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September 2023 Investment Allocation Review of the ROBOPRO Fund

The ROBOPRO Fund has recently undergone a rebalancing of its investment allocation, guided by insights provided by FOLIO, Inc. In this article, we will explore the changes in asset allocation that have taken place and the reasoning behind these adjustments.

Shift Towards Higher-Risk Assets

One notable change in the asset allocation has increased the proportion of relatively high-risk assets, indicating a slightly more aggressive investment stance. Here’s a breakdown of the adjustments:

• - Increased Assets: U.S. equities, U.S. bonds, and real estate have seen an increase in their asset allocation, while other asset classes have decreased.
• - Current Allocation Statistics: Stocks and real estate now collectively account for approximately 65% of the portfolio, a level not seen since October 2025. Conversely, bonds and gold have declined to about 35% over the last three consecutive months.
• - Rebalancing Date: It’s essential to mention that the asset composition ratios mentioned are based on estimates as of September 10, with percentages rounded to the second decimal place, which may cause the total not to exactly equal 100%.

AI Predictions and Insights

The latest AI forecasts indicate that U.S. equities and real estate are expected to perform relatively well, while emerging market equities and gold show outlooks that are not as promising. In comparison to previous assessments, the prospects for both emerging and developed market equities, along with gold, have diminished, whereas the outlook for real estate has improved significantly. When determining the actual asset allocation, various factors such as expected returns and risks are carefully considered.

• - U.S. Equities Outlook: The positive long-term variations in energy prices continue to favor U.S. equities.
• - Developed Market Equities: The outlook for developed market equities has weakened, particularly due to the recent uptick in energy prices.
• - U.S. Bonds: Prospects for U.S. bonds remain relatively high, largely due to potential upward movements following medium-to-long-term price declines.
• - Real Estate: With interest rate hikes causing short-term adjustments, there is renewed attractiveness in real estate investments, leading to a more favorable outlook.

Main Target ETFs

The fund heavily invests in several ETFs representing various market segments:

• - U.S. Equities: Vanguard Total Stock Market ETF
• - Developed Market Equities: Vanguard FTSE Developed Markets ETF
• - Emerging Market Equities: Vanguard FTSE Emerging Markets ETF
• - U.S. Bonds: Vanguard Total Bond Market ETF
• - High Yield Bonds: iShares iBoxx USD High Yield Corporate Bond ETF
• - Emerging Market Bonds: iShares JP Morgan USD Emerging Markets Bond ETF
• - Real Estate: iShares U.S. Real Estate ETF
• - Gold: SPDR Gold MiniShares Trust

Important Considerations

Investors should be aware that the principal amount of investments is not guaranteed and they may suffer losses due to depreciation in the value of the underlying assets. Unlike traditional savings or deposits, the profits and losses derived from the investment trust belong entirely to the investors.

FOLIO’s investment strategies involve a diverse range of assets including domestic and international stocks, bonds, real estate investment trusts, and commodities, all subject to price fluctuations. There is also exposure to foreign currencies which can lead to losses from exchange rate movements.

Investors are encouraged to thoroughly review the fund's official documentation including the investment trust explanations and the contract conclusion pre-disclosure materials before making investment decisions.

This material does not guarantee future performance and does not account for taxes or fees. Investors should perform their due diligence reflecting their financial goals and risk appetites.

Regulatory Disclosures

SBI Okanami Asset Management, Inc. is registered as a financial services provider with the Kanto Local Finance Bureau (registration no. 370). They are also a member of the Association for Investment Management.

For further details on risks, costs, and fund handling companies, investors can refer to this link for comprehensive information.