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.

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.

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The next most common are Deferred Sales Charges, or Back End Load, which is when the fee is enacted when the shareholder sells the fund shares.

United States : UNDERSTANDING mutual funds and load fees

There are charges and expenses associated with annuities, such as deferred sales charges for early withdrawals.

Securian Introduces Lifetime Income Benefit for MultiOption Variable Annuity

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.

On the Kiefer order

Spurring adoption of Rule 12b-1 plans during its early years was a development not anticipated by either the SEC or the industry (110) when the rule was adopted: use of 12b-1 fees in connection with fund classes featuring so-called "contingent deferred sales charges," often called "CDSCs" or "CDSLs," (111) used to market load funds.

V. Rule 12b-1 in practice

The product carries no charges at the time of purchase, no surrender fees, no contingent deferred sales charges and no annual contract administrative charge.

Safeco Launches Variable Annuity Marketed by Advisers

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.

Nothing comes free

We support the immediate ban of contingent deferred sales charges on mutual funds.

Investment Firm Registers as Subversive Organization

Also investors were sold Class "B" mutual fund shares that carry deferred sales charges (loads) and higher internal expenses than Class "A" shares.

Bentonville brokerage accused of 'bait and switch'. (In Full View)

The asset-based fee reductions are available to service programs without contingent deferred sales charges.

Hartford Life Reduces Fees in 401(k) Plans

Withdrawals may be subject to deferred sales charges, and withdrawals before age 59u may be subject to IRS penalties and income tax.

Securian Unveils New GLWB with MultiOption Variable Annuities

The Board also approved the waiver of contingent deferred sales charges ("CDSCs") upon redemptions of the Fund's shares on or after May 5, 2006.

AllianceBernstein Multi-Market Strategy, Inc. Fund Liquidation

Unlike Class A shares, Class B shares are also subject to contingent deferred sales charges (CDSCs) for a period of time, generally six years.

NASD Fines Citigroup Global Markets, American Express and Chase Investment Services More Than $21 Million for Improper Sales of Class B and C Shares of Mutual Funds; Firms to Offer Remediation on Over 275,000 Transactions to Over 50,000 Households