Key points

• The Ardea share price hit a new 52-week-high this week

• The miner has made a significant discovery at its Emu Lake site

• The company has found another fertile exploration space at the site

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The Ardea Resources Ltd (ASX: ARL) share price has seen a relatively stable 12 months… until now.

This morning, the miner released a positive report regarding its Western Australia exploration site, driving its share price up by as much as 58%.

It has since settled back down to close 77 cents — an increase of 50%.

So what’s so exceptional about this announcement that made the Ardea share price skyrocket?

Let’s take a look…

Significant drill discovery for Ardea

To bring you up to speed — Ardea is a multi-commodity miner with interests in Western Australia.

Its primary focus is to export its resources to the lithium-ion battery sector — meeting the growing demand for electric vehicles and storage.

Its main interests are the Kalgoorlie Nickel Project, the Goongarrie Hub (both being the largest source of nickel-cobalt in the developed world), and its exploration of nickel sulphide within the Eastern Goldfields — all located in WA.

This morning, Ardea announced had “confirmed a high-grade massive nickel-copper-PGE sulphide discovery” at its Emu Lake site within the Eastern Goldfields.

It has successfully found 2.72m at 5.42% nickel and 0.85% copper from a drill hole at 391.04 metres.

According to the miner, the drill site has shown “increased massive nickel and copper sulphide grade and thickness on an intact, basal dacite contact”.

Other zones discovered

It’s not just the sulphide discovery that has Ardea excited.

The company has also opened up an exploration incentive scheme to test the down plunge extension of today’s winning drill hole — an exercise which has been co-funded with the WA government.

It is set to commence exploration once a rig is made available.

Further, CSIRO is set to study the mineralisation of the nickel sulphite found at Emu Lake, determining the massive sulphide within the site.

In addition, the miner has found a precise new fertile target to pursue — deemed the Western Ultramafic-Dacite contact — in which it controls 20km of strike.

Ardea managing director, Andrew Penkethman said:

With Ardea holding 20km of fertile komatiite strike at Emu Lake, there is significant scope to extend this nickel sulphide discovery and make additional discoveries.

I acknowledge the Ardea team and partners such as CSIRO and Newexco for their input which has assisted in developing the Emu Lake “Thermal Erosion” nickel sulphide model which is a major exploration breakthrough for the company, as it has opened up a new search space.

Ardea Resources share price snapshot

Before today, the Ardea share price saw its largest spikes of the last 12 months in February and June 2021.

The first jump came after the miner announced the sale of its Bedonia East project to Moneghetti Minerals Limited, in order to focus on its Kalgoorlie site. The Ardea share price rose 15% in a few days, before dropping again, with announcing a 60 million tonne at 1.0% nickel resource estimate at Goongarrie.

Prices surged again in June, after the miner announced a large interception of nickel sulphide at Emu Lake.

At these two high points, the Ardea share price was at 60 cents and 59 cents respectively.

The company has a market capitalisation of $70.80 million and over 138 million shares issued.

The post Why the Ardea Resources (ASX:ARL) share price rocketed 50% today appeared first on The Motley Fool Australia.

More reading

• These 2 beaten-down growth ETFs could be a buy today
• Why has the AGL (ASX:AGL) Energy share price climbed 18% in a week?
• Own QBE (ASX:QBE) shares? Macquarie just upgraded ‘outperform’. Here’s why
• 2 ASX shares with growing fully franked dividends
• New Hope (ASX:NHC) share price slides following CEO resignation

Motley Fool contributor Alice de Bruin 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 Bruce Jackson.

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Key points

• The ASX 200 may have had a good year in 2021, but not all ETFs did
•  2 ASX growth-focused ETFs have been beaten down
• Market distaste for tech and Chinese companies could be worth a deeper dive

As most investors would be aware of, 2022 has certainly brought a boatload of volatility and unpredictability to the markets. Fresh off a robust 13% performance from the S&P/ASX 200 Index (ASX: XJO) in 2021, 2022 has been a tale of a different nature thus far. But even though the past few months have generally been good to investors, the prosperity hasn’t extended to all corners of the market.

So here are 2 ASX exchange-traded funds (ETFs) that have taken a beating recently. Both ETFs could be described as ‘growth-focused’, and have given investors some very strong returns until recently. Let’s dive in.

