mFund is a paperless ASX settlement service for unlisted managed funds and is on track to go ‘live’ this month.
The service currently has 65 foundation members, including 44 fund managers/responsible entities, nine unit registrars and administrators and 12 ASX brokers.
Speaking to InvestorDaily, Lonsec stockbroking chief executive David Wylie said there may be some firms in the industry seeking to “protect their platforms”.
“There could be vertically integrated models that may not wish to participate initially,” he said.
But as momentum builds over the coming months, Mr Wylie expects some of the bigger players to take part in the service.
“I’ve got no doubt that as time goes on the ability to maintain FUM [funds under management] and potentially grow FUM could be quite an attractive offer for those bigger groups,” he said.
“I don’t think it will be a threat [to their business model], but more of an enhancement,” said Mr Wylie.
ASX senior manager for funds and investment products, Marcus Christoe, told InvestorDaily that the number of foundation members is steadily trending upwards.
“What is encouraging is we have received a significant increase both from the distributers and from the fund managers in terms of their interest in the service,” said Mr Christoe.
The ASX is currently having three to four meetings a day with interested parties, he added.
“In terms of the big banks, there is one bank involved, being E*Trade with ANZ. Etrade are very supportive of the service,” said Mr Christoe.
“We remain deep in dialogue with all of the domestic banks. They’re very interested to see how the service goes,” he said.
“Some are waiting on the sidelines, others are a lot more involved. But at least from our side we continue to have those conversations,” said Mr Christoe.
“Our conversations with a majority of fund managers and distributors have been around growing the population size of people who use managed funds, and that’s been primarily our focus,” he added.
