All officers and employeThe ownership ratio in the total number of investmes of NBF and NBFM are to conduct corporate activities honestly and appropriately based on high ethical standards beyond mere compliance with laws and regulations.

While NBF sets forth in its "Rules of Board of Directors" that the Board of Directors shall hold a meeting at least once every three months, a meeting is actually held almost every month, the Executive Director reports on the status of business affairs, and the supervising and checking functions by the Supervisory Directors are ensured. The Board of Directors consists of one Executive Director, and three Supervisory Directors who are elected from among independent professionals such as lawyers, real estate appraisers and certified public accountants, etc.

Pursuant to the "Management Policies" setting forth its basic management philosophy, NBFM considers compliance to be an important issue in its management in order to increase trust from investors and all other related parties. In addition, NBFM, as an asset management company entrusted with asset management services, endeavors to properly manage assets under management by specifically defining norms, processes and strategies, etc. to be complied with, and completely discharges its fiduciary responsibilities.

NBFM considers "Compliance" not only as legal compliance but also as observing its internal rules and taking appropriate actions following social ethics and codes. As such, NBFM sets internal rules, such as "Code of Ethics" and "Compliance Rules" as concrete guidelines and rules. In addition, its Compliance Officer promotes company-wide compliance activities by planning and executing "Compliance Program" and training and awareness raising activities for all officers and employees.

NBFM sets forth in its "Compliance Rules" that when doubts concerning a breach of or conflict with laws, regulations or internal rules, etc. arise, its directors, officers and employees must immediately report the facts, background and methods of solution thereof, etc. to the compliance officer, and in the event it is judged that there are problems with the content of such report, the compliance officer must promptly report the same to the CEO, General Managers of the Investment & Finance Group as well as the Corporate Operations Group and discuss appropriate measures to be taken. Such events will also be referred to independent professionals as necessary for confirmation, and reported to the Compliance Committee and Board of Directors, as well as the Board of Directors of NBF.

In light of applicable laws and regulations or internal rules etc., if a compliance violation or an act deemed to be a compliance violation exits, the relevant director or officer will be subject to necessary measures pursuant to deliberation by the board of directors, and the relevant employee will be subject to a disposition under its work rules.

NBF and NBFM aim to evade and minimize risks in investment and management of its assets under management. For details please refer to "Investment Risks: Matters Concerning Risk Management System for Investment Risks.[1.4MB]"

Compensation of the Executive Director and the Supervisory Directors in the 37th Period (July 1 to December 31, 2019) is as follows.

The top 10 unitholders in terms of percentage of owned investment units in the total number of investment units issued and outstanding as of December 31, 2019 is as follows.

The ownership ratio in the total number of investment units issued and outstanding is rounded down to the nearest second decimal place.

The audit compensations, etc. of the Accounting Auditor in the 37th Period (July 1 to December 31, 2019) is as follows.