Author: openjargon

Westpac Banking Corp (ASX: WBC) shares have pulled back from their recent highs, which may tempt investors who missed the earlier run.

The fully franked dividend also remains appealing.

But has the lower share price created one of the best buying opportunities on the ASX this week?

A fair price rather than a bargain

Westpac shares are trading around $36.66.

According to consensus estimates, this puts the shares on a price-to-earnings ratio of around 17.2 times FY26 earnings and 17.1 times FY27 earnings.

Those multiples are far from outrageous, particularly for a major bank with a large customer base and a strong capital position.

The forecast dividend adds more weight to the investment case.

Consensus estimates are for dividends per share of $1.54 in FY26 and $1.55 in FY27, giving Westpac forward dividend yields of approximately 4.2% in both years. Those dividends are expected to be fully franked, which could improve the after-tax income for eligible investors.

I can understand why that combination would attract income-focused shareholders.

Westpac is making progress

I think the investment case has improved under CEO Anthony Miller.

Westpac has been growing across mortgages, business lending, and deposits, while also trying to reduce unnecessary complexity across the company. Its first-half result showed continued lending momentum, lower costs compared with the previous half, and a capital position comfortably above management’s target.

I also like the opportunity in business banking. Relationships with business customers can extend across lending, deposits, payments, equipment finance, working capital, and transaction services. That can make them deeper than a standard home loan relationship and provide several ways for Westpac to earn revenue.

The UNITE technology program could also leave Westpac with a simpler and more efficient bank. Bringing systems and processes together should eventually improve the customer experience and reduce duplication, although a transformation of this size will require careful execution.

Why I am staying selective

The biggest issue for me is the limited earnings growth currently expected.

Consensus estimates suggest EPS will rise only slightly between FY26 and FY27. At around 17 times forecast earnings, I do not think investors are being offered enough of a discount to compensate for that modest outlook.

Banking also remains intensely competitive. Westpac must fight for mortgages and deposits while investing heavily in technology, meeting regulatory requirements, and preparing for credit losses if economic conditions weaken.

Foolish takeaway

Westpac is heading in a better direction, and the recent share price weakness has improved the entry point.

Existing shareholders have good reasons to remain patient while collecting a fully franked dividend. Income investors may also find the forecast yield attractive enough to begin a measured position.

Even so, I would not call Westpac shares a top buy this week. The valuation looks fair rather than cheap, while forecast earnings growth remains subdued.

For me, Westpac is a hold at current prices and a potential buy after a further pullback.

The post Are Westpac shares a top buy this week? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Ophir High Conviction Fund (ASX: OPH) share price is in focus today after announcing its full-year unfranked distribution of 36.33 cents per unit, with payment due on 17 August 2026.

What did Ophir High Conviction Fund report?

• Full year unfranked distribution of 36.33 cents per unit
• Distribution relates to the period ending 30 June 2026
• Record date is 1 July 2026; ex-date is 30 June 2026
• Payment scheduled for 17 August 2026
• Distribution Reinvestment Plan (DRP) available to eligible unitholders with a zero discount

What else do investors need to know?

This distribution is entirely unfranked, reflecting current taxation arrangements for the fund. The DRP allows eligible investors—those based in Australia and New Zealand—to reinvest their distributions into additional units, with the reinvestment price to be based on the fund’s net asset value during the calculation period.

Unitholders who do not elect to participate in the DRP will receive their distribution as a cash payment. Final tax component details will be provided in standard AMMA statements following 30 June.

What’s next for Ophir High Conviction Fund?

Looking ahead, management is expected to continue focusing on delivering value to unitholders and communicating distribution details clearly. Eligible investors may choose to reinvest or receive distributions as cash, depending on their individual circumstances. The fund will update the market on any changes to future distributions or fund strategies as needed.

Ophir High Conviction Fund share price snapshot

Over the past 12 months, Ophir High Conviction shares have declined 19%, trailing the S&P/ASX All Ords Index (ASX: XAO), which has risen 2% over the same period.

View Original Announcement

The post Ophir High Conviction Fund announces FY26 unfranked distribution appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

S&P/ASX Small Ordinaries Index (ASX: XSO) shares are in the green on Monday, up 0.5% to 3,323.9 points.

