InvestNow News – 3rd April – Nikko – NZ Fixed Income – Changes to Buy/Sell spreads

We’re writing to let you know that we have made some changes to the way we apply buy/sell spreads to some of our funds. With the outbreak of COVID-19 and subsequent lock-down, volatility in investment markets has increased dramatically. This has been the case particularly in bond markets where trading costs have risen significantly.

When investors buy and sell units in most Nikko AM NZ funds there are transaction costs known as buy/sell spreads. Buy/sell spreads reflect the cost of acquiring or selling the assets of the funds. The reason for implementation of these spreads is to treat all unit holders equally, otherwise ongoing investors would bear the heightened transaction costs from investors entering or exiting the funds.

Full details available here >