At the centre of it was a non-binding proposal from Challenger to acquire Pepper at $2.25 per share, an offer which was positioned as its "best and final" offer.

Whilst Pepper shares increased sharply when the offer was first announced, Pepper's independent board committee ultimately decided the deal wasn't executable and walked away.

So what actually happened here, and why did Pepper shares react so differently to Challenger shares?

Why Pepper shares fell

Pepper shares are falling because the Challenger takeover proposal was made at a premium to Pepper's share price before the takeover talks began, and with the deal now off, the market is repricing Pepper shares accordingly.

On 9 February, Challenger announced a non-binding proposal to acquire Pepper Money for $2.60 per share.

At the time, Pepper shares had closed the previous Friday at $1.76, meaning the proposal represented a significant premium for shareholders.

The market reacted immediately. Pepper's share price surged 28% to $2.26 as investors priced in the possibility of a deal at a much higher valuation. Challenger subsequently revised its offer to a lower price of $2.25 per share, citing changing market conditions, and Pepper shares fell then.

Following today's drop, Pepper shares are now trading around $1.60, but whilst the rejection may seem to be primarily about valuation, the language used by Pepper's board to explain the decision is interesting.

Pepper's independent board committee concluded that Challenger's proposal was "not reasonably capable of execution." That's corporate speak for too many risks and too much uncertainty.

It comes at a time when there is greater focus on private credit markets, but Pepper also said it is experiencing strong momentum in early 2026, with applications up 21% and originations up 34% year on year.

Why Challenger shares rose

Challenger's share price reaction tells a different story.

Rather than being punished for a failed deal, the stock moved higher, likely because investors were sceptical of the deal's merits from Challenger's perspective.

Acquisitions always carry risk, including integration challenges, execution complexity, and the possibility of overpaying.

By not proceeding, Challenger avoids those risks and instead continues with its $150 million share buyback plan, which is (from an investor's perspective) a cleaner, more predictable way to return capital to shareholders.

What this means for investors

For Pepper shareholders, the drop reflects the loss of takeover upside. The bid premium is gone, and the stock is resetting to fundamentals.

For Challenger investors, the takeaway is more positive, and they can look forward to more share buybacks.

The broader lesson?

M&A deals are never a done deal until they are actually done.

The post Challenger jumps 4%, Pepper Money sinks as takeover collapses appeared first on The Motley Fool Australia.

What did Challenger report?

• Challenger's joint non-binding proposal to acquire Pepper Money was discontinued after review by Pepper Money's Independent Board Committee.
• The company has secured all regulatory approvals to commence an on-market buy-back of up to $150 million in ordinary shares.
• No changes reported to Challenger's core business segments or operational strategy.
• Challenger remains Australia's largest provider of annuities and operates both Funds Management and APRA-regulated Life divisions.

What else do investors need to know?

Challenger's bid to acquire Pepper Money, in partnership with Pepper Group ANZ HoldCo Limited, will not go ahead. This follows the Independent Board Committee of Pepper Money finding the offer is not reasonably capable of execution.

In a separate development, Challenger has now obtained all necessary regulatory approvals to proceed with an on-market share buy-back of up to $150 million. This move may support shareholder returns and potentially bolster confidence in the Challenger share price.

What's next for Challenger?

With the Pepper Money proposal off the table, Challenger is shifting its attention back to core operations and capital management. The announced $150 million buy-back signals the company's commitment to prudent capital deployment and shareholder returns.

Investors will be watching for further updates on Challenger's funds management and annuities business, as well as any new growth opportunities or capital allocation decisions.

Challenger share price snapshot

Over the past 12 months, Challenger shares have risen 33%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Challenger share price: Pepper Money bid dropped, $150m buy-back greenlit appeared first on The Motley Fool Australia.

Four ASX shares that are acting as a drag on the market today are listed below. Here's why they are falling:

New Hope Corporation Ltd (ASX: NHC)

The New Hope share price is down 5.5% to $5.00. Investors have been selling this coal miner's shares following the release of its half-year results. New Hope posted a 20.1% decline in revenue to $814.4 million and an 84% decline in net profit after tax to $54.3 million. This was driven by a 20.4% decline in its average realised selling price, its exposure to increased prime overburden movement, and lower non-regular gains. In light of New Hope's falling profits, the company slashed its fully franked interim dividend to 10 cents per share (from 19 cents per share a year ago).

Pepper Money Ltd (ASX: PPM)

The Pepper Money share price is down 10% to $1.90. This follows an announcement from Challenger Ltd (ASX: CGF) relating to its takeover approach. The annuities company revealed that it has amended its takeover offer and reduced the offer price from $2.60 per share to $2.25 per share. This is less the final fully franked Pepper Money 2025 dividend of 7.8 cents per share and any special dividend. Challenger notes that the revised proposal represents its best and final offer, in the absence of a superior proposal. Pepper Money's independent board committee advised that it will consider the revised proposal.

