Participant investment disclosure

Transcription

1 Participant investment disclosure Share Class A-MOP Investment options as of 12/31/2014 Fund name Fund manager Growth 1 year 5 years 10 years Lifetime 1 year 5 years 10 years Lifetime AMCAP Fund 5/1/ % 13.86% 7.57% 11.52% 13.66% 15.44% 7.67% 10.01% G Global Growth PortfolioSM 5/18/ % N/A N/A 14.13% 4.16% 9.17% 6.09% 16.02% Growth PortfolioSM 5/18/ % N/A N/A 16.17% 13.66% 15.44% 7.67% 21.98% Inception Date Average annual total return as of 12/31/14 (%) Benchmark (%) Benchmark name EuroPacific Growth Fund 4/16/ % 4.44% 6.08% 10.97% -3.87% 4.43% 5.13% N/A ex USA New Perspective Fund 3/13/ % 9.19% 7.45% 12.24% 4.16% 9.17% 6.09% N/A New World Fund 6/17/ % 3.79% 7.86% 7.85% 4.16% 9.17% 6.09% 4.12% SMALLCAP World Fund 4/30/ % 10.11% 7.76% 9.47% 1.78% 11.61% 8.17% N/A The Growth Fund of America 12/1/ % 12.15% 7.41% 13.56% 13.66% 15.44% 7.67% 11.07% MSCI All Country World Small Cap Index The New Economy Fund 12/1/ % 13.40% 8.54% 11.17% 13.66% 15.44% 7.67% 11.11% income Developing World Income FundSM 2/3/2014 N/A N/A N/A -0.85% -2.19% 1.78% 8.43% 5.69% G MSCI Emerging Markets Index Income PortfolioSM 5/18/ % N/A N/A 12.67% 13.66% 15.44% 7.67% 21.98% American Mutual Fund 2/21/ % 12.39% 7.08% 11.69% 13.66% 15.44% 7.67% 11.35% Capital World Income Fund 3/26/ % 7.74% 6.92% 10.76% 4.16% 9.17% 6.09% 7.38% Fundamental Investors 8/1/ % 12.10% 7.97% 12.42% 13.66% 15.44% 7.67% 11.78% International Income FundSM 10/1/ % 5.17% N/A 7.78% -3.87% 4.43% 5.13% 4.98% ex USA The Investment Company of America 1/1/ % 11.99% 6.73% 12.17% 13.66% 15.44% 7.67% 10.90%

2 Washington Mutual Investors FundSM 7/31/ % 13.55% 6.68% 11.88% 13.66% 15.44% 7.67% 10.82% Equity income Income PortfolioSM 5/18/ % N/A N/A 7.88% 13.66% 15.44% 7.67% 21.98% E Capital Income Builder 7/30/ % 7.61% 5.61% 9.49% 13.66% 15.44% 7.67% 9.49% The Income Fund of America 12/1/ % 9.84% 6.22% 11.20% 13.66% 15.44% 7.67% 11.07% Balanced American Balanced Fund 7/26/ % 10.84% 6.34% 10.77% 13.66% 15.44% 7.67% 11.57% B Balanced PortfolioSM 5/18/ % N/A N/A 11.08% 13.66% 15.44% 7.67% 21.98% Global Balanced FundSM 2/1/ % N/A N/A 6.22% 4.16% 9.17% 6.09% 7.63% Income Barclays U.S. Treasury Inflation-Protected Securities (TIPS) Index Mortgage Fund 11/1/ % N/A N/A 1.56% 6.08% 3.73% 4.75% 3.00% Barclays U.S. Mortgage Backed Securities Index Preservation PortfolioSM 5/18/ % N/A N/A -0.19% 1.98% 2.60% 3.57% 1.15% Barclays U.S. Government/Credit (1-7 years, ex BBB) Index American High-Income Trust 2/19/ % 6.71% 5.79% 8.09% 2.46% 8.98% 7.73% N/A Capital World Bond Fund 8/4/ % 2.33% 3.42% 6.47% 0.59% 2.65% 3.60% N/A Barclays Global Aggregate Index Intermediate Bond Fund of America 2/19/ % 1.84% 2.46% 4.92% 1.98% 2.60% 3.57% 5.72% Barclays U.S. Corporate High Yield 2% Issuer Capped Index Short-Term Bond Fund of America 10/2/ % 0.30% N/A 1.46% 0.72% 1.30% 2.75% 2.72% Barclays U.S. Government/Credit (1-7 years, ex BBB) Index Barclays U.S. Government/Credit (1-3 years, ex BBB) Index The Bond Fund of America 5/28/ % 3.80% 3.09% 7.87% 5.97% 4.45% 4.71% N/A Barclays U.S. Aggregate Index U.S. Government Securities Fund 10/17/ % 2.60% 3.48% 5.86% 5.41% 3.69% 4.50% 6.92% Barclays U.S. Government/Mortgage-Backed Securities Index Tax-exempt (Tax-exempt funds should generally not serve as investments for tax-deferred retirement plans and accounts) Short-Term Tax- Exempt Bond Fund 8/7/ % 0.98% N/A 1.07% 1.31% 1.90% N/A 2.06% Barclays Municipal Short 1-5 Years Index T

