Mitsubishi UFJ Trust and Banking 1.Ensure customer-oriented approach Based on the notion that consistently taking initiatives to delve into fiduciary duties that Mitsubishi UFJ Trust and Banking (MUTB) must fulfill makes it the best trust bank for you or the organization that is selected by customers, MUTB will establish Mitsubishi UFJ Trust and Banking Fiduciary Duty as part of its company rules, which will be positioned as principles guiding its corporate directors and employees behaviors and mindset that all its directors and employees will address. - Our Fiduciary Duty - Mitsubishi UFJ Trust and Banking Corporation is an organization acting as a fiduciary that provides in an integrated manner customers with not only banking services but also a wide variety of products and professional services including asset management and administration, real estate services, stock transfer agency and inheritance-related services. As well as fulfilling its legal obligations which are in the form of the duties of loyalty and care, a fiduciary must act for its entrustors at all times in line with rigorous standards backed by strong expertise and ethical values. We, as a fiduciary, have developed the following set of principles, and we are committed to make continued efforts to reach higher levels for each of these principles. (1) Morality and Trustworthiness Based on the highest standards of morality and trustworthiness, we will make efforts to improve ourselves in a continuous manner. (2) Strong Expertise To provide the optimal solutions for our customers with prudence and proficiency, we pursue strong expertise that a trust bank needs to provide services across multiple areas. (3) Loyalty to Customers We act in the best interests of our customers at all times, with a state of mind and in a manner of behavior in which we identify with our customers' interests. MUTB seeks to enforce, through training etc., judgment and behaviors among its directors and employees based on the Principles of Ethics and Conduct, Mitsubishi UFJ Trust and Banking Fiduciary Duty and MUFG Basic Policy for Fiduciary Duties. MUTB will also seek to serve the best interest of its customers and increase customer satisfaction by implementing various initiatives based on customer feedback obtained through questionnaires etc. MUTB conducts thorough conflict-of-interest control with an information barrier (Chinese Wall) system and other measures, based on the anticipation that any transactions of a trust bank which provides a wide range of products and services to its customers in an integrated manner from banking services to asset management and administration, real estate, securities agency and succession-related services could involve a conflict of interest. MUTB will continue to further enhance its conflict of interest management to prevent customers interest from getting undermined with no due cause while maintaining and securing their benefits of transacting with the trust bank. 1
2.Developing and providing products that match customers needs (1) Developing and providing products that match customers needs [Product development and investment] MUTB will promptly develop products that match its customers investment needs and market trends. Also, MUTB will implement product development based on identifying product areas that it is not handling. MUTB strives to enhance its line of products and improve their quality by having respective expertise strengthened in departments in charge of developing and investing in the company s in-house products and of developing and investing in products in partnership with external investment management firms. MUTB will meet its customers diverse and global investment needs by enhancing its overseas investment product lineup through partnerships with overseas investment management companies. 3.Implementing customer-oriented consultation and provision of information (1) Implementing customer-oriented consultation and provision of information In proposing products, MUTB selects products based on customers knowledge, experience, financial circumstances and transaction purposes. It strives to propose products that match customers needs based on their life stages and attributes. Particularly with elderly customers and customers with limited investment knowledge and experience it seeks to propose products with low risk. MUTB will provide timely and adequate follow-up services including providing customers with a market outlook, status of investments and other information needed for their investment judgment in such events where the market fluctuates significantly. Furthermore, MUTB implements such initiatives as holding seminars for its customers on a regular basis. (2) Providing detailed information tailored to customers level of understanding In proposing products, MUTB strives to explain the products characteristics, risks and fees as well as market trends with easy-to-understand expressions and important information highlighted by such means as larger text and coloring and thereby to provide necessary and sufficient information. Moreover, MUTB utilizes tablet terminals and other devices to provide its customers with easy-to-understand information explaining returns, losses and other risks, transaction terms and conditions with simulations, graphic charts and other tools. In proposing products, MUTB seeks to reflect customer intention to make even better proposals including by showing asset management simulations on tablet terminals. MUTB classifies products into ranked categories for product solicitation and sales that match customers risk tolerance. Moreover, MUTB continuously seeks to improve its account 2
