The number of unlisted financial products registered in the Australian market during the December 2022 quarter continued its robust growth trend, with product registration levels 13 per cent higher than the five-year rolling average for the same period, at 195, according to APIR chief executive, Chris Donohoe.

APIR identifies, codes and manages reference data for unlisted financial products. In its 30 years of operation, it has identified over 30,000 individual financial products. 

Key highlights from the latest report include:

• Registrations of managed investment products in the December 2022 quarter were up almost 15 per cent on the quarterly average over the past five years, at 166
• Managed accounts product registrations were more than double the rolling 5-year average for the period, at 26
• Terminations for the December 2022 quarter were 68 per cent lower than the previous quarter

Mr Donohoe says that the strong product growth in the December 2022 quarter builds on the positive start to the financial year.  

“We saw the continued trend in strong registrations of traditional managed investment products.  Additionally, managed accounts were well up on the five-year rolling average in the quarter.”

APIR also saw a significant drop in the number of product terminations in the December 2022 quarter, largely due to easing in the rationalisation of superannuation investment options over the period.

Mr Donohoe says recent enhancements in APIR’s collection and reporting capabilities, allowing for a deeper analysis of managed investment products data, are showing several emerging trends developing.

“As noted previously, the registration of closed end funds, particularly single asset property and mortgage funds, has thrived in recent months with 134 products already registered in the six months to December, up from 100 for the same period in FY 2022.

“Additionally, we have seen significant increases in income focussed funds, which are up over 50 per cent.  This correlates with data showing higher levels of funds distributing on a monthly or quarterly basis, rather than the traditional semi-annual distribution cycle.

“These emerging trends reflect the fund types being developed by product manufacturers given the current domestic and international economic challenges; including higher interest rates, inflationary pressures and global recessionary fears,” Mr Donohoe says.

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