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 SeriesSM 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®SM 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 PortfolioSM |
All other American Funds Portfolio SeriesSM |
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 0.50%. 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 $500,000 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 $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.
†† 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.
¶ 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%.
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. Similar information is contained in the CollegeAmerica Program Description and ABLEAmerica Program Description, which can be obtained from a financial professional and should be read carefully before investing. CollegeAmerica and ABLEAmerica are distributed by American Funds Distributors, Inc. and sold through unaffiliated intermediaries. For Non-American Funds, visit the website for the firm managing the applicable investment. For an investment offered through a group annuity, some of this information may differ and can be obtained from a financial professional.
Depending on your state of residence, there may be an in-state plan that provides state tax and other state benefits not available through CollegeAmerica (such as financial aid, scholarship funds and protection from creditors) or ABLEAmerica. Before investing in any state's 529 plan, investors should consult a tax advisor. CollegeAmerica and ABLEAmerica are nationwide plans sponsored by Virginia529℠.
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.
American Funds Distributors, Inc., member FINRA.
RecordkeeperDirect-Multifund investments are offered through a group fixed and variable deferred annuity (“group annuity”) issued by Great-West Life & Annuity Insurance Company, Corporate Headquarters: Greenwood Village, CO; or, in New York, by Great-West Life & Annuity Insurance Company of New York, Home Office: NY, NY. RecordkeeperDirect-Multifund is not available to 403(b), SEP or SIMPLE IRA plans, and is closed to new plans.
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.