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This is a paragraph where the fund manager's comments are surmised. It is typically 4 or 5 lines and lines to the company page. This is a paragraph where the fund manager's comments are surmised. It is typically 4 or 5 lines and lines to the company page.This is a paragraph where the fund manager's comments are surmised. It is typically 4 or 5 lines and lines to the company page.This is a paragraph where the fund manager's comments are surmised. It is typically 4 or 5 lines and lines to the company page.
16 Mar
ASX:A2M
- Alphinity Investment Management continues to hold A2 Milk Company Ltd because it provides a defensive buffer insulated from AI disruption themes.
- A2 Milk is valued for its role as a portfolio stabiliser amid macro and technology-driven uncertainty.
- The business is considered less exposed to AI disruption risks compared to technology holdings.
- The manager views infant formula and dairy as structurally resilient regardless of technology sector volatility.
16 Mar
ASX:AGL
- Pendal Group continues to hold AGL Energy Limited despite the Victorian Default Market Offer setting a pricing benchmark that constrains retail electricity margins.
- The VMO caps prices for less than 20% of retail customers directly, but sets a ceiling that influences broader market-offer pricing.
- The direct earnings impact is limited due to the small customer pool on the VMO, but the benchmark effect creates a headwind across retail.
- Pendal continues to hold, assessing whether generation and retail earnings drivers provide sufficient offset to the regulatory headwind.
16 Mar
ASX:BHP
- Alphinity Investment Management continues to hold BHP Group Ltd because it is considered the standout diversified miner with superior management and balance sheet quality.
- Jonker applies a commodity-by-commodity analysis giving BHP the edge over Rio Tinto and other peers.
- BHP superior management quality and healthier balance sheet differentiate it from the broader resources sector.
- Unlike peers who adopt a broad approach, Alphinity takes a selective, conviction-based stance within resources.
16 Mar
ASX:CSL
- Pendal Group continues to hold CSL Ltd because the US$1.5 billion facility expansion signals management confidence in sustained demand growth for plasma therapies.
- CSL is expanding its Kankakee, Illinois facility, building on over US$3 billion invested in US operations since 2018.
- The expansion incorporates Horizon technology, designed to significantly increase plasma collection and therapy production capacity.
- Pendal sees the sustained capital investment as evidence of management conviction in CSL long-term earnings growth trajectory.
16 Mar
ASX:CDA
- Alphinity Investment Management continues to hold Codan Ltd because the market is underestimating its earnings potential across defence and gold-related markets.
- Codan is seen as a major player in global defence and security, providing structural growth exposure.
- The business maintains a strong connection to the gold market through its metal detection products.
- Management believes earnings are being underestimated, with significant capacity for future growth ahead.
16 Mar
ASX:COL
- Alphinity Investment Management reduced their position in Coles Group Ltd because the team believed its gains were already priced in by the market.
- After 18 months overweighting Coles, Alphinity rotated preference to Woolworths, reflecting a view that the Coles outperformance cycle had run its course.
- Research indicated Coles had less growth potential relative to Woolworths, which was beginning a new phase under fresh leadership.
- The tactical move was subsequently borne out by price action, with Coles underperforming after the rotation.
16 Mar
ASX:DXS
- Pendal Group continues to hold Dexus after its office REIT exposure was pressured by a growing trend of major corporate workforce reductions driven by AI adoption.
- AI-related job cuts by Atlassian, Westpac, Telstra and others have removed approximately 10,000 office roles, creating near-term leasing headwinds.
- The weakness is seen as a sector-level repricing rather than a Dexus-specific issue.
- Pendal continues to hold, monitoring whether occupancy and rental trends confirm or contradict the structural office demand thesis.
16 Mar
ASX:DNL
- Pendal Group continues to hold Dyno Nobel Ltd after the company exited its Phosphate Hill asset in a transaction that was poorly received by the market.
- The Phosphate Hill sale delivers a clean strategic exit and removes future liabilities, even if the timing appears suboptimal.
- The market is concerned that Dyno Nobel exited just as phosphate pricing may be improving, forgoing near-term earnings upside.
- Pendal maintains a view that the strategic rationale for the exit is sound even if market timing could have been better.
16 Mar
ASX:GMG
- Pendal Group continues to hold Goodman Group as the company progresses a major asset monetisation that validates the value within its industrial portfolio.
- Goodman is nearing a deal to sell Moorabbin Airport for approximately A$1.5 billion to a consortium of institutional investors.
- Ongoing warehouse development activity at the site underscores the strategic value of Goodman industrial real estate.
- Pendal sees the transaction as validating the underlying value of the broader Goodman property and development portfolio.
16 Mar
ASX:360
- Alphinity Investment Management continues to hold Life360 Inc because the sell-off is viewed as a sector-wide overreaction disconnected from strong fundamentals.
- Life360 reported strong financial results yet was caught in a broader tech rout, creating a valuation opportunity.
- Alphinity describes this as a "software paradox" where sound businesses are punished by macro fear rather than earnings weakness.
- Life360 is considered more defensive than typical tech and less exposed to AI disruption themes.
16 Mar
ASX:LYC
- Pendal Group continues to hold Lynas Rare Earths Ltd because a new long-term offtake agreement with Japan significantly de-risks the earnings outlook.
- Lynas secured a long-term supply agreement for up to 7,200 tonnes per annum of neodymium-praseodymium through to 2038.
- The deal is structured to ensure no opportunity loss to Lynas, meaning the company is well-compensated under the agreement.
