Does fundamental indexation lead to better risk-adjusted returns? New evidence from Australian Securities Exchange

We investigate the claims of superiority of fundamental indexation strategy over capitalisation-weighted indexation by using data for Australian Securities Exchange (ASX) listed stocks. Whilst our results are in line with the outperformance observed in other geographical markets, we find that the excess returns from fundamental indexation in Australian market are much higher. On a rolling 5-year basis, the fundamental index always outperforms the capitalisation-weighted index. Our results suggest that superior performance of fundamental indexation could not be entirely attributed to value, size, or momentum effects. The outperformance persists even after adjusting for slightly higher transaction costs related to turnover.

The relationship between sustainability and housing value

Sustainability has rapidly become one of the most important issues in wider society, where recent attention has been focused on sustainable practices in the built environment such as the design, construction and operation of new buildings. Although detached houses are one of the largest land uses in the built environment, it is surprising that relatively little research has been conducted into the implementation and demand for sustainability. Even though the technology exists for increasing sustainability in housing, it appears that little attention has been given to the added value that sustainability can give to a property.

This paper discusses recent developments in sustainability with regards to housing. It identifies and groups the various options available to a housing owner, although the focus is placed on how much the sustainable features add (or detract) from the value of the home. Consideration is given to the existing valuation methods that are used to assess the value of a residential property and also the ease of implementation.

Do dot coms add value : a preliminary study of the market capitalisation of Australian and Indian telecoms and banking sectors

E-Business is increasingly reshaping the way businesses operate across the globe. Globally, businesses in the banking and telecoms sectors have been re-engineering their value chains by adopting e-Business presence by means of dot com launches. The second half of the 1990s, however, saw both the rise and subsequent collapse of dot com entities as a major focus of investment interest, with consequent speculation over the viability of this corporate vehicle. The perceived increase in market capitalisation by means of these ventures during the boom period is now not so certain. In this paper, we report the results of a preliminary study which investigated the impact of dot com launches on market capitalisation within the banking and telecoms sectors of Australia and India.