A new electronically-based ASX product will allow self-managed super fund investors to trade in managed funds in the same way they buy or sell shares.
The ASX’s new mFund Settlement Service operates using the electronic CHESS system, which has been used by investors and brokers for settling share transactions in the past. It also provides investors with a consolidated report on all their holdings in shares, managed funds and other products, such as ETFs.
“It will allow brokers to offer a greater choice of products to their clients, and provide investors with a more convenient and efficient method for transacting in managed funds. The current process can be time consuming and paper intensive, and it is often difficult to get an overview of your holdings. The new mFund service changes all this,” ASX Deputy CEO, Peter Hiom said.
The new product is suitable for all investors, but is especially useful to SMSF trustees, according to SMSF Professionals’ Association of Australia (SPAA) CEO, Andrea Slattery.
“SMSF trustees want control over their own retirement savings and greater investment flexibility in how they achieve this. Any service that helps meet this goal will demand their attention,” she said.
“The more services that are offered to help SMSF trustees and their advisors oversee their investment portfolios, the greater the integrity that can be built into our sector that now accounts for more than $500 billion in funds under management.”
A wide range of unlisted managed funds will be admitted to the ASX as mFund products, with unit prices set by the fund manager at the end of each day.
The mFund system is expected to be released in the first half of 2014.