- The agreement reinforces Lynas strategic position as a critical rare earths supplier outside of China, underpinning long-term value.
16 Mar
ASX:NEM
- Alphinity Investment Management continues to hold Newmont Corporation CDI because gold is viewed as the ultimate insurance policy amid geopolitical uncertainty.
- Newmont represents one of Alphinity most significant active overweight positions in the portfolio.
- The manager expects gold prices to remain well-supported against an uncertain geopolitical backdrop.
- Newmont provides meaningful portfolio-level insurance without relying on speculative junior miners.
16 Mar
ASX:NST
- Pendal Group continues to hold Northern Star Resources Ltd despite a further production downgrade, assessing the long-term production ramp as intact.
- Northern Star announced a further FY26 production downgrade to a minimum of 1.5 million ounces, its second consecutive downgrade.
- Two-thirds of the downgrade relates to specific operational factors, suggesting management has identified root causes and is addressing them.
- While disappointing near-term, Pendal assesses the long-term production growth trajectory as intact, justifying maintenance of the position.
16 Mar
ASX:ORI
- Pendal Group continues to hold Orica Ltd because core trading remains sound despite a modest near-term profit headwind in the Explosives division.
- Mining Chemicals and Digital Solutions are expected to deliver EBIT growth of 15% and 20% respectively, showing strong divisional momentum.
- The Explosives division faces a modest near-term headwind due to Australian supply issues, viewed as temporary.
- Pendal sees the operational fundamentals as resilient, supporting the investment case at current levels.
16 Mar
ASX:ORG
- Pendal Group continues to hold Origin Energy Ltd despite the Victorian Default Market Offer creating a pricing ceiling on retail electricity margins.
- The VMO affects less than 20% of retail customers directly but acts as a pricing benchmark constraining broader market-offer pricing.
- The headwind is similar to that facing AGL, with the benchmark effect dampening retail energy margin potential across the sector.
- Pendal maintains the position, weighing the retail headwind against Origin integrated energy and LNG export earnings.
16 Mar
ASX:RIC
- Wilson Asset Management believes Ridley Corporation is well-positioned to benefit from structural agricultural tailwinds and continues to hold, with growing conviction following the company's investor day and asset visits across all divisions.
- Ridley's FY2026–2028 growth strategy was presented at the investor day, outlining a clear path to capturing further value across its agriculture inputs distribution network.
- The recent acquisition of Incitec Pivot Fertiliser (IPF), the largest fertiliser distributor on Australia's East Coast, represents a material upside opportunity, with Ridley's scale and management expertise expected to drive both cost and revenue synergies.
- Asset recycling is expected to support further inorganic bolt-on acquisition opportunities, enhancing the long-term growth profile of the business.
16 Mar
ASX:STO
- Pendal Group continues to hold Santos Ltd because the Moomba Central Optimisation project is expected to lower breakeven costs and unlock production growth.
- Santos and Beach Energy are progressing the Moomba project, which is designed to reduce the basin cost structure.
- A lower breakeven cost base should unlock future production growth that was previously uneconomic at current commodity prices.
- Pendal views this as a meaningful operational catalyst that strengthens the long-term investment case for Santos.
16 Mar
ASX:TNE
- Alphinity Investment Management continues to hold TechnologyOne Ltd because recent selling pressure is disconnected from the company strong underlying results.
- TechnologyOne reported strong financial results but was swept up in a broader technology selloff.
- Alphinity frames this as a "software paradox" where fundamentally sound businesses trade down due to macro headwinds.
- The manager views both TechnologyOne and Life360 as less exposed to AI disruption risk, placing them in a defensive software category.
16 Mar
ASX:TLX
- Pendal Group continues to hold Telix Pharmaceuticals Ltd because the release of positive safety data for TLX591 clears a major de-risking milestone.
- The safety data for therapeutic TLX591 was released and appeared strong, removing a key near-term uncertainty for the stock.
- Telix plans to file with the FDA to advance the therapy to phase three clinical trials, a significant development milestone.
- Pendal views this as a positive catalyst that supports continued investment in the radiopharmaceutical growth story.
16 Mar
ASX:WMA
- Wilson Asset Management believes WAM Alternative Assets offers attractive exposure to real assets and continues to hold, with confidence reinforced by the acquisition of prime Sydney hotel assets at a discount to comparable transactions.
- WAM Alternative Assets' real estate partner, Wentworth Capital, has acquired the Novotel and Ibis Hotels in Darling Harbour — a combined 781-room portfolio on a prime 1.5-hectare Sydney CBD landholding — for $390 million.
- The acquisition was completed at a discount to comparable Sydney hotel transactions and below estimated replacement cost, providing an attractive entry point.
- Near-term income growth opportunities exist through targeted refurbishments and active asset management, while the site's longer-term redevelopment potential includes the option to add more than 40,000 square metres of additional floor area.
16 Mar
ASX:WDS
- Alphinity Investment Management continues to hold Woodside Energy Group Ltd because the short-term upside remains compelling despite recent share price gains.
- Alphinity was already bullish on oil and gas fundamentals before Woodside climbed a further 6%.
- The manager sees potential for Woodside to surprise to the upside in the near term, validating continued conviction.
- Rather than taking profits, the team believes the medium-term earnings trajectory justifies holding.
16 Mar
ASX:WOW
- Alphinity Investment Management increased their position in Woolworths Group Ltd because research indicated Coles had priced in its gains while Woolworths is entering a new growth phase.
- After 18 months favouring Coles, the team tactically rotated into Woolworths as fresh leadership signals a strategic renewal.