3 Tax-Advantaged Income PortfolioSM 5/18/ % N/A N/A 10.22% 9.05% 5.16% 4.74% 3.49% Barclays Municipal Bond Index Tax-Exempt Fund of New York 11/1/ % N/A N/A 3.89% 8.60% 4.89% N/A 4.38% Barclays New York Municipal Index Tax-Exempt Preservation PortfolioSM 5/18/ % N/A N/A 1.37% 3.86% 3.33% 3.78% 2.00% Barclays Municipal Short-Intermediate 1-10 Years Index American High-Income Municipal Bond Fund 9/26/ % 6.73% 4.38% 5.55% 9.05% 5.16% 4.74% 5.74% Barclays Municipal Bond Index Limited Term Tax-Exempt Bond Fund of America 10/6/ % 3.08% 3.16% 4.14% 3.86% 3.33% 3.78% 4.48% Barclays Municipal Short-Intermediate 1-10 Years Index The Tax-Exempt Bond Fund of America 10/3/ % 4.70% 4.02% 6.65% 9.05% 5.16% 4.74% N/A Barclays Municipal Bond Index The Tax-Exempt Fund of California 10/28/ % 5.72% 4.31% 5.68% 9.96% 6.20% 5.04% N/A Barclays California Municipal Index The Tax-Exempt Fund of Maryland 8/14/ % 3.47% 3.18% 5.03% 6.43% 4.11% 4.29% N/A Barclays Maryland Municipal Index The Tax-Exempt Fund of Virginia 8/14/ % 3.40% 3.32% 5.18% 7.97% 4.32% 4.47% N/A Barclays Virginia Municipal Index Money market Money Market Fund 5/1/ % 0.00% N/A 0.00% 0.03% 0.08% 1.50% 0.08% The annualized seven-day SEC yield for Money Market Fund, calculated in accordance with the SEC formula, was 0.00% as of 12/31/14. The yield takes into account the reimbursement of certain expenses where applicable. Without these, the yield would have been %. The yield more accurately reflects the fund's current earnings than do the fund's total returns. USTREAS T-Bill Auction Ave 3 Mon Target Date Retirement Series 2010 Target Date Retirement Fund 2/1/ % 6.98% N/A 3.79% 5.34% 8.16% 5.53% 4.98% S&P Target Date Through 2010 Index T 2015 Target Date Retirement Fund 2/1/ % 7.53% N/A 4.06% 5.68% 9.01% 5.77% 5.04% S&P Target Date Through 2015 Index 2020 Target Date Retirement Fund 2/1/ % 8.32% N/A 4.21% 5.80% 9.72% 5.88% 4.97% S&P Target Date Through 2020 Index 2025 Target Date Retirement Fund 2/1/ % 9.55% N/A 4.80% 5.98% 10.37% 6.19% 5.14% S&P Target Date Through 2025 Index 2030 Target Date Retirement Fund 2/1/ % 10.01% N/A 5.17% 6.05% 10.79% 6.42% 5.24% S&P Target Date Through 2030 Index 2035 Target Date Retirement Fund 2/1/ % 10.03% N/A 5.17% 6.13% 11.10% 6.50% 5.23% M

4 S&P Target Date Through 2035 Index 2040 Target Date Retirement Fund 2/1/ % 10.11% N/A 5.23% 6.14% 11.33% 6.58% 5.25% S&P Target Date Through 2040 Index 2045 Target Date Retirement Fund 2/1/ % 10.13% N/A 5.23% 6.11% 11.38% N/A 5.15% S&P Target Date Through 2045 Index 2050 Target Date Retirement Fund 2/1/ % 10.14% N/A 5.23% 6.08% 11.51% N/A 5.22% S&P Target Date Through 2050 Index 2055 Target Date Retirement Fund 2/1/ % N/A N/A 10.91% 6.03% 11.57% N/A 12.30% S&P Target Date Through Index Figures shown are past results and are not predictive of future results. Current and future results may be lower or higher than those shown here. Share prices and returns will vary so you may lose money. Investing for short periods make losses more likely. Portfolio turnover, along with other more detailed fund information, is available in your fund's summary prospectus which is available on the Web at americanfunds.com.

5 Participant investment disclosure Share Class A-MOP Fees and expenses as of 12/31/2014 Fund name Total gross annual operating expenses gross net Per $1000 Growth 1 AMCAP Fund Growth 0.70% 0.70% $7.00 investment is 5.75% Growth Global Growth PortfolioSM Growth 0.93% 0.83% $9.30 investment is 5.75% Growth PortfolioSM Growth 0.85% 0.75% $8.50 investment is 5.75% EuroPacific Growth Fund Growth 0.84% 0.84% $8.40 investment is 5.75% New Perspective Fund Growth 0.76% 0.76% $7.60 investment is 5.75% New World Fund Growth 1.03% 1.03% $10.30 investment is 5.75% SMALLCAP World Fund Growth 1.07% 1.07% $10.70 investment is 5.75% The Growth Fund of America Growth 0.66% 0.66% $6.60 investment is 5.75% The New Economy Fund Growth 0.83% 0.83% $8.30 investment is 5.75% income Developing World Income FundSM Income PortfolioSM American Mutual Fund Capital World Income Fund Fundamental Investors International Income FundSM The Investment Company of America Washington Mutual Investors FundSM Investment type Expense ratios (%) income 1.46% 1.42% $14.60 investment is 5.75% income income 0.79% 0.69% $7.90 investment is 5.75% income 0.59% 0.59% $5.90 investment is 5.75% income 0.80% 0.80% $8.00 investment is 5.75% income 0.63% 0.63% $6.30 investment is 5.75% income 0.91% 0.91% $9.10 investment is 5.75% income 0.61% 0.61% $6.10 investment is 5.75% income 0.60% 0.60% $6.00 investment is 5.75% Equity income 3 Income PortfolioSM Equity-income 0.76% 0.66% $7.60 investment is 5.75% Equity income Capital Income Builder Equity-income 0.59% 0.59% $5.90 investment is 5.75% The Income Fund of America Equity-income 0.57% 0.57% $5.70 investment is 5.75% Balanced 5 American Balanced Fund Balanced 0.61% 0.61% $6.10 investment is 5.75% Balanced Balanced PortfolioSM Balanced 0.82% 0.72% $8.20 investment is 5.75% Global Balanced FundSM Balanced 0.89% 0.89% $8.90 investment is 5.75% Income Mortgage Fund Income 0.72% 0.72% $7.20 Preservation PortfolioSM Income 0.80% 0.70% $8.00 American High-Income Trust Income 0.66% 0.66% $6.60 Capital World Bond Fund Income 0.90% 0.90% $9.00 Intermediate Bond Fund of America Income 0.61% 0.61% $6.10 Shareholder-type fees and sales load investment is 3.75% investment is 2.50% investment is 3.75% investment is 3.75% investment is 2.50% 2 6

