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Prospectus Disclosure — Recommended Revisions to Form N-1A1
2. Shareholder Fees.
(a)(iv) If the Fund offers arrangements under which a typical investor in the Fund may qualify for breakpoints in, or elimination of, sales charges (loads), the Fund may include a reference to such arrangements in a footnote to the table.
(a) Sales Loads.
(2) Briefly describe, in plain English pursuant to Rule 421(d) under the Securities Act, any arrangements under which a typical investor in the Fund may qualify for breakpoints in, or elimination of, sales loads (e.g., letters of intent, accumulation plans, dividend reinvestment plans, withdrawal plans, exchange privileges, employee benefit plans, and redemption reinvestment plans). If the Fund has a website, state that information about sales load breakpoints also is available on the Fund’s website and provide the website address. If applicable, state that additional information concerning sales load breakpoints is available in the Fund’s SAI or from a broker or financial intermediary through which shares of the fund may be purchased or sold.
Instruction. In describing any sales load breakpoints offered by the Fund, include in proximity to the table required by Item 8(a)(1):
1. A brief summary of relevant information concerning an investor’s eligibility for sales load breakpoints including: (i) a description or list of the type(s) of accounts (e.g., retirement accounts, accounts held at other broker-dealers), account holders (e.g., immediate family members, family trust accounts, solely-controlled business accounts), and fund holdings (e.g., funds held within the same complex) that may be aggregated for purposes of determining eligibility for sales load breakpoints; and (ii) how such accounts will be valued (i.e., historical cost, net asset value (NAV), or public offering price (POP)) for purposes of computing breakpoint eligibility.
2. If the Fund requires an investor to produce documentation (e.g., verification of other holdings by the investor or of related persons or accounts that may be aggregated for purposes of determining breakpoint eligibility, or information documenting historical costs) either to the Fund or to a financial intermediary in order for the investor to take advantage of the Fund’s sales load breakpoints, a prominent statement informing investors of their responsibility to provide this documentation at the time of purchase to the Fund or to the investor’s financial intermediary.
1 The proposed revisions to Item 3 would add a new instruction to this item; the proposed revisions to Item 8 would replace the existing Item 8(a)(2) with the Institute’s proposed language and add a new Instruction to immediately follow this revised item.