInvestment Trust

Price fluctuation risk

‐ Base value fluctuation
risk of beneficiary
certificate of investment
trust‐ Price fluctuation risk ofthe shares underinvestment
Investment trust that mainly ‐ Base value fluctuation
invests in yen-denominatedrisk of beneficiary
public and corporate bonds
certificate of investment
and does not invest in shares,
trust
private equities, etc. or assets ‐ Price fluctuation risk ofdenominated in foreign
the bonds held as
currencies.
investment
Investment trust whose main ‐ Base value fluctuation
assets are stocks and generalrisk of beneficiarybonds denominated both incertificate of investment
yen and foreign currencies
trust‐ Price fluctuation risk ofthe securities underinvestment‐ Exchange rate risk
Investment trusts whose
main assets are domestic
stocksCredit risk

Restriction
concerned withperiod forexercise of rights
or cancellationof contract‐ Credit risk concernedwith the issuers of shares
under investment‐ Credit risk of the issuersof the bonds held as
investment‐ Credit risk of the issuersof securities held as
investment(Note) Beneficiary certificates of other types of investment trusts may require different explanation.

(Examples of specific explanation)[Investment trust whose main assets are domestic stocks]‐

This investment trust mainly invests in domestic stocks. Since the base value fluctuates depending on
price movements, etc. of invested shares, the base value may fall below the initial investment price.
Moreover, there may be a loss of the principal due to changes in the management and financial
conditions concerned with the issuers of the shares held under investment, as well as due to changes inthe external evaluation thereof.

‐

This investment trust mainly invests in domestic stocks. Loss may be incurred due to fall in the basevalue caused by price decline of the shares under investment or deterioration in the credit standing of
the issuers of such shares.

[Investment trust that mainly invests in yen-denominated public and corporate bonds, and does not invest in
shares, private equities, etc. or assets denominated in foreign currencies]‐

This investment trust mainly invests in yen-denominated public and corporate bonds. Since the basevalue of this investment trust fluctuates depending on price movements of invested bonds caused byfluctuations, etc. in interest rates, the base value may fall below the initial investment price. Moreover,－3－there may be a loss of the principal due to changes in the management and financial conditions
concerned with the issuers of the bonds held under investment, as well as due to changes in the external
evaluation thereof.
‐

This investment trust mainly invests in yen-denominated public and corporate bonds. Loss may be
incurred due to fall in the base value caused by price decline of the bonds under investment or
deterioration in the credit standing of the issuers of such bonds.

[Investment trusts whose main assets are stocks and general bonds denominated both in yen and foreign
currencies]‐

This investment trust mainly invests in stocks and bonds that are denominated both in yen and foreign
currencies. Since the base value of this investment trust fluctuates depending on price movements ofbonds and shares held as assets, fluctuations of exchange rates, etc., the base value may fall below theinitial investment price. Moreover, there may be a loss of the principal due to changes in the
management and financial conditions concerned with the issuers of the shares or bonds held underinvestment, as well as due to changes in the external evaluation thereof.

‐

This investment trust mainly invests in stocks and bonds that are denominated both in yen and foreign
currencies. Loss may be incurred due to a decline in the base value caused by fall in prices of stocks andbonds held as investment assets (also subject to exchange rate fluctuations in case of foreign
currency-denominated securities) or deterioration in the credit standing of the issuers thereof.

Explanation, etc. concerned with beneficiary certificates of investment trust denominated in foreign
currencies:(a) Beneficiary certificates of investment trust denominated in foreign currencies
With regard to beneficiary certificates of investment trust denominated in foreign currencies, inaddition to the items described above, it is considered necessary to explain the risk of exchange
rate fluctuations, since the base value may fall short of the initial investment principal due to thecalculation of such base value made in foreign currencies.

(b) Beneficiary certificates where a loss of principal may occur due to a change in the business orcredit conditions of a third party
With respect to the beneficiary certificates where a loss of principal may occur due to a change inthe business or credit conditions of any third party other than those mentioned above, it isconsidered necessary to explain such third party’s credit risk in addition to the items describedabove.
[Examples of specific explanation for beneficiary certificates with guarantee]‐

This investment trust mainly invests in stocks and bonds that are denominated both in yen and foreign
currencies. The base value of this investment trust fluctuates subject to such factors as price movementsin the shares and bonds held as asset, exchange rate movements, and changes in the credit standing of
the issuers of such shares and bonds. Therefore, the base value of this investment trust may cause a loss－4－

to the investment principal if it is sold before redemption. Moreover, there may be a loss of the principal
due to changes in the management and financial conditions concerned with the issuer of the beneficiary
certificates or guaranty company, as well as due to changes in the external evaluation thereof.

(c) Beneficiary certificates of investment trust where there are restrictions regarding the exercise
period of rights or the timing of contract cancellation
With respect to the beneficiary certificates with restrictions on the exercise period of rights or thetiming of contract cancellation, it is considered necessary to explain such restrictions on theexercise period or cancellation timing in addition to the items described above.
[Examples of specific explanation for investment trusts with closed period whose main assets are domestic
stocks]‐This investment trust mainly invests in domestic stocks. Since the base value fluctuates depending on
price movements, etc. of invested shares, the base value may fall below the initial investment price.
Moreover, there may be a loss of the principal due to changes in the management and financial
conditions concerned with the issuers of the shares held under investment, as well as due to changes inthe external evaluation thereof. Please note that you cannot sell your investment during the closed
period.

‐This investment trust mainly invests in domestic stocks. Loss may be incurred due to fall in the basevalue caused by price decline of the shares under investment or deterioration in the credit standing of
the issuers of such shares. Please note that you cannot sell your investment during the closed period.

(Note) Under the Financial Instruments Sales Act, it is not required to make any explanation as to the method of
safekeeping customer’s subscription money, profits, sale proceeds, etc. Therefore, each of the investment
trust management companies shall independently decide whether or not to explain that such subscriptions
are not subject to the payment, etc. under the deposit insurance scheme or the investor protection fund, andtherefore, that the investment trust management company is legally obligated to entrust the amountequivalent to such subscription to a trust company.

IV. Timing, etc. of Explanation
1.

Basic Concept
The Financial Instruments Sales Act stipulates that the Significant Matters shall be explained “at or before
the time that the sale of financial instruments is carried out.” In the case of a public offering, etc. of
beneficiary certificates of an investment trust, it is appropriate to construe “at or before the time that thesale of financial instruments is carried out” as “at or before the time that the contract is concluded.”
Therefore, it is recommended that an investment trust management company should explain the
Significant Matters to customers before entering into any contract for the offering, etc. of beneficiary
certificates. It should be noted that the investment trust management company is required to explain the
Significant Matters to a large majority of general customers to such an extent that they can understand
them.

－5－

2.

Specific Considerations
As described above, an investment trust management company should explain the Significant Matters to
the customers before entering into any contract for the offering, etc. of beneficiary certificates. However,from the viewpoint of “to explain the Significant Matters to a large majority of general customers to suchan extent that they can understand them,” it is necessary to pay attention to the following matters as to thetiming of explanation.
(i)

Where, after giving an explanation on the Significant Matters to a customer, such customer continues
to participate in the offerings, etc. of the beneficiary certificates relevant to such explanation and it isconsidered that such customer continues to be cognizant of such Significant Matters, it is not always
considered necessary to give an explanation of the Significant Matters each time an offering, etc. ofsimilar nature is conducted. However, if requested by such customer, it is necessary to give an
explanation of the Significant Matters to him/her.
“An offering, etc. of similar nature” means the offering, etc. of beneficiary certificates where thesubstance of the Significant Matters to be explained to customers is the same.

(ii) It is considered desirable to handle with care any offering of beneficiary certificates that are notwidely known or where their structure is considered to be complicated or sophisticated.

V. Method of Explanation
1.

Basic Concept
The Financial Instruments Sales Act does not provide for any specific method of explanation for the
Significant Matters. Accordingly, an explanation of the Significant Matters can be made orally, in writing,or by other means.
However, regardless of the means of explanation, an investment trust management company isrequired to explain such Significant Matters to a large majority of general customers to such an extent thatthey can understand them.

(Note) Under the Financial Instruments Sales Act, it is not required to obtain any confirmation as to the fact thatthe explanation is given. Therefore, each company shall make its own decision as to whether or not to obtainsuch confirmation and obtaining method thereof if deciding to obtain such confirmation.

2.

Specific Considerations
In consideration of the fact that the investment trust management company is required to “explain the
Significant Matters to a large majority of general customers to such an extent that they can understandthem,” it is necessary to pay attention to the following points with regard to the method of explanation to
be provided by the company.
(i)With regard to beneficiary certificates of investment trusts that are not well known or where structure
is considered to be complicated or sophisticated, attention should be given to explain in accordancewith the product attributes of such investment trusts in order to provide more detailed explanations.

(ii) When explaining the Significant Matters in writing, it is necessary to avoid confusing expressions aswell as to take care to make the relevant descriptions noticeable.
－6－VI. Instance where Explanation is not Required1.

Basic Concept
Under the Financial Instruments Sales Act, it is not required to explain the Significant Matters when acustomer is a person who is specified by a Cabinet Order as a person with professional knowledge andexperience (hereinafter referred to as a “Specified Customer”).
In addition, if a customer who is not a Specified Customer expresses his/her intention not to receive
any explanation on the Significant Matters, such explanation pursuant to the Financial Instruments Sales
Act shall not be required.
Since the Financial Instruments Sales Act does not provide for any method of expressing such an
intention, a customer may express an intention orally, in writing, or by any other means.

(Note) Under the Financial Instruments Sales Act, it is not required to obtain any confirmation when a customer
has expressed his/her intention not to receive any explanation. Therefore, each company shall make its own
decision as to whether or not to obtain such confirmation and obtaining method thereof if deciding to obtainsuch confirmation.

2.

Specific Considerations(1) Case of Specified Customer
When a customer is a Specified Customer, it is not necessary to explain the Significant Matters. The
Specified Customer is defined in Article 10 of the Cabinet Order as the “Financial Instruments
Distributors, etc. or Professional Investor as defined in Articles 2, Item 31 of the FIEA.”(2) Expression of intention not to receive explanation
Considerations with respect to the expression of intention not to receive any explanation are as follows.
(i)

It is considered essential for a customer to express such intention after he/she understands the risk
involved in the relevant beneficiary certificates. Accordingly, it is considered desirable to takeactions such as explaining the Significant Matters to the customer if such customer has neverreceived explanation on a similar type of beneficiary certificates and has no experience of dealing insuch kind of products.

(ii) It is considered desirable to handle with care any expression of intention not to receive explanation
relating to the beneficiary certificates of investment products that are less known or whose structure
is complex or sophisticated.
(iii) The scope of beneficiary certificates for which the customer’s intention for non-explanation can be
expressed should be clarified.
(iv) In the event that a customer requests an explanation of the Significant Matters after the customer has
once expressed an intention not to receive any explanation, although it is not necessary to construethat the relevant intention has been withdrawn, it will be appropriate to conduct explanation on the
Significant Matters.

VII. Approach according to Format of Transaction－7－

Under the Financial Instruments Sales Act, it is required to explain the Significant Matters to a large majorityof general customers to such an extent that they can understand them. From this viewpoint, theconsiderations according to each format of transaction are as follows:1.

Non-face-to-face transactions
With regard to the explanation of Significant Matters in non-face-to-face transactions such as thosethrough the Internet, ATM, Answer System, etc., it is necessary to take suitable measures according torespective transaction format with reference to the following examples.
(1) Transactions on Internet
For an explanation method for the Internet transaction, the following can be considered as examples:(i)

At the time of account opening, etc., an investment management company shall explain the
Significant Matters orally, in writing, or by any other means prior to conducting any transaction; and(ii) Significant Matters shall be displayed on the homepage screen.
(2) ATM Transactions
For an explanation method for the ATM transactions, the following can be considered as examples:- At the time of account opening, etc., an investment management company shall explain the Significant
Matters orally, in writing, or by any other means prior to conducting any transaction.
(3) Answer System Transaction
For an explanation method for the Answer System transaction, the following can be considered as
examples:(i)

At the time of account opening, etc., an investment management company shall explain the
Significant Matters orally, in writing, or by any other means prior to conducting any transaction; and(ii) Significant Matters shall be explained via the automatic voice system.
(Note) In addition to the above, in order to respond to inquiries, etc. from customers, it is possible to takeactions such as establishing an inquiry counter and notifying the customers of the contact information
for any inquiry at the time of account opening, etc.

2.

Transactions with Corporate Customers
In case the customer is a corporation, it is recommended to explain the Significant Matters to therepresentative director or an authorized representative thereof (Manager of the Finance Department, etc.).
In addition, it is necessary to obtain an expression of intention not to receive any explanation from such
representative.
When an intention not to receive any explanation is expressed, such expression is considered to be a
corporate expression of intent and thus, not affected by any personnel change regarding the representative
director or the authorized representative.

3.

Transactions under General Transaction Agreements
As for the General Transaction Agreement, it is considered that at the time of concluding such Agreement,
the parties thereto have agreed to perform the General Transaction Agreement on a regular and routine－8－basis thereafter. Consequently, it is considered unnecessary to explain the Significant Matters at the timeof subsequent regular and routine transactions once the explanation of Significant Matters has been madeprior to the conclusion of the Agreement.
However, it is considered necessary to provide the relevant explanation when any provision of theAgreement is to be revised.

VIII. Prohibition of Provision of Conclusive Evaluations by Financial Instruments Distributors, etc.
Under the Financial Instruments Sales Act, when a financial instruments distributor, etc. carries out sales, etc.
of financial instruments on a regular basis, the relevant financial instruments provider, etc. must not engage
in the act of providing a customer with conclusive evaluations on uncertain matters or with information thatmisleads the customer into believing the certainty of the uncertain matters with regard to the matters related
to the relevant sales of financial instruments (hereinafter referred to as the “provision of conclusive
evaluations, etc.” ) at or before the time that the sale of financial instruments is carried out.
(Article 4 of Financial Instruments Sales Act)

IX. Relationship to Other Laws, Regulations, etc.
1.

Relationship to Accountability under FIEA
Notwithstanding the obligation of explanation under the Financial Instruments Sales Act, the investment
trust management company must comply with the obligations set forth in the provisions of the FIEA, theAct on Investment Trusts and Investment Corporations, related governmental and ministerial ordinances,and the operational rules of the Investment Trust Association.
However, it is also possible to make an explanation under the Financial Instruments Sales Act, as
well as these laws and regulations, and the Operational Rules and other Rules of Investment Trust
Association. For example, if the prospectus of each beneficiary certificate contains the Significant Mattersas provided for in the Financial Instruments Sales Act, an explanation pursuant to the Financial
Instruments Sales Act may be made using such a prospectus.

2.

Relationship to Principles of Suitability
Apart from performing the obligation of explanation under the Financial Instruments Sales Act, aninvestment trust management company shall endeavor to conduct solicitation activities for an investment
suitable to the intention and actual circumstances of a customer in light of such customer’s knowledge,
investment experience, investment objectives, financial status, and purpose for concluding such contract
for the specific financial instrument.

3.

Relationship to General Principles of Civil Law
The Financial Instruments Sales Act provides for liability for damages, etc. of the Financial Instruments
Distributor, etc. in the event of any damage to a customer arising from the failure to explain the Significant
Matters or provision of conclusive evaluations, etc., on the part of the Financial Instruments Distributors,
etc., thereby alleviating the burden of proof on such customer in court. Consequently, the Financial－9－Instruments Sales Act does not prevent claims for damages based on the general principles of the Civil
Code.
Accordingly, an investment trust management company should pay attention to the judicial
precedents that have been accumulated in connection with the offering, etc. of beneficiary certificates andshould consider the investment experience, objectives, financial resources concerned with the relevant
customer, the nature of the product, and the format of transactions so that such customer can correctly
recognize the risk inherent in a specific transaction.
End.

Supplementary Provision
The Guidelines come into effect on April 1, 2001.

Supplementary ProvisionThis amendment will come into effect on January 19, 2007.
Supplementary ProvisionThis amendment will come into effect on September 30, 2007.
Supplementary Provision
The amendments shall come into effect on October 1, 2008.

Supplementary ProvisionThis amendment will come into effect on March 19, 2009.

－10－

Guidelines on Accountability of Investment Trust Management Company when
Soliciting for Switchover of Beneficiary Certificates, etc.
Established on January 25, 2002
Revised on September 21, 2007
Revised on February 17, 2011
Revised on January 13, 2022

1. Purpose of the Guidelines
The obligation to explain concerned with switchover solicitation of beneficiary certificates, etc. prescribed in
Article 123, Paragraph 1, Item 9 of the Cabinet Office Ordinance on Financial Instruments Business, etc.
(Cabinet Office Ordinance No. 52 of 2007; hereinafter referred to as the "Cabinet Office Ordinance") and
Article 5, Item 13 of the Regulations for Direct Offering, etc. of Beneficiary Certificates, etc. is one of therequirements for soliciting a switchover of beneficiary certificates, etc. which often have long-term
investment horizon and a variety of product attributes, in order to prevent such a switchover from being
conducted without sufficient explanation, and to explain Significant Matters for determining whether suchswitchover would meet customer's needs or benefit customer's interests.
The purpose of the Guidelines is to facilitate the compliance of the Regulations by presenting the contentsof the explanation concerning the accountability required for the act of soliciting a switchover of beneficiary
certificates, etc. as well as giving guidance for the establishment of an internal control environment in orderto perform such accountability.

2. Solicitations, etc. for Switchover subject to the Regulations(1) Solicitation activity for switchover subject to the Regulations
The act of soliciting for a switchover prescribed in the Regulations means an act of soliciting a customer tocancel a contract of the beneficiary certificates currently held by such customer, or redeem or sell such
beneficiary certificates (hereinafter simply referred to as “cancellation”) and to participate in an offeringof other beneficiary certificates at the same time. Therefore, the Regulations are applicable to the act ofsoliciting for “cancellation” and “offering” as a set (switchover).
The relevant act shall not be determined based on whether or not the actual cancellation and conclusionof another contact as to the relevant offering have been made at the same time.
(Note) The following cases are considered to be switchover solicitation.
(i) Instance where while encouraging a customer to invest fresh funds in beneficiary certificates, etc. atfirst, the sales representative eventually recommends such customer to purchase the such beneficiary
certificates, etc. using the funds obtained from selling other beneficiary certificates, etc. currently
held by such customer;(ii) Instance where a sales representative solicits a customer for sale of an investment product andpurchase of another investment product as a package through telephone calls, visits, etc., and actual
purchase and sale are conducted via the Internet;－1－

(iii) instance where a sales representative solicits a customer for sale and purchase of investment
products as a package and funds for the purchase of the relevant beneficiary certificates, etc. aretransferred from an investment trust such as MRF or MMF, which are not subject to the Regulations;(iv) instance where a sales representative solicits a customer for sale and purchase of beneficiary
certificates, etc. as a package during the consultation that such customer has asked for on his/her asset
management; and(v) instance where a sales representative solicits a customer for sale and purchase of investment
products as a package and funds for the purchase of the relevant beneficiary certificates, etc. areappropriated by the sale of other product(s) (or by a separate fund) (or instance where the saleproceeds are once returned to the customer before being deposited again as the purchase payment).
The following examples are not considered to fall under the category of switchover solicitation. However,it should be noted that the following examples could also be regarded as switchover solicitation dependingon the actual circumstances of solicitation to a customer.
(i) Instance where a customer has invested a fresh fund in beneficiary certificates, etc. recommended bya sales representative, and after the conclusion of such transaction, the sales representative
recommends a sale of other beneficiary certificates, etc. when consulted by the customer about
his/her needs for new funds;(ii) instance where a sales representative recommends to a customer to invest fresh funds in beneficiary
certificates, etc., and such customer concludes the purchase contract thereof and sells anotherinvestment trust to fund the purchase of such investment recommended at the customer’s own
discretion (without any solicitation for sale from the sales representative) prior to the delivery date
(payment date); and(iii) Instance where it is evident that there is no solicitation from a sales representative and a customer
gives instruction to sell the designated investment trust and purchase another trust.
(2) Beneficiary certificates, etc. subject to Regulations
Beneficiary certificates, etc. subject to the Regulations are other than those set forth in Article 65, items(ii) (a) through (c) of the Cabinet Office Ordinance (e.g., MMF, MRF).

3. Contents, etc. of Explanation
In soliciting switchover, it is necessary to explain Significant Matters which may affect customers'
investment decisions, with the following considerations in mind:- In case of soliciting switchover, considering in advance the respective product attributes of thebeneficiary certificates, etc. to be sold and the beneficiary certificates, etc. to be acquired, the customer's
needs, benefits to be gained and other factors in connection with such switchover, comprehensively
examine whether such switchover will be suitable for the customer's investment policy, what kind ofrisk and expenses will be incurred to the customer, and whether the customer can correctly understandthe purpose of such switchover among other matters.
- When, as a result of the examination described above, it is judged that it is reasonable to make switchover－2－solicitation to the customer, in addition to the explanation in the prospectus of the beneficiary
certificates, etc. to be acquired, explanation shall also be given on matters necessary for the customer todetermine whether such switchover is reasonable in light of his/her own investment policy.
- The content of explanation as well as the materials and time required for such explanation at the time ofsoliciting switchover vary depending on the attributes and investment experience of the customer in
addition to the nature of the beneficiary certificates, etc. concerned. Therefore, such explanation shallbe made in a manner deemed appropriate in accordance with the degree of understanding of thecustomer to be solicited.

4. Establishment of Internal Control System
Acquisition and redemption of beneficiary certificates, etc. by customers are conducted on a daily basis, and
it is assumed that each company is conducting necessary monitoring. Monitoring shall be conducted inparticular with regard to solicitation for switchover in order to assure that explanation to customers is being
appropriately performed according to the purport of laws and regulations, Comprehensive Guidelines forSupervision and the voluntary regulations of the Association.
Each member company shall properly perform its obligation of explanation in light of its business
operations and solicitation methods (branch counter, customer visit, telephone, etc.), and shall establish asystem to check whether such solicitation meets customer's needs and whether such solicitation forswitchover is conducted for customer's benefit not only by paying attention to individual solicitation
activities and transactions but also by performing broader examination of such solicitations and transactions.

5. Others(1) Development of overall internal control system in relation to beneficiary certificates, etc.
In view of the fact that there are a large number of beneficiary certificates, etc. designed on long-termownership and in order to ensure thoroughly customer-oriented marketing practices, it is desirable todevelop an overall internal control system as regards to any offering of beneficiary certificates, etc. inaddition to such internal control system concerned with accountability according to the Guidelines. As
specific examples, the following can be considered.
(i) Establishment of internal rules, etc.
[Content] Regarding switchover between beneficiary certificates where their basic investment policy andinvestment assets are similar or any repeated switchovers within a short period of time regardlessof their respective assets to be invested, internal rules and other relevant matters shall beestablished to ensure thoroughly customer-oriented marketing practices, taking into fullconsideration economic rationality concerning such switchover as well as customers’ needs andinterests.
(ii) Implementation of monitoring[Content] In order to ensure thoroughly customer-oriented marketing practices based on their needs andinterests as well as economic rationality and suitability to the customer concerning suchswitchover, the member company shall conduct monitoring especially for switchovers between the－3－

funds of similar characteristics or repeated switchovers in a short period of time.

(2) Relationship with other Laws, Regulations, etc.
(i) Explanation using prospectus
In general, when soliciting customers to subscribe for beneficiary certificates, etc., it is necessary to
explain matters according to the contents of prospectus other than the “Significant Matters” as regards
to switchover solicitation.
(ii) Relationship to principle of suitability
From the viewpoint that the explanation of “Significant Matters” as regards to switchover solicitation
shall be made in consideration of the principle of suitability for investment, it is necessary to
sufficiently understand investment experience, investment purpose, financial resources, etc.
concerned with the relevant customer and to conduct solicitation for investments suited to suchcustomer’s intention and actual circumstances.
In addition, when the Transaction Commencement Criteria is established, it is necessary to confirm
that such Criteria is met before conducting any solicitation activities.
End.

Supplementary ProvisionThis amendment will come into effect on September 30, 2007.

Supplementary ProvisionThis amendment shall come into effect on April 1, 2011.

Supplementary ProvisionThis amendment shall come into effect on January 13, 2022.
* The amended provisions are as follows:
Revisions to Article 1.
Deletion of Article 2.
Addition of (Note) to Article 2 (Formerly Article 3).
Revisions to Articles 3, 4 and 5 (Formerly Articles 4, 5 and 6)
Deletion of "Attachment" and "Reference".

－4－Interpretation concerned with Article 6-3 of the Regulations for Direct Offering, etc.
of Beneficiary Certificates, etc.
(Guidelines for Sales through Solicitation to Elderly Customers)
Established on December 19, 2013
Revised on October 13, 2016
Revised on July 8, 2021

The thinking behind the establishment of internal rules as provided for in Article 6-3 (effective as of December 19,2013) of the Regulations for Direct Offering, etc. of Beneficiary Certificates, etc. (hereinafter referred to as the“Regulations for Direct Offering, etc.”) is as follows:

1. Establishment of Internal Rules
Q1: We believe that any investment solicitation should be made in compliance with the principle of suitability
not only for elderly customers but also for all customers. Why do we need to develop internal rules
specifically for elderly customers?
A: It is generally accepted that older people may have diminished capacity for memory and understanding in
addition to physical decline. Moreover, elderly people have few opportunities for fresh income, and theirassets are likely to be applied for future living expenses. There are cases where elderly customers with lots ofinvestment experience in the past who had no change in appearance and seemed to have sufficientunderstanding at the time of solicitation do not remember at all the transaction they engaged in after a few
days. As a result, complaints have been filed by the persons concerned or their family members, leading tomediation or litigation. Therefore, for soliciting investment from elderly customers, it is necessary toestablish internal rules in accordance with the circumstances of each member company in order to take aprudent approach based on the principle of suitability for investment.
Internal rules here include various guidelines, etc. established by each member company (the same shallapply hereinafter). In addition, as long as the contents to be provided in the internal rules are satisfied, it is
not always necessary to create independent internal rules for this specific matter, and existing internal rules
may be amended accordingly.