executives sales skills and place restrictions according to their skills, establishing an adequate information provision system. (3) Improvement of transparency of fees so as to contribute to customers investment judgment MUTB will seek to enhance transparency of fees for each product and provide in-depth explanations so as to contribute to customers investment judgment. In addition, regarding fees on insurance sales, we have since October been disclosing handling fees for specified insurance contracts. (4) Improvement of transparency of fees so as to contribute to customers investment judgment [Product development and investment] MUTB will develop a performance evaluation system that evaluates performance based on customers benefits and needs. MUTB will develop a performance evaluation system comprehensively evaluating sales activities that contribute to customers benefits and needs. Also, MUTB has a performance evaluation system in place that evaluates such factors as expanded customer base and continuously accumulated deposit balance in a well-balanced manner. (5) Initiatives of investment education [Product development and investment] MUTB leverages its asset management know-how in providing a variety of investment education programs to assist customers in considering their life plans and asset building as well as in taking actions. MUTB will increase the volume of its investment education and awareness-raising activities and, concurrently, enhance their contents. 4.Provision of line of products to meet diverse needs (1) Provision of line of products to meet diverse needs MUTB will offer a diverse and high quality line of products that enables customers to select appropriate products according to their investment objectives and risk tolerances. We will offer a product lineup including products with low risks or low fees so as to allow as many customers as possible including those with little investment experiences to utilize its services. It also seeks to improve convenience in the utilization of online transactions and periodic investment plans and thereby to allow customers of broad age groups to use its services. (2) Selection of products that contribute to customers asset building and provision of sales procedures MUTB will select products and services that contribute to customers benefits from among 3
many product designs proposed by a variety of investment management firms, insurance companies etc. while utilizing evaluations by external assessment agencies where necessary. Furthermore, MUTB will improve its products and services based on sincerely receiving customer comments, complaints and concerns with respect to the sales of its products and services. MUTB is implementing the following initiatives to prevent its product selection and sales from prioritizing products provided by its affiliated investment management companies or recommending products with high sales fees only. At the time of selecting products The products we handle are selected from among the same types of products taking into account the selection points noted below. < Selection Criteria > 1 2 3 4 5 6 7 Risks of products Expenses Performance The needs of the anticipated sales customers, appropriateness, and compatibility with the investment environment The complexity of the product structure, the level of difficulty in explaining products, and sales channels Investment management firm s support system for sales representatives (education and sales) Conformity with related laws and regulations Consideration might result in selecting a product offered by our business affiliated companies. Furthermore, MUTB applies criteria equivalent to the above-mentioned selection method to its operation and administration services for defined contribution pension funds (DC), clarifying the selection process for products proposed. At the time of sale We do not provide excessive incentives for handling products of our business affiliated companies in order to ensure that we propose to customers optimal products for their needs. In addition, in our performance evaluations of sales staff we do not give preference to sales of products of our business affiliated companies over those of non-business affiliated companies. Furthermore, the second line of defense, in order to maintain appropriate proposals activities for customers, undertakes periodic inspections to ensure that preference is not given to sales of products that generate high fees. 5.Sophistication of investment for the improvement of customers investment results (1) Sophistication of investment for the improvement of customers investment results [Product development and investment] MUTB seeks to fulfill its stewardship responsibilities 1 with respect to all investment instruments for the purpose of increasing not only returns from active investment but 4
