Sustainability

Daiwa Asset Management Co.Ltd., promote
sustainability-oriented management to realize the
sustainability of society and the enhancement of our own corporate value.

Sustainability report

In our Sustainability Report, we introduce our efforts in sustainability management as an operating company, as well as our stewardship activities as an institutional investor.

      ■Previous report

      Sustainability Policy

      ■Basic approach

      Daiwa AM's social mission is to contribute toward enabling people to live fulfilling lives and toward realizing a sustainable society through its asset management business.

      To this end, the company fulfilling its fiduciary duty and strives to provide high-quality returns and services over the long term. Daiwa AM believes that, in order to be able to continue doing this over an extended period while responding to changing times, it is vitally important to manage the company with an emphasis on sustainability.

      Socioeconomic activity requires a sustainable social foundation in order to continue, and so Daiwa AM positions the realization of this sustainability as a precondition for its business operations. At the same time, as a company engaged in the asset management business, Daiwa AM is constantly aware of the magnitude of its responsibility in relation to the continued development of the capital markets, and needs to fulfill its duty in this regard. This is why the company is implementing initiatives, through its business activities, to address the important issues affecting the maintenance of society's sustainability, and to earn the trust of its stakeholders, with the aim of further enhancing Daiwa AM's corporate value.

      ■Action guidelines

      1. As an asset management company, Daiwa AM recognizes the importance of its role in promoting a virtuous cycle in the economy. Through its business activities, Daiwa AM will support business enterprises that contribute toward the maintenance and enhancement of the sustainability of the global environment and of society, while also fulfilling its fiduciary duty.
      2. Daiwa Am will aim to be a "best partner" for all of its stakeholders.
      3. By implementing healthy, transparent management, Daiwa AM will strive to enhance its corporate value in a sustainable manner.
      4. Daiwa AM will clarify its materiality (key issues) that the company should prioritize, and will adjust this periodically.
      5. Based on the above guidelines, Daiwa AM will draw up specific policies for promoting sustainability-aware management and will put them into effect

      Established on September 28, 2022

      Materiality Relating to
      Business Activities

      Materiality Relating to
      the Company's Business Foundations

      Promotion system

      In November 2021, we established the 'Sustainability Committee' as a subcommittee of the Executive Management Committee to deliberate on policies, measures, and initiatives related to sustainability.

      Environmental Policy

      ■Basic approach

      The need to safeguard the global environment which underpins our daily lives is an issue affecting the whole planet, and protecting the environment has a vital role to play in realizing a sustainable society.
      In order that our irreplaceable global environment can be handed down intact to future generations, we are working to address the world's environmental problems through our asset management business, which is our core business.

      ■Basic policy

      1. Environmental initiatives

        • Through our business activities, we will provide support for companies that are working to address the problems affecting the global environment, and companies that are contributing toward safeguarding the global environment.
        • We will strive to develop and provide financial products and services that will contribute toward addressing the problems affecting the global environment and toward safeguarding the global environment.
        • We will work to mitigate environmental impacts by promoting resource conservation, energy-saving, and the "3Rs."
          Note: "3Rs": Reduce (waste), Reuse, and Recycle
        • We will strive to purchase environmentally-friendly products and services from suppliers who are concerned about the environment.

      2. Stakeholder engagement

        We will work to address the problems affecting the global environment by emphasizing dialogue with stakeholders.

      3. Mindset cultivation

        We will strive to strengthen the awareness that each of our company officers and employees has of the problems affecting the global environment by conducting awareness-raising activities, etc.

      4. Compliance with related laws and regulations, etc.

        We will strive to help safeguard the global environment by complying with environment-related laws and regulations, as well as with the Daiwa Securities Group's Basic Environmental Policies, etc.

      5. Scope of application

        This policy applies to all Daiwa AM company officers and employees.

      Established on September 28, 2022

      Human Rights Policy

      ■Basic approach

      The Daiwa Securities Group's Corporate Principles states that "the Group will strive to maintain a high sense of morality and duty, endeavoring to continue contributing to the sustainable growth of the societies in which we operate." Daiwa AM's Action Guidelines also stipulate that we will work to "Enhance Global Sustainability."
      We believe that respect for human rights is vitally important in order to realize a sustainable society in which no one is left behind.
      Daiwa AM will continue promoting initiatives that embody respect for human rights, with the aim of further strengthening our corporate culture, in which respect for human rights is a core philosophy.

