ROBOPRO Adjusts Portfolio: Increasing Equity Allocation to Over 70% by Boosting Developed Market Stocks While Reducing Emerging Market Assets

FOLIO Inc. (Headquarters: Chiyoda-ku, Tokyo; Representative Director: Morifumi Yotsumoto), a subsidiary of FOLIO Holdings Inc., which provides innovative financial solutions within the SBI Group, implemented its monthly investment allocation adjustment for the AI-driven investment service 'ROBOPRO®' on March 27, 2026.

In this adjustment, real estate was newly added in a small portion, resulting in a seven-asset portfolio consisting of US stocks, developed market stocks, gold, emerging market bonds, real estate, high-yield bonds, and emerging market stocks, in descending order of allocation.

Comparing the AI-based return forecasts for each asset used in ROBOPRO, the outlook for developed market stocks and gold remains high, while the outlook for bond assets (US bonds, high-yield bonds, and emerging market bonds) continues to be low. Based on these forecasts, the portfolio was optimized using financial engineering, resulting in an allocation where equity assets exceed 70%, taking on risk primarily through stocks. Within this, while maintaining a focus on US stocks, the weight of developed market stocks has been increased.

Background of AI Forecasts and Allocation Changes

This month's adjustment resulted in a higher equity weighting by reducing emerging market assets while significantly increasing the allocation to developed market stocks. Furthermore, based on AI predictions using the latest market data, the portfolio has been diversified across seven assets to deepen asset diversification while centering on equities.

US stocks, which saw relatively moderate declines compared to other equity assets, had their weighting reduced due to a decrease in relative investment appeal. However, they remain the largest holding at just under 40% due to their continued mid-to-long-term value.

Developed market stocks, which had been on an upward trend in Asia and Europe since the beginning of the year, saw their outlook improve significantly due to increased short- and long-term investment appeal following sharp declines triggered by the conflict in Iran.

Emerging market stocks and bonds, which had their allocations increased in the March rebalance, saw their weightings reduced due to headwinds such as the subsequent rise in energy prices, including crude oil.

Gold saw a slight increase in short-term attractiveness due to declines in late March, but given recent market volatility, the change in its allocation remained minimal.

Overall, the portfolio has shifted to hold over 70% in equity assets, primarily US and developed market stocks, while reducing emerging market assets, which are more negatively impacted by rising oil prices.

For details on this and past investment allocation changes, please visit: https://ai.folio-sec.com/rebalance-report

Features of 'ROBOPRO'

1. Predicting the future by analyzing over 40 leading indicators: AI analyzes financial markets using over 40 types of market data and approximately 1,000 features. It selects only 'highly leading data' that moves ahead of the actual economy to provide precise forecasts.
2. Rational decision-making to respond to trend changes: Operations are conducted through a rational investment decision-making process that fuses AI technology with traditional financial engineering theory. Unlike humans, who may be swayed by emotions, this service makes decisions based on quantitative, rational perspectives.
3. Monthly allocation changes based on AI forecasts: The service aims to maximize performance by adjusting allocations based on market forecasts, such as increasing the ratio of aggressive assets like stocks or defensive assets like gold. In the event of sudden market changes, ad-hoc rebalancing is performed to respond to market shifts.

For more details on 'ROBOPRO', please visit: https://ai.folio-sec.com