SEC File Nos.
002-26516
811-01435
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington, D.C.
20549
__________________
FORM
N-1A
Registration
Statement
Under
the Securities Act
of 1933
Post-Effective
Amendment No. 83
and
Registration
Statement
Under
The Investment
Company Act of 1940
Amendment
No. 52
__________________
AMCAP
FUND
(Exact Name of
Registrant as Specified in Charter)
333 South Hope
Street
Los Angeles,
California 90071-1406
(Address of
Principal Executive Offices)
Registrant's
telephone number, including area code:
(213)
486-9200
__________________
Vincent
P. Corti
Capital
Research and Management Company
333
South Hope Street
Los
Angeles, California 90071-1406
(Name
and Address of Agent for Service)
__________________
Copies
to:
Eric
A.S. Richards
O'Melveny
& Myers
LLP
400
South Hope Street
Los
Angeles, California 90071-2899
(Counsel
for the Registrant)
__________________
Approximate date of
proposed public offering:
It is proposed that
this filing become effective on May 1, 2010, pursuant to paragraph (b) of rule
485.
Pursuant to Rule
414 under the Securities Act of 1933, AMCAP Fund, a Delaware statutory trust, as
successor of AMCAP Fund, a Delaware corporation, is filing this amendment to the
registration statement of AMCAP Fund, and expressly adopts the registration
statement of AMCAP Fund as its own for all purposes of the Securities Act of
1933, as amended and the Investment Company Act of 1940, as
amended.
|
|
AMCAP
Fund
®
|
Class
A
B
C
|
Ticker
AMCPX
AMPBX
AMPCX
|
F-1
F-2
529-A
529-B
|
AMPFX
AMCFX
CAFAX
CAFBX
|
529-C
529-E
529-F-1
|
CAFCX
CAFEX
CAFFX
|
|
Prospectus
|
||||
|
May
1, 2010
|
||||
|
Table
of contents
|
||||
|
Investment
objective 1
Fees and
expenses of the fund 1
Principal
investment strategies 3
Principal
risks 3
Investment
results 4
Management
6
Purchase and
sale of fund shares 7
Tax
information 7
Payments to
broker-dealers and other
financial intermediaries
7
Investment
objective, strategies and risks 8
Additional
investment results 9
Management
and organization
11
|
Shareholder
information 15
Choosing a
share class 16
Purchase,
exchange and sale of shares 19
Sales
charges 25
Sales charge
reductions and waivers 28
Rollovers
from retirement plans to IRAs 31
Plans of
distribution 32
Other
compensation to dealers 32
How to sell
shares 33
Distributions
and taxes 35
Financial
highlights
36
|
|||
|
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.
|
||||
The fund’s
investment objective is to provide you with long-term growth of
capital.
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 28 of the prospectus and on page 58 of the fund’s statement of
additional information.
Annual
fund operating expenses
(expenses that you
pay each year as a percentage of the
value
of your investment)
|
529-A
|
529-B
|
529-C
|
529-E
|
529-F-1
|
|
|
Management
fees
|
0.33%
|
0.33%
|
0.33%
|
0.33%
|
0.33%
|
|
Distribution
and/or service (12b-1) fees
|
0.21
|
1.00
|
0.99
|
0.50
|
0.00
|
|
Other
expenses
|
0.29
|
0.31
|
0.31
|
0.30
|
0.30
|
|
Total annual
fund operating expenses
|
0.83
|
1.64
|
1.63
|
1.13
|
0.63
|
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 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 | $ | 650 | $ | 810 | $ | 983 | $ | 1,486 | ||||||
| B | 658 | 890 | 1,045 | 1,638 | ||||||||||
| C | 259 | 493 | 850 | 1,856 | ||||||||||
| F-1 | 76 | 237 | 411 | 918 | ||||||||||
| F-2 | 53 | 167 | 291 | 653 | ||||||||||
| 529-A | 675 | 864 | 1,067 | 1,646 | ||||||||||
| 529-B | 687 | 956 | 1,149 | 1,828 | ||||||||||
| 529-C | 285 | 553 | 943 | 2,032 | ||||||||||
| 529-E | 135 | 398 | 680 | 1,477 | ||||||||||
| 529-F-1 | 84 | 241 | 410 | 892 | ||||||||||
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 | $ | 158 | $ | 490 | $ | 845 | $ | 1,638 | ||||||
| C | 159 | 493 | 850 | 1,856 | ||||||||||
| 529-B | 187 | 556 | 949 | 1,828 | ||||||||||
| 529-C | 185 | 553 | 943 | 2,032 | ||||||||||
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 29% of the
average value of its portfolio.
Principal
investment strategies
The fund invests
primarily in common stocks of U.S. companies that have solid long-term growth
records and the potential for good future growth.
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.
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 good, 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.
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.
Market risks
— The prices of
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.
Growth stock risks
— The
growth-oriented common stocks and other equity-type securities, such as
preferred stocks, convertible preferred stocks and convertible bonds, generally
purchased by the fund may involve large price swings and potential for
loss.
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. You should consider how this fund fits into your overall investment
program.
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 results. The Lipper
Multi-Cap Core Funds Index and the Lipper Growth Funds Index include mutual
funds that disclose investment objectives that are reasonably comparable to
those of the fund. The Lipper Multi-Cap Core Funds Index includes the fund. The
Consumer Price Index provides a comparison of the fund’s results to inflation.
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.
Highest/Lowest
quarterly results during this time period were:
Highest
18.62% (quarter
ended June 30, 2009)
Lowest
–22.53% (quarter
ended December 31, 2008)
The fund’s total
return for the three months ended March 31, 2010, was 5.72%.
|
Indexes
|
1
year
|
5
years
|
10
years
|
Lifetime
(from Class A
inception)
|
|
S&P
500
(reflects no
deductions for fees, expenses or taxes)
|
26.47%
|
0.42%
|
–0.95%
|
9.39%
|
|
Lipper
Multi-Cap Core Funds Index
(reflects no
deductions for fees or taxes)
|
35.30
|
1.41
|
0.66
|
9.16
|
|
Lipper Growth
Funds Index
(reflects no
deductions for fees or taxes)
|
35.91
|
0.02
|
–2.49
|
8.38
|
|
Consumer
Price Index
|
2.72
|
2.56
|
2.52
|
4.49
|
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.
Management
Investment
adviser
Capital Research
and Management Company
Portfolio
counselors
The primary
individual portfolio counselors for the fund are:
|
Portfolio
counselor/
Fund title
(if
applicable)
|
Portfolio
counselor
experience
in
this fund
|
Primary
title
with
investment adviser
|
|
Claudia
P. Huntington
Vice Chairman
of the Board
|
14
years
|
Senior Vice
President –
Capital
Research Global Investors
|
|
Timothy
D. Armour
President and
Trustee
|
14
years
|
Senior Vice
President –
Capital
Research Global Investors
|
|
Eric
S. Richter
Senior Vice
President
|
2
years
|
Vice
President –
Capital
Research Global Investors
|
|
Barry
S. Crosthwaite
Vice
President
|
4
years
|
Senior Vice
President –
Capital
Research Global Investors
|
|
C.
Ross Sappenfield
Vice
President
|
11
years
|
Senior Vice
President –
Capital
Research Global Investors
|
|
R.
Michael Shanahan
|
24
years
|
Chairman
Emeritus and Director –
Capital
Research and Management Company
|
| Purchase and sale of fund shares | |
|
Purchase
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 savings plan account
or employer-sponsored 529 account
|
25
|
|
To
add to an account
|
50
|
|
For a payroll
deduction retirement plan account, payroll deduction savings plan account
or employer-sponsored 529 account
|
25
|
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.
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, unless you or
your account is tax-exempt or tax-deferred.
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.
Investment
objective, strategies and risks
The fund’s
investment objective is to provide you with long-term growth of
capital.
The fund is
designed for investors seeking capital appreciation through investments in
stocks. Investors in the fund should have a long-term perspective and, for
example, be able to tolerate potentially sharp declines in
value.
The following
describes certain strategies that the investment adviser uses in pursuit of the
fund’s objective and the corresponding risks:
The fund invests
primarily in common stocks of U.S. companies that have solid long-term growth
records and the potential for good future growth. The fund’s investment adviser
focuses primarily on companies with attributes that are associated with
long-term growth, such as strong management, participation in a growing market
and a history of above-average growth in earnings, revenues, book value, cash
flow and/or return on assets. The prices of 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. The
growth-oriented common stocks and other equity-type securities, such as
preferred stocks, convertible preferred stocks and convertible bonds, generally
purchased by the fund may involve large price swings and potential for
loss.
The fund may invest
in common stocks and other securities of issuers domiciled outside the United
States to a limited extent. Investments in securities issued by entities based
outside the United States may be subject to the risks described above to a
greater extent. These investments 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.
Investments in securities issued by entities domiciled in the United States may
also be subject to many of 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 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 moderate the fund’s investment results 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.
In addition to the
investment strategies described above, the fund has other investment practices
that are described in the statement of additional information. You should
consider how this fund fits into your overall investment
program.
Additional
investment results
Unlike the table on
page 5, the table below reflects the fund’s results calculated without sales
charges.
|
Indexes
|
1
year
|
5
years
|
10
years
|
Lifetime
(from
Class A inception)
|
|
S&P
500
(reflects no
deductions for fees, expenses or taxes)
|
26.47%
|
0.42%
|
–0.95%
|
9.39%
|
|
Lipper
Multi-Cap Core Funds Index
(reflects no
deductions for fees or taxes)
|
35.30
|
1.41
|
0.66
|
9.16
|
|
Lipper Growth
Funds Index
(reflects no
deductions for fees or taxes)
|
35.91
|
0.02
|
–2.49
|
8.38
|
|
Consumer
Price Index
|
2.72
|
2.56
|
2.52
|
4.49
|
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 results. Standard &
Poor’s 500 Composite Index is a market capitalization-weighted index based on
the average weighted results of 500 widely held common stocks. 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. The Lipper Multi-Cap Core Funds Index is an equally weighted index of
funds that invest in a variety of market capitalization ranges without
concentrating 75% or more of their equity assets in any one market
capitalization range over an extended period of time. Multi-cap core funds
typically have an average price-to-earnings ratio, price-to-book ratio and
three-year sales-per-share growth value, compared with the S&P
SuperComposite 1500 Index (a broad-based index representing the large-cap,
mid-cap and small-cap segments of the U.S. equity market). The Lipper Growth
Funds Index is an equally weighted index of growth funds, as defined by each
fund’s related prospectus. The results of the underlying funds in the Lipper
Indexes include the reinvestment of dividends and capital gain distributions, as
well as brokerage commissions paid by the funds for portfolio transactions and
other fund expenses, but do not reflect the effect of sales charges or taxes.
Consumer Price Index (CPI) is a measure of the average change over time in the
prices paid by urban consumers for a market basket of consumer goods and
services. Widely used as a measure of inflation, the CPI is computed by the
U.S. Department of Labor, Bureau of Labor Statistics.
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.
Management
and organization
Investment
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 paid by the fund, as a percentage of average net assets, for the previous
fiscal year 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 August 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. 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.
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.
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.
|
Portfolio
counselor
|
Investment
experience
|
Experience
in
this fund
|
Role
in
management
of
the fund
|
|
Claudia
P. Huntington
|
Investment
professional for 37 years in total;
35 years
with Capital Research and Management Company or
affiliate
|
14
years
(plus 14
years of
prior
experience
as
an
investment
analyst
for the
fund)
|
Serves as an
equity portfolio counselor
|
|
Timothy
D. Armour
|
Investment
professional for 27 years, all with Capital Research and Management
Company or affiliate
|
14
years
(plus 7 years
of
prior
experience
as
an
investment
analyst
for the
fund)
|
Serves as an
equity portfolio counselor
|
|
Eric
S. Richter
|
Investment
professional for 18 years in total; 11 years with Capital
Research and Management Company or affiliate
|
2
years
|
Serves as an
equity portfolio counselor
|
|
Barry
S. Crosthwaite
|
Investment
professional for 14 years, all with Capital Research and Management
Company or affiliate
|
4
years
(plus 8 years
of
prior
experience
as
an
investment
analyst
for the
fund)
|
Serves as an
equity portfolio counselor
|
|
C.
Ross Sappenfield
|
Investment
professional for 18 years, all with Capital Research and Management
Company or affiliate
|
11
years
(plus 5 years
of
prior
experience
as
an
investment
analyst
for the
fund)
|
Serves as an
equity portfolio counselor
|
|
R.
Michael Shanahan
|
Investment
professional for 45 years, all with Capital Research and Management
Company or affiliate
|
24
years
|
Serves as an
equity portfolio counselor
|
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.
Shareholder
information
Shareholder
services
American Funds
Service Company
®
, 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.
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.
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
|
·
|
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.
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.
Purchase,
exchange and sale of shares
The
fund’s transfer agent, on behalf of the fund and American Funds
Distributors,
®
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
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.
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 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
®
;
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.
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
record-keepers, 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 7 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.
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. The fund will not calculate net asset values on days that the
New York Stock Exchange is closed for 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.
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.
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.
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.
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.
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.
|
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. Your accumulated holdings (as described in the previous
paragraph) 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
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.
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 70½ (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.
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 .25% 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 may cost you more
than paying other types of sales charges 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.
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 or investments. You should consult with your
financial adviser and review carefully any disclosure by your financial
adviser’s firm as to compensation received.
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).
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.
Distributions
and taxes
Dividends
and distributions
The fund intends to
distribute dividends to you, usually twice a year.
Capital gains, if
any, are usually distributed twice a year. 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
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.
Financial
highlights
The Financial
Highlights table is intended to help you understand the fund’s results for the
past five fiscal years. 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
(loss) from investment operations
1
|
Dividends
and distributions
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Net
asset
value,
beginning
of
period
|
Net
investment
income
(loss)
|
Net
gains
(losses) on
securities
(both
realized
and
unrealized)
|
Total from
investment operations
|
Dividends
(from net investment income)
|
Distributions
(from
capital
gains)
|
Total
dividends
and
distributions
|
Net
asset
value,
end
of
period
|
Total
return
2,3
|
Net
assets,
end
of
period
(in
millions)
|
Ratio of
expenses to average
net
assets
before
reim-bursements/
waivers
|
Ratio of
expenses to average net assets after reim-bursements/
waivers
3
|
Ratio
of net income
(loss) to average
net
assets
3
|
||||||||||||||||||||||||||||||||||||||||
|
Class
A:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2010
|
$ | 10.44 | $ | .08 | $ | 6.19 | $ | 6.27 | $ | (.16 | ) | $ | — | $ | (.16 | ) | $ | 16.55 | 60.46 | % | $ | 12,973 | .78 | % | .78 | % | .57 | % | ||||||||||||||||||||||||
|
Year ended
2/28/2009
|
18.41 | .16 | (7.43 | ) | (7.27 | ) | — | (.70 | ) | (.70 | ) | 10.44 | (40.97 | ) | 8,687 | .74 | .71 | 1.03 | ||||||||||||||||||||||||||||||||||
|
Year ended
2/29/2008
|
20.29 | .25 | (.77 | ) | (.52 | ) | (.24 | ) | (1.12 | ) | (1.36 | ) | 18.41 | (3.14 | ) | 16,387 | .68 | .65 | 1.21 | |||||||||||||||||||||||||||||||||
|
Year ended
2/28/2007
|
19.48 | .18 | 1.37 | 1.55 | (.16 | ) | (.58 | ) | (.74 | ) | 20.29 | 8.07 | 17,341 | .68 | .65 | .91 | ||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2006
|
18.02 | .12 | 1.82 | 1.94 | (.09 | ) | (.39 | ) | (.48 | ) | 19.48 | 10.87 | 16,091 | .68 | .65 | .66 | ||||||||||||||||||||||||||||||||||||
|
Class
B:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2010
|
9.98 | (.03 | ) | 5.93 | 5.90 | (.03 | ) | — | (.03 | ) | 15.85 | 59.16 | 632 | 1.55 | 1.55 | (.20 | ) | |||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2009
|
17.75 | .04 | (7.11 | ) | (7.07 | ) | — | (.70 | ) | (.70 | ) | 9.98 | (41.38 | ) | 499 | 1.50 | 1.48 | .26 | ||||||||||||||||||||||||||||||||||
|
Year ended
2/29/2008
|
19.59 | .09 | (.76 | ) | (.67 | ) | (.05 | ) | (1.12 | ) | (1.17 | ) | 17.75 | (3.92 | ) | 1,031 | 1.45 | 1.42 | .44 | |||||||||||||||||||||||||||||||||
|
Year ended
2/28/2007
|
18.83 | .02 | 1.32 | 1.34 | — | (.58 | ) | (.58 | ) | 19.59 | 7.23 | 1,163 | 1.46 | 1.42 | .13 | |||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2006
|
17.48 | (.02 | ) | 1.76 | 1.74 | — | (.39 | ) | (.39 | ) | 18.83 | 10.04 | 1,139 | 1.47 | 1.44 | (.13 | ) | |||||||||||||||||||||||||||||||||||
|
(The
Financial Highlights table continues on the following
page.)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Class
C:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2010
|
$ | 9.90 | $ | (.03 | ) | $ | 5.88 | $ | 5.85 | $ | (.03 | ) | $ | — | $ | (.03 | ) | $ | 15.72 | 59.18 | % | $ | 1,065 | 1.56 | % | 1.56 | % | (.21 | )% | |||||||||||||||||||||||
|
Year ended
2/28/2009
|
17.63 | .03 | (7.06 | ) | (7.03 | ) | — | (.70 | ) | (.70 | ) | 9.90 | (41.44 | ) | 736 | 1.52 | 1.49 | .24 | ||||||||||||||||||||||||||||||||||
|
Year ended
2/29/2008
|
19.46 | .08 | (.74 | ) | (.66 | ) | (.05 | ) | (1.12 | ) | (1.17 | ) | 17.63 | (3.93 | ) | 1,519 | 1.50 | 1.47 | .39 | |||||||||||||||||||||||||||||||||
|
Year ended
2/28/2007
|
18.72 | .01 | 1.31 | 1.32 | — | (.58 | ) | (.58 | ) | 19.46 | 7.16 | 1,667 | 1.51 | 1.48 | .07 | |||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2006
|
17.39 | (.03 | ) | 1.75 | 1.72 | — | (.39 | ) | (.39 | ) | 18.72 | 9.98 | 1,607 | 1.52 | 1.49 | (.18 | ) | |||||||||||||||||||||||||||||||||||
|
Class
F-1:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2010
|
10.39 | .09 | 6.16 | 6.25 | (.16 | ) | — | (.16 | ) | 16.48 | 60.46 | 1,421 | .74 | .74 | .61 | |||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2009
|
18.31 | .16 | (7.38 | ) | (7.22 | ) | — | (.70 | ) | (.70 | ) | 10.39 | (40.92 | ) | 1,077 | .70 | .67 | 1.06 | ||||||||||||||||||||||||||||||||||
|
Year ended
2/29/2008
|
20.20 | .25 | (.78 | ) | (.53 | ) | (.24 | ) | (1.12 | ) | (1.36 | ) | 18.31 | (3.19 | ) | 2,492 | .68 | .65 | 1.20 | |||||||||||||||||||||||||||||||||
|
Year ended
2/28/2007
|
19.40 | .18 | 1.36 | 1.54 | (.16 | ) | (.58 | ) | (.74 | ) | 20.20 | 8.06 | 2,506 | .68 | .65 | .90 | ||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2006
|
17.94 | .12 | 1.82 | 1.94 | (.09 | ) | (.39 | ) | (.48 | ) | 19.40 | 10.90 | 2,132 | .71 | .68 | .63 | ||||||||||||||||||||||||||||||||||||
|
Class
F-2:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2010
|
10.46 | .12 | 6.20 | 6.32 | (.18 | ) | — | (.18 | ) | 16.60 | 60.82 | 367 | .52 | .52 | .79 | |||||||||||||||||||||||||||||||||||||
|
Period from
8/1/2008 to 2/28/2009
4
|
16.52 | .10 | (6.16 | ) | (6.06 | ) | — | — | — | 10.46 | (36.68 | ) | 87 | .50 | 5 | .48 | 5 | 1.50 | 5 | |||||||||||||||||||||||||||||||||
|
Class
529-A:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2010
|
10.41 | .08 | 6.17 | 6.25 | (.17 | ) | — | (.17 | ) | 16.49 | 60.35 | 474 | .83 | .83 | .51 | |||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2009
|
18.36 | .15 | (7.40 | ) | (7.25 | ) | — | (.70 | ) | (.70 | ) | 10.41 | (40.97 | ) | 287 | .79 | .76 | .98 | ||||||||||||||||||||||||||||||||||
|
Year ended
2/29/2008
|
20.25 | .23 | (.78 | ) | (.55 | ) | (.22 | ) | (1.12 | ) | (1.34 | ) | 18.36 | (3.26 | ) | 467 | .76 | .73 | 1.12 | |||||||||||||||||||||||||||||||||
|
Year ended
2/28/2007
|
19.45 | .17 | 1.36 | 1.53 | (.15 | ) | (.58 | ) | (.73 | ) | 20.25 | 7.99 | 432 | .74 | .71 | .84 | ||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2006
|
17.99 | .11 | 1.82 | 1.93 | (.08 | ) | (.39 | ) | (.47 | ) | 19.45 | 10.85 | 339 | .75 | .72 | .60 | ||||||||||||||||||||||||||||||||||||
|
Class
529-B:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2010
|
10.00 | (.04 | ) | 5.93 | 5.89 | (.04 | ) | — | (.04 | ) | 15.85 | 59.02 | 72 | 1.64 | 1.64 | (.29 | ) | |||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2009
|
17.81 | .02 | (7.13 | ) | (7.11 | ) | — | (.70 | ) | (.70 | ) | 10.00 | (41.47 | ) | 48 | 1.60 | 1.57 | .17 | ||||||||||||||||||||||||||||||||||
|
Year ended
2/29/2008
|
19.65 | .06 | (.74 | ) | (.68 | ) | (.04 | ) | (1.12 | ) | (1.16 | ) | 17.81 | (3.99 | ) | 84 | 1.57 | 1.54 | .31 | |||||||||||||||||||||||||||||||||
|
Year ended
2/28/2007
|
18.91 | — | 6 | 1.32 | 1.32 | — | (.58 | ) | (.58 | ) | 19.65 | 7.09 | 84 | 1.57 | 1.54 | .01 | ||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2006
|
17.58 | (.05 | ) | 1.77 | 1.72 | — | (.39 | ) | (.39 | ) | 18.91 | 9.87 | 73 | 1.61 | 1.58 | (.27 | ) | |||||||||||||||||||||||||||||||||||
|
Class
529-C:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2010
|
$ | 10.00 | $ | (.04 | ) | $ | 5.95 | $ | 5.91 | $ | (.05 | ) | $ | — | $ | (.05 | ) | $ | 15.86 | 59.02 | % | $ | 134 | 1.63 | % | 1.63 | % | (.28 | )% | |||||||||||||||||||||||
|
Year ended
2/28/2009
|
17.82 | .03 | (7.15 | ) | (7.12 | ) | — | (.70 | ) | (.70 | ) | 10.00 | (41.44 | ) | 83 | 1.59 | 1.57 | .17 | ||||||||||||||||||||||||||||||||||
|
Year ended
2/29/2008
|
19.67 | .06 | (.74 | ) | (.68 | ) | (.05 | ) | (1.12 | ) | (1.17 | ) | 17.82 | (4.00 | ) | 144 | 1.57 | 1.54 | .31 | |||||||||||||||||||||||||||||||||
|
Year ended
2/28/2007
|
18.93 | — | 6 | 1.32 | 1.32 | — | (.58 | ) | (.58 | ) | 19.67 | 7.08 | 136 | 1.56 | 1.53 | .02 | ||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2006
|
17.59 | (.05 | ) | 1.78 | 1.73 | — | (.39 | ) | (.39 | ) | 18.93 | 9.92 | 110 | 1.59 | 1.56 | (.25 | ) | |||||||||||||||||||||||||||||||||||
|
Class
529-E:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2010
|
10.28 | .03 | 6.10 | 6.13 | (.13 | ) | — | (.13 | ) | 16.28 | 59.86 | 27 | 1.13 | 1.13 | .22 | |||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2009
|
18.20 | .10 | (7.32 | ) | (7.22 | ) | — | (.70 | ) | (.70 | ) | 10.28 | (41.17 | ) | 17 | 1.09 | 1.06 | .69 | ||||||||||||||||||||||||||||||||||
|
Year ended
2/29/2008
|
20.07 | .17 | (.76 | ) | (.59 | ) | (.16 | ) | (1.12 | ) | (1.28 | ) | 18.20 | (3.50 | ) | 27 | 1.06 | 1.03 | .82 | |||||||||||||||||||||||||||||||||
|
Year ended
2/28/2007
|
19.28 | .10 | 1.35 | 1.45 | (.08 | ) | (.58 | ) | (.66 | ) | 20.07 | 7.66 | 25 | 1.05 | 1.02 | .54 | ||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2006
|
17.85 | .05 | 1.80 | 1.85 | (.03 | ) | (.39 | ) | (.42 | ) | 19.28 | 10.46 | 20 | 1.08 | 1.05 | .27 | ||||||||||||||||||||||||||||||||||||
|
Class
529-F-1:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2010
|
10.43 | .11 | 6.18 | 6.29 | (.20 | ) | — | (.20 | ) | 16.52 | 60.70 | 20 | .63 | .63 | .72 | |||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2009
|
18.36 | .18 | (7.41 | ) | (7.23 | ) | — | (.70 | ) | (.70 | ) | 10.43 | (40.86 | ) | 12 | .59 | .56 | 1.18 | ||||||||||||||||||||||||||||||||||
|
Year ended
2/29/2008
|
20.26 | .27 | (.77 | ) | (.50 | ) | (.28 | ) | (1.12 | ) | (1.40 | ) | 18.36 | (3.07 | ) | 18 | .56 | .53 | 1.30 | |||||||||||||||||||||||||||||||||
|
Year ended
2/28/2007
|
19.46 | .20 | 1.37 | 1.57 | (.19 | ) | (.58 | ) | (.77 | ) | 20.26 | 8.20 | 14 | .55 | .52 | 1.04 | ||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2006
|
17.99 | .14 | 1.82 | 1.96 | (.10 | ) | (.39 | ) | (.49 | ) | 19.46 | 10.99 | 10 | .62 | .59 | .73 | ||||||||||||||||||||||||||||||||||||
|
Year
ended February 28 or 29
|
|||||
|
2010
|
2009
|
2008
|
2007
|
2006
|
|
|
Portfolio
turnover rate for all classes of shares
|
29%
|
37%
|
29%
|
20%
|
20%
|
|
1
|
Based on
average shares outstanding.
|
|
2
|
Total returns
exclude any applicable sales charges, including contingent deferred sales
charges.
|
|
3
|
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.
|
|
4
|
Based on
operations for the period shown and, accordingly, may not be
representative of a full year.
|
|
5
|
Annualized.
|
|
6
|
Amount less
than $.01.
|
|
|
|
|
For
shareholder services
|
American
Funds Service Company
800/421-0180
|
||
|
For
retirement plan services
|
Call your
employer or plan administrator
|
||
|
For
529 plans
|
American
Funds Service Company
800/421-0180,
ext. 529
|
||
|
For
24-hour information
|
American
FundsLine
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
®
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 333
South Hope Street, Los Angeles, California 90071.
