<PAGE> [logo - American Funds /(R)/] The right choice for the long term/(R)/ International Growth and Income Fund/SM/CLASS TICKER F-1.... IGIFX 529-C.. CIICX A...... IGAAX F-2.... IGFFX 529-E.. CGIEX B...... IGIBX 529-A.. CGIAX 529-F-1 CGIFX C...... IGICX 529-B.. CGIBX PROSPECTUS March 1, 2010 TABLE OF CONTENTS 1 Investment objective 1 Fees and expenses of the fund 3 Principal investment strategies 3 Principal risks 4 Investment results 6 Management 6 Purchase and sale of fund shares 7 Tax information 7 Payments to broker-dealers and other financial intermediaries 8 Investment objective, strategies and risks 9 Additional investment results 11 Management and organization 14 Shareholder information 15 Choosing a share class 19 Purchase, exchange and sale of shares 24 Sales charges 27 Sales charge reductions and waivers 31 Rollovers from retirement plans to IRAs 31 Plans of distribution 32 Other compensation to dealers 33 How to sell shares 35 Distributions and taxes 36 Financial highlights THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED OF THESE SECURITIES. FURTHER, IT HAS NOT DETERMINED THAT THIS PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. <PAGE> [This page is intentionally left blank for this filing.] <PAGE> Investment objective The fund's investment objective is to provide you with long-term growth of capital while providing current income. Fees and expenses of the fund This table describes the fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $25,000 in American Funds. More information about these and other discounts is available from your financial professional and in the "Sales charge reductions and waivers" section on page 27 of the prospectus and on page 54 of the fund's statement of additional information.<SHAREHOLDER FEES (fees paid directly from your investment) ----------------------------------------------------SHARE CLASSES-------------- -----------------------------F-1, F-2- A AND B AND C AND AND 529-A 529-B 529-C 529-E 529-F-1 ------------------------------------------------------------------------------- Maximum sales charge (load) imposed on 5.75% none none none none purchases (as a percentage of offering price) ------------------------------------------------------------------------------- Maximum deferred sales charge (load) none 5.00% 1.00% none none (as a percentage of the amount redeemed) ------------------------------------------------------------------------------- Maximum sales charge (load) imposed on none none none none none reinvested dividends ------------------------------------------------------------------------------- Redemption or exchange fees none none none none none ------------------------------------------------------------------------------- Maximum annual account fee $10 $10 $10 $10 $10 (529 share classes only) ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment) --------------------------------------------------SHARE CLASSES------------------A-------B-------C------F-1-------F-2---- ------------------------------------------------------------------------------- Management fees 0.61% 0.61% 0.61% 0.61% 0.61% ------------------------------------------------------------------------------- Distribution and/or service 0.30 1.00 1.00 0.25 none (12b-1) fees ------------------------------------------------------------------------------- Other expenses/*/ 0.20 0.20 0.23 0.21 0.21 ------------------------------------------------------------------------------- Total annual fund operating 1.11 1.81 1.84 1.07 0.82 expenses 529-A 529-B 529-C 529-E 529-F-1 ------------------------------------------------------------------------------- Management fees 0.61% 0.61% 0.61% 0.61% 0.61% ------------------------------------------------------------------------------- Distribution and/or service 0.30 1.00 1.00 0.50 0.00 (12b-1) fees ------------------------------------------------------------------------------- Other expenses/*/ 0.29 0.32 0.30 0.28 0.29 ------------------------------------------------------------------------------- Total annual fund operating 1.20 1.93 1.91 1.39 0.90 expenses 1 International Growth and Income Fund / Prospectus <PAGE> EXAMPLE This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year, that all dividends and capital gain distributions are reinvested, and that the fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:SHARE CLASSES 1 YEAR 3 YEARS 5 YEARS 10 YEARS --------------------------------------------------------------------- A $682 $ 908 $1,151 $1,849 --------------------------------------------------------------------- B 684 969 1,180 1,943 --------------------------------------------------------------------- C 287 579 995 2,159 --------------------------------------------------------------------- F-1 109 340 590 1,306 --------------------------------------------------------------------- F-2 84 262 455 1,014 --------------------------------------------------------------------- 529-A 710 973 1,255 2,048 --------------------------------------------------------------------- 529-B 716 1,045 1,298 2,163 --------------------------------------------------------------------- 529-C 314 639 1,088 2,330 --------------------------------------------------------------------- 529-E 161 479 818 1,769 --------------------------------------------------------------------- 529-F-1 112 326 557 1,212 For the share classes listed below, you would pay the following if you did not redeem your shares:SHARE CLASSES 1 YEAR 3 YEARS 5 YEARS 10 YEARS --------------------------------------------------------------------- B $184 $569 $ 980 $1,943 --------------------------------------------------------------------- C 187 579 995 2,159 --------------------------------------------------------------------- 529-B 216 645 1,098 2,163 --------------------------------------------------------------------- 529-C 214 639 1,088 2,330 --------------------------------------------------------------------- * Amount is estimated based on annualized expenses for a partial year. PORTFOLIO TURNOVER The fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund's performance. During the most recent fiscal year, the fund's portfolio turnover rate was 33% of the average value of its portfolio. The fund commenced operations on October 1, 2008; therefore, the stated portfolio turnover rate may not be representative of a full year. 2 International Growth and Income Fund / Prospectus <PAGE> Principal investment strategies The fund invests primarily in stocks of larger, well-established companies domiciled outside the United States, including in developing countries. The fund currently intends to invest at least 90% of its assets in securities of issuers domiciled outside the United States and whose securities are primarily listed on exchanges outside the United States. The fund therefore expects to be invested in numerous countries outside the United States. The fund is designed for investors seeking both capital appreciation and income. In pursuing its objective, the fund will focus on stocks of companies with strong earnings that pay dividends. We believe that these stocks will be more resistant to market declines than stocks of companies that do not pay dividends. The fund relies on the professional judgment of its investment adviser to make decisions about the fund's portfolio investments. The basic investment philosophy of the investment adviser is to seek to invest in attractively valued companies that, in its opinion, represent above-average, long-term investment opportunities. The investment adviser believes that an important way to accomplish this is through fundamental analysis, which may include meeting with company executives and employees, suppliers, customers and competitors. Securities may be sold when the investment adviser believes that they no longer represent relatively attractive investment opportunities. The investment adviser uses a system of multiple portfolio counselors in managing the fund's assets. Under this approach, the portfolio of the fund is divided into segments managed by individual counselors who decide how their respective segments will be invested. Principal risks YOU MAY LOSE MONEY BY INVESTING IN THE FUND. THE LIKELIHOOD OF LOSS MAY BE GREATER IF YOU INVEST FOR A SHORTER PERIOD OF TIME. Investors in the fund should have a long-term perspective and, for example, be able to tolerate potentially sharp declines in value. The prices of, and the income generated by, the common stocks and other securities held by the fund may decline in response to certain events taking place around the world, including those directly involving the issuers whose securities are owned by the fund; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; governmental or governmental agency responses to economic conditions; and currency, interest rate and commodity price fluctuations. 3 International Growth and Income Fund / Prospectus <PAGE> Investments in securities issued by entities based outside the United States may also be affected by currency controls; different accounting, auditing, financial reporting, disclosure, and regulatory and legal standards and practices; expropriation; changes in tax policy; greater market volatility; different securities market structures; higher transaction costs; and various administrative difficulties, such as delays in clearing and settling portfolio transactions or in receiving payment of dividends. These risks may be heightened in connection with investments in developing countries. Investments in securities issued by entities domiciled in the United States may also be subject to many of these risks. Your investment in the fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency, entity or person. Investment results The bar chart below shows how the fund's investment results have varied from year to year, and the table on page 5 shows how the fund's average annual total returns for various periods compare with different broad measures of market performance. This information provides some indication of the risks of investing in the fund. Past results (before and after taxes) are not predictive of future results. Updated information on the fund's results can be obtained by visiting americanfunds.com. CALENDAR YEAR TOTAL RETURNS FOR CLASS A SHARES (Results do not include a sales charge; if a sales charge were included, results would be lower.) [begin bar chart] 2009 35.29% [end bar chart] Highest/Lowest quarterly results during this time period were: HIGHEST 18.84% (quarter ended September 30, 2009) LOWEST -6.95% (quarter ended March 31, 2009) 4 International Growth and Income Fund / Prospectus <PAGE> AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED DECEMBER 31, 2009 (WITH MAXIMUM SALES CHARGE): SHARE CLASS INCEPTION DATE 1 YEAR LIFETIME ------------------------------------------------------------------------------- A - Before taxes 10/1/2008 27.51% 13.42% - After taxes on distributions 26.52 12.71 - After taxes on distributions and sale of fund shares 18.50 11.16SHARE CLASS (before taxes) INCEPTION DATE 1 YEAR LIFETIME ------------------------------------------------------------------ B 10/1/2008 29.33% 15.01% ------------------------------------------------------------------ C 10/1/2008 33.24 18.04 ------------------------------------------------------------------ F-1 10/1/2008 35.29 18.95 ------------------------------------------------------------------ F-2 10/1/2008 35.65 19.27 ------------------------------------------------------------------ 529-A 10/1/2008 27.38 13.30 ------------------------------------------------------------------ 529-B 10/1/2008 29.16 14.85 ------------------------------------------------------------------ 529-C 10/1/2008 33.15 17.93 ------------------------------------------------------------------ 529-E 10/1/2008 34.88 18.56 ------------------------------------------------------------------ 529-F-1 10/1/2008 35.51 19.17 INDEXES/1/ 1 YEAR LIFETIME/2/ ------------------------------------------------------------------------------- MSCI World ex USA Index (reflects no deductions for fees, expenses 34.39% 4.09% or taxes) Lipper International Funds Index (reflects no 35.30 5.45 deductions for fees or taxes) ------------------------------------------------------------------------------- Class A annualized 30-day yield at December 31, 2009: 2.59% (For current yield information, please call American FundsLine/(R)/ at 800/325-3590.) 1 MSCI World ex USA Index reflects the market sectors and securities in which the fund primarily invests. Lipper International Funds Index includes mutual funds that disclose investment objectives reasonably comparable to those of the fund. See page 9 of this prospectus for more information on the indexes listed above. 2 Lifetime results for the index(es) shown are measured from the date Class A shares were first sold. After-tax returns are shown only for Class A shares; after-tax returns for other share classes will vary. After-tax returns are calculated using the highest individual federal income tax rates in effect during each year of the periods shown and do not reflect the impact of state and local taxes. Your actual after-tax returns depend on your individual tax situation and likely will differ from the results shown above. In addition, after-tax returns are not relevant if you hold your fund shares through a tax-deferred arrangement, such as a 401(k) plan, individual retirement account (IRA) or 529 college savings plan. 5 International Growth and Income Fund / Prospectus <PAGE>Management INVESTMENT ADVISER Capital Research and Management Company, the investment adviser to the fund, uses a system of multiple portfolio counselors in managing mutual fund assets. PORTFOLIO COUNSELORS The primary individual portfolio counselors for the fund are: PORTFOLIO COUNSELOR PRIMARY TITLE PORTFOLIO COUNSELOR/ EXPERIENCE WITH INVESTMENT ADVISER FUND TITLE (if applicable) IN THIS FUND (or one of its divisions) ------------------------------------------------------------------------------ STEVEN T. WATSON 1 year Senior Vice President - Vice Chairman of the Board (since the fund's Capital World Investors inception) ------------------------------------------------------------------------------ CARL M. KAWAJA 1 year Senior Vice President - President (since the fund's Capital World Investors inception) ------------------------------------------------------------------------------ ANDREW B. SUZMAN 1 year Senior Vice President - Senior Vice President (since the fund's Capital World Investors inception) ------------------------------------------------------------------------------ Purchase and sale of fund sharesPURCHASE MINIMUMS (for all share classes) ------------------------------------------------------------------------------ TO ESTABLISH AN ACCOUNT (including retirement plan and 529 accounts) $250 For a payroll deduction retirement plan account, payroll deduction 25 savings plan account or employer-sponsored 529 account TO ADD TO AN ACCOUNT 50 For a payroll deduction retirement plan account, payroll deduction 25 savings plan account or employer-sponsored 529 account ------------------------------------------------------------------------------ You may sell (redeem) shares through your dealer or financial adviser or by writing to American Funds Service Company at P.O. Box 6007, Indianapolis, Indiana 46206-6007; telephoning American Funds Service Company at 800/421-0180; faxing American Funds Service Company at 317/735-6636; or accessing our website at americanfunds.com. 6 International Growth and Income Fund / Prospectus <PAGE> Tax information Dividends and capital gain distributions you receive from the fund are subject to federal income taxes and may also be subject to state and local taxes. Payments to broker-dealers and other financial intermediaries If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and the fund's distributor or its affiliates may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your individual financial adviser to recommend the fund over another investment. Ask your individual financial adviser or visit your financial intermediary's website for more information. 7 International Growth and Income Fund / Prospectus <PAGE> Investment objective, strategies and risks The fund's investment objective is to provide you with long-term growth of capital while providing current income. The fund will pursue this objective by investing primarily in stocks of larger, well-established companies domiciled outside the United States, including developing countries. The fund currently intends to invest at least 90% of its assets in securities of issuers domiciled outside the United States and whose securities are primarily listed on exchanges outside the United States. The fund therefore expects to be invested in numerous countries outside the United States. The fund is designed for investors seeking both capital appreciation and income. In pursuing its objective, the fund will focus on stocks of companies with strong earnings that pay dividends. We believe that these stocks will be more resistant to market declines than stocks of companies that do not pay dividends. Investors in the fund should have a long-term perspective and, for example, be able to tolerate potentially sharp declines in value. Your investment in the fund is subject to various risks. Consequently, the fund's income may decline and/or its portfolio holdings may lose value. Declines in dividends paid to the fund and in the values of certain stocks held by the fund could be in response to economic, political and/or social events taking place around the world. For example, increases in the prices of basic commodities, such as oil and grains, can negatively impact the values of certain companies. Further, changes in relationships among global currencies may trigger declines in the value of the fund's income and/or holdings. Investing in securities issued by entities based outside the United States may also be affected by currency controls, different accounting and legal standards, expropriation, tax policies, greater market volatility and various administrative difficulties. These risks may be heightened in connection with investments in developing countries. The fund's investment results will depend on the ability of the fund's investment adviser to navigate these risks. The fund may also hold cash or money market instruments. The percentage of the fund invested in such holdings varies and depends on various factors, including market conditions and purchases and redemptions of fund shares. For temporary defensive purposes, the fund may hold a significant portion of its assets in such securities. The investment adviser may determine that it is appropriate to take such action in response to certain circumstances, such as periods of market turmoil. A larger percentage of such holdings could limit the fund's ability to achieve its investment objective in a period of rising market prices. A larger percentage of cash or money market instruments could reduce the magnitude of the fund's loss in a period of falling market prices and provide liquidity to make additional investments or to meet redemptions. You should consider how this fund fits into your overall investment program. In addition to the principal investment strategies described above, the fund has other investment practices that are described in the statement of additional information. 8 International Growth and Income Fund / Prospectus <PAGE> Additional investment results Unlike the table on page 5, the table below reflects the fund's results calculated without sales charges. AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED DECEMBER 31, 2009 (WITHOUT SALES CHARGE): SHARE CLASS INCEPTION DATE 1 YEAR LIFETIME ------------------------------------------------------------------------------- A - Before taxes 10/1/2008 35.29% 18.95% - After taxes on distributions 34.26 18.20 - After taxes on distributions and sale of fund shares 23.60 15.86SHARE CLASS (before taxes) INCEPTION DATE 1 YEAR LIFETIME ----------------------------------------------------------------- B 10/1/2008 34.33% 18.09% ----------------------------------------------------------------- C 10/1/2008 34.24 18.04 ----------------------------------------------------------------- F-1 10/1/2008 35.29 18.95 ----------------------------------------------------------------- F-2 10/1/2008 35.65 19.27 ----------------------------------------------------------------- 529-A 10/1/2008 35.16 18.82 ----------------------------------------------------------------- 529-B 10/1/2008 34.16 17.93 ----------------------------------------------------------------- 529-C 10/1/2008 34.15 17.93 ----------------------------------------------------------------- 529-E 10/1/2008 34.88 18.56 ----------------------------------------------------------------- 529-F-1 10/1/2008 35.51 19.17 INDEXES/1/ 1 YEAR LIFETIME/2/ ------------------------------------------------------------------------------- MSCI World ex USA Index (reflects no deductions for fees, expenses 34.39% 4.09% or taxes) Lipper International Funds Index (reflects no 35.30 5.45 deductions for fees or taxes) ------------------------------------------------------------------------------- Class A distribution rate at December 31, 2009: 2.35%/3/ (For current distribution rate information, please call American FundsLine at 800/325-3590.) 1 MSCI World ex USA Index reflects the market sectors and securities in which the fund primarily invests. Lipper International Funds Index includes mutual funds that disclose investment objectives reasonably comparable to those of the fund. 2 Lifetime results for the index(es) shown are measured from the date Class A shares were first sold. 3 Reflects a fee waiver (2.34% without the waiver) as described in the financial highlights table and the statement of additional information. The distribution rate is based on actual dividends paid to Class A shareholders over a 12-month period. Capital gain distributions, if any, are added back to net asset value to determine the rate. The investment results tables above and on page 5 show how the fund's average annual total returns compare with various broad measures of market performance. MSCI World ex USA Index is a free float-adjusted market capitalization weighted index that is designed to measure equity market performance of developed markets, excluding the United States. The index consists of more than 20 developed market country indexes. This index is unmanaged and its results include reinvested dividends and/or distributions, but do not reflect the effect of sales charges, commissions, expenses or taxes. Lipper International Funds Index is an equally weighted index of funds that invest assets in securities with primary trading markets outside the United States. The results of the underlying funds in the index include the reinvestment of dividends and capital gain distributions, as well as 9 International Growth and Income Fund / Prospectus <PAGE> expenses and brokerage commissions paid by the funds for portfolio transactions, but do not reflect the effect of sales charges or taxes. All fund results reflected in the "Investment results" section of this prospectus and this "Additional investment results" section reflect the reinvestment of dividends and capital gain distributions, if any. Unless otherwise noted, fund results reflect any fee waivers and/or expense reimbursements in effect during the period presented. 10 International Growth and Income Fund / Prospectus <PAGE> Management and organizationINVESTMENT ADVISER Capital Research and Management Company, an experienced investment management organization founded in 1931, serves as investment adviser to the fund and other funds, including the American Funds. Capital Research and Management Company is a wholly owned subsidiary of The Capital Group Companies, Inc. and is located at 333 South Hope Street, Los Angeles, California 90071, and 6455 Irvine Center Drive, Irvine, California 92618. Capital Research and Management Company manages the investment portfolio and business affairs of the fund. The total management fee to be paid by the fund for the current fiscal year, as a percentage of average net assets, appears in the Annual Fund Operating Expenses table under "Fees and expenses of the fund." Please see the statement of additional information for further details. A discussion regarding the basis for the approval of the fund's investment advisory and service agreement by the fund's board of trustees is contained in the fund's semi-annual report to shareholders for the fiscal period ended December 31, 2009. Capital Research and Management Company manages equity assets through two investment divisions, Capital World Investors and Capital Research Global Investors, and manages fixed-income assets through its Fixed Income division. Capital World Investors and Capital Research Global Investors make investment decisions on an independent basis. Rather than remain as investment divisions, Capital World Investors and Capital Research Global Investors may be incorporated into wholly owned subsidiaries of Capital Research and Management Company. In that event, Capital Research and Management Company would continue to be the investment adviser, and day-to-day investment management of equity assets would continue to be carried out through one or both of these subsidiaries. Capital Research and Management Company and each of the funds it advises have applied to the Securities and Exchange Commission for an exemptive order that would give Capital Research and Management Company the authority to use, upon approval of the fund's board, its management subsidiaries and affiliates to provide day-to-day investment management services to the fund, including making changes to the management subsidiaries and affiliates providing such services. Although not currently contemplated, Capital Research and Management Company could incorporate its fixed-income division in the future and engage it to provide day-to-day investment management of fixed-income assets. The fund's shareholders approved this arrangement at a meeting of the fund's shareholders on November 24, 2009. There is no assurance that Capital Research and Management Company will incorporate its investment divisions or exercise any authority, if granted, under an exemptive order. 11 International Growth and Income Fund / Prospectus <PAGE> EXECUTION OF PORTFOLIO TRANSACTIONS The investment adviser places orders with broker-dealers for the fund's portfolio transactions. In selecting broker-dealers, the investment adviser strives to obtain "best execution" (the most favorable total price reasonably attainable under the circumstances) for the fund's portfolio transactions, taking into account a variety of factors. Subject to best execution, the investment adviser may consider investment research and/or brokerage services provided to the adviser in placing orders for the fund's portfolio transactions. The investment adviser may place orders for the fund's portfolio transactions with broker-dealers who have sold shares of funds managed by the investment adviser or its affiliated companies; however, it does not give consideration to whether a broker-dealer has sold shares of the funds managed by the investment adviser or its affiliated companies when placing any such orders for the fund's portfolio transactions. A more detailed description of the investment adviser's policies is included in the fund's statement of additional information. PORTFOLIO HOLDINGS Portfolio holdings information for the fund is available on the American Funds website at americanfunds.com. To reach this information, access the fund's detailed information page on the website. A list of the fund's top 10 equity holdings, updated as of each month-end, is generally posted to this page within 14 days after the end of the applicable month. A link to the fund's complete list of publicly disclosed portfolio holdings, updated as of each calendar quarter-end, is generally posted to this page within 45 days after the end of the applicable quarter. Both lists remain available on the website until new information for the next month or quarter is posted. Portfolio holdings information for the fund is also contained in reports filed with the U.S. Securities and Exchange Commission. A description of the fund's policies and procedures regarding disclosure of information about its portfolio holdings is available in the statement of additional information. 12 International Growth and Income Fund / Prospectus <PAGE> MULTIPLE PORTFOLIO COUNSELOR SYSTEM Capital Research and Management Company uses a system of multiple portfolio counselors in managing mutual fund assets. Under this approach, the portfolio of a fund is divided into segments managed by individual counselors who decide how their respective segments will be invested. In addition, Capital Research and Management Company's investment analysts may make investment decisions with respect to a portion of a fund's portfolio. Investment decisions are subject to a fund's objective(s), policies and restrictions and the oversight of the appropriate investment-related committees of Capital Research and Management Company and its investment divisions. The table below shows the investment experience and role in management of the fund for each of the fund's primary portfolio counselors. ROLE IN INVESTMENT EXPERIENCE MANAGEMENT PORTFOLIO COUNSELOR EXPERIENCE IN THIS FUND OF THE FUND ---------------------------------------------------------------------------------------- STEVEN T. WATSON Investment 1 year Serves as an equity professional for 22 (since the fund's portfolio counselor years in total; inception) 20 years with Capital Research and Management Company or affiliate ---------------------------------------------------------------------------------------- CARL M. KAWAJA Investment 1 year Serves as an equity professional for 22 (since the fund's portfolio counselor years in total; inception) 19 years with Capital Research and Management Company or affiliate ---------------------------------------------------------------------------------------- ANDREW B. SUZMAN Investment 1 year Serves as an equity professional for 17 (since the fund's portfolio counselor years in total; all inception) with Capital Research and Management Company or affiliate ---------------------------------------------------------------------------------------- Information regarding the portfolio counselors' compensation, their ownership of securities in the fund and other accounts they manage is in the statement of additional information. 13 International Growth and Income Fund / Prospectus <PAGE> Shareholder information SHAREHOLDER SERVICES American Funds Service Company/(R)/,the fund's transfer agent, offers a wide range of services that you can use to alter your investment program should your needs or circumstances change. These services may be terminated or modified at any time upon 60 days' written notice. AMERICAN FUNDS SERVICE COMPANY SERVICE AREAS Call toll-free from anywhere in the United States (8 a.m. to 8 p.m. ET): 800/421-0180 Access the American Funds website : americanfunds.com [map of the United States]INDIANA VIRGINIA SERVICE CENTER SERVICE CENTER American Funds American Funds Service Company Service Company P.O. Box 6007 P.O. Box 2280 Indianapolis, Indiana Norfolk, Virginia 46206-6007 23501-2280 Fax: 317/735-6636 Fax: 757/670-4761 A MORE DETAILED DESCRIPTION OF POLICIES AND SERVICES IS INCLUDED IN THE FUND'S STATEMENT OF ADDITIONAL INFORMATION AND THE OWNER'S GUIDE SENT TO NEW AMERICAN FUNDS SHAREHOLDERS ENTITLED WELCOME. CLASS 529 SHAREHOLDERS SHOULD ALSO REFER TO THE APPLICABLE PROGRAM DESCRIPTION FOR INFORMATION ON POLICIES AND SERVICES SPECIFICALLY RELATING TO THEIR ACCOUNT(S). These documents are available by writing to or calling American Funds Service Company. Certain privileges and/or services described on the following pages of this prospectus and in the statement of additional information may not be available to you depending on your investment dealer. Please see your financial adviser or investment dealer for more information. 14 International Growth and Income Fund / Prospectus <PAGE> Choosing a share class The fund offers different classes of shares through this prospectus. Class A, C, F-1 and F-2 shares are available through various investment programs or accounts, including certain types of retirement plans (see limitations below). The services or share classes available to you may vary depending upon how you wish to purchase shares of the fund. Unless otherwise noted, references in this prospectus to Class F shares refer to both Class F-1 and F-2 shares. Class B and 529-B shares may no longer be purchased or acquired, except by exchange from Class B or 529-B shares of another fund in the American Funds family. Any investment received by the fund that is intended for Class B or 529-B shares will instead be invested in Class A or 529-A shares and will be subject to any applicable sales charges. Shareholders with investments in Class B and 529-B shares may continue to hold such shares until they convert to Class A or 529-A shares. However, no additional investments will be accepted in Class B or 529-B shares. Dividends and capital gain distributions may continue to be reinvested in Class B or 529-B shares until their conversion dates. In addition, shareholders invested in Class B or 529-B shares will be able to exchange those shares for Class B or 529-B shares of other American Funds offering Class B or 529-B shares until they convert. Investors residing in any state may purchase Class 529 shares through an account established with a 529 college savings plan managed by the American Funds organization. Class 529-A, 529-B, 529-C and 529-F-1 shares are structured similarly to the corresponding Class A, B, C and F-1 shares. For example, the same initial sales charges apply to Class 529-A shares as to Class A shares. Class 529-E shares are available only to investors participating through an eligible employer plan. Each share class represents an investment in the same portfolio of securities, but each class has its own sales charge and expense structure, allowing you to choose the class that best fits your situation. WHEN YOU PURCHASE SHARES OF THE FUND, YOU SHOULD CHOOSE A SHARE CLASS. IF NONE IS CHOSEN, YOUR INVESTMENT WILL BE MADE IN CLASS A SHARES OR, IN THE CASE OF A 529 PLAN INVESTMENT, CLASS 529-A SHARES. Factors you should consider when choosing a class of shares include: . how long you expect to own the shares; . how much you intend to invest; . total expenses associated with owning shares of each class; . whether you qualify for any reduction or waiver of sales charges (for example, Class A or 529-A shares may be a less expensive option over time, particularly if you qualify for a sales charge reduction or waiver); . whether you plan to take any distributions in the near future (for example, the contingent deferred sales charge will not be waived if you sell your Class 529-B or 529-C shares to cover higher education expenses); and 15 International Growth and Income Fund / Prospectus <PAGE> . availability of share classes: -- Class C shares are not available to retirement plans that do not currently invest in such shares and that are eligible to invest in Class R shares, including employer-sponsored retirement plans such as defined benefit plans, 401(k) plans, 457 plans, 403(b) plans, and money purchase pension and profit-sharing plans; and -- Class F and 529-F-1 shares are generally available only to fee-based programs of investment dealers that have special agreements with the fund's distributor and to certain registered investment advisers. EACH INVESTOR'S FINANCIAL CONSIDERATIONS ARE DIFFERENT. YOU SHOULD SPEAK WITH YOUR FINANCIAL ADVISER TO HELP YOU DECIDE WHICH SHARE CLASS IS BEST FOR YOU. UNLESS OTHERWISE NOTED, REFERENCES TO CLASS A, B, C OR F-1 SHARES ON THE FOLLOWING PAGES ALSO REFER TO THE CORRESPONDING CLASS 529-A, 529-B, 529-C OR 529-F-1 SHARES. 16 International Growth and Income Fund / Prospectus <PAGE>SUMMARY OF THE PRIMARY DIFFERENCES AMONG SHARE CLASSES CLASS A SHARES Initial sales charge up to 5.75% (reduced for purchases of $25,000 or more and eliminated for purchases of $1 million or more) Contingent deferred none (except that a charge of 1.00% applies to certain sales charge redemptions made within one year following purchases of $1 million or more without an initial sales charge) 12b-1 fees up to .30% annually (for Class 529-A shares, may not exceed .50% annually) Dividends generally higher than other classes due to lower annual expenses, but may be lower than Class F-1 shares, depending on relative expenses, and lower than Class F-2 shares due to 12b-1 fees Purchase maximum none Conversion none CLASS B SHARES Initial sales charge none Contingent deferred starts at 5.00%, declining to 0% six years after sales charge purchase 12b-1 fees up to 1.00% annually Dividends generally lower than Class A and F shares due to higher 12b-1 fees and other expenses, but higher than Class C shares due to lower other expenses Purchase maximum Class B shares may not be purchased or acquired except by exchange from Class B shares of other American Funds Conversion automatic conversion to Class A or 529-A shares in the month of the eight-year anniversary of the purchase date, reducing future annual expenses CLASS C SHARES Initial sales charge none Contingent deferred 1.00% if shares are sold within one year after sales charge purchase 12b-1 fees up to 1.00% annually Dividends generally lower than other classes due to higher 12b-1 fees and other expenses Purchase maximum see the discussion regarding purchase minimums and maximums in "Purchase and exchange of shares" Conversion automatic conversion to Class F-1 shares in the month of the 10-year anniversary of the purchase date, reducing future annual expenses (Class 529-C shares will not convert to Class 529-F-1 shares) CLASS 529-E SHARES Initial sales charge none Contingent deferred none sales charge 12b-1 fees currently up to .50% annually (may not exceed .75% annually) Dividends generally higher than Class 529-B and 529-C shares due to lower 12b-1 fees, but lower than Class 529-A and 529-F-1 shares due to higher 12b-1 fees Purchase maximum none Conversion none CLASS F-1 SHARES Initial sales charge none Contingent deferred none sales charge 12b-1 fees currently up to .25% annually (may not exceed .50% annually) Dividends generally higher than Class B and C shares due to lower 12b-1 fees, but may be higher than Class A shares, depending on relative expenses, and lower than Class F-2 shares due to 12b-1 fees Purchase maximum none Conversion none CLASS F-2 SHARES Initial sales charge none Contingent deferred none sales charge 12b-1 fees none Dividends generally higher than other classes due to absence of 12b-1 fees Purchase maximum none Conversion none 17 International Growth and Income Fund / Prospectus <PAGE>FUND EXPENSES In periods of market volatility, assets of the fund may decline significantly, causing total annual fund operating expenses (as a percentage of the value of your investment) to become higher than the numbers shown in the Annual Fund Operating Expenses table in this prospectus. The "Other expenses" items in the table on page 1 include custodial, legal, transfer agent and subtransfer agent/recordkeeping payments and various other expenses. Subtransfer agent/recordkeeping payments may be made to third parties (including affiliates of the fund's investment adviser) that provide subtransfer agent, recordkeeping and/or shareholder services with respect to certain shareholder accounts in lieu of the transfer agent providing such services. The amount paid for subtransfer agent/recordkeeping services varies depending on the share class and services provided and typically ranges from $3 to $19 per account. For Class 529 shares, an expense of up to a maximum of .10% (paid to a state or states for oversight and administrative services) is included as an "Other expenses" item. 18 International Growth and Income Fund / Prospectus <PAGE> Purchase, exchange and sale of shares THE FUND'S TRANSFER AGENT, ON BEHALF OF THE FUND AND AMERICAN FUNDS DISTRIBUTORS,/(R)/ THE FUND'S DISTRIBUTOR, IS REQUIRED BY LAW TO OBTAIN CERTAIN PERSONAL INFORMATION FROM YOU OR ANY OTHER PERSON(S) ACTING ON YOUR BEHALF IN ORDER TO VERIFY YOUR OR SUCH PERSON'S IDENTITY. IF YOU DO NOT PROVIDE THE INFORMATION, THE TRANSFER AGENT MAY NOT BE ABLE TO OPEN YOUR ACCOUNT. IF THE TRANSFER AGENT IS UNABLE TO VERIFY YOUR IDENTITY OR THAT OF ANY OTHER PERSON(S) AUTHORIZED TO ACT ON YOUR BEHALF, OR BELIEVES IT HAS IDENTIFIED POTENTIALLY CRIMINAL ACTIVITY, THE FUND AND AMERICAN FUNDS DISTRIBUTORS RESERVE THE RIGHT TO CLOSE YOUR ACCOUNT OR TAKE SUCH OTHER ACTION THEY DEEM REASONABLE OR REQUIRED BY LAW. When purchasing shares, you should designate the fund or funds in which you wish to invest. If no fund is designated and the amount of your cash investment is more than $5,000, your money will be held uninvested (without liability to the transfer agent for loss of income or appreciation pending receipt of proper instructions) until investment instructions are received, but for no more than three business days. Your investment will be made at the net asset value (plus any applicable sales charge in the case of Class A shares) next determined after investment instructions are received and accepted by the transfer agent. If investment instructions are not received, your money will be invested in Class A shares of American Funds Money Market Fund/SM/ on the third business day after receipt of your investment. If no fund is designated and the amount of your cash investment is $5,000 or less, your money will be invested in the same proportion and in the same fund or funds in which your last cash investment (excluding exchanges) was made, provided that such investment was made within the last 16 months. If no investment was made within the last 16 months, your money will be held uninvested (without liability to the transfer agent for loss of income or appreciation pending receipt of proper instructions) until investment instructions are received, but for no more than three business days. Your investment will be made at the net asset value (plus any applicable sales charge in the case of Class A shares) next determined after investment instructions are received and accepted by the transfer agent. If investment instructions are not received, your money will be invested in Class A shares of American Funds Money Market Fund on the third business day after receipt of your investment. PURCHASE OF CLASS A AND C SHARES You may generally open an account and purchase Class A and C shares by contacting any financial adviser (who may impose transaction charges in addition to those described in this prospectus) authorized to sell the fund's shares. You may purchase additional shares in various ways, including through your financial adviser and by mail, telephone, the Internet and bank wire. 19 International Growth and Income Fund / Prospectus <PAGE> PURCHASE OF CLASS F SHARES You may generally open an account and purchase Class F shares only through fee-based programs of investment dealers that have special agreements with the fund's distributor and through certain registered investment advisers. These dealers and advisers typically charge ongoing fees for services they provide. Intermediary fees are not paid by the fund and normally range from .75% to 1.50% of assets annually, depending on the services offered. PURCHASE OF CLASS 529 SHARES Class 529 shares may be purchased only through an account established with a 529 college savings plan managed by the American Funds organization. You may open this type of account and purchase Class 529 shares by contacting any financial adviser (who may impose transaction charges in addition to those described in this prospectus) authorized to sell such an account. You may purchase additional shares in various ways, including through your financial adviser and by mail, telephone, the Internet and bank wire. Class 529-E shares may be purchased only by employees participating through an eligible employer plan. Accounts holding Class 529 shares are subject to a $10 account setup fee and an annual $10 account maintenance fee. EXCHANGE Generally, you may exchange your shares into shares of the same class of other American Funds without a sales charge. Class A, C or F-1 shares may generally be exchanged into the corresponding 529 share class without a sales charge. Class B shares may not be exchanged into Class 529-B shares. EXCHANGES FROM CLASS A, C OR F-1 SHARES TO THE CORRESPONDING 529 SHARE CLASS, PARTICULARLY IN THE CASE OF UNIFORM GIFTS TO MINORS ACT OR UNIFORM TRANSFERS TO MINORS ACT CUSTODIAL ACCOUNTS, MAY RESULT IN SIGNIFICANT LEGAL AND TAX CONSEQUENCES, AS DESCRIBED IN THE APPLICABLE PROGRAM DESCRIPTION. PLEASE CONSULT YOUR FINANCIAL ADVISER BEFORE MAKING SUCH AN EXCHANGE. Exchanges of shares from American Funds Money Market Fund initially purchased without a sales charge generally will be subject to the appropriate sales charge. For purposes of computing the contingent deferred sales charge on Class B and C shares, the length of time you have owned your shares will be measured from the date of original purchase and will not be affected by any permitted exchange. Exchanges have the same tax consequences as ordinary sales and purchases. For example, to the extent you exchange shares held in a taxable account that are worth more now than what you paid for them, the gain will be subject to taxation. See "Transactions by 20 International Growth and Income Fund / Prospectus <PAGE> telephone, fax or the Internet" in this prospectus for information regarding electronic exchanges. FREQUENT TRADING OF FUND SHARES The fund and American Funds Distributors reserve the right to reject any purchase order for any reason. The fund is not designed to serve as a vehicle for frequent trading. Frequent trading of fund shares may lead to increased costs to the fund and less efficient management of the fund's portfolio, potentially resulting in dilution of the value of the shares held by long-term shareholders. Accordingly, purchases, including those that are part of exchange activity that the fund or American Funds Distributors has determined could involve actual or potential harm to the fund, may be rejected. The fund, through its transfer agent, American Funds Service Company, maintains surveillance procedures that are designed to detect frequent trading in fund shares. Under these procedures, various analytics are used to evaluate factors that may be indicative of frequent trading. For example, transactions in fund shares that exceed certain monetary thresholds may be scrutinized. American Funds Service Company also may review transactions that occur close in time to other transactions in the same account or in multiple accounts under common ownership or influence. Trading activity that is identified through these procedures or as a result of any other information available to the fund will be evaluated to determine whether such activity might constitute frequent trading. These procedures may be modified from time to time as appropriate to improve the detection of frequent trading, to facilitate monitoring for frequent trading in particular retirement plans or other accounts, and to comply with applicable laws. In addition to the fund's broad ability to restrict potentially harmful trading as described above, the fund's board of trustees has adopted a "purchase blocking policy" under which any shareholder redeeming shares having a value of $5,000 or more from the fund will be precluded from investing in the fund for 30 calendar days after the redemption transaction. This policy also applies to redemptions and purchases that are part of exchange transactions. Under the fund's purchase blocking policy, certain purchases will not be prevented and certain redemptions will not trigger a purchase block, such as purchases and redemptions of shares having a value of less than $5,000; transactions in Class 529 shares; purchases and redemptions resulting from reallocations by American Funds Target Date Retirement Series/(R)/; retirement plan contributions, loans and distributions (including hardship withdrawals) identified as such on the retirement plan recordkeeper's system; purchase transactions involving transfers of assets, rollovers, Roth IRA conversions and IRA recharacterizations, where the entity maintaining the shareholder account is able to identify the transaction as one of these types of transactions; and systematic redemptions and purchases, where the entity maintaining the shareholder account is able to identify the transaction as a systematic redemption or purchase. Generally, purchases and redemptions will not be considered "systematic" unless the transaction is pre-scheduled for a specific date. 21 International Growth and Income Fund / Prospectus <PAGE> The fund reserves the right to waive the purchase blocking policy with respect to specific shareholder accounts in those instances where American Funds Service Company determines that its surveillance procedures are adequate to detect frequent trading in fund shares. American Funds Service Company will work with certain intermediaries (such as investment dealers holding shareholder accounts in street name, retirement plan recordkeepers, insurance company separate accounts and bank trust companies) to apply their own procedures, provided that American Funds Service Company believes the intermediary's procedures are reasonably designed to enforce the frequent trading policies of the fund. You should refer to disclosures provided by the intermediaries with which you have an account to determine the specific trading restrictions that apply to you. If American Funds Service Company identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary and request that the intermediary either provide information regarding an account owner's transactions or restrict the account owner's trading. If American Funds Service Company is not satisfied that the intermediary has taken appropriate action, American Funds Service Company may terminate the intermediary's ability to transact in fund shares. There is no guarantee that all instances of frequent trading in fund shares will be prevented. NOTWITHSTANDING THE FUND'S SURVEILLANCE PROCEDURES AND PURCHASE BLOCKING POLICY, ALL TRANSACTIONS IN FUND SHARES REMAIN SUBJECT TO THE RIGHT OF THE FUND AND AMERICAN FUNDS DISTRIBUTORS TO RESTRICT POTENTIALLY ABUSIVE TRADING GENERALLY (INCLUDING THE TYPES OF TRANSACTIONS DESCRIBED ABOVE THAT WILL NOT BE PREVENTED OR TRIGGER A BLOCK UNDER THE PURCHASE BLOCKING POLICY). SEE THE STATEMENT OF ADDITIONAL INFORMATION FOR MORE INFORMATION ABOUT HOW AMERICAN FUNDS SERVICE COMPANY MAY ADDRESS OTHER POTENTIALLY ABUSIVE TRADING ACTIVITY IN THE AMERICAN FUNDS. PURCHASE MINIMUMS AND MAXIMUMS The purchase minimums described on the table on page 6 may be waived in certain cases. See the statement of additional information for details. For accounts established with an automatic investment plan, the initial purchase minimum of $250 may be waived if the purchases (including purchases through exchanges from another fund) made under the plan are sufficient to reach $250 within five months of account establishment. The effective purchase maximums for Class 529-A, 529-C, 529-E and 529-F-1 shares will reflect the maximum applicable contribution limits under state law. See the applicable program description for more information. 22 International Growth and Income Fund / Prospectus <PAGE> The purchase maximum for Class C shares is $500,000 per transaction. In addition, if you have significant American Funds holdings, you may not be eligible to invest in Class C or 529-C shares. Specifically, you may not purchase Class C or 529-C shares if you are eligible to purchase Class A or 529-A shares at the $1 million or more sales charge discount rate (that is, at net asset value). See "Sales charge reductions and waivers" in this prospectus and the statement of additional information for more information regarding sales charge discounts. VALUING SHARES The net asset value of each share class of the fund is the value of a single share. The fund calculates the net asset value each day the New York Stock Exchange is open for trading as of approximately 4 p.m. New York time, the normal close of regular trading. Assets are valued primarily on the basis of market quotations. However, the fund has adopted procedures for making "fair value" determinations if market quotations are not readily available or are not considered reliable. For example, if events occur between the close of markets outside the United States and the close of regular trading on the New York Stock Exchange that, in the opinion of the investment adviser, materially affect the value of any of the fund's securities that principally trade in those international markets, those securities will be valued in accordance with fair value procedures. Use of these procedures is intended to result in more appropriate net asset values. In addition, such use will reduce, if not eliminate, potential arbitrage opportunities otherwise available to short-term investors. Because the fund may hold securities that are primarily listed on foreign exchanges that trade on weekends or days when the fund does not price its shares, the values of securities held in the fund may change on days when you will not be able to purchase or redeem fund shares. Your shares will be purchased at the net asset value (plus any applicable sales charge in the case of Class A shares) or sold at the net asset value next determined after American Funds Service Company receives your request, provided that your request contains all information and legal documentation necessary to process the transaction. A contingent deferred sales charge may apply at the time you sell certain Class A, B and C shares. MOVING BETWEEN SHARE CLASSES AND ACCOUNTS Please see the statement of additional information for details and limitations on moving investments in certain share classes to different share classes and on moving investments held in certain accounts to different accounts. 23 International Growth and Income Fund / Prospectus <PAGE> Sales charges CLASS A SHARES The initial sales charge you pay each time you buy Class A shares differs depending upon the amount you invest and may be reduced or eliminated for larger purchases as indicated below. The "offering price," the price you pay to buy shares, includes any applicable sales charge, which will be deducted directly from your investment. Shares acquired through reinvestment of dividends or capital gain distributions are not subject to an initial sales charge. SALES CHARGE AS A PERCENTAGE OF: DEALER NET COMMISSION OFFERING AMOUNT AS A PERCENTAGE INVESTMENT PRICE INVESTED OF OFFERING PRICE ------------------------------------------------------------------------------ Less than $25,000 5.75% 6.10% 5.00% ------------------------------------------------------------------------------ $25,000 but less than $50,000 5.00 5.26 4.25 ------------------------------------------------------------------------------ $50,000 but less than $100,000 4.50 4.71 3.75 ------------------------------------------------------------------------------ $100,000 but less than $250,000 3.50 3.63 2.75 ------------------------------------------------------------------------------ $250,000 but less than $500,000 2.50 2.56 2.00 ------------------------------------------------------------------------------ $500,000 but less than $750,000 2.00 2.04 1.60 ------------------------------------------------------------------------------ $750,000 but less than $1 million 1.50 1.52 1.20 ------------------------------------------------------------------------------ $1 million or more and certain other none none see below investments described below ------------------------------------------------------------------------------ The sales charge, expressed as a percentage of the offering price or the net amount invested, may be higher or lower than the percentages described in the table above due to rounding. This is because the dollar amount of the sales charge is determined by subtracting the net asset value of the shares purchased from the offering price, which is calculated to two decimal places using standard rounding criteria. The impact of rounding will vary with the size of the investment and the net asset value of the shares. Similarly, any contingent deferred sales charge paid by you on investments in Class A shares may be higher or lower than the 1% charge described below due to rounding. EXCEPT AS PROVIDED BELOW, INVESTMENTS IN CLASS A SHARES OF $1 MILLION OR MORE MAY BE SUBJECT TO A 1% CONTINGENT DEFERRED SALES CHARGE IF THE SHARES ARE SOLD WITHIN ONE YEAR OF PURCHASE. The contingent deferred sales charge is based on the original purchase cost or the current market value of the shares being sold, whichever is less. 24 International Growth and Income Fund / Prospectus <PAGE> CLASS A SHARE PURCHASES NOT SUBJECT TO SALES CHARGES The following investments are not subject to any initial or contingent deferred sales charge if American Funds Service Company is properly notified of the nature of the investment: . investments in Class A shares made by endowments or foundations with $50 million or more in assets; . investments made by accounts that are part of certain qualified fee-based programs and that purchased Class A shares before the discontinuation of your investment dealer's load-waived Class A share program with the American Funds; and . certain rollover investments from retirement plans to IRAs (see "Rollovers from retirement plans to IRAs" in this prospectus for more information). The distributor may pay dealers up to 1% on investments made in Class A shares with no initial sales charge. The fund may reimburse the distributor for these payments through its plans of distribution (see "Plans of distribution" in this prospectus). Transfers from certain 529 plans to plans managed by the American Funds organization will be made with no sales charge. No commission will be paid to the dealer on such a transfer. Please see the statement of additional information for more information. Certain other investors may qualify to purchase shares without a sales charge, such as employees of investment dealers and registered investment advisers authorized to sell American Funds and employees of The Capital Group Companies, Inc. Please see the statement of additional information for more information. EMPLOYER-SPONSORED RETIREMENT PLANS Many employer-sponsored retirement plans are eligible to purchase Class R shares. Such eligible plans and Class R shares are described in more detail in the fund's retirement plan prospectus. Employer-sponsored retirement plans that are eligible to purchase Class R shares may instead purchase Class A shares and pay the applicable Class A sales charge, provided that their recordkeepers can properly apply a sales charge on plan investments. These plans are not eligible to make initial purchases of $1 million or more in Class A shares and thereby invest in Class A shares without a sales charge, nor are they eligible to establish a statement of intention that qualifies them to purchase Class A shares without a sales charge. More information about statements of intention can be found under "Sales charge reductions and waivers" in this prospectus. Plans investing in Class A shares with a sales charge may purchase additional Class A shares in accordance with the sales charge table in this prospectus. Employer-sponsored retirement plans that invested in Class A shares without any sales charge before April 1, 2004, and that continue to meet the eligibility requirements in effect as of that date for purchasing Class A shares at net asset value, may continue to purchase Class A shares without any initial or contingent deferred sales charge. 25 International Growth and Income Fund / Prospectus <PAGE> A 403(b) plan may not invest in Class A or C shares unless it was invested in Class A or C shares prior to January 1, 2009. CLASS B AND C SHARES For Class B shares, a contingent deferred sales charge may be applied to shares you sell within six years of purchase, as shown in the table below. The contingent deferred sales charge is eliminated six years after purchase. CONTINGENT DEFERRED SALES CHARGE ON CLASS B SHARES YEAR OF REDEMPTION: 1 2 3 4 5 6 7+ ---------------------------------------------------------------------- CONTINGENT DEFERRED SALES CHARGE: 5% 4% 4% 3% 2% 1% 0% Class C shares are sold without any initial sales charge. American Funds Distributors pays 1% of the amount invested to dealers who sell Class C shares. A contingent deferred sales charge of 1% applies if Class C shares are sold within one year of purchase. The contingent deferred sales charge is eliminated one year after purchase. Any contingent deferred sales charge paid by you on redemptions of Class B or C shares, expressed as a percentage of the applicable redemption amount, may be higher or lower than the percentages described above due to rounding. Shares acquired through reinvestment of dividends or capital gain distributions are not subject to a contingent deferred sales charge. In addition, the contingent deferred sales charge may be waived in certain circumstances. See "Contingent deferred sales charge waivers" in this prospectus. The contingent deferred sales charge is based on the original purchase cost or the current market value of the shares being sold, whichever is less. For purposes of determining the contingent deferred sales charge, if you sell only some of your shares, shares that are not subject to any contingent deferred sales charge will be sold first, followed by shares that you have owned the longest. See "Plans of distribution" in this prospectus for ongoing compensation paid to your dealer or financial adviser for all share classes. AUTOMATIC CONVERSION OF CLASS B AND C SHARES Class B shares automatically convert to Class A shares in the month of the eight-year anniversary of the purchase date. Class C shares automatically convert to Class F-1 shares in the month of the 10-year anniversary of the purchase date; however, Class 529-C shares will not convert to Class 529-F-1 shares. The Internal Revenue Service currently takes the position that these automatic conversions are not taxable. Should its position change, the automatic conversion feature may be suspended. If this happens, you would have the option of converting your Class B, 529-B or C shares to the respective share classes at the anniversary dates described above. This exchange would be based on the relative net asset values of the two classes in question, without the imposition of a sales charge or fee, but you might face certain tax consequences as a result. 26 International Growth and Income Fund / Prospectus <PAGE> CLASS 529-E AND CLASS F SHARES Class 529-E and Class F shares are sold without any initial or contingent deferred sales charge. Sales charge reductions and waivers TO RECEIVE A REDUCTION IN YOUR CLASS A INITIAL SALES CHARGE, YOU MUST LET YOUR FINANCIAL ADVISER OR AMERICAN FUNDS SERVICE COMPANY KNOW AT THE TIME YOU PURCHASE SHARES THAT YOU QUALIFY FOR SUCH A REDUCTION. IF YOU DO NOT LET YOUR ADVISER OR AMERICAN FUNDS SERVICE COMPANY KNOW THAT YOU ARE ELIGIBLE FOR A REDUCTION, YOU MAY NOT RECEIVE A SALES CHARGE DISCOUNT TO WHICH YOU ARE OTHERWISE ENTITLED. In order to determine your eligibility to receive a sales charge discount, it may be necessary for you to provide your adviser or American Funds Service Company with information and records (including account statements) of all relevant accounts invested in the American Funds. IN ADDITION TO THE INFORMATION IN THIS PROSPECTUS, YOU MAY OBTAIN MORE INFORMATION ABOUT SHARE CLASSES, SALES CHARGES AND SALES CHARGE REDUCTIONS AND WAIVERS THROUGH A LINK ON THE HOME PAGE OF THE AMERICAN FUNDS WEBSITE AT AMERICANFUNDS.COM, FROM THE STATEMENT OF ADDITIONAL INFORMATION OR FROM YOUR FINANCIAL ADVISER. REDUCING YOUR CLASS A INITIAL SALES CHARGE Consistent with the policies described in this prospectus, you and your "immediate family" (your spouse -- or equivalent if recognized under local law -- and your children under the age of 21) may combine all of your American Funds investments to reduce your Class A sales charge. Certain investments in the American Funds Target Date Retirement Series may also be combined for this purpose. Please see the American Funds Target Date Retirement Series prospectus for further information. However, for this purpose, investments representing direct purchases of American Funds Money Market Fund are excluded. Following are different ways that you may qualify for a reduced Class A sales charge: AGGREGATING ACCOUNTS To receive a reduced Class A sales charge, investments made by you and your immediate family (see above) may be aggregated if made for your own account(s) and/or certain other accounts, such as: .trust accounts established by the above individuals (please see the statement of additional information for details regarding aggregation of trust accounts where the person(s) who established the trust is/are deceased); . solely controlled business accounts; and . single-participant retirement plans. 27 International Growth and Income Fund / Prospectus <PAGE> CONCURRENT PURCHASES You may combine simultaneous purchases (including, upon your request, purchases for gifts) of any class of shares of two or more American Funds (excluding American Funds Money Market Fund) to qualify for a reduced Class A sales charge. RIGHTS OF ACCUMULATION You may take into account your accumulated holdings in all share classes of the American Funds (excluding American Funds Money Market Fund) to determine the initial sales charge you pay on each purchase of Class A shares. Subject to your investment dealer's capabilities, your accumulated holdings will be calculated as the higher of (a) the current value of your existing holdings (as of the day prior to your additional American Funds investment) or (b) the amount you invested (including reinvested dividends and capital gains, but excluding capital appreciation) less any withdrawals. Please see the statement of additional information for further details. You should retain any records necessary to substantiate the historical amounts you have invested. If you make a gift of shares, upon your request you may purchase the shares at the sales charge discount allowed under rights of accumulation of all of your American Funds accounts. STATEMENT OF INTENTION You may reduce your Class A sales charge by establishing a statement of intention. A statement of intention allows you to combine all purchases of all share classes of the American Funds (excluding American Funds Money Market Fund) you intend to make over a 13-month period to determine the applicable sales charge; however, purchases made under a right of reinvestment, appreciation of your holdings, and reinvested dividends and capital gains do not count as purchases made during the statement period. The market value of your existing holdings eligible to be aggregated as of the day immediately before the start of the statement period may be credited toward satisfying the statement. A portion of your account may be held in escrow to cover additional Class A sales charges that may be due if your total purchases over the statement period do not qualify you for the applicable sales charge reduction. Employer-sponsored retirement plans may be restricted from establishing statements of intention. See "Sales charges" in this prospectus for more information. 28 International Growth and Income Fund / Prospectus <PAGE> RIGHT OF REINVESTMENT If you notify American Funds Service Company, you may reinvest proceeds from a redemption, dividend payment or capital gain distribution without a sales charge in the same fund or other American Funds, provided that the reinvestment occurs within 90 days after the date of the redemption or distribution and is made into the same account from which you redeemed the shares or received the distribution. If the account has been closed, you may reinvest without a sales charge if the new receiving account has the same registration as the closed account. Proceeds from a Class B share redemption for which a contingent deferred sales charge was paid will be reinvested in Class A shares without any initial sales charge. If you redeem Class B shares without paying a contingent deferred sales charge, you may reinvest the proceeds in Class B shares or purchase Class A shares; if you purchase Class A shares, you are responsible for paying any applicable Class A sales charges. Proceeds from any other type of redemption and all dividend payments and capital gain distributions will be reinvested in the same share class from which the original redemption or distribution was made. Any contingent deferred sales charge on Class A or C shares will be credited to your account. Redemption proceeds of Class A shares representing direct purchases in American Funds Money Market Fund that are reinvested in other American Funds will be subject to a sales charge. Proceeds will be reinvested at the next calculated net asset value after your request is received by American Funds Service Company, provided that your request contains all information and legal documentation necessary to process the transaction. For purposes of this "right of reinvestment policy," automatic transactions (including, for example, automatic purchases, withdrawals and payroll deductions) and ongoing retirement plan contributions are not eligible for investment without a sales charge. You may not reinvest proceeds in the American Funds as described in this paragraph if such proceeds are subject to a purchase block as described under "Frequent trading of fund shares" in this prospectus. This paragraph does not apply to certain rollover investments as described under "Rollovers from retirement plans to IRAs" in this prospectus. 29 International Growth and Income Fund / Prospectus <PAGE> CONTINGENT DEFERRED SALES CHARGE WAIVERS The contingent deferred sales charge on Class A, B and C shares may be waived in the following cases: . permitted exchanges of shares, except if shares acquired by exchange are then redeemed within the period during which a contingent deferred sales charge would apply to the initial shares purchased; . tax-free returns of excess contributions to IRAs; . redemptions due to death or postpurchase disability of the shareholder (this generally excludes accounts registered in the names of trusts and other entities); . for 529 share classes only, redemptions due to a beneficiary's death, postpurchase disability or receipt of a scholarship (to the extent of the scholarship award); . redemptions due to the complete termination of a trust upon the death of the trustor/ grantor or beneficiary, but only if such termination is specifically provided for in the trust document; and . the following types of transactions, if together they do not exceed 12% of the value of an account annually (see the statement of additional information for more information about waivers regarding these types of transactions): -- redemptions due to receiving required minimum distributions from retirement accounts upon reaching age 70 1/2 (required minimum distributions that continue to be taken by the beneficiary(ies) after the account owner is deceased also qualify for a waiver); and -- if you have established an automatic withdrawal plan, redemptions through such a plan (including any dividends and/or capital gain distributions taken in cash). To have your Class A, B or C contingent deferred sales charge waived, you must inform your adviser or American Funds Service Company at the time you redeem shares that you qualify for such a waiver. 30 International Growth and Income Fund / Prospectus <PAGE> Rollovers from retirement plans to IRAs Assets from retirement plans may be invested in Class A, C or F shares through an IRA rollover, subject to the other provisions of this prospectus. Rollovers invested in Class A shares from retirement plans will be subject to applicable sales charges. The following rollovers to Class A shares will be made without a sales charge: . rollovers to IRAs from 403(b) plans with Capital Bank and Trust Company as custodian; and . rollovers to IRAs that are attributable to American Funds investments, if they meet the following requirements: -- the assets being rolled over were invested in American Funds at the time of distribution; and -- the rolled over assets are contributed to an American Funds IRA with Capital Bank and Trust Company as custodian. IRA rollover assets that roll over without a sales charge as described above will not be subject to a contingent deferred sales charge, and investment dealers will be compensated solely with an annual service fee that begins to accrue immediately. IRA rollover assets invested in Class A shares that are not attributable to American Funds investments, as well as future contributions to the IRA, will be subject to sales charges and the terms and conditions generally applicable to Class A share investments as described in this prospectus and the statement of additional information. Plans of distribution The fund has plans of distribution or "12b-1 plans" for certain share classes, under which it may finance activities primarily intended to sell shares, provided that the categories of expenses are approved in advance by the fund's board of trustees. The plans provide for payments, based on annualized percentages of average daily net assets, of up to .30% for Class A shares; up to .50% for Class 529-A shares; up to 1.00% for Class B and 529-B shares; up to 1.00% for Class C and 529-C shares; up to .75% for Class 529-E shares; and up to .50% for Class F-1 and 529-F-1 shares. For all share classes indicated above, up to .25% of these expenses may be used to pay service fees to qualified dealers for providing certain shareholder services. The amount remaining for each share class may be used for distribution expenses. The 12b-1 fees paid by the fund, as a percentage of average net assets for the previous fiscal year, are indicated in the Annual Fund Operating Expenses table under "Fees and expenses of the fund" in this prospectus. Since these fees are paid out of the fund's assets or income on an ongoing basis, over time they will increase the cost and reduce the return of your investment. The higher fees for Class B and C shares may cost you more over time than paying the initial sales charge for Class A shares. 