Q2: In establishing internal rules, what should be specified?
A: Actual situations surrounding the transactions with elderly customers may vary depending on the type andsize of Full Members and characteristics of each investment trust. Accordingly, internal rules shall be set
forth in accordance with the prevailing circumstances of each member company. However, it is necessary tohave a certain degree of alignment among our member companies, because any major difference in theirapproach to solicitation of the elderly customers may cause them confusion when they deal with multiple
Full Members.
Therefore, when establishing internal rules, at least the following matters shall be prescribed inaccordance with the actual circumstances of each member company with reference to the “Interpretation
concerned with Article 6-3 of the Regulations for Direct Offering, etc. of Beneficiary Certificates, etc.”－1－

(hereinafter referred to as the “Guidelines”).
(i)Definition of elderly customer
Define, based on their age, the scope of the customers for whom a more prudent approach to solicitationis considered necessary. As a guide, it may be considered that the customers at or over the age of 75
should be selected as the subject group with even more prudent approach to be applied to those at orover the age of 80 when any solicitation is made.
Furthermore, please set forth in the internal rules those who can be excluded from the application of the
Guidelines, as well as the specific methods and procedures to determine those who can be excluded.
→ Please refer to “2. Definition of Elderly Customer.”(ii) Scope, etc. of products that can be solicited to elderly customers
Specify the range of products that can be solicited to elderly customers without the prior approval of amanager. If solicitation of products outside of such scope is made possible by the prior approval of therelevant manager, please also specify procedures and conditions therefor.
→ Please refer to “3. Products for sale through solicitation to elderly customers.”(iii) Solicitation in accordance with the location and method thereofPlease provide internal rules respectively for each of face-to-face solicitation (customer visit),
solicitation by telephone, and solicitation at the branch counter.
→ Please refer to “4. Location and Method of Solicitation.”(iv) Communication and confirmation of the details of a transaction, and continuous condition check of theelderly customer
Regarding the communication and confirmation of the details of a transaction, and continuous
condition check, please specify “type of customers,” “frequency,” “method,” and “person who is incharge of such communication, confirmation, and condition check” according to the risk level of thecustomers.
→ Please refer to “5. Communication and Confirmation of Details of Transaction and Continuous
Condition Check.”(v) Monitoring
Please provide for monitoring the procedures, etc. described in (ii) through (iv) above.
→ Please refer to “6. Monitoring.”

Q3: Do we need to revise our internal rules to reflect the revisions made to the Guidelines in August 2021?
A: At the time of revision to the Guidelines in August 2021, descriptions have been added regarding theinterpretation of elderly customers who are not subject to the Guidelines, changes in the method ofcommunication after the execution of a contract, and the idea on continuous condition check of the elderly. In
light of these revisions, it may be advisable to revise the existing internal rules if they do not conform to theintent of the Guidelines or fail to satisfy the matters to be specified.
On the other hand, if the current internal rules are in accordance with the revised Guidelines and satisfy therequirements to be provided, no revision is necessary.

－2－2. Definition of Elderly Customer
Q1: How should the definition of “Elderly Customer” be provided for?
A: The purpose of establishing Article 6-3 of the Regulations for Direct Offering, etc. is to assure appropriate
solicitation of investment, etc. when conducting sales solicitation to elderly customers. Therefore, please
specify based on their age the scope of the elderly customers for whom a more prudent approach tosolicitation is considered necessary. As a guide, it may be considered that the customers at or over the age of
75 should be selected as the subject group with even more prudent approach to be applied to those at or over
the age of 80 when any solicitation is made.
If a trading agent system has been established, it is necessary to apply the internal rules not only to accountholders but also to the trading agents if such trading agents are elderly. Incidentally, where an account holder
is an elderly customer and his/her trading agent is not, please provide for in accordance with the actual
circumstances of such a trading agent system at each member company.
Q2: When internal procedures are to be established for solicitation activities to elderly customers, should thesame procedures apply to all elderly customers?
A: It is considered reasonable that consideration matters may vary depending on the past investment experience,occupation, professional carriers, health conditions, etc. relevant to each elderly customer. On the other hand,in view of the fact that physical decline generally occurs with age, it will be necessary to prescribe
requirements in stages according to the elderly customers’ age when establishing internal procedures so thata more careful approach to solicitation is taken as they become older.
Specifically, it is recommended to establish two sets of procedures for those at 75 years of age or older andthose at 80 years of age or older in order to conduct more prudent and age-appropriate solicitation. For
details, please refer to “3. Products for sale through solicitation to elderly customers” and the subsequentdescriptions of the Guidelines.
However, although age serves as a certain guide, it is not an absolute standard, and therefore, it may beconsidered not to apply the Guidelines to certain elderly persons subject to the memory, capacity forunderstanding, income level, financial status, etc. of the relevant elderly customer.
For example, if all of the requirements listed in (i) and (ii) below are satisfied, it will be possible to exclude
such a customer from the scope of the Guidelines with the approval of the officer, etc. in charge (*).
* Including managers who have been delegated authority from the officer in charge. The same shall apply
hereinafter.
(i)

Satisfactory memory, understanding, etc.
A customer who has proved to possess satisfactory memory and understanding to make investment
decisions on a continuing basis as a result of interviews, etc. conducted at a regular interval on thefollowing matters, while the relevant manager such as a branch manager fully understands and issatisfied with the attributes, financial literacy, and investment objectives in relation to such a customer.


Example of verification through direct conversation with a customer regarding his/her memory:‐

Remembers the details of latest transaction, such as product and issue name; valuation loss or－3－

gain concerned with his/her portfolio; history of recent deposits and withdrawals, etc.;‐

Aware of the current market situation and remembers the recent price movements of investment
product(s) held by him/her; and‐Remembers the specifics of the conversations held with the relevant manager at the previous
interview.



Example of verification through direct conversation with customer regarding his/her understanding:‐Capable of stating his/her own thoughts on market conditions and current affair news;‐

Capable of accurately explaining his/her ideas on investment, as well as features of products
held by him/her while recognizing risk; and‐Possessing computing capability in relation to investment transactions including those forcommissions, yields, etc.



Examples of indirect verification of memory and understanding through communication with family
members or through objective observations of the concerned elderly‐

Confirmation obtained from a family member as to the level of the elderly customer’s memory
and understanding being satisfactory; and‐Fact that the relevant customer is engaged in an occupation, managerial position, or volunteer
activities that require a satisfactory level of memory and understanding.

In checking capacity for memory and understanding, it is desirable that their memory andunderstanding should be checked comprehensively from as many perspectives as possible inaccordance with the attributes of the customer and with reference to the examples described above.
If it is perceived during the conversation, etc. that an elderly customer experiences or is beginning toexperience memory problems, such customer shall not be excluded from the application of the
Guidelines.
Comprehension has a tendency to decline with age regardless of the occupations, past investment
experience, and various qualifications relevant to an elderly customer. Therefore, it is necessary to
make a judgment by thoroughly examining the results of verification tests described above without
prejudice to the circumstances.
In order to check a customer’s memory, understanding, etc., it is important not only to ask questions
that can be answered by simple “Yes” or “No,” but also to ask the customer to talk as much as possible.
In addition, it is also necessary to be careful not to judge easily that a person has sufficient memory andunderstanding based only on simple greetings, short interviews, or the fact that such person has been
engaged in transactions for a long time.
The above examples are merely demonstrative, and it is recommended that each member company
may devise more suitable verification procedures, applying its own originality and ingenuity.
(ii) Verification of income level and financial conditions
A customer who has been confirmed by the relevant manager such as branch manager to possess
sufficient level of income and/or financial assets to continue investment transactions given the risk
inherent in transaction as result of examining his/her latest income level and financial conditions
through an appropriate means such as the updated customer card, etc.
－4－

Separately, concerning the elderly customer who is currently the CEO, officer, etc. of a company, he/she
may be excluded from the application of the Guidelines with the approval of the officer in charge, since suchcustomer is considered to satisfy the descriptions in (i) and (ii) above, as long as the relevant manager such asa branch manager fully understands the customer’s attributes, financial literacy, and investment intentions as
a result of interviews with such a customer at a regular interval.
However, with regard to the elderly customer who is excluded from the application of the Guidelines, if
such an elderly customer intends to invest in a product for which he/she has no experience, or suddenly makea larger investment than usual, if there has been a significant change in the income or financial conditions
concerned with the customer, or if there has been any change noticed in their ability as to memory andunderstanding that may undermine the health of his/her investment judgment, it is necessary to take prudent
actions, such as re-examining the customer’s investment intention, memory, and understanding by therelevant manager such as branch manager as appropriate.

3. Products for sale to elderly customers through solicitation
Q1: Is it necessary to restrict the range of products available for sale to elderly customers by internal rules?
Also, do we need to restrict any unsolicited orders from elderly customers?
A: When selling to elderly customers through solicitation any product with large price fluctuations, complex
structures, or poor liquidity, it is necessary to examine their suitability for the relevant customer.
Accordingly, it is necessary to prescribe the scope of products available for solicitation to elderly
customers as specifically as possible based on the principle of suitability, and to take a more cautious
approach to other products (hereinafter referred to as the “Products Requiring Cautious Solicitation”) by
establishing prescribed procedures and conditions, such as obtaining prior approval from the manager whensoliciting for such Products Requiring Cautious Solicitation.
“Solicitation” in the Guidelines means “explanation regarding purchase of an individual product.”
In the event that an elderly customer wishes to purchase the Products Requiring Cautious Solicitation, forwhich no solicitation effort is made, by designating the individual product name and the quantity or amountthereof, any procedures or conditions under the Guidelines shall not apply.
Nevertheless, when an elderly customer inquires, “I want to buy an investment trust. What do you
recommend?”, it is necessary to respond in accordance with the prescribed procedures and conditions, since
explanation of the specific Products Requiring Cautious Solicitation is regarded as solicitation.

Q2: What products are considered to be available for sale through solicitation to elderly customers regardless ofthe procedures or conditions specified?
A: The following products are considered to be appropriate due to their relatively small price fluctuations, lowcomplexity of structures, and high liquidity:(i)Government bonds, local government bonds, government guaranteed bonds, etc.;(ii) Straight bonds (so-called SB);－5－

(iii) Investment trusts investing mainly in public and corporate bonds with relatively stable management
style (*); and* With regard to the applicability of an investment trust that “invests mainly in public and corporate bonds
with relatively stable management,” each member company shall determine such applicability withreference to the “objectives and characteristics of the fund” and other items described in the prospectusof each investment trust.
(iv) Bonds and investment trusts (*) that conform to any of the descriptions in (i), (ii), and (iii) above but are
denominated in the foreign currencies specified by the Full Members in their internal rules as having apublic name recognition and sufficient liquidity when considering the circulation volume of currencies,
liquidity of securities denominated in such currencies, their volatility, the size of trading spread, and thedegree of customer recognition, in addition to the economic conditions, capital regulations, etc. of thecountries pertinent to such currencies.
* Although each member company shall decide the relevant currencies, as of March 2021, the U.S. dollar,
the Euro, and the Australian dollar, etc. are considered to fall into this classification.

With regard to stocks, convertible bonds, ETFs and ETNs (including leveraged and inverse types), REITs,
warrants, and securities-related market derivatives (listed futures and option transactions) that are listed orgoing to be listed on the financial instruments exchanges or the foreign financial instruments markets,
despite their relatively high price fluctuation risk given the fact their product attributes are widely known
and there is demand for transactions in keeping up with ever-changing price movements, it is considered that
universal restriction on solicitation for such transactions is unlikely to be suitable (regarding credit
transactions, any trading in connection with warrants and transactions on securities-related market
derivatives (listed futures and option transactions), it is necessary to comply with the rules on investment
solicitation pursuant to Article 6 of the “Rules on Investment Solicitation and Customer Management by
Association Members” by the Japan Securities Dealers Association).
Separately, for investment trusts designed to track the price movements of the Nikkei Stock Average(Nikkei 225) or the Tokyo Stock Exchange Stock Index (TOPIX), since such indices are widely known and
it is easy to obtain information on price fluctuations to that effect, the same argument will apply.
Therefore, it is not considered necessary to designate any of these products as Products Requiring
Cautious Solicitation as provided for in the Guidelines. (However, among the above-mentioned products,
there is a possibility that some company may decide to limit such products to domestic products or exclude
those products with high credit risk even if they fall under the classification mentioned above).
With respect to transactions with elderly customers regarding these products, the internal rules shall notpreclude such products from being subject to the prescribed procedures and conditions for sales throughsolicitation. If so, it is desirable to develop measures so as not to impede smooth transactions as much as
possible.

－6－

Q3: Can’t we make any solicitation to elderly customers for the Products Requiring Cautious Solicitation? Is it
acceptable to conduct their solicitation after obtaining prior approval from the manager in charge? In thatcase, what are the considerations that such manager should be aware of before giving prior approval?
A: Some elderly customers have sufficient investment experience and investment fund, and want to invest in
the Products Requiring Cautious Solicitation. For such customers, the member company may provide themwith necessary investment information after fully confirming their investment intentions.
However, elderly people may have changes in their health conditions, and even if the sales representativein charge with whom they usually contact does not see any problem with their understanding, etc., it ispossible for others to be able to find some concern for their speech and behavior.
For this reason, it is considered necessary for the sales representative to obtain the prior approval of therelevant manager each time such sales representative solicits elderly customers for the Products Requiring
Cautious Solicitation. These procedures should apply to any customers at or over the age of 75 as a guide.
The prior approval of the relevant manager should not be given based on the statement from the relevant
sales representative alone, but it is also necessary for such manager to examine health conditions,
understanding, etc. of the elderly customer concerned through interview or telephone conversation(collectively referred to as “interviews”) and to judge the appropriateness of the solicitation.
It is necessary to conduct interviews for each solicitation or at the regular interval established as
appropriate according to the attributes, etc. of the customer.
The matters to be confirmed at interviews may include the following:‐

Are there any health problems?

‐

Do the conversations make sense?

‐

Is there any problem with their understanding (degree of understanding on financial instruments)?

‐

Investment intentions, etc.
At the time of interviews, it is essential to properly check the items mentioned above instead of merely

exchanging greetings or making short telephone calls in spite of the fact that proper interviews are possible.
Moreover, the contents of such interviews shall be recorded and kept to utilize them for monitoring asnecessary. For recording means thereof, it is not always necessary to specify a recording medium or format.
For example, if a telephone has a recording function, such recording may suffice.
In the Guidelines, the managers in charge of giving the prior approval are those persons in a position equal
to or higher than a certain position designated by each member company in light of their experience andinsight, and not limited to so-called operating officers, but those who have practical approval authority
within the internal organizations (section, department, group, etc.). Furthermore, it is not necessary that the
manager in charge of giving prior approval has to be the same person as the manager in charge of placing anorder as provided for in “4. Location and method of solicitation.” Reflecting their responsibilities for eachsituation, each member company should select such managers as appropriate.
When such a manager is also a sales representative for an elderly customer, it is desired in principle that aperson senior to the relevant manager is designated to give prior approval. However, where such a manager
in a certain or higher position is recognized as appropriate by the member company in light of their－7－professional experience and other factors, the relevant manager may make decisions on giving prior approval
for the solicitation of his/her own elderly customer themselves.

Q4: Is there any procedure to be established other than the prior approval from a manager in charge? If any,
what types of elderly customers should it apply to?
A: As stated in Q3, it is considered necessary to obtain prior approval from the relevant manager in case ofsoliciting for the Products Requiring Cautious Solicitation to elderly customers. In addition, it is consideredthat memory and understanding of elderly people generally tend to deteriorate as they age. Therefore, in
addition to obtaining prior approval from the relevant manager for solicitation, it may be appropriate toimpose restrictions on receiving orders on the day of solicitation, to designate the relevant manager toreceive orders from the elderly customer, and to communicate and confirm the details of transactions, as wellas to conduct continuous condition check by a person other than the relevant sales representative (person
who has made solicitation), and to monitor the transactions relevant to such elderly customer.
These procedures should apply to customers aged 80 years and over as a guide. Monitoring in relation to
the prior approval by a manager should also apply to the customers aged 75 years and over as a guide.
For details, please refer to “4. Location and Method of Solicitation” through “6. Monitoring.”

4. Location and method of solicitation
Q1: What kind of rules should be considered when visiting an elderly customer for the solicitation of Products
Requiring Cautious Solicitation?
A: Unlike solicitation by telephone with a recording function or by over-the-counter solicitation at a branchwhere multiple sales representatives can respond, solicitation made at the customer visit is difficult to record
the details of explanation, customer’s reactions, and else. This may cause trouble at a later day of “You saidit.”, “I did not.” etc. Therefore, it is necessary to record and safekeep conversations with elderly customers
and their family members during the visit. For instance, with the consent of such customer and others, it ispossible to record the conversations on an IC recorder or the like, or to record for safekeeping the contents ofmain conversations and the state of the elderly customer at the office after the relevant visit.
It may happen that such an elderly customer does not remember or understand the product attributes, etc.
the next day although he/she seemed to understand them when receiving the explanation. Accordingly, incase of solicitation by visit (it is assumed that prior approval from the manager in charge has been obtained.
The same shall apply to Q2 and Q3 in this section), it is considered appropriate in principle not to receive therelevant order from such customer on the day of solicitation visit, but to receive it on the day following
solicitation or thereafter, regardless of its means; via telephone, visit, or over-the-counter at a branch.
In this case, such order must be received by a manager in charge instead of the sales representative whosolicited the product relevant to the order on or before the previous day. This is because it is necessary toensure that the elderly customer, who seemed to fully understand product attributes and risk at the time ofsolicitation visit, is placing such purchase order with full understanding of the contents of the explanation inorder to avoid the situation where such customer does not remember the contents of the solicitation nor－8－

understand the product attributes among others on the days following the solicitation.
This does not mean that the sales representative who made solicitation the previous day or before may notdirectly call such elderly customer. Since after a day-long examination by an elderly customer, suchcustomer may have additional questions or matters for consultation, it may be recommended that the relevant
sales representative makes an initial telephone call to answer their questions, etc., and the manager in charge
will speak to the customer to receive the order and confirm the contents of such an order.
When the relevant manager makes a direct call to an elderly customer, in order not to be suspected by theelderly customer, the sales representative who makes the solicitation on or before the previous day may
inform the customer in advance to the effect that “the details of the transaction will be confirmed by XX of
our company over telephone tomorrow or thereafter.”
It is necessary to record and save the contents of conversations at the time of receiving orders.
When a manager is also a sales representative for an elderly customer, an order placed on or after the next
day of solicitation may be received by another manager (not limited to the one who is senior to the manager
who has made the relevant solicitation). However, such a manager in a certain or higher position designatedas appropriate by the member company in light of their professional experience and other factors may makesolicitation to his/her elderly customer and receive the orders themselves on the day following solicitation or
thereafter.
Please refer to Q2 for considerations when accepting orders by telephone on or after the next day of thesolicitation, and Q3 for considerations when accepting orders at the counter of a branch office. Separately,please refer to Q6 for the response in the event that an elderly customer who has received an explanation
regarding the purchase of an individual product desires to purchase such product on the day of explanation.
As described above, it is considered appropriate in principle to refrain from receiving an order for the
product on the day of solicitation thereof by visiting an elderly customer. However, if such elderly customer
wishes to purchase the relevant product for which solicitation is made in the presence of their family
member(s), the order may be accepted by receiving a purchase instruction form from the elderly customer
after obtaining the signature of consent on the purchase instruction form from the family member(s) present
at the solicitation to the effect that they agree on the purchase of such product.
The purpose of requesting the presence and obtaining consent of the family members in relation to thetransactions with elderly customers is to have family members pay attention to the elderly customers andensure that they have an intention to purchase the relevant products based on the sufficient understanding of
the products. Therefore, each member company may define the word “family” according to this purpose.

Q2: What kind of rules can be considered when soliciting an elderly customer for the Products Requiring
Cautious Solicitation over the telephone?
A: In principle, it is not appropriate to receive an order for the Products Requiring Cautious Solicitation from anelderly customer on the same day of such solicitation over the telephone as is the case with that of thesolicitation visit. Moreover, unlike face-to-face conversations of customer visit, it is not generally possible tohave conversations simultaneously with the elderly customer and his/her family member(s).

－9－Therefore, when conducting solicitation for the Products Requiring Cautious Solicitation by telephone, it
is considered appropriate to receive an order from an elderly customer after confirming whether the contents
of solicitation made are understood by such customer through making another telephone call, etc. on or after
the next day of the solicitation. In this case, it is necessary for the relevant manager to receive such an orderon the following day or thereafter as in the case of Q1.
It is not possible to check elderly customers’ complexion or actions over the telephone. Consequently, inorder to confirm whether the elderly customer fully understands the contents of the solicitation made by thesales representative, it is important to have the elderly customer talk about the matter as much as possible
instead of seeking straight reply such as “yes” or “no”.
Furthermore, it is considered necessary to record and store the contents of conversations at the time ofsolicitation and receiving the orders in order to utilize them for after-the-fact monitoring or when receiving
an inquiry at a later date from the elderly customers or their family members regarding the contents ofsolicitation.
Accordingly, it will be effective to prescribe the provision in the internal rules to prohibit in principle asales representative from conducting solicitation or receiving orders through his/her personal mobile phonewhere fixed-line telephones and corporate mobile phones with the recording function are available for use bysuch sales representative.
In the case of conducting solicitation by company telephone without a recording function, it is consideredappropriate for the sales representative who made solicitation not to receive orders on the day of solicitation,and for a manager to receive orders from the relevant elderly customer on the next day of such solicitation or
thereafter. Please refer to Q1 for the reasons and considerations.
In the case of conducting solicitation or accepting orders by company telephone without a recording
function, it is considered necessary for the sales representative and the manager in charge to record the date,time, main discussion, details of orders, etc. in relation to such conversations with elderly customers.
The method of recording and the extent of content to be recorded should be determined by each member
company within the scope required for subsequent monitoring and confirmation of the contents of
conversations in accordance with their operational conditions, business scale, infrastructure such as IT
system, etc.

Q3: What kind of rules can be considered when soliciting an elderly customer for the Products Requiring
Cautious Solicitation at the counter of a branch office?
A: When an elderly customer who visits a branch for investment or consultation is accompanied by his/herfamily, the order may be accepted by receiving a purchase instruction form from the elderly customer after
obtaining the signature of consent on the purchase instruction form from the accompanying family member
to the effect that they agree on the purchase of the relevant product as is the case with the Q1 of solicitation
visit discussed above. In this case, the sales representative may take the order alone.
However, elderly customers may not always be accompanied by their family. Then, it would beappropriate for not only the sales representative but also a manager to attend the meeting in person and－10－confirm whether the elderly customer fully understands the solicitation made by such sales representative.
Under such circumstances, if the elderly customer wishes to purchase the Product Requiring Cautious
Solicitation solicited by the sales representative on the spot, the purchase instruction form signed by theelderly customer shall suffice.
At this time, it is inappropriate for such manager to make an active solicitation (explanation). Therefore,
the manager in charge must focus solely on ensuring that appropriate solicitation is being made by the sales
representative and the elderly customer fully understands such explanation.
For the solicitation at the counter of a branch as is the case with Q1, it is considered necessary to recordand store conversations among the elderly customer, his/her family member, or manager present including
the customer’s appearances and behaviors.
On the other hand, if an elderly customer is not accompanied by his/her family and the relevant manager isunable to attend the explanation, it is considered appropriate for the sales representative to only solicit for
products on the spot and to accept any order by telephone or other means on or after the next day of such
solicitation. In that case, please take actions in conformity with the descriptions discussed in Q2.
Incidentally, where an elderly customer, for whom prior approval from the relevant manager has not beenobtained, visits the branch alone without appointment when such manager is absent, the sales representative
may conduct solicitation to the extent requested by such elderly customer when requested an explanation
regarding the Products Requiring Cautious Solicitation. In this case, please report such situation to the
manager in charge after the event and consult about appropriate future response. Please also refer to Q5.

Q4: Is it necessary to establish rules specifically for Internet transactions with elderly customers?
A: With regard to the restrictions on transactions by elderly customers over the Internet, it is more concernedwith the fact whether or not such solicitation prior to the transactions is pertinent to the “Sales throughSolicitation” as stipulated in Article 6-3 of the Regulations for Direct Offering, etc. prior to placing orders,than the act itself of placing orders through the Internet. If the sales representative solicits an elderly
customer for the Products Requiring Cautious Solicitation, regardless of the means in which the elderly
customer places an order, Internet or not, such solicitation must be approved in advance by the relevant
manager.
On the other hand, when an elderly customer voluntarily chooses to place an order over the Internet by
logging in with his/her own ID and password and entering the product name and quantity or amount after
receiving solicitation from the sales representative, the Guidelines do not apply to such order received.
Therefore, procedures for confirmation and communication of orders received and transaction results by the
managers on and after the next day will not be necessary.
However, despite prior approval obtained from the relevant manager before the solicitation, it goes
without saying that it is contrary to the intents of the Guidelines for a sales representative to induce an elderly
customer to engage in Internet transactions in order to avoid such procedures. It may be recommended tomonitor whether or not any transaction involving solicitation by a sales representative with prior approvalobtained from the relevant manager has been induced to be placed over the Internet by the sales－11－representative.
In the event that a sales representative does not conduct any solicitation for the Products Requiring
Cautious Solicitation to an elderly customer and such elderly customer voluntarily engages in Internet
transactions following the indication and services on the website, the Guidelines shall not apply unless theindication and services on the website provided by the Full Member are equivalent in nature and quality tothose solicitations to be made by the sales representatives in terms of product examination, product selection,
information gathering, and decision on purchase that is performed by the elderly customer. As of October
2015, no indication or services corresponding to the above definition have been identified.
However, it should be noted that any new type of indications and services on the Website based on newtechnology or the like that we have not examined at the present time may be subject to the Guidelines if such
new indications and services are deemed to be equivalent in nature and quality to those solicitation to bemade by a sales representative.