index-based passive investment. MUTB has developed a disciplined process of Plan (investment planning) Do (investment execution) See (investment evaluation) for each product based on its investment philosophy, where professionals of their respective fields participate in each part of the process to ensure organizational investment and secure investment consistency. MUTB ensures the best executions with respect to assets entrusted for administration and investment based on its fiduciary responsibilities through monitoring conducted by both trust asset management and supervisory departments. (2) Ensuring independence and transparency in investment management [Product development and investment] Given the fact that MUTB has, in its organization, both trust asset management and corporate business departments, it secures independence of and transparency in its investment management business as an investment management institution with an adequate governance system established. In addition to thoroughly controlling conflicts of interest with the conventional Chinese Wall, MUTB will further increase the effectiveness of its stewardship activities as an investment management company. [Main contents] < Reinforcing governance and conflict-of-interest control as an investment management institution > Commencing the full-scale operation of Stewardship Committee an organizational body under the supervision of the Board of Directors with external, third-party figures comprising a majority of its membership which was newly set up in March 217 to check the adequacy and legitimacy of voting right exercises, engagement activities and investment actions in MUTB s trust asset management business in terms of securing and maximizing investors interest; To block the risk of any influence from corporate business departments on trust asset management departments in Trust Assets Business Unit, prohibiting personnel transfer of any individual to an asset management department who has, within the past 5 years, belonged to a sales department that has direct contacts with corporate customers; To prevent any influence from being exercised on voting right exercises or investment judgement and to block non-disclosure information etc., setting explicit rules (in principle, prohibiting direct contacts between an investment management department and another department that is not directly related in investment management business); and Reinforcing the monitoring of voting right exercise and other processes conducted by Trust Assets Business Unit as well as other divisions outside Trust Assets Business Unit to block any influence from other business units and to reinforce the effectiveness of information blocking system < Enhancing disclosure of voting right exercises > To improve transparency relating to stewardship activities as an investment management 5
institution through strengthening its governance, we disclose the pros and cons of proposals by agenda related to all the issues, among the Japanese equities that we manage, on which voting instructions are given based on the Voting Right Exercise Guideline, as well as the grounds for judgment in case of instructions for cons (instructions for pros in case of shareholder proposals) < Disclosing MUTB s policy for engagement activities undertaken in passive investment > Disclosing MUTB s policy for engagement activities in passive investment undertaken based on certain criteria (e.g., low ROE and market capitalization) < Enhancing self-assessment concerning stewardship activities of the investment management institution > Disclosing self-assessments of voting right exercises and engagement activities based on external, third-party reviews of their policies and results 6.Improvement of quality of comprehensive asset administration services to support customers asset management (1) Improvement of quality of comprehensive asset administration services to support customers asset management [Asset administration] Making it a principle to prioritize trust and confidence of customers, MUTB adequately and swiftly matches customers diverse needs not only in Japan but across the globe. MUTB proactively seeks to develop new areas of and new technologies for asset administration services and thereby to efficiently provide customers with the highest quality of comprehensive asset administration services. MUTB provides comprehensive asset administration services to match customers diverse and global investment needs, utilizing MUFG Group s overseas network as well as a variety of overseas custodians. (2) Providing a broad range of information about asset administration [Asset administration] MUTB researches and monitors relevant countries laws and regulations (including tax systems) relating to asset administration and provides customers with such market information in an extensive and timely manner including its impacts on customers to support their efficient asset management. 7.Provision of financial services leveraging the Group s consolidated strength MUTB strives to leverage the consolidated strength of Group companies including the Bank of Tokyo-Mitsubishi UFJ and Mitsubishi UFJ Morgan Stanley Securities to meet customers diverse needs-, and to make proposals based on the act of constantly confirming customers intentions to satisfy their changing needs. MUTB makes comprehensive proposals not only on investment products but on inheritance, succession and trading of real estate properties according to customers life cycles and needs. 6