- The switch was validated shortly after, with Woolworths rising and Coles declining following the portfolio change.
- Alphinity sees Woolworths as having more growth runway at the current juncture relative to its supermarket peer.
12 Mar
ASX:XYZ
- ELM Responsible Investments continues to hold Block CDI because healthy gross profit growth and upgraded profitability targets confirm the medium-term earnings outlook.
- Block reported healthy gross profit growth and raised its medium-term profitability targets, a positive fundamental signal.
- The company transition to an AI-native operating structure is seen as a key efficiency driver that should improve margins over time.
- ELM maintains the position despite negative share price reactions, viewing these as valuation noise rather than fundamental deterioration.
12 Mar
ASX:HUB
- ELM Responsible Investments continues to hold Hub24 Ltd because record platform inflows and strong operating leverage confirm the long-term growth story remains intact.
- HUB24 posted double-digit revenue growth and record platform inflows, demonstrating strong competitive positioning.
- Strong operating leverage is emerging as the platform scales, which should drive meaningful earnings growth over time.
- ELM is not deterred by short-term share price weakness and continues to hold with conviction in the structural growth opportunity.
12 Mar
ASX:PME
- ELM Responsible Investments continues to hold Pro Medicus Ltd because strong first-half results and a robust contract pipeline justify maintaining conviction through short-term price volatility.
- Pro Medicus reported strong revenue and NPAT growth underpinned by additional large contract wins.
- The manager does not view sharp price reactions to results as fundamental deterioration, but rather as market overreaction in high-multiple stocks.
- ELM maintains high conviction in the long-term earnings trajectory and structural growth of the radiology imaging software business.
12 Mar
ASX:WTC
- ELM Responsible Investments continues to hold WiseTech Global Ltd because strong revenue growth, reaffirmed guidance and an AI-led roadmap underpin the long-term thesis.
- WiseTech delivered solid revenue growth with resilient margins and reaffirmed full-year guidance.
- The announcement of a major AI-driven efficiency program positions WiseTech as a next-generation logistics software leader.
- ELM sees near-term price volatility in high-multiple names as disconnected from fundamentals and uses it as a signal to maintain conviction.
09 Mar
ASX:WDS
- Wilson Asset Management believes Woodside's earnings and margins are materially supported by sustained higher oil prices and continues to hold because the company benefits from oil‑linked contracts, delivered a strong FY2025 result, has management that inspires confidence, and fits as a core holding in the WAM Leaders portfolio.
- Recent oil move: oil rose ~40% in the past two weeks to above USD100 per barrel, a clear tailwind for energy producers including Woodside.
- Oil‑linked contracts directly lift revenue and expand profit margins, translating higher oil prices into stronger cash flow for Woodside.
- Sensitivity analysis shows a USD10 increase to ~USD80/bbl is associated with a low‑double‑digit uplift in EBITDA, while a further increase USD80→USD90 produces a high single‑digit uplift.
- With oil now above these levels, Woodside stands to benefit further, though earnings outcomes depend on the duration of higher prices.
- Operational confidence: the FY2025 result was strong with few surprises, and meetings with management reinforced WAM's positive outlook.
- Portfolio position: Woodside remains a core holding in the WAM Leaders investment portfolio due to its price exposure, contract structure, recent results, and management outlook.
06 Mar
ASX:AZJ
- Perpetual Asset Management reduced their position in Aurizon Holdings Ltd because significant uncertainty surrounds the above-rail business as key contracts expire.
- While the below-rail coal business is a high-quality asset, Perpetual has concerns about the rest of the business.
- Approximately 50% of above-rail coal contracted volumes are due for renegotiation over the next two years, creating meaningful earnings risk.
- Perpetual questions whether returns on the above-rail business are sufficient to justify continued investment at current prices.
06 Mar
ASX:AZJ
- Plato Investment Management increased their position in Aurizon Holdings Ltd because the risk/reward is attractive despite near-term contracting headwinds.
- Plato acknowledges contracting challenges over the next two years but believes the market has overly discounted these risks.
- Aurizon is viewed as a solid mining service contractor with a compelling valuation relative to its long-term earnings capacity.
- The current entry point is seen as sufficiently attractive to justify increasing exposure despite the uncertainties.
06 Mar
ASX:CPU
- Perpetual Asset Management continues to hold Computershare Ltd because management has effectively termed out margin income, reducing rate sensitivity.
- The company is less sensitive to rate cuts than in previous cycles due to proactive balance sheet management.
- The core investor services business is recovering after a tough few years, adding a second growth engine.
- Perpetual views Computershare as a balanced hold with adequate downside protection and participation in any upside.
06 Mar
ASX:CPU
- Plato Investment Management increased their position in Computershare Ltd because rising interest rates directly benefit the company significant margin income exposure.
- Computershare investor services business sits on large cash balances that generate outsized returns as rates rise.
- Plato has high conviction in a sustained higher-rate environment, making Computershare a key beneficiary in the portfolio.
- The combination of structural business quality and an interest rate tailwind makes the risk/reward compelling at current levels.
06 Mar
ASX:JBH
- Plato Investment Management increased their position in JB Hi-Fi Ltd because underlying sales growth remains buoyant despite share price weakness from rate concerns.
- Sales grew 7% in a rising rate environment, demonstrating resilience of the consumer electronics category.
- The share price de-rating is seen as an overreaction to macro headwinds rather than a reflection of deteriorating fundamentals.
