Changes to buy sell spreads 24 June 2020
Due to recent and sustained market volatility, there have been significant changes to market transaction costs when buying or selling securities, particularly in fixed income markets.
Colonial First State has therefore adjusted the buy/sell spreads on a number of investment options to reflect these changes in costs.
The ‘sell’ spreads had increased to reflect the estimated transaction costs a member will incur to transact on these investment options. As the underlying transaction costs have continued to reduce, we have been able to reduce the sell spreads so that they are now the same as the buy spreads.
It may be necessary to increase these spreads again in the future if market volatility impacts the underlying transaction costs of these options, as per the range shown in the table below.
The buy/sell spreads are changing for the investment options, where applicable, to:
- FirstChoice (Wholesale) Investments
- FirstChoice (Wholesale) Personal Super and Pension
- FirstChoice Employer Super
- Wholesale Mezzanine investment funds
- Managed Investment Funds
- Personal Pension Plan
- Rollover and Superannuation Fund, and
- Pooled Super Trust.
If you intend to buy or sell units in these options, you need to be aware of the impact on the spreads of the option.
The spreads of these options as at 24 June 2020 are shown below:
| Buy spread (%) | Sell Spread (%) | Range for sell spread (%) | |
|---|---|---|---|
| FirstChoice Multi-Manager Single Sector | |||
| FirstChoice Wholesale Fixed Interest | 0.20 | 0.20 | 0.20-1.00 |
| Colonial First State Index Series | |||
| Colonial First State Wholesale Index Australian Bond | 0.10 | 0.10 | 0.10-1.00 |
| Colonial First State Wholesale Index Global Bond | 0.10 | 0.10 | 0.10-0.25 |
| Conservative | |||
| AZ Sestante Wholesale Conservative | 0.15 | 0.15 | 0.15-0.50 |
| Colonial First State Wholesale Conservative | 0.10 | 0.10 | 0.10-0.50 |
| Colonial First State Wholesale Target Return Income | 0.15 | 0.15 | 0.15-1.00 |
| Perpetual Wholesale Conservative Growth | 0.10 | 0.10 | 0.10-0.50 |
| Moderate | |||
| AZ Sestante Wholesale Diversified | 0.15 | 0.15 | 0.15-0.60 |
| Colonial First State Wholesale Balanced | 0.15 | 0.15 | 0.15-0.50 |
| Growth | |||
| Colonial First State Wholesale Diversified | 0.20 | 0.20 | 0.20-0.50 |
| Short duration fixed interest | |||
| Colonial First State Wholesale Global Credit Income | 0.15 | 0.15 | 0.15-1.00 |
| Kapstream Wholesale Absolute Return Income | 0.10 | 0.10 | 0.10-1.50 |
| Macquarie Wholesale Income Opportunities | 0.15 | 0.15 | 0.15-1.50 |
| Perpetual Wholesale Diversified Income | 0.15 | 0.15 | 0.15-1.75 |
| Diversified fixed interest | |||
| Affirmative Wholesale Global Bond | 0.10 | 0.10 | 0.10-1.00 |
| Colonial First State Wholesale Diversified Fixed Interest | 0.20 | 0.20 | 0.20-1.25 |
| PIMCO Wholesale Global Bond | 0.10 | 0.10 | 0.10-1.00 |
| Schroder Wholesale Absolute Return Income | 0.20 | 0.20 | 0.20-1.25 |
| UBS Wholesale Diversified Fixed Income | 0.15 | 0.15 | 0.15-1.25 |
| Alternative Income | |||
| Pendal Wholesale Monthly Income Plus | 0.15 | 0.15 | 0.15-1.00 |
| Australian Fixed Interest | |||
| Aberdeen Standard Wholesale Australian Fixed Income | 0.10 | 0.10 | 0.10-1.50 |
| Colonial First State Wholesale Australian Bond | 0.10 | 0.10 | 0.10-1.00 |
Other Funds
| Buy spread (%) | Sell spread (%) | Range for sell spread (%) | |
|---|---|---|---|
| Short duration fixed interest | |||
| Colonial First State US Short Duration High Yield Fund– Class A | 0.45 | 0.45 | 0.45-1.50 |
| Diversified fixed interest |
|||
| Affirmative Global Bond Fund – Class A | 0.10 | 0.10 | 0.10-1.00 |
| Colonial First State High Quality US High Yield Fund– Class A | 0.45 | 0.45 | 0.45-1.50 |
| Colonial First State US Select High Yield Fund – Class A | 0.45 | 0.45 | 0.45-1.50 |
| Colonial First State Investment Grade Corporate Bond Fund – Class A | 0.25 | 0.25 | 0.25-1.00 |
| Colonial First State Wholesale Global Corporate Bond Fund | 0.25 | 0.25 | 0.25-1.00 |
| Australian Fixed Interest | |||
| Colonial First State Wholesale Indexed Australian Bond | 0.10 | 0.10 | 0.10-1.00 |
For further information please refer to the relevant PDS, which is available on our website or call us on 13 13 36 to request a copy.
Disclaimer
Colonial First State Investments Limited ABN 98 002 348 352, AFS Licence 232468 (Colonial First State) is the issuer of super, pension and investment products. This document may include general advice but does not take into account your individual objectives, financial situation or needs. You should read the relevant Product Disclosure Statement (PDS) carefully and assess whether the information is appropriate for you and consider talking to a financial adviser before making an investment decision. A PDS for Colonial First State’s products are available at colonialfirststate.com.au or by calling us on 13 13 36.