ASX small-cap shares outperformed in FY26. The index rose 5.46% and delivered a total return, including dividends, of 8.11%.

This compares with a 2.43% rise and a 5.69% total return for the S&P/ASX All Ordinaries Index (ASX: XAO).

This week, experts are calling time on three ASX small-cap shares.

Let’s find out why (courtesy The Bull).

Judo Capital Holdings Ltd (ASX: JDO)

The Judo share price is 95 cents, up 1.3% on Monday and down 39% over 12 months.

The ASX small-cap bank share took a big hit last month after Judo issued a profit guidance downgrade.

Mark Elzayed from Investor Pulse explains his sell recommendation on Judo Capital shares:

Judo recently cut profit before tax guidance in fiscal year 2026 to between $163 million and $169 million from a previous range of between $180 million and $190 million.

It was primarily driven by a higher cost of risk now expected to range between $116 million and $122 million following specific provisions against three exposures across different sectors.

Profit before tax guidance of between $210 million and $220 million in full year 2027 was below market expectations of $255.1 million.

In our view, market reaction reflects more than a one-off potential earnings downgrade.

Provisioning risk remains elevated, so we retain a sell on Judo Capital.

Forrestania Resources Ltd (ASX: FRS)

The Forrestania Resources share price is 38 cents, down 3.8% today but up 192% over 12 months.

Elzayed also gives this ASX small-cap materials share a sell rating, and commented:

FRS is a gold exploration and development company focusing on building quality projects across Western Australia’s mining districts.

FRS announced on July 1 it had received binding commitments to raise about $310 million for the Edna May Gold Hub. The company’s objective is to have Edna May fully commissioned and operational in the first half of 2027.

An institutional placement of 775 million shares was priced at 40 cents. The placement is shareholder dilutive and gold prices remain under pressure, in our view.

The shares have fallen from 64 cents on May 18 to trade at 39 cents on July 15.

Readytech Holdings Ltd (ASX: RDY)

The Readytech share price is $1.61, down 0.3% today and and down 33% over 12 months.

Nathan Lodge from Securities Vault explained his sell rating on this ASX small-cap tech share:

An unsolicited, non-binding indicative proposal to acquire ReadyTech Holdings was rejected by the RDY board on June 1, 2026.

The RDY board concluded that the $2 a share cash scheme arrangement and a parallel off market bid of $1.75 a share didn’t reflect the company’s inherent value and wouldn’t be executable. The shares were trading at $1.61 on July 15.

ReadyTech has built a quality software business with recurring revenue across education, workforce management and government solutions.

However, I believe much of the company’s long term growth potential is already reflected in the share price, limiting scope for further upside in the near term. ReadyTech operates in highly competitive markets.

The post Sell Judo shares and 2 other ASX small-caps: experts appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ReadyTech. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) shares are up 0.14% to 8,808.6 points on Monday afternoon. 

The fastest rising ASX 200 shares today are 4D Medical Ltd (ASX: 4DX), up 10%, and Deep Yellow Ltd (ASX: DYL), up 7.3%.

Among the biggest fallers are Alcoa Corporation CDI (ASX: AAI), down 3.8%, and Pexa Group Ltd (ASX: PXA), down 3.6%.

Let’s check out 3 shares with new ratings from the experts today (courtesy The Bull). 

SKS Technologies Group Ltd (ASX: SKS)

The SKS Technologies share price is $7.95, down 5% today but up 250% over 12 months.

Mark Elzayed from Investor Pulse has a buy rating on this ASX 200 industrials share. 

He said: 

SKS specialises in electrical technologies and digital infrastructure. It offers services across audio visual, communications and electrical solutions in Australia.

In our view, it’s a compelling buy in response to Australia’s data centre electrification boom.

Sales revenue rose 13.6 per cent in the first half of 2026 when compared to the prior corresponding period, while profit before tax increased 52.8 per cent. EBITDA was up 42.9 per cent.

The company is forecasting full year revenue of $340 million in full year 2026 at a profit before tax margin of 10 per cent.

The forecast is underpinned by a robust order book and the Delta Elcom acquisition expanding its Sydney data centre footprint and representing a significant percentage of the domestic market.

Yancoal Australia Ltd (ASX: YAL)

The Yancoal share price is $5.69, up 6.1% today and down 6.5% over 12 months.

