The Australian Securities Exchange (ASX) launched mFund in May, to make unlisted managed funds more accessible to direct investors.

Both OneVue and Allan Gray are foundation members of mFund. OneVue chief operating officer, Lisa McCallum, said the company will act as Allan Gray’s product issuer settlement participant (PISP) and facilitate connectivity to mFund.

“One of the key benefits is OneVue’s connectivity to the ASX’s Clearing House Electronic Subregister System (CHESS) which has automated integration into our core registry system, Trust Architect.”

McCallum added that OneVue is particularly pleased to grow its relationship with Allan Gray and have the fund manager as the first to utilise its mFund capabilities.

“We’re also in discussions with a number of our other fund manager clients that are looking at this functionality and interest is growing rapidly.”

Allan Gray Australia chief operating officer, JD de Lange, said: “We see mFund as an opportunity to expand our nation-wide retail distribution capabilities.”

“We’re delighted to have a registry partner like OneVue who can help us provide another convenient channel through which investors can invest into the Allan Gray products.”

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ASX Sharemarket Game regos now open.

For more than 30 years, Australians beginning their share investing journey have chosen the ASX Sharemarket Game as a way to become familiar with the sharemarket, while more experienced investors have used the Game to test various strategies.

This year the Game is being sponsored by ‘Grow by ANZ’, and has been rebuilt from top to bottom. It features a new look, is mobile and tablet friendly, and has been extended to include all stocks in the S&P/ASX 300.  To add to the reality of the experience, it now also includes stop-loss order functionality.

The fundamental principles of the Game remain, in particular the use of real companies, live prices and genuine market conditions.

Head of Investor Education at ASX, Tony Hunter, said: “The ASX Sharemarket Game continues to be a great way for people to learn the language of the market and the dynamics of trading. By including all the companies in the S&P/ASX 300, people will be able to get to know and understand our biggest companies before they invest in the real thing.”

The Game is free and there are cash prizes for the first three placegetters, as well as a weekly gift voucher for the most improved player. Upon registration, participants are each given $50,000 hypothetical dollars to invest over a 14 week period. The winner will be the person with the highest portfolio value (cash and shares) at the end of the Game.

A new league function also provides the opportunity to compete against work colleagues, friends or family, with members of your league to appear in league rankings as well as the national rankings.

Registrations are now open until 6 August and trading commences on the following day. It runs for 14 weeks and finishes on 19 November 2014.

Click here to register.

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Pru Bennett

78% of ASX200 companies’ gender diversity reporting is perfunctory or worse, according toBlackRock.

BlackRock’s review of the 2013 annual reports of companies included in the Standard & Poor’s/ ASX200 stockmarket index has ranked 3% of disclosures surrounding gender diversity as ‘excellent’, 19% as ‘good’ and the others perfunctory, poor or generally non-disclosing.

This investigation is the third BlackRock has undertaken into the gender diversity policies and disclosures of Australia’s top 200 listed companies. It is based on information revealed in response to gender diversity disclosure and policy principles required by the Australian Securities Exchange (ASX) in its Corporate Governance Principles.

Pru Bennett, BlackRock’s Corporate Governance and Responsible Investment Director – Head of Asia Pacific, said: “Companies such as Mirvac Group should be applauded for their continued commitment to disclosure.

“However, the majority of companies are still applying a largely minimal standard mindset to the reporting of their diversity obligations.

“In the three years since our first report on diversity in Australia’s 200 largest listed companies, there has been some improvement but there is scope for more.

“To simply state a company has a diversity policy, list some objectives and disclose some statistics does not equate to good disclosure.

“We believe gender diversity can have positive ramifications for return on investment over the medium- to long-term.

“However, our findings show – despite the recommendations of the ASX on gender diversity – the current commitment to gender diversity is piecemeal and they could definitely do better.

“It appears from the board down, gender diversity is not included in the DNA of most companies.”

