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AUGUST 10, 2017
There are upcoming changes to our policy around 12b-1 service fees and the contingent deferred sales charge (CDSC) for Class A/529-A shares.
We are making these changes to better support dealer firms’ transition to the DOL fiduciary rule by making our A/529-A-share policy more consistent with those of mutual fund companies across the industry.
Effective August 14, 2017, the following changes will impact Class A/529-A shares:
Accelerated 12b-1 Service Fees: 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 immediately after 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.
Extended CDSC Period: For Class A and 529-A shares purchased at NAV with an associated commission, the applicable CDSC period on redemptions of shares purchased under that privilege will now be 18 months from the date of purchase for all such purchases made on or after August 14, 2017.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
This material is intended for use by financial professionals or in conjunction with the advice of a financial professional.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses, summary prospectuses and CollegeAmerica Program Description, which can be obtained from a financial professional and should be read carefully before investing.
The American Funds are distributed by American Funds Distributors, Inc.