Fixed income appetite propels managed fund inflows to $36b

Yasmine Raso

Senior Journalist, Financial Newswire

4 February 2026

Investor appetite for fixed income strategies offering stability amid ongoing volatility and uncertainty has seen Australian managed fund net inflows hit $35.9 billion in 2025, as a steady rebound in equity funds also contributed.

The latest data from Calastone, which was acquired by SS&C Technologies last year, showed fixed income strategies accounted for a record $17.3 billion in fund flows, continuing off the back of a strong 2024 despite a “volatile start” in 2025 due to tariff policy-driven uncertainty.

Fund flow momentum surged in May after a difficult March ($714 million in outflows), before weathering bouts of “turbulence” throughout the rest of the year to record $3.2 billion in July.

“Fixed income was clearly the anchor allocation for Australian investors in 2025,” Marsha Lee, Head of Australia and New Zealand at Calastone, said.

“Even as sentiment shifted through the year, demand for bonds remained resilient. What’s also notable is the way investors rebuilt equity exposure as market conditions stabilised – steadily and with conviction.”

Equity funds also semi-reflected the activity seen by fixed income funds, in that they were “unsettled” in the first half of the year before stabilising for the remainder and recording a total of $9.9 billion in net inflows. July was also its strongest month at $2.4 billion, as investor demand for risk rebounded at the same time as inflationary pressures receeded.

Multi-asset funds contributed approximately $2.9 billion in inflows in 2025 with July yet again as the strongest month ($970 million(, as investors sought the benefits of diversification.

“What stands out is that investors remained active throughout 2025. They leaned into fixed income for stability, and then steadily rebuilt equity and balanced allocations as conditions improved, signalling cautious confidence rather than complacency,” Lee said.