contingent deferred sales charge

(redirected from Backload)
Also found in: Dictionary.

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 ?
Although federal legislation said PMA activities were to be "consistent with sound business practices," the agencies were allowed to pay simple rather than compound interest, to backload the payments, to repay the debt having the highest rates first, and to cover any additional construction costs under the original low-interest loan.
Production manufacturing overhead costs are incurred on several activities, such as start station, axial insertion, dip insertion, manual insertion, wave solder, backload, testing and defect analysis.
Fitch notes that the authority has started to slow debt amortization and moderately backload principal repayment; however, it is Fitch's expectation that the authority will continue to adjust its levels of capital spending to generate DSCRs consistent with the current rating.
iv) Discharge and backload cargo at offshore location(s).
5-billion-dollar Kerry-Lugar-Berman aid package, especially in sectors where "serious flaws in public administration are the binding constraints to success, it would be better to backload the bulk of this extraordinary aid investment, to wait until critical policy questions are resolved.
hits the beach at Kuwait Naval Base during a backload of Marines assigned to the 13th Marine Expeditionary Unit.
CDS-60 assumed tactical control of Gonzalez and USS Nashville (LPD 13), which chopped into the JOA on the same day after quickly completing the backload of its 24th Marine Expeditionary Unit (MEU) component in Jordan.
The current debate in the United States on the booming residential housing market and the appearance of "exotic" mortgage products that backload repayments hinges on the correct pricing of long-term cash flows.
The school is making the switch from natural grass to an all-weather, synthetic turf, but due to a backload of orders from schools across the nation, companies that install the turf have been unable to meet original deadlines for installation.
One way to contain labor costs under negotiated settlements is to backload the agreement.
For firms looking to choose an FCM, the most important decision driver is the capability to onboard clients and backload existing trades, followed in importance by collateral / margin services.