Q5: What should we do if we receive an order from an elderly customer at a small business office where a
relevant manager is not stationed, or if such manager is absent when an order is received from an elderly
customer?
A: As described in Q1, Q2, and Q3, when a family member is not present, it will be necessary for the sales
representative in charge not to take an order alone but for the relevant manager to check whether or not theelderly customer understands the contents of the product before accepting the order. However, the manager
may not be always available or present. In such case, it is not desirable to have an elderly customer wait for along time.
Accordingly, it is important to develop measures in order to conduct business with elderly customers andaccept their orders in a proper and smooth manner under various circumstances that may arise in a small
business office, etc.
For example, when determining the responsible managers in charge of receiving orders per each section
such as division, group, etc., the order of such acting managers may be prescribed for the situation where any
one of them is absent. Further, if there is no relevant manager permanently stationed or an acting manager
available at a business office, it should be considered to designate and authorize in the internal rules
managers in a nearby branch or at the headquarters for receiving orders.
Since the role of the manager in charge is to receive orders after ensuring that the elderly customer has asufficient understanding of the product concerned, it is not considered appropriate for an unauthorized
person to receive the orders in the absence of such assigned manager.
Naturally, any person who is not a registered sales representative shall not receive any order, because theact of receiving an order is regarded as an act of sales.

Q6: For each case of solicitation by customer visit, telephone, or at the counter of branch office, if an elderly
customer wishes to make a purchase of the Products Requiring Cautious Solicitation on the day of such
solicitation, how should we respond?

－12－

A: In principle, it is considered appropriate to receive orders from elderly customers on the day following
solicitation or thereafter for the Products Requiring Cautious Solicitation.
However, given the possibility of problems arising from taking a uniform approach, it is considered that
there may be cases to be excluded from the procedures mentioned above where such an elderly customer
sufficiently understands the characteristics of the relevant product with the past investment experience in the
products of the same kind and has unavoidable reason to request purchase on the day of solicitation.
However, the scope of the exception must not be set so wide as to injure the intent of establishing theinternal rules for solicitation to elderly customers.
Example of exceptional cases to be permitted may include the following; however, each member company
should properly specify such cases in light of its business conditions, size, customer distribution, etc.
Furthermore, it should be noted that all cases are subject to the prior approval of the relevant managers incharge and that the sales representatives must be assured that there are no issues concerned with the elderly
customers’ health and their understanding of the products.
Even in the following exceptional cases, if such elderly customer intends to purchase a type of product for
which she/he has no investment experience in the past or intends to make an investment that is significantly
larger in monetary amount than those of the past, it is necessary to take prudent actions as follows: for thesales representative to consult the relevant manager on the appropriateness of the order received on the same
day of solicitation and for such manager to confirm the customer’s intention if appropriate.
<Exceptional cases where same-day order can be accepted>‐

Where proposal is made for a purchase on the following day of solicitation for the Products
Requiring Cautious Solicitation, a customer wishes to purchase the product on the same day due tounavoidable reason for the request of same-day purchase while fully understanding the productattributes (e.g., the customer will be absent from the next day due to travel; additional purchase of thesame product already held by such customer, so-called roll-over investment after the redemption of
the product held by the customer including the instance where proceeds are temporarily deposited
into an MMF denominated in the same currency, etc.).

5. Communication and confirmation of the details of a transaction, and continuous condition check
Q1: When, how, and by whom should the communication and confirmation as to the details of a transaction be
usually made when solicitation for sale was made to an elderly customer aged 80 or over?
A: As a general rule, when conducting solicitation and entering into a contract with elderly customers aged 80
years or more for any Products Requiring Cautious Solicitation, the sales representative shall conduct
solicitation with the prior approval of the relevant manager in accordance with its internal rules, and enter
into the contract after allowing the customer a period of contemplation for such solicitation and the customer
intention being confirmed by the manager. However, the elderly customer may become uncertain about thetransaction due to the change of his/her physical condition, memory, understanding, etc. after the event.
Therefore, it will be appropriate that a person other than the sales representative who solicited the elderly
customer should contact and confirm with such elderly customer about the details of the transaction to make－13－

sure that such elderly customer is aware of the transaction. It is not always necessary to communicate andconfirm the contents of each transaction in relation to all elderly customers. Taking into account the
attributes, transaction records, etc. of the relevant elderly customer, internal rules may be specified regarding
the type of customers, frequency, method (including recording method) and the person who performs suchduties according to the level of each customer’s risk (Note 1).
Although communication and confirmation as to the details of transactions must be made by a person
other than the sales representative (Note 2), it is acceptable for the sales representative to inform the elderly
customer in advance of such communication from the relevant manager, etc. or to attend the meeting or
telephone call to be made by such manager.
Meanwhile in the event that such elderly customer is found not to remember all or part of the contents ofthe contract or to have a different understanding (such as “I did not ask you to buy.”, etc.) at the time ofcommunicating and confirming the details of the transaction, it is essential to immediately report the matterto the internal control manager, etc. and consult them about future response.
(Note 1) It is possible to conduct this communication and confirmation as to the details of transactions at thesame time as continuous condition check discussed in Q2. However, in such a case, as described in Q2,
it is necessary for a person who is capable of making an appropriate judgment regarding the customer
management and the appropriateness of transactions to do so. For example, a person who performs
internal control as part of daily customer and transactions management may assume the responsibility,
or a sales manager in charge of granting prior approval at the time of solicitation may assume such
responsibility.
(Note 2) When a manager is also a sales representative for an elderly customer, it is considered desirable inprinciple for another manager to communicate and confirm the details of a transaction. However, wheresuch manager in a certain or higher position is designated as appropriate by the member company inlight of their professional experience and other factors, the relevant manager may communicate andconfirm the details of the transaction to his/her own elderly customer.

Q2: Do we need to conduct condition check of elderly customers on a continuing basis? And when doing so,
how do we conduct continuous condition check?
A: Since memory, comprehension, physical conditions, etc. of elderly customers may change in a relatively
short period of time while more prudent attention is required for their cash flow, financial assets held, andchanges in investment policy, it is considered necessary for the member company to keep track of theircondition.
The following may be considered as items to be examined at the time of the continuous condition check:(a) To check whether elderly customers fully recognize their own transactions and the current status ofproducts held by them (e.g., market prices, valuation gain or loss, market environment, etc.);(b) To examine the health conditions, ability to memorize and understand in relation to making
investment decisions, etc., and any changes thereto concerned with elderly customers;(c) To check whether there is any change in the cash flow status of and financial assets held by elderly－14－customers, as well as their investment policy.
Based on the review discussed in (a) through (c) above, it should be discussed whether additional
measures are required for any customers subject to the Guidelines.
In addition, it is necessary for a person who is capable of customer management and making a proper
judgment on the appropriateness of any transactions such as a person in charge of internal control or a sales
manager, to perform the continuous condition check(*).
With regard to the continuous condition check,(i)taking into account the attributes and transaction records, etc. of the relevant elderly customer,
internal rules may be specified regarding the type of customers, frequency, method (including
recording method), and the person who performs such duties according to the level of eachcustomer’s risk;(ii) It is considered acceptable for the sales representative to inform the elderly customer in advance or toattend the meeting as is the case with the communication and confirmation of the transaction details
discussed in Q1.
Also, communication and confirmation of the details of the transaction discussed in Q1 may be
conducted on the same occasion as the continuous condition check.
* When a manager is also a sales representative for an elderly customer, it is considered desirable in principle
for another manager senior to such manager to conduct the condition check. However, where such amanager in a certain or higher position is designated as appropriate by the member company in light of
their professional experience and other factors, the relevant manager may conduct the condition check on
an ongoing basis.

6. Monitoring
Q1: Is it necessary to perform monitoring over the sales solicitation for elderly customers? If so, what should
we do?
A: It is necessary to ensure whether the internal rules established for elderly customers are being properly
implemented. Moreover, by not only conducting formalized check but also examining the details of
conversations and reactions of elderly customers, we can expect the benefit of improving our businessapproach and preventing any trouble from occurring.
With regard to the monitoring, it is recommended to implement by combining daily and monthly
inspections at branch offices with inspections and audits at regular intervals in accordance with theprevailing circumstances pertinent to the business operation and size of each member company, with themain checking items being (i) whether or not transactions are being conducted in accordance with theprescribed approval and contracting process and (ii) whether or not there is any inappropriate transaction
from the perspective of suitability and reasonableness.
Specifically, the following can be considered; inspection of the transaction details, playback of therecorded conversations, reference to the meeting record, inspection of the accepted “purchase instruction
form,” etc. It is also considered to be effective for the internal control manager and other managers to－15－

interview elderly customers.

Q2: What should we do in inspecting the transaction details?
A: It is important to monitor transactions with elderly customers, for example, by contract date. In light of thefrequency, amount of money involved, type of products, etc. in relation to the past transactions with suchelderly customers, as well as their assets under custody, it is considered possible to ascertain whether any
major change has occurred to such elderly customers or whether such elderly customers are engaged inreasonable transactions or subject to aggressive solicitation by checking the records of telephone
conversation, order receipts, etc. (hereinafter collectively referred to as the “Communication Records”) as
appropriate in order to inspect whether such elderly customers are engaged in any doubtful transactions, suchas a sudden high-value transaction or repeated transactions in a short period of time. It is also important toexamine the reasonableness of transactions from the chronological viewpoint rather than from a fixed point
in time.

Q3: Do we need to check compliance with internal rules for all transactions with elderly customers?
A: As to whether or not a sales representative is engaged in appropriate solicitation, it is considered desirable toexamine the Communication Records of all transactions concerned with the Products Requiring Cautious
Solicitation by elderly customers, by playing back records of telephone conversation among others. However,in reality, it may be difficult to check all the Communication Records. Therefore, it is conceivable to conduct
monitoring of the Communication Records by selecting and specifying the elderly customers and types of
products subject to such monitoring according to their attributes, characteristics, and so on. For example, you
may select transactions to be monitored from the following:(i) High-value transactions and transactions of specially complex structure;(ii) Transactions of very old customers; and(iii) Those conducted by an elderly customer engaged in transactions frequently; etc.
In addition to reviewing the transactions relevant to the descriptions above, it will also be effective tosample elderly customers at random for the examination so that transactions concerned with a large numberof sales representatives can be reviewed within a certain period of time.

Q4: Do we have any obligation to keep the Communication Records? If so, how many years should we keepthem?
A: Because the Communication Records may be used not only for examining (monitoring) whether sales
representatives, etc. properly comply with the internal rules, but also as confirmation materials wheninquired about the situations surrounding the relevant transaction by the elderly customers themselves ortheir family members at a later date, it is considered desirable to set a sufficient safekeeping period according
to the circumstances of each member company.

7. Handling of customers excluded from application of the Guidelines in accordance with Internal Rules－16－

Q1: How should we handle the customers who are excluded from application of the Guidelines in accordancewith the procedures set forth in the internal rules?
A: Those elderly customers who are excluded from application of the Guidelines in accordance with theprocedures set forth in internal rules may also experience changes in their memory, comprehension, etc. overtime. In addition, their financial conditions, investment policy, and others may have changed significantly.
Accordingly, it is necessary to continuously observe the transactions, etc. of customers who are not subject
to the Guidelines in accordance with the internal rules, and if there is any remarkable change in the details oftransactions, or if there is any sudden incidence of large deposits or withdrawals, losses, etc., the persons in
the internal control division or the managers appointed by such person shall check the current status of theelderly. Where there is a change confirmed in the situation of the relevant elderly customer, the member
company shall take suitable actions, such as removing the customer from the list of those excluded from theapplication of Guidelines and start treating him/her according to the ordinary procedures.
End.

Supplementary ProvisionThis amendment will come into effect on October 13, 2016.
* The amended section:
4. Location and Method of Solicitation; Answer to Q4

Supplementary ProvisionThis amendment shall come into effect on August 1, 2021.
* The amended section:- Amendment to Q2 (i) and (iv) and Q3 of Section 1; Q2 of Section 2; Q1 and Q4 of Section 3; and heading and Q1 of Section 5- Overall revision to Q2 of Section 5; and establishment of Section 7－17－

Guidelines for Notifying Total Return of Investment Trusts
Established on September 18, 2013

1. Provisions and Supplementary Provisions of the “Regulations for Direct Offering, etc. of Beneficiary Certificates, etc.”
Provisions and Supplementary Provisions of the Regulations

Guidelines

Article 10-2
Notification of Profit or Loss of Investment Trusts
A Full Member must notify customers of profit or loss (referred to as “Total
Return” in the Bylaws) relating to an investment trust managed by the Full
Member (meaning an investment trusts managed under instructions from thesettlor and investment trusts managed without instructions from the settlor;
the same shall apply hereinafter in this article) through entries or records in atransfer account book as set forth in the By-laws.

- Specific contents concerning the notification of Total Return of investment trusts are set
forth in the By-laws, and such By-laws are also part of the “Regulations for Direct
Offering, etc. of Beneficiary Certificates, etc.”- These Guidelines, on the other hand, summarize the practical treatment and considerations
regarding the notification of the Total Return of investment trusts.

Supplementary ProvisionThis amendment shall come into effect from December 1, 2014, and apply toinvestment trusts newly purchased by customers on or after suchenforcement date.

- For investment trusts newly purchased by customers on or after the effective date of the
Revised Regulations (December 1, 2014), the Total Return shall be notified.
Therefore, from the effective date of the Revised Regulation, accumulation of data to becontained in the Total Return notification must begin (the effective date of the Revised
Regulations is not the date of commencing the notification).
For example, a company whose base date of calculation is December 31 needs to give an
initial notification of Total Return on any investment trust newly purchased by acustomer between December 1, 2014 (the effective date of the Revised Regulations) and
December 31, 2014.
- In the event that a customer purchases the same investment trust held by such customer
prior to the effective date of the Revised Regulations again after such effective date(additional purchases), the Total Return may not be accurately calculated, and therefore
the notification of Total Return for such purchase is not required, and may be determinedat the discretion of each Full Member (see below). However, the Total Return shall be
notified for any investment trust newly purchased (new purchase) after the effective dateof the Revised Regulations.
- The handling of investment trusts held by customers prior to the enforcement date of the
Revised Regulations shall be determined by each Full Member to act on its own
initiative. However, for investment trusts newly purchased by customers after the date ofrevision concerned with the Regulations (September 18, 2013), the Full Members shallendeavor to notify the Total Return of the relevant investment trusts. In the event that itis difficult to go back to the date of revision of Regulations with respect to thenotification requirement, each Full Member shall designate a practical date for the
response and endeavor to notify a customer of the Total Return of investment trust newly-1-

Provisions and Supplementary Provisions of the Regulations

Guidelines
purchased by the customer after such designated date.
- With regard to investment trusts purchased prior to the date of revision of the Regulations,
it is desirable that each Full Member actively works to implement such changes to an
extent possible after examining the necessity of any change from the existing notification
currently in place and the size thereof as well as the possibility and ease of integrating
past data, the cost required for such integration, and so on.
- With regard to the treatment of investment trusts held by customers prior to theenforcement date of the Revised Regulations, rather than treating all investment trusts ina uniform manner, each Full Member may designate different dates subject to the new
notification provision according to the types of investment trusts; e.g., distribution type,reinvestment type, monthly distribution type, and so on.

2. By-laws of the Regulations for Direct Offering, etc. of Beneficiary Certificates, etc.
(1) Scope of subject investment trusts
Contents of the By-laws

Guidelines(i) Notification of the Total Return shall be given for those investment
trusts where the public offering of securities (as defined in Article 2,
Paragraph (3) of the Financial Instruments and Exchange Act; (Act No.
25 of 1948; hereinafter referred to as the “FIEA”)) was conductedamong all investment trusts (meaning investment trusts as defined in
Article 10-2 of the Regulations; the same shall apply hereinafter), which
are managed by Full Members through entries or records in a transfer
account book.
(ii) Notwithstanding (i) above, the following investment trusts may be
excluded from the requirements for the Total Return notification.
(a) An investment trust that was being traded on the Financial Instruments
Exchange Market at the time of the customer’s purchase- The By-laws shall apply to publicly offered investment trusts but not to privately placed
investment trusts.

(b) Investment trusts purchased by a customer as investment assets under adiscretionary investment contract (meaning contracts as defined in
Article 2, Paragraph (8), Item (xii) (b) of the FIEA)(c) Investment trusts listed in the provisions of Article 65, Item (ii) (a)through (c) of the Cabinet Office Ordinance on Financial Instruments
Business, etc. (Cabinet Office Ordinance No. 52 of 2007)- The so-called ETF (Exchange Traded Fund) and listed REIT (Listed Real Estate
Investment Trust) may be excluded.
- When the investment trust was listed at the time of purchase by a customer, such trust
may continue to be excluded from the notification requirement even if such trust isdelisted thereafter.
- Investment trusts held under the so-called SMA, Wrap Account, etc. may be excluded
from the scope of application.
- The so-called MRF and MMF may be excluded.

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Contents of the By-laws

Guidelines(d) Bond investment trusts (meaning investment trusts as defined in Article
13, Item (ii) (a) or (c) of the Ordinance for Enforcement of the Act on
Investment Trusts and Investment Corporations (Cabinet Office
Ordinance No. 129 of 2000))- Since foreign investment trusts are not included in the provisions, foreign public andcorporate bond investment trusts cannot be excluded from the scope of application.

(e) Umbrella investment trusts (meaning an investment trust managed as asingle fund combining multiple sub-funds under management), which
satisfy all of the following requirements.
a. Funds that include two or more of sub-funds among those actively
investing in derivative products for other purpose than hedging and tobe linked either positively (bull-type fund) or negatively (bear-typefund) (including those aiming a positive or negative correlation of acertain multiple) to various indices, assets, etc., according to theirinvestment trust contracts, etc.; sub-funds that are provided for tofunction as temporary reserve fund to ensure the stable management(money pool fund)b. Funds where switching between sub-funds is possible (including subfunds other than those described in a. above ; the same shall apply toc. below)c. Funds that do not include sub-funds that make distributions more than
twice a year(f) Investment trusts and the so-called Million Investment Trusts that are
deemed to be a savings contract under the workers’ property
accumulation savings system (as defined in Article 6; Paragraphs (1),(2), and (4) of the Workers’ Property Accumulation Promotion Act (ActNo. 92 of 1971)) and for which the amount of deposit, etc. shall be
notified periodically (as provided for in Article 13-20 of Enforcement
Order for the Workers’ Property Accumulation Promotion Act (Cabinet
Order No. 332 of 1971))(g) Investment trusts purchased using funds contributed by a defined
contribution pension plan (meaning a defined contribution pension as
defined in Article 2, Paragraph 1 of the Defined Contribution Pension
Act (Act No. 88 of 2001))(h) Investment trusts for which a purchase agreement has not beenconcluded between the relevant Full Member and the customer
Provided, however, that investment trusts succeeded as result of amerger between Full Members or a company split shall be handled as
described in (iii) below.

- The so-called bull-bear fund often has a money pool fund under the umbrella as reserve
fund, and all sub-funds under the same umbrella including such money pool fund may be
excluded from the scope of application.
However, with respect to all umbrella investment trusts that hold any sub-fund that makes
distributions more than twice per year in addition to the bull-bear fund, all sub-funds are
subject to the Total Return notification.
Also, any investment trust consisting solely of a bull-type fund (or solely of a bear-typefund) is subject to the notification requirement of Total Return.

- Investment trusts acquired as a result of inheritance by, or transferred from othercompanies (including a transfer as result of business transfer) to the relevant customer,
may be excluded from the scope of application because such customer has not made apurchase at the relevant member company. However, the market price, etc. on the date of
their receipt into such customer’s account may be applied as the purchase price for the
purpose of Total Return notification.

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Contents of the By-laws

Guidelines(i) Investment trust transferred between the accounts held by the same
member company- In the event of a transfer from a tax-exempt account (NISA account) to a taxable accountor a transfer between the accounts held by the same member company, investment trust
after such transfer may be excluded from the scope of application.
- Even if the customer makes an additional purchase, it may be excluded from the scope of
application as long as such customer continues to hold such investment trust for morethan ten (10) years since the initial purchase.
- At its own discretion, a Full Member may elect to notify the Total Return of suchinvestment trust held for more than ten (10) years. In this case, it is not necessary tofollow the methods set forth in the By-laws concerning the calculation and notification.
- In the event of a merger or a company split, the successor company is considered to takeover the customers’ information, but on the assumption that it may be difficult to takeover such information due to differences in the systems used, etc., it is accepted that themarket price, etc. on the date of receipt shall be used as the purchase price, or that theaccumulated distribution received prior to such receipt may be excluded from thecalculation of the Total Return.

(j) Investment trust held by a customer for more than ten (10)consecutive years(iii) Notification of the Total Return for investment trusts held by customers
that have been succeeded as a result of a merger between Full Members ora corporate split shall be provided by the surviving company or the
successor company.
In this case, notification of the Total Return shall be given for the entire
period during which the customer holds such investment trust. However, if
it is difficult to transfer the relevant data, the purchase price may be
determined by applying the market price, etc. on the date of receipt of suchinvestment trust into the customer’s account, or the accumulated
distribution received prior to such receipt may be excluded from thecalculation of the Total Return.

- With regard to the handling of (1) Scope of subject investment trusts, (i) through (iii)
above, an environment shall be established so that customers can understand such
handling (see (iii) under (6) Contents of notification).

(2) Scope of subject customers
Contents of the By-laws

Guidelines

Individual customers (excluding professional investors).
However, Professional investors and corporate customers may be included.

(3) Method of calculating the Total Return
Contents of the By-laws(i) The Total Return shall be the amount calculated using the following
formula:(“(a) Appraisal value” +“ (b) Cumulative distribution amount received” +“(c) Accumulated sales proceeds”) − “(d) Accumulated purchase amount”

Guidelines- Total Return shall be expressed in monetary amounts (not in a percentage).
- The means of calculating the Total Return for various types of investment trusts are as
follows:(a) Umbrella Investment Trust (excluding those falling under (1) Scope of subject
investment trusts, (ii)(e))-4-

Contents of the By-laws

Guidelines
Calculate the Total Return for each sub-fund.
(b) Where a customer holds the same investment trust both in a distribution account andin a reinvestment account:Any of the following shall be acceptable:(i) calculate the Total Return separately for the distribution account and thereinvestment account or(ii) calculate the Total Return by combining those held in the distribution accountand the reinvestment account.
(c) Where a customer holds the same investment trust in multiple accounts
When a customer holds the same investment trust in multiple accounts such as bothin a tax-exempt account (NISA account) and a taxable account, or both in a specified
account and a general account, any of the following shall be acceptable;(i) calculate the Total Return for each account or(ii) calculate the Total Return by combining those held in multiple accounts.
[Note 1] Investment trusts held in tax-exempt accounts (NISA accounts) are also subject
to the Total Return notification.
[Note 2] In case of transfer from a tax-exempt account (NISA account) to a taxable
account, such investment trust transferred may be excluded from the Total Returnnotification (see (1) Scope of subject investment trusts, (ii)(i)).
(d) Where a customer holds the same investment trust at multiple business offices or
through multiple sales channels (sales channel through face-to-face transactions,Internet transactions, etc.)
Any of the following shall be acceptable:(i) calculate the Total Return for each business office or each sales channel, or(ii) calculate the Total Return by combining all the holdings of the same investment
trust purchased at multiple sales offices or through multiple sales channels.
(e) Where the beneficiary certificates of an investment trust are split or consolidated, or
the investment trust is merged with another investment trust while being held by acustomerIf beneficiary certificates are split or consolidated during the period held by acustomer, the Total Return for the entire holding period of such customer shall becalculated, not after such split or consolidation.
Where investment trust is merged with another investment trust while being held by acustomer, the Total Return shall be calculated for the newly merged investment trust.
In this case, it is accepted to use the market price, etc. on the date of receiving the
newly established investment trust as the purchase price, or to exclude the cumulative
distribution amount received made by the former investment trust from the calculationof the Total Return.
- With regard to the handling of instances described in above (a) through (e), an
environment shall be established so that customers can understand such handling (see (6)Contents of notification, (iii)).

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Contents of the By-laws(ii) The numerical value for each factor in the calculation formula forinvestment trusts shall be derived as follows:(a) Appraisal value shall be obtained by evaluating all units of theinvestment trust held by the relevant customer on the base date ofcalculation.
Appraisal value = [Base value on the base date of calculation] ×[Number of units held on the base date ofcalculation] / [Calculation unit](Note) The Redemption value may be used in lieu of the base value.
(b) Cumulative distribution amount received means sum of the distribution
payments received (after tax) by the relevant customer during his/herholding period of the relevant investment trust. However, reinvested
amount of any distribution from the reinvestment-type investment trust
shall not be included.
Cumulative distribution amount received = [Cumulative sum of
distribution payments received]
Distribution payments received = [Distribution payment for theperiod (distribution amount per unit × number ofunits held)] − [Tax on distribution for the period](Note 1) Reinvested amount of the reinvestment account may be includedin the cumulative distribution amount received. Provided, however,
the reinvested amount shall also be included in the accumulated
purchase amount.
(Note 2) Distribution payments received may be used on a pre-tax basis.
(c) Accumulated sales proceeds mean the total sales amount received by
the customer as a result of partial sale(s) of his/her holdings during theholding period of the relevant investment trust.
Accumulated sales proceeds = [Cumulative sum of sales proceeds]
Sales proceeds = [Redemption value] × [Number of units to be sold] /[Calculation unit] − [Redemption fee] − [Consumption tax onredemption fee](d) Accumulated purchase amount means the cumulative sum of amounts
used to purchase the relevant investment trust. However, reinvested
amount of any distribution from the reinvestment-type investment trust
shall not be included.
Accumulated purchase amount = [Cumulative sum of purchaseamounts]
Purchase amount = [Contract Price (Base value × Number of units
purchased / Calculation unit)] + [Sales commission] + [Consumption
tax on sales commission](Note) When reinvested amount of the reinvestment account is includedin the cumulative distribution amount received, such reinvestment

Guidelines- The redemption value means the amount obtained by deducting the amount retained in thetrust from the base value.
- The formula for calculating the distribution amount for the current period is fordemonstration only, and other formula may be used.
- The distribution payment received need not be the same as the so-called settlement
amount at the time of payment of the distribution.

- The sales proceeds may not be the same as the so-called settlement amount at the time ofredemption.
- The redemption value means the amount obtained by deducting the amount retained in thetrust from the base value.

- Purchase amount means the so-called settlement amount at the time of purchase.
- With regard to investment trusts for which customers pay fees and expenses other thansales commissions at the time of purchase, the purchase amount may be calculated
including such fees, expenses, and consumption tax thereon.

