[First in Japan] Highly Anticipated Dalton NAVF Select Strategy Now Exclusively Accessible to Domestic Investors via fundnote

fundnote Inc. (Head Office: Minato-ku, Tokyo; Representative Director: Katsuma Watanabe; hereinafter "the Company"), an independent asset management company, submitted a securities registration statement on Tuesday, March 31, 2026, for the "fundnote Dalton NAVF Select Fund (Nickname: Takumi no Fund Dalton)", a publicly offered investment trust that is the first in Japan to adopt Dalton Investments' NAVF Select Strategy. The initial offering will commence on Thursday, April 16, 2026. This fund aims to maximize the value of Japanese companies and share the fruits of that growth with Japanese investors, with operations scheduled to begin on Friday, May 1, 2026.

This strategy has previously been offered primarily to overseas pension funds, foundations, and institutional investors, with many of its investment opportunities limited to foreign investors.

Through our publicly offered investment trust, we are now offering investment opportunities to Japanese investors for the first time. Together with those who share our investment philosophy and that of Dalton Investments, we aim to achieve long-term value creation and returns.

Furthermore, this fund represents a limited investment opportunity accessible only through our company, and an upper limit has been set for the investment amount. (The limit for the initial offering period is JPY 10 billion, and the trust fund limit is JPY 15 billion).

*Please note that if applications exceed expectations, we may restrict purchases.

Features of "fundnote Dalton NAVF Select Fund (Nickname: Takumi no Fund Dalton)"

1. It focuses on investing in cash-rich and undervalued companies (stocks with a large discrepancy between intrinsic value and current stock price).

2. It aims to unlock the value of investee companies by actively engaging with them, including proposing ways to enhance corporate capital efficiency.

3. For the management of the master fund, Dalton Investments Inc. is entrusted with a portion of the authority regarding investment instructions (authority regarding investment instructions for stocks, etc.).

Entrusted Manager - About Dalton Investments

Dalton Investments aims to be agile in investment opportunities, possess an entrepreneurial spirit, manage assets with a long-term perspective, and provide superior returns to clients.
It began operations in 1998 to capitalize on opportunities arising from the Asian crisis and was incorporated in 1999.
It has offices in Los Angeles, Las Vegas, Seoul, Sydney, Mumbai, Hong Kong, New York, and Tokyo.
It boasts an experienced and diverse team of 45 people, 21 of whom are dedicated investment professionals.
It is a company owned by its officers and employees, and both officers and employees invest in the funds managed by Dalton alongside investors.

About the Investment Team

【Biography】
・Entered the asset management industry in 1981, established Rosenwald, Roditi & Company (now Rovida Asset Management) in 1992 while serving as an external advisor to the Soros Group.
・Established Dalton Investments LLC in 1999.
・Possesses over 30 years of experience in equity management in the Asian region.
・Since 2012, has served as an adjunct professor at New York University Stern School of Business, teaching "Global Value Investing," which is highly acclaimed by students.
・His grandfather, James Rosenwald I, was mentored by Benjamin Graham, considered the father of value investing, and after honing his skills as a securities analyst at Graham-Newman Corp., gained renown as an analyst of Japanese non-life insurance and financial stocks for 30 years at Nikko Securities New York.
・MBA from New York University, graduated from Vassar College, CFA, member of the CFA Society of Los Angeles.

【Biography】

・Joined Dalton Investments in 2021 after serving as a desk analyst in the distressed debt trading department at Citigroup Global Markets Inc. (US) and Citigroup Securities (Japan).
・Possesses over 16 years of trading and investment experience.
・MBA from Columbia University, Bachelor's from Monash University.

Comment from Mr. James B. Rosenwald III

Our active management differs slightly from typical funds; we value an approach that engages with companies and extracts value through dialogue. This strategy is not aimed at short-term trading profits. We thoroughly conduct our operations by investing in Good Business and ensuring a Margin of Safety. Until now, investments in this strategy have mostly come from overseas investors (pension funds, foundations, etc.). However, through this new fund with fundnote, we are now able to offer investment opportunities to Japanese investors, albeit with limited investment capacity. We hope that you will understand our investment philosophy and that we can share its results and learnings together.

