Australia Quant Panorama: Aus: Significant rotation

Research evidence excerpt

Australia Quant Panorama: Aus: Significant rotation

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Australia Quant Panorama

Aus: Significant rotation

Significant rotation within Australian equities last month 04 June 2026

A few investment themes continued to drive global equity market performance in May Quant Strategy

(+5.0%), while Australia’s relatively small exposure to the themes saw the ASX200 lag Australia

during the month (+0.8%). Despite a small move in the Australia index, there was Nigel Tupper >>

significant rotation within the market. The spread of sector returns was large, with Quant Strategist

Materials performing best (+10.5%) and Health Care dramatically underperforming (- Merrill+61 2 9226Lynch5735(Australia)

9.2%). The aggressive style-based Boosters rallied +10.6% during the month, while the nigel.tupper@bofa.com

defensive Bunkers fell -3.6%. In the last 12 months, the Australia Boosters have Amar Vashi >>

outperformed the Bunkers by 92% which is approaching a record. QuantMerrill StrategistLynch (Australia)

amar.vashi@bofa.com

Global investors continue adding exposure to Australia Sumuhan Shanmugalingam >>

Our “Global Positioning in Stocks” analysis shows long-only funds globally have bought QuantMerrill StrategistLynch (Australia)

shares in Australia worth +$16.0bn in the last 12 months. Funds bought +$3.7bn of sumuhan.shanmugalingam@bofa.com

Australia shares in April, including BHP (+$458m), CBA (+$348m), Santos (+$290m), and

Suncorp (+$248m). In contrast, funds sold Macquarie (-$124m) and Qantas (-$124m).

 Most Important Stocks

Sectors/stocks/themes with strong Triple Momentum  Triple Momentum

In Australia, Triple Momentum is strongest for Energy, Materials, and Telecom. Among