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
+28.6%

Performance as of Aug 26, 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 Aug 26, 2026.

Total Return

+28.6%

↑ EWJ +16.1%

Ann. Return

+31.4%

↑ EWJ +17.6%

Ann. Vol

28.0%

↑ EWJ 21.7%

Sharpe

1.12

↑ EWJ 0.81

Max Drawdown

-14.1%

↓ EWJ -11.2%

Alpha vs EWJ

+25.6%

↑ hit rate 53.4%

Performance as of Aug 26, 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 Aug 26, 2026.

DateModel basket wealth indexEWJ
Aug 27, 20251.0000x1.0000x
Aug 28, 20251.0126x1.0084x
Aug 29, 20251.0087x0.9955x
Sep 2, 20251.0013x0.9939x
Sep 3, 20250.9790x0.9911x
Sep 4, 20251.0059x1.0013x
Sep 5, 20251.0149x1.0070x
Sep 8, 20251.0274x1.0296x
Sep 9, 20251.0164x1.0182x
Sep 10, 20251.0354x1.0220x
Sep 11, 20251.0419x1.0342x
Sep 12, 20251.0474x1.0271x
Sep 16, 20251.0497x1.0271x
Sep 17, 20251.0498x1.0248x
Sep 18, 20251.0613x1.0289x
Sep 19, 20251.0646x1.0200x
Sep 22, 20251.0726x1.0258x
Sep 24, 20251.0725x1.0228x
Sep 25, 20251.0902x1.0179x
Sep 26, 20251.0862x1.0176x
Sep 29, 20251.0597x1.0185x
Sep 30, 20251.0635x1.0147x
Oct 1, 20251.0432x1.0147x
Oct 2, 20251.0396x1.0139x
Oct 3, 20251.0594x1.0346x
Oct 6, 20251.0957x1.0534x
Oct 7, 20251.1002x1.0368x
Oct 8, 20251.1061x1.0342x
Oct 9, 20251.1274x1.0316x
Oct 10, 20251.0966x0.9913x
Oct 14, 20251.0681x1.0007x
Oct 15, 20251.0910x1.0163x
Oct 16, 20251.1079x1.0195x
Oct 17, 20251.0902x1.0252x
Oct 20, 20251.1320x1.0444x
Oct 21, 20251.1289x1.0323x
Oct 22, 20251.1266x1.0274x
Oct 23, 20251.1151x1.0279x
Oct 24, 20251.1229x1.0314x
Oct 27, 20251.1519x1.0443x
Oct 28, 20251.1490x1.0493x
Oct 29, 20251.1503x1.0405x
Oct 30, 20251.1492x1.0403x
Oct 31, 20251.1580x1.0433x
Nov 4, 20251.1409x1.0332x
Nov 5, 20251.1054x1.0328x
Nov 6, 20251.1322x1.0348x
Nov 7, 20251.1113x1.0389x
Nov 10, 20251.1213x1.0438x
Nov 11, 20251.1374x1.0447x
Nov 12, 20251.1574x1.0520x
Nov 13, 20251.1590x1.0354x
Nov 14, 20251.1483x1.0475x
Nov 17, 20251.1340x1.0287x
Nov 18, 20251.0924x1.0076x
Nov 19, 20251.0882x1.0064x
Nov 20, 20251.1059x0.9915x
Nov 21, 20251.0961x1.0127x
Nov 25, 20251.0701x1.0150x
Nov 26, 20251.1022x1.0316x
Nov 28, 20251.1075x1.0285x
Dec 1, 20251.0955x1.0225x
Dec 2, 20251.0931x1.0218x
Dec 3, 20251.0903x1.0235x
Dec 4, 20251.1264x1.0360x
Dec 5, 20251.1242x1.0370x
Dec 8, 20251.1179x1.0307x
Dec 9, 20251.1183x1.0322x
Dec 10, 20251.1102x1.0396x
