As investors look ahead to 2026, fund managers are weighing a complex mix of inflation uncertainty, interest rate volatility, structural supply constraints, technological disruption and shifting global dynamics.
To cut through the noise, InvestmentMarkets has brought together views from 17 leading fund managers across property, private credit, infrastructure, equities, fixed income, FX and alternative assets.
Rather than a single house view, this outlook captures the diversity of thinking shaping portfolios heading into 2026 - highlighting where opportunities may emerge, where risks are building, and why selectivity and flexibility are expected to matter more than ever.
Darren Connolly, CEO, InvestmentMarkets
“As investors look ahead to 2026, the data shows a clear shift in priorities. Self-directed investors are spending less time chasing momentum and more time focusing on income, stability and capital preservation. Property, private credit and income-focused strategies are no longer defensive sidelines - they’re becoming core allocations as investors position for the next phase of the cycle.”
Steve Bennett, Direct CEO, Charter Hall
“In our view, the supply response is completely underestimated by the market. For investors already positioned in high-quality real estate, this could deliver outsized benefits as rents rise without the usual supply response. We are now at an inflection point, with valuations already bottoming across sectors including industrial logistics and convenience retail, and improving in core office markets such as Sydney and Brisbane CBD. This is a compelling entry point before the cycle fully turns.”
Patrick William, Managing Director, Rixon Capital
“The flood of capital looking for returns will be very supportive for private credit, with family trusts and SMSFs increasingly looking for a safe place to park capital. The biggest risk is poor disclosure from bad actors, because when one fund fails it can unfairly taint the entire sector. Education and transparency will be critical.”
Ben McVicar, Co-Head of Infrastructure and Portfolio Manager, Magellan Investment Partners
“Infrastructure should hold up relatively well if economic conditions weaken, with underlying earnings proving more resilient than broader equities. While unexpected moves in long-term interest rates can drive short-term price volatility, that disconnect can create opportunity for long-term investors.”
John Di Monda, CEO and Fund Manager, GDA Group
“While inflation remains a factor, the core fundamentals supporting commercial property are expected to hold. Supply constraints, population growth and broad-based capital growth across major property sectors are likely to continue underpinning the long-term investment case.”
Mike Cameron, Commercial Director, Jarra
“Early 2026 is likely to be challenging for some listed childcare operators, with occupancy under pressure, but the introduction of the Albanese Government’s three-day guarantee is expected to drive a meaningful turnaround. From Q4 onwards, the outlook improves significantly as higher occupancy begins to flow through.”
Rudi Filapek-Vandyck, Editor & Founder, FNArena
“Australia is entering 2026 with significant uncertainty after three consecutive years of negative earnings growth, even as markets sit near all-time highs. Much is now riding on next year’s outlook - including AI-driven growth, global policy settings and central bank decisions - but external catalysts such as US rate cuts or China stimulus could still provide support. Flexibility and an open mind will be essential.”
Marc Jocum, Senior Product and Investment Strategist, Global X
“Currency hedging is becoming a far more important portfolio consideration - it’s not a sexy area, but it can be a meaningful tailwind or headwind for returns as market conditions shift. At the same time, AI monetisation remains a major structural tailwind, supported by real revenue and earnings growth. We expect market leadership to broaden as investors look beyond mega-cap tech into the next leg of AI growth.”
Luke Moore, CEO, Oreana Investments
“Technology and AI present a real opportunity to improve governance, efficiency and margins across advice businesses, but they also bring risks that need to be carefully managed. As a new generation of clients becomes more comfortable with technology, the advice practices that thrive in 2026 will be those that use these tools well while staying closely aligned to their clients and doing the right thing.”
Jarrad Stuart, Portfolio Manager, Sharpbridge Funds Management
“It’s always hard to call where markets are headed, which is why we focus on building portfolios that can perform in all weather conditions. While AI remains a powerful long-term driver and we still have exposure, valuations mean we’re cautious in the short term and focused on managing downside risk.”
Filippo Sciacca, Executive Director – Investor Relations, Asset Management and Compliance, Australian Secure Capital Fund
“Ongoing housing undersupply continues to support residential values heading into 2026, with demand still outpacing new supply. While sticky inflation and interest rates may temper growth, strong fundamentals mean we don’t anticipate a meaningful downside.”
Renny Ellis, Director & Head of Portfolio Management, Arculus Funds Management
“With inflation re-emerging and credit margins already very tight, there is limited value in chasing yield. The opportunity lies in patience - staying short on the curve to preserve flexibility and be ready when yields or credit spreads reprice.”
Jarrad Haynes, Managing Director, CapPru
“Efforts to cut red tape and unlock housing supply are a genuine positive for the property sector, with governments starting to clear pathways for more projects to get off the ground. The bigger challenge is interest rate uncertainty - consistency matters far more than whether rates move up or down.”
Christopher Tipper, Chief Economist and Strategist, Ainslie Wealth
“We expect more uncertainty and volatility in 2026, with Bitcoin and precious metals continuing to reflect concerns around debt, liquidity and policy direction. As global liquidity shifts from central banks toward government-led spending, outcomes will depend heavily on how policymakers respond.”
Robert Gregory, Portfolio Manager & Founder, Glenmore Asset Management
“US tech performance, particularly the Nasdaq, is likely to play a major role in investor sentiment for Australian small to mid-caps, which often take their lead from the US. On the domestic side, interest rate policy remains the key risk to watch in 2026.”
Craig Robertson, CEO, Trivesta Funds
“FX is increasingly being recognised as an asset class in its own right, as investors look beyond traditional assets for diversification. While geopolitical uncertainty may create periods of caution, FX strategies can play a meaningful and increasingly established role within diversified portfolios heading into 2026.”
Jessica Amir, Market Strategist, Moomoo
“The biggest driver of investment returns in 2026 and beyond is the scale of spending flowing into the AI economy. As investment accelerates across chips, data centres and the materials needed to build that infrastructure, the strongest earnings growth is likely to sit with the key beneficiaries of that build-out. Markets won’t move in a straight line and volatility is likely, but pullbacks are more likely to be viewed as buying opportunities for long-term investors positioned in high-quality names aligned to these themes.”
Garreth Innes, Head of Unit Trusts, Fixed Income
“Heading into 2026, investment-grade corporate credit is starting from a far more attractive valuation point relative to both equities and private credit. After the recent lift in yields, investors can access senior credit at levels that offer a compelling pickup without sacrificing liquidity or credit quality. While supply dynamics - particularly from large issuers funding AI investment — will need to be watched closely, we believe corporate credit offers a favourable risk–return trade-off at this stage of the cycle.”
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