8.Establishment of a structure enabling comfortable, secure and safe transactions MUTB seeks to improve customers convenience based on the notion of open innovation by proactively utilizing technologies and ideas that it acquires from Japan and other countries in cooperation with external companies and research institutions, including the introduction of new additional services and functions provided through digital channels. MUTB strives to further improve customers convenience as well as its proposals by utilizing tablet terminals and other devices for simplified procedure and accelerated responses. MUTB, day by day, improves the security of its online banking system to enable customers to complete transactions through the internet with a sense of security. [Asset administration] MUTB has introduced a globally-renowned state-of-the-art system and strives to provide comprehensive asset administration services utilizing cutting-edge technologies in various derivative transactions, mark to market valuations, provision of risk management information and on-demand information disclosure. 9.Exertion of professionalism [Product development and investment] MUTB fosters professional human resources by formulating and implementing capacity building programs for the purpose of strengthening investment capabilities to provide products and services that are truly chosen by customers, offering extensive training programs for various levels of expertise. MUTB has an articulated remuneration system in place for fund managers who are required to possess a high degree of expertise. MUTB seeks to strengthen its staff s knowledge and skills in relation to products and investment environment including providing them with training and encouraging them to obtain external specialized qualifications and thereby to enhance their expertise as professionals. Furthermore, it seeks to improve quality of its directors and employees by, in the case of those who visit individual customers, encouraging them to obtain financial planner (FP) and other external qualifications and to enhance their knowledge and skills relating to products and investment environment by providing them with diverse forms of training according to their experience and organizational positions. [Asset administration] MUTB seeks to provide comprehensive asset administration services that are truly chosen by customers by providing its directors and employees with opportunities and workplaces where they enhance their expertise and unleash their capabilities and by having each of them grow as a professional recognized in the market. 7
1. Stewardship responsibilities refers to the responsibilities of institutional investors to enhance the medium-to long-term investment return for their clients and beneficiaries (including ultimate beneficiaries) by improving and fostering the investee companies' corporate value and sustainable growth through constructive engagement, or purposeful dialogue, based on in-depth knowledge of the companies and their business environment. 8
Level-premium insurance Single Premium [Implementation status] MUTB will regularly disclose the degree of adoption of customer-oriented undertakings including its initiatives for further improvement of products and services while reviewing its initiatives as needed. 1. Initiatives for improvement of quality of officers and employees, and for customer-oriented information provision and consultation FP2-level qualification 1 acquisition rates among its staff remain high and are further increasing. MUTB thus strives to maintain and enhance their expertise continuously as professionals. MUTB strives to implement customer-oriented information provision and consultation based on increased customer contacts including holding approximately 8 to over 1,1 seminars for its customers. Fig.1 FP2-level qualification 1 acquisition rate Fig.2 Number of seminars held for customers 2 1% 95% 9% 85% 8% Sept Jan217 May217 Sept217 Management Sales Representative 1. FP2-level qualification: 2nd grade certification as Certified Skilled Worker of Financial Planning and/or AFP qualification 8 6 4 2 214 214 2. Aggregated number of seminars for customers held 217 Improve Product Lines Regardless of affiliated investment managers, MUTB strives to enhance its product lineup to meet diverse customer needs. Out of the 244 investment trust funds that MUTB deals with most recently (as at the end of September 217), 42 are no-load funds. Though the continuously low interest rates caused suspension of the sale of some life insurance products, MUTB continues to strive to maintain and enhance its product lineup to meet diverse customer needs. Fig.3 Investment trust fund lineup (End-Sept. 217) 3 Fig.4 Life insurance product lineup (End-Sept. 217) Category No. of products handled Ratio of products handled Japanese bonds 7 3% Japanese equity 38 16% Global bonds 77 32% Developed countries 47 19% High yield 12 5% Emerging markets 18 7% Global equity 41 17% Developed countries 31 13% Emerging markets 1 4% REIT 23 9% Balanced type 54 22% Others 4 2% Total 244 1% No-load products 42 17% 3. Investment trust funds sold over the counter (including funds sold only through online banking service), Open-end domestic investment trust funds (excluding foreign investment trust funds and unit-type money pool funds), and, among them, A currency selection-type fund is counted as one with its different classes combined 9 No. of products handled Ratio of products handled JPY denominated 7 47% Investment-type pension % Fixed annuity pension % Whole life 7 47% Nursing care and Medical % Non-JPY denominated 8 53% Total Investment-type pension 2 13% Fixed annuity pension 2 13% Whole life 4 27% Whole life Term Product type Product type Medical and cancer treatment Educational endowment Pension and endowment Nursing care Total Products for which handling fees are disclosed 4 No. of products handled 15 1% Ratio of products handled 2 4% % 1 2% % 1 2% 1 2% 5 1% 11 55% 4. Disclosure of fees for specified insurance policies started in Oct.
