UPDATE TO BUY/SELL SPREADS

Posted on: March 23rd, 2020

Category: News

Equity Trustees Limited, as the Responsible Entity of the Premium Asia Income Fund is actively monitoring current market liquidity and transaction costs.

Recent market events and the sustained volatility in fixed income markets have led to large movements in transaction costs. As a result, the Responsible Entity will adjust the buy/sell spreads for the Premium Asia Income Fund.

Why are we making these changes?

A buy spread may be charged to you when entering the fund (buying units) and a sell spread may be charged to you when exiting the fund (selling units). The buy/sell spread is not a fee paid to the Responsible Entity but rather, it is paid to the fund to cover transactional costs incurred when applications and redemptions are made.

The purpose of the buy/sell spread is to ensure that only those investors transacting in the fund’s units at a particular time bear the Fund’s cost of buying and selling the fund’s assets as a consequence of their transaction. There is no additional buy/sell spread charged to you by the Underlying Fund.

We regularly review the buy/sell spreads of the funds to ensure they represent, as closely as possible, the actual costs incurred in transacting.

What are the changes?

Effective 20 March 2020, buy/sell spreads will be updated as per below:

Fund name: Premium Asia Income Fund

ARSN: 151 270 423

Previous Buy/Sell spread: 0.50%/0.50%

Buy/Sell spread effective 20 March: 0.50%/2.50%

When will the change come into effect?

These changes will be effective as of 20 March 2020.

The Responsible Entity will continue to monitor market liquidity and transaction costs on a daily basis and adjust the buy/sell spreads accordingly.

What do I need to do?

You do not need to do anything.

Where can I find out more information?

Updates to buy/sell spreads are made available to unitholders in the Product Disclosure Statement of the Premium Asia Income Fund. This document can be found on:

http://www.premiumchinafunds.com.au/funds/premium-asia-income-fund.html

 

ABOUT PREMIUM CHINA FUNDS MANAGEMENT

Premium China Funds Management (PCFM) is a boutique funds management group providing specialist Asian equity and fixed-income funds to both Australian and New Zealand investors.

Capturing the growing economies and influence of emerging Asia, PCFM has developed 4 actively managed funds – the Premium China Fund, Premium Asia Fund, Premium Asia Property Fund and Premium Asia Income Fund.

The funds are managed by a large and experienced team with offices in Hong Kong, Shanghai, Singapore and Kuala Lumpur. The directors and investment managers of Premium and its fund offerings have extensive knowledge in Asian equity and credit markets, wealth management, and other financial services.


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