BetaShares Nasdaq 100 ETF (ASX: NDQ)

Our first ETF is more of an index fund. NDQ mirrors the NASDAQ-100 (INDEXNASDAQ: NDX), an index that follows the 100 largest shares on the US Nasdaq market. The Nasdaq is known for being the exchange that largely houses the US’s tech sector. Most of the prominent US tech companies that we all know are housed here, including Apple Inc (NASDAQ: AAPL), Amazon.com Inc (NASDAQ: AMZN), Netflix Inc (NASDAQ: NFLX) and Tesla Inc (NASDAQ: TSLA). Thus, these companies are the ones that dominate the BetaShares Nasdaq 100 ETF’s top holdings.

But NDQ has taken a bit of a beating over the past few months. It’s already down more than 7% in 2022 so far, as well as losing almost 7.5% since reaching its last all-time high back in early December. Despite this, NDQ has still averaged a 36% return or so on average over the past 3 years (as of 31 December).

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

Another tech-focused ETF, this Asia Technology Tigers ETF from BetaShares has also found itself on struggle street recently. Unlike NDQ however, ASIA has been battling what is now quite an extended slump. This ETF last peaked back in February last year. Since its all-time high of $14.26 a unit, the fund is now asking just $9.30 on today’s closing pricing. That’s worth a drop of 35% or so.

The BetaShares Asia Technology Tigers ETF invests in a basket of tech-focused shares from… Asia. A large proportion of these shares hail from China’s markets, which have been in something of a malaise since early 2021. We can see this in ASIA’s top holdings. Two of its top five shares are Tencent Holdings Ltd and Alibaba Group Holding Group Ltd. Tencent’s Hong Kong stock is now around 40% off of its all-time high, whereas Alibaba has lost more than 50%. 

That probably largely explains the woes ASIA has suffered through over 2021 and more recently. Even though ASIA has given back some of its highs, this ETF has still given investors a 23.65% average annual return over the past 3 years (also as of 31 December). 

The post These 2 beaten-down growth ETFs could be a buy today appeared first on The Motley Fool Australia.

More reading

• An ASX XI to take on the world
• Here are the worst performing ASX ETFs of 2021
• Here are Scott Phillips’ top 5 ASX shares for 2022. Is it time to buy?
• 2 excellent ETFs for ASX investors to buy and hold
• 3 excellent ASX shares for growth investors in January

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen owns Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia owns and has recommended BETANASDAQ ETF UNITS and Tesla. The Motley Fool Australia has recommended Amazon, Apple, BetaShares Asia Technology Tigers ETF, and Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Key points

• The AGL share price has soared 18% in a week
• The ASX 200 energy Index is also outperforming
• AGL benefited from rising energy commodity prices and broker upgrades

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The AGL Energy Ltd (ASX: AGL) share price is rising this week despite no price sensitive news from the company.

Shares in the company were swapping hands at $7.47, up 2.75% today and 18% higher since last Friday. For perspective, the S&P/ASX 200 Index (ASX: XJO) is down nearly 1% in a week.

Let’s take a look at what might be impacting AGL Energy shares?

What’s happening at AGL Energy?

Despite falling nearly 40% in the past year, the AGL Energy price appears to have turned a corner lately and has been surging this past week. There are a few factors that might be at play, including broker upgrades and rising natural gas and coal prices.

The S&P/ASX 200 Energy Index (ASX: XEJ) is also performing well this week, up 4.21% to 8,585.90 points at the time of writing.

Thermal coal prices have been rising after Indonesia banned coal exports. The price of coal has increased by 23.5% since the start of the year and is now trading at US$209.50 per tonne.

Natural gas has also picked up this year, up 15% since the start of the year to be currently trading at US$4.2950 per MMBtu.

The team at Credit Suisse also promoted the energy company’s share outlook to an outperform rating from neutral this week.

Analysts at Credit Suisse gave the AGL share a price target of $8.50 per share. That’s 15% more than the current share price.

Meanwhile, an ASIC report Australian Securities and Investments Commission report released in late December revealed only 1.47% of the company’s shares are being shorted.

As My Foolish colleague Aaron noted, back in November 4.52% of its share was shorted.

AGL’s power generation focus includes thermal coal along with renewable sources such as hydro, wind, landfill gas and solar power.

Share price snapshot

The AGL share price is up 12% in the past 5 days and 25.76% in the past month.

Despite this, the share has performed nearly 49% below the benchmark ASX index in the past year.

