Information about fees, risks, etc.

Discretionary investment management and Investment advisory agreements

A discretionary investment management agreement is an agreement in which Mitsubishi UFJ Trust and Banking Corporation ("MUTB"), Mitsubishi UFJ Asset Management ("MUAM"), Mitsubishi UFJ Real Estate Asset Management ("MUREAM"), or Mitsubishi UFJ Alternative Investments ("MUAlts") manages the customers' assets by exercising the authority entrusted by the customers that is necessary for making all or a part of the investment decisions based on the analysis of the value, etc. of financial products. An investment advisory agreement is an agreement in which MUTB, MUAM, MUREAM or MUAlts provides advices to customers on the value, etc. of securities or investment decisions based on analysis of the value, etc. of financial products.

Fees, etc.

With respect to discretionary investment management and investment advisory agreements executed by MUTB, MUAM, MUREAM or MUAlts with the customers, the customers shall directly or indirectly bear the fees, etc. (remuneration, fees and costs for the discretionary investment management and investment advisory, and other remuneration, fees and costs incurred with respect to investment of assets) prescribed in each agreement, etc. The specific amount of such fees, etc. (amount for each type and total amount, or upper limits thereof) and the method of calculation thereof cannot be disclosed in advance because the discretionary investment management and investment advisory services provided to the customers and the customers' investment assets are determined individually in consideration of the customers' requests, and such amount and method are determined in accordance with the relevant services and investment assets.

Security Deposits, etc.

None of MUTB, MUAM, MUREAM or MUAlts requires the customers to make a security deposits, etc. at the time of entering into the discretionary investment management or investment advisory agreement; however, when entering into derivative transactions in the course of (i) the investment management by MUTB, MUAM, MUREAM or MUAlts as investment manager acting on behalf of the customers , MUTB, MUAM, MUREAM or MUAlts may be required to make a security deposit, etc. with the counterparty of such transactions and (ii) the investment by the customers under investment advice by MUTB, MUAM, MUREAM or MUAlts to enter into derivative transactions, the customers may be required to make a security deposit, etc. with the counterparty of such transactions. The specific amounts of such security deposit, etc. and its ratio to the amounts of the transaction cannot be disclosed in advance because such amounts and methods of calculation are determined with the counterparty of such transaction.

Risks

With respect to derivative transactions, as the MUTB, MUAM, MUREAM or MUAlts may enter into a large amount of transactions which can be carried with making small amounts of security deposits, etc., there is a possibility of a loss exceeding the amount of the security deposits, etc. depending on the market conditions.

Furthermore, with regard to the financial products related to the currency overlay management, there is risk of a loss exceeding the investment principal and the aggregate market value of the investment asset being negative, depending on the level of currency price fluctuations.

Investment assets under discretionary investment management and investment advisory agreements executed by MUTB, MUAM, MUREAM or MUAlts with the customers, may suffer losses due to fluctuations in the price and appraised value by factors such as fluctuations in prices or liquidity of stock and bonds, etc., interest rate levels, exchange rates and other fluctuations, as well as changes in the business or financial condition of the issuers of securities, etc., and the total market value of such investment assets may fall below the investment principal.

Others

The "written cancellation (cooling off)" under Article 37-6 of the Financial Instruments and Exchange Act of Japan shall not apply to discretionary investment agreements. On the other hand, the "written cancellation (cooling off)" under Article 37-6 of the Financial Instruments and Exchange Act shall apply to investment advisory agreements, if the relevant customers are non-professional investors.

Depending on the investment assets, there may be restrictions, etc. on the exercise of rights or the period for termination.

Investment trusts and other fund products

Fees, etc.

With respect to investment trusts and other fund products handled by MUTB, MUAM, MUREAM or MUAlts, the customers shall directly or indirectly bear the fees etc. (purchase fees, asset management costs, performance fees, audit fees, commissions upon sale/purchase of securities, custody fees for the underlying assets and other remuneration, fees and costs, and partial redemption charges, etc.) prescribed in each agreement, etc. The specific amount of such fees, etc. (amount for each type and total amount, or upper limits thereof) and the methods of calculation thereof cannot be disclosed in advance because such amount and method differ depending on each products or amount applied for, etc.

Risks

Investment trusts and other fund products handled by MUTB, MUAM, MUREAM or MUAlts are invested in securities such as foreign and domestic stocks, bonds and other assets with fluctuating prices; accordingly, the base prices of the investment trusts and the prices of other fund interests fluctuate (the factors underlying base price fluctuations include price change risks, credit risks, liquidity risks, and foreign currency risks, etc.). As a result, the amount received by the investors may fall below the investment principal.

Others

The "written cancellation (cooling off)" under Article 37-6 of the Financial Instruments and Exchange Act of Japan shall not apply to investment trusts and other fund products handled by MUTB, MUAM, MUREAM or MUAlts.

The investment trusts and other fund products handled by MUTB, MUAM, MUREAM or MUAlts are not covered by the deposit insurance or investor protection funds.

Depending on the investment trusts, commissions for redemption are applicable for a certain period of time, a redemption before maturity during the term of the trust is restricted, or a redemption is possible only on a specific date. Similar restrictions on the redemption may be applicable to other fund products.

For details, please refer to the latest explanatory materials (prospectus for delivery) and sale documents, etc. for the investment trust and other fund product.

Trust agreements

Under the trust agreements to be executed by MUTB with the customers, MUTB as trustee invests into and manages stocks and bonds, etc. and other investment assets for the benefit of the customers.

Fees, etc.

With respect to trust agreements executed by MUTB with the customers, the customers shall directly or indirectly bear the fees, etc. (trust remuneration, cancellation fees and other fees, other fees required for management of trust assets, etc., and partial redemption charges, etc.) prescribed in each agreement, etc. The specific amount of such fees, etc. (amount for each type and total amount, or upper limits thereof) and the methods of calculation thereof cannot be disclosed in advance because the trust services provided to the customers and the customers' investment assets are determined individually in consideration of the customers' request, and such amount and method are determined in accordance with the relevant services and investment assets.

Risks

Investment assets under trust agreements executed by MUTB with the customers may suffer losses due to fluctuations in the price and appraised value by factors such as prices and liquidity of stocks and bonds, etc., interest rate levels, exchange rates and other fluctuations, as well as changes in the business or financial condition of the issuers of stocks and bonds, etc., and the total market value of the trust assets may fall below the trust principal. Furthermore, with regard to the financial products related to the currency overlay management, there is risk of a loss exceeding the trust principal and the aggregate market value of the trust asset being negative, depending on the level of currency price fluctuations.

Others

Depending on the investment assets, there may be restrictions, etc. on the liquidity, the exercise of rights or the period for termination.