Questions & Answers - mFunds

An mFund product is an unlisted managed fund admitted for settlement under the ASX Operating Rules and available to investors through the mFund Settlement Service. You can find out more about mFunds at ASX mFund website.

Applying for units directly with a fund manager requires you to fill out application forms and supply certified identification documents. With mFunds there are no paper-based application forms, as you are applying for units through your existing EBROKING share trading account. If you're an existing EBROKING client, you will not be required to complete further identity checks.

All mFund units will be recorded in CHESS – the ASX world-class electronic settlement system. These units will be linked to your Holder Identification Number (HIN) the same way that share holdings are currently recorded.

No. This is a very important difference between mFunds and shares. mFunds are not quoted or traded on the ASX market, and you are not buying from or selling to other investors.

As unlisted managed funds, mFunds are forward priced products, which means the fund manager will price the fund on a regular basis - in most cases at the end of each day. As such, you will not know the price at the time you are submitting an application order and making payment. We will display the last quoted entry and exit price, but this is indicative only and may not be the price at which you buy or sell units in the fund.

You can apply for and redeem units in mFunds through our online trading platform. We do not offer mFunds through our phone service. To buy units in an mFund, your trading account must be CHESS sponsored with a linked EBROKING Settlement Account.

EBROKING charges a brokerage fee on transactions. The current fees are $29.95 or 0.11%, whichever is greater.

Unlike many wrap of master trust platforms there are no ongoing asset-based fees that are typically calculated as a percentage of funds under management (FUM).

No, margin lenders are currently not supporting mFund products, so we cannot take orders for mFunds from your margin loan account.

No. At this stage we will only accept orders for accounts which are CHESS sponsored by EBROKING. You can always add CHESS sponsorship to a trading account.

No. At this stage we will only accept orders for mFund products through our online trading platform. If you do not have access to the platform, please contact us to discuss your options.

Review the available mFund products and read their associated Product Disclosure Statements available on the mFunds page of the platform, and also on the mFund order ticket. You should not invest in an mFund without having read and understood its PDS.

Read the ASX fact sheet for mFund products, which confirm that mFund products are not traded or listed on ASX.

When you have selected an mFund product you wish to invest in, you can submit a Buy (or application) order through our online trading platform. Orders are placed in dollar values – you are investing an amount which the fund manager will later convert to units.

We will deduct the cost of the investment from your EBROKING Settlement Account and then submit the order to the ASX mFund Settlement Service, along with the information required by the fund managers, including your account name, address and tax file number.

The fund manager will review your application and if they accept it, will issue units through CHESS. This process may take several days depending on the fund manager’s normal processes, which are outlined in the PDS for the fund.

When the units have been received by CHESS, your order status will be updated on the trading platform, and the units will be available to see in your Stock Holdings page. mFund holdings can be shown to multiple decimal point - unlike shares where only whole units can be shown.

You may be asked to verify the nature of the entity for which you are trading – a Self Managed Super Fund, for example. You may also be asked for the date of birth of each owner of the account. We will only ask for this information once, if required.

For each application order you will need to acknowledge that you have been provided with a link to the latest PDS for the mFund product and the ASX mFund Fact Sheet, and that you have read and understood these documents. These links will be prominently displayed on the mFund order ticket and you cannot submit an order without ticking the box to acknowledge you have received them.

If you wish to sell your mFund units, you submit a Sell (or redemption) order through our online trading platform.

You can choose to redeem your full holding of the fund, or a number of units, or an amount.

You can apply to cancel any order for mFund products which has not yet been fulfilled by the fund manager, but be aware that we are not in control of the actual time the fund manager fulfils the order, so cannot guarantee a cancel order will be processed before the units are issued or redeemed. It is not possible to amend mFund orders, so you would need to cancel and re-submit any order you wish to change. In certain circumstances a cooling off period may apply. Refer to the relevant mFund PDS for more information.

On the trading platform, the Open Orders page will show details of any mFund orders which have not been completed. These may show a status of “Processing”, meaning the order is being processed through our systems, or “Open” which means the order has been sent to CHESS and is now in the hands of the fund manager. Once orders have been completed you can see details on the Order History page, including details of the number of units allocated and brokerage. You will also receive messages in the Messages section of the platform or optionally by email which advise the status of each order.

As a guide, orders received prior to 9:30am (Sydney time) will be sent to CHESS and the fund manager that day, and orders placed after 9:30am may not be sent until the following day. Each fund manager has different processes in place to deal with applications, so the allotment of units may take several business days depending on the fund manager. When the order is filled, you will be notified on the platform and via email (if you have enabled trade notification emails). You will also receive a statement from the fund manager.

Unlike buying or selling shares, mFunds do not have a 3 day settlement cycle. All mFund applications will be pre-paid – that is, we will deduct the cost of the application from your EBROKING Settlement account before sending the order to the ASX mFund Settlement Service.

Yes, the fund manager will send you a statement to confirm your transactions and current holdings.

Each fund will have different rules governing the minimum and maximum investment amounts. Some will have different rules relating to additional orders after the first investment. You need to read the PDS for each fund carefully and ensure you are investing the correct minimum amount, or else the fund manager may reject your order.

The fund managers issuing mFunds have the right to reject any applications, for example when the minimum investment amount has not been met, or for any other reason under their own policies and procedures. If an order for an mFund is rejected, we will be advised through the CHESS system, and the funds will be credited back to your EBROKING Settlement Account. Please note that fund managers may take several days before accepting or rejecting an application and your funds will not be available for other investments during that time.

If you did want to switch your HIN to another broker and you hold mFund units, you would need to ensure the other broker is an ASX mFund Broker Participant or ASX cannot process the transfer.