RecordkeeperDirect®-American Funds | American Funds

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RecordkeeperDirect®-American Funds

For smaller plans and startups, RecordkeeperDirect-American Funds is a simple, competitively priced retirement plan solution that offers the benefit of customized plan administration from a TPA.
  • May be appropriate for plans with fewer than 250 participants and up to $3 million in assets
  • Available for 401(k), 403(b), profit-sharing and money purchase plans
  • Investments from a single fund family, including our well-regarded target date funds
  • A choice of 4 share classes for advisor compensation flexibility

Compensation Options to Support Your Level of Service

Choose from 3 share classes that offer an asset-based compensation rate and 1 share class that supports fee-based advisors.

Annual Asset-Based Advisor Compensation and Fund Expenses

Share Class

Advisor Compensation

Average Expense Ratio1,2

R-2

0.75%

1.39%

R-3

0.50%

0.97%

R-4

0.25%

0.71%

R-5

Paid separately; set by fee-based advisor

0.44%

Advisor compensation is paid quarterly based on average daily assets held during the period. See Advisor Compensation for more details. Compensation guidelines may vary by firm; check with your home office for more information.


Plan Pricing to Help You Win and Keep More Business

  • Straightforward pricing. Your clients will know exactly how much they’re paying and what they’re paying for.
  • Flat-rate fees. Recordkeeping fees are based on the number of participants — not plan assets. This means recordkeeping costs will not increase just because plan assets grow.
Installation and Recordkeeping Fees

Please note: The fee structure will be revised in 2018, and two new share classes will be offered. Learn more.

 

Share Class

Average Participant Balance

One-Time Installation Fee

Annual Recordkeeping Fees

R-2

$5,000 or less


$5,001 or more

$500


$0

$500


$0

R-3

$50,000 or less


$50,001 or more

$750


$0

$750


$0

R-4

$10,000 or less


$10,001 to $25,000


$25,001 to $50,000


$50,001 or more

$1,000


$750


$750


$0

$1,500 + $15 per participant


$1,500 + $5 per participant


$1,000


$0

R-5

$10,000 or less


$10,001 to $25,000


$25,001 to $50,000


$50,001 to $100,000


$100,001 or more

$1,000


$750


$750


$750


$0

$1,500 + $20 per participant


$1,500 + $10 per participant


$1,000 + $5 per participant


$750


$0

Please note that the annual fee for trustee and 403(b) custodial services provided by Capital Bank and Trust Company is $750 for all share classes; all TPA services are billed and charged separately; an $85 one-time loan initiation charge and a $50 annual loan maintenance fee apply to all share classes. The average participant account balance equals the total plan assets held on the recordkeeping system divided by the number of plan participants with assets in their accounts.

See Share Classes and Expenses for more details.


Core Investments to Create Plan Menus More Easily

Plans can have up to 20 investments from the following choices:

A simple way for participants to choose a single, diversified fund with a portfolio that changes over time. Fund selection is based on the participant’s expected year of retirement. The series is a qualified default investment alternative and is counted as a single investment option.

Objective-based funds of funds, excluding tax-exempt funds, designed to help investors pursue their investment goals. The funds invest in a carefully selected mix of American Funds that is actively monitored to ensure holdings are aligned with fund objectives.

American Funds offers more than two dozen options and a wide range of investment objectives, excluding tax-exempt funds. We’re one of the nation’s largest mutual fund companies and have been helping investors pursue long-term investment success since 1931.


Resources, Tools and Services to Help Your Plans Run Smoothly

Along with a third-party administrator (TPA), we offer support to help you and your clients manage the plan efficiently and effectively. Please note that TPAs must be authorized to provide services for RecordkeeperDirect-American Funds. Our support includes:

Fiduciary services: We make optional, flexible investment-related fiduciary services available through an independent third-party, Wilshire Associates Incorporated, at a reasonable rate.

Annual Fiduciary Services Costs

ERISA 3(21) Nondiscretionary

Investment Advisor

ERISA 3(38) Discretionary

Investment Manager

0.02% of plan assets

0.05% of plan assets

See Third-Party Fiduciary Services for more details.

Personalized Sales and Service

  • Prospecting and selling strategies
  • In-person assistance with finalist presentations
  • Targeted and powerful proposals
  • Responsive ongoing plan service, including investment and plan reviews

Business-Building Resources

  • Personalized value propositions
  • Help with designing plan investment menus
  • Hypothetical examples to address client concerns and encourage a long-term focus
  • Support with plan reviews and reports

On-Site and Web Participant Services

  • Resources and support to educate participants and guide them through enrollment
  • Online and print materials that help employees make sound investment decisions

Website Demos

Sponsor site demo — Get a summary of the online features that will help you manage your clients’ plans.

Participant site demo — See what online tools and resources are available to plan participants.

What’s Next

Get a Preliminary Fee Quote

Use our Price-It Tool℠ to get an estimate of plan costs.

 


Compare Plan Fees and Expenses

Use our Retirement Plan Cost Comparison Tool to compare various retirement plan providers.

 


Order a Customized Proposal

Close the sale with an American Funds Retirement Plan Proposal.

 


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, summary prospectuses and CollegeAmerica Program Description, which can be obtained from a financial professional and should be read carefully before investing. 

Investment allocations for funds of funds may not achieve fund objectives. There are expenses associated with the underlying funds in addition to fund-of-funds expenses. The funds' risks are directly related to the risks of the underlying funds, as described herein. 

1

Actual expense ratios, as reported in each fund’s prospectus available at the time of publication, range from 0.69% to 2.03% for R-2; 0.49% to 1.61% for R-3; 0.45% to 1.29% for R-4; and 0.30% to 0.98% for R-5.

2

Average expense ratios are provided only as examples. The actual average expense ratio depends on the investments selected for the plan and participant allocations. Expense ratios reflect applicable fee waivers and expense reimbursements, without which expenses would be higher. The average expense ratio shown for each share class is for all funded investments and is weighted, based on average daily net assets in the program as of 12/31/2016. Accordingly, more weight is given to funds with more assets. 

Content contained herein is not intended to serve as impartial investment or fiduciary advice. The content has been developed by Capital Group, which receives fees for managing, distributing and/or servicing its investments.