Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

<ul>
<li>In the TOPIX Index, some "low liquidity" names carry a liquidity factor of 0.75x resulting in their actual index weights being smaller than their default weights.</li>
<li>These names are reviewed every April and if the liquidity factor of a stock gets removed, the stock will see index inflows from passive trackers of TOPIX.</li>
<li>In this insight, we take a look at Quiddity's final predictions for the names that are likely to see their Liquidity Factors removed in April 2026 and their flow implications.</li>
</ul>


In the TOPIX Index, some "low liquidity" names carry a liquidity factor of 0.75x resulting in their actual index weights being smaller than their default weights.
These names are reviewed every April and if the liquidity factor of a stock gets removed, the stock will see index inflows from passive trackers of TOPIX.
In this insight, we take a look at Quiddity's final predictions for the names that are likely to see their Liquidity Factors removed in April 2026 and their flow implications.


TOPIX Index Upweights: Final Expectations For "The Big April Basket" 2026

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sony-financial-group-inc" target="_blank" data-smartkarma-citation="entities:564:1" rel="noopener">Sony Financial Group (8729 JP)</a> saw shares soar the first few days post-listing then fall back. Now they are near a post-listing low, despite ESR rising on InterestRate-adjusted basis.</li>
<li>The company has bought back ¥70bn of the ¥100bn buyback plan but shares have fallen as former <a href="https://www.smartkarma.com/entities/sony-corp" target="_blank" data-smartkarma-citation="entities:563:1" rel="noopener">Sony Corp (6758 JP)</a>  holders have sold.</li>
<li>At yesterday's close of ¥146.4, shares are at a 5.1% dividend yield (before buying back more shares) and 7.8x Mar27e IFRS Adjusted Net Income. That seems relatively inexpensive. </li>
</ul>



Sony Financial Group (8729 JP) saw shares soar the first few days post-listing then fall back. Now they are near a post-listing low, despite ESR rising on InterestRate-adjusted basis.
The company has bought back ¥70bn of the ¥100bn buyback plan but shares have fallen as former Sony Corp (6758 JP)  holders have sold.
At yesterday's close of ¥146.4, shares are at a 5.1% dividend yield (before buying back more shares) and 7.8x Mar27e IFRS Adjusted Net Income. That seems relatively inexpensive. 


Sony Financial Group (8729) - Cheap Vs Peers and Growing Out of Its ROE Hole

Event-Driven

<ul>
<li>Today is the last day of trading for <a href="https://www.smartkarma.com/entities/sony-corp" target="_blank" data-smartkarma-citation="entities:563:1" rel="noopener">Sony Corp (6758 JP)</a> with <a href="https://www.smartkarma.com/entities/sony-financial-group-inc" target="_blank" data-smartkarma-citation="entities:564:1" rel="noopener">Sony Financial Group (8729 JP)</a> spin-off rights. SFGI starts trading separately on Monday 29 Sep.</li>
<li>The reference price is ¥150/share. It will likely stay in all major indices except Nikkei 225, and it likely needs low ¥160s to stay in M _ _ _. </li>
<li>The estimated Div Yield is higher on SFGI than peers by a fair ways, and looks to grow, and there is a big buyback to come. I like it.</li>
</ul>


Today is the last day of trading for Sony Corp (6758 JP) with Sony Financial Group (8729 JP) spin-off rights. SFGI starts trading separately on Monday 29 Sep.
The reference price is ¥150/share. It will likely stay in all major indices except Nikkei 225, and it likely needs low ¥160s to stay in M _ _ _. 
The estimated Div Yield is higher on SFGI than peers by a fair ways, and looks to grow, and there is a big buyback to come. I like it.


[Japan Event] Sony Financial Spin-Off Trades Monday - Fina(Ncia)L Thoughts

Asia Pac ECM and Index Rebal, DZT Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analysed the earning revision of component stocks of MS-Japan in the past month.</li>
<li>We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.</li>
<li>We highlighted EPS revision on Mitsubishi, Takeda Pharmaceutical, Mitsubishi UFJ Financial, Orix, Kioxia, Toyota Motor, Rakuten.</li>
</ul>


We analysed the earning revision of component stocks of MS-Japan in the past month.
We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.
We highlighted EPS revision on Mitsubishi, Takeda Pharmaceutical, Mitsubishi UFJ Financial, Orix, Kioxia, Toyota Motor, Rakuten.


MS-Japan Index Earning Revision (May): Mitsubishi, Takeda Pharmaceutical, Mitsubishi UFJ Financial

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sony-financial-group-inc" target="_blank" data-smartkarma-citation="entities:564:1" rel="noopener">Sony Financial Group (8729 JP)</a> started ToSTNeT-3 buybacks last week and did one this week to jumpstart the buyback, cushioning the Nikkei 225 deletion on 29 Sep and subsequent overhang.</li>
<li>In three ToSTNeT-3 buybacks in 6 trading days spending ¥28.9bn, the company bought back 177.513mm shares or 2.5% of shares out, or about 6.2% of Max Real World Float (MRWF).</li>
<li>With ¥71.1bn left, at last that's 460mm shares, or 16.2% of MRWF. Over 10mos that is 1.62%/month. That will boost Mar26 DPS, Mar27 DPS projections, EPS, etc.</li>
</ul>



Sony Financial Group (8729 JP) started ToSTNeT-3 buybacks last week and did one this week to jumpstart the buyback, cushioning the Nikkei 225 deletion on 29 Sep and subsequent overhang.
In three ToSTNeT-3 buybacks in 6 trading days spending ¥28.9bn, the company bought back 177.513mm shares or 2.5% of shares out, or about 6.2% of Max Real World Float (MRWF).
With ¥71.1bn left, at last that's 460mm shares, or 16.2% of MRWF. Over 10mos that is 1.62%/month. That will boost Mar26 DPS, Mar27 DPS projections, EPS, etc.


[Japan Event] Sony Financial (8729 JP) Moves On From ToSTNeT-3 Buybacks, Now In the Market

Japan

Sony Financial Group Inc. provides insurance services. The Company offers life and non-life insurance, banking, and other financial services. Sony Financial Group serves customers across worldwide.

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Sony Financial Group (8729 JP)

TOPIX Index Upweights: Final Expectations For "The Big April Basket" 2026

The official results for the TOPIX 0.75x Liquidity Factor removal were announced after market close yesterday (7th April 2026). There will be 17...

Janaghan Jeyakumar, CFA

Sony Financial Group (8729) - Cheap Vs Peers and Growing Out of Its ROE Hole

Sony FG has underperformed Peers the last quarter. It's not clear why besides post-spinoff overhang. Sony FG has bought back shares. More to go....

Travis Lundy

[Japan Event] Sony Financial Spin-Off Trades Monday - Fina(Ncia)L Thoughts

SFGI shares trading up vs reference. I had expected it to price in the ¥150-210 range (that range in my first and second piece). I said I was...

Travis Lundy

MS-Japan Index Earning Revision (May): Mitsubishi, Takeda Pharmaceutical, Mitsubishi UFJ Financial

We analyzed MS-Japan's consensus for May 2026 and highlighted changes of EPS in Mitsubishi, Takeda Pharmaceutical, Mitsubishi UFJ Financial, Orix,...

Ke Yan, CFA, FRM

[Japan Event] Sony Financial (8729 JP) Moves On From ToSTNeT-3 Buybacks, Now In the Market

SFGI starts on-market buybacks, leaves ToSTNeT-3 backstop behind. Now it is 2mm shares a day or more of buying. If ending by end-March, is more...

Travis Lundy

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