The coal producer is the third fastest-rising share of the ASX 200 today.

Elzayed has a hold rating on this ASX 200 energy share. 

He explained:  

Yancoal is balancing strong fundamentals against a near term overhang.

In April, YAL announced it would acquire 80 per cent of the Kestrel metallurgical coal mine in the Bowen Basin for $US2.4 billion. The acquisition is accretive over the long term, but adds leverage.

Diesel cost inflation threatens to push 2026 unit costs toward the top end of its guidance range.

Consensus targets of about $7.02 on July 15 imply upside, but integration and coal price risks argue for holding the stock rather than adding.

Wesfarmers Ltd (ASX: WES) 

The Wesfarmers share price is $92.64, down 0.2% today and up 10.6% over 12 months.

Tony Locantro from Alto Capital has a sell rating on the ASX 200’s largest consumer discretionary share.

He said:

The company delivered a strong first half result in full year 2026, reporting net profit after tax of $1.603 billion, up 9.3 per cent, reflecting continued earnings growth across its retail portfolio amid disciplined operational execution.

Despite these strong fundamentals, much of the company’s quality and long term growth outlook appear fully reflected in its premium valuation.

While Wesfarmers remains an outstanding long term business, future upside may be constrained by elevated market expectations.

Given the strong share price performance and demanding valuation, the current risk-reward balance supports taking profits at current levels.

The post Buy, hold, sell: SKS Technologies, Yancoal, Wesfarmers shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Sks Technologies Group and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) shares are up 0.16% to 8,810.5 points on Monday.

Among the 11 market sectors, energy is in the lead today, up 1.9%.

The technology sector is the laggard, down 1.1%.

Let’s check out some new ratings on three ASX 200 shares.

Wisetech Global Ltd (ASX: WTC)

The Wisetech share price is $33.88, down 3.1% today and down 71% over 12 months.

Bell Potter has a buy rating on this ASX 200 tech share with a 12-month target price of $71.75.

Analyst Chris Savage said: 

There has been a tech rally of sorts on the ASX over the past couple of months and this has been led by some of the large cap names including Pro Medicus Ltd (ASX: PME), Block CDI (ASX: XYZ) and Life360 Inc (ASX: 360).

One large cap which has not rallied, however, is WiseTech and this is likely due to a number of factors including further negative press reports around founder and Chief Innovation Officer Richard White, concern around the potential future loss of key customer DSV and risk around both the FY26 result and FY27 guidance and whether each meets market expectations.

In our view, however, these negatives will start to dissipate over the coming months and indeed have already commenced with
the appointment earlier this month of Raelene Murphy to Chair which we regard as a positive move.

Sigma Healthcare Ltd (ASX: SIG)

The Sigma Healthcare share price is $2.94, up 0.2% today and up 7% over 12 months.

Bell Potter has a hold rating on this ASX 200 healthcare share with a price target of $3.

Analyst John Hester said: 

… investment metrics for SIG are not sufficiently attractive to warrant a Buy rating, particularly with a single payer (the Federal Government) representing a disproportionate level of group revenue.

The Government’s propensity to alter funding arrangements on short notice with little industry consultation should elevate the risk rating on SIG.

Commonwealth Bank of Australia (ASX: CBA)

CBA shares are $172.73 apiece, up 0.6% today and down 3% over 12 months.

Morgans has a sell rating on CBA shares and just reduced its 12-month target from $119.40 to $117.63.

Analyst Nathan Lead said:

We make updates to our forecasts ahead of the FY26 result in August. Net result is 1-2% downgrades to FY27-28F EPS.

Sell retained, given stretched valuation metrics remain implied in the share price (c.26x PER, 3.7x PBV, 2.9% cash yield).

The post Buy, hold, sell: Sigma Healthcare, Wisetech Global, CBA shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Life360, and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Life360 and WiseTech Global. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 300 Index (ASX: XKO) tech stock Weebit Nano Ltd (ASX: WBT) has delivered some smashing gains over the past 12 months.

In early afternoon trade on Monday, shares in the semiconductor memory technology company are changing hands for $5.62 apiece.

This sees the Weebit Nano share price up a very impressive 148.7% over the last year, racing ahead of the 1.3% 12-month gains delivered by the benchmark index.

