ABOUT US
To provide financial products in the best interests of investors throughout the structuring and distribution process, NREAM has established the Policy on Product Governance.
Under management's leadership, NREAM clarifies its philosophy of providing investors with opportunities to invest in better financial products and deliver added value, and is committed to establishing and implementing appropriate governance.
Through these efforts, NREAM is committed to also ensuring the sustainability of its management.
Based on its Basic Philosophy (Supplementary Principle 1), NREAM has established a product governance framework covering the entire lifecycle of financial products and services, as well as quality control frameworks for each process of product structuring, distribution, and management. To ensure the effectiveness of these frameworks, NREAM is committed to conducting reviews if needed.
Initiatives Related to the Establishment of a Product Governance Framework In structuring financial products, NREAM appropriately identifies investors' genuine needs and designs products that comprehensively consider the reasonableness of risks, returns, and costs.
Moreover, to pursue the best interests of investors, NREAM defines an appropriate target investor for each financial product. When the distribution of financial products is outsourced to third parties, NREAM is committed to working closely and cooperatively with the financial institutions involved in sales to provide accurate and appropriate information, thereby enabling investors to fully understand the features and characteristics of the products.
With respect to the financial products it has structured, NREAM continuously verifies that the product features defined at the time of structuring are maintained and flexibly reviews operational plans as necessary.
In addition, where sales are conducted directly, or where sales are outsourced to third parties, NREAM is committed to obtaining investors’ feedback during the investment period, either directly or through cooperation and collaboration with the financial institutions involved in sales, and utilizing such feedback, as appropriate, to improve operational plans and to inform the structuring of future financial products, as well as the review of our product governance framework.
To enable investors to select more suitable financial products, NREAM is committed to providing clear, understandable information on its asset management and product governance frameworks.
Initiatives Related to Clear and Understandable Information Disclosure to InvestorsEnacted December 18, 2025
Guided by our purpose of “Creating a stage where people can flourish and enrich their lives,” NREAM places importance on achieving both societal sustainability and the sustainability of our company management, and on pursuing the best interests of our customers, while embodying our values of Visionary, Professionalism, and Fairness.
Based on this philosophy, we aim to provide financial products that meet the investment needs of investors, as well as high-value-added services, by organically leveraging the resources we have developed through many years of investment management, including our expertise, know-how, and networks, together with the comprehensive strengths of the Nomura Real Estate Group as an integrated developer.
To realize these objectives, NREAM has established and is implementing a practical product governance framework, including the appropriate management of conflict-of-interest transactions with the Nomura Real Estate Group and other related parties.
NREAM clarifies the roles, authorities, and scopes of responsibility for each business function corresponding to the respective processes from product structuring through operation. To ensure appropriate business quality, we have established various internal rules and operational manuals, and we review them in a timely and proper manner.
For important investment decisions and other material matters, NREAM has established a framework for appropriate decision-making in accordance with its prescribed decision-making processes. Under this framework, matters are deliberated by the Board of Directors and the Investment Committee, and, where essential transactions with related parties are involved, by the Compliance Committee (including external experts), among other relevant bodies.
Furthermore, the internal audit function verifies the effectiveness of internal controls at each process and requests improvements from the relevant departments, thereby ensuring the effectiveness of NREAM’s product governance framework.
Listed REITs are primarily intended for a broad range of investors, including general investors, who seek stable medium- to long-term returns, while private REITs are mainly targeted at qualified institutional investors with similar investment objectives focused on stable medium- to long-term returns.
In addition, private funds are, in principle, targeted at professional investors, as their underlying assets, investment objectives, and risk-return characteristics vary widely. The target investors for such funds are determined on a case-by-case basis, based on the characteristics of each financial product.
NREAM strives to understand the genuine needs of investors through direct dialogue with investors and exchanges of views with financial institutions involved in sales.
In structuring financial products, we conduct a reasonable assessment of risks, returns, and costs based on thorough due diligence of the underlying real estate and other assets, and deliberate at the Board of Directors and the Investment Committee whether such products are aligned with the genuine needs of investors.
NREAM continuously compares and verifies the business plans formulated at the time of structuring with actual operational performance and, taking into account current trends and outlooks in the financial and real estate markets, reviews such business plans as necessary from the perspective of risk, return, and cost reasonableness.
In addition, feedback obtained from investors through direct dialogue with investors and exchanges of views with financial institutions involved in sales is, after appropriate examination, utilized as necessary to improve the operational plans of financial products under management, as well as to inform the structuring of future financial products and the review of NREAM's product governance framework.
Incidentally, NREAM does not currently outsource its asset management operations.
NREAM discloses its operations and product governance framework on its website.
Operations:https://www.nre-am.co.jp/business/
Product Governance Policy:https://www.nre-am.co.jp/english/company/productgovernance.html
In addition, the websites and disclosure materials of the listed REIT (Nomura Real Estate Master Fund, Inc.) and the private REIT (Nomura Real Estate Private REIT, Inc.) provide information on their asset management frameworks, investment policies, investment performance, and other relevant matters.
Nomura Real Estate Master Fund, Inc. website:https://www.nre-mf.co.jp/
Nomura Real Estate Private REIT, Inc. (Private REIT) website:https://nre-pr.co.jp/