reclassification

Definition

The process of changing a mutual fund from one class designation to another, due to a change in circumstances or requirements. This often happens when a company initially issues multiple series of mutual funds, and then after a certain series of events, one class of fund is reclassified as another class. One example of this is when a back-end load fund or front-end load fund is reclassified as a no-load fund once a given amount of time has passed.

Use reclassification in a sentence

You should always try and see if there is a way that getting a reclassification could help improve your results.

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The fund underwent a reclassification process, but the underlying strengths of the fund did not suffer as a result, which was a relief.

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Given the high level of economic uncertainty that the company was dealing with, Steven wasn't surprised to see a swift reclassification of the recently issued mutual funds.

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reclamation recognised agent