Financial professional compensation
Financial Professional compensation varies with share and unit classes, and may include dealer commissions at the time of sale and ongoing asset-based service fees.
For pricing information by share class, including sales charges and breakpoints, visit Share Class Pricing and Details.
Class F-1, F-2, F-3, 529-F-1, 529-F-2, 529-F-3 and ABLE-F-2 Shares
Ongoing service fees
Ongoing annual service fees of 0.25% are paid on assets in Class F-1 shares beginning immediately after purchase to qualifying dealer firms (subject to annual fund board approval). Effective December 1, 2019, service fees are generally paid monthly. Previously, service fees were generally paid after quarters ending February, May, August and November.
No service fees are paid for Class F-2, F-3, 529-F-1, 529-F-2, 529-F-3 and ABLE-F-2 Shares.
Class A, 529-A and ABLE-A shares
Commissions
A dealer commission is paid at the time of purchase.
Dealer commissions for Class A shares
Equity fund commission
|
|
|---|---|
Purchase amount and account value |
Growth funds |
Less than $25,000 |
5.00% |
$25,000 to $50,000 |
4.25% |
$50,000 to $100,000 |
3.75% |
$100,000 to $250,000 |
2.75% |
$250,000 to $500,000 |
2.00% |
$500,000 to $750,000 |
1.60% |
$750,000 to $1 million |
1.20% |
$1 million and above |
Up to 1.00%*,† |
Retirement income portfolio series fund commission
|
|
|---|---|
Purchase amount and account value |
All American Funds® Retirement Income Portfolio Series funds |
Less than $25,000 |
5.00% |
$25,000 to $50,000 |
4.25% |
$50,000 to $100,000 |
3.75% |
$100,000 to $250,000 |
2.75% |
$250,000 to $500,000 |
2.00% |
$500,000 to $750,000 |
1.60% |
$750,000 to $1 million |
1.20% |
$1 million and above |
Up to 1.00%*,† |
Retirement target date fund commission
|
|
|---|---|
Purchase amount and account value |
All American Funds Target Date Retirement Series® funds |
Less than $25,000 |
5.00% |
$25,000 to $50,000 |
4.25% |
$50,000 to $100,000 |
3.75% |
$100,000 to $250,000 |
2.75% |
$250,000 to $500,000 |
2.00% |
$500,000 to $750,000 |
1.60% |
$750,000 to $1 million |
1.20% |
$1 million and above |
Up to 1.00%*,† |
Ongoing service fees
Investments made below the $1 million breakpoint are immediately eligible for ongoing service fees. Investments made at or above the $1 million breakpoint become eligible for ongoing service fees after the assets are held for at least one year. Effective December 1, 2019, service fees are generally paid on eligible assets to qualifying dealer firms monthly. Previously, service fees were generally paid on eligible assets to qualifying dealer firms after quarters ending February, May, August and November.
Annual service fees for Class A shares
Assets |
Annual service fee |
All funds assets†† |
0.25% |
Commissions and service fees are not paid on shares purchased under the broker NAV privilege.
Dealer commissions for Class 529-A and ABLE-A shares
Equity fund commission
|
|
|---|---|
Purchase amount and account value |
Growth funds |
Less than $25,000 |
2.75% |
$25,000 to $50,000 |
2.75% |
$50,000 to $100,000 |
2.75% |
$100,000 to $250,000 |
2.75% |
$250,000 to $500,000 |
2.00% |
$500,000 to $750,000 |
1.60% |
$750,000 to $1 million |
1.20% |
$1 million and above |
Up to 1.00%*,† |
Portfolio series fund commission
|
||
|---|---|---|
Purchase amount and account value |
American Funds® Preservation Portfolio |
All other American Funds® Portfolio Series |
Less than $25,000 |
2.00% |
2.75% |
$25,000 to $50,000 |
2.00% |
2.75% |
$50,000 to $100,000 |
2.00% |
2.75% |
$100,000 to $250,000 |
2.00% |
2.75% |
$250,000 to $500,000 |
2.00% |
2.00% |
$500,000 to $750,000 |
1.60% |
1.60% |
$750,000 to $1 million |
1.20% |
1.20% |
$1 million and above |
Up to 1.00%†,‡‡ |
Up to 1.00%*,† |
College target date fund commission
|
||
|---|---|---|
Purchase amount and account value |
American Funds College Enrollment Fund® |
All other American Funds College Target Date Series® funds |
Less than $100,000 |
2.00% |
2.75% |
$100,000 to $250,000 |
2.00% |
2.75% |
$250,000 to $500,000 |
2.00% |
2.00% |
$500,000 to $750,000 |
1.60% |
1.60% |
$750,000 to $1 million |
1.20% |
1.20% |
$1 million and above |
Up to 1.00%†,‡‡ |
Up to 1.00%*,† |
Ongoing service fees
Investments made below the $1 million breakpoint are immediately eligible for ongoing service fees. Investments made at or above the $1 million breakpoint become eligible for ongoing service fees after the assets are held for at least one year. Effective December 1, 2019, service fees are generally paid on eligible assets to qualifying dealer firms monthly. Previously, service fees were generally paid on eligible assets to qualifying dealer firms after quarters ending February, May, August and November.
