Announcements

October 2, 2023

Share class pricing and fund policy changes

Effective October 1, 2023, we implemented changes to our class A share commission schedule and breakpoints to align our approach with industry trends. These changes will result in lower costs to investors.

They are as follows:

1)   Modifications to taxable fixed income no-load Class A (NOLA) schedules

  • The NOLA breakpoint for taxable bond funds has been lowered from $1 million to $500,000.   
  • For sales from $500,000 to $10 million, dealer commission has been reduced to 0.75%.   

Class A share sales charge schedule

Funds included: The Bond Fund of America®, American Funds Strategic Bond Fund, American Funds Multi-Sector Income Fund, American Funds Corporate Bond Fund®, American Funds Emerging Markets Bond Fund®, American Funds Mortgage Fund®, American High-Income Trust®, Capital World Bond Fund®, U.S. Government Securities Fund®, American Funds Tax-Aware Conservative Growth and Income Portfolio

         

Amount of purchase

Former sales charge

New sales charge

Former dealer commission

New dealer commission

$500,000 but less than $750,000

2.00%

0.00%

1.60%

0.75%

$750,000 but less than $1 million

1.50%

0.00%

1.20%

0.75%

$1 million but less than $4 million

0.00%

No change

1.00%

0.75%

$4 million but less than $10 million

0.00%

No change

1.00%

0.75%

$10 million but less than $25 million

0.00%

No change

0.50%

No change

$25 million and above

0.00%

No change

0.25%

No change
  • For these taxable fixed income funds, contingent deferred sales charge (CDSC) will be reduced to 0.75% if sold within the first 18 months to align with the new dealer commission.   

2)   Modifications to short-term fixed income no-load Class A (NOLA) schedules

  • The NOLA breakpoint for short-term bond funds has been lowered from $500,000 to $250,000.
  • The dealer commission for NOLA is now 0.75% for sales from $250,000 to $4 million.
  • For sales from $100,000 to $250,000, upfront commission  has been lowered from 2.50% to 1.75% and the dealer commission has been lowered from 2.00% to 1.50%.

Class A share sales charge schedule

Funds included: Intermediate Bond Fund of America®, American Funds Inflation Linked Bond Fund®, Short-Term Bond Fund of America®, Limited Term Tax-Exempt Bond Fund of America®, American Funds Short-Term Tax-Exempt Bond Fund®, American Funds Preservation Portfolio, American Funds Tax-Exempt Preservation Portfolio

         

Amount of purchase

Former sales charge

New sales charge

Former dealer commission

New dealer commission

$100,000 but less than $250,000

2.50%

1.75%

2.00%

1.50%

$250,000 but less than $500,000

2.50%

0.00%

2.00%

0.75%

$500,000 but less than $4 million

0.00%

No change

0.75%

No change

$4 million but less than $10 million

0.00%

No change

0.50%

No change

$10 million and above

0.00%

No change

0.25%

No change
  • CDSC dealer commission will not change for these funds.

3)   Modifications to municipal fixed income no-load Class A (NOLA) schedules

  • The NOLA breakpoint for municipal bond funds has  been lowered from $500,000 to $250,000.
  • The dealer commission for NOLA is now 0.75% for sales from $250,000 to $10 million.
  • For sales from $100,000 to $250,000, upfront commission has been lowered from 3.50% to 3.25%. 

Class A share sales charge schedule

Funds included: American High-Income Municipal Bond Fund®, The Tax-Exempt Bond Fund of America®, The Tax-Exempt Fund of California®, American Funds Tax-Exempt Fund of New York®

         

Amount of purchase

Former sales charge

New sales charge

Former dealer commission

New dealer commission

$100,000 but less than $250,000

3.50%

3.25%

2.75%

No change

$250,000 but less than $500,000

2.50%

0.00%

2.00%

0.75%

$500,000 but less than $10 million

0.00%

No change

0.75%

No change

$10 million but less than $25 million

0.00%

No change

0.50%

No change

$25 million and above

0.00%

No change

0.25%

No change
  • CDSC dealer commission has not changed for these funds.

4)   Class 529-A and ABLE-A are excluded from the changes noted above.

Implementation date: October 1, 2023

Over the next few weeks, we will be in contact to review these changes with you and your teams and to provide additional details as they become available.

In the interim, if you have any questions, please contact your National Accounts team member directly or send an email to afdealer@capgroup.com.

Thank you for your continued support of Capital Group and American Funds.

CollegeAmerica and ABLEAmerica are nationwide plans sponsored by Virginia 5 2 9.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
Use of this website is intended for U.S. residents only. Use of this website and materials is also subject to approval by your home office.
The Morningstar average expense ratios are based on fund statistics for each fund's prospectus available at the time of publication. The expense ratio is one aspect of plan fees and expenses.
Capital Client Group, Inc.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.