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The rise of Australia’s technology titans

 
Technology companies are growing in Australia and becoming a larger part of the overall market. Back in 2014 the MVIS Australia Equal Weight Index included only one stock classified as information technology, namely Computershare. As of 22 June 2020 there are now six information technology companies in the Index.
Technology companies are growing in Australia and becoming a larger part of the overall market.

Back in 2014 the MVIS Australia Equal Weight Index included only one stock classified as information technology, namely Computershare. It remained this way until March 2018 when Link Administration was added. These were the only information technology companies of sufficient size to enter the index.

As of 22 June 2020 there are now six information technology companies in the Index.

Company

Date Included

Computershare

Prior to 2014

Link Administration

Mar-18

Afterpay Touch

Mar-19

Altium

Mar-19

Wisetech Global

Dec-19

NextDC

Jun-20

Appen

Jun-20



In 2014 information technology made up a little over 1% of the Index. It now accounts for 7.5% of the Index, which is more than double the 3.25% weighting in the S&P/ASX 200 index. The equal weight nature of the MVIS Australia Equal Weight Index is providing an overweight position to the growing Australian tech sector.

The chart below shows the change in the sector composition of the MVIS Australia Equal Weight Index over time.
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To access these growth opportunities, an Australian portfolio that tracks an equal weight index has a higher allocation to technology than a market capitalisation index.

Published: 24 June 2020

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