its corporate structure has won support from funds management consolidator Wilson Asset Management , with the acquisitive firm expressing confidence that pre-positioning by investors will soften the shock that BHP’s unification will have on Australia’s flagship market indices.
The plan to unify was announced in August and BHP’s Australian shares have underperformed the British shares ever since as investors realised the premium enjoyed by the Australian stock – which blew out to 40 per cent in March 2020 – would evaporate under the deal.P/ASX200 index will rise to about 10 per cent on January 31, from about 6.
Mr Haupt said a mandate requiring investors to be no more than 5 per cent underweight on certain large stocks was common in the Australian market and had triggered an extended rally in CSL shares when the stock breached $300 for the first time in early 2020. Mr Haupt said WAM did not have any mandates that would compel it to buy BHP on January 31 and was already overweight the stock.Major proxy advisers like ISS Governance and CGI Glass Lewis have encouraged clients to vote in favour of unification.
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