Investors piled into Australian fixed income funds during July and August at the highest rate since 2021, while equity funds continue to suffer.
Investors piled into bond and fixed-income funds in the most recent quarter at the highest rate since 2021, as appetite for equities waned and despite a brutal rout in the bond market.
“Bond investors are juggling the attraction of locking into high yields now with the apparently receding prospect of capital gains in the short term,” Calastone director Marsha Lee said, commenting on the quarterly report.“You’ve had a bit of a dream set-up at the moment for bonds and income investors,” he said.
Much of the equity inflows of about $840 million occurred in July, but by August, buying had turned to selling and outflows continued through to the end of the quarter.The stockmarket in Australia and around the world duly fell in August and September, turning what was already a lacklustre start to the financial year into a distinctly soggy one,” Ms Lee said.
Yields fell after vice-chairman Philip Jefferson and Bank of Dallas president Lorie Logan suggested the recent surge in long-term Treasury yields may reduce the need for the US central bank to raise its benchmark interest rate again.
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