The company commands a market capitalisation of about $4.6 billion based on the current share price.

The post Why has the AGL (ASX:AGL) Energy share price climbed 18% in a week? appeared first on The Motley Fool Australia.

More reading

• 3 reasons the AGL Energy (ASX:AGL) share price failed to illuminate in 2021
• Dividend beasts: 5 ASX 200 shares with the highest dividend yield
• Here are the top 10 ASX shares today
• Why AGL, Genetic Signatures, Liontown, and Novonix shares are charging higher
• Here’s why the AGL (ASX:AGL) share price is surging 8% today

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 Bruce Jackson.

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Key Points

• Macquarie have upgraded QBE to ‘outperform’ from ‘neutral’ in a recent note
• The broker likes QBE’s valuation and reckons it can see margin expansion in FY22
• Analysts estimate the insurer’s operating ratio to come in at 92%
• QBE closed the week less than 1% up at $12.06 but was in the red today.

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Shares in insurance giant QBE Insurance Group Ltd (ASX: QBE) inched lower today to finish less than 1% in the red at $12.05.

The insurance industry has been catching headlines these past few months amid a flurry of serious weather events and the ongoing impacts of COVID-19 lockdowns.

As such, price dispersion has been wide reaching for the QBE share price these past 3 months, with shares trading as high as $12.41 and as low as $11.29 in that time.

Near term, shares have climbed 6% since January, and analysts at Macquarie have subsequently upgraded their rating on the QBE share price to ‘outperform’ in a note to clients yesterday. Let’s take a look.

Why is QBE tipped to outperform?

Macquarie reckons that QBE is positioned to benefit from a healthy collection of tailwinds in the global insurance pricing cycle and rising bond yields.

Whilst the broker acknowledges that QBE won’t be immune to challenges in the reinsurance market – which it states is tightening and offering less return – the above macroeconomic factors should help decompress margins for the insurer into FY22, it says.

It upgraded the insurance giant to a ‘buy’, citing reasons of valuation in the weighting of its decision. For instance, the bank noted at the time that QBE was trading at a 12% weighted discount to its international peer group, below its 3-year normalised value of 8%.

Not only that, with recent strengths on the chart and ‘portfolio remediation’ measures in place, Macquarie reckons that disconnect could reduce, leading the QBE share price to outperform its peers in 2022.

“As underperforming portfolios continue to be remediated”, Macquarie says, in reference to the above, “QBE’s long-term discount versus peers should reduce, in our view”.

The broker upgraded its rating and raised the valuation by 11% to $13.90 per share in its note to clients.

Macquarie joins fellow broker Morgans who reckons that QBE is a buy right now as well. It says that QBE could carry positive underlying momentum this year, and expects the insurer to pay a 64.8 cents per share dividend in FY22.

Not only that, Morgans notes the company has been “putting through top-line rate increases of around 9%” which should, like Macquarie said, assist margin expansion this year.

The broker also points out QBE’s “relatively inexpensive valuation” of approximately 12.8x estimated FY22 P/E at the time of the release – 12.41x at the close on Friday.

It too sees potential upside in QBE and values the company at $13.70, representing a 14% margin of safety at the time of writing.

QBE share price snapshot

In the last 12 months, the QBE share price has climbed more than 38% after rallying 4% in the last month. This year to date it has fared well too and is 6% in the green.

Each of these returns has outpaced the benchmark S&P/ASX 200 Index (ASX: XJO)’s return in that last year.

The post Own QBE (ASX:QBE) shares? Macquarie just upgraded ‘outperform’. Here’s why. appeared first on The Motley Fool Australia.

More reading

• Top broker names 2 ASX 200 dividend shares to buy
• Here’s why the QBE (ASX:QBE) share price surged 30% in 2021
• Morgans names 2 ASX 200 shares to buy
• Why is the IAG (ASX:IAG) share price underperforming QBE in 2021?
• Where are QBE (ASX:QBE) shares headed in 2022?

The author has no positions 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 Bruce Jackson.

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Investors that are interested in boosting their income portfolio with some dividend shares might want to look at the ones listed below.

Here’s what you need to know about these top dividend shares:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

The first ASX dividend share to buy is ANZ. It could be a good option in the banking sector due to its strong position in commercial banking. This gives it some protection from the margins pressures in retail banking from aggressive competition for mortgages.

