Invest for Long-Term Success.

What Makes American Funds Different 2015 Edition Invest for Long-Term Success.

Our Goal Is to Earn Your Trust Each and Every Day. Since 1931, we have taken a long-term approach that s consistent with the long-term goals of our investors. We know how important it is for you to select an experienced manager who understands the value of your trust. We offer our funds through financial advisors because we believe in the value of professional advice. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Each of Our Funds Is Designed to Pursue Objectives That Help Investors Meet Their Real-Life Needs. For more than 80 years, we have managed investments with the goal of helping long-term investors succeed. Below are a few examples of investors who, while working with their financial advisors, are pursuing their goals with American Funds. Funding an education We want to fully fund our children s education for as long as they wish to go to school, and it s our hope that they all earn at least a master s degree. Viet Ha, American Funds investor Investing for retirement With the help of my financial advisor, I ignore the gloom and doom of TV pundits and Internet bloggers. I know that there will always be hiccups along the way, but I m able to keep better focused on my long-term goals. Peter Davis, American Funds investor Living in retirement We rely on our mutual fund managers to do the research and company selection that hopefully will produce good long-term results. Steve Smolak, American Funds investor 1

We Are Aligned With Long-Term Investors. Our investment philosophy is based on doing what we believe is right for investors. In our efforts to help protect the value of investments, we pay close attention to risk. We base our decisions on a long-term perspective because we believe it is the best way to achieve superior long-term investment results. We invest with you My own personal and family investments are in our funds. Collectively, all of us at American Funds are significant investors in our funds. Jim Rothenberg, Portfolio Manager We reward long-term results We measure ourselves over rolling four- and eight-year periods to encourage a long-term focus and to further align ourselves with our investors. Joyce Gordon, Portfolio Manager [American Funds ] multiple-manager approach has produced consistently competitive risk-adjusted returns and a strong investment culture with high manager and analyst retention. The managers are heavily invested in the funds they manage, and their bonus calculations include eight-year performance, which frees them to focus on long-term results. Morningstar, Inc., May 2013 2

Put Our Experience to Work for You. Our portfolio managers average 27 years of investment experience, including 22 years at our company.* The average tenure of our portfolio managers on a fund is 9.9 years; for the industry, it s 5.1 years. Our Investment Experience Spans Generations (portfolio manager years of experience) 100% 80% 28% Strength in Numbers 23% of our portfolio managers experienced the 1982 recession 44% of our portfolio managers experienced the October 1987 crash 84% of our fixed-income portfolio managers experienced the difficult 1994 bond market 30+ years 20+ years 10+ years A Closer Look: Current Portfolio Managers Who Covered Oil Companies in Three Different Decades Gregg Ireland Gregg was an oil analyst in the 1980s, a time of growth and change for energy companies. Years of experience: 43 Office: Washington, D.C. * As of December 31, 2014 Source: Morningstar David Barclay David, a bond fund portfolio manager, covered oil companies as a bond analyst in the 1990s. Years of experience: 33 Office: Los Angeles Noriko Honda Chen As a portfolio manager with analyst responsibilities, Noriko continues to cover energy today. Years of experience: 24 Office: San Francisco 3

The Capital SystemSM Combines Independence and Teamwork. With each investment offering, we begin by defining a clear investment objective and assembling a team best equipped to pursue the opportunities. The Capital System s Multiple Manager Approach Example: American Funds AMCAP Fund A diverse group of portfolio managers and analysts brings complementary investment approaches, experience levels, backgrounds and areas of focus. Analysts In most funds, including AMCAP, a group of investment analysts manages a portion of the fund known as the research portfolio. Portfolio managers Each portfolio manager is assigned a portion of the overall assets to manage independently, enabling them to focus on their highest conviction ideas. Barry Crosthwaite Claudia Huntington Eric Richter James Terrile Brad Vogt Experience: 18 years Office: San Francisco Experience: 41 years Office: Los Angeles Experience: 23 years Office: Washington, D.C. Experience: 19 years Office: Los Angeles Experience: 27 years Office: Washington, D.C. Years of experience as of the fund s prospectus dated August 29, 2014. Portfolio segments do not reflect actual allocations and vary by funds. 4

We Don t Invest in Anyone s 200th Best Idea. Which would you prefer: a mutual fund that represents the 25 to 40 best ideas of several people or one person s 200 best ideas? Two Different Approaches 200 best ideas 40 best ideas 30 best ideas 30 best ideas 35 best ideas 40 best ideas 25 best ideas The Capital System Single-manager approach Our system is designed to try to get the benefits of two worlds. One is to capture the individual responsibility and individual motivation that are essential to investing. You don t want a committee system managing money, because when you invest by consensus, the controversial or lonely idea perishes. The other is the benefit of multiple points of view, which serves to sharpen the investment ideas. Rob Lovelace, Portfolio Manager How Our Approach Can Benefit You Broad diversification Each portfolio manager invests in his or her highest conviction ideas, so fund portfolios tend to contain a diverse group of securities. Rigorous risk management The diverse combination of portfolio managers and investment analysts in each fund is designed to lower volatility while striving for superior long-term results. Consistency with fund objectives Each fund s principal investment officer, along with a coordinating group, reviews investments for consistency with fund objectives and overall guidelines. 5

Global Research Is the Backbone of Our Organization. We have invested internationally for more than half a century. We invest more in international stocks than any other mutual fund manager and are among the largest investors of international bonds.* Mark Casey Previously a director and product manager at a major software company, Mark has research responsibilities for entertainment, media, Internet media and imaging companies. Steve Backes A bond analyst who focuses on developing markets debt, Steve was a former senior economist for the Federal Reserve Bank of New York, former director of the United States Treasury and an economist for the International Monetary Fund. Experience: 21 years Office: New York Experience: 14 years Office: San Francisco Jay Markowitz A former pancreas transplant surgeon, Jay covers U.S. pharmaceutical and biotechnology companies as an investment analyst. Experience: 13 years Office: Los Angeles Strength in Numbers 293 177 116 153 42 Investment professionals Investment analysts Portfolio managers Based outside the U.S. Languages spoken The Capital Group Companies manage equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed-income investment professionals provide fixed-income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups. 6

