Select a fund for details on strategy, expenses, performance, and rankings. The amount eligible for this "Reinstatement Privilege" may not exceed the amount of your redemption proceeds and is only allowed once per year. Reducing Sales Charges on Class A, 529-A & ABLE-A, Sales charges and breakpoints for Class A shares, Sales charges and breakpoints for Class 529-A and ABLE-A shares, American Funds U.S. Government Money Market Fund, Sign up for paperless delivery of documents. It has an expense ratio of 0.58% compared to the category average of 0.89%. Nationwide Securities, LLC They are Mutual Fund Breakpoints: A Break Worth Taking and Understanding Mutual Fund Classes. Mutual funds pool the money of many investors, who buy shares of the funds, to purchase a range of securities to meet specified objectives, such as growth, income or both. as at 31 December 2022. 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. 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. Use your plan ID (available on your account statement) to determine which employer-sponsored retirement plan website to use: IF YOUR PLAN ID BEGINS WITH IRK, BRK, 1 OR 2, Traditional vs. Roth 401(k)/403(b) Analyzer. The Nationwide Retirement Institute is a division of NISC. Money market funds pay dividends that are usually declared daily, paid Registered representatives can fulfill Continuing Education requirements, view their industry CRD record and perform other compliance tasks. However, there is a CDSC of up to 1.00% of the offering price or the NAV of the shares on the redemption date (whichever is less) for shares redeemed within 18 months of purchase or lower (Short-Term Municipal Fund).6 Listed are the front-end sales loads reallowed to dealers as a percentage of the offering price of certain of the funds Non-Money Market Investor A shares. Investor C SharesPurchased with no initial sales charge to your clients but have higher ongoing fees. This includes accounts held directly with American Century and those held through a financial intermediary. Washington, DC 20006 Remove the guesswork from choosing investments. 12.28. File a complaint about fraud or unfair practices. Where can I find more information about Mutual Fund Breakpoints and discount eligibility? 1 For purchases under $500,000, the 0.25% trail is effective immediately. 5 The Distributor may pay a dealer reallowance or placement fee to the dealer as shown on NAV purchases of Investor A shares. Despite its struggles in the first half of 2022, American Century Sustainable Equity remains a respectable option among sustainable core equity funds. The Task Force was convened in Jan. 2003, at the request of the SEC, followed NASD's examination findings and issuance of Special Notice to Members 02-85, dated Dec. 23, 2002, which reminded broker/dealers of their obligation to apply correctly breakpoint discounts to front-end sales load mutual fund transactions. . *Effective May 1, 2020, the fund was renamed to BlackRock Income Fund. As a result, FINRA has taken a number of steps to ensure that investors who did not receive appropriate discounts are able to obtain a refund and that in the future investors will receive all discounts to which they are entitled. This simply means that the investment firm has sole access, or that we have limited access, to their clients account information. Consider the fund's investment objectives, risks, charges and . In cases where the Distributor acts as a dealer, it will not receive a placement fee on NAV purchases of Investor A shares. Discuss the availability of breakpoint discounts with your clients prior to purchasing the mutual fund shares. A contingent deferred sales charge of 1.00% may be imposed, however, on redemptions made within 18 months of the date of purchase on shares that were purchased without an initial sales charge. Here you can find resources for mutual fund purchases, including information on sales charges, reductions or sales charge waivers, dealer commissions, and more. Aggregation of participant IRA accounts under a SEP or SIMPLE IRA plan depend on the plan agreement selected by the plan sponsor. 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. The fund uses a balanced approach to invest in a broad range of securities, including common stocks and investment-grade bonds. