ARTICLE
The multi-asset bridge: Greater stability and strategy through localized equity indices
Bloomberg Professional Services
Forward looking equity investors are turning their attention to localized, equity indices with seamless integration across risk models, analytics and execution — traditionally the realm of fixed income — for stability and strategy.
Equity markets around the world, including markets in the APAC region, are shifting and repositioning in response to dramatic geopolitical changes where divergence has become the new normal.
In its wake, global investors are seeking robust, innovative portfolio expansion across multiple asset classes. Some are leveraging provider strength in fixed income and turning their attention to localized, equity indices with seamless integration across risk models, analytics and execution to move past the hurdles posed by outdated legacy methodologies.
Equity indices for evolving dynamics in the “divergence decade”
The world has been propelled into “the divergence decade” by United States’ foreign and economic policy, particularly the U.S. tariff agenda under the Trump administration in 2025-26.
This has brought strategic autonomy and protectionist inflation to the forefront of global trade and debate, and markets around the world are shifting, diverging and repositioning in response.
Against this backdrop, equity markets and investors are navigating a corporate investment boom in AI infrastructure (AI/Infra). This boom is particularly resonant in the APAC region, where a chunk of the world’s activity in this space is located.
Equity indices designed to remain stable in the face of changing dynamics are key.
Enhancing capability and expanding coverage
Enhancing capability and expanding coverage to bridge asset classes is an ongoing priority.
Designed to measure the Australian investment-grade fixed income market, the Bloomberg AusBond Indices is a leading benchmark widely used in the Australian fixed income market.
The Indices are built on a consistent, systematic framework that spans geographies, sectors, currencies, and maturities. They are designed not just to represent fixed income markets, but to integrate seamlessly into portfolio design, risk modelling, and execution.
Replicability, transparency, data integrity and customization are all key features of the Indices’ methodology.
- Replicability: Each index is constructed to function as a practical, real-world portfolio tool, enabling translation of benchmark exposure directly into executable investment decisions.
- Transparency: All inputs underpinning index construction are publicly available, including inclusion rules, rebalancing frequency, and return computation methodologies, giving a clear, consistent foundation for portfolio analysis and attribution.
- Data integrity: Bonds across the indices are priced by BVAL, Bloomberg’s securities valuation service to deliver credible, defensible valuations across a broad spectrum of instruments, supporting accurate risk modelling and reliable performance measurement.
- Customization: The suite is designed to align with specific portfolio objectives and constraints. It has a wide range of sub-maturity and sector options, enabling construction of tailored benchmarks that reflect precise risk parameters and investment mandates.
The AusBond Indices have been subject to ongoing innovation since they were acquired by Bloomberg from UBS in 2014. Recently, rolling out a month-end lockout has provided more stability in index membership, and certainty as to which bonds qualify for the next rebalance.
Greater stability and strategy for Australian investors
Since the full release of its Index Factory production system in 2024, Bloomberg has found ways to apply the rigor of its market-leading fixed income indices design and innovation to equities.
Bloomberg’s recent application of its rigor in AusBond to its localized Australia Domestic Equity Indices, launched in April 2026, is a case in point.
The suite of 36 new Australian domestic equity indices spans flagship benchmarks and selected market segments. Its design is hardwired for broad and investable exposure to Australian equities for benchmarking, asset allocation, and creation of financial products for institutional and retail investors.
It includes the Bloomberg Australia Domestic 50 Index (AD50P:IND), the Bloomberg Australia Domestic Mid 50 Index (ADMC50P:IND), and the Bloomberg Australia Domestic Small 200 Index (ADS200P:IND), along with index return variants that incorporate the impact of dividend franking credits to reflect the needs of domestic investors. These include the Bloomberg Australia Domestic 200 Grossed Up Franked Return Index (AS200GF:IND) and Bloomberg Australia Domestic 200 Superannuation Franked Return Index (A200SF:IND).
One indices universe, every asset class
In the APAC region and beyond, market players are seeking to move beyond legacy benchmarks and towards methodologies equipped for divergent regional and global markets.
Bloomberg is well positioned for this. The Bloomberg Equity Indices universe spans over 30,000 equities and covers more than 99% of investable free-float market cap across 47+ countries. It’s powered with best-in-class data, news, research, analytics, built on next gen technology, and fully integrated with the Bloomberg Terminal, as well as PORT and risk models.
Combining signature advanced design, flexibility and integration with cross-channel synergy, flexible customizations and depth of perspective that bridges asset classes, it’s built to sustain the divergence decade, and beyond.
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