And looking ahead, Investor Pulse’s Mark Elzayed believes the stock is well-placed to keep outperforming (courtesy of The Bull).

Here’s why.

Should I buy the ASX 300 tech stock today?

“Weebit Nano develops advanced semiconductor memory technology,” Elzayed noted late last week.

Commenting on his bullish outlook for the ASX 300 tech stock, he said:

Licensing deals with Texas Instruments and onsemi have contributed to company performance. Revenue guidance of $10 million in full year 2026 and a recent capital raising of $102 million fortifies the balance sheet for artificial intelligence and research development.

Indeed, in a market announcement out just this morning, Weebit Nano again upgraded its full year revenue guidance.

According to the release:

Based on unaudited numbers, the company now expects revenue to be at least A$13.5 million, replacing previous guidance of “at least A$12 million”. The increased revenue guidance is mainly attributable to the expansion of customer projects.

Summarising his buy recommendation on Weebit Nano shares, Elzayed concluded:

The shift towards a recurring royalty model generates long term operating leverage. Momentum and news flow are positive, although the multi-year path from licence to royalty income remains the key execution risk.

What’s the latest from Weebit Nano?

The ASX 300 tech stock reported its third quarter (Q3 FY 2026) results on 30 April.

Commenting on the company’s upgraded full year revenue guidance at the time, Weebit Nano CEO Coby Hanoch said, “It’s been an important quarter for Weebit Nano as we made the strategic decision to significantly strengthen our balance sheet to accelerate our growth ambitions.”

Hatch noted:

Our technology was selected for a Korean National Compute-in-Memory program, we secured two new revenue-generating agreements, and continued to make strong technical progress with onsemi and Texas Instruments.

As for the recent capital raising the Elzayed mentioned above, Hatch said:

The added capital from our recent raise enables us to widen the gap between ourselves and competitors and have undisputedly the best ReRAM in the market. As the only independent provider of qualified ReRAM, we have a once-in-a-generation opportunity to take share as adoption shifts from niche to mainstream.

The post Up 149% in a year, why this surging ASX 300 tech stock is still a good buy today appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Clinuvel Pharmaceuticals Ltd (ASX: CUV) climbed around 5% to $10.40 on Monday after the ASX biotech stock confirmed its shares will begin trading on the Nasdaq stock exchange in the US.

The Nasdaq is the world’s second-largest stock exchange after the New York Stock Exchange. It is home to many of the world’s leading technology and healthcare companies, including Nvidia Corp (NASDAQ: NVDA) and Microsoft Corp (NASDAQ: MSFT).

Clinuvel confirms Nasdaq debut

In an ASX announcement today, the ASX biotech stock said its American Depositary Shares (ADS) are expected to commence trading on the Nasdaq later on Monday (New York time) under the ticker CUVL.

The milestone follows the US Securities and Exchange Commission declaring the company’s Form 20-F registration statement effective on 17 July, along with Nasdaq approving the listing.

As part of the move, Clinuvel’s existing over-the-counter American Depositary Receipt (ADR) program will be upgraded from a Level I ADR to a Level II ADS listed on Nasdaq. Each ADS will represent one ordinary Clinuvel share listed on the ASX.

Importantly, the company is not raising capital or issuing new shares as part of the listing. This means the move is designed to improve market access rather than fund the business.

Existing holders of Clinuvel’s US-traded ADRs also won’t need to take any action. Their holdings will automatically transition to the new Nasdaq-listed security.

Why does a Nasdaq listing matter?

A Nasdaq listing can significantly increase a company’s visibility among US investors and improve trading liquidity. It also provides access to specialist healthcare and biotechnology investors who are often more familiar with the sector and can broaden the company’s shareholder base.

The Nasdaq Global Select Market, where the ASX biotech stock will trade, also offers greater analytical coverage and inclusion in Nasdaq’s market ecosystem. This potentially increases awareness among institutional investors.

That said, investors shouldn’t expect the listing alone to transform the company’s fortunes overnight. Greater visibility could support future growth opportunities and provide access to deeper capital markets if required. However, Clinuvel’s long-term success will ultimately depend on executing its commercial strategy.

What did management say?

Clinuvel Chairman Jeffrey Rosenfeld said:

The upgrade of CUVL to the Nasdaq marks an important step for Clinuvel’s visibility in U.S. capital markets, as well as reflecting a broader shift of our business towards North America. In the context of all our activities, the gradual shift to the U.S. makes much sense as the Company is maturing.

