American Funds details fees for eight new funds to launch in May

By Toni Weeks

San Diego, April 9 - American Funds Portfolio Series announced in a 497 filing with the Securities and Exchange Commission the fees for its eight new mutual funds, which are expected to launch in May.

The funds are the American Funds Global Growth Portfolio, American Funds Growth Portfolio, American Funds Growth and Income Portfolio, American Funds Balanced Portfolio, American Funds Income Portfolio, American Funds Tax-Advantaged Income Portfolio, American Funds Preservation Portfolio and American Funds Tax-Exempt Preservation Portfolio.

Shareholder fees for the Global Growth Portfolio, Growth Portfolio, Growth and Income Portfolio, Balanced Portfolio and Income Portfolio include a 5.75% maximum sales charge for class A and class 529-A shares and a maximum deferred sales charge of 5% for class B and class 529-B shares and 1% for class A, 529-A, C and 529-C shares.

Shareholder fees are lower for the remaining three funds. The Tax-Advantaged Income Portfolio is subject to a maximum sales charge of 3.75% for class A shares and a maximum deferred sales charge of 5% for class B shares and 1% for class A and class C shares. The Preservation Portfolio and Tax-Exempt Preservation Portfolio are subject to a 2.5% maximum sales charge for class A and class 529-A shares, a 5% maximum deferred sales charge for class B and class 529-B shares and a 1% maximum deferred sales charge for class A, 529-A, C and 529-C shares.

Management fees run 0.1% across the board. Total annual operating expenses are expected to be between 0.49% and 1.87%, depending on the fund and the share class.

As previously reported, each fund will have 16 share classes, with the exception of the Tax-Advantaged Income Portfolio and the Tax-Exempt Preservation Portfolio, which each have five. Each fund will invest in a mix of American Funds in different combinations and weightings and/or in a mix of American Funds bond funds.

The American Funds Global Growth Portfolio will seek to provide long-term growth of capital, as will the American Funds Growth Portfolio.

The American Funds Growth and Income Portfolio will seek to provide long-term growth of capital while providing current income.

The American Funds Balanced Portfolio will seek to provide current income as well as long-term growth of capital and income.

The American Funds Income Portfolio will seek to provide current income and long-term growth of capital as a secondary objective.

The American Funds Tax-Advantaged Income Portfolio will seek to provide current income, a portion of which is exempt from regular federal income tax. Long-term growth of capital will be a secondary objective.

The American Funds Preservation Portfolio will seek to provide current income, consistent with preservation of capital.

The American Funds Tax-Exempt Preservation Portfolio will seek to provide current income exempt from regular federal income tax, consistent with preservation of capital.

The funds' portfolio oversight committee will include Bradley J. Vogt, Alan N. Berro, Nicholas J. Grace, James B. Lovelace, Wesley K.-S. Phoa, John H. Smet and Andrew B. Suzman.

Capital Research and Management Co. will serve as the investment adviser. Its offices are in Los Angeles and Irvine, Calif.

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