Our estimate of the costs that a fund incurs when it buys or sells assets is reflected in the buy-and-sell spreads, which adjust the unit price of a fund.
Spreads improve fairness between transacting and non-transacting members. You don't want to pay someone else's costs when they transact in our funds. In the same way, they don't want to pay for yours when you're transacting.
In the BNZ KiwiSaver Scheme, YouWealth, and Private Wealth Series, investors are subject to buy and sell spreads.

Buy and sell spreads refer to the difference between the buying and selling prices of financial instruments such as stocks, bonds, or commodities. These spreads are a fundamental concept in financial markets and play a crucial role in determining transaction costs for investors.

The buy spread represents the variation between the market price at which an investor can purchase an asset and the higher price at which the asset can be sold immediately. On the other hand, the sell spread signifies the discrepancy between the selling price (the amount a seller receives) and the lower market price at which the same asset can be repurchased. The buy and sell spreads collectively constitute the total transaction cost associated with trading a particular asset.

Wider spreads typically indicate higher transaction costs, making it more challenging for investors to generate profits. Market conditions, liquidity, and the nature of the asset itself influence the size of these spreads. In highly liquid markets with numerous buyers and sellers, spreads tend to be narrower, while less liquid markets may exhibit wider spreads. Understanding buy and sell spreads is essential for investors to make informed decisions, manage costs, and optimize their trading strategies in the dynamic landscape of financial markets.