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Alternatives dominate new managed investment product registrations

alternative-assets/

22 August 2022
| By Staff |
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Alternative products were the most popular type of managed investment product registered in the last financial year, according to analysis of product attributes by APIR Systems.

According to APIR chief executive, Chris Donohoe, a key observation from the most recent managed investment product data was that products identifying as alternatives accounted for almost half (48.22%) of new registrations.

Shares were the next most popular, accounting for 37.87% of new registrations, followed by fixed income at 8.88% and cash/cash equivalent at 5.03.

“In all, 57.10% identified as wholesale products, with 39.94% as retail and 2.96% as other.

The majority (57.40%) stated the investment objective as income and growth, while 24.26% stated income only and 18.34% per cent stated growth only.

Just over half of the registrations had a domestic geographical focus, while 42.31% had a global (including Australia) focus and 6.80% had an international (excluding Australia) focus.

The alternatives category covered a broad range of asset types and registrations predominately comprised mortgage and single asset property funds. These funds were generally closed end funds and had a shorter investment cycle than traditional managed investment products.

Donohoe said the FY 2021/22 data included a breakdown of important product attributes at a granular level, and provided a valuable snapshot of the state of play in the Australian market.

“APIR will release this information on an annual basis in the future, and will provide time series comparisons in future years,” he said.

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