- Plato views the current price as an attractive entry point for a structurally sound retailer.
06 Mar
ASX:JBH
- Perpetual Asset Management increased their position in JB Hi-Fi Ltd because the company benefits from a structural tailwind of continuously evolving consumer technology products.
- The continuous technology product roadmap drives sustained consumer demand regardless of the economic cycle.
- Perpetual sees per-household technology spend growing as consumers adopt more devices across all demographics.
- The combination of structural demand tailwinds and an attractive valuation underpins the positive thesis.
06 Mar
ASX:TLC
- Plato Investment Management increased their position in Lottery Corporation Ltd because strong Keno performance demonstrates resilience even in a tough jackpot period.
- Despite a below-average jackpot period in the main lottery business, Keno delivered strong results, highlighting earnings diversity.
- Plato sees the structural moat of lottery concessions as highly valuable and difficult to replicate.
- The current share price is seen as a compelling entry point relative to the long-term earnings potential of the business.
06 Mar
ASX:TLC
- Perpetual Asset Management increased their position in Lottery Corporation Ltd because it operates a near-monopoly lottery business with long-dated, high-quality concessions.
- The lottery category has shown solid long-term growth despite periodic jackpot volatility.
- TLC holds a near-monopoly in Australian lotteries backed by long-dated concessions, providing high earnings predictability.
- Perpetual views the risk/reward as highly attractive given the structural moat and visible earnings growth trajectory.
06 Mar
ASX:TCL
- Perpetual Asset Management reduced their position in Transurban Group because the premium valuation is not justified relative to the finite-life nature of toll road concessions.
- While inflation-linked pricing escalators are attractive, Perpetual views the stock as overpriced for what is ultimately a wasting asset.
- The concession model limits long-term growth as toll roads will eventually be returned to governments at the end of each concession period.
- The current valuation trades at a material premium that more than accounts for near-term earnings visibility.
06 Mar
ASX:TCL
- Plato Investment Management continues to hold Transurban Group because the long average concession life of 28 years provides substantial earnings visibility.
- The 28-year average concession life means the asset base will remain productive for a significant period, reducing near-term concession risk.
- Plato views the inflation-protected cash flows positively in the current elevated price environment.
- Despite trading at 24x earnings, the defensive income characteristics justify maintaining the position.
04 Mar
ASX:GPT
- Perpetual Asset Management believes GPT Group's refreshed management team and active asset‑owner strategy create attractive long‑term prospects and continues to hold because the team can seed funds management vehicles, underlying assets are performing, and recent market weakness provides a compelling entry point.
- Perpetual Asset Management highlights the management refresh across CEO, CFO and the wider investment team over the past 24 months and rates the new team highly.
- Perpetual Asset Management notes the strategic shift from a passive owner to an active asset owner, leveraging the balance sheet and on‑balance‑sheet assets to seed and grow funds management activities.
- Perpetual Asset Management observes the assets are performing well (latest results), with retail assets in particular expected to continue generating solid growth.
- Perpetual Asset Management considers the recent share price sell‑off, driven by shifts in Australian interest‑rate expectations, an interesting entry point.
- Perpetual Asset Management points to a strong balance sheet that provides a buffer against a higher rate environment and a debt profile with a relatively high average cost of debt, reducing sensitivity to further rate increases.
- Perpetual Asset Management notes the income profile sits at about a 5% yield with expected growth and the stock trades at roughly a 10% discount to NTA.
04 Mar
ASX:MND
- Plato Investment Management believes the mining services segment is under-appreciated and continues to hold because Monadelphous is a well‑managed operator showing strong recent results that position it to benefit from the current mining boom.
- Mining services are inherently risky: companies can mismanage projects or overbid, which has historically caused ~30% share‑price declines for some peers.
- Despite that risk, Plato sees a cohort of well‑managed mining services firms delivering strong performance in the current cycle.
- The broader mining sector is booming, creating a large pipeline of projects and demand for engineering, construction and maintenance services.
- Monadelphous recently reported an approximately 30–40% increase in profit and lifted dividends by ~50%, demonstrating earnings and cashflow strength.
- Monadelphous has appreciated in price but, in Plato’s view, still represents attractive value relative to its quality and market opportunity.
- Key investment drivers: exposure to a busy project pipeline, resilient cash generation supporting dividends, and proven operational/management capability.
02 Mar
ASX:AUB
- Pendal Group believes AUB is materially mispriced and continues to hold because 1H26 results were broadly in line with consensus, the FY26 NPAT upgrade was modest, the sell‑off reflects sentiment‑driven de‑rating rather than earnings deterioration, and the stock now trades at historically cheap valuations — while acknowledging timing of any sentiment recovery is uncertain.
- 1H26 result: In line with consensus; FY26 NPAT guidance upgraded by +1.5% at the midpoint.
- Drivers: Stronger‑than‑expected performance from BizCover and Agencies, partly offset by New Zealand weakness and FX headwinds.
- No material earnings revisions: Consensus was already at the midpoint of the new range, so reported results did not prompt significant estimate changes.
- Market reaction: Share price fell ~5% as investors focused on softening premium rates and AI disruption risks.
- Sector derating: Global insurance brokers have derated ~40% (from ~25x to ~15x PE) over the past year; AUB has derated ~50% from its peak.
- Valuation: AUB trades at ~11x FY27 PE, the cheapest absolute and relative valuation since IPO in 2006 (excluding the GFC period).
- Nature of decline: The move has been an almost pure de‑rating rather than evidence of material earnings deterioration.
