Insight

BHP: The Bigger Australian

2 February 2022
Invesco Australian Equities
BHP: The Bigger Australian

What does BHP's increased ASX concentration mean for investors ? 

Some investors are worried about a high concentration of ‘big names’ in the ASX 300, and what it might mean for risk and return. The concern has heightened with BHPs imminent single listing on the ASX. 

To explore this concern, we undertook a simulation using our investment model against a more concentrated benchmark to see how the model stood up on risk, return and transaction costs, and in particular, to see if our investment model’s active return remained positive. 

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