International model basket

Japan Re-Rate: Governance & Yen

TSE reforms are structural — this is not a tactical yen trade.

What is the thesis for Japan Re-Rate: Governance & Yen?

Tokyo Stock Exchange governance reforms are pushing ROE and capital returns higher across the listed universe. We own the clearest beneficiaries.

This is a curated QuantLink model basket. It is not a filed portfolio, not a fund, and not investment advice.

Published Jul 11, 2025. Updated Feb 28, 2026. Source: QuantLink curated model basket and FastAPI ideas endpoint.

Holdings
5
Benchmark
EWJ
Status
Updated
1Y model return
+21.0%

Performance as of Oct 11, 2026.

Thesis narrative

Governance is the thesis — yen is the rounding error

The Tokyo Stock Exchange's enforcement of disclosure for PBR<1 companies has triggered the first real wave of capital-return discipline in 30 years of Japanese equity history. Buybacks, dividends, and cross-shareholding unwinds are now board-level metrics.

Why this is structural, not tactical

  • Enforcement mechanism is ongoing, not a one-off directive
  • ROE targets are publicly disclosed and tracked
  • Foreign ownership is still below peers — room for flow expansion

Currency

We do not hedge the yen. A re-rate accompanied by yen strength is the bull case; a re-rate in a weak-yen environment still delivers the thesis in JPY terms. The one-way risk is a sudden BoJ tightening + reversal of governance momentum, which we think is low probability.

Model basket holdings

Model basket: curated equal or target weighting, not a filed portfolio. Weights are the target basket weights returned by the live ideas endpoint.

NameSymbolModel weight
Mitsubishi UFJ Financial8306.T28.00%
Toyota Motor7203.T25.00%
Sony Group6758.T22.00%
SoftBank Group9984.T15.00%
Mitsubishi Corp8058.T10.00%

Backtested performance vs EWJ

Performance is backtested from the returned tearsheet series. It reflects the model basket methodology and benchmark series, not live fund returns or a filed portfolio track record. Performance as of Oct 11, 2026.

Total Return

+21.0%

↑ EWJ +19.1%

Ann. Return

+23.2%

↑ EWJ +21.1%

Ann. Vol

27.7%

↑ EWJ 21.5%

Sharpe

0.84

↓ EWJ 0.98

Max Drawdown

-14.1%

↓ EWJ -11.2%

Alpha vs EWJ

+18.9%

↑ hit rate 51.7%

Performance as of Oct 11, 2026.

Rolling Performance vs Benchmark

Portfolio Holdings

Holding
Weight
Country
Exchange
Sector
Industry
Mkt Cap
Price
1Y
1Y Trend
8306.T
8306.TMitsubishi UFJ Financial
28.0%
—
—
—
—
—
—
—
7203.T
7203.TToyota Motor
25.0%
—
—
—
—
—
—
—
6758.T
6758.TSony Group
22.0%
—
—
—
—
—
—
—
9984.T
9984.TSoftBank Group
15.0%
—
—
—
—
—
—
—
8058.T
8058.TMitsubishi Corp
10.0%
—
—
—
—
—
—
—

SSR performance series fallback

The table below is the server-rendered reference series behind the interactive chart. Values show the wealth index level from a 1.00 starting value, not a second 1Y return figure. Series as of Oct 11, 2026.

