Mizuho Financial : Announcement of the Progress Report on FY2021 Action Plan Initiatives and FY2022 Action Plan related to fiduciary duties(PDF/6,608KB)

June 30, 2022

Mizuho Financial Group, Inc., Ltd.

Announcement of the Progress Report on FY2021 Action Plan Initiatives and FY2022

Action Plan related to fiduciary duties

Mizuho Financial Group, Inc. (President & Group CEO: Masahiro Kihara; "MHFG") has established and announced our Policies Regarding Mizuho's Fiduciary Duties1 ("Policies"), with consideration to our customer-focused approach as part of the values and standards of behavior that all Mizuho employees and executive officers should uphold under Mizuho's Corporate Identity, and in order to fulfill our fiduciary duties2 which relate to the conduct of our asset management-related business.

Based on these Policies, MHFG and our group companies have released the attached Progress Report on the FY2021 Action Plan Initiatives and the FY2022 Action Plan.3

In FY2021, we took the initiative in implementing new measures such as consolidating trust fee rates for index mutual funds linked to the same index for face-to-face transactions, reducing fees and disclosing the breakdown of fees for certain types of fund wraps, and introducing material information sheets for individual products.

Mizuho will continue to provide products and services that are useful to our customers in a courteous manner tailored to each customer by working as a group to continue to be the most-trusted financial group as a mid- to long-term partner.

1. Policies Regarding Mizuho's Fiduciary Duties https://www.mizuhogroup.com/binaries/content/assets/pdf/mizuhoglobal/news/2017/0 3/20170330_2release_jp_1-1.pdf
2. Fiduciary duties is a general term for the broad range of roles and responsibilities that fiduciaries are expected to fulfill when engaging in certain business activities in order to live up to the trust that is placed in them by their customers.
3. Ahead of this announcement, we held the Eighth Meeting of the Fiduciary Duty Advisory Committee and invited the following external experts to serve as advisors.

Panel of external experts (in alphabetical order by surname)

Name	Post
Hideki Kanda	Professor, Graduate School of Law, Gakushuin University;
Professor Emeritus, University of Tokyo
	General Manager, Investment Trust Business Department,
Tadashi Oka	Investment Evaluation Division, Rating and Investment
	Information, Inc.

Initiatives regarding Mizuho's fiduciary duties

June 2022

Copyright (c) Mizuho Financial Group, Inc. All Rights Reserved.

Contents

	Mizuho's fiduciary duties	P3				FY2021 progress and key performance indicators (KPIs): Asset administration	P37
	1.	Policies and action plans		1.	Strengthening framework for offering asset administration services
	2.	Our goal and key performance indicators (KPIs)
							FY2021 progress and key performance indicators (KPIs):
	FY2021 progress and key performance indicators (KPIs): Sales	P5				Group management policies	P38
	1.	Group-based consulting framework		1.	Evaluating performance
	2.	Process of selecting investment trust products		2.	Reasonabiilty of remuneration and conflict of interest monitoring
	3.	Investment trust monitoring and review		3.	Enhancing corporate culture
	4.	Consulting services at Mizuho
	5.	Provision of important information					FY2022 action plans	P42
	6.	Providing information on fees		1.	Sales
	7.	Follow-up and monitoring		2.	Asset management / product development
	8.	Serving older customers		3.	Asset administration
	9.	Information and seminars		4.	Group management policies

1. Personnel development
2. Customer evaluations

12.	External assessments			KPI Data
13.	Balance of investment products			Key performance indicators (KPIs) index	P2
14. Status of customer assets	1.	KPI summary
		2.	Common KPIs

FY2021 progress and key performance indicators (KPIs):
Asset management / product development	P29

1. More sophisticated asset management
2. Development and improvement of investment products
3. Provision of easy-to-understand information on management and other fees
4. Provision of information and services
5. Governance framework
6. Third-partyevaluation
7. Assets under management

The initiatives listed at the top of each page correspond to the Policies Regarding Mizuho's Fiduciary Duties

The principles listed at the bottom of each page correspond to the Principles for Customer-Oriented Business Conduct of Japan's Financial Services Agency.