Securities Investor
Protection Corporation (SIPC)
Shareholders may obtain
information about SIPC
®
on
its website at sipc.org or by calling 202/371-8300.
| MFGEPR-902-0510P Litho in USA CGD/RRD/8003 |
Investment
Company File No. 811-01435
|
||||
|
The
Capital Group Companies
|
|||||
|
American
Funds
|
Capital
Research and Management
|
Capital
International
|
Capital
Guardian
|
Capital Bank
and Trust
|
|
|
|
|
AMCAP
Fund
®
|
Class
A
R-1
R-2
|
Ticker
AMCPX
RAFAX
RAFBX
|
R-3
R-4
R-5
R-6
|
RAFCX
RAFEX
RAFFX
RAFGX
|
|
Retirement
plan prospectus
|
||||
|
May
1, 2010
|
||||
|
Table
of contents
|
||||
|
Investment
objective 1
Fees and
expenses of the fund 1
Principal
investment strategies 3
Principal
risks 3
Investment
results 4
Management
6
Purchase and
sale of fund shares 7
Tax
information 7
Payments to
broker-dealers and other
financial intermediaries
7
Investment
objective, strategies and risks 8
|
Additional
investment results 10
Management
and organization 12
Purchase,
exchange and sale of shares 15
Sales charges
19
Sales charge
reductions 21
Rollovers
from retirement plans to IRAs 23
Plans of
distribution 23
Other
compensation to dealers 24
Distributions
and taxes 25
Financial
highlights 26
|
|||
|
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.
|
||||
The fund’s
investment objective is to provide you with long-term growth of
capital.
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 58 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 purchases
(as a
percentage of offering price)
|
5.75%
|
none
|
|
Maximum
deferred sales charge (load)
(as a
percentage of the amount redeemed)
|
none
|
none
|
|
Maximum sales
charge (load) imposed
on reinvested
dividends
|
none
|
none
|
|
Redemption or
exchange fees
|
none
|
none
|
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 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 | $ | 650 | $ | 810 | $ | 983 | $ | 1,486 | ||||||
| R-1 | 156 | 483 | 834 | 1,824 | ||||||||||
| R-2 | 163 | 505 | 871 | 1,900 | ||||||||||
| R-3 | 110 | 343 | 595 | 1,317 | ||||||||||
| R-4 | 79 | 246 | 428 | 954 | ||||||||||
| R-5 | 48 | 151 | 263 | 591 | ||||||||||
| R-6 | 43 | 135 | 235 | 530 | ||||||||||
|
*
|
Estimated by
annualizing actual fees and expenses of the share class 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 29% of the
average value of its portfolio.
Principal
investment strategies
The fund invests
primarily in common stocks of U.S. companies that have solid long-term growth
records and the potential for good future growth.
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.
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 good, 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.
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.
Market risks
— The prices of
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.
Growth stock risks
— The
growth-oriented common stocks and other equity-type securities, such as
preferred stocks, convertible preferred stocks and convertible bonds, generally
purchased by the fund may involve large price swings and potential for
loss.
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. You should consider how this fund fits into your overall investment
program.
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 results. The Lipper
Multi-Cap Core Funds Index and the Lipper Growth Funds Index include mutual
funds that disclose investment objectives that are reasonably comparable to
those of the fund. The Lipper Multi-Cap Core Funds Index includes the fund. The
Consumer Price Index provides a comparison of the fund’s results to inflation.
This information provides some indication of the risks of investing in the fund.
Past results are not predictive of future results. Updated information on the
fund’s results can be obtained by visiting
americanfunds.com.
Highest/Lowest
quarterly results during this time period were:
Highest
18.62% (quarter
ended June 30, 2009)
Lowest
–22.53% (quarter
ended December 31, 2008)
The fund’s total
return for the three months ended March 31, 2010, was 5.72%.
| Average annual total returns | |||||
| For the periods ended December 31, 2009 (with maximum sales charge): | |||||
|
Share
class
|
Inception
date
|
1
year
|
5
years
|
10
years
|
Lifetime
|
|
A
|
5/1/1967
|
31.16%
|
0.42%
|
1.90%
|
11.10%
|
|
Indexes
|
1
year
|
5
years
|
10
years
|
Lifetime
(from Class A
inception)
|
|
S&P
500
(reflects no
deductions for fees, expenses or taxes)
|
26.47%
|
0.42%
|
–0.95%
|
9.39%
|
|
Lipper
Multi-Cap Core Funds Index
(reflects no
deductions for fees or taxes)
|
35.30
|
1.41
|
0.66
|
9.16
|
|
Lipper Growth
Funds Index
(reflects no
deductions for fees or taxes)
|
35.91
|
0.02
|
–2.49
|
8.38
|
|
Consumer
Price Index
|
2.72
|
2.56
|
2.52
|
4.49
|
Management
Investment
adviser
Capital Research
and Management Company
Portfolio
counselors
The primary
individual portfolio counselors for the fund are:
|
Portfolio
counselor/
Fund title
(if
applicable)
|
Portfolio
counselor
experience
in
this fund
|
Primary
title
with
investment adviser
|
|
Claudia
P. Huntington
Vice Chairman
of the Board
|
14
years
|
Senior Vice
President –
Capital
Research Global Investors
|
|
Timothy
D. Armour
President and
Trustee
|
14
years
|
Senior Vice
President –
Capital
Research Global Investors
|
|
Eric
S. Richter
Senior Vice
President
|
2
years
|
Vice
President –
Capital
Research Global Investors
|
|
Barry
S. Crosthwaite
Vice
President
|
4
years
|
Senior Vice
President –
Capital
Research Global Investors
|
|
C.
Ross Sappenfield
Vice
President
|
11
years
|
Senior Vice
President –
Capital
Research Global Investors
|
|
R.
Michael Shanahan
|
24
years
|
Chairman
Emeritus and Director –
Capital
Research and Management Company
|
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.
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.
Investment
objective, strategies and risks
The fund’s
investment objective is to provide you with long-term growth of
capital.
The fund is
designed for investors seeking capital appreciation through investments in
stocks. Investors in the fund should have a long-term perspective and, for
example, be able to tolerate potentially sharp declines in
value.
The following
describes certain strategies that the investment adviser uses in pursuit of the
fund’s objective and the corresponding risks:
The fund invests
primarily in common stocks of U.S. companies that have solid long-term growth
records and the potential for good future growth. The fund’s investment adviser
focuses primarily on companies with attributes that are associated with
long-term growth, such as strong management, participation in a growing market
and a history of above-average growth in earnings, revenues, book value, cash
flow and/or return on assets. The prices of 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. The
growth-oriented common stocks and other equity-type securities, such as
preferred stocks, convertible preferred stocks and convertible bonds, generally
purchased by the fund may involve large price swings and potential for
loss.
The fund may invest
in common stocks and other securities of issuers domiciled outside the United
States to a limited extent. Investments in securities issued by entities based
outside the United States may be subject to the risks described above to a
greater extent. These investments 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.
Investments in securities issued by entities domiciled in the United States may
also be subject to many of 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 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 moderate the fund’s investment results in a period of rising
market prices. A larger percentage of cash or money market instruments could
reduce the magnitude of the
In addition to the
investment strategies described above, the fund has other investment practices
that are described in the statement of additional information. You should
consider how this fund fits into your overall investment
program.
Additional
investment results
Unlike the table on
page 5, the table below reflects the fund’s results calculated without a sales
charge.
| Average annual total returns | |||||
| For the periods ended December 31, 2009 (without sales charge): | |||||
|
Share
class
|
Inception
date
|
1
year
|
5
years
|
10
years
|
Lifetime
|
|
A
|
5/1/1967
|
39.21%
|
1.62%
|
2.51%
|
11.25%
|
|
Indexes
|
1
year
|
5
years
|
10
years
|
Lifetime
(from
Class A
inception)
|
|
S&P
500
(reflects no
deductions for fees, expenses or taxes)
|
26.47%
|
0.42%
|
–0.95%
|
9.39%
|
|
Lipper
Multi-Cap Core Funds Index
(reflects no
deductions for fees or taxes)
|
35.30
|
1.41
|
0.66
|
9.16
|
|
Lipper Growth
Funds Index
(reflects no
deductions for fees or taxes)
|
35.91
|
0.02
|
–2.49
|
8.38
|
|
Consumer
Price Index
|
2.72
|
2.56
|
2.52
|
4.49
|
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 results. Standard &
Poor’s 500 Composite Index is a market capitalization-weighted index based on
the average weighted results of 500 widely held common stocks. 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. The
Lipper Multi-Cap Core Funds Index is an equally weighted index of funds that
invest in a variety of market capitalization ranges without concentrating 75% or
more of their equity assets in any one market capitalization range over an
extended period of time. Multi-cap core funds typically have an average
price-to-earnings ratio, price-to-book ratio and three-year sales-per-share
growth value, compared with the S&P SuperComposite 1500 Index (a broad-based
index representing the large-cap, mid-cap and small-cap segments of the U.S.
equity market). The Lipper Growth Funds Index is an equally weighted index of
growth funds, as defined by each fund’s related prospectus. The results of the
underlying funds in the Lipper Indexes include the reinvestment of dividends and
capital gain distributions, as well as brokerage commissions paid by the funds
for portfolio transactions and other fund expenses, but do not reflect the
effect of sales charges or taxes. Consumer Price Index (CPI) is a measure of the
average change over time in the prices paid by urban consumers for a market
basket
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.
Management
and organization
Investment
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 paid by the fund, as a percentage of average net assets, for the previous
fiscal year 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 August 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. 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.
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.
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.
|
Portfolio
counselor
|
Investment
experience
|
Experience
in
this fund
|
Role
in
management
of
the fund
|
|
Claudia
P. Huntington
|
Investment
professional for 37 years in total;
35 years
with Capital Research and Management Company or
affiliate
|
14
years
(plus 14
years of
prior
experience
as
an
investment
analyst
for the
fund)
|
Serves as an
equity portfolio counselor
|
|
Timothy
D. Armour
|
Investment
professional for 27 years, all with Capital Research and Management
Company or affiliate
|
14
years
(plus 7 years
of
prior
experience
as
an
investment
analyst
for the
fund)
|
Serves as an
equity portfolio counselor
|
|
Eric
S. Richter
|
Investment
professional for 18 years in total; 11 years with Capital
Research and Management Company or affiliate
|
2
years
|
Serves as an
equity portfolio counselor
|
|
Barry
S. Crosthwaite
|
Investment
professional for 14 years, all with Capital Research and Management
Company or affiliate
|
4
years
(plus 8 years
of
prior
experience
as
an
investment
analyst
for the
fund)
|
Serves as an
equity portfolio counselor
|
|
C.
Ross Sappenfield
|
Investment
professional for 18 years, all with Capital Research and Management
Company or affiliate
|
11
years
(plus 5 years
of
prior
experience
as
an
investment
analyst
for the
fund)
|
Serves as an
equity portfolio counselor
|
|
R.
Michael Shanahan
|
Investment
professional for 45 years, all with Capital Research and Management
Company or affiliate
|
24
years
|
Serves as an
equity portfolio counselor
|
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.
Purchase,
exchange and sale of shares
American
Funds Service Company, the fund’s transfer agent, on behalf of the fund and
American Funds Distributors,
®
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
®
or Recordkeeper Direct
®
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,
®
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.
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
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.
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
record-keepers, insurance company separate accounts and bank trust companies) to
apply their own procedures, provided that American Funds Service Company
believes the
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.
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. The fund will not calculate net asset values on days that the
New York Stock Exchange is closed for 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
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.
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.
Sub-transfer 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 affiliated entities
|
Payments
to unaffiliated entities
|
|
|
Class
A
|
.05% of
assets or
$12 per
participant position
1
|
.05% of
assets or
$12 per
participant position
1
|
|
Class
R-1
|
.10% of
assets
|
.10% of
assets
|
|
Class
R-2
|
.15% of
assets plus $27 per participant position
2
or .35% of assets
3
|
.25% of
assets
|
|
Class
R-3
|
.10% of
assets plus $12 per participant position
2
or .19% of assets
3
|
.15% of
assets
|
|
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.
|
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.
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.
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.
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).
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.
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. Your accumulated holdings (as described in the previous
paragraph) 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.
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. More information on Class C and F shares
can be found in the fund's 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 .25% 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
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 or investments. You should consult with your
financial adviser and review carefully any disclosure by your financial
adviser’s firm as to compensation received.
Distributions
and taxes
Dividends
and distributions
The fund intends to
distribute dividends to shareholders, usually twice a year.
Capital gains, if
any, are usually distributed twice a year. 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.
Financial
highlights
The Financial
Highlights table is intended to help you understand the fund’s results for the
past five fiscal years. 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
(loss) from investment operations
1
|
Dividends
and distributions
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Net asset
value, beginning
of
period
|
Net
investment
income
(loss)
|
Net
gains
(losses)
on
securities
(both
realized
and
unrealized)
|
Total from
investment operations
|
Dividends
(from net investment income)
|
Distributions
(from
capital
gains)
|
Total
dividends
and
distributions
|
Net
asset
value,
end
of
period
|
Total
return
2,3
|
Net
assets,
end
of
period
(in
millions)
|
Ratio of
expenses
to
average
net
assets
before
reim-
bursements/
waivers
|
Ratio of
expenses
to
average
net assets
after reim-bursements/
waivers
3
|
Ratio of net
income (loss) to average net assets
3
|
||||||||||||||||||||||||||||||||||||||||
|
Class
A:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2010
|
$ | 10.44 | $ | .08 | $ | 6.19 | $ | 6.27 | $ | (.16 | ) | $ | — | $ | (.16 | ) | $ | 16.55 | 60.46 | % | $ | 12,973 | .78 | % | .78 | % | .57 | % | ||||||||||||||||||||||||
|
Year ended
2/28/2009
|
18.41 | .16 | (7.43 | ) | (7.27 | ) | — | (.70 | ) | (.70 | ) | 10.44 | (40.97 | ) | 8,687 | .74 | .71 | 1.03 | ||||||||||||||||||||||||||||||||||
|
Year ended
2/29/2008
|
20.29 | .25 | (.77 | ) | (.52 | ) | (.24 | ) | (1.12 | ) | (1.36 | ) | 18.41 | (3.14 | ) | 16,387 | .68 | .65 | 1.21 | |||||||||||||||||||||||||||||||||
|
Year ended
2/28/2007
|
19.48 | .18 | 1.37 | 1.55 | (.16 | ) | (.58 | ) | (.74 | ) | 20.29 | 8.07 | 17,341 | .68 | .65 | .91 | ||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2006
|
18.02 | .12 | 1.82 | 1.94 | (.09 | ) | (.39 | ) | (.48 | ) | 19.48 | 10.87 | 16,091 | .68 | .65 | .66 | ||||||||||||||||||||||||||||||||||||
|
Class
R-1:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2010
|
10.09 | (.03 | ) | 6.00 | 5.97 | (.07 | ) | — | (.07 | ) | 15.99 | 59.14 | 40 | 1.53 | 1.53 | (.19 | ) | |||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2009
|
17.95 | .04 | (7.20 | ) | (7.16 | ) | — | (.70 | ) | (.70 | ) | 10.09 | (41.36 | ) | 24 | 1.48 | 1.45 | .29 | ||||||||||||||||||||||||||||||||||
|
Year ended
2/29/2008
|
19.80 | .08 | (.76 | ) | (.68 | ) | (.05 | ) | (1.12 | ) | (1.17 | ) | 17.95 | (3.93 | ) | 40 | 1.50 | 1.47 | .39 | |||||||||||||||||||||||||||||||||
|
Year ended
2/28/2007
|
19.04 | .02 | 1.32 | 1.34 | — | (.58 | ) | (.58 | ) | 19.80 | 7.14 | 43 | 1.50 | 1.47 | .09 | |||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2006
|
17.69 | (.03 | ) | 1.77 | 1.74 | — | (.39 | ) | (.39 | ) | 19.04 | 9.92 | 35 | 1.55 | 1.51 | (.19 | ) | |||||||||||||||||||||||||||||||||||
|
Class
R-2:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2010
|
10.08 | (.04 | ) | 5.98 | 5.94 | (.05 | ) | — | (.05 | ) | 15.97 | 59.02 | 383 | 1.60 | 1.60 | (.25 | ) | |||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2009
|
17.94 | .03 | (7.19 | ) | (7.16 | ) | — | (.70 | ) | (.70 | ) | 10.08 | (41.44 | ) | 238 | 1.59 | 1.57 | .17 | ||||||||||||||||||||||||||||||||||
|
Year ended
2/29/2008
|
19.79 | .08 | (.76 | ) | (.68 | ) | (.05 | ) | (1.12 | ) | (1.17 | ) | 17.94 | (3.95 | ) | 415 | 1.53 | 1.47 | .38 | |||||||||||||||||||||||||||||||||
|
Year ended
2/28/2007
|
19.03 | .02 | 1.32 | 1.34 | — | (.58 | ) | (.58 | ) | 19.79 | 7.15 | 427 | 1.59 | 1.46 | .09 | |||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2006
|
17.66 | (.03 | ) | 1.79 | 1.76 | — | (.39 | ) | (.39 | ) | 19.03 | 10.05 | 358 | 1.66 | 1.48 | (.17 | ) | |||||||||||||||||||||||||||||||||||
|
Class
R-3:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2010
|
$ | 10.29 | $ | .04 | $ | 6.11 | $ | 6.15 | $ | (.11 | ) | $ | — | $ | (.11 | ) | $ | 16.33 | 60.02 | % | $ | 541 | 1.08 | % | 1.08 | % | .27 | % | ||||||||||||||||||||||||
|
Year ended
2/28/2009
|
18.21 | .11 | (7.33 | ) | (7.22 | ) | — | (.70 | ) | (.70 | ) | 10.29 | (41.15 | ) | 349 | 1.05 | 1.02 | .70 | ||||||||||||||||||||||||||||||||||
|
Year ended
2/29/2008
|
20.08 | .18 | (.78 | ) | (.60 | ) | (.15 | ) | (1.12 | ) | (1.27 | ) | 18.21 | (3.51 | ) | 724 | 1.04 | 1.01 | .85 | |||||||||||||||||||||||||||||||||
|
Year ended
2/28/2007
|
19.28 | .11 | 1.35 | 1.46 | (.08 | ) | (.58 | ) | (.66 | ) | 20.08 | 7.68 | 747 | 1.04 | 1.01 | .55 | ||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2006
|
17.86 | .05 | 1.80 | 1.85 | (.04 | ) | (.39 | ) | (.43 | ) | 19.28 | 10.45 | 662 | 1.06 | 1.02 | .29 | ||||||||||||||||||||||||||||||||||||
|
Class
R-4
:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2010
|
10.40 | .08 | 6.16 | 6.24 | (.17 | ) | — | (.17 | ) | 16.47 | 60.42 | 378 | .77 | .77 | .57 | |||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2009
|
18.33 | .16 | (7.39 | ) | (7.23 | ) | — | (.70 | ) | (.70 | ) | 10.40 | (40.93 | ) | 252 | .73 | .70 | 1.04 | ||||||||||||||||||||||||||||||||||
|
Year ended
2/29/2008
|
20.22 | .24 | (.78 | ) | (.54 | ) | (.23 | ) | (1.12 | ) | (1.35 | ) | 18.33 | (3.22 | ) | 528 | .73 | .70 | 1.16 | |||||||||||||||||||||||||||||||||
|
Year ended
2/28/2007
|
19.42 | .17 | 1.35 | 1.52 | (.14 | ) | (.58 | ) | (.72 | ) | 20.22 | 7.97 | 555 | .73 | .70 | .85 | ||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2006
|
17.99 | .11 | 1.81 | 1.92 | (.10 | ) | (.39 | ) | (.49 | ) | 19.42 | 10.79 | 405 | .75 | .71 | .61 | ||||||||||||||||||||||||||||||||||||
|
Class
R-5:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2010
|
10.50 | .13 | 6.22 | 6.35 | (.21 | ) | — | (.21 | ) | 16.64 | 60.97 | 741 | .47 | .47 | .89 | |||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2009
|
18.45 | .20 | (7.45 | ) | (7.25 | ) | — | (.70 | ) | (.70 | ) | 10.50 | (40.77 | ) | 619 | .43 | .40 | 1.35 | ||||||||||||||||||||||||||||||||||
|
Year ended
2/29/2008
|
20.35 | .30 | (.77 | ) | (.47 | ) | (.31 | ) | (1.12 | ) | (1.43 | ) | 18.45 | (2.93 | ) | 787 | .43 | .40 | 1.43 | |||||||||||||||||||||||||||||||||
|
Year ended
2/28/2007
|
19.55 | .23 | 1.36 | 1.59 | (.21 | ) | (.58 | ) | (.79 | ) | 20.35 | 8.29 | 514 | .43 | .40 | 1.15 | ||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2006
|
18.07 | .17 | 1.83 | 2.00 | (.13 | ) | (.39 | ) | (.52 | ) | 19.55 | 11.19 | 359 | .44 | .41 | .90 | ||||||||||||||||||||||||||||||||||||
|
Class
R-6:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Period from
5/1/2009 to 2/28/2010
4
|
13.04 | .11 | 3.61 | 3.72 | (.16 | ) | — | (.16 | ) | 16.60 | 28.85 | 380 | .42 | 5 | .42 | 5 | .90 | 5 | ||||||||||||||||||||||||||||||||||
|
Year
ended February 28 or 29
|
|||||
|
2010
|
2009
|
2008
|
2007
|
2006
|
|
|
Portfolio
turnover rate for all classes of shares
|
29%
|
37%
|
29%
|
20%
|
20%
|
|
1
|
Based on
average shares outstanding.
|
|
2
|
Total returns
exclude any applicable sales
charges.
|
|
3
|
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. 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.
|
|
4
|
Based on
operations for the period shown and, accordingly, may not be
representative of a full
year.
|
|
5
|
Annualized.
|
Notes
Notes
|
|
|
|
For
shareholder services
|
American
Funds Service Company
800/421-0180
|
||
|
For
retirement plan services
|
Call your
employer or plan administrator
|
||
|
For
24-hour information
|
American
FundsLine
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.
|
|||
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 333 South Hope Street, Los Angeles, California
90071.
Securities Investor
Protection Corporation (SIPC)
Shareholders may obtain
information about SIPC
®
on
its website at sipc.org or by calling 202/371-8300.
| RPGEPR-902-0510P Litho in USA CGD/RRD/8027 |
Investment
Company File No. 811-01435
|
||||
|
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 RETIREMENT PLAN PROSPECTUS FOR THE FUND.
|
/s/
|
VINCENT P.
CORTI
|
VINCENT P.
CORTI
SECRETARY
|
|
|
AMCAP
Fund
®
|
Class
A
R-1
R-2
|
Ticker
AMCPX
RAFAX
RAFBX
|
R-3
R-4
R-5
R-6
|
RAFCX
RAFEX
RAFFX
RAFGX
|
|
Retirement
plan prospectus
|
||||
|
May
1, 2010
|
||||
|
Table
of contents
|
||||
|
Investment
objective 1
Fees and
expenses of the fund 1
Principal
investment strategies 3
Principal
risks 3
Investment
results 4
Management
6
Purchase and
sale of fund shares 7
Tax
information 7
Payments to
broker-dealers and other
financial intermediaries
7
Investment
objective, strategies and risks 8
|
Additional
investment results 10
Management
and organization 12
Purchase,
exchange and sale of shares 15
Sales charges
19
Sales charge
reductions 21
Rollovers
from retirement plans to IRAs 23
Plans of
distribution 23
Other
compensation to dealers 24
Distributions
and taxes 25
Financial
highlights 26
|
|||
|
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.
|
||||
The fund’s
investment objective is to provide you with long-term growth of
capital.
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 58 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 purchases
(as a
percentage of offering price)
|
5.75%
|
none
|
|
Maximum
deferred sales charge (load)
(as a
percentage of the amount redeemed)
|
none
|
none
|
|
Maximum sales
charge (load) imposed
on reinvested
dividends
|
none
|
none
|
|
Redemption or
exchange fees
|
none
|
none
|
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 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 | $ | 650 | $ | 810 | $ | 983 | $ | 1,486 | ||||||
| R-1 | 156 | 483 | 834 | 1,824 | ||||||||||
| R-2 | 163 | 505 | 871 | 1,900 | ||||||||||
| R-3 | 110 | 343 | 595 | 1,317 | ||||||||||
| R-4 | 79 | 246 | 428 | 954 | ||||||||||
| R-5 | 48 | 151 | 263 | 591 | ||||||||||
| R-6 | 43 | 135 | 235 | 530 | ||||||||||
|
*
|
Estimated by
annualizing actual fees and expenses of the share class 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 29% of the
average value of its portfolio.