6 Short-Term Bond Fund of America Income 0.59% 0.59% $5.90 The Bond Fund of America Income 0.61% 0.61% $6.10 U.S. Government Securities Fund Income 0.64% 0.64% $6.40 investment is 2.50% investment is 3.75% investment is 3.75% Tax-exempt (Tax-exempt funds should generally not serve as investments for tax-deferred retirement plans and accounts) 7 Short-Term Tax-Exempt Bond Fund Tax-exempt 0.58% 0.58% $5.80 investment is 2.50% Tax-exempt Tax-Advantaged Income PortfolioSM Tax-exempt 0.91% 0.81% $9.10 investment is 3.75% Tax-Exempt Fund of New York Tax-exempt 0.73% 0.63% $7.30 investment is 3.75% Tax-Exempt Preservation PortfolioSM Tax-exempt 0.87% 0.75% $8.70 investment is 2.50% American High-Income Municipal Bond Fund Tax-exempt 0.68% 0.68% $6.80 Limited Term Tax-Exempt Bond Fund of America Tax-exempt 0.60% 0.60% $6.00 The Tax-Exempt Bond Fund of America Tax-exempt 0.56% 0.56% $5.60 The Tax-Exempt Fund of California Tax-exempt 0.63% 0.63% $6.30 The Tax-Exempt Fund of Maryland Tax-exempt 0.70% 0.70% $7.00 The Tax-Exempt Fund of Virginia Tax-exempt 0.67% 0.67% $6.70 investment is 3.75% investment is 2.50% investment is 3.75% investment is 3.75% investment is 3.75% investment is 3.75% Money market 8 Money Market Fund Money Market 0.38% 0.07% $3.80 investment is 0.00% Money market Target Date Retirement Series Target Date Retirement Fund Target date 0.81% 0.71% $8.10 investment is 5.75% Target Date Retirement Series 2015 Target Date Retirement Fund Target date 0.81% 0.71% $8.10 investment is 5.75% 2020 Target Date Retirement Fund Target date 0.81% 0.71% $8.10 investment is 5.75% 2025 Target Date Retirement Fund Target date 0.83% 0.73% $8.30 investment is 5.75% 2030 Target Date Retirement Fund Target date 0.85% 0.75% $8.50 investment is 5.75% 2035 Target Date Retirement Fund Target date 0.86% 0.76% $8.60 investment is 5.75% 2040 Target Date Retirement Fund Target date 0.86% 0.76% $8.60 investment is 5.75% 2045 Target Date Retirement Fund Target date 0.86% 0.76% $8.60 investment is 5.75% 2050 Target Date Retirement Fund Target date 0.87% 0.77% $8.70 investment is 5.75% 2055 Target Date Retirement Fund Target date 0.89% 0.79% $8.90 investment is 5.75% Participant investment disclosure Participant Share Class investment A-MOP disclosure Share Class A-MOP Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may Investments lose value. are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. The sales charge, if applicable, may be reduced or eliminated based on the plan's total investment in the The (other sales than charge, the American if applicable, Funds may Money be reduced Market or Fund). eliminated Contact based American on the plan's Funds total at (800) investment in for the information American Funds regarding (other the than applicable the American sales charge. Funds Money The dollar Market amount Fund). of any Contact sales American charge imposed Funds at is (800) a line item on your for quarterly information benefit statement. regarding the applicable sales charge. The dollar amount of any sales charge imposed is a line item on your quarterly benefit statement. Figures shown are past results and are not predictive of future results. Current and future results may be lower or Figures higher shown than those are past shown results here. and Share not prices predictive and returns of future will vary, results. so you Current may and lose future money. results Investing may for be short lower periods or higher makes than losses those more shown likely. here. An investment Share prices in and the returns money will market vary, fund so you is not may insured lose money. or guaranteed Investing by for the short FDIC or any periods other government makes losses agency. more likely. Although An investment in the Money money Market market Fund fund is seeks not insured to preserve or guaranteed the value of by your the FDIC investment or any other at $1.00 government per share, agency. it is possible Although to lose American money Funds by investing Money in Market the fund. Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.

7 Results for the are Class A shares at maximum offering price. These results reflect deduction of the maximum sales charge (5.75% for equity investments, target date investments and most Portfolio Series funds; 3.75% for most bond investments; 2.50% for intermediate and short-term bond investments and Preservation Portfolio). There is no sales charge for Money Market Fund Class A shares. For current Results information the and American month-end Funds results are Class for the A shares American at maximum Funds and offering any other price. investments These results in your reflect plan, deduction please visit of the americanfunds.com maximum sales charge and americanfundsretirement.com (5.75% for equity investments, or target ask your date employer. investments and most Portfolio Series funds; 3.75% for most bond investments; 2.50% for intermediate and short-term bond investments and American Funds Prospectuses, Preservation SAIs Portfolio). and annual There reports, is no if applicable, sales charge are for available American on Funds americanfunds.com Money Market and Fund Class A shares. For americanfundsretirement.com. current information and month-end Portfolio results turnover for the information American is Funds included and in any your other investments summary in your prospectuses. plan, please visit americanfunds.com and americanfundsretirement.com or ask your employer. For additional details, go to americanfunds.com and americanfundsretirement.com. Prospectuses, SAIs and annual reports, if applicable, are available on americanfunds.com and americanfundsretirement.com. Please read the important disclosure Portfolio that turnover follows. information is included in your investments summary prospectuses. When Class A shares are shown at maximum offering price (MOP), the price includes the maximum sales charge. For For bond additional funds, the details, maximum go to americanfunds.com initial sales charge was and 4.75% americanfundsretirement.com. prior to January 10, For Intermediate Bond Fund of America and Limited Term Tax-Exempt Bond Fund of America, the maximum initial sales charge was 3.75% from January Please 10, 2000, read to the October important 31, disclosure that follows. When Income Class from A shares municipal are shown bonds may at maximum be subject offering to state price or local (MOP), income the price taxes. includes Additionally, the maximum income from sales all charge. tax-exempt For bond funds, the except maximum for The initial Tax-Exempt sales charge Bond was Fund 4.75% of America prior to may January be subject 10, to the For federal Intermediate alternative Bond minimum Fund of tax. America Certain and other Limited income Term from Tax-Exempt tax-exempt Bond bond Fund funds, of America, as well as the capital maximum gain distributions, initial sales charge may be was taxable. 3.75% from January 10, 2000, to October 31, Unlike mutual fund shares, investments in U.S. Treasuries are guaranteed by the U.S. government as to the payment of Income principal from and municipal interest. bonds In addition, may be certificates subject to of state deposit or local (CDs) income are FDIC-insured taxes. Additionally, and, if held income to maturity, from all offer taxexempt guaranteed bond return funds except of principal. for The State-specific Tax-Exempt tax-exempt Bond Fund of funds America are more may susceptible be subject to the factors federal adversely alternative affecting a minimum issuers of tax. their Certain states other tax-exempt income securities from tax-exempt than more bond widely funds, diversified as well as municipal capital gain bond distributions, funds. may be taxable. The Tax-Exempt Money Fund of America (inception date: October 24, 1989) converted to Short-Term Unlike Tax-Exempt mutual Bond fund Fund shares, on investments August 7, in U.S. Investment Treasuries results are guaranteed shown do by not the include U.S. government the fund's results as to the for the payment period it of operated principal as and The interest. Tax-Exempt In addition, Money certificates Fund of America. of deposit Results (CDs) that are reflect FDIC-insured the operation and, if held of the to fund maturity, as a money offer a market guaranteed fund prior return to its conversion of principal. can State-specific be found in American tax-exempt Funds funds Short-Term are more susceptible Tax-Exempt to Bond factors Fund s adversely prospectus. affecting issuers of their states tax-exempt securities than more widely diversified municipal bond funds. Investment results disclosure The Tax-Exempt Money Fund of America (inception date: October 24, 1989) converted to Short- Term Investing Tax-Exempt outside Bond the United Fund on States August involves 7, certain Investment risks, such results as currency shown do fluctuations, not include periods the fund's of illiquidity results for and the price period volatility, it operated as more as fully The described Tax-Exempt in the Money prospectus. Fund of These America. risks Results may be that heightened reflect the in operation connection of with the fund investments as a in money developing market countries. fund prior Small-company to its conversion stocks can entail be found additional in American risks, and Funds they Short-Term can fluctuate Tax-Exempt in price more Bond than Fund s larger prospectus. company stocks. Investment Lower rated results bonds disclosure are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds. The return of principal for bond investments and for investments with significant underlying bond holdings is not Investing guaranteed. outside Shares the are United subject States to involves the same certain interest risks, rate, such inflation as currency and credit fluctuations, risks associated periods with of illiquidity the underlying and bond price holdings. volatility, While as not more directly fully described correlated in to the changes prospectus. in interest These rates, risks the may values be heightened of inflation-linked connection bonds with generally investments fluctuate in response developing to changes countries. in real Small-company interest rates stocks and may entail experience additional greater risks, and losses they than can other fluctuate debt in securities price with more similar than durations. larger company Investments stocks. in mortgage-related securities involve special risks, such as prepayment risk, as more fully described in the prospectus. Investments in U.S. government securities are not guaranteed by the U.S. government. Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated Intermediate bonds. The Bond return Fund of of principal America for and bond Short-Term investments Bond and Fund for of investments America hold with shorter significant term underlying bonds. bond holdings is not guaranteed. Shares are subject to the same interest rate, inflation and credit risks associated with the underlying Investment bond allocations holdings. may While not not achieve directly fund correlated objectives. to For changes the target in interest date funds rates, and the values the Portfolio of inflation-linked Series funds, there bonds are expenses generally associated fluctuate in with response the underlying to changes American in real interest Funds in rates addition and to may fund-of-funds experience greater expenses. losses The than returns other and risks debt for the securities target with date similar funds and durations. the Portfolio Investments Series funds in mortgage-related are directly related securities to the involve risks and special returns risks, of such the underlying as prepayment funds. risk, as more fully described in the prospectus. Investments in U.S. government securities are not guaranteed by the U.S. government. Fee-waiver and expense-reimbursement disclosure Intermediate Bond Fund of America and Short-Term Bond Fund of America hold shorter term bonds. Investment results for all funds assume all distributions are reinvested and reflect applicable fees and expenses. Expense Investment ratios are as allocations of each fund s may not prospectus achieve fund available objectives. at the time For the of publication. target date funds When and applicable, the Portfolio investment Series funds, results reflect there fee waivers are expenses and/or associated expense reimbursements, with the underlying without American which Funds results in would addition have to fund-of-funds been lower. Please expenses. see The returns americanfunds.com and risks for the and target americanfundsretirement.com date and the Portfolio for Series more funds information. are directly related to the risks and returns of the underlying funds. The investment adviser is currently reimbursing a portion of other expenses for Tax-Exempt Fund of New York. Investment results and net expense ratios shown reflect the reimbursements, without which the results would have been lower and the expenses would have been higher. The adviser has committed to retain any

