When a member buys or sells units in a fund, the Trustee trades the underlying assets of that fund to either invest the money or provide cash for the withdrawal. This trading generates transaction costs, such as brokerage, which are paid for by the fund.
The buy-sell spread is the difference between a fund's entry price and exit price and is a cost incurred by members each time they invest (contribute) or withdraw funds. The buy-sell spread is retained by the fund (it is not a fee paid to us) and contributes towards the transaction costs associated with the fund buying or selling assets.
The spread ensures that those members joining or leaving the fund contribute towards these transaction costs and other members who are not joining or leaving at that particular time are not disadvantaged.
A buy-sell spread is expressed as a percentage of the net value of the Fund's assets. The buy-sell spreads for our funds are reviewed annually and can change from time to time.
Buy/sell spreads are considered more equitable because they more equitably allocate transaction costs to those members who trigger a transaction that involves the buying or selling of units.
The buy/sell spread is retained within the Fund to meet transaction costs incurred.
Any changes are updated on this website.