ASX 200 vs All Ords

Hi Carl,

15 years ago the All Ords was probably considered more important, however it comes down to fund managers benchmarking themselves across a more focussed universe. For instance, it is irrelevant for large cap fund managers to benchmark against an index that includes small cap stocks, so they use the ASX 100 or 200, while the same is true on the flipside for small cap managers who typically use the small ords.

There is certainly nothing wrong with comparing performance to the all ords, and it’s the measure that should be used on the news for a better representation of the share markets overall performance, however from a funds management perspective, using the index that best represents the portfolio mandate is important,  and why the more focussed indices get the airtime now.