What is the meaning of a ‘Buy/Sell spread’?
When a member buys or sells units, this initiates a need for legalsuper to trade the underlying assets that relate to the particular investment choice. 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 members each time they invest or withdraw funds. The buy-sell spread is retained by the Fund and contributes towards the transaction costs associated with the Fund buying or selling assets.
The spread ensures that those members 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.
What is the current Buy/Sell spread for each of legalsuper’s investment options?
The values listed below relate to legalsuper’s accumulation investment choices (Employer Sponsored and Self Employed Divisions) as well as legalsuper’s Pension investment choices.
The Buy/Sell Spread listed below is added (+) to the net asset value price (NAV) of the underlying assets per unit to determine a ‘Buy price’. The Buy/Sell Spread is subtracted (-) from the NAV to determine a ‘Sell price’.
|
Investment choice
|
Buy/Sell Spread
|
|
Cash
|
0.00%
|
|
Enhanced cash
|
0.00%
|
|
Conservative
|
0.05%
|
|
Balanced
|
0.30%
|
|
Growth
|
0.40%
|
|
Assertive
|
0.30%
|
|
Aggressive
|
0.30%
|
|
Australian equities
|
0.30%
|
|
Overseas equities
|
0.30%
|
|
Socially responsible investment
|
0.30%
|