Basic Policy on Consolidation of Asset Management Functions of the Group

May 10, 2019

Resona Holdings, Inc.
Resona Bank, Limited
Resona Asset Management Co., Ltd.

Resona Holdings, Inc. (President: Kazuhiro Higashi, "Resona Holdings") hereby announces that it has resolved a basic policy of dividing asset management functions of Resona Bank, Limited (President: Kazuhiro Higashi, "Resona Bank"), a consolidated subsidiary of Resona Holdings, to transfer and consolidate them into Resona Asset Management Co., Ltd. (President: Akihiko Nishioka, "Resona Asset Management"), a consolidated subsidiary of Resona Holdings.

1. Purpose of Consolidation of Asset Management Functions

The Resona Group aims to deliver high-quality asset management services that facilitate medium- and long-term asset formation of a broad range of customers by leveraging one of the largest retail networks in Japan and extensive expertise handling diversified portfolios of long-term investments in global assets developed over many years in the field of pension management.

To such ends, we will consolidate asset management resources into Resona Asset Manegement with the aim of strengthening the asset-management capability. The Group also intends to establish a system to provide retail clients with high-quality asset management services, previously offered for institutional investors.

We will make efforts to enhance the quality and line-up of investment products and to give existing and new clients opportunities of enjoying high-quality investment services.

[Overview of the Consolidation]

1. (1)Functions of managing trust assets at the Resona Group will be consolidated by separating the asset management business of Asset Management Division, Resona Bank, which primarily manages assets of institutional investors, and transferring the business to Resona Asset Management, which manages retail assets.
2. (2)Resona Bank continues to take responsibility for clients support services for institutional investors, to consistently provide solutions suitable for real needs of them.
3. (3)The Resona Group aims to complete consolidation of the asset management functions in January 2020 on the assumption of applications to be filed with and approvals to be obtained from relevant regulatory authorities following detailed studies and consultation.

2. Asset Formation Support Service Resona Group Aims For

The Resona Group has delivered carefully selected "asset management services truly needed by our clients" in the pension business. The to-be-strengthened Resona Asset Management following the consolidation is committed to discharging fiduciary duties by enhancing the business conduct system including further improved asset management capability, more active stewardship activities and strengthened governance as an asset manager.

We also aim to become a service provider many customers can feel the best peace of mind with, to the extent that they see us "when it comes to consultation for asset formation, or entrusting asset management, no one is better than Resona," by leveraging one of the largest retail networks in Japan, providing direct access to quality diversified portfolios of long-term global investment to individual customers, and make continuous efforts to realize solid investment results.

We are determined to proactively address the needs for solutions to social challenges, specifically the increasing financial concerns over future lives, by not only enhancing services for customers of public pension and corporate pension, our existing main markets, but also strengthening retail asset management services for individual customers.

[Summary of the Parties](As of March 30, 2019)