Class A, B & C Share Loads — Q&A

Class A: at purchase (front-end). Class B: at redemption (back-end/CDSC). Class C: ongoing level load via 12b-1 fees rather than a one-time charge.

A letter of intent (LOI) pledging to invest the $5,000 shortfall within 13 months, qualifying for the lower charge immediately.

Ten months. Backdating does not extend the 13-month LOI period.

A violation when a representative fails to notify a customer they are close to a breakpoint and could qualify for a lower sales charge. Subject to fines and/or suspensions.

No. Investment clubs are assessed the highest possible sales charge and are not granted breakpoints.

The contingent deferred sales charge declines the longer shares are held, eventually reaching 0% (e.g., 0% after 5+ years in the ABC example). Many funds convert Class B to Class A after the CDSC period.

Class A. Despite no back-end load on Class B after the CDSC period, higher ongoing 12b-1 fees (1.00% vs. 0.25%) make Class A cheaper over time (4.50% total vs. 10.00% in the worked example).

Distribution fees up to 0.75%, service fees up to 0.25%, for a 1% annual maximum total.

No. Ongoing 12b-1 fees above 0.25% prevent “no load” marketing even if there is no front-end or back-end sales charge.

7.25% (reduced from 8.5%) to prevent extraordinary combined fee schedules.