Speaking at the launch event in Sydney yesterday, Mr Kupper said the new initiative would create a “win, win, win, win” situation, providing benefits to investors, advisers/stockbrokers, fund managers and the ASX itself.
“Today, we are launching a service that we believe over time will become a real game changer for the managed funds industry,” Mr Kupper said.
“mFund is the result of collaboration from right across the industry and we feel the benefits will be felt right across the industry.”
For financial advisers, Mr Kupper said the service would “improve the number of options they can offer their clients” as well as speed up efficiencies.
FSC chief executive John Brogden expressed support for the service, anticipating particular benefits for the SMSF sector and playing down any concerns over sector “leakage”.
“The opportunity that mFund provides to link investors with the mFund platform across into-listed opportunities in the funds sector is enormous,” he said.
“What mFund does is really provide that opportunity to bring the self-managed superannuant together with managed funds in a fashion that many simply wouldn’t have been able to do in the past. The laborious process of the past has been eliminated.”
The mFund platform should provided greater investment flexibility for our clients – and importantly timeliness and a quick and seamless settlement process.
However, for the the service to work it requires market participants (i.e. brokers – specifically Commsec owned by the Commonwealth Bank in our instance) to facilitate trading in this service.
Last I heard Commsec had declined.
I read with interest the developments of the mFund and it’s progress to reality
I recall that some 13 years ago my team at BNPParibas Asset Management Australia had the vision and introduced actively managed exchange traded funds to Australian markets via the ASX.
Sadly the industry was not ready for this development then and our efforts back in 2001 were discarded by the market and the investment industry.
It has always been the case that combining all channels of distribution in the interlinking of access must benefit the end consumer of the investment product. a pity this wasn’t supported by others back in 2001, which would have benefited all participants