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About buy sell spread
When an investor buys or sells units in a fund, the investment manager trades the underlying assets of that fund to either invest the money or provide cash for the withdrawal. This trading generates transaction costs, such as brokerage, which are paid for by the fund.
The buy-sell spread is the difference between a fund's entry price and exit price and is a cost incurred by investors each time they invest or withdraw funds. The buy-sell spread is retained by the fund (it is not a fee paid to BT) and contributes towards the transaction costs associated with the fund buying or selling assets.
The spread ensures that those investors joining or leaving the fund contribute towards these transaction costs and other investors who are not joining or leaving at that particular time are not disadvantaged.
A buy-sell spread is expressed as a percentage of the net value of the Fund's assets. The buy-sell spreads for our funds are reviewed annually and can change from time to time. Any changes are updated on this website.
BT Lifetime Super - Employer Plan unit price rounding
Unit price rounding is an additional cost to an investor and is incurred whenever an investor invests or withdraws funds. As the cost is built into the unit price, the unit price rounding will not be shown as a transaction on any statement we send an investor.
The unit price is rounded up for entry prices and rounded down for exit prices. Prices are rounded up to the nearest quarter cent for all BT branded Investment Options, (except for the BT Cash and the BT Investor Protected Investment Options, which are not rounded), the Westpac Balanced Investment Options, the Partner Investment Options and the Multi-manager Investment Options. For all other Investment Options the level of rounding used will vary. Please refer to the BT Lifetime Super - Employer Plan Product Disclosure Statement (PDS) for more information.
The unit price rounding is retained by the Investment Option (it is not a fee paid to us) and represents a contribution to the transaction costs (such as brokerage) incurred when the Investment Option is purchasing or selling underlying assets. The purpose of imposing the unit price rounding is to ensure these costs are fairly borne by investors joining and leaving the Investment Option, and that other investors (ie those not joining or leaving at a particular time), are not disadvantaged.
Unit price rounding is stated as a percentage of the net value of the relevant Investment Option’s assets. Generally, half of the cost of the unit price rounding is incurred when an investor invests in the relevant Investment Option, and the balance is incurred when an investor withdraws from the Investment Option.
We may vary the unit price rounding for any Investment Option from time to time and the updated information will be posted on BT Online. Notice will not ordinarily be provided. We may also replace the unit price rounding with a ‘buy-sell spread’ to cover the transactions costs.