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
+29.2%

Performance as of Sep 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 Sep 11, 2026.

Total Return

+29.2%

↑ EWJ +13.6%

Ann. Return

+32.1%

↑ EWJ +14.9%

Ann. Vol

27.9%

↑ EWJ 21.6%

Sharpe

1.15

↑ EWJ 0.69

Max Drawdown

-14.1%

↓ EWJ -11.2%

Alpha vs EWJ

+27.2%

↑ hit rate 53.4%

Performance as of Sep 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 Sep 11, 2026.

DateModel basket wealth indexEWJ
Sep 12, 20251.0000x1.0000x
Sep 16, 20251.0023x1.0000x
Sep 17, 20251.0024x0.9978x
Sep 18, 20251.0133x1.0017x
Sep 19, 20251.0165x0.9931x
Sep 22, 20251.0241x0.9988x
Sep 24, 20251.0240x0.9958x
Sep 25, 20251.0409x0.9910x
Sep 26, 20251.0371x0.9908x
Sep 29, 20251.0118x0.9916x
Sep 30, 20251.0154x0.9879x
Oct 1, 20250.9960x0.9879x
Oct 2, 20250.9926x0.9872x
Oct 3, 20251.0114x1.0073x
Oct 6, 20251.0461x1.0256x
Oct 7, 20251.0505x1.0095x
Oct 8, 20251.0560x1.0069x
Oct 9, 20251.0764x1.0044x
Oct 10, 20251.0470x0.9651x
Oct 14, 20251.0198x0.9743x
Oct 15, 20251.0417x0.9895x
Oct 16, 20251.0578x0.9927x
Oct 17, 20251.0409x0.9981x
Oct 20, 20251.0808x1.0169x
Oct 21, 20251.0779x1.0051x
Oct 22, 20251.0756x1.0003x
Oct 23, 20251.0647x1.0008x
Oct 24, 20251.0721x1.0042x
Oct 27, 20251.0999x1.0168x
Oct 28, 20251.0970x1.0216x
Oct 29, 20251.0983x1.0131x
Oct 30, 20251.0972x1.0129x
Oct 31, 20251.1056x1.0158x
Nov 4, 20251.0894x1.0059x
Nov 5, 20251.0554x1.0056x
Nov 6, 20251.0810x1.0075x
Nov 7, 20251.0610x1.0115x
Nov 10, 20251.0706x1.0163x
Nov 11, 20251.0860x1.0171x
Nov 12, 20251.1051x1.0243x
Nov 13, 20251.1066x1.0081x
Nov 14, 20251.0964x1.0199x
Nov 17, 20251.0827x1.0016x
Nov 18, 20251.0430x0.9810x
Nov 19, 20251.0390x0.9798x
Nov 20, 20251.0559x0.9654x
Nov 21, 20251.0466x0.9860x
Nov 25, 20251.0217x0.9882x
Nov 26, 20251.0524x1.0044x
Nov 28, 20251.0574x1.0013x
Dec 1, 20251.0460x0.9956x
Dec 2, 20251.0436x0.9948x
Dec 3, 20251.0410x0.9965x
Dec 4, 20251.0754x1.0087x
Dec 5, 20251.0734x1.0097x
Dec 8, 20251.0673x1.0035x
Dec 9, 20251.0677x1.0050x
Dec 10, 20251.0600x1.0122x
Dec 11, 20251.0386x1.0159x
Dec 12, 20251.0700x1.0133x
Dec 15, 20251.0731x1.0238x
Dec 16, 20251.0507x0.9753x
Dec 17, 20251.0491x0.9619x
Dec 18, 20251.0432x0.9647x
Dec 19, 20251.0561x0.9720x
Dec 22, 20251.0682x0.9706x
Dec 23, 20251.0721x0.9788x
Dec 24, 20251.0550x0.9771x
Dec 26, 20251.0639x0.9767x
Dec 29, 20251.0655x0.9782x
Dec 30, 20251.0616x0.9769x
Jan 5, 20261.0842x0.9985x
Jan 6, 20261.1056x0.9978x
Jan 7, 20261.0865x0.9960x
Jan 8, 20261.0654x0.9952x
Jan 9, 20261.0740x1.0163x
Jan 13, 20261.1200x1.0062x
Jan 14, 20261.1255x1.0133x
Jan 15, 20261.1395x1.0178x
Jan 16, 20261.1316x1.0185x
Jan 20, 20261.1025x0.9975x
Jan 21, 20261.0901x1.0102x
Jan 22, 20261.1065x1.0111x
Jan 23, 20261.1071x1.0076x
Jan 26, 20261.0683x1.0084x
Jan 27, 20261.0698x1.0228x
Jan 28, 20261.0611x1.0153x
Jan 30, 20261.0705x1.0214x
Feb 2, 20261.0568x1.0234x
Feb 3, 20261.0941x1.0328x
Feb 4, 20261.1000x1.0425x
Feb 5, 20261.0873x1.0259x
Feb 6, 20261.1176x1.0652x
Feb 9, 20261.1262x1.0877x
Feb 10, 20261.1636x1.1093x
Feb 12, 20261.1764x1.1022x
Feb 13, 20261.1512x1.1079x
Feb 17, 20261.1269x1.0845x
Feb 18, 20261.1309x1.0787x
Feb 19, 20261.1447x1.0766x
Feb 20, 20261.1151x1.0798x
Feb 24, 20261.1029x1.0779x
Feb 25, 20261.0988x1.0922x
Feb 26, 20261.1276x1.0927x
Feb 27, 20261.1522x1.0914x
Mar 2, 20261.1405x1.0657x
Mar 3, 20261.0997x1.0259x
Mar 4, 20261.0539x1.0467x
