Risk of losses, etc.

The products handled and services provided by MJIA are broad-ranging and diverse. The amounts of fees, remuneration, and various expenses, etc. (hereinafter, "fees etc."), and the method of their calculation, cannot be indicated in advance because it is necessary to set fees, etc., and amounts individually, depending on the type of product, the type of service conducted by the company, the duration of the contract, and various other factors.

• * Customers are provided in advance with written information on fees, etc., connected with individual products and services of MJIA. Please check this information.
• * Changes in financial markets and real estate markets can directly or indirectly affect the profitability and capital value of products handled by MJIA, thus causing losses. This can happen when rising interest rates make it more expensive to raise capital, thereby reducing profitability, for example, or when falling rents or land prices reduce profitability and capital value. Products handled by MJIA may also be affected by other risk factors, e.g. natural disasters and force majeure can cause indices to fall, property defects can generate losses, and changes in the tax system can result in higher fees and taxes.
• * In addition, due to contractual relationships pertaining to a product, or due to a product's design, the possibility exists that changes in the aforementioned indices could directly or indirectly affect profitability or capital value, and in some cases there could be losses in excess of the original capital.
• * Customers are provided in advance with written information on risks connected with individual products. Please check this information.
• * If you intend to enter into a contract regarding a product or service provided by MJIA, the company will provide a written copy of the contract for your inspection. We urge you read through it carefully.

The expiration date in the professional investor system

Article 34-3, paragraph 2, subparagraph 2 of The Financial Instruments and Exchange Act requires a company to set an expiration date for its professional investor system. The expiration date for MJIA's system is shown below.

Expiration date: September 30 each year

The Financial Instruments and Exchange Act, which entered into force on September 30, 2007, introduces a "professional investor system," in which a distinction is made between "professional investors" and "customers other than professional investors" (hereinafter, "retail investors").

Under the professional investor system, when the customer is a professional investor, MJIA is exempted from certain requirements regarding documents that a financial services firm must otherwise deliver to the customer prior to conclusion of contract.^*1

A customer that falls under category (2) or (3) in the Investor Categories table below may switch between "professional investor" and "retail investor" status, and do so separately for each type of contract^*2 by completing the required application procedures, provided that MJIA approves.

For a customer falling under category (3) in the Investor Categories table that switches to professional investor status, duration of that status is in principle one year, but MJIA only recognizes the status through the first September 30 following the switch. The customer's status automatically reverts to retail investor status from the day following the expiration date, so a customer that wishes to renew must complete the necessary procedures. After switching to professional investor status, a customer may still later apply to be treated as a retail investor.

Investor Categories

A customer falling under category (2) in the Investor Categories table that switches to retail investor status may request at any time to switch back to professional investor status for certain types of contracts.^*3 The switch back to professional investor status will take place once the required application procedures have been complete and MJIA has granted approval. A customer that does not complete the aforementioned procedures will continue to be treated as a retail investor for the purposes of the contract in question.

1. *1 A customer with professional investor status is exempt from all the provisions of Article 45 of the Financial Instruments and Exchange Act.
2. *2 This refers to the contract types as defined in Cabinet Office Ordinance No. 53 on Financial Instruments Business, etc.
3. *3 This refers to the Subject Contract set out in Article 34-2, paragraph 2 of the Financial Instruments and Exchange Act.

Complaint handling and dispute resolution measures adopted in accordance with
the provisions of the Financial Instruments and Exchange Act

MJIA has adopted the following measures for the handling and resolution of complaints and disputes subject to the provisions of the Financial Instruments and Exchange Act. Different measures have been adopted separately for each of the company's registered services.

1. (1) Investment services provided on the basis of an asset investment contract

   Acting in accordance with the provisions of the Financial Instruments and Exchange Act, the Investment Trusts Association of Japan carries out complaint handling and mediation procedures for complaints and disputes that arise in connection with financial product translations, etc.

2. (2) Investment services, investment advice, and agent services provided on the basis of a discretionary investment services contract

   Acting in accordance with the provisions of the Financial Instruments and Exchange Act, the Japan Investment Advisers Association carries out complaint resolution and mediation procedures for complaints and disputes that arise in connection with financial product transactions, etc.

3. (3) Transactions in type 2 financial products

   Acting in accordance with the provisions of the Financial Instruments and Exchange Act, the Financial Instruments Mediation Assistance Center carries out complaint resolution and mediation procedures for complaints and disputes that arise in connection with financial product transactions, etc. Also, when a complaint handling or mediation procedure handled by the Japan Investment Advisers Association escalates to the level of a dispute, said Association may refer the matter to the Financial Instruments Mediation Assistance Center, so the contact windows for the matters set out items (1), (2), and (3) above are as set out below.

   Financial Instruments Mediation Assistance Center (FINMAC)
   Tel: 0120-64-5005 (toll-free in Japan only)
   Hours: Mon. – Fri., 9:00 a.m. – 5:00 p.m.
   (Not open on holidays, makeup holidays, or during the period of Dec. 31 to Jan 3.)