31 International Growth and Income Fund / Prospectus <PAGE> Other compensation to dealers American Funds Distributors, at its expense, currently provides additional compensation to investment dealers. These payments may be made, at the discretion of American Funds Distributors, to the top 100 dealers (or their affiliates) that have sold shares of the American Funds. The level of payments made to a qualifying firm in any given year will vary and in no case would exceed the sum of (a) .10% of the previous year's American Funds sales by that dealer and (b) .02% of American Funds assets attributable to that dealer. For calendar year 2009, aggregate payments made by American Funds Distributors to dealers were less than .02% of the average assets of the American Funds. Aggregate payments may also change from year to year. A number of factors will be considered in determining payments, including the qualifying dealer's sales, assets and redemption rates, and the quality of the dealer's relationship with American Funds Distributors. American Funds Distributors makes these payments to help defray the costs incurred by qualifying dealers in connection with efforts to educate financial advisers about the American Funds so that they can make recommendations and provide services that are suitable and meet shareholder needs. American Funds Distributors will, on an annual basis, determine the advisability of continuing these payments. American Funds Distributors may also pay expenses associated with meetings conducted by dealers outside the top 100 firms to facilitate educating financial advisers and shareholders about the American Funds. If investment advisers, distributors or other affiliates of mutual funds pay additional compensation or other incentives in differing amounts, dealer firms and their advisers may have financial incentives for recommending a particular mutual fund over other mutual funds. You should consult with your financial adviser and review carefully any disclosure by your financial adviser's firm as to compensation received. 32 International Growth and Income Fund / Prospectus <PAGE> How to sell shares You may sell (redeem) shares in any of the following ways: THROUGH YOUR DEALER OR FINANCIAL ADVISER (CERTAIN CHARGES MAY APPLY) . Shares held for you in your dealer's name must be sold through the dealer. . Class F shares must be sold through your dealer or financial adviser. WRITING TO AMERICAN FUNDS SERVICE COMPANY . Requests must be signed by the registered shareholder(s). . A signature guarantee is required if the redemption is: -- more than $75,000; -- made payable to someone other than the registered shareholder(s); or -- sent to an address other than the address of record or to an address of record that has been changed within the last 10 days. . American Funds Service Company reserves the right to require signature guarantee(s) on any redemption. . Additional documentation may be required for redemptions of shares held in corporate, partnership or fiduciary accounts. TELEPHONING OR FAXING AMERICAN FUNDS SERVICE COMPANY OR USING THE INTERNET . Redemptions by telephone, fax or the Internet (including American FundsLine and americanfunds.com) are limited to $75,000 per American Funds shareholder each day. . Checks must be made payable to the registered shareholder. . Checks must be mailed to an address of record that has been used with the account for at least 10 days. If you recently purchased shares and subsequently request a redemption of those shares, you will receive proceeds from the redemption once a sufficient period of time has passed to reasonably ensure that checks or drafts (including certified or cashier's checks) for the shares purchased have cleared (normally 10 business days). 33 International Growth and Income Fund / Prospectus <PAGE> TRANSACTIONS BY TELEPHONE, FAX OR THE INTERNET Generally, you are automatically eligible to redeem or exchange shares by telephone, fax or the Internet, unless you notify us in writing that you do not want any or all of these services. You may reinstate these services at any time. Unless you decide not to have telephone, fax or Internet services on your account(s), you agree to hold the fund, American Funds Service Company, any of its affiliates or mutual funds managed by such affiliates, and each of their respective directors, trustees, officers, employees and agents harmless from any losses, expenses, costs or liabilities (including attorney fees) that may be incurred in connection with the exercise of these privileges, provided that American Funds Service Company employs reasonable procedures to confirm that the instructions received from any person with appropriate account information are genuine. If reasonable procedures are not employed, American Funds Service Company and/or the fund may be liable for losses due to unauthorized or fraudulent instructions. 34 International Growth and Income Fund / Prospectus <PAGE> Distributions and taxesDIVIDENDS AND DISTRIBUTIONS The fund intends to distribute dividends to you, usually in March, June, September and December. Capital gains, if any, are usually distributed in December. When a dividend or capital gain is distributed, the net asset value per share is reduced by the amount of the payment. You may elect to reinvest dividends and/or capital gain distributions to purchase additional shares of this fund or other American Funds, or you may elect to receive them in cash. Most shareholders do not elect to take capital gain distributions in cash because these distributions reduce principal value. Dividends and capital gain distributions for 529 share classes will be automatically reinvested. TAXES ON DIVIDENDS AND DISTRIBUTIONS Dividends and capital gain distributions you receive from the fund are subject to federal income taxes and may also be subject to state and local taxes, unless you or your account is tax-exempt or tax-deferred. For federal tax purposes, dividends and distributions of short-term capital gains are taxable as ordinary income. Some or all of your dividends may be eligible for a reduced tax rate if you meet a holding period requirement. The fund's distributions of net long-term capital gains are taxable as long-term capital gains. Any dividends or capital gain distributions you receive from the fund will normally be taxable to you when made, regardless of whether you reinvest dividends or capital gain distributions or receive them in cash. TAXES ON TRANSACTIONS Your redemptions, including exchanges, may result in a capital gain or loss for federal tax purposes. A capital gain or loss on your investment is the difference between the cost of your shares, including any sales charges, and the amount you receive when you sell them. SHAREHOLDER FEES Fees borne directly by the fund normally have the effect of reducing a shareholder's taxable income on distributions. By contrast, fees paid directly to advisers by a fund shareholder for ongoing advice are deductible for income tax purposes only to the extent that they (combined with certain other qualifying expenses) exceed 2% of such shareholder's adjusted gross income. PLEASE SEE YOUR TAX ADVISER FOR MORE INFORMATION. HOLDERS OF CLASS 529 SHARES SHOULD REFER TO THE APPLICABLE PROGRAM DESCRIPTION FOR MORE INFORMATION REGARDING THE TAX CONSEQUENCES OF SELLING CLASS 529 SHARES. 35 International Growth and Income Fund / Prospectus <PAGE> Financial highlights/1/ The Financial Highlights table is intended to help you understand the fund's results. Certain information reflects financial results for a single share of a particular class. The total returns in the table represent the rate that an investor would have earned or lost on an investment in the fund (assuming reinvestment of all dividends and capital gain distributions). Where indicated, figures in the table reflect the impact, if any, of certain reimbursements/waivers from Capital Research and Management Company. For more information about these reimbursements/ waivers, see the fund's statement of additional information and annual report. The information in the Financial Highlights table has been audited by Deloitte & Touche LLP, whose report, along with the fund's financial statements, is included in the statement of additional information, which is available upon request. INCOME FROM INVESTMENT OPERATIONS/2/ Net (losses) on securities Net asset (both Dividends value, Net realized Total from (from net Net asset beginning investment and investment investment value, end Total of period income unrealized) operations income) of period return/3,4/ -------------------------------------------------------------------------------------------------------------------------------- CLASS A: Period from 10/1/2008/5/ to 6/30/2009 $25.00 $.62 $(.39) $.23 $(.45) $24.78 1.04% -------------------------------------------------------------------------------------------------------------------------------- CLASS B: Period from 10/1/2008/5/ to 6/30/2009 25.00 .53 (.42) .11 (.36) 24.75 .49 -------------------------------------------------------------------------------------------------------------------------------- CLASS C: Period from 10/1/2008/5/ to 6/30/2009 25.00 .51 (.41) .10 (.35) 24.75 .48 -------------------------------------------------------------------------------------------------------------------------------- CLASS F-1: Period from 10/1/2008/5/ to 6/30/2009 25.00 .63 (.39) .24 (.46) 24.78 1.06 -------------------------------------------------------------------------------------------------------------------------------- CLASS F-2: Period from 10/1/2008/5/ to 6/30/2009 25.00 .60 (.31) .29 (.50) 24.79 1.28 -------------------------------------------------------------------------------------------------------------------------------- CLASS 529-A: Period from 10/1/2008/5/ to 6/30/2009 $25.00 $.70 $(.49) $.21 $(.44) $24.77 .96% -------------------------------------------------------------------------------------------------------------------------------- CLASS 529-B: Period from 10/1/2008/5/ to 6/30/2009 25.00 .50 (.41) .09 (.35) 24.74 .43 -------------------------------------------------------------------------------------------------------------------------------- CLASS 529-C: Period from 10/1/2008/5/ to 6/30/2009 25.00 .65 (.57) .08 (.36) 24.72 .41 -------------------------------------------------------------------------------------------------------------------------------- CLASS 529-E: Period from 10/1/2008/5/ to 6/30/2009 25.00 .74 (.56) .18 (.40) 24.78 .82 -------------------------------------------------------------------------------------------------------------------------------- CLASS 529-F-1: Period from 10/1/2008/5/ to 6/30/2009 25.00 .76 (.49) .27 (.48) 24.79 1.18 Ratio of Ratio of expenses expenses to average to average Ratio net assets net assets of net Net assets, before reim- after reim- income to end of period bursements/ bursements/ average (in millions) waivers waivers/4/ net assets/4/ ------------------------------------------------------------------------------------------------ CLASS A: Period from 10/1/2008/5/ to 6/30/2009 $1,424 1.11 %/6/ 1.06 %/6/ 3.73 %/6/ ------------------------------------------------------------------------------------------------ CLASS B: Period from 10/1/2008/5/ to 6/30/2009 18 1.81/6/ 1.77/6/ 3.16/6/ ------------------------------------------------------------------------------------------------ CLASS C: Period from 10/1/2008/5/ to 6/30/2009 87 1.84/6/ 1.80/6/ 3.07/6/ ------------------------------------------------------------------------------------------------ CLASS F-1: Period from 10/1/2008/5/ to 6/30/2009 164 1.07/6/ 1.03/6/ 3.76/6/ ------------------------------------------------------------------------------------------------ CLASS F-2: Period from 10/1/2008/5/ to 6/30/2009 119 .82/6/ .76/6/ 3.57/6/ ------------------------------------------------------------------------------------------------ CLASS 529-A: Period from 10/1/2008/5/ to 6/30/2009 $ 9 1.20 %/6/ 1.16 %/6/ 4.16 %/6/ ------------------------------------------------------------------------------------------------ CLASS 529-B: Period from 10/1/2008/5/ to 6/30/2009 --/7/ 1.93 /6/ 1.88/6/ 3.00/6/ ------------------------------------------------------------------------------------------------ CLASS 529-C: Period from 10/1/2008/5/ to 6/30/2009 2 1.91 /6/ 1.88/6/ 3.81/6/ ------------------------------------------------------------------------------------------------ CLASS 529-E: Period from 10/1/2008/5/ to 6/30/2009 --/7/ 1.39/6/ 1.35/6/ 4.36/6/ ------------------------------------------------------------------------------------------------ CLASS 529-F-1: Period from 10/1/2008/5/ to 6/30/2009 --/7/ .90/6/ .86/6/ 4.48/6/ 36 International Growth and Income Fund / Prospectus <PAGE> FOR THE PERIOD OCTOBER 1, 2008/5/ TO JUNE 30, 2009 ---------------------------------------------------------------------------------- PORTFOLIO TURNOVER RATE FOR ALL CLASSES 33% OF SHARES 1 Based on operations for the periods shown (unless otherwise noted) and, accordingly, may not be representative of a full year. 2 Based on average shares outstanding. 3 Total returns exclude any applicable sales charges, including contingent deferred sales charges. 4 This column reflects the impact, if any, of certain reimbursements/waivers from Capital Research and Management Company. During some of the periods shown, Capital Research and Management Company reduced fees for investment advisory services and reimbursed other fees and expenses. 5 Commencement of operations. 6 Annualized. 7 Amount less than $1 million. 37International Growth and Income Fund / Prospectus <PAGE> [logo - American Funds /(R)/] The right choice for the long term/(R)/ FOR SHAREHOLDER American Funds Service Company SERVICES 800/421-0180 FOR RETIREMENT PLAN Call your employer or plan SERVICES administrator FOR 529 PLANS American Funds Service Company 800 /421-0180, ext. 529 FOR 24 American FundsLine -HOUR INFORMATION 800/325-3590 americanfunds.com Telephone calls you have with American Funds may be monitored or recorded for quality assurance, verification and recordkeeping purposes. By speaking to American Funds on the telephone, you consent to such monitoring and recording. ----------------------------------------------------------------------------------- ANNUAL/SEMI-ANNUAL REPORT TO SHAREHOLDERS The shareholder reports contain additional information about the fund, including financial statements, investment results, portfolio holdings, a discussion of market conditions and the fund's investment strategies and the independent registered public accounting firm's report (in the annual report). PROGRAM DESCRIPTION The CollegeAmerica/(R)/ 529 program description contains additional information about the policies and services related to 529 plan accounts.STATEMENT OF ADDITIONAL INFORMATION (SAI) AND CODES OF ETHICS The current SAI, as amended from time to time, contains more detailed information about the fund, including the fund's financial statements, and is incorporated by reference into this prospectus. This means that the current SAI, for legal purposes, is part of this prospectus. The codes of ethics describe the personal investing policies adopted by the fund, the fund's investment adviser and its affiliated companies. The codes of ethics and current SAI are on file with the U.S. Securities and Exchange Commission (SEC). These and other related materials about the fund are available for review or to be copied at the SEC's Public Reference Room in Washington, D.C. (202/551-8090), on the EDGAR database on the SEC's website at sec.gov or, after payment of a duplicating fee, via e-mail request to publicinfo@sec.gov or by writing to the SEC's Public Reference Section, 100 F Street, NE, Washington, D.C. 20549-1520. The codes of ethics, current SAI and shareholder reports are also available, free of charge, on our website, americanfunds.com. E-DELIVERY AND HOUSEHOLD MAILINGS Each year you are automatically sent an updated summary prospectus and annual and semi-annual reports for the fund. You may also occasionally receive proxy statements for the fund. In order to reduce the volume of mail you receive, when possible, only one copy of these documents will be sent to shareholders who are part of the same family and share the same household address. You may elect to receive these documents electronically in lieu of paper form by enrolling in e-delivery on our website, americanfunds.com. If you would like to opt out of household-based mailings or receive a complimentary copy of the current SAI, codes of ethics, annual/semi-annual report to shareholders or applicable program description, please call American Funds Service Company at 800/421-0180 or write to the secretary of the fund at P.O. Box 7650, San Francisco, California 94120. SECURITIES INVESTOR PROTECTION CORPORATION (SIPC) Shareholders may obtain information about SIPC/(R)/ on its website at sipc.org or by calling 202/371-8300. Investment Company File No. 811-22215 MFGEPR-934-0310P Litho in USA CGD/CF/9970 ------------------------------------------------------------------------------- THE CAPITAL GROUP COMPANIES American Funds Capital Research and Management Capital International Capital Guardian Capital Bank and Trust <PAGE> [logo - American Funds /(R)/] The right choice for the long term/(R)/ International Growth and Income Fund/SM/ CLASS TICKER R-3......... RGICX A........... IGAAX R-4......... RIGEX R-1......... RIGAX R-5......... RIGFX R-2......... RIGBX R-6......... RIGGX RETIREMENT PLAN PROSPECTUS March 1, 2010 TABLE OF CONTENTS 1 Investment objective 1 Fees and expenses of the fund 3 Principal investment strategies 3 Principal risks 4 Investment results 6 Management 6 Purchase and sale of fund shares 7 Tax information 7 Payments to broker-dealers and other financial intermediaries 8 Investment objective, strategies and risks 9 Additional investment results 10 Management and organization 13 Purchase, exchange and sale of shares 18 Sales charges 21 Sales charge reductions 23 Rollovers from retirement plans to IRAs 23 Plans of distribution 24 Other compensation to dealers 25 Distributions and taxes 26 Financial highlights THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED OF THESE SECURITIES. FURTHER, IT HAS NOT DETERMINED THAT THIS PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. <PAGE> [This page is intentionally left blank for this filing.] <PAGE> Investment objective The fund's investment objective is to provide you with long-term growth of capital while providing current income. Fees and expenses of the fund This table describes the fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for a Class A sales charge discount if you and your family invest, or agree to invest in the future, at least $25,000 in American Funds. More information about these and other discounts is available from your financial professional and in the "Sales charge reductions" section on page 21 of the retirement plan prospectus and in the "Sales charge reductions and waivers" section on page 54 of the fund's statement of additional information.SHAREHOLDER FEES (fees paid directly from your investment) ------------------------------------------------------------------------------ CLASS A ALL R SHARE CLASSES ------------------------------ Maximum sales charge (load) imposed on 5.75% none purchases (as a percentage of offering price) ------------------------------------------------------------------------------ Maximum deferred sales charge (load) none none (as a percentage of the amount redeemed) ------------------------------------------------------------------------------ Maximum sales charge (load) imposed none none on reinvested dividends ------------------------------------------------------------------------------ Redemption or exchange fees none none ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment) -----------------------------------------------SHARE CLASSES---------------------A-----R-1----R-2----R-3----R-4----R-5-----R-6-- ------------------------------------------------- Management fees 0.61% 0.61% 0.61% 0.61% 0.61% 0.61% 0.61% ------------------------------------------------------------------------------- Distribution and/or service 0.30 1.00 0.75 0.50 0.25 none none (12b-1) fees ------------------------------------------------------------------------------- Other expenses/*/ 0.20 0.21 0.52 0.27 0.21 0.20 0.15 ------------------------------------------------------------------------------- Total annual fund operating 1.11 1.82 1.88 1.38 1.07 0.81 0.76 expenses ------------------------------------------------------------------------------- 1 International Growth and Income Fund / Retirement plan prospectus <PAGE> EXAMPLE This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year, that all dividends and capital gain distributions are reinvested, and that the fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:SHARE CLASSES 1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------- A $682 $908 $1,151 $1,849 ------------------------------------------------------------------- R-1 185 573 985 2,137 ------------------------------------------------------------------- R-2 191 591 1,016 2,201 ------------------------------------------------------------------- R-3 140 437 755 1,657 ------------------------------------------------------------------- R-4 109 340 590 1,306 ------------------------------------------------------------------- R-5 83 259 450 1,002 ------------------------------------------------------------------- R-6 78 243 422 942 ------------------------------------------------------------------- * Based on estimated amounts for the current fiscal year. PORTFOLIO TURNOVER The fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund's performance. During the most recent fiscal year, the fund's portfolio turnover rate was 33% of the average value of its portfolio. The fund commenced operations on October 1, 2008; therefore, the stated portfolio turnover rate may not be representative of a full year. 2 International Growth and Income Fund / Retirement plan prospectus <PAGE> Principal investment strategies The fund invests primarily in stocks of larger, well-established companies domiciled outside the United States, including in developing countries. The fund currently intends to invest at least 90% of its assets in securities of issuers domiciled outside the United States and whose securities are primarily listed on exchanges outside the United States. The fund therefore expects to be invested in numerous countries outside the United States. The fund is designed for investors seeking both capital appreciation and income. In pursuing its objective, the fund will focus on stocks of companies with strong earnings that pay dividends. We believe that these stocks will be more resistant to market declines than stocks of companies that do not pay dividends. The fund relies on the professional judgment of its investment adviser to make decisions about the fund's portfolio investments. The basic investment philosophy of the investment adviser is to seek to invest in attractively valued companies that, in its opinion, represent above-average, long-term investment opportunities. The investment adviser believes that an important way to accomplish this is through fundamental analysis, which may include meeting with company executives and employees, suppliers, customers and competitors. Securities may be sold when the investment adviser believes that they no longer represent relatively attractive investment opportunities. The investment adviser uses a system of multiple portfolio counselors in managing the fund's assets. Under this approach, the portfolio of the fund is divided into segments managed by individual counselors who decide how their respective segments will be invested. Principal risks YOU MAY LOSE MONEY BY INVESTING IN THE FUND. THE LIKELIHOOD OF LOSS MAY BE GREATER IF YOU INVEST FOR A SHORTER PERIOD OF TIME. Investors in the fund should have a long-term perspective and, for example, be able to tolerate potentially sharp declines in value. The prices of, and the income generated by, the common stocks and other securities held by the fund may decline in response to certain events taking place around the world, including those directly involving the issuers whose securities are owned by the fund; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; governmental or governmental agency responses to economic conditions; and currency, interest rate and commodity price fluctuations. 3 International Growth and Income Fund / Retirement plan prospectus <PAGE> Investments in securities issued by entities based outside the United States may also be affected by currency controls; different accounting, auditing, financial reporting, disclosure, and regulatory and legal standards and practices; expropriation; changes in tax policy; greater market volatility; different securities market structures; higher transaction costs; and various administrative difficulties, such as delays in clearing and settling portfolio transactions or in receiving payment of dividends. These risks may be heightened in connection with investments in developing countries. Investments in securities issued by entities domiciled in the United States may also be subject to many of these risks. Your investment in the fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency, entity or person. Investment results The bar chart below shows how the fund's investment results have varied from year to year, and the table on page 5 shows how the fund's average annual total returns for various periods compare with different broad measures of market performance. This information provides some indication of the risks of investing in the fund. Past results (before and after taxes) are not predictive of future results. Updated information on the fund's results can be obtained by visiting americanfunds.com. CALENDAR YEAR TOTAL RETURNS FOR CLASS A SHARES (Results do not include a sales charge; if a sales charge were included, results would be lower.) [begin bar chart] 2009 35.29% [end bar chart] Highest/Lowest quarterly results during this time period were: HIGHEST 18.84% (quarter ended September 30, 2009) LOWEST -6.95% (quarter ended March 31, 2009) 4 International Growth and Income Fund / Retirement plan prospectus <PAGE>AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED DECEMBER 31, 2009 (WITH MAXIMUM SALES CHARGE): SHARE CLASS INCEPTION DATE 1 YEAR LIFETIME -------------------------------------------------------------------------- A 10/1/2008 27.51% 13.42% SHARE CLASS INCEPTION DATE 1 YEAR LIFETIME ------------------------------------------------------------------ R-1 10/1/2008 34.29% 18.07% ------------------------------------------------------------------ R-2 10/1/2008 34.28 18.06 ------------------------------------------------------------------ R-3 10/1/2008 34.89 18.60 ------------------------------------------------------------------ R-4 10/1/2008 35.32 18.97 ------------------------------------------------------------------ R-5 10/1/2008 35.66 19.28 INDEXES/1/ 1 YEAR LIFETIME/2/ ------------------------------------------------------------------------------- MSCI World ex USA Index (reflects no deductions for fees, expenses or 34.39% 4.09% taxes) Lipper International Funds Index 35.30 5.45 (reflects no deductions for fees or taxes) ------------------------------------------------------------------------------- Class A annualized 30-day yield at December 31, 2009: 2.59% (For current yield information, please call American FundsLine/(R)/ at 800/325-3590.) 1 MSCI World ex USA Index reflects the market sectors and securities in which the fund primarily invests. Lipper International Funds Index includes mutual funds that disclose investment objectives reasonably comparable to those of the fund. See page 9 of this prospectus for more information on the indexes listed above. 2 Lifetime results for the index(es) shown are measured from the date Class A shares were first sold. 5 International Growth and Income Fund / Retirement plan prospectus <PAGE>Management INVESTMENT ADVISER Capital Research and Management Company, the investment adviser to the fund, uses a system of multiple portfolio counselors in managing mutual fund assets. PORTFOLIO COUNSELORS The primary individual portfolio counselors for the fund are: PORTFOLIO COUNSELOR PRIMARY TITLE PORTFOLIO COUNSELOR/ EXPERIENCE WITH INVESTMENT ADVISER FUND TITLE (if applicable) IN THIS FUND (or one of its divisions) ------------------------------------------------------------------------------ STEVEN T. WATSON 1 year Senior Vice President - Vice Chairman of the Board (since the fund's Capital World Investors inception) ------------------------------------------------------------------------------ CARL M. KAWAJA 1 year Senior Vice President - President (since the fund's Capital World Investors inception) ------------------------------------------------------------------------------ ANDREW B. SUZMAN 1 year Senior Vice President - Senior Vice President (since the fund's Capital World Investors inception) ------------------------------------------------------------------------------ Purchase and sale of fund shares Eligible retirement plans generally may open an account and purchase Class A or R shares by contacting any investment dealer authorized to sell these classes of the fund's shares. Investment dealers may impose transaction charges in addition to those described in this prospectus. Please contact your plan administrator or recordkeeper in order to sell (redeem) shares from your retirement plan. 6 International Growth and Income Fund / Retirement plan prospectus <PAGE> Tax information Dividends and capital gains distributed by the fund to tax-deferred retirement plan accounts are not currently taxable. Payments to broker-dealers and other financial intermediaries If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and the fund's distributor or its affiliates may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your individual financial adviser to recommend the fund over another investment. Ask your individual financial adviser or visit your financial intermediary's website for more information. 7 International Growth and Income Fund / Retirement plan prospectus <PAGE> Investment objective, strategies and risks The fund's investment objective is to provide you with long-term growth of capital while providing current income. The fund will pursue this objective by investing primarily in stocks of larger, well-established companies domiciled outside the United States, including developing countries. The fund currently intends to invest at least 90% of its assets in securities of issuers domiciled outside the United States and whose securities are primarily listed on exchanges outside the United States. The fund therefore expects to be invested in numerous countries outside the United States. The fund is designed for investors seeking both capital appreciation and income. In pursuing its objective, the fund will focus on stocks of companies with strong earnings that pay dividends. We believe that these stocks will be more resistant to market declines than stocks of companies that do not pay dividends. Investors in the fund should have a long-term perspective and, for example, be able to tolerate potentially sharp declines in value. Your investment in the fund is subject to various risks. Consequently, the fund's income may decline and/or its portfolio holdings may lose value. Declines in dividends paid to the fund and in the values of certain stocks held by the fund could be in response to economic, political and/or social events taking place around the world. For example, increases in the prices of basic commodities, such as oil and grains, can negatively impact the values of certain companies. Further, changes in relationships among global currencies may trigger declines in the value of the fund's income and/or holdings. Investing in securities issued by entities based outside the United States may also be affected by currency controls, different accounting and legal standards, expropriation, tax policies, greater market volatility and various administrative difficulties. These risks may be heightened in connection with investments in developing countries. The fund's investment results will depend on the ability of the fund's investment adviser to navigate these risks. The fund may also hold cash or money market instruments. The percentage of the fund invested in such holdings varies and depends on various factors, including market conditions and purchases and redemptions of fund shares. For temporary defensive purposes, the fund may hold a significant portion of its assets in such securities. The investment adviser may determine that it is appropriate to take such action in response to certain circumstances, such as periods of market turmoil. A larger percentage of such holdings could limit the fund's ability to achieve its investment objective in a period of rising market prices. A larger percentage of cash or money market instruments could reduce the magnitude of the fund's loss in a period of falling market prices and provide liquidity to make additional investments or to meet redemptions. You should consider how this fund fits into your overall investment program. In addition to the principal investment strategies described above, the fund has other investment practices that are described in the statement of additional information. 8 International Growth and Income Fund / Retirement plan prospectus <PAGE> Additional investment results Unlike the table on page 5, the table below reflects the fund's results calculated without sales charges.AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED DECEMBER 31, 2009 (WITHOUT SALES CHARGE): SHARE CLASS INCEPTION DATE 1 YEAR LIFETIME ---------------------------------------------------------------------- A 10/1/2008 35.29% 18.95% SHARE CLASS INCEPTION DATE 1 YEAR LIFETIME ------------------------------------------------------------------ R-1 10/1/2008 34.29% 18.07% ------------------------------------------------------------------ R-2 10/1/2008 34.28 18.06 ------------------------------------------------------------------ R-3 10/1/2008 34.89 18.60 ------------------------------------------------------------------ R-4 10/1/2008 35.32 18.97 ------------------------------------------------------------------ R-5 10/1/2008 35.66 19.28 INDEXES/1/ 1 YEAR LIFETIME/2/ ------------------------------------------------------------------------------- MSCI World ex USA Index (reflects no deductions for fees, 34.39% 4.09% expenses or taxes) Lipper International Funds Index (reflects no deductions for fees or 35.30 5.45 taxes) Class A distribution rate at December 31, 2009: 2.35%/3/ (For current distribution rate information, please call American FundsLine at 800/325-3590.) 1 MSCI World ex USA Index reflects the market sectors and securities in which the fund primarily invests. Lipper International Funds Index includes mutual funds that disclose investment objectives reasonably comparable to those of the fund. 2 Lifetime results for the index(es) shown are measured from the date Class A shares were first sold. 3 Reflects a fee waiver (2.34% without the waiver) as described in the financial highlights table and the statement of additional information. The distribution rate is based on actual dividends paid to Class A shareholders over a 12-month period. Capital gain distributions, if any, are added back to net asset value to determine the rate. The investment results tables above and on page 5 show how the fund's average annual total returns compare with various broad measures of market performance. MSCI World ex USA Index is a free float-adjusted market capitalization weighted index that is designed to measure equity market performance of developed markets, excluding the United States. The index consists of more than 20 developed market country indexes. This index is unmanaged and its results include reinvested dividends and/or distributions, but do not reflect the effect of sales charges, commissions, expenses or taxes. Lipper International Funds Index is an equally weighted index of funds that invest assets in securities with primary trading markets outside the United States. The results of the underlying funds in the index include the reinvestment of dividends and capital gain distributions, as well as expenses and brokerage commissions paid by the funds for portfolio transactions, but do not reflect the effect of sales charges or taxes. All fund results reflected in the "Investment results" section of this prospectus and this "Additional investment results" section reflect the reinvestment of dividends and capital gain distributions, if any. Unless otherwise noted, fund results reflect any fee waivers and/or expense reimbursements in effect during the period presented. 9 International Growth and Income Fund / Retirement plan prospectus <PAGE> Management and organizationINVESTMENT ADVISER Capital Research and Management Company, an experienced investment management organization founded in 1931, serves as investment adviser to the fund and other funds, including the American Funds. Capital Research and Management Company is a wholly owned subsidiary of The Capital Group Companies, Inc. and is located at 333 South Hope Street, Los Angeles, California 90071, and 6455 Irvine Center Drive, Irvine, California 92618. Capital Research and Management Company manages the investment portfolio and business affairs of the fund. The total management fee to be paid by the fund for the current fiscal year, as a percentage of average net assets, appears in the Annual Fund Operating Expenses table under "Fees and expenses of the fund." Please see the statement of additional information for further details. A discussion regarding the basis for the approval of the fund's investment advisory and service agreement by the fund's board of trustees is contained in the fund's semi-annual report to shareholders for the fiscal period ended December 31, 2009. Capital Research and Management Company manages equity assets through two investment divisions, Capital World Investors and Capital Research Global Investors, and manages fixed-income assets through its Fixed Income division. Capital World Investors and Capital Research Global Investors make investment decisions on an independent basis. Rather than remain as investment divisions, Capital World Investors and Capital Research Global Investors may be incorporated into wholly owned subsidiaries of Capital Research and Management Company. In that event, Capital Research and Management Company would continue to be the investment adviser, and day-to-day investment management of equity assets would continue to be carried out through one or both of these subsidiaries. Capital Research and Management Company and each of the funds it advises have applied to the Securities and Exchange Commission for an exemptive order that would give Capital Research and Management Company the authority to use, upon approval of the fund's board, its management subsidiaries and affiliates to provide day-to-day investment management services to the fund, including making changes to the management subsidiaries and affiliates providing such services. Although not currently contemplated, Capital Research and Management Company could incorporate its fixed-income division in the future and engage it to provide day-to-day investment management of fixed-income assets. The fund's shareholders approved this arrangement at a meeting of the fund's shareholders on November 24, 2009. There is no assurance that Capital Research and Management Company will incorporate its investment divisions or exercise any authority, if granted, under an exemptive order. 10 International Growth and Income Fund / Retirement plan prospectus <PAGE> EXECUTION OF PORTFOLIO TRANSACTIONS The investment adviser places orders with broker-dealers for the fund's portfolio transactions. In selecting broker-dealers, the investment adviser strives to obtain "best execution" (the most favorable total price reasonably attainable under the circumstances) for the fund's portfolio transactions, taking into account a variety of factors. Subject to best execution, the investment adviser may consider investment research and/or brokerage services provided to the adviser in placing orders for the fund's portfolio transactions. The investment adviser may place orders for the fund's portfolio transactions with broker-dealers who have sold shares of funds managed by the investment adviser or its affiliated companies; however, it does not give consideration to whether a broker-dealer has sold shares of the funds managed by the investment adviser or its affiliated companies when placing any such orders for the fund's portfolio transactions. A more detailed description of the investment adviser's policies is included in the fund's statement of additional information. PORTFOLIO HOLDINGS Portfolio holdings information for the fund is available on the American Funds website at americanfunds.com. To reach this information, access the fund's detailed information page on the website. A list of the fund's top 10 equity holdings, updated as of each month-end, is generally posted to this page within 14 days after the end of the applicable month. A link to the fund's complete list of publicly disclosed portfolio holdings, updated as of each calendar quarter-end, is generally posted to this page within 45 days after the end of the applicable quarter. Both lists remain available on the website until new information for the next month or quarter is posted. Portfolio holdings information for the fund is also contained in reports filed with the U.S. Securities and Exchange Commission. A description of the fund's policies and procedures regarding disclosure of information about its portfolio holdings is available in the statement of additional information. 11 International Growth and Income Fund / Retirement plan prospectus <PAGE> MULTIPLE PORTFOLIO COUNSELOR SYSTEM Capital Research and Management Company uses a system of multiple portfolio counselors in managing mutual fund assets. Under this approach, the portfolio of a fund is divided into segments managed by individual counselors who decide how their respective segments will be invested. In addition, Capital Research and Management Company's investment analysts may make investment decisions with respect to a portion of a fund's portfolio. Investment decisions are subject to a fund's objective(s), policies and restrictions and the oversight of the appropriate investment-related committees of Capital Research and Management Company and its investment divisions. The table below shows the investment experience and role in management of the fund for each of the fund's primary portfolio counselors. ROLE IN INVESTMENT EXPERIENCE MANAGEMENT PORTFOLIO COUNSELOR EXPERIENCE IN THIS FUND OF THE FUND ---------------------------------------------------------------------------------------- STEVEN T. WATSON Investment 1 year Serves as an equity professional for 22 (since the fund's portfolio counselor years in total; inception) 20 years with Capital Research and Management Company or affiliate ---------------------------------------------------------------------------------------- CARL M. KAWAJA Investment 1 year Serves as an equity professional for 22 (since the fund's portfolio counselor years in total; inception) 19 years with Capital Research and Management Company or affiliate ---------------------------------------------------------------------------------------- ANDREW B. SUZMAN Investment 1 year Serves as an equity professional for 17 (since the fund's portfolio counselor years in total; all inception) with Capital Research and Management Company or affiliate ---------------------------------------------------------------------------------------- Information regarding the portfolio counselors' compensation, their ownership of securities in the fund and other accounts they manage is in the statement of additional information. CERTAIN PRIVILEGES AND/OR SERVICES DESCRIBED ON THE FOLLOWING PAGES OF THIS PROSPECTUS AND IN THE STATEMENT OF ADDITIONAL INFORMATION MAY NOT BE AVAILABLE TO YOU, DEPENDING ON YOUR INVESTMENT DEALER OR RETIREMENT PLAN RECORDKEEPER.PLEASE SEE YOUR FINANCIAL ADVISER, INVESTMENT DEALER OR RETIREMENT PLAN RECORDKEEPER FOR MORE INFORMATION. 12 International Growth and Income Fund / Retirement plan prospectus <PAGE> Purchase, exchange and sale of shares AMERICAN FUNDS SERVICE COMPANY, THE FUND'S TRANSFER AGENT, ON BEHALF OF THE FUND AND AMERICAN FUNDS DISTRIBUTORS,/(R)/ THE FUND'S DISTRIBUTOR, IS REQUIRED BY LAW TO OBTAIN CERTAIN PERSONAL INFORMATION FROM YOU OR ANY OTHER PERSON(S) ACTING ON YOUR BEHALF IN ORDER TO VERIFY YOUR OR SUCH PERSON'S IDENTITY. IF YOU DO NOT PROVIDE THE INFORMATION, THE TRANSFER AGENT MAY NOT BE ABLE TO OPEN YOUR ACCOUNT. IF THE TRANSFER AGENT IS UNABLE TO VERIFY YOUR IDENTITY OR THAT OF ANY OTHER PERSON(S) AUTHORIZED TO ACT ON YOUR BEHALF, OR BELIEVES IT HAS IDENTIFIED POTENTIALLY CRIMINAL ACTIVITY, THE FUND AND AMERICAN FUNDS DISTRIBUTORS RESERVE THE RIGHT TO CLOSE YOUR ACCOUNT OR TAKE SUCH OTHER ACTION THEY DEEM REASONABLE OR REQUIRED BY LAW. PURCHASES AND EXCHANGES Eligible retirement plans generally may open an account and purchase Class A or R shares by contacting any investment dealer (who may impose transaction charges in addition to those described in this prospectus) authorized to sell these classes of the fund's shares. Some or all R share classes may not be available through certain investment dealers. Additional shares may be purchased through a plan's administrator or recordkeeper. Class A shares are generally not available for retirement plans using the PlanPremier/(R)/ or Recordkeeper Direct/(R)/ recordkeeping programs. Class R shares are generally available only to 401(k) plans, 457 plans, 403(b) plans, profit-sharing and money purchase pension plans, defined benefit plans and nonqualified deferred compensation plans. Class R shares also are generally available only to retirement plans where plan level or omnibus accounts are held on the books of the fund. Class R-5 and R-6 shares are generally available only to fee-based programs or through retirement plan intermediaries. In addition, Class R-6 shares are available for investment by American Funds Target Date Retirement Series/(R)/,and Class R-5 shares are available to other registered investment companies approved by the fund. Class R shares generally are not available to retail nonretirement accounts, traditional and Roth individual retirement accounts (IRAs), Coverdell Education Savings Accounts, SEPs, SARSEPs, SIMPLE IRAs and 529 college savings plans. Shares of the fund offered through this prospectus generally may be exchanged into shares of the same class of other American Funds. Exchanges of Class A shares from American Funds Money Market Fund/SM/ purchased without a sales charge generally will be subject to the appropriate sales charge. 13 International Growth and Income Fund / Retirement plan prospectus <PAGE> FREQUENT TRADING OF FUND SHARES The fund and American Funds Distributors reserve the right to reject any purchase order for any reason. The fund is not designed to serve as a vehicle for frequent trading. Frequent trading of fund shares may lead to increased costs to the fund and less efficient management of the fund's portfolio, potentially resulting in dilution of the value of the shares held by long-term shareholders. Accordingly, purchases, including those that are part of exchange activity that the fund or American Funds Distributors has determined could involve actual or potential harm to the fund, may be rejected. The fund, through its transfer agent, American Funds Service Company, maintains surveillance procedures that are designed to detect frequent trading in fund shares. Under these procedures, various analytics are used to evaluate factors that may be indicative of frequent trading. For example, transactions in fund shares that exceed certain monetary thresholds may be scrutinized. American Funds Service Company also may review transactions that occur close in time to other transactions in the same account or in multiple accounts under common ownership or influence. Trading activity that is identified through these procedures or as a result of any other information available to the fund will be evaluated to determine whether such activity might constitute frequent trading. These procedures may be modified from time to time as appropriate to improve the detection of frequent trading, to facilitate monitoring for frequent trading in particular retirement plans or other accounts, and to comply with applicable laws. In addition to the fund's broad ability to restrict potentially harmful trading as described above, the fund's board of trustees has adopted a "purchase blocking policy" under which any shareholder redeeming shares having a value of $5,000 or more from the fund will be precluded from investing in the fund for 30 calendar days after the redemption transaction. This policy also applies to redemptions and purchases that are part of exchange transactions. Under the fund's purchase blocking policy, certain purchases will not be prevented and certain redemptions will not trigger a purchase block, such as purchases and redemptions of shares having a value of less than $5,000; transactions in Class 529 shares; purchases and redemptions resulting from reallocations by American Funds Target Date Retirement Series; retirement plan contributions, loans and distributions (including hardship withdrawals) identified as such on the retirement plan recordkeeper's system; purchase transactions involving transfers of assets, rollovers, Roth IRA conversions and IRA recharacterizations, where the entity maintaining the shareholder account is able to identify the transaction as one of these types of transactions; and systematic redemptions and purchases, where the entity maintaining the shareholder account is able to identify the transaction as a systematic redemption or purchase. Generally, purchases and redemptions will not be considered "systematic" unless the transaction is pre-scheduled for a specific date. 14 International Growth and Income Fund / Retirement plan prospectus <PAGE> The fund reserves the right to waive the purchase blocking policy with respect to specific shareholder accounts in those instances where American Funds Service Company determines that its surveillance procedures are adequate to detect frequent trading in fund shares. American Funds Service Company will work with certain intermediaries (such as investment dealers holding shareholder accounts in street name, retirement plan recordkeepers, insurance company separate accounts and bank trust companies) to apply their own procedures, provided that American Funds Service Company believes the intermediary's procedures are reasonably designed to enforce the frequent trading policies of the fund. You should refer to disclosures provided by the intermediaries with which you have an account to determine the specific trading restrictions that apply to you. If American Funds Service Company identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary and request that the intermediary either provide information regarding an account owner's transactions or restrict the account owner's trading. If American Funds Service Company is not satisfied that the intermediary has taken appropriate action, American Funds Service Company may terminate the intermediary's ability to transact in fund shares. There is no guarantee that all instances of frequent trading in fund shares will be prevented. NOTWITHSTANDING THE FUND'S SURVEILLANCE PROCEDURES AND PURCHASE BLOCKING POLICY, ALL TRANSACTIONS IN FUND SHARES REMAIN SUBJECT TO THE RIGHT OF THE FUND AND AMERICAN FUNDS DISTRIBUTORS TO RESTRICT POTENTIALLY ABUSIVE TRADING GENERALLY (INCLUDING THE TYPES OF TRANSACTIONS DESCRIBED ABOVE THAT WILL NOT BE PREVENTED OR TRIGGER A BLOCK UNDER THE PURCHASE BLOCKING POLICY). SEE THE STATEMENT OF ADDITIONAL INFORMATION FOR MORE INFORMATION ABOUT HOW AMERICAN FUNDS SERVICE COMPANY MAY ADDRESS OTHER POTENTIALLY ABUSIVE TRADING ACTIVITY IN THE AMERICAN FUNDS. 15 International Growth and Income Fund / Retirement plan prospectus <PAGE> VALUING SHARES The net asset value of each share class of the fund is the value of a single share. The fund calculates the net asset value each day the New York Stock Exchange is open for trading as of approximately 4 p.m. New York time, the normal close of regular trading. Assets are valued primarily on the basis of market quotations. However, the fund has adopted procedures for making "fair value" determinations if market quotations are not readily available or are not considered reliable. For example, if events occur between the close of markets outside the United States and the close of regular trading on the New York Stock Exchange that, in the opinion of the investment adviser, materially affect the value of any of the fund's securities that principally trade in those international markets, those securities will be valued in accordance with fair value procedures. Use of these procedures is intended to result in more appropriate net asset values. In addition, such use will reduce, if not eliminate, potential arbitrage opportunities otherwise available to short-term investors. Because the fund may hold securities that are primarily listed on foreign exchanges that trade on weekends or days when the fund does not price its shares, the values of securities held in the fund may change on days when you will not be able to purchase or redeem fund shares. Your shares will be purchased at the net asset value (plus any applicable sales charge in the case of Class A shares) or sold at the net asset value next determined after American Funds Service Company receives your request, provided that your request contains all information and legal documentation necessary to process the transaction. MOVING BETWEEN SHARE CLASSES AND ACCOUNTS Please see the statement of additional information for details and limitations on moving investments in certain share classes to different share classes and on moving investments held in certain accounts to different accounts. 16 International Growth and Income Fund / Retirement plan prospectus <PAGE> FUND EXPENSES In periods of market volatility, assets of the fund may decline significantly, causing total annual fund operating expenses (as a percentage of the value of your investment) to become higher than the numbers shown in the Annual Fund Operating Expenses table in this prospectus. The "Other expenses" items in the table on page 1 include custodial, legal, transfer agent and subtransfer agent/recordkeeping payments, as well as various other expenses. Subtransfer agent/recordkeeping payments may be made to the fund's investment adviser, affiliates of the adviser and unaffiliated third parties for providing recordkeeping and other administrative services to retirement plans invested in the fund in lieu of the transfer agent providing such services. The amount paid for subtransfer agent/recordkeeping services will vary depending on the share class selected and the entity receiving the payments. The table below shows the maximum payments to entities providing these services to retirement plans. PAYMENTS TO UNAFFILIATED PAYMENTS TO AFFILIATED ENTITIES ENTITIES ------------------------------------------------------------------------------- Class A .05% of assets or .05% of assets or $12 per participant position/1/ $12 per participant position/1/ ------------------------------------------------------------------------------- Class R-1 .10% of assets .10% of assets ------------------------------------------------------------------------------- Class R-2 .15% of assets plus $27 per .25% of assets participant position/2/ or .35% of assets/3/ ------------------------------------------------------------------------------- Class R-3 .10% of assets plus $12 per .15% of assets participant position/2/ or .19% of assets/3/ Class R-4 .10% of assets .10% of assets ------------------------------------------------------------------------------- Class R-5 .05% of assets .05% of assets ------------------------------------------------------------------------------- Class R-6 none none ------------------------------------------------------------------------------- 1 Payment amount depends on the date upon which services commenced. 2 Payment with respect to Recordkeeper Direct program. 3 Payment with respect to PlanPremier program. 17 International Growth and Income Fund / Retirement plan prospectus <PAGE> Sales charges CLASS A SHARES The initial sales charge you pay each time you buy Class A shares differs depending upon the amount you invest and may be reduced or eliminated for larger purchases as indicated below. The "offering price," the price you pay to buy shares, includes any applicable sales charge, which will be deducted directly from your investment. Shares acquired through reinvestment of dividends or capital gain distributions are not subject to an initial sales charge.SALES CHARGE AS A PERCENTAGE OF: DEALER NET COMMISSION OFFERING AMOUNT AS A PERCENTAGE INVESTMENT PRICE INVESTED OF OFFERING PRICE ------------------------------------------------------------------------------ Less than $25,000 5.75% 6.10% 5.00% ------------------------------------------------------------------------------ $25,000 but less than $50,000 5.00 5.26 4.25 ------------------------------------------------------------------------------ $50,000 but less than $100,000 4.50 4.71 3.75 ------------------------------------------------------------------------------ $100,000 but less than $250,000 3.50 3.63 2.75 ------------------------------------------------------------------------------ $250,000 but less than $500,000 2.50 2.56 2.00 ------------------------------------------------------------------------------ $500,000 but less than $750,000 2.00 2.04 1.60 ------------------------------------------------------------------------------ $750,000 but less than $1 million 1.50 1.52 1.20 ------------------------------------------------------------------------------ $1 million or more and certain other none none see below investments described below ------------------------------------------------------------------------------ The sales charge, expressed as a percentage of the offering price or the net amount invested, may be higher or lower than the percentages described in the table above due to rounding. This is because the dollar amount of the sales charge is determined by subtracting the net asset value of the shares purchased from the offering price, which is calculated to two decimal places using standard rounding criteria. The impact of rounding will vary with the size of the investment and the net asset value of the shares. Similarly, any contingent deferred sales charge paid by you on investments in Class A shares may be higher or lower than the 1% charge described below due to rounding. 18 International Growth and Income Fund / Retirement plan prospectus <PAGE> CLASS A SHARE PURCHASES NOT SUBJECT TO SALES CHARGES The following investments are not subject to any initial or contingent deferred sales charge if American Funds Service Company is properly notified of the nature of the investment: . investments made by accounts that are part of certain qualified fee-based programs and that purchased Class A shares before the discontinuation of your investment dealer's load-waived Class A share program with the American Funds; and . certain rollover investments from retirement plans to IRAs (see "Rollovers from retirement plans to IRAs" in this prospectus for more information). The distributor may pay dealers up to 1% on investments made in Class A shares with no initial sales charge. The fund may reimburse the distributor for these payments through its plans of distribution (see "Plans of distribution" in this prospectus). Certain other investors may qualify to purchase shares without a sales charge, such as employees of investment dealers and registered investment advisers authorized to sell American Funds and employees of The Capital Group Companies, Inc. Please see the statement of additional information for more information. EMPLOYER-SPONSORED RETIREMENT PLANS Employer-sponsored retirement plans that are eligible to purchase Class R shares may instead purchase Class A shares and pay the applicable Class A sales charge, provided that their recordkeepers can properly apply a sales charge on plan investments. These plans are not eligible to make initial purchases of $1 million or more in Class A shares and thereby invest in Class A shares without a sales charge, nor are they eligible to establish a statement of intention that qualifies them to purchase Class A shares without a sales charge. More information about statements of intention can be found under "Sales charge reductions" in this prospectus. Plans investing in Class A shares with a sales charge may purchase additional Class A shares in accordance with the sales charge table in this prospectus. Employer-sponsored retirement plans that invested in Class A shares without any sales charge before April 1, 2004, and that continue to meet the eligibility requirements in effect as of that date for purchasing Class A shares at net asset value, may continue to purchase Class A shares without any initial or contingent deferred sales charge. A 403(b) plan may not invest in Class A or C shares, unless it was invested in Class A or C shares before January 1, 2009. 19 International Growth and Income Fund / Retirement plan prospectus <PAGE> CLASS R SHARES Class R shares are sold without any initial or contingent deferred sales charge. The distributor will pay dealers annually asset-based compensation of up to 1.00% for sales of Class R-1 shares, up to .75% for Class R-2 shares, up to .50% for Class R-3 shares and up to .25% for Class R-4 shares. No dealer compensation is paid from fund assets on sales of Class R-5 or R-6 shares. The fund may reimburse the distributor for these payments through its plans of distribution (see "Plans of distribution" in this prospectus). 20 International Growth and Income Fund / Retirement plan prospectus <PAGE> Sales charge reductions TO RECEIVE A REDUCTION IN YOUR CLASS A INITIAL SALES CHARGE, YOU MUST LET YOUR FINANCIAL ADVISER OR AMERICAN FUNDS SERVICE COMPANY KNOW AT THE TIME YOU PURCHASE SHARES THAT YOU QUALIFY FOR SUCH A REDUCTION. IF YOU DO NOT LET YOUR ADVISER OR AMERICAN FUNDS SERVICE COMPANY KNOW THAT YOU ARE ELIGIBLE FOR A REDUCTION, YOU MAY NOT RECEIVE A SALES CHARGE DISCOUNT TO WHICH YOU ARE OTHERWISE ENTITLED. In order to determine your eligibility to receive a sales charge discount, it may be necessary for you to provide your adviser or American Funds Service Company with information and records (including account statements) of all relevant accounts invested in the American Funds. IN ADDITION TO THE INFORMATION IN THIS PROSPECTUS, YOU MAY OBTAIN MORE INFORMATION ABOUT SHARE CLASSES, SALES CHARGES AND SALES CHARGE REDUCTIONS THROUGH A LINK ON THE HOME PAGE OF THE AMERICAN FUNDS WEBSITE AT AMERICANFUNDS.COM, FROM THE STATEMENT OF ADDITIONAL INFORMATION OR FROM YOUR FINANCIAL ADVISER. REDUCING YOUR CLASS A INITIAL SALES CHARGE Consistent with the policies described in this prospectus, two or more retirement plans of an employer or employer's affiliates may combine all of their American Funds investments to reduce their Class A sales charge. Certain investments in the American Funds Target Date Retirement Series may also be combined for this purpose. Please see the American Funds Target Date Retirement Series prospectus for further information. However, for this purpose, investments representing direct purchases of American Funds Money Market Fund are excluded. Following are different ways that you may qualify for a reduced Class A sales charge: CONCURRENT PURCHASES Simultaneous purchases of any class of shares of two or more American Funds (excluding American Funds Money Market Fund) may be combined to qualify for a reduced Class A sales charge. RIGHTS OF ACCUMULATION You may take into account your accumulated holdings in all share classes of the American Funds (excluding American Funds Money Market Fund) to determine the initial sales charge you pay on each purchase of Class A shares. Subject to your investment dealer's or recordkeeper's capabilities, your accumulated holdings will be calculated as the higher of (a) the current value of your existing holdings (as of the day prior to your additional American Funds investment) or (b) the amount you invested (including reinvested dividends and capital gains, but excluding capital appreciation) less any withdrawals. Please see the statement of additional information for further details. You should retain any records necessary to substantiate the historical amounts you have invested. 21 International Growth and Income Fund / Retirement plan prospectus <PAGE> STATEMENT OF INTENTION You may reduce your Class A sales charge by establishing a statement of intention. A statement of intention allows you to combine all purchases of all share classes of the American Funds (excluding American Funds Money Market Fund) you intend to make over a 13-month period to determine the applicable sales charge; however, purchases made under a right of reinvestment, appreciation of your holdings, and reinvested dividends and capital gains do not count as purchases made during the statement period. The market value of your existing holdings eligible to be aggregated as of the day immediately before the start of the statement period may be credited toward satisfying the statement. A portion of your account may be held in escrow to cover additional Class A sales charges that may be due if your total purchases over the statement period do not qualify you for the applicable sales charge reduction. Employer-sponsored retirement plans may be restricted from establishing statements of intention. See "Sales charges" in this prospectus for more information. RIGHT OF REINVESTMENT If you notify American Funds Service Company, you may reinvest proceeds from a redemption, dividend payment or capital gain distribution without a sales charge in the same fund or other American Funds, provided that the reinvestment occurs within 90 days after the date of the redemption or distribution and is made into the same account from which you redeemed the shares or received the distribution. If the account has been closed, you may reinvest without a sales charge if the new receiving account has the same registration as the closed account. Proceeds will be reinvested in the same share class from which the original redemption or distribution was made. Redemption proceeds of Class A shares representing direct purchases in American Funds Money Market Fund that are reinvested in other American Funds will be subject to a sales charge. Proceeds will be reinvested at the next calculated net asset value after your request is received by American Funds Service Company, provided that your request contains all information and legal documentation necessary to process the transaction. For purposes of this "right of reinvestment policy," automatic transactions (including, for example, automatic purchases, withdrawals and payroll deductions) and ongoing retirement plan contributions are not eligible for investment without a sales charge. You may not reinvest proceeds in the American Funds as described in this paragraph if such proceeds are subject to a purchase block as described under "Frequent trading of fund shares" in this prospectus. This paragraph does not apply to certain rollover investments as described under "Rollovers from retirement plans to IRAs" in this prospectus. 22 International Growth and Income Fund / Retirement plan prospectus <PAGE> Rollovers from retirement plans to IRAs Assets from retirement plans may be invested in Class A, C or F shares through an IRA rollover, subject to the other provisions of this prospectus and the prospectus for nonretirement plan shareholders. Rollovers invested in Class A shares from retirement plans will be subject to applicable sales charges. The following rollovers to Class A shares will be made without a sales charge: . rollovers to IRAs from 403(b) plans with Capital Bank and Trust Company as custodian; and . rollovers to IRAs that are attributable to American Funds investments, if they meet the following requirements: -- the assets being rolled over were invested in American Funds at the time of distribution; and -- the rolled over assets are contributed to an American Funds IRA with Capital Bank and Trust Company as custodian. IRA rollover assets that roll over without a sales charge as described above will not be subject to a contingent deferred sales charge, and investment dealers will be compensated solely with an annual service fee that begins to accrue immediately. IRA rollover assets invested in Class A shares that are not attributable to American Funds investments, as well as future contributions to the IRA, will be subject to sales charges and the terms and conditions generally applicable to Class A share investments as described in this prospectus and the statement of additional information. Plans of distribution The fund has plans of distribution or "12b-1 plans" for certain share classes, under which it may finance activities primarily intended to sell shares, provided that the categories of expenses are approved in advance by the fund's board of trustees. The plans provide for payments, based on annualized percentages of average daily net assets, of up to .30% for Class A shares, up to 1.00% for Class R-1 and R-2 shares, up to .75% for Class R-3 shares and up to .50% for Class R-4 shares. For all share classes indicated above, up to .25% of these expenses may be used to pay service fees to qualified dealers for providing certain shareholder services. The amount remaining for each share class may be used for distribution expenses. The 12b-1 fees paid by the fund, as a percentage of average net assets for the previous fiscal year, are indicated in the Annual Fund Operating Expenses table under "Fees and expenses of the fund" in this prospectus. Since these fees are paid out of the fund's assets or income on an ongoing basis, over time they will increase the cost and reduce the return of your investment. 23 International Growth and Income Fund / Retirement plan prospectus <PAGE> Other compensation to dealers American Funds Distributors, at its expense, currently provides additional compensation to investment dealers. These payments may be made, at the discretion of American Funds Distributors, to the top 100 dealers (or their affiliates) that have sold shares of the American Funds. The level of payments made to a qualifying firm in any given year will vary and in no case would exceed the sum of (a) .10% of the previous year's American Funds sales by that dealer and (b) .02% of American Funds assets attributable to that dealer. For calendar year 2009, aggregate payments made by American Funds Distributors to dealers were less than .02% of the average assets of the American Funds. Aggregate payments may also change from year to year. A number of factors will be considered in determining payments, including the qualifying dealer's sales, assets and redemption rates, and the quality of the dealer's relationship with American Funds Distributors. American Funds Distributors makes these payments to help defray the costs incurred by qualifying dealers in connection with efforts to educate financial advisers about the American Funds so that they can make recommendations and provide services that are suitable and meet shareholder needs. American Funds Distributors will, on an annual basis, determine the advisability of continuing these payments. American Funds Distributors may also pay expenses associated with meetings conducted by dealers outside the top 100 firms to facilitate educating financial advisers and shareholders about the American Funds. If investment advisers, distributors or other affiliates of mutual funds pay additional compensation or other incentives in differing amounts, dealer firms and their advisers may have financial incentives for recommending a particular mutual fund over other mutual funds. You should consult with your financial adviser and review carefully any disclosure by your financial adviser's firm as to compensation received. 24 International Growth and Income Fund / Retirement plan prospectus <PAGE> Distributions and taxesDIVIDENDS AND DISTRIBUTIONS The fund intends to distribute dividends to you, usually in March, June, September and December. Capital gains, if any, are usually distributed in December. When a dividend or capital gain is distributed, the net asset value per share is reduced by the amount of the payment. All dividends and capital gain distributions paid to retirement plan shareholders will be automatically reinvested. TAXES ON DIVIDENDS AND DISTRIBUTIONS Dividends and capital gains distributed by the fund to tax-deferred retirement plan accounts are not currently taxable. TAXES ON TRANSACTIONS Exchanges within a tax-deferred retirement plan account will not result in a capital gain or loss for federal or state income tax purposes. With limited exceptions, distributions from a retirement plan account are taxable as ordinary income. PLEASE SEE YOUR TAX ADVISER FOR MORE INFORMATION. 25 International Growth and Income Fund / Retirement plan prospectus <PAGE> Financial highlights/1/ The Financial Highlights table is intended to help you understand the fund's results. Certain information reflects financial results for a single share of a particular class. The total returns in the table represent the rate that an investor would have earned or lost on an investment in the fund (assuming reinvestment of all dividends and capital gain distributions). Where indicated, figures in the table reflect the impact, if any, of certain reimbursements/waivers from Capital Research and Management Company. For more information about these reimbursements/ waivers, see the fund's statement of additional information and annual report. The information in the Financial Highlights table has been audited by Deloitte & Touche LLP, whose report, along with the fund's financial statements, is included in the statement of additional information, which is available upon request. INCOME FROM INVESTMENT OPERATIONS/2/ Net (losses) on securities Net asset (both Dividends value, Net realized Total from (from net Net asset beginning investment and investment investment value, end Total of period income unrealized) operations income) of period return/3,4/ --------------------------------------------------------------------------------------------------------------------------------- CLASS A: Period from 10/1/2008/5/ to 6/30/2009 $25.00 $.62 $(.39) $ .23 $(.45) $24.78 1.04% --------------------------------------------------------------------------------------------------------------------------------- CLASS R-1: Period from 10/1/2008/5/ to 6/30/2009 25.00 .45 (.34) .11 (.35) 24.76 .52 --------------------------------------------------------------------------------------------------------------------------------- CLASS R-2: Period from 10/1/2008/5/ to 6/30/2009 25.00 .54 (.44) .10 (.36) 24.74 .48 --------------------------------------------------------------------------------------------------------------------------------- CLASS R-3: Period from 10/1/2008/5/ to 6/30/2009 $25.00 $.61 $(.42) $ .19 $(.41) $24.78 .85% --------------------------------------------------------------------------------------------------------------------------------- CLASS R-4: Period from 10/1/2008/5/ to 6/30/2009 25.00 .61 (.37) .24 (.45) 24.79 1.09 --------------------------------------------------------------------------------------------------------------------------------- CLASS R-5: Period from 10/1/2008/5/ to 6/30/2009 25.00 .76 (.47) .29 (.43) 24.86 1.28 --------------------------------------------------------------------------------------------------------------------------------- CLASS R-6: Period from 5/1/2009/5/ to 6/30/2009 22.97 .25 1.90 2.15 (.34) 24.78 9.38 Ratio of Ratio of expenses expenses to average to average Ratio net assets net assets of net Net assets, before reim- after reim- income to end of period bursements/ bursements/ average (in millions) waivers waivers/4/ net assets/4/ ------------------------------------------------------------------------------------------------- CLASS A: Period from 10/1/2008/5/ to 6/30/2009 $1,424 1.11 %/6/ 1.06 %/6/ 3.73 %/6/ ------------------------------------------------------------------------------------------------- CLASS R-1: Period from 10/1/2008/5/ to 6/30/2009 2 1.82/6/ 1.77/6/ 2.68/6/ ------------------------------------------------------------------------------------------------- CLASS R-2: Period from 10/1/2008/5/ to 6/30/2009 3 1.88/6/ 1.78/6/ 3.22/6/ ------------------------------------------------------------------------------------------------- CLASS R-3: Period from 10/1/2008/5/ to 6/30/2009 $ 3 1.38 %/6/ 1.33 %/6/ 3.64 %/6/ ------------------------------------------------------------------------------------------------- CLASS R-4: Period from 10/1/2008/5/ to 6/30/2009 2 1.07/6/ 1.02/6/ 3.63/6/ ------------------------------------------------------------------------------------------------- CLASS R-5: Period from 10/1/2008/5/ to 6/30/2009 6 .81/6/ .78/6/ 4.65/6/ ------------------------------------------------------------------------------------------------- CLASS R-6: Period from 5/1/2009/5/ to 6/30/2009 64 .12 .12 1.01 26 International Growth and Income Fund / Retirement plan prospectus <PAGE> FOR THE PERIOD OCTOBER 1, 2008/5/ TO JUNE 30, 2009 -------------------------------------------------------------------------------------- PORTFOLIO TURNOVER RATE FOR ALL CLASSES 33% OF SHARES 1 Based on operations for the periods shown (unless otherwise noted) and, accordingly, may not be representative of a full year. 2 Based on average shares outstanding. 