Transparent Value Trust says fee may not apply to some redemptions

By Susanna Moon

Chicago, Sept. 12 - Transparent Value Trust revised its statement on redemption fees, saying that a fee may not apply to some categories of redemptions, such as those that a fund reasonably believes may not raise frequent trading or market timing concerns, according to a 497 filing with the Securities and Exchange Commission.

These categories include the following:

• Redemptions by participants in certain group retirement plans whose processing systems are incapable of properly applying the redemption fee to underlying shareholders;

• Redemptions resulting from certain transfers upon the death of a shareholder;

• Redemptions by certain pension plans as required by law or by regulatory authorities;

• Systematic redemptions;

• Retirement loans and withdrawals; and

• Redemptions by participants in investment programs administered by financial intermediaries where the parameters of the program require periodic rebalancing or other asset allocation trading.

The redemption fee will not be applied on redemptions made because the account does not meet the applicable minimum account size, or because the funds are unable to verify the account holder's identity within a reasonable time after the account is opened.

Each fund reserves the right to modify or eliminate the redemption fees or waivers at any time.

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