Policies on Customer-Oriented Business Conduct
Mitsui Fudosan Accommodations Fund Management Co., Ltd. (the Company) stipulates the following policies given the Financial Services Agency's announcement of Principles for Customer-Oriented Business Conduct on March 30, 2017.
1．Development and Publication of Policies on Customer-Oriented Business Conduct
The Company shall develop and publish policies for realizing business conduct oriented for Nippon Accommodations Fund (NAF) and unitholders (collectively referred to as Customers) and periodically disclose the implementation status.
2．Pursuit of Customers' Best Interests
The Company shall maintain highly qualified expertise and professional ethics and treat NAF faithfully and fairly in pursuit of Customers' best interests. In addition, the Company shall make efforts to ensure such business conduct becomes established as a corporate culture.
3．Appropriate Management of Conflicts of Interest
The Company shall accurately identify the possibility of conflicts of interest arising with Customers and appropriately manage them in the possible event of such, in line with laws, regulations, internal rules and such.
4．Clarification of Fees and Expenses
The Company shall provide information in a manner understandable by Customers on the details of management fees that NAF pays to the Company to which asset management is entrusted, as well as what services correspond to each of such fees.
5．Easily Understandable Provision of Important Information
The Company shall disclose information according to laws and regulations from the viewpoint of ensuring transparency. In addition, the Company shall disclose information that the Company deems necessary and appropriate for unitholders' judgment in a timely and easy-to-understand manner.
6．Provision of Services Suited to Customers
The Company shall strive to understand the opinions and needs of unitholders through IR activities. Furthermore, the Company shall implement asset management with an aim to secure stable long-term earnings primarily through investment in high-quality rental apartments while paying attention to needs, etc.
7．Framework for Motivating Employees Appropriately and Other Measures
The Company shall develop a framework for motivating employees appropriately and an appropriate governance system to thoroughly promote actions for pursuing Customers' best interests and the appropriate management of conflicts of interest.
1．Pursuit of Customers' Best Interests
By way of sophisticated, specialized asset management, the Company seeks improvement of unitholder value on a mid- to long-term basis, i.e., the stable growth of DPU (distributions per unit) on a mid- to long-term basis as well as an increase of NAV (net asset value) per unit.
2．Appropriate Management of Conflicts of Interest
The Company uses the value chain of the Mitsui Fudosan Group for asset management. On the other hand, there is concern that conflicts of interest may arise between customers and the Company and its related parties. Therefore, in addition to complying with laws and regulations, in order to prevent transactions that are not fair and impartial, the Company has established internal rules and an organizational structure.
3．Clarification of Fees and Expenses
The Company displays clearly the system of management fees it receives from NAF and discloses the amount of management fees paid each fiscal period.
4． Easily Understandable Provision of Important Information
In addition to disclosing information in accordance with laws and regulations from the viewpoint of ensuring transparency, the Company discloses in a timely and easy-to-understand manner the following information deemed necessary and appropriate for unitholder's investment decisions.
≫ Conduct briefing sessions for analysts and institutional investors
≫ Content posting for individual unitholders on NAF's website
5．Provision of Services Suited to Customers
While conscious of the opinions and needs of unitholders understood through IR activities such as those listed below, the Company implements asset management with the goal of securing long-term and stable earnings primarily through investment in high-quality rental apartments.
≫ Implementation of IR meetings for institutional investors both in Japan and overseas
≫ Implementation of briefing sessions for individual unitholders
≫ Participation in seminars for individual unitholders organized by industry organizations
6．Framework for Motivating Employees Appropriately and Other Measures
The Company focuses on nurturing its professional personnel to implement high-quality fund management
on an ongoing basis. Employees are encouraged to acquire various certifications so that their
expertise can be improved as professional personnel. Specifically, employees are given support in
their training and examinations for acquiring and maintaining expert qualifications and are assisted
in obtaining a wide range of knowledge and skills that are required for their work.
Through the implementation of training on compliance, ESG and such on an ongoing basis, the Company aims to spread awareness of its Customer-oriented business conduct among its employees.
The Company will also evaluate compliance in the performance rating of employees.