Securities Report (Domestic Investment Trust Beneficiary Certificates) - 35th Period (2025/10/09 - 2026/04/08)

Mitsubishi UFJ Asset Management Co., Ltd. Securities Report (Domestic Investment Trust Beneficiary Certificates) – 35th Period (2025/10/09 – 2026/04/08)

This securities report is issued by Mitsubishi UFJ Asset Management Co., Ltd. regarding domestic investment trusts, in accordance with the Financial Instruments and Exchange Act to disclose information to investors. The reporting period covers the 35th term, from October 9, 2025, to April 8, 2026, spanning six months.

The investment trust is managed as a balanced fund primarily investing in Japanese equities, bonds, and REITs, aiming for stable asset growth and consistent dividend distributions. This report details the investment strategy, performance, portfolio composition, risk factors, fee structure, and dividend status for the period.

In terms of performance, net asset value increased by 3.2% compared to the previous mid-term, with a total return of +4.8%. This result was driven by the gradual upward trend in equity markets and effective management of the yield curve flattening in the bond portfolio. Notably, focused investments in Prime Market-listed stocks on the Tokyo Stock Exchange and additional acquisitions in infrastructure-related REITs contributed positively to returns.

Regarding risk management, the company maintains a monitoring system using quantitative risk indicators (VaR) for market volatility, interest rate, currency, and credit risks. In line with its ESG investment policy, the firm conducts corporate analysis from environmental, social, and governance perspectives to ensure sustainable investment selection. During this period, engagement activities were conducted with five companies, urging them to clarify their carbon-neutral targets.

The fee structure remains unchanged, with an annual trust fee of 0.85% (including tax). Sales commissions are capped at a maximum of 3.3% (including tax) upon purchase, and no-load products are offered in parallel to expand investor choice. The smartphone application "MUFG Asset NAV" enables real-time net asset value tracking and dividend history inquiries, enhancing user convenience.

Looking ahead, the company plans to gradually increase exposure to long-term bonds in anticipation of potential U.S. interest rate cuts in the first half of 2026. Strategic investments in AI-related industries and green energy sectors will also be strengthened. The company will continue its biannual fixed dividend distributions, prioritizing income stability for investors.

This report is publicly available on the Financial Services Agency's EDINET electronic disclosure system and the company's official website, where investors can view and download it at any time. Printed copies are also available upon request, ensuring accessibility for elderly investors and those less familiar with digital platforms.