Principal
investment strategies
The fund invests
primarily in common stocks of U.S. companies that have solid long-term growth
records and the potential for good future growth.
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.
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 good, 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.
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.
Market risks
— The prices of
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.
Growth stock risks
— The
growth-oriented common stocks and other equity-type securities, such as
preferred stocks, convertible preferred stocks and convertible bonds, generally
purchased by the fund may involve large price swings and potential for
loss.
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. You should consider how this fund fits into your overall investment
program.
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 results. The Lipper
Multi-Cap Core Funds Index and the Lipper Growth Funds Index include mutual
funds that disclose investment objectives that are reasonably comparable to
those of the fund. The Lipper Multi-Cap Core Funds Index includes the fund. The
Consumer Price Index provides a comparison of the fund’s results to inflation.
This information provides some indication of the risks of investing in the fund.
Past results are not predictive of future results. Updated information on the
fund’s results can be obtained by visiting
americanfunds.com.
Highest/Lowest
quarterly results during this time period were:
Highest
18.62% (quarter
ended June 30, 2009)
Lowest
–22.53% (quarter
ended December 31, 2008)
The fund’s total
return for the three months ended March 31, 2010, was 5.72%.
| Average annual total returns | |||||
| For the periods ended December 31, 2009 (with maximum sales charge): | |||||
|
Share
class
|
Inception
date
|
1
year
|
5
years
|
10
years
|
Lifetime
|
|
A
|
5/1/1967
|
31.16%
|
0.42%
|
1.90%
|
11.10%
|
|
Indexes
|
1
year
|
5
years
|
10
years
|
Lifetime
(from Class A
inception)
|
|
S&P
500
(reflects no
deductions for fees, expenses or taxes)
|
26.47%
|
0.42%
|
–0.95%
|
9.39%
|
|
Lipper
Multi-Cap Core Funds Index
(reflects no
deductions for fees or taxes)
|
35.30
|
1.41
|
0.66
|
9.16
|
|
Lipper Growth
Funds Index
(reflects no
deductions for fees or taxes)
|
35.91
|
0.02
|
–2.49
|
8.38
|
|
Consumer
Price Index
|
2.72
|
2.56
|
2.52
|
4.49
|
Management
Investment
adviser
Capital Research
and Management Company
Portfolio
counselors
The primary
individual portfolio counselors for the fund are:
|
Portfolio
counselor/
Fund title
(if
applicable)
|
Portfolio
counselor
experience
in
this fund
|
Primary
title
with
investment adviser
|
|
Claudia
P. Huntington
Vice Chairman
of the Board
|
14
years
|
Senior Vice
President –
Capital
Research Global Investors
|
|
Timothy
D. Armour
President and
Trustee
|
14
years
|
Senior Vice
President –
Capital
Research Global Investors
|
|
Eric
S. Richter
Senior Vice
President
|
2
years
|
Vice
President –
Capital
Research Global Investors
|
|
Barry
S. Crosthwaite
Vice
President
|
4
years
|
Senior Vice
President –
Capital
Research Global Investors
|
|
C.
Ross Sappenfield
Vice
President
|
11
years
|
Senior Vice
President –
Capital
Research Global Investors
|
|
R.
Michael Shanahan
|
24
years
|
Chairman
Emeritus and Director –
Capital
Research and Management Company
|
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.
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.
Investment
objective, strategies and risks
The fund’s
investment objective is to provide you with long-term growth of
capital.
The fund is
designed for investors seeking capital appreciation through investments in
stocks. Investors in the fund should have a long-term perspective and, for
example, be able to tolerate potentially sharp declines in
value.
The following
describes certain strategies that the investment adviser uses in pursuit of the
fund’s objective and the corresponding risks:
The fund invests
primarily in common stocks of U.S. companies that have solid long-term growth
records and the potential for good future growth. The fund’s investment adviser
focuses primarily on companies with attributes that are associated with
long-term growth, such as strong management, participation in a growing market
and a history of above-average growth in earnings, revenues, book value, cash
flow and/or return on assets. The prices of 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. The
growth-oriented common stocks and other equity-type securities, such as
preferred stocks, convertible preferred stocks and convertible bonds, generally
purchased by the fund may involve large price swings and potential for
loss.
The fund may invest
in common stocks and other securities of issuers domiciled outside the United
States to a limited extent. Investments in securities issued by entities based
outside the United States may be subject to the risks described above to a
greater extent. These investments 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.
Investments in securities issued by entities domiciled in the United States may
also be subject to many of 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 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 moderate the fund’s investment results in a period of rising
market prices. A larger percentage of cash or money market instruments could
reduce the magnitude of the
In addition to the
investment strategies described above, the fund has other investment practices
that are described in the statement of additional information. You should
consider how this fund fits into your overall investment
program.
Additional
investment results
Unlike the table on
page 5, the table below reflects the fund’s results calculated without a sales
charge.
| Average annual total returns | |||||
| For the periods ended December 31, 2009 (without sales charge): | |||||
|
Share
class
|
Inception
date
|
1
year
|
5
years
|
10
years
|
Lifetime
|
|
A
|
5/1/1967
|
39.21%
|
1.62%
|
2.51%
|
11.25%
|
|
Indexes
|
1
year
|
5
years
|
10
years
|
Lifetime
(from
Class A
inception)
|
|
S&P
500
(reflects no
deductions for fees, expenses or taxes)
|
26.47%
|
0.42%
|
–0.95%
|
9.39%
|
|
Lipper
Multi-Cap Core Funds Index
(reflects no
deductions for fees or taxes)
|
35.30
|
1.41
|
0.66
|
9.16
|
|
Lipper Growth
Funds Index
(reflects no
deductions for fees or taxes)
|
35.91
|
0.02
|
–2.49
|
8.38
|
|
Consumer
Price Index
|
2.72
|
2.56
|
2.52
|
4.49
|
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 results. Standard &
Poor’s 500 Composite Index is a market capitalization-weighted index based on
the average weighted results of 500 widely held common stocks. 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. The
Lipper Multi-Cap Core Funds Index is an equally weighted index of funds that
invest in a variety of market capitalization ranges without concentrating 75% or
more of their equity assets in any one market capitalization range over an
extended period of time. Multi-cap core funds typically have an average
price-to-earnings ratio, price-to-book ratio and three-year sales-per-share
growth value, compared with the S&P SuperComposite 1500 Index (a broad-based
index representing the large-cap, mid-cap and small-cap segments of the U.S.
equity market). The Lipper Growth Funds Index is an equally weighted index of
growth funds, as defined by each fund’s related prospectus. The results of the
underlying funds in the Lipper Indexes include the reinvestment of dividends and
capital gain distributions, as well as brokerage commissions paid by the funds
for portfolio transactions and other fund expenses, but do not reflect the
effect of sales charges or taxes. Consumer Price Index (CPI) is a measure of the
average change over time in the prices paid by urban consumers for a market
basket
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.
Management
and organization
Investment
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 paid by the fund, as a percentage of average net assets, for the previous
fiscal year 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 August 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. 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.
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.
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.
|
Portfolio
counselor
|
Investment
experience
|
Experience
in
this fund
|
Role
in
management
of
the fund
|
|
Claudia
P. Huntington
|
Investment
professional for 37 years in total;
35 years
with Capital Research and Management Company or
affiliate
|
14
years
(plus 14
years of
prior
experience
as
an
investment
analyst
for the
fund)
|
Serves as an
equity portfolio counselor
|
|
Timothy
D. Armour
|
Investment
professional for 27 years, all with Capital Research and Management
Company or affiliate
|
14
years
(plus 7 years
of
prior
experience
as
an
investment
analyst
for the
fund)
|
Serves as an
equity portfolio counselor
|
|
Eric
S. Richter
|
Investment
professional for 18 years in total; 11 years with Capital
Research and Management Company or affiliate
|
2
years
|
Serves as an
equity portfolio counselor
|
|
Barry
S. Crosthwaite
|
Investment
professional for 14 years, all with Capital Research and Management
Company or affiliate
|
4
years
(plus 8 years
of
prior
experience
as
an
investment
analyst
for the
fund)
|
Serves as an
equity portfolio counselor
|
|
C.
Ross Sappenfield
|
Investment
professional for 18 years, all with Capital Research and Management
Company or affiliate
|
11
years
(plus 5 years
of
prior
experience
as
an
investment
analyst
for the
fund)
|
Serves as an
equity portfolio counselor
|
|
R.
Michael Shanahan
|
Investment
professional for 45 years, all with Capital Research and Management
Company or affiliate
|
24
years
|
Serves as an
equity portfolio counselor
|
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.
Purchase,
exchange and sale of shares
American
Funds Service Company, the fund’s transfer agent, on behalf of the fund and
American Funds Distributors,
®
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
®
or Recordkeeper Direct
®
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,
®
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.
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
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.
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
record-keepers, insurance company separate accounts and bank trust companies) to
apply their own procedures, provided that American Funds Service Company
believes the
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.
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. The fund will not calculate net asset values on days that the
New York Stock Exchange is closed for 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
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.
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.
Sub-transfer 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 affiliated entities
|
Payments
to unaffiliated entities
|
|
|
Class
A
|
.05% of
assets or
$12 per
participant position
1
|
.05% of
assets or
$12 per
participant position
1
|
|
Class
R-1
|
.10% of
assets
|
.10% of
assets
|
|
Class
R-2
|
.15% of
assets plus $27 per participant position
2
or .35% of assets
3
|
.25% of
assets
|
|
Class
R-3
|
.10% of
assets plus $12 per participant position
2
or .19% of assets
3
|
.15% of
assets
|
|
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.
|
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.
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.
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.
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).
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.
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. Your accumulated holdings (as described in the previous
paragraph) 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.
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. More information on Class C and F shares
can be found in the fund's 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 .25% 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
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 or investments. You should consult with your
financial adviser and review carefully any disclosure by your financial
adviser’s firm as to compensation received.
Distributions
and taxes
Dividends
and distributions
The fund intends to
distribute dividends to shareholders, usually twice a year.
Capital gains, if
any, are usually distributed twice a year. 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.
Financial
highlights
The Financial
Highlights table is intended to help you understand the fund’s results for the
past five fiscal years. 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
(loss) from investment operations
1
|
Dividends
and distributions
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Net asset
value, beginning
of
period
|
Net
investment
income
(loss)
|
Net
gains
(losses)
on
securities
(both
realized
and
unrealized)
|
Total from
investment operations
|
Dividends
(from net investment income)
|
Distributions
(from
capital
gains)
|
Total
dividends
and
distributions
|
Net
asset
value,
end
of
period
|
Total
return
2,3
|
Net
assets,
end
of
period
(in
millions)
|
Ratio of
expenses
to
average
net
assets
before
reim-
bursements/
waivers
|
Ratio of
expenses
to
average
net assets
after reim-bursements/
waivers
3
|
Ratio of net
income (loss) to average net assets
3
|
||||||||||||||||||||||||||||||||||||||||
|
Class
A:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2010
|
$ | 10.44 | $ | .08 | $ | 6.19 | $ | 6.27 | $ | (.16 | ) | $ | — | $ | (.16 | ) | $ | 16.55 | 60.46 | % | $ | 12,973 | .78 | % | .78 | % | .57 | % | ||||||||||||||||||||||||
|
Year ended
2/28/2009
|
18.41 | .16 | (7.43 | ) | (7.27 | ) | — | (.70 | ) | (.70 | ) | 10.44 | (40.97 | ) | 8,687 | .74 | .71 | 1.03 | ||||||||||||||||||||||||||||||||||
|
Year ended
2/29/2008
|
20.29 | .25 | (.77 | ) | (.52 | ) | (.24 | ) | (1.12 | ) | (1.36 | ) | 18.41 | (3.14 | ) | 16,387 | .68 | .65 | 1.21 | |||||||||||||||||||||||||||||||||
|
Year ended
2/28/2007
|
19.48 | .18 | 1.37 | 1.55 | (.16 | ) | (.58 | ) | (.74 | ) | 20.29 | 8.07 | 17,341 | .68 | .65 | .91 | ||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2006
|
18.02 | .12 | 1.82 | 1.94 | (.09 | ) | (.39 | ) | (.48 | ) | 19.48 | 10.87 | 16,091 | .68 | .65 | .66 | ||||||||||||||||||||||||||||||||||||
|
Class
R-1:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2010
|
10.09 | (.03 | ) | 6.00 | 5.97 | (.07 | ) | — | (.07 | ) | 15.99 | 59.14 | 40 | 1.53 | 1.53 | (.19 | ) | |||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2009
|
17.95 | .04 | (7.20 | ) | (7.16 | ) | — | (.70 | ) | (.70 | ) | 10.09 | (41.36 | ) | 24 | 1.48 | 1.45 | .29 | ||||||||||||||||||||||||||||||||||
|
Year ended
2/29/2008
|
19.80 | .08 | (.76 | ) | (.68 | ) | (.05 | ) | (1.12 | ) | (1.17 | ) | 17.95 | (3.93 | ) | 40 | 1.50 | 1.47 | .39 | |||||||||||||||||||||||||||||||||
|
Year ended
2/28/2007
|
19.04 | .02 | 1.32 | 1.34 | — | (.58 | ) | (.58 | ) | 19.80 | 7.14 | 43 | 1.50 | 1.47 | .09 | |||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2006
|
17.69 | (.03 | ) | 1.77 | 1.74 | — | (.39 | ) | (.39 | ) | 19.04 | 9.92 | 35 | 1.55 | 1.51 | (.19 | ) | |||||||||||||||||||||||||||||||||||
|
Class
R-2:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2010
|
10.08 | (.04 | ) | 5.98 | 5.94 | (.05 | ) | — | (.05 | ) | 15.97 | 59.02 | 383 | 1.60 | 1.60 | (.25 | ) | |||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2009
|
17.94 | .03 | (7.19 | ) | (7.16 | ) | — | (.70 | ) | (.70 | ) | 10.08 | (41.44 | ) | 238 | 1.59 | 1.57 | .17 | ||||||||||||||||||||||||||||||||||
|
Year ended
2/29/2008
|
19.79 | .08 | (.76 | ) | (.68 | ) | (.05 | ) | (1.12 | ) | (1.17 | ) | 17.94 | (3.95 | ) | 415 | 1.53 | 1.47 | .38 | |||||||||||||||||||||||||||||||||
|
Year ended
2/28/2007
|
19.03 | .02 | 1.32 | 1.34 | — | (.58 | ) | (.58 | ) | 19.79 | 7.15 | 427 | 1.59 | 1.46 | .09 | |||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2006
|
17.66 | (.03 | ) | 1.79 | 1.76 | — | (.39 | ) | (.39 | ) | 19.03 | 10.05 | 358 | 1.66 | 1.48 | (.17 | ) | |||||||||||||||||||||||||||||||||||
|
Class
R-3:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2010
|
$ | 10.29 | $ | .04 | $ | 6.11 | $ | 6.15 | $ | (.11 | ) | $ | — | $ | (.11 | ) | $ | 16.33 | 60.02 | % | $ | 541 | 1.08 | % | 1.08 | % | .27 | % | ||||||||||||||||||||||||
|
Year ended
2/28/2009
|
18.21 | .11 | (7.33 | ) | (7.22 | ) | — | (.70 | ) | (.70 | ) | 10.29 | (41.15 | ) | 349 | 1.05 | 1.02 | .70 | ||||||||||||||||||||||||||||||||||
|
Year ended
2/29/2008
|
20.08 | .18 | (.78 | ) | (.60 | ) | (.15 | ) | (1.12 | ) | (1.27 | ) | 18.21 | (3.51 | ) | 724 | 1.04 | 1.01 | .85 | |||||||||||||||||||||||||||||||||
|
Year ended
2/28/2007
|
19.28 | .11 | 1.35 | 1.46 | (.08 | ) | (.58 | ) | (.66 | ) | 20.08 | 7.68 | 747 | 1.04 | 1.01 | .55 | ||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2006
|
17.86 | .05 | 1.80 | 1.85 | (.04 | ) | (.39 | ) | (.43 | ) | 19.28 | 10.45 | 662 | 1.06 | 1.02 | .29 | ||||||||||||||||||||||||||||||||||||
|
Class
R-4
:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2010
|
10.40 | .08 | 6.16 | 6.24 | (.17 | ) | — | (.17 | ) | 16.47 | 60.42 | 378 | .77 | .77 | .57 | |||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2009
|
18.33 | .16 | (7.39 | ) | (7.23 | ) | — | (.70 | ) | (.70 | ) | 10.40 | (40.93 | ) | 252 | .73 | .70 | 1.04 | ||||||||||||||||||||||||||||||||||
|
Year ended
2/29/2008
|
20.22 | .24 | (.78 | ) | (.54 | ) | (.23 | ) | (1.12 | ) | (1.35 | ) | 18.33 | (3.22 | ) | 528 | .73 | .70 | 1.16 | |||||||||||||||||||||||||||||||||
|
Year ended
2/28/2007
|
19.42 | .17 | 1.35 | 1.52 | (.14 | ) | (.58 | ) | (.72 | ) | 20.22 | 7.97 | 555 | .73 | .70 | .85 | ||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2006
|
17.99 | .11 | 1.81 | 1.92 | (.10 | ) | (.39 | ) | (.49 | ) | 19.42 | 10.79 | 405 | .75 | .71 | .61 | ||||||||||||||||||||||||||||||||||||
|
Class
R-5:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2010
|
10.50 | .13 | 6.22 | 6.35 | (.21 | ) | — | (.21 | ) | 16.64 | 60.97 | 741 | .47 | .47 | .89 | |||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2009
|
18.45 | .20 | (7.45 | ) | (7.25 | ) | — | (.70 | ) | (.70 | ) | 10.50 | (40.77 | ) | 619 | .43 | .40 | 1.35 | ||||||||||||||||||||||||||||||||||
|
Year ended
2/29/2008
|
20.35 | .30 | (.77 | ) | (.47 | ) | (.31 | ) | (1.12 | ) | (1.43 | ) | 18.45 | (2.93 | ) | 787 | .43 | .40 | 1.43 | |||||||||||||||||||||||||||||||||
|
Year ended
2/28/2007
|
19.55 | .23 | 1.36 | 1.59 | (.21 | ) | (.58 | ) | (.79 | ) | 20.35 | 8.29 | 514 | .43 | .40 | 1.15 | ||||||||||||||||||||||||||||||||||||
|
Year ended
2/28/2006
|
18.07 | .17 | 1.83 | 2.00 | (.13 | ) | (.39 | ) | (.52 | ) | 19.55 | 11.19 | 359 | .44 | .41 | .90 | ||||||||||||||||||||||||||||||||||||
|
Class
R-6:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Period from
5/1/2009 to 2/28/2010
4
|
13.04 | .11 | 3.61 | 3.72 | (.16 | ) | — | (.16 | ) | 16.60 | 28.85 | 380 | .42 | 5 | .42 | 5 | .90 | 5 | ||||||||||||||||||||||||||||||||||
|
Year
ended February 28 or 29
|
|||||
|
2010
|
2009
|
2008
|
2007
|
2006
|
|
|
Portfolio
turnover rate for all classes of shares
|
29%
|
37%
|
29%
|
20%
|
20%
|
|
1
|
Based on
average shares outstanding.
|
|
2
|
Total returns
exclude any applicable sales
charges.
|
|
3
|
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. 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.
|
|
4
|
Based on
operations for the period shown and, accordingly, may not be
representative of a full
year.
|
|
5
|
Annualized.
|
Notes
Notes
|
|
|
|
For
shareholder services
|
American
Funds Service Company
800/421-0180
|
||
|
For
retirement plan services
|
Call your
employer or plan administrator
|
||
|
For
24-hour information
|
American
FundsLine
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.
|
|||
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 333 South Hope Street, Los Angeles, California
90071.
Securities Investor
Protection Corporation (SIPC)
Shareholders may obtain
information about SIPC
®
on
its website at sipc.org or by calling 202/371-8300.
| RPGEPR-902-0510P Litho in USA CGD/RRD/8027 |
Investment
Company File No. 811-01435
|
||||
|
The
Capital Group Companies
|
|||||
|
American
Funds
|
Capital
Research and Management
|
Capital
International
|
Capital
Guardian
|
Capital Bank
and Trust
|
|
AMCAP
Fund
Part B
Statement of
Additional Information
May 1,
2010
This document is
not a prospectus but should be read in conjunction with the current prospectus
or retirement plan prospectus of AMCAP Fund (the “fund” or “AMCAP”) dated May 1,
2010. You may obtain a prospectus from your financial adviser or by writing to
the fund at the following address:
AMCAP
Fund
Attention:
Secretary
333 South Hope
Street
Los Angeles,
California 90071
213/486-9200
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.
|
Table
of Contents
|
|
|
Item
|
Page no.
|
|
Certain
investment limitations and guidelines
|
2
|
|
Description
of certain securities and investment techniques
|
3
|
|
Fund
policies
|
8
|
|
Management of
the fund
|
10
|
|
Execution of
portfolio transactions
|
38
|
|
Disclosure of
portfolio holdings
|
41
|
|
Price of
shares
|
43
|
|
Taxes and
distributions
|
46
|
|
Purchase and
exchange of shares
|
50
|
|
Sales
charges
|
55
|
|
Sales charge
reductions and waivers
|
58
|
|
Selling
shares
|
63
|
|
Shareholder
account services and privileges
|
64
|
|
General
information
|
67
|
|
Appendix
|
74
|
|
Investment
portfolio
|
|
|
Financial
statements
|
|
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.
General
guidelines
|
·
|
The fund will
invest primarily in stocks of companies domiciled in the United
States.
|
|
·
|
The fund may
invest up to 10% of its assets in securities of issuers domiciled outside
the United States.
|
|
·
|
The fund may
also invest in securities convertible into common stocks, straight debt
securities (i.e., not convertible into equity), cash or cash equivalents,
U.S. government securities or nonconvertible preferred
stocks.
|
Debt
securities
|
·
|
The fund may
invest in straight debt securities with an investment grade rating by
Standard & Poor’s Corporation or Moody’s Investors Service (or unrated
but considered to be of equivalent
quality).
|
* * * * * *
The fund may
experience difficulty liquidating certain portfolio securities during
significant market declines or periods of heavy redemptions.
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.
The
growth-oriented, equity-type securities generally purchased by the fund may
involve large price swings and potential for loss.
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.
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 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
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.
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.
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
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.
Investing outside the U.S. —
Investing outside the United States may involve 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. The fund may invest in securities of issuers in developing countries
only to a limited extent.
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.
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.
Page 5
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.
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.
4(2) commercial paper —
The
fund may purchase commercial paper issued pursuant to Section 4(2) of the
Securities Act of 1933 (the “1933 Act”). 4(2) commercial paper has substantially
the same price and liquidity characteristics as commercial paper generally,
except that the resale of 4(2) commercial paper is limited to the institutional
investor marketplace. Such a restriction on resale makes 4(2) commercial paper
technically a restricted security under the 1933 Act. In practice, however, 4(2)
commercial paper can be resold as easily as any other unrestricted security held
by the fund. Accordingly, 4(2) commercial paper has been determined to be liquid
under procedures adopted by the fund’s board of trustees.
* * * * * *
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. It may also
The fund’s
portfolio turnover rates for the fiscal years ended February 28, 2010 and 2009
were 29% and 37%, respectively. The portfolio turnover rate would equal 100% if
each security in a fund’s portfolio were replaced once per year. See “Financial
highlights” in the prospectus for the fund’s annual portfolio turnover rate for
each of the last five fiscal years.
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.
For purposes of
fundamental policy 1a, the fund may borrow money in amounts of up to 33⅓% 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 33⅓% 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, unless the fund has adopted a
policy allowing for such investments.
Management
of the fund
Board
of trustees and officers
“Independent”
trustees
1
The fund’s
nominating committee and board select independent trustees with a view toward
constituting a board that, as a body, possesses the qualifications, skills,
attributes and experience to appropriately oversee the actions of the fund’s
service providers, decide upon matters of general policy and represent the
long-term interests of fund shareholders. In doing so, they consider the
qualifications, skills, attributes and experience of the current board members
of the fund, with a view toward maintaining a board that is diverse in
viewpoint, experience, education and skills.
The fund seeks
independent trustees who have high ethical standards and the highest levels of
integrity and commitment, who have inquiring and independent minds, mature
judgment, good communication skills, and other complementary personal
qualifications and skills that enable them to function effectively in the
context of the fund’s board and committee structure and who have the ability and
willingness to dedicate sufficient time to effectively fulfill their duties and
responsibilities.
Each independent
trustee has a significant record of accomplishments in governance, business,
not-for-profit organizations, government service, academia, law, accounting or
other professions. Although no single list could identify all experience upon
which the fund’s independent trustees draw in connection with their service, the
following table summarizes key experience for each independent trustee. These
references to the qualifications, attributes and skills of the trustees are
pursuant to the disclosure requirements of the U.S. Securities and Exchange
Commission, and shall not be deemed to impose any greater responsibility or
liability on any trustee or the board as a whole. Notwithstanding the
accomplishments listed below, none of the independent trustees is considered an
“expert” within the meaning of the federal securities laws with respect to
information in the fund’s registration statement.
|
Name,
age and
position
with fund
(year
first elected
as
a trustee
2
)
|
Principal
occupation(s)
during
past five years
|
Number
of
portfolios
3
overseen
by
trustee
|
Other
directorships
4
held
by
trustee during past five years
|
Other
relevant experience
|
|
Louise H.
Bryson, 66
Trustee
(2010)
|
Chair of the
Board of Trustees, J. Paul Getty Trust; former President, Distribution,
Lifetime Entertainment Network; former Executive Vice President and
General Manager, Lifetime Movie Network
|
6
|
None
|
·
Service on advisory and trustee boards for charitable, educational
and non-profit organizations
·
M.B.A. and M.A.T.
|
|
Mary Anne
Dolan, 63
Chairman of
the Board (Independent and Non-Executive) (1998)
|
Founder and
President, MAD Ink (communications company)
|
9
|
None
|
·
Senior management and editorial experience with multiple newspaper
publishers and news service organizations
·
Service as director of writers conference
|
|
James G.
