contingent deferred sales charge

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Contingent deferred sales charge (CDSC)

The formal name for the load of a back-end load fund.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
* B shares have a 12b-1 fee of 1.00%, convert to A shares after the end of the eighth year, have an initial CDSC of 5.00% followed by successive levels of 4.00%, 3.00%, 3.00%, 2.00%, and 1.00% over the next five years, and have no CDSC starting in the seventh year;
The DITC is specifically charged with evaluating the implementation of MoD policies on the training environments for new recruits and trainees (those receiving professional and technical training) and examining the main issues identified in the DHALI grid; DHALI is the name given to the collective recommendations on welfare and duty of care in the armed forces made by three reports: one by the Director of Operational Capability, one by the CDSC and the ALI's Safer training.
Businesses will be required to submit compensation plans to the CDSC and provide compensation accordingly to the consumers in question.
The local authorities currently have responsibility for inputting the microbiological results and associated sample information into the WFMF database and electronically transmitting the data to CDSC Wales, where it is collated for storage and analysis.
For example, under the CDSC option, a 5% redemption fee is subtracted to determine the investment value at the end of the first year, while a 1% redemption fee is subtracted for a holding period of five years.
There is also a CDSC to the shareholder, but it is typically only 1% for one year.
The Nairobi Securities Exchange (NSE) and the Central Depository and Settlement Corporation (CDSC), which the Treasury has mandated to market the bond at a small fee, last week pledged to conduct media campaigns this week.Analysts said marketing should have kicked off so that the investing public, the main targets, buy into it and drive the national savings.
R6 shares are available at net asset value (NAV), with no front-end sales charges (CDSC) or 12b-1 fees.
The NSE's Market and Product Development Department came up with a concept for a Growth Enterprise Market Segment and, along with the Capital Markets Authority (CMA) and the Central Depository and Settlement Corporation (CDSC), they developed proposals for the regulation of the market alongside the NSE's Compliance and Legal Departments.
The East African Securities Exchanges Association (Easea), which brings together the region's stock exchanges and Kenya's Central Depository and Settlements Corporation (CDSC), now wants IPOs to be denominated in each country's currency to protect investors against high exchange rates.
"With the Pacific Innovations CDSC at only three years, clients elected the shorter CDSC even though it had a slightly higher M&E fee.