3 Total returns exclude any applicable sales charges. 4 This column reflects the impact, if any, of certain reimbursements/waivers from Capital Research and Management Company. During some of the periods shown, Capital Research and Management Company reduced fees for investment advisory services and reimbursed other fees and expenses. In addition, during some of the periods shown, Capital Research and Management Company paid a portion of the fund's transfer agent fees for certain retirement plan share classes. 5 Commencement of operations. 6 Annualized. 27 International Growth and Income Fund / Retirement plan prospectus <PAGE> NOTES 28 International Growth and Income Fund / Retirement plan prospectus <PAGE> NOTES 29 International Growth and Income Fund / Retirement plan prospectus <PAGE>[logo - American Funds /(R)/] The right choice for the long term/(R)/ FOR SHAREHOLDER American Funds Service Company SERVICES 800/421-0180 FOR RETIREMENT PLAN Call your employer or plan SERVICES administrator americanfunds.com FOR 24 For Class R share information, -HOUR INFORMATION visit AmericanFundsRetirement.com Telephone calls you have with American Funds may be monitored or recorded for quality assurance, verification and recordkeeping purposes. By speaking to American Funds on the telephone, you consent to such monitoring and recording. ----------------------------------------------------------------------------------- MULTIPLE TRANSLATIONS This prospectus may be translated into other languages. If there is any inconsistency or ambiguity in the meaning of any translated word or phrase, the English text will prevail. ANNUAL/SEMI-ANNUAL REPORT TO SHAREHOLDERS The shareholder reports contain additional information about the fund, including financial statements, investment results, portfolio holdings, a discussion of market conditions and the fund's investment strategies and the independent registered public accounting firm's report (in the annual report).STATEMENT OF ADDITIONAL INFORMATION (SAI) AND CODES OF ETHICS The current SAI, as amended from time to time, contains more detailed information about the fund, including the fund's financial statements, and is incorporated by reference into this prospectus. This means that the current SAI, for legal purposes, is part of this prospectus. The codes of ethics describe the personal investing policies adopted by the fund, the fund's investment adviser and its affiliated companies. The codes of ethics and current SAI are on file with the U.S. Securities and Exchange Commission (SEC). These and other related materials about the fund are available for review or to be copied at the SEC's Public Reference Room in Washington, D.C. (202/551-8090), on the EDGAR database on the SEC's website at sec.gov or, after payment of a duplicating fee, via e-mail request to publicinfo@sec.gov or by writing to the SEC's Public Reference Section, 100 F Street, NE, Washington, D.C. 20549-1520. The codes of ethics, current SAI and shareholder reports are also available, free of charge, on our website, americanfunds.com. E-DELIVERY AND HOUSEHOLD MAILINGS Each year you are automatically sent an updated summary prospectus and annual and semi-annual reports for the fund. You may also occasionally receive proxy statements for the fund. In order to reduce the volume of mail you receive, when possible, only one copy of these documents will be sent to shareholders who are part of the same family and share the same household address. You may elect to receive these documents electronically in lieu of paper form by enrolling in e-delivery on our website, americanfunds.com. If you would like to opt out of household-based mailings or receive a complimentary copy of the current SAI, codes of ethics or annual/semi-annual report to shareholders, please call American Funds Service Company at 800/421-0180 or write to the secretary of the fund at P.O. Box 7650, San Francisco, California 94120. SECURITIES INVESTOR PROTECTION CORPORATION (SIPC) Shareholders may obtain information about SIPC/(R)/ on its website at sipc.org or by calling 202/371-8300. Investment Company File No. 811-22215 RPGEPR-934-0310P Litho in USA CGD/CF/9971 ------------------------------------------------------------------------------- THE CAPITAL GROUP COMPANIES American Funds Capital Research and Management Capital International Capital Guardian Capital Bank and Trust THE FUND PROVIDES SPANISH TRANSLATION IN CONNECTION WITH THE PUBLIC OFFERING AND SALE OF ITS SHARES. THE FOLLOWING IS A FAIR AND ACCURATE ENGLISH TRANSLATION OF A SPANISH LANGUAGE PROSPECTUS FOR THE FUND. /s/ PATRICK F. QUAN PATRICK F. QUAN SECRETARY <PAGE> [logo - American Funds /(R)/] The right choice for the long term/(R)/ International Growth and Income Fund/SM/ CLASS TICKER R-3......... RGICX A........... IGAAX R-4......... RIGEX R-1......... RIGAX R-5......... RIGFX R-2......... RIGBX R-6......... RIGGX RETIREMENT PLAN PROSPECTUS March 1, 2010 TABLE OF CONTENTS 1 Investment objective 1 Fees and expenses of the fund 3 Principal investment strategies 3 Principal risks 4 Investment results 6 Management 6 Purchase and sale of fund shares 7 Tax information 7 Payments to broker-dealers and other financial intermediaries 8 Investment objective, strategies and risks 9 Additional investment results 10 Management and organization 13 Purchase, exchange and sale of shares 18 Sales charges 21 Sales charge reductions 23 Rollovers from retirement plans to IRAs 23 Plans of distribution 24 Other compensation to dealers 25 Distributions and taxes 26 Financial highlights THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED OF THESE SECURITIES. FURTHER, IT HAS NOT DETERMINED THAT THIS PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. <PAGE> [This page is intentionally left blank for this filing.] <PAGE> Investment objective The fund's investment objective is to provide you with long-term growth of capital while providing current income. Fees and expenses of the fund This table describes the fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for a Class A sales charge discount if you and your family invest, or agree to invest in the future, at least $25,000 in American Funds. More information about these and other discounts is available from your financial professional and in the "Sales charge reductions" section on page 21 of the retirement plan prospectus and in the "Sales charge reductions and waivers" section on page 54 of the fund's statement of additional information.SHAREHOLDER FEES (fees paid directly from your investment) ------------------------------------------------------------------------------ CLASS A ALL R SHARE CLASSES ------------------------------ Maximum sales charge (load) imposed on 5.75% none purchases (as a percentage of offering price) ------------------------------------------------------------------------------ Maximum deferred sales charge (load) none none (as a percentage of the amount redeemed) ------------------------------------------------------------------------------ Maximum sales charge (load) imposed none none on reinvested dividends ------------------------------------------------------------------------------ Redemption or exchange fees none none ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment) -----------------------------------------------SHARE CLASSES---------------------A-----R-1----R-2----R-3----R-4----R-5-----R-6-- ------------------------------------------------- Management fees 0.61% 0.61% 0.61% 0.61% 0.61% 0.61% 0.61% ------------------------------------------------------------------------------- Distribution and/or service 0.30 1.00 0.75 0.50 0.25 none none (12b-1) fees ------------------------------------------------------------------------------- Other expenses/*/ 0.20 0.21 0.52 0.27 0.21 0.20 0.15 ------------------------------------------------------------------------------- Total annual fund operating 1.11 1.82 1.88 1.38 1.07 0.81 0.76 expenses ------------------------------------------------------------------------------- 1 International Growth and Income Fund / Retirement plan prospectus <PAGE> EXAMPLE This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year, that all dividends and capital gain distributions are reinvested, and that the fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:SHARE CLASSES 1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------- A $682 $908 $1,151 $1,849 ------------------------------------------------------------------- R-1 185 573 985 2,137 ------------------------------------------------------------------- R-2 191 591 1,016 2,201 ------------------------------------------------------------------- R-3 140 437 755 1,657 ------------------------------------------------------------------- R-4 109 340 590 1,306 ------------------------------------------------------------------- R-5 83 259 450 1,002 ------------------------------------------------------------------- R-6 78 243 422 942 ------------------------------------------------------------------- * Based on estimated amounts for the current fiscal year. PORTFOLIO TURNOVER The fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund's performance. During the most recent fiscal year, the fund's portfolio turnover rate was 33% of the average value of its portfolio. The fund commenced operations on October 1, 2008; therefore, the stated portfolio turnover rate may not be representative of a full year. 2 International Growth and Income Fund / Retirement plan prospectus <PAGE> Principal investment strategies The fund invests primarily in stocks of larger, well-established companies domiciled outside the United States, including in developing countries. The fund currently intends to invest at least 90% of its assets in securities of issuers domiciled outside the United States and whose securities are primarily listed on exchanges outside the United States. The fund therefore expects to be invested in numerous countries outside the United States. The fund is designed for investors seeking both capital appreciation and income. In pursuing its objective, the fund will focus on stocks of companies with strong earnings that pay dividends. We believe that these stocks will be more resistant to market declines than stocks of companies that do not pay dividends. The fund relies on the professional judgment of its investment adviser to make decisions about the fund's portfolio investments. The basic investment philosophy of the investment adviser is to seek to invest in attractively valued companies that, in its opinion, represent above-average, long-term investment opportunities. The investment adviser believes that an important way to accomplish this is through fundamental analysis, which may include meeting with company executives and employees, suppliers, customers and competitors. Securities may be sold when the investment adviser believes that they no longer represent relatively attractive investment opportunities. The investment adviser uses a system of multiple portfolio counselors in managing the fund's assets. Under this approach, the portfolio of the fund is divided into segments managed by individual counselors who decide how their respective segments will be invested. Principal risks YOU MAY LOSE MONEY BY INVESTING IN THE FUND. THE LIKELIHOOD OF LOSS MAY BE GREATER IF YOU INVEST FOR A SHORTER PERIOD OF TIME. Investors in the fund should have a long-term perspective and, for example, be able to tolerate potentially sharp declines in value. The prices of, and the income generated by, the common stocks and other securities held by the fund may decline in response to certain events taking place around the world, including those directly involving the issuers whose securities are owned by the fund; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; governmental or governmental agency responses to economic conditions; and currency, interest rate and commodity price fluctuations. 3 International Growth and Income Fund / Retirement plan prospectus <PAGE> Investments in securities issued by entities based outside the United States may also be affected by currency controls; different accounting, auditing, financial reporting, disclosure, and regulatory and legal standards and practices; expropriation; changes in tax policy; greater market volatility; different securities market structures; higher transaction costs; and various administrative difficulties, such as delays in clearing and settling portfolio transactions or in receiving payment of dividends. These risks may be heightened in connection with investments in developing countries. Investments in securities issued by entities domiciled in the United States may also be subject to many of these risks. Your investment in the fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency, entity or person. Investment results The bar chart below shows how the fund's investment results have varied from year to year, and the table on page 5 shows how the fund's average annual total returns for various periods compare with different broad measures of market performance. This information provides some indication of the risks of investing in the fund. Past results (before and after taxes) are not predictive of future results. Updated information on the fund's results can be obtained by visiting americanfunds.com. CALENDAR YEAR TOTAL RETURNS FOR CLASS A SHARES (Results do not include a sales charge; if a sales charge were included, results would be lower.) [begin bar chart] 2009 35.29% [end bar chart] Highest/Lowest quarterly results during this time period were: HIGHEST 18.84% (quarter ended September 30, 2009) LOWEST -6.95% (quarter ended March 31, 2009) 4 International Growth and Income Fund / Retirement plan prospectus <PAGE>AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED DECEMBER 31, 2009 (WITH MAXIMUM SALES CHARGE): SHARE CLASS INCEPTION DATE 1 YEAR LIFETIME -------------------------------------------------------------------------- A 10/1/2008 27.51% 13.42% SHARE CLASS INCEPTION DATE 1 YEAR LIFETIME ------------------------------------------------------------------ R-1 10/1/2008 34.29% 18.07% ------------------------------------------------------------------ R-2 10/1/2008 34.28 18.06 ------------------------------------------------------------------ R-3 10/1/2008 34.89 18.60 ------------------------------------------------------------------ R-4 10/1/2008 35.32 18.97 ------------------------------------------------------------------ R-5 10/1/2008 35.66 19.28 INDEXES/1/ 1 YEAR LIFETIME/2/ ------------------------------------------------------------------------------- MSCI World ex USA Index (reflects no deductions for fees, expenses or 34.39% 4.09% taxes) Lipper International Funds Index 35.30 5.45 (reflects no deductions for fees or taxes) ------------------------------------------------------------------------------- Class A annualized 30-day yield at December 31, 2009: 2.59% (For current yield information, please call American FundsLine/(R)/ at 800/325-3590.) 1 MSCI World ex USA Index reflects the market sectors and securities in which the fund primarily invests. Lipper International Funds Index includes mutual funds that disclose investment objectives reasonably comparable to those of the fund. See page 9 of this prospectus for more information on the indexes listed above. 2 Lifetime results for the index(es) shown are measured from the date Class A shares were first sold. 5 International Growth and Income Fund / Retirement plan prospectus <PAGE>Management INVESTMENT ADVISER Capital Research and Management Company, the investment adviser to the fund, uses a system of multiple portfolio counselors in managing mutual fund assets. PORTFOLIO COUNSELORS The primary individual portfolio counselors for the fund are: PORTFOLIO COUNSELOR PRIMARY TITLE PORTFOLIO COUNSELOR/ EXPERIENCE WITH INVESTMENT ADVISER FUND TITLE (if applicable) IN THIS FUND (or one of its divisions) ------------------------------------------------------------------------------ STEVEN T. WATSON 1 year Senior Vice President - Vice Chairman of the Board (since the fund's Capital World Investors inception) ------------------------------------------------------------------------------ CARL M. KAWAJA 1 year Senior Vice President - President (since the fund's Capital World Investors inception) ------------------------------------------------------------------------------ ANDREW B. SUZMAN 1 year Senior Vice President - Senior Vice President (since the fund's Capital World Investors inception) ------------------------------------------------------------------------------ Purchase and sale of fund shares Eligible retirement plans generally may open an account and purchase Class A or R shares by contacting any investment dealer authorized to sell these classes of the fund's shares. Investment dealers may impose transaction charges in addition to those described in this prospectus. Please contact your plan administrator or recordkeeper in order to sell (redeem) shares from your retirement plan. 6 International Growth and Income Fund / Retirement plan prospectus <PAGE> Tax information Dividends and capital gains distributed by the fund to tax-deferred retirement plan accounts are not currently taxable. Payments to broker-dealers and other financial intermediaries If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and the fund's distributor or its affiliates may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your individual financial adviser to recommend the fund over another investment. Ask your individual financial adviser or visit your financial intermediary's website for more information. 7 International Growth and Income Fund / Retirement plan prospectus <PAGE> Investment objective, strategies and risks The fund's investment objective is to provide you with long-term growth of capital while providing current income. The fund will pursue this objective by investing primarily in stocks of larger, well-established companies domiciled outside the United States, including developing countries. The fund currently intends to invest at least 90% of its assets in securities of issuers domiciled outside the United States and whose securities are primarily listed on exchanges outside the United States. The fund therefore expects to be invested in numerous countries outside the United States. The fund is designed for investors seeking both capital appreciation and income. In pursuing its objective, the fund will focus on stocks of companies with strong earnings that pay dividends. We believe that these stocks will be more resistant to market declines than stocks of companies that do not pay dividends. Investors in the fund should have a long-term perspective and, for example, be able to tolerate potentially sharp declines in value. Your investment in the fund is subject to various risks. Consequently, the fund's income may decline and/or its portfolio holdings may lose value. Declines in dividends paid to the fund and in the values of certain stocks held by the fund could be in response to economic, political and/or social events taking place around the world. For example, increases in the prices of basic commodities, such as oil and grains, can negatively impact the values of certain companies. Further, changes in relationships among global currencies may trigger declines in the value of the fund's income and/or holdings. Investing in securities issued by entities based outside the United States may also be affected by currency controls, different accounting and legal standards, expropriation, tax policies, greater market volatility and various administrative difficulties. These risks may be heightened in connection with investments in developing countries. The fund's investment results will depend on the ability of the fund's investment adviser to navigate these risks. The fund may also hold cash or money market instruments. The percentage of the fund invested in such holdings varies and depends on various factors, including market conditions and purchases and redemptions of fund shares. For temporary defensive purposes, the fund may hold a significant portion of its assets in such securities. The investment adviser may determine that it is appropriate to take such action in response to certain circumstances, such as periods of market turmoil. A larger percentage of such holdings could limit the fund's ability to achieve its investment objective in a period of rising market prices. A larger percentage of cash or money market instruments could reduce the magnitude of the fund's loss in a period of falling market prices and provide liquidity to make additional investments or to meet redemptions. You should consider how this fund fits into your overall investment program. In addition to the principal investment strategies described above, the fund has other investment practices that are described in the statement of additional information. 8 International Growth and Income Fund / Retirement plan prospectus <PAGE> Additional investment results Unlike the table on page 5, the table below reflects the fund's results calculated without sales charges.AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED DECEMBER 31, 2009 (WITHOUT SALES CHARGE): SHARE CLASS INCEPTION DATE 1 YEAR LIFETIME ---------------------------------------------------------------------- A 10/1/2008 35.29% 18.95% SHARE CLASS INCEPTION DATE 1 YEAR LIFETIME ------------------------------------------------------------------ R-1 10/1/2008 34.29% 18.07% ------------------------------------------------------------------ R-2 10/1/2008 34.28 18.06 ------------------------------------------------------------------ R-3 10/1/2008 34.89 18.60 ------------------------------------------------------------------ R-4 10/1/2008 35.32 18.97 ------------------------------------------------------------------ R-5 10/1/2008 35.66 19.28 INDEXES/1/ 1 YEAR LIFETIME/2/ ------------------------------------------------------------------------------- MSCI World ex USA Index (reflects no deductions for fees, 34.39% 4.09% expenses or taxes) Lipper International Funds Index (reflects no deductions for fees or 35.30 5.45 taxes) Class A distribution rate at December 31, 2009: 2.35%/3/ (For current distribution rate information, please call American FundsLine at 800/325-3590.) 1 MSCI World ex USA Index reflects the market sectors and securities in which the fund primarily invests. Lipper International Funds Index includes mutual funds that disclose investment objectives reasonably comparable to those of the fund. 2 Lifetime results for the index(es) shown are measured from the date Class A shares were first sold. 3 Reflects a fee waiver (2.34% without the waiver) as described in the financial highlights table and the statement of additional information. The distribution rate is based on actual dividends paid to Class A shareholders over a 12-month period. Capital gain distributions, if any, are added back to net asset value to determine the rate. The investment results tables above and on page 5 show how the fund's average annual total returns compare with various broad measures of market performance. MSCI World ex USA Index is a free float-adjusted market capitalization weighted index that is designed to measure equity market performance of developed markets, excluding the United States. The index consists of more than 20 developed market country indexes. This index is unmanaged and its results include reinvested dividends and/or distributions, but do not reflect the effect of sales charges, commissions, expenses or taxes. Lipper International Funds Index is an equally weighted index of funds that invest assets in securities with primary trading markets outside the United States. The results of the underlying funds in the index include the reinvestment of dividends and capital gain distributions, as well as expenses and brokerage commissions paid by the funds for portfolio transactions, but do not reflect the effect of sales charges or taxes. All fund results reflected in the "Investment results" section of this prospectus and this "Additional investment results" section reflect the reinvestment of dividends and capital gain distributions, if any. Unless otherwise noted, fund results reflect any fee waivers and/or expense reimbursements in effect during the period presented. 9 International Growth and Income Fund / Retirement plan prospectus <PAGE> Management and organizationINVESTMENT ADVISER Capital Research and Management Company, an experienced investment management organization founded in 1931, serves as investment adviser to the fund and other funds, including the American Funds. Capital Research and Management Company is a wholly owned subsidiary of The Capital Group Companies, Inc. and is located at 333 South Hope Street, Los Angeles, California 90071, and 6455 Irvine Center Drive, Irvine, California 92618. Capital Research and Management Company manages the investment portfolio and business affairs of the fund. The total management fee to be paid by the fund for the current fiscal year, as a percentage of average net assets, appears in the Annual Fund Operating Expenses table under "Fees and expenses of the fund." Please see the statement of additional information for further details. A discussion regarding the basis for the approval of the fund's investment advisory and service agreement by the fund's board of trustees is contained in the fund's semi-annual report to shareholders for the fiscal period ended December 31, 2009. Capital Research and Management Company manages equity assets through two investment divisions, Capital World Investors and Capital Research Global Investors, and manages fixed-income assets through its Fixed Income division. Capital World Investors and Capital Research Global Investors make investment decisions on an independent basis. Rather than remain as investment divisions, Capital World Investors and Capital Research Global Investors may be incorporated into wholly owned subsidiaries of Capital Research and Management Company. In that event, Capital Research and Management Company would continue to be the investment adviser, and day-to-day investment management of equity assets would continue to be carried out through one or both of these subsidiaries. Capital Research and Management Company and each of the funds it advises have applied to the Securities and Exchange Commission for an exemptive order that would give Capital Research and Management Company the authority to use, upon approval of the fund's board, its management subsidiaries and affiliates to provide day-to-day investment management services to the fund, including making changes to the management subsidiaries and affiliates providing such services. Although not currently contemplated, Capital Research and Management Company could incorporate its fixed-income division in the future and engage it to provide day-to-day investment management of fixed-income assets. The fund's shareholders approved this arrangement at a meeting of the fund's shareholders on November 24, 2009. There is no assurance that Capital Research and Management Company will incorporate its investment divisions or exercise any authority, if granted, under an exemptive order. 10 International Growth and Income Fund / Retirement plan prospectus <PAGE> EXECUTION OF PORTFOLIO TRANSACTIONS The investment adviser places orders with broker-dealers for the fund's portfolio transactions. In selecting broker-dealers, the investment adviser strives to obtain "best execution" (the most favorable total price reasonably attainable under the circumstances) for the fund's portfolio transactions, taking into account a variety of factors. Subject to best execution, the investment adviser may consider investment research and/or brokerage services provided to the adviser in placing orders for the fund's portfolio transactions. The investment adviser may place orders for the fund's portfolio transactions with broker-dealers who have sold shares of funds managed by the investment adviser or its affiliated companies; however, it does not give consideration to whether a broker-dealer has sold shares of the funds managed by the investment adviser or its affiliated companies when placing any such orders for the fund's portfolio transactions. A more detailed description of the investment adviser's policies is included in the fund's statement of additional information. PORTFOLIO HOLDINGS Portfolio holdings information for the fund is available on the American Funds website at americanfunds.com. To reach this information, access the fund's detailed information page on the website. A list of the fund's top 10 equity holdings, updated as of each month-end, is generally posted to this page within 14 days after the end of the applicable month. A link to the fund's complete list of publicly disclosed portfolio holdings, updated as of each calendar quarter-end, is generally posted to this page within 45 days after the end of the applicable quarter. Both lists remain available on the website until new information for the next month or quarter is posted. Portfolio holdings information for the fund is also contained in reports filed with the U.S. Securities and Exchange Commission. A description of the fund's policies and procedures regarding disclosure of information about its portfolio holdings is available in the statement of additional information. 11 International Growth and Income Fund / Retirement plan prospectus <PAGE> MULTIPLE PORTFOLIO COUNSELOR SYSTEM Capital Research and Management Company uses a system of multiple portfolio counselors in managing mutual fund assets. Under this approach, the portfolio of a fund is divided into segments managed by individual counselors who decide how their respective segments will be invested. In addition, Capital Research and Management Company's investment analysts may make investment decisions with respect to a portion of a fund's portfolio. Investment decisions are subject to a fund's objective(s), policies and restrictions and the oversight of the appropriate investment-related committees of Capital Research and Management Company and its investment divisions. The table below shows the investment experience and role in management of the fund for each of the fund's primary portfolio counselors. ROLE IN INVESTMENT EXPERIENCE MANAGEMENT PORTFOLIO COUNSELOR EXPERIENCE IN THIS FUND OF THE FUND ---------------------------------------------------------------------------------------- STEVEN T. WATSON Investment 1 year Serves as an equity professional for 22 (since the fund's portfolio counselor years in total; inception) 20 years with Capital Research and Management Company or affiliate ---------------------------------------------------------------------------------------- CARL M. KAWAJA Investment 1 year Serves as an equity professional for 22 (since the fund's portfolio counselor years in total; inception) 19 years with Capital Research and Management Company or affiliate ---------------------------------------------------------------------------------------- ANDREW B. SUZMAN Investment 1 year Serves as an equity professional for 17 (since the fund's portfolio counselor years in total; all inception) with Capital Research and Management Company or affiliate ---------------------------------------------------------------------------------------- Information regarding the portfolio counselors' compensation, their ownership of securities in the fund and other accounts they manage is in the statement of additional information. CERTAIN PRIVILEGES AND/OR SERVICES DESCRIBED ON THE FOLLOWING PAGES OF THIS PROSPECTUS AND IN THE STATEMENT OF ADDITIONAL INFORMATION MAY NOT BE AVAILABLE TO YOU, DEPENDING ON YOUR INVESTMENT DEALER OR RETIREMENT PLAN RECORDKEEPER.PLEASE SEE YOUR FINANCIAL ADVISER, INVESTMENT DEALER OR RETIREMENT PLAN RECORDKEEPER FOR MORE INFORMATION. 12 International Growth and Income Fund / Retirement plan prospectus <PAGE> Purchase, exchange and sale of shares AMERICAN FUNDS SERVICE COMPANY, THE FUND'S TRANSFER AGENT, ON BEHALF OF THE FUND AND AMERICAN FUNDS DISTRIBUTORS,/(R)/ THE FUND'S DISTRIBUTOR, IS REQUIRED BY LAW TO OBTAIN CERTAIN PERSONAL INFORMATION FROM YOU OR ANY OTHER PERSON(S) ACTING ON YOUR BEHALF IN ORDER TO VERIFY YOUR OR SUCH PERSON'S IDENTITY. IF YOU DO NOT PROVIDE THE INFORMATION, THE TRANSFER AGENT MAY NOT BE ABLE TO OPEN YOUR ACCOUNT. IF THE TRANSFER AGENT IS UNABLE TO VERIFY YOUR IDENTITY OR THAT OF ANY OTHER PERSON(S) AUTHORIZED TO ACT ON YOUR BEHALF, OR BELIEVES IT HAS IDENTIFIED POTENTIALLY CRIMINAL ACTIVITY, THE FUND AND AMERICAN FUNDS DISTRIBUTORS RESERVE THE RIGHT TO CLOSE YOUR ACCOUNT OR TAKE SUCH OTHER ACTION THEY DEEM REASONABLE OR REQUIRED BY LAW. PURCHASES AND EXCHANGES Eligible retirement plans generally may open an account and purchase Class A or R shares by contacting any investment dealer (who may impose transaction charges in addition to those described in this prospectus) authorized to sell these classes of the fund's shares. Some or all R share classes may not be available through certain investment dealers. Additional shares may be purchased through a plan's administrator or recordkeeper. Class A shares are generally not available for retirement plans using the PlanPremier/(R)/ or Recordkeeper Direct/(R)/ recordkeeping programs. Class R shares are generally available only to 401(k) plans, 457 plans, 403(b) plans, profit-sharing and money purchase pension plans, defined benefit plans and nonqualified deferred compensation plans. Class R shares also are generally available only to retirement plans where plan level or omnibus accounts are held on the books of the fund. Class R-5 and R-6 shares are generally available only to fee-based programs or through retirement plan intermediaries. In addition, Class R-6 shares are available for investment by American Funds Target Date Retirement Series/(R)/,and Class R-5 shares are available to other registered investment companies approved by the fund. Class R shares generally are not available to retail nonretirement accounts, traditional and Roth individual retirement accounts (IRAs), Coverdell Education Savings Accounts, SEPs, SARSEPs, SIMPLE IRAs and 529 college savings plans. Shares of the fund offered through this prospectus generally may be exchanged into shares of the same class of other American Funds. Exchanges of Class A shares from American Funds Money Market Fund/SM/ purchased without a sales charge generally will be subject to the appropriate sales charge. 13 International Growth and Income Fund / Retirement plan prospectus <PAGE> FREQUENT TRADING OF FUND SHARES The fund and American Funds Distributors reserve the right to reject any purchase order for any reason. The fund is not designed to serve as a vehicle for frequent trading. Frequent trading of fund shares may lead to increased costs to the fund and less efficient management of the fund's portfolio, potentially resulting in dilution of the value of the shares held by long-term shareholders. Accordingly, purchases, including those that are part of exchange activity that the fund or American Funds Distributors has determined could involve actual or potential harm to the fund, may be rejected. The fund, through its transfer agent, American Funds Service Company, maintains surveillance procedures that are designed to detect frequent trading in fund shares. Under these procedures, various analytics are used to evaluate factors that may be indicative of frequent trading. For example, transactions in fund shares that exceed certain monetary thresholds may be scrutinized. American Funds Service Company also may review transactions that occur close in time to other transactions in the same account or in multiple accounts under common ownership or influence. Trading activity that is identified through these procedures or as a result of any other information available to the fund will be evaluated to determine whether such activity might constitute frequent trading. These procedures may be modified from time to time as appropriate to improve the detection of frequent trading, to facilitate monitoring for frequent trading in particular retirement plans or other accounts, and to comply with applicable laws. In addition to the fund's broad ability to restrict potentially harmful trading as described above, the fund's board of trustees has adopted a "purchase blocking policy" under which any shareholder redeeming shares having a value of $5,000 or more from the fund will be precluded from investing in the fund for 30 calendar days after the redemption transaction. This policy also applies to redemptions and purchases that are part of exchange transactions. Under the fund's purchase blocking policy, certain purchases will not be prevented and certain redemptions will not trigger a purchase block, such as purchases and redemptions of shares having a value of less than $5,000; transactions in Class 529 shares; purchases and redemptions resulting from reallocations by American Funds Target Date Retirement Series; retirement plan contributions, loans and distributions (including hardship withdrawals) identified as such on the retirement plan recordkeeper's system; purchase transactions involving transfers of assets, rollovers, Roth IRA conversions and IRA recharacterizations, where the entity maintaining the shareholder account is able to identify the transaction as one of these types of transactions; and systematic redemptions and purchases, where the entity maintaining the shareholder account is able to identify the transaction as a systematic redemption or purchase. Generally, purchases and redemptions will not be considered "systematic" unless the transaction is pre-scheduled for a specific date. 14 International Growth and Income Fund / Retirement plan prospectus <PAGE> The fund reserves the right to waive the purchase blocking policy with respect to specific shareholder accounts in those instances where American Funds Service Company determines that its surveillance procedures are adequate to detect frequent trading in fund shares. American Funds Service Company will work with certain intermediaries (such as investment dealers holding shareholder accounts in street name, retirement plan recordkeepers, insurance company separate accounts and bank trust companies) to apply their own procedures, provided that American Funds Service Company believes the intermediary's procedures are reasonably designed to enforce the frequent trading policies of the fund. You should refer to disclosures provided by the intermediaries with which you have an account to determine the specific trading restrictions that apply to you. If American Funds Service Company identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary and request that the intermediary either provide information regarding an account owner's transactions or restrict the account owner's trading. If American Funds Service Company is not satisfied that the intermediary has taken appropriate action, American Funds Service Company may terminate the intermediary's ability to transact in fund shares. There is no guarantee that all instances of frequent trading in fund shares will be prevented. NOTWITHSTANDING THE FUND'S SURVEILLANCE PROCEDURES AND PURCHASE BLOCKING POLICY, ALL TRANSACTIONS IN FUND SHARES REMAIN SUBJECT TO THE RIGHT OF THE FUND AND AMERICAN FUNDS DISTRIBUTORS TO RESTRICT POTENTIALLY ABUSIVE TRADING GENERALLY (INCLUDING THE TYPES OF TRANSACTIONS DESCRIBED ABOVE THAT WILL NOT BE PREVENTED OR TRIGGER A BLOCK UNDER THE PURCHASE BLOCKING POLICY). SEE THE STATEMENT OF ADDITIONAL INFORMATION FOR MORE INFORMATION ABOUT HOW AMERICAN FUNDS SERVICE COMPANY MAY ADDRESS OTHER POTENTIALLY ABUSIVE TRADING ACTIVITY IN THE AMERICAN FUNDS. 15 International Growth and Income Fund / Retirement plan prospectus <PAGE> VALUING SHARES The net asset value of each share class of the fund is the value of a single share. The fund calculates the net asset value each day the New York Stock Exchange is open for trading as of approximately 4 p.m. New York time, the normal close of regular trading. Assets are valued primarily on the basis of market quotations. However, the fund has adopted procedures for making "fair value" determinations if market quotations are not readily available or are not considered reliable. For example, if events occur between the close of markets outside the United States and the close of regular trading on the New York Stock Exchange that, in the opinion of the investment adviser, materially affect the value of any of the fund's securities that principally trade in those international markets, those securities will be valued in accordance with fair value procedures. Use of these procedures is intended to result in more appropriate net asset values. In addition, such use will reduce, if not eliminate, potential arbitrage opportunities otherwise available to short-term investors. Because the fund may hold securities that are primarily listed on foreign exchanges that trade on weekends or days when the fund does not price its shares, the values of securities held in the fund may change on days when you will not be able to purchase or redeem fund shares. Your shares will be purchased at the net asset value (plus any applicable sales charge in the case of Class A shares) or sold at the net asset value next determined after American Funds Service Company receives your request, provided that your request contains all information and legal documentation necessary to process the transaction. MOVING BETWEEN SHARE CLASSES AND ACCOUNTS Please see the statement of additional information for details and limitations on moving investments in certain share classes to different share classes and on moving investments held in certain accounts to different accounts. 16 International Growth and Income Fund / Retirement plan prospectus <PAGE> FUND EXPENSES In periods of market volatility, assets of the fund may decline significantly, causing total annual fund operating expenses (as a percentage of the value of your investment) to become higher than the numbers shown in the Annual Fund Operating Expenses table in this prospectus. The "Other expenses" items in the table on page 1 include custodial, legal, transfer agent and subtransfer agent/recordkeeping payments, as well as various other expenses. Subtransfer agent/recordkeeping payments may be made to the fund's investment adviser, affiliates of the adviser and unaffiliated third parties for providing recordkeeping and other administrative services to retirement plans invested in the fund in lieu of the transfer agent providing such services. The amount paid for subtransfer agent/recordkeeping services will vary depending on the share class selected and the entity receiving the payments. The table below shows the maximum payments to entities providing these services to retirement plans. PAYMENTS TO UNAFFILIATED PAYMENTS TO AFFILIATED ENTITIES ENTITIES ------------------------------------------------------------------------------- Class A .05% of assets or .05% of assets or $12 per participant position/1/ $12 per participant position/1/ ------------------------------------------------------------------------------- Class R-1 .10% of assets .10% of assets ------------------------------------------------------------------------------- Class R-2 .15% of assets plus $27 per .25% of assets participant position/2/ or .35% of assets/3/ ------------------------------------------------------------------------------- Class R-3 .10% of assets plus $12 per .15% of assets participant position/2/ or .19% of assets/3/ Class R-4 .10% of assets .10% of assets ------------------------------------------------------------------------------- Class R-5 .05% of assets .05% of assets ------------------------------------------------------------------------------- Class R-6 none none ------------------------------------------------------------------------------- 1 Payment amount depends on the date upon which services commenced. 2 Payment with respect to Recordkeeper Direct program. 3 Payment with respect to PlanPremier program. 17 International Growth and Income Fund / Retirement plan prospectus <PAGE> Sales charges CLASS A SHARES The initial sales charge you pay each time you buy Class A shares differs depending upon the amount you invest and may be reduced or eliminated for larger purchases as indicated below. The "offering price," the price you pay to buy shares, includes any applicable sales charge, which will be deducted directly from your investment. Shares acquired through reinvestment of dividends or capital gain distributions are not subject to an initial sales charge.SALES CHARGE AS A PERCENTAGE OF: DEALER NET COMMISSION OFFERING AMOUNT AS A PERCENTAGE INVESTMENT PRICE INVESTED OF OFFERING PRICE ------------------------------------------------------------------------------ Less than $25,000 5.75% 6.10% 5.00% ------------------------------------------------------------------------------ $25,000 but less than $50,000 5.00 5.26 4.25 ------------------------------------------------------------------------------ $50,000 but less than $100,000 4.50 4.71 3.75 ------------------------------------------------------------------------------ $100,000 but less than $250,000 3.50 3.63 2.75 ------------------------------------------------------------------------------ $250,000 but less than $500,000 2.50 2.56 2.00 ------------------------------------------------------------------------------ $500,000 but less than $750,000 2.00 2.04 1.60 ------------------------------------------------------------------------------ $750,000 but less than $1 million 1.50 1.52 1.20 ------------------------------------------------------------------------------ $1 million or more and certain other none none see below investments described below ------------------------------------------------------------------------------ The sales charge, expressed as a percentage of the offering price or the net amount invested, may be higher or lower than the percentages described in the table above due to rounding. This is because the dollar amount of the sales charge is determined by subtracting the net asset value of the shares purchased from the offering price, which is calculated to two decimal places using standard rounding criteria. The impact of rounding will vary with the size of the investment and the net asset value of the shares. Similarly, any contingent deferred sales charge paid by you on investments in Class A shares may be higher or lower than the 1% charge described below due to rounding. 18 International Growth and Income Fund / Retirement plan prospectus <PAGE> CLASS A SHARE PURCHASES NOT SUBJECT TO SALES CHARGES The following investments are not subject to any initial or contingent deferred sales charge if American Funds Service Company is properly notified of the nature of the investment: . investments made by accounts that are part of certain qualified fee-based programs and that purchased Class A shares before the discontinuation of your investment dealer's load-waived Class A share program with the American Funds; and . certain rollover investments from retirement plans to IRAs (see "Rollovers from retirement plans to IRAs" in this prospectus for more information). The distributor may pay dealers up to 1% on investments made in Class A shares with no initial sales charge. The fund may reimburse the distributor for these payments through its plans of distribution (see "Plans of distribution" in this prospectus). Certain other investors may qualify to purchase shares without a sales charge, such as employees of investment dealers and registered investment advisers authorized to sell American Funds and employees of The Capital Group Companies, Inc. Please see the statement of additional information for more information. EMPLOYER-SPONSORED RETIREMENT PLANS Employer-sponsored retirement plans that are eligible to purchase Class R shares may instead purchase Class A shares and pay the applicable Class A sales charge, provided that their recordkeepers can properly apply a sales charge on plan investments. These plans are not eligible to make initial purchases of $1 million or more in Class A shares and thereby invest in Class A shares without a sales charge, nor are they eligible to establish a statement of intention that qualifies them to purchase Class A shares without a sales charge. More information about statements of intention can be found under "Sales charge reductions" in this prospectus. Plans investing in Class A shares with a sales charge may purchase additional Class A shares in accordance with the sales charge table in this prospectus. Employer-sponsored retirement plans that invested in Class A shares without any sales charge before April 1, 2004, and that continue to meet the eligibility requirements in effect as of that date for purchasing Class A shares at net asset value, may continue to purchase Class A shares without any initial or contingent deferred sales charge. A 403(b) plan may not invest in Class A or C shares, unless it was invested in Class A or C shares before January 1, 2009. 19 International Growth and Income Fund / Retirement plan prospectus <PAGE> CLASS R SHARES Class R shares are sold without any initial or contingent deferred sales charge. The distributor will pay dealers annually asset-based compensation of up to 1.00% for sales of Class R-1 shares, up to .75% for Class R-2 shares, up to .50% for Class R-3 shares and up to .25% for Class R-4 shares. No dealer compensation is paid from fund assets on sales of Class R-5 or R-6 shares. The fund may reimburse the distributor for these payments through its plans of distribution (see "Plans of distribution" in this prospectus). 20 International Growth and Income Fund / Retirement plan prospectus <PAGE> Sales charge reductions TO RECEIVE A REDUCTION IN YOUR CLASS A INITIAL SALES CHARGE, YOU MUST LET YOUR FINANCIAL ADVISER OR AMERICAN FUNDS SERVICE COMPANY KNOW AT THE TIME YOU PURCHASE SHARES THAT YOU QUALIFY FOR SUCH A REDUCTION. IF YOU DO NOT LET YOUR ADVISER OR AMERICAN FUNDS SERVICE COMPANY KNOW THAT YOU ARE ELIGIBLE FOR A REDUCTION, YOU MAY NOT RECEIVE A SALES CHARGE DISCOUNT TO WHICH YOU ARE OTHERWISE ENTITLED. In order to determine your eligibility to receive a sales charge discount, it may be necessary for you to provide your adviser or American Funds Service Company with information and records (including account statements) of all relevant accounts invested in the American Funds. IN ADDITION TO THE INFORMATION IN THIS PROSPECTUS, YOU MAY OBTAIN MORE INFORMATION ABOUT SHARE CLASSES, SALES CHARGES AND SALES CHARGE REDUCTIONS THROUGH A LINK ON THE HOME PAGE OF THE AMERICAN FUNDS WEBSITE AT AMERICANFUNDS.COM, FROM THE STATEMENT OF ADDITIONAL INFORMATION OR FROM YOUR FINANCIAL ADVISER. REDUCING YOUR CLASS A INITIAL SALES CHARGE Consistent with the policies described in this prospectus, two or more retirement plans of an employer or employer's affiliates may combine all of their American Funds investments to reduce their Class A sales charge. Certain investments in the American Funds Target Date Retirement Series may also be combined for this purpose. Please see the American Funds Target Date Retirement Series prospectus for further information. However, for this purpose, investments representing direct purchases of American Funds Money Market Fund are excluded. Following are different ways that you may qualify for a reduced Class A sales charge: CONCURRENT PURCHASES Simultaneous purchases of any class of shares of two or more American Funds (excluding American Funds Money Market Fund) may be combined to qualify for a reduced Class A sales charge. RIGHTS OF ACCUMULATION You may take into account your accumulated holdings in all share classes of the American Funds (excluding American Funds Money Market Fund) to determine the initial sales charge you pay on each purchase of Class A shares. Subject to your investment dealer's or recordkeeper's capabilities, your accumulated holdings will be calculated as the higher of (a) the current value of your existing holdings (as of the day prior to your additional American Funds investment) or (b) the amount you invested (including reinvested dividends and capital gains, but excluding capital appreciation) less any withdrawals. Please see the statement of additional information for further details. You should retain any records necessary to substantiate the historical amounts you have invested. 21 International Growth and Income Fund / Retirement plan prospectus <PAGE> STATEMENT OF INTENTION You may reduce your Class A sales charge by establishing a statement of intention. A statement of intention allows you to combine all purchases of all share classes of the American Funds (excluding American Funds Money Market Fund) you intend to make over a 13-month period to determine the applicable sales charge; however, purchases made under a right of reinvestment, appreciation of your holdings, and reinvested dividends and capital gains do not count as purchases made during the statement period. The market value of your existing holdings eligible to be aggregated as of the day immediately before the start of the statement period may be credited toward satisfying the statement. A portion of your account may be held in escrow to cover additional Class A sales charges that may be due if your total purchases over the statement period do not qualify you for the applicable sales charge reduction. Employer-sponsored retirement plans may be restricted from establishing statements of intention. See "Sales charges" in this prospectus for more information. RIGHT OF REINVESTMENT If you notify American Funds Service Company, you may reinvest proceeds from a redemption, dividend payment or capital gain distribution without a sales charge in the same fund or other American Funds, provided that the reinvestment occurs within 90 days after the date of the redemption or distribution and is made into the same account from which you redeemed the shares or received the distribution. If the account has been closed, you may reinvest without a sales charge if the new receiving account has the same registration as the closed account. Proceeds will be reinvested in the same share class from which the original redemption or distribution was made. Redemption proceeds of Class A shares representing direct purchases in American Funds Money Market Fund that are reinvested in other American Funds will be subject to a sales charge. Proceeds will be reinvested at the next calculated net asset value after your request is received by American Funds Service Company, provided that your request contains all information and legal documentation necessary to process the transaction. For purposes of this "right of reinvestment policy," automatic transactions (including, for example, automatic purchases, withdrawals and payroll deductions) and ongoing retirement plan contributions are not eligible for investment without a sales charge. You may not reinvest proceeds in the American Funds as described in this paragraph if such proceeds are subject to a purchase block as described under "Frequent trading of fund shares" in this prospectus. This paragraph does not apply to certain rollover investments as described under "Rollovers from retirement plans to IRAs" in this prospectus. 22 International Growth and Income Fund / Retirement plan prospectus <PAGE> Rollovers from retirement plans to IRAs Assets from retirement plans may be invested in Class A, C or F shares through an IRA rollover, subject to the other provisions of this prospectus and the prospectus for nonretirement plan shareholders. Rollovers invested in Class A shares from retirement plans will be subject to applicable sales charges. The following rollovers to Class A shares will be made without a sales charge: . rollovers to IRAs from 403(b) plans with Capital Bank and Trust Company as custodian; and . rollovers to IRAs that are attributable to American Funds investments, if they meet the following requirements: -- the assets being rolled over were invested in American Funds at the time of distribution; and -- the rolled over assets are contributed to an American Funds IRA with Capital Bank and Trust Company as custodian. IRA rollover assets that roll over without a sales charge as described above will not be subject to a contingent deferred sales charge, and investment dealers will be compensated solely with an annual service fee that begins to accrue immediately. IRA rollover assets invested in Class A shares that are not attributable to American Funds investments, as well as future contributions to the IRA, will be subject to sales charges and the terms and conditions generally applicable to Class A share investments as described in this prospectus and the statement of additional information. Plans of distribution The fund has plans of distribution or "12b-1 plans" for certain share classes, under which it may finance activities primarily intended to sell shares, provided that the categories of expenses are approved in advance by the fund's board of trustees. The plans provide for payments, based on annualized percentages of average daily net assets, of up to .30% for Class A shares, up to 1.00% for Class R-1 and R-2 shares, up to .75% for Class R-3 shares and up to .50% for Class R-4 shares. For all share classes indicated above, up to .25% of these expenses may be used to pay service fees to qualified dealers for providing certain shareholder services. The amount remaining for each share class may be used for distribution expenses. The 12b-1 fees paid by the fund, as a percentage of average net assets for the previous fiscal year, are indicated in the Annual Fund Operating Expenses table under "Fees and expenses of the fund" in this prospectus. Since these fees are paid out of the fund's assets or income on an ongoing basis, over time they will increase the cost and reduce the return of your investment. 23 International Growth and Income Fund / Retirement plan prospectus <PAGE> Other compensation to dealers American Funds Distributors, at its expense, currently provides additional compensation to investment dealers. These payments may be made, at the discretion of American Funds Distributors, to the top 100 dealers (or their affiliates) that have sold shares of the American Funds. The level of payments made to a qualifying firm in any given year will vary and in no case would exceed the sum of (a) .10% of the previous year's American Funds sales by that dealer and (b) .02% of American Funds assets attributable to that dealer. For calendar year 2009, aggregate payments made by American Funds Distributors to dealers were less than .02% of the average assets of the American Funds. Aggregate payments may also change from year to year. A number of factors will be considered in determining payments, including the qualifying dealer's sales, assets and redemption rates, and the quality of the dealer's relationship with American Funds Distributors. American Funds Distributors makes these payments to help defray the costs incurred by qualifying dealers in connection with efforts to educate financial advisers about the American Funds so that they can make recommendations and provide services that are suitable and meet shareholder needs. American Funds Distributors will, on an annual basis, determine the advisability of continuing these payments. American Funds Distributors may also pay expenses associated with meetings conducted by dealers outside the top 100 firms to facilitate educating financial advisers and shareholders about the American Funds. If investment advisers, distributors or other affiliates of mutual funds pay additional compensation or other incentives in differing amounts, dealer firms and their advisers may have financial incentives for recommending a particular mutual fund over other mutual funds. You should consult with your financial adviser and review carefully any disclosure by your financial adviser's firm as to compensation received. 24 International Growth and Income Fund / Retirement plan prospectus <PAGE> Distributions and taxesDIVIDENDS AND DISTRIBUTIONS The fund intends to distribute dividends to you, usually in March, June, September and December. Capital gains, if any, are usually distributed in December. When a dividend or capital gain is distributed, the net asset value per share is reduced by the amount of the payment. All dividends and capital gain distributions paid to retirement plan shareholders will be automatically reinvested. TAXES ON DIVIDENDS AND DISTRIBUTIONS Dividends and capital gains distributed by the fund to tax-deferred retirement plan accounts are not currently taxable. TAXES ON TRANSACTIONS Exchanges within a tax-deferred retirement plan account will not result in a capital gain or loss for federal or state income tax purposes. With limited exceptions, distributions from a retirement plan account are taxable as ordinary income. PLEASE SEE YOUR TAX ADVISER FOR MORE INFORMATION. 25 International Growth and Income Fund / Retirement plan prospectus <PAGE> Financial highlights/1/ The Financial Highlights table is intended to help you understand the fund's results. Certain information reflects financial results for a single share of a particular class. The total returns in the table represent the rate that an investor would have earned or lost on an investment in the fund (assuming reinvestment of all dividends and capital gain distributions). Where indicated, figures in the table reflect the impact, if any, of certain reimbursements/waivers from Capital Research and Management Company. For more information about these reimbursements/ waivers, see the fund's statement of additional information and annual report. The information in the Financial Highlights table has been audited by Deloitte & Touche LLP, whose report, along with the fund's financial statements, is included in the statement of additional information, which is available upon request. INCOME FROM INVESTMENT OPERATIONS/2/ Net (losses) on securities Net asset (both Dividends value, Net realized Total from (from net Net asset beginning investment and investment investment value, end Total of period income unrealized) operations income) of period return/3,4/ --------------------------------------------------------------------------------------------------------------------------------- CLASS A: Period from 10/1/2008/5/ to 6/30/2009 $25.00 $.62 $(.39) $ .23 $(.45) $24.78 1.04% --------------------------------------------------------------------------------------------------------------------------------- CLASS R-1: Period from 10/1/2008/5/ to 6/30/2009 25.00 .45 (.34) .11 (.35) 24.76 .52 --------------------------------------------------------------------------------------------------------------------------------- CLASS R-2: Period from 10/1/2008/5/ to 6/30/2009 25.00 .54 (.44) .10 (.36) 24.74 .48 --------------------------------------------------------------------------------------------------------------------------------- CLASS R-3: Period from 10/1/2008/5/ to 6/30/2009 $25.00 $.61 $(.42) $ .19 $(.41) $24.78 .85% --------------------------------------------------------------------------------------------------------------------------------- CLASS R-4: Period from 10/1/2008/5/ to 6/30/2009 25.00 .61 (.37) .24 (.45) 24.79 1.09 --------------------------------------------------------------------------------------------------------------------------------- CLASS R-5: Period from 10/1/2008/5/ to 6/30/2009 25.00 .76 (.47) .29 (.43) 24.86 1.28 --------------------------------------------------------------------------------------------------------------------------------- CLASS R-6: Period from 5/1/2009/5/ to 6/30/2009 22.97 .25 1.90 2.15 (.34) 24.78 9.38 Ratio of Ratio of expenses expenses to average to average Ratio net assets net assets of net Net assets, before reim- after reim- income to end of period bursements/ bursements/ average (in millions) waivers waivers/4/ net assets/4/ ------------------------------------------------------------------------------------------------- CLASS A: Period from 10/1/2008/5/ to 6/30/2009 $1,424 1.11 %/6/ 1.06 %/6/ 3.73 %/6/ ------------------------------------------------------------------------------------------------- CLASS R-1: Period from 10/1/2008/5/ to 6/30/2009 2 1.82/6/ 1.77/6/ 2.68/6/ ------------------------------------------------------------------------------------------------- CLASS R-2: Period from 10/1/2008/5/ to 6/30/2009 3 1.88/6/ 1.78/6/ 3.22/6/ ------------------------------------------------------------------------------------------------- CLASS R-3: Period from 10/1/2008/5/ to 6/30/2009 $ 3 1.38 %/6/ 1.33 %/6/ 3.64 %/6/ ------------------------------------------------------------------------------------------------- CLASS R-4: Period from 10/1/2008/5/ to 6/30/2009 2 1.07/6/ 1.02/6/ 3.63/6/ ------------------------------------------------------------------------------------------------- CLASS R-5: Period from 10/1/2008/5/ to 6/30/2009 6 .81/6/ .78/6/ 4.65/6/ ------------------------------------------------------------------------------------------------- CLASS R-6: Period from 5/1/2009/5/ to 6/30/2009 64 .12 .12 1.01 26 International Growth and Income Fund / Retirement plan prospectus <PAGE> FOR THE PERIOD OCTOBER 1, 2008/5/ TO JUNE 30, 2009 -------------------------------------------------------------------------------------- PORTFOLIO TURNOVER RATE FOR ALL CLASSES 33% OF SHARES 1 Based on operations for the periods shown (unless otherwise noted) and, accordingly, may not be representative of a full year. 2 Based on average shares outstanding. 3 Total returns exclude any applicable sales charges. 4 This column reflects the impact, if any, of certain reimbursements/waivers from Capital Research and Management Company. During some of the periods shown, Capital Research and Management Company reduced fees for investment advisory services and reimbursed other fees and expenses. In addition, during some of the periods shown, Capital Research and Management Company paid a portion of the fund's transfer agent fees for certain retirement plan share classes. 5 Commencement of operations. 6 Annualized. 27 International Growth and Income Fund / Retirement plan prospectus <PAGE> NOTES 28 International Growth and Income Fund / Retirement plan prospectus <PAGE> NOTES 29 International Growth and Income Fund / Retirement plan prospectus <PAGE>[logo - American Funds /(R)/] The right choice for the long term/(R)/ FOR SHAREHOLDER American Funds Service Company SERVICES 800/421-0180 FOR RETIREMENT PLAN Call your employer or plan SERVICES administrator americanfunds.com FOR 24 For Class R share information, -HOUR INFORMATION visit AmericanFundsRetirement.com Telephone calls you have with American Funds may be monitored or recorded for quality assurance, verification and recordkeeping purposes. By speaking to American Funds on the telephone, you consent to such monitoring and recording. ----------------------------------------------------------------------------------- MULTIPLE TRANSLATIONS This prospectus may be translated into other languages. If there is any inconsistency or ambiguity in the meaning of any translated word or phrase, the English text will prevail. ANNUAL/SEMI-ANNUAL REPORT TO SHAREHOLDERS The shareholder reports contain additional information about the fund, including financial statements, investment results, portfolio holdings, a discussion of market conditions and the fund's investment strategies and the independent registered public accounting firm's report (in the annual report).STATEMENT OF ADDITIONAL INFORMATION (SAI) AND CODES OF ETHICS The current SAI, as amended from time to time, contains more detailed information about the fund, including the fund's financial statements, and is incorporated by reference into this prospectus. This means that the current SAI, for legal purposes, is part of this prospectus. The codes of ethics describe the personal investing policies adopted by the fund, the fund's investment adviser and its affiliated companies. The codes of ethics and current SAI are on file with the U.S. Securities and Exchange Commission (SEC). These and other related materials about the fund are available for review or to be copied at the SEC's Public Reference Room in Washington, D.C. (202/551-8090), on the EDGAR database on the SEC's website at sec.gov or, after payment of a duplicating fee, via e-mail request to publicinfo@sec.gov or by writing to the SEC's Public Reference Section, 100 F Street, NE, Washington, D.C. 20549-1520. The codes of ethics, current SAI and shareholder reports are also available, free of charge, on our website, americanfunds.com. E-DELIVERY AND HOUSEHOLD MAILINGS Each year you are automatically sent an updated summary prospectus and annual and semi-annual reports for the fund. You may also occasionally receive proxy statements for the fund. In order to reduce the volume of mail you receive, when possible, only one copy of these documents will be sent to shareholders who are part of the same family and share the same household address. You may elect to receive these documents electronically in lieu of paper form by enrolling in e-delivery on our website, americanfunds.com. If you would like to opt out of household-based mailings or receive a complimentary copy of the current SAI, codes of ethics or annual/semi-annual report to shareholders, please call American Funds Service Company at 800/421-0180 or write to the secretary of the fund at P.O. Box 7650, San Francisco, California 94120. SECURITIES INVESTOR PROTECTION CORPORATION (SIPC) Shareholders may obtain information about SIPC/(R)/ on its website at sipc.org or by calling 202/371-8300. Investment Company File No. 811-22215 RPGEPR-934-0310P Litho in USA CGD/CF/9971 ------------------------------------------------------------------------------- THE CAPITAL GROUP COMPANIES American Funds Capital Research and Management Capital International Capital Guardian Capital Bank and Trust <PAGE> INTERNATIONAL GROWTH AND INCOME FUND Part B Statement of Additional Information March 1, 2010 This document is not a prospectus but should be read in conjunction with the current prospectus or retirement plan prospectus of International Growth and Income Fund (the "fund" or "IGI") dated March 1, 2010. You may obtain a prospectus from your financial adviser or by writing to the fund at the following address: International Growth and Income Fund Attention: Secretary One Market Steuart Tower, Suite 1800 San Francisco, California 94105 415/421-9360 Certain privileges and/or services described below may not be available to all shareholders (including shareholders who purchase shares at net asset value through eligible retirement plans) depending on the shareholder's investment dealer or retirement plan recordkeeper. Please see your financial adviser, investment dealer, plan recordkeeper or employer for more information. Class A IGAAX Class 529-A CGIAX Class R-1 RIGAX Class B IGIBX Class 529-B CGIBX Class R-2 RIGBX Class C IGICX Class 529-C CIICX Class R-3 RGICX Class F-1 IGIFX Class 529-E CGIEX Class R-4 RIGEX Class F-2 IGFFX Class 529-F-1 CGIFX Class R-5 RIGFX Class R-6 RIGGX TABLE OF CONTENTS Item Page no. ---- -------- Certain investment limitations and guidelines . . . . . . . . . . . 2 Description of certain securities and investment techniques . . . . 3 Fund policies . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Management of the fund . . . . . . . . . . . . . . . . . . . . . . 11 Execution of portfolio transactions . . . . . . . . . . . . . . . . 33 Disclosure of portfolio holdings. . . . . . . . . . . . . . . . . . 36 Price of shares . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Taxes and distributions . . . . . . . . . . . . . . . . . . . . . . 41 Purchase and exchange of shares . . . . . . . . . . . . . . . . . . 46 Sales charges . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Sales charge reductions and waivers . . . . . . . . . . . . . . . . 54 Selling shares. . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Shareholder account services and privileges . . . . . . . . . . . . 60 General information . . . . . . . . . . . . . . . . . . . . . . . . 