- Implied risk pricing: Current market pricing appears to embed more than cyclical risk and assigns significant secular risk to the business.
- Pendal view on outlook: Believes these fears are overdone, but the timing of a recovery in sentiment remains uncertain.
16 Mar
ASX:A2M
- Alphinity Investment Management continues to hold A2 Milk Company Ltd because it provides a defensive buffer insulated from AI disruption themes.
- A2 Milk is valued for its role as a portfolio stabiliser amid macro and technology-driven uncertainty.
- The business is considered less exposed to AI disruption risks compared to technology holdings.
- The manager views infant formula and dairy as structurally resilient regardless of technology sector volatility.
16 Mar
ASX:AGL
- Pendal Group continues to hold AGL Energy Limited despite the Victorian Default Market Offer setting a pricing benchmark that constrains retail electricity margins.
- The VMO caps prices for less than 20% of retail customers directly, but sets a ceiling that influences broader market-offer pricing.
- The direct earnings impact is limited due to the small customer pool on the VMO, but the benchmark effect creates a headwind across retail.
- Pendal continues to hold, assessing whether generation and retail earnings drivers provide sufficient offset to the regulatory headwind.
16 Mar
ASX:BHP
- Alphinity Investment Management continues to hold BHP Group Ltd because it is considered the standout diversified miner with superior management and balance sheet quality.
- Jonker applies a commodity-by-commodity analysis giving BHP the edge over Rio Tinto and other peers.
- BHP superior management quality and healthier balance sheet differentiate it from the broader resources sector.
- Unlike peers who adopt a broad approach, Alphinity takes a selective, conviction-based stance within resources.
16 Mar
ASX:CSL
- Pendal Group continues to hold CSL Ltd because the US$1.5 billion facility expansion signals management confidence in sustained demand growth for plasma therapies.
- CSL is expanding its Kankakee, Illinois facility, building on over US$3 billion invested in US operations since 2018.
- The expansion incorporates Horizon technology, designed to significantly increase plasma collection and therapy production capacity.
- Pendal sees the sustained capital investment as evidence of management conviction in CSL long-term earnings growth trajectory.
16 Mar
ASX:CDA
- Alphinity Investment Management continues to hold Codan Ltd because the market is underestimating its earnings potential across defence and gold-related markets.
- Codan is seen as a major player in global defence and security, providing structural growth exposure.
- The business maintains a strong connection to the gold market through its metal detection products.
- Management believes earnings are being underestimated, with significant capacity for future growth ahead.
16 Mar
ASX:COL
- Alphinity Investment Management reduced their position in Coles Group Ltd because the team believed its gains were already priced in by the market.
- After 18 months overweighting Coles, Alphinity rotated preference to Woolworths, reflecting a view that the Coles outperformance cycle had run its course.
- Research indicated Coles had less growth potential relative to Woolworths, which was beginning a new phase under fresh leadership.
- The tactical move was subsequently borne out by price action, with Coles underperforming after the rotation.
16 Mar
ASX:DXS
- Pendal Group continues to hold Dexus after its office REIT exposure was pressured by a growing trend of major corporate workforce reductions driven by AI adoption.
- AI-related job cuts by Atlassian, Westpac, Telstra and others have removed approximately 10,000 office roles, creating near-term leasing headwinds.
- The weakness is seen as a sector-level repricing rather than a Dexus-specific issue.
- Pendal continues to hold, monitoring whether occupancy and rental trends confirm or contradict the structural office demand thesis.
16 Mar
ASX:DNL
- Pendal Group continues to hold Dyno Nobel Ltd after the company exited its Phosphate Hill asset in a transaction that was poorly received by the market.
- The Phosphate Hill sale delivers a clean strategic exit and removes future liabilities, even if the timing appears suboptimal.
- The market is concerned that Dyno Nobel exited just as phosphate pricing may be improving, forgoing near-term earnings upside.
- Pendal maintains a view that the strategic rationale for the exit is sound even if market timing could have been better.
16 Mar
ASX:GMG
- Pendal Group continues to hold Goodman Group as the company progresses a major asset monetisation that validates the value within its industrial portfolio.
- Goodman is nearing a deal to sell Moorabbin Airport for approximately A$1.5 billion to a consortium of institutional investors.
- Ongoing warehouse development activity at the site underscores the strategic value of Goodman industrial real estate.
- Pendal sees the transaction as validating the underlying value of the broader Goodman property and development portfolio.
16 Mar
ASX:360
- Alphinity Investment Management continues to hold Life360 Inc because the sell-off is viewed as a sector-wide overreaction disconnected from strong fundamentals.
- Life360 reported strong financial results yet was caught in a broader tech rout, creating a valuation opportunity.
- Alphinity describes this as a "software paradox" where sound businesses are punished by macro fear rather than earnings weakness.
- Life360 is considered more defensive than typical tech and less exposed to AI disruption themes.
16 Mar
ASX:LYC
- Pendal Group continues to hold Lynas Rare Earths Ltd because a new long-term offtake agreement with Japan significantly de-risks the earnings outlook.
- Lynas secured a long-term supply agreement for up to 7,200 tonnes per annum of neodymium-praseodymium through to 2038.
- The deal is structured to ensure no opportunity loss to Lynas, meaning the company is well-compensated under the agreement.
- The agreement reinforces Lynas strategic position as a critical rare earths supplier outside of China, underpinning long-term value.
16 Mar
ASX:NEM
- Alphinity Investment Management continues to hold Newmont Corporation CDI because gold is viewed as the ultimate insurance policy amid geopolitical uncertainty.