Pro Medicus Ltd (ASX: PME)

The Pro Medicus share price is down 3% to $127.50. This is despite there being no news out of the health imaging technology company. However, it seems that AI disruption concerns are continuing to weigh heavily on the tech sector on Tuesday. This has seen the S&P/ASX All Technology Index underperform with a 1.3% decline this afternoon.

Reece Ltd (ASX: REH)

The Reece share price is down over 2.5% to $14.11. The catalyst for this has been the plumbing parts company's shares going ex-dividend today for its latest payout. Last month, Reece released its half-year results and declared a fully franked 5.4 cents per share dividend. This will be paid to eligible shareholders next month on 1 April.

The post Why New Hope, Pepper Money, Pro Medicus, and Reece shares are falling today appeared first on The Motley Fool Australia.

Pepper shares have dropped about 10% to $1.90 (at the time of writing) following the announcement, while Challenger shares have risen around 3%, reflecting investors' view of the changing economics of the deal.

The revised proposal comes just over a month after the original takeover approach sparked a strong rally in Pepper's share price.

What was the original takeover offer?

On 9 February, Challenger announced a non-binding proposal to acquire Pepper Money for $2.60 per share.

At the time, Pepper shares had closed the previous Friday at $1.76, meaning the proposal represented a significant premium for shareholders.

The market reacted immediately. Pepper's share price surged 28% to $2.26 as investors priced in the possibility of a deal at a much higher valuation.

However, Challenger has now revised its proposal.

The company announced it has submitted a new offer of $2.25 per share, inclusive of Pepper Money's final 2025 dividend of 7.8 cents per share and any potential special dividend.

The updated proposal represents roughly a 13% reduction from the original offer price and has been described as Challenger's best and final offer, unless a competing bidder emerges.

Why did Challenger lower its offer?

Challenger announced that the lower offer reflects "the deterioration in both market conditions and the operating environment".

The move comes as concerns about the state of private credit markets continue to rise. Pepper Money is a non-bank lender, and its industry can be particularly sensitive to changes in funding costs, credit markets, and the broader economic outlook.

If funding costs rise or credit conditions tighten, the profitability outlook for lenders can shift quickly. For an acquirer like Challenger, even modest changes in these factors can materially affect the price it is willing to pay.

What happens next?

Importantly, the proposal remains non-binding, meaning there is still no certainty that a transaction will proceed.

Pepper Money's Independent Board Committee will now consider the revised proposal and determine its next steps.

For now, the share price movements tell the story. Challenger shares rose on the news, while Pepper shares slid as investors reassessed the likelihood and value of the potential takeover.

The post Pepper Money shares plunge 10% after Challenger slashes takeover offer appeared first on The Motley Fool Australia.

What did Challenger report?

• Submitted a revised offer to acquire in joint venture with Pepper Group ANZ HoldCo Limited
• Revised offer price: $2.25 per Pepper Money share, down from $2.60 per share
• Offer price is reduced by the final fully franked Pepper Money 2025 dividend of 7.8 cents per share and any special dividend
• This offer is stated to be Challenger's best and final, unless a superior proposal emerges
• The proposal remains confidential, non-binding, and conditional

What else do investors need to know?

Challenger advises that discussions with Pepper Money and Pepper Group ANZ HoldCo Limited are ongoing but incomplete at this stage. There is currently no certainty that the revised offer will result in a transaction.

The company emphasises that it will continue to keep the market informed in line with its continuous disclosure obligations. The decision to reduce the offer reflects ongoing negotiation dynamics and feedback from previous proposals.

What's next for Challenger?

The market awaits further updates regarding Challenger's proposal, as management has signalled this is the final offer unless a superior bid appears. Investors should watch for Pepper Money's response and any changes in conditions.

Challenger continues to focus on its core strengths in investment management and annuities, while pursuing strategic opportunities that could enhance long-term value for shareholders.

Challenger share price snapshot

Over the past 12 months, Challenger shares have risen 42%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period.

View Original Announcement

The post Challenger revises Pepper Money bid to $2.25 in latest update appeared first on The Motley Fool Australia.

For you to be entitled to a stock's next dividend, you must own it before its ex-dividend date.

Here are some of the ASX shares going ex-dividend next week.

ASX shares with ex-dividend dates next week

The post 32 ASX shares about to go ex-dividend appeared first on The Motley Fool Australia.

Four ASX shares that are rising more than most today are listed below. Here's why they are storming higher:

Bravura Solutions Ltd (ASX: BVS)

The Bravura Solutions share price is up 27% to $2.28. This wealth management software provider's shares are jumping today after it upgraded its guidance for FY 2026. Bravura now expects revenue to be between $280 million and $285 million (previously $265 million and $275 million) and cash EBITDA to be between $69 million and $73 million (previously $55 million and $65 million). This reflects increased project engagement across customers and business units, which is expected to continue into the second half.