Vantil Charles A bond analyst who covers European financial companies, Vantil worked for 20 years at one of the U.K. s largest banks, holding positions from retail banking to deputy head of the credit rating group. Experience: 27 years Office: London Susan Dietz-Henderson An analyst focused on China, Susan was previously an Australian diplomat based in China and was Australia s Consul-General in Shanghai. Experience: 27 years Office: Beijing Research offices Los Angeles 1931 New York 1943 Geneva 1962 Washington, D.C. 1974 San Francisco 1975 London 1979 Tokyo 1982 Hong Kong 1983 Singapore 1989 Mumbai 2008 Beijing 2009 Ken Kojima An equity analyst who researches Asian utilities, information technology and Japanese chemicals. Prior to joining Capital, he worked at Citibank Japan. Experience: 17 years Office: Singapore Our Investment Professionals Hail From Around the World 51 Countries of origin * Source: Morningstar, based on net assets as of December 31, 2014 As of December 31, 2014 7

We Seek Consistently Superior Long- Term Results. For most investors, results are paramount. Consider the following facts * : Our funds have beaten their Lipper peer indexes in 79% of 10-year periods (91% for equity funds, 54% for fixed-income funds). Our funds have beaten their Lipper peer indexes in 87% of 20-year periods (96% for equity funds, 57% for fixed-income funds). In Good Times and Bad, an 81-Year Track Record of Success in Equity Funds Over the years, investors have been able to count on us for consistent long-term results. This becomes apparent when you look at our equity funds results over 465 10-calendar-year periods since our first fund began in 1934 (as shown below). Number of 10-calendar-year periods When the total return was positive (annualized return greater than 0.00%) at least doubled (annualized return 7.18% or greater) When the value of an investment... at least tripled (annualized return 11.61% or greater) at least quadrupled (annualized return 14.87% or greater) AMCAP Fund 38 38 32 24 12 EuroPacific Growth Fund 21 21 16 8 3 The Growth Fund of America 32 32 28 24 14 The New Economy Fund 22 20 18 9 6 New Perspective Fund 32 32 28 23 15 New World Fund 6 6 6 2 0 SMALLCAP World Fund 15 15 10 2 1 American Mutual Fund 55 55 45 28 14 Capital World Growth and Income Fund 12 12 10 5 0 Fundamental Investors 27 27 23 16 12 The Investment Company of America 72 72 61 41 20 Washington Mutual Investors Fund SM 53 53 44 28 15 Capital Income Builder 18 18 14 5 0 The Income Fund of America 32 32 27 18 6 American Balanced Fund 30 30 23 18 2 465 463 385 251 120 Percent of time 99.6% 82.8% 54.0% 25.8% Based on results calculated at net asset value with all distributions reinvested. Reflects applicable fees and expenses. * Based on Class A share results for rolling periods through December 31, 2014. Periods covered are the shorter of the fund s lifetime or since the comparable Lipper index inception date (except SMALLCAP World Fund, for which the Lipper average was used). 8

Our Expenses Are Among the Lowest. We are committed to providing exceptional services at a reasonable cost. We have some of the lowest management fees among mutual fund companies. We strive to keep management fees low so that operating expenses remain competitive. Some of the lowest annual fees you ll find in the industry. Kiplinger.com, January 2014 Lower Is Better: American Funds Annual Operating Expenses (%) 0.73 1.30 0.61 1.11 0.98 1.47 0.58 1.04 0.75 1.20 0.68 American Funds 0.93 0.64 Industry average* 0.80 0.38 0.09 Growth Growth-andincome International/ Global equity Equity-income Balanced Taxable bond Tax-exempt bond Money market The Difference Adds Up Ongoing annual expenses have an impact on long-term results. As you can see, a 0.5% difference in expenses could add up to more than your initial investment over time. $709,637 $816,430 The growth of hypothetical investments of $100,000 over 30 years, assuming an annual growth rate of 8% before expenses and annual expense ratios of 1.25% and 0.75%, respectively. Not intended to portray actual expenses and investment results. Your experience will differ. 1.25% 0.75% annual operating expenses $106,793 is the total a 0.5% difference in expenses can mean over 30 years more than your initial investment. The American Funds expense ratios are for Class A shares as of each fund s most recent printed prospectus available on January 1, 2015. The expense ratios for American Funds Developing World Growth and Income Fund (DWGI) and American Funds Inflation Linked Bond Fund (ILBF) are estimated. The investment adviser for DWGI, ILBF and American Funds Tax-Exempt Fund of New York (TEFNY) is currently reimbursing a portion of other expenses. Net expense ratios reflect the reimbursements, without which they would have been higher. The reimbursements will be in effect through at least February 1, 2015, for DWGI, at least January 31, 2015, for ILBF and at least September 30, 2015, for TEFNY. The adviser may elect at its discretion to extend, modify or terminate the reimbursement at that time. Please see each fund s most recent prospectus for details. Expense ratios do not reflect sales charges. Due to their significant investments outside the U.S., Capital World Growth and Income Fund, EuroPacific Growth Fund, International Growth and Income Fund, New Perspective Fund, New World Fund and SMALLCAP World Fund are included in the International/Global equity category. Although Class A shares are available for purchase by retirement plans only in limited instances, their expense ratios do not include retirement plan recordkeeping expenses. American Funds offers plan sponsors flexibility in how they pay for plan operating expenses (such as recordkeeping fees) through seven distinct retirement plan share classes. Expenses differ for each share class, so expense ratios will vary. * Source for industry averages: Lipper, based on comparable categories for front-end load funds (except money market funds, which are compared against no-load funds), excluding funds of funds, as of each fund s most recent fiscal year-end available December 31, 2014. 9

