Chris Donohoe

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.

APIR identifies, codes and manages reference data for unlisted financial products. In its 27 years of operation, it has identified over 30,000 individual financial products.

According to APIR chief executive, Chris Donohoe, a key observation from the most recent managed investment product data is products identifying as alternatives accounted for almost half – 48.22 per cent – of the new registrations.

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

“In all, 57.10 per cent identified as wholesale products, 39.94 per cent as retail and 2.96 per cent as other.

“The majority – 57.40 per cent – stated the investment objective as income and growth, while 24.26 per cent stated income only and 18.34 per cent stated growth only.

“Half of the registrations – 50.89 per cent – had a domestic geographical focus, 42.31 per cent had a global (including Australia) focus and 6.80 per cent had an international (excluding Australia) focus.”

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

Donohoe says the FY 2021/22 data included a breakdown of important product attributes at a granular level, and provides 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 says.

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