What is the valuation of fund assets?

(I) Valuation The valuation date of Japanese funds is the trading day of the securities/futures exchange related to the fund and the non-trading day when the net value of the fund needs to be disclosed according to national laws and regulations.

(2) Assets and liabilities such as stocks, stock index futures contracts, stock option contracts, bonds, principal and interest of bank deposits, receivables and other investments owned by the target fund.

(III) Valuation Principles When determining the fair value of relevant financial assets and financial liabilities, fund managers should follow the accounting standards for business enterprises and the relevant provisions of the regulatory authorities.

1. If the investment product has an active market on the valuation date and can obtain the quotation of the same asset or liability, the quotation shall be applicable to the fair value measurement of the asset or liability without adjustment, unless it is stipulated in the accounting standards. If there is no quotation on the valuation date and there is no major event affecting the fair value measurement after the recent trading day, the fair value shall be determined by using the quotation on the recent trading day. If there is sufficient evidence that the quotation on the valuation date or the latest trading day cannot truly reflect the fair value, the quotation should be adjusted to determine the fair value. If the investment products are the same as those mentioned above, but have different characteristics, they should be based on the fair value of the same assets or liabilities, and the influence of different characteristic factors should be considered in the valuation technology. Characteristics refer to restrictions on the sale or use of assets. If these restrictions are aimed at asset holders, then these restrictions should not be regarded as the characteristics of valuation techniques. In addition, fund managers should not consider the premium or discount arising from holding a large number of related assets or liabilities.

2. For the investment products without active market, the fair value should be determined by using the valuation technology which is suitable for the current situation and supported by sufficient available data and other information. When using valuation technology to determine fair value, the observable input value should be given priority, and the unobservable input value can only be used when the observable input value of related assets or liabilities is not available or feasible.