Investment Principles against Cluster Munitions Producers

Formulated: June 20, 2011
Daiwa Asset Management Co.Ltd.

The Japanese government ratified the Convention on Cluster Munitions (Oslo Declaration), which takes effect on August 1, 2010.
As an asset management company in the country ratifying the convention, on July 30,2010, Daiwa Asset Management Co. Ltd. (hereinafter referred to as "Daiwa Asset Management") established the basic principles for investments in, and other actions against, cluster munitions producers, and would like to announce the basic principles as follows;

Daiwa Asset Management shall act based on the following basic principles regarding investments in and other actions against cluster munitions producers in investment trust funds which Daiwa Asset Management has the authority to manage.

Daiwa Asset Management shall not invest in securities issued by cluster munitions producers in active funds. In cases where the active funds hold such securities, Daiwa Asset Management shall immediately sell the securities.

In cases where withdrawal from, or contraction of, the business for producing cluster munitions is proposed at shareholders' meetings of cluster munitions producers, Daiwa Asset Management shall agree with such shareholders' proposals.

As for index funds, however, we manage funds for such clients that seek the closest performance to targeted indices. To provide the best performance to such clients, we have to invest in any stock included in the targeted index based on the fiduciary duty of royalty. We have one such index fund, and it tracks the “MSCI KOKUSAI Index”.

(Note) “MSCI KOKUSAI Index” is an equity index developed by MSCI Inc., which is the synthesized index of market-value-weighted major equity market indices in the world, excluding those of Japan.

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