It is for this reason that Macquarie currently has an outperform rating and $30.00 price target on the bank’s shares. As for dividends, the broker is forecasting dividends per share of 145 cents in FY 2022 and 150 cents in FY 2023.

Based on the current ANZ share price of $28.39, this equates to fully franked yields of 5.1% and 5.3%, respectively, over the next two years.

Bapcor Ltd (ASX: BAP)

Bapcor could be an ASX dividend share to buy. Through brands including Autobarn, Burson Auto Parts and Midas, it is Australia’s leading provider of vehicle parts, accessories, equipment, service and solutions.

Its shares have come under significant pressure in recent weeks following the unceremonious exit of its CEO. While this is disappointing for shareholders, it could be a buying opportunity for non-shareholders.

That’s the view of the team at Credit Suisse. It recently retained its outperform rating with a trimmed price target of $7.90. The broker remains positive on Bapcor’s earnings and dividend outlook. In respect to the latter, the broker is forecasting fully franked dividends of 23 cents in FY 2022 and 24.6 cents in FY 2023.

Based on the current Bapcor share price of $6.92, this will mean yields of 3.3% and 3.6%, respectively.

The post 2 ASX shares with growing fully franked dividends appeared first on The Motley Fool Australia.

More reading

• ANZ (ASX:ANZ) will lag other majors on this key growth metric in 2022 says top broker
• Is Westpac (ASX:WBC) going to be the best big 4 bank for dividends in 2022?
• Could this impact the performance of ASX 200 banks more than interest rates in 2022?
• These were the top 5 ASX 200 bank shares in 2021
• Broker names 2 ASX dividend shares to buy in January

Motley Fool contributor James Mickleboro 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 recommended Bapcor. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Key points

• The New Hope share price sinks 3% to $2.28
• CEO calls it quits after spending time away from the top job
• The company has filled the position but is expected to conduct a search for a permanent replacement

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The New Hope Corporation Limited (ASX: NHC) share price has been in the red all day today. This comes after the coal miner revealed the unexpected resignation of its CEO.

At the close of trading, New Hope shares were changing hands at $2.28, down 2.98%.

New Hope CEO departs

In today’s statement to the ASX, New Hope advised that its CEO Reinhold Schmidt has tendered his resignation.

No reason was given as to why Mr Schmidt decided to leave following a short period of personal leave. His resignation is with immediate effect.

The company said chief financial officer Rob Bishop would assume the top job while a search was conducted for a replacement.

New Hope chair Robert Millner commented:

Mr Schmidt led the company during a challenging period for both the business and the industry, and delivered organisational changes that positioned the business to withstand the downturn in commodity prices experienced early FY21 and achieve outstanding returns as markets have improved…

The outlook for the company is positive and the board looks forward to working with Mr Bishop and the leadership team to successfully deliver the company’s purpose and strategy.

About the New Hope share price

The New Hope share price has had its ups and downs over the past 12 months, but has ended up clocking a gain of around 45%.

The company’s shares accelerated from June to mid-October, reaching a 52-week high of $2.70. Although, shortly after, its shares nosedived below the $1.90 mark and have since staged a small recovery.

New Hope has a market capitalisation of roughly $1.87 billion, with approximately 832.36 million shares on its registry.

The post New Hope (ASX:NHC) share price slides following CEO resignation appeared first on The Motley Fool Australia.

More reading

• Could ASX 200 coal shares be in for another boost?
• The 5 best ASX energy shares of 2021 unmasked

Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.

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Today, the S&P/ASX 200 Index (ASX: XJO) took a ride to the downside with a powerful blow to tech shares. At the end of the session, the benchmark index finished 1.08% lower at 7,393.9 points.

Concerns of interest rate hikes caused by high inflation put fear into the market overnight in the United States. Likewise, the Aussie share market has reacted negatively with another broad selldown. Although, unprofitable companies felt the pinch more than others today. On the bright side, the utilities sector managed to finish in the green.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, TELIX Pharmaceuticals Ltd (ASX: TLX) was the biggest gainer today. Shares in the clinical-stage biotechnology company rose 4.71% without any new announcements circulating. Find out more about TELIX Pharmaceuticals here.