Ellis, 63
Trustee
(2010)
|
Dean and
Professor of Marketing, Marshall School of Business, University of
Southern California
|
41
|
Quiksilver,
Inc.; Former director of
Genius
Products (until 2008); Professional Business Bank(until
2007)
|
·
Service as chief executive officer for multiple
companies
·
Corporate board experience
·
Service on advisory and trustee boards for charitable, municipal
and non-profit organizations
·
M.B.A.
|
|
Martin
Fenton, 74
Trustee
(1990)
|
Chairman of
the Board, Senior Resource Group LLC (development and management of senior
living communities)
|
41
|
Capital Private
Client Services Funds
|
·
Service as chief executive officer of multiple
companies
|
|
Leonard R.
Fuller, 63
Trustee
(2010)
|
President and
CEO, Fuller Consulting (financial management consulting
firm)
|
41
|
None
|
·
Former partner, public accounting firm
·
Financial management consulting
·
Service on advisory and trustee boards for municipal, educational
and non-profit organizations
·
M.B.A.
|
|
William D.
Jones, 54
Trustee
(2006)
|
Real estate
developer/owner, President and CEO, CityLink 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)
|
6
|
Sempra
Energy; SouthWest Water Company
|
·
Senior investment and management experience, real
estate
·
Corporate board experience
·
Service as director, Federal Reserve Boards of San Francisco and
Los Angeles
·
Service on advisory and trustee boards for charitable, educational,
municipal and non-profit organizations
·
M.B.A.
|
|
L. Daniel
Jorndt, 68
Trustee
(2010)
|
Retired
|
3
|
Former
director of
Kellogg Co.
(until
2007)
|
·
Experience as a chief executive officer, drug store
chain
·
Corporate board experience
·
M.B.A.
|
|
William H.
Kling,
5,6
68
Trustee
(2006)
|
President and
CEO, American Public Media Group
|
9
|
Former
director of
Irwin
Financial
(until 2009);
Travelers
Corp.
(until
2005)
|
·
Service as chief executive officer, media and entertainment
company
·
Media and technology consultant
·
Corporate board experience
·
Service on advisory and trustee boards for charitable and
non-profit organizations
·
M.A.,mass communications
|
|
John G.
McDonald, 73
Trustee
(2010)
|
Stanford
Investors Professor, Graduate School of Business, Stanford
University
|
12
|
iStar
Financial, Inc.; Plum Creek Timber Co.;
QuinStreet,
Inc.;
Scholastic
Corporation;
Varian,
Inc.
|
·
Corporate board experience
·
Service on the Board of Governors of the National Association of
Securities Dealers (now FINRA)
·
Service as vice chairman of NASD/NASDAQ stock
market
·
M.B.A., Ph.D., economics
|
|
Bailey
Morris-Eck, 65
Trustee
(1999)
|
Director and
Programming Chair, WYPR Baltimore/Washington (public radio station);
Senior Adviser,
Financial News
(London); Senior Fellow, Institute for International Economics; former
Senior Associate and head of the Global Policy Initiative, Reuters
Foundation
|
3
|
None
|
·
Senior management experience, for multiple research
institutes
·
Service as senior adviser to the President’s Office of Economic
Policy and Summit Coordination
·
Service as economics correspondent for multiple newspaper
publishers
·
Service on advisory and trustee boards for charitable, educational,
journalistic, international relations, and non-profit
organizations
|
|
Olin C.
Robison, Ph.D., 73
Trustee
(1998)
|
Fellow, The
Oxford Centre for the Study of Christianity and Culture; Director, The
Oxford Project on Religion and Public Policy; President Emeritus of the
Salzburg Seminar; President Emeritus, Middlebury
College
|
3
|
American
Shared Hospital Services
|
·
Senior academic leadership positions for multiple
universities
·
Service on advisory and trustee boards for charitable, educational,
international relations and non-profit organizations
·
Ph.D., philosophy
|
|
Steven B.
Sample, Ph.D., 69
Trustee
(1999)
|
President,
University of Southern California
|
3
|
Intermec,
Inc.;
Former
director
William
Wrigley Jr. Co. (until 2008)
|
·
Senior academic leadership positions for multiple
universities
·
Professor, electrical engineering
·
Corporate board experience
·
Service on advisory and trustee boards for charitable, educational,
research and non-profit organizations
·
Ph.D, electrical
engineering
|
“Interested”
trustees
7,8
Interested trustees
have similar qualifications, skills and attributes as the independent trustees.
Interested trustees are senior executive officers of Capital Research and
Management Company or its affiliates. This management role with the fund’s
service providers also permits them to make a significant contribution to the
fund’s board.
|
Name,
age and
position
with fund
(year
first elected
as
a trustee/officer
2
)
|
Principal
occupation(s)
during
past five years
and
positions
held
with affiliated entities
or
the Principal Underwriter
of
the fund
|
Number
of
portfolios
3
overseen
by
trustee
|
Other
directorships
4
held
by
trustee during past five years
|
|
Claudia P.
Huntington, 58
Vice Chairman
of the Board (1992-1994) (1996)
|
Senior Vice
President – Capital Research Global Investors, Capital Research and
Management Company; Director, Capital Research and Management
Company
|
2
|
None
|
|
Timothy D.
Armour, 49
President and
Trustee
(1996)
|
President and
Director, Capital Research and Management Company; Senior Vice President –
Capital Research Global Investors, Capital Research and Management
Company; Director, The Capital Group Companies,
Inc.*
|
2
|
None
|
Other
officers
8
|
|
*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,
®
which is composed of 16
funds and serves as the underlying investment vehicle for certain variable
insurance contracts; American Funds Target Date Retirement Series,
®
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. Unless otherwise noted, all directorships are
current.
|
|
5
|
Gordon
Crawford (Senior Vice President, Capital Research Global Investors,
Capital Research and Management Company and Director, The Capital Group
Companies, Inc.) has been a trustee of Southern California Public Radio,
where Mr. Kling formerly served as a trustee and as Second Vice Chair
during 2008 and 2009.
|
|
6
|
Irwin
Financial Corporation filed a petition for liquidation under Chapter 7 of
the federal Bankruptcy Code on September 21, 2009. This action followed
the issuance of consent orders by relevant federal and state banking
authorities and the appointment of the Federal Deposit Insurance
Corporation as receiver for Irwin Financial Corporation’s two banking
subsidiaries.
|
|
7
|
“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).
|
|
8
|
All of the
officers listed, with the exception of Barry S. Crosthwaite and Eric S.
Richter, 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.
Fund
shares owned by trustees as of December 31, 2009:
|
Name
|
Dollar
range
1
of
fund
shares
owned
|
Aggregate
dollar
range
1
of
shares
owned
in
all
funds
in
the
American
Funds
family
overseen
by
trustee
|
Dollar
range
1
of
independent
trustees
deferred
compensation
2
allocated
to
fund
|
Aggregate
dollar
range
1
of
independent
trustees
deferred
compensation
2
allocated to
all
funds
within
American
Funds
family
overseen
by
trustee
|
|
“Independent”
trustees
|
||||
|
Louise H.
Bryson
3
|
Over
$100,000
|
Over
$100,000
|
N/A
|
Over
$100,000
|
|
Mary Anne
Dolan
|
Over
$100,000
|
Over
$100,000
|
N/A
|
N/A
|
|
James G.
Ellis
3
|
None
|
Over
$100,000
|
N/A
|
N/A
|
|
Martin
Fenton
|
Over
$100,000
|
Over
$100,000
|
Over
$100,000
|
Over
$100,000
|
|
Leonard R.
Fuller
3
|
$1 –
$10,000
|
$50,001 –
$100,000
|
$1 –
$10,000
|
Over
$100,000
|
|
William D.
Jones
|
$10,001 –
$50,000
|
Over
$100,000
|
$50,001 –
$100,000
|
Over
$100,000
|
|
L. Daniel
Jorndt
3
|
Over
$100,000
|
Over
$100,000
|
N/A
|
N/A
|
|
William H.
Kling
|
Over
$100,000
|
Over
$100,000
|
N/A
|
N/A
|
|
John G.
McDonald
3
|
$10,001 –
$50,000
|
Over
$100,000
|
N/A
|
N/A
|
|
Bailey
Morris-Eck
|
$1 –
$10,000
|
Over
$100,000
|
$50,001 –
$100,000
|
Over
$100,000
|
|
Olin C.
Robison
|
None
|
Over
$100,000
|
Over
$100,000
|
Over
$100,000
|
|
Steven B.
Sample
|
Over
$100,000
|
Over
$100,000
|
N/A
|
N/A
|
|
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.
|
|
3
|
Louise H.
Bryson, James G. Ellis, Leonard R. Fuller, L. Daniel Jorndt and John G.
McDonald were newly elected to the board effective January 1,
2010.
|
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 $13,125 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 and committee 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.
Trustee
compensation earned during the fiscal year ended February 28,
2010
|
Name
|
Aggregate
compensation
(including
voluntarily
deferred
compensation
1
)
from
the Fund
|
Total
compensation (including
voluntarily
deferred
compensation
1
)
from
all funds managed by
Capital
Research and
Management
Company
or its affiliates
2
|
|||||||
|
Louise H.
Bryson
3,4
|
$4,986
|
$179,215
|
|||||||
|
Mary Anne
Dolan
|
62,167
|
320,229
|
|||||||
|
James G.
Ellis
3,4
|
5,208
|
203,876
|
|||||||
|
Martin
Fenton
4
|
39,071
|
370,982
|
|||||||
|
Leonard R.
Fuller
3,4
|
5,008
|
310,428
|
|||||||
|
William D.
Jones
4
|
54,361
|
215,097
|
|||||||
|
L. Daniel
Jorndt
3,4
|
6,333
|
97,000
|
|||||||
|
William H.
Kling
|
46,178
|
345,507
|
|||||||
|
John G.
McDonald
3,4
|
3,250
|
335,375
|
|||||||
|
Bailey
Morris-Eck
4
|
49,083
|
180,250
|
|||||||
|
Olin C.
Robison
4
|
49,583
|
185,250
|
|||||||
|
Steven B.
Sample
|
59,500
|
128,000
|
|||||||
|
1
|
Amounts may
be deferred by eligible trustees under a nonqualified deferred
compensation plan adopted by the fund in 1993. 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 February 28, 2010 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,
®
which is composed of 16
funds and serves as the underlying investment vehicle for certain variable
insurance contracts; American Funds Target Date Retirement Series,
®
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
|
Louise H.
Bryson, James G. Ellis, Leonard R. Fuller, L. Daniel Jorndt and John G.
McDonald were newly elected to the board effective January 1,
2010.
|
|
4
|
Since the
deferred compensation plan’s adoption, the total amount of deferred
compensation accrued by the fund (plus earnings thereon) through the 2010
fiscal year for participating trustees is as follows: Louise H. Bryson
($4,903), Martin Fenton ($339,117), Leonard R. Fuller ($693), William D.
Jones ($58,218), L. Daniel Jorndt ($5,647), John G. McDonald ($2,639),
Bailey Morris-Eck ($293,867) and Olin C. Robison ($414,147). Amounts
deferred and accumulated earnings thereon are not funded and are general
unsecured liabilities of the fund until paid to the
trustees.
|
As of April 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 Delaware corporation in 1966, reorganized as a
Maryland corporation on May 10, 1990, and was reorganized as a Delaware
statutory trust on May 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.
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.
Leadership structure —
The
board’s chair is currently an independent trustee who is not an “interested
person” of the fund within the meaning of the 1940 Act. The board has determined
that an independent chair facilitates oversight and enhances the effectiveness
of the board. The independent chair’s duties include, without limitation,
generally presiding at meetings of the board, approving board meeting schedules
and agendas, leading meetings of the independent trustees in executive session,
facilitating communication with committee chairs, and serving as the principal
independent trustee contact for fund management and independent fund
counsel.
Risk oversight —
Day-to-day
management of the fund, including risk management, is the responsibility of the
fund’s contractual service providers, including the fund’s investment adviser,
principal underwriter/distributor
and transfer agent. Each of these entities are responsible for specific portions
of the fund’s operations, including the processes and associated risks relating
to the fund’s investments, integrity of cash movements, financial reporting,
operations and compliance. The board of trustees oversees the service providers’
discharge of their responsibilities, including the processes they use to manage
relevant risks. In that regard, the board receives reports
regarding
fund service providers’
operations,
including risks. For example, the board receives reports from investment
professionals regarding risks related to the
fund’s
investments and
trading. The board also receives
compliance reports from the fund’s and
the investment adviser’s chief compliance officers addressing certain areas of
risk.
Page
21
Committees of the
fund’s board, as well as joint committees of independent board members of funds
managed by Capital Research and Management Company, also explore risk management
procedures in particular areas and then report back to the full board. For
example, the fund’s audit committee oversees the processes and certain attendant
risks relating to financial reporting, valuation of fund assets, and related
controls.Similarly, a joint review and advisory committee oversees certain risk
controls relating to the fund’s transfer agency services.
Not all risks that
may affect the fund can be identified or processes and controls developed to
eliminate or mitigate their effect. Moreover, it is necessary to bear certain
risks (such as investment-related risks) to achieve the fund’s objectives. As a
result of the foregoing and other factors, the ability of the fund’s service
providers to eliminate or mitigate risks is subject to
limitations.
Committees of the board of trustees
—
The fund has an audit committee comprised of Mary Anne Dolan, James G.
Ellis, Leonard R. Fuller, William D. Jones, L. Daniel Jorndt, John G. McDonald
and Steven B. Sample, 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. Six audit committee meetings
were held during the 2010 fiscal year.
The fund has a
contracts committee comprised of Louise H. Bryson, Mary Anne Dolan, James G.
Ellis, Martin Fenton, Leonard R. Fuller, William D. Jones, L. Daniel Jorndt,
William H. Kling, John G. McDonald, Bailey Morris-Eck, Olin C. Robison and
Steven B. Sample, 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. One contracts committee meeting was held
during the 2010 fiscal year.
The fund has a
nominating committee comprised of Louise H. Bryson, Martin Fenton, William H.
Kling, Bailey Morris-Eck and Olin C. Robison, 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 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 2010 fiscal year.
Page
22
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 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.
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 April 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.
Omnibus
Account
Maryland
Heights, MO
|
Record
|
Class
A
Class
B
|
18.80%
8.04
|
|
First
Clearing, LLC
Custody
Account
St. Louis,
MO
|
Record
|
Class
A
Class
B
Class
C
Class
F-1
Class
R-1
|
7.80
8.45
10.58
5.22
5.93
|
|
Pershing,
LLC
Jersey City,
NJ
|
Record
|
Class
A
Class
B
Class
C
Class
F-1
Class
F-2
|
6.61
10.00
8.36
21.72
12.57
|
|
Merrill
Lynch
Omnibus
Account
Jacksonville,
FL
|
Record
|
Class
C
Class
F-2
Class
R-3
|
13.48
17.78
6.36
|
|
Citigroup
Global Markets, Inc.
Omnibus
Account
New York,
NY
|
Record
|
Class
C
Class
F-1
|
7.16
9.71
|
|
Charles
Schwab & Co., Inc.
Custody
Account
San
Francisco, CA
|
Record
|
Class
F-1
Class
F-2
Class
R-4
|
11.31
5.21
6.27
|
|
LPL
Financial
Omnibus
Account
San Diego,
CA
|
Record
|
Class
F-2
|
11.37
|
|
Capital
Guardian Trust Company
Capital Group
Private Client Services Account
Irvine,
CA
|
Record
Beneficial
|
Class
F-2
|
8.19
|
|
Hartford Life
Insurance Co. Separate Account
401K
Plan
Hartford,
CT
|
Record
Beneficial
|
Class
R-1
Class
R-3
|
33.35
7.35
|
|
Nationwide
Trust Company
Columbus,
OH
|
Record
|
Class
R-3
|
6.71
|
|
NFS, LLC
FEBO
Transamerica
Life Insurance
Los Angeles,
CA
|
Record
Beneficial
|
Class
R-3
|
5.90
|
|
Pilkington
North America
Retirement
Plan
Chicago,
IL
|
Record
Beneficial
|
Class
R-4
|
9.57
|
|
CenturyTel,
Inc.
401K
Plan
Owings Mills,
MD
|
Record
Beneficial
|
Class
R-4
|
6.54
|
|
NFS, LLC
FEBO
401K
Plan
Covington,
KY
|
Record
Beneficial
|
Class
R-5
|
34.34
|
|
Boehringer
Ingelheim Corporation
401K
Plan
Pittsburgh,
PA
|
Record
Beneficial
|
Class
R-5
|
13.90
|
|
American
Funds 2030 Target Date Retirement Fund
Norfolk,
VA
|
Record
|
Class
R-6
|
17.81
|
|
American
Funds 2025 Target Date Retirement Fund
Norfolk,
VA
|
Record
|
Class
R-6
|
15.14
|
|
American
Funds 2020 Target Date Retirement Fund
Norfolk,
VA
|
Record
|
Class
R-6
|
12.47
|
|
American
Funds 2035 Target Date Retirement Fund
Norfolk,
VA
|
Record
|
Class
R-6
|
11.45
|
|
American
Funds 2015 Target Date Retirement Fund
Norfolk,
VA
|
Record
|
Class
R-6
|
10.13
|
|
American
Funds 2040 Target Date Retirement Fund
Norfolk,
VA
|
Record
|
Class
R-6
|
9.73
|
|
American
Funds 2050 Target Date Retirement Fund
Norfolk,
VA
|
Record
|
Class
R-6
|
5.13
|
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
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 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.
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: S&P 500, the
securities that are eligible to be purchased by the fund and Lipper Growth 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.
The
following table reflects information as of February 28,
2010:
|
Portfolio
counselor
|
Dollar
range
of
fund
shares
owned
1
|
Number
of
other
registered
investment
companies
(RICs)
for
which
portfolio
counselor
is
a manager
(assets
of RICs
in
billions)
2
|
Number
of
other
pooled
investment
vehicles
(PIVs)
for
which
portfolio
counselor
is
a manager
(assets
of PIVs
in
billions)
3
|
Number
of
other
accounts
for
which
portfolio
counselor
is
a manager
(assets
of
other
accounts
in
billions)
4
|
|||
|
Claudia P.
Huntington
|
Over
$1,000,000
|
3
|
$
|
123.7
|
None
|
None
|
|
|
Timothy D.
Armour
|
$500,001 –
$1,000,000
|
2
|
$
|
83.8
|
None
|
None
|
|
|
Eric S.
Richter
|
Over
$1,000,000
|
1
|
$
|
77.3
|
1
|
$0.10
|
None
|
|
Barry S.
Crosthwaite
|
$100,001 –
$500,000
|
None
|
None
|
None
|
|||
|
C. Ross
Sappenfield
|
$100,001 –
$500,000
|
2
|
$
|
158.3
|
1
|
$0.10
|
None
|
|
R. Michael
Shanahan
|
Over
$1,000,000
|
2
|
$
|
75.3
|
None
|
None
|
|
|
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 March 31, 2011, 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 investment adviser and such
subsidiary. Any such subsidiary adviser will be paid solely by the investment
adviser out of its fees.
Page
28
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 Agreement
provides for monthly fees, accrued daily, based on the following annual rates
and net asset levels:
Net asset
level
|
Rate
|
In
excess of
|
Up
to
|
|||||
|
0.485%
|
$
|
0
|
$
|
1
billion
|
|||
|
0.385
|
1
billion
|
2
billion
|
|||||
|
0.355
|
2
billion
|
3
billion
|
|||||
|
0.335
|
3
billion
|
5
billion
|
|||||
|
0.320
|
5
billion
|
8
billion
|
|||||
|
0.310
|
8
billion
|
13
billion
|
|||||
|
0.300
|
13
billion
|
21
billion
|
|||||
|
0.295
|
21
billion
|
27
billion
|
|||||
|
0.290
|
27
billion
|
||||||
For the fiscal
years ended February 28, 2010 and 2009 and February 29, 2008, the
investment adviser was entitled to receive from the fund management fees of
$58,172,000, $65,646,000 and $85,798,000, respectively. After giving effect to
the management fee waivers described
For the period from
September 1, 2004 through March 31, 2005, the investment adviser agreed to waive
5% of the management fees that it was otherwise entitled to receive under the
Agreement. From April 1, 2005 through December 31, 2008, this waiver increased
to 10% of the management fees that the investment adviser was otherwise entitled
to receive. The waiver was discontinued effective January 1, 2009.
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 March 31, 2011, 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,
®
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.
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.
During the 2010
fiscal year, administrative services fees, gross of any payments made by the
investment adviser, were:
|
Administrative
services fee
|
||||
|
Class
C
|
$ | 1,763,000 | ||
|
Class
F-1
|
1,742,000 | |||
|
Class
F-2
|
351,000 | |||
|
Class
529-A
|
609,000 | |||
|
Class
529-B
|
110,000 | |||
|
Class
529-C
|
191,000 | |||
|
Class
529-E
|
35,000 | |||
|
Class
529-F-1
|
25,000 | |||
|
Class
R-1
|
60,000 | |||
|
Class
R-2
|
1,640,000 | |||
|
Class
R-3
|
1,057,000 | |||
|
Class
R-4
|
543,000 | |||
|
Class
R-5
|
651,000 | |||
|
Class
R-6
*
|
128,000 | |||
|
*
|
Class R-6 was first offered for
sale on May 1, 2009.
|
Principal Underwriter and plans of
distribution —
American Funds Distributors,® 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.
|
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:
|
Fiscal
year
|
Commissions,
revenue
or
fees retained
|
Allowance
or
compensation
to
dealers
|
||||||
|
Class
A
|
2010
|
$3,691,000
|
$16,405,000
|
|||||
|
2009
|
4,517,000
|
19,541,000
|
||||||
|
2008
|
7,518,000
|
32,650,000
|
||||||
|
Class
B
|
2010
|
50,000
|
150,000
|
|||||
|
2009
|
181,000
|
1,442,000
|
||||||
|
2008
|
385,000
|
2,391,000
|
||||||
|
Class
C
|
2010
|
19,000
|
822,000
|
|||||
|
2009
|
519,000
|
937,000
|
||||||
|
2008
|
386,000
|
2,091,000
|
||||||
|
Class
529-A
|
2010
|
284,000
|
1,349,000
|
|||||
|
2009
|
316,000
|
1,502,000
|
||||||
|
2008
|
491,000
|
2,276,000
|
||||||
|
Class
529-B
|
2010
|
9,000
|
20,000
|
|||||
|
2009
|
28,000
|
217,000
|
||||||
|
2008
|
45,000
|
312,000
|
||||||
|
Class
529-C
|
2010
|
—
|
143,000
|
|||||
|
2009
|
37,000
|
155,000
|
||||||
|
2008
|
17,000
|
272,000
|
||||||
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.
Page
32
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 0.25% 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:
|
Share
class
|
Service
related
payments
1
|
Distribution
related
payments
1
|
Total
allowable
under
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
|
|
|
1
|
Amounts in
these columns represent the amounts approved by the board of trustees
under the applicable Plan.
|
|
|
2
|
The fund may
annually expend the amounts set forth in this column under the current
Plans with the approval of the board of
trustees.
|
During the 2010
fiscal year, 12b-1 expenses accrued and paid, and if applicable, unpaid,
were:
|
12b-1
expenses
|
12b-1
unpaid liability
outstanding
|
|||
|
Class
A
|
$26,507,000
|
$5,458,000
|
||
|
Class
B
|
6,244,000
|
725,000
|
||
|
Class
C
|
9,745,000
|
2,116,000
|
||
|
Class
F-1
|
3,208,000
|
816,000
|
||
|
Class
529-A
|
848,000
|
204,000
|
||
|
Class
529-B
|
655,000
|
85,000
|
||
|
Class
529-C
|
1,167,000
|
287,000
|
||
|
Class
529-E
|
119,000
|
31,000
|
||
|
Class
529-F-1
|
–
|
–
|
||
|
Class
R-1
|
343,000
|
99,000
|
||
|
Class
R-2
|
2,555,000
|
678,000
|
||
|
Class
R-3
|
2,424,000
|
605,000
|
||
|
Class
R-4
|
922,000
|
206,000
|
||
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.
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.
|
|
|
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
|
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.
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.
Page
38
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 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
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 years ended February 28, 2010 and 2009, and February 29, 2008 amounted to
$8,051,000, $10,834,000 and $9,126,000, respectively. The volume of trading
activity decreased during the year, resulting in a decrease in brokerage
commissions paid on portfolio transactions.
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 did not have investments in securities
of any of its regular broker-dealers.
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.
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
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 generally 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, including short-term securities purchased with more than 60 days
left to maturity, are generally valued at prices obtained as of approximately 3
p.m. from one or more independent pricing vendors. The pricing vendors base bond
prices on, among other things, benchmark yields, transactions, bids, offers,
quotations from dealers and trading systems, new issues, underlying equity of
the issuer, interest rate volatilities, spreads and other relationships observed
in the markets among comparable securities and proprietary pricing models such
as yield measures calculated using factors such as cash flows, prepayment
information, default rates, delinquency and loss assumptions, financial or
collateral characteristics or performance,
credit enhancements, liquidation
value calculations, specific deal information and other reference data. The
fund’s investment adviser performs certain checks on these prices prior to
calculation of the fund’s net asset value. 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.
Page
43
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 generally 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
other assets for which representative market quotations are not readily
available or are considered unreliable by the investment adviser 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).
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 then 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.
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.
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
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.
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.
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
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 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.
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.
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
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.
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
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 —
The Principal Underwriter will not knowingly sell shares of the fund directly or
indirectly to any person or entity, where, after the sale, such person or entity
would own beneficially directly or indirectly more than 3.0% of the
outstanding shares of the fund without the consent of a majority of the fund’s
board.
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:
|
|
·
|
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 Capital Group Private Client Services
division.
|
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.
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52
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. Notwithstanding the previous sentence, you can
exchange Class F shares received in a conversion from Class C shares for Class A
shares at any time without paying an initial Class A sales charge if you notify
American Funds Service Company of the conversion when you make 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
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.