It s Important to Measure Results Over Meaningful Periods of Time. We keep one objective in front of us every single day, and that is to generate superior long-term investment results for our investors. We take this very seriously, and it drives every decision that we make. Justin Toner, Investment Analyst Figures shown are past results for Class A shares and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. Unless otherwise indicated, results shown are at net asset value with all distributions reinvested. An investment in the money market fund is not insured or guaranteed by the FDIC or any other government agency. Although money market funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market fund. If the 5.75% maximum Class A sales charge (3.75% for most bond and tax-exempt bond funds, 2.50% for shorter term* bond funds) had been deducted, results would have been lower. There is no sales charge for Money Market Fund Class A shares. For current information and month-end results, visit americanfunds.com. 10 Equity Fund Results at a Glance (as of December 31, 2014) Inception date Outpaced Lipper indexes over 1 10-year periods Average annual total return at maximum offering price 20-year periods 1 year 5 years 10 years Avg. annual return (lifetime) at net asset value Growth funds AMCAP Fund 5/1/67 32 of 38 28 of 28 5.64% 13.86% 7.57% 11.66% 0.70% EuroPacific Growth Fund 4/16/84 21 of 21 11 of 11 8.23 4.44 6.08 11.18 0.84 The Growth Fund of America 12/1/73 3 32 of 32 22 of 22 3.03 12.15 7.41 13.73 0.66 The New Economy Fund 12/1/83 21 of 22 12 of 12 1.41 13.40 8.54 11.38 0.83 New Perspective Fund 3/13/73 22 of 22 12 of 12 2.70 9.19 7.45 12.40 0.76 New World Fund 6/17/99 2 of 6 0 of 0 9.19 3.79 7.86 8.26 1.03 SMALLCAP World Fund 4/30/90 7 of 15 0 of 5 4.04 10.11 7.76 9.73 1.07 Growth-and-income funds American Funds Developing World Growth and Income Fund SM 2/3/14 0.85 4 5.20 4 1.46 American Mutual Fund 2/21/50 37 of 46 35 of 36 6.14 12.39 7.08 11.79 0.59 Capital World Growth and Income Fund 3/26/93 12 of 12 2 of 2 1.96 7.74 6.92 11.06 0.80 Fundamental Investors 8/1/78 3 27 of 27 17 of 17 2.70 12.10 7.97 12.61 0.63 International Growth and Income Fund SM 10/1/08 8.83 5.17 7.78 5 8.81 0.91 The Investment Company of America 1/1/34 45 of 46 36 of 36 5.64 11.99 6.73 12.25 0.61 Washington Mutual Investors Fund SM 7/31/52 45 of 46 36 of 36 4.82 13.55 6.68 11.99 0.60 Equity-income funds Capital Income Builder 7/30/87 17 of 17 7 of 7 0.49 7.61 5.61 9.73 0.59 The Income Fund of America 12/1/73 3 17 of 17 7 of 7 2.16 9.84 6.22 11.36 0.57 Balanced funds American Balanced Fund 7/26/75 3 23 of 30 15 of 20 2.59 10.84 6.34 10.94 0.61 American Funds Global Balanced Fund SM 2/1/11 2.27 6.22 5 7.84 0.89 When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Please see americanfunds.com for more information. The investment adviser for American Funds Developing World Growth and Income Fund (DWGI), American Funds Inflation Linked Bond Fund (ILBF) and American Funds Tax-Exempt Fund of New York (TEFNY) is currently reimbursing a portion of other expenses. Investment results reflect the reimbursements, without which results would have been lower. The reimbursements will be in effect through at least February 1, 2015, for DWGI, at least January 31, 2015, for ILBF and at least September 30, 2015, for TEFNY. The adviser may elect at its discretion to extend, modify or terminate the reimbursement at that time. Please see the fund s most recent prospectus for details. 1 Based on Class A shares at net asset value for periods through December 31, 2014. Each fund s Lipper index is as follows: AMCAP Fund, The Growth Fund of America and The New Economy Fund (Growth); EuroPacific Growth Fund (International); New Perspective Fund and Capital World Growth and Income Fund (Global); New World Fund (Emerging Markets); American Mutual Fund, Fundamental Investors, The Investment Expense ratio 2