CAR Group Limited (ASX: CAR)

The CAR Group share price is up 8% to $26.51. Investors have been buying the auto listings company's shares following the release of its half-year results. CAR Group reported an 8% increase in revenue to $626 million, an 11% lift in EBITDA to $324 million, and a 16% jump in net profit after tax to $143 million. The company's managing director and CEO, William Elliott, said: "CAR Group has delivered a strong first half, achieving excellent financial results with double-digit growth across our key financial metrics. This is a great outcome and reflects the strength of the business model and the continued execution of our strategy."

Pepper Money Ltd (ASX: PPM)

The Pepper Money share price is up 27% to $2.23. This follows news that annuities company Challenger Ltd (ASX: CGF) is in advanced talks to jointly acquire Pepper Money with Pepper Group ANZ HoldCo. The proposal offers Pepper Money shareholders cash consideration equal to $2.60 per share, less any dividends. Management warned: "Discussions are ongoing, however there is no certainty that a more certain proposal will be forthcoming or that the Indicative Proposal will result in a definitive agreement."

Web Travel Group Ltd (ASX: WEB)

The Web Travel share price is up 18% to $3.49. Investors have been buying this travel technology company's shares on the cheap after they crashed deep into the red on Friday. It seems that some investors believe the market overreacted to news that Spanish authorities are auditing the company's operations in the country.

The post Why Bravura, CAR Group, Pepper Money, and Web Travel shares are storming higher appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Bougainville Copper Ltd (ASX: BOC)

The Bougainville Copper share price is down 3.5% to 79 cents. Investors have been selling this copper stock after it announced the termination of a strategic partnering process with the president of the Autonomous Bougainville Government. This is in relation to the selection of an international mining partner for the redevelopment of the Panguna Mine.

Brainchip Holdings Ltd (ASX: BRN)

The Brainchip share price is down a further 3.5% to 13.5 cents. This semiconductor company's shares have come under significant pressure since the release of another disappointing quarterly update. Brainchip reported cash receipts of just US$0.4 million for the three months ended 31 December, despite entering the commercialisation stage a few years ago. Investors appear to be doubting whether Brainchip realistically has any chance of ever competing with chip developers that spend billions on research and development each year.

Challenger Ltd (ASX: CGF)

The Challenger share price is down 3.5% to $8.60. This follows news that the annuities company is in advanced talks to jointly acquire Pepper Money Ltd (ASX: PPM) with Pepper Group ANZ HoldCo. Challenger believes the potential acquisition would provide long-term access to fixed income assets and support its strategic growth plans. If completed, Challenger would hold no more than 25% of total Pepper Money shares. It seems that the market isn't overly keen on the deal.

HMC Capital Ltd (ASX: HMC)

The HMC Capital share price is down almost 5% to $3.73. This morning, Morgan Stanley retained its equal-weight rating and $3.85 price target on the investment company's shares. Its analysts think that HMC Capital's shares are fair valued at current levels. Though, it is worth noting that other brokers see more value in the company's shares. For example, last month Morgans put a buy rating and $6.60 price target on its shares. Based on its current share price, this implies potential upside of approximately 75% for investors over the next 12 months. Time will tell which broker has made the right call on this one.

The post Why Bougainville Copper, Brainchip, Challenger, and HMC Capital shares are falling today appeared first on The Motley Fool Australia.

At the time of writing, Pepper shares were up 25% to $2.20 but still short of the $2.60 offer price.

The deal could see the non-bank lender taken private in a partnership between its current major shareholders and Challenger Ltd (ASX: CGF), the proposed minority partner in the deal.

At the time of writing, Challenger shares are down 3% as investors digest the implications of the deal.

That divergence between the Pepper Money and Challenger share price reactions is typical of takeover situations in which the acquirer pays a premium to make the deal attractive to shareholders of the acquired company.

What is being proposed?

Following media speculation, Pepper Money confirmed it has received a confidential, non-binding proposal to acquire 100% of the company via a scheme of arrangement, jointly backed by Challenger and Pepper Group, Pepper Money's existing cornerstone shareholder.

Pepper Group itself is a consortium of investors led by US private equity and private credit giant KKR.

Under the proposal:

• Pepper shareholders (excluding Pepper Group) would receive $2.60 per share in cash, less the FY25 final dividend and any special dividends
• Pepper Group would roll its existing stake into the new private vehicle
• Challenger's ownership would be capped at 25%, with Pepper Group retaining majority control

Pepper Money's board has formed an Independent Board Committee, which has granted Challenger exclusivity to conduct due diligence and negotiate the transaction.

There's no certainty that the deal will be completed, which is why the market has not yet fully priced in the $2.60 offer price for Pepper Money shares.

Why Pepper shareholders are cheering

For Pepper shareholders, the logic is simple.

A $2.60 cash offer represents a meaningful premium to where the stock had been trading prior to the speculation. Pepper Money shares had slipped 30% from their recent November 2025 peak, and so a clean cash exit at a premium is compelling.

A counterargument is that some Pepper Money shareholders could see the deal's timing and the offer price as somewhat opportunistic, because compared with Pepper's November 2025 share price of $2.49, the offer is only a 4.4% premium.

