contingent deferred sales charge

(redirected from Contingent Deferred Sales Charges)

Contingent deferred sales charge (CDSC)

The formal name for the load of a back-end load fund.

Contingent Deferred Sales Charge

The formal name for the load in a back-end load fund. A CDSC is the fee paid when a shareholder sells shares in a mutual fund within a certain number of years. That is, when an investor initially buys a share in a back-end load fund, he/she agrees to pay a third party, usually a financial institution or broker, a certain percentage of the share's value if he/she decides to sell it within five to 10 years, depending on the specific nature of the agreement. The CDSC usually declines by the year until the maximum number of years is reached. See also: B-share.

contingent deferred sales charge

A mutual fund redemption fee that is reduced or eliminated for specified holding periods. For example, a fund might charge a 6% redemption fee for a holding period of less than one year, a 5% fee for a holding period of one to two years, and so forth. Mutual funds with a contingent deferred sales charge also generally levy an annual 12b-1 fee.
References in periodicals archive ?
Mutual funds do not provide a similar waiver when contingent deferred sales charges still apply to a mutual fund account whose owner needs to sell some shares to fund the costs of such a stay.
Without a full explanation of higher annual fees, contingent deferred sales charges and "breakpoints" for quantity discounts, a customer might naturally assume that no front-end cost is the way to go.
The product carries no charges at the time of purchase, no surrender fees, no contingent deferred sales charges and no annual contract administrative charge.
In contrast to traditional back-end sales loads, contingent deferred sales charges usually apply only for the first few years that you own a fund; then they disappear.
The accountant must familiarize him- or herself with the difference between front loads, back loads, contingent deferred sales charges, 12b-1 fees, management fees and various classes of stock that an investor can purchase in the same mutual fund.
Withdrawals or surrenders may be subject to contingent deferred sales charges.
The asset-based fee reductions are available to service programs without contingent deferred sales charges.
In the event the owner of the annuity wishes to redeem the annuity prior to this period, similar to B share annuities, the sale is subject to contingent deferred sales charges to cover costs.
The notes are collateralized by HMFFT 2004-1's participation rights to receive certain asset-based sales charges (ABSC or 12b-1 fees), contingent deferred sales charges (CDSC), and shareholder servicing fees (SSF) for the distribution and servicing of class B mutual fund shares sold to investors.
The offer includes a waiver of all contingent deferred sales charges (CDSCs) on all A and C share plans; the waiver of a plan termination fee; and the waiver of a 2010 billing fee for plans that submit account opening paperwork by April 1, 2010.
The notes are collateralized by HMFFT 2003-2's participation rights to receive certain asset-based sales charges (ABSC or 12b-1 fees), contingent deferred sales charges (CDSC), and shareholder servicing fees (SSF) for the distribution and servicing of class B shares sold to mutual fund investors between Nov.
The HMFFT 2003-2 notes are collateralized by the trust's participation rights to receive certain asset-based sales charges (ABSC or 12b-1 fees), contingent deferred sales charges (CDSC), and shareholder servicing fees (SSF) for the distribution and servicing of class B shares sold to mutual fund investors between Nov.