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Mitsubishi UFJ Trust and Banking

1．Ensure customer-oriented approach

Based on the notion that consistently taking initiatives to delve into fiduciary duties that

Mitsubishi UFJ Trust and Banking (MUTB) must fulfill makes it the “best trust bank for you”

or the organization that is selected by customers, MUTB will establish “Mitsubishi UFJ Trust

and Banking Fiduciary Duty” as part of its company rules, which will be positioned as

principles guiding its corporate directors’ and employees’ behaviors and mindset that all its

directors and employees will address.

－『Our Fiduciary Duty』－

Mitsubishi UFJ Trust and Banking Corporation is an organization acting as a fiduciary that

provides in an integrated manner customers with not only banking services but also a wide

variety of products and professional services including asset management and administration,

real estate services, stock transfer agency and inheritance-related services.

As well as fulfilling its legal obligations which are in the form of the duties of loyalty and care, a

fiduciary must act for its entrustors at all times in line with rigorous standards backed by strong

expertise and ethical values.

We, as a fiduciary, have developed the following set of principles, and we are committed to make

continued efforts to reach higher levels for each of these principles.

（1） Morality and Trustworthiness

Based on the highest standards of morality and trustworthiness, we will make efforts to

improve ourselves in a continuous manner.

（2） Strong Expertise

To provide the optimal solutions for our customers with prudence and proficiency, we

pursue strong expertise that a trust bank needs to provide services across multiple areas.

（3） Loyalty to Customers

We act in the best interests of our customers at all times, with a state of mind and in a

manner of behavior in which we identify with our customers' interests.

MUTB seeks to enforce, through training etc., judgment and behaviors among its directors

and employees based on the Principles of Ethics and Conduct, Mitsubishi UFJ Trust and

Banking Fiduciary Duty and MUFG Basic Policy for Fiduciary Duties. MUTB will also seek

to serve the best interest of its customers and increase customer satisfaction by implementing

various initiatives based on customer feedback obtained through questionnaires etc.

MUTB conducts thorough conflict-of-interest control with an information barrier (Chinese

Wall) system and other measures, based on the anticipation that any transactions of a trust

bank—which provides a wide range of products and services to its customers in an integrated

manner from banking services to asset management and administration, real estate, securities

agency and succession-related services—could involve a conflict of interest. MUTB will

continue to further enhance its conflict of interest management to prevent customers’ interest

from getting undermined with no due cause while maintaining and securing their benefits of

transacting with the trust bank.

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2．Developing and providing products that match customers’ needs

（1） Developing and providing products that match customers’ needs

[Product development and investment]

MUTB will promptly develop products that match its customers’ investment needs and

market trends. Also, MUTB will implement product development based on identifying

product areas that it is not handling.

MUTB strives to enhance its line of products and improve their quality by having respective

expertise strengthened in departments in charge of developing and investing in the company’s

in-house products and of developing and investing in products in partnership with external

investment management firms.

MUTB will meet its customers’ diverse and global investment needs by enhancing its

overseas investment product lineup through partnerships with overseas investment

management companies.

3．Implementing customer-oriented consultation and provision of information

（1） Implementing customer-oriented consultation and provision of information

[Sales]

In proposing products, MUTB selects products based on customers’ knowledge, experience,

financial circumstances and transaction purposes. It strives to propose products that match

customers’ needs based on their life stages and attributes. Particularly with elderly customers

and customers with limited investment knowledge and experience it seeks to propose products

with low risk.

MUTB will provide timely and adequate follow-up services including providing customers

with a market outlook, status of investments and other information needed for their

investment judgment in such events where the market fluctuates significantly. Furthermore,

MUTB implements such initiatives as holding seminars for its customers on a regular basis.

（2） Providing detailed information tailored to customers’ level of understanding

[Sales]

In proposing products, MUTB strives to explain the products’ characteristics, risks and fees as

well as market trends with easy-to-understand expressions and important information

highlighted by such means as larger text and coloring and thereby to provide necessary and

sufficient information. Moreover, MUTB utilizes tablet terminals and other devices to provide

its customers with easy-to-understand information—explaining returns, losses and other risks,

transaction terms and conditions with simulations, graphic charts and other tools.