63 Appendix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 Investment portfolio Financial statements International Growth and Income Fund -- Page 1 <PAGE> CERTAIN INVESTMENT LIMITATIONS AND GUIDELINES The following limitations and guidelines are considered at the time of purchase, under normal circumstances, and are based on a percentage of the fund's net assets unless otherwise noted. This summary is not intended to reflect all of the fund's investment limitations.INVESTMENT OBJECTIVE The fund may invest up to 20% of its assets in securities of issuers domiciled in the United States; however the fund has no current intention of investing more than 10% of its assets in securities of issuers domiciled in the United States or whose securities are primarily listed on U.S. securities exchanges. Accordingly, the fund currently intends to invest at least 90% of its assets in securities of issuers domiciled outside the United States and whose securities are primarily listed on exchanges outside the United States. The fund will, however, hold cash and cash equivalents issued by U.S. issuers and treat them as assets falling within this category. The fund may invest a portion of its assets in companies located in developing countries. * * * * * * The fund may experience difficulty liquidating certain portfolio securities during significant market declines or periods of heavy redemptions. International Growth and Income Fund -- Page 2 <PAGE> DESCRIPTION OF CERTAIN SECURITIES AND INVESTMENT TECHNIQUES The descriptions below are intended to supplement the material in the prospectus under "Investment objective, strategies and risks." EQUITY SECURITIES -- Equity securities represent an ownership position in a company. Equity securities held by the fund typically consist of common stocks. The prices of equity securities fluctuate based on, among other things, events specific to their issuers and market, economic and other conditions. For example, prices of these securities can be affected by financial contracts held by the issuer or third parties (such as derivatives) relating to the security or other assets or indices. There may be little trading in the secondary market for particular equity securities, which may adversely affect the fund's ability to value accurately or dispose of such equity securities. Adverse publicity and investor perceptions, whether or not based on fundamental analysis, may decrease the value and/or liquidity of equity securities. INVESTING OUTSIDE THE U.S. -- Investing outside the United States may involve additional risks caused by, among other things, currency controls and fluctuating currency values; different accounting, auditing, financial reporting, disclosure, and regulatory and legal standards and practices; changing local, regional and global economic, political and social conditions; expropriation; changes in tax policy; greater market volatility; different securities market structures; higher transaction costs; and various administrative difficulties, such as delays in clearing and settling portfolio transactions or in receiving payment of dividends. The risks described above may be heightened in connection with investments in developing countries. Although there is no universally accepted definition, the investment adviser generally considers a developing country as a country that is in the earlier stages of its industrialization cycle with a low per capita gross domestic product ("GDP") and a low market capitalization to GDP ratio relative to those in the United States and the European Union. Historically, the markets of developing countries have been more volatile than the markets of developed countries, reflecting the greater uncertainties of investing in less established markets and economies. In particular, developing countries may have less stable governments, may present the risks of nationalization of businesses, may have restrictions on foreign ownership and prohibitions on the repatriation of assets and may have less protection of property rights than more developed countries. The economies of developing countries may be reliant on only a few industries, may be highly vulnerable to changes in local or global trade conditions and may suffer from high and volatile debt burdens or inflation rates. Local securities markets may trade a small number of securities and may be unable to respond effectively to increases in trading volume, potentially making prompt liquidation of holdings difficult or impossible at times. Additional costs could be incurred in connection with the fund's investment activities outside the United States. Brokerage commissions may be higher outside the United States, and the fund will bear certain expenses in connection with its currency transactions. Furthermore, increased custodian costs may be associated with maintaining assets in certain jurisdictions. In determining the domicile of an issuer, the fund's investment adviser will consider the domicile determination of a leading provider of global indexes, such as Morgan Stanley Capital International, and may also take into account such factors as where the company is legally organized and/or maintains principal corporate offices and/or conducts its principal operations. International Growth and Income Fund -- Page 3 <PAGE> INVESTING IN SMALLER CAPITALIZATION STOCKS -- The fund may invest in the stocks of smaller capitalization companies (typically companies with market capitalizations of less than $3.5 billion at the time of purchase). The investment adviser believes that the issuers of smaller capitalization stocks often provide attractive investment opportunities. However, investing in smaller capitalization stocks can involve greater risk than is customarily associated with investing in stocks of larger, more established companies. For example, smaller companies often have limited product lines, limited operating histories, limited markets or financial resources, may be dependent on one or a few key persons for management and can be more susceptible to losses. Also, their securities may be thinly traded (and therefore have to be sold at a discount from current prices or sold in small lots over an extended period of time), may be followed by fewer investment research analysts and may be subject to wider price swings, thus creating a greater chance of loss than securities of larger capitalization companies. CURRENCY TRANSACTIONS -- The fund may purchase and sell currencies to facilitate securities transactions and enter into forward currency contracts to protect against changes in currency exchange rates. A forward currency contract is an obligation to purchase or sell a specific currency at a future date, which may be any fixed number of days from the date of the contract agreed upon by the parties, at a price set at the time of the contract. Forward currency contracts entered into by the fund will involve the purchase or sale of one currency against the U.S. dollar. While entering into forward currency transactions could minimize the risk of loss due to a decline in the value of the hedged currency, it could also limit any potential gain that may result from an increase in the value of the currency. The fund will not generally attempt to protect against all potential changes in exchange rates. The fund will segregate liquid assets that will be marked to market daily to meet its forward contract commitments to the extent required by the Securities and Exchange Commission. Certain provisions of the Internal Revenue Code may affect the extent to which the fund may enter into forward contracts. Such transactions also may affect the character and timing of income, gain or loss recognized by the fund for U.S. federal income tax purposes. DEBT SECURITIES -- Debt securities are used by issuers to borrow money. Generally, issuers pay investors periodic interest and repay the amount borrowed either periodically during the life of the security and/or at maturity. Some debt securities, such as zero coupon bonds, do not pay current interest, but are purchased at a discount from their face values and their values accrete over time to face value at maturity. The market prices of debt securities fluctuate depending on such factors as interest rates, credit quality and maturity. In general, market prices of debt securities decline when interest rates rise and increase when interest rates fall. Lower rated debt securities, rated Ba1 or below by Moody's and/or BB+ or below by S&P or unrated but determined by the fund's investment adviser to be of equivalent quality, are described by the rating agencies as speculative and involve greater risk of default or price changes due to changes in the issuer's creditworthiness than higher rated debt securities, or they may already be in default. The market prices of these securities may fluctuate more than higher quality securities and may decline significantly in periods of general economic difficulty. It may be more difficult to dispose of, and to determine the value of, lower rated debt securities. Certain additional risk factors relating to debt securities are discussed below: SENSITIVITY TO INTEREST RATE AND ECONOMIC CHANGES -- Debt securities may be sensitive to economic changes, political and corporate developments, and interest rate changes. In International Growth and Income Fund -- Page 4 <PAGE> addition, during an economic downturn or substantial period of rising interest rates, issuers that are highly leveraged may experience increased financial stress that could adversely affect their ability to meet projected business goals, to obtain additional financing and to service their principal and interest payment obligations. Periods of economic change and uncertainty also can be expected to result in increased volatility of market prices and yields of certain debt securities. For example, prices of these securities can be affected by financial contracts held by the issuer or third parties (such as derivatives) relating to the security or other assets or indices. PAYMENT EXPECTATIONS -- Debt securities may contain redemption or call provisions. If an issuer exercises these provisions in a lower interest rate market, the fund would have to replace the security with a lower yielding security, resulting in decreased income to investors. If the issuer of a debt security defaults on its obligations to pay interest or principal or is the subject of bankruptcy proceedings, the fund may incur losses or expenses in seeking recovery of amounts owed to it. LIQUIDITY AND VALUATION -- There may be little trading in the secondary market for particular debt securities, which may affect adversely the fund's ability to value accurately or dispose of such debt securities. Adverse publicity and investor perceptions, whether or not based on fundamental analysis, may decrease the value and/or liquidity of debt securities. The investment adviser attempts to reduce the risks described above through diversification of the fund's portfolio and by credit analysis of each issuer, as well as by monitoring broad economic trends and corporate and legislative developments, but there can be no assurance that it will be successful in doing so. Credit ratings for debt securities provided by rating agencies reflect an evaluation of the safety of principal and interest payments, not market value risk. The rating of an issuer is a rating agency's view of past and future potential developments related to the issuer and may not necessarily reflect actual outcomes. There can be a lag between the time of developments relating to an issuer and the time a rating is assigned and updated. Bond rating agencies may assign modifiers (such as +/-) to ratings categories to signify the relative position of a credit within the rating category. Investment policies that are based on ratings categories should be read to include any security within that category, without giving consideration to the modifier except where otherwise provided. See the Appendix for more information about credit ratings. SECURITIES WITH EQUITY AND DEBT CHARACTERISTICS -- The fund may invest in securities that have a combination of equity and debt characteristics. These securities may at times behave more like equity than debt or vice versa. Some types of convertible bonds, preferred stocks or other preferred securities automatically convert into common stocks or other securities at a stated conversion ratio and some may be subject to redemption at the option of the issuer at a predetermined price. These securities, prior to conversion, may pay a fixed rate of interest or a dividend. Because convertible securities have both debt and equity characteristics, their values vary in response to many factors, including the values of the securities into which they are convertible, general market and economic conditions, and convertible market valuations, as well as changes in interest rates, credit spreads and the credit quality of the issuer. International Growth and Income Fund -- Page 5 <PAGE> The prices and yields of nonconvertible preferred securities or preferred stocks generally move with changes in interest rates and the issuer's credit quality, similar to the factors affecting debt securities. Nonconvertible preferred securities will be treated as debt for fund investment limit purposes. WARRANTS AND RIGHTS -- The fund may purchase warrants, which may be issued together with bonds or preferred stocks. Warrants generally entitle the holder to buy a proportionate amount of common stock at a specified price, usually higher than the current market price. Warrants may be issued with an expiration date or in perpetuity. Rights are similar to warrants except that they normally entitle the holder to purchase common stock at a lower price than the current market price. DEPOSITARY RECEIPTS - ADRs, in registered form, are designed for use in the U.S. securities markets and are generally dollar denominated. EDRs, in bearer form, are designed for use in the European securities markets and may be dollar denominated. GDRs, in bearer form, primarily are designed for use in the European and the U.S. securities markets, and may be dollar denominated. Depositary receipts represent and may be converted into the underlying foreign security. OBLIGATIONS BACKED BY THE "FULL FAITH AND CREDIT" OF THE U.S. GOVERNMENT -- U.S. government obligations include the following types of securities: U.S. TREASURY SECURITIES -- U.S. Treasury securities include direct obligations of the U.S. Treasury, such as Treasury bills, notes and bonds. For these securities, the payment of principal and interest is unconditionally guaranteed by the U.S. government, and thus they are of the highest possible credit quality. Such securities are subject to variations in market value due to fluctuations in interest rates, but, if held to maturity, will be paid in full. FEDERAL AGENCY SECURITIES -- The securities of certain U.S. government agencies and government-sponsored entities are guaranteed as to the timely payment of principal and interest by the full faith and credit of the U.S. government. Such agencies and entities include The Federal Financing Bank (FFB), the Government National Mortgage Association (Ginnie Mae), the Veterans Administration (VA), the Federal Housing Administration (FHA), the Export-Import Bank (Exim Bank), the Overseas Private Investment Corporation (OPIC), the Commodity Credit Corporation (CCC) and the Small Business Administration (SBA). OTHER FEDERAL AGENCY OBLIGATIONS -- Additional federal agency securities are neither direct obligations of, nor guaranteed by, the U.S. government. These obligations include securities issued by certain U.S. government agencies and government-sponsored entities. However, they generally involve some form of federal sponsorship: some operate under a government charter; some are backed by specific types of collateral; some are supported by the issuer's right to borrow from the Treasury; and others are supported only by the credit of the issuing government agency or entity. These agencies and entities include, but are not limited to: Federal Home Loan Bank, Federal Home Loan Mortgage Corporation (Freddie Mac), Federal National Mortgage Association (Fannie Mae), Tennessee Valley Authority and Federal Farm Credit Bank System. On September 7, 2008, Freddie Mac and Fannie Mae were placed into conservatorship by their new regulator, the Federal Housing Finance Agency. Simultaneously, the U.S. Treasury made a commitment of indefinite duration to maintain the positive net worth of both firms. International Growth and Income Fund -- Page 6 <PAGE> CASH AND CASH EQUIVALENTS -- The fund may hold cash or invest in cash equivalents. Cash equivalents include (a) commercial paper (for example, short-term notes with maturities typically up to 12 months in length issued by corporations, governmental bodies or bank/corporation sponsored conduits (asset-backed commercial paper)) (b) short-term bank obligations (for example, certificates of deposit, bankers' acceptances (time drafts on a commercial bank where the bank accepts an irrevocable obligation to pay at maturity)) or bank notes, (c) savings association and savings bank obligations (for example, bank notes and certificates of deposit issued by savings banks or savings associations), (d) securities of the U.S. government, its agencies or instrumentalities that mature, or may be redeemed, in one year or less, and (e) corporate bonds and notes that mature, or that may be redeemed, in one year or less. FORWARD COMMITMENT, WHEN ISSUED AND DELAYED DELIVERY TRANSACTIONS -- The fund may enter into commitments to purchase or sell securities at a future date. When the fund agrees to purchase such securities, it assumes the risk of any decline in value of the security from the date of the agreement. If the other party to such a transaction fails to deliver or pay for the securities, the fund could miss a favorable price or yield opportunity, or could experience a loss. The fund will not use these transactions for the purpose of leveraging and will segregate liquid assets that will be marked to market daily in an amount sufficient to meet its payment obligations in these transactions. Although these transactions will not be entered into for leveraging purposes, to the extent the fund's aggregate commitments in connection with these transactions exceed its segregated assets, the fund temporarily could be in a leveraged position (because it may have an amount greater than its net assets subject to market risk). Should market values of the fund's portfolio securities decline while the fund is in a leveraged position, greater depreciation of its net assets would likely occur than if it were not in such a position. The fund will not borrow money to settle these transactions and, therefore, will liquidate other portfolio securities in advance of settlement if necessary to generate additional cash to meet its obligations. After a transaction is entered into, the fund may still dispose of or renegotiate the transaction. Additionally, prior to receiving delivery of securities as part of a transaction, the fund may sell such securities. REPURCHASE AGREEMENTS -- The fund may enter into repurchase agreements under which the fund buys a security and obtains a simultaneous commitment from the seller to repurchase the security at a specified time and price. Repurchase agreements permit the fund to maintain liquidity and earn income over periods of time as short as overnight. The seller must maintain with the fund's custodian collateral equal to at least 100% of the repurchase price, including accrued interest, as monitored daily by the investment adviser. The fund will only enter into repurchase agreements involving securities in which it could otherwise invest and with selected banks and securities dealers whose financial condition is monitored by the investment adviser. If the seller under the repurchase agreement defaults, the fund may incur a loss if the value of the collateral securing the repurchase agreement has declined and may incur disposition costs in connection with liquidating the collateral. If bankruptcy proceedings are commenced with respect to the seller, realization of the collateral by the fund may be delayed or limited. REAL ESTATE INVESTMENT TRUSTS -- The fund may invest in securities issued by real estate investment trusts (REITs), which primarily invest in real estate or real estate-related loans. Equity REITs own real estate properties, while mortgage REITs hold construction, development and/or long-term mortgage loans. The values of REITs may be affected by changes in the value of the underlying property of the trusts, the creditworthiness of the issuer, property taxes, interest rates, tax laws and regulatory requirements, such as those relating to the environment. Both types of International Growth and Income Fund -- Page 7 <PAGE> REITs are dependent upon management skill and the cash flows generated by their holdings, the real estate market in general and the possibility of failing to qualify for any applicable pass-through tax treatment or failing to maintain any applicable exemptive status afforded under relevant laws. RESTRICTED OR ILLIQUID SECURITIES -- The fund may purchase securities subject to restrictions on resale. Restricted securities may only be sold pursuant to an exemption from registration under the Securities Act of 1933 (the "1933 Act"), or in a registered public offering. Where registration is required, the holder of a registered security may be obligated to pay all or part of the registration expense and a considerable period may elapse between the time it decides to seek registration and the time it may be permitted to sell a security under an effective registration statement. Difficulty in selling such securities may result in a loss to the fund or cause it to incur additional administrative costs. Securities (including restricted securities) not actively traded will be considered illiquid unless they have been specifically determined to be liquid under procedures adopted by the fund's board of trustees, taking into account factors such as the frequency and volume of trading, the commitment of dealers to make markets and the availability of qualified investors, all of which can change from time to time. The fund may incur certain additional costs in disposing of illiquid securities. * * * * * * PORTFOLIO TURNOVER -- Portfolio changes will be made without regard to the length of time particular investments may have been held. Short-term trading profits are not the fund's objective, and changes in its investments are generally accomplished gradually, though short-term transactions may occasionally be made. High portfolio turnover involves correspondingly greater transaction costs in the form of dealer spreads or brokerage commissions, and may result in the realization of net capital gains, which may be taxable when distributed to shareholders. Fixed-income securities are generally traded on a net basis and usually neither brokerage commissions nor transfer taxes are involved. Transaction costs are usually reflected in the spread between the bid and asked price. The fund's portfolio turnover rate for the period October 1, 2008 through June 30, 2009 was 33%. The portfolio turnover rate would equal 100% if each security in a fund's portfolio were replaced once per year. International Growth and Income Fund -- Page 8 <PAGE> FUND POLICIES All percentage limitations in the following fund policies are considered at the time securities are purchased and are based on the fund's net assets unless otherwise indicated. None of the following policies involving a maximum percentage of assets will be considered violated unless the excess occurs immediately after, and is caused by, an acquisition by the fund. In managing the fund, the fund's investment adviser may apply more restrictive policies than those listed below. FUNDAMENTAL POLICIES -- The fund has adopted the following policies, which may not be changed without approval by holders of a majority of its outstanding shares. Such majority is currently defined in the Investment Company Act of 1940, as amended (the "1940 Act"), as the vote of the lesser of (a) 67% or more of the voting securities present at a shareholder meeting, if the holders of more than 50% of the outstanding voting securities are present in person or by proxy, or (b) more than 50% of the outstanding voting securities. 1. Except as permitted by (i) the 1940 Act and the rules and regulations thereunder, or other successor law governing the regulation of registered investment companies, or interpretations or modifications thereof by the SEC, SEC staff or other authority of competent jurisdiction, or (ii) exemptive or other relief or permission from the SEC, SEC staff or other authority of competent jurisdiction, the fund may not: a. Borrow money; b. Issue senior securities; c. Underwrite the securities of other issuers; d. Purchase or sell real estate or commodities; e. Make loans; or f. Purchase the securities of any issuer if, as a result of such purchase, the fund's investments would be concentrated in any particular industry. 2. The fund may not invest in companies for the purpose of exercising control or management. NONFUNDAMENTAL POLICIES -- The following policy may be changed without shareholder approval: The fund may not acquire securities of open-end investment companies or unit investment trusts registered under the 1940 Act in reliance on Sections 12(d)(1)(F) or 12(d)(1)(G) of the 1940 Act. ADDITIONAL INFORMATION ABOUT FUNDAMENTAL POLICIES -- The information below is not part of the fund's fundamental policies. This information is intended to provide a summary of what is currently required or permitted by the 1940 Act and the rules and regulations thereunder, or by the interpretive guidance thereof by the SEC or SEC staff, for particular fundamental policies of the fund. International Growth and Income Fund -- Page 9 <PAGE> For purposes of fundamental policy 1a, the fund may borrow money in amounts of up to 33-1/3% of its total assets from banks for any purpose, and may borrow up to 5% of its total assets from banks or other lender for temporary purposes. For purposes of fundamental policy 1e, the fund may not lend more than 33-1/3% of its total assets, except through the purchase of debt obligations. For purposes of fundamental policy 1f, the fund may not invest 25% or more of its total assets in the securities of issuers in the same industry. International Growth and Income Fund -- Page 10 <PAGE> MANAGEMENT OF THE FUND BOARD OF TRUSTEES AND OFFICERS "INDEPENDENT" TRUSTEES/1/ NAME, AGE AND NUMBER OF POSITION WITH FUND PORTFOLIOS/3/ (YEAR FIRST ELECTED PRINCIPAL OCCUPATION(S) OVERSEEN OTHER DIRECTORSHIPS/4/ HELD AS A TRUSTEE/2/) DURING PAST FIVE YEARS BY TRUSTEE BY TRUSTEE ----------------------------------------------------------------------------------------------------------- Mary Jane Elmore, 55 Managing Director and General 3 None Trustee (2008) Partner, Institutional Venture Partners; former Product Marketing Manager, Intel Corporation's Development Systems Division ----------------------------------------------------------------------------------------------------------- Robert A. Fox, 72 Managing General Partner, Fox 9 None Chairman of the Board Investments LP; corporate (Independent and director; retired President Non-Executive) (2008) and CEO, Foster Farms (poultry producer) ----------------------------------------------------------------------------------------------------------- Leonade D. Jones, 62 Co-founder, VentureThink LLC 9 None Trustee (2008) (developed and managed e-commerce businesses) and Versura Inc. (education loan exchange); former Treasurer, The Washington Post Company ----------------------------------------------------------------------------------------------------------- William D. Jones, 54 Real estate developer/ owner, 6 Sempra Energy; Trustee (2008) President and CEO, CityLink SouthWest Water Company Investment Corporation (acquires, develops and manages real estate ventures in selected urban communities) and City Scene Management Company (provides commercial asset and property management services) ----------------------------------------------------------------------------------------------------------- John M. Lillie, 73 Former CEO, American President 3 None Trustee (2008) Companies (container shipping and transportation services); former CEO, Lucky Stores; former CEO, Leslie Salt ----------------------------------------------------------------------------------------------------------- John G. McDonald, 72 Stanford Investors Professor, 12 iStar Financial, Inc.; Trustee (2008) Graduate School of Business, Plum Creek Timber Co.; Stanford University Scholastic Corporation; Varian, Inc. ----------------------------------------------------------------------------------------------------------- James J. Postl, 64 Former President and CEO, 3 Cooper Industries; Trustee (2008) Pennzoil-Quaker State Company Pulte, Inc. (automotive products and services) ----------------------------------------------------------------------------------------------------------- Henry E. Riggs, 75 President Emeritus, Keck 5 None Trustee (2008) Graduate Institute of Applied Life Sciences ----------------------------------------------------------------------------------------------------------- Isaac Stein, 63 President, Waverley Associates 3 Alexza Pharmaceuticals, Trustee (2008) (private investment fund); Inc.; Maxygen, Inc. Chairman Emeritus of the Board of Trustees, Stanford University ----------------------------------------------------------------------------------------------------------- International Growth and Income Fund -- Page 11 <PAGE> "INTERESTED" TRUSTEE/5,6/ PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS NAME, AGE AND AND POSITIONS NUMBER OF POSITION WITH FUND HELD WITH AFFILIATED ENTITIES PORTFOLIOS/3/ (YEAR FIRST ELECTED OR THE PRINCIPAL UNDERWRITER OVERSEEN OTHER DIRECTORSHIPS/4/ HELD AS A TRUSTEE/OFFICER/2/) OF THE FUND BY TRUSTEE BY TRUSTEE ---------------------------------------------------------------------------------------------------------- Steven T. Watson, 54 Senior Vice President - 1 None Vice Chairman of the Board Capital World Investors, (2008) Capital Research Company*; Director, Capital Research Company*; Director, The Capital Group Companies, Inc.* ---------------------------------------------------------------------------------------------------------- OTHER OFFICERS/6/ NAME, AGE AND POSITION WITH FUND PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS (YEAR FIRST ELECTED AND POSITIONS HELD WITH AFFILIATED ENTITIES AS AN OFFICER/2/) OR THE PRINCIPAL UNDERWRITER OF THE FUND ------------------------------------------------------------------------------- Carl M. Kawaja, 45 Senior Vice President - Capital World Investors, President (2008) Capital Research and Management Company; Director, Capital Research and Management Company; Director, Capital International, Inc.*; Director, Capital International Asset Management, Inc.* ------------------------------------------------------------------------------- Paul F. Roye, 56 Senior Vice President - Fund Business Management Executive Vice Group, Capital Research and Management Company; President (2008) Director, American Funds Service Company*; former Director, Division of Investment Management, United States Securities and Exchange Commission ------------------------------------------------------------------------------- Andrew B. Suzman, 42 Senior Vice President - Capital World Investors, Senior Vice President Capital Research Company* (2008) ------------------------------------------------------------------------------- Patrick F. Quan, 51 Vice President - Fund Business Management Group, Secretary (2008) Capital Research and Management Company ------------------------------------------------------------------------------- Jennifer M. Buchheim, Vice President - Fund Business Management Group, 36 Capital Research and Management Company Treasurer (2008) ------------------------------------------------------------------------------- Julie E. Lawton, 36 Associate - Capital Research and Management Company Assistant Secretary (2009) ------------------------------------------------------------------------------- Bryan K. Nielsen, 36 Vice President, Capital Guardian Trust Company*; Vice Assistant Treasurer President, Capital International, Inc.* (2008) ------------------------------------------------------------------------------- International Growth and Income Fund -- Page 12 <PAGE> * Company affiliated with Capital Research and Management Company. 1 The term "independent" trustee refers to a trustee who is not an "interested person" of the fund within the meaning of the 1940 Act. 2 Trustees and officers of the fund serve until their resignation, removal or retirement. 3 Funds managed by Capital Research and Management Company, including the American Funds; American Funds Insurance Series,(R) which is composed of 16 funds and serves as the underlying investment vehicle for certain variable insurance contracts; American Funds Target Date Retirement Series,/(R)/ Inc., which is composed of 10 funds and is available through tax-deferred retirement plans and IRAs; and Endowments, which is available to certain nonprofit organizations. 4 This includes all directorships (other than those in the American Funds or other funds managed by Capital Research and Management Company) that are held by each trustee as a director of a public company or a registered investment company. 5 "Interested persons" of the fund within the meaning of the 1940 Act, on the basis of their affiliation with the fund's investment adviser, Capital Research and Management Company, or affiliated entities (including the fund's principal underwriter). 6 All of the officers listed are officers and/or directors/trustees of one or more of the other funds for which Capital Research and Management Company serves as investment adviser.THE ADDRESS FOR ALL TRUSTEES AND OFFICERS OF THE FUND IS 333 SOUTH HOPE STREET, 55TH FLOOR, LOS ANGELES, CALIFORNIA 90071, ATTENTION: SECRETARY. International Growth and Income Fund -- Page 13 <PAGE> FUND SHARES OWNED BY TRUSTEES AS OF DECEMBER 31, 2009: AGGREGATE DOLLAR RANGE/1/ OF INDEPENDENT AGGREGATE TRUSTEES DOLLAR RANGE/1/ DOLLAR DEFERRED OF SHARES RANGE/1 /OF COMPENSATION/2/ OWNED IN INDEPENDENT ALLOCATED TO ALL FUNDS TRUSTEES ALL FUNDS IN THE DEFERRED WITHIN DOLLAR RANGE/1/ AMERICAN FUNDS COMPENSATION/2/ AMERICAN FUNDS OF FUND FAMILY OVERSEEN ALLOCATED FAMILY OVERSEEN NAME SHARES OWNED BY TRUSTEE TO FUND BY TRUSTEE ----------------------------------------------------------------------------------------- "INDEPENDENT" TRUSTEES ----------------------------------------------------------------------------------------- Mary Jane Elmore Over $100,000 Over $100,000 $50,001 - Over $100,000 $100,000 ----------------------------------------------------------------------------------------- Robert A. Fox Over $100,000 Over $100,000 $50,001 - Over $100,000 $100,000 ----------------------------------------------------------------------------------------- Leonade D. Jones $50,001 - Over $100,000 Over $100,000 Over $100,000 $100,000 ----------------------------------------------------------------------------------------- William D. Jones $10,001 - Over $100,000 $10,001 - Over $100,000 $50,000 $50,000 ----------------------------------------------------------------------------------------- John M. Lillie Over $100,000 Over $100,000 N/A N/A ----------------------------------------------------------------------------------------- John G. McDonald $50,001 - Over $100,000 N/A N/A $100,000 ----------------------------------------------------------------------------------------- James J. Postl Over $100,000 Over $100,000 $50,001 - Over $100,000 $100,000 ----------------------------------------------------------------------------------------- Henry E. Riggs Over $100,000 Over $100,000 N/A Over $100,000 ----------------------------------------------------------------------------------------- Isaac Stein Over $100,000 Over $100,000 N/A N/A ----------------------------------------------------------------------------------------- International Growth and Income Fund -- Page 14 <PAGE> AGGREGATE DOLLAR RANGE/1/ OF SHARES OWNED IN ALL FUNDS IN THE DOLLAR RANGE/1/ AMERICAN FUNDS OF FUND FAMILY OVERSEEN NAME SHARES OWNED BY TRUSTEE ----------------------------------------------------------------------------- "INTERESTED" TRUSTEES ----------------------------------------------------------------------------- Steven T. Watson Over $100,000 Over $100,000 ----------------------------------------------------------------------------- 1 Ownership disclosure is made using the following ranges: None; $1 - $10,000; $10,001 - $50,000; $50,001 - $100,000; and Over $100,000. The amounts listed for "interested" trustees include shares owned through The Capital Group Companies, Inc. retirement plan and 401(k) plan. 2 Eligible trustees may defer their compensation under a nonqualified deferred compensation plan. Deferred amounts accumulate at an earnings rate determined by the total return of one or more American Funds as designated by the trustee. TRUSTEE COMPENSATION -- No compensation is paid by the fund to any officer or trustee who is a director, officer or employee of the investment adviser or its affiliates. The boards of funds advised by the investment adviser typically meet either individually or jointly with the boards of one or more other such funds with substantially overlapping board membership (in each case referred to as a "board cluster"). The fund typically pays each independent trustee an annual fee, which ranges from $6,875 to $20,000, based primarily on the total number of board clusters on which that independent trustee serves. In addition, the fund generally pays independent trustees attendance and other fees for meetings of the board and its committees. Board chairs receive additional fees for their services. Independent trustees also receive attendance fees for certain special joint meetings and information sessions with directors and trustees of other groupings of funds advised by the investment adviser. The fund and the other funds served by each independent trustee each pay an equal portion of these attendance fees. No pension or retirement benefits are accrued as part of fund expenses. Independent trustees may elect, on a voluntary basis, to defer all or a portion of their fees through a deferred compensation plan in effect for the fund. The fund also reimburses certain expenses of the independent trustees. International Growth and Income Fund -- Page 15 <PAGE>TRUSTEE COMPENSATION EARNED DURING THE YEAR ENDED JUNE 30, 2009 TOTAL COMPENSATION (INCLUDING AGGREGATE COMPENSATION VOLUNTARILY DEFERRED COMPENSATION/1/) (INCLUDING VOLUNTARILY FROM ALL FUNDS MANAGED BY DEFERRED COMPENSATION/1/) CAPITAL RESEARCH AND MANAGEMENT NAME FROM THE FUND COMPANY OR ITS AFFILIATES/2/ ------------------------------------------------------------------------------------------------------------------------------------ Mary Jane Elmore/3/ $30,708 $115,958 ------------------------------------------------------------------------------------------------------------------------------------ Robert A. Fox/3/ 29,287 334,625 ------------------------------------------------------------------------------------------------------------------------------------ Leonade D. Jones/3/ 43,035 379,597 ------------------------------------------------------------------------------------------------------------------------------------ William D. Jones/3/ 34,021 225,167 ------------------------------------------------------------------------------------------------------------------------------------ John M. Lillie 43,235 161,569 ------------------------------------------------------------------------------------------------------------------------------------ John G. McDonald/3/ 29,499 419,167 ------------------------------------------------------------------------------------------------------------------------------------ James J. Postl/3/ 35,708 133,875 ------------------------------------------------------------------------------------------------------------------------------------ Henry E. Riggs 36,312 292,715 ------------------------------------------------------------------------------------------------------------------------------------ Isaac Stein 34,875 146,375 ------------------------------------------------------------------------------------------------------------------------------------ 1 Amounts may be deferred by eligible trustees under a nonqualified deferred compensation plan adopted by the fund in 2008. Deferred amounts accumulate at an earnings rate determined by the total return of one or more American Funds as designated by the trustees. Compensation shown in this table for the fiscal year ended June 30, 2009 does not include earnings on amounts deferred in previous fiscal years. See footnote 3 to this table for more information. 2 Funds managed by Capital Research and Management Company, including the American Funds; American Funds Insurance Series,(R) which is composed of 16 funds and serves as the underlying investment vehicle for certain variable insurance contracts; American Funds Target Date Retirement Series,/(R)/ Inc., which is composed of 10 funds and is available through tax-deferred retirement plans and IRAs; and Endowments, which is available to certain nonprofit organizations. 3 Since the deferred compensation plan's adoption, the total amount of deferred compensation accrued by the fund (plus earnings thereon) through the 2009 fiscal year for participating trustees is as follows: Mary Jane Elmore ($29,804), Robert A. Fox ($23,004), Leonade D. Jones ($11,828), William D. Jones ($7,901), John G. McDonald ($19,522) and James Postl ($29,804). Amounts deferred and accumulated earnings thereon are not funded and are general unsecured liabilities of the fund until paid to the trustees. As of February 1, 2010, the officers and trustees of the fund and their families, as a group, owned beneficially or of record less than 1% of the outstanding shares of the fund. FUND ORGANIZATION AND THE BOARD OF TRUSTEES -- The fund, an open-end, diversified management investment company, was organized as a Maryland corporation on July 2, 2008 and was reorganized as a Delaware statutory trust on March 1, 2010. All fund operations are supervised by the fund's board of trustees which meets periodically and performs duties required by applicable state and federal laws. Delaware law charges trustees with the duty of managing the business affairs of the Trust. Trustees are considered to be fiduciaries of the Trust and owe duties of care and loyalty to the Trust and its shareholders. Independent board members are paid certain fees for services rendered to the fund as described above. They may elect to defer all or a portion of these fees through a deferred compensation plan in effect for the fund. International Growth and Income Fund -- Page 16 <PAGE> The fund has several different classes of shares. Shares of each class represent an interest in the same investment portfolio. Each class has pro rata rights as to voting, redemption, dividends and liquidation, except that each class bears different distribution expenses and may bear different transfer agent fees and other expenses properly attributable to the particular class as approved by the board of trustees and set forth in the fund's rule 18f-3 Plan. Each class' shareholders have exclusive voting rights with respect to the respective class' rule 12b-1 plans adopted in connection with the distribution of shares and on other matters in which the interests of one class are different from interests in another class. Shares of all classes of the fund vote together on matters that affect all classes in substantially the same manner. Each class votes as a class on matters that affect that class alone. Note that 529 college savings plan account owners invested in Class 529 shares are not shareholders of the fund and, accordingly, do not have the rights of a shareholder, such as the right to vote proxies relating to fund shares. As the legal owner of the fund's Class 529 shares, the Virginia College Savings Plan/SM/ will vote any proxies relating to the fund's Class 529 shares. In addition, the trustees have the authority to establish new series and classes of shares, and to split or combine outstanding shares into a greater or lesser number, without shareholder approval. The fund does not hold annual meetings of shareholders. However, significant matters that require shareholder approval, such as certain elections of board members or a change in a fundamental investment policy, will be presented to shareholders at a meeting called for such purpose. Shareholders have one vote per share owned. The fund's declaration of trust and by-laws as well as separate indemnification agreements that the fund has entered into with independent trustees provide in effect that, subject to certain conditions, the fund will indemnify its officers and trustees against liabilities or expenses actually and reasonably incurred by them relating to their service to the fund. However, trustees are not protected from liability by reason of their willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of their office. REMOVAL OF TRUSTEES BY SHAREHOLDERS -- At any meeting of shareholders, duly called and at which a quorum is present, shareholders may, by the affirmative vote of the holders of two-thirds of the votes entitled to be cast, remove any trustee from office and may elect a successor or successors to fill any resulting vacancies for the unexpired terms of removed trustees. In addition, the trustees of the fund will promptly call a meeting of shareholders for the purpose of voting upon the removal of any trustees when requested in writing to do so by the record holders of at least 10% of the outstanding shares. COMMITTEES OF THE BOARD OF TRUSTEES -- The fund has an audit committee comprised of Robert A. Fox, Leonade D. Jones, John M. Lillie, James J. Postl, and Isaac Stein, none of whom is an "interested person" of the fund within the meaning of the 1940 Act. The committee provides oversight regarding the fund's accounting and financial reporting policies and practices, its internal controls and the internal controls of the fund's principal service providers. The committee acts as a liaison between the fund's independent registered public accounting firm and the full board of trustees. Three audit committee meetings were held during the 2009 fiscal year. International Growth and Income Fund -- Page 17 <PAGE> The fund has a contracts committee comprised of Mary Jane Elmore, Robert A. Fox, Leonade D. Jones, William D. Jones, John M. Lillie, John G. McDonald, James J. Postl, Henry E. Riggs, and Isaac Stein, none of whom is an "interested person" of the fund within the meaning of the 1940 Act. The committee's principal function is to request, review and consider the information deemed necessary to evaluate the terms of certain agreements between the fund and its investment adviser or the investment adviser's affiliates, such as the Investment Advisory and Service Agreement, Principal Underwriting Agreement, Administrative Services Agreement and Plans of Distribution adopted pursuant to rule 12b-1 under the 1940 Act, that the fund may enter into, renew or continue, and to make its recommendations to the full board of trustees on these matters. Two contracts committee meetings were held during the 2009 fiscal year. The fund has a nominating and governance committee comprised of Leonade D. Jones, William D. Jones, John M. Lillie, John G. McDonald, and Henry E. Riggs, none of whom is an "interested person" of the fund within the meaning of the 1940 Act. The committee periodically reviews such issues as the board's composition, responsibilities, committees, compensation and other relevant issues, and recommends any appropriate changes to the full board of trustees. The committee also evaluates, selects and nominates independent trustee candidates to the full board of trustees. While the committee normally is able to identify from its own and other resources an ample number of qualified candidates, it will consider shareholder suggestions of persons to be considered as nominees to fill future vacancies on the board. Such suggestions must be sent in writing to the nominating and governance committee of the fund, addressed to the fund's secretary, and must be accompanied by complete biographical and occupational data on the prospective nominee, along with a written consent of the prospective nominee for consideration of his or her name by the committee. Three nominating committee meetings were held during the 2009 fiscal year. PROXY VOTING PROCEDURES AND PRINCIPLES -- The fund's investment adviser, in consultation with the fund's board, has adopted Proxy Voting Procedures and Principles (the "Principles") with respect to voting proxies of securities held by the fund, other American Funds, Endowments and American Funds Insurance Series. The complete text of these principles is available on the American Funds website at americanfunds.com. Proxies are voted by a committee of the appropriate equity investment division of the investment adviser under authority delegated by the funds' boards. Therefore, if more than one fund invests in the same company, they may vote differently on the same proposal. In addition, the funds' boards monitor the proxy voting process and provide guidance with respect to the Principles. All U.S. proxies are voted. Proxies for companies outside the U.S. also are voted, provided there is sufficient time and information available. After a proxy statement is received, the investment adviser prepares a summary of the proposals contained in the proxy statement. A discussion of any potential conflicts of interest also is included in the summary. For proxies of securities managed by a particular investment division of the investment adviser, the initial voting recommendation is made by one or more of the division's investment analysts familiar with the company and industry. A second recommendation is made by a proxy coordinator (an investment analyst with experience in corporate governance and proxy voting matters) within the appropriate investment division, based on knowledge of these Principles and familiarity with proxy-related issues. The proxy summary and voting recommendations are made available to the appropriate proxy voting committee for a final voting decision. The analyst and proxy coordinator making voting recommendations are responsible for noting any potential material conflicts of interest. One example might be where a director of one or more International Growth and Income Fund -- Page 18 <PAGE> American Funds is also a director of a company whose proxy is being voted. In such instances, proxy voting committee members are alerted to the potential conflict. The proxy voting committee may then elect to vote the proxy or seek a third-party recommendation or vote of an ad hoc group of committee members. The Principles, which have been in effect in substantially their current form for many years, provide an important framework for analysis and decision-making by all funds. However, they are not exhaustive and do not address all potential issues. The Principles provide a certain amount of flexibility so that all relevant facts and circumstances can be considered in connection with every vote. As a result, each proxy received is voted on a case-by-case basis considering the specific circumstances of each proposal. The voting process reflects the funds' understanding of the company's business, its management and its relationship with shareholders over time. Information regarding how the fund voted proxies relating to portfolio securities during the 12-month period ended June 30 of each year will be available on or about September 1 of each year (a) without charge, upon request by calling American Funds Service Company at 800/421-0180, (b) on the American Funds website and (c) on the SEC's website at sec.gov. The following summary sets forth the general positions of the American Funds, Endowments, American Funds Insurance Series and the investment adviser on various proposals. A copy of the full Principles is available upon request, free of charge, by calling American Funds Service Company or visiting the American Funds website. DIRECTOR MATTERS -- The election of a company's slate of nominees for director generally is supported. Votes may be withheld for some or all of the nominees if this is determined to be in the best interest of shareholders. Separation of the chairman and CEO positions also may be supported. GOVERNANCE PROVISIONS -- Typically, proposals to declassify a board (elect all directors annually) are supported based on the belief that this increases the directors' sense of accountability to shareholders. Proposals for cumulative voting generally are supported in order to promote management and board accountability and an opportunity for leadership change. Proposals designed to make director elections more meaningful, either by requiring a majority vote or by requiring any director receiving more withhold votes than affirmative votes to tender his or her resignation, generally are supported. SHAREHOLDER RIGHTS -- Proposals to repeal an existing poison pill generally are supported. (There may be certain circumstances, however, when a proxy voting committee of a fund or an investment division of the investment adviser believes that a company needs to maintain anti-takeover protection.) Proposals to eliminate the right of shareholders to act by written consent or to take away a shareholder's right to call a special meeting typically are not supported. COMPENSATION AND BENEFIT PLANS -- Option plans are complicated, and many factors are considered in evaluating a plan. Each plan is evaluated based on protecting shareholder interests and a knowledge of the company and its management. Considerations include the pricing (or repricing) of options awarded under the plan and the impact of dilution on existing shareholders from past and future equity awards. Compensation packages should be structured to attract, motivate and retain existing employees and qualified directors; however, they should not be excessive. International Growth and Income Fund -- Page 19 <PAGE> ROUTINE MATTERS -- The ratification of auditors, procedural matters relating to the annual meeting and changes to company name are examples of items considered routine. Such items generally are voted in favor of management's recommendations unless circumstances indicate otherwise. PRINCIPAL FUND SHAREHOLDERS -- The following table identifies those investors who own of record or are known by the fund to own beneficially 5% or more of any class of its shares as of the opening of business on February 1, 2010. Unless otherwise indicated, the ownership percentages below represent ownership of record rather than beneficial ownership.NAME AND ADDRESS OWNERSHIP OWNERSHIP PERCENTAGE ------------------------------------------------------------------------------- Edward D. Jones & Co. Record Class A 29.32% Omnibus Account Class B 25.97 Maryland Heights, MO Class R-1 6.21 ------------------------------------------------------------------------------- First Clearing, LLC Record Class A 10.10 Custody Account Class B 6.56 St. Louis, MO Class C 12.75 Class F-1 17.26 ------------------------------------------------------------------------------- Citigroup Global Markets, Inc. Record Class C 10.44 Omnibus Account Class F-1 9.23 New York, NY ------------------------------------------------------------------------------- Merrill Lynch Record Class C 7.77 Omnibus Account Class F-2 6.67 Jacksonville, FL ------------------------------------------------------------------------------- Charles Schwab & Co., Inc. Record Class F-1 6.15 Custody Account San Francisco. CA ------------------------------------------------------------------------------- Capital Guardian Trust Company Record Class F-2 10.02 Personal Investment Management Beneficial Account #1 Irvine, CA ------------------------------------------------------------------------------- Capital Guardian Trust Company Record Class F-2 5.55 Personal Investment Management Beneficial Account #2 Irvine, CA ------------------------------------------------------------------------------- Capital Guardian Trust Company Record Class F-2 5.14 Personal Investment Management Beneficial Account #3 Irvine, CA ------------------------------------------------------------------------------- VCSP/CollegeAmerica Record Class 529-B 5.38 Individual Investor #1 Beneficial San Diego, CA ------------------------------------------------------------------------------- VCSP/CollegeAmerica Record Class 529-F-1 9.95 Individual Investor #2 Beneficial Chesterfield, MO ------------------------------------------------------------------------------- VCSP/CollegeAmerica Record Class 529-F-1 9.16 Individual Investor #3 Beneficial Alexandria, VA ------------------------------------------------------------------------------- VCSP/CollegeAmerica Record Class 529-F-1 7.38 Individual Investor #4 Beneficial Henrico, VA ------------------------------------------------------------------------------- VCSP/CollegeAmerica Record Class 529-F-1 6.08 Individual Investor #5 Beneficial Leavenworth, KS ------------------------------------------------------------------------------- VCSP/CollegeAmerica Record Class 529-E 6.42 Individual Investor #6 Beneficial Lynchburg, VA ------------------------------------------------------------------------------- Capital Research & Management Company Record Class R-1 36.90 Corporate Account Class R-2 11.69 Irvine, CA Class R-3 14.06 Class R-4 32.72 ------------------------------------------------------------------------------- 401K Plan Beneficial Class R-3 5.01 Greenwood Village, CO ------------------------------------------------------------------------------- The Montgomery Co., Inc. Record Class R-4 8.39 Profit Sharing Plan Beneficial Hadley, MA ------------------------------------------------------------------------------- Adventist Health CA Medical Group Record Class R-4 5.50 401K Plan Beneficial Greenwood Village, CO ------------------------------------------------------------------------------- The Capital Group Companies Record Class R-5 91.42 Retirement Plans Beneficial Los Angeles, CA ------------------------------------------------------------------------------- American Funds 2020 Target Date Record Class R-6 18.26 Retirement Fund Norfolk, VA ------------------------------------------------------------------------------- American Funds 2025 Target Date Record Class R-6 14.74 Retirement Fund Norfolk, VA ------------------------------------------------------------------------------- American Funds 2030 Target Date Record Class R-6 14.10 Retirement Fund Norfolk, VA ------------------------------------------------------------------------------- American Funds 2035 Target Date Record Class R-6 12.69 Retirement Fund Norfolk, VA ------------------------------------------------------------------------------- American Funds 2040 Target Date Record Class R-6 10.67 Retirement Fund Norfolk, VA ------------------------------------------------------------------------------- American Funds 2015 Target Date Record Class R-6 9.99 Retirement Fund Norfolk, VA ------------------------------------------------------------------------------- American Funds 2050 Target Date Record Class R-6 5.65 Retirement Fund Norfolk, VA ------------------------------------------------------------------------------- Fulvest & Co. Record Class R-6 5.12 Retirement Plan Beneficial Lancaster, PA ------------------------------------------------------------------------------- American Funds 2045 Target Date Record Class R-6 5.04 Retirement Fund Norfolk, VA ------------------------------------------------------------------------------- International Growth and Income Fund -- Page 20 <PAGE> [This page is intentionally left blank for this filing.] International Growth and Income Fund -- Page 21 <PAGE> UNLESS OTHERWISE NOTED, REFERENCES IN THIS STATEMENT OF ADDITIONAL INFORMATION TO CLASS F SHARES, CLASS R SHARES OR CLASS 529 SHARES REFER TO BOTH F SHARE CLASSES, ALL R SHARE CLASSES OR ALL 529 SHARE CLASSES, RESPECTIVELY. INVESTMENT ADVISER -- Capital Research and Management Company, the fund's investment adviser, founded in 1931, maintains research facilities in the United States and abroad (Los Angeles, San Francisco, New York, Washington, DC, London, Geneva, Hong Kong, Singapore and Tokyo). These facilities are staffed with experienced investment professionals. The investment adviser is located at 333 South Hope Street, Los Angeles, CA 90071 and 6455 Irvine Center Drive, Irvine, CA 92618. It is a wholly owned subsidiary of The Capital Group Companies, Inc., a holding company for several investment management subsidiaries. Capital Research and Management Company manages equity assets through two investment divisions, Capital World Investors and Capital Research Global Investors, and manages fixed-income assets through its Fixed Income division. Capital World Investors and Capital Research Global Investors make investment decisions on an independent basis. Rather than remain as investment divisions, Capital World Investors and Capital Research Global Investors may be incorporated into wholly owned subsidiaries of Capital Research and Management Company. In that event, Capital Research and Management Company would continue to be the investment adviser, and day-to-day investment management of equity assets would continue to be carried out through one or both of these subsidiaries. Although not currently contemplated, Capital Research and Management Company could incorporate its Fixed Income division in the future and engage it to provide day-to-day investment management of fixed-income assets. Capital Research and Management Company and each of the funds it advises have applied to the U.S. Securities and Exchange Commission for an exemptive order that would give Capital Research and Management Company the authority to use, upon approval of the fund's board, its management subsidiaries and affiliates to provide day-to-day investment management services to the fund, including making changes to the management subsidiaries and affiliates providing such services. The fund's shareholders approved this arrangement at a meeting of the fund's shareholders on November 24, 2009. There is no assurance that Capital Research and Management Company will incorporate its investment divisions or exercise any authority, if granted, under an exemptive order. The investment adviser has adopted policies and procedures that address issues that may arise as a result of an investment professional's management of the fund and other funds and accounts. Potential issues could involve allocation of investment opportunities and trades among funds and accounts, use of information regarding the timing of fund trades, investment International Growth and Income Fund -- Page 22 <PAGE> professional compensation and voting relating to portfolio securities. The investment adviser believes that its policies and procedures are reasonably designed to address these issues. COMPENSATION OF INVESTMENT PROFESSIONALS -- As described in the prospectus, the investment adviser uses a system of multiple portfolio counselors in managing fund assets. In addition, Capital Research and Management Company's investment analysts may make investment decisions with respect to a portion of a fund's portfolio within their research coverage. The investment adviser's investment analysts do not currently manage a research portfolio in the fund. Portfolio counselors and investment analysts are paid competitive salaries by Capital Research and Management Company. In addition, they may receive bonuses based on their individual portfolio results. Investment professionals also may participate in profit-sharing plans. The relative mix of compensation represented by bonuses, salary and profit-sharing plans will vary depending on the individual's portfolio results, contributions to the organization and other factors. To encourage a long-term focus, bonuses based on investment results are calculated by comparing pretax total investment returns to relevant benchmarks over the most recent year, a four-year rolling average and an eight-year rolling average with greater weight placed on the four-year and eight-year rolling averages. For portfolio counselors, benchmarks may include measures of the marketplaces in which the fund invests and measures of the results of comparable mutual funds. For investment analysts, benchmarks may include relevant market measures and appropriate industry or sector indexes reflecting their areas of expertise. Capital Research and Management Company makes periodic subjective assessments of analysts' contributions to the investment process and this is an element of their overall compensation. The investment results of each of the fund's portfolio counselors may be measured against one or more of the following benchmarks, depending on his or her investment focus: MSCI World Index (ex-U.S.) and Lipper International Funds Index. PORTFOLIO COUNSELOR FUND HOLDINGS AND OTHER MANAGED ACCOUNTS -- As described below, portfolio counselors may personally own shares of the fund. In addition, portfolio counselors may manage portions of other mutual funds or accounts advised by Capital Research and Management Company or its affiliates. International Growth and Income Fund -- Page 23 <PAGE>THE FOLLOWING TABLE REFLECTS INFORMATION AS OF JUNE 30, 2009: NUMBER NUMBER OF OTHER OF OTHER NUMBER REGISTERED POOLED OF OTHER INVESTMENT INVESTMENT ACCOUNTS COMPANIES (RICS) VEHICLES (PIVS) FOR WHICH FOR WHICH FOR WHICH PORTFOLIO PORTFOLIO PORTFOLIO COUNSELOR DOLLAR RANGE COUNSELOR COUNSELOR IS A MANAGER OF FUND IS A MANAGER IS A MANAGER (ASSETS OF PORTFOLIO SHARES (ASSETS OF RICS (ASSETS OF PIVS OTHER ACCOUNTS COUNSELOR OWNED/1/ IN BILLIONS)/2/ IN BILLIONS)/3/ IN BILLIONS)/4/ ---------------------------------------------------------------------------------------- Steven T. $100,001 - 3 $174.3 None None Watson $500,000 ----------------------------------------------------------------------------------------- Carl M. Kawaja $100,001 - 4 $209.1 1 $0.75 None $500,000 ----------------------------------------------------------------------------------------- Andrew B. $500,001 - 2 $138.5 1 $0.06 None Suzman $1,000,000 ----------------------------------------------------------------------------------------- 1 Ownership disclosure is made using the following ranges: None; $1 - $10,000; $10,001 - $50,000; $50,001 - $100,000; $100,001 - $500,000; $500,001 - $1,000,000; and Over $1,000,000. The amounts listed include shares owned through The Capital Group Companies, Inc. retirement plan and 401(k) plan. 2 Indicates fund(s) where the portfolio counselor also has significant responsibilities for the day to day management of the fund(s). Assets noted are the total net assets of the registered investment companies and are not the total assets managed by the individual, which is a substantially lower amount. No fund has an advisory fee that is based on the performance of the fund. 3 Represents funds advised or sub-advised by Capital Research and Management Company or its affiliates and sold outside the United States and/or fixed-income assets in institutional accounts managed by investment adviser subsidiaries of Capital Group International, Inc., an affiliate of Capital Research and Management Company. Assets noted are the total net assets of the funds or accounts and are not the total assets managed by the individual, which is a substantially lower amount. No fund or account has an advisory fee that is based on the performance of the fund or account. 