Australian women are outnumbering men participating in the ASX Sharemarket Game.

For the first time in the 25-year history of the ASX Sharemarket Game, younger Australian women are outnumbering men participating in the game, growing their market knowledge and investment skills in a low-risk environment.

In 2023, participation by women aged under 40-years increased by 12% compared to 2022 (14% in 2022 to 26% in 2023). This is a historical moment in the 25-year history of the Sharemarket Game, with the proportion of women aged under 40-years representing 28% compared to 25% of men.

ASX Head of Equity Markets, Graham O’Brien commented on the development, “We are seeing a changing of the guard in the profile of participants in the ASX Sharemarket Game, a development that reflects the changing habits of Australians holding assets outside the home and super, but also a continuation of the inspired appetite for investing we saw during the COVID-19 pandemic.”

According to the ASX Australian Investor Study 2023, the trend for younger Australians to participate in share investing is being driven by the surge in investing which began during COVID-19 lockdowns, and which has continued over the past two years.

There has also been an increasing number of Australians holding investments outside their home and super through the sharemarket – 75% or 7.7 million of the 10.2 million Australians who now hold investments outside their home and super, invest in the sharemarket.

Rising property prices and cost-of-living pressures have also influenced people to consider investments outside their home and superannuation and to seek out tools such as the ASX Sharemarket Game to learn how to invest.

Meanwhile for women, more opportunities to participate in financial markets via Apps, online brokers and investment platforms has made financial markets more accessible, opening a world of investment possibilities beyond the home and superannuation. Greater focus on financial literacy and financial independence has encouraged women to plan for their financial future.

New trends drive Game growth

The 2023 ASX Australian Investor Study found 9% of current investors now fall into the next generation demographic (aged 18-24 years) and 63% of this cohort have only begun investing for the first time in the past two years.

Women account for 42% of current investors and the percentage of women who are next generation investors has increased from 9% in 2020 (when the ASX study was last done) to 11% in 2023. For the first time ever more Australian women invest outside their primary residence and superannuation.

O’Brien says the changing profile of sharemarket investors has highlighted the role educational tools such as the ASX Sharemarket Game can play in preparing new investors and understanding market volatility, which has been a challenging factor for participants in the current ASX Game.

“The sharemarket has experienced periods of market volatility during the 2024 games period, inching out a small 0.3% rise to date. The volatility has required game participants to ride out the ups and downs of day-to-day share price movements, made easier for those new to investing as the virtual cash provided in the game makes it less risky to test out a new strategy before having real skin in the game.”

About the Game

Launched in 1999, the ASX Sharemarket Game is now experiencing unprecedented participation. Designed as a virtual sharemarket game, it helps participants get familiar with stocks and sectors and to develop knowledge about risk and reward trade-offs.

The game provides investors with $50,000 in virtual cash to create their own investment portfolio. The updated game format for 2024 creates an even more authentic investing experience by providing a slightly longer window to test strategies.

During the 26-weeks of the game, participants can invest in over 300 ASX-listed companies, including ASX 200 companies, small and mid-cap companies as well as Exchange Traded Funds and Listed Investment Companies. Participants can also place orders to buy or sell shares any time the market is open.

The ASX Sharemarket Game is free to enter for participants over 18-years and features real market conditions, live prices, and brokerage fees. Cash prizes are available for first, second and third with a best university portfolio, minor league (up to 10 members) and major league prizes (more than 10 members) also available.

Members of the public can participate in the 2024 Sharemarket Game with registrations closing on Thursday 25^th July.

Register here.

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General Manager, Investment Products and Strategy, Andrew Campion, said: “The ASX Australian Investor Study is ASX’s flagship research that provides an authoritative guide on the evolution of investment markets and investor behaviour.

“Our latest study has found that the number of investors that hold on-exchange investments has grown from 6.6 million to 7.7 million in 2023 – the highest proportion of on-exchange investors in over a decade. This equates to 38 per cent of Australian adults.

“While Australian shares are still the most popular of all on-exchange investments, exchange traded funds (ETFs) continue to grow in popularity with 20 per cent of investors holding such investments, up from 15 per cent three years ago. This growth aligns with ASX’s latest statistics where total ETF funds under management has grown by an astonishing $80 billion from $63.5 billion in May 2020 to $143.5 billion as at the end of May 2023

“The report also compares holdings of different asset classes and found that there’s been a slight dip in residential property investment (down four per cent), but gains in shares and ETFs, suggesting Australians are looking at other ways to build wealth outside of property.”