In proposing products, MUTB seeks to reflect customer intention to make even better

proposals including by showing asset management simulations on tablet terminals.

MUTB classifies products into ranked categories for product solicitation and sales that match

customers’ risk tolerance. Moreover, MUTB continuously seeks to improve its account

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executives’ sales skills and place restrictions according to their skills, establishing an adequate

information provision system.

（3） Improvement of transparency of fees so as to contribute to customers’ investment judgment

[Sales]

MUTB will seek to enhance transparency of fees for each product and provide in-depth

explanations so as to contribute to customers’ investment judgment. In addition, regarding

fees on insurance sales, we have since October 2016 been disclosing handling fees for

specified insurance contracts.

（4） Improvement of transparency of fees so as to contribute to customers’ investment judgment


MUTB will develop a performance evaluation system that evaluates performance based on

customers’ benefits and needs.

[Sales]

MUTB will develop a performance evaluation system comprehensively evaluating sales

activities that contribute to customers’ benefits and needs. Also, MUTB has a performance

evaluation system in place that evaluates such factors as expanded customer base and

continuously accumulated deposit balance in a well-balanced manner.

（5） Initiatives of investment education


MUTB leverages its asset management know-how in providing a variety of investment

education programs to assist customers in considering their life plans and asset building as

well as in taking actions. MUTB will increase the volume of its investment education and

awareness-raising activities and, concurrently, enhance their contents.

4．Provision of line of products to meet diverse needs

（1） Provision of line of products to meet diverse needs

[Sales]

MUTB will offer a diverse and high quality line of products that enables customers to select

appropriate products according to their investment objectives and risk tolerances.

We will offer a product lineup including products with low risks or low fees so as to allow as

many customers as possible including those with little investment experiences to utilize its

services. It also seeks to improve convenience in the utilization of online transactions and

periodic investment plans and thereby to allow customers of broad age groups to use its

services.

（2） Selection of products that contribute to customers’ asset building and provision of sales procedures

[Sales]

MUTB will select products and services that contribute to customers’ benefits from among

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many product designs proposed by a variety of investment management firms, insurance

companies etc. while utilizing evaluations by external assessment agencies where necessary.

Furthermore, MUTB will improve its products and services based on sincerely receiving

customer comments, complaints and concerns with respect to the sales of its products and

services.

MUTB is implementing the following initiatives to prevent its product selection and sales

from prioritizing products provided by its affiliated investment management companies or

recommending products with high sales fees only.

At the time of selecting products

The products we handle are selected from among the same types of products taking into

account the “selection points” noted below.

< Selection Criteria >

① Risks of products

② Expenses

③ Performance

④ The needs of the anticipated sales customers, appropriateness, and compatibility with the

investment environment

⑤ The complexity of the product structure, the level of difficulty in explaining products,

and sales channels

⑥ Investment management firm’s support system for sales representatives (education and

sales)

⑦ Conformity with related laws and regulations

Consideration might result in selecting a product offered by our business affiliated companies.

Furthermore, MUTB applies criteria equivalent to the above-mentioned selection method to

its operation and administration services for defined contribution pension funds (DC),

clarifying the selection process for products proposed.

At the time of sale

We do not provide excessive incentives for handling products of our business affiliated

companies in order to ensure that we propose to customers optimal products for their needs. In

addition, in our performance evaluations of sales staff we do not give preference to sales of

products of our business affiliated companies over those of non-business affiliated companies.

Furthermore, the second line of defense, in order to maintain appropriate proposals activities

for customers, undertakes periodic inspections to ensure that preference is not given to sales of

products that generate high fees.

