Original Articles

The application of fundamental indexing to the South African equity market for the period 1996 to 2009

Published in: Investment Analysts Journal
Volume 40 , issue 73 , 2011 , pages: 1–12

DOI: 10.1080/10293523.2011.11082533

Author(s): R Ferreira [AN0001] , JD Krige [AN0001]

Abstract

Over the years the norm in the investment industry has been to use market capitalization-weighted indices as benchmarks to measure investment performance. However, market capitalization-weighted indices, such as the FTSE/JSE All Share Index (ALSI), create a natural return drag because of the overweighting of overvalued stocks and vice versa.

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