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
+27.7%

Performance as of Aug 23, 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 23, 2026.

Total Return

+27.7%

↑ EWJ +15.4%

Ann. Return

+30.6%

↑ EWJ +16.9%

Ann. Vol

28.1%

↑ EWJ 21.7%

Sharpe

1.09

↑ EWJ 0.78

Max Drawdown

-14.1%

↓ EWJ -11.2%

Alpha vs EWJ

+25.1%

↑ hit rate 53.7%

Performance as of Aug 23, 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 23, 2026.

DateModel basket wealth indexEWJ
Aug 26, 20251.0000x1.0000x
Aug 27, 20250.9989x0.9963x
Aug 28, 20251.0115x1.0047x
Aug 29, 20251.0076x0.9919x
Sep 2, 20251.0002x0.9902x
Sep 3, 20250.9779x0.9875x
Sep 4, 20251.0048x0.9976x
Sep 5, 20251.0137x1.0033x
Sep 8, 20251.0262x1.0258x
Sep 9, 20251.0153x1.0144x
Sep 10, 20251.0342x1.0182x
Sep 11, 20251.0408x1.0304x
Sep 12, 20251.0462x1.0233x
Sep 16, 20251.0486x1.0233x
Sep 17, 20251.0487x1.0211x
Sep 18, 20251.0602x1.0251x
Sep 19, 20251.0635x1.0163x
Sep 22, 20251.0714x1.0221x
Sep 24, 20251.0713x1.0190x
Sep 25, 20251.0890x1.0141x
Sep 26, 20251.0850x1.0139x
Sep 29, 20251.0586x1.0147x
Sep 30, 20251.0623x1.0110x
Oct 1, 20251.0421x1.0110x
Oct 2, 20251.0385x1.0102x
Oct 3, 20251.0582x1.0308x
Oct 6, 20251.0945x1.0495x
Oct 7, 20251.0990x1.0330x
Oct 8, 20251.1049x1.0304x
Oct 9, 20251.1262x1.0279x
Oct 10, 20251.0954x0.9876x
Oct 14, 20251.0669x0.9970x
Oct 15, 20251.0898x1.0126x
Oct 16, 20251.1067x1.0158x
Oct 17, 20251.0890x1.0214x
Oct 20, 20251.1308x1.0406x
Oct 21, 20251.1277x1.0285x
Oct 22, 20251.1253x1.0236x
Oct 23, 20251.1139x1.0241x
Oct 24, 20251.1217x1.0276x
Oct 27, 20251.1507x1.0405x
Oct 28, 20251.1477x1.0454x
Oct 29, 20251.1491x1.0367x
Oct 30, 20251.1479x1.0365x
Oct 31, 20251.1567x1.0395x
Nov 4, 20251.1397x1.0294x
Nov 5, 20251.1041x1.0290x
Nov 6, 20251.1309x1.0310x
Nov 7, 20251.1100x1.0351x
Nov 10, 20251.1200x1.0400x
Nov 11, 20251.1362x1.0408x
Nov 12, 20251.1562x1.0482x
Nov 13, 20251.1577x1.0316x
Nov 14, 20251.1471x1.0437x
Nov 17, 20251.1327x1.0249x
Nov 18, 20251.0912x1.0039x
Nov 19, 20251.0870x1.0027x
Nov 20, 20251.1047x0.9879x
Nov 21, 20251.0949x1.0090x
Nov 25, 20251.0689x1.0112x
Nov 26, 20251.1010x1.0278x
Nov 28, 20251.1063x1.0247x
Dec 1, 20251.0943x1.0188x
Dec 2, 20251.0919x1.0180x
Dec 3, 20251.0891x1.0198x
Dec 4, 20251.1251x1.0322x
Dec 5, 20251.1230x1.0332x
Dec 8, 20251.1167x1.0269x
Dec 9, 20251.1170x1.0284x
Dec 10, 20251.1090x1.0358x
Dec 11, 20251.0866x1.0396x
Dec 12, 20251.1195x1.0369x
Dec 15, 20251.1227x1.0477x
Dec 16, 20251.0992x0.9980x
Dec 17, 20251.0976x0.9843x
Dec 18, 20251.0914x0.9872x
Dec 19, 20251.1049x0.9947x
Dec 22, 20251.1175x0.9932x
Dec 23, 20251.1217x1.0016x
Dec 24, 20251.1038x0.9999x
Dec 26, 20251.1131x0.9995x
Dec 29, 20251.1147x1.0010x
Dec 30, 20251.1107x0.9996x
Jan 5, 20261.1343x1.0218x
Jan 6, 20261.1567x1.0210x
Jan 7, 20261.1368x1.0192x
Jan 8, 20261.1147x1.0184x
Jan 9, 20261.1237x1.0400x
Jan 13, 20261.1718x1.0297x
Jan 14, 20261.1775x1.0369x
Jan 15, 20261.1922x1.0415x
Jan 16, 20261.1839x1.0423x
Jan 20, 20261.1534x1.0208x
Jan 21, 20261.1405x1.0337x
Jan 22, 20261.1576x1.0347x
Jan 23, 20261.1582x1.0310x
Jan 26, 20261.1176x1.0319x
Jan 27, 20261.1193x1.0467x
Jan 28, 20261.1102x1.0390x
Jan 30, 20261.1200x1.0452x
Feb 2, 20261.1056x1.0473x
Feb 3, 20261.1447x1.0569x
Feb 4, 20261.1509x1.0668x
Feb 5, 20261.1375x1.0498x
Feb 6, 20261.1692x1.0901x
Feb 9, 20261.1782x1.1131x
Feb 10, 20261.2174x1.1352x
Feb 12, 20261.2307x1.1279x
