Status of initiatives in FY2018 and FY2019
1. Formulation and publication of customer-oriented business management policy
In order to realize customer-oriented business operations, we have been making efforts to ensure the penetration and thoroughness of this policy throughout the company.
We have verified the status of our efforts in FY2018 and FY2019, and would like to report the results as follows.
The Company has determined that it is not necessary to revise the policy as a result of the verification of the status of this initiative.
2. Pursuing the best interests of Customers
We have achieved our goal of external growth of MPR (200 billion yen by 2019) as of the end of August 2018.
In addition, the Investment Committee has met 16 times in 2018 and 13 times in 2019 (as of the end of February 2020) to implement internal growth and realize stable profit distribution.
3. Appropriate management of conflicts of interests
We have identified 13 transactions with interested parties that pose a high risk of conflict of interest in FY2018 and 8 transactions in FY2019 (as of the end of February 2020). The Legal Compliance and Risk Management Committee met nine times in FY2018 and eight times in FY2019 (as of the end of February 2020) to confirm that there were no transactions involving conflicts of interest.
In addition, we have been operating the management system appropriately based on the internal rules.
4. Clarification of fees
We have been making efforts to provide our Customers with appropriate information about the details of the handling fees such as the management fees we receive from our Customers.
5. Provision of important information in an easy-to-understand manner
We have been making efforts to provide and disclose important information that may affect investment decisions to our Customers in an accurate and fair manner.
6. Provision of services suited for Customers
We have been striving to understand the transaction purposes and needs of our Customers including MPR's unitholders, to conduct asset management in line with such purposes and needs, and to focus on IR activities so that the status of such asset management can be communicated to our Customers in an easy-to-understand way.
7. Framework for appropriately motivating employees
We recognize the importance of maximizing our Customers' profits by carrying out our business operations with integrity and fairness based on high ethical standards and by providing high quality services supported by high levels of specialized knowledge. To accomplish these tasks and to ensure that our employees are able to achieve high levels of expertise and standards, we have continuously provided education and training to our employees. In addition, in accordance with the compliance program approved by our Board of Directors, we have provided compliance training for all employees on a regular and continuous basis with the aim of improving the governance structure.
8. Key Performance Indicators（KPI）of results
In order to evaluate the degree to which this policy has taken root, we have established the following KPI.
(1) IR: Hold a total of about 80 IR meetings per term with MPR institutional investors.
(2) Legal Compliance and Risk Management Committee: Hold at least four meetings per year.
(3) Investment Committee: Hold at least 12 meetings per year.
(4) Internal Audits: Conduct internal audits by external experts at least once a year.