Rights of accumulation
An investor can add the value of all American Funds share classes already owned to new purchases to qualify for a reduced sales charge on Class A and 529-A share purchases. Exceptions include direct purchases of American Funds U.S. Government Money Market Fund and assets in Class 529-E shares, Class R shares and unit classes.
In determining sales charges, investors can combine their American Funds and American Legacy account values with those of spouses or spouse equivalents (if recognized by law) and children under 21, including:
Please note that 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 may be aggregated, provided they are not aggregated with personal accounts. Accounts of investors affiliated with each other by virtue of being in an association cannot be aggregated.
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, may 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 may be aggregated.
SEP and SIMPLE IRAs
Aggregation of participant IRA accounts under a SEP or SIMPLE IRA plan depends 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. Participant accounts will not be linked with personal accounts.
- When the plan sponsor does not use an AFD prototype agreement for the plan, participant accounts will be linked to personal accounts participants may have with American Funds. This may be advantageous for participants already invested in American Funds or for 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 not specifically formed for the purpose of accumulating fund shares may be aggregated.
“Street Name” accounts
At the request of certain investment firms, some accounts are set up as “street name” or “nominee” accounts. American Funds has little to no access to client account information in such accounts, so we are generally unable to aggregate them. Investors can ask their financial professionals whether street name accounts can be aggregated.