contingent deferred sales charge

(redirected from Deferred Sales Charges)

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.
Mentioned in ?
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.
18 reasons for making indexed UL part of your portfolio
Reflects the applicable contingent deferred sales charges through year six, and Class A expenses for years nine and ten (because Class B shares automatically convert to Class A shares after eight years).
Chapter 9: Mutual funds
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 cost involved with this strategy includes the typical expenses associated with variable annuities, such as mortality and expense risk charges, administrative charges, rider fees, and deferred sales charges.
Leaving IRAs to charity
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
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.
Mutual funds: guiding your clients through the many hazards of loaded options
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. They become effective after a review process, which includes a monthly analysis of each plan's asset levels.
Hartford Life Reduces Fees in 401(k) Plans
Variable annuity contracts characterized by deferred sales charges, which typically range from 5 percent to 7 percent in the first year, and subsequently decline to zero after five to seven years.
Do you know these annuity terms?
Contingent deferred sales charge (4%-8% of withdrawals).
Nothing comes free

Financial browser ?
Full browser ?