Aussie investors demand more fixed income products
There is a clear desire from Australian investors for more fixed income products — and emerging market debt (EMD) strategies could help to meet this demand, according to Goldman Sachs Asset Management (GSAM) head of third party distribution (Australia) Jessica Jones.
In its survey of retail clients last year, GSAM found Australians were cautious in their investment approach, had a strong focus on domestic equities and fixed income, and focused on a very narrow group of asset classes.
Despite this, the continued drop in term deposit and cash rates has forced many Australians to consider coming back into the market, and income is still an important part of most retirees' asset allocation strategies, Jones said.
She said providing an opportunity to invest in EMD is well suited to Australian investors because it has a low correlation with Australian equities and fixed income.
There is also a strong desire from local investors to access emerging markets in order to diversify their model portfolios, she said.
Recommended for you
Global X has painted a worrying picture for active ETFs in Australia, with investor adoption proving uneven and the popularity of its low-cost index counterparts only growing stronger.
Australian equity ETFs attracted record inflows of $3.2 billion in 1Q25, while heightened volatility led to a decline in flows for global equity ETFs, according to Vanguard.
The failure of a clinical trial by biotech firm Opthea has caused shares in its backer Regal Partners to decline 52 per cent year-to-date and hit its funds under management, quarterly flows show.
GQG Partners has revealed its quarterly flows for the first three months of 2025 were up 5.8 per cent, after a difficult final quarter of 2024 as a result of institutional redemptions.
