Principles for Customer-Oriented Business Conduct
Formulation and Announcement of our Principles of Fiduciary Duty
As a member of the Kenedix Group, our company will, in line with the following Mission Statement and the Corporate Mission formulated by Kenedix Inc., endeavor to maximize the profits of our customers through adaptable and prompt investment management, after careful consideration as an independent asset management company.
Kenedix is dedicated to realizing the full potential of real estate.
(1) Business Objective: “For What?”
We contribute to society by making the best use of investment capital and creating value from real estate.
(2) Business Field: “For Whom?”
We offer the best investment opportunities to our clients by committing to multiple roles globally as a real estate asset manager.
(3) Business Principle: “How?”
We confront new business challenges through our management speed and flexibility while emphasizing stability and fairness.
We also actively discuss and promote our commitment to sustainability and ESG (Environment, Society and Governance) management.
Pursuit of Best Interests of Customers
1. Our company will, concurrently with our close observation of real estate investment and management environment, always seek to pursue the best interests of our customers and to implement the necessary measures with speed and adaptability. On the basis of this overarching principle, we have established the specific policies set forth in Principle 3 through Principle 7 below. Through implementations of such policies, we will realize the concept of the phrase in our corporate logo, “PARTNERS IN GROWTH”.
2. We will manage the portfolio of the investment corporations that have entrusted the management of their assets to our company with an emphasis on the realization of stable and long-term dividends, based on the investment policies of such investment corporations as stipulated in their respective articles of incorporation.
3. As regulatory compliance is closely connected with our pursuit of the best interests of our customers, strict compliance constitutes one of the most important subjects for the management of our company and guides the conduct of our day-to-day operations.
Appropriate Management of Conflicts of Interests
1. Investment corporations that entrust their asset management functions to our company may engage in the trading of investment properties with Kenedix Inc. or with the funds that entrust their asset management function to Kenedix Inc.
When transactions are entered into between an investment corporation and a related party, such as transactions through the support of our sponsor (referred to above), our Compliance Officer, with a view to preventing unreasonable damage to the interests of our customers, will conduct an inspection to determine whether such transactions give rise to any issue under our internal rules on related party transactions. Thereafter our Compliance Committee (which includes outside independent members) will consider the appropriateness of the transactions. Passing the inspection by the Compliance Officer and obtaining approval of such transactions by the Compliance Committee are among the conditions to be met in executing the relevant transactional agreements.
2. As we have been entrusted with the asset management functions of more than one investment corporations, we follow the rule of “Priority of Consideration”, according to which priority will be granted to investment properties based on type or scale, in order to prevent conflicts of interests that result from conflicts between investment opportunities sought by investment corporations.
Clarification of Fees
1. We provide clear information on the types of fees concerning listed investment corporations and how such fees are calculated in the annual securities reports and asset management reports, etc. of the respective investment corporations.
2. We provide clear information on the types of fees concerning private investment corporations in the relevant private placement memorandums and asset management reports, etc.
Straightforward Disclosure of Important Information
In addition to our disclosure of the information required by the rules of the Tokyo Stock Exchange and other laws and regulations, we voluntarily disclose information that we consider helpful for the investment decisions of our customers.
Each investment corporation discloses information on its website in a way that is readily accessible for our customers.
Besides disclosing information through press releases, etc., listed investment corporations also upload video streams that provide briefings on their financial results.
Providing Applicable Services to Customers
We improve our ability to meet the needs of our customers, and help our customers to gain a deeper understanding of our management policy, by engaging our customers in wide-ranging and productive interactions that are not restricted to unilateral communication from an asset manager to customers. Furthermore, it is our goal, through the prompt and flexible improvement of our management as necessary, to maintain sustained growth and a stable investment management that would contribute to the long-term profits of our customers.
Programs to Encourage Compliance by our Employees
Through establishment of an annual compliance program and the continued conduct of regular compliance training for all of our employees and officers, we endeavor to ensure adherence to regulatory compliance and to maintain and improve our governance system as an asset management company. By carrying out these measures, we continue to promote the policies expressed in Principle 2 through Principle 6 above.