The following abbreviations are used for major group companies.
Mizuho Financial Group, Inc.		Mizuho Securities Co., Ltd.
FG	SC
Mizuho Bank, Ltd.		Asset Management One Co., Ltd.
BK	One
Mizuho Trust & Banking Co., Ltd.
TB

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Mizuho's fiduciary duties	1. Policies and action plans

Our policies

We have released Policies Regarding Mizuho's Fiduciary Duties1 ("the Policies") as group-wide policies which ensure that through our asset management-related businesses we offer products and services that are in the best interest of our customers and that we continue to be our customers' most trusted financial services partner and long-term partner.

Policies Regarding Mizuho's Fiduciary Duties

https://www.mizuhogroup.com/binaries/content/assets/pdf/mizuhoglobal/news/2017/03/20170330_2release_jp_1-1.pdf

1. Fiduciary duties is a general term for the broad range of roles and responsibilities that fiduciaries are expected to fulfill when engaging in certain business activities in order to live up to the trust that is placed in them by their customers.

Our action plans

Mizuho's holding companies and group companies have established and released their own action plans according to their respective functions.

Major group companies that have established and released action plans	The terms in parentheses are abbreviated
names of group companies.
	Functions
Sales	Asset management / product	Asset administration
development
Mizuho Bank, Ltd. (BK)

Mizuho Trust & Banking Co., Ltd. (TB)

Mizuho Securities Co., Ltd. (SC)

Asset Management One Co., Ltd. (AM-One)

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Mizuho's fiduciary duties	2. Our goal and key performance indicators (KPIs)

Our goal is to create shared value between customers and Mizuho

• Through fulfilling our fiduciary duties, Mizuho aims to ensure a high level of customer satisfaction and to earn the trust of customers by increasing their financial assets in the medium to long term.
• At the same time, by expanding our business base and establishing a brand built on customer satisfaction and trust, we aim to create shared value with our customers that will also lead to medium- to long-term growth for Mizuho, which will allow us to further enhance the level of customer service we provide.

Fulfilling our fiduciary duties		Positive and trustworthy public image			Results
Mizuho		Customers			Mizuho
		Increase in financial assets
				Medium- to long-term growth
Providing optimal financial products and services to		over the medium to long term
customers			Creating
		shared
Pursuing our customers' best interests
		value

Enhancing customer satisfaction and trust	Expanding customer base and
strengthening our brand

Key performance indicators (KPIs)2

• Key performance indicators (KPIs) for fiduciary duties are reviewed regularly and updated as necessary in order to create shared value between customers and Mizuho.

• Number of personnel with professional qualifications
• Number of funds with a rating of 4 stars or higher
• Number of companies involved in our engagement

	activities		Customer satisfaction surveys
	Number of publicly offered investment trusts in different	 Number of funds which have received awards
	balance ranges		Survey of satisfaction among investment trust
	Average balance per publicly offered investment trust		companies

• Number of website views
• Number of participants enrolled in financial education courses

• Balance of assets under management from investment products
• Number of customers using our investment products
• Ratio of customers receiving different percentage ranges of returns for investment trusts
• Average holding period for publicly offered investment trusts
• Balance of funds in publicly-offered and privately placed investment trusts
• Balance of asset formation-focused products
• Balance of pension trust assets
• Balance of publicly offered investment trusts under administration

2. In addition to the Key Performance Indicators listed above, the following common KPIs have also been released.

1. Customer ratio by investment profit/loss from investment trust funds/fund wraps, (2) Cost vs. return of the best-selling investment products in terms of the balance of investment trust assets under management, (3)

Common KPIs	Risk vs. return of the best-selling investment products in terms of the balance of investment trust assets under management, (4) Customer ratio by investment performance of the foreign currency-denominated
insurance products (5) Cost vs. return of the foreign currency-denominated insurance products
	Common KPIs are indicators based on the "Common Key Performance Indicators (KPIs) Comparable Across Investment Trust Distributors" published by Japan's Financial Services Agency in June 2018 and the "Common Key Performance Indicators (KPIs) Comparable Across
	Foreign Currency-denominated Insurance Distributors by Japan's Financial Services Agency" in January 2022.

Principle 2 (including notes)

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