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ASX Clear and ASX Settlement commissioned Oxera, a leading independent European economics consultancy, to benchmark the costs of using ASX’s cash equity post-trading (clearing and settlement) services against the costs of using the services provided by financial market infrastructure providers (FMIs) in other financial centres. The annual costs to the Australian economy of cash equities clearing is $42 million and for settlement $40 million, based on ASX’s FY13 financials.

The global cost benchmarking is part of ASX’s commitment under its Code of Practice. The Code commenced in August 2013 following a Government announcement in February last year to defer a decision on any licence application from a central counterparty seeking to offer cash equities clearing services in Australia for a period of two years.

ASX’s other commitments under the Code of Practice include providing transparent and non-discriminatory access to and pricing of its cash equities clearing and settlement services, and the creation of an advisory Forum comprising senior customer and industry stakeholders. All commitments have been put in place.

The Oxera report concludes that “the costs of post-trading services in Australia are in line with the costs of similar services provided in financial centres of comparable size.”

Oxera’s comprehensive cost benchmarking confirms the analysis by the Council of Financial Regulators that “ASX’s fees are broadly comparable to those of other markets of a similar scale”, which was published in its December 2012 report Competition in Clearing Australian Cash Equities: Conclusions.

The Oxera report acknowledges that there is a high level of transparency around the pricing, financial performance and international benchmarking of ASX’s cash equity market post-trade services. This transparency has been provided by ASX under the Code of Practice framework.

ASX is grateful for the input and cooperation from members of the industry advisory Forum and its related Business Committee who were consulted on the scope and methodology of the Oxera review. We also thank ASX’s customers and FMIs in other jurisdictions who contributed to the report, providing Oxera with access to accurate information to produce a robust and meaningful analysis.

The report is available here.

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Alexander McNab

Strong investor interest has seen Blue Sky Alternative Investments Limited raise more than $60 million in an Initial Public Offering (IPO) of its Alternatives Access Fund, exceeding the minimum subscription level of $50 million.

The new Listed Investment Company (LIC), set to debut on the Australian Securities Exchange (ASX: BAF) on Monday 16 June, will be Australia’s only directly managed, alternatives-focused LIC, a unique investment vehicle available on a wide range of platforms[1].

Blue Sky’s investment director Alexander McNab said the listing marked Blue Sky’s most important milestone to date.

“Now Australian investors can directly access the only actively managed diversified alternatives investment vehicle on the ASX.”

According to Rainmaker data from December 2013, alternatives are the fastest growing asset class in Australia, increasing from five percent of all investments in 1997 to more than 13 per cent at the end of 2013. This trend is continuing with almost 20 per cent of all investments forecast to be allocated to alternatives by 2033.

Alexander McNab also thanked the joint lead managers to the offer Ord Minnett Limited and Morgans Corporate Limited, and co-lead manager Shaw Corporate Finance Limited for their role in the capital raising.

Ben Wilson from Ord Minnett Corporate Finance said they had received a lot of interest from financial planning, private wealth, SMSF and retail investors, who had found it hard to access alternatives until now.

“While most Australian LICs invest in listed equities and fixed interest, the Alternatives Access Fund will hold a diversified portfolio of alternative assets managed by Blue Sky across the company’s four divisions of real assets, private equity and venture capital, private real estate and hedge funds,” Ben Wilson said.

Official quotation of the company’s securities is due to occur on Monday 16 June 2014. The company raised $60.39 million under the offer by the issue of 60,391,800 ordinary shares each fully paid at an issue price of $1.00.

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[1] Blue Sky Alternatives Access Fund Limited (ASX:BAF) will be available on the following platforms and MDA providers: MLC Wrap, BT Wrap, Netwealth, Macquarie Wrap, Asgard, HUB24, Mason Stevens and Managed Accounts (IAS).

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ASX mFund Settlement Service is a new electronic processing service that allows investors to use a participating ASX broker to invest in and redeem units in unlisted managed funds.