4 Reflects other professionally managed accounts held at companies affiliated with Capital Research and Management Company. Personal brokerage accounts of portfolio counselors and their families are not reflected. INVESTMENT ADVISORY AND SERVICE AGREEMENT -- The Investment Advisory and Service Agreement (the "Agreement") between the fund and the investment adviser will continue in effect until December 31, 2010, unless sooner terminated, and may be renewed from year to year thereafter, provided that any such renewal has been specifically approved at least annually by (a) the board of trustees, or by the vote of a majority (as defined in the 1940 Act) of the outstanding voting securities of the fund, and (b) the vote of a majority of trustees who are not parties to the Agreement or interested persons (as defined in the 1940 Act) of any such party, cast in person at a meeting called for the purpose of voting on such approval. The Agreement provides that the investment adviser has no liability to the fund for its acts or omissions in the performance of its obligations to the fund not involving willful misconduct, bad faith, gross negligence or reckless disregard of its obligations under the Agreement. The Agreement also provides that either party has the right to terminate it, without penalty, upon 60 days' written notice to the other party, and that the Agreement automatically terminates in the event of its assignment (as defined in the 1940 Act). In addition, the Agreement provides that the investment adviser may delegate all, or a portion of, its investment management responsibilities to one or more subsidiary advisers approved by the fund's board, pursuant to an agreement between the International Growth and Income Fund -- Page 24 <PAGE> investment adviser and such subsidiary. Any such subsidiary adviser will be paid solely by the investment adviser out of its fees. In addition to providing investment advisory services, the investment adviser furnishes the services and pays the compensation and travel expenses of persons to perform the fund's executive, administrative, clerical and bookkeeping functions, and provides suitable office space, necessary small office equipment and utilities, general purpose accounting forms, supplies and postage used at the fund's offices. The fund pays all expenses not assumed by the investment adviser, including, but not limited to: custodian, stock transfer and dividend disbursing fees and expenses; shareholder recordkeeping and administrative expenses; costs of the designing, printing and mailing of reports, prospectuses, proxy statements and notices to its shareholders; taxes; expenses of the issuance and redemption of fund shares (including stock certificates, registration and qualification fees and expenses); expenses pursuant to the fund's plans of distribution (described below); legal and auditing expenses; compensation, fees and expenses paid to independent trustees; association dues; costs of stationery and forms prepared exclusively for the fund; and costs of assembling and storing shareholder account data. The management fee is based on the following annualized rates and daily net asset levels: Net asset levelRATE IN EXCESS OF UP TO ----------------------------------------------------------------------------- 0.69% $ 0 $ 500,000,000 ----------------------------------------------------------------------------- 0.59 500,000,000 1,000,000,000 ----------------------------------------------------------------------------- 0.53 1,000,000,000 1,500,000,000 ----------------------------------------------------------------------------- 0.50 1,500,000,000 2,500,000,000 ----------------------------------------------------------------------------- 0.48 2,500,000,000 4,000,000,000 ----------------------------------------------------------------------------- 0.47 4,000,000,000 -- ----------------------------------------------------------------------------- For the fiscal year ended June 30, 2009, the investment adviser was entitled to receive from the fund management fees of $5,477,000. After giving effect to the management fee waiver described below, the fund paid the investment adviser management fees of $5,377,000 (a reduction of $100,000) for the fiscal year ended June 30, 2009. For the period from October 1, 2008 through December 31, 2008 the investment adviser agreed to waive 10% of the management fees that it was otherwise entitled to receive under the Agreement. The waiver was discontinued effective January 1, 2009. The investment adviser has agreed to reimburse a portion of the fees and expenses of the fund during its start-up period. For the period ended June 30, 2009, the total fees and expenses reimbursed by the investment adviser were $288,000. International Growth and Income Fund -- Page 25 <PAGE> ADMINISTRATIVE SERVICES AGREEMENT -- The Administrative Services Agreement (the "Administrative Agreement") between the fund and the investment adviser relating to the fund's Class C, F, R and 529 shares will continue in effect until December 31, 2010, unless sooner terminated, and may be renewed from year to year thereafter, provided that any such renewal has been specifically approved at least annually by the vote of a majority of trustees who are not parties to the Administrative Agreement or interested persons (as defined in the 1940 Act) of any such party, cast in person at a meeting called for the purpose of voting on such approval. The fund may terminate the Administrative Agreement at any time by vote of a majority of independent trustees. The investment adviser has the right to terminate the Administrative Agreement upon 60 days' written notice to the fund. The Administrative Agreement automatically terminates in the event of its assignment (as defined in the 1940 Act). Under the Administrative Agreement, the investment adviser provides certain transfer agent and administrative services for shareholders of the fund's Class C and F shares, and Class R and 529 shares. The investment adviser may contract with third parties, including American Funds Service Company,/(R)/ the fund's Transfer Agent, to provide some of these services. Services include, but are not limited to, shareholder account maintenance, transaction processing, tax information reporting and shareholder and fund communications. In addition, the investment adviser monitors, coordinates, oversees and assists with the activities performed by third parties providing such services. For Class R-1, R-2 and R-4 shares, the investment adviser has agreed to pay a portion of the fees payable under the Administrative Agreement that would otherwise have been paid by the fund. For the year ended June 30, 2009, the total fees paid by the investment adviser were $1,000. The investment adviser receives an administrative services fee at the annual rate of up to 0.15% of the average daily net assets for Class C, F, R (excluding Class R-5 and R-6 shares) and 529 shares for administrative services provided to these share classes. Administrative services fees are paid monthly and accrued daily. The investment adviser uses a portion of this fee to compensate third parties for administrative services provided to the fund. Of the remainder, the investment adviser does not retain more than 0.05% of the average daily net assets for each applicable share class. For Class R-5 and R-6 shares, the administrative services fee is calculated at the annual rate of up to 0.10% and 0.05%, respectively, of the average daily net assets of such class. The administrative services fee includes compensation for transfer agent and shareholder services provided to the fund's Class C, F, R and 529 shares. In addition to making administrative service fee payments to unaffiliated third parties, the investment adviser also makes payments from the administrative services fee to American Funds Service Company according to a fee schedule, based principally on the number of accounts serviced, contained in a Shareholder Services Agreement between the fund and American Funds Service Company. A portion of the fees paid to American Funds Service Company for transfer agent services is also paid directly from the relevant share class.International Growth and Income Fund -- Page 26 <PAGE> During the 2009 fiscal year, administrative services fees, gross of any payments made by the investment adviser, were: ADMINISTRATIVE SERVICES FEE -------------------------------------------------------------------------------- CLASS C $50,000 -------------------------------------------------------------------------------- CLASS F-1 95,000 -------------------------------------------------------------------------------- CLASS F-2 22,000 -------------------------------------------------------------------------------- CLASS 529-A 3,000 -------------------------------------------------------------------------------- CLASS 529-B --/*/ -------------------------------------------------------------------------------- CLASS 529-C --/*/ -------------------------------------------------------------------------------- CLASS 529-E --/*/ -------------------------------------------------------------------------------- CLASS 529-F-1 --/*/ -------------------------------------------------------------------------------- CLASS R-1 1,000 -------------------------------------------------------------------------------- CLASS R-2 5,000 -------------------------------------------------------------------------------- CLASS R-3 2,000 -------------------------------------------------------------------------------- CLASS R-4 1,000 -------------------------------------------------------------------------------- CLASS R-5 40,000 -------------------------------------------------------------------------------- CLASS R-6 5,000 -------------------------------------------------------------------------------- * Amount less than $1,000. PRINCIPAL UNDERWRITER AND PLANS OF DISTRIBUTION -- American Funds Distributors,/(R)/ Inc. (the "Principal Underwriter") is the principal underwriter of the fund's shares. The Principal Underwriter is located at 333 South Hope Street, Los Angeles, CA 90071; 6455 Irvine Center Drive, Irvine, CA 92618; 3500 Wiseman Boulevard, San Antonio, TX 78251; 8332 Woodfield Crossing Boulevard, Indianapolis, IN 46240; and 5300 Robin Hood Road, Norfolk, VA 23513. The Principal Underwriter receives revenues relating to sales of the fund's shares, as follows: . For Class A and 529-A shares, the Principal Underwriter receives commission revenue consisting of the balance of the Class A and 529-A sales charge remaining after the allowances by the Principal Underwriter to investment dealers. . For Class B and 529-B shares sold prior to April 21, 2009, the Principal Underwriter sold its rights to the 0.75% distribution-related portion of the 12b-1 fees paid by the fund, as well as any contingent deferred sales charges, to a third party. The Principal Underwriter compensated investment dealers for sales of Class B and 529-B shares out of the proceeds of this sale and kept any amounts remaining after this compensation was paid. . For Class C and 529-C shares, the Principal Underwriter receives any contingent deferred sales charges that apply during the first year after purchase. International Growth and Income Fund -- Page 27 <PAGE> In addition, the fund reimburses the Principal Underwriter for advancing immediate service fees to qualified dealers and advisers upon the sale of Class C and 529-C shares. The fund also reimbursed the Principal Underwriter for advancing immediate service fees to qualified dealers on sales of Class B and 529-B shares prior to April 21, 2009. The fund also reimburses the Principal Underwriter for service fees (and, in the case of Class 529-E shares, commissions) paid on a quarterly basis to qualified dealers and advisers in connection with investments in Class F-1, 529-F-1, 529-E, R-1, R-2, R-3 and R-4 shares. Commissions, revenue or service fees retained by the Principal Underwriter after allowances or compensation to dealers were:COMMISSIONS, ALLOWANCE OR REVENUE COMPENSATION FISCAL YEAR/PERIOD OR FEES RETAINED TO DEALERS ----------------------------------------------------------------------------------------------------- CLASS A 2009 $1,033,000 $4,470,000 ----------------------------------------------------------------------------------------------------- CLASS B 2009 10,000 160,000 ----------------------------------------------------------------------------------------------------- CLASS C 2009 -- 264,000 ----------------------------------------------------------------------------------------------------- CLASS 529-A 2009 20,000 93,000 ----------------------------------------------------------------------------------------------------- CLASS 529-B 2009 0 4,000 ----------------------------------------------------------------------------------------------------- CLASS 529-C 2009 -- 9,000 ----------------------------------------------------------------------------------------------------- Plans of distribution -- The fund has adopted plans of distribution (the "Plans") pursuant to rule 12b-1 under the 1940 Act. The Plans permit the fund to expend amounts to finance any activity primarily intended to result in the sale of fund shares, provided the fund's board of trustees has approved the category of expenses for which payment is being made. Each Plan is specific to a particular share class of the fund. As the fund has not adopted a Plan for Class F-2, Class R-5 or Class R-6, no 12b-1 fees are paid from Class F-2, Class R-5 or Class R-6 share assets and the following disclosure is not applicable to these share classes. Payments under the Plans may be made for service-related and/or distribution-related expenses. Service-related expenses include paying service fees to qualified dealers. Distribution-related expenses include commissions paid to qualified dealers. The amounts actually paid under the Plans for the past fiscal year, expressed as a percentage of the fund's average daily net assets attributable to the applicable share class, are disclosed in the prospectus under "Fees and expenses of the fund." Further information regarding the amounts available under each Plan is in the "Plans of Distribution" section of the prospectus. International Growth and Income Fund -- Page 28 <PAGE> Following is a brief description of the Plans: CLASS A AND 529-A -- For Class A and 529-A shares, up to 0.25% of the fund's average daily net assets attributable to such shares is reimbursed to the Principal Underwriter for paying service-related expenses, and the balance available under the applicable Plan may be paid to the Principal Underwriter for distribution-related expenses. The fund may annually expend up to 0.30% for Class A shares and up to 0.50% for Class 529-A shares under the applicable Plan. Distribution-related expenses for Class A and 529-A shares include dealer commissions and wholesaler compensation paid on sales of shares of $1 million or more purchased without a sales charge. Commissions on these "no load" purchases (which are described in further detail under the "Sales Charges" section of this statement of additional information) in excess of the Class A and 529-A Plan limitations and not reimbursed to the Principal Underwriter during the most recent fiscal quarter are recoverable for five quarters, provided that the reimbursement of such commissions does not cause the fund to exceed the annual expense limit. After five quarters, these commissions are not recoverable. CLASS B AND 529-B -- The Plans for Class B and 529-B shares provide for payments to the Principal Underwriter of up to 0.25% of the fund's average daily net assets attributable to such shares for paying service-related expenses and 0.75% for distribution-related expenses, which include the financing of commissions paid to qualified dealers.OTHER SHARE CLASSES (CLASS C, 529-C, F-1, 529-F-1, 529-E, R-1, R-2, R-3 AND R-4) -- The Plans for each of the other share classes that have adopted Plans provide for payments to the Principal Underwriter for paying service-related and distribution-related expenses of up to the following amounts of the fund's average daily net assets attributable to such shares: TOTAL SERVICE DISTRIBUTION ALLOWABLE RELATED RELATED UNDER SHARE CLASS PAYMENTS/1/ PAYMENTS/1/ THE PLANS/2/ ---------------------------------------------------------------------------------- Class C 0.25% 0.75% 1.00% ------------------------------------------------------------------------- Class 529-C 0.25 0.75 1.00 ------------------------------------------------------------------------- Class F-1 0.25 -- 0.50 ------------------------------------------------------------------------- Class 529-F-1 0.25 -- 0.50 ------------------------------------------------------------------------- Class 529-E 0.25 0.25 0.75 ------------------------------------------------------------------------- Class R-1 0.25 0.75 1.00 ------------------------------------------------------------------------- Class R-2 0.25 0.50 1.00 ------------------------------------------------------------------------- Class R-3 0.25 0.25 0.75 ------------------------------------------------------------------------- Class R-4 0.25 -- 0.50 ---------------------------------------------------------------------------------- 1Amounts in these columns represent the amounts approved by the board of trustees under the applicable Plan. 2The fund may annually expend the amounts set forth in this column under the current Plans with the approval of the board of trustees.International Growth and Income Fund -- Page 29 <PAGE> During the 2009 fiscal year, 12b-1 expenses accrued and paid, and if applicable, unpaid, were: 12B-1 UNPAID LIABILITY 12B-1 EXPENSES OUTSTANDING ------------------------------------------------------------------------------ CLASS A $2,071,000 $500,000 ------------------------------------------------------------------------------ CLASS B 81,000 15,000 ------------------------------------------------------------------------------ CLASS C 392,000 71,000 ------------------------------------------------------------------------------ CLASS F-1 213,000 46,000 ------------------------------------------------------------------------------ CLASS 529-A 10,000 2,000 ------------------------------------------------------------------------------ CLASS 529-B 2,000 --/*/ ------------------------------------------------------------------------------ CLASS 529-C 5,000 1,000 ------------------------------------------------------------------------------ CLASS 529-E 1,000 --/*/ ------------------------------------------------------------------------------ CLASS R-1 9,000 7,000 ------------------------------------------------------------------------------ CLASS R-2 9,000 6,000 ------------------------------------------------------------------------------ CLASS R-3 6,000 4,000 ------------------------------------------------------------------------------ CLASS R-4 2,000 2,000 ------------------------------------------------------------------------------ * Amount less than $1,000. Approval of the Plans -- As required by rule 12b-1 and the 1940 Act, the Plans (together with the Principal Underwriting Agreement) have been approved by the full board of trustees and separately by a majority of the independent trustees of the fund who have no direct or indirect financial interest in the operation of the Plans or the Principal Underwriting Agreement. In addition, the selection and nomination of independent trustees of the fund are committed to the discretion of the independent trustees during the existence of the Plans. Potential benefits of the Plans to the fund include quality shareholder services, savings to the fund in transfer agency costs, and benefits to the investment process from growth or stability of assets. The Plans may not be amended to materially increase the amount spent for distribution without shareholder approval. Plan expenses are reviewed quarterly by the board of trustees and the Plans must be renewed annually by the board of trustees. FEE TO VIRGINIA COLLEGE SAVINGS PLAN -- With respect to Class 529 Shares, as compensation for its oversight and administration, Virginia College Savings Plan receives a quarterly fee accrued daily and calculated at the annual rate of 0.10% on the first $30 billion of the net assets invested in Class 529 Shares of the American Funds, 0.09% on net assets between $30 billion and $60 billion, 0.08% on net assets between $60 billion and $90 billion, 0.07% on net assets between $90 billion and $120 billion, and 0.06% on net assets between $120 billion and $150 billion. The fee for any given calendar quarter is accrued and calculated on the basis of average net assets of Class 529 Shares of the American Funds for the last month of the prior calendar quarter. International Growth and Income Fund -- Page 30 <PAGE> OTHER COMPENSATION TO DEALERS -- As of July 2009, the top dealers (or their affiliates) that American Funds Distributors anticipates will receive additional compensation (as described in the prospectus) include: AIG Advisors Group Advantage Capital Corporation American General Securities Incorporated FSC Securities Corporation Royal Alliance Associates, Inc. SagePoint Financial, Inc. AXA Advisors, LLC Cadaret, Grant & Co., Inc Cambridge Investment Research, Inc. Commonwealth Financial Network Cuna Brokerage Services, Inc. Edward Jones Genworth Financial Securities Corporation Hefren-Tillotson, Inc. HTK / Janney Montgomery Group Hornor, Townsend & Kent, Inc. Janney Montgomery Scott LLC ING Advisors Network Inc. Bancnorth Investment Group, Inc. Financial Network Investment Corporation Guaranty Brokerage Services, Inc. ING Financial Partners, Inc. Multi-Financial Securities Corporation Primevest Financial Services, Inc. Intersecurities / Transamerica InterSecurities, Inc. Transamerica Financial Advisors, Inc. J. J. B. Hilliard, W. L. Lyons, LLC JJB Hilliard/PNC Bank PNC Bank, National Association PNC Investments LLC Lincoln Financial Advisors Corporation Lincoln Financial Securities Corporation LPL Group Associated Securities Corp. LPL Financial Corporation Mutual Service Corporation Uvest Investment Services Waterstone Financial Group, Inc. Merrill Lynch, Pierce, Fenner & Smith Incorporated Metlife Enterprises Metlife Securities Inc. New England Securities Tower Square Securities, Inc. Walnut Street Securities, Inc. MML Investors Services, Inc. International Growth and Income Fund -- Page 31 <PAGE> Morgan Keegan & Company, Inc. Morgan Stanley Smith Barney LLC National Planning Holdings Inc. Invest Financial Corporation Investment Centers of America, Inc. National Planning Corporation SII Investments, Inc. NFP Securities, Inc. Northwestern Mutual Investment Services, LLC Park Avenue Securities LLC PFS Investments Inc. Raymond James Group Raymond James & Associates, Inc. Raymond James Financial Services Inc. RBC Capital Markets Corporation Robert W. Baird & Co. Incorporated Securian / C.R.I. CRI Securities, LLC Securian Financial Services, Inc. U.S. Bancorp Investments, Inc. UBS Financial Services Inc. Wells Fargo Network A. G. Edwards, A Division Of Wells Fargo Advisors, LLC First Clearing LLC H.D. Vest Investment Securities, Inc. Wells Fargo Advisors Financial Network, LLC Wells Fargo Advisors Investment Services Group Wells Fargo Advisors Latin American Channel Wells Fargo Advisors Private Client Group Wells Fargo Investments, LLC International Growth and Income Fund -- Page 32 <PAGE>EXECUTION OF PORTFOLIO TRANSACTIONS The investment adviser places orders with broker-dealers for the fund's portfolio transactions. Purchases and sales of equity securities on a securities exchange or an over-the-counter market are effected through broker-dealers who receive commissions for their services. Generally, commissions relating to securities traded on foreign exchanges will be higher than commissions relating to securities traded on U.S. exchanges and may not be subject to negotiation. Equity securities may also be purchased from underwriters at prices that include underwriting fees. Purchases and sales of fixed-income securities are generally made with an issuer or a primary market-maker acting as principal with no stated brokerage commission. The price paid to an underwriter for fixed-income securities includes underwriting fees. Prices for fixed-income securities in secondary trades usually include undisclosed compensation to the market-maker reflecting the spread between the bid and ask prices for the securities. In selecting broker-dealers, the investment adviser strives to obtain "best execution" (the most favorable total price reasonably attainable under the circumstances) for the fund's portfolio transactions, taking into account a variety of factors. These factors include the size and type of transaction, the nature and character of the markets for the security to be purchased or sold, the cost, quality and reliability of the executions and the broker-dealer's ability to offer liquidity and anonymity. The investment adviser considers these factors, which involve qualitative judgments, when selecting broker-dealers and execution venues for fund portfolio transactions. The investment adviser views best execution as a process that should be evaluated over time as part of an overall relationship with particular broker-dealer firms rather than on a trade-by-trade basis. The fund does not consider the investment adviser as having an obligation to obtain the lowest commission rate available for a portfolio transaction to the exclusion of price, service and qualitative considerations. The investment adviser may execute portfolio transactions with broker-dealers who provide certain brokerage and/or investment research services to it, but only when in the investment adviser's judgment the broker-dealer is capable of providing best execution for that transaction. The receipt of these services permits the investment adviser to supplement its own research and analysis and makes available the views of, and information from, individuals and the research staffs of other firms. Such views and information may be provided in the form of written reports, telephone contacts and meetings with securities analysts. These services may include, among other things, reports and other communications with respect to individual companies, industries, countries and regions, economic, political and legal developments, as well as scheduling meetings with corporate executives and seminars and conferences related to relevant subject matters. The investment adviser considers these services to be supplemental to its own internal research efforts and therefore the receipt of investment research from broker-dealers does not tend to reduce the expenses involved in the investment adviser's research efforts. If broker-dealers were to discontinue providing such services it is unlikely the investment adviser would attempt to replicate them on its own, in part because they would then no longer provide an independent, supplemental viewpoint. Nonetheless, if it were to attempt to do so, the investment adviser would incur substantial additional costs. Research services that the investment adviser receives from broker-dealers may be used by the investment adviser in servicing the fund and other funds and accounts that it advises; however, not all such services will necessarily benefit the fund. International Growth and Income Fund -- Page 33 <PAGE> The investment adviser may pay commissions in excess of what other broker-dealers might have charged - including on an execution-only basis - for certain portfolio transactions in recognition of brokerage and/or investment research services provided by a broker-dealer. In this regard, the investment adviser has adopted a brokerage allocation procedure consistent with the requirements of Section 28(e) of the U.S. Securities Exchange Act of 1934. Section 28(e) permits an investment adviser to cause an account to pay a higher commission to a broker-dealer that provides certain brokerage and/or investment research services to the investment adviser, if the investment adviser makes a good faith determination that such commissions are reasonable in relation to the value of the services provided by such broker-dealer to the investment adviser in terms of that particular transaction or the investment adviser's overall responsibility to the fund and other accounts that it advises. Certain brokerage and/or investment research services may not necessarily benefit all accounts paying commissions to each such broker-dealer; therefore, the investment adviser assesses the reasonableness of commissions in light of the total brokerage and investment research services provided by each particular broker-dealer. In accordance with its internal brokerage allocation procedure, each equity investment division of the investment adviser periodically assesses the brokerage and investment research services provided by each broker-dealer from which it receives such services. Using its judgment, each equity investment division of the investment adviser then creates lists with suggested levels of commissions for particular broker-dealers and provides those lists to its trading desks. Neither the investment adviser nor the fund incurs any obligation to any broker-dealer to pay for research by generating trading commissions. The actual level of business received by any broker-dealer may be less than the suggested level of commissions and can, and often does, exceed the suggested level in the normal course of business. As part of its ongoing relationships with broker-dealers, the investment adviser routinely meets with firms, typically at the firm's request, to discuss the level and quality of the brokerage and research services provided, as well as the perceived value and cost of such services. In valuing the brokerage and investment research services the investment adviser receives from broker-dealers in connection with its good faith determination of reasonableness, the investment adviser does not attribute a dollar value to such services, but rather takes various factors into consideration, including the quantity, quality and usefulness of the services to the investment adviser. The investment adviser seeks, on an ongoing basis, to determine what the reasonable levels of commission rates are in the marketplace. The investment adviser takes various considerations into account when evaluating such reasonableness, including, (a) rates quoted by broker-dealers, (b) the size of a particular transaction in terms of the number of shares and dollar amount, (c) the complexity of a particular transaction, (d) the nature and character of the markets on which a particular trade takes place, (e) the ability of a broker-dealer to provide anonymity while executing trades, (f) the ability of a broker-dealer to execute large trades while minimizing market impact, (g) the extent to which a broker-dealer has put its own capital at risk, (h) the level and type of business done with a particular broker-dealer over a period of time, (i) historical commission rates, and (j) commission rates that other institutional investors are paying. When executing portfolio transactions in the same equity security for the funds and accounts, or portions of funds and accounts, over which the investment adviser, through its equity investment divisions, has investment discretion, each of the investment divisions will normally aggregate its respective purchases or sales and execute them as part of the same transaction or series of transactions. When executing portfolio transactions in the same fixed-income security for the fund and the other funds or accounts over which it or one of its affiliated companies has investment discretion, the investment adviser will normally aggregate such purchases or sales International Growth and Income Fund -- Page 34 <PAGE> and execute them as part of the same transaction or series of transactions. The objective of aggregating purchases and sales of a security is to allocate executions in an equitable manner among the funds and other accounts that have concurrently authorized a transaction in such security. The investment adviser may place orders for the fund's portfolio transactions with broker-dealers who have sold shares of the funds managed by the investment adviser or its affiliated companies; however, it does not consider whether a broker-dealer has sold shares of the funds managed by the investment adviser or its affiliated companies when placing any such orders for the fund's portfolio transactions. Brokerage commissions paid on portfolio transactions for the fiscal year ended June 30, 2009, amounted to $2,116,299. The fund is required to disclose information regarding investments in the securities of its "regular" broker-dealers (or parent companies of its regular broker-dealers) that derive more than 15% of their revenue from broker-dealer, underwriter or investment adviser activities. A regular broker-dealer is (a) one of the 10 broker-dealers that received from the fund the largest amount of brokerage commissions by participating, directly or indirectly, in the fund's portfolio transactions during the fund's most recent fiscal year; (b) one of the 10 broker-dealers that engaged as principal in the largest dollar amount of portfolio transactions of the fund during the fund's most recent fiscal year; or (c) one of the 10 broker-dealers that sold the largest amount of securities of the fund during the fund's most recent fiscal year. At the end of the fund's most recent fiscal year, the fund's regular broker-dealers included UBS AG. As of the fund's most recent fiscal year-end, the fund held equity securities of UBS AG in the amount of $8,801,000. International Growth and Income Fund -- Page 35 <PAGE> DISCLOSURE OF PORTFOLIO HOLDINGS The fund's investment adviser, on behalf of the fund, has adopted policies and procedures with respect to the disclosure of information about fund portfolio securities. These policies and procedures have been reviewed by the fund's board of trustees and compliance will be periodically assessed by the board in connection with reporting from the fund's Chief Compliance Officer. Under these policies and procedures, the fund's complete list of portfolio holdings available for public disclosure, dated as of the end of each calendar quarter, is permitted to be posted on the American Funds website no earlier than the tenth day after such calendar quarter. In practice, the public portfolio typically is posted on the website approximately 45 days after the end of the calendar quarter. In addition, the fund's list of top 10 equity portfolio holdings measured by percentage of net assets invested, dated as of the end of each calendar month, is permitted to be posted on the American Funds website no earlier than the tenth day after such month. Such portfolio holdings information may then be disclosed to any person pursuant to an ongoing arrangement to disclose portfolio holdings information to such person no earlier than one day after the day on which the information is posted on the American Funds website. The fund's custodian, outside counsel and auditor, each of which requires portfolio holdings information for legitimate business and fund oversight purposes, may receive the information earlier. Affiliated persons of the fund, including officers of the fund and employees of the investment adviser and its affiliates, who receive portfolio holdings information are subject to restrictions and limitations on the use and handling of such information pursuant to applicable codes of ethics, including requirements not to trade in securities based on confidential and proprietary investment information, to maintain the confidentiality of such information, and to preclear securities trades and report securities transactions activity, as applicable. For more information on these restrictions and limitations, please see the "Code of Ethics" section in this statement of additional information and the Code of Ethics. Third party service providers of the fund, as described in this statement of additional information, receiving such information are subject to confidentiality obligations. When portfolio holdings information is disclosed other than through the American Funds website to persons not affiliated with the fund (which, as described above, would typically occur no earlier than one day after the day on which the information is posted on the American Funds website), such persons will be bound by agreements (including confidentiality agreements) or fiduciary obligations that restrict and limit their use of the information to legitimate business uses only. Neither the fund nor its investment adviser or any affiliate thereof receives compensation or other consideration in connection with the disclosure of information about portfolio securities. International Growth and Income Fund -- Page 36 <PAGE> Subject to board policies, the authority to disclose a fund's portfolio holdings, and to establish policies with respect to such disclosure, resides with the appropriate investment-related committees of the fund's investment adviser. In exercising their authority, the committees determine whether disclosure of information about the fund's portfolio securities is appropriate and in the best interest of fund shareholders. The investment adviser has implemented policies and procedures to address conflicts of interest that may arise from the disclosure of fund holdings. For example, the investment adviser's code of ethics specifically requires, among other things, the safeguarding of information about fund holdings and contains prohibitions designed to prevent the personal use of confidential, proprietary investment information in a way that would conflict with fund transactions. In addition, the investment adviser believes that its current policy of not selling portfolio holdings information and not disclosing such information to unaffiliated third parties until such holdings have been made public on the American Funds website (other than to certain fund service providers for legitimate business and fund oversight purposes) helps reduce potential conflicts of interest between fund shareholders and the investment adviser and its affiliates. International Growth and Income Fund -- Page 37 <PAGE> PRICE OF SHARES Shares are purchased at the offering price or sold at the net asset value price next determined after the purchase or sell order is received by the fund or the Transfer Agent provided that your request contains all information and legal documentation necessary to process the transaction; the offering or net asset value price is effective for orders received prior to the time of determination of the net asset value and, in the case of orders placed with dealers or their authorized designees, accepted by the Principal Underwriter, the Transfer Agent, a dealer or any of their designees. In the case of orders sent directly to the fund or the Transfer Agent, an investment dealer should be indicated. The dealer is responsible for promptly transmitting purchase and sell orders to the Principal Underwriter. Orders received by the investment dealer or authorized designee, the Transfer Agent or the fund after the time of the determination of the net asset value will be entered at the next calculated offering price. Note that investment dealers or other intermediaries may have their own rules about share transactions and may have earlier cut-off times than those of the fund. For more information about how to purchase through your intermediary, contact your intermediary directly. Prices that appear in the newspaper do not always indicate prices at which you will be purchasing and redeeming shares of the fund, since such prices generally reflect the previous day's closing price, while purchases and redemptions are made at the next calculated price. The price you pay for shares, the offering price, is based on the net asset value per share, which is calculated once daily as of approximately 4 p.m. New York time, which is the normal close of trading on the New York Stock Exchange, each day the Exchange is open. If, for example, the Exchange closes at 1 p.m., the fund's share price would still be determined as of 4 p.m. New York time. The New York Stock Exchange is currently closed on weekends and on the following holidays: New Year's Day; Martin Luther King, Jr. Day; Presidents' Day; Good Friday; Memorial Day; Independence Day; Labor Day; Thanksgiving; and Christmas Day. Each share class of the fund has a separately calculated net asset value (and share price). All portfolio securities of funds managed by Capital Research and Management Company (other than American Funds Money Market Fund) are valued, and the net asset values per share for each share class are determined, as indicated below. The fund follows standard industry practice by typically reflecting changes in its holdings of portfolio securities on the first business day following a portfolio trade. Equity securities, including depositary receipts, are valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market in which the security trades. Fixed-income securities are valued at prices obtained from one or more independent pricing vendors, when such prices are available; however, in circumstances where the investment adviser deems it appropriate to do so, such securities will be valued in good faith at the mean quoted bid and asked prices that are reasonably and timely available (or bid prices, if asked prices are not available) or at prices for securities of comparable maturity, quality and type. The pricing vendors base bond prices on, among other things, valuation matrices which may incorporate dealer-supplied valuations, proprietary pricing models and an evaluation of the yield curve as of approximately 3 p.m. New York time. The fund's investment adviser performs certain checks on these prices prior to calculation of the fund's net asset value. International Growth and Income Fund -- Page 38 <PAGE> Securities with both fixed-income and equity characteristics (e.g., convertible bonds, preferred stocks, units comprised of more than one type of security, etc.), or equity securities traded principally among fixed-income dealers, are valued in the manner described above for either equity or fixed-income securities, depending on which method is deemed most appropriate by the investment adviser. Securities with original maturities of one year or less having 60 days or less to maturity are amortized to maturity based on their cost if acquired within 60 days of maturity, or if already held on the 60th day, based on the value determined on the 61st day. Forward currency contracts are valued at the mean of representative quoted bid and asked prices. Assets or liabilities initially expressed in terms of currencies other than U.S. dollars are translated prior to the next determination of the net asset value of the fund's shares into U.S. dollars at the prevailing market rates. Securities and assets for which market quotations are not readily available or are considered unreliable are valued at fair value as determined in good faith under policies approved by the fund's board. Subject to board oversight, the fund's board has delegated the obligation to make fair valuation determinations to a valuation committee established by the fund's investment adviser. The board receives regular reports describing fair-valued securities and the valuation methods used. The valuation committee has adopted guidelines and procedures (consistent with SEC rules and guidance) to consider certain relevant principles and factors when making all fair value determinations. As a general principle, securities lacking readily available market quotations, or that have quotations that are considered unreliable by the investment adviser, are valued in good faith by the valuation committee based upon what the fund might reasonably expect to receive upon their current sale. Fair valuations and valuations of investments that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred. The valuation committee considers relevant indications of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security, such as the type and cost of the security, contractual or legal restrictions on resale of the security, relevant financial or business developments of the issuer, actively traded similar or related securities, conversion or exchange rights on the security, related corporate actions, significant events occurring after the close of trading in the security and changes in overall market conditions. The valuation committee employs additional fair value procedures to address issues related to equity holdings of applicable fund portfolios outside the United States. Securities owned by these funds trade in markets that open and close at different times, reflecting time zone differences. If significant events occur after the close of a market (and before these fund's net asset values are next determined) which affect the value of portfolio securities, appropriate adjustments from closing market prices may be made to reflect these events. Events of this type could include, for example, earthquakes and other natural disasters or significant price changes in other markets (e.g., U.S. stock markets). International Growth and Income Fund -- Page 39 <PAGE> Each class of shares represents interests in the same portfolio of investments and is identical in all respects to each other class, except for differences relating to distribution, service and other charges and expenses, certain voting rights, differences relating to eligible investors, the designation of each class of shares, conversion features and exchange privileges. Expenses attributable to the fund, but not to a particular class of shares, are borne by each class pro rata based on relative aggregate net assets of the classes. Expenses directly attributable to a class of shares are borne by that class of shares. Liabilities, including accruals of taxes and other expense items attributable to particular share classes, are deducted from total assets attributable to such share classes. Net assets so obtained for each share class are divided by the total number of shares outstanding of that share class, and the result, rounded to the nearest cent, is the net asset value per share for that share class. International Growth and Income Fund -- Page 40 <PAGE> TAXES AND DISTRIBUTIONS FUND TAXATION -- The fund has elected to be treated as a regulated investment company under Subchapter M of the Internal Revenue Code (the "Code"). A regulated investment company qualifying under Subchapter M of the Code is required to distribute to its shareholders at least 90% of its investment company taxable income (including the excess of net short-term capital gain over net long-term capital losses) and generally is not subject to federal income tax to the extent that it distributes annually 100% of its investment company taxable income and net realized capital gains in the manner required under the Code. The fund intends to distribute annually all of its investment company taxable income and net realized capital gains and therefore does not expect to pay federal income tax, although in certain circumstances the fund may determine that it is in the interest of shareholders to distribute less than that amount. To be treated as a regulated investment company under Subchapter M of the Code, the fund must also (a) derive at least 90% of its gross income from dividends, interest, payments with respect to securities loans, net income from certain publicly traded partnerships and gains from the sale or other disposition of securities or foreign currencies, or other income (including, but not limited to, gains from options, futures or forward contracts) derived with respect to the business of investing in such securities or currencies, and (b) diversify its holdings so that, at the end of each fiscal quarter, (i) at least 50% of the market value of the fund's assets is represented by cash, U.S. government securities and securities of other regulated investment companies, and other securities (for purposes of this calculation, generally limited in respect of any one issuer, to an amount not greater than 5% of the market value of the fund's assets and 10% of the outstanding voting securities of such issuer) and (ii) not more than 25% of the value of its assets is invested in the securities of any one issuer (other than U.S. government securities or the securities of other regulated investment companies), two or more issuers which the fund controls and which are determined to be engaged in the same or similar trades or businesses or the securities of certain publicly traded partnerships. Under the Code, a nondeductible excise tax of 4% is imposed on the excess of a regulated investment company's "required distribution" for the calendar year ending within the regulated investment company's taxable year over the "distributed amount" for such calendar year. The term "required distribution" generally means the sum of (a) 98% of ordinary income (generally net investment income) for the calendar year, (b) 98% of capital gain (both long-term and short-term) for the one-year period ending on October 31 (as though the one-year period ending on October 31 were the regulated investment company's taxable year) and (c) the sum of any untaxed, undistributed net investment income and net capital gains of the regulated investment company for prior periods. The term "distributed amount" generally means the sum of (a) amounts actually distributed by the fund from its current year's ordinary income and capital gain net income and (b) any amount on which the fund pays income tax during the periods described above. Although the fund intends to distribute its net investment income and net capital gains so as to avoid excise tax liability, the fund may determine that it is in the interest of shareholders to distribute a lesser amount. The following information may not apply to you if you hold fund shares in a tax-deferred account, such as a retirement plan or education savings account. Please see your tax adviser for more information. International Growth and Income Fund -- Page 41 <PAGE> DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS -- Dividends and capital gain distributions on fund shares will be reinvested in shares of the fund of the same class, unless shareholders indicate in writing that they wish to receive them in cash or in shares of the same class of other American Funds, as provided in the prospectus. Dividends and capital gain distributions by 529 share classes will be automatically reinvested. Distributions of investment company taxable income and net realized capital gains to shareholders will be taxable whether received in shares or in cash, unless such shareholders are exempt from taxation. Shareholders electing to receive distributions in the form of additional shares will have a cost basis for federal income tax purposes in each share so received equal to the net asset value of that share on the reinvestment date. Dividends and capital gain distributions by the fund to a tax-deferred retirement plan account are not taxable currently. When a dividend or a capital gain is distributed by the fund, the net asset value per share is reduced by the amount of the payment. DIVIDENDS -- The fund intends to follow the practice of distributing substantially all of its investment company taxable income. Investment company taxable income generally includes dividends, interest, net short-term capital gains in excess of net long-term capital losses, and certain foreign currency gains, if any, less expenses and certain foreign currency losses. To the extent the fund invests in stock of domestic and certain foreign corporations and meets the applicable holding period requirement, it may receive "qualified dividends". The fund will designate the amount of "qualified dividends" to its shareholders in a notice sent within 60 days of the close of its fiscal year and will report "qualified dividends" to shareholders on Form 1099-DIV. Under the Code, gains or losses attributable to fluctuations in exchange rates that occur between the time the fund accrues receivables or liabilities denominated in a foreign currency and the time the fund actually collects such receivables, or pays such liabilities, generally are treated as ordinary income or ordinary loss. Similarly, on disposition of debt securities denominated in a foreign currency and on disposition of certain futures contracts, forward contracts and options, gains or losses attributable to fluctuations in the value of foreign currency between the date of acquisition of the security or contract and the date of disposition are also treated as ordinary gain or loss. These gains or losses, referred to under the Code as Section 988 gains or losses, may increase or decrease the amount of the fund's investment company taxable income to be distributed to its shareholders as ordinary income. If the fund invests in stock of certain passive foreign investment companies, the fund may be subject to U.S. federal income taxation on a portion of any "excess distribution" with respect to, or gain from the disposition of, such stock. The tax would be determined by allocating such distribution or gain ratably to each day of the fund's holding period for the stock. The distribution or gain so allocated to any taxable year of the fund, other than the taxable year of the excess distribution or disposition, would be taxed to the fund at the highest ordinary income rate in effect for such year, and the tax would be further increased by an interest charge to reflect the value of the tax deferral deemed to have resulted from the ownership of the foreign company's stock. Any amount of distribution or gain allocated to the taxable year of the distribution or disposition would be included in the fund's investment company taxable income and, accordingly, would not be taxable to the fund to the extent distributed by the fund as a dividend to its shareholders. International Growth and Income Fund -- Page 42 <PAGE> To avoid such tax and interest, the fund intends to elect to treat these securities as sold on the last day of its fiscal year and recognize any gains for tax purposes at that time. Under this election, deductions for losses are allowable only to the extent of any prior recognized gains, and both gains and losses will be treated as ordinary income or loss. The fund will be required to distribute any resulting income, even though it has not sold the security and received cash to pay such distributions. Upon disposition of these securities, any gain recognized is treated as ordinary income and loss is treated as ordinary loss to the extent of any prior recognized gain. Dividends from domestic corporations are expected to comprise some portion of the fund's gross income. To the extent that such dividends constitute any of the fund's gross income, a portion of the income distributions of the fund to corporate shareholders may be eligible for the deduction for dividends received by corporations. Corporate shareholders will be informed of the portion of dividends that so qualifies. The dividends-received deduction is reduced to the extent that either the fund shares, or the underlying shares of stock held by the fund, with respect to which dividends are received, are treated as debt-financed under federal income tax law, and is eliminated if the shares are deemed to have been held by the shareholder or the fund, as the case may be, for less than 46 days during the 91-day period beginning on the date that is 45 days before the date on which the shares become ex-dividend. Capital gain distributions are not eligible for the dividends-received deduction. A portion of the difference between the issue price of zero coupon securities and their face value (original issue discount) is considered to be income to the fund each year, even though the fund will not receive cash interest payments from these securities. This original issue discount (imputed income) will comprise a part of the investment company taxable income of the fund that must be distributed to shareholders in order to maintain the qualification of the fund as a regulated investment company and to avoid federal income taxation at the level of the fund. The price of a bond purchased after its original issuance may reflect market discount which, depending on the particular circumstances, may affect the tax character and amount of income required to be recognized by a fund holding the bond. In determining whether a bond is purchased with market discount, certain de minimis rules apply. Dividend and interest income received by the fund from sources outside the United States may be subject to withholding and other taxes imposed by such foreign jurisdictions. Tax conventions between certain countries and the United States, however, may reduce or eliminate these foreign taxes. Some foreign countries impose taxes on capital gains with respect to investments by foreign investors. CAPITAL GAIN DISTRIBUTIONS -- The fund also intends to distribute its net capital gain each year. The fund's net capital gain is the entire excess of net realized long-term capital gains over net realized short-term capital losses. Net capital gains for a fiscal year are computed by taking into account any capital loss carryforward of the fund. If any net long-term capital gains in excess of net short-term capital losses are retained by the fund for reinvestment, requiring federal income taxes to be paid thereon by the fund, the fund intends to elect to treat such capital gains as having been distributed to shareholders. As a result, each shareholder will report such capital gains as long-term International Growth and Income Fund -- Page 43 <PAGE> capital gains taxable to individual shareholders at a maximum 15% capital gains rate, will be able to claim a pro rata share of federal income taxes paid by the fund on such gains as a credit against personal federal income tax liability, and will be entitled to increase the adjusted tax basis on fund shares by the difference between a pro rata share of the retained gains and such shareholder's related tax credit. SHAREHOLDER TAXATION -- In January of each year, individual shareholders holding fund shares in taxable accounts will receive a statement of the federal income tax status of all distributions. Shareholders of the fund also may be subject to state and local taxes on distributions received from the fund. DIVIDENDS -- Fund dividends are taxable to shareholders as ordinary income. All or a portion of a fund's dividend distribution may be a "qualified dividend." If the fund meets the applicable holding period requirement, it will distribute dividends derived from qualified corporation dividends to shareholders as qualified dividends. Interest income from bonds and money market instruments and nonqualified foreign dividends will be distributed to shareholders as nonqualified fund dividends. The fund will report on Form 1099-DIV the amount of each shareholder's dividend that may be treated as a qualified dividend. If a shareholder other than a corporation meets the requisite holding period requirement, qualified dividends are taxable at a maximum rate of 15%. CAPITAL GAINS -- Distributions of net capital gain that the fund properly designates as "capital gain dividends" generally will be taxable as long-term capital gain, regardless of the length of time the shares of the fund have been held by a shareholder. For non-corporate shareholders, a capital gain distribution by the fund is subject to a maximum tax rate of 15%. Any loss realized upon the redemption of shares held at the time of redemption for six months or less from the date of their purchase will be treated as a long-term capital loss to the extent of any amounts treated as distributions of long-term capital gains (including any undistributed amounts treated as distributed capital gains, as described above) during such six-month period. Distributions by the fund result in a reduction in the net asset value of the fund's shares. Investors should consider the tax implications of buying shares just prior to a distribution. The price of shares purchased at that time includes the amount of the forthcoming distribution. Those purchasing just prior to a distribution will subsequently receive a partial return of their investment capital upon payment of the distribution, which will be taxable to them. The fund may make the election permitted under Section 853 of the Code so that shareholders may (subject to limitations) be able to claim a credit or deduction on their federal income tax returns for, and will be required to treat as part of the amounts distributed to them, their pro rata portion of qualified taxes paid by the fund to foreign countries (such taxes relate primarily to investment income). The fund may make an election under Section 853 of the Code, provided that more than 50% of the value of the total assets of the fund at the close of the taxable year consists of securities of foreign corporations. The foreign tax credit available to shareholders is subject to certain limitations imposed by the Code. Redemptions of shares, including exchanges for shares of other American Funds, may result in federal, state and local tax consequences (gain or loss) to the shareholder. International Growth and Income Fund -- Page 44 <PAGE> If a shareholder exchanges or otherwise disposes of shares of the fund within 90 days of having acquired such shares, and if, as a result of having acquired those shares, the shareholder subsequently pays a reduced sales charge for shares of the fund, or of a different fund, the sales charge previously incurred in acquiring the fund's shares will not be taken into account (to the extent such previous sales charges do not exceed the reduction in sales charges) for the purposes of determining the amount of gain or loss on the exchange, but will be treated as having been incurred in the acquisition of such other fund(s). Any loss realized on a redemption or exchange of shares of the fund will be disallowed to the extent substantially identical shares are reacquired within the 61-day period beginning 30 days before and ending 30 days after the shares are disposed of. Any loss disallowed under this rule will be added to the shareholder's tax basis in the new shares purchased. The fund will be required to report to the IRS all distributions of investment company taxable income and capital gains as well as gross proceeds from the redemption or exchange of fund shares, except in the case of certain exempt shareholders. Under the backup withholding provisions of Section 3406 of the Code, distributions of investment company taxable income and capital gains and proceeds from the redemption or exchange of a regulated investment company may be subject to backup withholding of federal income tax in the case of non-exempt U.S. shareholders who fail to furnish the fund with their taxpayer identification numbers and with required certifications regarding their status under the federal income tax law. Withholding may also be required if the fund is notified by the IRS or a broker that the taxpayer identification number furnished by the shareholder is incorrect or that the shareholder has previously failed to report interest or dividend income. If the withholding provisions are applicable, any such distributions and proceeds, whether taken in cash or reinvested in additional shares, will be reduced by the amounts required to be withheld. The foregoing discussion of U.S. federal income tax law relates solely to the application of that law to U.S. persons (i.e., U.S. citizens and residents and U.S. corporations, partnerships, trusts and estates). Each shareholder who is not a U.S. person should consider the U.S. and foreign tax consequences of ownership of shares of the fund, including the possibility that such a shareholder may be subject to a U.S. withholding tax at a rate of 30% (or a lower rate under an applicable income tax treaty) on dividend income received by the shareholder. Shareholders should consult their tax advisers about the application of federal, state and local tax law in light of their particular situation. International Growth and Income Fund -- Page 45 <PAGE> UNLESS OTHERWISE NOTED, ALL REFERENCES IN THE FOLLOWING PAGES TO CLASS A, B, C OR F-1 SHARES ALSO REFER TO THE CORRESPONDING CLASS 529-A, 529-B, 529-C OR 529-F-1 SHARES. CLASS 529 SHAREHOLDERS SHOULD ALSO REFER TO THE APPLICABLE PROGRAM DESCRIPTION FOR INFORMATION ON POLICIES AND SERVICES SPECIFICALLY RELATING TO THESE ACCOUNTS. SHAREHOLDERS HOLDING SHARES THROUGH AN ELIGIBLE RETIREMENT PLAN SHOULD CONTACT THEIR PLAN'S ADMINISTRATOR OR RECORDKEEPER FOR INFORMATION REGARDING PURCHASES, SALES AND EXCHANGES. PURCHASE AND EXCHANGE OF SHARES PURCHASES BY INDIVIDUALS -- As described in the prospectus, you may generally open an account and purchase fund shares by contacting a financial adviser or investment dealer authorized to sell the fund's shares. You may make investments by any of the following means: CONTACTING YOUR FINANCIAL ADVISER -- Deliver or mail a check to your financial adviser. BY MAIL -- For initial investments, you may mail a check, made payable to the fund, directly to the address indicated on the account application. Please indicate an investment dealer on the account application. You may make additional investments by filling out the "Account Additions" form at the bottom of a recent transaction confirmation and mailing the form, along with a check made payable to the fund, using the envelope provided with your confirmation. The amount of time it takes for us to receive regular U.S. postal mail may vary and there is no assurance that we will receive such mail on the day you expect. Mailing addresses for regular U.S. postal mail can be found in the prospectus. To send investments or correspondence to us via overnight mail or courier service, use either of the following addresses: American Funds 8332 Woodfield Crossing Blvd. Indianapolis, IN 46240-2482 American Funds 5300 Robin Hood Rd. Norfolk, VA 23513-2407 BY TELEPHONE -- Using the American FundsLine. Please see the "Shareholder account services and privileges" section of this statement of additional information for more information regarding this service. BY INTERNET -- Using americanfunds.com. Please see the "Shareholder account services and privileges" section of this statement of additional information for more information regarding this service. BY WIRE -- If you are making a wire transfer, instruct your bank to wire funds to: Wells Fargo Bank ABA Routing No. 121000248 Account No. 4600-076178 International Growth and Income Fund -- Page 46 <PAGE> Your bank should include the following information when wiring funds: For credit to the account of: American Funds Service Company (fund's name) For further credit to: (shareholder's fund account number) (shareholder's name) You may contact American Funds Service Company at 800/421-0180 if you have questions about making wire transfers. OTHER PURCHASE INFORMATION -- Class 529 shares may be purchased only through CollegeAmerica by investors establishing qualified higher education savings accounts. Class 529-E shares may be purchased only by investors participating in CollegeAmerica through an eligible employer plan. The American Funds state tax-exempt funds are qualified for sale only in certain jurisdictions, and tax-exempt funds in general should not serve as retirement plan investments. In addition, the fund and the Principal Underwriter reserve the right to reject any purchase order. Class R-5 and R-6 shares may be made available to certain charitable foundations organized and maintained by The Capital Group Companies, Inc. or its affiliates. Class R-5 and R-6 shares may also be made available to the Virginia College Savings Plan for use in the Virginia Education Savings Trust and the Virginia Prepaid Education Program. PURCHASE MINIMUMS AND MAXIMUMS -- All investments are subject to the purchase minimums and maximums described in the prospectus. As noted in the prospectus, purchase minimums may be waived or reduced in certain cases. In the case of American Funds non-tax-exempt funds, the initial purchase minimum of $25 may be waived for the following account types: . Payroll deduction retirement plan accounts (such as, but not limited to, 403(b), 401(k), SIMPLE IRA, SARSEP and deferred compensation plan accounts); and . Employer-sponsored CollegeAmerica accounts. The following account types may be established without meeting the initial purchase minimum: . Retirement accounts that are funded with employer contributions; and . Accounts that are funded with monies set by court decree. The following account types may be established without meeting the initial purchase minimum, but shareholders wishing to invest in two or more funds must meet the normal initial purchase minimum of each fund: International Growth and Income Fund -- Page 47 <PAGE> . Accounts that are funded with (a) transfers of assets, (b) rollovers from retirement plans, (c) rollovers from 529 college savings plans or (d) required minimum distribution automatic exchanges; and . American Funds Money Market Fund accounts registered in the name of clients of Capital Guardian Trust Company's Personal Investment Management group. Certain accounts held on the fund's books, known as omnibus accounts, contain multiple underlying accounts that are invested in shares of the fund. These underlying accounts are maintained by entities such as financial intermediaries and are subject to the applicable initial purchase minimums as described in the prospectus and this statement of additional information. However, in the case where the entity maintaining these accounts aggregates the accounts' purchase orders for fund shares, such accounts are not required to meet the fund's minimum amount for subsequent purchases. EXCHANGES -- You may only exchange shares into other American Funds within the same share class. However, exchanges from Class A shares of American Funds Money Market Fund may be made to Class C shares of other American Funds for dollar cost averaging purposes. Exchanges are not permitted from Class A shares of American Funds Money Market Fund to Class C shares of Intermediate Bond Fund of America, Limited Term Tax-Exempt Bond Fund of America or Short-Term Bond Fund of America. Exchange purchases are subject to the minimum investment requirements of the fund purchased and no sales charge generally applies. However, exchanges of shares from American Funds Money Market Fund are subject to applicable sales charges, unless the American Funds Money Market Fund shares were acquired by an exchange from a fund having a sales charge, or by reinvestment or cross-reinvestment of dividends or capital gain distributions. Exchanges of Class F shares generally may only be made through fee-based programs of investment firms that have special agreements with the fund's distributor and certain registered investment advisers. You may exchange shares of other classes by contacting the Transfer Agent, by contacting your investment dealer or financial adviser, by using American FundsLine or americanfunds.com, or by telephoning 800/421-0180 toll-free, or faxing (see "American Funds Service Company service areas" in the prospectus for the appropriate fax numbers) the Transfer Agent. For more information, see "Shareholder account services and privileges" in this statement of additional information. THESE TRANSACTIONS HAVE THE SAME TAX CONSEQUENCES AS ORDINARY SALES AND PURCHASES. Shares held in employer-sponsored retirement plans may be exchanged into other American Funds by contacting your plan administrator or recordkeeper. Exchange redemptions and purchases are processed simultaneously at the share prices next determined after the exchange order is received (see "Price of shares" in this statement of additional information). CONVERSION -- Currently, Class C shares of the fund automatically convert to Class F-1 shares in the month of the 10-year anniversary of the purchase date. The board of trustees of the fund reserves the right at any time, without shareholder approval, to amend the conversion feature of the Class C shares, including without limitation, converting into a different share class or not converting. In making its decision, the board of trustees will consider, among other things, the effect of any such amendment on shareholders. FREQUENT TRADING OF FUND SHARES -- As noted in the prospectus, certain redemptions may trigger a purchase block lasting 30 calendar days under the fund's "purchase blocking policy." Under this policy, systematic redemptions will not trigger a purchase block and systematic purchases will not be prevented. For purposes of this policy, systematic redemptions include, for example, regular periodic automatic redemptions and statement of intention escrow share redemptions. Systematic purchases include, for example, regular periodic automatic purchases and automatic reinvestments of dividends and capital gain distributions. International Growth and Income Fund -- Page 48 <PAGE> OTHER POTENTIALLY ABUSIVE ACTIVITY -- In addition to implementing purchase blocks, American Funds Service Company will monitor for other types of activity that could potentially be harmful to the American Funds - for example, short-term trading activity in multiple funds. When identified, American Funds Service Company will request that the shareholder discontinue the activity. If the activity continues, American Funds Service Company will freeze the shareholder account to prevent all activity other than redemptions of fund shares. MOVING BETWEEN SHARE CLASSES If you wish to "move" your investment between share classes (within the same fund or between different funds), we generally will process your request as an exchange of the shares you currently hold for shares in the new class or fund. Below is more information about how sales charges are handled for various scenarios. EXCHANGING CLASS B SHARES FOR CLASS A SHARES -- If you exchange Class B shares for Class A shares during the contingent deferred sales charge period you are responsible for paying any applicable deferred sales charges attributable to those Class B shares, but you will not be required to pay a Class A sales charge. If, however, you exchange your Class B shares for Class A shares after the contingent deferred sales charge period, you are responsible for paying any applicable Class A sales charges. EXCHANGING CLASS C SHARES FOR CLASS A SHARES -- If you exchange Class C shares for Class A shares, you are still responsible for paying any Class C contingent deferred sales charges and applicable Class A sales charges. EXCHANGING CLASS C SHARES FOR CLASS F SHARES -- If you are part of a qualified fee-based program and you wish to exchange your Class C shares for Class F shares to be held in the program, you are still responsible for paying any applicable Class C contingent deferred sales charges. EXCHANGING CLASS F SHARES FOR CLASS A SHARES -- You can exchange Class F shares held in a qualified fee-based program for Class A shares without paying an initial Class A sales charge if all of the following requirements are met: (a) you are leaving or have left the fee-based program, (b) you have held the Class F shares in the program for at least one year, and (c) you notify American Funds Service Company of your request. If you have already redeemed your Class F shares, the foregoing requirements apply and you must purchase Class A shares within 90 days after redeeming your Class F shares to receive the Class A shares without paying an initial Class A sales charge. EXCHANGING CLASS A SHARES FOR CLASS F SHARES -- If you are part of a qualified fee-based program and you wish to exchange your Class A shares for Class F shares to be held in the program, any Class A sales charges (including contingent deferred sales charges) that you paid or are payable will not be credited back to your account. EXCHANGING CLASS A SHARES FOR CLASS R SHARES -- Provided it is eligible to invest in Class R shares, a retirement plan currently invested in Class A shares may exchange its shares for Class R shares. Any Class A sales charges that the retirement plan previously paid will not be credited back to the plan's account. International Growth and Income Fund -- Page 49 <PAGE> EXCHANGING CLASS F-1 SHARES FOR CLASS F-2 SHARES -- If you are part of a qualified fee-based program that offers Class F-2 shares, you may exchange your Class F-1 shares for Class F-2 shares to be held in the program. MOVING BETWEEN OTHER SHARE CLASSES -- If you desire to move your investment between share classes and the particular scenario is not described in this statement of additional information, please contact American Funds Service Company at 800/421-0180 for more information. NON-REPORTABLE TRANSACTIONS -- Automatic conversions described in the prospectus will be non-reportable for tax purposes. In addition, except in the case of a movement between a 529 share class and a non-529 share class, an exchange of shares from one share class of a fund to another share class of the same fund will be treated as a non-reportable exchange for tax purposes, provided that the exchange request is received in writing by American Funds Service Company and processed as a single transaction. International Growth and Income Fund -- Page 50 <PAGE> SALES CHARGES CLASS A PURCHASES PURCHASES BY CERTAIN 403(B) PLANS A 403(b) plan may not invest in Class A or C shares unless such plan was invested in Class A or C shares before January 1, 2009. Participant accounts of a 403(b) plan that were treated as an individual-type plan for sales charge purposes before January 1, 2009, may continue to be treated as accounts of an individual-type plan for sales charge purposes. Participant accounts of a 403(b) plan that were treated as an employer-sponsored plan for sales charge purposes before January 1, 2009, may continue to be treated as accounts of an employer-sponsored plan for sales charge purposes. Participant accounts of a 403(b) plan that is established on or after January 1, 2009 are treated as accounts of an employer-sponsored plan for sales charge purposes. PURCHASES BY SEP PLANS AND SIMPLE IRA PLANS Participant accounts in a Simplified Employee Pension (SEP) plan or a Savings Incentive Match Plan for Employees of Small Employers IRA (SIMPLE IRA) plan will be aggregated together for Class A sales charge purposes if the SEP plan or SIMPLE IRA plan was established after November 15, 2004 by an employer adopting a prototype plan produced by American Funds Distributors, Inc. In the case where the employer adopts any other plan (including, but not limited to, an IRS model agreement), each participant's account in the plan will be aggregated with the participant's own personal investments that qualify under the aggregation policy. A SEP plan or SIMPLE IRA plan with a certain method of aggregating participant accounts as of November 15, 2004 may continue with that method so long as the employer has not modified the plan document since that date. OTHER PURCHASES Pursuant to a determination of eligibility by a vice president or more senior officer of the Capital Research and Management Company Fund Administration Unit, or by his or her designee, Class A shares of the American Funds stock, stock/bond and bond funds may be sold at net asset value to: (1) current or retired directors, trustees, officers and advisory board members of, and certain lawyers who provide services to, the funds managed by Capital Research and Management Company, current or retired employees of Washington Management Corporation, current or retired employees and partners of The Capital Group Companies, Inc. and its affiliated companies, certain family members of the above persons, and trusts or plans primarily for such persons; (2) currently registered representatives and assistants directly employed by such representatives, retired registered representatives with respect to accounts established while active, or full-time employees (collectively, "Eligible Persons") (and their (a) spouses or equivalents if recognized under local law, (b) parents and children, including parents and children in step and adoptive relationships, sons-in-law and daughters-in-law, and (c) parents-in-law, if the Eligible Persons or International Growth and Income Fund -- Page 51 <PAGE> the spouses, children or parents of the Eligible Persons are listed in the account registration with the parents-in-law) of dealers who have sales agreements with the Principal Underwriter (or who clear transactions through such dealers), plans for the dealers, and plans that include as participants only the Eligible Persons, their spouses, parents and/or children; (3) currently registered investment advisers ("RIAs") and assistants directly employed by such RIAs, retired RIAs with respect to accounts established while active, or full-time employees (collectively, "Eligible Persons") (and their (a) spouses or equivalents if recognized under local law, (b) parents and children, including parents and children in step and adoptive relationships, sons-in-law and daughters-in-law and (c) parents-in-law, if the Eligible Persons or the spouses, children or parents of the Eligible Persons are listed in the account registration with the parents-in-law) of RIA firms that are authorized to sell shares of the funds, plans for the RIA firms, and plans that include as participants only the Eligible Persons, their spouses, parents and/or children; (4) companies exchanging securities with the fund through a merger, acquisition or exchange offer; (5) insurance company separate accounts; (6) accounts managed by subsidiaries of The Capital Group Companies, Inc.; (7) The Capital Group Companies, Inc., its affiliated companies and Washington Management Corporation; (8) an individual or entity with a substantial business relationship with The Capital Group Companies, Inc. or its affiliates, or an individual or entity related or relating to such individual or entity; (9) wholesalers and full-time employees directly supporting wholesalers involved in the distribution of insurance company separate accounts whose underlying investments are managed by any affiliate of The Capital Group Companies, Inc.; and (10) full-time employees of banks that have sales agreements with the Principal Underwriter, who are solely dedicated to directly supporting the sale of mutual funds. Shares are offered at net asset value to these persons and organizations due to anticipated economies in sales effort and expense. Once an account is established under this net asset value privilege, additional investments can be made at net asset value for the life of the account. TRANSFERS TO COLLEGEAMERICA -- A transfer from the Virginia Prepaid Education Program/SM/ or the Virginia Education Savings Trust/SM/ to a CollegeAmerica account will be made with no sales charge. No commission will be paid to the dealer on such a transfer. International Growth and Income Fund -- Page 52 <PAGE> MOVING BETWEEN ACCOUNTS -- Investments in certain account types may be moved to other account types without incurring additional Class A sales charges. These transactions include, for example: . redemption proceeds from a non-retirement account (for example, a joint tenant account) used to purchase fund shares in an IRA or other individual-type retirement account; . required minimum distributions from an IRA or other individual-type retirement account used to purchase fund shares in a non-retirement account; and . death distributions paid to a beneficiary's account that are used by the beneficiary to purchase fund shares in a different account. LOAN REPAYMENTS -- Repayments on loans taken from a retirement plan or an individual-type retirement account are not subject to sales charges if American Funds Service Company is notified of the repayment. DEALER COMMISSIONS AND COMPENSATION -- Commissions (up to 1.00%) are paid to dealers who initiate and are responsible for certain Class A share purchases not subject to initial sales charges. These purchases consist of purchases of $1 million or more, purchases by employer-sponsored defined contribution-type retirement plans investing $1 million or more or with 100 or more eligible employees, and purchases made at net asset value by certain retirement plans, endowments and foundations with assets of $50 million or more. Commissions on such investments (other than IRA rollover assets that roll over at no sales charge under the fund's IRA rollover policy as described in the prospectus) are paid to dealers at the following rates: 1.00% on amounts of less than $4 million, 0.50% on amounts of at least $4 million but less than $10 million and 0.25% on amounts of at least $10 million. Commissions are based on cumulative investments over the life of the account with no adjustment for redemptions, transfers, or market declines. For example, if a shareholder has accumulated investments in excess of $4 million (but less than $10 million) and subsequently redeems all or a portion of the account(s), purchases following the redemption will generate a dealer commission of 0.50%. A dealer concession of up to 1% may be paid by the fund under its Class A plan of distribution to reimburse the Principal Underwriter in connection with dealer and wholesaler compensation paid by it with respect to investments made with no initial sales charge. International Growth and Income Fund -- Page 53 <PAGE> SALES CHARGE REDUCTIONS AND WAIVERS REDUCING YOUR CLASS A SALES CHARGE -- As described in the prospectus, there are various ways to reduce your sales charge when purchasing Class A shares. Additional information about Class A sales charge reductions is provided below. STATEMENT OF INTENTION -- By establishing a statement of intention (the "Statement"), you enter into a nonbinding commitment to purchase shares of the American Funds (excluding American Funds Money Market Fund) over a 13-month period and receive the same sales charge (expressed as a percentage of your purchases) as if all shares had been purchased at once, unless the Statement is upgraded as described below. The Statement period starts on the date on which your first purchase made toward satisfying the Statement is processed. The market value of your existing holdings eligible to be aggregated (see below) as of the day immediately before the start of the Statement period may be credited toward satisfying the Statement. You may revise the commitment you have made in your Statement upward at any time during the Statement period. If your prior commitment has not been met by the time of the revision, the Statement period during which purchases must be made will remain unchanged. Purchases made from the date of the revision will receive the reduced sales charge, if any, resulting from the revised Statement. If your prior commitment has been met by the time of the revision, your original Statement will be considered met and a new Statement will be established. The Statement will be considered completed if the shareholder dies within the 13-month Statement period. Commissions to dealers will not be adjusted or paid on the difference between the Statement amount and the amount actually invested before the shareholder's death. When a shareholder elects to use a Statement, shares equal to 5% of the dollar amount specified in the Statement may be held in escrow in the shareholder's account out of the initial purchase (or subsequent purchases, if necessary) by the Transfer Agent. All dividends and any capital gain distributions on shares held in escrow will be credited to the shareholder's account in shares (or paid in cash, if requested). If the intended investment is not completed within the specified Statement period, the purchaser may be required to remit to the Principal Underwriter the difference between the sales charge actually paid and the sales charge which would have been paid if the total of such purchases had been made at a single time. Any dealers assigned to the shareholder's account at the time a purchase was made during the Statement period will receive a corresponding commission adjustment if appropriate. If the difference is not paid by the close of the Statement period, the appropriate number of shares held in escrow will be redeemed to pay such difference. If the proceeds from this redemption are inadequate, the purchaser may be liable to the Principal Underwriter for the balance still outstanding. Certain payroll deduction retirement plans purchasing Class A shares under a Statement on or before November 12, 2006, may continue to purchase Class A shares at the sales charge determined by that particular Statement until the plans' values reach the amounts specified in their Statements. Upon reaching such amounts, the Statements for these plans will be deemed completed and will terminate. In addition, effective May 1, 2009, the International Growth and Income Fund -- Page 54 <PAGE> Statements for these plans will expire if they have not been met by the next anniversary of the establishment of such Statement. After such termination, these plans are eligible for additional sales charge reductions by meeting the criteria under the fund's rights of accumulation policy. In addition, if you currently have individual holdings in American Legacy variable annuity contracts or variable life insurance policies that were established on or before March 31, 2007, you may continue to apply purchases under such contracts and policies to a Statement. Shareholders purchasing shares at a reduced sales charge under a Statement indicate their acceptance of these terms and those in the prospectus with their first purchase. AGGREGATION -- Qualifying investments for aggregation include those made by you and your "immediate family" as defined in the prospectus, if all parties are purchasing shares for their own accounts and/or: . individual-type employee benefit plans, such as an IRA, single-participant Keogh-type plan, or a participant account of a 403(b) plan that is treated as an individual-type plan for sales charge purposes (see "Purchases by certain 403(b) plans" under "Sales charges" in this statement of additional information); . SEP plans and SIMPLE IRA plans established after November 15, 2004 by an employer adopting any plan document other than a prototype plan produced by American Funds Distributors, Inc.; . business accounts solely controlled by you or your immediate family (for example, you own the entire business); . trust accounts established by you or your immediate family (for trusts with only one primary beneficiary, upon the trustor's death the trust account may be aggregated with such beneficiary's own accounts; for trusts with multiple primary beneficiaries, upon the trustor's death the trustees of the trust may instruct American Funds Service Company to establish separate trust accounts for each primary beneficiary; each primary beneficiary's separate trust account may then be aggregated with such beneficiary's own accounts); . endowments or foundations established and controlled by you or your immediate family; or . 