Daiwa Asset Management Co. Ltd.

Daiwa Asset Management Co. Ltd. (Daiwa AM or "the Company"), as an asset management company, places primary importance on fulfilling our fiduciary duty (duty of loyalty and duty of care) by striving to achieve investment goals to the maximum extent in line with our respective investment objectives, and in accordance with the respective basic policies stipulated under the terms and conditions.

In order to achieve this objective, it is essential not only to select appropriate investment assets including stocks and bonds, but also to improve the medium- to long-term value and sustainability of the investee companies that issue them, and at the same time, to enhance social sustainability.

The Company will be committed to fulfilling our fiduciary responsibilities for asset management business and fulfilling our corporate social responsibilities, through stewardship activities by contributing to the enhancement and the medium-to long-term value and sustainability of investee companies and also contributing to the maintenance of social sustainability.

From the standpoint of separating fund management from business management, the Company has established the Stewardship Committee, composed of personnel from the Fund Management Division whose roles are related to stewardship activities, under the direction of the Chief Investment Officer (CIO). The Committee determines the policies for stewardship activities and, under the supervision of the Committee, corporate research analysts, fund managers and representatives in charge of corporate governance systematically conduct activities.

In addition, the Stewardship Supervisory Committee (the "Supervisory Committee"), composed of the Outside Directors and the Chief Compliance Officer, who is responsible for managing conflicts of interest, oversees management of conflicts of interest in the overall stewardship activities, submits reports to the Board of Directors and recommends improvements to management of conflicts of interest where necessary. More than half of the Supervisory Committee’s membership, including chairperson is comprised of outside directors, thereby ensuring independence in management and execution and fulfilling a governance function.

The Company will conduct stewardship activities based on our fundamental approach as follows;