8 p g y reimbursements only through September 30, For Developing World Income Fund SM, the investment adviser is currently reimbursing a portion of expenses. Investment results and the net expense ratio reflect the reimbursements, without which the results would have been lower and the expenses would have been higher. This reimbursement will be in effect through at least February 1, 2015, unless modified or terminated by the fund s board. The adviser may elect at its discretion to extend, modify or terminate the reimbursement at that time. The expense ratios are estimated as of the fund s prospectus Fee-waiver available at and the expense-reimbursement time of publication. Please disclosure see the fund s most recent prospectus for details. Investment For the target results date for funds, all funds the assume investment all distributions adviser currently are reinvested waiving and its management reflect applicable fee of fees 0.10%. and After expenses. December 31, Expense 2014, the ratios adviser are as may of each modify fund s or terminate prospectus the available waiver, but at the only time with of fund publication. board approval. When applicable, In addition, investment the investment results adviser reflect has in fee the waivers past reimbursed and/or expense certain reimbursements, expenses for all share without classes. which Investment results would results have and been net lower. expense Please ratios see reflect americanfunds.com the waiver and reimbursements, and americanfundsretirement.com without which the results for more would information. have been lower and the expenses would have been higher. The expense ratios are as of each fund s prospectus available at the time of publication and include the The weighted investment average adviser expenses is currently of the reimbursing underlying American a portion Funds. of other expenses for Tax-Exempt Fund of New York. Investment results and net expense ratios shown reflect the reimbursements, without which the results would For quarterly have been updates lower of and the the underlying expenses allocations, would have visit been the higher. americanfundsretirement.com The adviser has committed website. to retain Although any the target reimbursements date funds are managed only through for investors September on 30, a projected retirement date time frame, the funds allocation approach does not guarantee that investors retirement goals will be met. investment professionals actively manage For each American target date Funds fund s Developing portfolio, World moving Growth it from and a Income more growth-oriented Fund SM, the investment focus to adviser a more is income-oriented currently reimbursing focus as the a fund portion gets of closer expenses. to its Investment target date. results The target and the date net is the expense year in ratio which reflect an investor the reimbursements, is assumed to without retire and which begin the taking results withdrawals. would have Investment been lower professionals and the expenses continue would to manage have each been fund higher. for This 30 years reimbursement after it reaches will be its in target effect date. through at least February 1, 2015, unless modified or terminated by the fund s board. The adviser may elect at its discretion For the Portfolio to extend, Series modify funds, or terminate the investment the reimbursement adviser is currently at that waiving time. The its management expense ratios fee are of estimated 0.10% and as is of the reimbursing fund s prospectus a portion available of other at expenses the time for of American publication. Funds Please Preservation see the fund s Portfolio. most recent Investment prospectus results for and details. net expense ratios shown reflect the waiver and/or any current reimbursements, without which the results would have been lower For and the the target expenses date funds, would the have investment been higher. adviser After is December currently waiving 31, 2014, its the management adviser may fee modify of 0.10%. or terminate After December the waiver, 31, but 2014, only the with adviser fund board may modify approval. or terminate The reimbursement the waiver, will but be only in effect with fund through board at approval. least December In addition, 31, 2014, the unless investment modified or adviser terminated has by the the past fund s reimbursed board. The certain adviser expenses may elect for all at share its discretion classes. to Investment extend, modify results or and terminate net the expense reimbursement ratios reflect at that the time. waiver Expense and reimbursements, ratios are as of each without fund s which prospectus the results available would at have the been time lower of publication and the and expenses include the would weighted have been average higher. expenses The expense of the underlying ratios are as American of each fund s Funds. prospectus available at the time of publication and include the weighted average expenses of the underlying. Lifetime returns for less than one year are not annualized, but are calculated as cumulative total returns. For quarterly updates of the underlying allocations, visit the americanfundsretirement.com website. Although the target Although date American funds are Funds managed Money for investors Market Fund on a has projected a 12b-1 retirement plan for this date share time class, frame, it s the currently funds suspending allocation certain 12bapproach 1 payments does in not this guarantee low interest that rate investors environment. retirement Should goals payments will be met. commence, American its Funds investment investment results professionals will be lower. For actively money manage market each funds, target the annualized date fund s seven-day portfolio, SEC moving yield it more from accurately a more growth-oriented reflects the fund s focus current to a more earnings incomeoriented the fund s focus return. as the fund gets closer to its target date. The target date is the year in which an investor is assumed than does to retire and begin taking withdrawals. Investment professionals continue to manage each fund for 30 years after it reaches Investment its target fees date. and expenses For You the should Portfolio carefully Series consider funds, the fees investment and expenses adviser when is currently making investment waiving its decisions. management The fee cumulative of 0.10% effect and is of fees and reimbursing expenses can a portion substantially of other reduce expenses the growth for American of your Funds retirement Preservation account Portfolio. over time. Investment For an example results of and the net long-term expense ratios shown reflect the waiver and/or any current reimbursements, without which the results would have effect of fees and expenses, visit the Employee Benefits Security Administration (EBSA) website at been lower and the expenses would have been higher. After December 31, 2014, the adviser may modify or terminate the waiver, but only with fund board approval. The reimbursement will be in effect through at least December 31, 2014, unless modified or terminated by the fund s board. The adviser may elect at its discretion to extend, Generally, modify there or are terminate two types the of reimbursement fees and expenses at that associated time. Expense with saving ratios and are as investing of each through fund s prospectus a retirement plan: (1) available recordkeeping at the time and administrative of publication and fees include and (2) the investment weighted expenses. average expenses The expenses of the related underlying to each American investment Funds. in your plan are known as the expense ratios. Expense ratios tend to vary with the investment category; for example, a money Lifetime market returns investment for less will than generally one year have are a lower not annualized, expense ratio but than are calculated a global equity as cumulative investment, total which returns. has higher costs. Although The net American expense ratio Funds reflects Money any Market applicable Fund fee has waivers a 12b-1 or plan expense for this reimbursements. share class, it s currently This is the suspending actual expense certain ratio 12b-1 that you payments paid. The in this gross low expense interest ratio rate reflects environment. the investment s Should payments total annual commence, operating its investment expenses. It results does not will include be any lower. fee waivers For money or expense market reimbursements. funds, the annualized Expense seven-day ratios are SEC as yield of each more investment s accurately reflects prospectus the fund s available current at the time of earnings publication. than does the fund s return. Investment Benchmarks fees and expenses You One should way to carefully assess an consider investment s fees and results expenses is to when compare making its results investment with those decisions. of a comparable The cumulative benchmark effect of or fees index, one and expenses can substantially reduce the growth of your retirement account over time. For an example of the longterm effect of fees and expenses, visit the Employee Benefits Security Administration (EBSA) website at that most closely resembles your investment. The benchmarks and their returns are shown here. Check your investment s annual and semi-annual reports to shareholders for more information. The indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index. There have been periods when the funds have lagged the indexes.

