Investors can reduce up-front sales charges with larger purchase amounts and account values.
Investors or financial professionals should notify American Funds when a purchase is eligible for a reduced sales charge; otherwise, the maximum sales charge may be applied.
Funds with a maximum sales charge of 3.75%:
Funds with a maximum sales charge of 2.00%:
Footnotes:
†A 0.75% contingent deferred sales charge may be assessed on redemptions within 18 months of purchase.
‡A 1.00% contingent deferred sales charge may be assessed on redemptions within 12 months of purchase.
An investor can add the value of all investments in Capital Group KKR Public-Private+ (PPS) Funds and American Funds share classes already owned to new purchases to qualify for a reduced sales charge on Class A share purchases. An investor may only combine investments in PPS Funds to qualify for a reduced sales charge on Class A-2 shares.
In determining sales charges, solely with respect to Class A shares, investors can combine their PPS Funds, American Funds and American Legacy account values with those of spouses or spouse equivalents (if recognized by law) and children under 21, including:
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 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 IRA accounts in plans established after November 15, 2004, by an employer adopting any plan document other than a prototype plan produced by Capital Client Group, Inc. or an affiliate may be aggregated.
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.
At the request of certain investment firms, some accounts are set up as "street name" or "nominee" accounts. American Funds Service Company 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.
Combining the simultaneous purchases of all classes of shares in PPS Funds or American Funds (including, upon request, purchases for gifts) — as well as holdings in American Legacy accounts established on or before March 31, 2007 — is another way to reduce Class A sales charges. This applies to direct fund purchases into any accounts of the investor and his or her immediate family. Exceptions include direct purchases of American Funds U.S. Government Money Market Fund Class A shares and employer-sponsored retirement plans not outlined above in Rights of accumulation.
Class A-2 sales charge may be reduced by combining purchases of all classes of shares in the PPS Funds (but not the American Funds).
An investor can reduce the sales charge paid on Class A share purchases by establishing a statement of intention (SOI). An SOI allows an investor to combine fund purchases of all PPS Funds and American Funds share classes (excluding American Funds U.S. Government Money Market Fund) he or she intends to make over a 13-month period to determine the applicable sales charge. Employer-sponsored retirement plans are restricted from establishing statements of intention. American Legacy accounts established on or before March 31, 2007, may count toward an SOL Capital appreciation and reinvested dividends/capital gains do not apply toward these combined purchases.
If, at the end of the 13-month period, the investor has not invested the amount intended, an additional sales charge will be due on the investments made under the SOI agreement. This additional sales charge represents the difference between the reduced sales charge paid and the higher sales charge due. Adjustments will be reflected in an Account Confirmation and may result in corrected tax forms.
Investors may reinvest proceeds from a redemption, dividend payment or capital gain distribution without a sales charge in any of the PPS Funds within 90 days of the redemption, dividend payment or distribution. The right of reinvestment applies to reinvestments into the same account from which the investor redeemed shares or received a distribution. In addition, the right of reinvestment applies if the account from which the investor redeemed shares or received a distribution has been closed, provided the reinvestment:
In some cases, investments in certain account types may be moved to other account types without incurring additional sales charges. See each fund's statement of additional information for details.
If an investor wants to make a gift of PPS Funds or American Funds Class A shares, upon your request, the investor may purchase the shares at the sales charge discount allowed under rights of accumulation of all of the investor's PPS Funds or American Funds and applicable American Legacy accounts. However, the investor must send a letter of instruction identifying his or her accounts along with the new account application or gift of new shares/transfer of shares to an Individual form.