Rebalance Request | American Funds

Rebalance Request

What does it mean to rebalance my account?

When you rebalance your account, it means you are exchanging shares between funds in order to restore your portfolio to your desired investment mix (target allocations).

How do I set my target allocations?

  • On the Rebalance request page, you can manually enter the desired allocation percentages for each fund you would like to include in your target allocations.
  • You can import the previous target allocation (the allocations last used to rebalance the account) by clicking the “Import previous target allocations” link.

Can I add a new fund to my target allocations?

Yes. To add another fund, click Add fund, select your fund and enter your target allocation percentage.

Note: For new funds, the minimum initial investment for all account types is $250 ($1,000 for the money market fund and state-specific tax-exempt funds).

Can I exclude my money market fund?

Yes. Simply click the link that says “Exclude this fund when rebalancing” on the request page.

What is an automatic rebalancing plan?

It’s a convenient way to regularly rebalance your account. When you set up an automatic rebalancing plan, you authorize American Funds to rebalance your account to your desired target allocation on a schedule that you specify (quarterly, semiannually or annually).

Keep in mind that transactions required to rebalance your account (the selling and purchasing of shares) may have tax consequences.

Setting up your automatic rebalancing plan

To set up an automatic rebalancing plan, under “Set your frequency” select a quarterly, semiannual or annual rebalancing plan. All automatic rebalancing transactions are processed on the 20th calendar day of the month, unless the scheduled date falls on a weekend or holiday. (If the scheduled rebalance falls on a weekend or holiday, rebalancing will be processed on the following business day.)

Deleting your automatic rebalance plan

You can delete your automatic rebalance plan at any time by going to the Automatic Transactions page. Your request must be made by 4 p.m. Eastern time on the business day before the next scheduled rebalance date to immediately stop all rebalancing transactions.

How much must my account deviate from target allocations for it to rebalance?

In order for the account to rebalance, an allocation change must be 5% or more for one of the funds. Changes to other funds may be for smaller percentages as long as one fund’s allocation change is 5% or more.

This account will not rebalance.

Fund Current allocation Target allocation Difference
AMCAP Fund 46% 50% 4%
The Growth Fund of America 21% 20% 1%
The Bond Fund of America 33% 30% 3%

This account will rebalance.

Fund Current allocation Target allocation Difference
AMCAP Fund 40% 50% 10%
The Growth Fund of America 24% 20% 4%
The Bond Fund of America 36% 30% 6%

Can I rebalance across share classes?

No. Rebalancing is allowed only within the same share class.

Can I rebalance across different accounts?

No. Rebalancing is allowed only within one account.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.