While females made up half of the 1.2 million net new investors since 2020, women are still under-represented as a whole (42% vs 58%), with more women than men citing affordability as their primary barrier to investing.

Read the report.

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Helen Lofthouse

ASX is pleased to announce that it has entered into a binding agreement to sell 100% of its interest in Yieldbroker Pty Limited (Yieldbroker) to a wholly owned subsidiary of Tradeweb Markets LLC (Tradeweb) (Proposed Transaction).

Helen Lofthouse, ASX’s Managing Director and CEO, said: “We believe this transaction will deliver substantial benefits to the Australian market through Yieldbroker and Tradeweb leveraging each other’s innovative trading solutions and deep industry experience.

“ASX has been a shareholder of Yieldbroker since 2014 and, given the relationship built over the years between the two organisations, ASX will continue to work closely with new owner Tradeweb to help foster long term growth and solutions for customers in the Australian fixed income market.”

ASX owns approximately 43% of Yieldbroker. The remaining shares are owned by a number of domestic and international banks and current and former Yieldbroker employees. ASX expects to realise approximately A$55m (after estimated transaction costs) under the terms of the Proposed Transaction, and the current carrying value of its interest in Yieldbroker is approximately A$30m.

ASX will recognise a reversal of prior year impairment losses of approximately A$25m after tax as a result of the Proposed Transaction for the financial year ending 30 June 2023. This gain will be classified as a significant item in ASX’s financial reporting framework. The proceeds of the sale will be retained by ASX to support the ongoing operations of the business.

Completion of the Proposed Transaction remains subject to a number of conditions, including regulatory approvals.

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ASX Managing Director and CEO, Helen Lofthouse, said: “Tim is a highly skilled technology transformation executive who brings to ASX more than 25-years’ experience in business and technology roles across Australian financial services.

“I am pleased to be making this announcement after a competitive global search with very high quality candidates. Tim’s deep expertise in technology and project execution in the financial services industry will be invaluable as ASX looks to contemporise its technology and deliver critical market infrastructure.”

Mr Whiteley was appointed to lead the ASX’s CHESS Replacement Solution Design work in November 2022 following the Group’s decision to reassess its CHESS replacement project.

Ms Lofthouse continued: “Importantly, Tim’s appointment as CIO provides continuity of technology leadership for CHESS replacement.

“The CHESS Replacement Solution Design team will continue to be led by Tim while he puts in place a new leadership team structure for the CHESS replacement program. As CIO, he will also have accountability for delivery of the technical aspects of the CHESS replacement program.”

Prior to joining ASX, Mr Whiteley held positions at Westpac and Commonwealth Bank, leading large enterprise-wide technology transformation projects.

Today’s announcement follows the 17 March announcement that ASX would create a dedicated Technology division, splitting the Group Executive, Technology and Data, and CIO role.

Dan Chesterman continues as Group Executive, Technology and Data, responsible for maturing ASX’s enterprise data capability and growing ASX’s customer-facing Technology and Data business – ASX’s fastest growing business.

Ms Lofthouse added: “I would like to thank Dan for his considerable efforts to manage what has effectively been two significant executive roles.

“This change will enable Dan and his high performing team to focus their energy on growing new areas of data and technology innovation.”

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The new CIO role will report directly to CEO Helen Lofthouse and will focus on ensuring system resilience across ASX, and the delivery of multi-year technology transformation programs.

The creation of a separate technology division will also enable current Group Executive, Technology and Data and CIO, Dan Chesterman to apply his full focus to leading the customer-facing Technology and Data business. This is ASX’s fastest-growing business, and Dan will continue to focus on important strategic initiatives such as expanding customer access to ASX’s rich data sets.

Ms Lofthouse said: “ASX operates multiple areas of critical market infrastructure for the region, and this additional role will provide further breadth and depth in this key area underpinning our business.

“The change creates a single point of senior executive focus and accountability for delivering ASX’s enterprise-wide technology renewal program, while also providing focused leadership for our Technology and Data business which is charged with maturing ASX’s enterprise data capability and growing ASX’s technical and data products and services.

“It also provides additional scope and bandwidth for Dan Chesterman and the team to focus their efforts on data and technology innovation, and expanding enterprise data capability across data science and analytics, information services, data governance and the ASX data platform.”