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Contents of the By-laws
shall also be included in the accumulated purchase amount.
(iii) For investment trusts denominated in foreign currencies, the Total Returnshall be calculated in the currency (foreign currency) pertinent to suchinvestment trusts. However, the Total Return may also be calculated on a
yen basis.

Guidelines- Either of following methods is acceptable: (i) calculating and notifying the Total Returns
in a currency denominated (foreign currency), (ii) calculating and notifying the Total
Returns on a yen basis, or (iii) calculating and notifying the Total Returns in bothcurrencies (yen and relevant foreign currency).
- For treatment of (3) Method of calculating the Total Return, (i) through (iii), an
environment shall be established so that customers can understand such treatment (see(6) Contents of notification, (iii)).

(4) Method of notification
Contents of the By-laws

Guidelines(i) Notification of the Total Return shall be made by any of the followingmeans;(a) delivery of documents,(b) transmission using a facsimile machine,(c) transmission via email (meaning email as prescribed in Article 2, Item(i) of the Act on Regulation of Transmission of Specified Electronic
Mail (Act No. 26 of 2002)),(d) transmission via the Internet or any other telecommunication line.

- Since specific methods of the notification are not set forth in the By-laws, each Full
Member may notify their customers in such a manner judged to be appropriate, forexample, by enclosing the Total Return notification with other documents, sending such
notification alone, etc.
- The method of displaying on the exclusive screen for each customer of the web page
(screen displayed after the login) falls under the method described in (d).

(ii) If notification of the Total Return is provided via a method set forth in (b)through (d) of (i) above, the prior consent of the relevant customer shall beobtained for using the said method to provide notification of the Total
Return. However, customers who have already agreed to receive otherdocuments via electromagnetic means may be notified in advance of thefact that the notification of the Total Return will be delivered via suchmeans in lieu of consent.

- The method of the Total Return notification for each customer may be changed, forexample, from the method of “(a) delivery of documents” to “(d) Transmission via theInternet or other telecommunication line.” In this case, however, it is necessary tochange the notification method after obtaining a customer consent and complying with
the notification procedures in accordance with the provisions of (ii) and (iv) of (4)Method of Notification for each notification method.
- Although any means of obtaining a consent (oral, written, facsimile, email or on the
exclusive screen for each customer of the web page, etc.) may be accepted, prior consent
from the customer shall be obtained concerned with the notification to be given in themanner set forth in (i)(b) through (d) of (4) Method of notification (e.g., transmission
using email). In the event that notification is given by the mean set forth in (4) Methodof notification, (i)(d), it may be considered that consent has been obtained by sending awritten notice to the customer informing that the Total Return will be notified throughthe display on the exclusive screen for the customer on the website unless the customer
requests in writing such notification to be given in the manner of documents delivery (asset forth in (4) Method of notification, (i)).
- “Electromagnetic means”" means “Electromagnetic Means” as defined in Article 56,
Paragraph (1) of the Cabinet Office Ordinance on Financial Instruments Business, etc.
- When applying (4) Methods of notification, (i)(d) above, a written notification to obtainthe consent mentioned above (or a written notification in lieu of the consent in the provisoof the left column) and a written notification provided for in (4) Methods of notification,-7-

Contents of the By-laws

Guidelines(iv) may be combined.

(iii) Notwithstanding the provision of (i) above, until November 30, 2017, aFull Member may notify its customers of Total Return by responding toinquiries received from such customers regarding their Total Returns. In
this case, the method of notification of the Total Return may be oral or anyof the methods set forth in (a) through (d) of (i) above.
(iv) When notifying a customer of the Total Return in the manner set forth in(i),(d) above or pursuant to the provision of (iii) above, a Full Member
shall send a written notification that the customer can receive the Total
Return notification in such electromagnetic means before such customer
becomes able to receive the notification by such means. However, any
customer who has already given consent to receive other documents byelectromagnetic means may be notified by such means in lieu of written
notification (the same shall apply to the notification provided for in (6)Contents of notification, (ii) below.).

- When giving the notification on the exclusive screen for each customer of the company
website or by replying to inquiry from a customer, advance notice in writing, etc. to thecustomer is required.
- The phrase “before such customer becomes able to receive the notification by suchmeans” means until the Total Return is transmitted to the customer through the Internet
or other telecommunication line (as stipulated in (4) Method of notification, (i)) or until
the customer is able to make an inquiry for the Total Return (as stipulated in (4) Methodof notification, (iii)).
- “Electromagnetic means”" means “Electromagnetic Means” as defined in Article 56,
Paragraph (1) of the Cabinet Office Ordinance on Financial Instruments Business, etc.
- The consent and notification as stipulated in (4) Method of notification, (ii) or (iv) may berendered before the effective date of the Revised Regulations.

(5) Frequency of notification and base date of calculation
Contents of the By-laws

Guidelines(i) Notification of the Total Return as provided for in (4) Method of
notification, (i) above shall be given at least once a year. In this case, thebase date of calculation for the Total Return shall be determined by each
Full Member, and the Total Return of the investment trust held bycustomers on such base dates shall be notified to the relevant customers.

- The base date of calculation shall be determined at the discretion of each Full Member.
- Different notification frequencies and base dates of calculation may be applied subject tothe types of sales channels; e.g., face-to-face transaction, the Internet customers, etc. Or,
customers may be divided into several groups in consideration of administrative works,etc. required in relation to the notification, and the base date of calculation may be set foreach group.
- In addition to the Total Return of investment trust held by customers on base date ofcalculation, the Total Return of investment trust totally sold by customers during therelevant calculation period (from the day following the previous base date of calculation
to the current base date of calculation) can be notified.
- The Regulations stipulate that the frequency of the notification shall be not less than once ayear. However, in consideration of customers’ needs, it is desirable for each Full Member
to take a more proactive approach to the frequency of notification (e.g., to give
notification at the same frequency as that of the transaction balance statement, or to give
the Total Return notification once a year but give the latest calculated Total Return wheninquired by a customer by calculating such Total Return every month).
- Regarding the method of displaying the Total Return on the exclusive screen for eachcustomer of the company website, the Total Return shall be calculated at least once a-8-

Contents of the By-laws(ii) When providing notification in accordance with (4) (iii) above, the Total
Return shall be calculated at least once per year and the most recently
calculated Total Return shall be notified.

Guidelines
year. In this case, care should be given so as not to cause the customer any
misunderstanding by clearly indicating on such screen, etc. the base date of calculation.
As for the contents of notification including the base date of calculation, see (6) Content
of Notification, (i).
- Where the Total Return is notified as a response to a customer inquiry, the Total Returnshall be calculated at least once a year as stipulated in the Regulations. In this case, thecustomers shall be informed of the base date of calculation in order not to cause them any
misunderstanding. As for the contents of notification including the base date of calculation,see (6) Content of Notification, (i) and (ii).

(6) Content of notification
Contents of the By-laws

Guidelines(i) The Total Return notification shall include the following items:(a) Name of the relevant investment trust;(b) Base date of calculation;(c) Appraisal value;(d) Cumulative distribution amount received and accumulated sales
proceeds (notification of the total amount of receipts, which is the sumof both, is acceptable.);(e) Accumulated purchase amount;(f) Amount of Total Return;(g) Calculation formula of Total Return;(h) Statement to the effect that the amount stated in the document may not
be used for calculating taxes; and(I) Other matters deemed necessary by the Full Members.

- Regardless of the means as provided for in (i)(a) thorough (d) of (4) Method of
notification, it is necessary to give the notification of Total Return on the matters listed in
the left column:- With regard to the terms used in (a) through (h) in the left column such as “Appraisal
value,” “Cumulative distribution amount received,” “Accumulated sales proceeds,”“Accumulated Purchase Amount,” “Total Return,” any terms other than those used in (a)through (h) in the left column may be used in the notification. However, the numericvalue (monetary amount) of the notification must be calculated in accordance with theprovisions of (3) Method of calculating the Total Return of the By-laws.
- Examples of notification are as follows:<Example>
Base date of calculation: YYYY/MM/DD
Name of Investment
Trust
XX Investment Trust
Accumulated
Purchase Amount[D]
XXX YenAppraisal value [A]Cumulative
Distribution Amount
Received [B]
XXX YenXXX YenTotal Return [A + B + C −D]

Accumulated Sales
Proceeds [C]XXX YenXXX Yen* The amount in this table cannot be used for tax calculation purpose such as for tax return.
[Note] The Cumulative distribution amount received [B] and the accumulated sales proceeds[C] may be combined as the Accumulated amount received.
- The obligation to keep the past history (cross-section) in the system and the notification
document is optional, and the obligation to safekeep the history of the Total Returnnotified in the past is not provided in the Regulations.

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Guidelines(ii) Notwithstanding (i) above, in the case of oral response to the inquiry as
described in (4)(iii), if the customer has been notified in advance inwriting concerned with matters described in (i), (g), and (h) above, theFull Member may notify matters described in (i), (a), (b), and (f) above as
well as other matters deemed necessary by such Member.

- The prior written notification set forth on the left column may be given in electromagnetic
means in lieu of a written document to customers who have already given a consent to theprovision of other documents by such manner (see (4) Methods of notification, (iv)).
- When responding to an inquiry from a customer at the discretion of a Full Member
concerned with the Total Return by other means than those listed in (4) Method of
notification, (a) through (d), it is desirable to state “(a) Name of Investment Trust,” “(b)Base date of calculation,” and “(f) Amount of Total Return.”- The matters considered as the “scope of investment trusts subject to notification of Total
Return” are, for example, as follows:(i) Inform customers of the investment trusts that are subject to the notification (orinvestment trusts not subject to the notification including those that can be excluded
from the notification requirement under the By-laws).
(ii) Inform customers of from when any new purchase is subject to the notification (e.g.,statement to the effect that investment trusts purchased on or after DD/MM/YY are
subject to the notification.).
[Note] If the Total Return notification is given for all investment trusts held by a customer
including those purchased by the customer prior to the effective date of the Revised
Regulations (limited to those investment trusts subject to the Total Returnnotification requirement), it is not necessary to provide the customer with theenvironment as defined in (ii) above.
- The matters to be considered as the “the basis of each calculation factor in the calculation
formula of the Total Return” are, for example, as follows:(iii) With regard to the notification of the Total Return, an environment must
be maintained in which customers can understand the scope of investment
trusts subject to the notification of the Total Return and the basis of eachcalculation factor in the calculation formula for the Total Return.

Formula factors
Appraisal value
Cumulative
distribution
amount received
Accumulated sales
proceeds
Accumulated
purchase amountBasis- Calculated based on the base value (or redemption value).
- Calculated on an after-tax basis (or before-tax basis).
- Details of any special treatment, if any, such as excluding any
distribution made before the transfer of accounts in the case of suchtransfer- Calculated after the deduction of commissions, etc.
- Fees, etc. are included in the calculation.
- Details of any special treatment, if any such, as applying a market
value at the time of account transfer in the case of such transfer- Following are examples of an environment where the customers can understand the scopeof investment trusts subject to the Total Return notification and the basis of eachcalculation factor in the calculation formula of the Total Return (hereinafter collectively
referred to as the “Scopes, etc. for Total Return”)(i) Describe the Scopes, etc. for Total Return in the notification of the Total Return.
(ii) When giving the notification through transmission over the Internet or any othertelecommunication line, the Scopes, etc. for Total Return may be displayed on thescreen of the web page.

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Contents of the By-laws

Guidelines(iii) Before or at the time of notifying the customer of the Total Return for the first time,
send a written document describing Scopes, etc. for Total Return.
(iv) Scopes, etc. for Total Return may be displayed on the Member’s website and the
Total Return notification may include the web page address displaying such Scopes,
etc. for Total Return, and the statement to the effect that document describing such
Scopes will be sent to a customer if requested by the customer.
[Note] Regarding Scopes, etc. for Total Return, it is not necessary to inform the customersof all matters in the uniform manner, and any of the methods in (i) through (iv) above
may be combined as appropriate. It is also acceptable to combine any of the methods in(i) through (iv) above according to each customer.
- Care should be taken to use easy-to-understand terms for customers in notifying them of
the Scopes, etc. for Total Return

End.

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Internal Control Framework for Segregated Management
Established on June 8, 2017

1. Introduction
In order to secure the proper implementation of the segregated management of customer assets bymembers of investment trust management companies, etc. (hereinafter referred to as “members”), as
provided for in Article 2, Item 1 of the Order Regarding Account Management Institutions and Articles 11
and 12 of the Regulations for Direct Offerings, etc. of Beneficiary Certificates, etc. (hereinaftercollectively referred to as the “laws and regulations”), the internal control framework for segregatedmanagement has been established as guidelines for smooth preparation and operation of policies andprocedures for the members to comply with the laws and regulations, etc. regarding segregatedmanagement of customer assets when they receive audit by certified public accountants or auditing firms(hereinafter referred to as “certified public accountants, etc.”) on a regular basis at least once a year on thestatus of segregated management of customer assets under the provisions of Article 43-2, Paragraph 3 of
the Financial Instruments and Exchange Act (hereinafter referred to as the “Financial Instruments andExchange Act”) in accordance with the provisions of Article 43-2, Paragraphs 1 and 2 of the same article.
The Internal Control Framework for Segregated Management is considered to function as a guideline
for the establishment and operation of a system for compliance with the laws and regulations, etc. pertinent
to the segregated management by our members, and also as a certain standard established for performing
the Assurance Engagements for compliance with the relevant laws and regulations, etc. concerned with thesegregated management by certified public accountants, etc. (hereinafter referred to as the “Assurance
Engagements”) pursuant to No. 56 of Practical Guidelines by the Business Committee of the JapaneseInstitute of Certified Public Accountants; “Practical Guidelines for Assurance Engagements forCompliance with Laws and Regulations, etc. for Segregated Management of Customer Assets at
Investment Trust Management Companies, etc. for Direct Offerings of Beneficiary Certificates, etc.” (June23, 2017).
The Attachment 2 “Check items and checkpoints for segregated management of customer assets” ispublicly available as the reference for each member to check the degree of achievement in relation to theinternal control objectives and for the certified public accountants, etc. to apply as reference materials
when performing the Assurance Engagements.
As described later, internal control should be developed and operated in accordance with theenvironment, characteristics, and size of the business, etc. relevant to each member. Therefore, it is not
required for all members to conform to the examples as shown in Attachments 1 and 2. Rather, it isadvisable for each member to establish an organizational structure according to its own circumstances, andto selectively use the relevant examples.

－ 1 －2. General Framework for Internal Control
Generally, internal control is established within a company for the purpose of enhancing the effectivenessand efficiency of business management, securing the reliability of financial reporting of the company,
promoting compliance with the laws and regulations concerning business management, and protecting theassets. Internal control is considered to be performed by all persons who constitute the company.
Internal control is considered to consist of the following six elements: (i) control environment
comprising of management philosophy and basic management policy, functions of the Board of Directors
and Audit Committee, corporate culture, and general business practices; (ii) risk assessment function torecognize all management risks affecting the corporate objectives, to classify the nature of such risks andto evaluate the frequency and impact of their occurrence; (iii) various control activities including grantingof authorities and duties, and division of duties; (iv) information and communication function to ensurethat necessary information is properly communicated to the relevant departments and responsible persons
as appropriate in a timely manner; (v) monitoring activities to ensure these functions to be properly
monitored, evaluated, and corrected if necessary at all times; and (vi) appropriate response to internal andexternal IT requirements for conducting business operations based on the appropriate policies andprocedures predetermined to achieve the corporate objectives.
These six elements of internal control are all necessary to achieve the objectives of internal control
discussed above. Since these six elements interact with each other and function as an integral part of the
management structure, they are relevant to the entire organization. Furthermore, they can be seen to beconcerned with each division of an organization, each business operation, and each transaction cycle.
Therefore, in order for the internal control of a division to be effective, all six elements related to theinternal control objectives described above must be present.
Since internal control is established by the management themselves within an organization for the
purpose of achieving the corporate objectives, the final responsibility for developing and maintaining theinternal control rests with the management.
Although an internal control system is established and operated to achieve the corporate objectives, itis necessary to keep in mind the inherent limitations of internal controls as follows:- Possible deviation in the internal control due to the error of judgment or carelessness of the person in
charge of internal control,- Inability to deal with a transaction that was not contemplated at the time of establishing the relevantinternal control,- Possible invalidation of the internal control functions through conspiracy by the person in charge ofinternal control and others, or- Possible invalidation of the internal control functions as result of neglect by the internal control
manager themselves.
Regarding more detailed explanation of the general framework of internal control, please refer to the“Standards for Management Assessment and Audit concerning Internal Control over Financial Reporting”
in the “Revisions concerned with the Standards for Management Assessment and Audit concerning Internal
Control over Financial Reporting and Practical Standards for Management Assessment and Audit－ 2 －concerning Internal Control over Financial Reporting (opinion paper)” issued by the Business Accounting
Council on March 30, 2011, and the “Report No. 315 of the Audit Standards Committee; Identification and
Evaluation of Material Misrepresentation Risk through Understanding Companies and the Corporate
Environment” issued by the Japanese Institute of Certified Public Accountants on May 29, 2015. Thesestandards demonstrate the concept of materiality with respect to the misrepresentation of the financial
statements. Meanwhile, Financial Instruments Business Operators have the obligation to properly manage
the assets of all customers by segregated management in accordance with the laws and regulations, etc.
concerning the segregated management, and the concept of materiality does not apply to their performing
such obligations.

3. Internal Control Framework for Segregated Management
The general framework for internal control is as described above, and internal control for segregatedmanagement is a mechanism developed within a company and operated by all constituent members of suchcompany for the purpose of complying with the laws and regulations specific to the segregatedmanagement among the laws and regulations concerned with business management.
The purpose of internal control for segregated management is to comply with the laws and regulations
regarding such segregated management. More specifically, it is considered to be a scheme designed andmaintained in order to achieve the following control objectives.
As to how to establish and operate an internal control structure for segregated management, in orderto achieve these control objectives, it is considered that the management of each member themselves
should devise ways to effectively fulfill the functions and roles of internal control described herein, taking
into account the environment, the nature, and scale, etc. of the business pertinent to each member.
In Attachment 1, key control points in establishing and operating the internal control for segregatedmanagement by each member are presented as “1. General Matters,” “2. Segregated Management ofSecurities,” and “3. Segregated Management of Money, etc.” for each control objective. Furthermore,among these key control points, the matters related specially to accounting and book keeping aresummarized as “4. Accounting and Book Keeping.”
The key control points may be regarded as specific guidelines for establishing and operating theinternal controls to achieve respective control objectives. They are summarized only for demonstrative
purposes, and may be supplemented, deleted, or corrected for their application as appropriate inaccordance with the circumstances pertinent to individual members.

<Control Objectives in Internal Control for Segregated Management>
1. General Matters(1) Directors shall recognize the importance of compliance with the laws and regulations, etc.
concerning the segregated management and shall be aware of the status of the organization’s
compliance with the relevant laws and regulations as appropriate.
(2) Organizational structure, etc. for compliance with the laws and regulations, etc. concerning thesegregated management has been established with each employee carrying out one’s daily duties－ 3 －based on full understanding of the relevant laws, regulations, internal rules, and other mattersregarding the segregated management(3) Independent department to properly monitor the status of segregated management in an appropriatemanner.

2. Segregated Management of Securities
2-1. General Matters
The officers and employees concerned shall comprehensively and accurately identify the scope ofcustomers’ securities subject to the segregated management as required by the laws and regulations, etc.
concerned with such segregated management in line with the types of business and products handled by
the Financial Instruments Business Operator.
2-2. Third-Party Custody(1) Customer’s consent shall be obtained for having a third party safekeep the relevant securities.
(2) The selection of a third-party organization to safekeep customers’ securities shall be appropriate fromthe viewpoint of protecting the customers’ assets.
(3) Outstanding balance of the customers’ securities subject to the segregated management shall becomprehensively grasped, and such securities are kept in a manner stipulated in the laws andregulations for segregated management (commingled custody, non-commingled custody).
(4) Among all securities in possession of a Financial Instruments Business Operator, the substantiality ofbook balance and status of the segregated management concerned with the securities under custodyof a third-party organization (separately for simple custody, commingled custody or joint custody)
shall be verified.
2-3. Account Management(1) Among customers’ securities subject to the segregated management, balance of those that arerecorded in the transfer account book as prescribed in the Act on Transfer of Corporate Bonds,
Shares, etc. (hereinafter referred to as the “Transfer Act”) shall be comprehensively grasped, andsuch securities are kept in a manner stipulated in the laws and regulations for segregatedmanagement.
(2) Among all securities in possession of a Financial Instruments Business Operator, the substantiality ofbook balance and status of the segregated management concerned with the securities recorded in thetransfer account book pursuant to the Transfer Act shall be verified.

3. Segregated Management of Money, etc.
3-1. General Matters(1) The officers and employees concerned shall comprehensively and accurately identify the scope ofcustomers’ securities subject to the segregated management as required by the laws and regulations,etc. concerned with such segregated management in line with the types of business and products
handled by the Financial Instruments Business Operator.
(2) The selection of a trust bank in which a segregated customer trust account is to be established shall－ 4 －be appropriate from the viewpoint of protecting customer assets.
(3) The contract with the trust bank for establishing a segregated customer trust account shall include all
the provisions required by the laws and regulations relevant to the segregated management.
3-2. Segregated Management System of Customer Funds(1) The method and object for calculation of segregated funds shall be specified, and the accuracy andcompleteness of the recorded data to be used as the basis of calculation, as well as the consistency
with accounting book records, shall be ensured.
(2) The necessary amount of segregated customer funds as the sum of segregated customer funds shallbe calculated comprehensively and accurately in compliance with the laws and regulations, etc.
concerning the segregated managements.
(3) The necessary amount as stipulated in the laws and regulations, etc. concerning the segregatedmanagement shall be deposited in the trust account for segregated customers fund.
(4) Any deposit and withdrawal in the trust account for the segregated customers fund shall be made incompliance with the laws and regulations, etc. concerning the segregated management following theappropriate procedures.
(5) Procedures to periodically check the balance of account books for segregated customers fund against
the balance at such trust bank account exist.

4. Accounting and Book Keeping
4-1. Account Opening, Orders Receipt, and Contract with Customers(1) Appropriateness of the transaction (i.e., that all customer transactions initiated are with a realcounterparty and have been properly authorized) shall be ensured.
(2) All transactions shall be entered, processed, and reported.
(3) Any contract for the transactions shall be accurately entered, processed, and reported with respect tomajor trading information, such as the principal transaction or customer transaction, customer name,account number, dates and times of the orders received and contracted, product name, quantity, price,currency, amount, buy or sell, and others.
4-2. Settlement of Transaction with Customer(1) To ensure that any transfer of the customers’ securities or money is made solely in connection with avalid transaction or under the proper instruction from the relevant customer with proper
authorization.
(2) To ensure that the authorized transfer of securities or money has been comprehensively accounted forthe purpose of accounting and accurately recorded in the appropriate accounting item with respect tomajor trade information, such as the amount, quantity, product name, currency, customer name, dates,delivery information, and others.
4-3. Master Data and Cumulative Data
(1) To ensure that any change to the master data (customer data such as customer name, account number,address, settlement account, product data, etc.) has been approved and completely and accurately
entered into.
－ 5 －(2) To ensure that any input data regarding trading transactions, receipts, and payments of securities andmoney are accurately recorded in the database including the customer’s account ledger, the securities
register under custody, the securities register per location of custody (register on securities held by
the Financial Instruments Business Operator for each location of custody), etc.
(3) To ensure that any accumulated data on trading, transfer of securities and money, and any
modification thereof are consistent with the relevant items of securities register per location ofcustody and other related accounting books.
4-4. Restrictions on Access to Assets and Records(1) To ensure that only authorized employees shall have access to assets and accounting book records,
including master data and settlement data for money and securities.

End.

Supplementary Provisions
1. The Framework shall come into effect on March 31, 2018.

2. Members who have received an audit of segregated management in connection with the agreed
procedural services with reference to the pre-revised version of Article 2, Paragraph 1 of the“Regulations for Proper Implementation of Segregated Management of Customer Assets” by theJapan Securities Dealers Association prior to the effective date of this Framework may conduct anaudit of the segregated management on or before March 31, 2018 pursuant to the provisions then inforce.

－ 6 －Attachment 1
Control Objectives and Key Control Points concerned with Internal Control Framework for
Segregated Management
1. General Matters
Control Objectives

Key Control Points Example(1) Directors shall recognize(i) Directors understand that the segregated management system forthe importance ofcustomer assets contributes to investor protection and as such, thecompliance with the laws

sound development of the securities market, while recognizing theand regulations, etc.

importance of compliance with the laws and regulations, etc.

concerning the segregatedconcerning the segregated management.

management and shall be(ii) Regarding the status of compliance with the laws and regulations,aware of the status of theetc. concerning the segregated management, appropriate reportingorganization’s compliancestructure to the Board of Directors, representative director,

with the relevant laws andcompliance officer (meaning person in charge of legal compliance;

regulations as appropriate.

the same shall apply hereinafter ), etc. has been established and isbeing appropriately operated.

(2) Organizational structure,(iii) In order to comply with the laws and regulations regarding

etc. for compliance withsegregated management, the management method and department

the laws and regulations,in charge, etc. have been clearly prescribed and documented asetc. concerning therules, manuals, etc. In addition, a system has been established tosegregated management

ensure all officers and employees concerned are fully informed ofhas been established withsuch matters and is being properly operated.

each employee carrying

Furthermore, in the event of any change to the laws, regulations,out one’s daily duties

and rules relating to the segregated management, a system has

based on fullbeen established and is being properly operated to make allunderstanding of theofficers and employees fully aware of such change and to apply

relevant laws,

such change to the related systems and programs.

regulations, internal(iv) A system has been established and is being properly operated torules, and other matters

appropriately respond to any violation of laws or regulations

regarding the segregateddetected in relation to the segregated management or any mattermanagement

indicated in the inspection by the Financial Services Agency or theinvestigation by the Investment Trusts Association.

(3) Independent department(v) A system has been established and is properly being operated

to properly monitor thewhere an independent department such as an Internal Audit

status of segregatedDivision periodically verifies that the legal compliance with the

management in anlaws and regulations, etc. concerning the segregated management－ 1 －appropriate manner.

is being properly implemented and reports the outcome of suchverification to the Board of Directors, etc.