Mar 5, 20261.0706x1.0148x
Mar 6, 20261.0841x1.0016x
Mar 9, 20261.0364x1.0119x
Mar 10, 20261.0619x1.0216x
Mar 11, 20261.0758x1.0129x
Mar 12, 20261.0621x0.9947x
Mar 13, 20261.0495x0.9849x
Mar 16, 20261.0403x1.0051x
Mar 17, 20261.0421x1.0052x
Mar 18, 20261.0663x0.9943x
Mar 19, 20261.0400x0.9934x
Mar 23, 20261.0109x1.0222x
Mar 24, 20261.0274x1.0189x
Mar 25, 20261.0583x1.0369x
Mar 26, 20261.0594x1.0119x
Mar 27, 20261.0690x0.9962x
Mar 30, 20261.0306x0.9973x
Mar 31, 20261.0127x1.0331x
Apr 1, 20261.0709x1.0580x
Apr 2, 20261.0502x1.0435x
Apr 6, 20261.0519x1.0469x
Apr 7, 20261.0524x1.0462x
Apr 8, 20261.0878x1.0939x
Apr 9, 20261.0757x1.0793x
Apr 10, 20261.0692x1.0782x
Apr 13, 20261.0646x1.0809x
Apr 14, 20261.0848x1.0939x
Apr 15, 20261.1039x1.0897x
Apr 16, 20261.1239x1.0939x
Apr 17, 20261.1026x1.1034x
Apr 20, 20261.1138x1.0929x
Apr 21, 20261.1104x1.0661x
Apr 22, 20261.1105x1.0737x
Apr 23, 20261.1016x1.0652x
Apr 24, 20261.1002x1.0683x
Apr 27, 20261.0959x1.0727x
Apr 28, 20261.0991x1.0712x
Apr 30, 20261.0762x1.0995x
May 1, 20261.0844x1.0896x
May 7, 20261.1234x1.0814x
May 8, 20261.0991x1.0960x
May 11, 20261.1101x1.0965x
May 12, 20261.1312x1.0941x
May 13, 20261.1660x1.1064x
May 14, 20261.1454x1.0941x
May 15, 20261.1668x1.0824x
May 18, 20261.1517x1.0806x
May 19, 20261.1661x1.0731x
May 20, 20261.1363x1.0840x
May 21, 20261.1733x1.0859x
May 22, 20261.1961x1.0888x
May 26, 20261.2214x1.1041x
May 27, 20261.2001x1.0969x
May 28, 20261.1857x1.1018x
May 29, 20261.1980x1.1048x
Jun 1, 20261.2165x1.1045x
Jun 2, 20261.2243x1.1122x
Jun 3, 20261.2295x1.1165x
Jun 4, 20261.1997x1.1187x
Jun 5, 20261.2079x1.0782x
Jun 8, 20261.1842x1.0928x
Jun 9, 20261.1826x1.0810x
Jun 10, 20261.1574x1.0612x
Jun 11, 20261.1425x1.0956x
Jun 12, 20261.1464x1.1019x
Jun 15, 20261.1886x1.1179x
Jun 16, 20261.1737x1.1186x
Jun 17, 20261.1700x1.1226x
Jun 18, 20261.1826x1.1441x
Jun 22, 20261.1701x1.1525x
Jun 23, 20261.1397x1.1023x
Jun 24, 20261.1394x1.1007x
Jun 25, 20261.1499x1.1100x
Jun 26, 20261.1369x1.1029x
Jun 29, 20261.1330x1.1078x
Jun 30, 20261.1266x1.1085x
Jul 1, 20261.1292x1.1059x
Jul 2, 20261.1547x1.1070x
Jul 6, 20261.1786x1.1323x
Jul 7, 20261.1881x1.1062x
Jul 8, 20261.1774x1.0999x
Jul 9, 20261.1629x1.1115x
Jul 10, 20261.1821x1.1237x
Jul 13, 20261.1872x1.1020x
Jul 14, 20261.2069x1.1159x
Jul 15, 20261.2169x1.1113x
Jul 16, 20261.2051x1.0924x
Jul 17, 20261.1736x1.0755x
Jul 21, 20261.2037x1.1030x
Jul 22, 20261.2146x1.0964x
Jul 23, 20261.2310x1.0835x
Jul 24, 20261.2100x1.0848x
Jul 27, 20261.2268x1.0883x
Jul 28, 20261.2154x1.0684x
Jul 29, 20261.2351x1.0626x
Jul 30, 20261.2084x1.1095x
Jul 31, 20261.2306x1.0988x
Aug 3, 20261.2106x1.1050x
Aug 4, 20261.1863x1.1252x
Aug 5, 20261.2170x1.1317x
Aug 6, 20261.2267x1.1316x
Aug 7, 20261.2310x1.1524x
Aug 10, 20261.2262x1.1423x
Aug 12, 20261.2388x1.1602x
Aug 13, 20261.2439x1.1683x
Aug 14, 20261.2650x1.1652x
Aug 17, 20261.2546x1.1647x
Aug 18, 20261.2515x1.1315x
Aug 19, 20261.2029x1.1245x
Aug 20, 20261.2258x1.1185x
Aug 21, 20261.2353x1.1293x
Aug 24, 20261.2268x1.1252x
Aug 25, 20261.2294x1.1346x
Aug 26, 20261.2379x1.1322x
Aug 27, 20261.2427x1.1371x
Aug 28, 20261.2554x1.1375x
Aug 31, 20261.2697x1.1376x
Sep 1, 20261.2887x1.1297x
Sep 2, 20261.2525x1.1395x
Sep 3, 20261.2639x1.1615x
Sep 4, 20261.2808x1.1661x
Sep 8, 20261.2740x1.1623x
Sep 9, 20261.2770x1.1509x
Sep 10, 20261.2854x1.1442x

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.