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.
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:
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(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;
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(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 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;
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(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;
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(4)companies
exchanging securities with the fund through a merger, acquisition or
exchange offer;
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(5)insurance
company separate accounts;
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(6)accounts
managed by subsidiaries of The Capital Group Companies,
Inc.;
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(7)The
Capital Group Companies, Inc., its affiliated companies and Washington
Management Corporation;
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(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;
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(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
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(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.
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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.
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:
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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;
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required
minimum distributions from an IRA or other individual-type retirement
account used to purchase fund shares in a non-retirement account;
and
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death
distributions paid to a beneficiary’s account that are used by the
beneficiary to purchase fund shares in a different
account.
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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.
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. Your accumulated holdings (as described in the
paragraph titled “Rights of accumulation”) eligible to be aggregated 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
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.
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58
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:
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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);
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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.;
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business
accounts solely controlled by you or your immediate family (for example,
you own the entire business);
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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 );
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endowments or
foundations established and controlled by you or your immediate family;
or
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529 accounts,
which will be aggregated at the account owner level (Class 529-E accounts
may only be aggregated with an eligible employer
plan).
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Individual
purchases by a trustee(s) or other fiduciary(ies) may also be aggregated if the
investments are:
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for a single
trust estate or fiduciary account, including employee benefit plans other
than the individual-type employee benefit plans described
above;
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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;
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for a
diversified common trust fund or other diversified pooled account not
specifically formed for the purpose of accumulating fund
shares;
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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;
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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
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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.
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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.
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”):
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Required
minimum distributions taken from retirement accounts upon the
shareholder’s attainment of age 70½ (required minimum distributions that
continue to be taken by the beneficiary(ies) after the account owner is
deceased also qualify for a
waiver).
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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 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.
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For purposes of
this paragraph, “account” means:
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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);
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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
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in the case
of Class C shares, your investment in Class C shares of the particular
fund from which you are making the
redemption.
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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.
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.
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.
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™ 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.
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.
Page
65
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.
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
$20,766,000 for Class A shares and $1,103,000 for Class B shares, respectively,
for the 2010 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 —
O’Melveny & Myers LLP, 400 South Hope Street, Los Angeles, CA 90071,
serves as independent legal counsel (“counsel”) for the fund and for independent
trustees in their capacities as such. Certain legal matters in connection with
the shares offered by the prospectus have been passed upon for the fund by
O'Melveny & Myers LLP. 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 the last day of
February. 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
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.
Page
67
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.
Determination
of net asset value, redemption price and maximum offering price per share for
Class A shares — February 28, 2010
|
Net asset
value and redemption price per share
(Net assets
divided by shares outstanding)
|
$16.55
|
|
|
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)
|
$17.56
|
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.
Fund numbers — Here
are the fund numbers for use with our automated telephone line, American
FundsLine
®
, 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
®
|
002
|
202
|
302
|
402
|
602
|
||||||
|
American
Balanced Fund
®
|
011
|
211
|
311
|
411
|
611
|
||||||
|
American
Mutual Fund
®
|
003
|
203
|
303
|
403
|
603
|
||||||
|
Capital
Income Builder
®
|
012
|
212
|
312
|
412
|
612
|
||||||
|
Capital World
Growth and Income
Fund
SM
|
033
|
233
|
333
|
433
|
633
|
||||||
|
EuroPacific
Growth Fund
®
|
016
|
216
|
316
|
416
|
616
|
||||||
|
Fundamental
Investors
SM
|
010
|
210
|
310
|
410
|
610
|
||||||
|
The Growth
Fund of America
SM
|
005
|
205
|
305
|
405
|
605
|
||||||
|
The Income
Fund of America
®
|
006
|
206
|
306
|
406
|
606
|
||||||
|
International
Growth and Income
Fund
SM
|
034
|
234
|
334
|
434
|
634
|
||||||
|
The
Investment Company of America
®
|
004
|
204
|
304
|
404
|
604
|
||||||
|
The New
Economy Fund
®
|
014
|
214
|
314
|
414
|
614
|
||||||
|
New
Perspective Fund
®
|
007
|
207
|
307
|
407
|
607
|
||||||
|
New World
Fund
SM
|
036
|
236
|
336
|
436
|
636
|
||||||
|
SMALLCAP
World Fund
®
|
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
®
|
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
®
|
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
®
|
019
|
219
|
319
|
419
|
619
|
||||||
|
The
Tax-Exempt Fund of California
®
*
|
020
|
220
|
320
|
420
|
620
|
||||||
|
The
Tax-Exempt Fund of Maryland
®
*
|
024
|
224
|
324
|
424
|
624
|
||||||
|
The
Tax-Exempt Fund of Virginia
®
*
|
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.
|
|
Fund
numbers
|
|||||||||||
|
Fund
|
Class
529-A
|
Class
529-B
|
Class
529-C
|
Class
529-E
|
Class
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
|
||||||
|
Fund
numbers
|
|||||||||||||
|
Fund
|
Class
R-1
|
Class
R-2
|
Class
R-3
|
Class
R-4
|
Class
R-5
|
Class
R-6
|
|||||||
|
Stock
and stock/bond funds
|
|||||||||||||
|
AMCAP
Fund
|
2102
|
2202
|
2302
|
2402
|
2502
|
2502
|
|||||||
|
American
Balanced Fund
|
2111
|
2211
|
2311
|
2411
|
2511
|
2511
|
|||||||
|
American
Mutual Fund
|
2103
|
2203
|
2303
|
2403
|
2503
|
2503
|
|||||||
|
Capital
Income Builder
|
2112
|
2212
|
2312
|
2412
|
2512
|
2512
|
|||||||
|
Capital World
Growth and Income
Fund
|
2133
|
2233
|
2333
|
2433
|
2533
|
2533
|
|||||||
|
EuroPacific
Growth Fund
|
2116
|
2216
|
2316
|
2416
|
2516
|
2516
|
|||||||
|
Fundamental
Investors
|
2110
|
2210
|
2310
|
2410
|
2510
|
2510
|
|||||||
|
The Growth
Fund of America
|
2105
|
2205
|
2305
|
2405
|
2505
|
2505
|
|||||||
|
The Income
Fund of America
|
2106
|
2206
|
2306
|
2406
|
2506
|
2506
|
|||||||
|
International
Growth and Income
Fund
|
2134
|
2234
|
2334
|
2434
|
2534
|
2534
|
|||||||
|
The
Investment Company of America
|
2104
|
2204
|
2304
|
2404
|
2504
|
2504
|
|||||||
|
The New
Economy Fund
|
2114
|
2214
|
2314
|
2414
|
2514
|
2514
|
|||||||
|
New
Perspective Fund
|
2107
|
2207
|
2307
|
2407
|
2507
|
2507
|
|||||||
|
New World
Fund
|
2136
|
2236
|
2336
|
2436
|
2536
|
2536
|
|||||||
|
SMALLCAP
World Fund
|
2135
|
2235
|
2335
|
2435
|
2535
|
2535
|
|||||||
|
Washington
Mutual Investors Fund
|
2101
|
2201
|
2301
|
2401
|
2501
|
2501
|
|||||||
|
Bond
funds
|
|||||||||||||
|
American
High-Income Trust
|
2121
|
2221
|
2321
|
2421
|
2521
|
2521
|
|||||||
|
The Bond Fund
of America
|
2108
|
2208
|
2308
|
2408
|
2508
|
2508
|
|||||||
|
Capital World
Bond Fund
|
2131
|
2231
|
2331
|
2431
|
2531
|
2531
|
|||||||
|
Intermediate
Bond Fund of America
|
2123
|
2223
|
2323
|
2423
|
2523
|
2523
|
|||||||
|
Short-Term
Bond Fund of America
|
2148
|
2248
|
2348
|
2448
|
2548
|
2548
|
|||||||
|
U.S.
Government Securities Fund
|
2122
|
2222
|
2322
|
2422
|
2522
|
2522
|
|||||||
|
Money
market fund
|
|||||||||||||
|
American
Funds Money Market Fund
|
2159
|
2259
|
2359
|
2459
|
2559
|
2659
|
|||||||
|
|
___________
|
|
|
*Qualified
for sale only in certain
jurisdictions.
|
|
Fund
numbers
|
||||||||||||||
|
Fund
|
Class
A
|
Class
R-1
|
Class
R-2
|
Class
R-3
|
Class
R-4
|
Class
R-5
|
Class
R-6
|
|||||||
|
Stock
and stock/bond funds
|
||||||||||||||
|
American
Funds 2055 Target Date
Retirement
Fund
SM
|
082
|
2182
|
2282
|
2382
|
2482
|
2582
|
2682
|
|||||||
|
American
Funds 2050 Target Date
Retirement
Fund
®
|
069
|
2169
|
2269
|
2369
|
2469
|
2569
|
2669
|
|||||||
|
American
Funds 2045 Target Date
Retirement
Fund
®
|
068
|
2168
|
2268
|
2368
|
2468
|
2568
|
2668
|
|||||||
|
American
Funds 2040 Target Date
Retirement
Fund
®
|
067
|
2167
|
2267
|
2367
|
2467
|
2567
|
2667
|
|||||||
|
American
Funds 2035 Target Date
Retirement
Fund
®
|
066
|
2166
|
2266
|
2366
|
2466
|
2566
|
2666
|
|||||||
|
American
Funds 2030 Target Date
Retirement
Fund
®
|
065
|
2165
|
2265
|
2365
|
2465
|
2565
|
2665
|
|||||||
|
American
Funds 2025 Target Date
Retirement
Fund
®
|
064
|
2164
|
2264
|
2364
|
2464
|
2564
|
2664
|
|||||||
|
American
Funds 2020 Target Date
Retirement
Fund
®
|
063
|
2163
|
2263
|
2363
|
2463
|
2563
|
2663
|
|||||||
|
American
Funds 2015 Target Date
Retirement
Fund
®
|
062
|
2162
|
2262
|
2362
|
2462
|
2562
|
2662
|
|||||||
|
American
Funds 2010 Target Date
Retirement
Fund
®
|
061
|
2161
|
2261
|
2361
|
2461
|
2561
|
2661
|
|||||||
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.
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.
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.
[logo
– American Funds®]
AMCAP Fund
®
Investment
portfolio
February 28,
2010
"Miscellaneous"
securities include holdings in their initial period of acquisition that have not
previously been publicly disclosed.
1
Security
did not produce income during the last 12 months.
2
Represents
an affiliated company as defined under the Investment Company Act of
1940.
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
$390,145,000, which represented 1.99% of the net assets of the
fund.
Investments
are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any
other entity, so you may lose money.
Investors
should carefully consider the investment objectives, risks, charges and expenses
of the American Funds. This and other important information is contained in the
fund’s summary prospectus and prospectus, which can be obtained from your
financial professional and should be read carefully before investing. You may
also call American Funds Service Company (AFS) at 800/421-0180 or visit the
American Funds website at americanfunds.com.
MFGEFP-902-0410O-S21507
The following summary investment
portfolio is designed to streamline the report and help investors better focus
on a fund’s principal holdings. See the inside back cover for details on how to
obtain a complete schedule of portfolio holdings.
Industry sector diversification
(percent of net assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stocks
— 91.89%
|
|
Shares
|
|
Value
(000) |
|
Percent of
net assets |
|
|||
|
Information technology —
27.33%
|
|
|
|
|
|
|
|
|
|
|
|
Microsoft
Corp.
|
|
|
20,295,000
|
|
$
|
581,655
|
|
|
2.96
|
%
|
|
A
world leader in software and Internet technologies. Its products include
the Windows operating system and Office software.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oracle
Corp.
|
|
|
18,420,000
|
|
|
454,053
|
|
|
2.31
|
|
|
Major supplier of database management software. Also develops
business applications and provides consulting and support.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Google Inc., Class
A
1
|
|
|
852,300
|
|
|
448,992
|
|
|
2.28
|
|
|
One of the most frequently used website search engines in the
world.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accenture PLC, Class
A
|
|
|
10,060,000
|
|
|
402,098
|
|
|
2.05
|
|
|
Management consulting, technology services and outsourcing
company.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yahoo! Inc.
1
|
|
|
21,395,000
|
|
|
327,557
|
|
|
1.67
|
|
|
One of the three largest Internet portals, offering online media,
commerce and communications services to consumers and businesses
worldwide.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corning
Inc.
|
|
|
17,260,000
|
|
|
304,294
|
|
|
1.55
|
|
|
Leading manufacturer of optical fiber, ceramics and
high-performance glass used in industrial and scientific
products.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hewlett-Packard
Co.
|
|
|
5,400,000
|
|
|
274,266
|
|
|
1.40
|
|
|
A
premier manufacturer of servers, software, printing systems and
PCs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cisco Systems, Inc.
1
|
|
|
9,169,300
|
|
|
223,089
|
|
|
1.13
|
|
|
The leading maker of equipment used in Internet
networking.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SAP AG
|
|
|
4,850,000
|
|
|
216,482
|
|
|
1.10
|
|
|
A
leading developer of software for business applications. Also provides
information technology services.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Apple Inc.
1
|
|
|
920,000
|
|
|
188,250
|
|
|
.96
|
|
|
Manufacturer of personal computers and various software products,
as well as portable media players, browsers and smartphones.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Automatic Data Processing,
Inc.
|
|
|
3,900,000
|
|
|
162,279
|
|
|
.83
|
|
|
Major provider of payroll processing and data communications
services.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MasterCard Inc., Class
A
|
|
|
675,000
|
|
|
151,450
|
|
|
.77
|
|
|
Major transaction processing company that manages several payment
card brands.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
securities
|
|
|
|
|
|
1,635,268
|
|
|
8.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,369,733
|
|
|
27.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12 AMCAP
Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
Value
(000) |
|
Percent of
net assets |
|
|||
|
Consumer discretionary —
14.88%
|
|
|
|
|
|
|
|
|
|
|
|
Johnson Controls,
Inc.
|
|
|
10,239,000
|
|
$
|
318,433
|
|
|
1.62
|
%
|
|
A
leading manufacturer of components for automotive systems and building
controls.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Omnicom Group
Inc.
|
|
|
7,951,000
|
|
|
291,166
|
|
|
1.48
|
|
|
One of the world’s largest advertising and marketing
companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Best Buy Co.,
Inc.
|
|
|
5,650,000
|
|
|
206,225
|
|
|
1.05
|
|
|
This leading consumer electronics retailer also sells home office
products, entertainment software and appliances.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YUM! Brands,
Inc.
|
|
|
5,976,000
|
|
|
201,511
|
|
|
1.03
|
|
|
Quick-service-oriented restaurant company whose brands include KFC,
Long John Silver’s, Pizza Hut and Taco Bell.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Harman International
Industries, Inc.
1,2
|
|
|
4,051,200
|
|
|
174,769
|
|
|
.89
|
|
|
Global manufacturer of audio products and electronic
systems.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Staples,
Inc.
|
|
|
6,565,000
|
|
|
169,114
|
|
|
.86
|
|
|
Among the leaders in sales of office supplies and
equipment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lowe’s Companies,
Inc.
|
|
|
7,117,000
|
|
|
168,744
|
|
|
.86
|
|
|
Among America’s largest do-it-yourself home improvement
retailers.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Apollo Group, Inc., Class
A
1
|
|
|
2,750,000
|
|
|
164,670
|
|
|
.84
|
|
|
Provides higher education programs for working adults through
subsidiaries including the University of Phoenix and Western International
University.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time Warner
Inc.
|
|
|
5,133,333
|
|
|
149,072
|
|
|
.76
|
|
|
This media and communications conglomerate combines Internet
services with film, TV, cable and publishing.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Target
Corp.
|
|
|
2,650,000
|
|
|
136,528
|
|
|
.69
|
|
|
Operates Target, a major chain of general merchandise and food
discount stores in the U.S.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
securities
|
|
|
|
|
|
943,674
|
|
|
4.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,923,906
|
|
|
14.88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrials —
13.60%
|
|
|
|
|
|
|
|
|
|
|
|
Precision Castparts
Corp.
|
|
|
3,814,924
|
|
|
430,133
|
|
|
2.19
|
|
|
Manufactures jet engine parts, valves and industrial
tools.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General Dynamics
Corp.
|
|
|
4,365,000
|
|
|
316,681
|
|
|
1.61
|
|
|
This major defense contractor manufactures warships, submarines and
information systems.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Union Pacific
Corp.
|
|
|
3,476,100
|
|
|
234,185
|
|
|
1.19
|
|
|
Operates the largest railroad in the U.S.; also delivers freight to
Canada and Mexico.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Robert Half International
Inc.
|
|
|
7,359,000
|
|
|
205,316
|
|
|
1.05
|
|
|
One of the world’s largest providers of professional staffing
services.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United Technologies
Corp.
|
|
|
2,850,000
|
|
|
195,652
|
|
|
1.00
|
|
|
Among the world’s leading producers of elevators, jet engines,
helicopters, aerospace systems, security services, and heating and air
conditioning systems.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CSX Corp.
|
|
|
3,801,500
|
|
|
180,419
|
|
|
.92
|
|
|
Operates a major rail system and provides freight transportation
across the U.S.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United Parcel Service, Inc.,
Class B
|
|
|
2,820,000
|
|
|
165,647
|
|
|
.84
|
|
|
The world’s largest package delivery company and express
carrier.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Manpower
Inc.
|
|
|
2,606,000
|
|
|
134,261
|
|
|
.68
|
|
|
Provides temporary staffing services around the world.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
securities
|
|
|
|
|
|
809,667
|
|
|
4.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,671,961
|
|
|
13.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Health care —
11.02%
|
|
|
|
|
|
|
|
|
|
|
|
Medtronic,
Inc.
|
|
|
9,970,000
|
|
|
432,698
|
|
|
2.20
|
|
|
A
leading producer of medical devices, including pacemakers and implantable
defibrillators.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
McKesson
Corp.
|
|
|
4,600,000
|
|
|
272,090
|
|
|
1.39
|
|
|
A
leading distributor of pharmaceuticals in the U.S.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hologic, Inc.
1
|
|
|
12,001,100
|
|
|
207,019
|
|
|
1.05
|
|
|
Manufacturer of various medical technologies relating to women’s
health care.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMCAP
Fund 13
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stocks
|
|
Shares
|
|
Value
(000) |
|
Percent of
net assets |
|
|||
|
Health care
(continued)
|
|
|
|
|
|
|
|
|
|
|
|
Roche Holding
AG
|
|
|
865,000
|
|
$
|
144,597
|
|
|
.74
|
%
|
|
A
world leader in pharmaceuticals and diagnostic research.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
securities
|
|
|
|
|
|
1,108,190
|
|
|
5.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,164,594
|
|
|
11.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financials —
7.61%
|
|
|
|
|
|
|
|
|
|
|
|
Capital One Financial
Corp.
|
|
|
6,000,000
|
|
|
226,500
|
|
|
1.15
|
|
|
One of the largest U.S. credit card issuers.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State Street
Corp.
|
|
|
4,852,200
|
|
|
217,912
|
|
|
1.11
|
|
|
This global investment management company serves pension plan and
mutual fund managers, large businesses and government.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo &
Co.
|
|
|
7,479,600
|
|
|
204,492
|
|
|
1.04
|
|
|
One of the largest banks in the U.S. and a leader in online
banking.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank of New York Mellon
Corp.
|
|
|
7,136,000
|
|
|
203,519
|
|
|
1.04
|
|
|
Asset management and securities services company providing a wide
array of financial solutions for businesses, individuals and
advisers.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JPMorgan Chase &
Co.
|
|
|
3,950,000
|
|
|
165,782
|
|
|
.84
|
|
|
Leading global financial services firm operating in the investment
banking, transaction processing, asset and wealth management, and private
equity sectors.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American Express
Co.
|
|
|
3,500,000
|
|
|
133,665
|
|
|
.68
|
|
|
A
leading travel and financial services company.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
securities
|
|
|
|
|
|
344,592
|
|
|
1.75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,496,462
|
|
|
7.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy —
6.61%
|
|
|
|
|
|
|
|
|
|
|
|
Schlumberger
Ltd.
|
|
|
5,440,000
|
|
|
332,384
|
|
|
1.69
|
|
|
A
leading provider of services and technology to the petroleum
industry.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EOG Resources,
Inc.
|
|
|
1,667,900
|
|
|
156,866
|
|
|
.80
|
|
|
An oil and gas exploration and production company with global
operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FMC Technologies,
Inc.
1
|
|
|
2,420,000
|
|
|
135,932
|
|
|
.69
|
|
|
Engaged in offshore energy production, food processing and airplane
loading systems.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Apache
Corp.
|
|
|
1,300,000
|
|
|
134,732
|
|
|
.69
|
|
|
An independent oil and gas exploration and development company with
onshore and offshore operations worldwide.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
securities
|
|
|
|
|
|
537,951
|
|
|
2.74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,297,865
|
|
|
6.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer staples —
4.54%
|
|
|
|
|
|
|
|
|
|
|
|
PepsiCo,
Inc.
|
|
|
3,042,481
|
|
|
190,064
|
|
|
.97
|
|
|
A
global soft drink and snack foods company.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CVS/Caremark
Corp.
|
|
|
5,500,000
|
|
|
185,625
|
|
|
.95
|
|
|
A
major U.S. drugstore chain.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
L’Oréal SA
|
|
|
1,450,000
|
|
|
150,187
|
|
|
.76
|
|
|
One of the world’s largest makers of beauty products. In addition
to L’Oréal, its brands include Maybelline and Lancôme.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
securities
|
|
|
|
|
|
365,849
|
|
|
1.86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
891,725
|
|
|
4.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Materials —
2.05%
|
|
|
|
|
|
|
|
|
|
|
|
Other
securities
|
|
|
|
|
|
402,411
|
|
|
2.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other —
0.44%
|
|
|
|
|
|
|
|
|
|
|
|
Other
securities
|
|
|
|
|
|
86,179
|
|
|
.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14 AMCAP
Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Value
(000) |
|
Percent of
net assets |
|
|||
|
Miscellaneous —
3.81%
|
|
|
|
|
|
|
|
|
|
|
|
Other common stocks in
initial period of acquisition
|
|
|
|
|
$
|
749,045
|
|
|
3.81
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total common stocks
(cost: $14,759,597,000)
|
|
|
|
|
|
18,053,881
|
|
|
91.89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Convertible securities — 0.00%
|
|
|
Shares
|
|
|
|
|
|
|
|
|
Consumer discretionary —
0.00%
|
|
|
|
|
|
|
|
|
|
|
|
Johnson Controls, Inc. 11.50%
convertible preferred 2012, units
|
|
|
4,600
|
|
|
722
|
|
|
.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total convertible
securities
(cost: $230,000)
|
|
|
|
|
|
722
|
|
|
.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term securities — 8.00%
|
|
Principal
amount
(000) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fannie Mae
0.085%–0.35%
due
3/24-10/4/2010
|
|
$
|
385,721
|
|
|
385,589
|
|
|
1.96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Freddie Mac
0.12%–0.435%
due
4/7-9/1/2010
|
|
|
258,300
|
|
|
258,176
|
|
|
1.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal Home Loan Bank
0.08%–0.14%
due
3/3-5/21/2010
|
|
|
253,500
|
|
|
253,469
|
|
|
1.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury Bills
0.085%–0.28%
due
3/25-8/26/2010
|
|
|
225,600
|
|
|
225,519
|
|
|
1.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jupiter Securitization Co.,
LLC
0.13%–0.19%
due 3/1-5/12/2010
3
|
|
|
92,600
|
|
|
92,552
|
|
|
.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hewlett-Packard Co.
0.10%
due
3/19/2010
3
|
|
|
25,500
|
|
|
25,499
|
|
|
.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
securities
|
|
|
|
|
|
329,972
|
|
|
1.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total short-term
securities
(cost: $1,570,680,000)
|
|
|
|
|
|
1,570,776
|
|
|
8.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investment
securities
(cost: $16,330,507,000)
|
|
|
|
|
|
19,625,379
|
|
|
99.89
|
|
|
Other assets less
liabilities
|
|
|
|
|
|
22,225
|
|
|
.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets
|
|
|
|
|
$
|
19,647,604
|
|
|
100.00
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
“Miscellaneous” securities include
holdings in their initial period of acquisition that have not previously been
publicly disclosed. “Other securities” include all issues that are not disclosed
separately in the summary investment portfolio.
Investments in
affiliates
A company is considered to be an
affiliate of the fund under the Investment Company Act of 1940 if the fund’s
holdings in that company represent 5% or more of the outstanding voting shares.
The value of the fund’s affiliated-company holdings is either shown in the
summary investment portfolio or included in the value of “Other securities”
under the respective industry sectors. Further details on such holdings and
related transactions during the year ended February 28, 2010, appear
below.