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Past profits do not guarantee future profits. International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economical or other developments. Fidelity does not provide legal or tax advice. In such instances, the automatic conversion of Investor C shares to Investor A shares will occur approximately eight years after the Effective Date. The Joint NASD/Industry Task Force urges mutual funds to include these definitions in their prospectuses and other relevant materials as soon as is reasonably practicable. Have your client read it carefully. Depending on your state of residence, there may be an in-state plan that provides state tax and other state benefits not available through CollegeAmerica (such as financial aid, scholarship funds and protection from creditors) or ABLEAmerica. Sales charges & breakpoints Account aggregation Concurrent purchases Rights of accumulation Statement of intention Right of reinvestment (reinstatement) Gift of shares Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. To purchase Nationwide funds, call 1-877-245-0761to talk to a specialist, or speak with your financial professional. 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. *$250K NAV Breakpoints are not applicable to CollegeAdvantage 529. Terms and conditions To learn more about FINRA breakpoints initiatives, please see our Mutual Fund Breakpoints Web page. File a complaint about fraud or unfair practices. The 12b-1 fees can be used to pay for advertising, for sales literature and can be used to compensate broker . for more details as well as more information about dealer payments in general. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. 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. The answer to your question depends on how the particular fund family establishes eligibility for breakpoint discounts. 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. They can offer built-in diversification and professional management but, like investing in any security, investing in a mutual fund involves certain risks. Class I- Purchased with no initial sales charge, no CDSC charge applied and no ongoing sales charge. Ask your clients for the information necessary to determine their eligibility to receive breakpoint discounts. Does not include Nationwide Loomis Core Bond Fund and Nationwide Loomis Short Term Bond Fund. Investments may not exceed $1 million. It combines growth and income investing with an emphasis on. Report a concern about FINRA at 888-700-0028, Securities Industry Essentials Exam (SIE), Financial Industry Networking Directory (FIND), Breakpoint Checklist and Breakpoint Worksheet, Status Report: Implementation of Recommendations of Joint NASD/Industry Breakpoint Task Force, Report of the Joint NASD/Industry Task Force on Breakpoints, Common Definitions Mutual Funds Should Use to Describe Breakpoint Discount Rules, Customer Letters About Breakpoint Refunds, Frequently Asked Questions about Breakpoints, Task Force Recommendations for New Confirmation Content, FINRA Sanctions Barclays Capital, Inc. $13.75 Million for Unsuitable Mutual Fund Transactions and Related Supervisory Failures, FINRA Sanctions 12 Firms a Total of $6.7 Million for Failing to Apply Sales Charge Discounts to Customers' Purchases of UITs, FINRA Fines Wells Fargo $2 Million for Unsuitable Sales of Reverse Convertibles to Elderly Customers and Failure to Provide Breakpoints on UIT Sales, Merrill Lynch to Pay More Than $2.5 Million Related to UIT Sales Charge Discount Failures, FINRA Fines 25 Firms More Than $2.1 Million for Failures in Mutual Fund Breakpoint Review, Other Violations, FINRA Fines Robert W. Baird & Co. $500,000 for Fee-Based Account, Breakpoint Violations, FINRA Fines Oppenheimer $1 Million to Settle Charges that It Produced Flawed, Incomplete and Untimely Data in Breakpoint Self-Assessment, Report of the Joint FINRA/Industry Task Force on Breakpoints. Investor C shares automatically convert to Investor A shares approximately eight years after the date of purchase. Before investing have your client consider the funds', variable investment products', or exchange traded products' investment objectives, risks, charges, and expenses. Supplemental information containing changes to the original prospectus may have been added to the beginning of the document. See the funds' prospectuses for more information. 7 NAV purchases at specified breakpoints on BlackRock fixed income funds may be subject to a CDSC if liquidated within 18 months of purchase as follows: most taxable fixed income funds: 0.75%; BlackRock GNMA, Systematic ESG Bond, U.S. Government Bond: 0.50% ; BlackRock Inflation Protected Bond: 0.15%; all tax-free fixed income funds, BlackRock Global Long/Short Credit and BlackRock Emerging Markets Flexible Dynamic Bond: 1.00%.8 NAV purchases at specified breakpoints on BlackRock fixed income funds may be subject to a CDSC if liquidated within 9 months of purchase as follows: Short-Term Municipal: 0.25%.9 The following dealer reallowance will apply to most taxable fixed income funds (see below for exceptions). 