      ■Basic policy

      1. Initiatives embodying respect for human rights

        • Valuing the human rights of all stakeholders, we will not allow discrimination on any grounds, including ethnicity, nationality, background, religion, political opinions, gender, sexual orientation, gender self-identification, social identity, physical characteristics, disability, etc., and we will not allow harassment, including sexual harassment or workplace bullying, etc., in any aspect of our operations.
        • We will not allow child labor, forced labor, or any other improper form of labor.
        • We will respect fundamental labor rights, including freedom of association, and workers' right to organize and right to engage in collective bargaining.
        • We will provide support for employees to realize work-life balance, by building a workplace environment in which people can work healthily (both physically and mentally), safely, and with peace of mind.
        • We will build an environment which respects diversity and in which employees can fulfill their potential while developing their individual capabilities to the maximum.

      2. Compliance with laws and international standards, etc.

        We will support and respect the following laws and international standards relating to human rights:

        • The International Bill of Human Rights
        • The UN Guiding Principles on Business and Human Rights
        • The International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work
        • The OECD's Guidelines for Multinational Enterprises
        • ISO26000
        • Japan's National Action Plan on Business and Human Rights
        • Laws relating to human rights education and promotion of human rights awareness

        We also respect the laws etc. of each country and region where we conduct business activities. In the event of there being any conflict between internationally recognized human rights and the laws etc. of a given country or region, we strive to find an approach that embodies the maximum possible respect for internationally recognized human rights.

      3. Implementation of human rights due diligence

        We will build a framework for human rights due diligence, and we will strive to prevent or mitigate negative impacts on human rights.

      4. Prevention and mitigation of negative impacts

        If we become aware that any of Daiwa AM's business activities have had a negative impact on human rights, or have contributed to such negative impacts, we will take steps to prevent or mitigate the negative impact.
        Furthermore, if any of Daiwa AM's business, products, or services are directly linked to any negative impact on human rights, we will seek to influence the related party that caused or contributed to the negative impact on human rights and will strive to ensure that the negative impact is prevented or mitigated.

      5. Stakeholder engagement

        We will work to strengthen respect for human rights by emphasizing dialog with stakeholders.

      6. Education and training

        We will implement appropriate education and training for all company officers and employees so that this policy is fully understood and effectively implemented.

      7. Scope of application

        This policy applies to all company officers and employees.
        We anticipate that stakeholders in our company's value chain will also support this policy, and we hope that they will collaborate with us in respecting human rights.

      Revised on February 13, 2024
      Established on September 28, 2022

      /4

      Materiality Relating to Business Activities

      • Key area

        Thorough fulfillment of the company's fiduciary duty (FD)

        Grounds for deeming it important

        Daiwa AM believes that, as a company engaged in the asset management business, the thorough implementation of its fiduciary duty and the maximization of its customers' interests constitute the foundation of its business and are its social mission.

        Daiwa AM's initiatives

        【Ongoing initiatives】

        • Daiwa AM provides ongoing training to instill awareness of the importance of fiduciary duty, or "business operations that put the customer's interests first," throughout the company.

        【Key initiatives】

        • In order to provide products that are in customers' best interests, Daiwa AM will examine performance from a long-term perspective, and will implement systematic quality management after product formation (enhancing the effectiveness of product governance).

      • Key area

        Promotion of stewardship activities and responsible investment

        Grounds for deeming it important

        Daiwa AM believes that, by promoting responsible investment and incorporating investee company's environmental, social and governance (ESG) factors into corporate evaluations, it is possible to accurately determine the medium- to long-term risks and opportunities of the investee company.
        Daiwa AM also believes that it can fulfill its social responsibility as an asset management company by contributing toward enhancing the value of enterprises, etc., and toward sustained growth through stewardship activities.
        Daiwa AM believes that, since stewardship activities and responsible investment form part of the company's fiduciary duty, and will also improve fund performance, they ultimately contribute toward the maintenance and enhancement of the customer's interest.

        Daiwa AM's initiatives

        【Ongoing initiatives】

        • Since signing up to the Principles for Responsible Investment (PRI) in May 2006, Daiwa AM has consistently implemented responsible investment.
        • The company has formulated an ESG Investment Policy, and it positions investee companies' ESG-related initiatives as contributing both to the expansion of medium- and long-term growth potential and to risk reduction, and references these initiatives when making investment decisions.

        【Key initiatives】

        • In the areas of stewardship activities and responsible investment, Daiwa AM will be promoting initiatives that embody the company's unique characteristics.
        • Daiwa AM will also be undertaking ongoing cultivation of specialist ESG talent.

