Australian investors greeted the new financial year in significantly more optimistic spirits than they ended the last one, though this optimism faded quickly. 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