When you buy or sell units in a fund, you may be charged a buy or sell spread. The buy spread is added to the unit price when you buy units, and the sell spread is deducted from the unit price when you sell units. For example: if you invest $10,000 into a fund with a 0.10% buy spread, the buy spread would be added to the price, bringing the starting value of your investment to $9,990.
Buy or sell spreads are intended to cover the transaction costs of buying or selling the underlying assets of a fund, so that these costs are not borne by other investors in the fund.
The following fund managers do not charge either a buy or a sell spread for any of their funds:
- ANZ OneAnswer Single-Asset-Class Funds
- Devon Funds Management
- Elevation Capital
- Fisher Funds Management
- Harbour Asset Management
- Mint Asset Management
Spreads work differently for Smartshares, as they are are exchange-traded funds (ETFs) traded on the NZX. For OZY, MZY, FNZ and MDZ, the spreads can vary during the day, and reflect the spreads on the underlying shares, i.e. the difference between the bid (buy) and ask (sell) prices for those shares on the NZX or ASX exchanges. For EUF, USF and TWF there is a fixed spread of $0.005 between the bid and ask prices.
For the other fund managers, the following table provides a breakdown of their buy and sell spreads. These figures are current as of March 2018:
| Fund | Buy Spread | Sell Spread |
|---|---|---|
| AMP Capital All Country Global Shares Index Fund | 0.15% | 0.15% |
| AMP Capital Core Global Shares Fund | 0.22% | 0.22% |
| AMP Capital Core Hedged Global Shares Fund | 0.22% | 0.22% |
| AMP Capital Emerging Markets Shares Fund | 0.30% | 0.30% |
| AMP Capital Global Listed Infrastructure Fund | 0.25% | 0.25% |
| AMP Capital Global Multi-Asset Fund | 0.15% | 0.15% |
| AMP Capital Global Property Securities Fund | 0.25% | 0.25% |
| AMP Capital Global Shares Fund | 0.22% | 0.22% |
| AMP Capital Hedged Global Fixed Interest Fund | 0.12% | 0.12% |
| AMP Capital Hedged Global Fixed Interest Index Fund | 0.10% | 0.10% |
| AMP Capital Income Generator Fund | 0.25% | 0.25% |
| AMP Capital NZ Cash Fund | 0.00% | 0.00% |
| AMP Capital NZ Fixed Interest Fund | 0.05% | 0.05% |
| AMP Capital NZ Property Fund | 0.10% | 0.10% |
| AMP Capital NZ Shares Index Fund | 0.10% | 0.10% |
| AMP Capital RIL Balanced Fund | 0.17% | 0.17% |
| AMP Capital RIL Conservative Fund | 0.08% | 0.08% |
| AMP Capital RIL Global Shares Fund | 0.25% | 0.25% |
| AMP Capital RIL Growth Fund | 0.25% | 0.25% |
| AMP Capital RIL NZ Shares Fund | 0.30% | 0.30% |
| Hunter Global Fixed Interest Fund | 0.00% | 0.10% |
| India Avenue Equity Fund - Retail Class | 0.50% | 0.50% |
| Legg Mason Brandywine Global Opportunistic Fixed Income Fund | 0.075% | 0.075% |
| Morphic Global Opportunities Fund | 0.30% | 0.30% |
| Nikko AM Concentrated Equity Fund | 0.35% | 0.35% |
| Nikko AM Core Equity Fund | 0.35% | 0.35% |
| Nikko AM Global Bond Fund | 0.00% | 0.00% |
| Nikko AM Global Equity Hedged Fund | 0.07% | 0.07% |
| Nikko AM Global Equity Unhedged Fund | 0.07% | 0.07% |
| Nikko AM Global Shares Fund | 0.07% | 0.07% |
| Nikko AM Income Fund | 0.00% | 0.00% |
| Nikko AM NZ Bond Fund | 0.00% | 0.00% |
| Nikko AM NZ Cash Fund | 0.00% | 0.00% |
| Nikko AM NZ Corporate Bond Fund | 0.00% | 0.00% |
| Pathfinder Commodity Plus Fund | 0.10% | 0.10% |
| Pathfinder Global Property Fund | 0.05% | 0.05% |
| Pathfinder Global Responsibility Fund | 0.05% | 0.05% |
| Pathfinder Global Water Fund | 0.05% | 0.05% |
| Russell Emerging Markets Fund Class B | 0.35% | 0.40% |
| Russell Global Opportunities Fund $NZ Hedged Class B | 0.21% | 0.16% |
| Russell Global Opportunities Fund Class B | 0.20% | 0.15% |
| Russell Investments Global Fixed Interest Fund | 0.20% | 0.20% |
| Russell Investments Global Shares Fund | 0.20% | 0.15% |
| Russell Investments Hedged Global Shares Fund | 0.22% | 0.17% |
| Russell Investments NZ Fixed Interest Fund | 0.05% | 0.05% |
| Russell Investments NZ Shares Fund | 0.25% | 0.25% |
| Salt Investment Funds Enhanced Property Fund | 0.30% | 0.30% |
| Salt Investment Funds NZ Dividend Appreciation Fund | 0.30% | 0.30% |
| T. Rowe Price Global Equity Growth Fund | 0.00% | 0.00% |
| Vanguard International Shares Select Exclusions Index Fund | 0.07% | 0.07% |
| Vanguard International Shares Select Exclusions Index Fund (Hedged) - NZD Class | 0.09% | 0.09% |