- Newmont represents one of Alphinity most significant active overweight positions in the portfolio.
- The manager expects gold prices to remain well-supported against an uncertain geopolitical backdrop.
- Newmont provides meaningful portfolio-level insurance without relying on speculative junior miners.
16 Mar
ASX:NST
- Pendal Group continues to hold Northern Star Resources Ltd despite a further production downgrade, assessing the long-term production ramp as intact.
- Northern Star announced a further FY26 production downgrade to a minimum of 1.5 million ounces, its second consecutive downgrade.
- Two-thirds of the downgrade relates to specific operational factors, suggesting management has identified root causes and is addressing them.
- While disappointing near-term, Pendal assesses the long-term production growth trajectory as intact, justifying maintenance of the position.
16 Mar
ASX:ORI
- Pendal Group continues to hold Orica Ltd because core trading remains sound despite a modest near-term profit headwind in the Explosives division.
- Mining Chemicals and Digital Solutions are expected to deliver EBIT growth of 15% and 20% respectively, showing strong divisional momentum.
- The Explosives division faces a modest near-term headwind due to Australian supply issues, viewed as temporary.
- Pendal sees the operational fundamentals as resilient, supporting the investment case at current levels.
16 Mar
ASX:ORG
- Pendal Group continues to hold Origin Energy Ltd despite the Victorian Default Market Offer creating a pricing ceiling on retail electricity margins.
- The VMO affects less than 20% of retail customers directly but acts as a pricing benchmark constraining broader market-offer pricing.
- The headwind is similar to that facing AGL, with the benchmark effect dampening retail energy margin potential across the sector.
- Pendal maintains the position, weighing the retail headwind against Origin integrated energy and LNG export earnings.
16 Mar
ASX:RIC
- Wilson Asset Management believes Ridley Corporation is well-positioned to benefit from structural agricultural tailwinds and continues to hold, with growing conviction following the company's investor day and asset visits across all divisions.
- Ridley's FY2026–2028 growth strategy was presented at the investor day, outlining a clear path to capturing further value across its agriculture inputs distribution network.
- The recent acquisition of Incitec Pivot Fertiliser (IPF), the largest fertiliser distributor on Australia's East Coast, represents a material upside opportunity, with Ridley's scale and management expertise expected to drive both cost and revenue synergies.
- Asset recycling is expected to support further inorganic bolt-on acquisition opportunities, enhancing the long-term growth profile of the business.
16 Mar
ASX:STO
- Pendal Group continues to hold Santos Ltd because the Moomba Central Optimisation project is expected to lower breakeven costs and unlock production growth.
- Santos and Beach Energy are progressing the Moomba project, which is designed to reduce the basin cost structure.
- A lower breakeven cost base should unlock future production growth that was previously uneconomic at current commodity prices.
- Pendal views this as a meaningful operational catalyst that strengthens the long-term investment case for Santos.
16 Mar
ASX:TNE
- Alphinity Investment Management continues to hold TechnologyOne Ltd because recent selling pressure is disconnected from the company strong underlying results.
- TechnologyOne reported strong financial results but was swept up in a broader technology selloff.
- Alphinity frames this as a "software paradox" where fundamentally sound businesses trade down due to macro headwinds.
- The manager views both TechnologyOne and Life360 as less exposed to AI disruption risk, placing them in a defensive software category.
16 Mar
ASX:TLX
- Pendal Group continues to hold Telix Pharmaceuticals Ltd because the release of positive safety data for TLX591 clears a major de-risking milestone.
- The safety data for therapeutic TLX591 was released and appeared strong, removing a key near-term uncertainty for the stock.
- Telix plans to file with the FDA to advance the therapy to phase three clinical trials, a significant development milestone.
- Pendal views this as a positive catalyst that supports continued investment in the radiopharmaceutical growth story.
16 Mar
ASX:WMA
- Wilson Asset Management believes WAM Alternative Assets offers attractive exposure to real assets and continues to hold, with confidence reinforced by the acquisition of prime Sydney hotel assets at a discount to comparable transactions.
- WAM Alternative Assets' real estate partner, Wentworth Capital, has acquired the Novotel and Ibis Hotels in Darling Harbour — a combined 781-room portfolio on a prime 1.5-hectare Sydney CBD landholding — for $390 million.
- The acquisition was completed at a discount to comparable Sydney hotel transactions and below estimated replacement cost, providing an attractive entry point.
- Near-term income growth opportunities exist through targeted refurbishments and active asset management, while the site's longer-term redevelopment potential includes the option to add more than 40,000 square metres of additional floor area.
16 Mar
ASX:WDS
- Alphinity Investment Management continues to hold Woodside Energy Group Ltd because the short-term upside remains compelling despite recent share price gains.
- Alphinity was already bullish on oil and gas fundamentals before Woodside climbed a further 6%.
- The manager sees potential for Woodside to surprise to the upside in the near term, validating continued conviction.
- Rather than taking profits, the team believes the medium-term earnings trajectory justifies holding.
16 Mar
ASX:WOW
- Alphinity Investment Management increased their position in Woolworths Group Ltd because research indicated Coles had priced in its gains while Woolworths is entering a new growth phase.
- After 18 months favouring Coles, the team tactically rotated into Woolworths as fresh leadership signals a strategic renewal.
- The switch was validated shortly after, with Woolworths rising and Coles declining following the portfolio change.
- Alphinity sees Woolworths as having more growth runway at the current juncture relative to its supermarket peer.
