Risk and Expenses regarding investment advisory contracts and discretionary investment management contracts

Financial products and financial derivatives products invested in under discretionary investment management contracts or those products advised to invest in under investment advisory contracts may incur losses resulting from changes in the market indices of those products interest rates, foreign exchange rates or other indicators in financial instruments markets.

Factors subject to change include: risk of fluctuations in prices of marketable securities, etc.; credit risk of issuers, etc.; risk of fluctuations in interest rates and financial markets; liquidity risks, etc., such as the inability to execute a transaction under conditions of sufficient liquidity (and with regards to investments denominated in a foreign currency, foreign exchange rate risk, etc.).

Accordingly, the client's investment principal amount is not guaranteed. A decline in the value of financial instruments, etc., could cause a loss of principal.

To a client who is a foreign entity, management fee under an investment advisory contract or a discretionary investment management contract is to be agreed individually upon completion of the contracts.

Under certain contracts, a performance fee is applicable.

These fees, to be agreed individually, cannot be specified beforehand.

With regard to charges and commissions other than management fees, there may be variable additional costs incurred, including sales commissions, operational fees for investment trust funds and other applicable charges.

There may be other costs incurred depending on the specifics of contracts, including variable costs by investment performance or costs determined by trust banks.

The total costs can not be specified beforehand due to the aforementioned reasons.

Note:
The above risks, and fees, etc., vary according to the contract details, investment conditions, etc. Thus, before entering into a contract, prospective clients are requested to first confirm all relevant items within the "Documents to be read prior to the conclusion of a discretionary investment management contract."