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
|
Security did not produce income during the last 12
months.
|
|
|
|
|
2
|
Represents an affiliated company as defined under the Investment
Company Act of 1940.
|
|
|
|
|
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, including those in “Other securities,” was
$390,145,000, which represented 1.99% of the net assets of the
fund.
|
|
|
|
|
4
|
Unaffiliated issuer at 2/28/2010.
|
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
AMCAP
Fund 15
|
|
|
|
|
|
|
|
|
Statement of assets and
liabilities
at February 28, 2010 |
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
Investment securities, at
value:
|
|
|
|
|
|
|
|
|
Unaffiliated issuers (cost:
$15,989,125)
|
|
$
|
19,286,973
|
|
|
|
|
|
Affiliated issuers (cost:
$341,382)
|
|
|
338,406
|
|
$
|
19,625,379
|
|
|
|
|
|
|
|
|
|
|
|
Cash
|
|
|
|
|
|
89
|
|
|
Receivables for:
|
|
|
|
|
|
|
|
|
Sales of investments
|
|
|
47,876
|
|
|
|
|
|
Sales of fund’s shares
|
|
|
26,302
|
|
|
|
|
|
Dividends and interest
|
|
|
24,492
|
|
|
98,670
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19,724,138
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
Payables for:
|
|
|
|
|
|
|
|
|
Purchases of investments
|
|
|
26,266
|
|
|
|
|
|
Repurchases of fund’s
shares
|
|
|
29,239
|
|
|
|
|
|
Investment advisory
services
|
|
|
4,833
|
|
|
|
|
|
Services provided by
affiliates
|
|
|
13,479
|
|
|
|
|
|
Directors’ deferred
compensation
|
|
|
1,499
|
|
|
|
|
|
Other
|
|
|
1,218
|
|
|
76,534
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at February 28,
2010
|
|
|
|
|
$
|
19,647,604
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets consist
of:
|
|
|
|
|
|
|
|
|
Capital paid in on shares of capital
stock
|
|
|
|
|
$
|
19,351,033
|
|
|
Undistributed net investment
income
|
|
|
|
|
|
84,598
|
|
|
Accumulated net realized
loss
|
|
|
|
|
|
(3,082,899
|
)
|
|
Net unrealized appreciation
|
|
|
|
|
|
3,294,872
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at February 28,
2010
|
|
|
|
|
$
|
19,647,604
|
|
|
|
|
|
|
|
|
|
|
(dollars and shares in
thousands, except per-share amounts)
Total authorized capital stock —
2,000,000 shares, $1.00 par value (1,194,497 total shares
outstanding)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets
|
|
Shares
outstanding |
|
Net
asset
value per share * |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A
|
|
$
|
12,973,370
|
|
|
783,998
|
|
$
|
16.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class B
|
|
|
631,982
|
|
|
39,878
|
|
|
15.85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class C
|
|
|
1,064,816
|
|
|
67,720
|
|
|
15.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class F-1
|
|
|
1,421,172
|
|
|
86,228
|
|
|
16.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class F-2
|
|
|
366,954
|
|
|
22,104
|
|
|
16.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class 529-A
|
|
|
474,387
|
|
|
28,774
|
|
|
16.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class 529-B
|
|
|
71,941
|
|
|
4,539
|
|
|
15.85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class 529-C
|
|
|
134,096
|
|
|
8,457
|
|
|
15.86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class 529-E
|
|
|
27,182
|
|
|
1,669
|
|
|
16.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class 529-F-1
|
|
|
19,582
|
|
|
1,186
|
|
|
16.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class R-1
|
|
|
39,843
|
|
|
2,492
|
|
|
15.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class R-2
|
|
|
382,654
|
|
|
23,960
|
|
|
15.97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class R-3
|
|
|
540,760
|
|
|
33,123
|
|
|
16.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class R-4
|
|
|
377,607
|
|
|
22,925
|
|
|
16.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class R-5
|
|
|
741,519
|
|
|
44,572
|
|
|
16.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class R-6
|
|
|
379,739
|
|
|
22,872
|
|
|
16.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Maximum offering price and
redemption price per share were equal to the net asset value per share for
all share classes, except for Classes A and 529-A, for which the maximum
offering prices per share were $17.56 and $17.50,
respectively.
|
See Notes to Financial
Statements
16 AMCAP
Fund
|
|
|
|
|
|
||
|
Statement of
operations
for the year ended February 28, 2010 |
(dollars in
thousands)
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
Investment
income:
|
|
|
|
|
|
|
|
|
Income:
|
|
|
|
|
|
|
|
|
Dividends (net of non-U.S. taxes of
$2,697; also includes $2,230 from affiliates)
|
|
$
|
234,971
|
|
|
|
|
|
Interest
|
|
|
3,913
|
|
$
|
238,884
|
|
|
|
|
|
|
|
|
|
|
|
Fees and expenses*:
|
|
|
|
|
|
|
|
|
Investment advisory
services
|
|
|
58,172
|
|
|
|
|
|
Distribution services
|
|
|
54,737
|
|
|
|
|
|
Transfer agent services
|
|
|
21,869
|
|
|
|
|
|
Administrative services
|
|
|
9,540
|
|
|
|
|
|
Reports to shareholders
|
|
|
1,450
|
|
|
|
|
|
Registration statement and
prospectus
|
|
|
4,180
|
|
|
|
|
|
Directors’ compensation
|
|
|
1,035
|
|
|
|
|
|
Auditing and legal
|
|
|
117
|
|
|
|
|
|
Custodian
|
|
|
240
|
|
|
|
|
|
State and local taxes
|
|
|
1
|
|
|
|
|
|
Other
|
|
|
1,293
|
|
|
152,634
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
|
|
|
86,250
|
|
|
|
|
|
|
|
|
|
|
|
Net realized loss and
unrealized appreciation on investments and currency:
|
|
|
|
|
|
|
|
|
Net realized (loss) gain
on:
|
|
|
|
|
|
|
|
|
Investments (including $88,311 net loss
from affiliates)
|
|
|
(779,916
|
)
|
|
|
|
|
Currency transactions
|
|
|
450
|
|
|
(779,466
|
)
|
|
|
|
|
|
|
|
|
|
|
Net unrealized appreciation
on:
|
|
|
|
|
|
|
|
|
Investments
|
|
|
8,316,044
|
|
|
|
|
|
Currency translations
|
|
|
57
|
|
|
8,316,101
|
|
|
|
|
|
|
|
|
|
|
|
Net realized loss and unrealized
appreciation on investments and currency
|
|
|
|
|
|
7,536,635
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in net assets
resulting from operations
|
|
|
|
|
$
|
7,622,885
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Additional information
related to class-specific fees and expenses is included in the Notes to
Financial Statements.
|
See Notes to Financial
Statements
AMCAP
Fund 17
|
|
|
|
|
|
||
|
Statements of changes in net
assets
|
(dollars in
thousands)
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
February 28, 2010 |
|
Year ended
February 28, 2009 |
|
||
|
|
|
|
|
||||
|
Operations:
|
|
|
|
|
|
|
|
|
Net investment income
|
|
$
|
86,250
|
|
$
|
188,389
|
|
|
Net realized loss on investments and
currency transactions
|
|
|
(779,466
|
)
|
|
(2,303,365
|
)
|
|
Net unrealized appreciation
(depreciation) on investments and currency translations
|
|
|
8,316,101
|
|
|
(7,434,726
|
)
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets
resulting from operations
|
|
|
7,622,885
|
|
|
(9,549,702
|
)
|
|
|
|
|
|
|
|
|
|
|
Dividends and distributions
paid to shareholders:
|
|
|
|
|
|
|
|
|
Dividends from net investment
income
|
|
|
(181,054
|
)
|
|
—
|
|
|
Distributions from net realized gain on
investments
|
|
|
—
|
|
|
(938,078
|
)
|
|
|
|
|
|
|
|
|
|
|
Total dividends and distributions paid
to shareholders
|
|
|
(181,054
|
)
|
|
(938,078
|
)
|
|
|
|
|
|
|
|
|
|
|
Net capital share
transactions
|
|
|
(808,734
|
)
|
|
(1,160,523
|
)
|
|
|
|
|
|
|
|
|
|
|
Total increase (decrease) in
net assets
|
|
|
6,633,097
|
|
|
(11,648,303
|
)
|
|
Net assets:
|
|
|
|
|
|
|
|
|
Beginning of year
|
|
|
13,014,507
|
|
|
24,662,810
|
|
|
|
|
|
|
|
|
|
|
|
End of year (including undistributed net
investment income: $84,598 and $179,211, respectively)
|
|
$
|
19,647,604
|
|
$
|
13,014,507
|
|
|
|
|
|
|
|
|
|
|
See Notes to Financial
Statements
18 AMCAP
Fund
Notes to financial statements
1. Organization and significant
accounting policies
Organization
— AMCAP Fund,
Inc. (the “fund”) is registered under the Investment Company Act of 1940 as an
open-end, diversified investment company. The fund seeks long-term growth of
capital by investing primarily in U.S. companies that have solid long-term
growth records and the potential for good future growth.
On November 24, 2009, shareholders
approved a proposal to reorganize the fund from a Maryland corporation to a
Delaware statutory trust. The reorganization may be completed in 2010 or early
2011; however, the fund reserves the right to delay the implementation.
Shareholders also approved amendments to the fund’s Investment Advisory and
Service Agreement and amendments to and elimination of certain fundamental
investment policies of the fund.
The fund has 16 share classes
consisting of five retail share classes, five 529 college savings plan share
classes and six retirement plan share classes. The 529 college savings plan
share classes (529-A, 529-B, 529-C, 529-E and 529-F-1) can be used to save for
college education. The six retirement plan share classes (R-1, R-2, R-3, R-4,
R-5 and R-6) are generally offered only through eligible employer-sponsored
retirement plans. The fund’s share classes are described below:
On May 1, 2009, the fund made an
additional retirement plan share class (Class R-6) available for sale pursuant
to an amendment to its registration statement filed with the Securities and
Exchange Commission (“SEC”). Refer to the fund’s retirement plan prospectus for
more details.
Holders of all share classes have
equal pro rata rights to assets, dividends and liquidation proceeds. Each share
class has identical voting rights, except for the exclusive right to vote on
matters affecting only its class. Share classes have different fees and expenses
(“class-specific fees and expenses”), primarily due to different arrangements
for distribution, administrative and shareholder services. Differences in
class-specific fees and expenses will result in differences in net investment
income and, therefore, the payment of different per-share dividends by each
class.
Significant accounting policies
— The financial statements have been prepared to comply with accounting
principles generally accepted in the United States of America. These principles
require management to make estimates and assumptions that affect reported
amounts and disclosures. Actual results could differ from those estimates. The
following is a summary of the significant accounting policies followed by the
fund:
|
|
|
|
|
Net asset value
— The
fund generally determines its net asset value as of approximately 4:00
p.m. New York time each day the New York Stock Exchange is
open.
|
AMCAP
Fund 19
Security valuation
— Equity
securities 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, including short-term securities purchased with more than 60 days
left to maturity, are valued at prices obtained from one or more independent
pricing vendors when such prices are available. However, 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. Vendors base bond prices
on, among other things, valuation matrices that incorporate dealer-supplied
valuations, proprietary pricing models and evaluations of the yield curve as of
approximately 3:00 p.m. New York time. Securities with both fixed-income and
equity characteristics, 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. Short-term securities purchased within 60 days to
maturity are valued at amortized cost, which approximates market value. The
value of short-term securities originally purchased with maturities greater than
60 days is determined based on an amortized value to par when they reach 60 days
or less remaining to maturity.
Securities and other assets for
which representative market quotations are not readily available or are
considered unreliable by the investment adviser are fair valued as determined in
good faith under guidelines adopted by authority of the fund’s board of
directors. Market quotations may be considered unreliable if events occur that
materially affect the value of securities (particularly securities outside the
U.S.) between the close of trading in those securities and the close of regular
trading on the New York Stock Exchange. Various factors may be reviewed in order
to make a good faith determination of a security’s fair value. These factors
include, but are not limited to, 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. 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.
Security transactions and related
investment income
— Security transactions are recorded by the fund as of
the date the trades are executed with brokers. Realized gains and losses from
security transactions are determined based on the specific identified cost of
the securities. Dividend income is recognized on the ex-dividend date and
interest income is recognized on an accrual basis. Market discounts, premiums
and original issue discounts on fixed-income securities are amortized daily over
the expected life of the security.
Class allocations
— Income,
fees and expenses (other than class-specific fees and expenses) and realized and
unrealized gains and losses are allocated daily among the various share classes
based on their relative net assets. Class-specific fees and expenses, such as
distribution, administrative and shareholder services, are charged directly to
the respective share class.
Dividends and distributions to
shareholders
— Dividends and distributions paid to shareholders are
recorded on the ex-dividend date.
Currency translation
— Assets
and liabilities, including investment securities, denominated in currencies
other than U.S. dollars are translated into U.S. dollars at the exchange rates
in effect on the valuation date. Purchases and sales of investment securities
and income and expenses are translated into U.S. dollars at the exchange rates
on the dates of such transactions. On the accompanying financial statements, the
effects of changes in exchange rates on investment securities are included with
the net realized gain or loss and net unrealized appreciation or depreciation on
investments. The realized gain or loss and unrealized appreciation or
depreciation resulting from all other transactions denominated in currencies
other than U.S. dollars are disclosed separately.
20 AMCAP
Fund
2. Risk factors
Investing in the fund may involve
certain risks including, but not limited to, those described below.
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 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. Taxation and distributions
Federal income taxation
— The
fund complies with the requirements under Subchapter M of the Internal Revenue
Code applicable to mutual funds and intends to distribute substantially all of
its net taxable income and net capital gains each year. The fund is not subject
to income taxes to the extent such distributions are made. Therefore, no federal
income tax provision is required.
As of and during the period ended
February 28, 2010, the fund did not have a liability for any unrecognized tax
benefits. The fund recognizes interest and penalties, if any, related to
unrecognized tax benefits as income tax expense in the statement of operations.
During the period, the fund did not incur any interest or penalties.
The fund is not subject to
examination by U.S. federal tax authorities for tax years before 2006 and by
state tax authorities for tax years before 2005.
Non-U.S. taxation
— Dividend
income is recorded net of non-U.S. taxes paid.
Distributions
— Distributions
paid to shareholders are based on net investment income and net realized gains
determined on a tax basis, which may differ from net investment income and net
realized gains for financial reporting purposes. These differences are due
primarily to different treatment for items such as currency gains and losses;
short-term capital gains and losses; capital losses related to sales of certain
securities within 30 days of purchase; deferred expenses; cost of investments
sold; and net capital losses. The fiscal year in which amounts are distributed
may differ from the year in which the net investment income and net realized
gains are recorded by the fund for financial reporting purposes.
During the year ended February 28,
2010, the fund reclassified $450,000 from accumulated net realized loss to
undistributed net investment income and $259,000 from undistributed net
investment income to capital paid in on shares of capital stock to align
financial reporting with tax reporting.
As of February 28, 2010, the tax
basis components of distributable earnings, unrealized appreciation
(depreciation) and cost of investment securities were as follows:
* The capital loss
carryforwards will be used to offset any capital gains realized by the fund in
future years through the expiration dates. The fund will not make distributions
from capital gains while capital loss carryforwards remain.
AMCAP
Fund 21
The tax character of distributions
paid to shareholders was as follows (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended February 28,
2010
|
|
Year ended February 28,
2009
|
|
||||||||||||||
|
|
|
|
|
|
|
||||||||||||||
|
Share class
|
|
Ordinary
income
|
|
Long-term
capital gains |
|
Total
distributions
paid |
|
Ordinary
income
|
|
Long-term
capital gains |
|
Total
distributions
paid |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Class A
|
|
$
|
132,922
|
|
$
|
—
|
|
$
|
132,922
|
|
$
|
—
|
|
$
|
621,109
|
|
$
|
621,109
|
|
|
Class B
|
|
|
1,312
|
|
|
—
|
|
|
1,312
|
|
|
—
|
|
|
39,384
|
|
|
39,384
|
|
|
Class C
|
|
|
2,279
|
|
|
—
|
|
|
2,279
|
|
|
—
|
|
|
58,353
|
|
|
58,353
|
|
|
Class F-1
|
|
|
14,462
|
|
|
—
|
|
|
14,462
|
|
|
—
|
|
|
92,611
|
|
|
92,611
|
|
|
Class F-2*
|
|
|
2,791
|
|
|
—
|
|
|
2,791
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Class 529-A
|
|
|
4,608
|
|
|
—
|
|
|
4,608
|
|
|
—
|
|
|
18,357
|
|
|
18,357
|
|
|
Class 529-B
|
|
|
204
|
|
|
—
|
|
|
204
|
|
|
—
|
|
|
3,329
|
|
|
3,329
|
|
|
Class 529-C
|
|
|
395
|
|
|
—
|
|
|
395
|
|
|
—
|
|
|
5,770
|
|
|
5,770
|
|
|
Class 529-E
|
|
|
205
|
|
|
—
|
|
|
205
|
|
|
—
|
|
|
1,043
|
|
|
1,043
|
|
|
Class 529-F-1
|
|
|
230
|
|
|
—
|
|
|
230
|
|
|
—
|
|
|
749
|
|
|
749
|
|
|
Class R-1
|
|
|
166
|
|
|
—
|
|
|
166
|
|
|
—
|
|
|
1,617
|
|
|
1,617
|
|
|
Class R-2
|
|
|
1,184
|
|
|
—
|
|
|
1,184
|
|
|
—
|
|
|
16,318
|
|
|
16,318
|
|
|
Class R-3
|
|
|
3,791
|
|
|
—
|
|
|
3,791
|
|
|
—
|
|
|
27,709
|
|
|
27,709
|
|
|
Class R-4
|
|
|
4,322
|
|
|
—
|
|
|
4,322
|
|
|
—
|
|
|
16,070
|
|
|
16,070
|
|
|
Class R-5
|
|
|
9,204
|
|
|
—
|
|
|
9,204
|
|
|
—
|
|
|
35,659
|
|
|
35,659
|
|
|
Class R-6
†
|
|
|
2,979
|
|
|
—
|
|
|
2,979
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
181,054
|
|
$
|
—
|
|
$
|
181,054
|
|
$
|
—
|
|
$
|
938,078
|
|
$
|
938,078
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Class F-2 was
offered beginning August 1, 2008.
† Class R-6 was offered beginning May 1, 2009.
† Class R-6 was offered beginning May 1, 2009.
4. Fees and transactions with related
parties
Capital Research and Management
Company (“CRMC”), the fund’s investment adviser, is the parent company of
American Funds Distributors,
®
Inc. (“AFD”), the
principal underwriter of the fund’s shares, and American Funds Service
Company
®
(“AFS”),
the fund’s transfer agent.
Investment advisory services
—
The Investment Advisory and Service Agreement with CRMC provides for monthly
fees accrued daily. These fees are based on a declining series of annual rates
beginning with 0.485% on the first $1 billion of daily net assets and decreasing
to 0.290% on such assets in excess of $27 billion. For the year ended February
28, 2010, the investment advisory services fee was $58,172,000, which was
equivalent to an annualized rate of 0.329% of average daily net assets.
Class-specific fees and
expenses
— Expenses that are specific to individual share classes are
accrued directly to the respective share class. The principal class-specific
fees and expenses are described below:
|
|
|
|
|
Distribution services
—
The fund has adopted plans of distribution for all share classes, except
Classes F-2, R-5 and R-6. Under the plans, the board of directors approves
certain categories of expenses that are used to finance activities
primarily intended to sell fund shares and service existing accounts. The
plans provide for payments, based on an annualized percentage of average
daily net assets, ranging from 0.25% to 1.00% as noted on the following
page. In some cases, the board of directors has limited the amounts that
may be paid to less than the maximum allowed by the plans. All share
classes with a plan may use up to 0.25% of average daily net assets to pay
service fees, or to compensate AFD for paying service fees, to firms that
have entered into agreements with AFD to provide certain shareholder
services. The remaining amounts available to be paid under each plan are
paid to dealers to compensate them for their sales activities.
|
|
|
|
|
|
For Classes A and 529-A, the
board of directors has also approved the reimbursement of dealer and
wholesaler commissions paid by AFD for certain shares sold without a sales
charge. These classes reimburse AFD for amounts billed within the prior 15
months but only to the extent that the overall annual expense limit of
0.25% is not exceeded. As of February 28, 2010, there were no unreimbursed
expenses subject to reimbursement for Classes A or 529-A.
|
22 AMCAP
Fund
|
|
|
|
|
|
|
|
|
|
Share class
|
|
Currently approved
limits
|
|
Plan limits
|
|
||
|
|
|
|
|
|
|
||
|
Class A
|
|
0.25
|
%
|
|
0.25
|
%
|
|
|
Class 529-A
|
|
0.25
|
|
|
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
|
|
|
|
|
|
|
|
Transfer agent services
— The fund has a transfer agent agreement with AFS for Classes A and B.
Under this agreement, these share classes compensate AFS for transfer
agent services including shareholder recordkeeping, communications and
transaction processing. AFS is also compensated for certain transfer agent
services provided to all other share classes from the administrative
services fees paid to CRMC as described below.
|
|
|
|
|
|
Administrative services
— The fund has an administrative services agreement with CRMC to provide
transfer agent and other related shareholder services for all share
classes other than Classes A and B. Each relevant share class pays CRMC
annual fees up to 0.15% (0.10% for Class R-5 and 0.05% for Class R-6)
based on its respective average daily net assets. Each relevant share
class also pays AFS additional amounts for certain transfer agent
services. CRMC and AFS may use these fees to compensate third parties for
performing these services. Each 529 share class is subject to an
additional administrative services fee payable to the Commonwealth of
Virginia for the maintenance of the 529 college savings plan. The
quarterly fee is based on a declining series of annual rates beginning
with 0.10% on the first $30 billion of the net assets invested in Class
529 shares of the American Funds and decreasing to 0.06% on such assets
between $120 billion and $150 billion. The fee for any given calendar
quarter is accrued and calculated on the basis of the average net assets
of Class 529 shares of the American Funds for the last month of the prior
calendar quarter. Although these amounts are included with administrative
services fees on the accompanying financial statements, the Commonwealth
of Virginia is not considered a related party.
|
Expenses under the agreements
described above for the year ended February 28, 2010, were as follows (dollars
in thousands):
* Class R-6 was
offered beginning May 1, 2009.
†
Amount
less than one thousand.
AMCAP
Fund 23
Directors’ deferred
compensation
— Since the adoption of the deferred compensation plan in
1993, directors who are unaffiliated with CRMC may elect to defer the cash
payment of part or all of their compensation. These deferred amounts, which
remain as liabilities of the fund, are treated as if invested in shares of the
fund or other American Funds. These amounts represent general, unsecured
liabilities of the fund and vary according to the total returns of the selected
funds. Directors’ compensation of $1,035,000, shown on the accompanying
financial statements, includes $457,000 in current fees (either paid in cash or
deferred) and a net increase of $578,000 in the value of the deferred amounts.
Affiliated Officers and
directors
— Officers and certain directors of the fund are or may be
considered to be affiliated with CRMC, AFS and AFD. No affiliated officers or
directors received any compensation directly from the fund.
