Australian Fund Managers Brace for Impacts of US Tariff Policy

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The imposition of US tariffs under former President Donald Trump's administration is predicted to challenge Australia's publicly listed fund managers, according to analysis by research and ratings firm Morningstar.

Shaun Ler, an equity analyst with Morningstar, suggests that these financial entities might experience a gradual decline in earnings over the medium term due to reduced cyclical benefits from interest rate cuts and increased market volatility.

Despite the anticipated challenges, the full ramifications of tariff uncertainties may not be completely realized until the fiscal year 2026. Ler notes that while these pressures will affect fund managers, the immediate fiscal year should see manageable impacts. The growing volatility and priced-in rate cuts are expected to dampen business momentum, with fee compression and investment in growth impeding earnings advancement.

A trend of market share loss is visible among the covered fund managers, with companies such as GQG, Perpetual, Magellan, and Platinum expected to see net outflows persisting over the coming five years. Yet, despite potential near-term earnings challenges from tariffs, Morningstar's fair value estimates for firms like Challenger, GQG, Insignia, Magellan, Perpetual, Pinnacle, and Platinum remain unchanged.

The analysis reflects that these forecasts account for weaker market returns and fund flows in the short term. Historical patterns from fiscal years 2020 to 2024 demonstrate a trend of investor pessimism giving way to increased risk appetite once uncertainties and volatility diminish.

Even within this challenging landscape, Morningstar identifies Perpetual and Insignia as good value at present prices. Perpetual is expected to gain from cost reductions, fund compounding, and stable corporate trust earnings, whereas Insignia might benefit from moderated fee compression, consistent fund flows, and eco-scalable cost adjustments.

Published:Tuesday, 22nd Apr 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Finance News

Westpac Concludes Auto Loan Commission Lawsuit with $81 Million Settlement

29 Nov 2025: Paige Estritori

In a significant development within Australia's banking sector, Westpac Banking Corporation has agreed to a settlement of A$130 million (approximately $81.84 million) to resolve a class action lawsuit concerning its auto finance practices. This settlement, pending court approval, addresses allegations that between March 1, 2013, and October 31, 2018, Westpac and its subsidiary, St George Finance, permitted car dealers to increase interest rates on car loans to earn higher commissions. - read more

Isuzu Australia Introduces Dedicated Financial Services for Truck Buyers

29 Nov 2025: Paige Estritori

Isuzu Australia Limited (IAL) has unveiled plans to establish Isuzu Financial Services Australia (IFSA), a finance and leasing company set to commence operations in the third quarter of 2026. This initiative marks the first time the Isuzu Group has founded a leasing company outside Japan, reflecting a significant commitment to the Australian market. - read more

LMG's Asset Finance Exchange Hits $80 Million in First-Year Settlements

29 Nov 2025: Paige Estritori

Loan Market Group's Asset Finance Exchange (AFX) has reported approximately $80 million in settlements within its inaugural year, reflecting the burgeoning momentum in Australia's asset finance sector. This platform connects mortgage brokers with asset finance specialists, facilitating a seamless referral process that has resonated strongly within the industry. - read more

EU's Strategic Investment in Australian Critical Minerals

27 Nov 2025: Paige Estritori

The European Union (EU) is set to make direct investments in Australian critical minerals projects, aiming to secure essential resources vital for industries such as artificial intelligence (AI) and defence. This strategic move follows discussions between EU Trade Commissioner Maros Sefcovic and Australian Resources Minister Madeleine King, highlighting the EU's commitment to diversifying its supply chains and reducing reliance on unstable external sources. - read more

Strengthening Pacific Ties: The Nakamal Agreement

27 Nov 2025: Paige Estritori

In a significant move to bolster regional partnerships, Australia and Vanuatu have signed the Nakamal Agreement, a $325 million bilateral treaty aimed at enhancing economic, security, and cultural cooperation. Named after Vanuatu's traditional communal meeting place, the 'nakamal,' this agreement underscores the deepening ties between the two nations. - read more

Click for more Finance News

Truck Loans Articles

Maximizing Your Fleet Potential: How Truck Financing Shapes Success

Trucks play a pivotal role in the Australian logistics and transport industry, serving as the lifeblood that keeps commerce flowing. The dependable rumble of engines crisscrossing the nation's highways is more than just a symbol of industry; it's a critical component of productivity and economic stability. Without these workhorses facilitating the timely movement of goods, the Australian market would face significant challenges meeting the demands of both businesses and consumers alike. - read more

How to maintain your truck to extend its lifespan in Australian conditions

Maintaining your truck is essential if you want to prolong its lifespan and save money down the road. Australian conditions can put a lot of strain on your vehicle, and neglecting its maintenance can lead to costly breakdowns and repairs. - read more

How to Choose the Right Lender for Your Commercial Truck Loan

For many Australian businesses, purchasing a commercial vehicle is a significant investment that often requires financial assistance. Understanding the intricacies of truck financing is crucial, as the right loan can affect your company's bottom line and operational efficiency. With a plethora of lenders offering myriad loan products, choosing the most advantageous deal can be daunting. - read more

5 Tips on Securing Low-Interest Rates for Your Vehicle Purchase

Embarking on the journey of acquiring a commercial vehicle is a significant decision for any business. Securing a loan with a low-interest rate is not just a matter of luck; it involves meticulous planning and a thorough understanding of the lending landscape. This opening section sets the scene for our deep dive into navigating the commercial vehicle loan process with an eye toward minimizing costs and maximizing value. - read more

The Most Important Factors to Consider When Buying a Truck

Buying a truck is a major investment, whether it's for personal use or business purposes. With the plethora of options available in the Australian market, it's important to consider various factors before making a purchase. Your specific needs, budget, lifestyle, and work requirements should be taken into account before making a decision to ensure the truck you buy fits your needs. - read more

Start Here

Get a free truck loan eligibility assessment and compare truck finance and leasing options without accessing your credit file!!

Knowledgebase

Home Equity Loan:
A loan in which the borrower uses the equity of their home as collateral.