Rydex Dynamic Funds Updates Ameriprise Financial Sales Charge Policies

The revision affects waivers and reductions for Class A and C shares, clarifying fund access and fees.

November 06, 2024

Streamlining Investor Access

Rydex Dynamic Funds has introduced updated policies for sales charges related to investments facilitated through Ameriprise Financial. These changes, effective immediately, provide new clarity and flexibility for shareholders navigating fund investments under the Class A and Class C share structures. The revisions are aimed at simplifying transaction processes and adapting to investor needs.

Under the updated terms, investors purchasing Class A shares through Ameriprise Financial can access a range of charge reductions. These include transaction size breakpoints, rights of accumulation, and letters of intent, offering ways to manage fees based on the size and timing of their investments. The changes also expand the scenarios under which charges can be waived entirely, aligning with specific investor circumstances and account types.

Key among these waivers are provisions for employer-sponsored retirement plans, including 401(k)s and other defined benefit plans. Dividend reinvestments within the same fund and exchanges of Class C shares within specific holding periods also qualify for charge waivers. Additionally, purchases by employees of Ameriprise Financial and their families, as well as those made through qualified accounts, are explicitly included in the waiver eligibility criteria.

Enhanced Waivers for CDSC Fees

For Class A and C shares, the updated policies address contingent deferred sales charges (CDSCs), offering waivers in defined situations. Redemptions due to events like shareholder death or disability, as well as systematic withdrawal plans and required minimum distributions for retirement accounts, are eligible for fee exemptions. Rights of reinstatement and redemptions tied to the correction of excess IRA contributions also feature prominently in the updated terms.

These changes aim to make fund investments more accessible while providing transparency in fee structures. By outlining specific eligibility criteria for waivers and reductions, Rydex Dynamic Funds seeks to enhance investor confidence and align its offerings with evolving market expectations. The revisions underscore the fund's commitment to adapting its policies in ways that prioritize shareholder convenience and flexibility.

Investors are encouraged to consult with their financial advisors to understand how the revised terms may impact their individual investment strategies and portfolios.