9 Certain funds inception dates predate the inception of their primary benchmarks; therefore, there are no calculations for those benchmarks lifetime results. Generally, there are two types of fees and expenses associated with saving and investing through a retirement plan: (1) recordkeeping and administrative fees and (2) investment expenses. The expenses related to each investment in your plan are known as the expense ratios. Expense ratios tend to vary with the investment category; for example, a money market investment will generally have a lower expense ratio than a global equity investment, which has higher costs. The net expense ratio reflects any applicable fee waivers or expense reimbursements. This is the actual expense ratio that you paid. The gross expense ratio reflects the investment s total annual operating expenses. It does not include any fee waivers or expense reimbursements. Expense ratios are as of each investment s prospectus available at the time of publication. Benchmarks One way to assess an investment s results is to compare its results with those of a comparable benchmark or index, one that most closely resembles your investment. The benchmarks and their returns are shown here. Check your investment s annual and semi-annual reports to shareholders for more information. The indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index. There have been periods when the funds have lagged the indexes. Certain funds inception dates predate the inception of their primary benchmarks; therefore, there are no calculations for those benchmarks lifetime results.

10 Participant investment disclosure Share Class A-NAV Investment options as of 12/31/2014 Fund name Fund manager Growth Inception Date Average annual total return as of 12/31/14 (%) Benchmark (%) Benchmark name 1 year 5 years 10 years Lifetime 1 year 5 years 10 years Lifetime AMCAP Fund 5/1/ % 15.22% 8.21% 11.66% 13.66% 15.44% 7.67% 10.01% Growth Global Growth PortfolioSM 5/18/ % N/A N/A 16.74% 4.16% 9.17% 6.09% 16.02% Growth PortfolioSM 5/18/ % N/A N/A 18.82% 13.66% 15.44% 7.67% 21.98% EuroPacific Growth Fund 4/16/ % 5.68% 6.71% 11.18% -3.87% 4.43% 5.13% N/A ex USA New Perspective Fund 3/13/ % 10.49% 8.09% 12.40% 4.16% 9.17% 6.09% N/A New World Fund 6/17/ % 5.03% 8.50% 8.26% 4.16% 9.17% 6.09% 4.12% SMALLCAP World Fund 4/30/ % 11.43% 8.39% 9.73% 1.78% 11.61% 8.17% N/A MSCI All Country World Small Cap Index The Growth Fund of America 12/1/ % 13.49% 8.05% 13.73% 13.66% 15.44% 7.67% 11.07% The New Economy Fund 12/1/ % 14.75% 9.18% 11.38% 13.66% 15.44% 7.67% 11.11% income Developing World Income FundSM 2/3/2014 N/A N/A N/A 5.20% -2.19% 1.78% 8.43% 5.69% income MSCI Emerging Markets Index Income PortfolioSM 5/18/ % N/A N/A 15.24% 13.66% 15.44% 7.67% 21.98% American Mutual Fund 2/21/ % 13.73% 7.72% 11.79% 13.66% 15.44% 7.67% 11.35% Capital World Income Fund 3/26/ % 9.03% 7.55% 11.06% 4.16% 9.17% 6.09% 7.38% Fundamental Investors 8/1/ % 13.43% 8.61% 12.61% 13.66% 15.44% 7.67% 11.78% International Income FundSM 10/1/ % 6.42% N/A 8.81% -3.87% 4.43% 5.13% 4.98% ex USA The Investment Company of America 1/1/ % 13.32% 7.37% 12.25% 13.66% 15.44% 7.67% 10.90% Washington Mutual Investors FundSM 7/31/ % 14.90% 7.31% 11.99% 13.66% 15.44% 7.67% 10.82% Equity income Income PortfolioSM 5/18/ % N/A N/A 10.35% 13.66% 15.44% 7.67% 21.98% Equity income

