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

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

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

<ul>
<li>A few years ago, <a href="https://www.smartkarma.com/entities/resonac-holdings-corp" target="_blank" data-smartkarma-citation="entities:1496:1" rel="noopener">Resonac Holdings (4004 JP)</a> announced it would consider spinning off its petrochemicals business.</li>
<li>This summer it announced it would happen, and on 7 September it got TSE approval for a spinoff 1 October 2026. Shares start trading on 29 September. </li>
<li>On Friday, the reference price for listing was announced at ¥200/share. Day 1 will mean significant index flows, and thoughts of what is to come.</li>
</ul>


A few years ago, Resonac Holdings (4004 JP) announced it would consider spinning off its petrochemicals business.
This summer it announced it would happen, and on 7 September it got TSE approval for a spinoff 1 October 2026. Shares start trading on 29 September. 
On Friday, the reference price for listing was announced at ¥200/share. Day 1 will mean significant index flows, and thoughts of what is to come.


[Japan Event] The Crasus Chemical (646A) Spinoff - Details, Valuation, Flows

<ul>
<li>Back in February 2024, <a href="https://www.smartkarma.com/entities/resonac-holdings-corp" target="_blank" data-smartkarma-citation="entities:1496:1" rel="noopener">Resonac Holdings (4004 JP)</a> announced it would start an assessment of a partial spinoff of its petrochemicals division, <a href="https://www.smartkarma.com/entities/crasus-chemical" target="_blank" data-smartkarma-citation="entities:58630:1" rel="noopener">Crasus Chemical (646A JP)</a>. </li>
<li>Resonac updated in July 2026. In August the Board resolved to deliver 80+% of shares to Resonac investors. Today the TSE approved. Crasus starts trading on Resonac ex-rights day 29-September.</li>
<li>The "center" value should be determined in about a week to ten days. The estimate of asset distribution right now is 0.09 per Resonac share. There will be index effects.</li>
</ul>


Back in February 2024, Resonac Holdings (4004 JP) announced it would start an assessment of a partial spinoff of its petrochemicals division, Crasus Chemical (646A JP). 
Resonac updated in July 2026. In August the Board resolved to deliver 80+% of shares to Resonac investors. Today the TSE approved. Crasus starts trading on Resonac ex-rights day 29-September.
The "center" value should be determined in about a week to ten days. The estimate of asset distribution right now is 0.09 per Resonac share. There will be index effects.


[Japan Event] The Crasus Chemical (646A JP) Spinoff from Resonac (4004 JP)

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

[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

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] The Crasus Chemical (646A) Spinoff - Details, Valuation, Flows

The Crasus Chemical spin off arrives in 8 days. The stock lists on 29 September. The reference price comes out at what appears to be <0.7x book and...

Travis Lundy

[Japan Event] The Crasus Chemical (646A JP) Spinoff from Resonac (4004 JP)

Resonac Holdings will spin off its petrochems division (about 10% of sales, 9% of net assets, ~8% of OP) on October 1. 1 share gets you 1 share on...

Travis Lundy

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