There could be more to this before this deal is fully approved and finalised.

Why Challenger investors are more cautious

Challenger's management framed the potential transaction as strategic and EPS-accretive, but investors are typically cautious of sizeable acquisitions made at a premium.

Challenger's rationale is, however, quite clear: Pepper Money provides long-duration, higher-yielding fixed income assets, which neatly support Challenger's retirement and annuities business. Strategically, the fit makes sense.

But as always, the execution and implementation are what count most, and Challenger investors are taking a wait-and-see approach.

Foolish bottom line

Pepper Money's share price surge and Challenger's pullback aren't contradictory; they're exactly what you'd expect.

Takeover targets usually win immediately. Acquirers have to earn it over time.

If this deal completes, Pepper shareholders likely lock in value today, while Challenger investors are being asked to trust that patient, strategic capital deployment will pay off tomorrow. The market's verdict so far? One cheers certainty. The other waits for proof.

The post Pepper Money shares pop 25%, Challenger slips 3% on take-private deal appeared first on The Motley Fool Australia.

What did Challenger report?

• Challenger confirmed discussions to potentially acquire up to 25% of Pepper Money Limited shares via a scheme of arrangement.
• No intention to raise common equity for the transaction; Challenger cites significant capital flexibility.
• The proposed deal is intended to be accretive to Challenger's earnings per share if completed.
• Discussions remain incomplete, with no certainty that the transaction will proceed.

What else do investors need to know?

Challenger believes a stake in Pepper Money would give it valuable, ongoing access to fixed income assets. This aligns with Challenger's strategy of supporting growth and generating strong returns for shareholders.

The company stresses its disciplined approach to capital allocation, reiterating there are no plans for a capital raising to fund the deal. Challenger's management notes the offer remains subject to ongoing negotiations and market disclosure obligations.

What's next for Challenger?

Looking ahead, Challenger says it will continue to update the market as talks with Pepper Group and Pepper Money progress. Any agreement reached is likely to be structured so that Challenger holds up to a 25% stake, supporting its earnings and growth strategy, without diluting shareholders.

Long term, Challenger sees strategic investments like this as a way to boost client offerings and enhance returns, but the company remains committed to a careful, measured approach.

Challenger share price snapshot

Over the past 12 months, Challenger shares have risen 46%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.

View Original Announcement

The post Challenger flags talks on Pepper Money acquisition appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

Domino's Pizza Enterprises Ltd (ASX: DMP)

The Domino's Pizza share price is up 3.5% to $19.02. This pizza chain operator's shares have been storming higher in recent sessions amid takeover speculation. There were reports that Bain Capital had tabled an offer that values the company at $4 billion. And while Domino's advised that it hadn't received an approach, some investors appear to believe there's no smoke without fire.

DroneShield Ltd (ASX: DRO)

The DroneShield share price is up 5% to $4.03. On Monday, this counter drone technology company announced another contract win. DroneShield revealed that it received a $25.3 million contract from a privately owned in-country reseller that is contractually required to distribute the products to a Government defence end customer in a Latin American (LATAM) country. In response to the news, this morning Bell Potter reiterated its buy rating and $5.30 price target on its shares. It said: "We expect 2026 will be an inflection point for the global counter-drone industry with countries poised to unleash a wave of spending on soft-kill detect and defeat solutions. Consequently, we believe DRO should see material contracts flowing from its $2,550m potential sales pipeline over the next 3-6 months as defence budgets roll over to FY26."

Imricor Medical Systems Inc (ASX: IMR)

The Imricor Medical Systems share price is up 11% to $1.52. This morning, this medical device company announced the successful completion of the first ischemic ventricular tachycardia (VT) ablation ever performed under real-time MRI guidance in an iCMR lab. The company stated: " This milestone marks a critical step forward for Imricor's VISABL-VT clinical trial, and a watershed moment for the field of MRI-guided electrophysiology."

Pepper Money Ltd (ASX: PPM)

The Pepper Money share price is up a further 6.5% to $2.54. Investors have been buying this non-bank lender's shares this week after it signed an agreement to acquire the RAMS portfolio from Westpac Banking Corp (ASX: WBC). The portfolio comprises approximately $21.4 billion in residential mortgages. Management highlights that the "transaction aligns with Pepper Money's strategy to grow its capital-light servicing business, which provides annuity-style earnings, operational scale and diversification benefits."

The post Why Domino's, DroneShield, Imricor, and Pepper Money shares are storming higher today appeared first on The Motley Fool Australia.

Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed up 2.8% at $38.92 each yesterday following the release of the Westpac's FY 2025 results. In morning trade on Tuesday, shares are changing hands for $40.03 apiece, up 0.5%.

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

Taking a step back, Westpac shares have gained 23.5% over the past 12 months, significantly outpacing the 8.8% one-year gains delivered by the benchmark index.

And that's not including the $1.53 in fully franked dividends Westpac paid out (or declared) over this time. At the current share price, this sees Westpac stock trading on a fully franked dividend yield (partly trailing, partly pending) of 3.8%.