11 Capital Income Builder 7/30/ % 8.89% 6.23% 9.73% 13.66% 15.44% 7.67% 9.49% The Income Fund of America 12/1/ % 11.15% 6.85% 11.36% 13.66% 15.44% 7.67% 11.07% Balanced American Balanced Fund 7/26/ % 12.17% 6.97% 10.94% 13.66% 15.44% 7.67% 11.57% Balanced Balanced PortfolioSM 5/18/ % N/A N/A 13.62% 13.66% 15.44% 7.67% 21.98% Global Balanced FundSM 2/1/ % N/A N/A 7.84% 4.16% 9.17% 6.09% 7.63% Income Barclays U.S. Treasury Inflation-Protected Securities (TIPS) Index Mortgage Fund 11/1/ % N/A N/A 2.50% 6.08% 3.73% 4.75% 3.00% Barclays U.S. Mortgage Backed Securities Index Preservation PortfolioSM 5/18/ % N/A N/A 0.79% 1.98% 2.60% 3.57% 1.15% Barclays U.S. Government/Credit (1-7 years, ex BBB) Index American High-Income Trust 2/19/ % 7.52% 6.20% 8.24% 2.46% 8.98% 7.73% N/A Barclays U.S. Corporate High Yield 2% Issuer Capped Index Capital World Bond Fund 8/4/ % 3.11% 3.82% 6.62% 0.59% 2.65% 3.60% N/A Barclays Global Aggregate Index Intermediate Bond Fund of America 2/19/ % 2.36% 2.72% 5.02% 1.98% 2.60% 3.57% 5.72% Short-Term Bond Fund of America 10/2/ % 0.82% N/A 1.78% 0.72% 1.30% 2.75% 2.72% Barclays U.S. Government/Credit (1-7 years, ex BBB) Index Barclays U.S. Government/Credit (1-3 years, ex BBB) Index The Bond Fund of America 5/28/ % 4.59% 3.48% 7.97% 5.97% 4.45% 4.71% N/A Barclays U.S. Aggregate Index U.S. Government Securities Fund 10/17/ % 3.38% 3.87% 6.00% 5.41% 3.69% 4.50% 6.92% Barclays U.S. Government/Mortgage-Backed Securities Index Tax-exempt (Tax-exempt funds should generally not serve as investments for tax-deferred retirement plans and accounts) Short-Term Tax- Exempt Bond Fund 8/7/ % 1.50% N/A 1.55% 1.31% 1.90% N/A 2.06% Barclays Municipal Short 1-5 Years Index Tax-Advantaged Income PortfolioSM 5/18/ % N/A N/A 11.84% 9.05% 5.16% 4.74% 3.49% Barclays Municipal Bond Index Tax-Exempt Fund of New York 11/1/ % N/A N/A 4.85% 8.60% 4.89% N/A 4.38% Barclays New York Municipal Index Tax-Exempt Preservation PortfolioSM 5/18/ % N/A N/A 2.37% 3.86% 3.33% 3.78% 2.00% Barclays Municipal Short-Intermediate 1-10 Years Index American High-Income Municipal Bond Fund 9/26/ % 7.55% 4.77% 5.75% 9.05% 5.16% 4.74% 5.74% Barclays Municipal Bond Index Limited Term Tax-Exempt Bond Fund of America 10/6/ % 3.60% 3.43% 4.27% 3.86% 3.33% 3.78% 4.48% Tax-exempt

12 Barclays Municipal Short-Intermediate 1-10 Years Index The Tax-Exempt Bond Fund of America 10/3/ % 5.50% 4.42% 6.77% 9.05% 5.16% 4.74% N/A Barclays Municipal Bond Index The Tax-Exempt Fund of California 10/28/ % 6.53% 4.71% 5.82% 9.96% 6.20% 5.04% N/A Barclays California Municipal Index The Tax-Exempt Fund of Maryland 8/14/ % 4.27% 3.58% 5.17% 6.43% 4.11% 4.29% N/A Barclays Maryland Municipal Index The Tax-Exempt Fund of Virginia 8/14/ % 4.19% 3.71% 5.32% 7.97% 4.32% 4.47% N/A Barclays Virginia Municipal Index Money market Money Market Fund 5/1/ % 0.00% N/A 0.00% 0.03% 0.08% 1.50% 0.08% Money market The annualized seven-day SEC yield for Money Market Fund, calculated in accordance with the SEC formula, was 0.00% as of 12/31/14. The yield takes into account the reimbursement of certain expenses where applicable. Without these, the yield would have been %. The yield more accurately reflects the fund's current earnings than do the fund's total returns. Target Date Retirement Series 2010 Target Date Retirement Fund 2/1/ % 8.26% USTREAS T-Bill Auction Ave 3 Mon N/A 4.57% 5.34% 8.16% 5.53% 4.98% Target Date Retirement Series S&P Target Date Through 2010 Index 2015 Target Date Retirement Fund 2/1/ % 8.82% N/A 4.84% 5.68% 9.01% 5.77% 5.04% S&P Target Date Through 2015 Index 2020 Target Date Retirement Fund 2/1/ % 9.62% N/A 4.99% 5.80% 9.72% 5.88% 4.97% S&P Target Date Through 2020 Index 2025 Target Date Retirement Fund 2/1/ % 10.86% N/A 5.59% 5.98% 10.37% 6.19% 5.14% S&P Target Date Through 2025 Index 2030 Target Date Retirement Fund 2/1/ % 11.32% N/A 5.96% 6.05% 10.79% 6.42% 5.24% S&P Target Date Through 2030 Index 2035 Target Date Retirement Fund 2/1/ % 11.35% N/A 5.96% 6.13% 11.10% 6.50% 5.23% S&P Target Date Through 2035 Index 2040 Target Date Retirement Fund 2/1/ % 11.42% N/A 6.02% 6.14% 11.33% 6.58% 5.25% S&P Target Date Through 2040 Index 2045 Target Date Retirement Fund 2/1/ % 11.43% N/A 6.02% 6.11% 11.38% N/A 5.15% S&P Target Date Through 2045 Index 2050 Target Date Retirement Fund 2/1/ % 11.44% N/A 6.02% 6.08% 11.51% N/A 5.22% S&P Target Date Through 2050 Index 2055 Target Date Retirement Fund 2/1/ % N/A N/A 12.26% 6.03% 11.57% N/A 12.30% S&P Target Date Through Index Figures shown are past results and are not predictive of future results. Current and future results may be lower or higher than those shown here. Share prices and returns will vary so you may lose money. Investing for short periods make losses more likely. Portfolio turnover, along with other more detailed fund information, is available in your fund's summary prospectus which is available on the Web at americanfunds.com.