Fixed-Income Fund Results at a Glance (as of December 31, 2014) Inception date Outpaced Lipper indexes over 1 10-year periods Average annual total return at maximum offering price 20-year periods 1 year 5 years 10 years Avg. annual return (lifetime) at net asset value Taxable bond funds 6 American Funds Inflation Linked Bond Fund SM 12/14/12 2.49% 3.07% 5 1.85% 0.79% American Funds Mortgage Fund 11/1/10 1.23 1.56 5 2.50 0.72 American High-Income Trust 2/19/88 15 of 17 7 of 7 3.22 6.71 5.79% 8.24 0.66 The Bond Fund of America 5/28/74 8 of 17 2 of 7 1.60 3.80 3.09 7.97 0.61 Capital World Bond Fund 8/4/87 15 of 17 7 of 7 2.20 2.33 3.42 6.62 0.90 Intermediate Bond Fund of America * 2/19/88 3 of 15 0 of 5 0.60 1.84 2.46 5.02 0.61 Short-Term Bond Fund of America * 10/2/06 2.09 0.30 1.46 5 1.78 0.59 U.S. Government Securities Fund 10/17/85 9 of 20 7 of 10 0.88 2.60 3.48 6.00 0.64 Tax-exempt bond funds 6 American Funds Short-Term Tax-Exempt Bond Fund * 8/7/09 7 1.56 0.98 1.07 5 1.55 0.58 American Funds Tax-Exempt Fund of New York 11/1/10 5.73 3.89 5 4.85 0.73 American High-Income Municipal Bond Fund 9/26/94 11 of 11 1 of 1 9.74 6.73 4.38 5.75 0.68 Limited Term Tax-Exempt Bond Fund of America * 10/6/93 0 of 12 0 of 2 0.77 3.08 3.16 4.27 0.60 The Tax-Exempt Bond Fund of America 10/3/79 13 of 24 8 of 14 5.57 4.70 4.02 6.77 0.56 The Tax-Exempt Fund of California 10/28/86 14 of 19 6 of 9 6.60 5.72 4.31 5.82 0.63 The Tax Exempt Fund of Maryland 8/14/86 5 of 13 1 of 3 2.59 3.47 3.18 5.17 0.70 The Tax-Exempt Fund of Virginia 8/14/86 3 of 14 0 of 4 3.29 3.40 3.32 5.32 0.67 Money market fund 8 American Funds Money Market Fund 5/1/09 0.00 0.00 0.00 5 0.00 0.38 The annualized seven-day SEC yield for American Funds Money Market Fund was 0.00% as of December 31, 2014; it reflects reimbursements of certain expenses by the investment adviser. Without the reimbursements, the yield would have been 0.30%. The yield more accurately reflects the fund s current earnings than do the fund s total returns. Company of America and Washington Mutual Investors Fund (Growth & Income); Capital Income Builder and The Income Fund of America (Income [Mixed Equity]); American Balanced Fund (Balanced); American High-Income Trust (High Yield); The Bond Fund of America (Core Bond); Capital World Bond Fund (Global Income); Intermediate Bond Fund of America (Short-Intermediate Investment Grade Debt); U.S. Government Securities Fund (General U.S. Government); American High-Income Municipal Bond Fund (High Yield Municipal Debt); Limited Term Tax-Exempt Bond Fund of America (Intermediate Municipal Debt); The Tax-Exempt Bond Fund of America (General & Insured Municipal Debt); The Tax- Exempt Fund of California (California Municipal Debt); The Tax-Exempt Fund of Maryland (Maryland Municipal Debt); and The Tax-Exempt Fund of Virginia (Virginia Municipal Debt). SMALLCAP World Fund results are based on comparisons with Lipper Global Small-/Mid-Cap Funds Average. Results for the Lipper indexes/averages do not reflect sales charges. Periods covered are the shorter of the fund s lifetime or since the comparable Lipper index inception date. 2 Expense ratios are as of each fund s prospectus available at the time of publication. The expense ratios for American Funds Developing World Growth and Income Fund and American Funds Inflation Linked Bond Fund are estimated. 3 Capital Research and Management Company began managing the fund on this date. 4 Cumulative fund lifetime return. 5 Fund s lifetime is less than the full period. Average annual total return is shown. 6 Prior to January 10, 2000, the maximum sales charge for bond funds was 4.75%. From January 10, 2000, to October 31, 2006, the maximum sales charge for Intermediate Bond Fund of America and Limited Term Tax-Exempt Bond Fund of America was 3.75%. 7 The Tax-Exempt Money Fund of America converted to American Funds Short-Term Tax-Exempt Bond Fund on this date. Investment results shown do not include the fund s results for the period it operated as The Tax-Exempt Money Fund of America, whose results can be found in American Funds Short-Term Tax-Exempt Bond Fund s prospectus. 8 Although American Funds Money Market Fund has 12b-1 plans for some share classes, the fund is currently suspending certain 12b-1 payments in this low interest rate environment. Should payments commence, the fund s investment results will be lower. The investment adviser to American Funds Money Market Fund is reimbursing expenses for all share classes. 9 Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The investment adviser is currently waiving its management fee of 0.10% and reimbursing a portion of other expenses for American Funds Tax-Exempt Preservation Portfolio. In addition, the investment adviser has in the past reimbursed certain expenses for College Target Date Funds. Investment results and net expense ratios shown reflect the waiver and/or any current reimbursements, without which the results would have 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, 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. Expense ratios are as of each fund s prospectus available at the time of publication and include the weighted average expenses of the underlying funds. 10 Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The investment adviser is currently waiving its management fee of 0.10%. After December 31, 2015, the adviser may modify or terminate the waiver, but only with fund board approval. In addition, the investment adviser has in the past reimbursed certain expenses for all share classes. Investment results and net expense ratios reflect the waiver (continues on page 12) Expense ratio 2 11

Our Portfolios Are Designed to Help Investors Achieve Their Objectives. Fund Series Results at a Glance (as of December 31, 2014) Average annual total return at maximum offering price Inception date 1 year 5 years 10 years Avg. annual return (lifetime) at net asset value Expense ratio (Net/gross) American Funds Portfolio Series SM 9 American Funds Global Growth Portfolio SM 5/18/12 3.50% 14.13% 5 16.74% 0.83%/0.93% American Funds Growth Portfolio SM 5/18/12 0.25 16.17 5 18.82 0.75/0.85 American Funds Growth and Income Portfolio SM 5/18/12 0.91 12.67 5 15.24 0.69/0.79 American Funds Balanced Portfolio SM 5/18/12 0.47 11.08 5 13.62 0.72/0.82 American Funds Income Portfolio SM 5/18/12 0.49 7.88 5 10.35 0.66/0.76 American Funds Tax-Advantaged Income Portfolio SM 5/18/12 5.60 10.22 5 11.84 0.81/0.91 American Funds Preservation Portfolio SM 5/18/12 0.62 0.19 5 0.79 0.70/0.80 American Funds Tax-Exempt Preservation Portfolio SM 5/18/12 2.36 1.37 5 2.37 0.75/0.87 American Funds Target Date Retirement Series 10 2055 Target Date Retirement Fund 2/1/10 0.58 10.91 5 12.26 0.79/0.89 2050 Target Date Retirement Fund 2/1/07 0.60 10.14 5.23% 5 6.02 0.77/0.87 2045 Target Date Retirement Fund 2/1/07 0.56 10.13 5.23 5 6.02 0.76/0.86 2040 Target Date Retirement Fund 2/1/07 0.50 10.11 5.23 5 6.02 0.76/0.86 2035 Target Date Retirement Fund 2/1/07 0.54 10.03 5.17 5 5.96 0.76/0.86 2030 Target Date Retirement Fund 2/1/07 0.50 10.01 5.17 5 5.96 0.75/0.85 2025 Target Date Retirement Fund 2/1/07 0.22 9.55 4.80 5 5.59 0.73/0.83 2020 Target Date Retirement Fund 2/1/07 0.34 8.32 4.21 5 4.99 0.71/0.81 2015 Target Date Retirement Fund 2/1/07 0.16 7.53 4.06 5 4.84 0.71/0.81 2010 Target Date Retirement Fund 2/1/07 0.21 6.98 3.79 5 4.57 0.71/0.81 American Funds College Target Date Series 9,11 American Funds College 2030 Fund 9/14/12 0.50 10.46 5 12.55 0.79/0.89 American Funds College 2027 Fund 9/14/12 1.00 9.14 5 11.20 0.79/0.89 American Funds College 2024 Fund 9/14/12 1.76 7.65 5 9.69 0.79/0.89 American Funds College 2021 Fund 9/14/12 1.39 5.77 5 7.77 0.73/0.83 American Funds College 2018 Fund 9/14/12 1.37 3.93 5 5.90 0.75/0.85 American Funds College 2015 Fund 9/14/12 0.82 0.12 5 1.77 0.80/0.90 American Funds College Enrollment Fund 9/14/12 0.38 0.74 5 0.38 0.84/0.94 (See footnotes on pages 10 and 11.) and reimbursements, without which the results would 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 weighted average expenses of the underlying funds. Please see the target date funds most recent prospectus for details. Although the target date funds are managed for investors on a projected retirement date time frame, each fund s allocation strategy does not guarantee that investors retirement goals will be met. American Funds investment professionals actively manage each target date fund s portfolio, moving it from a more growth-oriented strategy to a more income-oriented focus as each fund gets closer to its target date. Investment professionals continue to manage each fund for 30 years after it reaches its target date. The target date is the year in which an investor is assumed to retire and begin taking withdrawals. 11 Figures shown are for Class 529-A shares. 12

