Glossary

List of terms and phrases relating to the mFund Settlement Service

Adviser A person or authorised representative of an organisation licensed by ASIC to provide advice on some or all of these areas: investing, superannuation, retirement planning, estate planning, risk management, insurance and taxation.
buy order (application) To apply for new units in an mFund product from the mFund issuer via the unit registry.
CHESS The ASX Clearing House Electronic Subregister System. ASX’s settlement system for the cash equity, related markets and mFund transactions. It is also a subregister of all CHESS holdings maintained on CHESS HINs.
mFund Fact Sheet Information about the mFund Settlement Service.
Financial Services Guide (FSG) A guide that contains information about the entity providing you with financial advice. It should explain the financial service offered, the fees charged and how the person or company providing the service will deal with complaints
Indirect Cost Ratio (ICR) ICRs measure the total indirect costs of managing a fund and includes management costs. Indirect costs can include performance fees, investment-related legal, accounting, auditing and other operational and compliance costs The aggregation of these indirect costs are divided by the average net asset (this being the size) of the fund and presented as a percentage.
Investment Manager The entity that manages the investment aspects of the mFund including investment strategy. The entity can be the same or separate from the mFund issuer (RE).
Management Fee An amount payable for administering the fund. Typically the cost is deducted from returns before allocation to the fund.
managed fund An investment fund that pools monies from a range of investors to buy assets such as cash, shares, bonds and listed property trusts.
mFund CHESS holding An investor’s electronic fund units sponsored by an ASX Participant and maintained by the mFund issuer through its unit registrar.
mFund issuer or Responsible Entity (RE) A product manufacturer of funds that has been admitted by ASX under the ASX Operating Rules to settle funds through the mFund Settlement Service.
mFund Profile An information sheet providing key features and important information about an mFund. This document does not replace the full PDS.
mFund product An unlisted managed fund admitted under the ASX Operating Rules that investors can invest in through the mFund Settlement Service via their stockbroker or adviser.
mFund Settlement Service The core service that enables the automation of settlement of purchases (applications) and sales (redemptions) for unlisted managed funds on ASX, using CHESS.
National Guarantee Fund (NGF) This Fund covers investors in certain cases of broker misconduct, where those investors have traded shares and some other investment products on the stock exchange
PDS Product Disclosure Statement. A document that financial service providers must give to you when they recommend or offer an mFund product. It must include information about the product’s key features, fees, commissions, benefits, risks and the complaints handling procedure.
Responsible Entity (RE) The legal entity responsible for the overall management of the mFund. The entity can be the same or separate from the investment manager.
sell order (redemption) To request to sell some or all units in an mFund product from the mFund issuer via the unit registry.
settle and settlement Finalising a transaction by transferring the units to the buyer and the money to the seller.
stockbroker Entities that access ASX to enable applications to buy or sell units in an mFund product.
trade and trading Investors buying or selling shares on a stock exchange
unit registrar The ultimate record holder of all units on issue for an mFund product.