Tag Archives: Australian equities
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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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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A Year of Two Halves for Australian Large-Cap Equity Managers
The first half of 2022 brought steep and broad-based losses for Australian equity indices of all stripes. On a relative basis, however, active Australian Equity General funds had a decent start to 2022; as our SPIVA® Australia Mid-Year 2022 Scorecard reported, a (slim) majority of active managers in this category outperformed the S&P/ASX 200. Unfortunately…
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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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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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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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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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2022, Active, active management, Active vs. Passive, ASX, Australia, Australian bonds, Benedek Voros, IIS, Index Investment Strategy, Mid-Year 2022, Passive, passive investing, REIT, S&P Developed Ex-Australia LargeMidCap, S&P/ASX 200, S&P/ASX 200 A-REIT, S&P/ASX Australian Fixed Interest 0+ Index, S&P/ASX Mid-Small, SPIVA, SPIVA Australia
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- 2022, Active, active management, Active vs. Passive, ASX, Australia, Australian bonds, Benedek Voros, IIS, Index Investment Strategy, Mid-Year 2022, Passive, passive investing, REIT, S&P Developed Ex-Australia LargeMidCap, S&P/ASX 200, S&P/ASX 200 A-REIT, S&P/ASX Australian Fixed Interest 0+ Index, S&P/ASX Mid-Small, SPIVA, SPIVA Australia
Tracking Australia’s Growing Agribusiness Sector
The United Nations estimates a 70% increase in food supply is needed to meet a projected 2050 global population of 9.6 billion. With 70% of its agricultural production exported today, Australia could play an integral role in meeting increased demand from the global supply chain. Join Nadine Blayney of Ausbiz, Daphne van der Oord of…
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Increasing Diversification of the Australian Equity Market
Equity markets have changed considerably over the past 10 years, reflecting the growth of stocks and sectors in each market. While this growth has led to increased concentration in most of the world’s largest equity markets, Australia is a notable exception, as diversification has improved both in terms of stock concentration and along sector lines….
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Exploring the S&P/ASX All Technology Index’s Remarkable First Year
As we mark the first anniversary of the S&P/ASX All Technology Index, it seemed an opportune time to look back at what can only be described as a remarkable inaugural year. After peaking on Feb. 17, 2020—just one trading day post launch—the index plunged nearly 50% over the ensuing month, bottoming out on March 23…
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