2 Class A share net asset value (NAV) purchases: no annual commission breakpoint reset; become eligible for service fee payments . When a plan sponsor signs an American Funds prototype agreement, all plan contributions are required to come to American Funds. Learn about options that may be available to you. Individual investors were turned away, and those who bought American funds through an intermediary often paid front-end sales charges of up to 5.75%. Fixed income risks include interest-rate and credit risk. Fund payments to Nationwide Please refer to your prospectus for additional information on reduced or waived sales charges. Breakpoint discounts and eligibility requirements are located in the fund's prospectus and/or statement of additional information. As of November 23, 2020 (the "Effective Date"), certain financial intermediaries, may not have been tracking such holding periods and therefore may not be able to process such conversions. $1000.0000. Typically, when interest rate rise, there is a corresponding decline in bond values. Large block orders requiring special handling, restricted stock orders, and certain Funds may offer purchasers of Class A shares volume discounts also called breakpoint discounts on the front-end sales charge if the investor: Makes a large purchase; Holds other mutual funds offered by the same fund family; Commits to purchase additional shares of the fund; or 0.75% on $1,000,000 to $2,999,999, 0.50% on $3,000,000 to $14,999,999, and 0.25% on $15,000,000 and above. This includes information about your client's own holdings as well as the holdings of certain parties related to your client, such as your client's spouse or children. Asset allocation strategies do not assure profit and do not protect against loss. Read the prospectus carefully before investing. It is not investment advice. There are a number of ways you can reduce your sales charge. Please review the beginning of the Advisor Fund prospectus and/or 529 Plan Offering Statement. You should consider the fund's investment objectives, risks, and charges and expenses carefully before you invest. Fidelity Institutional Asset Management (FIAM) investment management services and products are managed by the Fidelity Investments companies of FIAM LLC, a U.S. registered investment adviser, or Fidelity Institutional Asset Management Trust Company, a New Hampshire trust company. 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. Breakpoints Depending on share class, mutual funds often offer volume discounts on front-end sales charges for larger investments. 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 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. 4The following reallowance/placement fee to dealers will apply to most Multi-Asset Funds: 1.00% on $1,000,000 to $2,999,999, 0.50% on $3,000,000 to $14,999,999, 0.25% on $15,000,000 and above; BlackRock Balanced Capital / BlackRock Multi-Asset Income / BlackRock Dynamic High Income: 0.75% on $250,000 to $2,999,999, 0.50% on $3,000,000 to $14,999,999, 0.25% on $15,000,000 and above; BlackRock Tactical Opportunities: 0.75% on $1,000,000 to $2,999,999, 0.50% on $3,000,000 to $14,999,999, 0.25% on $15,000,000 and above; BlackRock Global Allocation: 1.00% on $250,000 to $2,999,999, 0.50% on $3,000,000 to $14,999,999, 0.25% on $15,000,000 and above; BlackRock Managed Income: 0.50% on $250,000 to $2,999,999, 0.25% on $3,000,000 to $14,999,999, 0.15% on $15,000,000 and above. short sales, exchange-traded funds (ETFs), and U.S.-traded foreign secu-rities (ADRs, or American Depository Receipts, and ORDs, or Ordinaries).1 For details on foreign stock trading, see the Foreign Stocks section. Firm compliance professionals can access filings and requests, run reports and submit support tickets. 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. For retail accounts established directly at the fund company, the initial and subsequent minimums are different. About 1/2 of all mutual funds have adopted such plans. You may have to produce evidence that you qualify for a reduced sales charge or waiver before you receive it. Investors can qualify for breakpoints through a single purchase of Class A mutual fund shares, with a letter of intent (LOI) or through rights of accumulation (ROA). Please review the beginning of the Advisor Fund prospectus and/or 529 Plan Offering Statement. 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. <iframe src="https://www.googletagmanager.com/ns.html?id=GTM-5P3ZSM2" height="0" width="0" style="display: none; visibility: hidden"></iframe> Nationwide, the Nationwide N and Eagle, Nationwide is on your side, Nationwide Funds Group and Nationwide Retirement Institute are service marks of Nationwide Mutual Insurance Company. This publication is authorized for distribution only when preceded or accompanied by a prospectus, or summary prospectus, for the portfolio being offered. The size of the potential loss is limited to the funds held by us for and on your behalf, in relation to your trading account. If you choose to buy Investor A shares, generally a sales charge is paid at the time of purchase. The fund's prospectus or summary prospectus, which can be obtained by calling 1.800.345.2021, contains this and other information about