The Australian Securities Exchange (ASX) has launched its new managed funds settlement service known as mFund. The new non-paper based system is designed for investors, brokers and fund managers. It aims to improve the processes associated with investing in managed funds.
The first transaction took place on Tuesday 6 May, between APN Funds Management and Bell Direct.
The exchange said it will reduce costs for industry, and make processes more efficient for carrying out transactions in managed funds. ASX acknowledged the help of more than 70 Foundation Members in delivering mFund. They included fund managers and their unit registries, and ASX brokers.
mFund will allow investors to use an ASX broker when they buy and sell units in unlisted managed funds. mFund products are unlisted and not traded between investors on the market, but will be settled directly with fund managers via CHESS. Unit prices are set by the fund manager, usually at the end-of-the-day.
Self-managed superannuation funds currently account for more than A$500 billion in funds under management in Australia.