Foolish Takeaway

Clinuvel already has a commercialised product in SCENESSE®. It is approved in multiple markets, including the United States and Europe.

The Nasdaq listing has the potential to raise the international profile of the ASX biotech stock. It also expands its access to one of the world’s deepest pools of healthcare capital.

However, the real driver of long-term shareholder returns will remain business execution.

Despite today’s rally, Clinuvel shares are still down around 17% so far this year. This suggests investors are waiting for stronger evidence that the company’s next phase of growth is taking shape.

The post This ASX biotech stock just scored a Nasdaq listing. Shares are jumping appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Microsoft and Nvidia. The Motley Fool Australia has recommended Microsoft and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Pro Medicus Ltd (ASX: PME) shares are pushing higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) health imaging company closed on Friday trading for $187.11. As we head into the Monday lunch hour, shares are swapping hands for $188.83 each, up 0.9%.

For some context, the ASX 200 is up 0.2% at this same time.

With today’s intraday lift factored in, Pro Medicus shares are now up an impressive 74.6% since notching a one-year closing low of $108.15 on 24 February.

That strong rebound followed months of heavy selling after the stock hit an all-time closing high of $330.48 a share on 17 July 2025.

As you may be aware, that selling pressure came amid a broader global sell-down of Software as a Service (SaaS) stocks.

The so-called SaaSpocalypse hit Pro Medicus and many other stocks dependent on their proprietary software amid concerns that artificial intelligence might replace the services these companies provide.

But with those concerns clearly fading for Pro Medicus over the past five months, is the ASX 200 healthcare share still a good buy today?

Should I buy Pro Medicus shares now?

Alto Capital’s Tony Locantro recently ran his slide rule over the ASX 200 stock (courtesy of The Bull).

“The company provides medical imaging software and services to hospitals and healthcare groups across the world,” he said.

Locantro noted:

The company recently delivered an outstanding first half result in full year 2026. Underlying earnings before interest and tax was up 29.7% and revenue was up 28.4% amid securing more than A$280 million in new contract wins.

But following the strong rebound in Pro Medicus shares since February, Locantro issued a sell recommendation on the stock.

He concluded:

Despite these exceptional fundamentals, the company’s premium valuation reflects high market expectations and leaves limited room for disappointment. While Pro Medicus remains a best-in-class business with strong long-term prospects, the current risk-reward balance supports a view to trim holdings at current levels.

What else did the ASX 200 healthcare share report for H1 FY 2026?

Atop the strong earnings and revenue growth Locantro mentioned above, Pro Medicus shares have also been grabbing investor attention amid surging profits.

The company reported first-half net profit after tax of $171.2 million, up 230.9% year on year.

“Our profits continue to grow strongly even though our biggest implementation during the period in Trinity Cohort 1 went live towards the end of October so had limited impact on the half,” Pro Medicus CEO Sam Hupert said on the day of the results release.

The post Up 75%, are Pro Medicus shares still a good buy now? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Despite turbulent world events, including the war in the Middle East, Australian superannuation funds have chalked up a fourth straight year of strong returns, with UniSuper Growth edging out its peers to be the best performer over the period.

Excellent superannuation returns once again

Data released by Chant West indicates that the median growth superannuation fund, which is 61% to 80% invested in growth assets, gained a healthy 9.5% during FY26.

Chant West said this followed returns of 9.2% in FY23, 9.1% in FY24, and 10.4% in FY25, “taking the cumulative return to an impressive 44% over the past four years”.

Members invested in higher-risk options would generally have enjoyed even better outcomes, the analytics company said.

Chant West Head of Super Investment Mano Mohankumar said the FY26 result was once again driven by international shares, but it also helped that nearly all asset classes generated positive returns over the period.

He added:

International shares surged 25.5% in hedged terms, supported by continued enthusiasm for AI and robust corporate earnings. Despite the Australian dollar’s appreciation against most major currencies, the return in unhedged terms delivered an impressive 17%. International shares have the highest allocation within a typical growth fund, accounting for about 31% on average. By comparison, Australian shares, which on average has a weighting of 24%, returned a modest 6.2% over the year.