Our Fixed-Income Funds Help Provide Diversification and Income. Investors have used our fixed-income funds to help diversify their portfolios and to pursue income and stability. Although fixed-income funds tend to lag during rising stock markets, our fixed-income funds have cushioned losses in diversified portfolios during stock market declines, as shown below. Our fixed-income funds are designed to be part of an investor s diversified portfolio, with objectives that may include preservation of capital, income and total return. To identify investment opportunities, we combine a bottom-up evaluation of bonds and issuers with extensive top-down analysis of economic trends and market conditions. Wesley Phoa, Portfolio Manager Figures shown are past results for Class A shares and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. Unless otherwise indicated, results shown are at net asset value with all distributions reinvested. If the maximum 3.75% Class A sales charge for most bond and tax-exempt bond funds (2.50% for 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) had been deducted, results would have been lower. For current information and month-end results, visit americanfunds.com. Total Returns During Major Declines in the S&P 500 9/21/76 3/6/78 11/28/80 8/12/82 Standard & Poor s 500 Composite Index 13.5% 20.2% 32.8% 19.2% 47.4% 55.2% 18.6% The Bond Fund of America 9.2 22.5 0.1 3.4 11.9 13.7 3.3 The Tax-Exempt Bond Fund of America 10.2 0.1 1.2 23.3 3.4 6.1 Capital World Bond Fund 7.0 4.6 12.0 5.3 1.7 U.S. Government Securities Fund 1.4 0.7 26.6 10.7 6.4 American High-Income Trust 9.7 11.4 31.1 8.5 Intermediate Bond Fund of America 0.8 23.5 0.4 2.1 American High-Income Municipal Bond Fund 19.5 16.0 6.8 Limited Term Tax-Exempt Bond Fund of America 20.2 1.6 3.8 Short-Term Bond Fund of America 3.0 0.5 American Funds Mortgage Fund 4.6 American Funds Short-Term Tax-Exempt Bond Fund 1.4 Declines are based on the index value of the unmanaged S&P 500 excluding dividends and/or distributions. Each market decline reflects a period of more than 80 days and a decline of about 15% or more in the S&P 500 s index value with 100% recovery between each decline (except for a 78% recovery between March 6, 1978, and November 28, 1980, and a 77% recovery between March 9, 2009, and April 29, 2011). The total returns for the S&P 500 include reinvested dividends and/or distributions but do not reflect the effect of expenses. The total returns for the funds assume all distributions are reinvested and reflect applicable fees and expenses. 8/25/87 12/4/87 7/16/90 10/11/90 3/24/00 10/9/02 10/9/07 3/9/09 4/29/11 10/03/11 13