Dec 11, 20251.0878x1.0435x
Dec 12, 20251.1207x1.0407x
Dec 15, 20251.1239x1.0515x
Dec 16, 20251.1004x1.0017x
Dec 17, 20251.0988x0.9880x
Dec 18, 20251.0926x0.9908x
Dec 19, 20251.1062x0.9984x
Dec 22, 20251.1188x0.9969x
Dec 23, 20251.1229x1.0053x
Dec 24, 20251.1050x1.0036x
Dec 26, 20251.1143x1.0032x
Dec 29, 20251.1159x1.0047x
Dec 30, 20251.1119x1.0033x
Jan 5, 20261.1355x1.0255x
Jan 6, 20261.1580x1.0248x
Jan 7, 20261.1380x1.0229x
Jan 8, 20261.1159x1.0222x
Jan 9, 20261.1249x1.0438x
Jan 13, 20261.1731x1.0335x
Jan 14, 20261.1788x1.0407x
Jan 15, 20261.1935x1.0454x
Jan 16, 20261.1852x1.0461x
Jan 20, 20261.1547x1.0246x
Jan 21, 20261.1417x1.0375x
Jan 22, 20261.1589x1.0385x
Jan 23, 20261.1595x1.0349x
Jan 26, 20261.1189x1.0357x
Jan 27, 20261.1205x1.0505x
Jan 28, 20261.1114x1.0428x
Jan 30, 20261.1212x1.0490x
Feb 2, 20261.1069x1.0511x
Feb 3, 20261.1460x1.0608x
Feb 4, 20261.1521x1.0707x
Feb 5, 20261.1388x1.0537x
Feb 6, 20261.1705x1.0941x
Feb 9, 20261.1795x1.1172x
Feb 10, 20261.2187x1.1394x
Feb 12, 20261.2321x1.1321x
Feb 13, 20261.2058x1.1379x
Feb 17, 20261.1802x1.1139x
Feb 18, 20261.1845x1.1080x
Feb 19, 20261.1989x1.1058x
Feb 20, 20261.1679x1.1091x
Feb 24, 20261.1551x1.1071x
Feb 25, 20261.1509x1.1218x
Feb 26, 20261.1810x1.1223x
Feb 27, 20261.2068x1.1209x
Mar 2, 20261.1945x1.0946x
Mar 3, 20261.1518x1.0537x
Mar 4, 20261.1038x1.0751x
Mar 5, 20261.1213x1.0423x
Mar 6, 20261.1355x1.0287x
Mar 9, 20261.0854x1.0393x
Mar 10, 20261.1122x1.0492x
Mar 11, 20261.1268x1.0404x
Mar 12, 20261.1124x1.0217x
Mar 13, 20261.0992x1.0116x
Mar 16, 20261.0895x1.0324x
Mar 17, 20261.0914x1.0325x
Mar 18, 20261.1168x1.0212x
Mar 19, 20261.0893x1.0203x
Mar 23, 20261.0588x1.0499x
Mar 24, 20261.0761x1.0465x
Mar 25, 20261.1085x1.0650x
Mar 26, 20261.1095x1.0393x
Mar 27, 20261.1196x1.0232x
Mar 30, 20261.0795x1.0244x
Mar 31, 20261.0607x1.0611x
Apr 1, 20261.1216x1.0867x
Apr 2, 20261.0999x1.0717x
Apr 6, 20261.1017x1.0753x
Apr 7, 20261.1023x1.0745x
Apr 8, 20261.1393x1.1235x
Apr 9, 20261.1266x1.1086x
Apr 10, 20261.1198x1.1074x
Apr 13, 20261.1150x1.1102x
Apr 14, 20261.1362x1.1235x
Apr 15, 20261.1562x1.1192x
Apr 16, 20261.1771x1.1235x
Apr 17, 20261.1548x1.1333x
Apr 20, 20261.1666x1.1225x
Apr 21, 20261.1630x1.0950x
Apr 22, 20261.1631x1.1028x
Apr 23, 20261.1538x1.0941x
Apr 24, 20261.1523x1.0972x
Apr 27, 20261.1478x1.1018x
Apr 28, 20261.1512x1.1003x
