Reducing sales charges on Class A, 529-A and ABLE-A shares
Investors can reduce up-front sales charges with larger purchase amounts and account values.
Investors or financial professionals should notify American Funds when a purchase is eligible for a reduced sales charge; otherwise, the maximum sales charge may be applied.
Sales charges and breakpoints
Sales charges and breakpoints for Class A shares
Equity fund sales charges
|
|
|---|---|
Purchase amount and account value |
Growth funds |
Less than $25,000 |
5.75% |
$25,000 to $50,000 |
5.00% |
$50,000 to $100,000 |
4.50% |
$100,000 to $250,000 |
3.50% |
$250,000 to $500,000 |
2.50% |
$500,000 to $750,000 |
2.00% |
$750,000 to $1 million |
1.50% |
$1 million and above |
0.00%* |
Retirement income portfolio series fund sales charge
|
|
|---|---|
Purchase amount and account value |
All American Funds® Retirement Income Portfolio Series funds |
Less than $25,000 |
5.75% |
$25,000 to $50,000 |
5.00% |
$50,000 to $100,000 |
4.50% |
$100,000 to $250,000 |
3.50% |
$250,000 to $500,000 |
2.50% |
$500,000 to $750,000 |
2.00% |
$750,000 to $1 million |
1.50% |
$1 million and above |
0.00%* |
Retirement target date fund sales charge
|
|
|---|---|
Purchase amount and account value |
All American Funds Target Date Retirement Series® funds |
Less than $25,000 |
5.75% |
$25,000 to $50,000 |
5.00% |
$50,000 to $100,000 |
4.50% |
$100,000 to $250,000 |
3.50% |
$250,000 to $500,000 |
2.50% |
$500,000 to $750,000 |
2.00% |
$750,000 to $1 million |
1.50% |
$1 million and above |
0.00%* |
There is no sales charge on purchases of American Funds® U.S. Government Money Market Fund Class A shares.
Sales charges and breakpoints for Class 529-A and ABLE-A shares
Equity fund sales charges
|
|
|---|---|
Purchase amount and account value |
Growth funds |
Less than $25,000 |
3.50% |
$25,000 to $50,000 |
3.50% |
$50,000 to $100,000 |
3.50% |
$100,000 to $250,000 |
3.50% |
$250,000 to $500,000 |
2.50% |
$500,000 to $750,000 |
2.00% |
$750,000 to $1 million |
1.50% |
$1 million and above |
0.00%* |
There is no sales charge on purchases of American Funds® U.S. Government Money Market Fund Class 529-A and ABLE-A shares.
Rights of accumulation
An investor can add the value of all American Funds share classes already owned to new purchases to qualify for a reduced sales charge on Class A, 529-A and ABLE-A share purchases. Exceptions include direct purchases of American Funds U.S. Government Money Market Fund and assets in Class 529-E shares, Class R shares and unit classes.
Account aggregation
In determining sales charges, investors can combine their American Funds and American Legacy account values with those of spouses or spouse equivalents (if recognized by law) and children under 21 or ABLE accounts for disabled adult children, including:
- Trust accounts established by the above family members. If the person(s) who established the trust is deceased, the primary beneficiary can combine accounts.
- Solely controlled business accounts
- Single-participant retirement plans
- Endowments or foundations established and controlled by the investor or immediate family member
- CollegeAmerica® accounts, which will be aggregated at the account owner level (except Class 529-E accounts, which may only be aggregated with an eligible employer plan)
- ABLEAmerica® accounts
Trustees or other fiduciaries
Investments made by a trustee or other fiduciary for a single trust estate or fiduciary account and multiple-employee benefit plans of a single employer or affiliated employers may be aggregated, provided they are not aggregated with personal accounts. Accounts of investors affiliated with each other by virtue of being in an association cannot be aggregated.
403(b) plans
Investments made for participant accounts of a 403(b) plan that is treated like an employer-sponsored plan, or multiple 403(b) plans of a single employer or affiliated employers, may be aggregated.
Nonprofit and charitable organizations
Investments made for nonprofit, charitable or educational organizations (or any employer-sponsored retirement plan for such an endowment or foundation) or any endowments or foundations established and controlled by the organization may be aggregated.
