Portfolio Series SM Invest in Portfolios That Are Designed to Pursue Real Life Objectives.
The funds in the Portfolio Series were created by the people who know and manage the. These senior investment professionals followed an objective-based, bottom-up process that included rigorous analysis of the underlying funds and the resulting portfolio fund holdings. Portfolio Oversight Committee The Portfolio Series is actively monitored by a Portfolio Oversight Committee a group of senior investment professionals with varied backgrounds and investment approaches, and decades of industry experience. They regularly review the Portfolio Series funds results and holdings to keep them aligned with objectives. Alan Berro 29 years Jody Jonsson 26 years Jim Lovelace 33 years Wesley Phoa 21 years John Smet 33 years Andrew Suzman New York 21 years Brad Vogt Washington, D.C. 27 years The years of experience shown for Portfolio Oversight Committee members are as of the prospectus available at the time of publication. The Process 1 Start with real-life investor objectives At, we believe that portfolios should be built to help investors meet their short-term needs and long-term goals not to provide coverage of specific areas of the market. As they created the individual Portfolio Series funds, our portfolio managers identified and considered the critical attributes of each objective, such as protecting assets during short-term market declines (preservation) or outpacing inflation and building assets over time (balance and appreciation). 2 Follow a bottom-up approach When selecting the underlying funds, they considered the critical attributes of each of the framework objectives. Within each objective, they created multiple funds to give you and your financial advisor the flexibility to focus on specific needs and goals, such as retirement income, tax-exempt income and increased access to opportunities outside the United States. They also used their judgment and understanding of the underlying funds objectives to determine how the funds would fit together in a blended portfolio. 3 Conduct a rigorous analysis Assisted by an array of research groups, the investment professionals conduct in-depth analysis of key statistics for the funds and the resulting fund combinations, including volatility measures such as standard deviation and the Sharpe ratio (the measure of excess return per unit of deviation in an investment), current income, geographic exposure and asset mix. They also review long-term results, as well as historical results during rolling periods, different stages of the market cycle and varying interest-rate environments.
Built on Investors Needs and Goals A commonsense approach When managing your personal finances, you naturally divide your money into different objectives. First, there s the money you need to cover emergency and unexpected expenses. Then there s the money you set aside for the near future. The rest goes toward longer term goals. Our framework mirrors the way you handle your finances: It divides your assets based on your needs and goals. Staying committed to a long-term plan is essential for investment success. The Portfolio Series funds allow investors to separate the assets they want to protect during market declines from the assets they re willing to subject to more volatility to pursue longer term goals. This commonsense approach seeks to provide investors with current income and capital preservation to help them feel more confident about their long-term investment plan especially during challenging markets. Portfolio Series These eight funds, started on May 18, 2012, can help investors stay true to timeless principles of investing success. Objective-based Aligned with three broad objectives preservation, balance and appreciation these portfolio funds provide investors with a structured approach to pursuing specific goals as well as broad diversification. Flexible Designed to help investors pursue a wide range of needs and goals, they can be used in combination within an objective-based framework or individually, based on an investor s time frame, risk tolerance and other factors. Trusted Each Portfolio Series fund represents a blend of individual, all with a proven track record and investment management process. Actively monitored An oversight committee meets regularly to review the Portfolio Series funds results and holdings to keep them aligned with fund objectives. The committee will also determine whether the funds need to be rebalanced. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. 3
