Not that it makes it any easier to stomach for any persons hurt by this practice. However, I have noticed this spelled out in all the prospectus's, not that anyone who would of been hurt would of read them! OFcourse, it is buried in a document that that they know will probably go unnoticed, but it was disclosed!
American Funds Distributors, at its expense, currently provides additional compensation to
investment dealers. These payments may be made, at the discretion of American Funds
Distributors, to the top 75 dealers (or their affiliates) that have sold shares of the American
Funds. The level of payments made to a qualifying firm in any given year will vary and in
no case would exceed the sum of (a) .10% of the previous year’s American Funds sales by that dealer and (b) .02% of American Funds assets attributable to that dealer. For calendar year 2007, aggregate payments made by American Funds Distributors to dealers were less
than .02% of the assets of the American Funds. Aggregate payments may also change
from year to year. A number of factors will be considered in determining payments,
including the qualifying dealer’s sales, assets and redemption rates, and the quality of the
dealer’s relationship with American Funds Distributors. American Funds Distributors
makes these payments to help defray the costs incurred by qualifying dealers in connection
with efforts to educate financial advisers about the American Funds so that they can make
recommendations and provide services that are suitable and meet shareholder needs.
American Funds Distributors will, on an annual basis, determine the advisability of continuing
these payments. American Funds Distributors may also pay expenses associated
with meetings conducted by dealers outside the top 75 firms to facilitate educating
financial advisers and shareholders about the American Funds. If investment advisers, distributors
or affiliates of mutual funds pay additional compensation or other incentives in differing
amounts, dealer firms and their advisers may have financial incentives for recommending
a particular mutual fund over other mutual funds. You should consult with your
financial adviser and review carefully any disclosure by your financial adviser’s firm as to
compensation received.
year 2007, aggregate payments made by American Funds Distributors to dealers were less
than .02% of the assets of the American Funds. Aggregate payments may also change
from year to year. A number of factors will be considered in determining payments,
including the qualifying dealer’s sales, assets and redemption rates, and the quality of the
dealer’s relationship with American Funds Distributors. American Funds Distributors
makes these payments to help defray the costs incurred by qualifying dealers in connection
with efforts to educate financial advisers about the American Funds so that they can make
recommendations and provide services that are suitable and meet shareholder needs.
American Funds Distributors will, on an annual basis, determine the advisability of continuing
these payments. American Funds Distributors may also pay expenses associated
with meetings conducted by dealers outside the top 75 firms to facilitate educating
financial advisers and shareholders about the American Funds. If investment advisers, distributors
or affiliates of mutual funds pay additional compensation or other incentives in differing
amounts, dealer firms and their advisers may have financial incentives for recommending
a particular mutual fund over other mutual funds. You should consult with your
financial adviser and review carefully any disclosure by your financial adviser’s firm as to
compensation received.
that dealer and (b) .02% of American Funds assets attributable to that dealer. For calendar year 2007, aggregate payments made by American Funds Distributors to dealers were less
than .02% of the assets of the American Funds. Aggregate payments may also change
from year to year. A number of factors will be considered in determining payments,
including the qualifying dealer’s sales, assets and redemption rates, and the quality of the
dealer’s relationship with American Funds Distributors. American Funds Distributors
makes these payments to help defray the costs incurred by qualifying dealers in connection
with efforts to educate financial advisers about the American Funds so that they can make
recommendations and provide services that are suitable and meet shareholder needs.
American Funds Distributors will, on an annual basis, determine the advisability of continuing
these payments. American Funds Distributors may also pay expenses associated
with meetings conducted by dealers outside the top 75 firms to facilitate educating
financial advisers and shareholders about the American Funds. If investment advisers, distributors
or affiliates of mutual funds pay additional compensation or other incentives in differing
amounts, dealer firms and their advisers may have financial incentives for recommending
a particular mutual fund over other mutual funds. You should consult with your
financial adviser and review carefully any disclosure by your financial adviser’s firm as to
compensation received.
year 2007, aggregate payments made by American Funds Distributors to dealers were less
than .02% of the assets of the American Funds. Aggregate payments may also change
from year to year. A number of factors will be considered in determining payments,
including the qualifying dealer’s sales, assets and redemption rates, and the quality of the
dealer’s relationship with American Funds Distributors. American Funds Distributors
makes these payments to help defray the costs incurred by qualifying dealers in connection
with efforts to educate financial advisers about the American Funds so that they can make
recommendations and provide services that are suitable and meet shareholder needs.
American Funds Distributors will, on an annual basis, determine the advisability of continuing
these payments. American Funds Distributors may also pay expenses associated
with meetings conducted by dealers outside the top 75 firms to facilitate educating
financial advisers and shareholders about the American Funds. If investment advisers, distributors
or affiliates of mutual funds pay additional compensation or other incentives in differing
amounts, dealer firms and their advisers may have financial incentives for recommending
a particular mutual fund over other mutual funds. You should consult with your
financial adviser and review carefully any disclosure by your financial adviser’s firm as to
compensation received.