Alternatives dominate new managed investment product registrations
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.
AUTHOR
Staff Writer
Recommended for you
Almost 70 per cent of asset managers are planning to control costs via product rationalisation, according to a global survey by Northern Trust, as they seek to offer clients a best-in-class experience.
Fund managers should work collaboratively with data providers to minimise greenwashing risks in their products as a positive ESG score can be a “gamechanger” for a fund’s demand with advisers.
Asset manager Janus Henderson has made two acquisitions in the ETFs and emerging markets space as it takes strategic steps to meet client needs.
Self-reporting issues to ASIC could lead to a reduced charge for a fund manager but it may not exempt them from enforcement action altogether, according to ASIC chair Joe Longo.