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Fund Overview

Name: fundnote Dalton NAVF Select Fund

Investment Target: Domestic Japanese Equities

Filing Date: March 31, 2026

Initial Offering Period: April 16, 2026 - April 30, 2026

Continuous Offering Period: May 1, 2026 - December 30, 2026

Operation Start Date: May 1, 2026

Purchase Unit: JPY 1 million or more, in JPY 1 increments

Purchase Fee: None

Trust Fee:

(1) Basic Fee

An amount calculated by multiplying the fund's net asset value by the basic fee rate of 1.98% per annum (1.8% per annum, excluding tax) will be accrued daily throughout the fund's calculation period and paid to the management company from the trust assets at the end of the first six months of each calculation period, at the end of each calculation period, or upon termination of the trust.

(2) Performance Fee

A performance fee will be paid to the management company from the trust assets at the end of each calculation period or upon termination of the trust, if the net asset value per 10,000 units (before deduction of any distributions and performance fees) exceeds the high-water mark.

Trust Asset Retention Amount: An amount calculated by multiplying the net asset value on the specific redemption date by 0.5%.

Redemption Application:

Applications for redemption will be accepted once a year, with June 25 (excluding June 25, 2026) as the specific redemption date. The deadline for redemption applications will be the 25th of the third month preceding the specific redemption date (March 25; if a holiday, the next business day). The application period for redemption will be from the next business day following the application deadline of the previous specific redemption date (however, for the specific redemption date in June 2027, it will be June 1, 2026) until the application deadline of the current specific redemption date.

*If the specific redemption date falls on a holiday, the next business day will be the specific redemption date.

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About fundnote Inc.

Our company was founded in August 2021 as an independent asset management company. We primarily invest in listed and unlisted domestic Japanese equities and specialize in active management. We began operating investment limited partnerships in 2022 and launched publicly offered investment trusts in December 2024. In February 2026, the number of accounts opened for our publicly offered investment trusts exceeded 10,000. We are currently building an active fund platform centered on "asset management where the faces and philosophies of fund managers are visible."

Towards Realizing "Active Select Platform"

Our "Active Select Platform" is a mechanism that selects active fund managers with strong aspirations and delivers their philosophies, judgments, and resolve to investors in a transparent, "face-visible" manner. By providing sophisticated investment opportunities, such as hedge funds and activist strategies, which were traditionally limited to a select group of institutional investors and high-net-worth individuals, in a more open format, we aim to achieve the "democratization of active management."

We will create a new investment experience that focuses not merely on "what to invest in" as a product offering, but on the perspective of "who to entrust asset management to."

About EMP Initiatives

As one of only two "Tokyo EMP operators" in Japan, our company is committed to supplying capital to and supporting the growth of emerging asset management companies (Emerging Managers: EM). EMs, who aim to generate excess returns with unique investment strategies, are indispensable for the development of the asset management industry. However, in Japan, the mechanism for supplying capital to EMs is not sufficiently developed. Through the establishment and management of funds, we will create a capital circulation for EMs and promote the construction of an ecosystem that connects excellent fund managers with investors.
※For more details on EMP, please refer here.

Comment from Katsuma Watanabe, President & CEO of fundnote Inc.

I am truly delighted to be able to launch a new publicly offered investment trust with Dalton. We have been preparing since August last year, and after more than half a year, I am very pleased to finally announce it today. The strategy of this fund has previously been offered only to a limited number of institutional investors, such as overseas pension funds and foundations, within Dalton. It is a great honor to be able to deliver this investment opportunity to Japanese investors for the first time, and for fundnote to be the sole point of access.

Furthermore, with the launch of this fund, "A