SEP and SIMPLE IRAs
Aggregation of participant IRA accounts under a SEP or SIMPLE IRA plan depends on the plan agreement selected by the plan sponsor. When a plan sponsor signs an American Funds prototype agreement, all plan contributions are required to come to American Funds. When a sponsor selects another prototype of an IRA model agreement, some of the contributions may come to American Funds, but the participants are not required to establish an account with American Funds. As a result, accounts will be aggregated as follows:
- Using the American Funds prototype SEP or SIMPLE IRA plan agreement will cause the participant account values to be aggregated for reduced sales charges on Class A shares. When the group assets reach a breakpoint, all plan participants benefit from the reduced sales charge. Participant accounts will not be linked with personal accounts.
- When the plan sponsor does not use an AFD prototype agreement for the plan, participant accounts will be linked to personal accounts participants may have with American Funds. This may be advantageous for participants already invested in American Funds or for those who plan to establish personal accounts in the future.
Trust funds and pooled accounts
Investments made by a common trust fund or other diversified pooled accounts not specifically formed for the purpose of accumulating fund shares may be aggregated.
“Street name” accounts
At the request of certain investment firms, some accounts are set up as “street name” or “nominee” accounts. American Funds has little to no access to client account information in such accounts, so we are generally unable to aggregate them. Investors can ask their financial professionals whether street name accounts can be aggregated.
Concurrent purchases
Combining the simultaneous purchases of two or more American Funds of any share class (including, upon request, purchases for gifts) — as well as holdings in American Legacy accounts established on or before March 31, 2007, CollegeAmerica or ABLEAmerica — is another way to reduce Class A, 529-A and ABLE-A sales charges. This applies to direct fund purchases into any accounts of the investor and his or her immediate family. Exceptions include direct purchases of American Funds U.S. Government Money Market Fund and assets in Class 529-E shares, Class R shares and unit classes.
Statement of intention
An investor can reduce the sales charge paid on Class A, 529-A and ABLE-A share purchases by establishing a statement of intention (SOI). An SOI allows an investor to combine fund purchases of share classes he or she intends to make over a 13-month period to determine the applicable sales charge. Exceptions include direct purchases of American Funds U.S. Government Money Market Fund and assets in Class 529-E shares, Class R shares and unit classes. American Legacy accounts established on or before March 31, 2007, may count toward an SOI. An SOI allows an investor to take immediate advantage of the maximum quantity discount available.
Capital appreciation and reinvested dividends/capital gains do not apply toward these combined purchases.
If, at the end of the 13-month period, the investor has not invested the amount intended, an additional sales charge will be due on the investments made under the SOI agreement. This additional sales charge represents the difference between the reduced sales charge paid and the higher sales charge due. Adjustments will be reflected in an Account Confirmation and may result in corrected tax forms.
Special SOI rules apply to shareholders investing by payroll deduction. Please see each fund’s statement of additional information for details.
Right of reinvestment
Investors may reinvest proceeds from a redemption, dividend payment or capital gain distribution without a sales charge in any of the American Funds within 90 days of the redemption, dividend payment or distribution. The right of reinvestment applies to reinvestments into the same account from which the investor redeemed shares or received a distribution. In addition, the right of reinvestment applies if the account from which the investor redeemed shares or received a distribution has been closed, provided the reinvestment:
- Occurs within 90 days of the date of the sale or distribution
- Is reinvested in the same type of account as the account from which the investor sold the shares or received the distribution
- Is made to an account with the same owner
In some cases, investments in certain account types may be moved to other account types without incurring additional sales charges. See each fund’s statement of additional information for details.
Gift of shares
If an investor wants to buy shares as a gift, the current value of his or her holdings can be used to determine the sales charge on the gift purchase. However, the investor must send a letter of instruction identifying his or her accounts along with the new account application or gift of new shares/transfer of shares to an Individual form.
Related information
* A 1% contingent deferred sales charge may be assessed on redemptions within 18 months of purchase.
† A 0.75% contingent deferred sales charge may be assessed on redemptions within 18 months of purchase.