Risk Management Regarding Restrictions on Derivative Transactions, etc.

We manage derivative transactions in the investment trusts we operate via the methods described below. This is done in accordance with the Guidelines on Investment Restrictions on Derivative Transactions, etc. set forth by Investment Management Association of Japan.

The terms and conditions of the investment trusts that we currently operate and manage restrict the use of derivatives transactions, etc. to hedging purposes only. Accordingly, we manage these investment trusts using a simple method (i.e., a method that prevents the notional principal amount of each derivative transaction from exceeding the total net asset value of the investment trust property) which constitutes one of the reasonable methods prescribed by the Guidelines of Investment Management Association of Japan.