Delaware Investments gives details on class C exchanges by brokers

By Toni Weeks

San Diego, March 21 - Delaware Investments Family of Funds provided details about class C share exchange privileges for brokers in a 497 filing with the Securities and Exchange Commission.

For each of Delaware's series of funds, class C shares purchased by accounts participating in some programs may be exchanged by the financial intermediary for either class A shares or institutional class shares of the same fund if certain conditions are met, including the program's eligibility to purchase class A or institutional class shares of the fund.

If allowed, exchanges will be made on the basis of the net asset value of the share without a sales load, fee or other charge.

Holders of class C shares subject to a contingent deferred sales charge are generally not eligible for this type of exchange until the fee period has expired, usually one year after the purchase of class C shares.

In addition, if a shareholder of institutional class shares is no longer participating in the program, the financial intermediary may exchange all of the shareholder's institutional class shares for class C shares of the same fund based on the relative net asset value of the shares and without a sales load or fee.

Exchanges of class C shares for class A or institutional class shares of the same fund or the exchange of institutional class shares for class C shares of the same fund will be tax-free for federal income tax purposes.

Philadelphia-based Delaware Investments, a member of Macquarie Group, offers a wide variety of mutual funds.

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