APIR Systems (APIR) has observed well above average registrations of new financial products, particularly managed funds and managed accounts, in the year ending 30th June 2023.
According to APIR chief executive, Chris Donohoe, product registrations, whilst slightly down on the previous year’s record number, were 34.2% above the rolling 4-year average.
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 2022/23 data include:
- Managed investment products (MIPs) continue to be the industry’s dominant product choice with 70.4% of total 2022/23 registrations
- MIP registrations in 2022/23 finished 22.1% above the rolling 4-year average
- A sharp increase (+174.4% on the previous year) in managed accounts (SMA model) registrations in 2022/23
- Rationalisation of superannuation investment options continues in line with industry expectations
- 45 new participant (i.e. product issuers such as Responsible Entities and Trustees) registrations in 2022/23, driving a net increase of 7.1% on the prior year.
“Managed investment products continued to be the industry’s product engine room, however it is extremely pleasing to see the significant increase in managed account registrations in 2022/23, being 153.8% above the 4 year rolling average. This further demonstrates the industry’s better understanding of how to leverage the benefits of the APIR coding regime,” Mr Donohoe says.
He says that product termination numbers for 2022/23 were dominated by superannuation investment options as the industry’s recent merger and acquisition activity ripples through the system.
Looking ahead to the 2023/24 financial year, Mr Donohoe says that the industry continues to evolve and has proven to be incredibly resilient and innovative in recent years, particularly given the challenges faced coming out of the pandemic.
“We expect that the continued domestic and global challenges, including a rapidly changing interest rate environment and the recessionary threats, will drive further innovative responses and offer opportunities to product manufacturers.”
Analysis on key attributes of APIR’s managed investment product registration data will be released in coming weeks.
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