If you're looking to bag that final FY 2025 dividend payout of 77 cents per share, by the way, you'll need to own the ASX 200 bank stock at market close tomorrow, 5 November. Shares trade ex-dividend on Thursday. You can then expect to see that passive income payout hit your account on 19 December.

That is, of course, if you own or decide to buy Westpac shares.

Which brings us back to our headline question.

Are Westpac shares a buy following the full year results?

Highlights for the 12 months to 30 September included a 3% year on year lift in net interest income to $19.47 billion.

However, with operating expenses higher and slight erosion in the bank's net interest margin, Westpac's full year net profit after tax slipped 1% to $6.99 billion.

Potentially offering a boost to Westpac shares on Monday, the bank also announced that it had entered into an agreement to sell its $21.4 billion RAMS mortgage business to a consortium. The buyers group includes Pepper Money Ltd  (ASX: PPM), KKR, and PIMCO.

Commenting on the RAMS divestment, Macquarie Group Ltd (ASX: MQG) said:

WBC have confirmed the sale of the RAMS portfolio to Pepper Money, which is expected to be completed by 2H26. The portfolio is currently $21.4bn (~3% of WBC's entire book). This is expected to release 20bps of capital. By the time of the sale, as the book is running off, WBC noted it will see very little drop-off in earnings as the revenues are largely offset by expenses.

While the broker noted Westpac's strong capital position and improving credit quality as positives, Macquarie kept an underperform rating on Westpac shares.

On the negative side of the ledger for FY 2026, Macquarie cited a weaker outlook for net interest margins, elevated expense guidance, and flat business earnings.

Connecting the dots, the broker concluded:

WBC remains expensive, trading at ~20x FY26E P/E (a ~25% premium to ANZ and ~4 standard deviations above its historical P/E rel). With execution risks around the UNITE program and emerging headwinds from lower rates, we continue to see risk to WBC's elevated multiple.

Macquarie raised its price target for Westpac shares to $32.00, up from the prior $31.50. That's more than 22% below current levels.

The post Are Westpac shares a buy following the bank's $7 billion FY25 profit result? Here's Macquarie's recommendation appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

AMA Group Ltd (ASX: AMA)

The AMA Group share price is up 9% to 10 cents. This may have been driven by a broker note out of Bell Potter this morning. According to the note, its analysts have put a buy rating and 13 cents price target on the smash repair company's shares. It said: "We do not expect any further outlook commentary at the AGM on Monday but do see the share consolidation as a positive. We now look to the Q2 update in late January for an update on volumes."

DroneShield Ltd (ASX: DRO)

The DroneShield share price is up 1.5% to $3.89. Investors have been buying this counter drone technology company's shares following the announcement of another contract win. DroneShield revealed that it has received a $25.3 million contract from a privately owned in-country reseller that is contractually required to distribute the products to a Government defence end customer in a Latin American (LATAM) country. DroneShield's CEO, Oleg Vornik, said: "With this new contract, DroneShield continues to position itself as one of the preferred C-UAS systems in Latin America. As demand continues to evolve, DroneShield is ready to meet the requirements from a region where drones play a key role in the modern warfare."

Pepper Money Ltd (ASX: PPM)

The Pepper Money share price is up 7% to $2.39. The catalyst for this is news that the company has signed an agreement to acquire the RAMS portfolio from Westpac Banking Corp (ASX: WBC) alongside the KKR Consortium. The portfolio comprises approximately $21.4 billion in residential mortgages. Management notes that the "transaction aligns with Pepper Money's strategy to grow its capital-light servicing business, which provides annuity-style earnings, operational scale and diversification benefits."

Westpac Banking Corp

The Westpac share price is up 2.5% to $39.73. This follows the release of the banking giant's full year results this morning. For the 12 months ended 30 September, Westpac reported a 3% increase in net interest income to $19.473 billion but a 1% decline in net profit after tax to $6.989 billion. The latter was a touch ahead of the consensus estimate. Westpac's CEO, Anthony Miller, said: "This has been a solid year at Westpac and I'm pleased with the result we are delivering today. With a very strong balance sheet and momentum in our target segments, the opportunity to deliver more for our customers, people and shareholders is exciting. We're focused on relentless execution of our strategy and delivering every day for our customers."

The post Why AMA, DroneShield, Pepper Money, and Westpac shares are pushing higher today appeared first on The Motley Fool Australia.

With the August reporting season done and dusted, scores of companies have ex-dividend dates next week.

If you're keen to buy any of these ASX shares while they are still trading cum dividend, time is running out!

To receive a stock's next dividend, you must buy or already own it before the ex-dividend day.

We provide a sample of the ASX shares going ex-dividend next week below.

35 ASX shares about to go ex-dividend

The post 35 ASX shares with ex-dividend dates next week appeared first on The Motley Fool Australia.

This amounts to about 15.3% of all Australian superannuation funds.

The number of self-managed funds noticeably declined in FY23 after five consecutive years of more than 540,000 SMSFs in operation.

