ROBOPRO Fund: Commentary on Investment Allocation Changes in July Rebalancing

The Fund receives advisory services from FOLIO Inc. (hereinafter "FOLIO") regarding the allocation ratios of investment assets. This report explains the background and rationale for the changes in investment allocation ratios during this rebalancing, based on information provided by FOLIO.

Increasing equity exposure while maintaining diversification across all eight asset classes

Changes in investment asset allocation

A notable change from the previous rebalancing is a reduction in allocation to U.S. and emerging market equities, accompanied by an increase in allocation to developed market equities. Among non-equity assets, allocation to emerging market bonds increased, while other assets decreased. As a result, total equity assets increased to approximately 45%. However, due to a reduction in real estate, the combined total of relatively high-risk assets (equities and real estate) rose slightly to about 49%. Meanwhile, the combined total of bond assets and gold decreased slightly to approximately 51%, maintaining over 50%, and all eight asset classes have been included for the third consecutive month, continuing a diversification-focused structure.

AI forecasts and analysis

In this round of AI forecasts (predictions of future returns for eight assets), outlooks for developed market equities and gold are relatively high, while outlooks for bond assets and real estate are relatively low. Compared to the previous round, outlooks for bond assets such as U.S. bonds have deteriorated, while the outlook for developed market equities has significantly improved. However, the differences in AI return forecasts among assets are not large, making it difficult to create significant differences in asset allocation.

Based on the above AI forecasts, actual asset allocation is determined by also reflecting each asset's expected returns, risks, and other factors.

□ Outlook for U.S. equities slightly declines

U.S. equities saw a slight decline in relative advantage compared to other risk assets based on long-term trends, leading to a reduction in allocation.

□ Outlook for developed market equities improves

Developed market equities saw increased allocation, likely due to improved outlooks driven by the underperformance of European equities and other markets.

□ Allocation to emerging market bonds increases

Among bond assets with generally low outlooks, emerging market bonds have a relatively favorable outlook and low correlation with equities and other assets, leading to increased allocation for risk adjustment purposes.

(Source for Charts 2 and 3) Prepared by SBI Okasan Asset Management based on Bloomberg data

【Main Target ETFs】

● U.S. Equities: Vanguard Total Stock Market ETF ● Developed Market Equities: Vanguard FTSE Developed Markets ETF ※ Excludes U.S. equities. Includes Japanese equities. ● Emerging Market Equities: Vanguard FTSE Emerging Markets ETF ● U.S. Bonds: Vanguard Total Bond Market ETF ● High-Yield Bonds: iShares iBoxx $ High Yield Corporate Bond ETF ● Emerging Market Bonds: iShares JPMorgan USD Emerging Markets Bond ETF ● Real Estate: iShares U.S. Real Estate ETF ● Gold: SPDR® Gold MiniShares Trust

＜For details on investment risks, fees, etc., please refer to the link below＞

https://www.sbiokasan-am.co.jp/fund/553175/

＜For information on sales institutions, please refer to the link below＞

https://www.sbiokasan-am.co.jp/fund/553175/sales#ancFund

Investors' principal is not guaranteed and may decline in value due to a drop in net asset value, potentially falling below the original investment. Investment trusts are not equivalent to bank deposits. All profits and losses arising from investment trust assets belong entirely to the investors.

The Fund invests in domestic and foreign equities, bonds, real estate investment trust securities, commodities, and other volatile securities. Therefore, the net asset value may decline due to price fluctuations of the invested securities, resulting in losses. Additionally, as the Fund invests in foreign currency-denominated assets, exchange rate fluctuations may also result in losses.

Past performance shown in this material is for reference only and does not guarantee future results. Taxes, fees, and other charges are not included. When applying for purchase, please carefully read the “Investment Trust Prospectus (Delivered Prospectus)” and “Pre-Contractual Disclosure Document” or “Prospectus Supplement,” and make your investment decision independently.

Disclosure pursuant to the Financial Instruments and Exchange Act, etc.

SBI Okasan Asset Management Co., Ltd.

Corporate Name: SBI Okasan Asset Management Co., Ltd.

Registration Number: Financial Instruments Business Operator, Kanto Finance Bureau (Financial Instruments Business) No. 370

Member Associations: General Incorporated Association Investment Trust Association