Australian investors pulled more capital out of managed equity funds in the first quarter of 2023 than at any time since the beginning of the pandemic. Outflows reached a net A$516m between January and March, the first quarter to see capital leave equity funds in three years.
Key highlights from this quarter's FFI:
- Australian investors pulled a net A$516m from managed equity funds in Q1, the worst outflows since Q1 2020 (-A$1.0bn)
- Uncertainty over outlook for interest rates, inflation and global growth is driving a cycle of market ups and downs – suggesting the bear market has further to run
- Australian investors structurally favour domestic equities – this was evident in Q1 as domestically focused funds saw inflows while funds investing overseas shed capital
- Real estate funds suffered first quarterly outflow since Q2 2022
- Fixed income funds saw inflows in January and February turn to profit-taking in March