In FY23, we saw a net decrease of 26,759 self-managed superannuation funds, or almost 5%.

ASX shares are a popular investment among SMSF investors.

More than 220,000 SMSFs — or 43% of those in operation — reported franked dividend income in FY23, down 4.8% on FY22.

More than 164,000 SMSFs — or 32% — reported unfranked dividend income from shares, down 4.5% on the previous year.

About 141,000 SMSFs — or just over one in four — reported rental income from an investment property, down 7% on FY22.

In terms of income, about 155,000 SMSFs reported a loss or no taxable income in FY23.

That was the most common scenario for SMSFs, suggesting aggressive growth investment strategies (or poor management!).

Aggressive growth strategies tend to return little to no income as the investor pursues long-term capital growth over annual yield.

The second biggest taxable income category was $10,000 to $49,999 per annum, with 150,000 SMSFs falling into this bracket.

Just over 1,400 SMSFs reported a taxable income of $1 million or more in FY23.

Which ASX shares are popular with SMSFs?

Today, ASX shares and international shares remain a popular investment vehicle for SMSF investors.

Data from wholesale trading platform provider AUSIEX provides some insight into which ASX shares SMSFs are currently favouring.

The data pertains to high-net-worth individuals (HNWIs) with more than $3 million in assets in their superannuation funds.

HNWI is a globally recognised term that refers to people who have investable assets worth US$1 million or more.

AUSIEX has split the data between retail and advised clients.

Advised clients have sought professional advice to make investment decisions, and may also have their SMSFs monitored by experts.

This data split provides extra insight into how professional advice may be influencing SMSFs' decision-making on which ASX shares to buy.

Most popular ASX shares among SMSF investors

These were the top 10 ASX shares purchased by SMSF investors with more than $3 million in their funds last month.

Retail HNWI SMSF accounts above $3M

Source: AUSIEX

Advised HNWI SMSF accounts above $3M

Source: AUSIEX

The post 10 most popular ASX shares being bought by self-managed superannuation investors in FY26 appeared first on The Motley Fool Australia.

It means tracking and imitating the investment moves of people thought to have superior market insight or information.

This might include institutional investors like pension funds, professional traders, company insiders, and investment managers.

They also include high-net-worth individuals (HNWIs), generally defined as having investable assets worth US$1 million or more.

Experienced and skilled investors, HNWIs can afford professional advice and often have access to better research on ASX shares.

So, it can be interesting to see what HNWIs are investing in, as it may provide clues to good opportunities in the market.

Here, we look at the 10 most bought ASX shares in July by HNWI investors with self-managed superannuation funds (SMSFs) above $3 million.

The data, provided by leading wholesale trading platform provider AUSIEX, is split into retail and advised SMSF investors.

This provides further insight into how professional investment advice has influenced HNWIs' decisions on which ASX shares to buy.

Top 10 ASX shares bought in July

Retail HNWI SMSF accounts above $3M

Source: AUSIEX

Advised HNWI SMSF accounts above $3M

Source: AUSIEX

Which shares are HNWIs selling?

AUSIEX has also provided some examples of the most commonly sold ASX shares among HNWIs with SMSFs above $3 million.

In July, the ASX shares that retail HNWI SMSF investors sold most were Australia and New Zealand Banking Group Ltd (ASX: ANZ), Westpac Banking Corporation (ASX: WBC), Acorn Capital Investment Fund Ltd (ASX: ACQ), Unibail-Rodamco-Westfield CDI (ASX: URW), National Australia Bank Ltd (ASX: NAB), Wesfarmers Ltd (ASX: WES), Macquarie Group Ltd (ASX: MQG), Paladin Energy Ltd (ASX: PDN), and Telstra Group Ltd (ASX: TLS).

Advised SMSF investors sold Commonwealth Bank of Australia Ltd (ASX: CBA), ResMed Inc (ASX: RMD), Westpac Banking Corporation (ASX: WBC), Future Generation Australia Ltd (ASX: FGX), Telstra Group Ltd (ASX: TLS), Scentre Group (ASX: SCG), Wesfarmers Ltd (ASX: WES), and Australian Strategic Materials Ltd (ASX: ASM).

The post Which ASX shares are wealthy investors buying in FY26? appeared first on The Motley Fool Australia.

Following their dominant performance over the past 2 years, the consensus view is that they have become fully valued or overvalued. 

The most extreme example is Commonwealth Bank of Australia (ASX: CBA).

A 21 July Australian Financial Review article revealed that Hedge Fund Sage Capital had recently doubled down on its short position in CBA shares. This comes despite the ASX 200 bank's dramatic surge over the past few months hindering the fund's returns. 

In his latest note to investors, Sage Capital portfolio manager Sean Fenton told investors that he was sticking with his position on CBA, noting that the bank had become the most expensive banking stock in the world. 

While CBA shares have declined around 8% from their June peak of $192, many experts believe they have further to fall. 