There are no changes to the delivery of ASX’s CHESS replacement solution design, which continues to be led by our dedicated technology transformation Project Director Tim Whiteley, who reports directly to the CEO.

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Vicki Carter and Luke Randell will join as non-executive directors with Ms Carter’s appointment effective from 2 February 2023 and Mr Randell’s from 3 April 2023. Ms Carter and Mr Randell will stand for election at ASX’s Annual General Meeting on 19 October 2023.

Mr Roche said: “One of my priorities in pursuing a program of Board renewal has been to strengthen the Board’s technology and cyber capabilities, and experience in managing the complex needs of large scale transformation programs. These skills are critical to understanding how these transformations will complement the technology changes at ASX and impacts our customers and their business needs.

“I am confident that Vicki and Luke have the relevant skills with transformation and can bring insights drawn from contemporary customer relationships to make valuable contributions to the Board.”

With these changes, ASX confirms today that Heather Ridout AO will retire following the conclusion of the February board meeting and Peter Marriott will retire at the conclusion of the meeting in April.

“I want to thank them for their outstanding service and contributions to ASX over many years and I am grateful for their wise counsel,” Mr Roche said.

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Helen Lofthouse

Helen Lofthouse, Managing Director and CEO of ASX said: “Although Australia is a prosperous country with a well-performing education system, a recent study by the University of Newcastle found that more than one-third of Australian adults are financially illiterate, with the rate even higher for women and young adults.

“This is concerning given that the study also found that financial literacy has a significant impact on a person’s general wellbeing and overall life satisfaction. Clearly, more work needs to be done to bridge this knowledge gap.”

Ringing the opening bell was Assistant Treasurer and Minister for Financial Services, the Hon Stephen Jones. Mr Jones said: “Financial literacy is one of the best ways Australians can protect themselves and their money. Scammers and fraudsters prey on uncertainty and doubt. Arming yourself with a few basic facts and techniques can make a huge difference.”

In support of World Investor Week, all of ASX’s educational resources for investors can be found on a dedicated webpage.

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ASX has launched the S&P/ASX Agribusiness Index.

ASX, in partnership with S&P Dow Jones Indices (S&PDJI), this week launched the S&P/ASX Agribusiness Index (ASX: XAG).

The new broad-based index includes companies whose principal business activity is in the primary production of agricultural products or in the production of commodities used as inputs into primary production of agricultural products. The index fills a gap in the family of indices representing the diverse sectors on ASX.

Ken Chapman, Head of Strategic Delivery, Capital Markets at ASX, said that the Agribusiness (AgBiz) Index sets a new benchmark for monitoring the performance of primary production companies and the primary industry sector as a whole.

“The profile of the agribusiness sector is hampered by the absence of an index benchmark akin to mining, energy, banking, property, healthcare or technology,” Mr Chapman said.

“The combination of accelerating climate risks, booming consumer demand, increasing complexity in geopolitical relations and supply chains, and exponential advances in technology^[1] is driving demand for capital in all stages in the value chain.

“By raising the profile of the sector, the AgBiz Index will increase investor understanding and interest, and be a critical ingredient in priming the market for the next phase of agricultural innovation.”

Reid Steadman, Head of ESG and Innovation, S&P Dow Jones Indices, said: “We are honoured to collaborate with ASX and jointly bring this timely S&P/ASX Agribusiness Index to life, which aligns with the goal of the Australian Government to expand the agribusiness industry.

“This innovative index reflects the market’s heightened awareness of the need for sustainable agriculture. It will also serve as a valuable tool for investors seeking to gain exposure to this vital driver of Australia’s economy.”

The AgBiz Index follows the S&P/ASX Australian Indices Methodology. At launch, it will have 25 constituents with a combined market capitalisation of close to $30 billion. It will include household names such as Treasury Wine Estates, A2 Milk, Nufarm, Elders and Bega Cheese.

The index selects companies from the largest 1,000 ASX-listed securities and will look beyond the Global Industry Classification Standard (GICS®) agricultural products sub-industry to include a total of 11 sub-industries such as brewers, packaged foods and meats, paper products, fertilisers and agricultural chemicals, distillers and vintners. The index then uses a list of keywords such as beverage, dairy and farm to identify eligible companies.

Eligibility for the index includes minimum float-adjusted market cap, daily traded value and liquidity thresholds. The index does not have a set number of constituents; its constituents and their respective weights can change at each semi-annual rebalance.