5．Sophistication of investment for the improvement of customers’ investment results

（1） Sophistication of investment for the improvement of customers’ investment results


MUTB seeks to fulfill its stewardship responsibilities1 with respect to all investment

instruments for the purpose of increasing not only returns from active investment but

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index-based passive investment.

MUTB has developed a disciplined process of “Plan (investment planning) Do (investment

execution) See (investment evaluation)” for each product based on its investment

philosophy, where professionals of their respective fields participate in each part of the

process to ensure organizational investment and secure investment consistency.

MUTB ensures the best executions with respect to assets entrusted for administration and

investment based on its fiduciary responsibilities through monitoring conducted by both trust

asset management and supervisory departments.

（2） Ensuring independence and transparency in investment management


Given the fact that MUTB has, in its organization, both trust asset management and corporate

business departments, it secures independence of and transparency in its investment

management business as an investment management institution with an adequate governance

system established.

In addition to thoroughly controlling conflicts of interest with the conventional Chinese Wall,

MUTB will further increase the effectiveness of its stewardship activities as an investment

management company.

[Main contents]

< Reinforcing governance and conflict-of-interest control as an investment management institution >

Commencing the full-scale operation of “Stewardship Committee”—an organizational body

under the supervision of the Board of Directors with external, third-party figures comprising a

majority of its membership—which was newly set up in March 2017 to check the adequacy

and legitimacy of voting right exercises, engagement activities and investment actions in

MUTB’s trust asset management business in terms of securing and maximizing investors’

interest;

To block the risk of any influence from corporate business departments on trust asset

management departments in Trust Assets Business Unit, prohibiting personnel transfer of any

individual to an asset management department who has, within the past 5 years, belonged to a

sales department that has direct contacts with corporate customers;

To prevent any influence from being exercised on voting right exercises or investment

judgement and to block non-disclosure information etc., setting explicit rules (in principle,

prohibiting direct contacts between an investment management department and another

department that is not directly related in investment management business); and

Reinforcing the monitoring of voting right exercise and other processes conducted by Trust

Assets Business Unit as well as other divisions outside Trust Assets Business Unit to block

any influence from other business units and to reinforce the effectiveness of information

blocking system

< Enhancing disclosure of voting right exercises >

To improve transparency relating to stewardship activities as an investment management

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institution through strengthening its governance, we disclose the pros and cons of proposals

by agenda related to all the issues, among the Japanese equities that we manage, on which

voting instructions are given based on the Voting Right Exercise Guideline, as well as the

grounds for judgment in case of instructions for cons (instructions for pros in case of

shareholder proposals)

< Disclosing MUTB’s policy for engagement activities undertaken in passive investment >

Disclosing MUTB’s policy for engagement activities in passive investment undertaken based

on certain criteria (e.g., low ROE and market capitalization)

< Enhancing self-assessment concerning stewardship activities of the investment management

institution >

Disclosing self-assessments of voting right exercises and engagement activities based on

external, third-party reviews of their policies and results

6．Improvement of quality of comprehensive asset administration services to support customers’ asset

management

（1） Improvement of quality of comprehensive asset administration services to support customers’ asset

management

[Asset administration]

Making it a principle to prioritize trust and confidence of customers, MUTB adequately and

swiftly matches customers’ diverse needs not only in Japan but across the globe.

MUTB proactively seeks to develop new areas of and new technologies for asset

administration services and thereby to efficiently provide customers with the highest quality

of comprehensive asset administration services.

MUTB provides comprehensive asset administration services to match customers’ diverse and

global investment needs, utilizing MUFG Group’s overseas network as well as a variety of

overseas custodians.

（2） Providing a broad range of information about asset administration


MUTB researches and monitors relevant countries’ laws and regulations (including tax

systems) relating to asset administration and provides customers with such market

information in an extensive and timely manner including its impacts on customers to support

their efficient asset management.

7．Provision of financial services leveraging the Group’s consolidated strength

[Sales]

MUTB strives to leverage the consolidated strength of Group companies including the Bank

of Tokyo-Mitsubishi UFJ and Mitsubishi UFJ Morgan Stanley Securities to meet customers’

diverse needs-, and to make proposals based on the act of constantly confirming customers’

intentions to satisfy their changing needs.

