Close Window

Redemption Fee Update

Redemption fees are charged by mutual fund companies to reimburse some funds for the costs associated with excessive trading. These fees are charged to all investors in these funds and not just to investments made through Ohio Deferred Compensation.
Vanguard has required the Program to collect redemption fees on two of their funds since April 1, 2006. Effective September 1, 2006, PIMCO will require a 2% redemption fee on the shares exchanged out of the Total Return Fund that are held for less than seven days. A table showing the Program funds that currently require a redemption fee follows:                                                                                             

            
Remember that shares purchased by payroll deferrals are exempt from redemption fees when exchanged out. Only shares purchased by exchanges into these funds might be charged redemption fees when these same shares are subsequently exchanged out. The Program will exchange out the oldest shares that you own, before newer purchases, in order to minimize these fees to you. Other mutual fund companies are still determining the need for redemption fees in their funds, and it is possible more Program investment options will charge these fees in the future. If you have questions about redemption fees, please call our Service Center, or check this web site for more up-to-date information.