Policy on customer-oriented business operations
Principal Global Investors Corporation
1.Formulation and publication of policies concerning customer-oriented business operations
Principal Global Investors Inc. (hereinafter referred to as "the Company") The Financial Services Agency has adopted the "Policy on Customer-Oriented Business Operations" announced by the Financial Services Agency, and announces the following policies for realizing customer-oriented business operations.
In principle, the policy shall be reviewed once a year, and the status of initiatives related to the policy shall be announced periodically.
2. Pursuit of the best interests of customers
We not only respond to the investment needs of institutional investors, but also propose high-quality solutions in a timely manner according to the issues faced by our clients.
Under a global multi-boutique system with operating bases including boutiques in major cities around the world, the Group strives to secure highly professional human resources and also focuses on research and development to enhance its lineup of competitive, high-quality products. Based on these, we will pursue the best interests of our customers from a medium- to long-term perspective.
3. Appropriate Management of Conflicts of Interest
The Company is a Japan corporation of a management institution under the umbrella of a U.S. financial institution established to provide investment products to Japan financial institutions, pension funds, etc., and we believe that it is most important to deal with any domestic client on fair and appropriate terms in order to avoid conflicts of interest.
In addition, in order to faithfully carry out business for customers and avoid conflicts of interest, we have established internal regulations including policies and procedures concerning the self-trading of securities, etc. by officers and employees and the exercise of voting rights, in order to prevent anticipated conflicts of interest.
4. Clarification of fees, etc.
With regard to the details of the management fees and other expenses borne by the customer, we will continue to provide easy-to-understand information so that customers can understand the contents of the management fee and other expenses, including what kind of service consideration the fee is related to.
5. Provision of important information in an easy-to-understand manner
When providing information to customers, the Company will continue to strive to provide clear and plain explanatory materials to make it easier for customers to understand the characteristics, risks, fees, etc. of products and markets. In addition, we will provide as detailed information as possible for inquiries from customers regarding the contents of products.
6. Provision of Services Suitable for Customers
In addition to confirming that our proposals are compatible with the customer's investment objectives, experience, asset situation, and purpose of concluding contracts, we will always communicate closely with customers to accurately grasp the issues that customers have, and then propose and provide solutions that we think are most appropriate for our customers in a timely manner.
As part of our communication with our customers, in addition to regular operational reports, we will make reports as necessary as appropriate, and strive to provide information that is considered useful when considering issues faced by customers, such as including factor analysis based on market trends, and so on.
7. Framework for Appropriate Motivation for Employees
In order to build relationships of trust with customers from a medium- to long-term perspective and to contribute to the pursuit of the best interests of our customers, we have established a personnel evaluation system and a remuneration system that can maintain excellent human resources with high qualifications and abilities.
In addition, for appropriate internal control and governance, each department within the company and internal committees evaluate potential risks, and the Board of Directors has established a governance system that includes a majority of non-executive directors. In addition, we will utilize external audits such as guarantee audits and accounting audits of entrusted business to strive to maintain appropriate business operations.
(Revised on April 6, Reiwa 3)
Status of Customer-Oriented Business Operations