MUTB makes comprehensive proposals not only on investment products but on inheritance,

succession and trading of real estate properties according to customers’ life cycles and needs.

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8．Establishment of a structure enabling comfortable, secure and safe transactions

[Sales]

MUTB seeks to improve customers’ convenience based on the notion of “open innovation” by

proactively utilizing technologies and ideas that it acquires from Japan and other countries in

cooperation with external companies and research institutions, including the introduction of

new additional services and functions provided through digital channels.

MUTB strives to further improve customers’ convenience as well as its proposals by utilizing

tablet terminals and other devices for simplified procedure and accelerated responses.

MUTB, day by day, improves the security of its online banking system to enable customers to

complete transactions through the internet with a sense of security.


MUTB has introduced a globally-renowned state-of-the-art system and strives to provide

comprehensive asset administration services utilizing cutting-edge technologies in various

derivative transactions, mark to market valuations, provision of risk management information

and on-demand information disclosure.

9．Exertion of professionalism


MUTB fosters professional human resources by formulating and implementing capacity

building programs for the purpose of strengthening investment capabilities to provide

products and services that are truly chosen by customers, offering extensive training programs

for various levels of expertise.

MUTB has an articulated remuneration system in place for fund managers who are required to

possess a high degree of expertise.

[Sales]

MUTB seeks to strengthen its staff’s knowledge and skills in relation to products and

investment environment including providing them with training and encouraging them to

obtain external specialized qualifications and thereby to enhance their expertise as

professionals. Furthermore, it seeks to improve quality of its directors and employees by, in

the case of those who visit individual customers, encouraging them to obtain financial planner

(FP) and other external qualifications and to enhance their knowledge and skills relating to

products and investment environment by providing them with diverse forms of training

according to their experience and organizational positions.


MUTB seeks to provide comprehensive asset administration services that are truly chosen by

customers by providing its directors and employees with opportunities and workplaces where

they enhance their expertise and unleash their capabilities and by having each of them grow

as a professional recognized in the market.

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1. “Stewardship responsibilities” refers to the responsibilities of institutional investors to enhance the medium-to long-term

investment return for their clients and beneficiaries (including ultimate beneficiaries) by improving and fostering the

investee companies' corporate value and sustainable growth through constructive engagement, or purposeful dialogue,

based on in-depth knowledge of the companies and their business environment.

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[Implementation status]

MUTB will regularly disclose the degree of adoption of customer-oriented undertakings including its

initiatives for further improvement of products and services while reviewing its initiatives as needed.

1. [Sales]

Initiatives for improvement of quality of officers and employees, and for customer-oriented

information provision and consultation

FP2-level qualification1 acquisition rates among its staff remain high and are further increasing.

MUTB thus strives to maintain and enhance their expertise continuously as professionals.

MUTB strives to implement customer-oriented information provision and consultation based on

increased customer contacts including holding approximately 800 to over 1,100 seminars for its

customers.

【Fig.1】FP2-level qualification1 acquisition rate 【Fig.2】Number of seminars held for customers

2

1. FP2-level qualification: 2nd grade certification as Certified

Skilled Worker of Financial Planning and/or AFP qualification

2. Aggregated number of seminars for customers held

Improve Product Lines

Regardless of affiliated investment managers, MUTB strives to enhance its product lineup to meet

diverse customer needs. Out of the 244 investment trust funds that MUTB deals with most recently (as

at the end of September 2017), 42 are no-load funds.

Though the continuously low interest rates caused suspension of the sale of some life insurance

products, MUTB continues to strive to maintain and enhance its product lineup to meet diverse

customer needs.

【Fig.3】Investment trust fund lineup (End-Sept. 2017)3 【Fig.4】Life insurance product lineup (End-Sept. 2017)

3.

