IIF and the asset manager MCUBS make decisions based on the following process to ensure transparency in decision-making.
In the course of making a decision regarding the acquisition, disposal, or operation and management of assets for each investment corporation, a proposal will be submitted to the Asset Manager's Investment Committee for approval in accordance with the Guidelines of the rules of the Investment Committee. In the course of making a decision regarding the investment policy and standards, operation and management policy and standards, budget and financing for each investment corporation, a proposal will be submitted to the Asset Manager's Invest Committee and Board of Directors for approval in accordance with the Guidelines of the Investment Committee and Board of Directors. Proposals relating to stakeholder transactions of the Asset Manager, must first be approved by the Compliance Committee before they are submitted to the Investment Committee (excluding “Minor Transactions” which is stipulated in the Regulations for Transactions with Stakeholders). In addition, subsequent to approval by the Board of Directors of the Asset Manager, approval from our board of directors is required prior to a transaction involving the acquisition, disposal or lending of securities or real estate between us and a related party (as defined in Article 201-1 of the Investment Trust Act) of the Asset Manager, except certain of such transactions determined not to have a significant impact on each investment corporation under the Ordinance for Enforcement of the Investment Trust Act.
Based on the policy of MCUBS, the asset manager for IIF, we define compliance not only as its with laws and regulations, but also as voluntary efforts to meet broader social expectations behind laws and regulations, and intends to conduct sound management based on sincere and fair corporate activities and self-discipline.
The IIF asset manager MCUBS places importance on integrating consideration for ESG into investment and management processes, so as to improve the value of sustainable asset management and portfolios. MCUBS is also a signatory to and is participating in international initiatives.