ASX

From shorting banks to going long on software and putting cash on the throne, fund managers give their thoughts on near term opportunities with reporting season in the rear view mirror.

A global study has shown that the problems faced by the Big4 are universal; incumbent banks may have the data, products, infrastructure and capital, but it doesn’t guarantee customer primacy.

Thing are looking up for retailers, and especially groceries providers, as higher prices drive profits. But the roads won’t be paved with gold to Woolies and Coles forever.

A dramatic reporting season saw over 40 per cent of companies surprise to the upside, less than 30 per cent disappoint and a third fall in line with expectations.

Higher interest rates, a slowing property market and the promise of loan defaults is curbing the enthusiasm of analysts on future bank earnings.

While the environment will likely get more difficult, low-cost operators like BHP are well positioned.

An action-packed month of record dividends, soaring energy prices and rising inflation are all expected to be key trends this earnings season.

In the latest quarterly data for FY22, both Perpetual and Pendal Group recorded fund outflows of $4.0 billion, Magellan lost $5.2 billion and US$11.9 billion exited Janus Henderson. GQG Partners was the one shining light, recording inflows of US$2.8 billion.

For Australian investors, the value of fully franked dividends will play a bigger part in client portfolios as dividend payments return to pre-pandemic levels. But that all depends on whether Australia has a soft or hard landing.

Robotics of the future will make life easier for humanity, creating more room for optimism than despair.

Australia and New Zealand Banking Group will become the third largest domestic home lender after acquiring the banking division of competitor Suncorp Group Ltd for $4.9 billion.

Leading global private investments firm Northleaf Capital Partners has made a tilt into the lucrative mobile tower infrastructure sector. Northleaf purchased a 40 percent stake in Aotearoa Towers Limited, a mobile tower infrastructure business, from Vodafone New Zealand Limited.