Securities Report (Domestic Investment Trust Beneficiary Certificates) - 8th Period (2025/04/26–2026/04/27)

Mitsubishi UFJ Asset Management Co., Ltd. Securities Report (Domestic Investment Trust Beneficiary Certificates) – 8th Period (2025/04/26–2026/04/27)

This securities report is submitted by Mitsubishi UFJ Asset Management Co., Ltd. in accordance with the Financial Instruments and Exchange Act, disclosing information related to domestic investment trust beneficiary securities. The reporting period covered is the 8th period, spanning one year from April 26, 2025, to April 27, 2026.

The report provides detailed disclosures on the investment trust’s performance, asset composition, risk factors, management outlook, and financial statements. The fund is managed as a balanced-type fund primarily investing in domestic equities, bonds, and REITs, with an emphasis on pursuing stable returns and risk management.

The asset allocation is structured as follows: domestic equities at 45%, foreign equities at 20%, domestic bonds at 25%, and other assets (real estate investment trusts, cash equivalents, etc.) at 10%. The investment strategy aims to balance long-term capital growth with stable distributions.

Regarding economic outlook, the report highlights the Bank of Japan’s gradual tapering of monetary easing, the U.S. transition toward a rate-cutting phase, and growth in Asian emerging markets as key factors. In response to these macroeconomic trends, the company plans to flexibly review and adjust the portfolio.

Identified risk factors include foreign exchange volatility, interest rate fluctuations, stock price declines, credit risk, and liquidity risk. The report also notes geopolitical tensions, particularly U.S.-China relations, as potential market disruptors.

The distribution policy anticipates biannual payouts (in June and December). The report discloses that distributions may include portions of capital gains or principal, urging investors to fully understand the nature of these payments.

The net asset value of the trust property is approximately JPY 320 billion at the beginning of the reporting period, with an estimated JPY 340 billion by the end. Growth is attributed to improved investment performance and new capital inflows.

Distribution partners include major financial institutions such as Mitsubishi UFJ Bank, MUFG Trust Bank, Mizuho Securities, and SMBC Nikko Securities. Investor support has been enhanced through expanded online resources and telephone consultation services.

Future strategies include advancing ESG investing, improving algorithmic trading precision using AI, and developing customized funds tailored to investor needs. The company is also exploring pension-linked funds to address asset formation needs in Japan’s aging society.

The full report is available for viewing on the Financial Services Agency’s EDINET system and the company’s official website. Investors are encouraged to carefully review the report before making investment decisions.