News & Announcements - Revise Fee Scheduled Service Agreement | American Funds


News & Announcements

Revised Fee Schedule and Services Agreement

November 14, 2017

We have revised the RecordkeeperDirect-American Funds Recordkeeping Services Agreement (PDF) effective January 1, 2018. Please keep a copy for your records.

To ensure we can continue to provide the high level of service that you have come to expect from American Funds, as part of the revisions to the agreement, we are revising the recordkeeping fee structure for Class R shares — our first pricing change in 15 years. For impacted plans, the new fee structure will begin with the first billing period that starts in 2018.

Your recordkeeping fee is subject to adjustment annually and, for most R share classes, will depend on your plan asset level. Because of this annual adjustment, your recordkeeping fees may decline or be eliminated as plan assets increase.

What You Need to Do

You can review the new fee schedule in Exhibit B of the revised agreement. Please keep a copy for your records.

Soon after the new fees take effect, we will email you a reminder with an overview of how we will support your participant fee disclosure obligations.

Recordkeeping Fee Composition

When applicable, your recordkeeping fees will consist of two components:

  • A base “plan” fee — This fee will be invoiced to you on a quarterly basis, which may be different from the way you previously elected to pay your plan fees. Invoices can be paid by check or from plan-level accounts, such as a forfeiture account or Plan Expense Account. If you would prefer to have the plan fee debited from participant accounts (on a pro rata basis), complete a Fee Payment Authorization form(PDF), sections 1, 3.A and 4.
  • A “per-participant” fee — A $5 fee will be deducted quarterly from each participant account ($20 a year).

For More Information

If you have any questions about the revised fee schedule or services agreement, please call us at (800) 421-6019, ext. 81.

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.