Rights of Accumulation (ROA)

Breakpoints reward large single investments, but many investors build their positions over time. Rights of accumulation let those investors qualify for breakpoint discounts too.

How Rights of Accumulation Work

Rights of accumulation (ROA) allow investors to count their existing holdings toward breakpoint levels:

Current account value (at current NAV) + new investment = total for breakpoint calculation
Based on the current market value of existing holdings, not the original purchase amount
Includes holdings in the same fund family across multiple accounts (individual, joint, custodial for minors)

Example

An investor has $40,000 in Fund XYZ and wants to invest $15,000 more:

Without ROA: The $15,000 purchase alone might not qualify for any breakpoint
With ROA: $40,000 (existing) + $15,000 (new) = $55,000 total, which qualifies for the breakpoint at $50,000
The investor pays the reduced sales charge on the new $15,000 investment

Think of it this way: ROA treats your entire fund family balance like a running tab. Every dollar already invested counts toward unlocking the next discount tier on whatever you buy next.

Key ROA Rules

ROA is retroactive - it uses current cumulative value, not what you originally invested
Holdings across accounts in the same fund family can be combined
The fund determines which accounts qualify (usually immediate family members and their accounts)
ROA works alongside breakpoints and letters of intent

Exam Tip: Gotchas

ROA uses the current NAV of existing holdings, not the original purchase price. If you invested $50,000 but the value dropped to $35,000, your ROA credit is $35,000. If your holdings grew to $60,000, that is your ROA credit even though you only invested $50,000.

ROA applies to holdings across the same fund family, not just one specific fund.

ROA helps qualify for breakpoints on new purchases only. It does not retroactively refund prior sales charges.

Accounts of immediate family members can typically be combined for ROA purposes.