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Feature on Assistance for Developing Countries

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Supporting Developing Country Infrastructure Improvements through Financial Services

Donation of a Portion of Trust Fees to Organization Working to Improve Developing Country Infrastructure

In developing countries, there are countless areas where the achievement of economic independence is being hindered by a lack of infrastructure like water and sewage systems, road and transportation systems, schools, and port facilities. Many of these areas are also facing challenges from poverty, diseases like HIV and malaria, rampant crime, and other serious social problems. To help address these problems, an increasing number of companies in developed countries are supporting school construction and pursuing other initiatives as CSR activities.

For its part, MHSC has begun to support the improvement of infrastructure in developing countries through its core business operations. It is doing this based on the idea that financial services should benefit not only customers but society at large. In more specific terms, MHSC donates a portion of the trust fees it receives from the beneficiaries of stock investment trusts that have invested in the shares of companies that own road, airport, port, or other infrastructure assets. Donations are made to organization working to improve infrastructure in developing countries.

Investing in Pure Infrastructure Companies Promising Long–Term Growth

The companies in which our equity investment trusts invest are "pure infrastructure companies" that either own or operate infrastructure assets. Given factors like the demand for new infrastructure, especially energy infrastructure, in emerging economies and the growing demand for the repair of existing infrastructure in developed countries, pure infrastructure companies promise continuous long–term growth. Their operations are characterized by stable revenues and predictable long–term cash flows. And whereas infrastructure assets have traditionally been held by governments in most countries, moves toward privatization in countries facing fiscal difficulties have encouraged investors throughout the world to look at the growth potential of pure infrastructure companies.

MHSC has entered into a memorandum of understanding with Peace Winds Japan*2, an NPO that works to improve wells, schools, and other infrastructure in developing countries and is supporting the recovery of the areas affected by the Great East Japan Earthquake. As we provide ongoing financial support to this organization under the MOU, we will also continue our pursuit of CSR activities through financial services.

  • *1"Global High Yielding Pure Infrastructure Fund (Monthly Dividend) (Growth Type)" "Global High Yielding Advanced Infrastructure Fund (Currency Select Type)"
  • *2Established in 1996, Peace Winds Japan is a nonprofit organization that engages in activities for assisting people facing war, natural disasters, poverty, or other threats to their existence. Headquartered in Japan, this organization is also working to procure, ship, and distribute emergency relief supplies to help victims of the Great East Japan Earthquake.

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Well construction in Sudan
Copyright© Peace Winds Japan

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Construction of a hospital in Halabja, Iraq
Copyright© Peace Winds Japan

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Bringing in relief supplies for victims of the Great East Japan Earthquake
Copyright© Peace Winds Japan

Manager's comments

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Masahiro Ikeda
General Manager, Retail Business Planning & Coordination Department, Mizuho Securities

In our business of providing securities finance services, the most important thing we do – and our most significant social mission – is to provide customers with easily understandable recommendations on which of our outstanding asset management products best suit their needs. The donation of a portion of our fees is a secondary element of our products, but, as an initial experiment in such endeavors, we anticipate that it will serve to broadly communicate our long–held philosophy that financial services should be used by and benefit society at large. We are looking forward to this product, including its concept, design, and donation scheme, to be widely praised by customers, and to ultimately boost customer satisfaction.

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