      • Key area

        Service quality enhancement contributing to asset formation

        Grounds for deeming it important

        Daiwa AM believes that initiatives to encourage a wider range of people to undertake investment, and the development and provision of products tailored to investors' needs, are vitally important for the company's sustained growth.
        Daiwa AM also believes that enhancing management quality is very important in terms of securing stakeholders' trust.

        Daiwa AM's initiatives

        【Ongoing initiatives】

        • With the aim of enhancing the company's organizational management capability, besides making use of advisors with an academic background, Daiwa AM has also been implementing measures for the visualization and sharing of the investment strategies and actions adopted by personnel responsible for asset management operations.
        • Daiwa AM is also providing support for asset formation for a wide variety of customers, with the provision of wide-ranging content relating to asset formation, from the basics upwards.

        【Key initiatives】

        • Daiwa AM will be putting in place a system for the speedy provision of financial products tailored to the changes in society and to customer needs.
        • Daiwa AM will be making a contribution toward the development of financial and economic education programs in schools, and will be contributing to the enhancement of financial literacy in society as a whole.

      • Key area

        Expansion of business fields

        Grounds for deeming it important

        Daiwa AM believes that the exploration of new business areas (with the fulfillment of the company's fiduciary duty as a precondition) will lead to stable asset formation for customers and is vital for the company's sustained growth.

        Daiwa AM's initiatives

        【Ongoing initiatives】

        • Daiwa AM has established a dedicated ETF affiliate company, and is proceeding with collaboration in this area.
        • Daiwa AM has also been undertaking the development of products that incorporate non-traditional assets.

        【Key initiatives】

        • Daiwa AM will be aiming to expand its business areas through the effective utilization of its investment management know-how.

      /4

      Materiality Relating to the Company's Business Foundations

      • Key area

        Winning stakeholders' trust

        Grounds for deeming it important

        Daiwa AM believes that winning stakeholders' trust is the foundation for the company's continued existence as a sustainable enterprise.

        Daiwa AM's initiatives

        【Ongoing initiatives】

        • Daiwa AM's action guidelines emphasize the need to "Have Integrity" and "Imagine Yourself in Their Place," and the company has striven to build trust.

        【Key initiatives】

        • Daiwa AM will be expanding its disclosure, and striving to monitor society's views and needs.

      • Key area

        Enhancing employee wellbeing

        Grounds for deeming it important

        Daiwa AM believes that human capital is the wellspring of the company's corporate value, and that if the wellbeing of Daiwa AM employees is not enhanced, then the company will not be able to realize sustainable growth.

        Daiwa AM's initiatives

        【Ongoing initiatives】

        • Daiwa AM has been putting in place an evaluation and compensation system tailored to human talent with high levels of specialist expertise, and has been implementing career support training, etc.
        • The company has been providing support for flexible workstyles with the adoption of a shortened working hours system and a flextime system.
        • Daiwa AM has striven to monitor employees' health status through the implementation of periodic stress checks, etc.

        【Key initiatives】

        • Daiwa AM will be building a working environment that enables employees to continue fulfilling their potential through measures such as the adoption of strategies to enhance motivation, which in turn will lead to improved employee engagement.
        • The company will also be introducing a framework that facilitates exchange across departments and roles, thereby invigorating intra-organizational communication.

      • Key area

        Respect for human rights and diversity

        Grounds for deeming it important

        Daiwa AM believes that it is important to respect the human rights of stakeholders through-out the value chain, and that encouraging the participation and dynamic engagement of diverse human talent is important for the company's continued growth.

        Daiwa AM's initiatives

        【Ongoing initiatives】

        • Daiwa AM has been implementing periodic human rights training on an ongoing basis, and has been working to cultivate a corporate mindset that fosters the dynamic engagement of diverse human talent.
        • The company has formulated an action plan for the dynamic engagement of female employees, and is implementing this plan.
        • The company is also introducing a system to create a working environment that is more user-friendly for employees with disabilities, striving to help them fulfill their potential while taking into account the various issues that affect them, so that they can play a more active role in the company.

        【Key initiatives】

        • Daiwa AM will be strengthening its system for the promotion of diversity, equity and inclusion, and will be building a workplace environment that is equitable and free from discrimination, so that diverse human talent can fulfill their potential.
        • The company has established a Diversity & Inclusion Promotion Committee, chaired by the President, and a dedicated organization is directing the promotion of related activities throughout the company.
        • The company will be also implementing human rights due diligence measures with respect to stakeholders in the value chain, and is contributing toward the realization of a society in which no one is left behind.

