Investor Presentaiton
Sustainability Initiatives (5)
Governance
Governance structure for avoiding conflicts of interest
■The Asset Management Company's Decision-Making
Process Flow for Acquiring or Selling Investment Assets
Preliminary Plan
Related-party transaction
When CCO determines that a
compliance issue has arisen
1
Approval of CCO
2
Confirmation of
Compliance Committee
Proposal by CIO
3
Investment Committee *1
Report to Board of NAF
Compliance Checking System
N
Nippon
Accommodations
Fund
1 Approval by Chief Compliance Officer (CCO)
The following require approval of the Compliance Committee
Related-party transactions*2
When CCO determines that a compliance issue has arisen
*2 Property acquisition price from sponsor-related parties is below
appraisal value
2 The Compliance Committee
Requires approval by independent external professionals
Members: CCO (Chairperson), CEO, 2 external professionals
(Currently 1 lawyer and 1 CPA)
External professionals: Appoint professionals independent
from sponsor-related parties
Resolution: Requires the votes of 2/3 or more members and
at least 1 of the 2 independent external professionals
3 Functions as a Check on the Investment Committee
CCO can suspend discussion when he sees any problem in the
discussion process
*1
When NAF acquires or sells of assets in transactions with related parties as defined by the Investment Trust and Investment Corporation Act of Japan, the Asset Management Company must
obtain consent from NAF based on the approval of NAF's Board of Directors prior to the deliberations of the Investment Committee. However, such consent is not required for property or other
real estate acquisitions stipulated by Article 245-2-1 of the Investment Trust and Investment Corporation Act as having immaterial impact on NAF's assets because the acquisition cost represents
less than 10 percent of the book value of NAF's investment properties.
For details of governance initiatives, please visit our website (*Now preparing new ESG website)
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