Change to sell spread for the Nikko AM Australian Bond Fund

Fixed income markets globally are currently experiencing significant volatility due to COVID-19. As a result, the cost of transacting has increased substantially. In response to these abnormal market conditions and rising costs, Nikko Asset Management Australia Limited (NAM AU), as Responsible Entity of the Nikko AM Australian Bond Fund (ARSN 098 736 255) (Fund), has undertaken a review of the buy sell spread of this Fund. The outcome from this review is that the sell spread of the Fund will be updated to reflect the changing costs of transacting.

What is a buy/sell spread?

When you invest in the Fund, you are issued units based on the purchase price. When you make a full or partial withdrawal from the Fund, your units will be redeemed at the prevailing redemption price. The difference between the purchase price and redemption price is known as a buy/sell spread. The buy sell spread is retained within the Fund to offset transactional and operational costs associated with buying and selling the Fund’s assets and aims to ensure the fair and consistent treatment of existing and transacting investors.

What is the new change and when does it apply?

Effective 2pm (AEST), 22 June 2020, the sell spread for the Fund will decrease. The buy spread will remain unchanged.

Old: effective 2pm (AEST) 20 May 2020 New: effective 2pm (AEST) 22 June 2020
Buy Sell Buy Sell
0.05% 0.10% 0.05% 0.05%