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Please see FINRA OGC Interpretative Guidance for more information. Aquila Opportunity Growth Fund is a diversified, open-end mutual fund. Washington, DC 20006 Columbia Threadneedle Investments - Asset Management - Funds as at 31 December 2022. Financial Professional Compensation | Capital Group Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. Investments are subject to market risk. Leave the BlackRock site for Individuals to explore other content, Welcome to the BlackRock site for individuals. You may also wish to read our Investor Alert, Mutual Fund Breakpoints: A Break Worth Taking. PDF Guide to mutual fund investing - J.P. Morgan Capital Group Lowers Fees on 18 Funds - PR Newswire 12.46. In addition to issuing Investor Alerts, FINRA has developed a Fund Analyzer that may help investors choose the right mutual fund share class in order to minimize fees. What can I do to ensure that my clients receive breakpoint discounts? To ensure your investment receives the appropriate sales charge, you or your financial professional should notify us when a purchase is eligible for a reduced sales charge; otherwise, the maximum sales charge may be applied. Excludes American Funds Inflation Linked Bond Fund, American Funds Short-Term Tax-Exempt Bond Fund, Intermediate Bond Fund of America, Limited Term Tax-Exempt Bond Fund of America and Short-Term Bond Fund of America. EN Key Risk- The funds are actively managed and its characteristics will vary. This includes accounts held directly with American Century and those held through a financial intermediary. Series 6: Investment Companies (Buying Mutual Fund Shares) - Quizlet Mutual Funds - JanneyCom Returns without sales charges would be lower if the sales charges were included. Commodity interest trading involves substantial risk of loss. Below you'll find the sales charges and breakpoints for funds with Class A/A1 and Class C/C1 shares offered by Franklin Distributors, LLC. For example, by signing an LOI to buy $25,000 worth of fund shares over the course of a year in $5,000 increments, an investor can obtain the $25,000 breakpoint discount on each $5,000 purchase. Class A UnitsPurchased with varying initial sales charges, depending on the fund and investment amount, and provide up-front commissions and ongoing trails that begin immediately. It also invests in securities issued and guaranteed by the U.S. government and by federal agencies and . Accessibility The referenced initial and subsequent minimums are for accounts established through a financial intermediary. Short-selling entails special risks. CDSC of 1.00% is applied if withdrawal is made within one year of purchase.*. Where can I find information to help educate my clients about breakpoint discounts? It's relatively straightforward for the salesperson to compare potential compensation between brokerage firms, and allows him or her to see how much the firm is earning from their work. Mutual fund prospectuses and statements of additional information also may be available online at a fund company's website. The initial sales charge can be reduced or eliminated through one or a combination of the following: a Letter of Intent, the Right of Accumulation or the reinstatement privilege. Firms often adjust the percentage of GDC paid to the salesperson as a way of rewarding total production. MONEY MARKET FUNDS Typically less volatile than other types of mutual funds because they invest in high-quality, short-term money market instruments that are issued and payable in U.S. dollars. If you redeem Investor A or Institutional shares and within 90 days buy new Investor A Shares of the same or another fund, you will not pay a sales charge on the new purchase amount. The information on this web site is intended for U.S. residents only. Share Classes & Loads | BlackRock The dealer reallowance indicated will apply up to the indicated breakpoint (so that, for example, a sale of $4 million worth of Investor A Shares in an equity fund will result in a placement fee of 1.00% on the first $3 million and 0.50% on the final $1 million). When recalculating sales charges for Class A purchases, should firms include the value of mutual fund holdings in Class B shares held in the same fund family? The 12b-1 fees can be used to pay for advertising, for sales literature and can be used to compensate broker . The information provided does not constitute a solicitation of an offer to buy, or an offer to sell securities in any jurisdiction to any person to whom it is not lawful to make such an offer. This list of Frequently Asked Questions covers topics such as Rights of Accumulation (ROA) and Letters of Intent (LOI), as well as resources to help you educate your clients. When a plan sponsor signs an American Funds prototype agreement, all plan contributions are required to come to American Funds. All rights reserved. American Funds Distributors, Inc., member FINRA. The minimum investment requirement may be waived if the investor has an aggregate investment in the American Century family of funds of $10 million or more ($5 million for endowments and foundations). The commission the agent receives is usually a percentage of this figure, though some firms use Production Credits, usually smaller than GDC, to determine payouts and retain more revenue. Supplemental information containing changes to the original prospectus may have been added to the beginning of the document. The outline serves as a model of the critical breakpoint topics firms should address in training. 