Broker Macquarie has a price target of $105 on CBA shares. Its price targets for the other three big 4 banks are also below current share prices. 

So, investors appear to be left with no attractive options in the big 4 banking space.

An alternative: non-bank lenders

Those looking for exposure to the financial services sector may wish to consider non-bank lenders. 

According to a 15 July report, Australian Non-bank Lenders by Macquarie Group, rate cuts and funding costs continue to support the non-bank sector. 

Macquarie said data had revealed that non-banks (as a whole) have increased their market share of new mortgage flows. The broker also expects conditions to continue to improve for non-bank lenders.

With market pricing in further rate cuts, mortgage competition may ease from the banks as deposit profitability becomes impacted, giving non-bank lenders room to compete and grow volumes or expand margin.

However, the broker also acknowledged that the competition dynamics had changed:

As our Lendi Mortgage Pricing Index shows, bank mortgage spreads are largely unchanged in the past 18 months. However, competition has moved from banks to non-banks. Discussions with management and brokers suggest some non-bank lenders are taking advantage of the improved funding environment and competing aggressively on mortgages. In addition, there are newer entrants into the market as well who focus on prime mortgages given easier credit decisioning. We expect the growth-oriented strategies of non-banks to put some pressure on margins and/or volumes.

Therefore, while investment opportunities exist within the non-bank sector, investors must be selective. 

Investors should keep this in mind when considering alternatives to the big 4 banks.

Where does the broker see value?

In its research note, Macquarie also named two non-bank lenders it expected to outperform and two on which it held a neutral view. 

The broker said non-banks had performed very strongly in 2025, rallying ~10-45%. 

At the beginning of 2025, Macquarie preferred Liberty Financial Group Ltd (ASX: LFG) and Pepper Money Ltd (ASX: PPM) due to tailwinds and on valuation grounds. 

However, after rallying 34% for the year to date, Macquarie has downgraded Pepper Money from outperform to neutral with a price target of $1.77. 

The broker has retained an outperform rating on Liberty Financial Group and price target of $4.30.

The broker also has an outperform rating on Australian Finance Group Ltd (ASX: AFG) and a price target of $2.20. Meanwhile, Resmiac Group Ltd (ASX: RMC) has been assigned a neutral rating and a price target of $0.95.

The post Are non-bank lenders a lucrative alternative to the big 4 banks? appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Imricor Medical Systems Inc (ASX: IMR)

The Imricor Medical Systems share price is down over 2% to $1.17. Investors have been selling this medical technology company's shares this month after it revealed that the US approval process for its 3D MRI mapping system, NorthStar, has been delayed. Morgans remains upbeat, though. It said: "The share price has dropped 20% this morning, which we see as a complete overreaction. Therefore, a great buying opportunity has emerged. There are plenty of catalysts coming over the next few quarters which will drive the share price higher including the expected approval of the NorthStar mapping system. We have made no changes to our forecasts or valuation. We maintain a speculative buy recommendation on IMR."

Imugene Ltd (ASX: IMU)

The Imugene share price is down almost 12% to 37.5 cents. This follows news that the clinical stage immuno-oncology company has received firm commitments from institutional and sophisticated investors for a $22.5 million placement. These funds are being raised through the issue of 68.2 million shares at a 22% discount of 33 cents per new share. The company advised that the proceeds of the capital raising will primarily be used to fund the azer-cel program through to initiating a pivotal clinical trial in 2026. Post completion, Imugene will have a pro-forma cash balance of $64 million. With anticipated R&D rebates and other cost saving initiatives, it expects to have funding into second half of 2026. In addition, the potential exercise of attaching options provides for up to a further $36.6 million of near-term funding.

Newmont Corporation (ASX: NEM)

The Newmont Corporation share price is down 5% to $88.27. Investors have been selling gold miners today after the gold price pulled back overnight. This has seen the S&P/ASX All Ordinaries Gold index weigh heavily on the market today with a 2.5% decline. Despite today's weakness, Newmont Corporation shares are up approximately 46% year to date.

Pepper Money Ltd (ASX: PPM)

The Pepper Money share price is down 3.5% to $1.86. This has been driven by the release of a broker note out of the Macquarie equities desk this morning. According to the note, the broker has downgraded this non-bank lender's shares to a neutral rating with an improved price target of $1.70. While the broker believes that the current environment is favourable for non-bank lenders like Pepper Money, it thinks that this is now firmly priced into its share price.

The post Why Imricor, Imugene, Newmont, and Pepper Money shares are falling today appeared first on The Motley Fool Australia.

Four ASX shares that are rising more than most today are listed below. Here's why they are climbing:

DroneShield Ltd (ASX: DRO)

The DroneShield share price is up over 8% to $1.39. This may have been driven by news that the UK government is planning to spend GBP2 billion (A$4.18 billion) on drone technology to boost its military capabilities. It is just one of a number of governments that plan to invest heavily in the technology. This bodes well for DroneShield's sales pipeline.