The American Funds Advantage Since 1931, American Funds, part of Capital Group, has helped investors pursue long-term investment success. Our consistent approach in combination with The Capital System SM has resulted in a superior long-term track record. Aligned With Investor Success We base our decisions on a long-term perspective, which we believe aligns our goals with the interests of our clients. Our portfolio managers average 27 years of investment experience, including 22 years at our company, reflecting a career commitment to our long-term approach. 1 The Capital System SM Our investment process, The Capital System, combines individual accountability with teamwork. Each fund is divided into portions that are managed independently by investment professionals with diverse backgrounds, ages and investment approaches. An extensive global research effort is the backbone of our system. Superior Long-Term Track Record Our equity funds have beaten their Lipper peer indexes in 91% of 10-year periods and 96% of 20-year periods. Our fixed-income funds have beaten their Lipper indexes in 54% of 10-year periods and 57% of 20-year periods. 2 Our fund management fees have been among the lowest in the industry. 3 1 Portfolio manager experience as of December 31, 2014. 2 Based on Class A share results for rolling periods through December 31, 2014. Periods covered are the shorter of the fund s lifetime or since the comparable Lipper index inception date (except SMALLCAP World Fund, for which the Lipper average was used). Although Class A shares are available for purchase by retirement plans only in limited instances, their results reflect the investment management experience of the American Funds without retirement plan recordkeeping expenses. American Funds offers plan sponsors flexibility in how they pay for plan operating expenses (such as recordkeeping fees) through seven distinct retirement plan share classes. Expenses differ for each share class, so results will vary. 3 On average, our management fees were in the lowest quintile 70% of the time, based on the 20-year period ended December 31, 2014, versus comparable Lipper categories, excluding funds of funds. In addition to the more than 40 American Funds, we offer the American Funds Target Date Retirement Series, as well as CollegeAmerica, a 529 college savings plan sponsored by Virginia529, SM Coverdell Education Savings Accounts, the American Funds Insurance Series variable annuity funds and a full line of retirement plan solutions. For details, please contact your financial professional or visit americanfunds.com. Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing. If used after March 31, 2015, this brochure must be accompanied by a current American Funds quarterly statistical update. The use of American Funds investors does not necessarily constitute an endorsement of the funds by the individuals portrayed in the brochure. Investing outside the United States involves risks such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in fund prospectuses. 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 company stocks. Bond prices and a bond fund s share price will generally move in the opposite direction of interest rates. The return of principal for bond funds and funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. Investments in mortgage-related securities involve additional risks, such as prepayment risk, as more fully described in the prospectus. Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds. While not directly correlated to changes in interest rates, the values of inflation-linked bonds generally fluctuate in response to changes in real interest rates and may experience greater losses than other debt securities with similar durations. For tax-exempt bond funds, income may be subject to state or local income taxes and/or the federal alternative minimum tax. The Tax-Exempt Bond Fund of America does not invest in bonds subject to the alternative minimum tax. Certain other income, as well as capital gain distributions, may be taxable. A state tax-exempt bond fund is more susceptible to factors adversely affecting issuers of its state s tax-exempt securities than a more widely diversified municipal bond fund. Lit. No. MFGEBR-009-0215P Litho in USA CGD/UNL/8219-S42661 2015 American Funds Distributors, Inc. Printed on recycled paper