This will provide investors, advisors and brokers with a simple and electronic-based system for accessing unlisted managed funds, utilising ASX’s CHESS settlements system. Investments can be linked to an investor’s existing Holder Identification Number (HIN), allowing investors to track their managed fund investment using the same system they use for shares and other ASX products.

Bentham Asset Management Managing Director and Lead Portfolio Manager, Richard Quin, says the service is an important step forward in allowing individual investors, including SMSFs, to more easily access professionally managed investment portfolios.

“The mFund service can provide simple access to diversifying asset classes, such as global credit and fixed interest, which have traditionally been difficult to access and are underinvested in by individuals,” he said.

The Bentham Global Income Fund ASX Class and Bentham Syndicated Loan Fund ASX Class will be available via the ASX mFund Settlement Service.

The Bentham Wholesale Global Income Fund returned 11.68 % (net of fees) for the year to 31 March 2014 and 21.35 % p.a. (net of fees) for the five years to 31 March 2014. Bentham’s Wholesale Syndicated Loan Fund delivered a net return of 8.45 % for the year to 31 March 2014, and 17.34 % p.a. (net of fees) for the five years to 31 March 2014.

Bentham Asset Management is a foundation member of the ASX mFund Settlement Service.

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John Brogden

ASX has  officially launched its new managed funds settlement service – mFund. The launch was hosted at Exchange Square in Sydney by ASX Managing Director and CEO, Elmer Funke Kupper, with guest speaker John Brogden, Chief Executive Officer of the Financial Services Council.

mFund – through which the first transaction took place on Tuesday between APN Funds Management and Bell Direct – will broaden fund managers’ distribution networks, offer brokers a greater choice of products, reduce costs for industry, and make processes more efficient for transacting in managed funds.

ASX acknowledges the cooperation and hard work of more than 70 Foundation Members in delivering mFund. These include fund managers and their unit registries, and ASX brokers, supported by back office providers and other distributors of financial services, such as administration service providers and independent financial adviser groups.

mFund is an electronic processing service that allows investors to use an ASX broker to buy and sell units in unlisted managed funds. It has been developed for investors, brokers and fund managers to improve the timeliness and efficiency associated with investing in managed funds. The service will replace the traditional paper-based processes and use the same electronic system (CHESS) familiar to investors and brokers for settling – or finalising – ASX share transactions.

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.

Visit www.mfund.com.au for more information, including a list of funds that will grow with time, prices, performance details and an educational video explaining how the mFund service works.

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Connie McKeage

Wholesale SMSF solutions provider OneVue has purchased super trustee MAP Funds Management, a move OneVue has described as a strategic transaction ahead of its proposed listing on the Australian Stock Exchange (ASX) this year.

MAP chief executive Jenni Erbel said MAP and OneVue have been collaborating on the development of various products and investment options for members and clients since 2011, including a low cost super product which was released to market last year via the OneVue investment platform

“Combining the resources of MAP and OneVue will improve efficiencies and increase skills, capabilities and technology across the board,” Erbel said.

“Together we can create a stronger platform for future growth that will enable us to deliver more innovative and competitive investment options to clients.”

Erbel said OneVue works with a number of highly recognised domestic and global brands including Perpetual, State Street Global Advisors, Centuria Capital and BNP Paribas, and MAP strongly believes in OneVue’s highly experienced board, leadership team and staff.

“We are excited about the opportunities and greater capabilities we will be able to deliver through being part of a larger company, including a reduced administration fee for more than 90 per cent of members in the MAP Superannuation Plan who have a balance of over $10,000,” Erbel said.

As part of the transaction the MAP Trustee Board will undergo a slight restructure whereby a number of existing board members will be retained and new professionals will also be appointed.

“This will provide strong links to MAP’s history as well renewed vision for the future,” Erbel said.

OneVue chief executive Connie Mckeage said OneVue has been a major participant in the self managed super fund (SMSF) sector to date.

“While our focus on the SMSF sector will continue going forward, we want to ensure we have a role to play right across the superannuation sector and this transaction strengthens our position in the retail superannuation market significantly,” Mckeage said.

