S&P/ASX modify indices
Standard & Poor’s (S&P) in conjunction with index partner the Australian Securities Exchange (ASX) has changed its Australian market indices to include foreign-domiciled equities and, as a result of this move, added two new indices for Australian investors.
Director and head of S&P Index Services Australia, Jason Hill, said: “We believe that the changes announced today will continue to support the Australian equity market’s strong position in a highly competitive global marketplace. The true test of the success of the indices will be the level of market support that we expect will build on the extremely positive early feedback.”
The S&P/ASX 200 index, along with its 90 associated indices, has been broadened to include foreign domiciled stocks going forward.
Australian investors will also have two new benchmarks to use, with the S&P/ASX All Australian 50 and the S&P/ASX All Australian 200 new additions to the indices already on offer in the market.
The Australian component of the S&P Global 1200 index will now be made up of the newly formed S&P/ASX All Australian 50.
The amendments to the indices are the culmination of a process that spanned the past 18 months, with input having been sought from a broad spectrum of key index stakeholders.
“Any changes to the domestic indices will affect a wide variety of stakeholders, and it has been important to ensure that everyone who would be affected was given an opportunity to participate and comment via the review process,” Hill said.
He thanked the ASX for its patience throughout the process along with its support in regard to data and methodology issues.
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