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
+44.3%

Performance as of Jul 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 Jul 11, 2026.

Total Return

+44.3%

↑ EWJ +22.9%

Ann. Return

+49.2%

↑ EWJ +25.2%

Ann. Vol

28.8%

↑ EWJ 21.4%

Sharpe

1.70

↑ EWJ 1.18

Max Drawdown

-14.1%

↓ EWJ -11.2%

Alpha vs EWJ

+33.0%

↑ hit rate 54.5%

Performance as of Jul 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 Jul 11, 2026.

DateModel basket wealth indexEWJ
Jul 14, 20251.0000x1.0000x
Jul 15, 20251.0009x0.9901x
Jul 16, 20250.9928x0.9946x
Jul 17, 20251.0043x0.9997x
Jul 18, 20251.0064x0.9917x
Jul 22, 20251.0130x0.9968x
Jul 23, 20251.0800x1.0447x
Jul 24, 20251.1017x1.0455x
Jul 25, 20251.0888x1.0336x
Jul 28, 20251.0711x1.0144x
Jul 29, 20251.0539x1.0091x
Jul 30, 20251.0590x1.0104x
Jul 31, 20251.0651x1.0055x
Aug 1, 20251.0685x1.0117x
Aug 4, 20251.0468x1.0283x
Aug 5, 20251.0544x1.0248x
Aug 6, 20251.0762x1.0384x
Aug 7, 20251.0892x1.0465x
Aug 8, 20251.1275x1.0644x
Aug 12, 20251.1630x1.0841x
Aug 13, 20251.1747x1.0846x
Aug 14, 20251.1713x1.0782x
Aug 15, 20251.2236x1.0967x
Aug 18, 20251.2167x1.0987x
Aug 19, 20251.2018x1.0949x
Aug 20, 20251.1889x1.0897x
Aug 21, 20251.1792x1.0768x
Aug 22, 20251.2008x1.0949x
Aug 25, 20251.2056x1.0816x
Aug 26, 20251.1913x1.0798x
Aug 27, 20251.1900x1.0759x
Aug 28, 20251.2050x1.0849x
Aug 29, 20251.2004x1.0711x
Sep 2, 20251.1916x1.0693x
Sep 3, 20251.1650x1.0663x
Sep 4, 20251.1970x1.0772x
Sep 5, 20251.2077x1.0834x
Sep 8, 20251.2226x1.1077x
Sep 9, 20251.2095x1.0954x
Sep 10, 20251.2321x1.0995x
Sep 11, 20251.2399x1.1127x
Sep 12, 20251.2464x1.1050x
Sep 16, 20251.2492x1.1050x
Sep 17, 20251.2493x1.1026x
Sep 18, 20251.2630x1.1069x
Sep 19, 20251.2670x1.0974x
Sep 22, 20251.2764x1.1037x
Sep 24, 20251.2763x1.1004x
Sep 25, 20251.2974x1.0951x
Sep 26, 20251.2926x1.0948x
Sep 29, 20251.2611x1.0958x
Sep 30, 20251.2656x1.0917x
Oct 1, 20251.2415x1.0917x
Oct 2, 20251.2372x1.0909x
Oct 3, 20251.2607x1.1130x
Oct 6, 20251.3039x1.1333x
Oct 7, 20251.3093x1.1155x
Oct 8, 20251.3163x1.1126x
Oct 9, 20251.3417x1.1099x
Oct 10, 20251.3050x1.0665x
Oct 14, 20251.2710x1.0766x
Oct 15, 20251.2983x1.0934x
Oct 16, 20251.3185x1.0969x
Oct 17, 20251.2974x1.1029x
Oct 20, 20251.3471x1.1237x
Oct 21, 20251.3435x1.1106x
Oct 22, 20251.3407x1.1054x
Oct 23, 20251.3270x1.1059x
Oct 24, 20251.3363x1.1097x
Oct 27, 20251.3709x1.1235x
Oct 28, 20251.3673x1.1289x
Oct 29, 20251.3689x1.1195x
Oct 30, 20251.3675x1.1192x
Oct 31, 20251.3781x1.1225x
Nov 4, 20251.3578x1.1116x
Nov 5, 20251.3154x1.1112x
Nov 6, 20251.3473x1.1133x
Nov 7, 20251.3224x1.1178x
Nov 10, 20251.3343x1.1230x
Nov 11, 20251.3536x1.1239x
Nov 12, 20251.3774x1.1318x
Nov 13, 20251.3792x1.1140x
Nov 14, 20251.3666x1.1270x
Nov 17, 20251.3494x1.1068x
Nov 18, 20251.3000x1.0841x
Nov 19, 20251.2950x1.0827x
Nov 20, 20251.3160x1.0668x
Nov 21, 20251.3045x1.0896x
Nov 25, 20251.2734x1.0920x
Nov 26, 20251.3116x1.1098x
Nov 28, 20251.3179x1.1065x
Dec 1, 20251.3037x1.1001x
Dec 2, 20251.3008x1.0993x
Dec 3, 20251.2975x1.1012x
Dec 4, 20251.3404x1.1146x
Dec 5, 20251.3379x1.1157x
Dec 8, 20251.3303x1.1089x
Dec 9, 20251.3308x1.1105x
Dec 10, 20251.3212x1.1185x
Dec 11, 20251.2945x1.1226x
Dec 12, 20251.3337x1.1197x
Dec 15, 20251.3375x1.1313x
Dec 16, 20251.3096x1.0777x
Dec 17, 20251.3076x1.0629x
Dec 18, 20251.3002x1.0660x
Dec 19, 20251.3164x1.0741x
Dec 22, 20251.3314x1.0725x
Dec 23, 20251.3363x1.0816x
Dec 24, 20251.3150x1.0797x
