Fund Manager Summary
The fund managers believe that the outlook for Wesfarmers Ltd remains positive, despite recent portfolio adjustments. In their opinion, the company has proven to be a strong performer, contributing significantly to returns with a 35% return over approximately 1.50 years. The decision to sell was primarily driven by reaching their valuation target and overall portfolio management considerations. They acknowledge Wesfarmers as a reliable investment, delivering consistent returns for investors, which reflects positively on its operational stability and growth potential.
Source: Trading View
Commentary From The Managers
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Pendal Group
3 Nov 2025
$84.21
Summary
- Pendal Group continues to hold Wesfarmers Ltd due to its diversified portfolio.
- The recent AGM trading update was mixed, with results softer than market expectations.
- Bunnings reported YTD sales growth ahead of 2H FY25, aligning with consensus.
- Kmart Group's performance was disappointing, with YTD sales in-line with 2H25 but below the expected +5.9% growth.
- Officeworks issued a material profit warning, indicating a 25% downgrade due to softer demand and competitive pressure.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Pendal Group
3 Nov 2025
$84.21
- Pendal Group continues to hold Wesfarmers Ltd due to its diversified portfolio.
- The recent AGM trading update was mixed, with results softer than market expectations.
- Bunnings reported YTD sales growth ahead of 2H FY25, aligning with consensus.
- Kmart Group's performance was disappointing, with YTD sales in-line with 2H25 but below the expected +5.9% growth.
- Officeworks issued a material profit warning, indicating a 25% downgrade due to softer demand and competitive pressure.
Summary
Tyndall Asset Management
31 Aug 2025
$90.88
- Tyndall Asset Management continues to hold Wesfarmers Ltd due to its strong market position.
- Wesfarmers is currently trading at an historically high P/E of 36x.
- Despite an unexceptional result with only 3.7% EPS growth for FY25, the stock has shown resilience.
- The stock's performance was bolstered by the announcement of capital management.
Summary
Endeavor Asset Management
30 Apr 2025
$78.32
- Endeavor Asset Management notes that Wesfarmers (WES) share price has shown continued strength, finishing April up +9%.
- WES recently held an investor day highlighting Bunnings as one of Australia’s top retailers.
- Bunnings is focused on productivity growth through new categories and efficiency improvements.
- High-margin products such as pet food, cleaning, and automotive items have been introduced, enhancing revenue streams.
- From 2015 to 2024, Bunnings has doubled sales while floor space has only increased by 27%, showcasing their ability to maximize sales per square metre.
- Bunnings plans to convert half of its tool shops by June 2025, increasing SKU count by approximately 21% without expanding floor space.
- The tool shop conversion is expected to enhance profitability, as it is a high-margin area within stores.
- Endeavor Asset Management continues to hold their position in WES due to these positive developments.
Summary
Tyndall Asset Management
30 Apr 2025
$78.32
- Tyndall Asset Management notes that Wesfarmers (WES) has benefitted from the shift to more defensive names due to US trade disruptions.
- Currently, Tyndall Asset Management is underweight WES.
- This underweight stance is primarily due to WES's extremely high price.
- WES is trading at a forward P/E of 30x, which is two standard deviations above its historical level.
Summary
BKI Investment Company
30 Sept 2024
$70.43
- BKI Investment Company notes that WES delivered a solid result that met expectations.
- Kmart emerged as a standout, with revenue up 6% and earnings rising 25%, showcasing its strong value proposition.
- Kmart's success reflects its ability to capture consumers who are trading down.
- Bunnings reported topline growth despite a sluggish building market, indicating resilience in challenging conditions.
- Bunnings highlighted a challenging start to FY25, which is noteworthy for investors.
- Although interest expenses were higher than anticipated, cash flow generation remained robust.
- The results underscore the quality of the Wesfarmers businesses.
- The increased dividend reflects management’s confidence in the company’s ongoing performance.
Summary
Endeavor Asset Management
31 May 2024
$64.89
- Endeavor Asset Management sold their investment in Wesfarmers (WES) as it reached their valuation target.
- The decision was made for portfolio management purposes.
- Wesfarmers has been a consistent contributor to the portfolios.
- Over the ~1.50-year duration of the investment, WES returned 35% to the Balanced Portfolio.
Summary
Oracle Advisory Group
31 Mar 2024
$67.70
- Wesfarmers has had a strong run since the beginning of 2023, with the stock returning more than twice the return of ASX100.
- Oracle Advisory Group views WES as likely to be a slow growth story, anticipating about 4-5% p.a. revenue growth.
- Oracle Advisory Group took advantage of the price strength to take some profits.
- The fund manager continues to hold a position in Wesfarmers.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"As valuations reach targets, it may be prudent to reassess positions; Wesfarmers has seemingly delivered solid returns, but the market’s next move remains uncertain. Investors should tread carefully amid shifting dynamics."
Last Updated: 03 Nov 2025
Query The Data
Frequently Asked Questions
Who is investing in Wesfarmers Ltd (ASX:WES)?
Fund managers including Endeavor Asset Management, Oracle Advisory Group, BKI Investment Company, Tyndall Asset Management and Pendal Group have invested in Wesfarmers Ltd (ASX:WES).
Why do fund managers invest in Wesfarmers Ltd?
Fund managers invest in Wesfarmers Ltd due to its consistent performance and solid returns. Endeavor Asset Management highlighted that the company reached their valuation target, contributing significantly to their portfolios with a 35% return over approximately 1.5 years. This reflects Wesfarmers' stability and attractiveness as an investment option.
What happened to Wesfarmers Ltd (ASX:WES)?
Fund managers view Wesfarmers Ltd as a strategic investment despite mixed performance indicators. Tyndall Asset Management noted the company's historically high P/E ratio and capital management announcements as supportive factors, while Pendal Group highlighted Bunnings' stable performance despite disappointing results from Kmart and a significant profit warning from Officeworks. Overall, the investment rationale reflects confidence in Wesfarmers' long-term growth potential, tempered by current market challenges.