Investment trust funds sold over the counter (including funds sold only through online banking service),

Open-end domestic investment trust funds (excluding foreign investment trust funds and unit-type money pool funds), and, among them,

A currency selection-type fund is counted as one with its different classes combined

4. Disclosure of fees for specified insurance policies started in

Oct. 2016

80%

85%

90%

95%

100%

Sept2016 Jan2017 May2017 Sept2017

Management Sales Representative

0

200

400

600

800

2014

1H

2014

2H

2015

1H

2015

2H

2016

1H

2016

2H

2017

1H

No. of productshandled

Ratio ofproducts

handled

Japanese bonds 7 3%

Japanese equity 38 16%

Global bonds 77 32%

Developed countries 47 19%

High yield 12 5%

Emerging markets 18 7%

Global equity 41 17%

Developed countries 31 13%

Emerging markets 10 4%

REIT 23 9%

Balanced type 54 22%

Others 4 2%

Total 244 100%

No-load products 42 17%

CategoryNo. of products

handledRatio of products

handled

JPY denominated 7 47%

Investment-type pension 0 0%

Fixed annuity pension 0 0%

Whole life 7 47%

Nursing care and Medical 0 0%

Non-JPY denominated 8 53%

Investment-type pension 2 13%

Fixed annuity pension 2 13%

Whole life 4 27%

15 100%

No. of productshandled

Ratio of productshandled

2 40%

0 0%

1 20%

0 0%

1 20%

1 20%

5 100%

11 55%Products for which handling

fees are disclosed4

Product type

Sin

gle

Pre

miu

m

Total

Product type

Level-

pre

miu

m i

nsu

ran

ce Whole life

Term

Medical and cancer treatment

Educational endowment

Pension and endowment

Nursing care

Total

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Improve Product Lines

We strive to provide accurate information to enable customers to choose various products that suit

their needs. Over the last five years, the sales ranking of investment trust funds has significantly

changed.

Regardless of affiliated investment managers, as a result of making proposals in accordance with

customers’ needs, the amount of distribution of the products launched by affiliated investment

managers is currently decreasing.

We will continue our efforts to make proposals for the products suited to customers’ needs, regardless

of whether such products are launched within or outside the group.

【Fig. 5】Top10 Investment Trust Funds5 in Distribution

FY2012

FY2017 1H

5. Sum of investment trust funds distributed over the counter (including the funds distributed only through online banking service)

6. Core products refer to those positioned as the core of stable asset management, such as balanced-type fund. Satellite products denote those focusing more on profitability, such as active-type fund. Category of products, i.e. Core of Satellite, is based on our own criteria.

【Fig. 6】Ratio of the amount of distribution of products launched by affiliated investment managers5

No Fund Name Category6 Monthly

dividend

1 Nissay J-REIT Fund (Monthly Settlement Type) Satellite ○

2 Mitsubishi UFJ Global Bond Open (Monthly Settlement Type) Satellite ○

3 Fidelity US High Yield Fund Satellite ○

4 Mitsubishi UFJ Emerging Bond Fund Currency Series (BRL) Satellite ○

5 MUAM PIMCO Emerging Bond Open B (JPY Hedged) Satellite ○

6 Tokio Marine Yen Denominated Investment Grade Bond Fund (Monthly Type) Core ○

7 Kokusai Emerging Sovereign Open (1M) Yen Hedged Satellite ○

8 Kokusai World REIT Open (1M) Satellite ○

9 Mitsubishi UFJ Emerging Bond Fund Currency Series (AUD) Satellite ○

10 UBS(JP)Global Convertible Bond Fund 2012-09 (JPY hedged) Satellite ○

No Fund Name Category6 Monthly

dividend

1 Fidelity US High Yield Fund Satellite ○

2 GS Emerging Local Currency Debt Fund Satellite ○

3 Australian Dollar Monthly Income Fund Satellite ○

4 Nissay Australia High Income Equity Fund (Monthly Settlement Type) Satellite ○

5 Kokusai World REIT Open (1M) Satellite ○

6 JPM Best Income (Monthly Distribution) Core ○

7 LM US Dollar Monthly Income Type Fund Satellite ○

8 Mitsubishi UFJ Index 225 Open Satellite

9 Nissay J-REIT Fund (Monthly Settlement Type) Satellite ○

10 Mitsubishi UFJ Global Bond Open (Monthly Settlement Type) Satellite ○

30%

50%

70%

90%

2015 1H 2015 2H 2016 1H 2016 2H 2017 1H

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Implementing customer-oriented provision of information and consultation

