RecordkeeperDirect Updated Fee Structure | American Funds

News & Announcements

JULY 28, 2017

RecordkeeperDirect Updated Fee Structure and New Share Classes for 2018

As you may be aware, the growing complexity and rising costs associated with retirement plans — especially smaller ones — is a challenge. To ensure we can continue to provide the high level of service that you and your clients have come to expect from our RecordkeeperDirect®-American Funds program, we are making the following changes for new and existing plans starting January 1, 2018:

  • Two new fee-based share classes — To provide greater support and pricing flexibility for fee-based advisors, Class R-5E and R-6 shares will be available. Class R-5 shares will no longer be available to new plans (but can be retained by existing plans).
  • Reduced plan setup fees — Installation fees for all share classes will be $500 for startup plans and $0 for takeover plans.
  • Revised recordkeeping fees and TPA payments — See the table below for details.

Learn more about the updated fee structure in this information sheet (PDF), including answers to frequently asked questions.

If you have any questions about these changes, please call us at (800) 421-6019.

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.