#Japan #Tokyo #ROBOPRO Fund #FOLIO #Asset Allocation

Introduction

The ROBOPRO Fund has recently undergone a significant rebalancing in May 2023, guided by advice from FOLIO Co., Ltd. This report outlines the changes in asset allocation, highlighting the strategic decisions made to fortify the fund's performance.

Changes in Asset Allocation

Notably, the recent rebalance has resulted in a decrease in the allocation of stocks, which had previously seen a remarkable appreciation. Meanwhile, the fund increased its investments in real estate and reopened holdings in U.S. bonds for the first time since November 2025. This shift has reduced stock assets to approximately 36% of the total portfolio, the lowest level since July 2025. On the other hand, despite the reduction in stock allocation, the combined investment in higher-risk assets, such as stocks and real estate, remains around 50%. Conversely, bond assets and gold have increased to roughly 50%, establishing a more balanced portfolio configuration that incorporates all eight asset classes for the first time since November 2025.

AI Predictions and Insights

AI-driven forecasts concerning the future returns of the eight asset classes have shown promising projections for real estate and gold. In contrast, the outlook for high-yield bonds and emerging market assets, including stocks and bonds, has diminished. Compared to the previous evaluation, the expectations for real estate and U.S. bonds have improved, while outlooks for developed and emerging market stocks have weakened. These forecasts were integral to determining the actual asset allocation, reflecting the anticipated returns and associated risks for each asset class.

Declining Outlook for Developed Market Stocks

The outlook for developed market stocks, prominently featuring Japanese equities, has seen a decline due to previous remarkable increases in their valuations. This decline has led to a lowered incorporation ratio for these assets.

Diminishing Outlook for Emerging Market Stocks

The forecast for emerging market stocks has also declined significantly due to concerns of overheating in stock prices and soaring crude oil prices, prompting a reduced allocation.

Resumption of U.S. Bonds Allocation

The allocation in U.S. bonds has resumed amid improved forecasts influenced by price declines and a low correlation with stocks and real estate, serving to mitigate overall risk.

Increasing Allocation in Real Estate

With the easing of the 'buying spree' for the dollar and stabilization in the interest rate markets, the outlook for real estate has improved, prompting an increase in its allocation.

Conclusion

The reallocation strategy employed by the ROBOPRO Fund marks a significant pivot towards fostering a more sustainable and risk-adjusted investment portfolio. By adapting to market conditions and emerging trends, the fund aims to enhance returns while safeguarding investors' interests. It is crucial for investors to remain vigilant, bearing in mind that past performance is not indicative of future results. The adjustments made underscore the importance of continuous evaluation and adaptability in investment strategies.

Important Notices

• - Past performance of the fund does not guarantee future results. Tax considerations and fees are not included in this review.
• - Investment risks: Investors should be aware that the principal amount is not guaranteed and may incur losses based on price declines of the underlying assets.
• - For further information regarding investment risks and costs, please refer to the provided links.

For detailed terms and conditions on the investment product and the management company, refer to:

• - SBI Okasan Asset Management - Fund Information
• - SBI Okasan Asset Management - Sales Companies