InvestmentMarkets data reveals property and private credit dominating investor focus amid uncertainty over rates and inflation
Self-directed investors are shifting aggressively toward income-focused assets, with new data from InvestmentMarkets revealing that property funds, mortgage funds, income funds and private credit funds have captured the vast majority of investor attention over the past 12 months.
Based on more than 300,000 unique product views across 400 investment opportunities in 20 different categories, the data provides a clear indicator of how self-directed, high-net-worth investors are positioning themselves amid market upheaval, renewed inflationary pressures, and uncertainty around the interest rate outlook.
InvestmentMarkets CEO Darren Connolly said the data points to a reorientation toward capital preservation and yield. “Investor attention is shifting in a very particular direction,” he said. “What investors choose to investigate is an early signal of where capital will flow, and right now the focus is overwhelmingly on income, stability and defensive assets. In times of uncertainty people want investments and returns they can rely on.”
One-third of product views were concentrated in commercial property funds and mortgage funds - the strongest indication yet that property remains an anchor for many HNW portfolios, particularly amongst older investors. Engagement with income and private credit funds continued to build throughout the period, with Connolly noting that private credit is “no longer a niche allocation, it’s a core holding for investors who are looking for a consistent income yield without equity market risk.”
The data shows a more complex pattern across equity funds. Interest in global equities began to lift around 12 months ago before moderating recently, potentially reflecting valuation concerns in major markets. Interest in small cap funds surged mid-year before also easing, while large caps experienced clear peaks just after mid, and end of year, reporting seasons. ETFs have had consistent attention, while more niche sectors - from crypto to hedge funds - drew less than 2.5 per cent of total views, indicating relatively limited appetite for more unusual exposures.
Connolly said investor behaviour on the platform showed a notable rise in time spend on product information. Investors are spending more than two minutes per each individual product page. “That level of engagement is meaningful,” he said. “When investors are effectively acting as their own CIO, they scrutinise everything, PDS’, TMDs, IMs. Every single piece of information is consumed.”
He said the data underscores a broader shift in investor mindset, that is, independence paired with heightened caution. “Investors want control, but they are also wary,” he said. “They’re filtering noise, interrogating information, and taking the time to understand the products they’re considering.”
He said the past 12 months of data pointed towards a retreat from complexity and volatility and doubling down on income, tangible assets, and strategies aligned with long-term resilience. “The behaviour is consistent and deliberate,” Connolly said. “Investors are moving on from momentum chasing; they’re investing to be able to withstand whatever the next phase of the cycle brings.”
For more information visit www.investmentmarkets.com.au/podcasts