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Tag Archives: Australia

Jun 5, 2023

Connecting the S&P/ASX 200 to U.S. Equity Icons

Many market participants have a “home bias,” typically having larger exposures to domestic securities than would be determined by their representation in the global opportunity set. Australia is no exception: compared to Australia’s 2% weight in the S&P Global BMI, Australian investors allocated an estimated 49% of their total equity allocation to domestic stocks at…

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May 14, 2023

S&P/ASX Small- and Mid-Cap Indices: Differentiators in a Large-Cap Dominated Market

Large-cap, Australian-listed companies have continued their robust 2022, outperforming the small- and mid-cap segments YTD as of April 30, 2023. However, a fast-changing economic environment may support considering small and mid-cap indices in Australia. The range of returns for Australian-listed companies in 2022 was among the widest seen in 20 years. Broad dispersion was exhibited…

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Apr 3, 2023

Minor Impact to Headline S&P/ASX Indices from GICS Changes

Revisions to the Global Industry Classification Standard (GICS®) structure were implemented at the March S&P/ASX rebalance. The changes affect the GICS structure at all levels and involve a number of intra- and inter-sector changes for companies within the S&P/ASX 200 and S&P/ASX 300. Inter-sector changes are the reclassification of constituents to a different sector under…

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Mar 8, 2023

First Islamic Indices Based on S&P/ASX Series Launched

S&P DJI is launching its first S&P/ASX Shariah Indices, which aim to track the performance of Shariah-compliant stocks in the S&P/ASX 200 and the S&P/ASX 300. This launch comes in the context of increased interest in the Muslim community for Shariah investing in Australia. The Muslim community in Australia accounts for 3.2% of the population,…

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Feb 21, 2023

Income Generation and the S&P/ASX BuyWrite Index

In my last blog, we discussed the performance characteristics of the S&P/ASX BuyWrite Index. We will now focus on the income-generating feature of this index. As a reminder, a covered call strategy involves selling a call option against an asset that is already owned by the option writer. A systematic long-term covered call strategy generates…

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Feb 1, 2023

18-Year Performance of the S&P/ASX BuyWrite Index

The volatile and unpredictable nature of the stock market is characterized by periods of ups and downs. Covered call option writing is a strategy aimed at generating income and mitigating loss, particularly in bear market environments. A covered call (or “buy-write”) strategy involves selling a call option against an asset that is already owned by…

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Nov 9, 2022

A Weakening Aussie Dollar Puts Offshore Earners in the Spotlight

The days of Australian-U.S. dollar parity are becoming a distant memory, as U.S. dollar strength has seen the value of the Australian equivalent reach a recent low of just under 63 cents, a decline of over 13% from year-end levels. The weakening of the Australian dollar could have significant implications for the share prices of…

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Sep 22, 2022

Value’s Resurgence in the S&P/ASX 200

Those who implement style investing will have noticed a recent reversal of fortunes for the value approach following a long spell of underperformance. Since the inception of the S&P/ASX 200 Growth and S&P/ASX 200 Value in 2017, the back-tested approach has seen growth top value in 12 out of the past 17 calendar years. However,…

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Sep 6, 2022

Tucking in to the SPIVA Australia Mid-Year 2022 Scorecard

The semiannual S&P Indices Versus Active (SPIVA®) Scorecard1 measures the performance of actively managed funds against their corresponding benchmarks in various markets around the world. The latest Australian edition, the SPIVA Australia Mid-Year 2022 Scorecard, provides a number of interesting insights about the performance of active versus passive across active fund categories. Although the long-term…

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Jun 13, 2022

Rebalancing Report: The S&P/ASX 200 ESG Index

The S&P/ASX 200 ESG Index recently underwent its annual rebalancing, and it was the first rebalance following the recent changes to the S&P ESG Index Series Methodology. As a result, 14 companies were added to the index and 23 companies were removed, with some high-profile names on the move. In this blog, we’ll discuss the…

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