13 Participant investment disclosure Share Class A-NAV Fees and expenses as of 12/31/2014 Investment type Expense ratios (%) Total gross annual operating expenses Shareholder-type fees and sales load Fund name gross net Per $1000 Growth AMCAP Fund Growth 0.70% 0.70% $7.00 Global Growth PortfolioSM Growth 0.93% 0.83% $9.30 Growth PortfolioSM Growth 0.85% 0.75% $8.50 EuroPacific Growth Fund Growth 0.84% 0.84% $8.40 New Perspective Fund Growth 0.76% 0.76% $7.60 New World Fund Growth 1.03% 1.03% $10.30 SMALLCAP World Fund Growth 1.07% 1.07% $10.70 The Growth Fund of America Growth 0.66% 0.66% $6.60 The New Economy Fund Growth 0.83% 0.83% $8.30 investment is 5.75% investment is 5.75% investment is 5.75% investment is 5.75% investment is 5.75% investment is 5.75% investment is 5.75% investment is 5.75% investment is 5.75% Growth income Developing World Growth and Income FundSM Income PortfolioSM American Mutual Fund Capital World Income Fund Fundamental Investors International Income FundSM The Investment Company of America Washington Mutual Investors FundSM income 1.46% 1.42% $14.60 income 0.79% 0.69% $7.90 income 0.59% 0.59% $5.90 income 0.80% 0.80% $8.00 income 0.63% 0.63% $6.30 income 0.91% 0.91% $9.10 income 0.61% 0.61% $6.10 income 0.60% 0.60% $6.00 investment is 5.75% investment is 5.75% investment is 5.75% investment is 5.75% investment is 5.75% investment is 5.75% investment is 5.75% investment is 5.75% income Equity income Income PortfolioSM Equity-income 0.76% 0.66% $7.60 Capital Income Builder Equity-income 0.59% 0.59% $5.90 The Income Fund of America Equity-income 0.57% 0.57% $5.70 Balanced American Balanced Fund Balanced 0.61% 0.61% $6.10 Balanced PortfolioSM Balanced 0.82% 0.72% $8.20 Global Balanced FundSM Balanced 0.89% 0.89% $8.90 Income Mortgage Fund Income 0.72% 0.72% $7.20 Preservation PortfolioSM Income 0.80% 0.70% $8.00 American High-Income Trust Income 0.66% 0.66% $6.60 Capital World Bond Fund Income 0.90% 0.90% $9.00 Intermediate Bond Fund of America Income 0.61% 0.61% $6.10 investment is 5.75% investment is 5.75% investment is 5.75% investment is 5.75% investment is 5.75% investment is 5.75% investment is 3.75% investment is 2.50% investment is 3.75% investment is 3.75% investment is 2.50% Equity income Balanced

14 Short-Term Bond Fund of America Income 0.59% 0.59% $5.90 The Bond Fund of America Income 0.61% 0.61% $6.10 U.S. Government Securities Fund Income 0.64% 0.64% $6.40 investment is 2.50% investment is 3.75% investment is 3.75% Tax-exempt (Tax-exempt funds should generally not serve as investments for tax-deferred retirement plans and accounts) Short-Term Tax-Exempt Bond Fund Tax-exempt 0.58% 0.58% $5.80 investment is 2.50% Tax-Advantaged Income PortfolioSM Tax-exempt 0.91% 0.81% $9.10 investment is 3.75% Tax-Exempt Fund of New York Tax-exempt 0.73% 0.63% $7.30 investment is 3.75% Tax-Exempt Preservation PortfolioSM Tax-exempt 0.87% 0.75% $8.70 investment is 2.50% American High-Income Municipal Bond Fund Tax-exempt 0.68% 0.68% $6.80 investment is 3.75% Limited Term Tax-Exempt Bond Fund of America Tax-exempt 0.60% 0.60% $6.00 investment is 2.50% The Tax-Exempt Bond Fund of America Tax-exempt 0.56% 0.56% $5.60 investment is 3.75% The Tax-Exempt Fund of California Tax-exempt 0.63% 0.63% $6.30 investment is 3.75% The Tax-Exempt Fund of Maryland Tax-exempt 0.70% 0.70% $7.00 investment is 3.75% The Tax-Exempt Fund of Virginia Tax-exempt 0.67% 0.67% $6.70 investment is 3.75% Tax-exempt Money market Money Market Fund Money Market 0.38% 0.07% $3.80 Target Date Retirement Series 2010 Target Date Retirement Fund Target date 0.81% 0.71% $ Target Date Retirement Fund Target date 0.81% 0.71% $ Target Date Retirement Fund Target date 0.81% 0.71% $ Target Date Retirement Fund Target date 0.83% 0.73% $ Target Date Retirement Fund Target date 0.85% 0.75% $ Target Date Retirement Fund Target date 0.86% 0.76% $ Target Date Retirement Fund Target date 0.86% 0.76% $ Target Date Retirement Fund Target date 0.86% 0.76% $ Target Date Retirement Fund Target date 0.87% 0.77% $ Target Date Retirement Fund Target date 0.89% 0.79% $8.90 Participant investment disclosure Share Class A-NAV investment is 0.00% investment is 5.75% investment is 5.75% investment is 5.75% investment is 5.75% investment is 5.75% investment is 5.75% investment is 5.75% investment is 5.75% investment is 5.75% investment is 5.75% Money market Target Date Retirement Series 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 sales charge, if applicable, may be reduced or eliminated based on the plan's total investment in the (other than the Money Market Fund). Contact at (800) for information regarding the applicable sales charge. The dollar amount of any sales charge imposed is a line item on your quarterly benefit statement. Figures shown are past results and are not predictive of future results. Current and future results may be lower or higher than those shown here. Share prices and returns will vary, so you may lose money. Investing for short periods makes losses more likely. An investment in the money market fund is not insured or guaranteed by the FDIC or any other government agency. Although Money Market Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund. Results for the are Class A shares at net asset value. If the maximum sales charge (5.75% for equity

