Can the contingent deferred sales charge (CDSC) be waived?
The CDSC on Class A shares purchased without a sales charge and redeemed within 18 months may be waived for certain transactions, including:
- Permitted exchanges of shares, except if the shares were acquired and then redeemed within the period during which a CDSC would apply to the initial shares purchased
- Redemptions due to death or post-purchase disability of the investor (this generally excludes accounts registered in the names of trusts and other entities)
- In the case of joint tenant accounts, if one joint tenant dies, a surviving joint tenant, at the time he or she notifies American Funds Service Company of the other joint tenant's death and removes the decedent's name from the account, may redeem shares from the account without incurring a contingent deferred sales charge; however, redemptions made after American Funds Service Company is notified of the death of a joint tenant will be subject to a contingent deferred sales charge
- Repurchases due to the complete termination of a trust upon the death of the trustor/grantor or beneficiary, but only if such termination is specifically provided for in the trust document
- Shares repurchased at the discretion of the transfer agent for accounts that do not meet fund minimum investment requirements, as described in the prospectus
- Required minimum distributions taken from retirement accounts in accordance with 1RS regulations, if they do not exceed 12% of the value of an account annually.
The investor or financial professional must inform American Funds that a transaction qualifies for a sales charge waiver when the transaction is made.
Please see fund prospectuses and statements of additional information for more details.
Why does a fund's dividends vary across different share classes?
Since expenses and dividends are paid from a fund's income, the expense difference associated across share classes will affect the amount of the dividend distributions. Classes with higher expenses will have lower dividends.
Why does the fund value drop when a capital gain distribution is paid?
Fund managers buy and sell securities throughout the year, sometimes at a profit, sometimes at a loss. When profits outweigh losses, they accumulate and contribute to the net asset value (NAV), or share price, of the fund's shares. When that profit is paid out to investors as a capital gain distribution, its NAV will be reduced by the amount of the distribution.
However, this doesn't mean that investors are losing money. Investors can either take capital gain distributions in cash or reinvest them, as most investors do. If capital gains are reinvested, the number of shares in the account will increase, leaving the total value of the account unaffected by the distribution.
Are there ways for investors to reduce Class A and A-2 sales charges?
Yes. We are committed to helping investors get the most from their investments. Find out more about reducing sales charges on Class A and A-2 share purchases.
Can investors exchange among share classes or across Capital Group KKR Public- Private+ (PPS) Funds and the American Funds?
Any exchange of shares of the fund for shares of another fund as described below will be permitted only in connection with the fund's periodic repurchase offers.
Exchanges are generally allowed only within the same share class of PPS Funds and the American Funds because of the different expenses associated with each class. Clients of Capital Group Private Client Services may exchange the shares of the fund for those of any other fund(s) managed by Capital Research and Management Company or its affiliates.
Exchange purchases are subject to the minimum investment requirements of the fund purchased and no sales charge generally applies. However, exchanges of shares from American Funds U.S. Government Money Market Fund are subject to applicable sales charges, unless the American Funds U.S. Government Money Market Fund shares were acquired by an exchange from a fund having a sales charge, or by reinvestment or cross-reinvestment of dividends or capital gain distributions.
Class A-2 shares may be exchanged without a sales charge into the same share class only of other PPS Funds (but not the American Funds).
Exchanges of Class F shares may generally only be made through fee-based programs of investment firms that have special agreements with the fund's distributor and certain registered investment advisors.
Shares held in employer-sponsored retirement plans may be exchanged into other PPS Funds or the American Funds by contacting your plan administrator or recordkeeper. Exchange redemptions and purchases are processed simultaneously at the share prices next determined after the exchange order is received.
To learn more about exchanges, visit the Account Resource Center and select the appropriate account type. Exchange transactions have the same tax consequences as ordinary sales and purchases.