Improve Product Lines We strive to provide accurate information to enable customers to choose various products that suit their needs. Over the last five years, the sales ranking of investment trust funds has significantly changed. Regardless of affiliated investment managers, as a result of making proposals in accordance with customers needs, the amount of distribution of the products launched by affiliated investment managers is currently decreasing. We will continue our efforts to make proposals for the products suited to customers needs, regardless of whether such products are launched within or outside the group. Fig. 5 Top1 Investment Trust Funds5 in Distribution FY212 No Fund Name Category 6 Monthly dividend 1 Nissay J-REIT Fund (Monthly Settlement Type) Satellite 2 Mitsubishi UFJ Global Bond Open (Monthly Settlement Type) Satellite 3 Fidelity US High Yield Fund Satellite 4 Mitsubishi UFJ Emerging Bond Fund Currency Series (BRL) Satellite 5 MUAM PIMCO Emerging Bond Open B (JPY Hedged) Satellite 6 Tokio Marine Yen Denominated Investment Grade Bond Fund (Monthly Type) Core 7 Kokusai Emerging Sovereign Open (1M) Yen Hedged Satellite 8 Kokusai World REIT Open (1M) Satellite 9 Mitsubishi UFJ Emerging Bond Fund Currency Series (AUD) Satellite 1 UBS(JP)Global Convertible Bond Fund 212-9 (JPY hedged) Satellite FY217 No Fund Name Category 6 Monthly dividend 1 Fidelity US High Yield Fund Satellite 2 GS Emerging Local Currency Debt Fund Satellite 3 Australian Dollar Monthly Income Fund Satellite 4 Nissay Australia High Income Equity Fund (Monthly Settlement Type) Satellite 5 Kokusai World REIT Open (1M) Satellite 6 JPM Best Income (Monthly Distribution) Core 7 LM US Dollar Monthly Income Type Fund Satellite 8 Mitsubishi UFJ Index 225 Open Satellite 9 Nissay J-REIT Fund (Monthly Settlement Type) Satellite 1 Mitsubishi UFJ Global Bond Open (Monthly Settlement Type) Satellite 5. Sum of investment trust funds distributed over the counter (including the funds distributed only through online banking service) 6. Core products refer to those positioned as the core of stable asset management, such as balanced-type fund. Satellite products denote those focusing more on profitability, such as active-type fund. Category of products, i.e. Core of Satellite, is based on our own criteria. Fig. 6 Ratio of the amount of distribution of products launched by affiliated investment managers 5 9% 7% 5% 3% 217 1
Implementing customer-oriented provision of information and consultation We are increasing the number of less-frequent settlement-type products (i.e. annual or semi-annual settlement) in addition to monthly dividend-type products in order to respond to various needs of customers. Moreover, we will make efforts to provide customers with information by creating materials where the difference between a monthly dividend-type product and a less-frequent settlement-type product is explained in an easy-to-understand manner. As a result of careful and timely provision of information on changes in market trends, and attributable to an increase in customers that sold funds in response to a current rise in the market price, the average holding period of investment trust funds has shortened. Furthermore, one of the factors behind the shortened average holding period concerns the fact that there are a number of transactions with the retiree customers with thick asset background and considerable experience of investment. The number of customers and deposit balance of wrap accounts are increasing every fiscal year, thanks to solid distribution of wrap accounts that are effective in medium- to long-term investment as well as in diversified investment. Fig. 7 Amount of distribution of monthly dividend type prroducts (JPY, mil.) out of investment trust funds 5 and comparison with other funds 3, 1% 2, 1, 5% 217 Monthly Dividend Type Other than Monthly Dividend Type Ratio of Distribution of Monthly Dividend Type Fig. 8 Ratio of dividend amount out of balance of investment trust funds 7 4.6% 4.4% 4.2% 4.% 217 Fig. 9 Average period of holding investemnt trustfunds (per annum) 8 7. Dividend amount was calculated by totalling the receipt of diviends and re-investments 8. Average holding period is the result of dividing the average balance of invesment trust funds held by the cumulative total of cancellation/redemption amount (for the past one year, respectively) Fig.1 The number of wrap account holders and the balance 9 5. 4. 3. 2. 1.. % 217 (JPY, mil.) Wrap account balance Number of wrap account holders 2,5 2, 1,5 1, 5 (No. of people) 25, 2, 15, 1, 5, 214 217 9. Wrap accounts include managed accounts (Private Accounts and etc.) and Mitsubishi UFJ Fund Wrap Accounts. 11
