Share Class Pricing and Details | Capital Group

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Share Class Pricing and Details

We offer a wide choice of share and unit classes to meet the needs of advisors and shareholders.

For information on commission schedules, ongoing service fees and other compensation options, go to Advisor Compensation.

 

Class F-1, F-2, F-3 and 529-F-1 Shares

Available only through fee-based programs

Many broker-dealers offer fee-based programs that allow investors to purchase mutual funds for an annual asset-based fee, instead of paying commissions or sales charges. Class F-1, F-2 and F-3 shares are used in fee-based programs at most broker-dealers.

Class 529-F-1 shares are designed for Registered Investment Adviser (RIA) firms and certain broker-dealer fee-based advisors who are registered with American Funds as an RIA/Investment Advisor Representative with the permission of their home office. The broker-dealer firm must also be registered with the SEC as an RIA firm.

No Sales Charge

Class F-1, F-2, F-3 and 529-F-1 shares do not have an up-front or contingent deferred sales charge.

Annual Expenses

Class F-2 shares do not include a 12b-1 fee but may have slightly higher administrative expenses, which may vary by fund. Class F-3 shares do not include 12b-1 or sub-transfer agency fees. You can find expenses for individual funds on the All Funds page. These expenses will vary among the funds.

Maximum Investments

Investments in CollegeAmerica are limited to $500,000 per beneficiary.1

Fund Purchase Restrictions

Class 529-F-1 shares are not available for tax-exempt bond funds.


Class A and 529-A Shares

Front-end sales charge

For many investors, especially those with significant account balances, Class A and 529-A shares are the most cost-effective way to own American Funds. Class A shares are available in regular mutual fund accounts, IRAs, SEP and SIMPLE IRAs and certain retirement plans.

Up-Front Sales Charge

Class A and 529-A shares are sold with a sales charge up front. The sales charge is reduced for larger purchases and account values. Find out more about reducing the sales charge.

Sales Charges and Breakpoints for Class A and 529-A Shares

Equity Fund and Bond Fund Sales Charges

Purchase amount and account value

Growth funds

Growth-and-income funds

Equity-income funds

Balanced funds

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®

All other bond funds

Less than $25,000

5.75%

2.50%

3.75%

$25,000 to $50,000

5.00%

2.50%

3.75%

$50,000 to $100,000

4.50%

2.50%

3.75%

$100,000 to $250,000

3.50%

2.50%

3.50%

$250,000 to $500,000

2.50%

2.50%

2.50%

$500,000 to $750,000

2.00%

2.00%

2.00%

$750,000 to $1 million

1.50%

1.50%

1.50%

$1 million and above

0.00%2

0.00%2

0.00%2

Portfolio Series Fund Sales Charge

Purchase amount and account value

American Funds Preservation Portfolio℠

American Funds Tax-Exempt Preservation Portfolio℠

American Funds Tax-Advantaged Income Portfolio℠

All other American Funds Portfolio Series℠ funds

Less than $25,000

2.50%

3.75%

5.75%

$25,000 to $50,000

2.50%

3.75%

5.00%

$50,000 to $100,000

2.50%

3.75%

4.50%

$100,000 to $250,000

2.50%

3.50%

3.50%

$250,000 to $500,000

2.50%

2.50%

2.50%

$500,000 to $750,000

2.00%

2.00%

2.00%

$750,000 to $1 million

1.50%

1.50%

1.50%

$1 million and above

0.00%

0.00%

0.00%

Retirement Target Date Fund Sales Charge

Purchase amount and account value

All American Funds Target Date Retirement Series® funds

Less than $25,000

5.75%

$25,000 to $50,000

5.00%

$50,000 to $100,000

4.50%

$100,000 to $250,000

3.50%

$250,000 to $500,000

2.50%

$500,000 to $750,000

2.00%

$750,000 to $1 million

1.50%

$1 million and above

0.00%

College Target Date Fund Sales Charge

Purchase amount and account value

American Funds College Enrollment Fund®

All other American Funds College Target Date Series® funds

Less than $100,000

2.50%

4.25%

$100,000 to $250,000

2.50%

3.50%

$250,000 to $500,000

2.50%

2.50%

$500,000 to $750,000

2.00%

2.00%

$750,000 to $1 million

1.50%

1.50%

$1 million and above

0.00%

0.00%

There is no sales charge on purchases of American Funds U.S. Government Money Market Fund℠  Class A and 529-A shares.

