Investment options and concepts

Excessive trading (also known as frequent trading or market timing) is the practice of buying and selling investments frequently in an attempt to capitalize on short-term movements or pricing disparities in the market. This practice increases fund expenses, which results in higher fees and adversely affects fund performance for all shareholders invested in the fund.

Designed to protect participants from the potential negative impacts of market timing, our excessive trading policy imposes a 6/11/20 rule. If a participant makes six or more trades over one calendar quarter, they will receive a warning letter through the mail via U.S.P.S. If a participant makes 11 trades over two consecutive quarters, the participant will receive a warning letter through the mail and must send their exchange requests through the mail for the remainder of that year. If a participant reaches 20 trades in one calendar year, they will again receive a warning letter through the mail, and all future trade requests must be submitted through the mail for the remainder of that year. Multiple trades on a single day count as one trade. Trading that is deemed excessive may also result in suspension of buy exchange privileges at the request of the mutual fund or by subjective review of the Administrative Service Agency.