ASX200 Accumulation Index

Discussion in 'Other Asset Classes' started by Hodor, 17th May, 2016.

Join Australia's most dynamic and respected property investment community
  1. Hodor

    Hodor Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,239
    Location:
    Homeless
    I was wondering how dividends, specifically franking credits, are treated in reference to the ASX200 Accumulation Index. Are they grossed up or does the index use the net yield and ignore these credits?
     
  2. Nodrog

    Nodrog Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    3,533
    Location:
    Nodrogsville
    To the best of my knowledge imputation credits are not included in the above accumulation index.

    Haven't read up on this stuff for ages so hope the following article is still correct:

    Stock Market Indices Accumulation Indices - Loan Market

    Note with most LICs their accumulation index adjusted for franking credits will gain a boost from 100% franking unlike the ASX 200 accumulation index adjusted for franking which is NOT fully franked. Bear this in mind when comparing performance.
     
  3. Jack Chen

    Jack Chen Mortgage Broker Business Member

    Joined:
    19th Jun, 2015
    Posts:
    402
    Location:
    Sydney
    Any idea if the book is worth checking out? I'm quite intrigued by the title.

    Colin Nicholson’s books: Building Wealth in the Stock Market and The Psychology of Investing
     
  4. Nodrog

    Nodrog Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    3,533
    Location:
    Nodrogsville
    The first is likely to be very much trading focused. Followed Colin quite a bit when trading many years ago. Not my thing nowadays.

    Not sure about the second but sounds interesting. Idea, buy it and give us a summary. I told you I was lazy:D.