DateModel basket wealth indexEWJ
Oct 15, 20251.0000x1.0000x
Oct 16, 20251.0155x1.0032x
Oct 17, 20250.9993x1.0087x
Oct 20, 20251.0376x1.0277x
Oct 21, 20251.0348x1.0157x
Oct 22, 20251.0326x1.0109x
Oct 23, 20251.0221x1.0114x
Oct 24, 20251.0293x1.0149x
Oct 27, 20251.0559x1.0276x
Oct 28, 20251.0531x1.0325x
Oct 29, 20251.0544x1.0239x
Oct 30, 20251.0533x1.0236x
Oct 31, 20251.0614x1.0266x
Nov 4, 20251.0458x1.0166x
Nov 5, 20251.0132x1.0163x
Nov 6, 20251.0378x1.0182x
Nov 7, 20251.0186x1.0223x
Nov 10, 20251.0277x1.0271x
Nov 11, 20251.0426x1.0279x
Nov 12, 20251.0609x1.0352x
Nov 13, 20251.0623x1.0188x
Nov 14, 20251.0526x1.0307x
Nov 17, 20251.0394x1.0122x
Nov 18, 20251.0013x0.9915x
Nov 19, 20250.9974x0.9902x
Nov 20, 20251.0136x0.9756x
Nov 21, 20251.0047x0.9965x
Nov 25, 20250.9808x0.9987x
Nov 26, 20251.0103x1.0150x
Nov 28, 20251.0151x1.0120x
Dec 1, 20251.0041x1.0061x
Dec 2, 20251.0019x1.0054x
Dec 3, 20250.9993x1.0071x
Dec 4, 20251.0324x1.0194x
Dec 5, 20251.0305x1.0204x
Dec 8, 20251.0247x1.0142x
Dec 9, 20251.0250x1.0156x
Dec 10, 20251.0176x1.0230x
Dec 11, 20250.9970x1.0267x
Dec 12, 20251.0273x1.0241x
Dec 15, 20251.0302x1.0347x
Dec 16, 20251.0087x0.9857x
Dec 17, 20251.0072x0.9721x
Dec 18, 20251.0014x0.9749x
Dec 19, 20251.0139x0.9824x
Dec 22, 20251.0254x0.9809x
Dec 23, 20251.0292x0.9892x
Dec 24, 20251.0128x0.9875x
Dec 26, 20251.0213x0.9871x
Dec 29, 20251.0229x0.9886x
Dec 30, 20251.0192x0.9872x
Jan 5, 20261.0408x1.0091x
Jan 6, 20261.0614x1.0084x
Jan 7, 20261.0431x1.0065x
Jan 8, 20261.0228x1.0058x
Jan 9, 20261.0311x1.0271x
Jan 13, 20261.0753x1.0169x
Jan 14, 20261.0805x1.0240x
Jan 15, 20261.0939x1.0286x
Jan 16, 20261.0863x1.0293x
Jan 20, 20261.0584x1.0081x
Jan 21, 20261.0465x1.0209x
Jan 22, 20261.0622x1.0219x
Jan 23, 20261.0628x1.0183x
Jan 26, 20261.0255x1.0191x
Jan 27, 20261.0271x1.0337x
Jan 28, 20261.0187x1.0261x
Jan 30, 20261.0277x1.0322x
Feb 2, 20261.0145x1.0343x
Feb 3, 20261.0504x1.0438x
Feb 4, 20261.0560x1.0535x
Feb 5, 20261.0438x1.0368x
Feb 6, 20261.0729x1.0765x
Feb 9, 20261.0811x1.0993x
Feb 10, 20261.1171x1.1211x
Feb 12, 20261.1293x1.1139x
Feb 13, 20261.1052x1.1197x
Feb 17, 20261.0818x1.0960x
Feb 18, 20261.0857x1.0902x
Feb 19, 20261.0989x1.0881x
Feb 20, 20261.0705x1.0913x
Feb 24, 20261.0588x1.0894x
Feb 25, 20261.0549x1.1038x
Feb 26, 20261.0825x1.1043x
Feb 27, 20261.1061x1.1030x
Mar 2, 20261.0949x1.0771x
Mar 3, 20261.0557x1.0368x
Mar 4, 20261.0118x1.0578x
Mar 5, 20261.0278x1.0256x
Mar 6, 20261.0408x1.0122x
Mar 9, 20260.9949x1.0226x
Mar 10, 20261.0195x1.0324x
Mar 11, 20261.0328x1.0237x
Mar 12, 20261.0196x1.0053x
Mar 13, 20261.0075x0.9954x
Mar 16, 20260.9987x1.0158x
Mar 17, 20261.0004x1.0159x
Mar 18, 20261.0236x1.0048x
Mar 19, 20260.9984x1.0040x
Mar 23, 20260.9705x1.0330x
Mar 24, 20260.9863x1.0297x
Mar 25, 20261.0160x1.0479x
Mar 26, 20261.0170x1.0227x
Mar 27, 20261.0263x1.0068x
Mar 30, 20260.9894x1.0079x
Mar 31, 20260.9722x1.0440x
Apr 1, 20261.0281x1.0693x
Apr 2, 20261.0082x1.0546x
Apr 6, 20261.0098x1.0580x
Apr 7, 20261.0103x1.0573x
Apr 8, 20261.0443x1.1055x
Apr 9, 20261.0327x1.0908x
Apr 10, 20261.0264x1.0897x
Apr 13, 20261.0220x1.0924x
Apr 14, 20261.0415x1.1055x
Apr 15, 20261.0598x1.1013x
Apr 16, 20261.0789x1.1055x
Apr 17, 20261.0585x1.1151x
Apr 20, 20261.0693x1.1045x
Apr 21, 20261.0660x1.0774x
Apr 22, 20261.0661x1.0851x
Apr 23, 20261.0575x1.0766x
Apr 24, 20261.0562x1.0797x
Apr 27, 20261.0520x1.0841x
Apr 28, 20261.0551x1.0826x
Apr 30, 20261.0331x1.1112x
May 1, 20261.0411x1.1012x
May 7, 20261.0785x1.0929x
May 8, 20261.0551x1.1077x
May 11, 20261.0657x1.1082x
May 12, 20261.0859x1.1058x
May 13, 20261.1193x1.1181x
May 14, 20261.0996x1.1058x
May 15, 20261.1202x1.0939x
May 18, 20261.1056x1.0921x
May 19, 20261.1194x1.0845x
May 20, 20261.0908x1.0956x
May 21, 20261.1264x1.0975x
May 22, 20261.1482x1.1004x
