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buy/sell spread?

Discussion in 'Managed Funds & Index Funds' started by craig, 26th Mar, 2007.

  1. craig

    craig Member

    Joined:
    18th Nov, 2006
    Posts:
    19
    Location:
    Brisbane, Qld
    Hi.

    The buy/sell spread of Navra Retail has been .0034 for a while.
    Today it is .0036
    The web page says it is .0030

    Does anyone know which is right as I'm confused.
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,623
    Location:
    Sydney, Australia
    Yup, it's still 0.3% ... it's a percentage, and the actual amount if affects the unit price increases as the unit price increases.

    For example (as of 23rd March):

    Application price: 1.1835
    Redemption price: 1.1799

    Unit price: 1.1817

    Difference between unit price and application/redemption prices: 0.0018 (or 0.0036 spread) = approx 0.15% (or 0.3% spread).

    :D
     
  3. craig

    craig Member

    Joined:
    18th Nov, 2006
    Posts:
    19
    Location:
    Brisbane, Qld
    Thanks, its clear now. I got caught out thinking it was a flat rate, i.e. a unit price of 1. :eek: