Financial product registrations grow in Sep quarter

Oksana Patron

11 October 2022

The number of unlisted financial products registered in Australia has grown in the September quarter by 30% compared to the five-year rolling average for the same period, according to APIR.

However,  product registrations for the September quarter were 20% down on the same period the previous year.

Following this, terminations for the September 2022 quarter were 25% higher on the quarterly average over the last five years at 312.

The archiving by product issuers of superannuation and non-superannuation investment options drove termination numbers, although superannuation investment options were terminated at higher levels.

According to APIR’s chief executive, Chris Donohoe, the trends suggested an extremely positive start to the new financial year, with traditional managed investment products continuing to drive registrations.

The number of SMA (separately managed account) models was also strong during the period compared to last year.

“Investment options accounted for 67% of the quarter’s terminations. It is expected that this trend will persist as the rationalisation of superannuation products continues,” he said.

Donohoe said after several quarters of strong product manufacturing, it would be interesting to observe how the industry responded 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.”