Australian investors greeted the new financial year in significantly more optimistic spirits than they ended the last one, though this optimism faded quickly. The latest quarterly Fund Flow Index from Calastone, the largest global funds network shows that between July and September, investors added A$3.63bn to managed equity funds, up from $605m in the previous quarter, when they had been spooked by the intensifying global bear market.
Key highlights from this quarter’s FFI:
- Managed equity funds enjoyed A$3.53bn of inflows between July and September
- Australian equities benefited disproportionately from new cash for equity funds with second-largest quarterly inflow in at least four years
- Active funds and ESG absorbed Q3’s new capital
- Investor enthusiasm waned as the quarter progressed – outflows by end of September
- Initial optimism on fixed income funds during bond market rally evaporated as yields soared and prices fell
- Mixed assets followed the same pattern, but real estate was more resilient
View this edition of the FFI in full
