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Advisor Compensation

Commission Changes for No-Load Class A Shares

Beginning July 15, 2014, the dealer commission changed from 0.50% to 1.00% for amounts of $4 million to $10 million, and from 0.25% to 0.50% for amounts of $10 million to $25 million.*

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). Service fees are 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 and 529-A Shares

Commissions

A dealer commission is paid at the time of purchase.

Dealer Commissions for Class A and 529-A Shares

Equity Fund and Bond Fund Commission

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

5.00%

2.00%

3.00%

$25,000 to $50,000

4.25%

2.00%

3.00%

$50,000 to $100,000

3.75%

2.00%

3.00%

$100,000 to $250,000

2.75%

2.00%

2.75%

$250,000 to $500,000

2.00%

2.00%

2.00%

$500,000 to $750,000

1.60%

1.60%

1.60%

$750,000 to $1 million

1.20%

1.20%

1.20%

$1 million and above

Up to 1.00%1,2

Up to 1.00%2,3

Up to 1.00%1,2

Portfolio Series Fund Commission

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

2.00%

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

1.60%

1.60%

1.60%

$750,000 to $1 million

1.20%

1.20%

1.20%

$1 million and above

Up to 1.00%2,3

Up to 1.00%1,2

Up to 1.00%1,2

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%

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%1,2

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%

3.50%

$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%2,3

Up to 1.00%1,2

Ongoing Service Fees

Ongoing service fees are paid to qualifying dealer firms on assets held at least one year (subject to annual fund board approval). Service fees are generally paid after quarters ending February, May, August and November following the first anniversary of purchase.

Annual Service Fees for Class A and 529-A Shares4

 

Assets

Annual service fee

All funds assets5

0.25%

Commissions and service fees are not paid on shares purchased under the broker NAV privilege.


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. Service fees are generally paid after quarters ending February, May, August and November following the first anniversary of purchase.

Conversion

Class C shares convert to Class F-1 shares in the month of the 10th anniversary of purchase, at which time ongoing annual service fees will be 0.25%. Class 529-C shares do not convert.


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). Service fees are generally paid after quarters ending February, May, August and November.


Class R Shares

Compensation

Advisor compensation, which begins accruing immediately after purchase, is generally paid after each calendar quarter based on average daily assets held during the period.

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-2E6

N/A

0.50%

R-3

0.50%

0.35%

R-4

0.25%

0.25%7

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-Multifund8 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

* Exceptions to these changes include American Funds Inflation Linked Bond Fund, Intermediate Bond Fund of America, Short-Term Bond Fund of America, American Funds Short-Term Tax-Exempt Bond Fund, Limited Term Tax-Exempt Bond Fund of America, American Funds Preservation Portfolio, American Funds Tax-Exempt Preservation Portfolio and American Funds College Enrollment Fund. These funds will continue to pay dealer commissions at current rates.


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. 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 offers tax and other benefits not available through CollegeAmerica. Before investing in any state's 529 plan, investors should consult a tax advisor. 

1

Dealers are paid commission of 1% on the first $10 million of NAV purchases (sales of $1 million of more), 0.50% on the next $15 million of NAV purchases and 0.25% on all purchases over $25 million. Commissions are based on cumulative investments with no annual reset.

2

See fund prospectuses, summary prospectuses for details.

3

Dealers are paid a commission of 1% on the first $4 million of NAV purchases (sales of $1 million or more), 0.50% on the next $6 million of NAV purchases and 0.25% on all NAV purchases over $10 million. Commissions are based on cumulative investments with no annual reset.

4

Accounts with aggregated assets of less than $1 million that do not qualify for NAV purchases will begin to accrue 12b-1 service fees to dealer firms in the first month of purchase. Accounts with aggregated assets of $1 million or more that qualify for NAV purchases with an associated commission will continue to accrue 12b-1 service fees to dealers beginning in the 13th month after purchase.

5

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%.

6

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

7

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%.

8

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.