401kPAL - Trading Restrictions

Important Notice on Mutual Fund Investments and Redemption Fees

Mutual funds are generally intended to be long-term investment vehicles and not as a means for speculating on short-term market fluctuations. In response to Securities & Exchange Commission (SEC) regulations, mutual funds are implementing policies and procedures that are designed to prevent market timing and excessive trading. These policies include redemption fees, minimum holding periods and trading restrictions. For example, a fund may charge a redemption fee of 2% on the sale of shares held less than 180 days or a fund may, after sale from the fund, impose a waiting period before another purchase is allowed in the fund.

There is no generally applied standard as to when trading activity is excessive. Funds may consider that you have violated the excessive trading policy if it determines that you sell shares within a short period of time after buying the shares or you enter into a series of transactions that is indicative of an excessive trading pattern or strategy.

Each mutual fund company may have its own subjective definition of excessive short term trading. Each mutual fund may also choose to exempt certain types of transactions from their excessive short term trading policy. The trading policies and procedures are described in each fund’s prospectus. It is very important to read the trading policies and procedures prior to investing in the fund.