Advisor Compensation | Capital Group

Advisor Compensation

Advisor 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 and 529-F-1 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 and 529-F-1 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

Growth-and-income funds

Equity-income funds

Balanced 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%1,*

Bond Fund Commission

Purchase amount and account value

American Funds Inflation Linked Bond Fund®

American Funds Short-Term Tax-Exempt Bond Fund®

Intermediate Bond Fund of America®

Limited Term Tax-Exempt Bond Fund of America®

Short-Term Bond Fund of America®

 

 

 

 

American Funds Tax-Exempt Fund of New York®

American High-Income Municipal Bond Fund®

The Tax-Exempt Bond Fund of America®

The Tax-Exempt Fund of California®

 

 

 

 

All other bond funds

Less than $25,000

2.00%

3.00%

3.00%

$25,000 to $50,000

2.00%

3.00%

3.00%

$50,000 to $100,000

2.00%

3.00%

3.00%

$100,000 to $250,000

2.00%

2.75%

2.75%

$250,000 to $500,000

2.00%

2.00%

2.00%

$500,000 to $750,000

0.75%

0.75%

1.60%

$750,000 to $1 million

0.75%

0.75%

1.20%

$1 million and above

Up to 0.75%1,†

Up to 0.75%1,‡

Up to 1.00%1,*

Portfolio Series Fund Commission

Purchase amount and account value

American Funds Preservation Portfolio℠

American Funds Tax-Exempt Preservation Portfolio℠

American Funds Tax-Aware Conservative Growth and Income Portfolio℠

All other American Funds Portfolio Series℠ funds

Less than $25,000

2.00%

3.00%

5.00%

$25,000 to $50,000

2.00%

3.00%

4.25%

$50,000 to $100,000

2.00%

3.00%

3.75%

$100,000 to $250,000

2.00%

2.75%

2.75%

$250,000 to $500,000

2.00%

2.00%

2.00%

$500,000 to $750,000

0.75%

1.60%

1.60%

$750,000 to $1 million

0.75%

1.20%

1.20%

$1 million and above

Up to 0.75%1,†

Up to 1.00%1,*

Up to 1.00%1,*

Retirement Income Portfolio Series Fund Commission

Purchase amount and account value

All American Funds Retirement Income Portfolio Series℠ 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%1,*

Retirement Target Date Fund Commission

Purchase amount and account value

All American Funds Target Date Retirement Series® 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%1,*

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 assets2

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

Growth-and-income funds

Equity-income funds

Balanced 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%1,*

Bond Fund Commission

Purchase amount and account value

American Funds Inflation Linked Bond Fund®

Intermediate Bond Fund of America®

Short-Term Bond Fund of America®

 

 

 

 

All other bond funds

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%1

Up to 1.00%1,*

Portfolio Series Fund Commission

Purchase amount and account value

American Funds Preservation Portfolio℠

All other American Funds Portfolio Series℠ funds

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%1

Up to 1.00%1,*

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%1

Up to 1.00%1,*

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

Advisor 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, advisor 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, advisor compensation was generally paid after quarters ending February, May, August, and November.

Annual Advisor Compensation for Class R-2, R-2E, R-3, R-4, R-5E, R-5 and R-6 Shares

Share Class

Annual Asset-Based Advisor Compensation for RecordkeeperDirect®-American Funds

Annual Asset-Based Advisor Compensation for PlanPremier®-TPA and PlanPremier-Bundled

R-2

0.75%

0.65%

R-2Eǁ

N/A

0.50%

R-3

0.50%

0.35%

R-4

0.25%

0.25%

R-5E

Not available

Paid by sponsor separately, amount set by fee-based advisor

R-5

Paid by sponsor separately, amount set by fee-based advisor

Paid by sponsor separately, amount set by fee-based advisor

R-6

Not available

Paid by sponsor separately, amount set by fee-based advisor

Compensation guidelines may vary by firm; check with your home office for more information.

Annual Advisor 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 advisor and paid separately. Class R-1 shares are not available in RecordkeeperDirect and PlanPremier.

 


Unit Classes

Compensation

Compensation for RecordkeeperDirect-Multifund3 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%
Year 2 and 3: 0.40%
Years 4+: 0.75%

2

0.65%

Not available

3

0.60%

Year 1: 1.00%
Year 2 and 3: 0.20%
Years 4+: 0.60%

4

0.50%

Year 1: 0.75%
Year 2 and 3: 0.25%
Years 4+: 0.50%

5

0.40%

Year 1: 0.50%
Year 2 and 3: 0.20%
Years 4+: 0.40%

6

0.25%

Not available

7

Paid separately by sponsor; set by fee-based advisor

Not available

8

Paid separately by sponsor; set by fee-based advisor

Not available

* 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.

 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.

§ 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.

ǁ Advisor compensation for shares in other retirement plan solutions may vary.

 Annual advisor 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 advisor 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. This and other important information is contained in the mutual fund prospectuses, summary prospectusesCollegeAmerica Program Description and ABLEAmerica Program Description which can be obtained from a financial professional, and should be read carefully before investing. Similar information about collective investment trusts can be obtained from Capital Group or participants’ plan provider or employer. CollegeAmerica and ABLEAmerica are distributed by American Funds Distributors, Inc. and sold through unaffiliated intermediaries. 

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. 

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.

1

See fund prospectuses, summary prospectuses for details.

2

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%.

3

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.

American Funds Distributors, Inc., member FINRA.

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.

Use of this website is intended for U.S. residents only.