More unlisted financial products in Australia

The number of unlisted financial products registered in the Australian market during the March quarter was significantly higher compared to the same period in 2021, despite the recent falls in fund inflows, according to fund registry, APIR.

APIR chief executive, Chris Donohoe, said he expected the strong product development to continue in the June quarter as well.

In particular, registrations of traditional managed investment products continued to rise, driven by increased registrations of single asset and mortgage funds offering higher yields in the low interest rate environment.

In the March quarter, total year to date product registrations for the 2021/22 financial year were up by close to 50% compared year-on-year and stood at 797.

The March quarter registrations were up 33% compared to the same period in 2021 and amounted to 240.

At the same time, rationalisation of superannuation investment options continued but total product terminations were expected end lower than in the 2020/21 financial year, particularly for managed funds.

Donohoe said that APIR typically saw the highest number of product terminations in the June quarter but there were early indications that the June termination numbers might be lower than in previous years.

Looking forward to the 2022/23 financial year, Donohoe said it would be interesting to follow whether the industry leverages the opportunities opened by the recently introduced Corporate Collective Investment Vehicle (CCIV) legislation.

“The CCIV structure offers a great opportunity for Australian financial product manufacturers, providing them with an investment vehicle that offshore investors are comfortable with, and resulting in improved harmonisation with offshore jurisdictions.”