Policies for Customer-Oriented Business Conduct

Customer-Oriented Business Conduct

The Kenedix Group is guided by a mission statement, corporate mission (corporate philosophy) and long-term vision, which are collectively called the Kenedix Group Mission. All of these guidelines are consistent with the fundamental concept behind the Principles for Customer-Oriented Business Conduct that were announced on March 30, 2017 by Japan’s Financial Services Agency. We support all of these principles and have established our own Policies for Customer-Oriented Business Conduct.

I. Our Mission

(1) Mission Statement

Kenedix is dedicated to realizing the full potential of real estate

In pursuit not only of increasing assets under management and realizing short-term investment yields, Kenedix, Inc. assesses real estate locations and property characteristics as it seeks to combine optimal asset management strategies, timing and financial approaches based on investorsʼ needs, maintaining a strong conviction toward asset management that “realize the full potential of real estate.” The Company has formulated a mission statement that elucidates its commitment to real estate value creation: “Kenedix is dedicated to realizing the full potential of real estate.”

(2) Corporate Mission

Business Objective “For What?”
We contribute to society by making the best use of investment capital and creating value from real estate.
Business Field “For Whom?”
We offer the best investment opportunities to our clients by committing to multiple roles globally as a real estate asset manager.
Business Principle “How?”
We confront new business challenges through our management speed and flexibility while emphasizing stability and fairness.

(3) Long-term Vision

Kenedix Vision 2025:
Delivering Growth via the Kenedix Model
Goals for 2025: AUM of ¥4 trillion and an ROE of 15%

Kenedix Model

  1. Asset Management Business:
    Kenedix constantly provides client investors with high-grade investment opportunities and does not own real estate itself.
  2. Real Estate Related Business:
    Kenedix manages and operates real estate with the goal of increasing the value of funds managed by Kenedix Group companies.
  3. Real Estate Investment Business:
    Kenedix co-invests with client investors in funds managed by Kenedix Group companies.

This vision clearly expresses the “Kenedix Model.” Namely, “Kenedix does not own real estate directly. Properties are held by funds that are established and managed by the Kenedix Group.”
Our core strengths are the work with diverse business partners, “flexibility and creativity” in our management decisions, “innovation” in our approaches, the challenge of applying our “expertise” to create real estate value, and a high degree of “transparency” in our dissemination of information. The awareness of these strengths among our management and employees is the driving force behind the “Kenedix Model.”
Rather than using a business model based on obtaining leasing revenue earned on real estate holdings and achieving increases in real estate prices, the Company aims to increase assets under management (AUM) as the earnings base by providing better investment opportunities and robust asset management capabilities. In this manner, the Group aims to achieve our long-term vision.

II. Policies for Customer-Oriented Business Conduct

(1) A commitment to the best interests of customers

Based on our strong dedication to asset management that “realizes the full potential of real estate,” we will take actions sincerely and fairly, with adherence to the highest standards of business ethics and a consistent commitment to provision of excellent investment opportunities to client investors. Through these actions, we will aim at fostering a corporate culture defined by transparency, expertise, innovation and flexibility and creativity.

(2) Proper oversight of conflicts of interest

Based on a dedication to sound and fair business practices, we will accurately identify transactions between client investors and our related parties and conduct appropriate management in accordance with our Related-party Transaction Rules so as not to harm the interests of client investors. The objective is to ensure that business activities are done properly and transactions are performed fairly.

(3) Provision of clear information about fees and other important subjects

Based on a dedication to dissemination of information with a high degree of transparency, we will exercise care to supply important information about investment products and services, including the associated fees and other expenses, in a manner that is easy to understand for client investors.

(4) Provision of services that match customers’ needs

We are dedicated to providing investment products and services that match the goals, requirements, financial position, experience, knowledge and other characteristics of each client investor.

(5) Measures for the motivation of employees regarding compliance and the Kenedix Group Mission

Our goal is to achieve the growth of our customers’ earnings and our corporate value through the constant provision of outstanding services to client investors. One step to increase the motivation of our employees for this goal is the inclusion of compliance in the usual performance parameters used for their evaluations. Furthermore, daily operations, training programs and other activities give everyone at the Kenedix Group a thorough understanding of the Kenedix Group Mission.