529 accounts, which will be aggregated at the account owner level (Class 529-E accounts may only be aggregated with an eligible employer plan). Individual purchases by a trustee(s) or other fiduciary(ies) may also be aggregated if the investments are: . for a single trust estate or fiduciary account, including employee benefit plans other than the individual-type employee benefit plans described above; . made for two or more employee benefit plans of a single employer or of affiliated employers as defined in the 1940 Act, excluding the individual-type employee benefit plans described above; International Growth and Income Fund -- Page 55 <PAGE> . for a diversified common trust fund or other diversified pooled account not specifically formed for the purpose of accumulating fund shares; . for nonprofit, charitable or educational organizations, or any endowments or foundations established and controlled by such organizations, or any employer-sponsored retirement plans established for the benefit of the employees of such organizations, their endowments, or their foundations; . for participant accounts of a 403(b) plan that is treated as an employer-sponsored plan for sales charge purposes (see "Purchases by certain 403(b) plans" under "Sales charges" in this statement of additional information), or made for participant accounts of two or more such plans, in each case of a single employer or affiliated employers as defined in the 1940 Act; or . for a SEP or SIMPLE IRA plan established after November 15, 2004 by an employer adopting a prototype plan produced by American Funds Distributors, Inc. Purchases made for nominee or street name accounts (securities held in the name of an investment dealer or another nominee such as a bank trust department instead of the customer) may not be aggregated with those made for other accounts and may not be aggregated with other nominee or street name accounts unless otherwise qualified as described above. CONCURRENT PURCHASES -- As described in the prospectus, you may reduce your Class A sales charge by combining purchases of all classes of shares in the American Funds, as well as holdings in Endowments and applicable holdings in the American Funds Target Date Retirement Series. Shares of American Funds Money Market Fund purchased through an exchange, reinvestment or cross-reinvestment from a fund having a sales charge also qualify. However, direct purchases of American Funds Money Market Fund are excluded. If you currently have individual holdings in American Legacy variable annuity contracts or variable life insurance policies that were established on or before March 31, 2007, you may continue to combine purchases made under such contracts and policies to reduce your Class A sales charge. RIGHTS OF ACCUMULATION -- Subject to the limitations described in the aggregation policy, you may take into account your accumulated holdings in all share classes of the American Funds, as well as your holdings in Endowments and applicable holdings in the American Funds Target Date Retirement Series, to determine your sales charge on investments in accounts eligible to be aggregated. Direct purchases of American Funds Money Market Fund are excluded. Subject to your investment dealer's or recordkeeper's capabilities, your accumulated holdings will be calculated as the higher of (a) the current value of your existing holdings (the "market value") as of the day prior to your American Funds investment or (b) the amount you invested (including reinvested dividends and capital gains, but excluding capital appreciation) less any withdrawals (the "cost value"). Depending on the entity on whose books your account is held, the value of your holdings in that account may not be eligible for calculation at cost value. For example, accounts held in nominee or street name may not be eligible for calculation at cost value and instead may be calculated at market value for purposes of rights of accumulation. International Growth and Income Fund -- Page 56 <PAGE> The value of all of your holdings in accounts established in calendar year 2005 or earlier will be assigned an initial cost value equal to the market value of those holdings as of the last business day of 2005. Thereafter, the cost value of such accounts will increase or decrease according to actual investments or withdrawals. You must contact your financial adviser or American Funds Service Company if you have additional information that is relevant to the calculation of the value of your holdings. When determining your American Funds Class A sales charge, if your investment is not in an employer-sponsored retirement plan, you may also continue to take into account the market value (as of the day prior to your American Funds investment) of your individual holdings in various American Legacy variable annuity contracts and variable life insurance policies that were established on or before March 31, 2007. An employer-sponsored retirement plan may also continue to take into account the market value of its investments in American Legacy Retirement Investment Plans that were established on or before March 31, 2007. You may not purchase Class C or 529-C shares if such combined holdings cause you to be eligible to purchase Class A or 529-A shares at the $1 million or more sales charge discount rate (i.e. at net asset value). If you make a gift of American Funds Class A shares, upon your request, you may purchase the shares at the sales charge discount allowed under rights of accumulation of all of your American Funds and applicable American Legacy accounts. CDSC WAIVERS FOR CLASS A, B AND C SHARES -- As noted in the prospectus, a contingent deferred sales charge ("CDSC") may be waived for redemptions due to death or post-purchase disability of a shareholder (this generally excludes accounts registered in the names of trusts and other entities). In the case of joint tenant accounts, if one joint tenant dies, a surviving joint tenant, at the time he or she notifies the Transfer Agent of the other joint tenant's death and removes the decedent's name from the account, may redeem shares from the account without incurring a CDSC. Redemptions made after the Transfer Agent is notified of the death of a joint tenant will be subject to a CDSC. In addition, a CDSC may be waived for the following types of transactions, if together they do not exceed 12% of the value of an "account" (defined below) annually (the "12% limit"): . Required minimum distributions taken from retirement accounts upon the shareholder's attainment of age 70-1/2 (required minimum distributions that continue to be taken by the beneficiary(ies) after the account owner is deceased also qualify for a waiver). . Redemptions through an automatic withdrawal plan ("AWP") (see "Automatic withdrawals" under "Shareholder account services and privileges" in this statement of additional information). For each AWP payment, assets that are not subject to a CDSC, such as appreciation on shares and shares acquired through reinvestment of dividends and/or capital gain distributions, will be redeemed first and will count toward the 12% limit. If there is an insufficient amount of assets not subject to a CDSC to cover a particular AWP payment, shares subject to the lowest CDSC will be redeemed next until the 12% limit is reached. Any dividends and/or capital gain distributions taken in cash by a shareholder who receives International Growth and Income Fund -- Page 57 <PAGE> payments through an AWP will also count toward the 12% limit. In the case of an AWP, the 12% limit is calculated at the time an automatic redemption is first made, and is recalculated at the time each additional automatic redemption is made. Shareholders who establish an AWP should be aware that the amount of a payment not subject to a CDSC may vary over time depending on fluctuations in the value of their accounts. This privilege may be revised or terminated at any time. For purposes of this paragraph, "account" means: . in the case of Class A shares, your investment in Class A shares of all American Funds (investments representing direct purchases of American Funds Money Market Fund are excluded); . in the case of Class B shares, your investment in Class B shares of the particular fund from which you are making the redemption; and .in the case of Class C shares, your investment in Class C shares of the particular fund from which you are making the redemption. CDSC waivers are allowed only in the cases listed here and in the prospectus. For example, CDSC waivers will not be allowed on redemptions of Class 529-B and 529-C shares due to termination of CollegeAmerica; a determination by the Internal Revenue Service that CollegeAmerica does not qualify as a qualified tuition program under the Code; proposal or enactment of law that eliminates or limits the tax-favored status of CollegeAmerica; or elimination of the fund by the Virginia College Savings Plan as an option for additional investment within CollegeAmerica. International Growth and Income Fund -- Page 58 <PAGE> SELLING SHARES The methods for selling (redeeming) shares are described more fully in the prospectus. If you wish to sell your shares by contacting American Funds Service Company directly, any such request must be signed by the registered shareholders. To contact American Funds Service Company via overnight mail or courier service, see "Purchase and exchange of shares." A signature guarantee may be required for certain redemptions. In such an event, your signature may be guaranteed by a domestic stock exchange or the Financial Industry Regulatory Authority, bank, savings association or credit union that is an eligible guarantor institution. The Transfer Agent reserves the right to require a signature guarantee on any redemptions. Additional documentation may be required for sales of shares held in corporate, partnership or fiduciary accounts. You must include with your written request any shares you wish to sell that are in certificate form. If you sell Class A, B or C shares and request a specific dollar amount to be sold, we will sell sufficient shares so that the sale proceeds, after deducting any applicable CDSC, equals the dollar amount requested. Redemption proceeds will not be mailed until sufficient time has passed to provide reasonable assurance that checks or drafts (including certified or cashier's checks) for shares purchased have cleared (which may take up to 10 business days from the purchase date). Except for delays relating to clearance of checks for share purchases or in extraordinary circumstances (and as permissible under the 1940 Act), sale proceeds will be paid on or before the seventh day following receipt and acceptance of an order. Interest will not accrue or be paid on amounts that represent uncashed distribution or redemption checks. You may request that redemption proceeds of $1,000 or more from American Funds Money Market Fund be wired to your bank by writing American Funds Service Company. A signature guarantee is required on all requests to wire funds. International Growth and Income Fund -- Page 59 <PAGE> SHAREHOLDER ACCOUNT SERVICES AND PRIVILEGES The following services and privileges are generally available to all shareholders. However, certain services and privileges described in the prospectus and this statement of additional information may not be available for Class 529 shareholders or if your account is held with an investment dealer or through an employer-sponsored retirement plan. AUTOMATIC INVESTMENT PLAN -- An automatic investment plan enables you to make monthly or quarterly investments in the American Funds through automatic debits from your bank account. To set up a plan, you must fill out an account application and specify the amount that you would like to invest and the date on which you would like your investments to occur. The plan will begin within 30 days after your account application is received. Your bank account will be debited on the day or a few days before your investment is made, depending on the bank's capabilities. The Transfer Agent will then invest your money into the fund you specified on or around the date you specified. If the date you specified falls on a weekend or holiday, your money will be invested on the following business day. However, if the following business day falls in the next month, your money will be invested on the business day immediately preceding the weekend or holiday. If your bank account cannot be debited due to insufficient funds, a stop-payment or the closing of the account, the plan may be terminated and the related investment reversed. You may change the amount of the investment or discontinue the plan at any time by contacting the Transfer Agent. AUTOMATIC REINVESTMENT -- Dividends and capital gain distributions are reinvested in additional shares of the same class and fund at net asset value unless you indicate otherwise on the account application. You also may elect to have dividends and/or capital gain distributions paid in cash by informing the fund, the Transfer Agent or your investment dealer. Dividends and capital gain distributions paid to retirement plan shareholders or shareholders of the 529 share classes will be automatically reinvested. If you have elected to receive dividends and/or capital gain distributions in cash, and the postal or other delivery service is unable to deliver checks to your address of record, or you do not respond to mailings from American Funds Service Company with regard to uncashed distribution checks, your distribution option may be automatically converted to having all dividends and other distributions reinvested in additional shares. CROSS-REINVESTMENT OF DIVIDENDS AND DISTRIBUTIONS -- For all share classes, except the 529 classes of shares, you may cross-reinvest dividends and capital gains (distributions) into other American Funds in the same share class at net asset value, subject to the following conditions: (1) the aggregate value of your account(s) in the fund(s) paying distributions equals or exceeds $5,000 (this is waived if the value of the account in the fund receiving the distributions equals or exceeds that fund's minimum initial investment requirement); (2) if the value of the account of the fund receiving distributions is below the minimum initial investment requirement, distributions must be automatically reinvested; and (3) if you discontinue the cross-reinvestment of distributions, the value of the account of the fund receiving distributions must equal or exceed the minimum initial investment requirement. If you do not meet this requirement within 90 days of notification, the fund has the right to automatically redeem the account. International Growth and Income Fund -- Page 60 <PAGE> AUTOMATIC EXCHANGES -- For all share classes, you may automatically exchange shares of the same class in amounts of $50 or more among any of the American Funds on any day (or preceding business day if the day falls on a nonbusiness day) of each month you designate. AUTOMATIC WITHDRAWALS -- Depending on the type of account, for all share classes except R shares, you may automatically withdraw shares from any of the American Funds. You can make automatic withdrawals of $50 or more. You can designate the day of each period for withdrawals and request that checks be sent to you or someone else. Withdrawals may also be electronically deposited to your bank account. The Transfer Agent will withdraw your money from the fund you specify on or around the date you specify. If the date you specified falls on a weekend or holiday, the redemption will take place on the previous business day. However, if the previous business day falls in the preceding month, the redemption will take place on the following business day after the weekend or holiday. You should consult with your adviser or intermediary to determine if your account is eligible for automatic withdrawals. Withdrawal payments are not to be considered as dividends, yield or income. Generally, automatic investments may not be made into a shareholder account from which there are automatic withdrawals. Withdrawals of amounts exceeding reinvested dividends and distributions and increases in share value would reduce the aggregate value of the shareholder's account. The Transfer Agent arranges for the redemption by the fund of sufficient shares, deposited by the shareholder with the Transfer Agent, to provide the withdrawal payment specified. Redemption proceeds from an automatic withdrawal plan are not eligible for reinvestment without a sales charge. ACCOUNT STATEMENTS -- Your account is opened in accordance with your registration instructions. Transactions in the account, such as additional investments, will be reflected on regular confirmation statements from the Transfer Agent. Dividend and capital gain reinvestments, purchases through automatic investment plans and certain retirement plans, as well as automatic exchanges and withdrawals, will be confirmed at least quarterly. AMERICAN FUNDSLINE AND AMERICANFUNDS.COM -- You may check your share balance, the price of your shares or your most recent account transaction; redeem shares (up to $75,000 per American Funds shareholder each day) from nonretirement plan accounts; or exchange shares around the clock with American FundsLine or using americanfunds.com. To use American FundsLine, call 800/325-3590 from a TouchTone(TM) telephone. Redemptions and exchanges through American FundsLine and americanfunds.com are subject to the conditions noted above and in "Telephone and Internet purchases, redemptions and exchanges" below. You will need your fund number (see the list of the American Funds under "General information -- fund numbers"), personal identification number (generally the last four digits of your Social Security number or other tax identification number associated with your account) and account number. Generally, all shareholders are automatically eligible to use these services. However, if you are not currently authorized to do so, you may complete an American FundsLink Authorization Form. Once you establish this privilege, you, your financial adviser or any person with your account information may use these services. International Growth and Income Fund -- Page 61 <PAGE> TELEPHONE AND INTERNET PURCHASES, REDEMPTIONS AND EXCHANGES -- By using the telephone (including American FundsLine) or the Internet (including americanfunds.com), or fax purchase, redemption and/or exchange options, you agree to hold the fund, the Transfer Agent, any of its affiliates or mutual funds managed by such affiliates, and each of their respective directors, trustees, officers, employees and agents harmless from any losses, expenses, costs or liabilities (including attorney fees) that may be incurred in connection with the exercise of these privileges. Generally, all shareholders are automatically eligible to use these services. However, you may elect to opt out of these services by writing the Transfer Agent (you may also reinstate them at any time by writing the Transfer Agent). If the Transfer Agent does not employ reasonable procedures to confirm that the instructions received from any person with appropriate account information are genuine, it and/or the fund may be liable for losses due to unauthorized or fraudulent instructions. In the event that shareholders are unable to reach the fund by telephone because of technical difficulties, market conditions or a natural disaster, redemption and exchange requests may be made in writing only. CHECKWRITING -- You may establish check writing privileges for Class A shares (but not Class 529-A shares) of American Funds Money Market Fund upon meeting the fund's initial purchase minimum of $1,000. This can be done by using an account application. If you request check writing privileges, you will be provided with checks that you may use to draw against your account. These checks may be made payable to anyone you designate and must be signed by the authorized number of registered shareholders exactly as indicated on your account application. REDEMPTION OF SHARES -- The fund's declaration of trust permits the fund to direct the Transfer Agent to redeem the shares of any shareholder for their then current net asset value per share if at such time the shareholder of record owns shares having an aggregate net asset value of less than the minimum initial investment amount required of new shareholders as set forth in the fund's current registration statement under the 1940 Act, and subject to such further terms and conditions as the board of trustees of the fund may from time to time adopt. While payment of redemptions normally will be in cash, the fund's declaration of trust permits payment of the redemption price wholly or partly with portfolio securities or other fund assets under conditions and circumstances determined by the fund's board of trustees. For example, redemptions could be made in this manner if the board determined that making payments wholly in cash over a particular period would be unfair and/or harmful to other fund shareholders. SHARE CERTIFICATES -- Shares are credited to your account. The fund's board may determine if the fund issues share certificates. International Growth and Income Fund -- Page 62 <PAGE> GENERAL INFORMATION CUSTODIAN OF ASSETS -- Securities and cash owned by the fund, including proceeds from the sale of shares of the fund and of securities in the fund's portfolio, are held by JPMorgan Chase Bank, 270 Park Avenue, New York, NY 10017-2070, as Custodian. If the fund holds securities of issuers outside the U.S., the Custodian may hold these securities pursuant to subcustodial arrangements in banks outside the U.S. or branches of U.S. banks outside the U.S. TRANSFER AGENT -- American Funds Service Company, a wholly owned subsidiary of the investment adviser, maintains the records of shareholder accounts, processes purchases and redemptions of the fund's shares, acts as dividend and capital gain distribution disbursing agent, and performs other related shareholder service functions. The principal office of American Funds Service Company is located at 6455 Irvine Center Drive, Irvine, CA 92618. American Funds Service Company was paid a fee of $631,000 for Class A shares and $8,000 for Class B shares for the 2009 fiscal year. American Funds Service Company is also compensated for certain transfer agency services provided to all share classes from the administrative services fees paid to Capital Research and Management Company and from the relevant share class, as described under "Administrative services agreement." In the case of certain shareholder accounts, third parties who may be unaffiliated with the investment adviser provide transfer agency and shareholder services in place of American Funds Service Company. These services are rendered under agreements with American Funds Service Company or its affiliates and the third parties receive compensation according to such agreements. Compensation for transfer agency and shareholder services, whether paid to American Funds Service Company or such third parties, is ultimately paid from fund assets and is reflected in the expenses of the fund as disclosed in the prospectus. INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM -- Deloitte & Touche LLP, 695 Town Center Drive, Costa Mesa, California 92626, serves as the fund's independent registered public accounting firm, providing audit services, preparation of tax returns and review of certain documents to be filed with the Securities and Exchange Commission. The financial statements included in this statement of additional information from the annual report have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report appearing herein. Such financial statements have been so included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing. The selection of the fund's independent registered public accounting firm is reviewed and determined annually by the board of trustees. INDEPENDENT LEGAL COUNSEL -- Bingham McCutchen LLP, 355 South Grand Avenue, Suite 4400, Los Angeles, CA 90071, serves as independent legal counsel ("counsel") for the fund and for independent trustees in their capacities as such. Counsel does not provide legal services to the fund's investment adviser or any of its affiliated companies or control persons. A determination with respect to the independence of the fund's counsel will be made at least annually by the independent trustees of the fund, as prescribed by the 1940 Act and related rules. PROSPECTUSES, REPORTS TO SHAREHOLDERS AND PROXY STATEMENTS -- The fund's fiscal year ends on June 30. Shareholders are provided updated summary prospectuses annually and at least semi-annually with reports showing the fund's investment portfolio or summary investment portfolio, financial statements and other information. Shareholders may request a copy of the fund's current prospectus at no cost by calling 800/421-0180 or by sending an e-mail request to International Growth and Income Fund -- Page 63 <PAGE> prospectus@americanfunds.com. The fund's annual financial statements are audited by the fund's independent registered public accounting firm, Deloitte & Touche LLP. In addition, shareholders may also receive proxy statements for the fund. In an effort to reduce the volume of mail shareholders receive from the fund when a household owns more than one account, the Transfer Agent has taken steps to eliminate duplicate mailings of summary prospectuses, shareholder reports and proxy statements. To receive additional copies of a summary prospectus, report or proxy statement, shareholders should contact the Transfer Agent. Shareholders may also elect to receive updated summary prospectuses, annual reports and semi-annual reports electronically by signing up for electronic delivery on our website, americanfunds.com. Upon electing the electronic delivery of updated summary prospectuses and other reports, a shareholder will no longer automatically receive such documents in paper form by mail. A shareholder who elects electronic delivery is able to cancel this service at any time and return to receiving updated summary prospectuses and other reports in paper form by mail. Summary prospectuses, prospectuses, annual reports and semi-annual reports that are mailed to shareholders by the American Funds organization are printed with ink containing soy and/or vegetable oil on paper containing recycled fibers. CODES OF ETHICS -- The fund and Capital Research and Management Company and its affiliated companies, including the fund's Principal Underwriter, have adopted codes of ethics that allow for personal investments, including securities in which the fund may invest from time to time. These codes include a ban on acquisitions of securities pursuant to an initial public offering; restrictions on acquisitions of private placement securities; preclearance and reporting requirements; review of duplicate confirmation statements; annual recertification of compliance with codes of ethics; blackout periods on personal investing for certain investment personnel; ban on short-term trading profits for investment personnel; limitations on service as a director of publicly traded companies; and disclosure of personal securities transactions. LEGAL PROCEEDINGS -- On February 16, 2005, the NASD (now the Financial Industry Regulatory Authority, or FINRA) filed an administrative complaint against the Principal Underwriter. The complaint alleges violations of certain NASD rules by the Principal Underwriter with respect to the selection of broker-dealer firms that buy and sell securities for mutual fund investment portfolios. The complaint seeks sanctions, restitution and disgorgement. On August 30, 2006, a FINRA Hearing Panel ruled against the Principal Underwriter and imposed a $5 million fine. On April 30, 2008, FINRA's National Adjudicatory Council affirmed the decision by FINRA's Hearing Panel. The Principal Underwriter has appealed this decision to the Securities and Exchange Commission. The investment adviser and Principal Underwriter believe that the likelihood that this matter could have a material adverse effect on the fund or on the ability of the investment adviser or Principal Underwriter to perform their contracts with the fund is remote. In addition, class action lawsuits have been filed in the U.S. District Court, Central District of California, relating to this and other matters. The investment adviser believes that these suits are without merit and will defend itself vigorously. International Growth and Income Fund -- Page 64 <PAGE> DETERMINATION OF NET ASSET VALUE, REDEMPTION PRICE AND MAXIMUM OFFERING PRICE PER SHARE FOR CLASS A SHARES -- DECEMBER 31, 2009 Net asset value and redemption price per share (Net assets divided by shares outstanding). . $29.79 Maximum offering price per share (100/94.25 of net asset value per share, which takes into account the fund's current maximum sales charge). . . . . . . . . . . . . . . . $31.61 OTHER INFORMATION -- The fund reserves the right to modify the privileges described in this statement of additional information at any time. The financial statements, including the investment portfolio and the report of the fund's independent registered public accounting firm contained in the annual report, are included in this statement of additional information.International Growth and Income Fund -- Page 65 <PAGE> FUND NUMBERS -- Here are the fund numbers for use with our automated telephone line, American FundsLine/(R)/, or when making share transactions: FUND NUMBERS ------------------------------------------------- FUND CLASS A CLASS B CLASS C CLASS F-1 CLASS F-2 ------------------------------------------------------------------------------- STOCK AND STOCK/BOND FUNDS AMCAP Fund/(R)/ . . . . . . 002 202 302 402 602 American Balanced Fund/(R)/ 011 211 311 411 611 American Mutual Fund/(R)/ . 003 203 303 403 603 Capital Income Builder/(R)/ 012 212 312 412 612 Capital World Growth and Income Fund/SM/ . . . . . . 033 233 333 433 633 EuroPacific Growth Fund/(R)/ 016 216 316 416 616 Fundamental Investors/SM/ . 010 210 310 410 610 The Growth Fund of America/(R)/. . . . . . . . 005 205 305 405 605 The Income Fund of America/(R)/. . . . . . . . 006 206 306 406 606 International Growth and Income Fund/SM/ . . . . . . 034 234 334 434 634 The Investment Company of America/(R)/. . . . . . . . 004 204 304 404 604 The New Economy Fund/(R)/ . 014 214 314 414 614 New Perspective Fund/(R)/ . 007 207 307 407 607 New World Fund/(R)/ . . . . 036 236 336 436 636 SMALLCAP World Fund/(R)/ . 035 235 335 435 635 Washington Mutual Investors Fund/SM/ . . . . . . . . . 001 201 301 401 601 BOND FUNDS American Funds Short-Term Tax-Exempt Bond Fund/SM/ . 039 N/A N/A 439 639 American High-Income Municipal Bond Fund/(R)/ . 040 240 340 440 640 American High-Income Trust/SM/ . . . . . . . . . 021 221 321 421 621 The Bond Fund of America/SM/ 008 208 308 408 608 Capital World Bond Fund/(R)/ 031 231 331 431 631 Intermediate Bond Fund of America/SM/ . . . . . . . . 023 223 323 423 623 Limited Term Tax-Exempt Bond Fund of America/SM/ . . . . 043 243 343 443 643 Short-Term Bond Fund of America/SM/ . . . . . . . . 048 248 348 448 648 The Tax-Exempt Bond Fund of America/(R)/. . . . . . . . 019 219 319 419 619 The Tax-Exempt Fund of California/(R)/*. . . . . . 020 220 320 420 620 The Tax-Exempt Fund of Maryland/(R)/*. . . . . . . 024 224 324 424 624 The Tax-Exempt Fund of Virginia/(R)/*. . . . . . . 025 225 325 425 625 U.S. Government Securities Fund/SM/. . . . . . . . . . 022 222 322 422 622 MONEY MARKET FUND American Funds Money Market Fund/SM/ . . . . . . . . . 059 259 359 459 659 ___________ *Qualified for sale only in certain jurisdictions.International Growth and Income Fund -- Page 66 <PAGE> FUND NUMBERS ---------------------------------------------- CLASS CLASS CLASS CLASS CLASS FUND 529-A 529-B 529-C 529-E 529-F-1 ------------------------------------------------------------------------------- STOCK AND STOCK/BOND FUNDS AMCAP Fund . . . . . . . . . . 1002 1202 1302 1502 1402 American Balanced Fund . . . . 1011 1211 1311 1511 1411 American Mutual Fund . . . . . 1003 1203 1303 1503 1403 Capital Income Builder . . . . 1012 1212 1312 1512 1412 Capital World Growth and Income Fund . . . . . . . . . . . . . 1033 1233 1333 1533 1433 EuroPacific Growth Fund . . . 1016 1216 1316 1516 1416 Fundamental Investors . . . . 1010 1210 1310 1510 1410 The Growth Fund of America . . 1005 1205 1305 1505 1405 The Income Fund of America . . 1006 1206 1306 1506 1406 International Growth and Income Fund . . . . . . . . . . . . . 1034 1234 1334 1534 1434 The Investment Company of America. . . . . . . . . . . . 1004 1204 1304 1504 1404 The New Economy Fund . . . . . 1014 1214 1314 1514 1414 New Perspective Fund . . . . . 1007 1207 1307 1507 1407 New World Fund . . . . . . . . 1036 1236 1336 1536 1436 SMALLCAP World Fund . . . . . 1035 1235 1335 1535 1435 Washington Mutual Investors Fund . . . . . . . . . . . . . 1001 1201 1301 1501 1401 BOND FUNDS American High-Income Trust . . 1021 1221 1321 1521 1421 The Bond Fund of America . . . 1008 1208 1308 1508 1408 Capital World Bond Fund . . . 1031 1231 1331 1531 1431 Intermediate Bond Fund of America. . . . . . . . . . . . 1023 1223 1323 1523 1423 Short-Term Bond Fund of America 1048 1248 1348 1548 1448 U.S. Government Securities Fund 1022 1222 1322 1522 1422 MONEY MARKET FUND American Funds Money Market Fund . . . . . . . . . . . . . 1059 1259 1359 1559 1459 International Growth and Income Fund -- Page 67 <PAGE> FUND NUMBERS ------------------------------------------ CLASS CLASS CLASS CLASS CLASS CLASS FUND R-1 R-2 R-3 R-4 R-5 R-6 ------------------------------------------------------------------------------- STOCK AND STOCK/BOND FUNDS AMCAP Fund . . . . . . . . . . . . 2102 2202 2302 2402 2502 2602 American Balanced Fund . . . . . . 2111 2211 2311 2411 2511 2611 American Mutual Fund . . . . . . . 2103 2203 2303 2403 2503 2603 Capital Income Builder . . . . . . 2112 2212 2312 2412 2512 2612 Capital World Growth and Income Fund . . . . . . . . . . . . . . . 2133 2233 2333 2433 2533 2633 EuroPacific Growth Fund . . . . . 2116 2216 2316 2416 2516 2616 Fundamental Investors . . . . . . 2110 2210 2310 2410 2510 2610 The Growth Fund of America . . . . 2105 2205 2305 2405 2505 2605 The Income Fund of America . . . . 2106 2206 2306 2406 2506 2606 International Growth and Income Fund . . . . . . . . . . . . . . . 2134 2234 2334 2434 2534 2634 The Investment Company of America 2104 2204 2304 2404 2504 2604 The New Economy Fund . . . . . . . 2114 2214 2314 2414 2514 2614 New Perspective Fund . . . . . . . 2107 2207 2307 2407 2507 2607 New World Fund . . . . . . . . . . 2136 2236 2336 2436 2536 2636 SMALLCAP World Fund . . . . . . . 2135 2235 2335 2435 2535 2635 Washington Mutual Investors Fund . 2101 2201 2301 2401 2501 2601 BOND FUNDS American High-Income Trust . . . . 2121 2221 2321 2421 2521 2621 The Bond Fund of America . . . . . 2108 2208 2308 2408 2508 2608 Capital World Bond Fund . . . . . 2131 2231 2331 2431 2531 2631 Intermediate Bond Fund of America 2123 2223 2323 2423 2523 2623 Short-Term Bond Fund of America. . 2148 2248 2348 2448 2548 2648 U.S. Government Securities Fund . 2122 2222 2322 2422 2522 2622 MONEY MARKET FUND American Funds Money Market Fund . 2159 2259 2359 2459 2559 2659 ___________ *Qualified for sale only in certain jurisdictions.International Growth and Income Fund -- Page 68 <PAGE> FUND NUMBERS --------------------------------------------------- CLASS CLASS CLASS CLASS CLASS CLASS FUND CLASS A R-1 R-2 R-3 R-4 R-5 R-6 ------------------------------------------------------------------------------- AMERICAN FUNDS TARGET DATE RETIREMENT SERIES/(R)/ American Funds 2055 Target Date Retirement Fund/SM/ 082 2182 2282 2382 2482 2582 2682 American Funds 2050 Target Date Retirement Fund/(R)/ 069 2169 2269 2369 2469 2569 2669 American Funds 2045 Target Date Retirement Fund/(R)/ 068 2168 2268 2368 2468 2568 2668 American Funds 2040 Target Date Retirement Fund/(R)/ 067 2167 2267 2367 2467 2567 2667 American Funds 2035 Target Date Retirement Fund/(R)/ 066 2166 2266 2366 2466 2566 2666 American Funds 2030 Target Date Retirement Fund/(R)/ 065 2165 2265 2365 2465 2565 2665 American Funds 2025 Target Date Retirement Fund/(R)/ 064 2164 2264 2364 2464 2564 2664 American Funds 2020 Target Date Retirement Fund/(R)/ 063 2163 2263 2363 2463 2563 2663 American Funds 2015 Target Date Retirement Fund/(R)/ 062 2162 2262 2362 2462 2562 2662 American Funds 2010 Target Date Retirement Fund/(R)/ 061 2161 2261 2361 2461 2561 2661 International Growth and Income Fund -- Page 69 <PAGE>APPENDIX The following descriptions of debt security ratings are based on information provided by Moody's Investors Service and Standard & Poor's Corporation. DESCRIPTION OF BOND RATINGS MOODY'S LONG-TERM RATING DEFINITIONS Aaa Obligations rated Aaa are judged to be of the highest quality, with minimal credit risk. Aa Obligations rated Aa are judged to be of high quality and are subject to very low credit risk. A Obligations rated A are considered upper-medium grade and are subject to low credit risk. Baa Obligations rated Baa are subject to moderate credit risk. They are considered medium-grade and as such may possess certain speculative characteristics. Ba Obligations rated Ba are judged to have speculative elements and are subject to substantial credit risk. B Obligations rated B are considered speculative and are subject to high credit risk. Caa Obligations rated Caa are judged to be of poor standing and are subject to very high credit risk. Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some prospect of recovery of principal and interest. C Obligations rated C are the lowest rated class of bonds and are typically in default, with little prospect for recovery of principal or interest. NOTE: Moody's appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category. International Growth and Income Fund -- Page 70 <PAGE> STANDARD & POOR'S LONG-TERM ISSUE CREDIT RATINGS AAA An obligation rated AAA has the highest rating assigned by Standard & Poor's. The obligor's capacity to meet its financial commitment on the obligation is extremely strong. AA An obligation rated AA differs from the highest-rated obligations only in small degree. The obligor's capacity to meet its financial commitment on the obligation is very strong. A An obligation rated A is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher-rated categories. However, the obligor's capacity to meet its financial commitment on the obligation is still strong. BBB An obligation rated BBB exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation. BB, B, CCC, CC, AND C Obligations rated BB, B, CCC, CC, and C are regarded as having significant speculative characteristics. BB indicates the least degree of speculation and C the highest. While such obligations will likely have some quality and protective characteristics, these may be outweighed by large uncertainties or major exposures to adverse conditions. BB An obligation rated BB is less vulnerable to nonpayment than other speculative issues. However, it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions which could lead to the obligor's inadequate capacity to meet its financial commitment on the obligation. B An obligation rated B is more vulnerable to nonpayment than obligations rated BB, but the obligor currently has the capacity to meet its financial commitment on the obligation. Adverse business, financial, or economic conditions will likely impair the obligor's capacity or willingness to meet its financial commitment on the obligation. CCC An obligation rated CCC is currently vulnerable to nonpayment and is dependent upon favorable business, financial, and economic conditions for the obligor to meet its financial commitment on the obligation. In the event of adverse business, financial, or economic conditions, the obligor is not likely to have the capacity to meet its financial commitment on the obligation. CC An obligation rated CC is currently highly vulnerable to nonpayment. International Growth and Income Fund -- Page 71 <PAGE> C A C rating is assigned to obligations that are currently highly vulnerable to nonpayment, obligations that have payment arrearages allowed by the terms of the documents, or obligations of an issuer that is the subject of a bankruptcy petition or similar action which have not experienced a payment default. Among others, the C rating may be assigned to subordinated debt, preferred stock or other obligations on which cash payments have been suspended in accordance with the instrument's terms. D An obligation rated D is in payment default. The D rating category is used when payments on an obligation are not made on the date due even if the applicable grace period has not expired, unless Standard & Poor's believes that such payments will be made during such grace period. The D rating also will be used upon the filing of a bankruptcy petition or the taking of a similar action if payments on an obligation are jeopardized. PLUS (+) OR MINUS (-) The ratings from AA to CCC may be modified by the addition of a plus or minus sign to show relative standing within the major rating categories. International Growth and Income Fund -- Page 72 <PAGE> DESCRIPTION OF COMMERCIAL PAPER RATINGS MOODY'S COMMERCIAL PAPER RATINGS (HIGHEST THREE RATINGS) P-1 Issuers (or supporting institutions) rated Prime-1 have a superior ability to repay short-term debt obligations. P-2 Issuers (or supporting institutions) rated Prime-2 have a strong ability to repay short-term debt obligations. P-3 Issuers (or supporting institutions) rated Prime-3 have an acceptable ability to repay short-term obligations. STANDARD & POOR'S COMMERCIAL PAPER RATINGS (HIGHEST THREE RATINGS) A-1 A short-term obligation rated A-1 is rated in the highest category by Standard & Poor's. The obligor's capacity to meet its financial commitment on the obligation is strong. Within this category, certain obligations are designated with a plus sign (+). This indicates that the obligor's capacity to meet its financial commitment on these obligations is extremely strong. A-2 A short-term obligation rated A-2 is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher rating categories. However, the obligor's capacity to meet its financial commitment on the obligation is satisfactory. A-3 A short-term obligation rated A-3 exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation. International Growth and Income Fund -- Page 73
|
1
|
Valued under
fair value procedures adopted by authority of the board of directors. The
total value of all such securities, including those in “Miscellaneous,”
was $1,405,703,000, which represented 73.87% of the net assets of the
fund. This amount includes $1,390,312,000 related to certain securities
trading outside the U.S. whose values were adjusted as a result of
significant market movements following the close of local
trading.
|
|
2
|
Security did
not produce income during the last 12
months.
|
|
3
|
Purchased in
a transaction exempt from registration under the Securities Act of 1933.
May be resold in the U.S. in transactions exempt from registration,
normally to qualified institutional buyers. The total value of all such
securities was $115,073,000, which represented 6.05% of the net assets of
the fund.
|
|
4
|
Coupon rate
may change periodically.
|
|
5
|
Principal
payments may be made periodically. Therefore, the effective maturity date
may be earlier than the stated maturity
date.
|
|
Industry
sector diversification
(
percent
of net assets)
|
|
|||
|
Financials
|
13.41 | % | ||
|
Consumer
staples
|
11.76 | |||
|
Telecommunication
services
|
10.48 | |||
|
Energy
|
7.98 | |||
|
Industrials
|
7.60 | |||
|
Other
industries
|
28.08 | |||
|
Preferred
stocks
|
1.98 | |||
|
Bonds &
notes
|
6.79 | |||
|
Short-term
securities & other assets less liabilities
|
11.92 | |||
|
Country
diversification
(percent
of net assets)
|
|
|||
|
Euro
zone*
|
34.1 | % | ||
|
United
Kingdom
|
14.6 | |||
|
Japan
|
6.2 | |||
|
Australia
|
6.0 | |||
|
Switzerland
|
3.7 | |||
|
Taiwan
|
2.8 | |||
|
Hong
Kong
|
2.2 | |||
|
Singapore
|
1.0 | |||
|
Other
countries
|
17.5 | |||
|
Short-term
securities & other assets less liabilities
|
11.9 | |||
|
*Countries
using the euro as a common currency; those represented in the fund's
portfolio are Belgium, Finland, France, Germany, Greece, Ireland, Italy,
the Netherlands and Spain.
|
||||
|
Percent
|
||||||||||||
|
Value
|
of
net
|
|||||||||||
|
Common
stocks - 79.31%
|
Shares
|
(000 | ) |
assets
|
||||||||
|
Financials -
13.41%
|
||||||||||||
|
Prudential
PLC (1)
|
5,446,588 | $ | 37,043 | 1.95 | % | |||||||
|
A leading
life insurance and pension provider. Has significant operations in the
U.S. and the U.K. and is growing in the Asia/Pacific
region.
|
||||||||||||
|
AXA SA
(1)
|
1,661,790 | 31,407 | 1.65 | |||||||||
|
Ranks among
the world's largest insurance and financial services
companies.
|
||||||||||||
|
QBE Insurance
Group Ltd. (1)
|
1,379,700 | 22,019 | 1.16 | |||||||||
|
An
international insurance and reinsurance group.
|
||||||||||||
|
HSBC Holdings
PLC (Hong Kong) (1)
|
2,498,000 | 20,934 | 1.10 | |||||||||
|
One of the
world's largest international banking and financial services
organizations.
|
||||||||||||
|
Singapore
Exchange Ltd. (1)
|
4,000,000 | 19,552 | 1.03 | |||||||||
|
The sole
integrated equity and derivatives exchange in Singapore.
|
||||||||||||
|
Banco
Santander, SA (1)
|
1,450,000 | 17,493 | .92 | |||||||||
|
A leading
Spanish bank, with a strong franchise in Latin America and the
U.K.
|
||||||||||||
|
Itaú Unibanco
Banco Múltiplo SA, preferred nominative
|
1,095,000 | 17,357 | .91 | |||||||||
|
One of
Brazil's leading private commercial banks.
|
||||||||||||
|
BNP Paribas
SA (1)
|
267,125 | 17,329 | .91 | |||||||||
|
This major
French bank has operations around the globe.
|
||||||||||||
|
Unibail-Rodamco,
non-registered shares (1)
|
105,400 | 15,734 | .82 | |||||||||
|
Invests in
office properties and shopping centers throughout Europe.
|
||||||||||||
|
Société
Générale (1)
|
108,870 | 5,938 | .31 | |||||||||
|
Has retail,
corporate and investment banking operations around the world, with
particular strength in Europe.
|
||||||||||||
|
Other
securities
|
50,465 | 2.65 | ||||||||||
| 255,271 | 13.41 | |||||||||||
|
Consumer
staples - 11.76%
|
||||||||||||
|
Anheuser-Busch
InBev NV (1)
|
1,402,240 | 50,749 | 2.67 | |||||||||
|
One of the
world's largest brewers.
|
||||||||||||
|
British
American Tobacco PLC (1)
|
1,710,500 | 47,230 | 2.48 | |||||||||
|
The world's
second-largest tobacco company.
|
||||||||||||
|
Unilever NV,
depository receipts (1)
|
1,437,000 | 34,669 | 1.82 | |||||||||
|
A global
consumer goods company. Its products include Breyer's ice cream, Dove soap
and Lipton teas.
|
||||||||||||
|
Tesco PLC
(1)
|
5,100,000 | 29,712 | 1.56 | |||||||||
|
Major
international retailer based in the United Kingdom.
|
||||||||||||
|
Diageo PLC
(1)
|
2,036,300 | 29,229 | 1.54 | |||||||||
|
Sells
spirits, wine and beer under brands including Guinness, Smirnoff and
Johnnie Walker.
|
||||||||||||
|
Coca-Cola
Amatil Ltd. (1)
|
2,514,198 | 17,421 | .92 | |||||||||
|
The leading
Coca-Cola bottler for Australia and the Asia/Pacific
region.
|
||||||||||||
|
Other
securities
|
14,726 | .77 | ||||||||||
| 223,736 | 11.76 | |||||||||||
|
Telecommunication
services - 10.48%
|
||||||||||||
|
Telefónica,
SA (1)
|
2,217,700 | 50,270 | 2.64 | |||||||||
|
One of the
premier providers of fixed and mobile telephone and Internet services in
Spain and Latin America.
|
||||||||||||
|
Koninklijke
KPN NV (1)
|
2,968,700 | 40,883 | 2.15 | |||||||||
|
Global
telecommunication services provider based in the
Netherlands.
|
||||||||||||
|
Telefónica 02
Czech Republic, AS (1)
|
1,500,000 | 34,112 | 1.79 | |||||||||
|
Provides
phone services as well as Internet and data transmission services in the
Czech Republic.
|
||||||||||||
|
Bell Aliant
Regional Communications Income Fund
|
855,000 | 19,380 | 1.02 | |||||||||
|
Telecommunication
services provider operating in the U.S. and Canada.
|
||||||||||||
|
América
Móvil, SAB de CV, Series L (ADR)
|
424,000 | 16,417 | .86 | |||||||||
|
Latin
America's largest cellular communications provider.
|
||||||||||||
|
Other
securities
|
38,282 | 2.02 | ||||||||||
| 199,344 | 10.48 | |||||||||||
|
Energy -
7.98%
|
||||||||||||
|
TOTAL SA
(1)
|
1,312,300 | 71,054 | 3.73 | |||||||||
|
One of the
world's leading integrated oil and gas companies.
|
||||||||||||
|
Royal Dutch
Shell PLC, Class B (1)
|
1,617,000 | 40,803 | 2.15 | |||||||||
|
A global
group of energy and oil companies.
|
||||||||||||
|
Saipem SpA,
Class S (1)
|
975,700 | 23,810 | 1.25 | |||||||||
|
Provides
drilling and construction services to oil and gas companies
worldwide.
|
||||||||||||
|
OAO Gazprom
(ADR) (1)
|
795,600 | 16,212 | .85 | |||||||||
|
The largest
natural gas producer and transporter in Russia.
|
||||||||||||
| 151,879 | 7.98 | |||||||||||
|
Industrials -
7.60%
|
||||||||||||
|
Schneider
Electric SA (1)
|
526,102 | 40,223 | 2.11 | |||||||||
|
An
international supplier of industrial electrical equipment and industrial
automation equipment.
|
||||||||||||
|
Mitsubishi
Corp. (1)
|
1,611,200 | 29,588 | 1.56 | |||||||||
|
A leading
trading company in Japan, with diversified operations in fields such as
energy, metals, machinery and food.
|
||||||||||||
|
Orkla AS
(1)
|
3,789,000 | 27,587 | 1.45 | |||||||||
|
Its core
business areas include consumer products, chemicals and
publishing. It also runs an investment portfolio of non-oil quoted
stocks and private equity investments.
|
|
|||||||||||
|
AB SKF, Class
B (1)
|
1,700,000 | 21,010 | 1.10 | |||||||||
|
Global
manufacturer of bearings, seals, mechatronics and lubrication
systems.
|
||||||||||||
|
Other
securities
|
26,251 | 1.38 | ||||||||||
| 144,659 | 7.60 | |||||||||||
|
Utilities -
6.51%
|
||||||||||||
|
GDF Suez
(1)
|
972,340 | 36,313 | 1.91 | |||||||||
|
Major natural
gas and electricity company based in France.
|
||||||||||||
|
Hongkong
Electric Holdings Ltd. (1)
|
5,784,000 | 32,176 | 1.69 | |||||||||
|
Its
subsidiaries include a Hong Kong electric utility, an engineering
consulting company and an international investment firm.
|
||||||||||||
|
Cia.
Energética de Minas Gerais - Cemig, preferred nominative
|
1,174,875 | 15,779 | .83 | |||||||||
|
Generates and
distributes electricity in the Brazilian state of Minas
Gerais.
|
||||||||||||
|
Other
securities
|
39,541 | 2.08 | ||||||||||
| 123,809 | 6.51 | |||||||||||
|
Information
technology - 6.50%
|
||||||||||||
|
Samsung
Electronics Co., Ltd. (1)
|
76,000 | 35,237 | 1.85 | |||||||||
|
Korea's top
electronics manufacturer and a global leader in semiconductor
production.
|
||||||||||||
|
Taiwan
Semiconductor Manufacturing Co. Ltd. (1)
|
17,902,000 | 29,774 | 1.57 | |||||||||
|
One of the
world's largest semiconductor manufacturers.
|
||||||||||||
|
Other
securities
|
58,689 | 3.08 | ||||||||||
| 123,700 | 6.50 | |||||||||||
|
Materials -
6.29%
|
||||||||||||
|
L'Air Liquide
SA, non-registered shares (1)
|
317,000 | 29,019 | 1.52 | |||||||||
|
Global
supplier of industrial gases.
|
||||||||||||
|
Impala
Platinum Holdings Ltd. (1)
|
1,225,000 | 27,159 | 1.43 | |||||||||
|
One of the
world's largest platinum producers.
|
||||||||||||
|
Syngenta AG
(1)
|
80,800 | 18,772 | .99 | |||||||||
|
One of the
world's largest agrochemical companies. Develops seeds and crop protection
products.
|
||||||||||||
|
BHP Billiton
PLC (ADR)
|
394,600 | 17,939 | .94 | |||||||||
|
The world's
largest diversified natural resources group, with operations principally
in the Southern Hemisphere.
|
||||||||||||
|
Other
securities
|
26,799 | 1.41 | ||||||||||
| 119,688 | 6.29 | |||||||||||
|
Consumer
discretionary - 4.34%
|
||||||||||||
|
Toyota Motor
Corp. (1)
|
889,700 | 33,633 | 1.77 | |||||||||
|
One of the
world's largest automotive manufacturers.
|
||||||||||||
|
H & M
Hennes & Mauritz AB, Class B (1)
|
420,700 | 21,028 | 1.10 | |||||||||
|
One of
Europe's largest specialty fashion retailers.
|
||||||||||||
|
Cie. Générale
des Établissements Michelin, Class B (1)
|
274,700 | 15,695 | .82 | |||||||||
|
One of the
world's largest tire makers. Its brands include Uniroyal and
Goodrich.
|
||||||||||||
|
Other
securities
|
12,343 | .65 | ||||||||||
| 82,699 | 4.34 | |||||||||||
|
Health
care - 4.22%
|
||||||||||||
|
Novartis AG
(1)
|
530,000 | 21,544 | 1.13 | |||||||||
|
One of the
world's largest pharmaceutical companies.
|
||||||||||||
|
Roche Holding
AG (1)
|
152,500 | 20,758 | 1.09 | |||||||||
|
A world
leader in pharmaceuticals and diagnostic research.
|
||||||||||||
|
Bayer AG,
non-registered shares (1)
|
350,100 | 18,793 | .99 | |||||||||
|
Makes
pharmaceuticals and over-the-counter medicines, and develops medical
diagnostic equipment.
|
||||||||||||
|
Other
securities
|
19,289 | 1.01 | ||||||||||
| 80,384 | 4.22 | |||||||||||
|
Miscellaneous - 0.22%
|
||||||||||||
|
Other common
stocks in initial period of acquisition
|
4,028 | .22 | ||||||||||
|
Total
common stocks (cost: $1,363,719,000)
|
1,509,197 | 79.31 | ||||||||||
|
|
Percent
|
|||||||||||
|
Value
|
of
net
|
|||||||||||
|
Preferred
stocks - 1.98%
|
Shares
|
(000 | ) |
assets
|
||||||||
|
Financials
- 1.98%
|
||||||||||||
|
Other
securities
|
37,695 | 1.98 | ||||||||||
|
Total
preferred stocks (cost: $24,485,000)
|
37,695 | 1.98 | ||||||||||
|
Principal
|
Percent
|
|||||||||||
|
amount
|
Value
|
of
net
|
||||||||||
|
Bonds
& notes - 6.79%
|
(000 | ) | (000 | ) |
assets
|
|||||||
|
Financials -
2.11%
|
||||||||||||
|
Westfield
Group 5.40%-7.125% 2012-2018 (2)
|
$ | 24,995 | 23,001 | |||||||||
|
Westfield
Capital Corp. Ltd., WT Finance (Australia) Pty Ltd. and WEA Finance LLC
5.125% 2014 (2)
|
2,690 | 2,423 | 1.34 | |||||||||
|
Société
Générale 6.999% (undated) (3)
|
€ | 6,200 | 5,956 | .31 | ||||||||
|
Other
securities
|
8,766 | .46 | ||||||||||
| 40,146 | 2.11 | |||||||||||
|
Bonds
& notes of governments outside the U.S. -
1.84%
|
||||||||||||
|
Brazilian
Treasury Bill 0% 2010
|
BRL40,200
|
19,640 | ||||||||||
|
Brazil
(Federal Republic of) 10.00% 2012 (1)
|
31,000 | 15,391 | 1.84 | |||||||||
| 35,031 | 1.84 | |||||||||||
|
Consumer
discretionary - 1.28%
|
||||||||||||
|
DaimlerChrysler
North America Holding Corp. 5.75%-7.75% 2011-2013
|
$ | 23,777 | 24,355 | 1.28 | ||||||||
| 24,355 | 1.28 | |||||||||||
|
Consumer
staples - 0.82%
|
||||||||||||
|
British
American Tobacco International Finance PLC 8.125%-9.50% 2013-2018
(2)
|
14,209 | 15,630 | .82 | |||||||||
| 15,630 | .82 | |||||||||||
|
Energy -
0.30%
|
||||||||||||
|
Open Joint
Stock Co. Gazprom 9.625% 2013
|
3,500 | 3,622 | ||||||||||
|
Gaz Capital
SA 7.288%-8.146% 2013-2037
|
1,305 | 1,168 | ||||||||||
|
Gazprom
International SA 7.201% 2020 (4)
|
1,019 | 976 | .30 | |||||||||
| 5,766 | .30 | |||||||||||
|
Other
- 0.44%
|
||||||||||||
|
Other
securities
|
8,260 | .44 | ||||||||||
|
Total
bonds & notes (cost: $109,221,000)
|
129,188 | 6.79 | ||||||||||
|
Principal
|
Percent
|
|||||||||||
|
amount
|
|
Value
|
of
net
|
|||||||||
|
Short-term
securities - 11.87%
|
(000 | ) | (000 | ) |
assets
|
|||||||
|
Federal Home
Loan Bank 0.16%-0.20% due 7/28-8/11/2009
|
$ | 54,300 | $ | 54,290 | 2.85 | % | ||||||
|
Fannie Mae
0.22% due 10/19-10/26/2009
|
33,500 | 33,464 | 1.76 | |||||||||
|
Calyon North
America Inc. 0.23%-0.27% due 7/6-8/3/2009
|
31,000 | 30,997 | 1.63 | |||||||||
|
Caisse
d'Amortissement de la Dette Sociale 0.28% due 9/10/2009
|
28,700 | 28,681 | 1.51 | |||||||||
|
General
Electric Capital Corp. 0.15% due 7/1/2009
|
18,400 | 18,400 | .97 | |||||||||
|
Abbott
Laboratories 0.20% due 8/13/2009 (2)
|
17,000 | 16,996 | .89 | |||||||||
|
Société
Générale North America, Inc. 0.65% due 7/20/2009
|
14,200 | 14,196 | .75 | |||||||||
|
Other
securities
|
28,892 | 1.51 | ||||||||||
|
Total
short-term securities (cost: $225,925,000)
|
225,916 | 11.87 | ||||||||||
|
Total
investment securities (cost: $1,723,350,000)
|
1,901,996 | 99.95 | ||||||||||
|
Other
assets less liabilities
|
838 | .05 | ||||||||||
|
Net
assets
|
$ | 1,902,834 | 100.00 | % | ||||||||
|
"Miscellaneous"
securities include holdings in their initial period of acquisition that
have not previously been publicly disclosed.
|
|
"Other
securities" includes all issues that are not disclosed separately in the
summary investment portfolio.
|
|
The following
footnotes apply to either the individual securities noted or one or more
of the securities aggregated and listed as a single line
item.
|
|
(1) Valued
under fair value procedures adopted by authority of the board of
directors.
The total
value of all such securities, including those in "Miscellaneous" and
"Other securities," was $1,405,703,000, which represented 73.87% of the
net assets of the fund. This amount includes $1,390,312,000 related to
certain securities trading outside the U.S. whose values were adjusted as
a result of significant market movements following the close of local
trading.
|
|
(2) Purchased
in a transaction exempt from registration under the Securities Act of
1933. May be resold in the U.S. in transactions exempt from registration,
normally to qualified institutional buyers. The total value of all such
securities , including those in "Other securities," was $115,073,000,
which represented 6.05% of the net assets of the fund.
|
|
(3) Coupon
rate may change periodically.
|
|
(4) Principal
payments may be made periodically. Therefore, the effective maturity
date may be earlier than the stated maturity date.
|
|
|
|
Key
to abbreviations and symbol
|
|
ADR =
American Depositary Receipts
|
|
BRL =
Brazilian reais
|
|
€ =
Euros
|
|
The
descriptions of the companies shown in the summary investment portfolio,
which were obtained from
published
reports and other sources believed to be reliable, are supplemental and
are not covered by the
Report of
Independent Registered Public Accounting
Firm.
|
|
|
|
See Notes to
Financial Statements
|
|
Statement
of assets and liabilities
|
||||||||
|
at June 30,
2009
|
(dollars in
thousands)
|
|||||||
|
Assets:
|
||||||||
|
Investment
securities, at value (cost: $1,723,350)
|
$ | 1,901,996 | ||||||
|
Cash
denominated in currencies other than U.S. dollars
|
||||||||
|
(cost:
$878)
|
878 | |||||||
|
Cash
|
67 | |||||||
|
Receivables
for:
|
||||||||
|
Sales
of investments
|
$ | 11,734 | ||||||
|
Sales
of fund's shares
|
9,306 | |||||||
|
Dividends
and interest
|
9,914 | 30,954 | ||||||
| 1,933,895 | ||||||||
|
Liabilities:
|
||||||||
|
Payables
for:
|
||||||||
|
Purchases
of investments
|
26,709 | |||||||
|
Repurchases
of fund's shares
|
2,336 | |||||||
|
Investment
advisory services
|
897 | |||||||
|
Services
provided by affiliates
|
811 | |||||||
|
Directors'
deferred compensation
|
225 | |||||||
|
Other
|
83 | 31,061 | ||||||
|
Net
assets at June 30, 2009
|
$ | 1,902,834 | ||||||
|
Net
assets consist of:
|
||||||||
|
Capital
paid in on shares of capital stock
|
$ | 1,721,424 | ||||||
|
Undistributed
net investment income
|
2,905 | |||||||
|
Accumulated
net realized loss
|
(521 | ) | ||||||
|
Net
unrealized appreciation
|
179,026 | |||||||
|
Net
assets at June 30, 2009
|
$ | 1,902,834 | ||||||
|
1.
|
Organization
and significant accounting policies
|
|
Share
class
|
Initial
sales charge
|
Contingent
deferred sales charge upon redemption
|
Conversion
feature
|
|
Classes A and
529-A
|
Up to
5.75%
|
None (except
1% for certain redemptions within one year of purchase without an initial
sales charge)
|
None
|
|
Classes B and
529-B*
|
None
|
Declines from
5% to 0% for redemptions within six years of purchase
|
Classes B and
529-B convert to Classes A and 529-A, respectively, after eight
years
|
|
Class
C
|
None
|
1% for
redemptions within one year of purchase
|
Class C
converts to Class F-1 after 10 years
|
|
Class
529-C
|
None
|
1% for
redemptions within one year of purchase
|
None
|
|
Class
529-E
|
None
|
None
|
None
|
|
Classes F-1,
F-2 and 529-F-1
|
None
|
None
|
None
|
|
Classes R-1,
R-2, R-3, R-4, R-5 and R-6
|
None
|
None
|
None
|
|
2.
|
Risk
factors
|
|
Share
class
|
Currently
approved limits
|
Plan
limits
|
|
Class
A
|
0.30%
|
0.30%
|
|
Class
529-A
|
0.30
|
0.50
|
|
Classes B and
529-B
|
1.00
|
1.00
|
|
Classes C,
529-C and R-1
|
1.00
|
1.00
|
|
Class
R-2
|
0.75
|
1.00
|
|
Classes 529-E
and R-3
|
0.50
|
0.75
|
|
Classes F-1,
529-F-1 and R-4
|
0.25
|
0.50
|
|
Share
class
|
Distribution
services
|
Transfer
agent services
|
Administrative
services
|
||
|
CRMC
administrative services
|
Transfer
agent services
|
Commonwealth
of Virginia administrative services
|
|||
|
Class
A
|
$2,071
|
$631
|
Not
applicable
|
Not
applicable
|
Not
applicable
|
|
Class
B
|
81
|
8
|
Not
applicable
|
Not
applicable
|
Not
applicable
|
|
Class
C
|
392
|
Included
in
administrative
services
|
$45
|
$5
|
Not
applicable
|
|
Class
F-1
|
213
|
87
|
8
|
Not
applicable
|
|
|
Class
F-2
|
Not
applicable
|
19
|
3
|
Not
applicable
|
|
|
Class
529-A
|
10
|
3
|
-*
|
$
3
|
|
|
Class
529-B
|
2
|
-*
|
-*
|
-*
|
|
|
Class
529-C
|
5
|
-*
|
-*
|
1
|
|
|
Class
529-E
|
1
|
-*
|
-*
|
-*
|
|
|
Class
529-F-1
|
-
|
-*
|
-*
|
-*
|
|
|
Class
R-1
|
9
|
1
|
-*
|
Not
applicable
|
|
|
Class
R-2
|
9
|
1
|
4
|
Not
applicable
|
|
|
Class
R-3
|
6
|
1
|
1
|
Not
applicable
|
|
|
Class
R-4
|
2
|
1
|
-*
|
Not
applicable
|
|
|
Class
R-5
|
Not
applicable
|
38
|
2
|
Not
applicable
|
|
|
Class
R-6
†
|
Not
applicable
|
5
|
-*
|
Not
applicable
|
|
|
Total
|
$2,801
|
$639
|
$201
|
$23
|
$4
|
|
Income from
investment operations
(2)
|
||||||||||||||||||||||||||||||||||||||||||||
|
Net asset
value, beginning of period
|
Net investment
income
|
Net (losses)
gains on securities (both realized and unrealized)
|
Total from
investment operations
|
Dividends
(from net investment income)
|
Net asset
value, end of period
|
Total return
(3)
(4)
|
Net assets,
end of period (in millions)
|
Ratio of
expenses to average net assets before reimbursements/
waivers
|
Ratio of expenses to average net
assets after reimbursements/
waivers
(4)
|
Ratio of net income to average net
assets
(4)
|
||||||||||||||||||||||||||||||||||
|
Class
A:
|
||||||||||||||||||||||||||||||||||||||||||||
|
Period from
10/1/2008
(5)
to 6/30/2009
|
$ | 25.00 | $ | .62 | $ | (.39 | ) | $ | .23 | $ | (.45 | ) | $ | 24.78 | 1.04 | % | $ | 1,424 | 1.11 | % (6) | 1.06 | % (6) | 3.73 | % (6) | ||||||||||||||||||||
|
Class
B:
|
||||||||||||||||||||||||||||||||||||||||||||
|
Period from
10/1/2008
(5)
to 6/30/2009
|
25.00 | .53 | (.42 | ) | .11 | (.36 | ) | 24.75 | .49 | 18 | 1.81 | (6) | 1.77 | (6) | 3.16 | (6) | ||||||||||||||||||||||||||||
|
Class
C:
|
||||||||||||||||||||||||||||||||||||||||||||
|
Period from
10/1/2008
(5)
to 6/30/2009
|
25.00 | .51 | (.41 | ) | .10 | (.35 | ) | 24.75 | .48 | 87 | 1.84 | (6) | 1.80 | (6) | 3.07 | (6) | ||||||||||||||||||||||||||||
|
Class
F-1:
|
||||||||||||||||||||||||||||||||||||||||||||
|
Period from
10/1/2008
(5)
to 6/30/2009
|
25.00 | .63 | (.39 | ) | .24 | (.46 | ) | 24.78 | 1.06 | 164 | 1.07 | (6) | 1.03 | (6) | 3.76 | (6) | ||||||||||||||||||||||||||||
|
Class
F-2:
|
||||||||||||||||||||||||||||||||||||||||||||
|
Period from
10/1/2008
(5)
to 6/30/2009
|
25.00 | .60 | (.31 | ) | .29 | (.50 | ) | 24.79 | 1.28 | 119 | .82 | (6) | .76 | (6) | 3.57 | (6) | ||||||||||||||||||||||||||||
|
Class
529-A:
|
||||||||||||||||||||||||||||||||||||||||||||
|
Period from
10/1/2008
(5)
to 6/30/2009
|
25.00 | .70 | (.49 | ) | .21 | (.44 | ) | 24.77 | .96 | 9 | 1.20 | (6) | 1.16 | (6) | 4.16 | (6) | ||||||||||||||||||||||||||||
|
Class
529-B:
|
||||||||||||||||||||||||||||||||||||||||||||
|
Period from
10/1/2008
(5)
to 6/30/2009
|
25.00 | .50 | (.41 | ) | .09 | (.35 | ) | 24.74 | .43 |
_
(7)
|
1.93 | (6) | 1.88 | (6) | 3.00 | (6) | ||||||||||||||||||||||||||||
|
Class
529-C:
|
||||||||||||||||||||||||||||||||||||||||||||
|
Period from
10/1/2008
(5)
to 6/30/2009
|
25.00 | .65 | (.57 | ) | .08 | (.36 | ) | 24.72 | .41 | 2 | 1.91 | (6) | 1.88 | (6) | 3.81 | (6) | ||||||||||||||||||||||||||||
|
Class
529-E:
|
||||||||||||||||||||||||||||||||||||||||||||
|
Period from
10/1/2008
(5)
to 6/30/2009
|
25.00 | .74 | (.56 | ) | .18 | (.40 | ) | 24.78 | .82 |
_
(7)
|
1.39 | (6) | 1.35 | (6) | 4.36 | (6) | ||||||||||||||||||||||||||||
|
Class
529-F-1:
|
||||||||||||||||||||||||||||||||||||||||||||
|
Period from
10/1/2008
(5)
to 6/30/2009
|
25.00 | .76 | (.49 | ) | .27 | (.48 | ) | 24.79 | 1.18 |
_
(7)
|
.90 | (6) | .86 | (6) | 4.48 | (6) | ||||||||||||||||||||||||||||
|
Class
R-1:
|
||||||||||||||||||||||||||||||||||||||||||||
|
Period from
10/1/2008
(5)
to 6/30/2009
|
25.00 | .45 | (.34 | ) | .11 | (.35 | ) | 24.76 | .52 | 2 | 1.82 | (6) | 1.77 | (6) | 2.68 | (6) | ||||||||||||||||||||||||||||
|
Class
R-2:
|
||||||||||||||||||||||||||||||||||||||||||||
|
Period from
10/1/2008
(5)
to 6/30/2009
|
25.00 | .54 | (.44 | ) | .10 | (.36 | ) | 24.74 | .48 | 3 | 1.88 | (6) | 1.78 | (6) | 3.22 | (6) | ||||||||||||||||||||||||||||
|
Class
R-3:
|
||||||||||||||||||||||||||||||||||||||||||||
|
Period from
10/1/2008
(5)
to 6/30/2009
|
25.00 | .61 | (.42 | ) | .19 | (.41 | ) | 24.78 | .85 | 3 | 1.38 | (6) | 1.33 | (6) | 3.64 | (6) | ||||||||||||||||||||||||||||
|
Class
R-4:
|
||||||||||||||||||||||||||||||||||||||||||||
|
Period from
10/1/2008
(5)
to 6/30/2009
|
25.00 | .61 | (.37 | ) | .24 | (.45 | ) | 24.79 | 1.09 | 2 | 1.07 | (6) | 1.02 | (6) | 3.63 | (6) | ||||||||||||||||||||||||||||
|
Class
R-5:
|
||||||||||||||||||||||||||||||||||||||||||||
|
Period from
10/1/2008
(5)
to 6/30/2009
|
25.00 | .76 | (.47 | ) | .29 | (.43 | ) | 24.86 | 1.28 | 6 | .81 | (6) | .78 | (6) | 4.65 | (6) | ||||||||||||||||||||||||||||
|
Class
R-6:
|
||||||||||||||||||||||||||||||||||||||||||||
|
Period from
5/1/2009 to 6/30/2009
|
22.97 | .25 | 1.90 | 2.15 | (.34 | ) | 24.78 | 9.38 | 64 | .12 | .12 | 1.01 | ||||||||||||||||||||||||||||||||
|
For the
period
10/1/2008
(5)
to 6/30/2009
|
||
|
|
||
|
Portfolio
turnover rate for all classes of shares
|
33%
|
|
(1)
Based
on operations for the periods shown (unless otherwise noted) and,
accordingly, is not representative of a full year.
|
|||||||||||
|
(2)
Based
on average shares outstanding.
|
|||||||||||
|
(3)
Total
returns exclude any applicable sales charges, including contingent
deferred sales charges.
|
|||||||||||
|
(4)
This
column reflects the impact, if any, of certain reimbursements/waivers from
CRMC. During some of the periods shown, CRMC reduced fees for investment
advisory services and reimbursed other fees and expenses. In addition,
during some of the periods shown, CRMC paid a portion of the fund's
transfer agent fees for certain retirement plan share
classes.
|
|||||||||||
|
(5)
Commencement
of operations.
|
|||||||||||
|
(6)
Annualized.
|
|||||||||||
|
(7)
Amount
less than $1 million.
|
|||||||||||
|
See Notes to
Financial Statements
|
|||||||||||
|
Foreign
taxes
|
$0.06 per
share
|
|||
|
Foreign
source income
|
$0.58 per
share
|
|||
|
Qualified
dividend income
|
100 | % | ||
|
U.S.
government income that may be exempt from state taxation
|
$ | 45,000 | ||
|
(a)
|
Articles of Incorporation
– Certificate of Trust and Agreement and Declaration of
Trust
|
|
(b)
|
By-laws
–
By-laws
|
|
(c)
|
Instruments Defining Rights of
Security Holders
– None
|
|
(d)
|
Investment Advisory Contracts
– Investment Advisory and Service Agreement dated
3/1/10
|
|
(e)
|
Underwriting Contracts
–
Form of Selling Group Agreement; Form of Bank/Trust Company Selling Group
Agreement; Form of Class F Share Participation Agreement; Form of
Bank/Trust Company Participation Agreement for Class F Shares; and Form of
Principal Underwriting Agreement effective
3/1/2010
|
|
(f)
|
Bonus or Profit Sharing
Contracts
– Deferred Compensation Plan effective
8/7/09
|
|
(g)
|
Custodian Agreements
–
Form of Global Custody Agreement dated 12/21/06 – previously filed (see
P/E Amendment No. 2 filed 9/22/08)
|
|
(h)
|
Other Material Contracts
– Form of Shareholder Services Agreement dated 3/1/2010; Form of
Indemnification Agreement; Form of Administrative Services Agreement
effective 3/1/2010; and Form of Agreement and Plan of Reorganization dated
8/24/2009
|
|
(i)
|
Legal Opinion
– Legal
Opinion
|
|
(j)
|
Other Opinions
– Consent
of Independent Registered Public Accounting
Firm
|
|
(k)
|
Omitted Financial Statements
- none
|
|
(l)
|
Initial Capital
Agreements
– Investment Letters dated 8/4/08 and 9/9/08 –
previously filed (see P/E Amendment No. 2 filed
9/22/08)
|
|
(m)
|
Rule 12b-1 Plan
– Forms
of Plans of Distribution for Classes A, B, C, F-1, 529-A,
529-B, 529-C,
529-E, 529-F-1, R-1, R-2, R-3 and R-4 dated
3/1/10
|
|
(n)
|
Rule 18f-3 Plan
– Form
of Multiple Class Plan dated
3/1/2010
|
|
(o)
|
Reserved
|
|
(p)
|
Code of Ethics
– Code of
Ethics for The Capital Group Companies dated June 2009 and Code of Ethics
for the Registrant dated December
2005
|
|
(1)
Name and
Principal
Business
Address
|
(2)
Positions and
Offices
with
Underwriter
|
(3)
Positions and
Offices
with
Registrant
|
|
|
LAO
|
David L.
