Three Reasons Investing In Mid-Caps Stacks Up As investors continue to search for gains in a low return world, many are surprisingly leaving the highest...

Pendal Group

Pendal Group

Three Reasons Investing In Mid-Caps Stacks Up As investors continue to search for gains in a low return world, many are surprisingly leaving the highest performing segment of the S&P/ASX300 untapped. In fact, the average broad Australian equities manager allocates just 9.1% of their portfolios to stocks ranked 51 - 100 by market capitalisation. Australian mid-cap companies as a group have outperformed other market capitalisation groups like large-caps and small-caps over the past 14 years. $10,000 invested in the S&P/ASX Mid Cap Accumulation Index between January 2001 and February 2014 is worth $33,522, outperforming the top 50 stocks by $5,150 and small-caps by $13,714. This trend of mid-cap outperformance continued throughout 2014. Why? Two main reasons. It has less exposure to the underperforming Resources sector than the broader index. The large-caps index, with its heavy weighting to the mega-miners, has fallen in line with sliding commodity prices, particularly iron ore. In addition, mid-caps generally have greater scope for dividends than small caps, which often use their cash to fund expansion. So where does that leave us for 2015? ...more: (VIEW LINK)


At Pendal Group, our vision is to combine the benefits of our strong institutional foundation and performance-focused culture with a multi-boutique specialist investment approach. We believe this approach firmly positions Pendal to achieve...

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