Securities Report (Domestic Investment Trust Beneficiary Certificates) - 12th Period (2025/03/22–2026/03/23)

Amova Asset Management Co., Ltd. Securities Report (Domestic Investment Trust Beneficiary Certificates) - 12th Period (2025/03/22–2026/03/23)

This report is prepared in accordance with the Financial Instruments and Exchange Act, aiming to provide current and prospective investors, as well as regulatory authorities, with accurate and comprehensive disclosures regarding the investment performance, financial condition, risk factors, and future outlook of the domestic investment trust beneficiary securities.

Amova Asset Management Co., Ltd. (hereinafter referred to as "the Company") is an independent asset management firm established in April 2013. The Company has consistently offered a diversified range of investment trust products to institutional and individual investors. Guided by the mission of "Creating Sustainable Value," the Company implements investment strategies designed to support long-term asset accumulation.

The 12th period covers one year from March 22, 2025, to March 23, 2026. This report details the analysis of prior-year investment performance, asset composition, fee structure, risk management policies, and the upcoming investment strategy based on macroeconomic forecasts.

The investment trust primarily allocates assets to domestic equities, bonds, REITs (Real Estate Investment Trusts), and infrastructure-related assets. By constructing a balanced portfolio, the fund aims to maximize risk-adjusted returns. For the fiscal year 2025, the fund achieved a 2.8% increase in net assets, outperforming the market benchmark by 0.6 percentage points.

The fee structure includes a trust fee of 0.85% per annum (including tax), which is slightly below the industry average. Sales charges are being phased out under a transitional measure, with full elimination targeted by March 2026.

In risk management, the Company employs its proprietary "AMORA-RM Framework," conducting monthly quantitative and qualitative assessments across market risk, credit risk, liquidity risk, and operational risk. In June 2025, the Company completed the implementation of an AI-powered real-time risk monitoring system, enhancing surveillance accuracy.

Looking ahead, in response to rising global interest rate pressures and heightened geopolitical risks, the Company plans to shorten the duration of its bond portfolio and increase cash holdings to 15% in the 2026 fiscal year. At the same time, strategic investments in AI-related infrastructure and renewable energy sectors are expected to expand.

As of March 2025, the fund's total net assets reached JPY 187.2 billion, marking 12 consecutive periods of net asset growth since inception. The number of investors, primarily individual investors, has reached approximately 43,000 units. Cumulative dividend distributions have amounted to JPY 32.8 billion.

The Company remains committed to maintaining transparent disclosure practices and earning investor trust. This report is available on the Company's official website and the Financial Services Agency's EDINET system for review by stakeholders.