What are the buy or sell spreads?

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:

FundBuy SpreadSell Spread
AMP Capital All Country Global Shares Index Fund0.15%0.15%
AMP Capital Core Global Shares Fund0.22%0.22%
AMP Capital Core Hedged Global Shares Fund0.22%0.22%
AMP Capital Emerging Markets Shares Fund0.30%0.30%
AMP Capital Global Listed Infrastructure Fund0.25%0.25%
AMP Capital Global Multi-Asset Fund0.15%0.15%
AMP Capital Global Property Securities Fund0.25%0.25%
AMP Capital Global Shares Fund0.22%0.22%
AMP Capital Hedged Global Fixed Interest Fund0.12%0.12%
AMP Capital Hedged Global Fixed Interest Index Fund0.10%0.10%
AMP Capital Income Generator Fund0.25%0.25%
AMP Capital NZ Cash Fund0.00%0.00%
AMP Capital NZ Fixed Interest Fund0.05%0.05%
AMP Capital NZ Property Fund0.10%0.10%
AMP Capital NZ Shares Index Fund0.10%0.10%
AMP Capital RIL Balanced Fund0.17%0.17%
AMP Capital RIL Conservative Fund0.08%0.08%
AMP Capital RIL Global Shares Fund0.25%0.25%
AMP Capital RIL Growth Fund0.25%0.25%
AMP Capital RIL NZ Shares Fund0.30%0.30%
Antipodes Global Fund - Long (PIE)0.075%0.075%
Hunter Global Fixed Interest Fund0.00%0.10%
India Avenue Equity Fund - Retail Class0.50%0.50%
Legg Mason Brandywine Global Opportunistic Fixed Income Fund0.075%0.075%
Morphic Global Opportunities Fund0.30%0.30%
Nikko AM Concentrated Equity Fund0.35%0.35%
Nikko AM Core Equity Fund0.35%0.35%
Nikko AM Global Bond Fund0.00%0.00%
Nikko AM Global Equity Hedged Fund0.07%0.07%
Nikko AM Global Equity Unhedged Fund0.07%0.07%
Nikko AM Global Shares Fund0.07%0.07%
Nikko AM Income Fund0.00%0.00%
Nikko AM NZ Bond Fund0.00%0.00%
Nikko AM NZ Cash Fund0.00%0.00%
Nikko AM NZ Corporate Bond Fund0.00%0.00%
Pathfinder Commodity Plus Fund0.10%0.10%
Pathfinder Global Property Fund0.05%0.05%
Pathfinder Global Responsibility Fund0.05%0.05%
Pathfinder Global Water Fund0.05%0.05%
Russell Emerging Markets Fund Class B0.35%0.40%
Russell Global Opportunities Fund $NZ Hedged Class B0.21%0.16%
Russell Global Opportunities Fund Class B0.20%0.15%
Russell Investments Global Fixed Interest Fund0.20%0.20%
Russell Investments Global Shares Fund0.20%0.15%
Russell Investments Hedged Global Shares Fund0.22%0.17%
Russell Investments NZ Fixed Interest Fund0.05%0.05%
Russell Investments NZ Shares Fund0.25%0.25%
Salt Investment Funds Enhanced Property Fund0.30%0.30%
Salt Investment Funds NZ Dividend Appreciation Fund0.30%0.30%
T. Rowe Price Global Equity Growth Fund0.00%0.00%
Vanguard International Shares Select Exclusions Index Fund0.07%0.07%
Vanguard International Shares Select Exclusions Index Fund (Hedged) - NZD Class0.09%0.09%
By |2019-06-14T13:21:08+12:00March 10th, 2018|Comments Off on What are the buy or sell spreads?

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