2. Segregated Management of Securities
Control Objectives

Key Control Points Example

2-1. General Matters(i) A system has been established for concluding contracts between

The officers andthe Financial Instruments Business Operator and the customer as

employees concerned shallappropriate (e.g., “Custody Agreement,” “Transfer Accountcomprehensively andContract,” etc.), and such system is properly functioning.

accurately identify the(ii) The scope, management method, and place of custody regarding

scope of customers’

the customers’ securities subject to segregated management by asecurities subject to themember is clearly defined in compliance with the laws andsegregated management asregulations, etc. concerning the segregated management in line

required by the laws andwith the individual business operations and product handled whileregulations, etc. concerned

proper internal rules, etc. have been established and are being

with such segregatedappropriately performed.

management in line withAt the same time, internal rules, etc. regarding how to respondthe types of business andto a new product and any change in the format of transactions, etc.

products handled by thehave been developed and are being properly implemented.

Financial Instruments
Business Operator.

<Reference>
Securities subject to segregated management
1. Securities temporarily deposited by a customer for sale
2. Securities deposited by a customer according to a custodyagreement or a management agreement of book-entry transfer
settlement account2-2. Third-Party Custody(i) When securities are kept by a third-party organization (such as a(1) Customer’s consent shallsecurities transfer agency, other financial instruments business

be obtained for having a

operator, or Japan Securities Depository Center, etc.), a systemthird party safekeep thehas been established to obtain consent for re-deposit fromrelevant securities.

customers in accordance with a contract, etc., and such system isfunctioning properly.

(2) The selection of a(ii) A system to examine the credit and management status of thethird-party organization to

relevant third-party organization has been established and is being

safekeep customers’

appropriately operated. The following are some examples of

securities shall beconsiderations:appropriate from the- Criteria for selecting a third-party organization at the time ofviewpoint of protecting the

opening a new account and periodical review of such

－ 2 －customers’ assets.

organization are provided.
- Information in order to grasp the credit status of the relevant
third-party organization can be obtained and analyzed in atimely manner.
- Management conditions of the relevant third-party organization
are being obtained and assessed.
- Through external audit, etc., it is being reviewed whether theoperational practices are properly conducted, and theverification results or proof thereof have been obtained in orderto understand the details of such verification.
(iii) A system to conclude an appropriate custody contract with athird-party organization in compliance with the laws andregulations, etc. concerning the segregated management has been
established and is being properly operated.

(3) Customer securities(iv) As for each method of custody agreed upon with a customer

subject to the segregatedregarding such customer’s securities, a system has been

management are managed

established and is being appropriately operated to ensure that theby having them undercustody business is conducted in accordance with any of thecustody in the manner

following methods as required under the laws and regulations, etc.

required by the laws andconcerning the segregated management and that accounting andregulations for segregatedother records are kept by the Financial Instruments Business

management while

Operator.

comprehensively<Simple Custody>

ascertaining theA third-party organization clearly separates the custody ofoutstanding balance ofcustomers’ securities from that of the proprietary securities ofsuch securities

the financial instruments business operators and keep such(commingled custody,

customers’ securities in a manner that is easy to promptly

non-commingled custody).

identify the specific customer who owns the relevant securities.
<Commingled Custody>
A third-party organization clearly separates the custody ofcustomers’ securities from that of proprietary securities of the
Financial Instruments Business Operator by such means as
segregating an account for the Financial Instruments Business
Operator from the one for the customers so that the securities
share of all the customers can be immediately ascertained.
Furthermore, securities share of each customer among suchcustomers’ securities shall be immediately identified by thebooks, etc. of the relevant Financial Instruments Business－ 3 －Operator. Securities that are jointly owned by the Financial
Instruments Business Operator and the customers (securities
jointly owned by the Financial Instruments Business Operator
and the customers pertinent to accumulated investment
products, etc.) shall be managed in such a manner that the shareof each customer can be immediately determined from thebooks, etc. of the relevant Financial Instruments Business
Operator.
(v) With regard to securities subject to the custody of a third-party
organization, a system has been established and is being
appropriately operated for the Financial Instruments Business
Operator to confirm that such third-party organization keeps
records and carries out the custody business in compliance withthe laws and regulations, etc. concerning the segregatedmanagement.
When an external auditor of the trustee company evaluates andreports the effectiveness of the internal control over the custodybusiness of securities concerned with such company, refer to theParagraph 11 of the Audit Standards Committee Report 402,
“Considerations when auditing enterprises with contract business”
by the Japanese Institute of Certified Public Accountants.
(vi) Even if there are no physical securities for the newly issued
investment trust beneficiary certificates, a system has been
established and is being appropriately operated so that the nameand quantities of such securities held by a specific customer canbe immediately confirmed on a customer-by-customer basis in theregistry books, etc., while properly implementing the existingprocedures for periodically checking and verifying the outstandingbalance of such securities and documenting such verification
outcome.
(4) Among all securities in(vii) With regard to securities held by a third-party organization,possession of a Financial

procedures have been developed and are being appropriately

Instruments Businessperformed where the balance reconciliation between the

Operator, the substantiality

accounting book records of the Financial Instruments Businessof book balance and status

Operator and the statements of such third-party organization areof the segregatedconducted on a regular basis, and procedures are in place andmanagement concerned

properly operated to ensure that any discrepancy identified as awith the securities underresult of such reconciliation is promptly investigated and－ 4 －custody of a third-party

addressed. The following are some examples of considerations:organization (separately(Refer to 4-2, (2)(iii))

for simple custody,- Collation is being performed at every transfer of the securities orcommingled custody or
joint custody) shall beverified.

at least every month.
- Procedures are in place for addressing and reporting any
discrepancy identified as a result of such collation.
- Results of collation and full accounts thereof are documented.
- The collation procedures are in place to ensure that all securities
in the possession of the Financial Instruments Business
Operator, regardless of their registered names, shall be included
in such collation, and that they are identifiably recorded in theappropriate customers’ accounts, etc.
(viii) With regard to the balance of customers’ securities, procedures
are in place and properly performed where transaction balancestatements are periodically sent to the relevant customers and any
inquiry, complaint, etc. from them is properly reported andaddressed. (See 4-1. (1))(ix) A system has been established and is being properly operated tocomprehensively verify that the customer securities andproprietary securities, etc. are not mixed by completely identifying
all the securities possessed by the Financial Instruments Business
Operator, including not only customers securities, but also
proprietary securities, etc. (such as those held in proprietaryaccount balances, borrowed securities, and securities received ascollateral for derivative transactions) and collating such securities
with the custody location thereof.

2-3. Account Management:(1) Among customers’(i) With regard to customer securities recorded in the transfer accountbook pursuant to the provisions of the Transfer Act, a system has

securities subject to thebeen established and is being appropriately operated to ensure that

segregated management,

account management is being conducted and accounting bookbalance of those that arerecords are possessed by the Financial Instruments Businessrecorded in the transfer

Operators in accordance with the means stipulated in the laws andaccount book as prescribed

regulations for segregated management.

in the Act on Transfer ofCorporate Bonds, Shares,
etc. (hereinafter referred toas the “Transfer Act”)
shall be comprehensively－ 5 －grasped, and suchsecurities are kept in amanner stipulated in thelaws and regulations forsegregated management.
(2) Among all securities in(ii) Among all securities in possession of a Financial Instruments

possession of a Financial

Business Operator, a system has been established and is being

Instruments Businessproperly operated to ensure the substantiality of book balance andOperator, the substantiality

status of the segregated management concerned with the securities

of book balance and statusrecorded in the transfer account book pursuant to the Transfer Act.

of the segregated(a) With regard to the securities recorded in the transfer accountmanagement concernedbook pursuant to the Transfer Act, procedures have beenwith the securities

developed and are being appropriately performed where therecorded in the transfer

balance collation between the book records for such transfer

account book pursuant toaccount book, etc. of the Financial Instruments Businessthe Transfer Act shall beOperator and the statements of the relevant third-party

verified.

organization are conducted on a regular basis, and procedures
are in place and properly operated to ensure that any
discrepancy identified as a result of such collation is promptly
investigated and addressed. The following are some examples
of considerations:- Collation is being performed at every transfer of the
securities or at least every month.
- Procedures are in place for addressing and reporting any
discrepancy identified as a result of such collation.
- Results of collation and full accounts thereof are
documented.
- The collation procedures are in place to ensure that all
securities in the possession of the Financial Instruments
Business Operator, regardless of their registered names,
shall be included in such collation, and that they are
identifiably recorded in the appropriate customers’
accounts, etc.
(b) With regard to the balance of customers’ securities,
procedures are in place and properly performed wheretransaction balance statements are periodically sent to therelevant customers and any inquiry, complaint, etc. from themis properly reported and addressed. (See 4-1. (1))－ 6 －(c) A system has been established and is being properly operated
to comprehensively verify that the customer securities andproprietary securities, etc. are not mixed by completely
identifying all the securities possessed by the Financial
Instruments Business Operator, including not only customers’
securities, but also proprietary securities, etc. (such as those
held in proprietary account balances, borrowed securities, andsecurities received as collateral for derivative transactions)and collating such securities with the custody location thereof.

3. Segregated Management of Money, etc.
Control Objectives

Key Control Points Example

3-1. General Matters(i) A system has been established and is being properly operated so(1) The officers andthat the officers and employees concerned can comprehensively

employees concerned shalland accurately identify the scope of customers’ securities subject

comprehensively andto the segregated management as required by the laws andaccurately identify theregulations on such segregated management. Additionally, rules

scope of customers’

regarding how to respond to a new product, new customer, andsecurities subject to the

any change in the format of transactions, etc. have been developed

segregated management as

and are being properly implemented.

required by the laws and(ii) A system has been established and is being properly operated soregulations, etc. concernedthat money brought in or out by sales representative, etc. for thewith such segregatedsettlement with customers are appropriately segregated in its

management in line withmanagement.

the types of business andproducts handled by the
Financial Instruments
Business Operator.
(2) The selection of a trust(iii) A system has been established and is being properly operated tobank in which a segregatedexamine the trust property management and credit status of thecustomer trust account istrust bank in which the segregated customer fund account is

to be established shall beestablished. The following are some examples of considerations:appropriate from theviewpoint of protecting
customer assets.

- Criteria for selecting a trust bank at the time of opening a new
account and periodical review are provided.
- Information to grasp the trust property management and credit
status of the trust bank has been obtained and analyzed in a timely
manner.
When an external auditor of the trustee company evaluates and－ 7 －reports the effectiveness of the internal control over the custodybusiness of securities concerned with such company, refer toParagraph 11 of the Audit Standards Committee Report 402,
“Considerations when auditing enterprises with contract business”
by the Japanese Institute of Certified Public Accountants.
(3) The contract with the(iv) The contents of the trust account conform to the laws andtrust bank for establishingregulations, etc. concerning the segregated management. In othera segregated customer trust

words, the trust agreement specifies the following points:

account shall include all- The trustee shall be a trust company or a financial institution

the provisions required byengaged in fiduciary business.

the laws and regulations- The Financial Instruments Business Operator shall be the settlor.

relevant to the segregated- Customers concerned with the financial instruments business

management.

conducted by such Financial Instruments Business Operator
shall be the beneficiary of the principal.
- An agent for the beneficiary shall be appointed from thefollowing:(1)A representative director or any other person equivalent thereto

who is responsible for the management of business execution,or(2) A person who has suitable qualification to supervise theexecution of the fiduciary duties such as lawyer, certified public
accountant, and so forth.
When any of the events set forth in each item of Article 79-53,

Paragraph 1 of the Financial Instruments Act applies to the relevant
Financial Instruments Business Operator, the agent for beneficiaryshall be the person set forth in (2) above.
(v) The management method of the trust property shall be incompliance with the laws and regulations, etc. concerning thesegregated management. In other words, assets subject toinvestment are limited to the following items in the trust
agreement:- National government bonds and other securities designated by
the Commissioner of the Financial Services Agency;- Deposit in a bank or any other financial institution designated by
the Commissioner of the Financial Services Agency; and- Other instruments designated by the Commissioner of the
Financial Services Agency (e.g., call loans, trust bank accountloan to a trust bank that is also a trustee, cash trusts with－ 8 －principal guarantee contracts, and others).
3-2. Customer SegregatedFund Management System(1) The method and object(i) A system has been established and is being properly operated sothat the calculation of segregated customer trust funds and thesegregated management of segregated fund accounts can befor calculation ofcomprehensively and accurately performed in compliance with thesegregated funds shall be

relevant laws and regulations. The following are some examples

specified, and the accuracyof considerations:and completeness of the- The method and subjects of calculation concerned with therecorded data to be used ascustomer segregated fund are prescribed in the internal rules,

the basis of calculation, as

guidelines, etc.

well as the consistency- Measures are taken to ensure the accuracy and completeness ofwith accounting bookthe recorded data required as base for the calculation ofrecords, shall be ensured.

customer segregated fund.
- Measures are taken to ensure the consistency of the accounting
book records with the data required as base for the calculationof customer segregated fund.
- In the internal regulations, etc., in addition to the Adjustment
Calculation Record Date regarding segregated customer trust
fund, the alternative treatment is provided for when such
Record Date is a holiday (if such date is a holiday, the Record
Date is to be advanced to the previous day or postponed to thenext day).

(2) The necessary amount of(ii) The Financial Instruments Business Operator has established andsegregated customer funds

is properly operating a system for calculating the following

as the sum of segregatedsegregated customer fund for each customer every day incustomer funds shall becompliance with the laws and regulations, etc. concerning the

calculatedsegregated management and internal rules.

comprehensively and- Total amount of the market value (value calculated based on theaccurately in compliancelast price published on the relevant day or one calculated in awith the laws andreasonable manner as equivalent thereto) of money andregulations, etc.

securities to be segregated as the segregated customer fund.

concerning the segregatedmanagements.

The following may be deducted from the above:* Credit held by a Financial Instruments Business Operator
against a customer (which relates to an advance payment to acustomer for his/her purchase of securities of whom suchsecurities are subject to the segregated management)(iii) In calculating segregated customer funds for each customer, thefollowing items need to be taken into consideration (including the－ 9 －customer’s money held at the bank):- Money paid in from a customer as a result of transaction
involving the securities. As long as the purchased securities are
subject to the segregated management, the amount paid in by
the customer in advance is excluded.
- Money received by a Financial Instruments Business Operator on
behalf of a customer in connection with the sale of securities
that has not yet been paid out to the customer.
- Dividends, interest, redemption proceeds, etc. received by a
Financial Instruments Business Operator on behalf of acustomer that have not yet been paid out to the customer.
(iv) Procedures for a Financial Instruments Business Operator to
calculate the Necessary Amount of segregated customer fundevery day as sum of such funds for each customer in compliancewith the laws and regulations, etc. concerning the segregatedmanagement have been established and are being properly
implemented.
(v) In the event of any failure in connection with the customertransaction, appropriate handling of managing the segregatedcustomer fund is provided for and is consistently observed.
(3) The necessary amount as(vi) Procedures have been established and are being properly

stipulated in the laws andimplemented in order to collate the appraisal value of trust

regulations, etc.

property in the trust account for segregated customer funds withconcerning the segregatedthe Necessary Amount of segregated customer funds at the

management shall befrequency stipulated in the laws and regulations, etc. concerning

deposited in the trust

the segregated management and to ensure the Necessary Amountaccount for segregatedof the segregated customer fund is deposited at the designatedcustomers fund.

trust account of the segregated customer fund at a trust bank.
(vii) When the segregated customer trust fund is a securities trust ora blanket trust, procedures have been established and are being
appropriately implemented to confirm that the securities to be
entrusted are national government bonds or other securities
designated by the Commissioner of the Financial Services
Agency.
(viii) When the segregated customer trust fund is a securities trust ora blanket trust, it is clearly stated in the trust agreement that the
securities under custody shall not be made available for loans.
(ix) When a Financial Instruments Business Operator performs a－ 10 －

calculation on the Adjustment Calculation Record Date,
procedures have been established and are being implemented toensure that the appraisal value of the securities deposited in theaccount for segregated customer trust fund is calculated based on
the market price (value calculated based on the last pricepublished on the relevant day or one calculated in a reasonable
manner as equivalent thereto). In addition, at the time of
calculation on the Record Date, procedures have been establishedand are being implemented to confirm that the amount is not morethan the amount obtained by multiplying the market price on such
Record Date by the ratio specified by the Commissioner of the
Financial Services Agency.
(4) Any deposit and(x) With regard to any shortfall identified as result of the daily

withdrawal in the trust

calculation of the Necessary Amount of segregated customer fund,account for the segregatedprocedures have been established and are being implemented tocustomers fund shall be

confirm at least once a week that funds or securities have been

made in compliance withtransferred into the relevant trust account for the segregatedthe laws and regulations,customer fund within three (3) business days from the Adjustment

etc. concerning the

Calculation Record Date.

segregated management(xi) Regarding the termination in whole or in part of a trust contract

following the appropriate

in relation to the segregated customer trust fund, procedures haveprocedures.

been established and are being implemented to ensure that suchtermination is limited to the following cases in compliance withthe laws and regulations, etc. concerning the segregatedmanagement;- In the event that the appraisal value of the principal of the trust
property on the Adjustment Calculation Record Date exceeds
the Necessary Amount of segregated customer fund,redemption, etc. is to be made within the amount equivalent tosuch excess amount;- In the event that redemption, etc. is made within the amountequivalent to customer segregated fund pertaining to thesubscription for offering, etc. on the date of payment for suchoffering; or- In the event that redemption, etc. is made in order to transfer toanother contract of the segregated customer trust fund:(xii) A system has been established and is being properly operated sothat any deposit into or withdrawal from, the segregated customer－ 11 －

trust fund can be made accurately based on the Necessary Amountof the segregated customer fund as of the Adjustment Calculation
Record Date according to the approval procedures by anappropriately authorized officer. In addition, a system for timely,
accurate, and comprehensive recording of such deposits andwithdrawals has been established and is being properly operated.
(5) Procedures to(xiii) A system has been established and is being properly operated

periodically check theto periodically check account balances between the statements

balance of account books

obtained from the trust banks and member’s accounting bookfor segregated customers

records regarding the accounts for the segregated customer trust

fund against the balance atfund. The following are some examples of considerations:such trust bank account- Frequency of collation shall be at least weekly,

exist.

- Collation is being made by an independent department, etc. thatis not involved in the business of receiving and withdrawing
money from the segregated customer trust fund,- Any discrepancy detected as a result of the collation has been
investigated and resolved in a timely and appropriate manner,and- Collation results and details are documented and reported to a
manager.

4. Accounting and Book Keeping
Control Objectives

Key Control Points Example

4-1. Account Opening,(i) New customer account has been approved by a properly

Orders Receipt, andauthorized manager, and all necessary documentation to open such

Contract with Customers

account has been obtained and filed prior to commencement of(1) Appropriateness of thetransaction (i.e., that all

any transaction.
(ii) Except for the instance where the delivery of documents uponcustomer transactions

the conclusion of contract (transaction statement) is not required

initiated are with a real

under the relevant laws and regulations (including a delivery bycounterparty and haveelectromagnetic means. The same shall apply hereinafter), thebeen properly authorized)

relevant documents have been delivered to the customer promptly

shall be ensured.

after the execution of the contract for all transactions (including
whether the authority to omit transaction confirmation has been
granted to the sales representatives, etc.)(iii) Transaction balance statement, etc. specifying details oftransfer, balance, and other items concerned with securities andmoney have been delivered to customers periodically or at a time－ 12 －

of every transaction.
(iv) Measures are taken to prevent unauthorized issuance of thedelivery documents upon the conclusion of contract (transaction
statement), transaction balance statement, etc. (including
prevention for intentional avoidance of issuance and falsification,etc. concerned with such documents).
(v) Customer’s inquiry, complaint, etc. concerning the delivery
documents upon the conclusion of contract (transaction report),
transaction balance statement, etc. are being reported, addressed,
and resolved.
(vi) Measures are taken to detect any erroneous transaction due to anerroneous order and so forth.
(vii) The cancellation or amendment of the transaction are being
made by a properly authorized manager.
(2) All transactions shall be(viii) All orders received from customers are being entered into

entered, processed, andorder slips and other books, approved by an officer with

reported.

appropriate authority if necessary, and entered into the transaction
processing system without any omission.
(ix) Measures are taken to ensure that the contract note (execution
report) is properly allocated to each transaction.
(x) Measures are taken to ensure that all major transaction data suchas the customer name, account number, date and time of order
receipt and execution, product name, quantity, price, selling or
buying, and others are entered without omission.

(3) Any contract for the(xi) Order slips and other books are being verified against thetransactions shall becontract data. In the event of any discrepancy identified in theaccurately entered,collation, it is being promptly investigated and resolved.

processed, and reported(xii) Measures are taken to prevent any invalid account number

with respect to major(other than those registered under proper authorization), issue

trading information, suchcode, trading date, etc. from being accepted on the system.

as the principal transaction(xiii) Transactions are being confirmed with all concerned parties

or customer transaction,

promptly after the execution. In the event of any discrepancy

customer name, accountidentified in the collation, it is being promptly investigated andnumber, dates and times ofresolved.

the orders received andcontracted, product name,quantity, price, currency,
amount, buy or sell, and－ 13 －

others.
4-2. Settlement ofTransaction with Customer(1) To ensure that any
transfer of the customers’(i) Any transfer of securities and money is being made only
according to valid transactions or to proper customer instructions
and has been approved by a properly authorized manager.
(ii) Rules for division of duties for the following functions have been

securities or money isprepared and are being properly complied with.

made solely in connection- Execution of tradewith a valid transaction or- Trade registration into bookunder the proper- Trade confirmation

instruction from the- Transaction settlement (money and securities)

relevant customer with- Balance checkproper authorization.
(2) To ensure that the(iii) The balance of securities under custody of a third-party

authorized transfer oforganization has been collated periodically against the records of

securities or money hassuch third party. In the event of any discrepancy identified in the

been comprehensively

collation, it is being promptly investigated and resolved. (Refer toaccounted for the purpose

2-2, (4)(vii))of accounting and(iv) The balance of the securities recorded in the transfer accountaccurately recorded in thebook pursuant to the Transfer Act has been collated periodicallyappropriate accounting

against the records of such third party. In the event of any

item with respect to major

discrepancy identified in the collation, it is being promptly

trade information, such as

investigated and resolved. (Refer to 4-2, (2))

the amount, quantity,(v) The scheduled settlement amount of money and securities in the

product name, currency,transaction processing system is reconciled with the actual

customer name, dates,

settlement amount in a timely manner (e.g., collation with thedelivery information, andactual settlement amount in case of automatic slip issuance based

others.

on such scheduled settlement amount on the settlement date). In
the event of any discrepancy identified in the collation, it is being
promptly investigated and resolved.
(vi) Measures are taken to promptly discover, investigate and resolve
any unidentified deposit, etc.
(vii) Measures are taken to ensure that matters caused by any failure
or securities in transit are addressed in a timely manner.
(viii) Bank account balance is verified on a daily basis by anindependent department, etc., and any discrepancy discovered is
promptly investigated and addressed.

4-3. Master Data and(i) Measures are taken to ensure that any modification to the Master－ 14 －Cumulative Data
(1) To ensure that any change

Data has been approved by an appropriately authorized officer.
(ii) Appropriate person in charge shall check that any modification

to the master data

to the Master Data has been accurately and thoroughly made and(customer data such asrecorded.

customer name, accountnumber, address,(iii) A backup system has been developed in case there is an error in
the system controlling the Master Data.

settlement account,product data, etc.) has
been approved andcompletely and accurately
entered into.
(2) To ensure that any input(iv) Measures are taken to ensure that the securities register per

data regarding trading

location of safekeeping and other book accounts have beentransactions, receipts, andproperly updated with respect to the respective amounts (both for

payments of securities andsecurities and money) at each time of commencement, contract,money are accurately

and settlement concerned with trading.

recorded in the databaseincluding the customer’s
account ledger, the(v) Measures are taken to prevent or to detect any false entry in theaccount.
(vi) Daily transaction records are collated in a timely manner

securities register under

between the securities register per location of safekeeping andcustody, the securities

other account books. In the event of any discrepancy identified inregister per location of

the collation, it is being promptly investigated and resolved.

custody (register on
securities held by the
Financial Instruments
Business Operator for eachlocation of custody), etc.
(3) To ensure that any(vii) Balances of the customers’ money and securities are being

accumulated data on

collated among the relevant books. In the event of any

trading, transfer of

discrepancy identified in the collation, it is being promptly

securities and money, andinvestigated and resolved.

any modification thereof(viii) Balance of products held is being collated among the relevant

are consistent with thebooks. In particular, with respect to the balance concerned with

relevant items of securities

the proprietary holding of product, the balance based on theregister per location ofdelivery date is collated against that based on the contract date.

custody and other related
accounting books.
4-4. Restrictions on Access(i) Measures are taken to ensure that a delivery instruction (which－ 15 －

to Assets and Records

specifies the date of delivery, issue name, quantity, destination,(1) To ensure that only

approval stamp, etc.) is prepared, and that the securities registerauthorized employees shallper location of safekeeping and other relevant books are updated

have access to assets andbased on such instruction concerned with any transfer ofaccounting book records,

securities.

including master data and(ii) Measures are taken to ensure that any revision to the books andsettlement data for money

records is being made by authorized departments and employees

and securities.

to enable proper check and balance function.
(iii) Steps have been taken to ensure that any amendments to thebooks and records have been approved.
(iv) Measures are taken to ensure that only authorized personnel
have access to the Master Data. Measures are also taken to prevent
any unauthorized access to the Master Data.

－ 16 －

- General Matters

Attachment 2
Check items and checkpoints for segregated management of customer assets- General Matters
Check Items
1. Are internal rules, regulations, andCheck Points(i) Whether internal rules, etc. are established in conformity with reality.

procedures for segregated management
clearly provided for?

(ii) Concerning the adjustment of money, securities, and trust, whether administrative guidelines, etc. areestablished and functioning properly at the respective divisions in charge.

