Managed accounts registrations up in Q422

Oksana Patron

17 January 2023

The number of managed investment and managed account product registrations in the Australian market grew 13% in the December quarter over its five-year rolling average for the same period and stood at 195, according to APIR.

This means that registrations of managed investment products stood at 166 and were up almost 15% on the quarterly average over the past five years, while managed accounts product registrations (26) more than doubled the rolling five-year average for the period.

At the same time, terminations for the December quarter were 68% lower compared with the previous quarter.

Chris Donohoe, chief executive of APIR, which identifies, codes and manages reference data for unlisted financial products, said the strong product growth in the December 2022 quarter built on the positive start to the financial year.

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

“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,” Donohoe said.

“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.”