Annual Expenses

You can find expenses for individual funds on the All Funds page.

Maximum Investments

Investments in CollegeAmerica® are limited to $500,000 per beneficiary.1


Class C and 529-C Shares

No sales charge and higher expenses

No Sales Charge

Class C and 529-C shares — often called load-level shares — do not have a sales charge up front. However, a contingent deferred sales charge of 1% may be applied on shares redeemed within 1 year of purchase. The CDSC is based on the original purchase amount or the current market value of the shares being sold, whichever is less.

Annual Expenses

Class C and 529-C share expenses are higher than Class A and 529-A share expenses. You can find expenses for individual funds on the All Funds page.

Conversion

Class C shares convert to Class F-1 shares after 10 years. A proportional amount of dividends and capital gains, which are not subject to the CDSC, will be converted in this nontaxable event. Class 529-C shares do not convert.

Maximum Investments

Class C share purchases may not exceed $500,000, and investments in CollegeAmerica are limited to $500,000 per beneficiary.1 American Funds monitors Class C and 529-C share investments and will contact the financial advisor if an investment would be more cost-effective in Class A or 529-A shares. For example, investors who are eligible to invest in Class A and 529-A shares without a sales charge ($1 million breakpoint) may not purchase Class C and 529-C shares.

Fund Purchase Restrictions

Class 529-C shares are not available for tax-exempt bond funds. American Funds Short-Term Tax-Exempt Bond Fund does not offer Class C shares. Class C and 529-C shares of American Funds U.S. Government Money Market Fund, 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® may be acquired only by exchanging from Class C or 529-C shares of other American Funds; direct purchases are not permitted.

Redemption Order

Appreciation on all shares is redeemed first, followed by shares purchased with reinvested dividends and capital gains (all exempt from the CDSC). Thereafter, shares are redeemed on a first-in, first-out basis.


Class 529-E Shares

Available only through employer-sponsored 529 plans

No Sales Charge

Class 529-E shares, which can be offered in eligible employer-sponsored college savings plans, do not have an up-front or contingent deferred sales charge.

Annual Expenses

You can find expenses for individual funds on the All Funds page.

Maximum Investments

Investments in CollegeAmerica are limited to $500,000 per beneficiary.1

Fund Purchase Restrictions

Class 529-E shares are not available for tax-exempt bond funds.


Exchanges and Other Details

General information for share classes except Class R shares and unit classes

Minimum Investments

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.

Exchanges

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.

Cross-Reinvesting

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.


Class R Shares and Unit Classes

Eight retirement plan share classes

Our Class R shares provide flexibility in retirement plan pricing. The 8 share classes are differentiated by the ways plan sponsors and participants pay for plan services.

Class R shares are available to 401(k), 403(b), 457, deferred compensation, defined benefit, money purchase pension and profit-sharing retirement plans that require recordkeeping and administrative services. They are not available in retail accounts or IRAs, SEPs and SIMPLE IRAs.

No Sales Charge

Class R shares do not have an up-front or contingent deferred sales charge.

Annual Expenses

Each R share class has a distinct expense structure. Share classes with lower expenses require plan sponsors to pay for certain services out of pocket, while share classes with higher expenses can cover some or all of the plan service costs.

Suggested Target Markets and Average Annual Expenses for Class R Shares

Share class

Suggested plan size (assets)

Plan costs

Average expense ratio3,4,5

R-1

Less than $1 million

Plan sponsor pays most recordkeeping costs separately

1.46%

R-2

Less than $3 million

Plan sponsor wants all or part of recordkeeping costs to be covered by plan assets

1.42%

R-2E

Less than $4 million

Plan sponsor wants part of recordkeeping costs to be covered by plan assets

1.09%

R-3

Less than $5 million

Plan sponsor wants part of recordkeeping costs to be covered by plan assets

1.01%

R-4

Greater than $5 million

Plan sponsor pays most recordkeeping costs separately.

0.74%

R-5E

Any size

Plan sponsor pays most expenses separately, including advisor compensation.

