In determining sales charges, your American Funds and American Legacy account values can be combined with those of your spouse or spouse equivalent (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
Direct purchases of money market funds, and American Legacy accounts established after March 31, 2007, cannot be aggregated.
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, provided they are not aggregated with personal accounts, can be aggregated.
We do not aggregate accounts of investors who are affiliated with each other by virtue of being in an association.
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, can 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 can be aggregated.
SEP and SIMPLE IRAs
Aggregation of participant IRA accounts under a SEP or SIMPLE IRA plan depend 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. Participants’ accounts will not be linked with personal accounts.
- When the plan sponsor does not use an AFD prototype agreement for the plan, the participants’ accounts will be linked to any other personal accounts they may have with American Funds. This may be advantageous for participants already invested in American Funds or 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 that are not specifically formed for the purpose of accumulating fund shares may be aggregated.
Accounts Ineligible for Aggregation
Some investment firms request accounts to be set up as “street name” or “nominee” accounts. This simply means that the investment firm has sole access, or that we have limited access, to their clients’ account information.
Since American Funds Service Company has little or no access to certain nominee or street name account information, we are generally unable to aggregate those accounts. You should check with your financial professional to determine if this applies to your account(s).