Chairman's message (15 April 2015)

(Tentative translation)

15 April 2015

Hitoshi Tsunekage

Chairman of the Trust Companies Association of Japan
President, Sumitomo Mitsui Trust Bank, Limited

Trust Companies Association of Japan was established in 1926. Next January we will celebrate the 90th anniversary.

This is the time for us to go back to the origin of trusts, intelligence to “use the assets”. In addition, it is also necessary for us to contribute to the Economy and Society by making the most use of the trust function and consequently to increase the presence of trusts.

1.Contributing to the Economy and Society by further utilization the Trust Function

（1）Creation of new trust products

“Qualified Educational Fund Giving Trusts” have been well received in the market since the introduction under the FY2013 tax reform so that the cumulative number of contract is now over 100 thousand. Under the FY2015 tax reform, the period of tax exemption is extended and the simplification of business processing is realized to improve users’ convenience.

“Marriage and Childcare fund Trusts”, introduced under FY2015 tax reform, is start to managed on this April. This new product is expected to contribute not only to preventing the decline in birthrate but also to revitalizing regional economies facing the issue of population decrease. We will focus on the activities to enhance and publicize “Marriage and Childcare fund Trusts” as well as “Qualified Educational Fund Giving Trusts”

We, as the member of the trust business industry, shall rack our brains to create and provide new services and products in accordance with necessities in the ages and social needs, such as supporting further initiatives for regional revitalization and social contribution.

（2）Contribution to enhancing corporate governance

Trust bank, as the institutional investor, is fully engage in stewardship activities, which is one of two wheel of a cart in enhancing corporate governance.

With a sense of the responsibility and an awareness of role, we will contribute to enhancing Japan’s Earning Power through promoting dialogue with companies.

（3）Partnership with Asian countries

We will strengthen cooperative relationships in trust with Asian countries with a view to sharing the fruit of growth. We will exchange and research to promote mutual understanding with the aim of enhancing and/or publicizing Japanese trust system.

2.Further awareness of “fiduciary spirit”

Trusts are a system based on that trustee should act in a higher and long term faith in the interest of their settlor and/or beneficiaries. Higher ethics and expertise are essential for trustee itself.

Completely client oriented operation with “the highest degree of truthfulness and loyalty”, dedication and development with frontier spirit are the major elements embodied in “fiduciary spirit”, which is bound by higher ethics and expertise.

It's no exaggeration to say that further awareness of “fiduciary spirit” is required not for trust industry but for whole financial industry.

We, as bearers of trust, the first originator of trust system, strive to fulfill client expectation so that we will widely spread the idea of trust.

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