Our Efforts
toward Customers

（1）Implementing customer-oriented consultation and provision of information

• ・Mitsubishi UFJ Morgan Stanley Securities seeks to understand customers’ asset management needs accurately and to provide information aligned to their intentions and circumstances.
• ・We will endeavor to make recommendations appropriate to individual customers’ lifestyles, future goals, asset status and other factors rather than adopting a uniform manner as a Professional, so that all customers, regardless of their age or investment experience, can feel confident about our assistance.
• ・We will provide follow-up support and investment status reports and other information in line with customer needs.

（2）Providing detailed information tailored to customers’ level of understanding

• ・Based on the customer's knowledge and experience, we will provide information that is easy to understand for older customers and customers with little investment experience.
  For explanations of product features, risks, commissions, etc., we will use important information sheets (individual product portions) and strive to provide explanations that will provide a solid understanding while making comparisons between products. To encourage customers to make investment decisions from a broader perspective, we have established rules for comparative explanations for products, proposal and follow-up. We have developed support tools. We will continue to enhance these rules and tools.
• ・We will continue to support our customers in providing "Risk-Oriented Portfolios*" and present portfolio analyses and model portfolios in an effort to explain them using easy-to-understand proposal tools and materials.
• ・Products are ranked according to the risk characteristics, such as price fluctuations, and the Company solicits and sells products that meet customers' risk tolerance, etc. In particular, for complex or high-risk products, we determine whether or not to commence solicitation by establishing standards for each product category, including customers' understanding of products such as age and investment experience. For some products, we have established a system in which only highly skilled personnel can provide explanations, so that we can explain them more carefully.
*Risk-Oriented Portfolio: Optimal Portfolio within the Customer's Risk appetite

（3）Improvement of transparency of fees so as to contribute to customers’ investment judgment

• ・To increase transparency concerning fees and charges on individual products and assist customers’ investment decision-making, we will provide Key Information Sheets on individual products (major brands of investment trusts, structured bonds, foreign currency denominated insurance, wraps) for easier understanding of fees and other important matters, at the same time giving careful explanations of the information presented.
• ・In the Key Information Sheets, from the three perspectives, we will disclose costs to be paid at the time of purchase, costs to be paid on an ongoing basis, and costs according to investment results. The Key Information Sheets can be used for comparison with similar products.
• ・In addition, we have started disclosing the upper limit of the commission rate (consideration for sales services) for plane bonds.

（4）Development of a performance evaluation system that reflects customer-oriented undertakings

• ・It is an evaluation system that promotes the provision of comprehensive advice and solutions to meet the interests and needs of customers.
• ・We aim to achieve sustainable growth in line with our customers by establishing a system that evaluates the expansion of assets under custody, mainly as a certificate of trust, and our ability to respond to customer needs (demonstrating our expertise as a professional).
• ・Our performance evaluation system is designed to appreciate the activities to pursuit the best interest of customers.
• ・We are working to raise awareness of customer-oriented policies and initiatives not only among our customers (officers and employees), but also among headquarters staff (officers and employees), and to foster a company-wide awareness.

（5）Initiatives of investment education

Mitsubishi UFJ Morgan Stanley Securities will focus on creating an environment that feels accessible to a wide range of customers and on broadening the overall base of investors.
• ・Enhancement of website content
• ・Provision of investment brochures and other information to customers
• ・Provision of online videos and seminars for customers
• ・Expansion of educational activities concerning finance and economics

（1）Provision of line of products to meet diverse needs

• ・We will develop a broad and high-quality product lineup to realize asset management in line with the investment objectives and risk tolerance of each customer.
• ・We offer a lineup of products with low risk and low commissions, and offer a lineup of products that is easy for as many customers as possible, including customers with little investment experience. In addition, we are working to improve the convenience of Internet trading and savings-type transactions and to create an environment that is easy for customers of a wide range of age groups to use.
• ・As customer needs diversify, we are expanding and providing a variety of solutions in addition to asset management.

（2）Selection of products that contribute to customers’ asset building and provision of sales procedures

• ・We will solicit many product ideas from a variety of investment management companies, insurance companies, etc., and select products and services that benefit customers while utilizing the assessments of external evaluation organizations as necessary. In addition, we are implementing the following initiatives to prioritize the products of affiliated management companies at the time of product selection and resumption, to prioritize products other than affiliated management companies at the time of suspension, suspension or discontinuation, and to avoid prioritizing the products of affiliated management companies at the time of sale and recommending only products with high sales commissions.

Selection, suspension, suspension, abolish, and resumption of products

The products we handle are selected from among the same type of product groups, taking into account the following "selection points."
Product selection is also carried out through meetings involving the Compliance Department. In the future, we will further reflect the opinions of our customers in our product selection and other efforts.

Selection points
1. Risk associated with commodities
2. Expenses
3. Operational performance
4. Consistency with the needs and fit of anticipated sales customers and the investment environment
5. Complexity of the system, difficulty of explaining products, and sales channels
6. Educational support system for executives and employees of sales companies by investment management companies
7. Legality of related laws and regulations

Time of sale

We do not provide excessive incentives for the products handled by affiliated management companies in order to provide information on the optimal products that meet customer needs. In addition, in the evaluation of officers and employees, the Company does not make sales of products of affiliated management companies more advantageous than similar products of non-affiliated management companies. At the same time, the Risk Management Department regularly monitors customers by utilizing AI and other means to ensure that proposals are not made not in line with customer preferences, such as focusing on sales of products with high commissions, and maintains appropriate proposal-making activities for customers.