Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Equity Analyst with experience in fundamental and event-driven research in Frontier and Emerging markets. 

On Smartkarma, I mainly publish insights on index flow events in the Asia-Pacific region. This includes predicting regular and intra-review index changes and estimating upcoming passive flows. I also cover special situations such as mergers & acquisitions, equity offerings, buybacks, and other corporate restructuring events.

Pan-Asia Index Flows & Special Situations

FaithNetwork TOPIX Inclusion: And Then The Murders Began

Historical TOPIX Inclusions:  What Flavor Performs Best?

TOPIX Inclusion Pre-Events: Recent "Tachiaigai Bunbai" Round-Up

TOPIX Inclusion Pre-Event Trade (2980 JP): SRE Holdings

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

In my insight <a href="https://www.smartkarma.com/insights/topix-inclusion-trade-summary-sep-2020" target="_blank" data-smartkarma-citation="insights:43700" rel="noopener">TOPIX Inclusion Trade Summary: Sep 2020</a>, I discussed how the newly introduced Section Transfer requirements were going to impact the fate of some pre-event candidates for TOPIX Inclusion Events. In that insight, I picked four names from Quiddity's TOPIX Inclusions Pre-event Watchlist which could potentially try to apply before 1st November 2020 to avoid having to face the new (and more stringent) section transfer requirements. Since then, two out of our four picks have already confirmed their moves: <a href="https://www.smartkarma.com/entities/giftee-inc" target="_blank" data-smartkarma-citation="entities:28280:1" rel="noopener">giftee Inc (4449 JP)</a> and <a href="https://www.smartkarma.com/entities/odk-solutions-co-ltd" target="_blank" data-smartkarma-citation="entities:7143:1" rel="noopener">ODK Solutions (3839 JP)</a>. Friday after market-close, we had another candidate from this list confirm their move; Japanese real estate investment and construction company <a href="https://www.smartkarma.com/entities/faithnetwork-co-ltd" target="_blank" data-smartkarma-citation="entities:29132:1" rel="noopener">FaithNetwork Co Ltd (3489 JP)</a> announced they had received approval (<a href="https://global-assets.irdirect.jp/pdf/tdnet/batch/140120210205457098.pdf" target="_blank" rel="noopener">J-only</a>) to move from the Mothers Market to the First Section of the Tokyo Stock Exchange as of 12th February 2021. Since we turned Bullish on <a href="https://www.smartkarma.com/entities/faithnetwork-co-ltd" target="_blank" data-smartkarma-citation="entities:29132:1" rel="noopener">FaithNetwork Co Ltd (3489 JP)</a> on 29th September 2020, the stock has gained +23.5% (¥ 1,190 to ¥1,470). TSE1 reassignment triggers inclusion into the TOPIX Index and the Inclusion Event can be expected to be at the close of trading 30th March 2021.In this insight, we take a look at the Index Inclusion Parameters and the Fundamentals of the company to evaluate the upside potential of the TOPIX Inclusion Event.

In my insight TOPIX Inclusion Trade Summary: Sep 2020, I discussed how the newly introduced Section Transfer requirements were going to impact the fate of some pre-event candidates for TOPIX Inclusion Events. In that insight, I picked four names from Quiddity's TOPIX Inclusions Pre-event Watchlist which could potentially try to apply before 1st November 2020 to avoid having to face the new (and more stringent) section transfer requirements. Since then, two out of our four picks have already confirmed their moves: giftee Inc (4449 JP) and ODK Solutions (3839 JP). Friday after market-close, we had another candidate from this list confirm their move; Japanese real estate investment and construction company FaithNetwork Co Ltd (3489 JP) announced they had received approval (J-only) to move from the Mothers Market to the First Section of the Tokyo Stock Exchange as of 12th February 2021. Since we turned Bullish on FaithNetwork Co Ltd (3489 JP) on 29th September 2020, the stock has gained +23.5% (¥ 1,190 to ¥1,470). TSE1 reassignment triggers inclusion into the TOPIX Index and the Inclusion Event can be expected to be at the close of trading 30th March 2021.In this insight, we take a look at the Index Inclusion Parameters and the Fundamentals of the company to evaluate the upside potential of the TOPIX Inclusion Event. 

FaithNetwork Co Ltd

TOPIX Inclusion: FaithNetwork (3489 JP)