per the presentation. 20% of the existing ASX holders are index...

per the presentation. 20% of the existing ASX holders are index funds where as 15% are in the UK. Excluding MSCI and global resource index funds there is a net difference of 5% of which Australian index funds need to buy on market. The FTSE index funds for the most part will cross their shareholdings with ASX, so that’ll be nil impact to the price. Expect huge volume on 31 January for this. The impact will be the fact the ASX index funds MUST buy to weight, which means in theory a net 5% on market buy. Albeit this on market buying could potentially be offset by UK retail dumping who only want UK holdings, but I suspect this would have already occurred.

Hence my view is we should see further net buying. Changes to active fund manager compliance rules may change as well ensuring that xyz % of BHP must be held because of potential index underperformance from such a mega cap, ie 10-11% of the ASX. This could be positive again with indiscriminate buying.