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Why these ASX blue-chip shares are top buys for this fund manager

Here are two of the most appealing ASX blue-chip shares.

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Tristan Harrison
Tristan Harrison is one of the longest-serving writers at The Motley Fool Australia. Tristan has been contributing ASX news and stock analysis articles since 2016. His aim is to help Australians learn about great ASX shares, with a focus on ASX dividend shares and undervalued ASX growth shares. He holds an advanced diploma from the Association of Accounting Technicians and is enrolled in the Chartered Institute Management Accountant (CIMA) qualification program.
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Some of the best businesses on the ASX are the largest ones because of their ability to deliver strong profits, thanks to their market positions. In this article, we're going to look at two ASX blue-chip shares that a fund manager is optimistic about.

The funds management team that has shared their opinion on two important S&P/ASX 200 Index (ASX: XJO) shares is Wilson Asset Management, the group behind listed investment company (LIC) WAM Leaders Ltd (ASX: WLE).

Let's take a look at two ASX blue-chip shares that are in the WAM Leaders portfolio.

Blue chips with stock written on them.

Image source: Getty Images

Telstra Group Ltd (ASX: TLS)

Telstra is Australia's largest telecommunications business.

WAM pointed out that Telstra held an investor day in May, where it revealed its new 'Connected Future' strategy, which is in place until 2030. According to WAM, this was evidence that the recent Telstra share price strength has been justified.

The investment team are attracted to how the company is delivering continued growth in dividends, an ongoing share buyback, and solid earnings growth, which is "laying the foundation for further returns."

The fund manager pointed out that, in Telstra's own words, they have built their 'operating muscle' in recent years and are now looking to the future as a leader in connectivity and digital infrastructure.

WAM revealed that Telstra is a core holding in the WAM Leaders portfolio.

WiseTech Global Ltd (ASX: WTC)

The other ASX blue-chip share that WAM highlighted was the logistics software giant, WiseTech.

WAM noted that the WiseTech Global share price had a strong performance in May.

At the start of last month, it seemed to WAM that the ASX tech share was being pursued by investors as an oversold quality growth exposure, with some correlation to US technology.

Later in the month, WiseTech Global announced the acquisition of e2open, which is a cloud-based supply chain software company.

WAM says bolt-on acquisitions are core to WiseTech Global's strategy, and this is the biggest acquisition yet, with a purchase price of US$2.1 billion.

The fund manager said:

We are supportive of the deal, given both the strategic rationale and that it is financially accretive. WiseTech Global remains our top pick in the technology sector.

That's a pleasing vote of confidence for the ASX blue-chip share, in my opinion.

Motley Fool contributor Tristan Harrison 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 WiseTech Global. The Motley Fool Australia has positions in and has recommended Telstra Group and WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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