Accounts eligible for aggregation
A shareholder may aggregate investments in American Funds (including CollegeAmerica®) and American Legacy* made by the shareholder, shareholder’s spouse (or equivalent if recognized under local law) or children under the age of 21, if made for their own account(s) and/or:
- trust accounts established by the above family members (However, if the person(s) who established the trust is deceased, the trust account may be aggregated with accounts of the person who is the primary beneficiary of the trust.)
- solely controlled business accounts
- single participant retirement plans
- endowments or foundations established and controlled by the shareholder or his or her immediate family
- CollegeAmerica accounts, which will be aggregated at the account owner level (Class 529-E accounts may only be aggregated with an eligible employer plan.)
*Applies to American Legacy accounts established on or before March 31, 2007.
Trustees or other fiduciaries
Investments made by a trustee or other fiduciary for a single trust estate or fiduciary account and multiple-employee benefit plans of a single employer or affiliated employers — provided they are not aggregated with personal accounts — may be aggregated. We do not aggregate accounts of shareholders affiliated with each other by virtue of being in an association.
Investments made for participant accounts of a 403(b) plan that is treated like an employer-sponsored plan, or multiple 403(b) plans of a single employer or affiliated employers, may be aggregated.
Non-profit and charitable organizations
Investments made for non-profit, charitable or educational organizations (or any employer-sponsored retirement plan for such an endowment or foundation) or any endowments or foundations established and controlled by the organization may be aggregated.
SEP and SIMPLE IRAs
Aggregation of participant IRA accounts under a SEP or SIMPLE IRA plan depend on the plan agreement selected by the plan sponsor. When a plan sponsor signs an American Funds prototype agreement, all plan contributions are required to come to American Funds. When a sponsor selects another prototype of an IRA Model Agreement, some of the contributions may come to American Funds, but the participants are not required to establish an account with American Funds. As a result, accounts will be aggregated as follows:
- Using the American Funds prototype SEP or SIMPLE IRA plan agreement will cause the participant account values to be aggregated for reduced sales charges on Class A shares. When the group assets reach a breakpoint, all plan participants benefit from the reduced sales charge. Participants’ accounts will not be linked with personal accounts.
- When the plan sponsor does not use an AFD prototype agreement for the plan, the participants’ accounts will be linked to any other personal accounts they may have with American Funds. This may be advantageous for participants already invested in American Funds or those who plan to establish personal accounts in the future.
Trust funds and pooled accounts
Investments made by a common trust fund or other diversified pooled accounts not specifically formed for the purpose of accumulating fund shares may be aggregated.
Accounts ineligible for aggregation
At the request of certain investment firms, some accounts are set up as “street name” or “nominee” accounts. This simply means that the investment firm has sole access, or that we have limited access, to its clients’ account information. Since American Funds Service Company has little or no access to certain nominee or street name account information, we are generally unable to aggregate those accounts. A shareholder should check with his or her financial adviser to determine if this applies to an account.