Holding of Investment Units by Officers and Employees of the Asset Management Company
We believes that more clearly showing investors their attitude towards fulfilling their responsibilities to achieve the sound growth of the Investment Corporation by not only CRE, the sponsor, but also by the managements with the above responsibilities making their profit situation equal to that of the investors will be necessary to make the future management of the Investment Corporation or support for the Investment Corporation more meaningful and effective. Also, Many officers and employees of the Asset Management Company hold investment units of the Investment Corporation based on a cumulative investment system and internal regulations.
|Company||Title||Name||Units held (Note)|
|CRE||President||Tadahide Kameyama||722 units|
|the Asset Management Company||President||Tsuyoshi Ito||1,125 units|
|Managing Director||Takeshi Oka||60 units|
|10 out of 12 employees||116 units|
|（Note）||As of December 31, 2020. Also, the number of each holding unit is rounded down to the nearest unit.|
Revision of asset management fee structure more aligned with unitholder interests
The Investment Corporation and the Asset Management Company amend Articles of Incorporation at the General Meeting of Unitholders held on September 27, 2019 and revise fee structure from the Period ending June 2020 in order to introduce asset management fee structure more aligned with unitholder interests. By decreasing management fees based on total assets and income before income taxes and establishing a new management fee based on earnings per unit, the linkage with earnings per unit has increased. Also, the Investment Corporation repealed fee on sale to prevent fee being charged even in the case of the sale of property that is detrimental to the interests of unitholders because a loss on sale is recognized.
Independence of the Asset Management Company
Given that the Asset Management Company was established as an independent asset management company, all its members are proper employees and CRE is not involved in their recruitment or personnel evaluation.
・If an incident of misconduct occurs, it shall promptly be reported to the Compliance Department, the management team (meaning the Directors and Auditor of the Asset Management Company. The same shall apply hereunder) and the regulatory authorities in accordance with the Compliance Regulations. Remedial measures ensuring the appropriate functioning of internal checking and the prevention of reoccurrence shall be examined and responsibilities shall be clarified.
Appropriate management of conflict of interests
・The Compliance Committee shall be the first to examine a transaction with interested parties. The committee shall ensure objectivity and confirm that there are no problems regarding the legality and fairness of the transaction. Only after the matter is approved and a resolution passed by the Compliance Committee will the matter be submitted to the Investment Committee and the Board of Directors for discussion and resolution. Moreover, these transactions shall be contingent upon the prior consent of the Investment Corporation based on the approval of the board of directors of the Investment Corporation, which includes lawyers and certified public accountants as supervising officers. In this manner, transactions with interested parties may be implemented after strict screening procedures.
Active sharing of information with investors
・IR activities in consideration of COVID-19
Since March 2020, we will hold conference calls and web conferences with institutional investors in Japan and overseas to have the same dialogue as usual.