Managed accounts product registrations more than double the 5-year rolling average

Data released by APIR Systems has revealed that product registration levels in the December quarter stood 13 per cent higher than the five-year rolling average for the same period.

The firm, which identifies, codes and manages reference data for unlisted financial products, reported that registrations stood at 195.

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, while managed accounts product registrations were more than double the rolling 5-year average for the period, at 26.

According to APIR, terminations for the December 2022 quarter were 68 per cent lower than the previous quarter largely due to easing in the rationalisation of superannuation investment options over the period.

Commenting on the latest data, APIR chief executive Chris Donohoe pointed to several emerging trends.

“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,” Mr Donohoe said.

Additionally, he noted, APIR saw significant increases in income-focused 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,” Mr Donohoe explained.

“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.”