Mr Mohankumar said generally speaking, funds with a higher allocation to international shares performed better.

He added:

Diversification also provided some benefit given the wide dispersion of returns across asset classes, though it would have helped if you had lower allocations to traditional defensive assets. Australian bonds, international bonds and cash returned 1.5%, 2.9% and 3.9%, respectively, making them among the weakest performing asset classes over the year. The only asset class to finish in negative territory was Australian listed property, which declined 1.8%. In contrast, international listed real assets performed exceptionally well, with international listed infrastructure and listed property returning 17.2% and 14.3%, respectively.

Which were the best-performing superannuation funds?

Among growth funds, the top-performing growth funds for the year were UniSuper Growth with 12.3%, NGS Super Diversified with 11.5%, CFS Firstchoice Growth with 11.5%, and Hostplus Balanced with 10.8%.

Mr Mohankumar said that while super funds had delivered four straight years of returns of 9% or more, that level of return shouldn’t be thought of as normal.

He added:

The typical long-term return objective for growth funds is to beat inflation by 3.5% p.a., which translates to roughly 6% p.a. Since the introduction of compulsory super, the annualised return is 8% and the annual CPI increase is 2.7%, giving a real return of 5.3% p.a. – well above that 3.5% target. Even looking at the past 20 years, which includes three major share market downturns – the GFC in 2007-2009, COVID-19 in 2020 and the high inflation and rising interest rates in 2022 – super funds have returned 6.9% p.a., which is still comfortably ahead of the typical objective.

The post Which superannuation fund outperformed its peers last financial year? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

South32 Ltd (ASX: S32) shares climbed as much as 2.5% at Monday’s open before easing to trade around 1.7% higher at $3.97 in early afternoon trade.

The mining giant has been a standout performer over the past year, with its shares gaining 31%, comfortably outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen just 1% over the same period.

So, what impressed investors?

South32 unveils strong operating update

South32 released its June quarter production report alongside details of a transformational portfolio reshaping.

The headline announcement of South32 shares was the sale of its aluminium value chain business – excluding Mozal Aluminium – to Alcoa in a deal worth up to US$5.6 billion. The transaction also transfers around US$1.2 billion of rehabilitation provisions and is expected to reshape South32 into a more focused base metals producer.

Operationally, the company also delivered several positive surprises. Copper production at Sierra Gorda exceeded FY26 guidance by 2% and generated record annual distributions of US$401 million. Manganese production also beat expectations, finishing 1% above guidance in Australia and 4% ahead in South Africa.

Group sales volumes rose 15% during the June quarter, unlocking around US$200 million of working capital and supporting stronger cash generation.

South32 also returned US$327 million to shareholders during FY26 through dividends and on-market share buybacks while continuing to invest in future growth, spending approximately US$710 million developing its Hermosa zinc-lead-silver project in Arizona.

What management said

The update also marked the company’s first production report under new CEO Matt Daley, who officially succeeded Graham Kerr on 1 July. Daley said:

We continued to deliver strong operating results, exceeding Group production guidance for FY26. We increased quarterly sales volumes by 15%, capturing the benefit of strong market conditions across many of our commodities, and releasing working capital which added to the Group’s cash generation. On 1 July, we announced a step change for South32, with the sale of our aluminium value chain business to Alcoa. Once complete, this sale will unlock significant value for shareholders and reposition South32 as a leading upstream base metals focused company. Our portfolio will be built around high-margin, long-life assets in favourable jurisdictions, with approximately 85% of pro-forma earnings from base and precious metals and approximately 55% production growth from approved projects.

What else should investors know?

Management highlighted continued strong production from Cannington, Sierra Gorda, and its manganese operations. Development at Hermosa remains on schedule, with key US permitting milestones achieved.

Despite higher freight and raw material costs linked to geopolitical disruptions, South32 said it maintained disciplined cost control across the business.

Looking ahead, the company plans to optimise its existing operations while progressing open-pit development at Cannington and managing water impacts at its Australian manganese business. Updated FY27 production guidance for Australia Manganese is expected with its upcoming full-year results on 27 August.

Daley added:

Looking ahead, our focus on operational excellence, a strong balance sheet and transformational growth in base metals leaves us well positioned to deliver value for shareholders.

The post Why South32 shares edge higher on strong results and landmark deal appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has positions in South32. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.