1The Distributor may pay a dealer reallowance or placement fee to the dealer as shown on NAV purchases of Investor A Shares of $1 million or more. A contingent deferred sales charge of 1.00% is assessed on certain withdrawals of investments in Class A Units made within 18 months after purchase where no initial sales charge was paid at time of purchase as part of an investment of $1,000,000 or more. Cyber security The Investor A front-end sales charges can be reduced or eliminated through one or a combination of the following: the Right of Accumulation, a Letter of Intent, the Reinstatement Privilege, quantity discounts or an applicable waiver of the sales charge. DE $100,000 to $249,999. Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. The extent of the discount depends on the amount invested in a particular family of funds. Growth, value, blend, global sector, asset allocation funds, and 529 options - class A. BlackRock Managed Income will be subject to a 0.50% charge if liquidated within 18 months of purchase. United States document.write(new Date().getFullYear()) Nationwide Mutual Insurance Company and affiliated companies, Privacy OPTFX. Depending on the amount of the purchase, you may qualify for a reduction in the sales charge. GDC provides transparency from both the salesperson's and the client's perspective, as the concession is usually published in the prospectus. Discuss with your clients whether breakpoint discounts are available before they buy mutual fund shares. However, every firm that sells or anticipates selling mutual funds, no matter its business model, should cover the topics listed in parts I and II of the outline. Arbitration and mediation case participants and FINRA neutrals can view case information and submit documents through this Dispute Resolution Portal. Sales charge information for these funds is included in the table showing funds that have a 2.50% maximum sales charge. We have issued two Investor Alerts that discuss mutual fund breakpoints. Where can I find more information about Mutual Fund Breakpoints and discount eligibility? For example, an investor who plans to buy $25,000 worth of shares in a particular mutual fund over the course of a year, but in 5 increments of $5,000 could sign a letter of intent pursuant to which the investor could obtain the breakpoint discount available on purchases of $25,000 on each $5,000 purchase. Please see the funds prospectuses for more information. Record this information in each investor's files so that future purchases of this fund may result in additional breakpoint discounts. Special statement of intention rules apply to shareholders investing by payroll deduction. Class CPurchased with no initial sales charge to your clients but have higher ongoing fees. The fund may use derivatives to hedge its investments or to seek to enhance returns. Questions and answers regarding the Mutual Fund Breakpoint Assessment. You should consider your client's financial needs, goals, and risk tolerance before making any investment recommendations. 3.63% (m) 2.39% (m) CUSIPS. MFS FUND DISTRIBUTORS, INC., BOSTON, MA MFSB_PRICE . The amount eligible for this "Reinstatement Privilege" may not exceed the amount of your redemption proceeds and is only allowed once per year.See the funds' prospectuses for more information. Sitemap The investment seeks conservation of capital, current income and long-term growth of capital and income. How to Buy American Funds Without a Sales Charge | Kiplinger CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. It has an expense ratio of 0.58% compared to the category average of 0.89%. You can add the value of any American Funds share class that you already own to new Class A, 529-A and ABLE-A share purchases in order to qualify for a reduced sales charge. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. Class C Shares Purchases and maximum account value up to $249,999 for Target Risk, Tax-Advantaged Fixed Income Funds, MFS Global Total Return Fund and MFS Total Return Fund; $499,999 for Fixed Income, MFS Lifetime Income and Limited Maturity Fund; and $999,999 for Equity, Target Date and Multi-Asset Funds. Contingent deferred sales charge A 1% contingent deferred sales charge (CDSC) may be assessed if a redemption occurs within18 months of purchase. Please refer to your prospectus for additional information on reduced or waived sales charges. FINRA operates the largest securities dispute resolution forum in the United States, To report on abuse or fraud in the industry. In addition to issuing Investor Alerts, FINRA has developed a Fund Analyzer that may help investors choose the right mutual fund share class in order to minimize fees. The Investor A front-end sales charges can be reduced or eliminated through one or a combination of the following: the Right of Accumulation, a Letter of Intent, the Reinstatement Privilege, quantity discounts or an applicable waiver of the sales charge. Investments made at or above the $1 million breakpoint become eligible for ongoing service fees after the assets are held for at least one year.