May 26, 20261.1726x1.1159x
May 27, 20261.1521x1.1085x
May 28, 20261.1383x1.1135x
May 29, 20261.1501x1.1166x
Jun 1, 20261.1679x1.1162x
Jun 2, 20261.1753x1.1240x
Jun 3, 20261.1803x1.1283x
Jun 4, 20261.1517x1.1306x
Jun 5, 20261.1596x1.0897x
Jun 8, 20261.1369x1.1044x
Jun 9, 20261.1353x1.0924x
Jun 10, 20261.1111x1.0725x
Jun 11, 20261.0968x1.1072x
Jun 12, 20261.1005x1.1136x
Jun 15, 20261.1410x1.1298x
Jun 16, 20261.1267x1.1305x
Jun 17, 20261.1232x1.1345x
Jun 18, 20261.1353x1.1562x
Jun 22, 20261.1233x1.1647x
Jun 23, 20261.0941x1.1141x
Jun 24, 20261.0939x1.1124x
Jun 25, 20261.1039x1.1217x
Jun 26, 20261.0914x1.1147x
Jun 29, 20261.0877x1.1196x
Jun 30, 20261.0816x1.1203x
Jul 1, 20261.0840x1.1177x
Jul 2, 20261.1086x1.1187x
Jul 6, 20261.1315x1.1443x
Jul 7, 20261.1406x1.1179x
Jul 8, 20261.1303x1.1115x
Jul 9, 20261.1164x1.1233x
Jul 10, 20261.1348x1.1357x
Jul 13, 20261.1397x1.1137x
Jul 14, 20261.1586x1.1277x
Jul 15, 20261.1682x1.1231x
Jul 16, 20261.1569x1.1040x
Jul 17, 20261.1267x1.0869x
Jul 21, 20261.1556x1.1147x
Jul 22, 20261.1661x1.1081x
Jul 23, 20261.1818x1.0950x
Jul 24, 20261.1616x1.0963x
Jul 27, 20261.1777x1.0999x
Jul 28, 20261.1668x1.0797x
Jul 29, 20261.1857x1.0739x
Jul 30, 20261.1601x1.1213x
Jul 31, 20261.1814x1.1105x
Aug 3, 20261.1622x1.1167x
Aug 4, 20261.1389x1.1372x
Aug 5, 20261.1684x1.1438x
Aug 6, 20261.1777x1.1436x
Aug 7, 20261.1817x1.1647x
Aug 10, 20261.1772x1.1545x
Aug 12, 20261.1892x1.1726x
Aug 13, 20261.1942x1.1807x
Aug 14, 20261.2144x1.1776x
Aug 17, 20261.2044x1.1771x
Aug 18, 20261.2014x1.1435x
Aug 19, 20261.1548x1.1365x
Aug 20, 20261.1767x1.1304x
Aug 21, 20261.1859x1.1413x
Aug 24, 20261.1777x1.1372x
Aug 25, 20261.1803x1.1467x
Aug 26, 20261.1884x1.1443x
Aug 27, 20261.1930x1.1492x
Aug 28, 20261.2052x1.1495x
Aug 31, 20261.2189x1.1497x
Sep 1, 20261.2372x1.1417x
Sep 2, 20261.2024x1.1516x
Sep 3, 20261.2133x1.1739x
Sep 4, 20261.2296x1.1784x
Sep 8, 20261.2231x1.1746x
Sep 9, 20261.2259x1.1631x
Sep 10, 20261.2340x1.1564x
Sep 11, 20261.2302x1.1818x
Sep 14, 20261.2266x1.1700x
Sep 15, 20261.2288x1.1621x
Sep 16, 20261.2247x1.1632x
Sep 17, 20261.2315x1.1740x
Sep 18, 20261.2247x1.1631x
Sep 24, 20261.2098x1.1482x
Sep 25, 20261.2241x1.1736x
Sep 28, 20261.2241x1.1605x
Sep 29, 20261.1945x1.1566x
Sep 30, 20261.2255x1.1680x
Oct 1, 20261.2240x1.1670x
Oct 2, 20261.1990x1.1855x
Oct 5, 20261.2132x1.1901x
Oct 6, 20261.2200x1.1903x
Oct 7, 20261.2100x1.1783x
Oct 8, 20261.1865x1.1663x
Oct 9, 20261.1842x1.1728x

Themes and category

InternationalJapanQuality

Methodology and caveats

QuantLink fetches this idea from the live FastAPI ideas endpoints and renders the returned title, thesis, holdings, themes, benchmark, and tearsheet fields directly. Missing fields are left unavailable rather than fabricated.

Holdings are a curated model basket. They are not 13F filings, not insider filings, not adviser holdings, and not a claim that any person or fund owns the basket.

Backtested performance depends on the returned basket weights, benchmark, rebalancing assumptions, available price history, and calculation choices in the tearsheet endpoint. Backtests can differ materially from live results and do not include every cost, tax, capacity, liquidity, or execution constraint an investor may face.

Equal-weight and target-weight baskets can drift between rebalance points. Rebalancing can increase turnover, and concentrated thematic baskets can have higher drawdowns than a broad market benchmark.

Frequently asked questions

Research the stocks behind this idea

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QuantLink is a research tool, not investment advice. This page shows a curated model basket and backtested performance, not a filed portfolio, fund return, or recommendation to buy or sell securities.