5. Disclosure of fair value
measurements
The fund classifies its assets and
liabilities into three levels based on the method used to value the assets or
liabilities. Level 1 values are based on quoted prices in active markets for
identical securities. Level 2 values are based on significant observable market
inputs, such as quoted prices for similar securities and quoted prices in
inactive markets. Level 3 values are based on significant unobservable inputs
that reflect the fund’s determination of assumptions that market participants
might reasonably use in valuing the securities. The valuation levels are not
necessarily an indication of the risk or liquidity associated with the
underlying investment. For example, U.S. government securities are generally
high-quality and liquid; however, they are reflected as Level 2 because the
inputs used to determine fair value may not always be quoted prices in an active
market. The following table presents the fund’s valuation levels as of February
28, 2010 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities:
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Common stocks:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Information technology
|
|
$
|
5,369,733
|
|
$
|
—
|
|
$
|
—
|
|
$
|
5,369,733
|
|
|
Consumer discretionary
|
|
|
2,923,906
|
|
|
—
|
|
|
—
|
|
|
2,923,906
|
|
|
Industrials
|
|
|
2,671,961
|
|
|
—
|
|
|
—
|
|
|
2,671,961
|
|
|
Health care
|
|
|
2,164,594
|
|
|
—
|
|
|
—
|
|
|
2,164,594
|
|
|
Financials
|
|
|
1,496,462
|
|
|
—
|
|
|
—
|
|
|
1,496,462
|
|
|
Energy
|
|
|
1,297,865
|
|
|
—
|
|
|
—
|
|
|
1,297,865
|
|
|
Consumer staples
|
|
|
891,725
|
|
|
—
|
|
|
—
|
|
|
891,725
|
|
|
Materials
|
|
|
402,411
|
|
|
—
|
|
|
—
|
|
|
402,411
|
|
|
Other
|
|
|
86,179
|
|
|
—
|
|
|
—
|
|
|
86,179
|
|
|
Miscellaneous
|
|
|
749,045
|
|
|
—
|
|
|
—
|
|
|
749,045
|
|
|
Convertible
securities
|
|
|
—
|
|
|
722
|
|
|
—
|
|
|
722
|
|
|
Short-term
securities
|
|
|
—
|
|
|
1,570,776
|
|
|
—
|
|
|
1,570,776
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
18,053,881
|
|
$
|
1,571,498
|
|
$
|
—
|
|
$
|
19,625,379
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24 AMCAP
Fund
6. Capital share
transactions
Capital share transactions in the
fund were as follows (dollars and shares in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
1
|
|
Reinvestments of
dividends
and distributions |
|
Repurchases
1
|
|
Net (decrease)
increase
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Share class
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Shares
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Year ended February 28,
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
|
Class A
|
|
$
|
1,507,879
|
|
|
104,997
|
|
$
|
126,497
|
|
|
9,398
|
|
$
|
(2,299,485
|
)
|
|
(162,394
|
)
|
$
|
(665,109
|
)
|
|
(47,999
|
)
|
|
Class B
|
|
|
23,505
|
|
|
1,788
|
|
|
1,265
|
|
|
98
|
|
|
(165,417
|
)
|
|
(12,007
|
)
|
|
(140,647
|
)
|
|
(10,121
|
)
|
|
Class C
|
|
|
121,330
|
|
|
8,798
|
|
|
2,165
|
|
|
168
|
|
|
(208,216
|
)
|
|
(15,531
|
)
|
|
(84,721
|
)
|
|
(6,565
|
)
|
|
Class F-1
|
|
|
281,641
|
|
|
19,567
|
|
|
12,582
|
|
|
939
|
|
|
(519,481
|
)
|
|
(37,981
|
)
|
|
(225,258
|
)
|
|
(17,475
|
)
|
|
Class F-2
|
|
|
263,691
|
|
|
18,036
|
|
|
1,996
|
|
|
148
|
|
|
(64,898
|
)
|
|
(4,417
|
)
|
|
200,789
|
|
|
13,767
|
|
|
Class 529-A
|
|
|
59,495
|
|
|
4,080
|
|
|
4,608
|
|
|
343
|
|
|
(46,183
|
)
|
|
(3,197
|
)
|
|
17,920
|
|
|
1,226
|
|
|
Class 529-B
|
|
|
2,201
|
|
|
171
|
|
|
204
|
|
|
15
|
|
|
(6,636
|
)
|
|
(483
|
)
|
|
(4,231
|
)
|
|
(297
|
)
|
|
Class 529-C
|
|
|
18,923
|
|
|
1,351
|
|
|
393
|
|
|
30
|
|
|
(17,272
|
)
|
|
(1,241
|
)
|
|
2,044
|
|
|
140
|
|
|
Class 529-E
|
|
|
3,986
|
|
|
280
|
|
|
205
|
|
|
15
|
|
|
(3,393
|
)
|
|
(238
|
)
|
|
798
|
|
|
57
|
|
|
Class 529-F-1
|
|
|
4,223
|
|
|
291
|
|
|
230
|
|
|
17
|
|
|
(3,598
|
)
|
|
(248
|
)
|
|
855
|
|
|
60
|
|
|
Class R-1
|
|
|
12,124
|
|
|
854
|
|
|
165
|
|
|
13
|
|
|
(10,497
|
)
|
|
(737
|
)
|
|
1,792
|
|
|
130
|
|
|
Class R-2
|
|
|
91,844
|
|
|
6,686
|
|
|
1,183
|
|
|
91
|
|
|
(90,288
|
)
|
|
(6,470
|
)
|
|
2,739
|
|
|
307
|
|
|
Class R-3
|
|
|
124,096
|
|
|
8,706
|
|
|
3,784
|
|
|
284
|
|
|
(141,784
|
)
|
|
(9,800
|
)
|
|
(13,904
|
)
|
|
(810
|
)
|
|
Class R-4
|
|
|
133,309
|
|
|
9,217
|
|
|
4,319
|
|
|
323
|
|
|
(163,311
|
)
|
|
(10,835
|
)
|
|
(25,683
|
)
|
|
(1,295
|
)
|
|
Class R-5
|
|
|
196,892
|
|
|
13,697
|
|
|
9,194
|
|
|
681
|
|
|
(391,376
|
)
|
|
(28,712
|
)
|
|
(185,290
|
)
|
|
(14,334
|
)
|
|
Class R-6
2
|
|
|
327,153
|
|
|
23,905
|
|
|
2,979
|
|
|
221
|
|
|
(20,960
|
)
|
|
(1,254
|
)
|
|
309,172
|
|
|
22,872
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net increase
(decrease)
|
|
$
|
3,172,292
|
|
|
222,424
|
|
$
|
171,769
|
|
|
12,784
|
|
$
|
(4,152,795
|
)
|
|
(295,545
|
)
|
$
|
(808,734
|
)
|
|
(60,337
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended February 28,
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
|
Class A
|
|
$
|
2,031,710
|
|
|
140,956
|
|
$
|
596,800
|
|
|
34,698
|
|
$
|
(3,325,626
|
)
|
|
(233,947
|
)
|
$
|
(697,116
|
)
|
|
(58,293
|
)
|
|
Class B
|
|
|
56,893
|
|
|
4,006
|
|
|
38,002
|
|
|
2,299
|
|
|
(203,079
|
)
|
|
(14,362
|
)
|
|
(108,184
|
)
|
|
(8,057
|
)
|
|
Class C
|
|
|
184,522
|
|
|
13,664
|
|
|
55,790
|
|
|
3,401
|
|
|
(400,253
|
)
|
|
(28,945
|
)
|
|
(159,941
|
)
|
|
(11,880
|
)
|
|
Class F-1
|
|
|
503,663
|
|
|
35,048
|
|
|
83,010
|
|
|
4,851
|
|
|
(1,051,411
|
)
|
|
(72,303
|
)
|
|
(464,738
|
)
|
|
(32,404
|
)
|
|
Class F-2
3
|
|
|
117,839
|
|
|
9,582
|
|
|
—
|
|
|
—
|
|
|
(14,721
|
)
|
|
(1,245
|
)
|
|
103,118
|
|
|
8,337
|
|
|
Class 529-A
|
|
|
60,850
|
|
|
4,067
|
|
|
18,352
|
|
|
1,070
|
|
|
(43,463
|
)
|
|
(3,017
|
)
|
|
35,739
|
|
|
2,120
|
|
|
Class 529-B
|
|
|
6,477
|
|
|
450
|
|
|
3,329
|
|
|
201
|
|
|
(7,032
|
)
|
|
(509
|
)
|
|
2,774
|
|
|
142
|
|
|
Class 529-C
|
|
|
18,181
|
|
|
1,259
|
|
|
5,766
|
|
|
348
|
|
|
(18,794
|
)
|
|
(1,352
|
)
|
|
5,153
|
|
|
255
|
|
|
Class 529-E
|
|
|
4,038
|
|
|
281
|
|
|
1,043
|
|
|
61
|
|
|
(2,761
|
)
|
|
(192
|
)
|
|
2,320
|
|
|
150
|
|
|
Class 529-F-1
|
|
|
4,736
|
|
|
311
|
|
|
749
|
|
|
44
|
|
|
(3,407
|
)
|
|
(237
|
)
|
|
2,078
|
|
|
118
|
|
|
Class R-1
|
|
|
10,855
|
|
|
723
|
|
|
1,609
|
|
|
96
|
|
|
(10,141
|
)
|
|
(705
|
)
|
|
2,323
|
|
|
114
|
|
|
Class R-2
|
|
|
100,826
|
|
|
6,952
|
|
|
16,308
|
|
|
977
|
|
|
(107,330
|
)
|
|
(7,410
|
)
|
|
9,804
|
|
|
519
|
|
|
Class R-3
|
|
|
144,480
|
|
|
9,603
|
|
|
27,641
|
|
|
1,627
|
|
|
(255,728
|
)
|
|
(17,046
|
)
|
|
(83,607
|
)
|
|
(5,816
|
)
|
|
Class R-4
|
|
|
130,418
|
|
|
8,744
|
|
|
16,066
|
|
|
938
|
|
|
(232,374
|
)
|
|
(14,267
|
)
|
|
(85,890
|
)
|
|
(4,585
|
)
|
|
Class R-5
|
|
|
415,141
|
|
|
26,109
|
|
|
35,408
|
|
|
2,051
|
|
|
(174,905
|
)
|
|
(11,887
|
)
|
|
275,644
|
|
|
16,273
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net increase
(decrease)
|
|
$
|
3,790,629
|
|
|
261,755
|
|
$
|
899,873
|
|
|
52,662
|
|
$
|
(5,851,025
|
)
|
|
(407,424
|
)
|
$
|
(1,160,523
|
)
|
|
(93,007
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Includes exchanges between share classes of the fund.
|
|
2
|
Class
R-6 was offered beginning May 1, 2009.
|
|
3
|
Class
F-2 was offered beginning August 1, 2008.
|
7. Investment
transactions
The fund made purchases and sales
of investment securities, excluding short-term securities and U.S. government
obligations, if any, of $4,657,616,000 and $5,339,823,000, respectively, during
the year ended February 28, 2010.
AMCAP
Fund 25
Financial highlights
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss)
from investment operations 2 |
|
Dividends and
distributions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
Net
asset
value, beginning of period |
|
Net
investment income (loss) |
|
Net
gains
(losses) on securities (both realized and unrealized) |
|
Total
from
investment operations |
|
Dividends
(from net investment income) |
|
Distributions
(from capital gains) |
|
Total
dividends and distributions |
|
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 reimburse- ments/ waivers |
|
Ratio
of
expenses to average net assets after reimburse- ments/ waivers 4 |
|
Ratio
of
net income (loss) to average net assets 4 |
|
|||||||||||||
|
Class A:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
2/28/2010
|
|
$
|
10.44
|
|
$
|
.08
|
|
$
|
6.19
|
|
$
|
6.27
|
|
$
|
(.16
|
)
|
$
|
—
|
|
$
|
(.16
|
)
|
$
|
16.55
|
|
|
60.46
|
%
|
$
|
12,973
|
|
|
.78
|
%
|
|
.78
|
%
|
|
.57
|
%
|
|
Year ended
2/28/2009
|
|
|
18.41
|
|
|
.16
|
|
|
(7.43
|
)
|
|
(7.27
|
)
|
|
—
|
|
|
(.70
|
)
|
|
(.70
|
)
|
|
10.44
|
|
|
(40.97
|
)
|
|
8,687
|
|
|
.74
|
|
|
.71
|
|
|
1.03
|
|
|
Year ended
2/29/2008
|
|
|
20.29
|
|
|
.25
|
|
|
(.77
|
)
|
|
(.52
|
)
|
|
(.24
|
)
|
|
(1.12
|
)
|
|
(1.36
|
)
|
|
18.41
|
|
|
(3.14
|
)
|
|
16,387
|
|
|
.68
|
|
|
.65
|
|
|
1.21
|
|
|
Year ended
2/28/2007
|
|
|
19.48
|
|
|
.18
|
|
|
1.37
|
|
|
1.55
|
|
|
(.16
|
)
|
|
(.58
|
)
|
|
(.74
|
)
|
|
20.29
|
|
|
8.07
|
|
|
17,341
|
|
|
.68
|
|
|
.65
|
|
|
.91
|
|
|
Year ended
2/28/2006
|
|
|
18.02
|
|
|
.12
|
|
|
1.82
|
|
|
1.94
|
|
|
(.09
|
)
|
|
(.39
|
)
|
|
(.48
|
)
|
|
19.48
|
|
|
10.87
|
|
|
16,091
|
|
|
.68
|
|
|
.65
|
|
|
.66
|
|
|
Class B:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
2/28/2010
|
|
|
9.98
|
|
|
(.03
|
)
|
|
5.93
|
|
|
5.90
|
|
|
(.03
|
)
|
|
—
|
|
|
(.03
|
)
|
|
15.85
|
|
|
59.16
|
|
|
632
|
|
|
1.55
|
|
|
1.55
|
|
|
(.20
|
)
|
|
Year ended
2/28/2009
|
|
|
17.75
|
|
|
.04
|
|
|
(7.11
|
)
|
|
(7.07
|
)
|
|
—
|
|
|
(.70
|
)
|
|
(.70
|
)
|
|
9.98
|
|
|
(41.38
|
)
|
|
499
|
|
|
1.50
|
|
|
1.48
|
|
|
.26
|
|
|
Year ended
2/29/2008
|
|
|
19.59
|
|
|
.09
|
|
|
(.76
|
)
|
|
(.67
|
)
|
|
(.05
|
)
|
|
(1.12
|
)
|
|
(1.17
|
)
|
|
17.75
|
|
|
(3.92
|
)
|
|
1,031
|
|
|
1.45
|
|
|
1.42
|
|
|
.44
|
|
|
Year ended
2/28/2007
|
|
|
18.83
|
|
|
.02
|
|
|
1.32
|
|
|
1.34
|
|
|
—
|
|
|
(.58
|
)
|
|
(.58
|
)
|
|
19.59
|
|
|
7.23
|
|
|
1,163
|
|
|
1.46
|
|
|
1.42
|
|
|
.13
|
|
|
Year ended
2/28/2006
|
|
|
17.48
|
|
|
(.02
|
)
|
|
1.76
|
|
|
1.74
|
|
|
—
|
|
|
(.39
|
)
|
|
(.39
|
)
|
|
18.83
|
|
|
10.04
|
|
|
1,139
|
|
|
1.47
|
|
|
1.44
|
|
|
(.13
|
)
|
|
Class C:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
2/28/2010
|
|
|
9.90
|
|
|
(.03
|
)
|
|
5.88
|
|
|
5.85
|
|
|
(.03
|
)
|
|
—
|
|
|
(.03
|
)
|
|
15.72
|
|
|
59.18
|
|
|
1,065
|
|
|
1.56
|
|
|
1.56
|
|
|
(.21
|
)
|
|
Year ended
2/28/2009
|
|
|
17.63
|
|
|
.03
|
|
|
(7.06
|
)
|
|
(7.03
|
)
|
|
—
|
|
|
(.70
|
)
|
|
(.70
|
)
|
|
9.90
|
|
|
(41.44
|
)
|
|
736
|
|
|
1.52
|
|
|
1.49
|
|
|
.24
|
|
|
Year ended
2/29/2008
|
|
|
19.46
|
|
|
.08
|
|
|
(.74
|
)
|
|
(.66
|
)
|
|
(.05
|
)
|
|
(1.12
|
)
|
|
(1.17
|
)
|
|
17.63
|
|
|
(3.93
|
)
|
|
1,519
|
|
|
1.50
|
|
|
1.47
|
|
|
.39
|
|
|
Year ended
2/28/2007
|
|
|
18.72
|
|
|
.01
|
|
|
1.31
|
|
|
1.32
|
|
|
—
|
|
|
(.58
|
)
|
|
(.58
|
)
|
|
19.46
|
|
|
7.16
|
|
|
1,667
|
|
|
1.51
|
|
|
1.48
|
|
|
.07
|
|
|
Year ended
2/28/2006
|
|
|
17.39
|
|
|
(.03
|
)
|
|
1.75
|
|
|
1.72
|
|
|
—
|
|
|
(.39
|
)
|
|
(.39
|
)
|
|
18.72
|
|
|
9.98
|
|
|
1,607
|
|
|
1.52
|
|
|
1.49
|
|
|
(.18
|
)
|
|
Class F-1:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
2/28/2010
|
|
|
10.39
|
|
|
.09
|
|
|
6.16
|
|
|
6.25
|
|
|
(.16
|
)
|
|
—
|
|
|
(.16
|
)
|
|
16.48
|
|
|
60.46
|
|
|
1,421
|
|
|
.74
|
|
|
.74
|
|
|
.61
|
|
|
Year ended
2/28/2009
|
|
|
18.31
|
|
|
.16
|
|
|
(7.38
|
)
|
|
(7.22
|
)
|
|
—
|
|
|
(.70
|
)
|
|
(.70
|
)
|
|
10.39
|
|
|
(40.92
|
)
|
|
1,077
|
|
|
.70
|
|
|
.67
|
|
|
1.06
|
|
|
Year ended
2/29/2008
|
|
|
20.20
|
|
|
.25
|
|
|
(.78
|
)
|
|
(.53
|
)
|
|
(.24
|
)
|
|
(1.12
|
)
|
|
(1.36
|
)
|
|
18.31
|
|
|
(3.19
|
)
|
|
2,492
|
|
|
.68
|
|
|
.65
|
|
|
1.20
|
|
|
Year ended
2/28/2007
|
|
|
19.40
|
|
|
.18
|
|
|
1.36
|
|
|
1.54
|
|
|
(.16
|
)
|
|
(.58
|
)
|
|
(.74
|
)
|
|
20.20
|
|
|
8.06
|
|
|
2,506
|
|
|
.68
|
|
|
.65
|
|
|
.90
|
|
|
Year ended
2/28/2006
|
|
|
17.94
|
|
|
.12
|
|
|
1.82
|
|
|
1.94
|
|
|
(.09
|
)
|
|
(.39
|
)
|
|
(.48
|
)
|
|
19.40
|
|
|
10.90
|
|
|
2,132
|
|
|
.71
|
|
|
.68
|
|
|
.63
|
|
|
Class F-2:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
2/28/2010
|
|
|
10.46
|
|
|
.12
|
|
|
6.20
|
|
|
6.32
|
|
|
(.18
|
)
|
|
—
|
|
|
(.18
|
)
|
|
16.60
|
|
|
60.82
|
|
|
367
|
|
|
.52
|
|
|
.52
|
|
|
.79
|
|
|
Period from 8/1/2008
to 2/28/2009 |
|
|
16.52
|
|
|
.10
|
|
|
(6.16
|
)
|
|
(6.06
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10.46
|
|
|
(36.68
|
)
|
|
87
|
|
|
.50
|
5
|
|
.48
|
5
|
|
1.50
|
5
|
|
Class
529-A:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
2/28/2010
|
|
|
10.41
|
|
|
.08
|
|
|
6.17
|
|
|
6.25
|
|
|
(.17
|
)
|
|
—
|
|
|
(.17
|
)
|
|
16.49
|
|
|
60.35
|
|
|
474
|
|
|
.83
|
|
|
.83
|
|
|
.51
|
|
|
Year ended
2/28/2009
|
|
|
18.36
|
|
|
.15
|
|
|
(7.40
|
)
|
|
(7.25
|
)
|
|
—
|
|
|
(.70
|
)
|
|
(.70
|
)
|
|
10.41
|
|
|
(40.97
|
)
|
|
287
|
|
|
.79
|
|
|
.76
|
|
|
.98
|
|
|
Year ended
2/29/2008
|
|
|
20.25
|
|
|
.23
|
|
|
(.78
|
)
|
|
(.55
|
)
|
|
(.22
|
)
|
|
(1.12
|
)
|
|
(1.34
|
)
|
|
18.36
|
|
|
(3.26
|
)
|
|
467
|
|
|
.76
|
|
|
.73
|
|
|
1.12
|
|
|
Year ended
2/28/2007
|
|
|
19.45
|
|
|
.17
|
|
|
1.36
|
|
|
1.53
|
|
|
(.15
|
)
|
|
(.58
|
)
|
|
(.73
|
)
|
|
20.25
|
|
|
7.99
|
|
|
432
|
|
|
.74
|
|
|
.71
|
|
|
.84
|
|
|
Year ended
2/28/2006
|
|
|
17.99
|
|
|
.11
|
|
|
1.82
|
|
|
1.93
|
|
|
(.08
|
)
|
|
(.39
|
)
|
|
(.47
|
)
|
|
19.45
|
|
|
10.85
|
|
|
339
|
|
|
.75
|
|
|
.72
|
|
|
.60
|
|
|
Class
529-B:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
2/28/2010
|
|
|
10.00
|
|
|
(.04
|
)
|
|
5.93
|
|
|
5.89
|
|
|
(.04
|
)
|
|
—
|
|
|
(.04
|
)
|
|
15.85
|
|
|
59.02
|
|
|
72
|
|
|
1.64
|
|
|
1.64
|
|
|
(.29
|
)
|
|
Year ended
2/28/2009
|
|
|
17.81
|
|
|
.02
|
|
|
(7.13
|
)
|
|
(7.11
|
)
|
|
—
|
|
|
(.70
|
)
|
|
(.70
|
)
|
|
10.00
|
|
|
(41.47
|
)
|
|
48
|
|
|
1.60
|
|
|
1.57
|
|
|
.17
|
|
|
Year ended
2/29/2008
|
|
|
19.65
|
|
|
.06
|
|
|
(.74
|
)
|
|
(.68
|
)
|
|
(.04
|
)
|
|
(1.12
|
)
|
|
(1.16
|
)
|
|
17.81
|
|
|
(3.99
|
)
|
|
84
|
|
|
1.57
|
|
|
1.54
|
|
|
.31
|
|
|
Year ended
2/28/2007
|
|
|
18.91
|
|
|
—
6
|
|
|
1.32
|
|
|
1.32
|
|
|
—
|
|
|
(.58
|
)
|
|
(.58
|
)
|
|
19.65
|
|
|
7.09
|
|
|
84
|
|
|
1.57
|
|
|
1.54
|
|
|
.01
|
|
|
Year ended
2/28/2006
|
|
|
17.58
|
|
|
(.05
|
)
|
|
1.77
|
|
|
1.72
|
|
|
—
|
|
|
(.39
|
)
|
|
(.39
|
)
|
|
18.91
|
|
|
9.87
|
|
|
73
|
|
|
1.61
|
|
|
1.58
|
|
|
(.27
|
)
|
|
Class
529-C:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
2/28/2010
|
|
|
10.00
|
|
|
(.04
|
)
|
|
5.95
|
|
|
5.91
|
|
|
(.05
|
)
|
|
—
|
|
|
(.05
|
)
|
|
15.86
|
|
|
59.02
|
|
|
134
|
|
|
1.63
|
|
|
1.63
|
|
|
(.28
|
)
|
|
Year ended
2/28/2009
|
|
|
17.82
|
|
|
.03
|
|
|
(7.15
|
)
|
|
(7.12
|
)
|
|
—
|
|
|
(.70
|
)
|
|
(.70
|
)
|
|
10.00
|
|
|
(41.44
|
)
|
|
83
|
|
|
1.59
|
|
|
1.57
|
|
|
.17
|
|
|
Year ended
2/29/2008
|
|
|
19.67
|
|
|
.06
|
|
|
(.74
|
)
|
|
(.68
|
)
|
|
(.05
|
)
|
|
(1.12
|
)
|
|
(1.17
|
)
|
|
17.82
|
|
|
(4.00
|
)
|
|
144
|
|
|
1.57
|
|
|
1.54
|
|
|
.31
|
|
|
Year ended
2/28/2007
|
|
|
18.93
|
|
|
—
6
|
|
|
1.32
|
|
|
1.32
|
|
|
—
|
|
|
(.58
|
)
|
|
(.58
|
)
|
|
19.67
|
|
|
7.08
|
|
|
136
|
|
|
1.56
|
|
|
1.53
|
|
|
.02
|
|
|
Year ended
2/28/2006
|
|
|
17.59
|
|
|
(.05
|
)
|
|
1.78
|
|
|
1.73
|
|
|
—
|
|
|
(.39
|
)
|
|
(.39
|
)
|
|
18.93
|
|
|
9.92
|
|
|
110
|
|
|
1.59
|
|
|
1.56
|
|
|
(.25
|
)
|
|
Class
529-E:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
2/28/2010
|
|
|
10.28
|
|
|
.03
|
|
|
6.10
|
|
|
6.13
|
|
|
(.13
|
)
|
|
—
|
|
|
(.13
|
)
|
|
16.28
|
|
|
59.86
|
|
|
27
|
|
|
1.13
|
|
|
1.13
|
|
|
.22
|
|
|
Year ended
2/28/2009
|
|
|
18.20
|
|
|
.10
|
|
|
(7.32
|
)
|
|
(7.22
|
)
|
|
—
|
|
|
(.70
|
)
|
|
(.70
|
)
|
|
10.28
|
|
|
(41.17
|
)
|
|
17
|
|
|
1.09
|
|
|
1.06
|
|
|
.69
|
|
|
Year ended
2/29/2008
|
|
|
20.07
|
|
|
.17
|
|
|
(.76
|
)
|
|
(.59
|
)
|
|
(.16
|
)
|
|
(1.12
|
)
|
|
(1.28
|
)
|
|
18.20
|
|
|
(3.50
|
)
|
|
27
|
|
|
1.06
|
|
|
1.03
|
|
|
.82
|
|
|
Year ended
2/28/2007
|
|
|
19.28
|
|
|
.10
|
|
|
1.35
|
|
|
1.45
|
|
|
(.08
|
)
|
|
(.58
|
)
|
|
(.66
|
)
|
|
20.07
|
|
|
7.66
|
|
|
25
|
|
|
1.05
|
|
|
1.02
|
|
|
.54
|
|
|
Year ended
2/28/2006
|
|
|
17.85
|
|
|
.05
|
|
|
1.80
|
|
|
1.85
|
|
|
(.03
|
)
|
|
(.39
|
)
|
|
(.42
|
)
|
|
19.28
|
|
|
10.46
|
|
|
20
|
|
|
1.08
|
|
|
1.05
|
|
|
.27
|
|
See page 27 for
footnotes.
