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:
Direct purchases of money market funds, and American Legacy accounts established after March 31, 2007, cannot be aggregated.
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.
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.
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:
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.
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).
You can combine simultaneous purchases (including purchases for gifts) of two or more American Funds of any share class, as well as holdings in CollegeAmerica and ABLEAmerica, as another way to reduce your Class A, 529-A and ABLE-A sales charges. This applies to all direct fund purchases (except the money market fund) into multiple accounts that you and/or your immediate family own.
For example, if you simultaneously invested $25,000 in New Perspective Fund® Class A shares and $25,000 in The Growth Fund of America® Class C shares, you could purchase the Class A shares at the $50,000 sales charge of 4.50%.
If you currently have individual holdings in American Legacy accounts that were established on or before March 31, 2007, you can continue to combine purchases made under such contracts and policies to reduce your Class A sales charge.
You can add the value of any American Funds share class that you already own to new Class A, 529-A and ABLE-A share purchases in order to qualify for a reduced sales charge.
If you are making a gift of shares, you can purchase the shares at the sales charge discount allowed under the rights of accumulation of all your American Funds accounts.
American Legacy accounts established on or before March 31, 2007, can also be applied to qualify for a discount on Class A, 529-A and ABLE-A purchases.
Direct purchases of the money market fund are excluded.
You can reduce the sales charge you pay on Class A, 529-A and ABLE-A share purchases by establishing a statement of intention. A statement of intention allows you to combine non-money market fund purchases of all share classes that you intend to make over a 13-month period in order to determine your applicable sales charge.
A statement of intention lets you take immediate advantage of the maximum quantity discount* available.
Special statement of intention rules apply to shareholders investing by payroll deduction. Please see the statement of additional information for details.
Contact your financial professional or call us to establish a statement of intention.
*American Legacy accounts established on or before March 31, 2007, may count toward a statement of intention.
You can reinvest proceeds from a redemption, dividend payment or capital gain distribution back into the same account from which the proceeds came without a sales charge, provided the reinvestment occurs within 90 days after the date of the transaction.
If your account has been closed, the money can be reinvested into another fund provided:
See your financial professional or the fund’s statement of additional information for details.