Program Exchange Policies

Short-term trading increases fund expenses and reduces the investment return of long-term investors. To prevent this, Ohio Deferred Compensation has adopted the following exchange policies:

  1. Any participant who requests four exchanges in any 45-day period will lose electronic trading privileges and will be restricted to one mail-in exchange every five days for the following 12-month period.
  2. The Executive Director has the discretion to immediately suspend electronic trading privileges and restrict exchanges to one mail-in exchange every five days up to a 12-month period if excessive trading jeopardizes the Program's trading rights in a specific fund.
  3. SEC Rule 22c-2 generally requires mutual fund boards to consider whether to impose a fee up to 2 percent of the value of shares redeemed shortly after their purchase. The rule also generally requires a fund to enter into a written agreement with each of its "financial intermediaries" (such as Ohio DC) under which the financial intermediary agrees to:
    • provide, at the fund's request, identity and transaction information about shareholders who hold their shares through an account with the intermediary, and,
    • execute instructions from the fund to restrict or prohibit future purchases or exchanges.

View the Fund Prospectuses and Profiles to read more about each fund’s requirements regarding short-term trading. Also review the separate document describing Fidelity’s Excessive Trading Policy.

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