Preservation Plan for today to help protect your assets during declines Seeks to provide: Income and preservation Volatility: Lower Time horizon: Near term Growth potential: Low Balance Prepare for tomorrow to help build your assets over time Seeks to provide: Growth and income Volatility: Moderate Time horizon: Medium term Growth potential: Moderate Tax-Exempt Preservation Portfolio SM Preservation Portfolio SM Tax-Advantaged Income Portfolio SM Income Portfolio SM As part of a diversified investment strategy, this fund seeks to provide investors with tax-exempt income consistent with capital preservation to help cover unexpected expenses. As part of a diversified investment strategy, this fund seeks to provide investors with income consistent with capital preservation to help cover unexpected expenses. Through exposure to a diverse mix of municipal bonds and dividend-paying companies, the portfolio seeks to help investors grow their assets while also providing some tax-exempt income. With exposure to a diverse mix of stocks from dividend-paying companies and fixed-income securities, the portfolio seeks to provide income and longterm growth potential. 1,074 bond holdings 0 equity holdings 756 bond holdings 8 equity holdings 1,094 bond holdings 443 equity holdings 707 bond holdings 490 equity holdings Limited Term Tax-Exempt Bond Fund of America 70% The Tax-Exempt Bond Fund of America 30% A TEPAX 0.75/0.87 F-1 TEPFX 0.71/0.83 F-2 TXEFX 0.45/0.57 R-3 N/A N/A Intermediate Bond Fund of America 40% Short-Term Bond Fund of America 40% The Bond Fund of America 20% A PPVAX 0.70/0.80 F-1 PPVFX 0.71/0.81 F-2 PPEFX 0.45/0.55 R-3 RPPCX 1.04/1.14 Capital World Growth and 25% Income Fund Washington Mutual 25% Investors Fund SM American High- Income Municipal 25% Bond Fund The Tax-Exempt Bond Fund 25% of America A TAIAX 0.81/0.91 American Mutual Fund 20% Capital Income Builder 20% The Income Fund of America 20% American High- Income Trust 20% U.S. Government Securities Fund 20% A INPAX 0.66/0.76 F-1 TAIFX 0.78/0.88 F-1 INPFX 0.70/0.80 F-2 TXIFX 0.51/0.61 F-2 INPEX 0.44/0.54 R-3 N/A N/A R-3 RNCCX 1.02/1.12 *Allocation percentages and underlying funds are subject to the Portfolio Oversight Committee's discretion and will evolve over time. Underlying funds may be added or removed at any time. As with investments aligned with appreciation and balance objectives, preservation investments can lose value. 4
Appreciation Invest for your dreams to help you shape your future Seeks to provide: Growth Volatility: Higher Time horizon: Long term Growth potential: High Balanced Portfolio SM Growth and Income Portfolio SM Growth Portfolio SM Global Growth Portfolio SM Offers exposure to a mix of global stocks and bonds that can temper the impact of volatility on an overall portfolio to help an investor pursue future needs and goals. Seeks to help investors build assets over time through exposure to a wide range of stock investments, as well as income from dividendpaying companies and fixed-income securities. Seeks to help investors pursue longer term goals through exposure to a diverse mix of stocks of companies with strong growth potential. Designed to help investors pursue long-term goals by investing in funds with exposure to companies located around the world. 771 bond holdings 600 equity holdings 605 bond holdings 733 equity holdings 4 bond holdings 1,213 equity holdings 67 bond holdings 759 equity holdings New Perspective Fund 20% The Growth Fund of America 20% AMCAP Fund 30% The New Economy Fund 20% Capital World Growth and Income Fund 10% The Investment Company of America 20% EuroPacific Growth Fund 25% New Perspective Fund 30% Washington Mutual Investors Fund SM 10% Capital World Growth and Income Fund 20% SMALLCAP World Fund 15% New World Fund 20% American Balanced Fund 20% Capital Income Builder 25% Fundamental Investors 30% Capital World Growth and Income Fund 30% Global Balanced Fund 20% The Bond Fund of America 20% A BLPAX 0.72/0.82 F-1 BLPFX 0.78/0.88 Capital World Bond Fund 15% A GAIOX 0.69/0.79 F-1 GAIFX 0.76/0.86 F-2 GAIEX 0.50/0.60 R-3 RAICX 1.07/1.17 A GWPAX 0.75/0.85 F-1 GWPFX 0.83/0.93 F-2 GWPEX 0.57/0.67 R-3 RGPCX 1.14/1.24 A PGGAX 0.83/0.93 F-1 PGGFX 0.90/1.00 F-2 PGWFX 0.63/0.73 R-3 RGLCX 1.21/1.31 F-2 BLPEX 0.52/0.62 R-3 RBACX 1.10/1.20 5
The Advantage Since 1931,, 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). 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. 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. The Portfolio Series investment allocations may not achieve fund objectives. There are expenses associated with the underlying funds in addition to fund-of-funds expenses. The funds risks are directly related to the risks of the underlying funds, as described below. Investing outside the United States involves risks such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in all the series 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. 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. Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds. Income from municipal bonds may be subject to state or local income taxes and/or the federal alternative minimum tax. Certain other income, as well as capital gain distributions, may be taxable. Lit. No. MFGEBR-900-0315P Litho in USA CGD/PX/10300-S46563 2015 Distributors, Inc. Printed on recycled paper