Customer satisfaction Ensure customer-oriented approach (based on evaluation by customers); To confirm the adoption of customer-oriented undertakings, MUTB regularly conducts customer satisfaction surveys to directly obtain customer feedback, which indicates a high level of satisfaction on a comprehensive basis. MUTB nevertheless seeks to further improve customer satisfaction and thereby to continue to meet customer expectation. The number of cases where improvement was made based on customer feedback is steadily increasing every year on a cumulative basis. Fig.11 Satisfaction survey 1 Fig.12 Degree of emphasis on and satisfaction in aspects of person-in-charge s customer services 1 1% 8% 1% 6% 4% 2% FY213 FY214 FY FY Comprehensive satisfaction 9% 8% Employee appearance Employee attitude of politeness toward customers Accuracy in clerical procedures Fig.13 Number of cases of improvement based on customer feedback 11 24 12 7% Prompt response to customers inquires Employee approachability 16 8 FY213 FY214 FY FY Number of complaints resolved Total amount of complaints resolved Number of complaints (Right axis) 8 4 5% 5% 6% 7% 8% 9% 1% 1. [Fig. 11 and 12] Survey outline and subject customers: Randomly selected individual customers (Questionnaires postal-mailed to approx. 4, customers and responded by approx. 1,6). / Comprehensive satisfaction: The ratio of responses indicating satisfactory or fairly satisfactory on a comprehensive basis regarding various transactions with MUTB. / Degree of satisfaction in aspects of person-in-charge s customer services: The ratio of responses indicating satisfactory or fairly satisfactory with respect to each question; /Degree of emphasis on aspects of person-in-charge s customer services: The ratio of responses indicating Highly emphasis or emphasis with respect to each question; 11. [Fig. 13] Number of complaints: Indexed with FY213 s value as 1 6% Understanding customers' requests Waiting time at branches /frequency of visit Knowledge and Ability to make proposals Importance to Customers Clear information and explanation 12
Ensure customer-oriented approach (Track records) Some customers sell their assets to lock in profits in the rising phase of the markets while investment product balance increase when customers newly purchase investment products or make additional purchases in the declining phase of the market, as reflected to the total balance and number of investment products holders remaining roughly flat. Additionally, MUTB is implementing to propose plural products for customer needs by utilizing unique capabilities as a trust bank. Fig.14 Changes in investment product balance and the number of investment products holders 12 (1Billion yen) Investment product balance 35. 3. 25. 2. 15. 1. 5.. June 214 Sept. 214 Dec. 214 Mar. June Sept. Dec. (thousand people) Number of investment products holders 45 Mar. June Sept. Dec. Mar. 217 June 217 Sept. 217 4 35 3 25 2 Nikkei225 Index (Closing Price) 15,162 16,174 17,451 19,27 2,236 19,114 17,388 19,34 2,33 2,356 16,759 15,576 16,45 18,99 12. Actual transactions with individual customers; on a managerial accounting basis Investment product balance; Calculated by total balance of all of investment products Number of investment products holders; Counted by a customer name (a customer who has two or more investment products is counted as one) 13
2. [Product development and investment] [Asset administration] Enhancement of stewardship activities As part of its stewardship activities, MUTB strives to continue engagement with companies that it invests into. Furthermore, MUTB set up a Stewardship Committee on March 1, 217 with external, third-party figures comprising a majority of its membership, thereby establishing a framework to check the adequacy and legitimacy of its engagement activities in terms of securing and maximizing investors interest. MUTB will continue to enhance its stewardship activities for maximizing investors interest based on the Stewardship Committee s verification from external, third-party perspectives. Fig.1 The number of investment management departments dialogues (engagements) with companies 1 1,6 1,4 1,2 1, 8 6 4 2 214 217 1. The number of individual meetings and other direct dialogues with companies Evaluation by customers In the area of product development and investment, MUTB checks the