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.

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
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Finance News

Clear

September Lending Signals Give Boat Buyers a Fresh Checkpoint

10 Sep 2026: Paige Estritori

Fresh September lending signals are giving Australian boat buyers another reason to slow down before signing a purchase contract. As the spring boating season gathers pace, lenders are still competing for well-qualified borrowers, but the gap between the cheapest-looking offer and the most suitable finance structure can be wider than many buyers expect. - read more

Mortgage arrears are a warning for stretched borrowers

10 Sep 2026: Paige Estritori

Fresh attention on Australian mortgage arrears is a reminder that repayment pressure is no longer just a theoretical risk for highly leveraged households. After a long period of elevated interest rates, higher insurance costs, bigger grocery bills and tighter household budgets, more borrowers are finding that even small financial setbacks can make loan commitments harder to manage. - read more

RBA Lending Rate Update Highlights the Real Cost of Personal Borrowing

10 Sep 2026: Paige Estritori

The Reserve Bank of Australia’s latest lending rate statistics are a useful reminder that personal borrowing costs can vary widely, even when the broader cash rate outlook appears steady. For households considering a car loan, debt consolidation loan or unsecured personal loan, the key issue is not simply whether rates are rising or falling. It is whether the loan being offered is affordable, suitable and competitive for the borrower’s circumstances. - read more

Why Towing Compliance Should Sit Inside Your Caravan Budget

10 Sep 2026: Paige Estritori

Recent caravan and RV safety coverage ahead of the spring touring season has put towing compliance back in the spotlight. For buyers, the message is broader than road safety alone. Aggregate trailer mass, gross trailer mass, towball download and payload can all affect whether a caravan is genuinely suitable for a household, a tow vehicle and a budget. - read more

ATO Car Expense Focus Puts Business Vehicle Finance Under the Microscope

10 Sep 2026: Paige Estritori

The Australian Taxation Office’s tax-time focus on work-related car expenses is a timely reminder that buying a vehicle for business use is not only a dealership decision. For self-employed Australians, contractors and small business owners, the way a car is used, financed and documented can shape both cash flow and tax record keeping long after the keys are handed over. - read more

Click for more Finance News