Adjusting Asset Allocation to Over 70% Equities, Significantly Increasing Developed Market Stocks While Reducing Emerging Market Assets

FOLIO Inc. (Headquarters: Chiyoda-ku, Tokyo; Representative Director: Morifumi Yotsumoto), a subsidiary of SBI Holdings Inc. that provides innovative financial solutions, announced on March 27, 2026, a change in its investment allocation for the AI investment service "ROBOPRO®", which is typically adjusted once a month.

This investment allocation change introduces a small allocation to real estate, resulting in a 7-asset portfolio comprising, in order of allocation: US Stocks, Developed Market Stocks, Gold, Emerging Market Bonds, Real Estate, High-Yield Bonds, and Emerging Market Stocks.

Comparing the AI-based return forecasts for each asset utilized by ROBOPRO, prospects for Developed Market Stocks and Gold were high, while the outlook for bond assets (US Bonds, High-Yield Bonds, Emerging Market Bonds) continued to be low.

Based on these forecasts and the optimization of the portfolio using financial engineering, the allocation was adjusted to take on risk primarily through equities, with the proportion of stock assets exceeding 70%. Within this, the investment allocation continues to focus on US Stocks while increasing the weighting of Developed Market Stocks.

*The investment allocation above shows the ratios at the time of change for December 2025 (December 1st), January 2026 (December 29th), February 2026 (January 29th), March 2026 (March 2nd), and April 2026 (March 27th). In February 2025, an extraordinary rebalancing was conducted on February 2nd in addition to the regular change.

*The numerical values in the bar graph are displayed after truncating the second decimal place and below. Therefore, the sum of the displayed numerical values may not equal 100%, resulting in discrepancies. However, for Developed Market Stocks in December 2025, the values are displayed up to the second decimal place.

◼️ Background of AI Forecast and This Investment Allocation Change

In this month's allocation change, the proportion of equities was increased by reducing emerging market assets and significantly increasing the allocation to developed market stocks. Furthermore, based on AI forecasts using the latest market data, the strategy was to focus on equities while ultimately diversifying across 7 asset classes to deepen inter-asset diversification.

US Stocks, despite a relatively moderate decline while other equity assets experienced significant drops, saw their relative investment appeal decrease, leading to a reduction in their allocation. However, their mid-to-long-term value proposition continues, and they remain the largest holding at just under 40%.

Developed Market Stocks, which had shown an upward trend in Asian and European countries since the beginning of the year, experienced a significant decline following the outbreak of conflict in Iran, among other factors. This led to an increase in their short-term and long-term investment appeal, with a significantly improved outlook.

Emerging Market Stocks and Emerging Market Bonds saw their allocations increased in the March rebalancing, but