From 31 May 2022, the index will initially be calculated on an end-of-day basis only. It will commence quotation as a real-time index on 1 July 2022.

Mr Chapman continued: “ASX facilitates access to the fifth largest pool of pension funds globally and has a long history as an efficient capital raising venue. By creating the AgBiz Index, ASX is supporting agribusinesses to grow and meet the Delivering Ag20302 goal of becoming a $100 billion industry by 2030.

“For many investors, the recent market volatility has highlighted the benefits of a diversified investment portfolio and of quality counter-cyclical stocks, such as those in the agribusiness sector.”

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[1] Hatfield-Dodds, S, Hajkowicz, S, and Eady, S 2021, Stocktake of megatrends shaping Australian agriculture: 2021 update, Australian Bureau of Agricultural and Resources Economics and Sciences (ABARES), Canberra. CC BY 4.0.

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Damien Cottier

An accelerated shift from awareness to action on Environmental, Social and Governance (ESG) and sustainability among ASX listed companies is underway, and there is a heightened focus on these issues by all stakeholder groups, according to new survey findings from Perennial Better Future.

For the first time since the survey began, greenhouse gas emissions, including alignment with the Paris Agreement, was listed by ASX companies’ respondents as the biggest area of focus and improvement. Diversity moved to second place from third in 2020, and Governance moved to third place from first last year.

“Against the difficult backdrop of COVID-19 and all the challenges it has presented, ASX respondents said greenhouse gas emissions will be the number one priority in the next 12-18 months. This demonstrates Australian companies are starting to come to grips with the urgency and opportunity of acting on climate risk,” said Perennial Better Future’s Co-Head of ESG Emilie O’Neill.

In its third year, the Perennial Better Future Survey conducts an ‘ESG pulse’ check on Australia’s listed companies to understand where they have been, where they are now and where they are going regarding ESG.

Increasing action at senior management levels

While results from previous Perennial Better Future Surveys clearly showed attention to ESG matters among Australia’s listed companies, this year’s results strongly point to more tangible actions occurring.

“This year’s results revealed the pandemic has not stopped boards and senior management seeking to improve ESG practices and policies,” said O’Neill.

More than 88% of respondents confirmed their company had a board member or senior executive responsible for ESG. Further, 81% of companies have a business strategy that specifically references ESG and sustainability. This is consistent across both large and smaller companies.

Importantly, companies are seeing real-world results from focusing on ESG and sustainability – more than 80% confirmed positive business outcomes.

Further, 93% confirmed engaging with investors on ESG and sustainability issues as beneficial to the company.

Current and emerging issues on the radar

The role of proxy advisors has been in the spotlight recently and 40% of respondents agreed they feel increasing pressure on their remuneration policy and corporate governance practices from proxy advisors.  However, other stakeholders such as shareholders and remuneration consultants are still viewed as the most critical in regard to implementing remuneration policy.

When it comes to inhibitors to ASX companies achieving a gender diverse workplace, industry difficulties in attracting a gender diverse talent pool topped the chart. Increasing gender diversity at a senior level has consistently been a focus for ASX companies over the past three years.  However, there has been an increase in focus on achieving gender diversity amongst entry-level positions.

Cybersecurity was a new option in this year’s survey and ranked equal third with Modern Slavery, in areas that will become more material in the coming years.

“Cybersecurity has emerged as a critical issue for companies, a concern heightened by the shift to remote working during the pandemic,” said O’Neill.

“Given the likelihood of greater investor and other stakeholder interest in relation to ESG matters, we look forward to continuing to track how ASX companies progress,” said Damian Cottier, Portfolio Manager of the Perennial Better Future Strategies.  “We will continue to engage with companies to encourage them to play a greater role in positively shaping a better future,” he concluded.

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Peter is leaving to further his interest in fintech and blockchain technology. As part of this, he is joining Motive Partners, a global investment firm focused on financial services technology companies, as an Industry Partner.

ASX Managing Director and CEO, Dominic Stevens, said: “Peter has made a significant contribution to Australia’s financial markets over many years, first at SFE and then ASX, including the past 11 years as Deputy CEO.

“Peter is a strong advocate for embracing new technology to deliver innovation and efficiency across our industry. This is best exemplified by his leadership of the investigation and adoption of distributed ledger technology to underpin the replacement of CHESS.

“We thank and congratulate Peter on his service and wish him the very best,” Mr Stevens added.

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