“Whilst each service and client segment creates a valuable opportunity for OneVue, we believe it is actually the interplay between the respective channels that creates the greatest value.”

Mckeage added that this latest purchase by OneVue would add to OneVue’s geographic footprint, with a location now in Brisbane as well as in Sydney and Melbourne.

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Connie McKeage

The ASX’s new managed funds settlement service will transform the market as it will ultimately reduce administration costs and make it far easier for SMSF investors to participate directly in the managed funds space, according to OneVue.

OneVue chief executive Connie Mckeage said OneVue, which specialises in providing digital SMSF solutions to a range of intermediaries and third parties, is pleased to be one of 60 foundation members of the mFund Settlement Service, as it has now been formally coined.

“A number of impressive fund managers, responsible entities, unit registrars, administrators and brokers have signed on as foundation members, and I think this is just the beginning,” Mckeage said.

“Our sense is that many more organisations, investment managers in particular, will choose to participate in the mFund service sooner rather than later.

“Through mFund we’re redefining the possibilities of the managed funds sector by enabling investors to apply for and redeem units in managed funds under a process similar to how listed securities are currently bought and sold on the ASX.”

Mckeage said most notable was the absence of a number of big name platform providers that had not signed on as foundation members.

“I understand the dilemma they have in trying to protect their existing revenue base but I learned a long time ago that change is inevitable so you may as well embrace it,” she said. 

“A number of industry participants didn’t think mFund would get off the ground but despite what the sceptics thought mFund will launch before the second half of the year and I believe it will be a success.

“There are too many fund managers out there who want to regain control of their businesses and that deserve to have a direct relationship with their clients.

“Platforms take that away from them whereas mFund creates an opportunity for fund managers to reconnect directly with segments of the retail market that until now have been largely intermediated.”

Mckeage said platform providers, including OneVue, now have to adjust their operating models to adapt to this new market offering.

“OneVue is pro-active, not reactive. Any opportunity that can reduce costs, minimise paperwork and provide investors with greater product choice is something we’re going to support and support from day one,” she said.

“Currently managed funds don’t take up a big portion of SMSF holdings, so you can see why tapping into this market, which comprises more than $532 billion in savings, is going to be a huge game changer and fantastic opportunity for fund managers as well as self-directed investors and the advice community.”

Mckeage said she believes organisations that embrace new technologies now are going to be the ones better placed to deliver superior service to clients in the future.

She added that OneVue is equipped to integrate mFund into its solutions when the initiative launches.

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Andrea Slattery

ASX has received regulatory clearance to launch its new managed funds settlement solution – mFund Settlement Service. It will be launched in the first half of this calendar year following the completion of customer connectivity.

mFund has been developed for investors, brokers and fund managers to improve the timeliness and reduce the costs associated with investing in managed funds.

The service will replace the traditional paper-based processes and use the same electronic system (CHESS) familiar to investors and brokers for settling – or finalising – ASX share transactions. mFund is an electronic processing service that allows investors to use an ASX broker when they buy and sell units in unlisted managed funds. CHESS will automate and track the process of these transactions and remove much of the paperwork.

Through the use of ASX’s CHESS infrastructure, investors will receive a consolidated report that summarises all of their holdings in shares, other products such as Australian Government bonds and ETFs, and managed funds purchased using the mFund service. A broad range of unlisted managed funds (mFund products) will be admitted to ASX. ASX is working with around 60 Foundation Members to deliver mFund. These include fund managers and their unit registries, ASX brokers, back office providers, and other distributors of financial services such as administration service providers and independent financial adviser groups.

Peter Hiom, ASX Deputy CEO, said: “ASX is delighted to partner the managed funds industry to bring mFund to market, which will broaden the industry’s distribution network. 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.” Andrea Slattery, CEO of the Self-Managed Superannuation Fund (SMSF) Professionals’ Association of Australia (SPAA), said: “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, as well as that of the SPAA specialist advisors advising them in this superannuation sector.

“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.”

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.

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