Fund Manager Summary
The fund managers believe that the outlook for ASX Ltd presents both challenges and opportunities, particularly in light of ongoing cost and capex growth. In their opinion, the exit from ASX (+10%) reflects a reassessment of the investment thesis established just a few months prior. They noted that the cost and capex growth are likely to persist longer than initially anticipated, prompting their decision to divest. Furthermore, they have redirected capital from ASX into Waypoint REIT, which they feel offers better debt tenor and inflation protection in its rental agreements. This strategic shift indicates a focus on more resilient investment opportunities amidst a challenging economic landscape.
Source: Trading View
Commentary From The Managers
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Akambo
24 Nov 2025
$58.08
Summary
- Akambo updates their investment thesis on ASX Ltd, noting challenges with the CHESS replacement system.
- The project has faced constant delays and cost overruns.
- Barrow initially purchased ASX Ltd stock in June 2024 at around $60, currently trading at $57.48.
- Barrow acknowledges they underestimated regulator frustration regarding the CHESS project delays.
- Concerns about increased competition are considered overblown, especially after Cboe exited the Australian market.
- ASX Ltd is experiencing record high revenue, with earnings per share near historical levels.
- The dividend yield is at a 10-year peak, supporting Barrow's investment.
- Akambo continues to hold ASX, indicating that it may require some patience.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Akambo
24 Nov 2025
$58.08
- Akambo updates their investment thesis on ASX Ltd, noting challenges with the CHESS replacement system.
- The project has faced constant delays and cost overruns.
- Barrow initially purchased ASX Ltd stock in June 2024 at around $60, currently trading at $57.48.
- Barrow acknowledges they underestimated regulator frustration regarding the CHESS project delays.
- Concerns about increased competition are considered overblown, especially after Cboe exited the Australian market.
- ASX Ltd is experiencing record high revenue, with earnings per share near historical levels.
- The dividend yield is at a 10-year peak, supporting Barrow's investment.
- Akambo continues to hold ASX, indicating that it may require some patience.
Summary
Pendal Group
27 Oct 2025
$57.28
Summary
Ten Cap
30 Apr 2025
$70.73
- Ten Cap continues to hold ASX Ltd due to its defensive characteristics.
- ASX rallied through April, benefiting from a market "risk-on" sentiment.
- Despite the rally, Ten Cap views ASX as an expensive defensive investment.
- There is limited earnings growth potential for ASX Ltd.
- The current valuation is at the top of its 3-year PE range.
- Ten Cap does not believe that the performance seen in April is sustainable.
Summary
Airlie Funds Management
31 Dec 2023
$63.52
- Airlie Funds Management sold their investment in ASX (+10%) after establishing the position only in August.
- Upon reevaluation, Airlie Funds Management determined that cost and capex growth were likely to persist longer than initially anticipated.
- The fund also exited their position in Region Group.
- Proceeds from these exits were recycled into increasing their position in Waypoint REIT.
- Airlie Funds Management believes Waypoint REIT offers better debt tenor and enhanced inflation protection in its rental agreements.
Summary
Montgomery Investment Management
31 Aug 2023
$57.59
- Montgomery Investment Management has updated its investment thesis on ASX Ltd (ASX:ASX).
- The ASX faced significant challenges, primarily focused on the CHESS replacement project and rising costs.
- The CHESS system, intended to be replaced by a blockchain solution, encountered delays and cost overruns.
- Following the appointment of a new CEO in August 2022, an independent review was conducted, leading to the cancellation of the project in its current form.
- While the team initially benefited from rising interest rates on collateral cash balances, expectations of net interest income overcoming rising costs were incorrect.
- Inflation has caused costs to escalate to double digits, outpacing the benefits from interest rates.
- Consequently, Montgomery Investment Management has reduced its position in ASX Ltd pending further information regarding the resolution of these issues.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"Exiting ASX appears to be a prudent move as persistent capex pressures raise concerns; reallocating to Waypoint REIT may offer a more resilient hedge against inflation and a stronger debt profile. Investors should remain vigilant in this evolving landscape."
Last Updated: 24 Nov 2025
Query The Data
Frequently Asked Questions
Who is investing in ASX Ltd (ASX:ASX)?
Fund managers including Airlie Funds Management, Ten Cap, Montgomery Investment Management, Pendal Group and Akambo have invested in ASX Ltd (ASX:ASX).
Why do fund managers invest in ASX Ltd?
Fund managers have invested in ASX Ltd due to its initial growth potential. However, recent evaluations indicated that rising costs and capital expenditure (capex) growth might persist longer than anticipated, prompting some to exit their positions. This strategic decision reflects a shift in focus towards investments like Waypoint REIT, which offers better debt management and inflation protection.
What happened to ASX Ltd (ASX:ASX)?
There have been no recent updates from fund managers regarding ASX Ltd although fund managers including Airlie Funds Management, Ten Cap, Montgomery Investment Management, Pendal Group and Akambo have previously commented.