Daiwa Asset Management will contribute to the medium-to long-term asset growth of our clients through our asset management business. To achieve this objective, it is essential not only to select appropriate investment assets such as stocks and bonds, but also to improve the medium- to long-term value and sustainability of the companies and organizations that issue them (hereinafter referred to as "companies"), and at the same time, to maintain the sustainability of society. In order to enhance longer term corporate value and sustainability, it is necessary to maintain good responsibility for the environment (E) and society (S) under appropriate corporate governance (G), which we believe will also contribute to building a sustainable society.

We place high importance on ESG in terms of our investment process.

In accordance with the above policy, we consider the following matters to be the most important ESG issues, ones which we will strive to understand accurately and will endeavor to share awareness of the status of not only companies but also the industry as a whole.

We signed the United Nations Principles for Responsible Investing ("Principles for Responsible Investment" (PRIs)) as soon as it was published in May 2006. In addition, we have taken the lead in making ESG investments, including the first exchange listing ETFs in Japan linked to the index that incorporates ESG evaluations. Upon the above policy, we will continue engaging in ESG investment proactively.