We are increasing the number of less-frequent settlement-type products (i.e. annual or semi-annual

settlement) in addition to monthly dividend-type products in order to respond to various needs of

customers. Moreover, we will make efforts to provide customers with information by creating

materials where the difference between a monthly dividend-type product and a less-frequent

settlement-type product is explained in an easy-to-understand manner.

As a result of careful and timely provision of information on changes in market trends, and

attributable to an increase in customers that sold funds in response to a current rise in the market

price, the average holding period of investment trust funds has shortened. Furthermore, one of the

factors behind the shortened average holding period concerns the fact that there are a number of

transactions with the retiree customers with thick asset background and considerable experience of

investment.

The number of customers and deposit balance of wrap accounts are increasing every fiscal year,

thanks to solid distribution of wrap accounts that are effective in medium- to long-term investment as

well as in diversified investment.

【Fig. 7】Amount of distribution of monthly dividend type prroducts (JPY, ’00 mil.) out of investment trust funds

5 and comparison with other funds

【Fig. 8】Ratio of dividend amount out of balance of investment trust funds

7 【Fig. 9 】Average period of holding investemnt

trustfunds (per annum)8

7. Dividend amount was calculated by totalling the receipt of diviends and re-investments 8. Average holding period is the result of dividing the average balance of invesment trust funds held by the cumulative total

of cancellation/redemption amount (for the past one year, respectively)

【Fig.10】The number of wrap account holders and the balance9

9. Wrap accounts include “managed accounts (Private Accounts and etc.) and “Mitsubishi UFJ Fund Wrap Accounts”.

0%

50%

100%

0

1,000

2,000

3,000

2015 1H 2015 2H 2016 1H 2016 2H 2017 1H

Monthly Dividend Type Other than Monthly Dividend Type Ratio of Distribution of Monthly Dividend Type

4.0%

4.2%

4.4%

4.6%

20151H

20152H

20161H

20162H

20171H

0.0

1.0

2.0

3.0

4.0

5.0

2015

1H

2015

2H

2016

1H

2016

2H

2017

1H

0

5,000

10,000

15,000

20,000

25,000

0

500

1,000

1,500

2,000

2,500

2014 2H 2015 1H 2015 2H 2016 1H 2016 2H 2017 1H

（No. of people）（JPY,’00mil.） Wrap account balance Number of wrap account holders

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Ensure customer-oriented approach (based on evaluation by customers);

To confirm the adoption of customer-oriented undertakings, MUTB regularly conducts customer

satisfaction surveys to directly obtain customer feedback, which indicates a high level of satisfaction

on a comprehensive basis. MUTB nevertheless seeks to further improve customer satisfaction and

thereby to continue to meet customer expectation.

The number of cases where improvement was made based on customer feedback is steadily

increasing every year on a cumulative basis.

【Fig.11】Satisfaction survey10

【Fig.12】Degree of emphasis on and satisfaction in

aspects of person-in-charge’s customer services10

【Fig.13 】Number of cases of improvement

based on customer feedback 11

10. [Fig. 11 and 12] Survey outline and subject customers: Randomly selected individual customers (Questionnaires postal-mailed to

approx. 4,000 customers and responded by approx. 1,600). ／ Comprehensive satisfaction: The ratio of responses indicating