The next biggest gaining ASX share today was Resmed Inc (ASX: RMD). The global healthcare equipment company posted a 3.57% gain despite there being a lack of new information hitting the market today. Uncover the latest Resmed details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
TELIX Pharmaceuticals Ltd (ASX: TLX)	$8.67	4.71%
Resmed Inc (ASX: RMD)	$34.79	3.57%
Ebos Group Ltd (ASX: EBO)	$38.00	3.04%
AGL Energy Ltd (ASX: AGL)	$7.47	2.75%
Alumina Ltd (ASX: AWC)	$2.05	2.50%
IGO Ltd (ASX: IGO)	$12.72	2.17%
Mineral Resources Ltd (ASX: MIN)	$65.62	2.12%
Virgin Money UK PLC (ASX: VUK)	$3.60	1.98%
Mirvac Group (ASX: MGR)	$2.83	1.80%
Worley Ltd (ASX: WOR)	$11.42	1.60%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• Why this expert sees an opportunity for ASX property shares in 2022
• Here are the 3 most heavily traded ASX 200 shares this Friday
• Why AnteoTech, BrainChip, City Chic, and ResMed shares are charging higher
• How did the VanEck Morningstar Wide Moat ETF (ASX:MOAT) more than double the ASX 200’s returns in 2021?
• ASX 200 (ASX:XJO) midday update: Qantas cuts capacity, Afterpay hits 52-week low

Motley Fool contributor Mitchell Lawler 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 recommended ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Key Points

• Investors overlooking ASX travel shares due to Omicron variant impact
• Morgan Stanley bullish on Qantas, saying its robust balance sheet will withstand challenges
• The consensus price target on Qantas is $6.02

Shares in airline operator Qantas Airways Limited (ASX: QAN) inched higher to close at $5 today, up 0.2% at the closing bell.

With international travel yet to normalise, investors are overlooking ASX travel shares like Qantas, especially given renewed economic pressure from the Omicron COVID-19 variant.

As such, the Qantas share price has struggled lately and is down considerably over the past 3 months. It has, however, held stable gains over the past year.

What’s the outlook for Qantas shares?

Despite the short-term noise, broker Morgan Stanley is bullish on the travel stock. It reckons Qantas investors could be in for a positive surprise come next earnings season.

Analysts at the firm note that Qantas’ third quarter tightening of capacity illustrates just how difficult it can be to manage an airline during this pandemic.

However, Morgan Stanley reckons investors should overlook the short-term noise. The broker is confident that “the balance sheet will withstand near-term challenges” and consequently sees “significant upside to earnings under ‘normal’ conditions”.

Morgan Stanley rates the airline a buy and values the company at $7 per share as of yesterday.

Meanwhile, the team at JP Morgan also rates Qantas a buy. They’ve assigned Qantas a $6.30 share price target. The firm remains comfortable on the “prognosis for a domestic aviation recovery” and sees capacity guidance of approximately 109% over 2H FY22 as achievable.

UBS also reckons that any potential threats are already priced into the Qantas share price at its current valuation. In an update last month, the Swiss broker valued Qantas at $6.20 per share and recommended that its clients buy in.

Based on a list of analysts covering Qantas provided by Bloomberg Intelligence, 84.6% rate it as a buy, with a consensus price target of $6.02.

Qantas share price snapshot

The Qantas share price is up 2.46% over the past 12 months to $5 today. Prior to the pandemic crash in February 2020, it was trading at $6.50.

The post Own Qantas (ASX:QAN) shares? Morgan Stanley sees ‘significant upside’ to earnings appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy today
• ASX 200 (ASX:XJO) midday update: Qantas cuts capacity, Afterpay hits 52-week low
• 5 things to watch on the ASX 200 on Friday
• Qantas (ASX:QAN) share price on watch after cutting capacity due to the Omicron outbreak
• Is it a buy in 2022? Leading brokers size up the Qantas (ASX:QAN) share price

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 Bruce Jackson.

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Key Points

• Pendal shares were thumped on Friday following the release of a funds under management update
• The fund manager recorded a $6.8 billion net outflow
• The Pendal share price is now down almost 50% over the last five years

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It was a day to forget for the Pendal Group Ltd (ASX: PDL) share price on Friday.

The fund manager’s shares were the worst performers on the S&P/ASX 200 Index (ASX: XJO) with a decline of 16% to $5.00.

Things were even worse during intraday trade, with the Pendal share price falling as much as 20% to a 52-week low of $4.73.

Why was the Pendal share price sold off?

Investors were selling down the Pendal share price on Friday following the release of its funds under management (FUM) update for the first quarter of FY 2022.

