Enhancement of unit-holders rights in case of any material change impacting funds category and investment objective or other key aspects such as management fee or back-end load
Also, the fund does not provide instant liquidity like bank accounts because a back-end load
structure is associated with the fund in case the investor decides to withdraw his funds prior to the two-year life of the fund.
A back-end load
might be charged when money is withdrawn from a fund; sometimes the percentage deducted goes down the longer the money is kept in the fund.
They come in two varieties: (1) a front-end load, assessed as a percentage of the contribution, and (2) a back-end load
, commonly referred to as surrender charges, assessed as a percentage of the amount withdrawn.
As part of the merger process, fund managers are required to disclose details of assets and liabilities of fund along with a statement of material facts encompassing investment policy, provisioning policy, any restrictions on unit holders, post merger management fee, applicable front-end and back-end load
and treatment of un-amortized cost.
5% of your invested savings, and perhaps you've even grasped the difference between a front-end and back-end load
down cold (see "Nothing Comes Free," Moneywise, May 1998).
Today, an investor who buys a load fund has to decide among front-end load funds, back-end load
funds, funds with 12b-1 fees, funds with 12b-1 fees and declining redemption fees and so forth.
Most back-end load
fees apply if a fund holder sells shares within five years.
25%, and Class C shares will carry a maximum back-end load
fee of 1%.
In their review, Fund Advisor determined that one of the main reasons why Class B share classes have underperfomed is due to the B shares having an average back-end load
Known as a back-end load
financing pioneer in the mutual fund industry, Constellation also offers financing and risk management for variable annuities, single premium deferred annuities, variable universal life insurance, bank-owned life insurance, company-owned life insurance, unit trusts, and public and private limited partnerships.
B-Share--Annuities with traditional back-end loads
(surrender charge period is typically 7-8 years or longer)