Direct to consumer managed funds trading now a reality

We’ve partnered with OpenMarkets to successfully complete the first automated direct purchase of an unlisted managed fund for one of our SMSF clients.

The trade was executed through the OpenMarkets Multi-Asset Trading Hub (MATH) and transaction information was subsequently fed directly to us via Class Super’s SMSF administration software. 

The new MATH system will provide self-directed investors with the ability to access managed funds in a simple, transparent and low cost way.

Traditionally, access to direct managed funds has been challenging for self-directed investors, especially with current anti-money laundering identification requirements that create a significant administrative burden.

We know that investment choice and control are the key motivators for our clients, and we are advocates for any technology that provides diversification and investment choice for our clients, as well as keeping the costs down.  The MATH system will allow our self-directed clients to access both direct shares and managed funds using one online trading system.

We understand that our self-directed clients love the simplicity of investing directly in Australian equities, but we also know most of our clients realise the necessity for exposure to a wider range of assets classes – especially international markets.

Although the MATH system solves challenges around the execution of direct managed fund trading, the integration with our SMSF administration software provider Class Super ‘completes the circle’ by providing consolidated reporting.

This integration is essential as for the first time we will be provided with individually held managed fund data electronically from the primary trading source, and in 2015 we will have access to the reconciliation information from the primary registry source.  This will significantly streamline the administration and audit processes as well as providing an up to date consolidated view of your portfolio.

In regards to how the MATH system compares to the ASX mFund service, OpenMarkets managing director Rick Klink says that their system provides access to funds that “aren’t available on the mFund service”. OpenMarkets also allows for the use of the SMSF CMA for trading of the asset, lowering the administration costs and simplifying reconciliation.

Mr Klink also said OpenMarkets‘ “roadmap” for its trading hub will be to introduce execution capabilities across fixed income products and international equities in the first quarter of 2015.

OpenMarkets said MATH is currently available to financial advisers and intermediaries (such as Superfund Partners) and will be also be offered direct to the retail market in 2015.


A personal note from Kris Kitto:

Part of my role at Superfund Partners is to road-test new accounts, brokers and other financial products to enable me to put together great solutions for our clients.

I’ve personally been using OpenMarkets as the broker for my own SMSF for most of 2014, and I have nothing but good things to say – great service, sharp brokerage (from $13.95 per trade) and seamless integration with my SMSF’s Macquarie cash management account.  The website and trading order pad have a clean design and are easy to use.

The most exciting thing about OpenMarkets however is what they are rolling out early next year, including:

  • Access to a range of direct managed funds
  • The ability to directly purchase international / US equities in a cost effective manner
  • Access to fixed income products

OpenMarkets looks to be living up to it’s name and provides some great opportunities for our self-directed clients to easily expand the range of investments they can access.

Superfund Partners remains committed to being completely agnostic when it comes to your choice of online brokers, banks or other investment product providers, however we also have a responsibility to let you know what solutions are available in the market place so you can squeeze the maximum benefit from your SMSF.

If you would like further information on OpenMarkets, please contact me to discuss.

Kris Kitto

Director

Email: kris.kitto@superfundpartners.com.au

Phone: 1300 889 282

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SMSF Specialist at Superfund Partners. I love working in the SMSF space. Self-managed super funds are more than just a savings vehicle - they enable people to truly take control of their financial situation which is key to achieving happiness. I can assist with SMSF setup, SMSF tax and accounting, SMSF pensions and ensure SMSF investments comply with the SMSF laws and regulations.