Fundamental - Issue nine

We are delighted to share the first edition of Fundamental for 2026, bringing together expert analysis, insights and practical guidance on some of the most significant activities currently shaping the investment funds landscape in Australia.

Only three months into 2026, it is remarkable how much has taken place and continues to unfold. The funds management industry entered 2026 amid a confluence of regulatory change, macro‑economic uncertainty, and shifting capital flows. Following a February increase that reflected strengthening private demand, as we publish this edition the RBA announces another 25‑basis‑point hike lifting the cash rate to 4.10 per cent, driven by elevated inflation expectations, tight labour conditions, and rising oil prices. This interest rate environment intersects with broader trends we have highlighted in recent editions of Fundamental. While in 2025 real estate markets generally continued to show signs of recovery (as evidenced by the latest MSCI data), asset selection remains a key driver of performance and the current global uncertainty may give the markets some pause as it navigates the geopolitical and regulatory headwinds.

Regulatory developments remain front of mind for the HW Funds team. ASIC’s roadmap for public and private markets, including proposals to revisit wholesale investor thresholds and impose annual audits across wholesale funds, continue to generate debate, particularly around the potential burden on emerging managers and the risk of constraining innovation.

HW Funds also made a submission in response to Treasury’s consultation paper on ‘enhancing oversight and governance of managed investment schemes’ following the collapse of the First Guardian and Shield funds. Treasury has made recommendations to increase the regulation of retail funds which we believe are unnecessary and will increase costs and lessen competition in the funds industry.    

The forthcoming AML/CTF reforms, due to commence in March, are also top-of-mind for fund managers. Moving further into 2026, we will continue to closely monitor the regulatory landscape and its impact on you and your business.

In the meantime, to help our clients navigate their fiduciary duties, statutory obligations and practical risks that come with acting as trustee or responsible entity, the HW Funds team has developed a Guideline for Trustees & Responsible Entities which will be released soon, so stay tuned!

We hope you find this edition of Fundamental a valuable resource, and please reach out if you have any questions or would like to discuss these topics in greater depth.

Enjoy the read!