T&D Asset Management Co., Ltd.

Performance and Operational Review

T&D Asset Management conducts investment trust business under which it sells investment trusts to investors through banks and securities companies, and investment advisory business under which it concludes investment advisory agreements and advisory services, and manages the funds of pension funds and institutional investors.

In fiscal 2014, the assets under management of T&D Asset Management's investment trust business decreased to ¥731.3 billion from ¥937.3 billion as of March 31, 2014. This mainly reflected the significant decrease in private placement investment trust for the variable annuities of T&D Life Group's life insurance company due to redemption. The assets under management of investment advisory business also decreased slightly to ¥995.2 billion from ¥992.2 billion as of March 31, 2014.

On the earnings front, adjusted operating income was down 12.7% year on year to ¥2.9 billion. This was in line with lower operating revenues from investment trusts. Net income was down 78.4% year on year, despite the company's effort to conduct efficient business operations and contain costs.

Asset Management Market in Japan

Future Growth

T&D Asset Management commenced business through the investment of life insurance assets as the T&D Life Group's asset management company. However, income from nongroup customers such as pension funds and institutional investors, along with individual investors, now accounts for 70% of the company's adjusted operating income.

Looking ahead, T&D Asset Management will continue to position the investment trust business and investment advisory business as its two core operations and aim to become a trusted asset management company in the eyes of customers by implementing thorough measures to enhance the quality of investment products and services.

T&D Asset Management's Adjusted Operating Income (By customer)

T&D Asset Management's Adjusted Operating Income (By market)

Investment Trust Business

T&D Asset Management sees further growth potential in the investment trust business.

Taking full advantage of its status as an asset manager independent of any securities or banking group, T&D Asset Management will provide investment trusts through a broad range of sales companies.

Through the strategic allocation of business resources, T&D Asset Management will further strengthen its organization to develop and offer outstanding investment products tailored to customer needs in a timely manner. At the same time, the company will upgrade its information provision capabilities for customers to inform the features and risks involved in the products in an easy-to-understand manner.

Investment Advisory Business (Domestic and Overseas Pension Funds and Institutional Investors)

The business environment of the pension market remains challenging as it is in a period of major transformation facing the implementation of changes in Japan's pension system and accounting system. T&D Asset Management is aiming to win a long-term trust by remaining strongly committed to providing suitable solutions to customers with a variety of challenges.

The company is also actively offering its distinctive asset management capabilities to domestic and foreign institutional investors.