contingent deferred sales charge

(redirected from CDSL)
Also found in: Dictionary, Thesaurus, Medical, Acronyms, Encyclopedia.

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 ?
He further added, "Although DTCC and CDSL have different legislative frameworks and settlement systems; it would be beneficial for both depositories to share their experiences to reduce risks and to enhance the efficiency of systems.
As a depository, CDSL maintains electronic records of securities held and transacted by beneficial owners.
Pointing out that this is CGI's largest acquisition ever, Serge Godin, Chairman of the Board and Chief Executive Officer, stated that the integration of CDSL gives CGI an order book totalling over $400 million and an asset base capable of generating more than $260 million in annual revenues.
With the purchase of CDSL, CGI has some 2,600 professionals offering the full range of information technology services.
CDSL is Canada's largest independent provider of retail banking services and electronic commerce/switching services, primarily to the Canadian credit union sector.
CDSL is owned approximately 80 percent by The Co-operators Group, which is exiting the IT business to focus on its core insurance operations, and approximately 20 percent by Credit Union Central of Saskatchewan, CUMIS Insurance and a number of Ontario-based credit unions.
CGI is acquiring CDSL for $16 million cash, plus 200,000 Class A subordinate shares carrying one vote per share, and 745,000 first preferred shares, Series 3 valued at $23.
We are pleased with this new expression of confidence," said Ross Marsden, President and CEO of CDSL Canada Limited.