The number of unlisted financial products registered in the Australian market during the September quarter continued the strong growth trend, with product registration levels 30 per cent higher than the five-year rolling average for the same period, according to APIR chief executive, Chris Donohoe.
APIR identifies, codes and manages reference data for unlisted financial products. In its 28 years of operation, it has identified over 30,000 individual financial products.
Key highlights from the latest report include:
- Registrations in the September 2022 quarter are up more than 50 per cent on the quarterly average over the last five years at 275
- However, product registrations for the September quarter were 20 per cent down on the same period the previous year
- Terminations for the September 2022 quarter were 25 per cent higher on the quarterly average over the last five years at 312
Mr Donohoe says that after extremely strong registrations in 2021/22 it is a positive start to the new financial year.
“As has been the recent trend, traditional managed investment products continue to drive registrations, with closed end products again flourishing. Also pleasing was the strong number of new SMA models registered during the period compared to last year.”
Mr Donohoe says that as has been the case in previous years, it has been the archiving by product issuers of superannuation and non-superannuation investment options that has driven termination numbers, although superannuation investment options have been terminated at higher levels.
“Investment options accounted for 67 per cent of the quarter’s terminations. It is expected that this trend will persist as the rationalisation of superannuation products continues,” he says.
Mr Donohoe says after several quarters of strong product manufacturing, it will be interesting to observe how the industry responds to the various domestic and international economic challenges.
“With Australia and the world facing a very different economic environment ahead, this may present headwinds for unlisted financial products and it is possible that the pace of growth will decrease in coming quarters,” My Donohoe says.
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