According to the release, Pendal’s funds under management (FUM) fell 2.5% to $135.7 billion during the quarter. This was despite the company recording a $3.8 billion boost to its FUM from a combination of investment performance, market movements, and distributions.

The $6.8 billion net outflow was driven largely by its European operations, which recorded a sizeable $5.5 billion outflow. This was driven by two notable redemptions from segregated mandates by UK institutional clients during the quarter.

It wasn’t just shareholders that were disappointed with this performance. The company’s CEO, Nick Good, acknowledged that the quarter was a disappointing one. Though, unlike the shareholders that sold today, he appears optimistic that things will improve.

Mr Good commented: “It has undoubtably been a disappointing quarter in terms of our flows. However, we are responding with a clear set of actions and have delivered strong performance fees in line with those recorded in the prior year.”

“Pendal continues to invest in distribution in key target markets, is working closely with fund managers to strengthen investment performance, and has launched new impact and thematic products that are quickly gaining traction and meeting the changing needs of clients. We remain committed to bringing investment excellence to our clients over the full market cycle,” he added.

The Pendal share price is now down by almost 50% over the last five years.

The post Pendal (ASX:PDL) share price ends disastrous day of trade down 16% appeared first on The Motley Fool Australia.

More reading

• Why Afterpay, BWX, Pendal, and Temple & Webster shares are sinking
• ASX 200 (ASX:XJO) midday update: Qantas cuts capacity, Afterpay hits 52-week low
• Here’s why the Pendal (ASX:PDL) share price is tumbling 6% lower today

Motley Fool contributor James Mickleboro 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 Bruce Jackson.

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Key points

• A high inflation print has weakened investor sentiment towards unprofitable shares
• An expert makes the case for why ASX property shares (AREITs) could be a good investment in 2022
• Several AREITs outperformed the benchmark index last year

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It has been a disappointing start to the year for the S&P/ASX 200 Index (ASX: XJO), being down 2.4% year-to-date. Concerns of persistent inflation have applied the brakes on many high-growth names. Instead, investors are turning towards cash generative businesses — some of which could be property shares on the ASX.

Pengana Capital Group fund manager, Amy Pham recently explained why this year could be another good one for Australian real estate investment trusts (AREITs). Despite the sector delivering a phenomenal year for shareholders last year, Pham thinks there are still reasons to back it again in 2022.

Making the case for ASX property shares

Although AREITs may not be as exciting as some of the other companies on the ASX, there could be a case to be made for the sector. However, it is worth knowing that the property sector covers a broad spectrum. This includes real estate across retail, logistics, offices, etc.

According to Pham, the macroeconomic environment for ASX property shares appear to be strong. For instance, REITs are holding healthy balance sheets (on average) and household savings are floating around all-time highs. These factors suggest there could be more room for these investments to run in 2022.

Though, there are risks present for investors to be mindful of. Currently, the Omicron variant is running rampant, which could create further supply chain issues. As central banks have been preaching, these supply-side disruptions are feeding into higher inflation.

On the topic of inflation and its potential effect on REITs, Pham says:

We are of the view that inflation is transitory and will subside as the pandemic is contained. With wage growth only approaching the 3% watermark, we don’t expect inflation to be at the high levels seen in the 1970s and early 1980s. To put things into perspective, interest rates are looking to rise but from a very low base.

Additionally, the fund manager believes ASX property shares can continue to deliver a sustainable income yield of 4%.

For Pham, the opportunities lie in REITs with positive free cash flow, good cash reserves, and solid management. Furthermore, the sector looks set for increased merger and acquisition activity in the eyes of Pham in 2022.

How it played out last year

If the property sector can deliver this year it would be a back-to-back winner. Last year, the sector outperformed the benchmark index. This was thanks to some impressive showings from a few ASX property shares.

As detailed in the chart above, National Storage REIT (ASX: NSR) and Goodman Group (ASX: GMG) provided substantial returns to their shareholders. Not too far behind was Centuria Capital Group (ASX: CNI) with a 34.6% gain in 2021.

Finally, REITs more exposed to the retail sector performed to a lesser extent. For example, Scentre Group (ASX: SCG) dished up a 16.9% return last year. However, this was still an outperformance of the broader market.

The post Why this expert sees an opportunity for ASX property shares in 2022 appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler 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 Bruce Jackson.

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