According to independent, privately owned utility APIR, total year-to-date product registrations for the 2021/22 financial year are up almost 50 per cent on pcp at 797, while registrations for the March 2022 quarter also surged to 240; a more than 33 per cent jump on March 2021 figures.
Meanwhile, total product terminations are expected to end lower than in the 2020/21 financial year, particularly for managed funds.
APIR chief executive Chris Donohoe said he expects the number of unlisted financial product registrations to continue in the June 2022 quarter.
“Registrations of traditional managed investment products continue to thrive indicating a healthy level of product development within the industry,” Mr Donohoe said.
“This has been partially driven by increased registrations of single asset and mortgage funds which offer investors higher yields in the low interest rate environment.”
However, Mr Donohoe added that while the June quarter typically sees the highest number of product terminations, early indications suggest the numbers this year will be lower.
“This is particularly the case for managed funds where, through to the end of the March quarter, product terminations are down almost 50 per cent on the previous year,” he said.
Looking ahead to the 2022/23 financial year, Mr Donohoe said the implementation of the corporate collective investment vehicles (CCIVs) will be one to watch.
The CCIV regime will permit fund managers to use a company structure with flow-through tax treatment – this will be more familiar to international investors who are more used to corporate investment structures.
“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,” Mr Donohoe said.
The requirements will come into effect on 1 July 2022.