2. Are internal audit and inspections clearly
defined and implemented on a regular basis?

3. Is reporting structure to a compliance officer

Obtain guidelines on in-house audit and inspections and inquire about the subject and period of the in-house audit
and inspection actually conducted.

Inquire whether the system for reporting the status of segregated management to the compliance officer for thefor the segregated management (meaning thesegregated management is clearly specified in the internal rules, etc., and examine the records of internal audit andperson in charge at legal complianceinspections.

department; the same shall apply hereinafter)
established?

4. Is there a system in place to take appropriate

Inquire the manager in charge of segregated management about the policy for dealing with any violation of themeasures in the event of any shortage oflaws, regulations, etc. relating to the segregated management. In addition, inquire such manager whether there hascustomer segregated trust fund, improper

been any violation of the laws, regulations, etc. relating to segregated management during the past one year, andredemption, erroneous management ofinquire about any subsequent measures taken in case of any violation.

securities, and so forth?
1

- General Matters
Check Items

Check Points

5. When there has been any change in the laws,

Inquire the manager in charge of segregated management how to make everyone in the company fully aware of

regulations, or rules relating to the

any change in the relevant laws and regulations. In addition, inquire such manager how thoroughly they havesegregated management of customer assets,

informed the persons concerned of the actions taken in response to the results in relation to the inspection by thehave the details of such change been

Financial Services Agency and the investigation by the Investment Trust Association.

communicated to the department in charge?
6. Whether appropriate measures are taken for

Inquire the manager in charge of segregated management about whether or not the computer programs and systems

computer programs and systems related torelated to the segregated management have been modified in the past and how to adjust such programs and systems

the segregated management of customerin case of any revision to the laws, regulations, etc. related to the segregated management. Furthermore, inquire

assets as necessary.

such manager about how to ensure the reliability of the computer systems utilized for the segregated management.

7. Whether appropriate internal measures are

Inquire the manager in charge of segregated management about the system to prevent any unauthorized access tobeing taken to protect the customer data

the customer data related to segregated management, password control, and other related matters. Moreover,related to segregated management.

inquire such manager about the backup system in case of any system error.

8. Are appropriate measures taken for theInquire the manager in charge of segregated management about the matters pointed out in the inspection by thematters pointed out in the inspections by the

Financial Services Agency or the investigation by the Investment Trust Association and the company’s responses

Financial Services Agency or thethereto.

investigation by the Investment Trust
Association?

2

I. Segregated management of money

I. Segregated management of money
Check Items
A. Has the necessary amount of segregatedcustomer fund (hereinafter in this document
referred to as the “Necessary Amount”) been
accurately calculated?

Check Points
Is the Necessary Amount calculated by deducting the total amount allowable for deduction from the sum of thecredit balance of the customer account [Note] and the deposit related to public offering, etc.?
Note: In case of calculating on a daily trial basis, care should be taken not to perform such calculation of theNecessary Amount by deducting a customer’s outstanding balances from another customer’s deposit balance,such as deducting advance payment to a customer (debit) from deposit from another customer (credit).
Comprehensiveness of records: Whether all account items to be included in the Necessary Amount are subject
to calculation.
When a new account item is created, whether proper consideration is given as to the inclusion of such item inthe calculation of Necessary Amount.
Validity of records: Whether the payment received to be processed on the day is included.
Whether any abnormal value caused by accounting error, etc. is appropriately corrected.
Safekeeping of records: Is the process of calculating Necessary Amounts saved?

B. If money is entrusted in the segregated(i) Whether such money is accounted for in the “Segregated Customer Trust Fund,” one of the “Deposit” items.

customer trust fund, is the accountprocessing handled appropriately?

(ii) Whether the account is processed at the time of establishment or redemption of the segregated customer trustfund.

1. Are the credit balances in the customer(i) Whether the Necessary Amount is calculated in a unit of one yen.

ledger accurately calculated?
(a) Deposits from customers;(ii) Whether the base sheet for calculating the Necessary Amount is prepared and checked on a daily basis.

advances for purchase of securities,
3

I. Segregated management of money

Check Items
temporary deposit from sale proceeds of
securities, and so forth(b) Deposit related to public offering, etc.;
payment receipt, etc. for public offering

Check Points(iii) Among deposits from customers, whether the calculation of Necessary Amount includes those that are
customers’ money that remains undelivered at the Branch after completing the payment process, sales proceedsof a customer returned as result of remittance error, etc., or customers’ deposit to be returned to them due tocancellation of public offering.

or private placement of securities,(c) Other deposits received;(iv) Whether the time limit for daily deposit processing is clearly specified in the internal rules, etc., and any
deposit confirmed within such time limit is included in the calculation of the Necessary Amount of the day. In
addition, whether the deposit confirmed after such time limit of the day is properly included for the calculationof the Necessary Amount on the following business day.

(v) When any delay occurs in the delivery of the securities for sale from a customer (including a delay in transferof paperless securities), whether the customer’s deposit concerned with such sale proceeds is subject tocalculation of the Necessary Amount.

(vi) In case of accepting check (this branch, other branch, etc.) or any other equivalent to money from a customer,
whether such deposit is subject to calculation of the Necessary Amount.

(vii) Whether interests, dividends, redemption money, etc. are included in the calculation of Necessary Amount.

(viii) In an event of any unidentified receipt detected, whether such receipt is subject to calculation of theNecessary Amount when such receipt is proved to be attributable to a customer as result of prompt investigation
thereof.

4

I. Segregated management of money

Check Items

Check Points(ix) In the event that collection of money for customers’ purchase of securities is commissioned to a collection
agency in contracts among customers, financial instruments business operator, and such agency, whether themoney retained at such agency is included in the calculation of the Necessary Amount.

2. Are the deposits related to public offering,(i) Whether the deposits related to public offering, etc. are subject to calculation of the Necessary Amount.

etc. accurately calculated?
(ii) Whether the deduction of subscriptions for public offering etc. is not in excess of the deposit related to public
offering, etc.
3. Is the allowable deduction accurately(i) Whether or not advance payment to a customer is deducted from deposit received from another customer.

calculated?
(a) Advance payments (among advance(ii) Among advance payments for the purchase fund, etc., whether such advance payment is deducted in spite ofpayments for the purchase fund, etc.,

the fact that the securities pertaining to such purchase have not been segregated in accordance with 43-2 of thelimited to those for which securities

Financial Instruments and Exchange Act.

pertaining to such purchase are subject tothe segregated management as set forth in
Article 43-2 of the Financial Instruments
and Exchange Act)

5

II. Segregated Customer Trust Fund

II. Segregated Customer Trust Fund
Check Items
1. Whether a trust agreement for a segregated

Check Points(i) Whether the trust agreement has been entered into between the Financial Instruments Business Operator as

customer trust fund has been entered into

settlor with its customer as the beneficiary of the principal and a trust company or a financial institution engaged

with a Financial Instruments Businessin trust business as trustee.

Operator as assignor and its customer as thebeneficiary of the principal.

(ii) Whether the Financial Instruments Business Operator has a beneficiary’s agent.
(iii) Whether the beneficiary’s agent has been appointed from the following persons in order to sufficiently fulfill
the required duties.
(1) In case of internal appointment, a representative director or any other person equivalent thereto who is
responsible for the management of business execution, or(2) In case of external appointment, a person who has suitable qualification to supervise the execution of thefiduciary duties such as lawyer, certified public accountant, and so forth.

(iv) If a Financial Instruments Business Operator concludes trust contracts with multiple trustees, whether the
beneficiary agent for these contracts is the same person.

(v) When any of the events set forth in each item of Article 79-53, Paragraph 1 of the Financial Instruments Act
applies to the relevant Financial Instruments Business Operator, whether the beneficiary agent is the person set
forth in (iii)(2) above.

(vi) When a Financial Instruments Business Operator decides to discontinue the business in relation to the Direct
Offering, etc. or comes to fall under any of the events set forth in each item of Article 79-53, Paragraph 1 of the6II. Segregated Customer Trust Fund

Check Items

Check Points
Financial Instruments Act, whether such Financial Instruments Business Operator is to immediately notify thebeneficiary agent (meaning the beneficiary’s agent set forth in (v); the same shall apply hereinafter) to that
effect.
Furthermore, whether the beneficiary agent is to immediately notify the trustee to that effect when suchagent receives notice from the Financial Instruments Business Operator.

(vii) When any of the events set forth in each item of Article 79-53, Paragraph 1 of the Financial Instruments Act
applies to the Financial Instruments Business Operator, whether it is properly provided for that the Financial
Instruments Business Operator is prohibited from giving investment instructions to the trustee except for cases
specifically approved by the beneficiary agent.

(viii) If there is any change in the company name(s) (trade name), its representative, address, registered seal
impression, or the address, name, registered seal impression, etc. of the beneficiary agent, whether theprescribed procedures are taken at the trustee bank, etc.

(ix) If there is a change of the trust bank to which the segregated customer trust fund is entrusted, whether thecancellation of the existing contract and the new contract with the relevant trust bank is concluded in a manner
not to cause any discontinuity in managing the segregated customer trust fund.
2. Concerning the segregated customers’ fund,(i) Concerning the amount of segregated customers fund, whether the regular collation of balances is beingis the balance of the trust bank is properly

performed: For example:

collated against the book balance? If there isReconciliation between the Necessary Amount and the amount in the segregated customer trust fund on

any discrepancy between the balances, are

Adjustment Calculation Record Date (balance on the notice sent from the trust bank at a time of each trust7II. Segregated Customer Trust Fund

Check Items

Check Points

appropriate measures taken?

adjustment (e.g., “Notice on procedures for money trust”));‐

Verification between the deposit book balance and statements delivered regularly by the trust bank inaccordance with the contract; and‐Calculation of appraisal value in case of holding the securities in the securities trust or corporate investment
fund (Tokkin fund), etc.

(ii) Whether any instruction concerned with the establishment or dissolution of the segregated customer trust fundis being verified.

(iii) In case of any discrepancy, whether the cause analysis thereof is performed.

(iv) If the cause of any discrepancy cannot be determined, whether the relevant manager promptly reports thematter to the Internal Audit Division with the compliance officer, etc.

3. If the appraisal value of the principal of the(i) With regard to the adjustment to the Necessary Amount, whether at least one day per week, the standard date fortrust property on the Adjustment Calculation

the adjustment of the Necessary Amount (the Adjustment Calculation Record Date) is established. Then, if theRecord Date is less than the Necessary

appraisal value of the principal of the trust property on such Adjustment Date is less than the Necessary Amount,

Amount, whether such shortfall has been

whether such shortfall is eliminated through adding trust property in the amount equivalent to the shortfall

filled to the trust by the adjustment date.

within three business days from the day following the Adjustment Calculation Record Date.

(ii) Whether the internal rules provide for the relevant treatment when the Adjustment Calculation Record Datepertinent to the segregated customer trust fund is a holiday (whether such Record Date is to be advanced to theprevious business day or postponed to the next business day).
8

II. Segregated Customer Trust Fund

Check Items

Check Points(iii) If the Necessary Amount on the adjustment date has changed after the calculation of the fund amount for the
segregated customer trust, whether recalculation is conducted.

(iv) In case of any change to the schedule for the Adjustment Calculation Record Date for the customer segregatedfund, whether such change is reflected in the trust agreement and internal rules. Furthermore, after such change,
whether the first day of new Adjustment Calculation Record Date is not more than one week from the previous
Adjustment Calculation Record Date.

4. When trust contract pertinent to thesegregated customer trust fund (excluding(i) In the event of termination or partial termination of the segregated customer trust fund, whether any of thefollowing conditions is satisfied;

the segregated customer trust fund pertaining
to over-the-counter derivatives transactions,etc. of subject securities; the same shallapply in this paragraph) is terminated inwhole or in part pursuant to the following
items, whether such termination is madewithin the scope of the amount set forth
therein.
(a) Where the principal of the trust property
exceeds the Necessary Amount;in the event that the appraisal value of(a) In the event that the appraisal value of the principal of the trust property on the Adjustment Calculation
Record Date exceeds the Necessary Amount, termination or partial termination of the trust contract shall bemade within the amount equivalent to such excess amount;the principal of the trust property on the9II. Segregated Customer Trust Fund

Check Items

Check Points

Adjustment Calculation Record Dateexceeds the Necessary Amount, an amountequivalent to such excess amount,(b) Where paying the deposit related to
public offering, etc.;
amount of segregated customer fund(b) Termination or partial termination of the trust contract shall be made within the amount equivalent to theamount of the segregated customer fund pertaining to the deposit related to public offering, etc. on thepayment date thereof; orequivalent to the deposit related to public
offering, etc. on the payment date thereof,or(c) Where transferring the administration ofsegregated customer fund to another trust;(c) Cancellation or partial cancellation of a trust contract shall be made in order to transfer the administration of
the segregated customer fund to another trust contract.

amount of trust property to be transferred,(ii) Whether or not there is any shortage in trust or improper cancellation concerned with the customer segregatedfund. If any, whether necessary and appropriate measures have been taken.

(iii) If payment of the deposit related to public offering, etc. is scheduled after the adjustment date, whether the
Necessary Amount is calculated by deducting such large payment for subscription from the Necessary Amount,
and addition of trust property or termination is made based on such calculation.

5. Is the segregated customer trust fund(i) Which form the segregated customer trust fund adopts; money trust, securities trust, or comprehensive trust.

appropriately managed pursuant to the10II. Segregated Customer Trust Fund

Check Items
Financial Services Agency notifications?

Check Points(ii) In case of managing as a money trust, whether such trust is investing in appropriate assets (excluding an
instance where a principal guarantee contract is concluded).

(iii) In case of managing as a money trust, whether the appraisal value of securities under custody is based on themarket price on the Adjustment Calculation Record Date.
(iv) In case of managing as a jointly operated money trust with a principal guarantee contract, whether the
principal amount of the trust is deemed as the appraisal value as it is.

(v) In case of managing as a securities trust or a comprehensive trust of money and securities, whether the
securities to be entrusted are of the type of securities specified in the Public Notice of the Financial Services
Agency.

(vi) In case of managing as a securities trust or a comprehensive trust of money and securities, whether theappraisal value of the securities in trust has been calculated applying the ratio as provided for in the Public
Notice of the Financial Services Agency.

(vii) With regard to a securities trust or a comprehensive trust of money and securities, whether or not the entrusted
securities are invested.

(viii) With regard to a securities trust or a comprehensive trust of money and securities, whether the location of the
securities entrusted thereto is clearly defined in the account books.

11III. Segregated Management of Securities

III. Segregated Management of Securities
Check Items

Check Points

1. Whether an appropriate contract is concluded(i) Whether contracts between a Financial Instruments Business Operator and their customer (e.g., Custodyto deposit the securities entrusted byContract, Transfer Account Contract, etc.) are concluded as appropriate.

customers in relation to transactions withsuch customers (hereinafter in this document(ii) Whether each contract provides for the method of administration (book-entry transfer settlement (method ofreferred to as the “Customer Securities”)?

custody to enter into or record in transfer account book; the same shall apply hereinafter), simple custody,
commingled custody, or joint custody) and place of custody (account management, third-party custody).

(iii) In the event that the securities are under custody of a third-party custody agency regardless of their location;
domestic or foreign, whether the customers’ consents for such redeposit are obtained. (However, such consent
for redeposit may not be required in some cases such as outsourcing to a stock transfer agency according to asafe-deposit contract).
<<Reference>> Depositary agency and control method(a) Account Management:
Book-Entry Transfer Settlement: Investment trust beneficiary certificates, etc. handled through the central
depositary system pursuant to the Act on Book-Entry Transfer of Bonds, Shares, etc.
(b) Third-party custody
Simple custody: Stock certificates, etc. of unlisted companies whose handling is being outsourced to a stocktransfer agency
Commingled custody: Stock certificates of unlisted companies, bonds (stock transfer agency), foreign
securities, etc.
Joint custody: cumulative investment products, etc.

12

III. Segregated Management of Securities

Check Items

Check Points

2. Upon identifying the securities subject to the(i) Customer Securities to be segregatedsegregated management under the relevant(a) Securities entered into or recorded in, the transfer account book;laws and regulations, whether a member(b) Securities temporarily deposited by a customer for sale (in case of an engagement contract);

company specifically segregates such(c) Securities under custody (simple deposit contract or comingled deposit contract); or

securities according to the actual situation of(d) Newly purchased securities of a customer where purchase price for such securities has not been received andeach, and appropriately manages themamount equivalent to the advance payment pertaining to such purchase is deducted from the customer’s

separately.

segregated fund for calculation purpose:

3. Is the appropriate segregated management ispracticed in accordance with the respective(i) In the case of book-entry transfer settlement, whether the share of each customer pertaining to the Customer
Securities is immediately identifiable based on the member’s own accounting books, etc.

method of control (book-entry transfer
settlement, simple custody, commingled(ii) In case of simple custody, whether ownership concerned with each certificate of the Customer Securities undercustody, or joint custody) as provided for incustody is identifiable by filing them according to each customer, managing them according to securities

the relevant laws and regulations?

number, or other means.

(iii) In case of commingled custody, whether the share of each customer pertaining to the Customer Securities isimmediately identifiable based on the member’s own accounting books, etc.

(iv) With regard to the securities owned jointly with customers, whether such securities are identified and the shareof each customer is readily identifiable based on the member’s own accounting books, etc.

4. Are appropriate internal measures taken for(i) Whether storage facilities and management methods are specifically provided for in internal rules, etc.

storage facilities, etc.?
13III. Segregated Management of Securities

Check Items

Check Points(ii) Whether the member has taken specific internal measures to confirm whether the third-party organization is
performing the custody business safely and reliably. For example;‐

Whether the credit status of such third-party organization is checked by examining their credit ratings,‐

Whether it has been verified that the custody business is properly conducted through external audits, etc.,
and the verification results or proof thereof have been obtained in order to understand the details of suchverification to a certain extent,‐

Whether the member has taken any specific measures internally, such as examining the classification
method of the Customer Securities for each storage location, and‐With regard to a third-party organization, whether standards for identifying organizations subject toinvestigation and those not subject to such investigation are established in internal rules, etc., and internal
responses are in compliance with such rules.

5. Is appropriate response being taken for any
transfer of the Customer Securities?

(i) With regard to any transfer of the Customer Securities that have been entrusted to the third-party organization,
whether the balance after such transfer or such securities transferred are verified against the data (transfer
statement data, etc.) at each transfer.

6. In case of a third-party custody (book-entry(i) Whether the statement balance of deposited securities prepared and delivered by a third-party organization istransfer settlement, simple, or commingled

collated periodically against the balance of the accounting books, etc. of the Customer Securities. Examples of acustody), whether the custody balance

third-party organization subject to such collation (output slip, certificate, etc.);statements of such third-party institution are(a) Japan Securities Depository Center

appropriately collated against the balance of(b) Securities Transfer Agency

the company’s own accounting books, etc.?

(c) Others(i) Regular reconciliation
14

III. Segregated Management of Securities

Check Items(ii) Cause and resolution of any discrepancy

Check Points(ii) When any discrepancy is identified between the balance of the accounting books, etc. and the statement

identified

balance given by the third-party organization concerned with the Customer Securities as a result of verification,(iii) Countermeasures against discrepancy

whether the reason for such discrepancy is confirmed to be reasonable. The main examples of discrepancy;

identified(a) Failure(b) Period from the time of withdrawing the actual securities to the time of delivery thereof according to thecustomer request(c) Input error(d) Others(iii) If any discrepancy is confirmed in the balances of the Customer Securities after checking the cause of suchdiscrepancy, whether such discrepancy is reported promptly to the manager in charge of custody business.

(iv) Whether any shortage of the Customer Securities is promptly eliminated in addition to investigating the cause,
etc. of any discrepancy in the balances if such shortage is detected.
(v) If the cause of discrepancy, etc. cannot be clarified through the investigation by the manager in charge ofcustody business, whether such incidence is reported in a timely manner to the compliance officer, the internal
audit division, etc.

End.

15

Q&A on External Audit of Segregated Management
Established on June 8, 2017

(Note) Abbreviations used in the documents are as follows:
Regulations: Investment Trust Association, Japan Regulations for Direct Offering, etc. of Beneficiary
Certificates, etc.
Bylaws: Investment Trust Association, Japan, By-laws of the Regulations for Direct Offering, etc. of
Beneficiary Certificates, etc.
Practical Guidelines: The Japanese Institute of Certified Public Accountants, Practical Guidelines No.
56 by Business Committees; Practical Guidelines for Assurance Engagements for Compliance with
Laws, Regulations, etc. Concerning Segregated Management of Customer Assets at Investment TrustManagement Companies, etc. for Direct Offerings, etc. of Beneficiary Certificates, etc.

Question 1: What are the main points of the amendment to the Regulations dated June 8, 2017?

Answer: Major changes related to the Segregated Management Audit due to the amendment to theRegulations dated June 8, 2017, are as follows:(1) Unification of legal compliance for segregated management with Assurance Engagements
In the past, Full Members who have been engaged in direct offering have been subject to SegregatedManagement Audit by selecting either of verification services regarding compliance with the laws,
regulations, etc. concerning segregated management (hereinafter referred to as “Verification
Services”) or agreed procedures regarding the segregated management (hereinafter referred to as“Agreed Procedures”) with reference to the regulations of the Japan Securities Dealers Association(Regulations for Proper Implementation of Segregated Management of Customer Assets) andpractical guidelines by the Japanese Institute of Certified Public Accountants1 (hereinafter referred toas “Old Practical Guidelines”).
Recently, the Japan Securities Dealers Association has revised the Association’s regulations based on
the results of a study conducted by the Working Group for studying the ideal external audit, etc. forthe segregated management of customer assets in April 2015 and has decided to unify them as the
Assurance Engagements (procedures equivalent to the conventional Verification Services of the Japan
Securities Dealers Association).
The Association has decided to obligate the Certified Public Accountants, etc. to perform the“Assurance Engagements for Compliance with Laws and Regulations on Segregated Management of
Customer Assets” (hereinafter referred to as “Assurance Engagement”) in addition to clarifying the1

The Japanese Institute of Certified Public Accountants, Practical Guidelines No. 40 by Business Committees; Handling ofVerification Services for Compliance with Laws and Regulations for Segregated Management of Customer Assets by Financial
Instruments Business Operators.

-1-basis for the segregated management of beneficiary certificates of investment trusts and money aswell as the Segregated Management Audit.
Furthermore, through consultation with the Japanese Institute of Certified Public Accountants, it has
been decided that they will formulate the “Practical Guidelines” for the Segregated Management
Audits.

(2) Introduction of the obligation to prepare Management Reports
In the past, Full Members have prepared Management Reports with reference to the “Old Practical
Guidelines” when receiving the Verification Services.
This time, in order to clarify the principle of dual responsibility in the Segregated Management Audit,
it has been determined that the rules of the Japan Securities Dealers Association stipulate theobligation for the Members to prepare a Management Report.
In the direct offering of investment trusts, the act of taking custody of customers’ assets requires strict
control, and in order to earn the customers’ trust, we believe that the same level of segregatedmanagement as that applicable to the Type I Financial Instruments Business Operators and audit arealso required in the business.
The Association has decided to stipulate in the Regulations the obligation of Full Members to prepare
the Management Report.
(Article 11, Paragraph 5 of the Regulations)(3) Matters to be included in Management Report
In Article 3-2, Paragraph 1 of the By-laws, the following are provided for:(i)

The obligation to comply with the laws, regulations, etc. concerning segregated management;(ii) The obligation for establishing and operating an effective internal control system to ensure legal
compliance with the laws, regulations, etc. concerning segregated management;(iii) The obligation to entrust segregated customer funds or manage customer securities separately if
the member is also an account management institution as of the base date for audits (hereinafterreferred to as the “Base Date”);(iv) The obligation to perform procedures to confirm that segregated management of customer
assets has been implemented in compliance with the laws, regulations, etc.;(v) Whether or not segregated management for customer assets complies with the laws, regulations,etc. as of the Base Date as a result of performing the procedures set forth in the preceding item;
and(vi) The content of any event that may have a material impact on compliance with the laws,
regulations, etc. concerning segregated management, which occurred after the Base Date but
before the Management Report submission date.
(Article 3-2, Paragraph 1 of the By-laws)-2-

(4) Introduction of an obligation to implement the procedures to confirm the establishment and operationof effective internal control for compliance with the laws, regulations, etc. concerning segregatedmanagement as well as the status of compliance with such laws, regulations, etc. (referred to as the“Confirmation Procedures” in (4) and (5) below)
With the recent amendment to the Regulations obligating the preparation of the Management Report
described in (2) above in such Regulations, it has been decided to oblige the Full Members to
implement the Confirmation Procedures as the basis for preparing the Management Report.
The Confirmation Procedures at the time of receiving the Segregated Management Audit areconsidered to have been implemented with reference to the Old Practical Guidelines in the past, butshall conform to the revised Regulations henceforth.
(Article 11, Paragraph 6 of the Regulations)(5) Introduction of an obligation to produce the records on the Confirmation Procedures regarding theestablishment and operation of effective internal control for compliance with the laws, regulations,etc. concerning segregated management as well as for the Confirmation Procedures of thecompliance status with such laws, regulations, etc.
It is decided to obligate the Full Members to record the results of implementing the Confirmation
Procedures described in (4) above. In addition, it is decided to obligate to record any non-complianceevent, etc. identified during the implementation of such Procedures. See Q3 for details.
(Article 11, Paragraph 7 of the Regulations)(6) Reporting the results of the Segregated Management Audit to the Investment Trust Association,
Japan
When a Full Member receives a report on the results of Segregated Management Audit conducted by
Certified Public Accountants, etc. (meaning the “Assurance report on compliance with the laws,
regulations, etc. concerning segregated management” submitted by Certified Public Accountants,
etc.; hereinafter referred to as the “Segregated Management Audit Report”), the Regulations oblige
the Full Member to report to the Association according to the submission form as set forth in the
By-laws with a copy of the Management Report attached thereto.
However, notification to this Association is no longer required only when a Full Member, which has
obtained registration for both Type I financial instruments business and Type II financial instruments
business, engages in taking their customers’ deposits for investment concerned with the direct
offering of investment trusts as part of their securities, etc. management business (Type I business)and submits a Segregated Management Audit Report to the Japan Securities Dealers Association.
In order to conduct solicitation and sales as Type I financial instruments business, it is necessary toregister securities sales representatives with the Japan Securities Dealers Association as well as tosubmit a notification of the Sales Officers and Representatives to the Association.
(Article 11, Paragraph 8 of the Regulations and Article 3-2, Paragraph 3 of the By-laws)-3-Question 2: In Article 11, Paragraph 6 of the Regulations, it is provided that the member shall implement

procedures to confirm that it has established and operated an effective internal control system forcompliance with the laws, regulations, etc. concerning segregated management and has conducted thesegregated management of customer assets in compliance with such laws, regulations, etc. What kind ofprocedures are specifically required?

