Waddell & Reed, Ivy fee elimination shows ability to monitor trades

By Aleesia Forni

Columbus, Ohio, Dec. 13 - Ivy Funds and Waddell & Reed Advisors Funds will no longer impose a redemption fee, which recognizes the firms' ongoing ability to monitor and restrict trades as needed, according to a company news release.

Since 2005's adoption of SEC rule 22x-2, which requires fund boards to consider implementing redemption fees, new technology has allowed monitoring strategies to deter abusive trading.

The firms' rules, prior to the change, stated that each international fund would deduct a 2% fee from any redemption or exchange proceeds if sold or exchanged shares are held less than 30 calendar days.

For non-international funds, except the Ivy Money Market Fund, the 2% redemption fee would be deducted from any redemption or exchange proceeds if sold or exchanged shares are held less than five calendar days.

The fee change is effective Jan. 1.

Both Ivy Investment Management Co. and Waddell & Reed Investment Management Co. are based in Shawnee Mission, Kan.

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