Exchanges and Other Details
General information for share classes except Class R shares and unit classes
The minimum initial investment is typically $250 for each fund, and the minimum subsequent investment is $50. (The money market fund and state-specific tax-exempt bond funds require an initial investment of at least $1,000.) However, minimum initial and subsequent investments are reduced to $25 for retirement plan purchases through payroll deduction and Class 529-E share purchases.
Generally, shares of American Funds may be exchanged into shares of other American Funds of the same share class without a sales charge. However, exchanges from American Funds U.S. Government Money Market Fund Class A shares, which don’t have an initial sales charge, may be subject to the new fund’s sales charge.
Class A shares of American Funds U.S. Government Money Market Fund can be exchanged into other share classes; however, they may not be exchanged into Class C and 529-C shares of Intermediate Bond Fund of America and Short-Term Bond Fund of America, and Class C shares of Limited Term Tax-Exempt Bond Fund of America.
Class 529 shares can be exchanged within the same share class twice every calendar year or when the beneficiary is changed. Class F-1, A and C shares generally may be exchanged into the corresponding 529 share class without a sales charge, but such exchanges from UGMA or UTMA custodial accounts may create significant legal and tax consequences.
When determining contingent deferred sales charges, the length of time that shares have been owned is measured from the date of original purchase and is not affected by exchanges.
Under certain circumstances, an investor may move from one share class to another. Fund prospectuses and statements of additional information contain more information.
Exchange privileges are subject to change or termination.
Generally, distributions paid by one fund may be cross-reinvested into another fund of the same share class. Investors must have at least $5,000 invested in the fund from which distributions are paid or have met the minimum initial investment requirement for the receiving fund. Cross-reinvestments from the money market fund into other funds may be subject to the appropriate sales charge. Cross-reinvesting is not available for 529 share classes.