Answer: Full Members are obligated to conduct the segregated management in compliance with the relevantlaws, regulations, etc. and to receive routine audits by Certified Public Accountants, etc. regarding thestatus of their segregated management at least once a year as stipulated in the Order Regarding AccountManagement Institutions or the Regulations. In order to receive such audit by Certified Public
Accountants, etc., it is necessary to prepare a Management Report.
Management Report is for the management to express their opinion on the status of compliance with thelaws, regulations, etc. regarding the segregated management of a Full Member on the Base Date for
audit in order for the Full Member to receive such audit by Certified Public Accountants, etc. on aregular basis.
In other words, in order for the management to express their opinions in the Management Report, themanagement needs to conduct an inspection according to the procedures suited to their own
circumstances (internal inspection, etc.) to ascertain, as of the Base Date for audit, whether the
segregated customer fund has been entrusted and Customer Securities are managed separately as set
forth in the relevant laws, regulations, etc. as well as whether an effective internal control has been
established and implemented to comply with such laws, regulations, etc. concerning segregatedmanagement. Examples of such procedures include the following:(1) Full Members who have been subject to the Agreed Procedures in the past or who receive theSegregated Management Audit for the first time
With reference to the “Internal Control Framework for Segregated Management” and attacheddocument thereto “Check Items and Checkpoints for Segregated Management of Customer Assets,”
it may be advisable to implement procedures (such as internal inspections) to confirm that it hasestablished and operated an effective internal control system for compliance with the laws,
regulations, etc. concerning segregated management and has conducted the segregated managementof customer assets in compliance with such laws, regulations, etc.

(2) Full Members who have received Verification Services in the past
It is acceptable to basically follow the same procedures as the Confirmation Procedures pursuant to
the old Practical Guidelines at the time of receiving the Verification Services in the past.
(Article 11, Paragraph 6 of the Regulations)-4-Question 3: What sort of records are required to be produced according to Article 11, Paragraph 7 of theRegulations?

Answer: The records to be prepared according to Article 11, Paragraph 7 of the Regulations shall include theprocedures implemented pursuant to Article 11, Paragraph 6 of the Regulations (see Q2) and thesummary of the results thereof.
(1) Full Members who have been subject to the Agreed Procedures in the past or who receive theSegregated Management Audit for the first time
When procedures are implemented with reference to the description of Q2(1) above, it is advisable torecord the results of such procedures by using the Japan Securities Dealers Association’s sample form
such as the “Investigation Sheet for Segregated Management.”(2) Full Members who have received Verification Services in the past
It is acceptable to basically follow the same procedures to prepare the records pursuant to the oldPractical Guidelines at the time of receiving the Verification Services in the past.

Question 4: How long should the records be kept, which is prepared according to Article 11, Paragraph 7 of
the Regulations?

Answer: The storage period of records prepared under Article 11, Paragraph 7 of the Regulations is notprescribed. However, as a check item in the “Inspection Manual for Financial Instruments Business
Operators, etc.,” it is stipulated that “whether a person engaged in the internal audit has accurate recordsof the matters verified through internal audit and problems identified,” and “whether a person engaged
in the internal audit has prepared an internal audit report without delay which accurately reflects
problems, etc. identified through such internal audit.” Therefore, although we believe each member
company provides for an appropriate period for their safekeeping, it is considered necessary to keepsuch records related to internal audit for at least three (3) years taking also into accounts necessary
responses to inspections, etc. by the relevant authorities.

Question 5: What matters should be included in the Management Report?

Answer: In preparing the Management Report pursuant to Article 3-2, Paragraph 1 of the By-laws, as a resultof the procedures (internal inspection, etc.; refer to Q2 above) to confirm that an effective internal
control system for compliance with the laws, regulations, etc. concerning segregated management has
been established and implemented, and the segregated management of the customer assets comply withthe such laws, regulations, etc., if any non-compliance with the laws, regulations, etc. is detected on theBase Date for audit such as (i) shortage of segregated customer fund and (ii) non-performance of-5-segregated management of the securities, all of such non-compliance incidence with the relevant laws,
regulations, etc. shall be described in the Management Report, in principle. It is not necessary to state in
the Management Report any accounting error or clerical error that is identified on the Base Date for
audit but not regarded non-compliance with the laws, regulations, etc. (e.g., calculation error or clericalmistake although the Necessary Amount of segregated customer trust fund is satisfied) or legal
non-compliance incidence that had occurred prior to the Base Date for audit but addressed by such Base
Date.
Please refer to Q1(3) for descriptions items in the Management Report.
(Article 3-2, Paragraph 1 of the By-laws)

Question 6: When do we need to start receiving the Assurance Engagements under this revised Regulations?

Answer: The Assurance Engagements under the revised Regulations shall apply to any SegregatedManagement Audit, which will be conducted on or after March 31, 2018, as the Base Date of audit.
Specifically, the details are as follows:(1) Full Members who have received Verification Services in the past
The Full Members who received the Verification Services before the effective date of this amendment
will continue to receive the Assurance Engagements.
(2) Full Members who have received Agreed Procedures in the past
Full Members who have been subject to the Agreed Procedures prior to the effective date of thisamendment will also be required to receive the Assurance Engagements. However, in consideration of
the fact that preparation is required for the switchover from the Agreed Procedures to the Assurance
Engagements, a grace period has been established. Specifically, with respect to the SegregatedManagement Audit to be conducted on or before March 31, 2018, as the Base Date of audit, it ispossible to continue to receive the Agreed Procedures. (In this case, the Segregated Management
Audit to be conducted on or after April 1, 2018, as the Base Date for the audit is subject to the
Assurance Engagements.)-6-

Consideration When Establishing Provisions for Exercise of Voting Rights by
Instruction
Established on March 13, 2003
Revised on September 21, 2007
Revised on September 12, 2008
Revised on March 18, 2010

An investment trust management company (meaning the investment trust management company as defined in
Article 2, Paragraph 11 of the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951;
hereinafter referred to as the “Investment Trust Act”); hereinafter the same shall apply) shall bear the following
points in mind when establishing provisions for the exercise of voting rights by instruction in accordance withthe provisions in Article 2, Paragraph 2 of the Rules on Full Member’s Business Operations, etc.

1. Consideration in Establishment(1) Purpose of establishment of provisions and basic stance on exercise of voting rights by instruction
In consideration of the fact that the exercise of voting rights by instruction is only for the benefit ofbeneficiaries, the purpose for establishing the provisions and the basic concept for exercising voting rights
shall be clearly stated.
(2) Development of decision-making process and system for exercising voting rights by instruction, etc.
When exercising voting rights by instruction, the decision-making process and the authority andresponsibility for the decision-making shall be clearly described, and the system for such decision-making
shall be established.
(3) Screening standards
In order to contribute to the effective exercise of voting rights by instruction, an investment trust
management company may establish screening standards. However, when such standards are established,
the contents thereof shall be specified.
(4) Storage of supporting data
In accordance with the provisions such as matters specified in (1) through (3) above, an investment trust
management company shall determine whether any individual proposal is an issue, and if any proposal
represents an issue, the investment trust management company shall store the notice of the General
Meeting of Shareholders relating to such proposal, and records on which the reason for the issue and thereason for the decision-making, etc. are based for a period of five years after the end of the accounting
period to which the day of giving the instruction belongs. In addition, the retention period shall be
specified in such provisions. When exercising voting rights by instruction, it should be noted that
instructions shall be prepared and preserved in accordance with Article 26 of the Ordinance for
Enforcement of the Act on Investment Trusts and Investment Corporations and Appendix 1.

2. Other Considerations(1) Disclosure－1－(i) An investment trust management company shall specifically disclose items specified (1) to (3) above as
principles for exercising voting rights.
(ii) An investment trust management company shall set forth, in its internal rules, items to be disclosed
and other necessary matters with regard to the result of the exercise of voting rights for domestic shares,
and in principle, shall compile the results of the exercise of voting rights at the General Meeting of
Shareholders held in May and June and disclose them by the end of August.
(2) Exercise of voting rights pertaining to foreign shares by Instruction
It should be noted that in accordance with the provisions of the Investment Trust Act and the Business
Regulations and Operational Rules, instructions shall be given based on the circumstances of the country
concerned.

－2－

[Examples of Disclosure Items for Result of Exercise of Voting Rights by Instruction]
Proposed Agenda

Compiled Items

1. Company Proposals(i) Number of proposals(i) Appropriation of surplus(ii) Number of approval votes(ii) Election of Directors(iii) Number of opposition votes(iii) Election of Auditors(iv) Partial amendment of the Articles ofIncorporation(v) Payment of retirement allowance(vi) Revision of remuneration amount for
officers(vii) Issuance of stock acquisition rights(viii) Appointment of accounting auditor(ix) Reconstruction(x) Other Company Proposals
2. Shareholder Proposals

Supplementary ProvisionThis amendment shall come into effect on September 30, 2007.

Supplementary ProvisionThis amendment shall come into effect on October 1, 2008.

Supplementary ProvisionThis amendment shall come into effect on May 1, 2010.

－3－

Guidelines for Treatment of Money Arising after Termination of Investment Trusts
Established on July 18, 2013

1. Purpose
The purpose of these Guidelines is to indicate the basic concept of the treatment of money arising after thetermination of the trust for an investment trust by a Member Management Company (meaning a Member thatis an investment trust management company as defined in Article 2, Paragraph 11 of the Act on Investment
Trusts and Investment Corporations (Act No. 198 of 1951); the same shall apply hereinafter).

2. Principles
A Member Management Company shall return money arising after termination of the trust for an investment
trust to the beneficiaries at the time of termination (redemption) in principle; provided, however, that thisshall not apply to cases where the investment trust agreement provides otherwise or cases where it is difficult
to return such money to the beneficiaries.

3. Treatment at the Time of Termination of an Investment TrustAt the time of termination of an investment trust, the Member Management Company shall consult with thetrustee on whether or not any money is expected to be received after the termination of the trust for theinvestment trust and whether or not any such money can be recorded as investment trust property, and if any
money is available to be recorded as investment trust property, the Member Management Company shallrecord such money as investment trust property through advance payment and then terminate the trust.
Advance payment is made in consideration of “advance payment of the trustee” stipulated in theinvestment trust contract after confirming the treatment method with the trustee.

4. View on Whether or Not Recording in Investment Trust Property is Allowed
A Member Management Company shall make judgment as to whether or not the money can be recorded ininvestment trust property as set forth in “3.” on the basis of (i) certainty of occurrence of such money (whichis expected to be received within one (1) year from the redemption date) and (ii) certainty of the amount (ofwhich one (1) yen or more is expected to be received (by issue) after the amount of receipt is finalized andvarious expenses such as refund fees are deducted).

5. Return of Money Arising after Termination of the Trust for an Investment Trust
For the return of money newly arising after termination of the trust for an investment trust investment,
expenses required for the return (expenses expected to be reasonably necessary such as shipping expenses(costs for postage stamp, envelope, printing, etc.), transfer expenses, expenses for identifying beneficiaries,
etc.; hereinafter referred to as “Return Expenses” ) may arise.
The Member Management Company shall decide whether or not money arising after the termination of
the trust for the investment trust can be returned to beneficiaries on a case-by-case basis, in consideration of－1－

such factors as the number of beneficiaries, Return Expenses, in principle.

6. Judgment on Whether or not Return is Allowed
Whether or not money arising after the termination of the trust for the investment trust can be returned may
be determined by the Member Management Company based on its own judgment criteria, or determined
after confirming Return Expenses with the sales company.
A Member Management Company shall establish the internal criteria for determination on whether or
not return is possible with reference to “Determination on whether or not return is possible” below.

－2－

<Reference>
Determination on whether or not return is possible(1) When the amount of money arising after the termination of the trust is small
In the case where the amount of money arising is substantially smaller than the number of beneficiaries,
a Member Management Company shall determine whether or not return is possible on its own. The
following methods are considered as the criteria for determining whether or not return is possible.
(i) As for money arising after the termination of the trust, the amount per unit for calculation of the basevalue is calculated using the number of beneficial interest units at the time of termination of theinvestment trust. Any fraction of such amount less than one yen is determined as non-refundable.
(ii) When the result of determination in (i) indicates one yen or more, whether or not return is possible isdetermined in consideration of Return Expenses. As for Return Expenses, possible methods include
the method where trial calculation is made using the number of beneficiaries estimated based on thenumber of copies of the Investment Report delivered at the time of the termination of the investment
trust, and the method where past cases of refund are referred to. When the amount of money accrued
after the termination of the trust is less than Return Expenses, it is determined to be non-refundable.

(2) When it is not determined to be non-refundable in (1) (ii)
When the amount of money accrued after the termination of the trust exceeds Return Expenses, it isdetermined to be refundable.

7. Non-refundable cases
If a Member Management Company judges that money arising after the termination of the trust for theinvestment trust cannot be returned, the Member Management Company shall inform the Trustee to that
effect and deal with such money after consultation with the Trustee.

Supplementary Provision
These Guidelines shall come into effect on July 18, 2013.

－3－

Guidelines for Operation of Investment Trusts in Case of Emergency
Established May 18, 2007
Revised on December 20, 2012
Revised July 15, 2021

I. Purpose
These Guidelines set forth matters serving as guidelines for the investment trust management company(hereinafter referred to as the “Management Company”) to make decisions regarding measures to be taken to
ensure the appropriate operation of the investment trust (hereinafter referred to as the “Fund”) in the case ofan occurrence of an event such as suspension of trading in the securities market (hereinafter referred to as an“Emergency”) due to the occurrence of an unexpected event such as a natural disaster, terrorist incident,
system failure, or large-scale power failure.

II. Measures to be Taken by the Management Company in the Event of an Emergency and the Contents Thereof,etc.
In the event of an Emergency, measures to be taken by the Management Company and the contents thereof,
and the requirements for sales companies and financial instruments intermediary service providers (meaning
financial instruments intermediary service providers set forth in Article 4, Paragraph 1, Item 1 of the Articles
of Incorporation) shall be as follows:(1) Measures to be taken by the Management Company and the contents thereof
The Management Company shall take measures to suspend acceptance of applications forestablishment and cancellation of the Fund (meaning suspension of acceptance of applications forestablishment and cancellation of the Fund to be handled at the base value on the application date of thebase value stipulated in the contracts of the Fund to be subject to the measure, hereinafter referred to as
the “Acceptance Suspension Measure”).
This Acceptance Suspension Measure shall be taken upon receipt of notification of a resolution by
the Special Measures Committee of the Association or when the Management Company deems it
necessary and appropriate.

(2) Requirements for sales companies in case of taking the Acceptance Suspension Measure
The Management Company shall notify sales companies of the implementation of the Acceptance
Suspension Measure and information on the subject Fund, etc. and request the following matters so thatthe measure can be implemented smoothly.
(i)Prompt notification of the measure shall be provided to sales offices, etc.

(ii) Any application for establishment or cancellation that has already been accepted shall be dealt
with as cancellation of the order or as an order placed on or after the next day in consideration of
the customer’s intention.
(iii) In order to avoid confusion among investors, sufficient explanation shall be made on how todeal with orders for establishment and cancellation to investors.
－1－III. Development of Internal System, etc.
(1) The Management Company shall establish an internal control system in advance to properly andsmoothly implement the Acceptance Suspension Measure due to the occurrence of an emergency. For
example, the Management Company shall examine and decide the terms and conditions of any Fundthat may be subject to such measures or any Fund that is not subject to such measures based on the“Basic Policy on Suspension of Acceptance of Application for Establishment or Cancellation of
Investment Trust in Case of Emergency” (see Appendix) and the following elements:(i)

Level of the allocation ratio of assets to be affected by the event(ii) Status of establishment or cancellation of the Fund, its ratio to the net asset value, andconfiguration of attributes of beneficiaries, etc.
(iii) Fairness among beneficiaries and effects on trust property(iv) Whether there is an application for establishment or cancellation from an unusual sales form,
such as defined contribution pension plans, or regular fixed-amount installment deposit.
(v) Fund’s product characteristics(vi) Others
In addition, a Management Company shall make efforts to review the terms and conditions of the Fund,etc. subject to or not subject to the measure, etc. periodically or as necessary.

(2) In consideration of the establishment of the internal control system described above, the Management
Company shall consult and cooperate with sales companies in advance on information considerednecessary for smooth implementation of the measure, such as the communication method and thecontact point in case of implementation of the Acceptance Suspension Measure, as well as therequirements for a Fund that is assumed to be applicable to or excluded from the measure.

IV. Anticipated Events and Measures to Be Taken upon Occurrence Thereof
1. Suspension of Transactions by Exchange, etc.
(1) Suspension of trading by the Tokyo Stock Exchange and Osaka Exchange (hereinafter referred to as the“Tokyo Stock Exchange, etc.”)(i)

Decision to implement the measures
At the time of an emergency of suspension of trading at the Tokyo Stock Exchange, etc., theManagement Company shall take the Acceptance Suspension Measure upon receipt of
notification of a resolution by the Special Measures Committee of the Association or when theManagement Company deems it necessary and appropriate.

(ii) Measures to be taken by the Management Company
The Management Company shall determine the measure in (i) above and the Fund to be covered
thereby, and promptly inform sales companies of such decision.
When determining the Fund, it is desirable to ensure compliance with the blind method andto consider and determine effects on the base value of the Fund and effects of the establishment－2－

or cancellation on the trust property, taking into account the following points. Determination of
the Fund subject to the measure, etc.
a.

Non-acceptance date set forth in contractsb.

Allocation ratio of listed issues (with approximately 20% as a rough standard, at a level
deemed appropriate by the Management Company)c.

Weight of the exchange’s futures transactions in the trust propertyd.

Recent status of establishment or cancellation of the Fund and its ratio to the net asset valuee.

Discrepancy between the futures market and the spot market

f.

Fund’s product characteristicsg.

Others(2) Suspension of trading on domestic exchanges other than the Tokyo Stock Exchange, etc.
The Management Company shall take measures similar to those in (1) above, according to the status ofsuspension of trading at the exchange.

(3) Suspension of trading at overseas exchanges (such as those in Europe and the United States of America)that are to start trading after the end of the time for accepting applications in Japan(i)

Measures to be taken by the Management Company
In the event that the Management Company decides to suspend trading all day by noon Japan
Time at any overseas exchange where trading starts after the end of the time for accepting
applications in Japan, or in the event that the Management Company judges that trading on theprevious day has been suspended and that there is no prospect of resuming trading on the day,the Management Company shall take the Acceptance Suspension Measure.
When the overseas exchange is a futures market, it does not matter what kind theunderlying assets, such as interest rates, exchange rates, etc. in addition to stocks and bonds, are.

(ii) Implementation of measures and determination of the Fund covered, etc.
The Management Company shall obtain information on suspension of trading at an overseas
exchange, examine the measure in (i) above and the Fund that is subject to the measure based on
the list prepared in advance, and if they are judged to be appropriate, shall determine theimplementation of the measure and promptly inform sales companies of the determination.
When determining implementation of the measure and the Fund covered, it is desirable toconsider and determine impact on the base value of the Fund and effects of the establishment orcancellation on the trust property due to that base value, taking into account the following
points.
a.

Non-acceptance date set forth in contracts of the Fundb.

Allocation ratio of listed issues (with approximately 20% as a rough standard, at a level
deemed appropriate by the Management Company)c.

Weight of the exchange’s futures transactions in the trust propertyd.

Recent status of establishment or cancellation of the Fund and its ratio to the net asset value
－3－

e.

Discrepancy between the futures market and the spot market

f.

Fund’s product characteristicsg.

Others(4) Suspension of trading at overseas exchanges (such as those in Asia and Oceania) whose time for
accepting applications and the trading time overlap with those in Japan.
(i)

Measures to be taken by the Management Company
If any of the events set forth in the following sub-items (a) through (b) occurs at any overseas
exchange (such as those in Asia and Oceania) whose time for accepting applications and the
trading time overlap with those in Japan, the Management Company shall take Acceptance
Suspension Measure for acceptance on the day in the case of (a) and for application for
acceptance on the next day in the case of (b).

(a) When trading on the day is suspended and there is no announcement on the resumption of
trading by noon Japan Time(b) When trading is suspended after noon Japan Time and the Management Company judges thattrading on the next day is unlikely to be resumed(ii) Implementation of measures and determination of the Fund covered, etc.
If the Management Company shall obtain information on the suspension of trading at theoverseas exchange, the Management Company shall examine implementation of the measure in(i) above and the Fund that is subject to the measure based on the list prepared in advance, and ifthey are judged to be appropriate, shall determine the implementation of the measure andpromptly inform sales companies of the determination.
When determining implementation of the measure the Fund covered, it is desirable toensure compliance with the blind method and to consider and determine impact on the basevalue of the Fund and effects of the establishment or cancellation on the trust property due tothat base value, taking into account the following points.
a.

Non-acceptance date set forth in contracts of the Fundb.

Allocation ratio of listed issues (with approximately 20% as a rough standard, at a level
deemed appropriate by the Management Company)c.

Weight of the exchange’s futures transactions in the trust propertyd.

Recent status of establishment or cancellation of the Fund and its ratio to the net asset valuee.

Discrepancy between the futures market and the spot market

f.

Fund’s product characteristicsg.

Others(5) Suspension of trading at an exchange market(a) Basically, it is considered unnecessary to take the Acceptance Suspension Measure. However,this does not preclude taking the Acceptance Suspension Measure or any other measure when
the Management Company deems it necessary, for example in the case where the suspension of－4－

trading at an exchange market poses an obstacle to inward remittance of the Fund and the Fundfinds it difficult to secure funds for cancellation.
If the Management Company determines implementation of the Acceptance Suspension
Measure and the Fund covered, the Management Company shall promptly notify sales
companies to that effect and the name of the Fund covered.
(b) When trading at an exchange market is suspended, as for the exchange rate used for evaluationof the trust property, the Association shall make responses in accordance with the Rules of the
Association and notify the Management Company of the exchange rate.

2. Market Turmoil such as Collapse
Basically, it is considered unnecessary to take the Acceptance Suspension Measure. However, this does
not preclude taking the Acceptance Suspension Measure or any other measure when the Management
Company deems it necessary and appropriate, for example in the case where indicative price quotations
continue due to collapse for consecutive days, etc. or where liquidity of assets could be affected.
In this case, it is desirable that the Management Company considers and determines impact on thebase value of the individual Fund, effects of the establishment or cancellation on the trust property due tothat base value, financing for the cancellation, etc., taking into account the following points.
a.

Discrepancy between indicative price quotations and actual price as a result of thecontinuation of the indicative price quotationsb.

Asset mix of the Fund and recent status of cancellation (financing)

If the Management Company determines implementation of the Acceptance Suspension Measure and theFund covered, the Management Company shall promptly notify sales companies to that effect and thename of the Fund covered.

3. Failure of Market Infrastructure
In the event that it becomes impossible to obtain market information due to a disaster such as a large-scale
earthquake or the suspension of the exchange distribution system or the settlement mechanism, andconsequently it becomes difficult to calculate the base value or such an event has a significant impact onliquidity of assets, the Management Company shall implement the Acceptance Suspension Measure.
In this case, it is desirable that the Management Company considers and determines implementationof the measure and the Fund subject to the measure, taking into account the following points.
a.

Impact of the allocation ratio of securities listed on the stock exchange on which market
information has become difficult to obtainb.

Whether or not there is a possibility of calculating the base value

4. Others
Even in the event of any event other than those set forth in 1 through 3 above, this shall not preclude taking
the Acceptance Suspension Measure when the Management Company judges it necessary and appropriate
to take the Acceptance Suspension Measure for the Fund in consideration of securing compliance with the－5－blind method, impact on the base value, etc.

V. Notification of Implementation of Measures, etc. to Sales Company
The Management Company shall inform the contact point of sales companies of the contents of each item
described in the prescribed form as information necessary for implementation of measures, such asmeasures decided by the Special Measures Committee or measures decided by the Management Company,
which have been communicated by the Association, and the name of the Fund that is subject to thosemeasures, using the prescribed form or other method.

VI. Publication of Base Value on the Implementation Date of the Acceptance Suspension Measure
The Management Company shall calculate the base value on the day when the Acceptance Suspension
Measure are implemented in accordance with the Rules of the Association, and shall publicize the basevalue in principle;
Provided, however, that in any of the following cases, the Management Company may refrain fromdisclosing the base value if the company considers it appropriate not to disclose the base value after
conducting an examination from the viewpoint that disclosing the base value may cause misunderstanding
for the investment decision of Investors.
a.

When the subject Exchange is closed for a long period of timeb.

When the market as a whole is disrupted by, for example, a limit-low or stop-high ofindicative prices of many issues at the market, and this situation continues to exist

VII. Date of Implementation, etc.
1. These Guidelines shall come into effect from May 18, 2007, and the Association and its members shallestablish internal systems such as communication systems as soon as possible after the implementationdate.
2. The “Temporary Measures in Connection with the Suspension of Trading by the Tokyo Stock Exchange(Resolution of the Special Task Force dated January 19, 2006)” shall be repealed on May 18, 2007.

Supplementary Provision
The amendments shall come into effect on January 4, 2013.

Supplementary ProvisionThis amendment shall come into effect on July 15, 2021.

－6－

<Appendix>

Basic Policy on Suspension of Acceptance of Application for Establishment or Cancellation of Investment
Trust in Case of Emergency[Premise]With regard to the implementation of measures to suspend the acceptance of applications for establishment
or cancellation of investment trusts from investors or beneficiaries at the time of an emergency, regardless of
the reason for such suspension, an investment trust management company shall decide whether or not to
implement such measures and which investment trusts are to be implemented based on the provisions ofindividual investment trust contracts.