0.70%

R-5

Any size

Plan sponsor pays most expenses separately, including advisor compensation

0.45%

R-6

Any size

Plan sponsor pays all expenses separately, including advisor compensation

0.40%

Availability

Class R-1 shares are available for sponsors who use a third-party platform.

Eight pricing options for RecordkeeperDirect-Multifund6

Our 8 unit classes provide flexibility in RecordkeeperDirect®-Multifund plan pricing, which determines how plan sponsors and participants pay for plan services. Unit classes 1 through 6 are for commission-based advisors, and four of the unit classes have a higher upfront commission option. Unit classes 7 and 8 are for fee-based advisors.

Unit classes are available to 401(k), money purchase pension and profit-sharing retirement plans in the American Funds RecordkeeperDirect-Multifund program. RecordkeeperDirect-Multifund is closed to new plans as of February 1, 2017.

No Sales Charge

Unit classes do not have an up-front or contingent deferred sales charge.

Annual Expenses

Each unit class has a distinct expense structure. Unit classes with lower expenses require plan sponsors to pay for certain services out-of-pocket, while unit classes with higher expenses can cover some or all of the plan service costs. You can find expenses for individual funds on the Retirement Planning Center.

Unit Class Average Annual Expenses

Unit class

Average expense ratio3,7

1

1.74%

2

1.54%

3

1.44%

4

1.29%

5

1.09%

6

0.89%

7

0.64%

8

0.44%


Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses, summary prospectuses or the collective investment trust's Characteristics statement, which can be obtained from a financial professional, Capital or your relationship manager, and should be read carefully before investing. For an investment offered through a group annuity, some of this information may differ and can be obtained from a financial professional. CollegeAmerica is 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, such as financial aid, scholarship funds and protection from creditors, not available through CollegeAmerica. Before investing in any state's 529 plan, investors should consult a tax advisor. 

1

Investments in a CollegeAmerica account cannot be made if the value of all 529 plans maintained by Virginia529 (CollegeAmerica, Virginia 529 prePAID℠, Virginia529 inVEST℠ and CollegeWealth℠) for the same beneficiary is $500,000 or more.

2

A 1% contingent deferred sales charge may be assessed on redemptions within 18 months of purchase.

3

Average expense ratios are provided only as examples. The actual average expense ratio depends on the investments selected for the plan and participant allocations. Expense ratios reflect applicable fee waivers and expense reimbursements, without which expenses would be higher. 

4

Although American Funds U.S Government Money Market Fund has 12b-1 plans for some share classes, payments are currently being suspended in this low-interest-rate environment. Should payments commence, the average expense ratios will be higher. If 12b-1 fees had been included for the money market fund, the average expense ratios would have been: 1.47% for R-1, 1.47% for R-2, 1.18% for R-2E, 1.03% for R-3 and 0.74% for R-4. For American Funds that are available to qualified retirement plans, the actual expense ratios range from 0.46% to 2.05% for R-1, 0.69% to 2.18% for R-2, 0.53% to 1.88% for R-2E, 0.49% to 1.64% for R-3, 0.45% to 1.29% for R-4, 0.46% to 1.14% for R-5E, 0.30% to 0.98% for R-5, and 0.25% to 0.92% for R-6.

5

Average expense ratios are based on the average daily net assets of all American Funds, excluding tax-exempt funds and funds of funds, as of the funds’ prospectuses available as of 12/31/16. Accordingly, more weight is given to funds that are larger in size and less weight to smaller funds. Please see each fund’s prospectus for details.

6

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.

7

The average expense ratio shown for each unit class is the sum of (1) the weighted average operating expense for all funded investments (excluding the Fixed Account) in the program as of 12/31/2016, and (2) the variable asset charge (“program charge”), which ranges from 0.14% to 1.44%, depending on the unit class, and is for administrative, service and other fees on the variable assets. Operating expenses of all available investments (excluding the Fixed Account), as of each underlying fund’s prospectus available at the time of publication, range from 1.49% to 2.65% for unit class 1; 1.29% to 2.45% for unit class 2; 1.19% to 2.35% for unit class 3; 1.04% to 2.20% for unit class 4; 0.84% to 2.00% for unit class 5, 0.64% to 1.80% for unit class 6; 0.39% to 1.55% for unit class 7, and 0.19% to 1.35% for unit class 8.