What is a buy/sell spread?

When investors make investments in or withdrawals from a Fund, the Fund may need to buy or sell assets. Such transactions incur costs such as brokerage and government taxes, and differ between different asset types and in different countries. A buy (or sell) spread is our estimate of the costs associated with the purchase (or sale) of Fund assets in connection with the purchase or withdrawal of units.

They are charged to ensure that investors in a Fund are not penalised by another investor buying or selling units in that Fund. The monetary value of the spread stays in the Fund to cover the transaction costs and is not a fee paid to us. A buy/sell spread will only be incurred when you transact on your investment, and it will only be applied to the amount of your transaction.