      • Key area

        Strengthening corporate governance

        Grounds for deeming it important

        Daiwa AM believes that the maintenance and strengthening of a sound, solid corporate governance system will help to secure the trust of stakeholders and enable the company to increase its corporate value and realize sustained growth.

        Daiwa AM's initiatives

        【Ongoing initiatives】

        • Daiwa AM has structured its Board of Directors so that it includes three Outside Directors, with the aim of realizing a higher level of corporate governance.
        • With the inclusion of Outside Directors in meetings, the company has built a governance structure that functions in such a way as to control conflicts of interest in relation to fund management and stewardship activities.
        • Daiwa AM also strives to cultivate high ethical standards and compliance awareness through periodic compliance training.

        【Key initiatives】

        • Daiwa AM will be striving to strengthen the effectiveness of the Board of Directors and the oversight function.

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      The information on this website is provided by Daiwa Asset Management Co. Ltd. in order to introduce the Company and to provide general information on investment trusts and investment in general. The contents are not, and should not be construed as, an offer or the solicitation of an offer to buy or sell any securities or financial products. Daiwa Asset Management accepts no liability whatsoever for any direct or consequential loss arising from any use of such content.

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      Legal Disclaimer Statement

      You must read the following information before proceeding, and please click on the "I confirm that I have read the Legal Disclaimer Statement" link at the bottom of the page to continue.

      ①Important Notice

      This website aims at providing certain information in relation to a Luxembourg Undertakings for Collective Investment in Transferable Securities ("UCITS") managed by Daiwa Asset Management (Singapore) Ltd. ("Daiwa AM Singapore"). The creation, hosting, maintenance and update of this website has been outsourced by Daiwa Global Funds to Daiwa Asset Management Co. Ltd. ("Daiwa AM Tokyo") which has issued and approved the information contained therein. The UCITS products referred to on this website are not distributed by Daiwa AM Tokyo.

      The content of this website is dedicated to inform existing investors in the UCITS and is not, and shall not be construed as, an offer or the solicitation of an offer to buy, sell, or distribute the shares UCITS or any securities or financial products in the jurisdictions from which this website is accessed or any other jurisdiction. Also, nothing in this website constitutes accounting, legal, regulatory, tax or other advice in relation to the UCITS or any other securities or financial products Investors should seek independent accounting, legal, regulatory, tax or other advices based on their personal, financial situation and objectives.

      ②INTENDED AUDIENCE

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      This website provides information about UCITS products, aimed at institutional investors within the meaning of Luxembourg laws and regulations1 and does not constitute investment recommendation or advice. The information contained in this website is further not intended to be distributed or passed on, directly or indirectly, to any other class of persons and no other person should rely or act upon it. In particular, the information provided by this website is not aimed at "retail investor" within the meaning of Luxembourg laws and regulations2.

      The information on this website is not made for any person's use in the United States of America. Also, the information is not, and should not be construed as, an offer or solicitation of an offer to buy or sell share of the UCITS or any other securities or financial products to any person in the United States of America.

      ③Liability

      The information contained in this website is aiming at providing general information on the UCITS based upon sources believed to be reliable, but its accuracy, completeness or correctness is not guaranteed, and it does not indicate or guarantee any future performance.
      This website further contains links allowing users to access other websites which are not administered or controlled by Daiwa AM Tokyo and for which Daiwa AM Tokyo cannot be held liable in any way whatsoever. Any links on this website to other Internet locations are provided for convenience only and are at your own risk. The content, accuracy, opinions expressed and further links provided at any of such locations are not monitored or endorsed by us and we accept no responsibility for them.
      Daiwa AM Tokyo further makes no warranties, representations or claims of any kind concerning the statements made on this website or on the fact that the information made available on this website is up to date.

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      Daiwa Asset Management Co. Ltd　
      Website Data Protection Policy

      Daiwa Asset Management Co. Ltd (“Daiwa AM Tokyo” or “we”), acting as a data controller, collects personal data to operate effectively and provide you with the best services. This is why we are highly committed to safeguarding your privacy. In accordance with the provisions of the EU Regulation n°2016/679 of 27 April on the protection of natural persons with regard to the processing of Personal Data and on the free movement of such data (the “GDPR”) and the law of 1st August 2018 on the organization of the National Commission for Data Protection and the general regime on data protection, as may be amended or replaced (collectively hereinafter the “Data Protection Laws”), we have developed a Data Protection Policy that covers how we may collect, use, share, protect and keep information about you as well as the rights to which you are entitled in this respect.

