Blog

Announcing mFund from ASX: Now available on Sharesight

by Doug Morris, CEO, Sharesight

We’re excited to announce that mFunds are now available on Sharesight. We’ve worked with ASX to incorporate mFund data, which means we’re now receiving daily, automatic updates across their entire range of investments - just like any tradable security. And this means that you can begin tracking your mFund holdings in your portfolio since brokers are already offering mFund execution.

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It’s exciting to be at the forefront of what should be a huge win for DIY and professional investors: direct, low cost access to a range of local and overseas fund managers. This translates to one-click diversification and portfolios that are less exposed to local banks, houses, resource companies and as a result, China.

Australia boasts one of the largest and most active investor populations on planet Earth, but until now managed funds haven’t played a direct role in this, which is a shame. In other markets, such as the US, managed (mutual) funds are strongly associated with responsible, self-directed nest-egg-builders. In fact Fidelity, a fund manager, has morphed itself into one of the country’s largest online brokers as a result.

In Australia we have compulsory superannuation, which is a great policy on paper. However, this results in a lazy relationship between households and the fund managers looking after their savings. People are locked-in contributing their 9.5%, while the fund managers are content with guaranteed inflows of cash. There’s been little reason for anyone to question fees, asset allocation, or learn about managed funds - but technology and the rise of self-managed superannuation will disrupt this codified framework.

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mFund will be a win for financial advisers too and should help distance those who are truly adding value from those who’ve relied on commissions from product manufacturers. Those looking out for the interests of their clients will have a hard time not using mFund due to their low cost and pricing transparency. Many advisers are already pivoting their businesses to account for this, and are on the hunt for portfolio reporting and administration alternatives to platforms and wraps. Enter Sharesight. If an adviser no longer relies on a platform for fund execution, then there’s no way to justify their high fees for portfolio admin alone.

In a country where retail (and even wholesale) consumers get screwed on price for the same product sold overseas (the ridiculous markup on digital music or trainers just to cite a couple of examples) it’s a welcome development to see an institution as reputable as ASX step in to look out for the interest of investors. We live in a world where large institutions are trying to unlock value by forming direct relationships with their end clients. Investors should stand to win if an arbiter like ASX acts as the conduit between them and the world’s leading fund managers.