Abzug
|
Vice
President
|
None
|
|
IRV
|
Laurie M.
Allen
|
Senior Vice
President
|
None
|
|
LAO
|
William C.
Anderson
|
Vice
President
|
None
|
|
LAO
|
Robert B.
Aprison
|
Senior Vice
President
|
None
|
|
LAO
|
T. Patrick
Bardsley
|
Regional Vice
President
|
None
|
|
LAO
|
Shakeel A.
Barkat
|
Vice
President
|
None
|
|
IRV
|
Carl R.
Bauer
|
Vice
President
|
None
|
|
LAO
|
Michelle A.
Bergeron
|
Senior Vice
President
|
None
|
|
LAO
|
Roger J.
Bianco, Jr.
|
Regional Vice
President
|
None
|
|
LAO
|
John A.
Blanchard
|
Senior Vice
President
|
None
|
|
LAO
|
Randall L.
Blanchetti
|
Regional Vice
President
|
None
|
|
LAO
|
Gerard M.
Bockstie, Jr.
|
Regional Vice
President
|
None
|
|
LAO
|
Jonathan W.
Botts
|
Vice
President
|
None
|
|
LAO
|
Bill
Brady
|
Director,
Senior Vice President
|
None
|
|
LAO
|
Mick L.
Brethower
|
Senior Vice
President
|
None
|
|
LAO
|
C. Alan
Brown
|
Vice
President
|
None
|
|
IRV
|
William H.
Bryan
|
Regional Vice
President
|
None
|
|
LAO
|
Sheryl M.
Burford
|
Assistant
Vice President
|
None
|
|
LAO
|
Steven
Calabria
|
Vice
President
|
None
|
|
LAO
|
Thomas E.
Callahan
|
Regional Vice
President
|
None
|
|
LAO
|
Damian F.
Carroll
|
Director,
Vice President
|
None
|
|
LAO
|
James D.
Carter
|
Vice
President
|
None
|
|
LAO
|
Brian C.
Casey
|
Senior Vice
President
|
None
|
|
LAO
|
Victor C.
Cassato
|
Senior Vice
President
|
None
|
|
LAO
|
Christopher
J. Cassin
|
Senior Vice
President
|
None
|
|
LAO
|
Denise M.
Cassin
|
Director,
Senior Vice President and Director of Intermediary
Relations
|
None
|
|
LAO
|
David D.
Charlton
|
Director,
Senior Vice President and Director of Marketing
|
None
|
|
LAO
|
Thomas M.
Charon
|
Vice
President
|
None
|
|
LAO
|
Paul A.
Cieslik
|
Vice
President
|
None
|
|
LAO
|
Kevin G.
Clifford
|
Director,
President and
Chief
Executive Officer
|
None
|
|
LAO
|
Ruth M.
Collier
|
Senior Vice
President
|
None
|
|
LAO
|
Charles H.
Cote
|
Regional Vice
President
|
None
|
|
SNO
|
Kathleen D.
Cox
|
Vice
President
|
None
|
|
LAO
|
Michael D.
Cravotta
|
Assistant
Vice President
|
None
|
|
LAO
|
Joseph G.
Cronin
|
Vice
President
|
None
|
|
LAO
|
D. Erick
Crowdus
|
Regional Vice
President
|
None
|
|
LAO
|
William F.
Daugherty
|
Senior Vice
President
|
None
|
|
LAO
|
Peter J.
Deavan
|
Regional Vice
President
|
None
|
|
LAO
|
Daniel J.
Delianedis
|
Senior Vice
President
|
None
|
|
LAO
|
James W.
DeLouise
|
Assistant
Vice President
|
None
|
|
LAO
|
James A.
DePerno, Jr.
|
Senior Vice
President
|
None
|
|
LAO
|
Bruce L.
DePriester
|
Director,
Senior Vice
President,
Treasurer and
Controller
|
None
|
|
LAO
|
Dianne M.
Dexter
|
Assistant
Vice President
|
None
|
|
LAO
|
Thomas J.
Dickson
|
Vice
President
|
None
|
|
NYO
|
Dean M.
Dolan
|
Vice
President
|
None
|
|
LAO
|
Hedy B.
Donahue
|
Assistant
Vice President
|
None
|
|
LAO
|
Michael J.
Downer
|
Director
|
None
|
|
LAO
|
Craig A.
Duglin
|
Regional Vice
President
|
None
|
|
LAO
|
Timothy L.
Ellis
|
Senior Vice
President
|
None
|
|
LAO
|
Lorna
Fitzgerald
|
Vice
President
|
None
|
|
LAO
|
William F.
Flannery
|
Vice
President
|
None
|
|
LAO
|
John R.
Fodor
|
Director,
Executive Vice President
|
None
|
|
SNO
|
Michael J.
Franchella
|
Assistant
Vice President
|
None
|
|
LAO
|
Charles L.
Freadhoff
|
Vice
President
|
None
|
|
LAO
|
Daniel B.
Frick
|
Senior Vice
President
|
None
|
|
LAO
|
J.
Christopher Gies
|
Senior Vice
President
|
None
|
|
LAO
|
David M.
Givner
|
Secretary
|
None
|
|
LAO
|
Jack E.
Goldin
|
Vice
President
|
None
|
|
LAO
|
Earl C.
Gottschalk
|
Vice
President
|
None
|
|
LAO
|
Jeffrey J.
Greiner
|
Director,
Senior Vice President
|
None
|
|
LAO
|
Eric M.
Grey
|
Senior Vice
President
|
None
|
|
NYO
|
Maura S.
Griffin
|
Assistant
Vice President
|
None
|
|
LAO
|
Christopher
M. Guarino
|
Senior Vice
President
|
None
|
|
IRV
|
Steven
Guida
|
Director,
Senior Vice President
|
None
|
|
LAO
|
Derek S.
Hansen
|
Vice
President
|
None
|
|
LAO
|
Robert J.
Hartig, Jr.
|
Vice
President
|
None
|
|
LAO
|
Craig W.
Hartigan
|
Regional Vice
President
|
None
|
|
LAO
|
Linda Molnar
Hines
|
Vice
President
|
None
|
|
LAO
|
Russell K.
Holliday
|
Vice
President
|
None
|
|
LAO
|
Heidi
Horwitz-Marcus
|
Vice
President
|
None
|
|
LAO
|
Kevin B.
Hughes
|
Vice
President
|
None
|
|
LAO
|
Marc
Ialeggio
|
Vice
President
|
None
|
|
HRO
|
Jill
Jackson-Chavis
|
Vice
President
|
None
|
|
IND
|
David K.
Jacocks
|
Assistant
Vice President
|
None
|
|
LAO
|
Linda
Johnson
|
Vice
President
|
None
|
|
GVO-1
|
Joanna F.
Jonsson
|
Director
|
None
|
|
LAO
|
Marc J.
Kaplan
|
Vice
President
|
None
|
|
LAO
|
John P.
Keating
|
Senior Vice
President
|
None
|
|
LAO
|
Brian G.
Kelly
|
Vice
President
|
None
|
|
LAO
|
Ryan C.
Kidwell
|
Regional Vice
President
|
None
|
|
LAO
|
Mark
Kistler
|
Regional Vice
President
|
None
|
|
NYO
|
Dorothy
Klock
|
Vice
President
|
None
|
|
IRV
|
Elizabeth K.
Koster
|
Vice
President
|
None
|
|
LAO
|
Christopher
F. Lanzafame
|
Regional Vice
President
|
None
|
|
IRV
|
Laura
Lavery
|
Vice
President
|
None
|
|
LAO
|
R. Andrew
LeBlanc
|
Vice
President
|
None
|
|
LAO
|
Clay M.
Leveritt
|
Regional Vice
President
|
None
|
|
LAO
|
Susan B.
Lewis
|
Assistant
Vice President
|
None
|
|
LAO
|
T. Blake
Liberty
|
Vice
President
|
None
|
|
LAO
|
Lorin E.
Liesy
|
Vice
President
|
None
|
|
LAO
|
Louis K.
Linquata
|
Vice
President
|
None
|
|
LAO
|
Brendan T.
Mahoney
|
Senior Vice
President
|
None
|
|
LAO
|
Nathan G.
Mains
|
Regional Vice
President
|
None
|
|
LAO
|
Stephen A.
Malbasa
|
Director,
Senior Vice President and Director of Retirement Plan
Business
|
None
|
|
LAO
|
Paul R.
Mayeda
|
Assistant
Vice President
|
None
|
|
LAO
|
Eleanor P.
Maynard
|
Vice
President
|
None
|
|
LAO
|
Joseph A.
McCreesh, III
|
Regional Vice
President
|
None
|
|
LAO
|
Will
McKenna
|
Vice
President
|
None
|
|
LAO
|
Scott M.
Meade
|
Senior Vice
President
|
None
|
|
LAO
|
Daniel P.
Melehan
|
Regional Vice
President
|
None
|
|
LAO
|
William T.
Mills
|
Regional Vice
President
|
None
|
|
LAO
|
James R.
Mitchell III
|
Regional Vice
President
|
None
|
|
LAO
|
Charles L.
Mitsakos
|
Regional Vice
President
|
None
|
|
LAO
|
Monty L.
Moncrief
|
Vice
President
|
None
|
|
LAO
|
David H.
Morrison
|
Vice
President
|
None
|
|
LAO
|
Andrew J.
Moscardini
|
Vice
President
|
None
|
|
LAO
|
Brian D.
Munson
|
Regional Vice
President
|
None
|
|
LAO
|
Jon Christian
Nicolazzo
|
Regional Vice
President
|
None
|
|
LAO
|
Jack
Nitowitz
|
Assistant
Vice President
|
None
|
|
LAO
|
William E.
Noe
|
Senior Vice
President
|
None
|
|
LAO
|
Matthew P.
O’Connor
|
Vice
President
|
None
|
|
LAO
|
Jonathan H.
O’Flynn
|
Regional Vice
President
|
None
|
|
LAO
|
Eric P.
Olson
|
Senior Vice
President
|
None
|
|
LAO
|
Jeffrey A.
Olson
|
Vice
President
|
None
|
|
LAO
|
Thomas A.
O’Neil
|
Regional Vice
President
|
None
|
|
LAO
|
Shawn M.
O’Sullivan
|
Regional Vice
President
|
None
|
|
LAO
|
W. Burke
Patterson, Jr.
|
Vice
President
|
None
|
|
LAO
|
Gary A.
Peace
|
Senior Vice
President
|
None
|
|
LAO
|
Samuel W.
Perry
|
Vice
President
|
None
|
|
LAO
|
David K.
Petzke
|
Senior Vice
President
|
None
|
|
IRV
|
John H.
Phelan, Jr.
|
Director
|
None
|
|
LAO
|
John
Pinto
|
Vice
President
|
None
|
|
LAO
|
Carl S.
Platou
|
Senior Vice
President
|
None
|
|
LAO
|
Charles R.
Porcher
|
Regional Vice
President
|
None
|
|
LAO
|
Julie K.
Prather
|
Vice
President
|
None
|
|
SNO
|
Richard P.
Prior
|
Vice
President
|
None
|
|
LAO
|
Steven J.
Quagrello
|
Regional Vice
President
|
None
|
|
LAO
|
Mike
Quinn
|
Vice
President
|
None
|
|
SNO
|
John P.
Raney
|
Assistant
Vice President
|
None
|
|
LAO
|
James P.
Rayburn
|
Vice
President
|
None
|
|
LAO
|
Rene M.
Reincke
|
Vice
President
|
None
|
|
LAO
|
Steven J.
Reitman
|
Senior Vice
President
|
None
|
|
LAO
|
Jeffrey
Robinson
|
Vice
President
|
None
|
|
LAO
|
Suzette M.
Rothberg
|
Regional Vice
President
|
None
|
|
LAO
|
James F.
Rothenberg
|
Non-Executive
Chairman and Director
|
None
|
|
LAO
|
Romolo D.
Rottura
|
Vice
President
|
None
|
|
LAO
|
William M.
Ryan
|
Regional Vice
President
|
None
|
|
LAO
|
Dean B.
Rydquist
|
Director,
Senior Vice
President,
Chief
Compliance Officer
|
None
|
|
LAO
|
Richard A.
Sabec, Jr.
|
Vice
President
|
None
|
|
LAO
|
Paul V.
Santoro
|
Vice
President
|
None
|
|
LAO
|
Joseph D.
Scarpitti
|
Senior Vice
President
|
None
|
|
IRV
|
MaryAnn
Scarsone
|
Assistant
Vice President
|
None
|
|
LAO
|
Kim D.
Schmidt
|
Assistant
Vice President
|
None
|
|
LAO
|
Shane D.
Schofield
|
Vice
President
|
None
|
|
LAO
|
David L.
Schroeder
|
Assistant
Vice President
|
None
|
|
LAO
|
James J.
Sewell III
|
Regional Vice
President
|
None
|
|
LAO
|
Arthur M.
Sgroi
|
Vice
President
|
None
|
|
LAO
|
Steven D.
Shackelford
|
Regional Vice
President
|
None
|
|
LAO
|
Michael J.
Sheldon
|
Vice
President
|
None
|
|
LAO
|
Daniel S.
Shore
|
Vice
President
|
None
|
|
LAO
|
Brad
Short
|
Vice
President
|
None
|
|
LAO
|
Nathan W.
Simmons
|
Regional Vice
President
|
None
|
|
LAO
|
Connie F.
Sjursen
|
Vice
President
|
None
|
|
LAO
|
Jerry L.
Slater
|
Senior Vice
President
|
None
|
|
SNO
|
Stacy D.
Smolka
|
Assistant
Vice President
|
None
|
|
LAO
|
J. Eric
Snively
|
Vice
President
|
None
|
|
LAO
|
Therese L.
Soullier
|
Vice
President
|
None
|
|
LAO
|
Kristen J.
Spazafumo
|
Vice
President
|
None
|
|
LAO
|
Mark D.
Steburg
|
Vice
President
|
None
|
|
LAO
|
Michael P.
Stern
|
Regional Vice
President
|
None
|
|
LAO
|
Brad
Stillwagon
|
Vice
President
|
None
|
|
LAO
|
Craig R.
Strauser
|
Senior Vice
President
|
None
|
|
LAO
|
Libby J.
Syth
|
Vice
President
|
None
|
|
LAO
|
Drew W.
Taylor
|
Senior Vice
President
|
None
|
|
LAO
|
Gary J.
Thoma
|
Vice
President
|
None
|
|
LAO
|
Cynthia M.
Thompson
|
Vice
President
|
None
|
|
LAO
|
David R.
Therrien
|
Assistant
Vice President
|
None
|
|
LAO
|
John B.
Thomas
|
Regional Vice
President
|
None
|
|
LAO
|
Mark R.
Threlfall
|
Regional Vice
President
|
None
|
|
LAO
|
David
Tippets
|
Regional Vice
President
|
None
|
|
IND
|
James P.
Toomey
|
Vice
President
|
None
|
|
LAO
|
Luke N.
Trammel
|
Regional Vice
President
|
None
|
|
IND
|
Christopher
E. Trede
|
Vice
President
|
None
|
|
LAO
|
Scott W.
Ursin-Smith
|
Senior Vice
President
|
None
|
|
SNO
|
Cindy
Vaquiax
|
Vice
President
|
None
|
|
LAO
|
Srinkanth
Vemuri
|
Regional Vice
President
|
None
|
|
LAO
|
J. David
Viale
|
Senior Vice
President
|
None
|
|
DCO
|
Bradley J.
Vogt
|
Director
|
None
|
|
LAO
|
Sherrie S.
Walling
|
Assistant
Vice President
|
None
|
|
SNO
|
Chris L.
Wammack
|
Assistant
Vice President
|
None
|
|
LAO
|
Thomas E.
Warren
|
Senior Vice
President
|
None
|
|
LAO
|
Gregory J.
Weimer
|
Senior Vice
President
|
None
|
|
SFO
|
Gregory W.
Wendt
|
Director
|
None
|
|
LAO
|
George J.
Wenzel
|
Vice
President
|
None
|
|
LAO
|
Jason M.
Weybrecht
|
Regional Vice
President
|
None
|
|
LAO
|
Brian E.
Whalen
|
Vice
President
|
None
|
|
LAO
|
William C.
Whittington
|
Regional Vice
President
|
None
|
|
LAO
|
N. Dexter
Williams, Jr.
|
Senior Vice
President
|
None
|
|
LAO
|
Andrew L.
Wilson
|
Vice
President
|
None
|
|
LAO
|
Steven C.
Wilson
|
Regional Vice
President
|
None
|
|
LAO
|
Timothy J.
Wilson
|
Director,
Senior Vice President
|
None
|
|
LAO
|
Kurt A.
Wuestenberg
|
Vice
President
|
None
|
|
LAO
|
Jason P.
Young
|
Vice
President
|
None
|
|
LAO
|
Jonathan A.
Young
|
Vice
President
|
None
|
|
DCO
|
Business
Address, 3000 K Street N.W., Suite 230, Washington, DC
20007-5140
|
|
GVO-1
|
Business
Address, 3 Place des Bergues, 1201 Geneva, Switzerland
|
|
HRO
|
Business
Address, 5300 Robin Hood Road, Norfolk, VA 23513
|
|
IND
|
Business
Address, 8332 Woodfield Crossing Blvd., Indianapolis, IN
46240
|
|
IRV
|
Business
Address, 6455 Irvine Center Drive, Irvine, CA 92618
|
|
LAO
|
Business
Address, 333 South Hope Street, Los Angeles,
CA 90071
|
|
LAO-W
|
Business
Address, 11100 Santa Monica Blvd., 15th Floor, Los Angeles,
CA 90025
|
|
NYO
|
Business
Address, 630 Fifth Avenue, 36
th
Floor, New York, NY 10111
|
|
SFO
|
Business
Address, One Market, Steuart Tower, Suite 1800, San Francisco, CA
94105
|
|
SNO
|
Business
Address, 3500 Wiseman Boulevard, San Antonio,
TX 78251
|
|
-
|
American
Balanced Fund (File No. 002-10758, File No.
811-00066)
|
|
-
|
The Income
Fund of America, Inc. (File No. 002-33371, File No.
811-01880)
|
|
-
|
International
Growth and Income Fund (File No. 333-152323, File No.
811-22215)
|
|
Vincent P.
Corti
Chad L.
Norton
Patrick F.
Quan
Kimberly S.
Verdick
Steven I.
Koszalka
Julie E.
Lawton
Tanya
Schneider
Raymond F.
Sullivan, Jr.
Courtney R.
Taylor
|
Jennifer M.
Buchheim
|
|
-
|
American
Balanced Fund (File No. 002-10758, File No.
811-00066)
|
|
-
|
EuroPacific
Growth Fund (File No. 002-83847, File No.
811-03734)
|
|
-
|
Fundamental
Investors, Inc. (File No. 002-10760, File No.
811-00032)
|
|
-
|
The Growth
Fund of America, Inc. (File No. 002-14728, File No.
811-00862)
|
|
-
|
The Income
Fund of America, Inc. (File No. 002-33371, File No.
811-01880)
|
|
-
|
International
Growth and Income Fund (File No. 333-152323, File No.
811-22215)
|
|
-
|
New
Perspective Fund, Inc. (File No. 002-47749, File No.
811-02333)
|
|
-
|
New World
Fund, Inc. (File No. 333-67455, File No.
811-09105)
|
|
-
|
SMALLCAP
World Fund, Inc. (File No. 033-32785, File No.
811-05888)
|
|
Vincent P.
Corti
Chad L.
Norton
Patrick F.
Quan
Kimberly S.
Verdick
Steven I.
Koszalka
Julie E.
Lawton
Tanya
Schneider
Raymond F.
Sullivan, Jr.
Courtney R.
Taylor
|
Jennifer M.
Buchheim
Bryan K.
Nielsen
Jeffrey P.
Regal
Neal F.
Wellons
|
|
-
|
American
Balanced Fund (File No. 002-10758, File No.
811-00066)
|
|
-
|
Capital
Income Builder, Inc. (File No. 033-12967, File No.
811-05085)
|
|
-
|
Capital World
Growth and Income Fund, Inc. (File No. 033-54444, File No.
811-07338)
|
|
-
|
Fundamental
Investors, Inc. (File No. 002-10760, File No.
811-00032)
|
|
-
|
The Growth
Fund of America, Inc. (File No. 002-14728, File No.
811-00862)
|
|
-
|
The Income
Fund of America, Inc. (File No. 002-33371, File No.
811-01880)
|
|
-
|
International
Growth and Income Fund (File No. 333-152323, File No.
811-22215)
|
|
-
|
The New
Economy Fund (File No. 002-83848, File No.
811-03735)
|
|
-
|
SMALLCAP
World Fund, Inc. (File No. 033-32785, File No.
811-05888)
|
|
Vincent P.
Corti
Chad L.
Norton
Patrick F.
Quan
Kimberly S.
Verdick
Steven I.
Koszalka
Julie E.
Lawton
Tanya
Schneider
Raymond F.
Sullivan, Jr.
Courtney R.
Taylor
|
Jennifer M.
Buchheim
Jeffrey P.
Regal
Neal F.
Wellons
|
|
-
|
American
Balanced Fund (File No. 002-10758, File No.
811-00066)
|
|
-
|
AMCAP Fund,
Inc. (File No. 002-26516, File No.
811-01435)
|
|
-
|
American
Mutual Fund, Inc. (File No. 002-10607, File No.
811-00572)
|
|
-
|
The Income
Fund of America, Inc. (File No. 002-33371, File No.
811-01880)
|
|
-
|
International
Growth and Income Fund (File No. 333-152323, File No.
811-22215)
|
|
-
|
The
Investment Company of America (File No. 002-10811, File No.
811-00116)
|
|
Vincent P.
Corti
Chad L.
Norton
Patrick F.
Quan
Kimberly S.
Verdick
Steven I.
Koszalka
Julie E.
Lawton
Tanya
Schneider
Raymond F.
Sullivan, Jr.
Courtney R.
Taylor
|
Jennifer M.
Buchheim
Karl C.
Grauman
Carmelo
Spinella
|
|
-
|
American
Balanced Fund (File No. 002-10758, File No.
811-00066)
|
|
-
|
The Income
Fund of America, Inc. (File No. 002-33371, File No.
811-01880)
|
|
-
|
International
Growth and Income Fund (File No. 333-152323, File No.
811-22215)
|
|
Vincent P.
Corti
Chad L.
Norton
Patrick F.
Quan
Kimberly S.
Verdick
Steven I.
Koszalka
Julie E.
Lawton
Tanya
Schneider
Raymond F.
Sullivan, Jr.
Courtney R.
Taylor
|
Jennifer M.
Buchheim
|
|
-
|
AMCAP Fund,
Inc. (File No. 002-26516, File No.
811-01435)
|
|
-
|
American
Balanced Fund (File No. 002-10758, File No.
811-00066)
|
|
-
|
American
Mutual Fund, Inc. (File No. 002-10607, File No.
811-00572)
|
|
-
|
EuroPacific
Growth Fund (File No. 002-83847, File No.
811-03734)
|
|
-
|
Fundamental
Investors, Inc. (File No. 002-10760, File No.
811-00032)
|
|
-
|
The Growth
Fund of America, Inc. (File No. 002-14728, File No.
811-00862)
|
|
-
|
The Income
Fund of America, Inc. (File No. 002-33371, File No.
811-01880)
|
|
-
|
International
Growth and Income Fund (File No. 333-152323, File No.
811-22215)
|
|
-
|
The
Investment Company of America (File No. 002-10811, File No.
811-00116)
|
|
-
|
New
Perspective Fund, Inc. (File No. 002-47749, File No.
811-02333)
|
|
-
|
New World
Fund, Inc. (File No. 333-67455, File No.
811-09105)
|
|
-
|
SMALLCAP
World Fund, Inc. (File No. 033-32785, File No.
811-05888)
|
|
Vincent P.
Corti
Chad L.
Norton
Patrick F.
Quan
Kimberly S.
Verdick
Steven I.
Koszalka
Julie E.
Lawton
Tanya
Schneider
Raymond F.
Sullivan, Jr.
Courtney R.
Taylor
|
Jennifer M.
Buchheim
Karl C.
Grauman
Bryan K.
Nielsen
Jeffrey P.
Regal
Carmelo
Spinella
Neal F.
Wellons
|
|
-
|
American
Balanced Fund (File No. 002-10758, File No.
811-00066)
|
|
-
|
The Income
Fund of America, Inc. (File No. 002-33371, File No.
811-01880)
|
|
-
|
International
Growth and Income Fund (File No. 333-152323, File No.
811-22215)
|
|
Vincent P.
Corti
Chad L.
Norton
Patrick F.
Quan
Kimberly S.
Verdick
Steven I.
Koszalka
Julie E.
Lawton
Tanya
Schneider
Raymond F.
Sullivan, Jr.
Courtney R.
Taylor
|
Jennifer M.
Buchheim
|
|
-
|
American
Balanced Fund (File No. 002-10758, File No.
811-00066)
|
|
-
|
Fundamental
Investors, Inc. (File No. 002-10760, File No.
811-00032)
|
|
-
|
The Growth
Fund of America, Inc. (File No. 002-14728, File No.
811-00862)
|
|
-
|
The Income
Fund of America, Inc. (File No. 002-33371, File No.
811-01880)
|
|
-
|
International
Growth and Income Fund (File No. 333-152323, File No.
811-22215)
|
|
Vincent P.
Corti
Chad L.
Norton
Patrick F.
Quan
Kimberly S.
Verdick
Steven I.
Koszalka
Julie E.
Lawton
Tanya
Schneider
Raymond F.
Sullivan, Jr.
Courtney R.
Taylor
|
Jennifer M.
Buchheim
Jeffrey P.
Regal
|
|
-
|
American
Balanced Fund (File No. 002-10758, File No.
811-00066)
|
|
-
|
The Income
Fund of America, Inc. (File No. 002-33371, File No.
811-01880)
|
|
-
|
International
Growth and Income Fund (File No. 333-152323, File No.
811-22215)
|
|
Vincent P.
Corti
Chad L.
Norton
Patrick F.
Quan
Kimberly S.
Verdick
Steven I.
Koszalka
Julie E.
Lawton
Tanya
Schneider
Raymond F.
Sullivan, Jr.
Courtney R.
Taylor
|
Jennifer M.
Buchheim
|
|
INTERNATIONAL
GROWTH AND
|
CAPITAL
RESEARCH AND
|
|
INCOME
FUND
|
MANAGEMENT
COMPANY
|
|
By
/s/ Paul F.
Roye
|
By
/s/ Timothy D.
Armour
|
|
Paul
F. Roye
|
Timothy D. Armour
|
|
Executive Vice President and
|
President
|
|
Principal Executive Officer
|
|
|
By
/s/ Patrick F.
Quan
|
By
/s/ Michael J.
Downer
|
|
Patrick F. Quan
|
Michael J. Downer
|
|
Secretary
|
Senior
Vice President and Secretary
|
|
American
Funds Distributors, Inc.
|
|
333 South
Hope Street
|
|
a.
|
Category 1 Funds.
On
sales of Class A shares and Class 529-A shares of Funds listed in Category
1 on the attached Schedule A that are accepted by us and for which you are
responsible, you will be paid dealer concessions as
follows:
|
|
Concession
as
|
Sales
Charge
|
|
|
Percentage
of
|
as
Percentage
|
|
|
Purchases
|
Offering
Price
|
of
Offering Price
|
|
Less than
$25,000
|
5.00%
|
5.75%
|
|
$25,000 but
less than $50,000
|
4.25%
|
5.00%
|
|
$50,000 but
less than $100,000
|
3.75%
|
4.50%
|
|
$100,000 but
less than $250,000
|
2.75%
|
3.50%
|
|
$250,000 but
less than $500,000
|
2.00%
|
2.50%
|
|
$500,000 but
less than $750,000
|
1.60%
|
2.00%
|
|
$750,000 but
less than $1,000,000
|
1.20%
|
1.50%
|
|
$1,000,000 or
more
|
See
below
|
None
|
|
|
b.
|
Category 2 Funds.
On
sales of Class A shares and Class 529-A shares of Funds listed in Category
2 on the attached Schedule A that are accepted by us and for which you are
responsible, you will be paid the same dealer concessions indicated above
except as follows:
|
|
Concession
as
|
Sales
Charge
|
|
|
Percentage
of
|
as
Percentage
|
|
|
Purchases
|
Offering
Price
|
of
Offering Price
|
|
Less than
$100,000
|
3.00%
|
3.75%
|
|
Concession
as
|
Sales
Charge
|
|
|
Percentage
of
|
as
Percentage
|
|
|
Purchases
|
Offering
Price
|
of
Offering Price
|
|
Less than
$500,000
|
2.00%
|
2.50%
|
|
$500,000 but
less than $750,000
|
1.60%
|
2.00%
|
|
$750,000 but
less than $1 million
|
1.20%
|
1.50%
|
|
$1 million or
more
|
See
Agreement
|
None
|
|
|
d.
|
Category 4 Funds.
On
sales of Class A shares and Class 529-A shares of the Funds listed in
Category 4 on the attached Schedule A no dealer concessions will be
paid.
|
|
e.
|
If you
initiate and are responsible for sales of Class A shares and Class 529-A
shares, a) amounting to $1 million or more, b) made to employer-sponsored
defined contribution-type retirement plans that qualify to invest at net
asset value under the terms of the Fund Prospectuses, or c) made at net
asset value to endowments and foundations with assets of $50 million or
more, you will be paid a dealer concession of 1.00% on sales to $4
million, plus 0.50% on amounts over $4 million up to $10 million, plus
0.25% on amounts over $10 million. No dealer concessions are paid on any
other sales of shares at net asset value, except that concessions may be
paid to dealers on their sales of fund shares to accounts managed by
affiliates of The Capital Group Companies, Inc. as set forth in this
Agreement. Sales of shares of Washington Mutual Investors Fund
below $1 million made in connection with certain accounts established
before September 1, 1969 are subject to reduced concessions and sales
charges as described in the Washington Mutual Investors Fund
Prospectus. With respect to sales of shares of any tax-exempt
fund, the concession schedule for sales of shares to endowments and
foundations or retirement plans of organizations with assets of $50
million or more is inapplicable. The schedules of sales charges
above apply to single purchases, concurrent purchases of two or more of
the Funds (except those listed in Category 4 on the attached Schedule A),
and purchases made under a statement of intention and pursuant to the
right of accumulation, both of which are described in the
Prospectuses.
|
|
|
a.
|
You agree to
cooperate as requested with programs that we provide to enhance
shareholder service. You also agree
|
|
|
to assume an
active role in providing shareholder services such as processing purchase
and redemption transactions, establishing shareholder accounts, and
providing certain information and assistance with respect to the
Funds. Redemption levels of shareholder accounts assigned to
you will be considered in evaluating your continued participation in this
service fee program.
|
|
|
b.
|
You agree to
support our marketing efforts by granting reasonable requests for visits
to your offices by our wholesalers.
|
|
|
c.
|
You agree to
assign an individual to each shareholder account on your books and to
reassign the account should
|
|
|
that
individual no longer be assigned to the account. You agree to
instruct each such individual to regularly contact shareholders having
accounts so assigned.
|
|
|
d.
|
You agree to
pass through either directly or indirectly to the individual(s) assigned
to such accounts a share of the service fees paid to you pursuant to this
Agreement. You recognize that the service fee is intended to
compensate the individual for providing, and encourage the individual to
continue to provide, service to the account
holder.
|
|
|
e.
|
You
acknowledge that (i) all service fee payments are subject to the
limitations contained in each Fund’s Plan of Distribution and may be
varied or discontinued at any time, (ii) in order to receive a service fee
for a particular quarter,
|
|
|
the fee must
amount to at least $100, and (iii) no service fees will be paid on shares
purchased under the net asset
|
|
|
value
purchase privilege as described in the Funds’ statements of additional
information.
|
|
|
f.
|
On Class A,
Class 529-A, Class B and Class 529-B shares of Funds listed in Category 1,
Category 2, and Category 3 on the attached Schedule A, we will
pay you a quarterly service fee at the following annual rates, based on
the average daily net asset value of Class A, Class 529-A, Class B and
Class 529-B shares, respectively, that have been invested for 12 months
and are held in an account assigned to you at the end of the quarter for
which payment is made:
|
|
Annual
Service Fee Rate
|
|
|
Shares with a
first anniversary of purchase before 7-1-88
*
|
0.15%
|
|
Shares with a
first anniversary of purchase on or after 7-1-88
|
0.25%
|
|
Shares of
state-specific tax-exempt funds
|
0.25%
|
|
|
g.
|
On Class A,
Class 529-A, Class B and Class 529-B shares of Funds listed in Category 4
on the attached Schedule A, we will pay you a quarterly service fee at the
following annual rates, based on the average daily net asset value of
Class A, Class 529-A, Class B and Class 529-B shares, respectively, that
have been invested for 12 months and are held in an account assigned to
you at the end of the quarter for which payment is
made:
|
|
Annual
Service Fee Rate
|
|
|
All
Shares
|
0.15%
|
|
Annual
Service Fee Rate
|
|
|
All
Shares
|
0.15%
|
|
|
a.
|
On sales of
Class C shares and Class 529-C shares of Funds listed in Category 1,
Category 2 and Category 3 on the attached Schedule A that are accepted by
us and for which you are responsible, we will pay
you:
|
|
|
b.
|
In addition,
we will pay you ongoing compensation on a quarterly basis at the annual
rate of 1.00% of the average daily net asset value of Class C shares and
Class 529-C shares of Funds listed in Category 1, Category 2, Category 3
and Category 4 on the attached Schedule A that have been invested for 12
months and are held in an account assigned to you at the end of the
quarter for which payment is made. The payment of this ongoing
compensation is subject to the limitations contained in each Fund’s Plan
of Distribution and may be varied or discontinued at any
time.
|
|
|
a.
|
We will pay
you ongoing compensation on a quarterly basis, at the applicable annual
rate set forth below, of the average daily net asset value of R shares of
Funds listed in Category 1, Category 2, Category 3 and Category 4 on the
attached Schedule A that are held in a retirement plan (Plan) account
assigned to you at the end of the quarter for which payment is
made. The payment of this ongoing compensation is subject to
the limitations contained in each Fund’s Plan of Distribution and may be
varied or discontinued at any time. We expect that you will
maintain one account for each of your Plan customers on the books of the
Funds.
|
|
R
Share Class
|
Annual
Compensation Rate
|
|
Class
R-1
|
1.00%
|
|
Class
R-2
|
0.75%
|
|
Class
R-3
|
0.50%
|
|
Class
R-4
|
0.25%
|
|
Class
R-5
|
No
compensation paid
|
|
Class
R-6
|
No
compensation paid
|
|
|
b.
|
If you hold
Plan accounts in an omnibus account (
i.e.,
multiple Plans in
one account on the books of the Funds), Plans that are added to the
omnibus account after May 15, 2002 may invest only in R shares, and you
must execute an Omnibus Addendum to the Selling Group Agreement, which you
can obtain by calling our Home Office Service Team at 800/421-5475,
extension 8, option 1.
|
|
c.
|
Mutual Funds Sold Through
PlanPremier
. With respect to sales you make through American Funds’
PlanPremier retirement plan recordkeeping program, we will pay you as
servicing dealer ongoing compensation on a quarterly basis, at the
applicable annual rate set forth below, of the average daily net asset
value of Eligible Plan Assets that are held in a Plan assigned to you at
the end of the quarter for which payment is made. For purposes of this
Agreement, Eligible Plan Assets mean total Plan Assets (including assets
invested in American Funds and other mutual funds or investment options
approved for use in PlanPremier), excluding (i) assets held in
self-directed brokerage accounts, (ii) employer stock and (iii) any other
investment option not approved for use in PlanPremier. This
ongoing compensation will accrue on a calendar-quarter
basis. The payment of this compensation is subject to the
limitations contained in each American Funds’ Plan of Distribution and may
be varied or discontinued at any
time.
|
|
Eligible
Plan Assets
1
|
Annual
Compensation Rate
|
|
Eligible Plan
Assets that include American Funds Class R-2 Shares
|
0.65%
|
|
Eligible Plan
Assets that include American Funds Class R-3 Shares
|
0.35%
|
|
Eligible Plan
Assets that include American Funds Class R-4 Shares
|
0.20%
|
|
Eligible Plan
Assets that include American Funds Class R-5 Shares
|
No
compensation paid
|
|
Eligible Plan
Assets that include American Funds Class R-6 Shares
|
No
compensation paid
|
|
|
a.
|
You represent
that (a) you are a properly registered or licensed broker or dealer under
applicable federal and state securities laws and regulations and are
complying with and will continue to comply with all applicable federal and
state laws, rules and regulations, (b) you are a member of FINRA, (c) your
membership with FINRA is not currently suspended or terminated and (d) to
the extent you offer any Class 529 shares, you are properly registered to
offer such shares. You agree to notify us immediately in writing if any of
the foregoing representations ceases to be true to a material
extent.
|
|
|
b.
|
We represent
that (a) we are acting as an underwriter within the meaning of the
applicable rules of the NASD and are complying with and will continue to
comply with all applicable federal and state laws, rules and regulations,
(b) we are a member of FINRA and (c) our membership with FINRA is not
currently suspended or terminated. We agree to notify you
immediately in writing if any of the foregoing representations ceases to
be true to a material extent.
|
|
|
c
.
|
Each party to
this Agreement represents that it will comply with all applicable laws,
including applicable state privacy laws. Each party agrees to notify the
other party immediately in writing if the foregoing representation ceases
to be true to a material extent.
|
|
|
a.
|
Payments of
12b-1 fees to you for payment to your financial advisers in respect of
American Funds Money Market Fund are currently
suspended. Payments may resume at a future date, if the fund’s
investment adviser determines, in its sole discretion, that the yield on
the fund’s portfolio securities supports such
payments.
|
|
|
b.
|
We reserve
the right not to pay any compensation more than six (6) months in arrears
in respect of accounts and/or assets that were not timely identified as
eligible for compensation pursuant to this
Agreement.
|
|
A
|
B
|
C
|
529-A
|
529-B
|
529-C
|
529-E
|
R-1
|
R-2
|
R-3
|
R-4
|
R-5
|
R-6
|
|
|
Category
1
|
|||||||||||||
|
AMCAP
Fund
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
American
Balanced Fund
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
American
Funds Target Date Retirement Series
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
l
|
l
|
l
|
l
|
l
|
l
|
|
American
Mutual Fund
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Capital
Income Builder
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Capital World
Growth and Income Fund
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
EuroPacific
Growth Fund
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Fundamental
Investors
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Growth Fund
of America
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Income Fund
of America
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
International
Growth and Income Fund
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Investment
Company of America
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
New Economy
Fund
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
New
Perspective Fund
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
New World
Fund
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
SMALLCAP
World Fund
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Washington
Mutual Investors Fund
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Category
2
|
|||||||||||||
|
American
High-Income Trust
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
American
High-Income Municipal Bond Fund
|
l
|
e
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
|
Bond Fund of
America
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Capital World
Bond Fund
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Tax-Exempt
Bond Fund of America
|
l
|
e
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
|
Tax-Exempt
Fund of California
|
l
|
e
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
|
Tax-Exempt
Fund of Maryland
|
l
|
e
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
|
Tax-Exempt
Fund of Virginia
|
l
|
e
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
|
U.S.
Government Securities Fund
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Category
3
|
|||||||||||||
|
American
Funds Short-Term Tax-Exempt Bond Fund
|
l
|
na
|
e
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
|
Intermediate
Bond Fund of America
|
l
|
e
|
e
|
l
|
e
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Limited Term
Tax-Exempt Bond Fund of America
|
l
|
e
|
e
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
|
Short-Term
Bond Fund of America
|
l
|
e
|
e
|
l
|
e
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Category
4
|
|||||||||||||
|
American
Funds Money Market Fund
|
l
|
e
|
e
|
l
|
e
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
l
|
Share
class is available
|
|
|
e
|
Share
class is available for exchanges only
|
|
|
na
|
Share
class is not available
|
|
American
Funds Distributors, Inc.
|
|
333 South
Hope Street
|
|
Los Angeles,
California 90071
|
|
|
a.
|
In placing
orders for the purchase and sale of shares of the Funds, you will be
acting as agent for your customers. We shall execute
transactions for each of your customers only upon your authorization, at
the regular public price currently determined by the respective Funds in
the manner described in their offering Prospectuses. The offering
Prospectuses and this Agreement set forth the terms applicable to sales of
shares of the Funds through you and all other representations or documents
are subordinate. You understand
that
|
|
(i)
|
Class 529
shares of the Funds are available only as underlying investments through
the Program,
|
|
(ii)
|
Class F
shares are available only pursuant to a Bank/Trust Company Class F Share
Participation Agreement,
|
|
(iii)
|
Employer-sponsored
retirement plans that are not currently invested in Class A shares and
that wish to invest without a sales charge are not eligible to purchase
Class A shares. Such plans may invest only in Class R
shares,
|
|
(iv)
|
You may not
make available to your clients (Client), Class B, Class C, Class 529-B or
Class 529-C shares until you have demonstrated to our affiliate, American
Funds Service Company, that you have the appropriate systems in place to
assess the contingent deferred sales charge associated with those share
classes, and
|
|
(v)
|
Unless
otherwise permitted under this Agreement or any other Agreement with us,
you may not maintain any non-retirement accounts for your Clients in an
omnibus account (
i.e.,
multiple Client
accounts in one account on the books of the
Funds).
|
|
|
b.
|
If your firm
is providing trading and custodial services to other banks and the Client
purchasing Shares is a client of another bank, you may not facilitate
those transactions unless you (i) disclose the identity of the underlying
bank representing that client, and (ii) have verified with us that the
introducing bank has executed an agreement with us. You shall
also disclose the identity of any introducing intermediary (for example,
broker, consultant, or registered investment adviser) involved in any
transaction that you facilitate. The required disclosures shall
be made in such format as we mutually
agree.
|
|
|
a.
|
Category 1 Funds
: On
each purchase order for Class A shares and Class 529-A shares of Funds
listed in Category 1 on the attached Schedule A that is accepted by us and
for which you are responsible, you will be paid compensation as
follows:
|
|
Compensation
as
|
Sales
Charge
|
|
|
Percentage
of
|
as
Percentage
|
|
|
Purchases
|
Offering
Price
|
of
Offering Price
|
|
Less than
$25,000
|
5.00%
|
5.75%
|
|
$25,000 but
less than $50,000
|
4.25%
|
5.00%
|
|
$50,000 but
less than $100,000
|
3.75%
|
4.50%
|
|
$100,000 but
less than $250,000
|
2.75%
|
3.50%
|
|
$250,000 but
less than $500,000
|
2.00%
|
2.50%
|
|
$500,000 but
less than $750,000
|
1.60%
|
2.00%
|
|
$750,000 but
less than $1,000,000
|
1.20%
|
1.50%
|
|
$1,000,000 or
more
|
See
below
|
None
|
|
|
b.
|
Category 2 Funds
: On
each purchase order for Class A shares and Class 529-A shares of Funds
listed in Category 2 on the attached Schedule A that is accepted by us and
for which you are responsible, you will be paid the same compensation
indicated above except as follows:
|
|
Compensation
as
|
Sales
Charge
|
|
|
Percentage
of
|
as
Percentage
|
|
|
Purchases
|
Offering
Price
|
of
Offering Price
|
|
Less than
$100,000
|
3.00%
|
3.75%
|
|
|
d.
|
Category 3 Funds
. On
each purchase order for Class A shares and Class 529-A shares of Funds
listed in Category 3 on the attached Schedule A, that are accepted by
us and for which you are responsible, you will be paid compensation as
follows:
|
|
Compensation
as
|
Sales
Charge
|
|
|
Percentage
of
|
as
Percentage
|
|
|
Purchases
|
Offering
Price
|
of
Offering Price
|
|
Less than
$500,000
|
2.00%
|
2.50%
|
|
$500,000 but
less than $750,000
|
1.60%
|
2.00%
|
|
$750,000 but
less than $1 million
|
1.20%
|
1.50%
|
|
$1 million or
more
|
See
Agreement
|
None
|
|
|
d.
|
Category 4
Funds
. On sales of Class A shares and Class 529-A shares
of Funds listed in Category 4 on the attached Schedule A, no compensation
will be paid.
|
|
|
e.
|
For purchase
orders of Class A shares and Class 529-A shares for which you are
responsible, a) amounting to $1 million or more, b) made at net asset
value to endowments and foundations with assets of $50 million or more,
you will be paid compensation of 1.00% on sales to $4 million, plus 0.50%
on amounts over $4 million up to $10 million, plus 0.25% on amounts over
$10 million. No compensation is paid on any other sales of shares at net
asset value, except that compensation may be paid on sales of fund shares
to accounts managed by affiliates of The Capital Group Companies, Inc. as
set forth in this Agreement. Sales of shares of Washington
Mutual Investors Fund below $1 million made in connection with certain
accounts established before September 1, 1969 are subject to reduced
compensation and sales charges as described in the Washington Mutual
Investors Fund Prospectus. With respect to sales of shares of
any tax-exempt fund, the compensation schedule for sales of shares to
endowments and foundations or retirement plans of organizations with
assets of $50 million or more is inapplicable. The schedules of
sales charges above apply to single purchases, concurrent purchases of two
or more of the Funds (except those listed in Category 4 on the attached
Schedule A), and purchases made under a statement of intention and
pursuant to the right of accumulation, both of which are described in the
Prospectuses.
|
|
|
a.
|
You agree to
cooperate as requested with programs that we provide to enhance
shareholder service. You also agree
|
|
|
to assume an
active role in providing shareholder services such as processing purchase
and redemption transactions, establishing shareholder accounts, and
providing certain information and assistance with respect to the
Funds. Redemption levels of shareholder accounts assigned to
you will be considered in evaluating your continued participation in this
service fee program.
|
|
|
b.
|
You agree to
support our marketing efforts by granting reasonable requests for visits
to your offices by our wholesalers.
|
|
|
c.
|
You agree to
assign an individual to each shareholder account on your books and to
reassign the account should
|
|
|
that
individual no longer be assigned to the account. You agree to
instruct each such individual to regularly contact shareholders having
accounts so assigned.
|
|
|
d.
|
You agree to
pass through either directly or indirectly to the individual(s) assigned
to such accounts a share of the service fees paid to you pursuant to this
Agreement. You recognize that the service fee is intended to
compensate the individual for providing, and encourage the individual to
continue to provide, service to the account
holder.
|
|
|
e.
|
You
acknowledge that (i) all service fee payments are subject to the
limitations contained in each Fund’s Plan of Distribution and may be
varied or discontinued at any time; and (ii) no service fees
will be paid on shares purchased under the net asset value purchase
privilege as described in the Funds’ statements of additional
information.
|
|
|
f.
|
On Class A,
Class 529-A, Class B and Class 529-B shares of Funds listed in Category 1,
Category 2, and Category 3 on the attached Schedule A, we will pay you a
quarterly service fee at the following annual rates, based on the average
daily net asset value of Class A, Class 529-A, Class B and Class 529-B
shares, respectively, that have been invested for 12 months and are held
in an account assigned to you at the end of the quarter for which payment
is made:
|
|
Annual
Service Fee Rate
|
|
|
Shares with a
first anniversary of purchase before 7-1-88
*
|
0.15%
|
|
Shares with a
first anniversary of purchase on or after 7-1-88
|
0.25%
|
|
Shares of
state-specific tax-exempt funds
|
0.25%
|
|
|
g.
|
On Class A,
Class 529-A, Class B and Class 529-B shares of Funds listed in Category 4
on the attached Schedule A, we will pay you a quarterly service fee at the
following annual rates, based on the average daily net asset value of
Class A, Class 529-A, Class B and Class 529-B shares, respectively, that
have been invested for 12 months and are held in an account assigned to
you at the end of the quarter for which payment is
made:
|
|
Annual
Service Fee Rate
|
|
|
All
Shares
|
0.15%
|
|
Annual
Service Fee Rate
|
|
|
All
Shares
|
0.15%
|
|
|
a.
|
On purchase
orders for Class C shares and Class 529-C shares of Funds listed in
Category 1, Category 2 and Category 3 on the attached Schedule A that are
accepted by us and for which you are responsible, we will pay
you:
|
|
|
b.
|
In addition,
we will pay you ongoing compensation on a quarterly basis at the annual
rate of 1.00% of the average daily net asset value of Class C shares and
Class 529-C shares of Funds listed in Category 1, Category 2, Category 3,
and Category 4 on the attached Schedule A that have been invested for 12
months and are held in an account assigned to you at the end of the
quarter for which payment is made. The payment of this ongoing
compensation is subject to the limitations contained in each Fund’s Plan
of Distribution and may be varied or discontinued at any
time.
|
|
|
a.
|
We will pay
you ongoing compensation on a quarterly basis, at the applicable annual
rate set forth below, of the average daily net asset value of R shares of
Funds listed in Category 1, Category 2, Category 3 and Category 4
on the attached
Schedule A that are held in an employer-sponsored retirement plan (Plan)
account assigned to you at the end of the quarter for which payment is
made. The payment of this ongoing compensation is subject to
the limitations contained in each Fund’s Plan of Distribution and may be
varied or discontinued at any time. We expect that you will
maintain one account for each of your Plan customers on the books of the
Funds.
|
|
R
Share Class
|
Annual
Compensation Rate
|
|
Class
R-1
|
1.00%
|
|
Class
R-2
|
0.75%
|
|
Class
R-3
|
0.50%
|
|
Class
R-4
|
0.25%
|
|
Class
R-5
|
No
compensation paid
|
|
Class
R-6
|
No
compensation paid
|
|
b.
|
If you hold
Plan accounts in an omnibus account (
i.e.,
multiple Plans in
one account on the books of the Funds), the Plans may invest only in R
shares, and you may be required to execute an Omnibus Addendum to the
Bank/Trust Selling Group Agreement, which you can obtain by calling our
Home Office Service Team at 800/421-5475, extension
8.
|
|
c.
|
Mutual Funds Sold Through
PlanPremier
. With respect to sales you make through American Funds’
PlanPremier retirement plan recordkeeping program, we will pay you as
servicing dealer ongoing compensation on a quarterly basis, at the
applicable annual rate set forth below, of the average daily net asset
value of Eligible Plan Assets that are held in a Plan assigned to you at
the end of the quarter for which payment is made. For purposes of this
Agreement, Eligible Plan Assets mean total Plan Assets (including assets
invested in American Funds and other mutual funds or investment options
approved for use in PlanPremier), excluding (i) assets held in
self-directed brokerage accounts, (ii) employer stock and (iii) any other
investment option not approved for use in PlanPremier. This
ongoing compensation will accrue on a calendar-quarter
basis. The payment of this compensation is subject to the
limitations contained in each American Funds’ Plan of Distribution and may
be varied or discontinued at any
time.
|
|
Eligible
Plan Assets
1
|
Annual
Compensation Rate
|
|
Eligible Plan
Assets that include American Funds Class R-2 Shares
|
0.65%
|
|
Eligible Plan
Assets that include American Funds Class R-3 Shares
|
0.35%
|
|
Eligible Plan
Assets that include American Funds Class R-4 Shares
|
0.20%
|
|
Eligible Plan
Assets that include American Funds Class R-5 Shares
|
No
compensation paid
|
|
Eligible Plan
Assets that include American Funds Class R-6 Shares
|
No
compensation paid
|
|
|
a.
|
You represent
that (1) you are (a) a properly registered or licensed broker or dealer
under applicable federal and state securities laws and regulations, a
member of the Financial Industry Regulatory Authority (FINRA), and your
membership with FINRA is not currently suspended or terminated or (b) a
"bank" as defined in Section 3(a)(6) of the Securities Exchange Act of
1934 (or other financial institution) and not otherwise required to
register as a broker or dealer under such Act or any state laws; (2) you
are complying with and will continue to comply with all applicable federal
and state laws, rules and regulations; (3) you have received a legal
opinion that your receipt of 12b-1 distribution fees will not violate any
applicable federal or state laws or regulations, and (4) to the extent you
offer any Class 529 shares, you are permitted by applicable law to offer
such shares. You agree to notify us immediately in writing if
any of the foregoing representations ceases to be true to a material
extent. You also agree that, if you are a bank or other financial
institution as set forth above, you will comply with the applicable rules
of the NASD, that you will maintain adequate records with respect to your
customers and their transactions, and that such transactions will be
without recourse against you by your customers. We recognize
that, in addition to applicable provisions of state and federal securities
laws, you may be subject to the provisions of other laws governing, among
other things, the conduct of activities by federal- and state-chartered
and supervised financial institutions and their affiliated
organizations. Because you will be the only entity having a
direct relationship with the customer in connection with securities
purchases hereunder, you will be responsible in that relationship for
insuring compliance with all applicable federal and state laws, rules and
regulations relating to securities purchases
hereunder.
|
|
b.
|
We represent
that (1) we are acting as an underwriter within the meaning of the
applicable rules of the NASD and are complying with and will continue to
comply with all applicable federal and state laws, rules and regulations,
(2) we are a member of FINRA and (3) our membership with FINRA is not
currently suspended or terminated. We agree to notify you
immediately in writing if any of the foregoing representations ceases to
be true to a material extent.
|
|
|
c.
|
Each party to
this Agreement represents that it will comply with all applicable laws,
including applicable state privacy laws. Each party agrees to notify the
other party immediately in writing if the foregoing representation ceases
to be true to a material extent.
|
|
|
a.
|
Payments of
12b-1 fees to you for payment to your financial advisers in respect of
American Funds Money Market Fund are currently
suspended. Payments may resume at a future date, if the fund’s
investment adviser determines, in its sole discretion, that the yield on
the fund’s portfolio securities supports such
payments.
|
|
|
b.
|
We reserve
the right not to pay any compensation more than six (6) months in arrears
in respect of accounts and/or assets that were not timely identified as
eligible for compensation pursuant to this
Agreement.
|
|
A
|
B
|
C
|
529-A
|
529-B
|
529-C
|
529-E
|
R-1
|
R-2
|
R-3
|
R-4
|
R-5
|
R-6
|
|
|
Category
1
|
|||||||||||||
|
AMCAP
Fund
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
American
Balanced Fund
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
American
Funds Target Date Retirement Series
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
l
|
l
|
l
|
l
|
l
|
l
|
|
American
Mutual Fund
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Capital
Income Builder
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Capital World
Growth and Income Fund
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
EuroPacific
Growth Fund
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Fundamental
Investors
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Growth Fund
of America
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Income Fund
of America
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
International
Growth and Income Fund
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Investment
Company of America
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
New Economy
Fund
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
New
Perspective Fund
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
New World
Fund
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
SMALLCAP
World Fund
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Washington
Mutual Investors Fund
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Category
2
|
|||||||||||||
|
American
High-Income Trust
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
American
High-Income Municipal Bond Fund
|
l
|
e
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
|
Bond Fund of
America
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Capital World
Bond Fund
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Tax-Exempt
Bond Fund of America
|
l
|
e
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
|
Tax-Exempt
Fund of California
|
l
|
e
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
|
Tax-Exempt
Fund of Maryland
|
l
|
e
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
|
Tax-Exempt
Fund of Virginia
|
l
|
e
|
l
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
|
U.S.