Dec 26, 20251.3260x1.0793x
Dec 29, 20251.3280x1.0809x
Dec 30, 20251.3232x1.0794x
Jan 5, 20261.3513x1.1033x
Jan 6, 20261.3780x1.1025x
Jan 7, 20261.3543x1.1005x
Jan 8, 20261.3279x1.0997x
Jan 9, 20261.3386x1.1230x
Jan 13, 20261.3960x1.1119x
Jan 14, 20261.4029x1.1197x
Jan 15, 20261.4203x1.1247x
Jan 16, 20261.4104x1.1255x
Jan 20, 20261.3741x1.1023x
Jan 21, 20261.3587x1.1163x
Jan 22, 20261.3791x1.1173x
Jan 23, 20261.3798x1.1134x
Jan 26, 20261.3315x1.1143x
Jan 27, 20261.3334x1.1302x
Jan 28, 20261.3226x1.1219x
Jan 30, 20261.3343x1.1286x
Feb 2, 20261.3172x1.1309x
Feb 3, 20261.3637x1.1413x
Feb 4, 20261.3711x1.1519x
Feb 5, 20261.3552x1.1336x
Feb 6, 20261.3930x1.1771x
Feb 9, 20261.4036x1.2020x
Feb 10, 20261.4503x1.2258x
Feb 12, 20261.4662x1.2180x
Feb 13, 20261.4349x1.2242x
Feb 17, 20261.4045x1.1984x
Feb 18, 20261.4096x1.1920x
Feb 19, 20261.4267x1.1897x
Feb 20, 20261.3898x1.1932x
Feb 24, 20261.3746x1.1911x
Feb 25, 20261.3696x1.2069x
Feb 26, 20261.4054x1.2074x
Feb 27, 20261.4361x1.2060x
Mar 2, 20261.4215x1.1777x
Mar 3, 20261.3707x1.1337x
Mar 4, 20261.3136x1.1566x
Mar 5, 20261.3344x1.1214x
Mar 6, 20261.3513x1.1068x
Mar 9, 20261.2917x1.1181x
Mar 10, 20261.3236x1.1288x
Mar 11, 20261.3409x1.1193x
Mar 12, 20261.3238x1.0992x
Mar 13, 20261.3081x1.0884x
Mar 16, 20261.2966x1.1107x
Mar 17, 20261.2988x1.1108x
Mar 18, 20261.3290x1.0987x
Mar 19, 20261.2963x1.0978x
Mar 23, 20261.2600x1.1295x
Mar 24, 20261.2805x1.1259x
Mar 25, 20261.3191x1.1457x
Mar 26, 20261.3204x1.1182x
Mar 27, 20261.3324x1.1009x
Mar 30, 20261.2846x1.1021x
Mar 31, 20261.2623x1.1416x
Apr 1, 20261.3347x1.1691x
Apr 2, 20261.3089x1.1530x
Apr 6, 20261.3110x1.1568x
Apr 7, 20261.3117x1.1560x
Apr 8, 20261.3559x1.2087x
Apr 9, 20261.3407x1.1927x
Apr 10, 20261.3326x1.1914x
Apr 13, 20261.3269x1.1944x
Apr 14, 20261.3521x1.2087x
Apr 15, 20261.3760x1.2042x
Apr 16, 20261.4008x1.2087x
Apr 17, 20261.3742x1.2193x
Apr 20, 20261.3882x1.2077x
Apr 21, 20261.3840x1.1781x
Apr 22, 20261.3841x1.1864x
Apr 23, 20261.3730x1.1771x
Apr 24, 20261.3712x1.1805x
Apr 27, 20261.3659x1.1854x
Apr 28, 20261.3699x1.1837x
Apr 30, 20261.3413x1.2150x
May 1, 20261.3516x1.2041x
May 7, 20261.4002x1.1950x
May 8, 20261.3699x1.2111x
May 11, 20261.3837x1.2117x
May 12, 20261.4099x1.2090x
May 13, 20261.4533x1.2226x
May 14, 20261.4277x1.2090x
May 15, 20261.4543x1.1960x
May 18, 20261.4355x1.1941x
May 19, 20261.4534x1.1858x
May 20, 20261.4162x1.1979x
May 21, 20261.4624x1.2000x
May 22, 20261.4908x1.2031x
May 26, 20261.5223x1.2201x
May 27, 20261.4958x1.2121x
May 28, 20261.4779x1.2175x
May 29, 20261.4932x1.2209x
Jun 1, 20261.5163x1.2205x
Jun 2, 20261.5260x1.2290x
Jun 3, 20261.5324x1.2337x
Jun 4, 20261.4953x1.2362x
Jun 5, 20261.5056x1.1914x
Jun 8, 20261.4760x1.2076x
Jun 9, 20261.4740x1.1945x
Jun 10, 20261.4426x1.1727x
Jun 11, 20261.4240x1.2106x
Jun 12, 20261.4288x1.2176x
Jun 15, 20261.4814x1.2353x
Jun 16, 20261.4629x1.2361x
Jun 17, 20261.4583x1.2404x
Jun 18, 20261.4740x1.2642x
Jun 22, 20261.4584x1.2735x
Jun 23, 20261.4205x1.2181x
Jun 24, 20261.4202x1.2163x
Jun 25, 20261.4332x1.2265x
Jun 26, 20261.4170x1.2188x
Jun 29, 20261.4121x1.2241x
Jun 30, 20261.4042x1.2249x
Jul 1, 20261.4074x1.2220x
Jul 2, 20261.4393x1.2232x
Jul 6, 20261.4690x1.2512x
Jul 7, 20261.4809x1.2223x
Jul 8, 20261.4675x1.2153x
Jul 9, 20261.4495x1.2282x

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

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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.