Annual service fees for Class 529-A and ABLE-A shares
Assets |
Annual service fee |
All funds assets |
0.25% |
Class C and 529-C shares
Commissions
A dealer commission of 1.00% of the amount invested is paid at the time of purchase.
Ongoing service fees
Ongoing annual service fees of 1.00% are paid (subject to annual fund board approval) to qualifying dealer firms on assets held at least 1 year. Effective December 1, 2019, service fees are generally paid monthly following the first anniversary of purchase. Previously, service fees were generally paid after quarters ending February, May, August and November following the first anniversary of purchase.
Conversion
Class C shares convert to Class A shares in the month of the 8th anniversary of purchase, at which time ongoing annual service fees will be 0.25%. Previously, Class C shares converted to Class F-1 shares in the month of the 10th anniversary of purchase through June 30, 2020.
Class 529-C shares convert to Class 529-A shares in the month of the 5th anniversary of purchase, at which time ongoing annual service fees will be 0.25%. Previously, Class 529-C shares converted to Class 529-A shares in the 10th anniversary of purchase through June 30, 2020.
Class 529-E shares
Ongoing service fees
Ongoing annual service fees of 0.50% are paid on assets beginning immediately after purchase to qualifying dealer firms (subject to annual fund board approval). Effective December 1, 2019, service fees are generally paid monthly. Previously, service fees were generally paid after quarters ending February, May, August and November.
Class R shares
Compensation
Financial Professional compensation on RecordkeeperDirect®, PlanPremier® -TPA and PlanPremier® -Bundled plans, which begins accruing immediately after purchase, is generally paid after each calendar quarter based on average daily assets held during the period.
Effective December 1, 2019, financial professional compensation for R shares held outside of RecordkeeperDirect®, PlanPremier®-TPA and PlanPremier®-Bundled plans, which begins accruing immediately after purchase, is generally paid after each month based on eligible average daily assets held during the period to qualifying dealer firms. Previously, financial professional compensation was generally paid after quarters ending February, May, August, and November.
Annual financial professional compensation for Class R-2, R-2E, R-3, R-4, R-5E, R-5 and R-6 shares
Compensation guidelines may vary by firm; check with your home office for more information.
Annual financial professional compensation for Class R-1 and R-5E shares
Annual asset-based dealer compensation for Class R-1 shares is 1.00%. Class R-5E share compensation is set by the fee-based financial Professional and paid separately. Class R-1 shares are not available in RecordkeeperDirect and PlanPremier.
Unit classes
Compensation
Compensation for RecordkeeperDirect-Multifund unit classes is paid quarterly. Four of the unit classes have an option to receive a higher payment up front.
Note: RecordkeeperDirect-Multifund is closed to new plans as of February 1, 2017.
Unit class annual dealer compensation
Unit class |
Annual asset-based compensation option 1 |
Annual asset-based compensation option 2 |
1 |
0.75% |
Year 1: 1.00% |
2 |
0.65% |
Not available |
3 |
0.60% |
Year 1: 1.00% |
4 |
0.50% |
Year 1: 0.75% |
5 |
0.40% |
Year 1: 0.50% |
6 |
0.25% |
Not available |
7 |
Paid separately by sponsor; set by fee-based financial professional |
Not available |
8 |
Paid separately by sponsor; set by fee-based financial professional |
Not available |
Related information
* Dealers are paid commission of 1% on amounts of $1 million but less than $10 million, 0.50% on amounts of at least $10 million but less than $25 million and 0.25% on amounts of at least $25 million. Commissions are based on cumulative investments with no annual reset.
† See fund prospectuses, summary prospectuses for details.
‡ Dealers are paid a commission of 0.75% on amounts of $250,000 but less than $4 million, 0.50% on amounts of at least $4 million but less than $10 million and 0.25% on amounts of at least $10 million. Commissions are based on cumulative investments with no annual reset.
** Dealers are paid a commission of 0.75% on amounts of $250,000 million but less than $10 million, 0.50% on amounts of at least $10 million but less than $25 million and 0.25% on amounts of at least $25 million. Commissions are based on cumulative investments with no annual reset.
†† American Funds Short-Term Tax-Exempt Bond Fund Class A shares and American Funds U.S. Government Money Market Fund Class A and 529-A shares pay a 12b-1 service fee of 0.15%.
‡‡ Dealers are paid a commission of 1% on amounts of $1 million but less than $4 million, 0.50% on amounts of at least $4 million but less than $10 million and 0.25% on amounts of at least $10 million. Commissions are based on cumulative investments with no annual reset.
§ Financial professional compensation for shares in other retirement plan solutions may vary.
§ § Dealers are paid a commission of 0.75% on amounts of $500,000 but less than $10 million, 0.50% on amounts of at least $10 million but less than $25 million and 0.25% on amounts of at least $25 million. Commissions are based on cumulative investments with no annual reset.
¶ Annual financial professional compensation of 0.25% for Class R-4 shares applies to plans with plan proposals generated on or after January 27, 2017, unless otherwise agreed upon. Previously, annual financial professional compensation was 0.20%.