Buying and selling
You buy and sell listed managed funds in the same way as you would buy or sell any other share on ASX. Buy and sell prices are determined ‘on-market’ by investors seeking to buy from those willing to sell at a price agreed between either side. Trades that occur in this way are settled on a T+3 basis. That is a seller will receive the proceeds from the sale and a buyer will receive their new shares in three business days.
Listed managed funds trade through the ASX Trade platform, and clear and settle through CHESS. These funds are admitted to ASX under the ASX Listing Rules and must provide information on their performance and investments. Funds must also be operated by a ‘responsible entity’. Responsible entities are regulated under the Corporations Act 2001 and supervised by the Australian Securities and Investments Commission (ASIC).
Transactions are carried out through an ASX participant broker, and you must provide your broker with certain information when placing an order.
As with all other securities traded on ASX, listed managed funds are identified through a unique ASX ticker code, usually containing three letters.