Government Securities Fund
|
l
|
e
|
l
|
l
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Category
3
|
|||||||||||||
|
American
Funds Short-Term Tax-Exempt Bond Fund
|
l
|
e
|
e
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
|
Intermediate
Bond Fund of America
|
l
|
e
|
e
|
l
|
e
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Limited Term
Tax-Exempt Bond Fund of America
|
l
|
e
|
e
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
na
|
|
Short-Term
Bond Fund of America
|
l
|
e
|
e
|
l
|
e
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
Category
4
|
|||||||||||||
|
American
Funds Money Market Fund
|
l
|
e
|
e
|
l
|
e
|
e
|
l
|
l
|
l
|
l
|
l
|
l
|
l
|
|
l
|
Share
class is available
|
|
|
e
|
Share
class is available for exchanges only
|
|
|
na
|
Share
class is not available
|
|
[logo
– American Funds 9r)]
|
|
American
Funds Distributors, Inc.
|
|
333 South
Hope Street
|
|
|
a.
|
In
consideration of your making Class F-1 shares of the Funds available
through the Program, we will pay you compensation on a quarterly basis at
the annual rate of 0.25% of the average daily net asset value of Class F-1
shares of Funds listed on Schedule A that are held in an account assigned
to you. Such fee shall be paid within 30 days following the end of the
quarter for which such fees are payable (currently the quarters are
February, May, August and November). In order to receive a service fee for
a particular quarter, the fee must amount to at least $10. The payment of
this compensation is subject to the limitations contained in each Fund’s
Plan of Distribution and may be varied or discontinued at any time. No
compensation shall be paid under this Agreement on Class F-2 shares of the
Funds.
|
|
|
b.
|
If you offer
American Funds Money Market Fund, you acknowledge and agree that we may
discontinue making payments of 12b-1 fees in respect of American Funds
Money Market Fund if the fund’s investment adviser determines, in its sole
discretion, that the yield on the fund’s portfolio securities does not
support such payments. We currently intend to make these payments under
this Agreement.
|
|
|
c.
|
You agree
that if you are assigned to an account holding Class F-1 shares of the
Funds that were converted from Class C shares of the Funds and those Class
F-1 shares are held outside of a Program, you will pass through a portion
of the fee paid under this section to the financial adviser associated
with the account.
|
|
|
b.
|
You shall
place orders for the purchase and redemption of Shares as described in the
Administrative Services Agreement with Capital Research and Management
Company.
|
|
|
a.
|
You represent
that you are (a)(i) a properly registered or licensed broker or dealer
under applicable federal and state securities laws and regulations, (ii) a
member of the Financial Industry Regulatory Authority (FINRA)
and (iii) not currently under an order suspending or terminating your
membership with FINRA, or (b) an entity that is affiliated with a
FINRA-registered broker-dealer firm. You agree to notify us immediately if
any of the foregoing representations is no longer true. (The provisions of
this section do not apply to a broker or dealer located in a foreign
country and doing business outside the jurisdiction of the United
States.)
|
|
|
b.
|
Each party to
this Agreement represents that it will comply with all applicable laws,
including applicable state privacy laws. Each party agrees to notify the
other party immediately in writing if the foregoing representation ceases
to be true to a material extent.
|
|
|
We reserve
the right not to pay any compensation more than six (6) months in arrears
in respect of accounts and/or
assets
|
|
|
that were not
timely identified as eligible for compensation pursuant to this
Agreement.
|
|
|
AMCAP
Fund
|
|
|
American
Balanced Fund
|
|
|
American
Funds Money Market Fund
|
|
|
American
Funds Short-Term Tax Exempt Bond
Fund
|
|
|
American
High-Income Municipal Bond Fund
|
|
|
American
High-Income Trust
|
|
|
American
Mutual Fund
|
|
|
Bond Fund of
America
|
|
|
Capital
Income Builder
|
|
|
Capital World
Growth and Income Fund
|
|
|
Capital World
Bond Fund
|
|
|
EuroPacific
Growth Fund
|
|
|
Fundamental
Investors
|
|
|
Growth Fund
of America
|
|
|
Income Fund
of America
|
|
|
Investment
Company of America
|
|
|
Intermediate
Bond Fund of America
|
|
|
International
Growth and Income Fund
|
|
|
Limited Term
Tax-Exempt Bond Fund of America
|
|
|
New Economy
Fund
|
|
|
New
Perspective Fund
|
|
|
New World
Fund
|
|
|
Short-Term
Bond Fund of America
|
|
|
SMALLCAP
World Fund
|
|
|
Tax-Exempt
Bond Fund of America
|
|
|
Tax-Exempt
Fund of California
|
|
|
Tax-Exempt
Fund of Maryland
|
|
|
Tax-Exempt
Fund of Virginia
|
|
|
U.S.
Government Securities Fund
|
|
|
Washington
Mutual Investors Fund
|
|
American
Funds Distributors, Inc.
|
|
333 South
Hope Street
|
|
Los Angeles,
California 90071
|
|
Telephone
800/421-5475, ext. 8
|
|
1.
|
Authorization
|
|
|
a.
|
You may offer
to non-retirement plan Clients that are participating in the Program Class
F shares of the Funds only at the regular public price currently
determined by the respective Funds in the manner described in their
offering Prospectuses. The offering Prospectuses and this
Agreement set forth the terms applicable to sales of shares of the Funds
through you and all other representations or documents are
subordinate. In placing orders for the purchase and sale of
shares of the Funds, you will be acting as agent for your
customers. We shall execute transactions for each of your
customers only upon your authorization. If you will be making
the Funds available to retirement plan Clients, you may not use the Class
F shares, but rather only the Class R shares may be used. The
terms of your American Funds Bank/Trust Company Selling Group Agreement
will control that arrangement.
|
|
|
b.
|
If your firm
is providing trading and custodial services to other banks and the Client
purchasing Shares is a client of another bank, you may not facilitate
those transactions unless you (i) disclose the identity of the underlying
bank representing that client, and (ii) have verified with us that the
introducing bank has executed an agreement with us. You shall
also disclose the identity of any introducing intermediary (for example,
broker, consultant, or registered investment adviser) involved in any
transaction that you facilitate. The required disclosures shall
be made in such format as we mutually
agree.
|
|
2.
|
Compensation
for Sales of Fund Shares
|
|
|
a.
|
In
consideration of your making Class F-1 shares of the Funds available
through the Program, we will pay you compensation from the Funds’ 12b-1
Plans on a quarterly basis at the annual rate of 0.25% of the average
daily net asset value of Class F-1 shares of Funds listed on Schedule A
that are held in an account assigned to you. The payment of
this compensation is subject to the limitations contained in each Fund’s
Plan of Distribution and may be varied or discontinued at any
time. No compensation shall be paid under this Agreement on
Class F-2 shares of the Funds.
|
|
|
b.
|
If you offer
American Funds Money Market Fund, you acknowledge and agree that we may
discontinue making payments of 12b-1 fees in respect of American Funds
Money Market Fund if the fund’s investment adviser determines, in its sole
discretion, that the yield on the fund’s portfolio securities does not
support such payments. We currently intend to make these payments under
this Agreement.
|
|
|
c.
|
You represent
that you have received a legal opinion that your receipt of 12b-1
distribution fees will not violate any applicable federal or state laws or
regulations.
|
|
3.
|
Compensation
for Administrative Services
|
|
4.
|
Order
Processing
|
|
5.
|
Timeliness
of Submitting Orders
|
|
6.
|
Repurchase
of Shares
|
|
7.
|
Processing
Redemption Requests
|
|
8.
|
Prospectuses
and Marketing Materials
|
|
9.
|
Effect
of Prospectus
|
|
10.
|
Relationship
of Parties
|
|
11.
|
State
Securities Qualification
|
|
12.
|
Representations
|
|
|
a.
|
You represent
that (1) you are (a) a properly registered or licensed broker or dealer
under applicable federal and state securities laws and regulations, a
member of the Financial Industry Regulatory Authority (FINRA), and your
membership with FINRA is not currently suspended or terminated or (b) a
"bank" as defined in Section 3(a)(6) of the Securities Exchange Act of
1934 (or other financial institution) and not otherwise required to
register as a broker or dealer under such Act or any state laws; and (2)
to the extent you offer any Class 529 shares, you are permitted by
applicable law to offer such shares. You agree to notify us
immediately in writing if this representation ceases to be
true. You also agree that, if you are a bank or other financial
institution as set forth above, you will comply with the applicable rules
of the NASD, that you will maintain adequate records with respect to your
customers and their transactions, and that such transactions will be
without recourse against you by your customers. We recognize
that, in addition to applicable provisions of state and federal securities
laws, you may be subject to the provisions of other laws governing, among
other things, the conduct of activities by federal and state-chartered and
supervised financial institutions and their affiliated
organizations. Because you will be the only entity having a
direct relationship with the customer in connection with securities
purchases hereunder, you will be responsible in that relationship for
insuring compliance with all applicable federal and state laws and
regulations relating to securities purchases
hereunder.
|
|
|
b.
|
Each party to
this Agreement represents that it will comply with all applicable laws,
including applicable state privacy laws. Each party agrees to notify the
other party immediately in writing if the foregoing representation ceases
to be true to a material extent.
|
|
13.
|
Confidentiality
|
|
14.
|
Termination
|
|
15.
|
Notices
|
|
16.
|
Miscellaneous
|
|
|
a.
|
If you offer
American Funds Money Market Fund, you acknowledge and agree that we may
discontinue making payments of 12b-1 fees in respect of American Funds
Money Market Fund if the fund’s investment adviser determines, in its sole
discretion, that the yield on the fund’s portfolio securities does not
support such payments. We currently intend to make these
payments under this Agreement.
|
|
|
b.
|
We reserve
the right not to pay any compensation more than six (6) months in arrears
in respect of accounts and/or assets that were not timely identified as
eligible for compensation pursuant to this
Agreement.
|
|
|
AMCAP
Fund
|
|
|
American
Balanced Fund
|
|
|
American
Funds Money Market Fund
|
|
|
American
Funds Short-Term Tax Exempt Bond
Fund
|
|
|
American
High-Income Municipal Bond Fund
|
|
|
American
High-Income Trust
|
|
|
American
Mutual Fund
|
|
|
Bond Fund of
America
|
|
|
Capital
Income Builder
|
|
|
Capital World
Growth and Income Fund
|
|
|
Capital World
Bond Fund
|
|
|
EuroPacific
Growth Fund
|
|
|
Fundamental
Investors
|
|
|
Growth Fund
of America
|
|
|
Income Fund
of America
|
|
|
Investment
Company of America
|
|
|
Intermediate
Bond Fund of America
|
|
|
International
Growth and Income Fund
|
|
|
Limited Term
Tax-Exempt Bond Fund of America
|
|
|
New Economy
Fund
|
|
|
New
Perspective Fund
|
|
|
New World
Fund
|
|
|
Short-Term
Bond Fund of America
|
|
|
SMALLCAP
World Fund
|
|
|
Tax-Exempt
Bond Fund of America
|
|
|
Tax-Exempt
Fund of California
|
|
|
Tax-Exempt
Fund of Maryland
|
|
|
Tax-Exempt
Fund of Virginia
|
|
|
U.S.
Government Securities Fund
|
|
|
Washington
Mutual Investors Fund
|
|
Share
Class
|
Distribution
Fee
|
Service
Fee
|
|
Class
R-1
|
0.75%
|
0.25%
|
|
Class
R-2
|
0.50%
|
0.25%
|
|
Class
R-3
|
0.25%
|
0.25%
|
|
Class
R-4
|
0.00%
|
0.25%
|
|
Class
R-5
|
0.00%
|
0.00%
|
|
Class
R-6
|
0.00%
|
0.00%
|
|
AMERICAN
FUNDS DISTRIBUTORS, INC.
|
[FUND]
|
|
By:
|
By:
|
|
Kevin G.
Clifford
|
|
|
President
|
Executive
Vice President and
|
|
Principal
Executive Officer
|
|
|
By:
|
By:
|
|
David M.
Givner
|
|
|
Secretary
|
Secretary
|
|
A=
|
The aggregate
Net Asset Value of all Class B shares of a Fund attributed to the
Distributor or such Successor Distributor, as the case may be, and
outstanding at the beginning of such calendar
month
|
|
B=
|
The aggregate
Net Asset Value of all Class B shares of a Fund at the beginning of such
calendar month
|
|
C=
|
The aggregate
Net Asset Value of all Class B shares of a Fund attributed to the
Distributor or such Successor Distributor, as the case may be, and
outstanding at the end of such calendar
month
|
|
D=
|
The aggregate
Net Asset Value of all Class B shares of a Fund at the end of such
calendar month
|
|
A=
|
Average Net
Asset Value of all such Class B shares of a Fund for such calendar month
attributed to the Distributor or a Successor Distributor, as the case may
be
|
|
B=
|
Total average
Net Asset Value of all such Class B shares of a Fund for such calendar
month
|
|
A=
|
The aggregate
Net Asset Value of all Class C shares of a Fund attributed to the
Distributor or such Successor Distributor, as the case may be, and
outstanding at the beginning of such calendar
month
|
|
B=
|
The aggregate
Net Asset Value of all Class C shares of a Fund at the beginning of such
calendar month
|
|
C=
|
The aggregate
Net Asset Value of all Class C shares of a Fund attributed to the
Distributor or such Successor Distributor, as the case may be, and
outstanding at the end of such calendar
month
|
|
D=
|
The aggregate
Net Asset Value of all Class C shares of a Fund at the end of such
calendar month
|
|
A=
|
Average Net
Asset Value of all such Class C shares of a Fund for such calendar month
attributed to the Distributor or a Successor Distributor, as the case may
be
|
|
|
B=
|
Total average
Net Asset Value of all such Class C shares of a Fund for such calendar
month
|
|
A=
|
The aggregate
Net Asset Value of all Class 529-B shares of a Fund attributed to the
Distributor or such Successor Distributor, as the case may be, and
outstanding at the beginning of such calendar
month
|
|
B=
|
The aggregate
Net Asset Value of all Class 529-B shares of a Fund at the beginning of
such calendar month
|
|
C=
|
The aggregate
Net Asset Value of all Class 529-B shares of a Fund attributed to the
Distributor or such Successor Distributor, as the case may be, and
outstanding at the end of such calendar
month
|
|
D=
|
The aggregate
Net Asset Value of all Class 529-B shares of a Fund at the end of such
calendar month
|
|
A=
|
Average Net
Asset Value of all such Class 529-B shares of a Fund for such calendar
month attributed to the Distributor or a Successor Distributor, as the
case may be
|
|
B=
|
Total average
Net Asset Value of all such Class 529-B shares of a Fund for such calendar
month
|
|
A=
|
The aggregate
Net Asset Value of all Class 529-C shares of a Fund attributed to the
Distributor or such Successor Distributor, as the case may be, and
outstanding at the beginning of such calendar
month
|
|
B=
|
The aggregate
Net Asset Value of all Class 529-C shares of a Fund at the beginning of
such calendar month
|
|
C=
|
The aggregate
Net Asset Value of all Class 529-C shares of a Fund attributed to the
Distributor or such Successor Distributor, as the case may be, and
outstanding at the end of such calendar
month
|
|
D=
|
The aggregate
Net Asset Value of all Class 529-C shares of a Fund at the end of such
calendar month
|
|
A=
|
Average Net
Asset Value of all such Class 529-C shares of a Fund for such calendar
month attributed to the Distributor or a Successor Distributor, as the
case may be
|
|
B=
|
Total average
Net Asset Value of all such Class 529-C shares of a Fund for such calendar
month
|
|
Paragraph Title
|
Page No
|
|
1. Definitions
|
1
|
|
2. Introduction
|
4
|
|
3. Plan
Oversight; Administration and Amendment
|
4
|
|
3.1. Plan
Oversight and Operation
|
4
|
|
3.2. Plan
Interpretation and Administration
|
4
|
|
3.3. Plan
Amendment
|
5
|
|
3.4. Plan
Termination
|
5
|
|
4. Election
to Defer Payments
|
5
|
|
4.1. Election
to Defer
|
5
|
|
4.2. Current
Independent Board Members
|
5
|
|
4.2.a. Newly
Elected or Appointed Independent Board Members
|
5
|
|
4.3. Modification
or Revocation of Election to Defer
|
5
|
|
5. Beneficiary
Designation
|
6
|
|
6. Deferred
Payment Account
|
6
|
|
6.1. Crediting
Amounts
|
6
|
|
6.2. Change
of Investment Designation
|
6
|
|
6.3. Exchange
Requests
|
6
|
|
6.4. Plan
Participants Serving on Money Market Fund Boards
|
7
|
|
7. Timing
and Manner of Payments
|
7
|
|
7.1. Timing
of Payments
|
7
|
|
7.2. Manner
of Payment – Lump Sum
|
7
|
|
7.3. Alternative
Payment Methods
|
7
|
|
7.4. Death
of Plan Participant
|
8
|
|
7.5. Disability
of Plan Participant
|
8
|
|
7.6. Unforeseeable
Emergency
|
8
|
|
7.7. Modification
or Revocation for Post-2004 Deferrals
|
8
|
|
7.7.a. Special
Transition Rule
|
8
|
|
7.8. Modification
or Revocation for Pre-2005 Deferrals
|
9
|
|
8. Miscellaneous
|
9
|
|
Signature
Pages
|
|
|
Exhibits
A through D
|
|
|
|
|
(i)
|
With respect
to a retainer deferred by a Plan Participant, the Date of Crediting is the
first day of the period to which the retainer
relates.
|
|
(ii)
|
With respect
to a meeting fee deferred by a Plan Participant, the Date of Crediting is
the date of the meeting.
|
|
(iii)
|
If any Date
of Crediting falls on a Saturday, Sunday or federal holiday, the Date of
Crediting will be the first business day following such Saturday, Sunday
or federal holiday.
|
|
(i)
|
The date
specified in Exhibit B by the Plan Participant that is objectively
determinable at the time compensation is deferred under the Plan and is at
least twenty-four months past the date of the first deferral election made
by the Plan Participant; or
|
|
(ii)
|
The date on
which the Plan Participant is no longer an Independent Board Member of any
Fund; or
|
|
(iii)
|
The date the
Plan Participant dies; or
|
|
(iv)
|
The date the
Administrator receives notification that the Plan Participant is Disabled;
or
|
|
(v)
|
The date the
Committee determines that the Plan Participant has an Unforeseeable
Emergency; or
|
|
(vi)
|
For pre-2005
deferrals only, a distribution event permissible under the terms of the
Plan in effect on January 1, 2004.
|
|
AMCAP
Fund, Inc.:
Claudia P.
Huntington, President & Principal Executive Officer
Vincent P.
Corti, Secretary
American
Balanced Fund, Inc.:
Robert G.
O’Donnell, Vice Chairman & Principal Executive Officer
Patrick F.
Quan, Secretary
The
American Funds Income Series:
John H. Smet,
President & Principal Executive Officer
Kimberly S.
Verdick, Secretary
American
Funds Insurance Series:
James K.
Dunton, Vice Chairman & Principal Executive Officer
Chad L.
Norton, Secretary
American
Funds Short-Term Tax-Exempt Bond Fund
Neil L.
Langberg, President & Principal Executive Officer
Kimberly S.
Verdick, Secretary
American
Funds Target Date Retirement Series, Inc.:
James B.
Lovelace, Vice Chairman & Principal Executive Officer
Steven I.
Koszalka, Secretary
The
American Funds Tax-Exempt Series II:
Abner D.
Goldstine, President & Principal Executive Officer
Kimberly S.
Verdick, Secretary
Capital
World Growth and Income Fund, Inc.:
Stephen E.
Bepler, President & Principal Executive Officer
Vincent P.
Corti, Secretary
EuroPacific
Growth Fund:
Mark E.
Denning, President & Principal Executive Officer
Vincent P.
Corti, Secretary
Fundamental
Investors, Inc.:
James F.
Rothenberg, Vice Chairman & Principal Executive Officer
Patrick F.
Quan, Secretary
The
Growth Fund of America, Inc.:
James F.
Rothenberg, Vice Chairman & Principal Executive Officer
Patrick F.
Quan, Secretary
The
Income Fund of America, Inc.:
Hilda L.
Appplbaum, Chairman & Principal Executive Officer
Patrick F.
Quan, Secretary
Intermediate
Bond Fund of America:
John H. Smet,
President & Principal Executive Officer
Kimberly S.
Verdick, Secretary
SMALLCAP
World Fund, Inc.:
Gordon
Crawford, Vice Chairman & Principal Executive Officer
Chad L.
Norton, Secretary
The
Tax-Exempt Bond Fund of America, Inc.:
Neil L.
Langberg, President & Principal Executive Officer
Kimberly S.
Verdick, Secretary
|
American
High-Income Municipal Bond Fund, Inc.:
Mark R.
Macdonald, President & Principal Executive Officer
Kimberly S.
Verdick, Secretary
American
High-Income Trust:
David C.
Barclay, President & Principal Executive Officer
Kimberly S.
Verdick, Secretary
American
Mutual Fund, Inc.:
James K.
Dunton, Vice Chairman & Principal Executive Officer
Vince P.
Corti, Secretary
The
Bond Fund of America, Inc.:
Abner D.
Goldstine, President & Principal Executive Officer
Kimberly S.
Verdick, Secretary
Capital
Income Builder, Inc.:
James B.
Lovelace, Vice Chairman & Principal Executive Officer
Vincent P.
Corti, Secretary
Capital
World Bond Fund, Inc.:
Mark H.
Dalzell, President & Principal Executive Officer
Kimberly S.
Verdick, Secretary
International
Growth and Income Fund, Inc.:
Paul F. Roye,
Executive Vice President & Principal Executive Officer
Patrick F.
Quan, Secretary
The
Investment Company of America:
R. Michael
Shanahan, Chairman & Chief Executive Officer
Vincent P.
Corti, Secretary
Limited
Term Tax-Exempt Bond Fund of America:
Brenda S.
Ellerin, President & Principal Executive Officer
Kimberly S.
Verdick, Secretary
The
New Economy Fund:
Timothy D.
Armour, President & Principal Executive Officer
Chad L.
Norton, Secretary
New
Perspective Fund, Inc.:
Robert W.
Lovelace, President & Principal Executive Officer
Vincent P.
Corti, Secretary
New
World Fund, Inc.:
Robert W.
Lovelace, President & Principal Executive Officer
Vincent P.
Corti, Secretary
Short-Term
Bond Fund of America, Inc.
David A.
Hoag, President & Principal Executive Officer
Kimberly S.
Verdick, Secretary
|
|
I
elect to defer the following portion of my compensation from the funds
managed by CRMC and designated above:
1
|
·
Annual
retainer as an Independent Board
Member:
%
·
Board and
Committee meeting fees as an Independent Board Member:
%
I understand
that, to be effective, this election must be filed with the Administrator
of the Plan prior to the first day of the first calendar year to which it
applies, except as provided in Section 4.2.a. of the Plan. Once
effective, this election will continue until revoked or modified in
accordance with the terms of the Plan.
|
|
I
hereby specify that I shall be entitled to payment of my deferred
compensation upon the occurrence of either Permissible Payment Event
indicated in the corresponding box (check one), or any other Permissible
Payment Event:
|
q
The date on
which I am no longer an Independent Board Member of any fund managed by
CRMC; or
q
The following
date which is objectively determinable at the time my compensation is
deferred and is at least twenty four months past the date of the first
deferral
election made
by me (cannot be an “event”):
|
|
I
hereby specify that payments from my Deferred Payment Account(s) for the
fund(s) listed above be made beginning within thirty (30) days of the
close of the calendar quarter containing the Permissible Payment Event
(outlined above):
|
q
In a single lump sum
payment
;
OR
q
In
annual
q
In quarterly
variable dollar installment
payments over a period of
q
5
years
q
10
years
q
15
years
q
years (not to exceed
30);
OR
q
In
annual
q
In quarterly
fixed dollar payments of
$
each; however, in no event
shall any installment payment exceed the balance credited to my Deferred
Payment Account on the date immediately preceding the date of
payment.
|
|
Primary
Beneficiary(ies):
|
1.
Name:
%
Share:
Address:
Relationship:
Date of
Birth:
Social Security
#:
Trust Name
and Date (if beneficiary is a trust):
Trustee of
Trust:
2.
Name:
%
Share:
Address:
Relationship:
Date of
Birth:
Social Security
#:
Trust Name
and Date (if beneficiary is a trust):
Trustee of
Trust:
|
|
Contingent
Beneficiary(ies):
|
1.
Name:
%
Share:
Address:
Relationship:
Date of
Birth:
Social Security
#:
Trust Name
and Date (if beneficiary is a trust):
Trustee of
Trust:
2.
Name:
%
Share:
Address:
Relationship:
Date of
Birth:
Social Security
#:
Trust Name
and Date (if beneficiary is a trust):
Trustee of
Trust:
|
|
Name (please
print)
|
Date
|
|
Signature
|
|
AMERICAN
FUNDS SERVICE
COMPANY
|
FUND
|
|
By
|
By
|
|
John H.
Phelan, Jr.,
|
|
|
President
|
President
|
|
and Principal
Executive Officer
|
|
|
By
|
By
|
|
Angela M.
Mitchell, Secretary
|
Secretary
|
|
CAPITAL
RESEARCH AND MANAGEMENT COMPANY
|
FUND
|
|
By:
|
By:
|
|
Timothy D.
Armour,
|
|
|
President
|
President
|
|
By:
|
By:
|
|
Michael J.
Downer,
|
|
|
Senior Vice
President and Secretary
|
Secretary
|
|
(i)
|
Elect as
Trustees of the DE Trust the following individuals: [list Board
members];
|
|
(ii)
|
Approve an
Investment Advisory [and Service] Agreement between Capital Research and
Management Company (“Investment Adviser”) and the DE Trust, which is
substantially the same, with any such changes as approved by shareholders
of the Fund, as the then-current Investment Advisory [and Service]
Agreement between the Investment Adviser and the
Fund;
|
|
(iii)
|
Approve a
Subsidiary Agreement between the Investment Adviser and a Subsidiary
Adviser, substantially in the form approved by shareholders of the Fund;
and
|
|
(iv)
|
Approve Plans
of Distribution pursuant to Rule 12b-1 under the 1940 Act for applicable
share classes and series of the DE Trust that are substantially the same
as the Plans of Distribution of the Fund and its
series.
|
|
(i)
|
Approval of
the Investment Advisory [and Service] Agreement described in paragraph
(f)(ii) of this Section 3 between the Investment Adviser and the DE
Trust;
|
|
(ii)
|
Approval of
the assignment to the DE Trust of the custody agreement(s), as amended to
date, between [Custodian] and the
Fund;
|
|
(iii)
|
Selection of
[Auditor] as the DE Trust’s independent registered public accounting firm
for the current fiscal year;
|
|
(iv)
|
Approval of
an administrative services agreement with the Investment Adviser in
substantially the same form as the Fund’s then current
agreement;
|
|
(v)
|
Approval of a
principal underwriting agreement between the DE Trust and American Funds
Distributors, Inc. in substantially the same form as the Fund’s then
current agreement;
|
|
(vi)
|
Approval of
plans of distribution by the DE Trust pursuant to Rule 12b-1 under the
1940 Act for each relevant class of shares in substantially the same form
as the then current plans for shares of the
Fund;
|
|
(vii)
|
Approval of
the multiple class plan pursuant to Rule 18f-3 in substantially the same
form as the Fund’s then current
plan;
|
|
(viii)
|
Approval of a
shareholder services agreement with American Funds Service Company in
substantially the same form as the Fund’s then current
agreement;
|
|
(ix)
|
Authorization
of the issuance by the DE Trust of one share of each series of the DE
Trust to the Fund in consideration for the payment of $1.00 for each such
share for the purpose of enabling the Fund to vote on the matters referred
to in paragraph (f) of this Section 3, and the subsequent redemption of
such shares, all prior to the Effective Date of the Reorganization;
and
|
|
(x)
|
Submission of
the matters referred to in paragraph (f) of this Section 3 to the Fund as
sole shareholder of each series of the DE
Trust.
|
|
(xi)
|
[Approval of
a business management agreement between the DE Trust and Washington
Management Corporation in substantially the same form of the Fund’s then
current agreement.][applicable to TEFMD/VA and
WMIF]
|
|
[Name of
Fund]
(a state and
form of organization)
|
|
|
By:
|
|
|
Name:
|
|
|
Title:
|
|
|
[Name of DE
Trust]
(a Delaware
statutory trust)
|
|
|
By:
|
|
|
Name:
|
|
|
Title:
|
|
|
Re:
|
Opinion
Letter
|
|
|
(a)
|
A certificate
of the Secretary of the State of Delaware, dated as of a recent date, as
to the existence of the Trust;
|
|
|
(b)
|
A copy,
certified by the Secretary of the State of Delaware, of the Trust’s
Certificate of Trust dated August 20, 2009, filed with the Secretary of
State (the “Certificate of Trust”);
|
|
|
(c)
|
A certificate
executed by the Secretary of the Trust, certifying as to, and attaching
copies of, the Trust’s Agreement and Declaration of Trust, as amended (the
“Declaration”), the Trust’s By-Laws, as amended (the “By-Laws”), and the
resolutions adopted by the Trustees of the Trust authorizing the issuance
of the Shares (the “Resolutions”);
and
|
|
|
(d)
|
A proof,
received on February 17, 2010, of the Registration
Statement.
|
|
|
a.
|
that such
agreement may be terminated as to the Fund at any time, without payment of
any penalty by the vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding Class A shares of the Fund, on not
more than sixty (60) days’ written notice to any other party to the
agreement; and
|
|
|
b.
|
that such
agreement shall terminate automatically in the event of its
assignment.
|
|
a.
|
Service
Fees.
The Fund shall pay to the Distributor monthly in
arrears a shareholder servicing fee (the “Shareholder Servicing Fee”) at
the rate of 0.25% per annum on the Fund’s Class B shares outstanding for
less than one year. The Fund shall also pay to the Distributor
quarterly a Shareholder Servicing Fee at the rate of 0.25% per annum on
Class B shares that are outstanding for one year or more. The
Shareholder Servicing Fee is designed to compensate Distributor for paying
Service Fees to broker-dealers with whom Distributor has an
agreement.
|
|
|
b.
|
Distribution
Fees.
The Fund shall pay to the Distributor monthly in
arrears its “Allocable Portion” (as described in Schedule A to this
Plan (“Allocation Schedule”), and until such time as the Fund
designates a successor to AFD as distributor, the Allocable Portion shall
equal 100%) of a fee (the “Distribution Fee”), which shall accrue each day
in an amount equal to the product of (A) the daily equivalent of 0.75% per
annum multiplied by (B) the net asset value of the Fund’s Class B shares
outstanding on each day.
|
|
|
(i)
|
the
Distributor will be deemed to have performed all services required to be
performed in order to be entitled to receive its Allocable Portion of the
Distribution Fee payable in respect of each “Commission Share” (as defined
in the Allocation Schedule) upon the settlement date of each sale of such
Commission Share taken into account in determining such Distributor’s
Allocable Portion of the Distribution
Fee;
|
|
|
(ii)
|
notwithstanding
anything to the contrary in this Plan or the Agreement, the Fund’s
obligation to pay the Distributor its Allocable Portion of the
Distribution Fee shall not be terminated or modified (including without
limitation, by change in the rules applicable to the conversion of the
Class B shares into shares of another class) for any reason (including a
termination of this Plan or the Agreement between such Distributor and the
Fund) except:
|
|
|
(a)
|
to the extent
required by a change in the Investment Company Act of 1940 (the “1940
Act”), the rules and regulations under the 1940 Act, the Conduct Rules of
the Financial Industry Regulatory Authority (the “Conduct Rules”), or any
judicial decisions or interpretive pronouncements by the Securities and
Exchange Commission, which is either binding upon the Distributor or
generally complied with by similarly situated distributors of mutual fund
shares, in each case enacted, promulgated, or made after [DATE],
or
|
|
|
(b)
|
on a basis
which does not alter the Distributor’s Allocable Portion of the
Distribution Fee computed with reference to Commission Shares of the Fund,
the Date of Original Issuance (as defined in the Allocation Schedule) of
which occurs on or prior to the adoption of such termination or
modification and with respect to Free Shares (as defined in the Allocation
Schedule) which would be attributed to the Distributor under the
Allocation Schedule with reference to such Commission Shares,
or
|
|
|
(c)
|
in connection
with a Complete Termination (as defined below) of this Plan by the
Fund;
|
|
|
(iii)
|
the Fund will
not take any action to waive or change any contingent deferred sales
charge (“CDSC”) in respect to the Class B shares, the Date of Original
Issuance of which occurs on or prior to the taking of such action except
as provided in the Fund’s prospectus or statement of additional
information on the date such Commission Share was issued, without the
consent of the Distributor or its
assigns;
|
|
|
(iv)
|
notwithstanding
anything to the contrary in this Plan or the Agreement, none of the
termination of the Distributor’s role as principal underwriter of the
Class B shares of the Fund, the termination of the Agreement or the
termination of this Plan will terminate the Distributor’s right to its
Allocable Portion of the CDSCs in respect of Class B shares of the
Fund;
|
|
|
(v)
|
except as
provided in (ii) above and notwithstanding anything to the contrary in
this Plan or the Agreement, the Fund’s obligation to pay the Distributor’s
Allocable Portion of the Distribution Fees and CDSCs payable in respect of
the Class B shares of the Fund shall be absolute and unconditional and
shall not be subject to dispute, offset, counterclaim or any defense
whatsoever, at law or equity, including, without limitation, any of the
foregoing based on the insolvency or bankruptcy of the Distributor;
and
|
|
|
(vi)
|
until the
Distributor has been paid its Allocable Portion of the Distribution Fees
in respect of the Class B shares of the Fund, the Fund will not adopt a
plan of liquidation in respect of the Class B shares without the consent
of the Distributor and its assigns. For purposes of this Plan,
the term Allocable Portion of the Distribution Fees or CDSCs payable in
respect of the Class B shares as applied to any Distributor shall mean the
portion of such Distribution Fees or CDSCs payable in respect of such
Class B shares of the Fund allocated to the Distributor in accordance with
the Allocation Schedule as it relates to the Class B shares of the Fund,
and until such time as the Fund designates a successor to AFD as
distributor, the Allocable Portion shall equal 100% of the Distribution
Fees and CDSCs. For purposes of this Plan, the term “Complete
Termination” in respect of this Plan as it relates to the Class B shares
means a termination of this Plan involving the complete cessation of the
payment of Distribution Fees in respect of all Class B shares, the
termination of the distribution plans and principal underwriting
agreements, and the complete cessation of the payment of any asset based
sales charge (within the meaning of the Conduct Rules) or similar fees in
respect of the Fund and any successor mutual fund or any mutual fund
acquiring a substantial portion of the assets of the Fund (the Fund and
such other mutual funds hereinafter referred to as the “Affected Funds”)
and in respect of the Class B shares and every future class of shares
(other than future classes of shares established more than eight years
after the date of such termination) which has substantially similar
characteristics to the Class B shares (all such classes of shares the
“Affected Classes of Shares”) of such Affected Funds taking into account
the manner of payment and amount of asset based sales charge, CDSC or
other similar charges borne directly or indirectly by the holders of such
shares;
provided
that
|
|
|
(a)
|
the Board of
Directors/Trustees of such Affected Funds, including the Independent
Directors/Trustees (as defined below) of the Affected Funds, shall have
determined that such termination is in the best interest of such Affected
Funds and the shareholders of such Affected Funds,
and
|
|
(b)
|
such
termination does not alter the CDSC as in effect at the time of such
termination applicable to Commission Shares of the Fund, the Date of
Original Issuance of which occurs on or prior to such
termination.
|
|
|
a.
|
that such
agreement may be terminated as to the Fund at any time, without payment of
any penalty by the vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding
Class
|
|
|
b.
|
that such
agreement shall terminate automatically in the event of its
assignment.
|
|
A=
|
The aggregate
Net Asset Value of all Class B shares of a Fund attributed to the
Distributor or such Successor Distributor, as the case may be, and
outstanding at the beginning of such calendar
month
|
|
B=
|
The aggregate
Net Asset Value of all Class B shares of a Fund at the beginning of such
calendar month
|
|
C=
|
The aggregate
Net Asset Value of all Class B shares of a Fund attributed to the
Distributor or such Successor Distributor, as the case may be, and
outstanding at the end of such calendar
month
|
|
D=
|
The aggregate
Net Asset Value of all Class B shares of a Fund at the end of such
calendar month
|
|
A=
|
Average Net
Asset Value of all such Class B shares of a Fund for such calendar month
attributed to the Distributor or a Successor Distributor, as the case may
be
|
|
B=
|
Total average
Net Asset Value of all such Class B shares of a Fund for such calendar
month
|
|
|
(i)
|
the
Distributor will be deemed to have performed all services required to be
performed in order to be entitled to receive its Allocable Portion of the
Distribution Fee payable in respect of each “Commission Share” (as defined
in the Allocation Schedule) upon the settlement date of each sale of such
Commission Share taken into account in determining such Distributor’s
Allocable Portion of the Distribution
Fee;
|
|
|
(ii)
|
notwithstanding
anything to the contrary in this Plan or the Agreement, the Fund’s
obligation to pay the Distributor its Allocable Portion of the
Distribution Fee shall not be terminated or modified (including without
limitation, by change in the rules applicable to the conversion of the
Class C shares into shares of another class) for any reason (including a
termination of this Plan or the Agreement between such Distributor and the
Fund) except:
|
|
|
(a)
|
to the extent
required by a change in the Investment Company Act of 1940 (the “1940
Act”), the rules and regulations under the 1940 Act, the Conduct Rules of
the Financial Industry Regulatory Authority (the “Conduct
Rules”), or any judicial decisions or interpretive pronouncements by the
Securities and Exchange Commission, which is either binding upon the
Distributor or generally complied with by similarly situated distributors
of mutual fund shares, in each case enacted, promulgated, or made after
[DATE].
|
|
|
(b)
|
on a basis
which does not alter the Distributor’s Allocable Portion of the
Distribution Fee computed with reference to Commission Shares of the Fund,
the Date of Original Issuance (as defined in the Allocation Schedule) of
which occurs on or prior to the adoption of such termination or
modification and with respect to Free Shares (as defined in the Allocation
Schedule) which would be attributed to the Distributor under the
Allocation Schedule with reference to such Commission Shares,
or
|
|
|
(c)
|
in connection
with a Complete Termination (as defined below) of this Plan by the
Fund;
|
|
|
(iii)
|
the Fund will
not take any action to waive or change any contingent deferred sales
charge (“CDSC”) in respect of the Class C shares, the Date of Original
Issuance of which occurs on or prior to the taking of such action except
as provided in the Fund’s prospectus or statement of additional
information on the date such Commission Share was issued, without the
consent of the Distributor or its
assigns;
|
|
|
(iv)
|
notwithstanding
anything to the contrary in this Plan or the Agreement, none of the
termination of the Distributor’s role as principal underwriter of the
Class C shares of the Fund, the termination of the Agreement or the
termination of this Plan will terminate the Distributor’s right to its
Allocable Portion of the CDSCs in respect of Class C shares of the
Fund;
|
|
|
(v)
|
except as
provided in (ii) above and notwithstanding anything to the contrary in
this Plan or the Agreement, the Fund’s obligation to pay the Distributor’s
Allocable Portion of the Distribution Fees and CDSCs payable in respect of
the Class C shares of the Fund shall be absolute and unconditional and
shall not be subject to dispute, offset, counterclaim or any defense
whatsoever, at law or equity, including, without limitation, any of the
foregoing based on the insolvency or bankruptcy of the Distributor;
and
|
|
|
(vi)
|
until the
Distributor has been paid its Allocable Portion of the Distribution Fees
in respect of the Class C shares of the Fund, the Fund will not adopt a
plan of liquidation in respect of the Class C shares without the consent
of the Distributor and its assigns. For purposes of this Plan,
the term Allocable Portion of the Distribution Fees or CDSCs payable in
respect of the Class C shares as applied to any Distributor shall mean the
portion of such Distribution Fees or CDSCs payable in respect of such
Class C shares of the Fund allocated to the Distributor in accordance with
the Allocation Schedule as it relates to the Class C shares of the Fund,
and until such time as the Fund designates a successor to AFD as
distributor, the Allocable Portion shall equal 100% of the Distribution
Fees and CDSCs. For purposes of this Plan, the term “Complete
Termination” in respect of this Plan as it relates to the Class C shares
means a termination of this Plan involving the complete cessation of the
payment of Distribution Fees in respect of all Class C shares, the
termination of the distribution plans and principal underwriting
agreements, and the complete cessation of the payment of any asset based
sales charge (within the meaning of the Conduct Rules) or similar fees in
respect of the Fund and any successor mutual fund or any mutual fund
acquiring a substantial portion of the assets of the Fund (the Fund and
such other mutual funds hereinafter referred to as the “Affected Funds”)
and in respect of the Class C shares and every future class of shares
(other than future classes of shares established more than one year after
the date of such termination) which has substantially similar
characteristics to the Class C shares (all such classes of shares the
“Affected Classes of Shares”) of such Affected Funds taking into account
the manner of payment and amount of asset based sales charge, CDSC or
other similar charges borne directly or indirectly by the holders of such
shares;
provided
that
|
|
|
(a)
|
the Board of
Directors/Trustees of such Affected Funds, including the Independent
Directors/Trustees (as defined below) of the Affected Funds, shall have
determined that such termination is in the best interest of such Affected
Funds and the shareholders of such Affected Funds,
and
|
|
|
(b)
|
such
termination does not alter the CDSC as in effect at the time of such
termination applicable to Commission Shares of the Fund, the Date of
Original Issuance of which occurs on or prior to such
termination.
|
|
|
a.
|
that such
agreement may be terminated as to the Fund at any time, without payment of
any penalty by the vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding Class 529-A shares of the Fund, on
not more than sixty (60) days’ written notice to any other party to the
agreement; and
|
|
|
b.
|
that such
agreement shall terminate automatically in the event of its
assignment.
|
|
|
a.
|
Service
Fees.
The Fund shall pay to the Distributor no more
frequently than monthly in arrears a service fee (the “Service Fee”),
which shall accrue daily in an amount equal to the daily equivalent of
.25% per annum of the net asset value of the Fund’s Class 529-B shares
outstanding on each day. The Service Fee compensates the
Distributor for paying service-related expenses, including Service Fees to
others in respect of Class 529-B shares of the
Fund.
|
|
|
b.
|
Distribution
Fees.
The Fund shall pay to the Distributor monthly in
arrears its “Allocable Portion” as described in Schedule A to this
Plan (“Allocation Schedule”), and until such time as the Fund
designates a successor to AFD as distributor, the Allocable Portion shall
equal 100% of a fee (the “Distribution Fee”), which shall accrue daily in
an amount equal to the daily equivalent of .75% per annum of the net asset
value of the Fund’s Class 529-B shares outstanding on each
day. The Distribution Fee compensates the Distributor for
providing distribution and sales-related services in respect of Class
529-B shares of the Fund.
|
|
|
(i)
|
the
Distributor will be deemed to have performed all services required to be
performed in order to be entitled to receive its Allocable Portion of the
Distribution Fee payable in respect of each “Commission Share” (as defined
in the Allocation Schedule) upon the settlement date of each sale of such
Commission Share taken into account in determining such Distributor’s
Allocable Portion of the Distribution
Fee;
|
|
|
(ii)
|
notwithstanding
anything to the contrary in this Plan or the Agreement, the Fund’s
obligation to pay the Distributor its Allocable Portion of the
Distribution Fee shall not be terminated or modified (including without
limitation, by change in the rules applicable to the conversion of the
Class 529-B shares into shares of another class) for any reason (including
a termination of this Plan or the Agreement between such Distributor and
the Fund) except:
|
|
|
(a)
|
to the extent
required by a change in the Investment Company Act of 1940 (the “1940
Act”), the rules and regulations under the 1940 Act, the Conduct Rules of
the Financial Industry Regulatory Authority (the “Conduct Rules”), or any
judicial decisions or interpretive pronouncements by the Securities and
Exchange Commission, which is either binding upon the Distributor or
generally complied with by similarly situated distributors of mutual fund
shares, in each case enacted, promulgated, or made after
[DATE],
|
|
|
(b)
|
on a basis
which does not alter the Distributor’s Allocable Portion of the
Distribution Fee computed with reference to Commission Shares of the Fund,
the Date of Original Issuance (as defined in the Allocation Schedule) of
which occurs on or prior to the adoption of such termination or
modification and with respect to Free Shares (as defined in the Allocation
Schedule) which would be attributed to the Distributor under the
Allocation Schedule with reference to such Commission Shares,
or
|
|
(c)
|
in connection
with a Complete Termination (as defined below) of this Plan by the
Fund;
|
|
|
(iii)
|
the Fund will
not take any action to waive or change any contingent deferred sales
charge (“CDSC”) in respect of the Class 529-B shares, the Date of Original
Issuance of which occurs on or prior to the taking of such action except
as provided in the Fund’s prospectus or statement of additional
information on the date such Commission Share was issued, without the
consent of the Distributor or its
assigns;
|
|
|
(iv)
|
notwithstanding
anything to the contrary in this Plan or the Agreement, none of the
termination of the Distributor’s role as principal underwriter of the
Class 529-B shares of the Fund, the termination of the Agreement or the
termination of this Plan will terminate the Distributor’s right to its
Allocable Portion of the CDSCs in respect of Class 529-B shares of the
Fund;
|
|
|
(v)
|
except as
provided in (ii) above and notwithstanding anything to the contrary in
this Plan or the Agreement, the Fund’s obligation to pay the Distributor’s
Allocable Portion of the Distribution Fees and CDSCs payable in respect of
the Class 529-B shares of the Fund shall be absolute and unconditional and
shall not be subject to dispute, offset, counterclaim or any defense
whatsoever, at law or equity, including, without limitation, any of the
foregoing based on the insolvency or bankruptcy of the Distributor;
and
|
|
|
(vi)
|
until the
Distributor has been paid its Allocable Portion of the Distribution Fees
in respect of the Class 529-B shares of the Fund, the Fund will not adopt
a plan of liquidation in respect of the Class 529-B shares without the
consent of the Distributor and its assigns. For purposes of
this Plan, the term Allocable Portion of the Distribution Fees or CDSCs
payable in respect of the Class 529-B shares as applied to any Distributor
shall mean the portion of such Distribution Fees or CDSCs payable in
respect of such Class 529-B shares of the Fund allocated to the
Distributor in accordance with the Allocation Schedule as it relates to
the Class 529-B shares of the Fund, and until such time as the Fund
designates a successor to AFD as distributor, the Allocable Portion shall
equal 100% of the Distribution Fees and CDSCs. For purposes of
this Plan, the term “Complete Termination” in respect of this Plan as it
relates to the Class 529-B shares means a termination of this Plan
involving the complete cessation of the payment of Distribution Fees in
respect of all Class 529-B shares and all Class B shares, the termination
of the distribution plans relating to Class 529-B shares and Class B
shares and principal underwriting agreements with respect to Class 529-B
shares and Class B shares, and the complete cessation of the payment of
any asset based sales charge (within the meaning of the Conduct Rules) or
similar fees in respect of all Class 529-B shares and all Class B shares
of the Fund and any successor mutual fund or any mutual fund acquiring a
substantial portion of the assets of the Fund (the Fund and such other
mutual funds hereinafter referred to as the “Affected Funds”) and in
respect of the Class 529-B shares, the Class B shares and every future
class of shares (other than future classes of shares established more than
eight years after the date of such termination) which has substantially
similar characteristics to the Class 529-B shares or the Class B shares
(all such classes of shares the “Affected Classes of Shares”) of such
Affected Funds taking into account the manner of payment and amount of
asset based sales charge, CDSC or other similar charges borne directly or
indirectly by the holders of such shares;
provided
that
|
|
|
(a)
|
the Board of
Directors/Trustees of such Affected Funds, including the Independent
Directors/Trustees (as defined below) of the Affected Funds, shall have
determined that such termination is in the best interest of such Affected
Funds and the shareholders of such Affected Funds,
and
|
|
(b)
|
such
termination does not alter the CDSC as in effect at the time of such
termination applicable to Commission Shares of the Fund, the Date of
Original Issuance of which occurs on or prior to such
termination.
|
|
|
a.
|
that such
agreement may be terminated as to the Fund at any time, without payment of
any penalty by the vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding Class 529-B shares of the Fund, on
not more than sixty (60) days’ written notice to any other party to the
agreement; and
|
|
|
b.
|
that such
agreement shall terminate automatically in the event of its
assignment.
|
|
A=
|
The aggregate
Net Asset Value of all Class 529-B shares of a Fund attributed to the
Distributor or such Successor Distributor, as the case may be, and
outstanding at the beginning of such calendar
month
|
|
B=
|
The aggregate
Net Asset Value of all Class 529-B shares of a Fund at the beginning of
such calendar month
|
|
C=
|
The aggregate
Net Asset Value of all Class 529-B shares of a Fund attributed to the
Distributor or such Successor Distributor, as the case may be, and
outstanding at the end of such calendar
month
|
|
D=
|
The aggregate
Net Asset Value of all Class 529-B shares of a Fund at the end of such
calendar month
|
|
A=
|
Average Net
Asset Value of all such Class 529-B shares of a Fund for such calendar
month attributed to the Distributor or a Successor Distributor, as the
case may be
|
|
B=
|
Total average
Net Asset Value of all such Class 529-B shares of a Fund for such calendar
month
|
|
|
a.
|
Service
Fees.
The Fund shall pay to the Distributor no more
frequently than monthly in arrears a service fee (the “Service Fee”),
which shall accrue daily in an amount equal to the daily equivalent of
.25% per annum of the net asset value of the Fund’s Class 529-C shares
outstanding on each day. The Service Fee compensates the Distributor for
paying service-related expenses, including Service Fees to others in
respect of Class 529-C shares of the
Fund.
|
|
|
b.
|
Distribution
Fees.
The Fund shall pay to the Distributor no more
frequently than monthly in arrears its “Allocable Portion” as described in
Schedule A to this Plan (“Allocation Schedule”), and until such
time as the Fund designates a successor to AFD as distributor, the
Allocable Portion shall equal 100% of a fee (the “Distribution Fee”),
which shall accrue daily in an amount equal to the daily equivalent of
.75% per annum of the net asset value of the Fund’s Class 529-C shares
outstanding on each day. The Distribution Fee compensates the
Distributor for providing distribution and sales-related services in
respect of Class 529-C shares of the Fund. Expenditures characterized as
Distribution Fees may, nonetheless, be used to provide shareholder
services.
|
|
|
(i)
|
the
Distributor will be deemed to have performed all services required to be
performed in order to be entitled to receive its Allocable Portion of the
Distribution Fee payable in respect of each “Commission Share” (as defined
in the Allocation Schedule) upon the settlement date of each sale of such
Commission Share taken into account in determining such Distributor’s
Allocable Portion of the Distribution
Fee;
|
|
|
(ii)
|
notwithstanding
anything to the contrary in this Plan or the Agreement, the Fund’s
obligation to pay the Distributor its Allocable Portion of the
Distribution Fee shall not be terminated or modified (including without
limitation, by change in the rules applicable to the conversion of the
Class 529-C shares into shares of another class) for any reason (including
a termination of this Plan or the Agreement between such Distributor and
the Fund) except:
|
|
|
(a)
|
to the extent
required by a change in the Investment Company Act of 1940 (the “1940
Act”), the rules and regulations under the 1940 Act, the Conduct Rules of
the Financial Industry Regulatory Authority (the “Conduct Rules”), or any
judicial decisions or interpretive pronouncements by the Securities and
Exchange Commission, which is either binding upon the Distributor or
generally complied with by similarly situated distributors of mutual fund
shares, in each case enacted, promulgated, or made after
[DATE],
|
|
|
(b)
|
on a basis
which does not alter the Distributor’s Allocable Portion of the
Distribution Fee computed with reference to Commission Shares of the Fund,
the Date of Original Issuance (as defined in the Allocation Schedule) of
which occurs on or prior to the adoption of such termination or
modification and with respect to Free Shares (as defined in the Allocation
Schedule) which would be attributed to the Distributor under the
Allocation Schedule with reference to such Commission Shares,
or
|
|
|
(c)
|
in connection
with a Complete Termination (as defined below) of this Plan by the
Fund;
|
|
|
(iii)
|
the Fund will
not take any action to waive or change any contingent deferred sales
charge (“CDSC”) in respect of the Class 529-C shares, the Date of Original
Issuance of which occurs on or prior to the taking of such action except
as provided in the Fund’s prospectus or statement of additional
information on the date such Commission Share was issued, without the
consent of the Distributor or its
assigns;
|
|
|
(iv) notwithstanding
anything to the contrary in this Plan or the Agreement, none of the
termination of the Distributor’s role as principal underwriter of the
Class 529-C shares of the Fund, the termination of the Agreement or
the termination of this Plan will terminate the Distributor’s right to its
Allocable Portion of the CDSCs in respect of Class 529-C shares of the
Fund;
|
|
|
(v)
|
except as
provided in (ii) above and notwithstanding anything to the contrary in
this Plan or the Agreement, the Fund’s obligation to pay the Distributor’s
Allocable Portion of the Distribution Fees and CDSCs payable in respect of
the Class 529-C shares of the Fund shall be absolute and unconditional and
shall not be subject to dispute, offset, counterclaim or any defense
whatsoever, at law or equity, including, without limitation, any of the
foregoing based on the insolvency or bankruptcy of the Distributor;
and
|
|
|
(vi)
|
until the
Distributor has been paid its Allocable Portion of the Distribution Fees
in respect of the Class 529-C shares of the Fund, the Fund will not adopt
a plan of liquidation in respect of the Class 529-C shares without the
consent of the Distributor and its assigns. For purposes of
this Plan, the term Allocable Portion of the Distribution Fees or CDSCs
payable in respect of the Class 529-C shares as applied to any Distributor
shall mean the portion of such Distribution Fees or CDSCs payable in
respect of such Class 529-C shares of the Fund allocated to the
Distributor in accordance with the Allocation Schedule as it relates to
the Class 529-C shares of the Fund, and until such time as the Fund
designates a successor to AFD as distributor, the Allocable Portion shall
equal 100% of the Distribution Fees and CDSCs. For purposes of
this Plan, the term “Complete Termination” in respect of this Plan as it
relates to the Class 529-C shares means a termination of this Plan
involving the complete cessation of the payment of Distribution Fees in
respect of all Class 529-C shares, the termination of the distribution
plans and principal underwriting agreements, and the complete cessation of
the payment of any asset based sales charge (within the meaning of the
Conduct Rules) or similar fees in respect of the Fund and any successor
mutual fund or any mutual fund acquiring a substantial portion of the
assets of the Fund (the Fund and such other mutual funds hereinafter
referred to as the “Affected Funds”) and in respect of the Class 529-C
shares and every future class of shares (other than future classes of
shares established more than one year after the date of such termination)
which has substantially similar characteristics to the Class 529-C shares
(all such classes of shares the “Affected Classes of Shares”) of such
Affected Funds taking into account the manner of payment and amount of
asset based sales charge, CDSC or other similar charges borne directly or
indirectly by the holders of such shares;
provided
that
|
|
|
a.
|
that such
agreement may be terminated as to the Fund at any time, without payment of
any penalty by the vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding Class 529-C shares of the Fund, on
not more than sixty (60) days’ written notice to any other party to the
agreement; and
|
|
|
b.
|
that such
agreement shall terminate automatically in the event of its
assignment.
|
|
A=
|
The aggregate
Net Asset Value of all Class 529-C shares of a Fund attributed to the
Distributor or such Successor Distributor, as the case may be, and
outstanding at the beginning of such calendar
month
|
|
B=
|
The aggregate
Net Asset Value of all Class 529-C shares of a Fund at the beginning of
such calendar month
|
|
C=
|
The aggregate
Net Asset Value of all Class 529-C shares of a Fund attributed to the
Distributor or such Successor Distributor, as the case may be, and
outstanding at the end of such calendar
month
|
|
D=
|
The aggregate
Net Asset Value of all Class 529-C shares of a Fund at the end of such
calendar month
|
|
A=
|
Average Net
Asset Value of all such Class 529-C shares of a Fund for such calendar
month attributed to the Distributor or a Successor Distributor, as the
case may be
|
|
B=
|
Total average
Net Asset Value of all such Class 529-C shares of a Fund for such calendar
month
|
|
|
a.
|
that such
agreement may be terminated as to the Fund at any time, without payment of
any penalty by the vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding Class 529-E shares of the Fund, on
not more than sixty (60) days’ written notice to any other party to the
agreement; and
|
|
|
b.
|
that such
agreement shall terminate automatically in the event of its
assignment.
|
|
|
a.
|
that such
agreement may be terminated as to the Fund at any time, without payment of
any penalty by the vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding Class 529-F-1 shares of the Fund, on
not more than sixty (60) days’ written notice to any other party to the
agreement; and
|
|
|
b.
|
that such
agreement shall terminate automatically in the event of its
assignment.
|
|
|
a.
|
that such
agreement may be terminated as to the Fund at any time, without payment of
any penalty by the vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding Class R-1 shares of the Fund, on not
more than sixty (60) days’ written notice to any other party to the
agreement; and
|
|
|
b.
|
that such
agreement shall terminate automatically in the event of its
assignment.
|
|
|
a.
|
that such
agreement may be terminated as to the Fund at any time, without payment of
any penalty by the vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding Class R-2 shares of the Fund, on not
more than sixty (60) days’ written notice to any other party to the
agreement; and
|
|
|
b.
|
that such
agreement shall terminate automatically in the event of its
assignment.
|
|
|
a.
|
that such
agreement may be terminated as to the Fund at any time, without payment of
any penalty by the vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding Class R-3 shares of the Fund, on not
more than sixty (60) days’ written notice to any other party to the
agreement; and
|
|
|
b.
|
that such
agreement shall terminate automatically in the event of its
assignment.
|
|
|
a.
|
that such
agreement may be terminated as to the Fund at any time, without payment of
any penalty by the vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding Class R-4 shares of the Fund, on not
more than sixty (60) days’ written notice to any other party to the
agreement; and
|
|
|
b.
|
that such
agreement shall terminate automatically in the event of its
assignment.
|
|
|
(d)
|
The Class F shares
consisting of Class F-1 shares and Class F-2
shares
|
|
|
5)
|
The Class R shares
consisting of Class R-1 shares, Class R-2 shares, Class R-3 shares, Class
R-4 shares, Class R-5 shares, and Class R-6
shares
|
|
(vi)
|
Class R-5
shares shall not be subject to an annual 12b-1
expense.
|
|
|
6)
|
The 529 share classes
consisting of Class 529-A shares, Class 529-B shares, Class 529-C shares,
Class 529-E shares and Class 529-F-1
shares
|
|
Code
of Ethics
|
June
2009
|
|
Ø
|
The CGC Audit
Committee
|
|
Ø
|
The CIL Audit
Committee
|
|
Ø
|
Legal counsel
employed at the Capital Group
organization
|
|
Ø
|
Initial
Public Offering (IPO) investments
|
|
Ø
|
Short selling
of securities subject to
preclearance
|
|
Ø
|
Spread
betting/contracts for difference (CFD) on securities (allowed only on
currencies, commodities, and broad-based
indices)
|
|
Ø
|
Writing puts
and calls on securities subject to
preclearance
|
|
|
·
|
No Board
member shall so use his or her position or knowledge gained therefrom as
to create a conflict between his or her personal interest and that of the
Fund.
|
|
|
·
|
No Board
member shall engage in excessive trading of shares of the fund or any
other affiliated fund to take advantage of short-term market
movements.
|
|
|
·
|
Each
non-affiliated Board member shall report to the Secretary of the Fund not
later than thirty (30) days after the end of each calendar quarter any
transaction in securities which such Board member has effected during the
quarter which the Board member then knows to have been effected within
fifteen (15) days before or after a date on which the Fund purchased or
sold, or considered the purchase or sale of, the same
security.
|
|
|
·
|
For purposes
of this Code of Ethics, transactions involving United States Government
securities as defined in the Investment Company Act of 1940, bankers’
acceptances, bank certificates of deposit, commercial paper, or shares of
registered open-end investment companies are exempt from reporting as are
non-volitional transactions such as dividend reinvestment programs and
transactions over which the Board member exercises no
control.
|
|
|
1.
|
It is the
responsibility of Covered Officers to foster, by their words and actions,
a corporate culture that encourages honest and ethical conduct, including
the ethical resolution of, and appropriate disclosure of conflicts of
interest. Covered Officers should work to assure a working
environment that is characterized by respect for law and compliance with
applicable rules and regulations.
|
|
|
2.
|
Each Covered
Officer must act in an honest and ethical manner while conducting the
affairs of the Fund, including the ethical handling of actual or apparent
conflicts of interest between personal and professional
relationships. Duties of Covered Officers
include:
|
|
|
·
|
Acting with
integrity;
|
|
|
·
|
Adhering to a
high standard of business ethics;
and
|
|
|
·
|
Not using
personal influence or personal relationships to improperly influence
investment decisions or financial reporting whereby the Covered Officer
would benefit personally to the detriment of the
Fund.
|
|
|
3.
|
Each Covered
Officer should act to promote full, fair, accurate, timely and
understandable disclosure in reports and documents that the Fund files
with or submits to, the Securities and Exchange Commission and in other
public communications made by the
Fund.
|
|
|
·
|
Covered
Officers should familiarize themselves with disclosure requirements
applicable to the Fund and disclosure controls and procedures in place to
meet these requirements; and
|
|
|
·
|
Covered
Officers must not knowingly misrepresent, or cause others to misrepresent
facts about the Fund to others, including the Fund’s auditors, independent
directors, governmental regulators and self-regulatory
organizations.
|
|
|
4.
|
Any existing
or potential violations of this Code of Ethics should be reported to The
Capital Group Companies’ Personal Investing Committee.
The Personal
Investing Committee is authorized to investigate any such violations and
report their findings to the Chairman of the Audit Committee of the
Fund. The Chairman of the Audit Committee may report violations
of the Code of Ethics to the Board or other appropriate entity including
the Audit Committee, if he or she believes such a reporting is
appropriate. The Personal Investing Committee may also
determine the appropriate sanction for any violations of this Code of
Ethics, including removal from office, provided that removal from office
shall only be carried out with the approval of the
Board.
|
|
|
5.
|
Application
of this Code of Ethics is the responsibility of the Personal Investing
Committee, which shall report periodically to the Chairman of the Audit
Committee of the Fund.
|
|
|
6.
|
Material
amendments to these provisions must be ratified by a majority vote of the
Board. As required by applicable rules, substantive amendments
to the Code of Ethics must be filed or appropriately
disclosed.
|