15 investments, target date investments and most Portfolio Series funds; 3.75% for most bond investments; 2.50% for intermediate and short-term bond investments and Preservation Portfolio) had been deducted, these results would have been lower. There is no sales charge for Money Market Fund Class A shares. For Participant current information investment and disclosure month-end results for the and any other investments in your plan, please visit Share americanfunds.com Class A-NAV and americanfundsretirement.com or ask your employer. Prospectuses, SAIs and annual reports, if applicable, are available on americanfunds.com and Investments americanfundsretirement.com. are not FDIC-insured, Portfolio nor are turnover they deposits information of guaranteed is included by in a your bank investments or any other summary entity, so prospectuses. they may lose value. For additional details, go to americanfunds.com and americanfundsretirement.com. The sales charge, if applicable, may be reduced or eliminated based on the plan's total investment in the American Funds Please (other read than the important the American disclosure Funds Money that follows. Market Fund). Contact at (800) for information regarding the applicable sales charge. The dollar amount of any sales charge imposed is a line item on your Income quarterly from benefit municipal statement. bonds may be subject to state or local income taxes. Additionally, income from all tax-exempt bond funds except for The Tax-Exempt Bond Fund of America may be subject to the federal alternative minimum tax. Figures Certain shown other are income past from results tax-exempt and are not bond predictive funds, as of well future as capital results. gain Current distributions, and future may results be taxable. may be lower or higher than those shown here. Share prices and returns will vary, so you may lose money. Investing for short periods Unlike makes mutual losses fund shares, more likely. investments An investment U.S. Treasuries in the money are guaranteed market fund by is the not U.S. insured government or guaranteed as to the by payment the of FDIC principal or any and other interest. government In addition, agency. certificates Although of American deposit (CDs) Funds are Money FDIC-insured Market and, Fund if held seeks to to maturity, preserve offer the value a of guaranteed your investment return at of $1.00 principal. per share, State-specific it is possible tax-exempt to lose funds money are by more investing susceptible in the to fund. factors adversely affecting issuers of their states tax-exempt securities than more widely diversified municipal bond funds. Results for the are Class A shares at net asset value. If the maximum sales charge (5.75% for equity The Tax-Exempt investments, Money target Fund date of investments America (inception and most date: Portfolio October Series 24, 1989) funds; converted 3.75% for to most American bond investments; Funds Short-Term 2.50% Tax-Exempt for intermediate Bond Fund and on August short-term 7, bond Investment investments results and American shown do not Funds include Preservation the fund's Portfolio) results for had the been period it deducted, operated these as The results Tax-Exempt would Money have been Fund lower. of America. There Results is no sales that charge reflect for the American operation Funds of the Money fund as Market a money Fund market Class fund A prior shares. to its For conversion current information can be found and in month-end results Short-Term for the American Tax-Exempt Funds Bond and Fund s any other prospectus. investments in your plan, please visit americanfunds.com and americanfundsretirement.com or ask your employer. Investment results disclosure Prospectuses, SAIs and annual reports, if applicable, are available on americanfunds.com and americanfundsretirement.com. Investing outside the United States Portfolio involves turnover certain information risks, such is as included currency in fluctuations, your investments periods summary of illiquidity and price prospectuses. volatility, as more fully described in the prospectus. These risks may be heightened in connection with investments in developing countries. Small-company stocks entail additional risks, and they can fluctuate in price more than larger For company additional stocks. details, go to americanfunds.com and americanfundsretirement.com. Please Lower read rated the bonds important are subject disclosure to greater that follows. fluctuations in value and risk of loss of income and principal than higher rated bonds. The return of principal for bond investments and for investments with significant underlying bond holdings is not Income guaranteed. from municipal Shares are bonds subject may to be the subject same interest to state rate, or local inflation income and taxes. credit Additionally, risks associated income with from the all underlying taxexempt holdings. bond While funds not except directly for correlated The Tax-Exempt to changes Bond in Fund interest of America rates, the may values be subject of inflation-linked to the federal bonds alternative generally fluctuate bond minimum response tax. to Certain changes other in real income interest from rates tax-exempt and may bond experience funds, as greater well as losses capital than gain other distributions, debt securities may be with similar taxable. durations. Unlike Intermediate mutual fund Bond shares, Fund of investments America and in Short-Term U.S. Treasuries Bond are Fund guaranteed of America by the hold U.S. shorter government term bonds. as to the payment of principal and interest. In addition, certificates of deposit (CDs) are FDIC-insured and, if held to maturity, offer a guaranteed Investments return in mortgage-related of principal. State-specific securities involve tax-exempt special funds risks, are such more as susceptible prepayment to risk, factors as more adversely fully described affecting in the issuers prospectus. of their Investments states tax-exempt in U.S. government securities than securities more widely are not diversified guaranteed municipal by the U.S. bond government. funds. The Investment Tax-Exempt allocations Money Fund may not of America achieve (inception fund objectives. date: October For the target 24, 1989) date converted funds and to the American Portfolio Funds Series Short- funds, there are Term expenses Tax-Exempt associated Bond with Fund the on underlying August 7, American Investment Funds in results addition shown to fund-of-funds do not include expenses. the fund's The results risks and for the returns for period the target it operated date funds as The and Tax-Exempt the Portfolio Money Series Fund funds of are America. directly Results related that to reflect the risks the and operation returns of the underlying fund as a funds. money market fund prior to its conversion can be found in Short-Term Tax-Exempt Bond Fund s prospectus. Fee-waiver and expense-reimbursement disclosure Investment results disclosure for all funds assume all distributions are reinvested and reflect applicable fees and expenses. Expense ratios are as of each fund s prospectus available at the time of publication. When applicable, investment results reflect fee Investing waivers outside and/or expense the United reimbursements, States involves without certain risks, which such results as currency would have fluctuations, been lower. periods Please of see illiquidity americanfunds.com and price and volatility, americanfundsretirement.com as more fully described for in more the prospectus. information. These risks may be heightened in connection with investments in developing countries. Small-company stocks entail additional risks, and they can fluctuate in price more The investment than larger company adviser is stocks. currently reimbursing a portion of other expenses for Tax-Exempt Fund of New York. Investment results and net expense ratios shown reflect the reimbursements, without which the results would have Lower been rated lower bonds and the are expenses subject to would greater have fluctuations been higher. in value The adviser and risk has of committed loss of income to retain and principal any reimbursements than higher only rated through bonds. September The return 30, of principal for bond investments and for investments with significant underlying bond holdings is not guaranteed. Shares are subject to the same interest rate, inflation and credit risks associated with the underlying For American bond Funds holdings. Developing While not World directly Growth correlated and Income to changes Fund SM in, the interest investment rates, the adviser values is currently of inflation-linked reimbursing a bonds portion generally of expenses. fluctuate Investment in response results to changes and the in net real expense interest ratio rates reflect and may the reimbursements, experience greater without losses which than other results debt would securities have been with lower similar and durations. the expenses would have been higher. This reimbursement will be in effect through at least F b l difi d i d b h f d b d Th d i l i di i d