Investing in mFund

Learn more about the features, risks and benefits of investing in mFund

ASX wishes to advise that it has decided to wind down and close the ASX Managed Fund Settlement Service (mFund).

What is mFund?

The ASX mFund Settlement Service (mFund) enables you to buy and sell units in selected unlisted managed funds via the same stockbroker or adviser you use to transact shares. Your holdings in these funds are held electronically in ASX's CHESS system on the same Holder Identification Number (HIN) used to hold other investments, such as shares and ETFs.

Key features of mFund

Access a large variety of unlisted managed funds with much greater efficiency.

mFund provides access to a range of unlisted open-ended managed funds. Being ‘unlisted’ means that they are not directly traded on ASX. Instead, purchases and sales of units in the fund are made between the investor and the managed fund issuer’s unit registry. Investors do not trade units with other investors; rather, the process is facilitated by a settlement system (CHESS) owned by ASX. The price of units is calculated by the fund manager based on the value of the fund’s assets and not by a traded market, as is the case in share transactions.

Unlisted managed funds are the most common type of managed fund available to Australian investors. They are typically actively managed by professional fund managers who pool funds from a range of investors.

No paper-based applications

mFund does not require you to complete application forms when buying new units or when selling existing units in an unlisted managed fund, saving you time. By using CHESS, orders for units are sent electronically to the managed fund and enables the progress of orders to be monitored. You are buying units from the fund manager rather than from other investors, mFund is not traded on the ASX market.

Units held on your Holder Identification Number (HIN)

mFund unit balances are recorded on your HIN alongside other investments at settlement, providing you with greater transparency over all your holdings.

ASX rule framework
The ASX rule framework supports mFund by setting out the roles and responsibilities of those involved, including brokers and issuers.