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Sumitomo Mitsui Financial : SMBC and Toshiba Jointly Develop New Equity Indices Using Advanced Quantum-Driven Technologies
Sumitomo Mitsui Financial : SMBC and Toshiba Jointly Develop New Equity Indices Using Advanced Quantum-Driven
About this update from Sumitomo Mitsui Trust Group, Inc.
[{"type":"text","content":" May 20th, 2026 Sumitomo Mitsui Banking Corporation Toshiba Corporation SMBC and Toshiba Jointly Develop New Equity Indices Using Advanced Quantum-Driven Technologies Tokyo and Kawasaki, Japan - Sumitomo Mitsui Banking Corporation (President & CEO: Akihiro Fukutome; \"SMBC\") and Toshiba Corporation (President & CEO: Taro Shimada; \"Toshiba\") today announced the joint development of the SMBC/TOSHIBA Quantum Driven Diversified Japan Equity Index*1 and the SMBC/TOSHIBA Quantum Driven Diversified U.S. Equity Index*2, new equity indices realized with advanced quantum-driven technologies. Collectively, the indices are referred to as \"SMBC/TOSHIBA Quantum Diversified\" (the \"Indices\"). Background and Objectives Equity investment is central to asset management, but it also carries the ever-present risk of abrupt and substantial market fluctuations driven by geopolitical developments, changes in economic policy, and other external factors. In uncertain markets, investors are constantly seeking innovations in risk diversification that can protect their assets from unexpected market shocks. SMBC and Toshiba have together developed new Indices that combine SMBC's expertise in financial markets with Toshiba's advanced quantum-driven technologies. These Indices use solutions to large-scale combinatorial optimization problems to realize well diversified equity portfolios that are difficult to construct with traditional methodologies. They aim to maintain the benefits of diversification even during times of market volatility, and to contribute to effective risk mitigation. Overview of the Indices The Indices use the constituent stocks of existing Japanese and U.S. equity indices as their pools of candidate securities, the universes they explore. Individual components for the Indices are selected quarterly through calculations made by the Simulated Bifurcation Machine, Toshiba's quantum-driven optimization computer. The weight given to an individual stock is determined based on its historical price volatility. Calculation of the Indices has started, with the end of 2015 as the base date. Key Features of the Indices Risk diversification through rigorous selection of low correlation stocks The Indices are constructed through an optimization process that selects a subset of stocks from the universe so as to keep correlations across con...