Quarterly Statistical Update April 2015 Data as of March 31, 2015 This update must be used (until superseded) with any American Funds and CollegeAmerica sales materials that include investment results for periods ended before the date above. As a practical matter, financial advisors should consider including this update with all American Funds and CollegeAmerica sales literature. This material may be photocopied. Investment results updated monthly, and daily share price information, are available at americanfunds.com. Figures shown are past results and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For current information and month-end results, visit americanfunds.com. Returns shown are based on a $1,000 investment. The return of principal for bond funds and funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. Investments in mortgage-related securities involve additional risks, such as prepayment risk, as more fully described in the prospectus. Fund shares of U.S. Government Securities Fund are not guaranteed by the U.S. government. An investment in the money market fund is not insured or guaranteed by the FDIC or any other government agency. Although the 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. Exchange privileges generally allow shareholders to transfer some or all of their holdings among American Funds in the same share class without a sales charge. CollegeAmerica allows exchanges once a year or when the beneficiary is changed. Class A, C and F-1 shares generally may be ex changed into the corresponding 529 share class without a sales charge, but such exchanges from UGMA or UTMA custo dial accounts may create significant legal and tax consequences. Exchange privileges are subject to change or termination. American Funds American Funds Class A shares are subject to a 5.75% maximum up-front sales charge for equity funds and most Portfolio Series funds, 3.75% for most bond and tax-exempt bond funds and American Funds Tax-Advantaged Income Portfolio, 2.50% for shorter term bond funds, American Funds Preservation Portfolio and American Funds Tax-Exempt Preservation Portfolio. There is no sales charge for the Class A money market fund. Share classes without an up-front sales charge are also available. Class C shares have a 1% contingent deferred sales charge on shares sold within the first year of purchase and convert to Class F-1 shares after 10 years. Class F-1 and F-2 shares have an annual asset-based fee charged by the sponsoring firm. New investments in Class B shares are no longer allowed. For more information and investment results, please see americanfunds.com. Class C shares are limited to a maximum purchase of $500,000, and are not available to certain employer-sponsored retirement plans. Class F-1 and F-2 shares are available only through certain fee-based programs offered by registered investment advisors. Your financial advisor can help you decide which share class is best for you. Class F-2 shares were introduced on August 1, 2008. Fund results prior to the date of first sale are hypothetical, based on Class A share returns without a sales charge adjusted for typical additional expenses as described on pages 8 and 9. Individual fund expenses are also shown on pages 8 and 9. American Funds in CollegeAmerica CollegeAmerica, a 529 college savings plan sponsored by Virginia529 ȘM is available nationwide and allows federal-tax-free earnings and withdrawals for a beneficiary s qualified higher education expenses. (Qualified with drawals from 529 plans are exempt from federal income tax. Qualified withdrawals may also be exempt from state income tax. Check with a tax advisor. If withdrawals are used for purposes other than higher education, the earnings will be subject to a 10% federal tax penalty in addition to federal and, if applicable, state income tax.) Interests in CollegeAmerica are sold through unaffiliated intermediaries. CollegeAmerica is distributed by American Funds Distributors, Inc. If you reside in a state other than Virginia, there may be an in-state plan that offers tax and other benefits not available through CollegeAmerica. Before investing in any state s 529 plan, you should consult your tax advisor. CollegeAmerica features four share classes. Class 529-A, 529-C and 529-F-1 shares are structured similarly to American Funds Class A, C and F-1 shares, respectively. Unless otherwise indicated, 529 share class details (including sales charges and share conversion) are generally the same as the corresponding American Funds share class. Class 529-E shares are structured similarly to Class 529-F-1 shares but are available only through eligible employer-sponsored plans. Unless otherwise indicated, Class 529-E share details are generally the same as Class 529-F-1 shares. New investments in Class 529-B shares are no longer allowed. More information and investment results for Class 529-B and 529-E shares can be found on americanfunds.com. Class 529-C shares do not convert to Class 529-F-1 shares after 10 years. Class 529-F-1 shares are available only through certain fee-based programs offered by broker-dealer firms and registered investment advisors. CollegeAmerica investors can contribute up to $14,000 a year per beneficiary ($28,000 for married couples) without gift-tax consequences. With a special gift-tax election, five years worth of investments can be accelerated, so investors can contribute up to $70,000 at one time ($140,000 for married couples). Each beneficiary is limited to $350,000 in combined account values (including investments and earnings) of all 529 plans administered by Virginia529. Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses, summary prospectuses and CollegeAmerica Program Description, which can be obtained from a financial professional and should be read carefully before investing. Invest ments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Results at net asset value do not reflect the funds maximum sales charges. If these had been deducted, results would have been lower. Results at maximum offering price reflect deduction of the funds maximum sales charges (5.75% for equity funds, 3.75% for most bond funds, 2.50% for shorter term* bond funds). Class A shares Investment results for periods ended March 31, 2015 Average annual total returns Without sales charge (NAV) With maximum sales charge (MOP) 1 year % 5 years % 10 years % 1 year % 5 years % 10 years % Annualized 30-day SEC Yield at MOP 1 % Growth funds AMCAP Fund 11.47 14.48 8.77 5.06 13.13 8.13 0.26 0.70 EuroPacific Growth Fund 2.48 6.75 7.33-3.41 5.49 6.69 0.66 0.84 The Growth Fund of America 11.95 13.31 8.61 5.51 11.98 7.97 0.35 0.66 The New Economy Fund 7.11 14.70 10.08 0.95 13.35 9.43 0.21 0.79 New Perspective Fund 7.78 10.98 8.83 1.58 9.68 8.19 0.67 0.76 New World Fund -1.39 4.93 8.70-7.06 3.69 8.05 0.82 1.03 SMALLCAP World Fund 6.01 11.12 8.98-0.10 9.80 8.34-0.06 1.07 Growth-and-income funds American Funds Developing World Growth and Income Fund SM -3.59 3.81 2-9.13-1.38 2 1.84 1.39 American Mutual Fund 10.54 13.04 7.83 4.21 11.71 7.19 1.91 0.59 Capital World Growth and Income Fund 5.05 9.57 7.83-0.99 8.28 7.19 1.70 0.77 Fundamental Investors 10.31 12.83 8.85 3.97 11.50 8.21 1.27 0.61 International Growth and Income Fund SM -3.33 6.65 8.74 3-8.89 5.39 7.75 3 2.14 0.91 The Investment Company of America 10.22 12.73 7.53 3.89 11.40 6.89 1.61 0.59 Washington Mutual Investors Fund SM 9.41 14.06 7.49 3.12 12.72 6.86 1.76 0.60 Equity-income funds Capital Income Builder 5.24 8.79 6.47-0.82 7.50 5.84 2.84 0.59 The Income Fund of America 6.60 10.70 7.09 0.49 9.40 6.46 2.74 0.57 Balanced funds American Balanced Fund 8.08 11.42 7.20 1.88 10.11 6.57 1.48 0.59 American Funds Global Balanced Fund SM 1.99 7.52 4-3.87 5.99 4 1.43 0.89 Bond funds American Funds Inflation Linked Bond Fund SM 3.73-0.99 5 1.16-2.10 5-3.55 0.79 American Funds Mortgage Fund 4.40 2.59 6 0.48 1.70 6 0.83 0.72 American High-Income Trust 0.58 7.04 6.63-3.22 6.22 6.22 5.16 0.66 The Bond Fund of America 5.05 4.43 3.74 1.11 3.63 3.35 1.50 0.62 Capital World Bond Fund -1.71 2.72 3.96-5.39 1.94 3.56 1.26 0.90 Intermediate Bond Fund of America * 2.27 2.34 2.88-0.31 1.82 2.61 0.91 0.61 Short-Term Bond Fund of America * 0.78 0.77 1.79 7-1.78 0.25 1.48 7 0.51 0.59 U.S. Government Securities Fund 4.47 3.43 4.05 0.59 2.64 3.65 0.76 0.64 Tax-exempt bond funds American Funds Short-Term Tax-Exempt Bond Fund * 8 0.95 1.45 1.53 9-1.56 0.93 1.07 9 0.53 0.58 American Funds Tax-Exempt Fund of New York 7.60 4.87 6 3.60 3.96 6 1.99 0.73 American High-Income Municipal Bond Fund 9.80 7.36 4.88 5.68 6.53 4.49 2.87 0.68 Limited Term Tax-Exempt Bond Fund of America * 2.80 3.48 3.57 0.23 2.95 3.31 0.89 0.60 The Tax-Exempt Bond Fund of America 6.95 5.44 4.55 2.98 4.64 4.15 1.62 0.56 The Tax-Exempt Fund of California 7.47 6.33 4.83 3.44 5.52 4.44 1.65 0.63 The Tax-Exempt Fund of Maryland 4.29 4.15 3.68 0.37 3.36 3.28 1.69 0.70 The Tax-Exempt Fund of Virginia 4.96 4.12 3.88 1.03 3.33 3.48 1.57 0.67 Expense ratio % From January 10, 2000, to October 31, 2006, the maximum sales charge for Intermediate Bond Fund of America and Limited Term Tax-Exempt Bond Fund of America was 3.75%. Investment results 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. The expense ratio for American Funds Inflation Linked Bond Fund is estimated. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Please see americanfunds.com for more information. The investment adviser is currently reimbursing a portion of other expenses for American Funds Tax-Exempt Fund of New York. Investment results reflect the reimbursement, without which the results would have been lower and the expenses would have been higher. This reimbursement will be in effect through at least September 30, 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. Please see each fund s most recent prospectus for details. 1 Two SEC yields are shown for some funds. The first number reflects the fee waiver and/or reimbursement; the second does not. 2 Fund lifetime return. The fund began operations February 3, 2014. 3 Fund lifetime return. The fund began operations October 1, 2008. 4 Fund lifetime return. The fund began operations February 1, 2011. 5 Fund lifetime return. The fund began operations December 14, 2012. 6 Fund lifetime return. The fund began operations November 1, 2010. 7 Fund lifetime return. The fund began operations October 2, 2006. 8 The Tax-Exempt Money Fund of America (inception: October 24, 1989) converted to American Funds Short-Term Tax-Exempt Bond Fund on August 7, 2009. Investment results shown do not include the fund s results for the period it operated as The Tax-Exempt Money Fund of America, whose results can be found in American Funds Short-Term Tax-Exempt Bond Fund s prospectus. 9 Fund lifetime return. The fund began operations August 7, 2009. 2

