Important information regarding current market conditions and changing fees and costs

This is to advise that buy-sell spreads for a number of our investment options are changing daily due to increased transaction costs associated with the current market volatility

The buy-sell spread is a type of transaction cost incurred when buying and selling the underlying assets of the investment option. The purpose of the buy-sell spread is to ensure that only those transacting investors incur the costs associated with buying and selling the assets. The investment options’ fund manager and MLC do not profit from these spreads and buy-sell spreads are adjusted over time in line with changes in transactions costs experienced by the fund manager.

The current market conditions are extremely volatile due to the Coronavirus (COVID-19) pandemic. This has been the case particularly in fixed income markets, where trading costs have risen significantly. In addition, funds employing currency hedging have also been impacted with an increase in foreign exchange transaction costs. Due to the increase in transaction costs, buy-sell spreads have also increased for a number of fund managers.

Buy-sell spreads are located within the investment menu of the products PDS (Product Disclosure Statement) however given that fund manager buy/sell spreads are changing on frequent basis we are moving this information online in order to provide you with the most up to date information available.

So that you can keep up to date with the latest available information on your MasterKey investment option’s buy-sell spread please refer to mlc.com.au/buysellspreads before transacting.