Which statement is true about Class B fund shares?

• A. They have back-end loads, which decline annually and are paid at redemption.
• B. They have front-end loads paid at purchase.
• C. They have no loads and no CDSC.
• D. They never charge 12b-1 fees.

Answer: (A)

Class B shares are built with a back-end load called a contingent deferred sales charge that applies if you redeem within the specified holding period and declines each year the investment is held. Because this charge is assessed at redemption and fades over time, it’s described as a back-end load. This design contrasts with front-end loads (Class A) paid at purchase and with Class C shares that typically have a level load and ongoing 12b-1 fees. The statement that Class B shares have no loads and no CDSC is incorrect, and the idea that they never charge 12b-1 fees is also not accurate. The key idea is that the back-end load on Class B shares declines over time and is paid when you redeem.