Equities drive $13b managed funds growth in H1

Binaya Dahal

Journalist

21 July 2026

Australian managed funds gained $13 billion during the first half of 2026, driven largely by equities despite heightened global and domestic market volatility, according to the latest fund flow report from Calastone.

The data, which covered both subscriptions and redemptions, showed equity funds attracted $1.7 billion in January and $1.16 billion in February before flatlining in March and rebounding with $1.6 billion in April. From May, however, risk appetite waned, leading to modest outflows despite market remaining resilient.

As demand for equities softened towards the end of the period, fixed income delivered a steadier pattern of investment.

The asset class amassed $2.7 billion in net inflows, recording gains in every month except March, when inflation concerns and heightened market uncertainty temporarily interrupted demand.

Multi-asset funds were also broadly stable, finishing the period with modest net inflows of around $0.3 billion. While flows fluctuated throughout the six months, investors continued allocating capital to diversified strategies.

Calastone’s Head of Australia and New Zealand, Marsha Lee said Australian investors remained committed to markets throughout the first half of 2026, but their allocation decisions clearly evolved.

“Equities attracted the largest inflows overall, yet demand softened noticeably towards the end of Q2,” she said.

“At the same time, fixed income delivered steady inflows, suggesting investors were increasingly balancing growth opportunities with dependable income.

“Perhaps the most striking trend was the narrowing gap between equity and fixed income flows. Instead of retreating from the market, investors remained invested and opted for greater diversification in response to economic and geopolitical risks.”