[Unofficial Translation] August 28,2014
The Dai-ichi Life Insurance Company, Limited
DIAM Co.,Ltd

New Launch of Smart Beta model (Japanese Equity)

The Dai-ichi Life Insurance Company, Limited ("Dai-ichi Life"; President: Koichiro Watanabe) and DIAM Co.,Ltd ("DIAM"; President: Yasumasa Nishi) have jointly developed a new Smart Beta model (※) for Japanese equity, which is designed to invest in the high-growth companies in Japan with Dai-ichi Life's expertise in the long-term stock investment and DIAM's in the sophisticated quantitative investment.

※Smart Beta is a generic concept of indices whose weights are determined by different methods from the

conventional market capitalization's.

The model is focused not only on "value" and "small", but also on "growth potential" of the companies, while general Smart Beta models, having been becoming the focus of attention, are mostly developed with investment strategies such as "value" and "low volatility"(Refer to the attached sheet for details).
As the model is designed with a concept of investing in 200 "Japanese" "high-growth"
companies based on the model, we named it as "Japan Smart Growth 200 (hereinafter, JSG200)".
In order to promote the initiative and to further accelerate its investments in growing fields, Dai-ichi life is investing up to ¥20bil in investment funds which refer to the JSG 200.
At the same time, DIAM intends to expand the recognition of JSG200, and will provide the investment products on the basis of JSG200 with a wide range of investors.
(Reference)

In the development process of JSG200, we select 200 leading Japanese high-growth companies, and determine the weight of each company on the basis of the theoretical equity value, not of the market capitalization.
Moreover, JSG200 has been designed not only with the "small" and "value" factors, which have gained excess returns in Japanese market, but also with the "growth" factor as well. According to DIAM's simulation data for the past 10 years, JSG200 has gained annual average excess return of approximately 2%, while the risk (standard deviation) level is controlled under the almost same level as TOPIX's (dividend included).

DIAM Co.,Ltd. Financial Instruments Firm Registration No. : Director of Kanto Local Finance Bureau No.324
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Member of The Investment Trusts Association, Japan
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