Results at net asset value do not reflect the funds maximum sales charges. If these had been deducted, results would have been lower. Results at maximum offering price reflect deduction of the funds maximum sales charges (5.75% for target date and most Portfolio Series* funds, 3.75% for American Funds Tax-Advantaged Income Portfolio, 2.50% for American Funds Preservation Portfolio and American Funds Tax-Exempt Preservation Portfolio). Class A shares Investment results for periods ended March 31, 2015 Average annual total returns Without sales charge (NAV) With maximum sales charge (MOP) 1 year % 5 years % 10 years % 1 year % 5 years % 10 years % Annualized 30-day SEC Yield at MOP 1 % Expense ratio % (net/gross) Money market fund American Funds Money Market Fund 0.00 0.00 0.00 2 0.00 0.00 2 0.00/-0.31 3 0.38 Portfolio Series funds American Funds Global Growth Portfolio SM * 5.00 16.56 4-1.04 14.18 4 0.97/0.88 0.83/0.93 American Funds Growth Portfolio SM * 8.02 18.48 4 1.83 16.06 4 0.54/0.44 0.75/0.85 American Funds Growth and Income Portfolio SM * 6.49 14.39 4 0.40 12.05 4 1.75/1.66 0.69/0.79 American Funds Balanced Portfolio SM * 6.95 13.10 4 0.84 10.79 4 1.54/1.45 0.72/0.82 American Funds Income Portfolio SM * 5.50 9.88 4-0.56 7.63 4 2.95/2.86 0.66/0.76 American Funds Tax-Advantaged Income Portfolio SM 7.79 11.30 4 3.72 9.83 4 2.66/2.56 0.81/0.91 American Funds Preservation Portfolio SM 2.11 1.07 4-0.41 0.17 4 0.88/0.78 0.70/0.80 American Funds Tax-Exempt Preservation Portfolio SM 3.89 2.41 4 1.32 1.50 4 2.62/2.52 0.75/0.87 Target date funds American Funds 2055 Target Date Retirement Fund 7.48 11.23 12.10 5 1.32 9.91 10.83 5 1.09/1.00 0.79/0.89 American Funds 2050 Target Date Retirement Fund 7.43 11.20 6.12 6 1.27 9.89 5.35 6 1.07/0.98 0.77/0.87 American Funds 2045 Target Date Retirement Fund 7.48 11.21 6.12 6 1.29 9.90 5.36 6 1.10/1.01 0.76/0.86 American Funds 2040 Target Date Retirement Fund 7.36 11.18 6.11 6 1.17 9.86 5.34 6 1.13/1.04 0.76/0.86 American Funds 2035 Target Date Retirement Fund 7.41 11.11 6.06 6 1.21 9.81 5.29 6 1.23/1.13 0.76/0.86 American Funds 2030 Target Date Retirement Fund 7.21 11.05 6.03 6 1.02 9.73 5.27 6 1.20/1.11 0.75/0.85 American Funds 2025 Target Date Retirement Fund 6.32 10.48 5.60 6 0.19 9.17 4.84 6 1.26/1.17 0.73/0.83 American Funds 2020 Target Date Retirement Fund 6.19 9.33 5.02 6 0.05 8.05 4.26 6 1.37/1.27 0.71/0.81 American Funds 2015 Target Date Retirement Fund 5.70 8.51 4.83 6-0.40 7.23 4.07 6 1.70/1.61 0.71/0.81 American Funds 2010 Target Date Retirement Fund 5.50 7.97 4.57 6-0.57 6.70 3.81 6 1.97/1.87 0.71/0.81 Investment results 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 waivers and/or expense reimbursements, without which results would have been lower. Please see americanfunds.com for more information. Although American Funds Money Market Fund has 12b-1 plans for some share classes, the fund is currently suspending certain 12b-1 payments in this low interest rate environment. Should payments commence, the fund s investment results will be lower and expenses will be higher. Investment results for American Funds Portfolio Series funds assume all distributions are reinvested and reflect applicable fees and expenses. The investment adviser is currently waiving its management fee of 0.10% and reimbursing a portion of other expenses for American Funds Tax- Exempt Preservation Portfolio. In addition, the investment adviser has in the past reimbursed certain expenses for American Funds Preservation Portfolio. Investment results and net expense ratios reflect the waiver and/or any current reimbursements, without which the results would have been lower and the expenses would have been higher. After December 31, 2015, 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, 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. Expense ratios are as of each fund s prospectus available at the time of publication and include the weighted average expenses of the underlying funds. Investment results for the target date funds assume all distributions are reinvested and reflect applicable fees and expenses. The investment adviser is currently waiving its management fee of 0.10%. After December 31, 2015, the adviser may modify or terminate the waiver, but only with fund board approval. In addition, the investment adviser has in the past reimbursed certain expenses for all share classes. Investment results and net expense ratios reflect the waiver and reimbursements, without which the results would 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 weighted average expenses of the underlying funds. Investment allocations may not achieve fund objectives. There are expenses associated with the underlying funds in addition to fund-offunds expenses. The funds risks are directly related to the risks of the underlying funds. 1 Two SEC yields are shown for some funds. The first number reflects the fee waiver and/or reimbursement; the second does not. 2 Fund lifetime return. The fund began operations May 1, 2009. 3 Annualized seven-day SEC yield, which more accurately reflects the fund s current earnings than does total return. 4 Fund lifetime return. The fund began operations May 18, 2012. 5 Fund lifetime return. The fund began operations February 1, 2010. 6 Fund lifetime return. The fund began operations February 1, 2007. 3