1. Mission of Nikko Asset Management

The mission of Nikko Asset Management (hereinafter referred to as "Nikko AM") is to strive for medium- to long-term growth of the funds that investors entrust Nikko AM to manage. Furthermore, with a growing awareness of the necessity of shareholder-oriented business management, Nikko AM believes that by participating in the corporate governance of an "invested company" (a company in which we invest) through the exercise of its voting rights as the representative of the investors, Nikko AM will contribute to the growth of the investors profit, from a long-term perspective.

2. Basis of corporate governance

In a joint-stock corporation, the shareholders, who are its investors, do not directly engage in the management of the business. Accordingly, the abuse of authority by corporate managers, infringement of shareholder interests, and similar problems inevitably arise. To resolve problems such as these, Nikko AM believes that it is important to establish good cooperative relationships with stakeholders other than shareholders, including consumers, creditors, employees, business clients, and people in the community where the business is located, and to direct the company's decision-making mechanism, corporate management methods, and administrative body monitoring and supervision methods in a direction that respects the interests of shareholders. Nikko AM advocates the appointment of outside directors as leaders in the protection of shareholder interests in areas such as company decision-making, corporate management, and administrative body monitoring and supervision. Also, Nikko AM expects invested companies to be responsible for satisfactorily disclosing business information and being accountable to shareholders and other related parties.

3. Exercise of voting rights

Exercising one's right to vote in an invested company is an important means to increase the value of the company and prevent tarnishing the company's value. Nikko AM is aware that it is expected to exercise its right to vote appropriately in order to fulfill its assigned fiduciary responsibility as well. Nikko AM exercises its voting rights solely for the benefit of the investor (namely, the Beneficiary of an investment trust or Customer of an investment advisory contract) from an independent standpoint. Nikko AM does not vote for the benefit of itself or third parties other than the investors. Nikko AM has established "principles of corporate governance" by which a company should abide. By exercising its right to vote in invested companies in accordance with those principles, Nikko AM seeks to have such companies operate in a manner that gives the utmost consideration to its shareholders' interests over the long term.

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