12 Mar
ASX:XYZ
- ELM Responsible Investments continues to hold Block CDI because healthy gross profit growth and upgraded profitability targets confirm the medium-term earnings outlook.
- Block reported healthy gross profit growth and raised its medium-term profitability targets, a positive fundamental signal.
- The company transition to an AI-native operating structure is seen as a key efficiency driver that should improve margins over time.
- ELM maintains the position despite negative share price reactions, viewing these as valuation noise rather than fundamental deterioration.
12 Mar
ASX:HUB
- ELM Responsible Investments continues to hold Hub24 Ltd because record platform inflows and strong operating leverage confirm the long-term growth story remains intact.
- HUB24 posted double-digit revenue growth and record platform inflows, demonstrating strong competitive positioning.
- Strong operating leverage is emerging as the platform scales, which should drive meaningful earnings growth over time.
- ELM is not deterred by short-term share price weakness and continues to hold with conviction in the structural growth opportunity.
12 Mar
ASX:PME
- ELM Responsible Investments continues to hold Pro Medicus Ltd because strong first-half results and a robust contract pipeline justify maintaining conviction through short-term price volatility.
- Pro Medicus reported strong revenue and NPAT growth underpinned by additional large contract wins.
- The manager does not view sharp price reactions to results as fundamental deterioration, but rather as market overreaction in high-multiple stocks.
- ELM maintains high conviction in the long-term earnings trajectory and structural growth of the radiology imaging software business.
12 Mar
ASX:WTC
- ELM Responsible Investments continues to hold WiseTech Global Ltd because strong revenue growth, reaffirmed guidance and an AI-led roadmap underpin the long-term thesis.
- WiseTech delivered solid revenue growth with resilient margins and reaffirmed full-year guidance.
- The announcement of a major AI-driven efficiency program positions WiseTech as a next-generation logistics software leader.
- ELM sees near-term price volatility in high-multiple names as disconnected from fundamentals and uses it as a signal to maintain conviction.
09 Mar
ASX:WDS
- Wilson Asset Management believes Woodside's earnings and margins are materially supported by sustained higher oil prices and continues to hold because the company benefits from oil‑linked contracts, delivered a strong FY2025 result, has management that inspires confidence, and fits as a core holding in the WAM Leaders portfolio.
- Recent oil move: oil rose ~40% in the past two weeks to above USD100 per barrel, a clear tailwind for energy producers including Woodside.
- Oil‑linked contracts directly lift revenue and expand profit margins, translating higher oil prices into stronger cash flow for Woodside.
- Sensitivity analysis shows a USD10 increase to ~USD80/bbl is associated with a low‑double‑digit uplift in EBITDA, while a further increase USD80→USD90 produces a high single‑digit uplift.
- With oil now above these levels, Woodside stands to benefit further, though earnings outcomes depend on the duration of higher prices.
- Operational confidence: the FY2025 result was strong with few surprises, and meetings with management reinforced WAM's positive outlook.
- Portfolio position: Woodside remains a core holding in the WAM Leaders investment portfolio due to its price exposure, contract structure, recent results, and management outlook.
06 Mar
ASX:AZJ
- Perpetual Asset Management reduced their position in Aurizon Holdings Ltd because significant uncertainty surrounds the above-rail business as key contracts expire.
- While the below-rail coal business is a high-quality asset, Perpetual has concerns about the rest of the business.
- Approximately 50% of above-rail coal contracted volumes are due for renegotiation over the next two years, creating meaningful earnings risk.
- Perpetual questions whether returns on the above-rail business are sufficient to justify continued investment at current prices.
06 Mar
ASX:AZJ
- Plato Investment Management increased their position in Aurizon Holdings Ltd because the risk/reward is attractive despite near-term contracting headwinds.
- Plato acknowledges contracting challenges over the next two years but believes the market has overly discounted these risks.
- Aurizon is viewed as a solid mining service contractor with a compelling valuation relative to its long-term earnings capacity.
- The current entry point is seen as sufficiently attractive to justify increasing exposure despite the uncertainties.
06 Mar
ASX:CPU
- Perpetual Asset Management continues to hold Computershare Ltd because management has effectively termed out margin income, reducing rate sensitivity.
- The company is less sensitive to rate cuts than in previous cycles due to proactive balance sheet management.
- The core investor services business is recovering after a tough few years, adding a second growth engine.
- Perpetual views Computershare as a balanced hold with adequate downside protection and participation in any upside.
06 Mar
ASX:CPU
- Plato Investment Management increased their position in Computershare Ltd because rising interest rates directly benefit the company significant margin income exposure.
- Computershare investor services business sits on large cash balances that generate outsized returns as rates rise.
- Plato has high conviction in a sustained higher-rate environment, making Computershare a key beneficiary in the portfolio.
- The combination of structural business quality and an interest rate tailwind makes the risk/reward compelling at current levels.
06 Mar
ASX:JBH
- Plato Investment Management increased their position in JB Hi-Fi Ltd because underlying sales growth remains buoyant despite share price weakness from rate concerns.
- Sales grew 7% in a rising rate environment, demonstrating resilience of the consumer electronics category.
- The share price de-rating is seen as an overreaction to macro headwinds rather than a reflection of deteriorating fundamentals.
- Plato views the current price as an attractive entry point for a structurally sound retailer.
06 Mar
ASX:JBH
- Perpetual Asset Management increased their position in JB Hi-Fi Ltd because the company benefits from a structural tailwind of continuously evolving consumer technology products.
