exchange privilege

Exchange privilege

A mutual fund shareholder's right to switch from one fund to another within one fund family, usually at no additional charge.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Exchange Privilege

The right of a shareholder in a mutual fund to sell his/her shares and buy shares in another mutual fund within the same fund family, generally with no additional load (or sales fee). Different mutual funds within a fund family have different investment goals and/or strategies. However, because the same company manages the whole group, individual investors may generally exercise the exchange privilege to move money from one fund to another without extra commissions or fees, or with only a nominal charge. The exchange privilege allows investors to be flexible in their own investment goals according to their particular needs at a given time.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

exchange privilege

The right to exchange shares in one mutual fund for shares in another fund managed by the same firm. The rate at which shares are exchanged is determined by differences in relative values. There is usually a nominal charge for each transfer. This privilege is designed to allow investors to move their money among funds without incurring additional sales fees as their investment goals change. Also called conversion privilege.
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 ?
As an active trader and technical analysis convert, I believe that there is nothing more powerful than the income tax-free and commission-free daily exchange privilege in the VA platform.
* New Guaranteed Exchange Privilege: ability to exchange up to the policy's specified amount to an accumulation type UL product without evidence of insurability or surrender charge
Now that you are evaluated 100% disabled, you are entitled to a commissary and exchange privilege card.
In addition, since the appearance of Frost (1971), Cecchetti (1988) has published a series of Treasury security yields that have been adjusted for an 'exchange privilege," a common feature of the securities of the time.
* Extend military commissary and exchange privileges to service-connected disabled veterans and their dependents.
First are commissary and exchange privileges. Normally Soldiers involuntarily separated are no longer entitled to commissary and exchange privileges.
On top of the reduced rates and bonus savings, hotels will offer extra values like resort credits, resort exchange privileges, kids stay free offers, golf discounts and more.
A seven-night package during these dates starts at USD1,399.99 per person, based on double occupancy, and includes roundtrip, non-stop Apple-exclusive vacation flight from Chicago O'Hare to Puerto Vallarta, Mexico; all-inclusive accommodations at the resort; roundtrip airport/hotel transfers; Bears fans private welcome party and autograph session; special group activities and surprises with the Bears hosts; all meals, snacks and unlimited domestic and select imported drinks including in-room mini bar and liquor dispenser; free Wi-Fi in the lobby area; exchange privileges with neighboring Riu Vallarta and Riu Jalisco; and daily entertainment and non-motorized water sports.
Partners at different age and experience levels exchange privileges and responsibilities as they reconfigure their roles for the firm's imminent transition to the next group of leaders.
Volunteer libraries also do not have exchange privileges with other libraries.
This is well illustrated in the case of modern-day Russia, where a rapidly inflating local currency lost some of its medium of exchange privileges in the modern era of flexible exchange rates.