King Indices have consistently produced excellent performance. Total returns since 2000 have been more than 10 times that achieved by the market index (ASX200).
The King10 index has grown 30 times since 31 March 2000, while the King20 index has grown 26 times. The market index (ASX200) has grown only 3.3 times in the 16 years.
King Indices have outperformed the ASX200 every year of this century, as shown in the graph and table below.
King Indices and ASX200 Performance 2001 to 2016
The only exception was King10 in 2014. King10’s performance in the previous year (2013) and next year (2015) more than made up for 2014.
King Indices and ASX200 Performance 2001 to 2016
Almost all King Indices’ companies Performed
The consistent performance of King Indices is because almost all companies in the indices performed.
- 89% of companies in the King Indices had a positive return
- 78% of companies beat the market average (ASX200)
With a high level of companies which outperform the market, King Indices are not dependent on a small number of ‘big winners’.
King Indices Beat Australian Funds
Compared with 265 Australian funds’ performance reported by Mercer Investment Surveys:
King Indices beat all funds for the past 5 years:
- King10 was up 261% (29.3% p.a.) and King20 up 229% (26.9% p.a.)
King Indices beat all funds for the past 3 years.
- King10 was up 92% (24.2% p.a.) and King20 up 82% (22.1% p.a.)
King Indices beat most funds in 2015/16:
- King10 was up 26.1% (Only 2 funds did better)
- King20 was up 23.5% (Only 3 funds did better)
- ASX200 was up 0.56%
This is not just performance against funds which invested in Australia. While 139 of the funds invested in Australia, the other 126 invested overseas.
King Indices are 30% less risky than the market average
What is the risk that the King Indices will not continue to outperform the market (ASX200) index?
Using ‘beta’ which is a common measure of investment performance risk:
- Average risk for the market (ASX200) index = 1.00
- King10’s beta is 0.70, which indicates 30% lower risk
- King20’s beta is 0.69, which indicates 31% lower risk
Largest Stock Market Meltdown in Australian History
The largest bear market in Australian history was the Global Financial Crisis of 2007-2009 (GFC). From November 1, 2007 to March 6, 2009 the ASX200 fell 50.4%. The market fall during the Great Depression was 37.8% from February 1929 to August 1931.
All numbers quoted in this section are Total Return, which is share price change plus cash dividends.
King Indices fell less than the market:
- King Indices fell by 33% which was much less than the market fall.
- King Indices fall was back to its level of September 2006; 13 months before the peak, and 2 years 5 months before the bottom
- ASX200 fell back to its November 2004 level; 3 years before the peak, and 4 years 4 months before the bottom
King Indices fall was still above the peak of the ASX200:
- King10 rose 545% from March 2000 to its 2007 peak. At the bottom of the GFC it was up 327% compared with March 2000.
- King20 rose 498% from March 2000 to its 2007 peak. At the bottom of the GFC it was up 301% compared with March 2000.
- ASX200 rose 193% from March 2000 to its 2007 peak. At the bottom of the GFC it was up just 45% compared with March 2000.
Both King Indices were still up more than 300% at the bottom of the GFC, compared with the ASX200’s record pre-GFC level of being up 193%.
King Indices recovered faster than the market:
- King Indices recovered all its losses by October 2009; just 7 months after the bottom and 23 months after its pre-GFC peak.
- The ASX200 did not recover to its pre-GFC level until September 11, 2013; 4 years 6 months after the bottom, and 5 years 10 months after its pre-GFC peak.