From 15 June 2010 some changes to the buy-sell spread come into effect.
Only the buy-sell spreads for the following investment options have changed:
Buy-sell spread is the term used to describe the cost of entering or exiting an investment option. For example when you purchase units in a particular investment option the purchase is at the 'buy' price and similarly when you exit it is at the 'sell' price. This means the buy-sell spread reflects the difference in the buy and sell price.
This cost covers the transaction expenses that are necessary when we buy and sell fund assets (for example brokerage costs).
When you make an investment switch, the buy-sell spread will be reflected in the number of units used to purchase your chosen investment option/s. That is, the value of your investment will be reduced by the buy or sell spread.
The buy-sell spread means that only members who are buying, switching investments or withdrawing bear the cost.
This table shows the buy and sell spreads for each investment option expressed as a percentage of a contribution amount (in the case of a buy spread) and a withdrawal amount (in the case of a sell spread). It also shows worked examples illustrating the cost of a buy spread or sell spread associated with a contribution or withdrawal of $5,000 in relation to each investment option. For an investment switch, both a buy and a sell spread will be applied.
This information also amends the product disclosure statement (PDS).
This table will replace table 14b on page 71. Only the buy-sell spread for International shares and International shares (unhedged) changes. All other information remains the same.
Thursday 17 June 2010