the fund, and should be read carefully before investing. CollegeAmerica and ABLEAmerica are distributed by American Funds Distributors, Inc. and sold through unaffiliated intermediaries. You may be able to reduce the sales charge on Class A shares of the Fund This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice. For example, a mutual fund might charge a front-end load of 5.75 percent for share purchases of less than $50,000, but reduce the load to 4.50 percent for investments between $50,000 and $99,999, and further reduce or eliminate the load for larger investments. Under $50,000. If you are eligible, you must inform Customer Service or your investment professional or other financial intermediary at the time of your purchase that you qualify for such a reduction or waiver in order to receive it. 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.9 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. Align your investment choices with your personal values. All rights reserved. Copyright 2023 Capital Group. MainGate MLP Fund Class I. Firms often adjust the percentage of GDC paid to the salesperson as a way of rewarding total production. To ensure that your clients receive all the discounts to which they are entitled under a mutual fund's ROA rules, you must understand the funds' ROA rules and gather information concerning your client's own holdings and the holdings of the appropriate related parties. Since 1999, we've been a leading provider of financial technology, and our clients turn to us for the solutions they need when planning for their most important goals. See the funds' prospectuses for more information. To find information regarding ROA rules for each mutual fund, you should review the fund's prospectus and statement of additional information, or consult with your firm's compliance officer. The extent of the discount depends on the amount invested in a particular family of funds. Does not include Class A shares of fixed-income funds. Where can I find the schedule of breakpoint discounts for a mutual fund? Investments made for nonprofit, 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 can be aggregated. The investment seeks conservation of capital, current income and long-term growth of capital and income. assets under management. Registered investment products (including mutual funds and ETFs) and collective investment trusts managed by Fidelity Management Trust Company (FMTC) are offered by Fidelity Distributors Company LLC (FDC LLC), a registered broker-dealer. In order to research eligibility for a breakpoint discount, FINRA has created a Fund Analyzer. The minimum initial investment amount is generally $5 million ($3 million for endowments and foundations) per fund. What can I do to ensure that my clients receive breakpoint discounts? 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. I shares are for individual investors with $2,500,000 or for wrap or fee-based advisory programs as specified by the wrap programs provider. 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. Objective. You can combine simultaneous purchases (including purchases for gifts) of two or more American Funds of any share class, as well as holdings in CollegeAmerica and ABLEAmerica, as another way to reduce your Class A, 529-A and ABLE-A sales charges. FIAM products and services may be presented by FDC LLC, a non-exclusive financial intermediary affiliated with FIAM and compensated for such services. Capital Com SV Investments Limited, company Registration Number: 354252, registered address: 28 Octovriou 237, Lophitis Business Center II, 6th floor, 3035, Limassol, Cyprus. Please refer to our Risk Disclosure Statement. Thus, signing an LOI allows the investor to take advantage of discount that would not otherwise be available. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses which may be obtained visiting the iShares ETF and BlackRock Mutual Fund prospectus pages. To access and download mutual funds prospectuses, go to the Securities and Exchange Commission's (SEC) EDGAR Database on the SEC website. Clients can be anxious, have productive conversations. FINRA, OGC MainGate MLP Fund Class A. document.write(new Date().getFullYear()) Nationwide Mutual Insurance Company and affiliated companies, Privacy 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. No sales charge applies on investments of $250,000 or more. If a mutual fund offers breakpoint discounts, the breakpoint schedule will be listed in the fund's prospectus and statement of additional information. Investment advisory services focused on the unique needs of individual retirees, retirement plans, and their participants offered by Transamerica Retirement Advisors, LLC, a . Investor A SharesPurchased with varying initial sales charges, depending on the fund and investment amount, and provide up-front commissions and ongoing trails that begin immediately.