The Australian Securities Exchange’s (ASX) mFund Settlement Service is more appealing to advisers than self-directed self-managed super fund (SMSF) investors, according to the ASX.
Chan Arambewela, manager of the mFund Settlement Service at ASX, said that since its launch, the ASX has seen a surge in the uptake of its mFund service by financial planners and advisers.
“Just over 12 months after the launch of the new service, ASX’s mFund Settlement Service now has 103 funds. Surprisingly, the majority of transactions so far have been advisor led,” Arambewela said.
Last month, the ASX partnered with Australian Ethical, announcing seven new funds added to its mFund Settlement Service offering.
Covering a “broad range” of asset classes, the seven new funds bring the total to 103 funds from 30 fund managers for the past 12 months, with 11 distributors and 11 registrars.
ASX’s Business Development Manager, David Ho, said that mFunds allow an investor to mix and match the various international equity options, as well as buy units in unlisted managed funds through a process similar to purchasing shares.
“With the introduction of the ASX’s mFund Settlement Service, investors can now buy units in unlisted managed funds in very much the same way they did for shares,” he said.
“A portfolio with a small existing allocation to direct global shares can be further diversified by adding funds to an international ETF or actively-managed mFund depending on the investor’s goals.”
Having launched in May last year, the mFund Settlement Service is supported by the ASX rule framework which stipulates that all parties, including stockbrokers, fund issuers and unit registrars, are held accountable for their roles and responsibilities.