Judo Capital Holdings Ltd (ASX: JDO)

The Judo Capital share price is up 4% to $1.43. Investors have been buying this small business lender's shares following the release of its investor day update. At the event, the company provided an update on its guidance for FY 2025. Judo Capital's CEO, Chris Bayliss, said: "In addition to the strategy update, Judo confirmed it remains on track to achieve its FY25 guidance, as provided in its trading update on 1 May 2025."

Pepper Money Ltd (ASX: PPM)

The Pepper Money share price is up 10% to $1.82. This follows news that the non-bank lender is planning to reward its shareholders with a special dividend worth approximately $55.5 million in total. According to the release, the Pepper Money board has determined to pay a fully franked special dividend of 12.5 cents per share. It notes that this is part of its ongoing capital management strategy and reflects its strong unrestricted cash position. Pepper Money's shares will go ex-dividend for this on 10 June. After which, the company plans to pay it to shareholders next month on 16 July.

Strickland Metals Ltd (ASX: STK)

The Strickland Metals share price is up 7% to 15 cents. This morning, this gold and base metal developer released significant new assay results from ongoing diamond drilling at the Gradina Prospect. It is part of its 100%-owned ~7.4Moz AuEq Rogozna Gold and Base Metals Project in Serbia. Strickland's Managing Director, Paul L'Herpiniere, commented: "The results from hole ZRSD25182 are exceptional, revealing some of the highest gold grades seen at the Gradina system to date and over substantial widths. They further support our belief that Gradina will make a considerable contribution of high-grade ounces to the Rogozna resource inventory by late-2025."

The post Why DroneShield, Judo, Pepper Money, and Strickland shares are surging today appeared first on The Motley Fool Australia.

On 14 May, Macquarie reported its Top 10 grossed-up dividend stocks for the upcoming financial year. That is, the estimated grossed-up yield investors will receive for the next financial year if they buy the stock today (including franking credits).

Based on Macquarie's analysis, several stocks offer grossed-up yields above 10%. With a mix of small caps and large caps, there is something for everyone. 

So, what are they?

McMillan Shakespeare Ltd (ASX: MMS)

McMillan Shakespeare provides salary packaging, novated leasing, disability plan management, support coordination, asset management, and complementary financial services in Australia and New Zealand. With a market capitalisation of $1.13 billion, it is outside the S&P/ASX 200 Index (ASX: XJO) and may go under investors' radar. However, according to Macquarie, investors who buy it today will receive a forward dividend yield of 8.79%. This amounts to a grossed-up yield of 12.55%, which is compelling for those after passive income.

Coronado Global Resources Inc (ASX: CRN)

Coronado Global Resources produces, markets, and exports metallurgical coal internationally. It owns 100% interest in the Curragh mining property in the Bowen Basin of Queensland. With a market capitalisation of $347 million, it is a small-capitalisation company. According to Macquarie, those who buy Coronado Global Resources today will gain a forward yield of 8.20%, which amounts to a grossed-up yield of 11.71%.

Fortescue Metals Group (ASX: FMG)

Fortescue engages in the exploration, development, production, processing, and sale of iron ore internationally and in exploring for other minerals. It is an ASX 200 stock with a market capitalisation of $51.8 billion, so it is well known amongst ASX investors. However, sometimes the best opportunities are hidden in plain sight. Macquarie projects its forward yield to be 8.05%, amounting to a grossed-up yield of 11.5%. Those wanting to bank this dividend in the coming financial year might consider buying Fortescue today.

Resimac Group Ltd (ASX: RMC)

Resimac Group provides residential mortgage and asset finance lending products in Australia and New Zealand. With a market capitalisation of $344 million, it is another small-cap stock. Macquarie projects its forward dividend yield to be 7.91%, which is 11.3% grossed up. It could be another good option for passive income-focused investors who prefer small caps.

New Hope Corporation Ltd (ASX: NHC)

New Hope is an Australian thermal coal-mining company. Its operations include New Acland Mine, Bengalla Mine, and Queensland Bulk Handling. With a market capitalisation of $3.2 billion, it sits in the ASX 200. Macquarie is forecasting a forward dividend yield of 7.65% (10.93% grossed up) for those who buy it today. 

Pepper Money Ltd (ASX: PPM)

Pepper Money is a non-bank lender. It operates in the mortgage and asset finance markets in Australia and New Zealand. With a market capitalisation of $734 million, it is at the smaller end of the town on the ASX. It's also only been listed since 2021. However, for investors who buy it at today's price, Macquarie projects a dividend yield of 7.12% (10.17% grossed up).

Foolish Takeaway

Investors seeking passive income are in luck – Macquarie recently listed 6 ASX stocks that, if purchased today, they expect to deliver above 10% yields next financial year. However, their analysis does not consider total return, that is, the likelihood of capital growth. Passive income-oriented investors who also wish to preserve capital should use this list as a starting point before digging into further analysis.

The post Turbocharge passive income: Macquarie lists 6 ASX stocks with grossed-up dividend yields above 10% appeared first on The Motley Fool Australia.