Forum Topics S&P/ASX Indices Rebalances
Bear77
12 months ago

01-Sep-2023: SP-DJI-Announces-September-2023-Quarterly-Rebalance.PDF

From September 18th:

ASX100: LTR (Liontown) In and HVN (Harvey Norman) Out.

ASX200: Ins: DTL (Data#3), GMD (Genesis Minerals), NEU (Neuren), RMS (Ramelius Resources), WBT (Weebit Nano).

ASX200: Outs: BRN, IMU, LKE, SYR, ABG, ASK

ASX300: Heaps of ins and outs. See attached file (link at top of forum post) - This is important for some of us because Industry Super Funds and a few other investment vehicles will only allow direct investments in companies who are in the ASX300 (which of course includes all of the companies in the ASX200, ASX100, and higher). This rebalance, effective from Sept 18th will see MAQ added to the ASX300, as well as GMD who have also been added to the ASX200 Index. I already hold GMD in my super, but only a small amount that was distributed to me from SBM (who are dropping out of the ASX300 this time), and now I will be able to add to that GMD position. I hold MAQ (Macquarie Technology Group, formerly Macquarie Telecom) in another RL portfolio (as well as here), and now I will be able to add them to my SMSF (CBUS Industry Super Fund) as well.

MAQ have had the Market cap to be in the ASX300 for a few years, but the Tudehope brothers (founders and managers of the business) and their families owned so much of the company that the reduced "free float" disqualified them from index inclusion. The most recent capital raising (to fund their data centre growth) has diluted the brothers positions enough and increased the free float enough that they have obviously got over the line finally and are now going to be in the ASX300.

Not surprising to see BRN (BrainChip) fall out of the ASX200, however they will remain in the ASX300 (this time).


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Bear77
2 years ago

03-March-2023: SP-DJI-Announces-March-2023-Quarterly-Rebalance.PDF

These changes take effect from start of trade on Monday 20th March:

ASX20: S32 in, JHX out

ASX100: NHF, TNE both in, and outs are ARB & SGR.

ASX200:

Ins are 360 (Life360), NWH (NRW Holdings), PNV (Polynovo) and SYR (Syrah Resources).

Outs are ABC (Adbri, formerly Adelaide Brighton Cement), NVX (Novonix), RMS (Ramelius Resources) and SIQ (Smartgroup).

ASX300:

Lots of ins including WBT (Weebit Nano) and TLG (Talga Group).

Lots of outs including ASM (Aust. Strategic Metals), BET (Betmakers Technologies) and EML (EML Payments).

All Ords:

Heaps (pages) of ins and outs.

S&P/ASX All Technology Index:

Not sure how relevant this All Tech index is because the last few rebalances as well as this one have only had removals with zero additions. Here are the removals this time around:

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For the full list: SP-DJI-Announces-March-2023-Quarterly-Rebalance.PDF


Disclosure: Of the companies I have mentioned in this post, I hold S32, TNE, ARB, NWH (all in real life) and also a small RMS position in my SMSF. Most of those 5 companies are also in my SM virtual portfolio here as well.


13
Bear77
2 years ago

So that announcement about the S&P Indices rebalancing (on March 20) came out after market close on Friday (3rd March) and the market got to react to it today.

Of the companies that I mentioned, most of them behaved opposite of what you might expect. Of the ones being removed from an index, ALL of them went up today, except for EML and FCL.

JHX, ARB, SGR, ABC, NVX, RMS, SIQ, ASM, BET, CTT, DUB, FDV, KGN, RBL and TPW all rose, and some rose by quite a bit.

ARB was up +3.79%, JHX was up +3.35%, NVX was +3.73%, RMS +5.29%, ASM +5.13%, BET +7.69%, take 'em out of an index and watch them rise!

And most of the ones that are going to move UP into a higher index (the inclusions) all dropped today, except for 360 (+10.65%) and WBT (+4.43%).

S32, NHF, TNE, NWH, PNV, SYR and TLG all finished the day lower.

Perhaps there'll be more movement as we get closer to March 20th.

Or perhaps it doesn't matter whether a company is in an index or not. Or not as much as it once did perhaps.

I know that ASX300 inclusion means that companies can be added to portfolios within industry super funds by those with "Member Direct" or similar access where you can choose where to invest up to 80% of your superannuation. Companies that are NOT in the ASX300 are generally unavailable as investment options within those funds.

And I assume that ASX200 inclusion means that those companies will get added to ETFs that track the ASX200.

And there are probably still a handful of managed funds or investment houses that try to stay within the ASX100 index as a rule, so being in the ASX100 might mean being within the investing universe of a slightly larger group of investors.

But none of that seemed to matter too much today, it seems.

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edgescape
2 years ago

IPG made it in to the all ords and went up but is down for today.

Unfortunately DTL didn't make it to the top 200 probably due to the minimum volume/turnover rule again.

9
Remorhaz
2 years ago

JHX moved out of the ASX20 (I don't think there's an ETF for that) - but there is an EX20 Index/ETF (with almost $300M of FUM - which to be fair relative to JHX Mkt Cap is stuff all but...)

So JHX moved into and will either be at or be near the top holding in the EX20 - so moving to the top of an index might require a decent rebalance in that Index/ETF?

7
edgescape
2 years ago

Surprised to see Generation Development Group GDG enter the All Ordinaries given the previous straws about their investment bond products and how they could be impacted by proposed tax bracket changes.

4