“satisfactory” or “fairly satisfactory” on a comprehensive basis regarding various transactions with MUTB. ／ Degree of satisfaction in

aspects of person-in-charge’s customer services: The ratio of responses indicating “satisfactory” or “fairly satisfactory” with respect to

each question; ／Degree of emphasis on aspects of person-in-charge’s customer services: The ratio of responses indicating “Highly

emphasis” or “emphasis ” with respect to each question;

11. [Fig. 13] Number of complaints: Indexed with FY2013’s value as 100

20%

40%

60%

80%

100%

FY2013 FY2014 FY2015 FY2016

Comprehensive satisfaction

50%

60%

70%

80%

90%

100%

50% 60% 70% 80% 90% 100%

【Cust

om

er

satisf

act

ion】

【Importance to Customers】

Employee

appearanceEmployee attitude of

politeness toward

customers

Accuracy in

clerical procedures

Employee

approachability

Waiting time at branches

/frequency of visit

Knowledge and

Ability to make

proposals

Clear information

and explanation

Understanding

customers' requests

Prompt response to

customers inquires

0

40

80

120

0

80

160

240

FY2013 FY2014 FY2015 FY2016

Number of complaints resolved

Total amount of complaints resolvedNumber of complaints (Right axis)

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Ensure customer-oriented approach (Track records)

Some customers sell their assets to lock in profits in the rising phase of the markets while investment

product balance increase when customers newly purchase investment products or make additional

purchases in the declining phase of the market, as reflected to the total balance and number of

investment products holders remaining roughly flat.

Additionally, MUTB is implementing to propose plural products for customer needs by utilizing

unique capabilities as a trust bank.

【Fig.14】Changes in investment product balance and the number of investment products holders 12

Nikkei225 Index (Closing Price)

12. Actual transactions with individual customers; on a managerial accounting basis

Investment product balance; Calculated by total balance of all of investment products

Number of investment products holders; Counted by a customer name (a customer who has two or more investment products is

counted as one)

200

250

300

350

400

450

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

June2014

Sept.2014

Dec.2014

Mar.2015

June2015

Sept.2015

Dec.2015

Mar.2016

June2016

Sept.2016

Dec.2016

Mar.2017

June2017

Sept.2017

（thousand people）（100Billion yen）Investment product balance Number of investment products holders

15,162 16,174 17,451 19,207 20,23617,388 19,034

16,759 15,576 16,450

19,114

18,90920,033 20,356

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2. [Product development and investment] [Asset administration]

Enhancement of stewardship activities

As part of its stewardship activities, MUTB strives to continue engagement with companies that it

invests into.

Furthermore, MUTB set up a “Stewardship Committee” on March 1, 2017 with external, third-party

figures comprising a majority of its membership, thereby establishing a framework to check the

adequacy and legitimacy of its engagement activities in terms of securing and maximizing investors’

interest.

MUTB will continue to enhance its stewardship activities for maximizing investors’ interest based on

the Stewardship Committee’s verification from external, third-party perspectives.

【Fig.1】The number of investment management departments’ dialogues (engagements) with companies 1

1. The number of individual meetings and other direct dialogues with companies

Evaluation by customers

In the area of product development and investment, MUTB checks the degree of adoption of

customer-oriented undertakings based on results of surveys conducted by external rating agencies that

reflect feedback from institutional investors, MUTB’s customers. It seeks to further improve it and

thereby to continue to meet customer expectation.

【Fig.2】“Pension Customer Satisfaction Survey” by

R&I2

Aggregated results (Comprehensive

satisfaction)

【Fig.3】Number of funds that received R&I Fund

Awards4 (From 2014 to present)