degree of adoption of customer-oriented undertakings based on results of surveys conducted by external rating agencies that reflect feedback from institutional investors, MUTB s customers. It seeks to further improve it and thereby to continue to meet customer expectation. Fig.2 Pension Customer Satisfaction Survey by R&I 2 Aggregated results (Comprehensive satisfaction) Fig.3 Number of funds that received R&I Fund Awards 4 (From 214 to present) Comprehensive satisfaction 2 FY217 3.64 FY 3.58 FY 3.7 Overall ranking (Population 3 ) 2 nd (16 companies) 5 th (14 companies) 1 st (14 companies) Number of award funds FY217 3 FY 1 FY FY214 3.57 6 th (15 companies) 14 FY214 2. Average point of customer s satisfaction. (5 points in full marks) 3. Asset management companies which received answers from more than 5 customers. 4. The R&I Fund Award is presented to provide reference information based on the past data R&I or QUICK Corp. (QUICK) believes to be reliable (however, its accuracy and completeness are not guaranteed by R&I or QUICK) and is not intended to recommend the purchase, sale or holding of particular products or guarantee their future performance. The Award is not the Credit Rating Business, but one of the Other Lines of Business (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. Intellectual property rights including copyright and all other rights in this Award are the sole property of R&I or QUICK, and any unauthorized copying, reproduction and so forth are prohibited. The Award for the "Investment Trusts/Aggregate" category is based on the average performance of the relevant funds of a fund manager, and does not indicate the excellent performance of all individual funds of the manager.
Investment education initiatives In September MUTB set up an Investment Education Office within its Trust Assets Business Division, a specialized organizational unit for conducting investment education and awareness raising activities, that is hosting seminars for customers and implementing other relevant activities. In order to further enhance such activities, in October 217, we merged Investment Education Office and relevant organizations, thereby newly establishing Asset Building Advisory Division. Furthermore, MUTB conducts online awareness raising activities on its website, Investment Education Web, where 62 contents are currently available (as at the end of September 217). MUTB continues to strive to further enhance education programs based on customer Fig.4 Number of contents and brief description of main contents of Investment Education Web Fig.5 Number of investment education seminars hosted by Investment Education Office Number of contents brief description of main contents 2,5 (At start-up) 3 Short movie about the alphabet of financial planning Simulation tool 9 3 minutes movie Column 21 Comics to understand financial planning 2, 1,5 1, 39 Contents in relation to ideco The alphabet of financial planning 217 69 Comics to understand ideco Shintaku Quest 5 217 Enhancing expertise MUTB is striving to maintain and enhance expertise among its staff by having them obtain securities analyst, pension fund actuary and other relevant qualifications and thereby to continue to further improve its skills as an investment manager. Fig.6 Securities analyst qualification holders number and qualification acquisition rates among staff in investment departments 1,25 1, 75 5 25 217 Securities analyst qualification holders number 7% 6% 5% 4% Fig.7 Number of pension fund actuary qualification holders (Unit: Person) 65 6 55 5 45 4 217 Qualification acquisition rates among staff in investment departments 15
Track records reflecting confidence Assets under management are increasing due to market fluctuations and other factors. Investment balance for defined contribution pension fund (DC) products continues to increase, supported by tax reform and the increasing shift from savings to asset building. Asset administration balance is roughly leveling off. Fig.8 Asset administration balance 5 /Assets under management(trillion Yen) 6 4 6 Fig.9 Assets under management for DC (JPY, mil.) 7 12, 3 2 45 3 1, 8, 6, 4, 2, 214 214 Assets under management Asset administration balance(right axis) 217 5. Including assets under management of pension funds, investment trust funds, and other trust funds, as well as assets under custody and administration. 6. AuM as MUTB (Other group asset management companies are not included) 214 214 217 7. DC products distributed as MUFG (excluding fixed deposits) 16