May 21, 2014

Press Release
Nikko Asset Management Co., Ltd.

Nikko AM Wins R&I Fund Award 2014 in Defined Benefit Pension Category
Nikko Asset Management Co., Ltd. (Nikko AM) has been recognized for superior fund performance byRating and Investment Information, Inc. (R&I), in the category shown below. Nikko AM is honored to be
the recipient of the R&I Fund Award 2014 in Defined Benefit Pension categories, after receiving three
awards in Investment Trusts categories in April, which underscores the firm’s global outlook, Asian
insights and local experience in the fund management business.
FundCategory

Japan Bond Credit Specialist Strategy

Defined Benefit Pension /Japanese Bond Fund

About R&I Fund Award 2014
R&I Fund Award is based on the past data, and does not guarantee future performances of the fund. The Award is presented
only to provide information that can be used as a reference, and it does not intend to encourage investors to buy, sell or hold therelevant fund. Furthermore, it has no relation with the qualitative information Rating and Investment Information, Inc. (R&I)
provides to its clients. The Award is calculated by R&I based on information believed to be reliable; however, its accuracy andcompleteness are not necessarily guaranteed. The Award is not the Credit Rating Business, but one of the Other Lines ofBusiness (businesses excluding Credit Rating Business and also excluding the Ancillary Businesses) as set forth in Article 299,
paragraph (1), item (xxviii) of the Cabinet Office Ordinance on Financial Instruments Business, etc. With respect to such business,relevant laws and regulations require measures to be implemented so that activities pertaining to such business would not
unreasonably affect the Credit Rating Activities. The copyright and other related rights of this Award are the sole property of R&I.
Use of the information contained herein (including reproducing, amending, sending, distributing or mutilating the information) is
prohibited without R&I's permission. The Award given to "Investment Trusts/Aggregate Category" is based on the average fundmanagement performance of the relevant fund, and it does not indicate the performance of the manager's other individual funds.
The base value of investment trusts, etc. is obtained from QUICK.
Funds eligible for the "Investment Trusts" and "Investment Trusts/Aggregate" categories are Japanese Publicly Offered
Open-type Stock Investment Trusts excluding defined contribution pension funds. Those for "Defined Contribution Pension"consist of Japanese Publicly Offered Open-type Stock Investment Trusts used in defined contribution pension plans. "NISA" funds
are Japanese Publicly Offered Open-type Stock Investment Trusts for Nippon Individual Savings Accounts. Funds for "Defined
Benefit Pension" are those registered in "R&I Universe Data Service". All of them are in principle based on R&I's classifications.
The funds nominated in the "Investment Trusts", "Defined Contribution Pension", "NISA" and "Defined Benefit Pension"categories are those ranked in the top 75% of the annual quantitative evaluation for three consecutive years based on the actual
performance data for each year ending in March 2012, 2013 and 2014. Winners are selected according to the ranking ofquantitative evaluation for the three-year period ending in March 2014. The quantitative evaluation for "Investment Trusts","Defined Contribution Pension" and "NISA" is based on "Sharpe Ratio", and nominated funds are required to have been set forthree years or more and have one year or more left before maturity. For "Investment Trusts" and "NISA", funds must have 3 billion
yen or more outstanding and rank among the top 50% in their respective subcategories in terms of outstanding balance. Funds for"Defined Contribution Pension" need to have 1 billion yen or more outstanding and rank among the top 75% in their respective
subcategories in terms of outstanding balance. The quantitative evaluation for "Defined Benefit Pension", on the other hand, isbased on "Information Ratio". For "Investment Trusts", "Defined Contribution Pension" and "NISA", R&I awards the first prize toone fund and the second prize to about two funds. "Defined Benefit Pension" has no prize levels. Eligible for the "Investment
Trusts/Aggregate" category are fund managers that have three funds or more with the balance of 3 billion yen or more each as ofthe end of March 2014. The first prize and the second prize are awarded to one fund manager each based on the ranking bybalance-weighted average "Sharpe Ratio" of funds during the last three years.
* This award is based on past performance and does not guarantee future investment performance.

Nikko Asset Management Co., Ltd.
Midtown Tower, 9-7-1 Akasaka, Minato-ku, Tokyo, 107-6242, Japan
www.nikkoam.com
1Matters to consider regarding investment advisory and discretionary investment agreements
Investment based on a discretionary investment agreement and advice based on an investment
advisory agreement mainly involve securities, such as equities and bonds, whose prices fluctuate(foreign currency securities have an exchange rate fluctuation risk as well), so the net asset value(NAV) of your investment assets will fluctuate and may fall below your principal investment.

Major risks involved in these agreements are:1) Price fluctuation risk, 2) liquidity risk, 3) credit risk, 4) exchange rate fluctuation risk, 5) country
risk, 6) derivative risk, and 7) risks unique to market neutral and long/short strategies
Fees and other expenses
zInvestment Advisory Fees
An investment advisory fee, which serves as the fee for the investment advisory agreement and thediscretionary investment agreement, up to a maximum of 3.24% p.a. (3.0% before tax) will be charged
against the balance of investment assets according to the period under management. Depending on thecontent of the agreement, a contingent fee may be charged in addition to the fixed fee.
zOther fees
As for other fees, brokerage fees for portfolio stocks may be incurred.
In cases where investment trusts are bought based on a discretionary investment agreement, other fees
may be incurred, such as a trust fee on the investment trusts, commissions on the amount reserved fortrust assets, incorporation and redemption, brokerage fees for portfolio stocks, custodian fees,management fees, audit fees, fund establishment fees, interest rate of borrowings or borrowed stock fees.
<Disclaimer>* Contingent fees and other fees vary depending on investment strategies and management conditions;
therefore it is not possible to specify the amount of those fees and the limit beforehand.
* The risks and fees mentioned above differ depending on individual agreements. We urge you to read thepre-agreement reminder thoroughly before you sign an agreement.

Nikko Asset Management Co., Ltd.
Midtown Tower, 9-7-1 Akasaka, Minato-ku, Tokyo, 107-6242, Japan
www.nikkoam.com
2About Nikko Asset Management
Nikko Asset Management (Nikko AM) is a leader in the Asian financial services industry, with over $160 billion in assets
under management as of December 31, 2013. Established in 1959, the firm has representation across 24 locations in
12 countries and enjoys one of the largest distributor networks in the region, serving both retail and institutional clients.
More than 300 banks, brokers, financial advisors and life insurance companies distribute the company’s products.
Nikko AM manages a wide range of equity and fixed income strategies in both active and passive formats, leveraging
the talents of over 250 investment professionals. In 2013 alone, Nikko AM won awards for excellence in asset
management from Lipper, Mercer, AsianInvestor, R&I, among others.
The company’s management team is highly diverse and experienced, and is committed to running the company
according to international best practices. Nikko AM’s independence from the limitations imposed on many captive
asset management companies allows it to focus on the interests of clients. At the same time, the company enjoys astable base of shareholders, with majority ownership held by Sumitomo Mitsui Trust Holdings and a smaller stake byDBS Bank.
For more information, please visit http://en.nikkoam.com/* Consolidated assets under management and sub-advisory of Nikko AM and its subsidiaries as of 31 December 2013.

Nikko Asset Management Co., LTD
Registration Number: Director of the Kanto Local Finance Bureau (Financial instruments firms) No. 368
Member Associations: The Investment Trusts Association, Japan/Japan Investment Advisers Association

Nikko Asset Management Co., Ltd.
Midtown Tower, 9-7-1 Akasaka, Minato-ku, Tokyo, 107-6242, Japan
www.nikkoam.com
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