[Basic Concept]
When an investment trust management company takes any measure to suspend the acceptance of applicationfor establishment or cancellation of an investment trust, the investment trust Management Company shall
pay attention to the following points with regard to the same Investment Trust.
‐Handling conditions shall not differ depending on sales companies.

‐

There shall be no inequity between investors applying for establishment or cancellation andremaining beneficiaries.

‐

The blind point of view shall be maintained.

etc.

[Scope of Specific Exemption from Application]
Even if an investment trust management company has implemented any measure to suspend the acceptanceof application for establishment or cancellation of an investment trust, basically from the above viewpoint, it
is considered that the adverse effects of accepting the application for any of the following cases as an
exception to such measures will be small.
In this case, however, it should be noted that the investment trust management company must sharenecessary information with sales companies regarding the terms and conditions, channels, etc. of theinvestment trust that will be an exception to the measure.
(Cases Considered to Have Few Adverse Effects)‐

Establishment, cancellation, and replacement of a defined contribution pension plan‐

Establishment of regular, fixed-amount purchase for cumulative investment contracts, accumulation
investment contracts, etc.

‐

Establishment of distribution reinvestment‐

Establishment and cancellation under variable pension insurance contracts－7－

Appended Form

List of Funds for Which Establishment or Cancellation Has Been Suspended
Date: MM DD, YYYY
Application
date of the
Acceptance
Suspension
MeasureDescription

yyyy/mm/dd

RequireditemsInvestment
Trusts
Association
Code

ISIN
Code

Fund Code(i)

8 digits

1Fund Code(ii)

Fund Code(iii)

Name of theInvestment
Trust
Company

Official
Fund Name

Abbreviations
or Nicknames

Regular, FixedAmount Category

If neither
establishment nor
cancellation issuspended, enter 1.

NomuraResearch
Institute

Daiwa
Institute of
Research

Others△△△If establishment only
is not suspended,
enter 2.
If cancellation only is
not suspended, enter
3




△

△

2
3
4
5
6

Precautions for description
1. Application date of Acceptance Suspension Measure
Enter the date. Required items. Enter the application date of the Acceptance Suspension Measure.
2. Investment Trusts Association CodeAn eight digit number. Required items.
3. ISIN Code
12 digit alphanumeric characters. Required items.
4. Fund Code (i)Optional Items. Left blank if not applicable. When Nomura Research Institute’s system is used, the fund code for the system may be entered.
5. Fund Code (ii)
Optional Items. Left blank if not applicable. When Daiwa Institute of Research’s system is used, the fund code for the system may be entered.
6. Fund Code (iii)
Optional Items. Left blank if not applicable. When any system other than the above fund codes (i) and (ii) is used, the fund code for the system may be entered.

7

Distribution
Reinvestment
Category

If nothing issuspended,
enter 1.

△

DC Category

If neither
establishment nor
cancellation issuspended, enter 1.
If establishment
only is notsuspended, enter 2.
If cancellation only
is not suspended,
enter 3△

VA
Category

Application
date of thebase value

1: On theday
If nothing issuspended,
enter 1.

2: On thenext day△

3: Two dayslater
4: Others7. Investment Trust Company
Required items. Enter the name of the investment trust company.
8. Official Fund Name
Required items. Enter the official name of the fund.
9. Abbreviations or Nicknames
Optional Items. Enter the fund’s abbreviation or nickname.
10. Regular, Fixed-Amount Category
Optional Items. Enter 1-3 if applicable. Left blank if not applicable. If neither establishment nor cancellation is suspended for regular, fixed-amount installment deposit, enter 1.
If only establishment is suspended and cancellation is suspended for regular, fixed-amount installment deposit, enter 2.
If establishment is suspended and only cancellation is not suspended for regular, fixed-amount installment deposit, enter 3. In the case where operations including regular, fixed-amount installment deposit are suspended, and other cases, it isleft blank.
11. Distribution Reinvestment Category
Optional Items. Enter 1 if applicable. Left blank if not applicable. If distribution reinvestment is not suspended, enter 1.
In the case where there is no category for distribution reinvestment, the case where operations including distribution reinvestment are suspended, or other cases, it is left blank.
12. DC Category
Optional Items. Enter 1 if applicable. Left blank if not applicable. Neither establishment nor cancellation is suspended, enter 1 for DC.
If only establishment is not suspended and cancellation is suspended for DC, enter 2. If establishment is suspended and only cancellation is not suspended for DC, enter 3.
In the case where there is no DC category, the case where operations including DC is suspended, or other cases, it is left blank.
13. VA Category
Optional Items. Enter 1 if applicable. Left blank if not applicable. If nothing is suspended for VA, enter 1.
In the case where there is no VA category, the case where operations including the VA category are suspended, or other cases, it is left blank.
14. Date on which the unit price is applied
Required items. If the application date of the base value is the day, enter 1. Enter 2 if the application date is the next day, or enter 3 if the application date is the day after next.
In the case where the application date is three days later, or the case where the application date of the base value is applied is different between establishment and cancellation, or other cases, enter 4.

8Concept of Disposition Against Members

Established on July 15, 2021

1. Basic Concept
The main purpose of dispositions to be taken by the Association against Full Members is to prevent any Full
Member from violating any laws and ordinances, orders and dispositions based thereon, and the Articles ofIncorporation and various rules of the Association (hereinafter referred to as “Laws and Ordinances, etc.”),and to prevent any recurrence thereof, thereby securing fairness in the business of investment trusts
conducted by any Full Member and financial instruments business, etc. related to the investment corporation,and thoroughly protecting investors, thereby contributing to the maintenance and improvement ofconfidence in the asset management business and the financial instruments exchange market.

Therefore, in order to further enhance the effectiveness of dispositions of Full Members, the Association has
decided to clarify and categorize seriousness and malicious nature of violation of Laws and Ordinances, etc.,
the status of internal control systems, and treatment in cases where violation of Laws and Ordinances, etc. isrepeated or continuing or where antisocial forces are involved, and other cases, after sorting out factors to beconsidered in the dispositions. In addition, it has decided to review the maximum amount of negligence fine
imposed on Full Members for violation of Laws and Ordinances, etc.
On the other hand, it is important for Full Members to prevent the occurrence of any violation of Laws
and Ordinances, etc. by endeavoring to secure accurate understanding and recognition of Laws andOrdinances, etc. on a day-to-day basis with a high degree of compliance awareness, establishing anappropriate internal control system in accordance with their own business conditions and adequately andproperly conducting internal control in order to prevent any violation of Laws and Ordinances, etc. Even if
any violation of Laws and Ordinances, etc. occurs, it is desirable to establish an environment in which
self-purification can be achieved by detecting it early through internal self-inspection, etc. and making a
prompt response, and other means.

Based on this concept, elements to be considered in the examination of dispositions of Full Members are
summarized as follows. It is expected that this arrangement will increase the transparency and predictabilityof dispositions of Full Members and will also contribute to the improvement of compliance awarenessamong Full Members with Laws and Ordinances, etc.
It should be noted that the following items are examples of elements to be taken into consideration in
the examination of dispositions, and other items that are deemed necessary in accordance with the content of
the case can also be taken into consideration. Furthermore, it should also be noted that even if an individual
officer or employee of a Full Member has committed a violation of Laws and Ordinances, etc., when any
deficiency is found in the internal control system of the Full Member, an action is taken against the officer or
employee in consideration of the status and degree of such deficiency.
－1－2. Factors to be Considered When a Disposition is Taken upon Occurrence of Violation of Laws andOrdinances, etc.
(1) Seriousness of the act(i)Period and size of violation of Laws and Ordinances, etc.
The period and frequency (number of cases) of violation of Laws and Ordinances, etc., the number of
persons engaged in such violation, the effect of such violation on the trust property or the managed
assets (amount of damages), etc. shall be taken into consideration.
When it is determined that any violation of Laws and Ordinances, etc. has been committed for along period of time or on a large scale, strict measures shall be taken accordingly.

(ii) Breach of Duty of Loyalty and Duty of Care, etc.
In the event that an investment management company is not considered to be engaged in theinvestment management business with due care of a bona fide and good manager for the benefit ofbeneficiaries of an investment trust, etc. or the investment corporation, or for any acts that fail toprotect investors (beneficiaries) or harm the fairness of transactions, or that cause a loss ofconfidence in the asset management business, strict measures shall be taken accordingly.

(iii) Status of Administrative Punishment for Violation of Laws and Ordinances, etc.
In the event that any administrative punishment is imposed for any violation of Laws and Ordinances,
etc., measures shall be implemented, taking into account details of the punishment.

(2) Malicious nature of the act(i)Presence or absence, and degree of willful intention or negligence
In any violation of Laws and Ordinances, etc., it shall be considered whether such violation of Laws
and Ordinances, etc. was committed intentionally or caused by carelessness or negligence such as a
mistake in paperwork.
When the degree of willful intention or negligence is deemed serious, strict measures shall betaken accordingly.

(ii) Organizational nature, presence or absence, and degree of involvement of the management team andmanagerial personnel
The number and position of persons involved in violation of Laws and Ordinances, etc. (from theviewpoint of organizational nature) shall be taken into consideration when dealing with such
violation.
Even if the number of persons involved in violation of Laws and Ordinances, etc. is small, when
the involvement of managerial personnel is recognized, such as the management team, etc.
permitting or overlooking such violation, it is determined that such violation is organizational, andmeasures shall be taken accordingly.
－2－

In the event that any violation of Laws and Ordinances, etc. is highly organizational and strong
involvement of the senior management is recognized, strict measures shall be taken accordingly.

(iii) Repeatability, and presence or absence of similar indication in the past
When any similar violation of Laws and Ordinances, etc. is repeatedly committed or when any
similar violation has been pointed out in a past administrative inspection or inspection by aself-regulatory organization, etc., measures shall be taken in consideration of the parties involved insuch violation, responses to the previous notice, and the status of corrective measures taken.
If there is any substantial imperfection in the subsequent response, such as failure to takeappropriate improvement measures, or if the previous indication has been overlooked, strictmeasures shall be taken accordingly.

(iv) Presence or absence of concealment of facts and the extent thereof
When any act of concealment of facts is recognized and the circumstances thereof are deemed
extremely malicious, such as the act of organizationally implemented concealment of facts, strictmeasures shall be taken accordingly.
(3) Impact of the act(i)Extent of loss of confidence in the asset management businessMeasures shall be taken in consideration of the extent to which the trust of investors (beneficiaries) in
the asset management business has been lost, such as fairness of operations of the Financial
Instruments Business related to investment trusts and investment corporations (including fairtreatment of customers and proper management of conflicts of interest).
In the event that the impact on investors (beneficiaries) and financial instruments exchange
markets is deemed material and credit of the asset management business is deemed substantially
impaired, strict measures shall be taken accordingly.

(ii) Effect on investors (beneficiaries), presence or absence of complaints
Measures shall be taken in consideration of the content and extent of losses imposed on investors(beneficiaries) and the status of complaints from investors (beneficiaries) regarding violation ofLaws and Ordinances, etc.
In the event that the impact on the investor (beneficiary) is deemed serious, such as a serious
concern arising about the protection of investment trust property and the investment corporation’s
managed assets, etc., strict measures shall be taken accordingly.

(4) Awareness and attitude about compliance with Laws and Ordinances, etc.
(i)

Awareness and attitude about compliance with Laws and Ordinances, etc.
Measures shall be taken in consideration of recognition of Laws and Ordinances, etc., complianceawareness, and attitude with regard to violation of Laws and Ordinances, etc.
In the event of any lack of awareness of compliance with Laws and Ordinances, etc., strict－3－

measures shall be taken accordingly.

(ii) Presence or absence of opinion hearings from attorneys, etc.
Measures shall be implemented, also taking into consideration whether opinions of attorneys,
certified public accountants, and other experts have been sought and considered, as necessary.

(5) Status of internal control system(i)

Status of internal control system
In order to prevent any violation of Laws and Ordinances, etc., measures shall be taken inconsideration of whether internal control has been implemented sufficiently and accurately, after
appropriate internal control systems (including an information control environment, etc.) areestablished according to the operation of the Full Member.

(ii) Clarification of responsibility
With regard to the occurrence of any violation of Laws and Ordinances, etc., measures shall be taken
in consideration of how the management team and managerial personnel recognize their
responsibility for such violation and how the responsibility is clarified.

(iii) Whether or not in-house training, etc. is implemented
In order to prevent any violation of Laws and Ordinances, measures shall be taken in consideration ofwhether the management team, managerial personnel, etc. give appropriate instructions and whether
effective internal training, etc. is provided.

(6) Status of response to violation of Laws and Ordinances, etc.
(i)

Background to discovery of violation of Laws and Ordinances, etc.
Measures shall be taken in consideration of whether the violation of Laws and Ordinances, etc. wasdiscovered through an administrative inspection or an inspection by a self-regulatory organization, or
through a self-inspection, etc.
In principle, while strict measures shall be taken when the violation was discovered through an
administrative inspection or an inspection by a self-regulatory organization, mitigation measures
may be considered when the violation was discovered through a self-inspection, etc.

(ii) Status of corrective measures after discovery
Measures taken after any violation of Laws and Ordinances, etc. was discovered and the status of
improvement to prevent the recurrence shall be taken into account.
When it is recognized that immediate and appropriate corrective measures have been taken, it
may be considered as a mitigating factor. In addition, if corrective measures are consideredinsufficient, including the lapse of time, after the discovery of violation of Laws and Ordinances etc.,
the measures may be taken as an aggravating factor.
－4－

(iii) Cooperation in Investigations, etc.
When any uncooperative attitude is recognized, such as interference with investigations of the
Association through interruption, suppression of information, provision of false materials and othermeans, against investigations, requests for reports, and submission of materials based on the Articles
of Incorporation, strict measures shall be taken accordingly in consideration of such circumstances.

(7) Whether or not antisocial forces are involved
When any antisocial force is involved in any violation of Laws and Ordinances, etc., strict measures
shall be taken accordingly.

(8) Treatment of the amount equivalent to unjust enrichment(i)Collection of the amount equivalent to unjust enrichment
When unjust enrichment occurs as a result of violation of Laws and Ordinances, etc. to a Full
Member or any person concerned thereof with respect to a matter to be subject to measuresprescribed in Article 17 of the Articles of Incorporation, the amount to be collected may be
determined in consideration of an amount equivalent to the unjust enrichment in calculating theamount of negligence fine.
When a Full Member voluntarily takes measures to return the amount equivalent to unjust
enrichment, the amount to be collected may be determined according to the content of this returnmeasure.

(ii) Treatment of affiliated companies, etc. that can be considered to be substantially the same as a Full
MemberWhen an affiliated company, etc. that can be considered to be substantially the same as a Full
Member has obtained an amount equivalent to unjust enrichment in relation to violation of Laws andOrdinances, etc., this amount equivalent to unjust enrichment may be, in principle, deemed to be thatof the Full Member and the amount to be collected may be determined.

(iii) Treatment in the event that a surcharge is imposed on the other party
When a surcharge has been imposed, the amount to be collected may be determined in calculating theamount of negligence fine in consideration of the amount of the surcharge.

3. Concept of Expulsion and Applicable Reasons and Factors to be Considered
The purpose of expulsion, etc. by the Association is to prevent the recurrence of any violation of Laws andOrdinances, etc. by a Full Member who has caused the event subject to the expulsion, etc. by forcing it towithdraw from the Association and giving a warning regarding the withdrawal, thereby leading to theprevention of any violation of Laws and Ordinances, etc. by other Full Members.
In light of this point, in the case where the trust in the asset management business is significantly－5－damaged by any material violation of Laws and Ordinances, etc., the case where obligations as a Full
Member cannot be performed due to bankruptcy, etc., or the case where the qualification as a Full Member isquestionable due to the involvement of antisocial forces, etc., the Association shall consider expulsion, etc.
The items to be taken into account in the consideration shall be as follows.
For any item other than the following items, expulsion, etc. may be considered if it is deemed necessary
according to the content of the matter. With regard to the timing of expulsion, it shall also be examined
whether or not any particular problem will arise from the viewpoint of investor protection even if the Full
Member to be expelled is not subject to voluntary regulation of the Association.
(1) Unauthorized membership
For unauthorized membership, because the initial membership itself is considered invalid, expulsion
shall be imposed.

(2) Insolvency
If the subject Full Member does not voluntarily withdraw from the Association, expulsion thereof shallbe considered.

(3) When any disposition taken by any government agency or any disposition taken by the Association isviolatedIf wrongfulness is found in the subject Full Member’s refusing to abide by the disposition taken by the
Associate, expulsion thereof shall be considered.

(4) Arrears in membership fees etc.
If a Full Member is delinquent in paying membership fee for no justifiable reason, its membership shallbe suspended or restricted. When the situation, such as continuous failure to pay membership fee, is not
improved even during the period of suspension or restriction of membership, expulsion, etc. shall beconsidered.

(5) False report, etc.
If a false report is made, or basic obligations as a Full Member, such as submission of materials, are notfulfilled, the non-fulfillment of obligations shall be disclosed. If the situation is considered significantly
malicious or the non-fulfillment of obligations continues for one year or more, expulsion, etc. shall beconsidered.

(6) When antisocial forces are involved in corporate management, etc.
If any antisocial force is found to exist among major shareholders, directors, etc. or if any antisocial
force is found to be involved in corporate management, etc., expulsion, etc. shall be considered.

(7) When the total period of restriction or suspension of membership exceeds one year.
If any Full Member has been subjected to restriction or suspension of membership in the past five (5)－6－years, and the total period of the restriction or suspension exceeds one year, expulsion, etc. shall beconsidered.

(8) Others
In addition to what is stated above, the following situations are also taken into account in considering
expulsion.
‐

Case where it is recognized that there has been an organized act; for example, there has beenleading or active involvement of the senior management (director) in violation of Laws andOrdinances, etc.

‐

Case where there is any substantial deficiency in follow-up measures; for example, any
appropriate improvement measures have not been taken for no justifiable reason and thesituation is equivalent to abandonment of the matter.

‐

Case where it is recognized that the circumstances are extremely malicious; for example, there
has been concealment of facts, which was done organizationally.
(End)

－7－

Concept of Dispositions Against Sales Representatives

Established on July 15, 2021

1. Basic Concept
With regard to the Financial Instruments Intermediary Service under the Financial Instruments andExchange Act, the Association will take dispositions against sales representatives (including dispositions
against individual financial instruments intermediary service providers; hereinafter referred to as “Sales
Representatives Disposition”). The main purpose of Sales Representatives Dispositions is to prevent theoccurrence of any violation of laws and ordinances, etc. by sales representatives and to prevent therecurrence thereof, thereby securing fairness in transactions, etc. for public offering or private placement ofinvestment trusts and thoroughly protecting investors, thereby contributing to the maintenance andimprovement of confidence in the asset management business and the financial instruments exchange
market.
The Association, therefore, has decided to sort out considerations to be taken into account in Sales
Representatives Dispositions, and then clarify and break down them into patterns in order to ensure
effectiveness of such Dispositions.
Based on this concept, elements to be considered in the examination of dispositions against sales
representatives are summarized as stated in 2. below. It is expected that this arrangement will increase thetransparency and predictability of dispositions against sales representatives and will also contribute to theimprovement of compliance awareness among sales representatives with laws and ordinances, etc.
The following items are examples of factors to be taken into account in the examination of dispositions,and other items that are deemed necessary may be taken into consideration according to the content of thematter.

2. Factors to be Considered When a Disposition is Taken upon Occurrence of Violation of Laws andOrdinances, etc.
(1) Seriousness of the act
The period and frequency (number of cases) of violation of laws and ordinances, etc., the number of
persons engaged in such violation, the effect in terms of value (damage to customer assets), etc. shall betaken into consideration.
When it is determined that any violation of laws and ordinances, etc. has been committed for along period of time or on a large scale, strict measures shall be taken accordingly.

(2) Malicious nature of the act(i)Presence or absence, and degree of willful intention or negligence
In any violation of laws and ordinances, etc., measures shall be taken in consideration of whether－1－such violation of laws and ordinances, etc. was committed intentionally, such as the case where it isrecognized that there was a purpose of obtaining its own gain, or caused by carelessness or
negligence such as a mistake in paperwork.
When the degree of willful intention or negligence is deemed serious, strict measures shall betaken accordingly. .
(ii) Position of the person engaged in the violation
The title of the violator of laws and ordinances, etc. shall be taken into consideration. For example,
when the violator of laws and ordinances, etc. is a manager or the like, such as an officer in thefinancial instruments intermediary service provider, strict measures shall be taken accordingly inconsideration of the position in the same industry, level of responsibility, and other factors.

(iii) Repeatability, and presence or absence of similar indication in the past
When any similar violation of laws and ordinances, etc. is repeatedly committed or when any similar
violation has been pointed out in a past administrative inspection or inspection by a self-regulatoryorganization, etc., measures shall be taken in consideration of responses to the previous notice andthe status of corrective measures taken.
If there is any substantial imperfection in the subsequent response, such as failure to takeappropriate improvement measures, or if the previous indication has been overlooked, strictmeasures shall be taken accordingly.

(3) Impact of the act(i)Extent of loss of confidence in the asset management businessMeasures shall be taken in consideration of the extent to which investors’ confidence in the asset
management business may be lost, such as the fairness of transactions, in the public offering or
private placement of investment trusts.
In the event that the impact on investors is deemed material and the credit of the asset
management business is deemed substantially impaired, strict measures shall be taken accordingly.

(ii) Effect on customers, presence or absence of complaints from customers
Measures shall be taken in consideration of the content and extent of losses imposed on customers
and the status of complaints from customers regarding violation of laws and ordinances, etc.
In the event that the impact on customers is deemed serious, such as a serious concern arising
about the protection of customer assets, etc. due to a great number of customers subject to theviolation of laws and ordinances, etc. and a huge amount of effects, strict measures shall be taken
accordingly.

(4) Awareness and attitude about compliance with Laws and Ordinances, etc.
Measures shall be taken in consideration of recognition of Laws and Ordinances, etc., compliance－2－

awareness, and attitude with regard to violation of Laws and Ordinances, etc.
In the event of any lack of awareness of compliance with Laws and Ordinances, etc., strictmeasures shall be taken accordingly.

(5) Status of response to violation of laws and ordinances, etc.
(i)

Background to discovery of violation of Laws and Ordinances, etc.
It is taken into account whether the violation of laws and ordinances, etc. was discovered through an
administrative inspection or an inspection by a self-regulatory organization, or through aself-inspection, etc.
In principle, while when the violation was discovered through an administrative inspection or aninspection by a self-regulatory organization, strict measures shall be taken accordingly, mitigation
measures may be considered when the violation was discovered through a self-inspection, etc.

(ii) Status of corrective measures after discovery
Measures shall be taken in consideration of responses made after any violation of laws andordinances, etc. was discovered, such as restoration to original state, and the status of improvement toprevent the recurrence.
When it is recognized that immediate and appropriate corrective measures have been taken, it
may be considered as a mitigating factor. In addition, if corrective measures are consideredinsufficient, including the lapse of time, after the discovery of violation of Laws and Ordinances etc.,
the measures may be taken as an aggravating factor.

(6) Whether or not antisocial forces are involved
When any antisocial force is involved in any violation of Laws and Ordinances, etc., strict measures
shall be taken accordingly.
(End)

－3－

Code of Conduct for Confidence in Investment Trusts
I. Sincerity and Fairness
The investment trust management company shall act with sincerity and fairness in pursuit of
the best interests of investors and the development and soundness of the market.
II. Professional Competence and Due Care
The investment trust management company shall endeavor to secure personnel possessing
the knowledge of experts and strive to maintain and improve their capabilities and shall also
act with professional competence and due care in the performance of its duties.
III. Information Disclosure
The investment trust management company shall disclose information appropriately in orderto maintain transparency in the investment trust and to contribute to the investment
decisions of investors.
IV. Independence
The investment trust management company shall provide and manage investment trust
instruments in accordance with investor needs from an independent standpoint based on its
expert judgment.
V. Conflict of Interest
The investment trust management company shall control any potential or apparent conflictsof interest in a fair and effective manner, such as by identifying and appropriately disclosing
such conflicts of interest.
VI. Efficiency
The investment trust management company shall prioritize the interests of investors andshall always strive for efficient management. In addition to that, the investment trust
management company shall also proactively consider the possibility when there may besome measures that would contribute to the interests of investors in consideration of market
trends and the status of investments and take appropriate measures as needed.
VII. Relationship with the Investee Company
The investment trust management company shall endeavor to promote constructive dialogue
with the investee company aimed at increasing the corporate value of the investee company,
and shall exercise its voting rights appropriately and publish the results thereof.
VIII. Risk Management
The investment trust management company shall endeavor to establish a risk management
process and verify and review its effects so as to ensure efficient risk management.
IX. Compliance with Laws, Regulations, etc.
The investment trust management company shall comply with all applicable laws,
ordinances, regulations, and the basic terms and conditions of the investment trust.
X. GovernanceIn order to implement the above, the investment trust management company shall secure an
appropriate in-house governance system through efforts such as seeking advice from outside
the company as needed.

Asset Management Business Declaration 2020
~ Working with you to create our future assets and society ~“Invest for a Brighter Future”[Social Mission]
The mission of an asset management company is to strive towards forming stable assets
for everyone, to address social issues through investment activities aimed at that
purpose, and to contribute to the realization of an affluent life and a sustainable society
for all.
[Vision]<<Pursuing Expertise and Creativity>>
In order to provide the best investment results and high value-added services, all officers andemployees are fully aware of the fact that we are entrusted with the management of yourimportant assets. We have the responsibility and pride to do so and always pursue high levels of
expertise and diverse creativity.

<<Prioritizing Customer Profit>>
Prioritizing the long-term profitability of your assets is the basis of our approach to theasset management you rely on us for. We constantly pursue a variety of efforts forachieving this thoroughly and strive to satisfy your expectations.
<<Responsible Investment Activities>>
We perform responsible investment activities such as specialized research activities andactive dialogue with investee companies to increase the value of the assets we overseeand contribute to the realization of a prosperous and sustainable society.
<<Gaining Your Trust>>
By clearly stating our strengths - including our investment philosophy - and further
improving our investment capabilities and the products and services we offer byworking hard, we aim to gain additional trust and entrusted management of your assets.