Buy-Sell Spread

What is the meaning of a ‘buy-sell spread’?

When a member makes changes to their investments, this triggers a process to trade the underlying assets in a particular investment choice. This trading generates transaction costs, such as brokerage, which are paid for by legalsuper. Other members may also be trading at the same time, which can help offset some these costs. legalsuper is obliged to recover the net transaction costs so that they are not imposed on other members who did not transact.

A buy-sell spread is the difference between entry price and exit price of an investment option, and is a cost incurred by members each time they invest into or withdraw from an investment option. The proceeds from a buy-sell spread is added to the assets of investment option, thereby repaying the other members invested in that option for costs incurred. 

The buy-sell spread is quite different from a management fee in that its sole purpose is to preserve equity between members.  

What is the current buy-sell spread for each of legalsuper’s investment options*?

The buy-sell spreads listed below are for legalsuper’s accumulation investment choices (Employer sponsored and Personal Divisions) as well as legalsuper’s Pension investment choices.

Investment choice Buy-sell Spread
MySuper balanced** 0.16%
Cash 0.00%
Enhanced cash 0.00%
Conservative 0.08%
Conservative balanced 0.12%
Balanced index 0.20%
Balanced 0.16%
Growth 0.17%
High growth 0.19%
Australian shares 0.20%
Overseas shares 0.19%
Balanced socially responsible 0.22%

 *         Buy-sell spreads applicable from 3 March 2017 and are subject to future change

**         MySuper balanced is only available to Employer-sponsored members of legalsuper