Apr 30, 20261.1271x1.1293x
May 1, 20261.1358x1.1191x
May 7, 20261.1766x1.1107x
May 8, 20261.1511x1.1257x
May 11, 20261.1627x1.1262x
May 12, 20261.1847x1.1238x
May 13, 20261.2212x1.1364x
May 14, 20261.1997x1.1238x
May 15, 20261.2221x1.1117x
May 18, 20261.2062x1.1099x
May 19, 20261.2213x1.1022x
May 20, 20261.1901x1.1134x
May 21, 20261.2289x1.1154x
May 22, 20261.2527x1.1183x
May 26, 20261.2793x1.1340x
May 27, 20261.2570x1.1266x
May 28, 20261.2419x1.1316x
May 29, 20261.2548x1.1348x
Jun 1, 20261.2742x1.1344x
Jun 2, 20261.2823x1.1423x
Jun 3, 20261.2877x1.1467x
Jun 4, 20261.2565x1.1491x
Jun 5, 20261.2651x1.1074x
Jun 8, 20261.2403x1.1224x
Jun 9, 20261.2386x1.1102x
Jun 10, 20261.2122x1.0900x
Jun 11, 20261.1966x1.1253x
Jun 12, 20261.2007x1.1317x
Jun 15, 20261.2449x1.1482x
Jun 16, 20261.2293x1.1489x
Jun 17, 20261.2255x1.1530x
Jun 18, 20261.2386x1.1751x
Jun 22, 20261.2255x1.1837x
Jun 23, 20261.1937x1.1322x
Jun 24, 20261.1934x1.1305x
Jun 25, 20261.2044x1.1400x
Jun 26, 20261.1907x1.1328x
Jun 29, 20261.1866x1.1378x
Jun 30, 20261.1800x1.1386x
Jul 1, 20261.1827x1.1359x
Jul 2, 20261.2094x1.1370x
Jul 6, 20261.2344x1.1630x
Jul 7, 20261.2444x1.1361x
Jul 8, 20261.2331x1.1296x
Jul 9, 20261.2180x1.1416x
Jul 10, 20261.2381x1.1542x
Jul 13, 20261.2435x1.1318x
Jul 14, 20261.2641x1.1461x
Jul 15, 20261.2745x1.1414x
Jul 16, 20261.2622x1.1220x
Jul 17, 20261.2292x1.1046x
Jul 21, 20261.2607x1.1328x
Jul 22, 20261.2722x1.1261x
Jul 23, 20261.2893x1.1128x
Jul 24, 20261.2673x1.1141x
Jul 27, 20261.2849x1.1178x
Jul 28, 20261.2730x1.0973x
Jul 29, 20261.2936x1.0914x
Jul 30, 20261.2657x1.1396x
Jul 31, 20261.2889x1.1286x
Aug 3, 20261.2680x1.1349x
Aug 4, 20261.2425x1.1557x
Aug 5, 20261.2747x1.1624x
Aug 6, 20261.2848x1.1623x
Aug 7, 20261.2893x1.1837x
Aug 10, 20261.2843x1.1733x
Aug 12, 20261.2975x1.1917x
Aug 13, 20261.3029x1.2000x
Aug 14, 20261.3249x1.1968x
Aug 17, 20261.3140x1.1963x
Aug 18, 20261.3108x1.1622x
Aug 19, 20261.2599x1.1550x
Aug 20, 20261.2838x1.1488x
Aug 21, 20261.2939x1.1599x
Aug 24, 20261.2849x1.1557x
Aug 25, 20261.2877x1.1653x

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

Use QuantLink's screener and company pages to inspect fundamentals, valuation, and market data after reviewing the public thesis.

Related links

Discovery

Public research

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.