Feb 13, 20261.2044x1.1337x
Feb 17, 20261.1789x1.1098x
Feb 18, 20261.1832x1.1039x
Feb 19, 20261.1976x1.1017x
Feb 20, 20261.1666x1.1050x
Feb 24, 20261.1539x1.1030x
Feb 25, 20261.1496x1.1177x
Feb 26, 20261.1797x1.1182x
Feb 27, 20261.2055x1.1168x
Mar 2, 20261.1932x1.0906x
Mar 3, 20261.1505x1.0498x
Mar 4, 20261.1026x1.0711x
Mar 5, 20261.1201x1.0385x
Mar 6, 20261.1342x1.0249x
Mar 9, 20261.0842x1.0355x
Mar 10, 20261.1110x1.0454x
Mar 11, 20261.1255x1.0365x
Mar 12, 20261.1112x1.0179x
Mar 13, 20261.0980x1.0079x
Mar 16, 20261.0883x1.0286x
Mar 17, 20261.0902x1.0287x
Mar 18, 20261.1155x1.0174x
Mar 19, 20261.0881x1.0166x
Mar 23, 20261.0576x1.0460x
Mar 24, 20261.0749x1.0426x
Mar 25, 20261.1073x1.0610x
Mar 26, 20261.1083x1.0355x
Mar 27, 20261.1184x1.0195x
Mar 30, 20261.0783x1.0206x
Mar 31, 20261.0595x1.0572x
Apr 1, 20261.1204x1.0827x
Apr 2, 20261.0987x1.0678x
Apr 6, 20261.1005x1.0713x
Apr 7, 20261.1010x1.0706x
Apr 8, 20261.1381x1.1194x
Apr 9, 20261.1254x1.1045x
Apr 10, 20261.1186x1.1034x
Apr 13, 20261.1138x1.1061x
Apr 14, 20261.1350x1.1194x
Apr 15, 20261.1550x1.1151x
Apr 16, 20261.1758x1.1194x
Apr 17, 20261.1535x1.1291x
Apr 20, 20261.1653x1.1184x
Apr 21, 20261.1617x1.0910x
Apr 22, 20261.1618x1.0987x
Apr 23, 20261.1525x1.0901x
Apr 24, 20261.1510x1.0932x
Apr 27, 20261.1465x1.0977x
Apr 28, 20261.1499x1.0962x
Apr 30, 20261.1259x1.1251x
May 1, 20261.1346x1.1150x
May 7, 20261.1754x1.1066x
May 8, 20261.1498x1.1216x
May 11, 20261.1614x1.1221x
May 12, 20261.1834x1.1197x
May 13, 20261.2199x1.1322x
May 14, 20261.1984x1.1197x
May 15, 20261.2208x1.1076x
May 18, 20261.2049x1.1058x
May 19, 20261.2200x1.0981x
May 20, 20261.1888x1.1093x
May 21, 20261.2276x1.1113x
May 22, 20261.2513x1.1142x
May 26, 20261.2779x1.1299x
May 27, 20261.2556x1.1225x
May 28, 20261.2405x1.1274x
May 29, 20261.2534x1.1306x
Jun 1, 20261.2728x1.1302x
Jun 2, 20261.2809x1.1381x
Jun 3, 20261.2863x1.1425x
Jun 4, 20261.2552x1.1448x
Jun 5, 20261.2638x1.1034x
Jun 8, 20261.2389x1.1183x
Jun 9, 20261.2372x1.1062x
Jun 10, 20261.2109x1.0860x
Jun 11, 20261.1953x1.1211x
Jun 12, 20261.1993x1.1276x
Jun 15, 20261.2435x1.1440x
Jun 16, 20261.2279x1.1447x
Jun 17, 20261.2241x1.1487x
Jun 18, 20261.2372x1.1707x
Jun 22, 20261.2241x1.1794x
Jun 23, 20261.1923x1.1280x
Jun 24, 20261.1921x1.1263x
Jun 25, 20261.2030x1.1358x
Jun 26, 20261.1894x1.1287x
Jun 29, 20261.1853x1.1336x
Jun 30, 20261.1787x1.1344x
Jul 1, 20261.1814x1.1317x
Jul 2, 20261.2081x1.1328x
Jul 6, 20261.2331x1.1587x
Jul 7, 20261.2430x1.1319x
Jul 8, 20261.2318x1.1255x
Jul 9, 20261.2167x1.1374x
Jul 10, 20261.2367x1.1499x
Jul 13, 20261.2421x1.1277x
Jul 14, 20261.2627x1.1419x
Jul 15, 20261.2731x1.1372x
Jul 16, 20261.2608x1.1178x
Jul 17, 20261.2278x1.1006x
Jul 21, 20261.2593x1.1287x
Jul 22, 20261.2708x1.1220x
Jul 23, 20261.2879x1.1087x
Jul 24, 20261.2660x1.1101x
Jul 27, 20261.2835x1.1137x
Jul 28, 20261.2716x1.0933x
Jul 29, 20261.2922x1.0874x
Jul 30, 20261.2643x1.1354x
Jul 31, 20261.2875x1.1244x
Aug 3, 20261.2666x1.1307x
Aug 4, 20261.2411x1.1514x
Aug 5, 20261.2733x1.1581x
Aug 6, 20261.2834x1.1580x
Aug 7, 20261.2879x1.1793x
Aug 10, 20261.2829x1.1690x
Aug 12, 20261.2960x1.1873x
Aug 13, 20261.3014x1.1955x
Aug 14, 20261.3234x1.1924x
Aug 17, 20261.3125x1.1919x
Aug 18, 20261.3093x1.1579x
Aug 19, 20261.2585x1.1507x
Aug 20, 20261.2824x1.1446x
Aug 21, 20261.2924x1.1556x

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.