      Please take a moment to familiarize yourself with our privacy practices.

      WHICH PERSONAL DATA DO WE USE ABOUT YOU?

      We collect the following categories of personal data, which are directly provided by you when you visit our website or when you require further information about our product and/or services:

      • Name
      • Contact details (such as the mail address and the email address)
      • IP address;
      • Localization data;
      • any personal data the processing of which is required for the purpose of fulfilling the services required by you.

      It is to be noted that you have choices about the personal data we collect. When you are asked to provide personal data, you may decline. If you choose not to provide personal data that is necessary to provide our services, we may not be able to deliver the services (i.e. giving you the information you asked).

      HOW AND WHY DO WE PROCESS YOUR PERSONAL DATA?

      Personal Data supplied by you are processed in order to ensure the good functioning of the website and for our legitimate interests. Such Personal Data shall, in particular, be processed for the purposes of:

      1. providing the correct information to you regarding your investment in our Luxembourg’s Fund
      2. internal administration and analysis
      3. the development of the business relationship with you.

      Our “legitimate interests” referred to above are:

      • the processing purpose described in points “2.” and “3.”
      • the exercise of our business in accordance with reasonable market standards.

      In specific circumstances, we may request your consent to process your personal data:

      • To perform processing for purposes other than the one for which you initially provide us with your data.

      WHO DO WE DISCLOSE OR SHARE YOUR PERSONAL DATA WITH?

      We may share with and disclose your personal data to:

      • Companies of our group for the above purposes only.

      In principle, your personal data is not shared with or disclosed to third parties located outside the European Economic Area. If a transfer of your data is envisaged with an entity that is not located in the European Economic Area and that is not recognized by the European Commission as offering an adequate level of protection, we will take all appropriate safeguards, before the transfer, such as enter into standard protection clauses adopted by the European Commission, in order to protect your personal data adequately.

      HOW LONG WE WILL KEEP YOUR PERSONAL INFORMATION?

      We will only retain your personal data:

      • For as long as it is necessary for the purpose or purposes for which it was intended to be processed;
      • For as long as required or permitted by law taking into consideration the statutory limitation period.

      WHAT ARE YOUR RIGHTS?

      We respect your rights to determine how your personal information is used and seek to ensure that you are able to exercise your rights at any time to the extent required by the law and the regulation. These rights include:

      • Right of access to your personal data

        You have the right to ask us for accessing to your personal data that we process and to ask for a copy of such personal data.

      • Right to rectification

        You have the right ask us to update your personal data and to request the rectification of inaccurate personal data.

      • Right to erasure (‘right to be forgotten’) and the right to restriction

        If at any time you decide you do not want us to retain any personal data we collected from you, you may request we delete your data. You may also request the restriction of the processing of your personal data such as where the accuracy of the data is being contested or the processing is unlawful. We will take reasonable measures to comply with your request to the extent required by applicable law and regulation.

      • Right to data portability

        You have the right to have your personal data transmitted directly from us to another controller only when you have asked us to do so and have consented to such sharing, and when technically feasible.

      • Right to object

        You may object to the processing of your personal data on grounds relating to your particular situation and particularly when the processing is based on our legitimate interests.
        You have also the right to object to the processing of your personal data for direct marketing purpose.

      • Right to withdraw your consent

        You have the right to withdraw your consent at any time, when the processing is based on your consent.

      • Right to lodge a complaint with the CNPD (National Commission for Data Protection)

        You have the right to lodge a complaint with the CNPD, where you believe that your data is being processed in a way that does not comply with the applicable law and regulation, by filling in an online complaint form available on the CNPD Website or by letter addressed to Commission Nationale pour la Protection des Données, Service des Réclamations, 1, avenue du Rock'n'Roll, L-4361 Esch-sur-Alzette. When you reside in another EU member state, you have the right to lodge your complaint with your local data protection supervisory authority.

      1 Please note that the definition of institutional investor may not be a definition that is provided by the regulator of the home state where this website is being accessed.

      2 Please note that the definition of retail investor may not be a definition that is provided by the regulator of the home state where this website is being accessed.

      HOW CAN YOU EXERCISE YOUR RIGHTS?

      All the above listed rights may be exercised by writing to us at the following address:

      GranTokyo North Tower 9-1,
      Marunouchi 1-chome, Chiyoda-ku,
      Tokyo 100-6753, Japan

      CONTACT US

      For further information on Daiwa AM Tokyo’s handling of Personal Data, please contact:

      customer_relations@daiwa-am.co.jp

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