Managed Investment product registrations remain strong

While financial advisers continue to argue for the managed investment schemes to be included in the funding of the Compensation Scheme of Last Resort, they are proliferating.

The latest data from funds registry firm, APIR Systems has revealed that in the year ending 30 June, product registrations almost matched the record set in 2024.

It said there were 719 managed fund registration in the 2024-25 financial year with managed investment products continuing be dominant, accounting for 85.2% of registrations.

APIR chief executive, Chris Donohoe said that while overall product registration were slightly down from last year at 844, they ended the financial year up 7.4% above the rolling five-year average.

Key highlights from 2024-25 APIR data include:

• Managed investment products (MIPs) continue to be the industry’s dominant product choice making up 85.2 per cent of registrations during 2024-25.
• MIP registrations in 2024-25 finished 18.9 per cent above the rolling 5-year average.
• Managed accounts (SMA model) registrations were again strong, at 25.7 per cent above the rolling 5-year average.
• The slowdown in archiving of superannuation investment options during 2024-25 (85.7 per cent below the rolling 5-year average) suggests that the major rationalisation of options has now been completed.
• There were 41 new participants (i.e. product issuers such as Responsible Entities and Trustees) register in 2023-24, a net increase of almost 10 per cent on the prior year.

Donohoe said he believed the results were particularly strong given current market volatility created by recent global geopolitical uncertainty.

He said he expected similarly strong registrations moving into 2025-26.

“We have seen consistently higher levels of registrations, particularly of managed investment and managed account products, for several years now. The data reflects a normalisation of industry activity post the uncertainties created by Covid,” Donohoe said.