- The continuous technology product roadmap drives sustained consumer demand regardless of the economic cycle.
- Perpetual sees per-household technology spend growing as consumers adopt more devices across all demographics.
- The combination of structural demand tailwinds and an attractive valuation underpins the positive thesis.
06 Mar
ASX:TLC
- Plato Investment Management increased their position in Lottery Corporation Ltd because strong Keno performance demonstrates resilience even in a tough jackpot period.
- Despite a below-average jackpot period in the main lottery business, Keno delivered strong results, highlighting earnings diversity.
- Plato sees the structural moat of lottery concessions as highly valuable and difficult to replicate.
- The current share price is seen as a compelling entry point relative to the long-term earnings potential of the business.
06 Mar
ASX:TLC
- Perpetual Asset Management increased their position in Lottery Corporation Ltd because it operates a near-monopoly lottery business with long-dated, high-quality concessions.
- The lottery category has shown solid long-term growth despite periodic jackpot volatility.
- TLC holds a near-monopoly in Australian lotteries backed by long-dated concessions, providing high earnings predictability.
- Perpetual views the risk/reward as highly attractive given the structural moat and visible earnings growth trajectory.
06 Mar
ASX:TCL
- Perpetual Asset Management reduced their position in Transurban Group because the premium valuation is not justified relative to the finite-life nature of toll road concessions.
- While inflation-linked pricing escalators are attractive, Perpetual views the stock as overpriced for what is ultimately a wasting asset.
- The concession model limits long-term growth as toll roads will eventually be returned to governments at the end of each concession period.
- The current valuation trades at a material premium that more than accounts for near-term earnings visibility.
06 Mar
ASX:TCL
- Plato Investment Management continues to hold Transurban Group because the long average concession life of 28 years provides substantial earnings visibility.
- The 28-year average concession life means the asset base will remain productive for a significant period, reducing near-term concession risk.
- Plato views the inflation-protected cash flows positively in the current elevated price environment.
- Despite trading at 24x earnings, the defensive income characteristics justify maintaining the position.
04 Mar
ASX:GPT
- Perpetual Asset Management believes GPT Group's refreshed management team and active asset‑owner strategy create attractive long‑term prospects and continues to hold because the team can seed funds management vehicles, underlying assets are performing, and recent market weakness provides a compelling entry point.
- Perpetual Asset Management highlights the management refresh across CEO, CFO and the wider investment team over the past 24 months and rates the new team highly.
- Perpetual Asset Management notes the strategic shift from a passive owner to an active asset owner, leveraging the balance sheet and on‑balance‑sheet assets to seed and grow funds management activities.
- Perpetual Asset Management observes the assets are performing well (latest results), with retail assets in particular expected to continue generating solid growth.
- Perpetual Asset Management considers the recent share price sell‑off, driven by shifts in Australian interest‑rate expectations, an interesting entry point.
- Perpetual Asset Management points to a strong balance sheet that provides a buffer against a higher rate environment and a debt profile with a relatively high average cost of debt, reducing sensitivity to further rate increases.
- Perpetual Asset Management notes the income profile sits at about a 5% yield with expected growth and the stock trades at roughly a 10% discount to NTA.
04 Mar
ASX:MND
- Plato Investment Management believes the mining services segment is under-appreciated and continues to hold because Monadelphous is a well‑managed operator showing strong recent results that position it to benefit from the current mining boom.
- Mining services are inherently risky: companies can mismanage projects or overbid, which has historically caused ~30% share‑price declines for some peers.
- Despite that risk, Plato sees a cohort of well‑managed mining services firms delivering strong performance in the current cycle.
- The broader mining sector is booming, creating a large pipeline of projects and demand for engineering, construction and maintenance services.
- Monadelphous recently reported an approximately 30–40% increase in profit and lifted dividends by ~50%, demonstrating earnings and cashflow strength.
- Monadelphous has appreciated in price but, in Plato’s view, still represents attractive value relative to its quality and market opportunity.
- Key investment drivers: exposure to a busy project pipeline, resilient cash generation supporting dividends, and proven operational/management capability.
02 Mar
ASX:AUB
- Pendal Group believes AUB is materially mispriced and continues to hold because 1H26 results were broadly in line with consensus, the FY26 NPAT upgrade was modest, the sell‑off reflects sentiment‑driven de‑rating rather than earnings deterioration, and the stock now trades at historically cheap valuations — while acknowledging timing of any sentiment recovery is uncertain.
- 1H26 result: In line with consensus; FY26 NPAT guidance upgraded by +1.5% at the midpoint.
- Drivers: Stronger‑than‑expected performance from BizCover and Agencies, partly offset by New Zealand weakness and FX headwinds.
- No material earnings revisions: Consensus was already at the midpoint of the new range, so reported results did not prompt significant estimate changes.
- Market reaction: Share price fell ~5% as investors focused on softening premium rates and AI disruption risks.
- Sector derating: Global insurance brokers have derated ~40% (from ~25x to ~15x PE) over the past year; AUB has derated ~50% from its peak.
- Valuation: AUB trades at ~11x FY27 PE, the cheapest absolute and relative valuation since IPO in 2006 (excluding the GFC period).
- Nature of decline: The move has been an almost pure de‑rating rather than evidence of material earnings deterioration.
- Implied risk pricing: Current market pricing appears to embed more than cyclical risk and assigns significant secular risk to the business.
- Pendal view on outlook: Believes these fears are overdone, but the timing of a recovery in sentiment remains uncertain.
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