Comprehensive

satisfaction2

Overall ranking （Population3）

Number of award funds

FY2017 3.64 2nd

(16 companies) FY2017 3

FY2016 3.58 5th


FY2015 3.70 1st


FY2014 3.57 6th


2. Average point of customer’s satisfaction. (5 points in full marks) 3. Asset management companies which received answers from more than 50 customers. 4. The R&I Fund Award is presented to provide reference information based on the past data R&I or QUICK Corp. (QUICK) believes to be

reliable (however, its accuracy and completeness are not guaranteed by R&I or QUICK) and is not intended to recommend the purchase, sale or holding of particular products or guarantee their future performance. The Award is not the Credit Rating Business, but one of the Other Lines of Business (businesses excluding Credit Rating Business and also excluding the Ancillary Businesses) as set forth in Article 299, paragraph (1), item (xxviii) of the Cabinet Office Ordinance on Financial Instruments Business, etc. With respect to such business, relevant laws and regulations require measures to be implemented so that activities pertaining to such business would not unreasonably affect the Credit Rating Activities. Intellectual property rights including copyright and all other rights in this Award are the sole property of R&I or QUICK, and any unauthorized copying, reproduction and so forth are prohibited. The Award for the "Investment Trusts/Aggregate" category is based on the average performance of the relevant funds of a fund manager, and does not indicate the excellent performance of all individual funds of the manager.

0

200

400

600

800

1,000

1,200

1,400

1,600

2014 2H 2015 1H 2015 2H 2016 1H 2016 2H 2017 1H

15

Investment education initiatives

In September 2015 MUTB set up an Investment Education Office within its Trust Assets Business

Division, a specialized organizational unit for conducting investment education and awareness raising

activities, that is hosting seminars for customers and implementing other relevant activities. In order

to further enhance such activities, in October 2017, we merged Investment Education Office and

relevant organizations, thereby newly establishing Asset Building Advisory Division.

Furthermore, MUTB conducts online awareness raising activities on its website, “Investment

Education Web,” where 62 contents are currently available (as at the end of September 2017).

MUTB continues to strive to further enhance education programs based on customer

【Fig.4】Number of contents and brief description of

main contents of Investment Education Web

【Fig.5】Number of investment education

seminars hosted by Investment Education

Office

Number of

contents

brief description of main contents

2015 1H （At start-up）

3 Short movie about the alphabet of financial planning

Simulation tool

2015 2H 9 3 minutes movie

Column

2016 1H 21 Comics to understand financial planning

2016 2H 39 Contents in relation to iDeCo

The alphabet of financial planning

2017 1H 69 Comics to understand iDeCo

Shintaku Quest

Enhancing expertise

MUTB is striving to maintain and enhance expertise among its staff by having them obtain securities

analyst, pension fund actuary and other relevant qualifications and thereby to continue to further

improve its skills as an investment manager.

【Fig.6】Securities analyst qualification holders

number and qualification acquisition rates

among staff in investment departments

【Fig.7】Number of pension fund actuary

qualification holders (Unit: Person)

0

500

1,000

1,500

2,000

2,500

2015

1H

2015

2H

2016

1H

2016

2H

2017

1H

40%

50%

60%

70%

250

500

750

1,000

1,250

2015 2H 2016 1H 2016 2H 2017 1H

Securities analyst qualification holders number

Qualification acquisition rates among staff in investmentdepartments

40

45

50

55

60

65

2015 2H 2016 1H 2016 2H 2017 1H

16

Track records reflecting confidence

Assets under management are increasing due to market fluctuations and other factors. Investment

balance for defined contribution pension fund (DC) products continues to increase, supported by tax

reform and the increasing shift from “savings to asset building.”

Asset administration balance is roughly leveling off.

【Fig.8】Asset administration balance5／Assets under

management(Trillion Yen)6

【Fig.9】Assets under management for DC

(JPY,’00mil.)7

5. Including assets under management of pension funds,

investment trust funds, and other trust funds, as well as assets

under custody and administration.

6. AuM as MUTB (Other group asset management companies are

not included)

7. DC products distributed as MUFG (excluding fixed

deposits)

0

30

45

60

0

200

300

400

20141H

20142H

20151H

20152H

20161H

20162H

20171H

Assets under managementAsset administration balance（Right axis）

0

2,000

4,000

6,000

8,000

10,000

12,000

20141H

20142H

20151H

20152H

20161H

20162H

20171H

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