26 AMCAP
Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss)
from investment operations 2 |
|
Dividends and
distributions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
Net
asset
value, beginning of period |
|
Net
investment income (loss) |
|
Net
gains
(losses) on securities (both realized and unrealized) |
|
Total
from
investment operations |
|
Dividends
(from net investment income) |
|
Distributions
(from capital gains) |
|
Total
dividends and distributions |
|
Net
asset value, end of period |
|
Total
return 4 |
|
Net
assets, end of period (in millions) |
|
Ratio
of
expenses to average net assets before reimburse- ments/ waivers |
|
Ratio
of
expenses to average net assets after reimburse- ments/ waivers 4 |
|
Ratio
of
net income (loss) to average net assets 4 |
|
|||||||||||||
|
Class
529-F-1:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
2/28/2010
|
|
$
|
10.43
|
|
$
|
.11
|
|
$
|
6.18
|
|
$
|
6.29
|
|
$
|
(.20
|
)
|
$
|
—
|
|
$
|
(.20
|
)
|
$
|
16.52
|
|
|
60.70
|
%
|
$
|
20
|
|
|
.63
|
%
|
|
.63
|
%
|
|
.72
|
%
|
|
Year ended
2/28/2009
|
|
|
18.36
|
|
|
.18
|
|
|
(7.41
|
)
|
|
(7.23
|
)
|
|
—
|
|
|
(.70
|
)
|
|
(.70
|
)
|
|
10.43
|
|
|
(40.86
|
)
|
|
12
|
|
|
.59
|
|
|
.56
|
|
|
1.18
|
|
|
Year ended
2/29/2008
|
|
|
20.26
|
|
|
.27
|
|
|
(.77
|
)
|
|
(.50
|
)
|
|
(.28
|
)
|
|
(1.12
|
)
|
|
(1.40
|
)
|
|
18.36
|
|
|
(3.07
|
)
|
|
18
|
|
|
.56
|
|
|
.53
|
|
|
1.30
|
|
|
Year ended
2/28/2007
|
|
|
19.46
|
|
|
.20
|
|
|
1.37
|
|
|
1.57
|
|
|
(.19
|
)
|
|
(.58
|
)
|
|
(.77
|
)
|
|
20.26
|
|
|
8.20
|
|
|
14
|
|
|
.55
|
|
|
.52
|
|
|
1.04
|
|
|
Year ended
2/28/2006
|
|
|
17.99
|
|
|
.14
|
|
|
1.82
|
|
|
1.96
|
|
|
(.10
|
)
|
|
(.39
|
)
|
|
(.49
|
)
|
|
19.46
|
|
|
10.99
|
|
|
10
|
|
|
.62
|
|
|
.59
|
|
|
.73
|
|
|
Class R-1:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
2/28/2010
|
|
|
10.09
|
|
|
(.03
|
)
|
|
6.00
|
|
|
5.97
|
|
|
(.07
|
)
|
|
—
|
|
|
(.07
|
)
|
|
15.99
|
|
|
59.14
|
|
|
40
|
|
|
1.53
|
|
|
1.53
|
|
|
(.19
|
)
|
|
Year ended
2/28/2009
|
|
|
17.95
|
|
|
.04
|
|
|
(7.20
|
)
|
|
(7.16
|
)
|
|
—
|
|
|
(.70
|
)
|
|
(.70
|
)
|
|
10.09
|
|
|
(41.36
|
)
|
|
24
|
|
|
1.48
|
|
|
1.45
|
|
|
.29
|
|
|
Year ended
2/29/2008
|
|
|
19.80
|
|
|
.08
|
|
|
(.76
|
)
|
|
(.68
|
)
|
|
(.05
|
)
|
|
(1.12
|
)
|
|
(1.17
|
)
|
|
17.95
|
|
|
(3.93
|
)
|
|
40
|
|
|
1.50
|
|
|
1.47
|
|
|
.39
|
|
|
Year ended
2/28/2007
|
|
|
19.04
|
|
|
.02
|
|
|
1.32
|
|
|
1.34
|
|
|
—
|
|
|
(.58
|
)
|
|
(.58
|
)
|
|
19.80
|
|
|
7.14
|
|
|
43
|
|
|
1.50
|
|
|
1.47
|
|
|
.09
|
|
|
Year ended
2/28/2006
|
|
|
17.69
|
|
|
(.03
|
)
|
|
1.77
|
|
|
1.74
|
|
|
—
|
|
|
(.39
|
)
|
|
(.39
|
)
|
|
19.04
|
|
|
9.92
|
|
|
35
|
|
|
1.55
|
|
|
1.51
|
|
|
(.19
|
)
|
|
Class R-2:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
2/28/2010
|
|
|
10.08
|
|
|
(.04
|
)
|
|
5.98
|
|
|
5.94
|
|
|
(.05
|
)
|
|
—
|
|
|
(.05
|
)
|
|
15.97
|
|
|
59.02
|
|
|
383
|
|
|
1.60
|
|
|
1.60
|
|
|
(.25
|
)
|
|
Year ended
2/28/2009
|
|
|
17.94
|
|
|
.03
|
|
|
(7.19
|
)
|
|
(7.16
|
)
|
|
—
|
|
|
(.70
|
)
|
|
(.70
|
)
|
|
10.08
|
|
|
(41.44
|
)
|
|
238
|
|
|
1.59
|
|
|
1.57
|
|
|
.17
|
|
|
Year ended
2/29/2008
|
|
|
19.79
|
|
|
.08
|
|
|
(.76
|
)
|
|
(.68
|
)
|
|
(.05
|
)
|
|
(1.12
|
)
|
|
(1.17
|
)
|
|
17.94
|
|
|
(3.95
|
)
|
|
415
|
|
|
1.53
|
|
|
1.47
|
|
|
.38
|
|
|
Year ended
2/28/2007
|
|
|
19.03
|
|
|
.02
|
|
|
1.32
|
|
|
1.34
|
|
|
—
|
|
|
(.58
|
)
|
|
(.58
|
)
|
|
19.79
|
|
|
7.15
|
|
|
427
|
|
|
1.59
|
|
|
1.46
|
|
|
.09
|
|
|
Year ended
2/28/2006
|
|
|
17.66
|
|
|
(.03
|
)
|
|
1.79
|
|
|
1.76
|
|
|
—
|
|
|
(.39
|
)
|
|
(.39
|
)
|
|
19.03
|
|
|
10.05
|
|
|
358
|
|
|
1.66
|
|
|
1.48
|
|
|
(.17
|
)
|
|
Class R-3:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
2/28/2010
|
|
|
10.29
|
|
|
.04
|
|
|
6.11
|
|
|
6.15
|
|
|
(.11
|
)
|
|
—
|
|
|
(.11
|
)
|
|
16.33
|
|
|
60.02
|
|
|
541
|
|
|
1.08
|
|
|
1.08
|
|
|
.27
|
|
|
Year ended
2/28/2009
|
|
|
18.21
|
|
|
.11
|
|
|
(7.33
|
)
|
|
(7.22
|
)
|
|
—
|
|
|
(.70
|
)
|
|
(.70
|
)
|
|
10.29
|
|
|
(41.15
|
)
|
|
349
|
|
|
1.05
|
|
|
1.02
|
|
|
.70
|
|
|
Year ended
2/29/2008
|
|
|
20.08
|
|
|
.18
|
|
|
(.78
|
)
|
|
(.60
|
)
|
|
(.15
|
)
|
|
(1.12
|
)
|
|
(1.27
|
)
|
|
18.21
|
|
|
(3.51
|
)
|
|
724
|
|
|
1.04
|
|
|
1.01
|
|
|
.85
|
|
|
Year ended
2/28/2007
|
|
|
19.28
|
|
|
.11
|
|
|
1.35
|
|
|
1.46
|
|
|
(.08
|
)
|
|
(.58
|
)
|
|
(.66
|
)
|
|
20.08
|
|
|
7.68
|
|
|
747
|
|
|
1.04
|
|
|
1.01
|
|
|
.55
|
|
|
Year ended
2/28/2006
|
|
|
17.86
|
|
|
.05
|
|
|
1.80
|
|
|
1.85
|
|
|
(.04
|
)
|
|
(.39
|
)
|
|
(.43
|
)
|
|
19.28
|
|
|
10.45
|
|
|
662
|
|
|
1.06
|
|
|
1.02
|
|
|
.29
|
|
|
Class R-4:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
2/28/2010
|
|
|
10.40
|
|
|
.08
|
|
|
6.16
|
|
|
6.24
|
|
|
(.17
|
)
|
|
—
|
|
|
(.17
|
)
|
|
16.47
|
|
|
60.42
|
|
|
378
|
|
|
.77
|
|
|
.77
|
|
|
.57
|
|
|
Year ended
2/28/2009
|
|
|
18.33
|
|
|
.16
|
|
|
(7.39
|
)
|
|
(7.23
|
)
|
|
—
|
|
|
(.70
|
)
|
|
(.70
|
)
|
|
10.40
|
|
|
(40.93
|
)
|
|
252
|
|
|
.73
|
|
|
.70
|
|
|
1.04
|
|
|
Year ended
2/29/2008
|
|
|
20.22
|
|
|
.24
|
|
|
(.78
|
)
|
|
(.54
|
)
|
|
(.23
|
)
|
|
(1.12
|
)
|
|
(1.35
|
)
|
|
18.33
|
|
|
(3.22
|
)
|
|
528
|
|
|
.73
|
|
|
.70
|
|
|
1.16
|
|
|
Year ended
2/28/2007
|
|
|
19.42
|
|
|
.17
|
|
|
1.35
|
|
|
1.52
|
|
|
(.14
|
)
|
|
(.58
|
)
|
|
(.72
|
)
|
|
20.22
|
|
|
7.97
|
|
|
555
|
|
|
.73
|
|
|
.70
|
|
|
.85
|
|
|
Year ended
2/28/2006
|
|
|
17.99
|
|
|
.11
|
|
|
1.81
|
|
|
1.92
|
|
|
(.10
|
)
|
|
(.39
|
)
|
|
(.49
|
)
|
|
19.42
|
|
|
10.79
|
|
|
405
|
|
|
.75
|
|
|
.71
|
|
|
.61
|
|
|
Class R-5:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
2/28/2010
|
|
|
10.50
|
|
|
.13
|
|
|
6.22
|
|
|
6.35
|
|
|
(.21
|
)
|
|
—
|
|
|
(.21
|
)
|
|
16.64
|
|
|
60.97
|
|
|
741
|
|
|
.47
|
|
|
.47
|
|
|
.89
|
|
|
Year ended
2/28/2009
|
|
|
18.45
|
|
|
.20
|
|
|
(7.45
|
)
|
|
(7.25
|
)
|
|
—
|
|
|
(.70
|
)
|
|
(.70
|
)
|
|
10.50
|
|
|
(40.77
|
)
|
|
619
|
|
|
.43
|
|
|
.40
|
|
|
1.35
|
|
|
Year ended
2/29/2008
|
|
|
20.35
|
|
|
.30
|
|
|
(.77
|
)
|
|
(.47
|
)
|
|
(.31
|
)
|
|
(1.12
|
)
|
|
(1.43
|
)
|
|
18.45
|
|
|
(2.93
|
)
|
|
787
|
|
|
.43
|
|
|
.40
|
|
|
1.43
|
|
|
Year ended
2/28/2007
|
|
|
19.55
|
|
|
.23
|
|
|
1.36
|
|
|
1.59
|
|
|
(.21
|
)
|
|
(.58
|
)
|
|
(.79
|
)
|
|
20.35
|
|
|
8.29
|
|
|
514
|
|
|
.43
|
|
|
.40
|
|
|
1.15
|
|
|
Year ended
2/28/2006
|
|
|
18.07
|
|
|
.17
|
|
|
1.83
|
|
|
2.00
|
|
|
(.13
|
)
|
|
(.39
|
)
|
|
(.52
|
)
|
|
19.55
|
|
|
11.19
|
|
|
359
|
|
|
.44
|
|
|
.41
|
|
|
.90
|
|
|
Class R-6:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period from 5/1/2009 to
2/28/2010
|
|
|
13.04
|
|
|
.11
|
|
|
3.61
|
|
|
3.72
|
|
|
(.16
|
)
|
|
—
|
|
|
(.16
|
)
|
|
16.60
|
|
|
28.85
|
|
|
380
|
|
|
.42
5
|
|
|
.42
5
|
|
|
.90
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended February 28 or
29
|
|
|||||||||||||
|
|
|
|
||||||||||||||
|
|
|
2010
|
|
2009
|
|
2008
|
|
2007
|
|
2006
|
|
|||||
|
|
|
|
||||||||||||||
|
Portfolio turnover rate for
all classes of shares
|
|
|
29%
|
|
|
37%
|
|
|
29%
|
|
|
20%
|
|
|
20%
|
|
|
|
|
|
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
CRMC. During some of the periods shown, CRMC reduced fees for investment
advisory services. 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
|
Annualized.
|
|
6
|
Amount less than $.01.
|
See Notes to Financial
Statements
AMCAP
Fund 27
REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To
the Shareholders and Board of Directors of
AMCAP Fund,
Inc.:
We
have audited the accompanying statement of assets and liabilities, including the
investment portfolio and the summary investment portfolio, of AMCAP Fund, Inc.
(the “Fund”), as of February 28, 2010, and the related statement of operations
for the year then ended, the statements of changes in net assets for each of the
two years in the period then ended, and the financial highlights for each of the
periods presented. These financial statements and financial
highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We
conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements and financial highlights are free of material
misstatement. The Fund is not required to have, nor were we engaged
to perform, an audit of its internal control over financial
reporting. Our audits included consideration of internal control over
financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Fund’s internal control over financial
reporting. Accordingly, we express no such opinion. An
audit also includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. Our procedures included
confirmation of securities owned as of February 28, 2010, by correspondence with
the custodian and brokers; where replies were not received from brokers, we
performed other auditing procedures. We believe that our audits
provide a reasonable basis for our opinion.
In
our opinion, the financial statements and financial highlights referred to above
present fairly, in all material respects, the financial position of AMCAP Fund,
Inc. as of February 28, 2010, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the period
then ended, and the financial highlights for each of the periods presented, in
conformity with accounting principles generally accepted in the United States of
America.
DELOITTE &
TOUCHE LLP
Costa Mesa,
California
April 6,
2010
AMCAP
Fund
Part C
Other
Information
|
Item 28.
|
Exhibits for Registration
Statement
(1940 Act No. 811-01435 and 1933 Act No.
002-26516)
|
|
(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
5/1/10
|
|
(e)
|
Underwriting Contracts
–
Form of Principal Underwriting Agreement; Form of Selling Group Agreement;
Form of Bank/Trust Company Selling Group Agreement; Form of Class F Share
Participation Agreement; and Form of Bank/Trust Company Participation
Agreement for Class F Shares
|
|
(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 77 filed 4/27/07)
|
|
(h)
|
Other Material Contracts
– Form of Shareholder Services Agreement; Form of Indemnification
Agreement; Form of Administrative Services Agreement; and Form of
Agreement and Plan of
Reorganization
|
|
(i)
|
Legal Opinion
– Legal
Opinion
|
|
(j)
|
Other Opinions
– Consent
of Independent Registered Public Accounting
Firm
|
|
(k)
|
Omitted Financial
Statements
– None
|
|
(l)
|
Initial Capital
Agreements
– None
|
|
(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 and R-1, R-2,
R-3 and R-4
|
|
(n)
|
Rule 18f-3
– Form of
Multiple Class Plan
|
|
(o)
|
Reserved
|
|
(p)
|
Code of Ethics
– Code of
Ethics for The Capital Group Companies dated March 2010; and
Code of Ethics for Registrant dated December
2005
|
Item
29. Persons
Controlled by or Under Common Control with the Fund
None
Item
30. Indemnification
The Registrant is a
joint-insured under Investment Adviser/Mutual Fund Errors and Omissions
Policies, which insure its officers and trustees against certain liabilities.
However, in no event will Registrant maintain insurance to indemnify any such
person for any act for which Registrant itself is not permitted to indemnify the
individual.
Article 8 of the
Registrant's Declaration of Trust as well as the indemnification agreements that
the Registrant has entered into with each of its trustees who is not an
“interested person” of the Registrant (as defined under the Investment Company
Act of 1940, as amended), provide in effect that the Registrant will indemnify
its officers and trustees against any liability or expenses actually and
reasonably incurred by such person in any proceeding arising out of or in
connection with his or her service to the Registrant, to the fullest extent
permitted by applicable law, subject to certain conditions. In
accordance with Section 17(h) and 17(i) of the Investment Company Act of 1940,
as amended, and their respective terms, these provisions do not protect any
person against any liability to the Registrant or its shareholders to which such
person would otherwise be subject by reason of willful misfeasance, bad faith,
gross negligence, or reckless disregard of the duties involved in the conduct of
his or her office.
Insofar as
indemnification for liability arising under the Securities Act of 1933 may be
permitted to trustees, officers and controlling persons of the Registrant
pursuant to the foregoing provisions, or otherwise, the Registrant has been
advised that in the opinion of the U.S. Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the Registrant of expenses incurred
or paid by a trustee, officer or controlling person of the Registrant in the
successful defense of any action, suit or proceeding) is asserted by such
trustee, officer or controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of
such issue.
Registrant will
comply with the indemnification requirements contained in the Investment Company
Act of 1940, as amended, and Release Nos. 7221 (June 9, 1972) and 11330
(September 4, 1980).
Item
31. Business
and Other Connections of the Investment Adviser
None
Item
32. Principal
Underwriters
(a) American
Funds Distributors, Inc. is the Principal Underwriter of shares of: AMCAP Fund,
American Balanced Fund, The American Funds Income Series, American Funds Money
Market Fund, American Funds Short-Term Tax-Exempt Bond Fund, American Funds
Target Date Retirement Series, Inc., The American Funds Tax-Exempt Series
I, The American Funds Tax-Exempt Series II, American High-Income Municipal Bond
Fund, Inc., American High-Income Trust, American Mutual Fund, Inc., The Bond
Fund of America, Inc., Capital Income Builder, Inc., Capital Private Client
Services Funds, Capital World Bond Fund, Inc., Capital World Growth and Income
Fund, Inc., Emerging Markets Growth Fund, Inc., Endowments, EuroPacific Growth
Fund, Fundamental Investors, Inc., The Growth Fund of America, Inc., The Income
Fund of America, Inc., Intermediate Bond Fund of America, International Growth
and Income Fund, The Investment Company of America, Limited Term Tax-Exempt
Bond Fund of America, The New Economy Fund, New Perspective Fund, Inc., New
World Fund, Inc., Short-Term Bond Fund of America, Inc., SMALLCAP World Fund,
Inc., The Tax-Exempt Bond Fund of America, Inc. and Washington Mutual Investors
Fund, Inc.
(b)
|
(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
|
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.
Trammell
|
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
|
(c) None
Item
28. Location
of Accounts and Records
Accounts, books and
other records required by Rules 31a-1 and 31a-2 under the Investment Company Act
of 1940, as amended, are maintained and held in the offices of the Registrant’s
investment adviser, Capital Research and Management Company, 333 South Hope
Street, Los Angeles, California 90071, 6455 Irvine Center Drive, Irvine,
California 92618 and/or 5300 Robin Hood Road, Norfolk, Virginia
23513.
Registrant's records covering shareholder accounts are
maintained and kept by its transfer agent, American Funds Service Company,
6455 Irvine Center Drive, Irvine, California 92618
; 8332 Woodfield Crossing Boulevard, Indianapolis, IN
46240; 10001 North 92
nd
Street, Suite 100, Scottsdale, Arizona 85258; 3500
Wiseman Boulevard, San Antonio, Texas 78251; and 5300 Robin Hood Road, Norfolk,
Virginia 23513.
Registrant's
records covering portfolio transactions are maintained and kept by the fund's
custodian, JPMorgan Chase Bank, 270 Park Avenue, New York, New York
10017-2070.
Item
29. Management
Services
None
Item
30. Undertakings
n/a
SIGNATURES
Pursuant to the
requirements of the Securities Act of 1933 and the Investment Company Act of
1940, the Registrant certifies that it meets all of the requirements for
effectiveness of this registration statement under Rule 485(b) under the
Securities Act of 1933 and has duly caused this registration statement to be
signed on its behalf by the undersigned, duly authorized, in the City of Los
Angeles, and State of California, on the 28
th
day
of April, 2010.
AMCAP
FUND
By:
/s/ Claudia P.
Huntington
(Claudia P.
Huntington, Vice Chairman)
Pursuant to the
requirements of the Securities Act of 1933, this registration statement has been
signed below on April 29, 2009, by the following persons in the capacities
indicated.
|
Signature
|
Title
|
|
|
(1)
|
Principal
Executive Officer:
|
|
|
/s/ Claudia P. Huntington
|
Vice Chairman
of the Board
|
|
|
(Claudia P.
Huntington)
|
||
|
(2)
|
Principal
Financial Officer and Principal Accounting Officer:
|
|
|
/s/ Karl C. Grauman
|
Treasurer
|
|
|
(Karl C.
Grauman)
|
||
|
(3)
|
Trustees:
|
|
|
/s/ Timothy D. Armour
|
President and
Trustee
|
|
|
(Timothy D.
Armour)
|
||
|
Louise H.
Bryson
|
Trustee
|
|
|
Mary Anne
Dolan*
|
Chairman of
the Board
|
|
|
James G.
Ellis
|
Trustee
|
|
|
Martin
Fenton*
|
Trustee
|
|
|
Leonard R.
Fuller*
|
Trustee
|
|
|
/s/ Claudia P. Huntington
|
Vice Chairman
of the Board
|
|
|
(Claudia P.
Huntington)
|
||
|
William D.
Jones*
|
Trustee
|
|
|
L. Daniel
Jorndt*
|
Trustee
|
|
|
William H.
Kling*
|
Trustee
|
|
|
John G.
McDonald*
|
Trustee
|
|
|
Bailey
Morris-Eck*
|
Trustee
|
|
|
Olin C.
Robison*
|
Trustee
|
|
|
Steven B.
Sample*
|
Trustee
|
|
|
*By:
/s/ Vincent P.
Corti
|
||
|
(Vincent P.
Corti, pursuant to a power of attorney filed herewith)
|
Counsel represents
that this amendment does not contain disclosures that would make the amendment
ineligible for effectiveness under the provisions of rule 485(b).
/s/ Timothy W.
McHale
(Timothy W.
McHale)
POWER
OF ATTORNEY
I,
Louise H.
Bryson
, the undersigned Board member of the
following registered investment
companies
(collectively, the “Funds”)
:
|
|
-
|
AMCAP Fund
(File No. 002-26516, File No.
811-01435)
|
|
|
-
|
American
Mutual Fund (File No. 002-10607, File No.
811-00572)
|
|
|
-
|
American
Funds Fundamental Investors (File No. 002-10760, File No.
811-00032)
|
|
|
-
|
The Growth
Fund of America (File No. 002-14728, File No.
811-00862)
|
|
|
-
|
The
Investment Company of America (File No. 002-10811, File No.
811-00116)
|
|
|
-
|
SMALLCAP
World Fund (File No. 033-32785, File No.
811-05888)
|
hereby revoke all
previous powers of attorney I have signed and otherwise act in my name and
behalf in matters involving the Funds and do hereby constitute and
appoint
|
Vincent P.
Corti
Patrick F.
Quan
Kimberly S.
Verdick
Steven I.
Koszalka
Julie E.
Lawton
Tanya
Schneider
Raymond F.
Sullivan, Jr.
Courtney R.
Taylor
|
Karl C.
Grauman
Jeffrey P.
Regal
Carmelo
Spinella
Neal F.
Wellons
|
each of them
singularly, my true and lawful attorneys-in-fact, with full power of
substitution, and with full power to each of them, to sign for me and in my name
in the appropriate capacities, all Registration Statements of the Funds on Form
N-1A, any and all subsequent Amendments, or Post-Effective Amendments to said
Registration Statement on Form N-1A or any successor thereto, and any
supplements or other instruments in connection therewith, and generally to do
all such things in my name and behalf in connection therewith as said
attorneys-in-fact deem necessary or appropriate, to comply with the provisions
of the Securities Act of 1933 and the Investment Company Act of 1940 as amended,
and all related requirements of the U. S. Securities and Exchange
Commission. I hereby ratify and confirm all that said
attorneys-in-fact or their substitutes may do or cause to be done by virtue
hereof.
EXECUTED at
Los Angeles, CA
, this
5
th
day
of March, 2010.
(City, State)
/s/ Louise H.
Bryson
Louise H. Bryson,
Board member
POWER
OF ATTORNEY
I,
Mary Anne
Dolan
, the undersigned Board member of the
following registered investment
companies
(collectively, the “Funds”)
:
|
|
-
|
AMCAP Fund
(File No. 002-26516, File No.
811-01435)
|
|
|
-
|
American
Mutual Fund (File No. 002-10607, File No.
811-00572)
|
|
|
-
|
Capital
Income Builder (File No. 033-12967, File No.
811-05085)
|
|
|
-
|
Capital World
Growth and Income Fund (File No. 033-54444, File No.
811-07338)
|
|
|
-
|
American
Funds Fundamental Investors (File No. 002-10760, File No.
811-00032)
|
|
|
-
|
The Growth
Fund of America (File No. 002-14728, File No.
811-00862)
|
|
|
-
|
The
Investment Company of America (File No. 002-10811, File No.
811-00116)
|
|
|
-
|
The New
Economy Fund (File No. 002-83848, File No.
811-03735)
|
|
|
-
|
SMALLCAP
World Fund (File No. 033-32785, File No.
811-05888)
|
hereby revoke all
previous powers of attorney I have signed and otherwise act in my name and
behalf in matters involving the Funds and do hereby constitute and
appoint
|
Vincent P.
Corti
Patrick F.
Quan
Kimberly S.
Verdick
Steven I.
Koszalka
Julie E.
Lawton
Tanya
Schneider
Raymond F.
Sullivan, Jr.
Courtney R.
Taylor
|
Karl C.
Grauman
Jeffrey P.
Regal
Carmelo
Spinella
Neal F.
Wellons
|
each of them
singularly, my true and lawful attorneys-in-fact, with full power of
substitution, and with full power to each of them, to sign for me and in my name
in the appropriate capacities, all Registration Statements of the Funds on Form
N-1A, any and all subsequent Amendments, or Post-Effective Amendments to said
Registration Statement on Form N-1A or any successor thereto, and any
supplements or other instruments in connection therewith, and generally to do
all such things in my name and behalf in connection therewith as said
attorneys-in-fact deem necessary or appropriate, to comply with the provisions
of the Securities Act of 1933 and the Investment Company Act of 1940 as amended,
and all related requirements of the U. S. Securities and Exchange
Commission. I hereby ratify and confirm all that said
attorneys-in-fact or their substitutes may do or cause to be done by virtue
hereof.
EXECUTED at
Los Angeles, CA
, this
5
th
day
of March, 2010.
(City,
State)
/s/ Mary Anne
Dolan
Mary Anne Dolan,
Board member
POWER
OF ATTORNEY
I,
James G.
Ellis
, the undersigned Board member of the
following registered investment
companies
(collectively, the “Funds”)
:
|
|
-
|
AMCAP Fund
(File No. 002-26516, File No.
811-01435)
|
|
|
-
|
The American
Funds Income Series – U.S. Government Securities Fund (File No. 002-98199,
File No. 811-04318)
|
|
|
-
|
American
Funds Insurance Series (File No. 002-86838, File No.
811-03857)
|
|
|
-
|
American
Funds Money Market Fund (File No. 333-157162, File No.
811-22277)
|
|
|
-
|
American
Funds Short-Term Tax-Exempt Bond Fund (File No. 033-26431, File No.
811-05750)
|
|
|
-
|
American
Funds Target Date Retirement Series (File No. 333-138648, File No.
811-21981)
|
|
|
-
|
The American
Funds Tax-Exempt Series II – The Tax-Exempt Fund of California (File No.
033-06180, File No. 811-04694)
|
|
|
-
|
American
High-Income Municipal Bond Fund (File No. 033-80630, File No.
811-08576)
|
|
|
-
|
American
High-Income Trust (File No. 033-17917, File No.
811-05364)
|
|
|
-
|
American
Mutual Fund (File No. 002-10607, File No.
811-00572)
|
|
|
-
|
The Bond Fund
of America (File No. 002-50700, File No.
811-02444)
|
|
|
-
|
Capital World
Bond Fund (File No. 033-12447, File No.
811-05104)
|
|
|
-
|
Intermediate
Bond Fund of America (File No. 033-19514, File No.
811-05446)
|
|
|
-
|
The
Investment Company of America (File No. 002-10811, File No.
811-00116)
|
|
|
-
|
Limited Term
Tax-Exempt Bond Fund of America (File No. 033-66214, File No.
811-07888)
|
|
|
-
|
Short-Term
Bond Fund of America (File No. 333-135770, File No.
811-21928)
|
|
|
-
|
The
Tax-Exempt Bond Fund of America (File No. 002-49291, File No.
811-02421)
|
hereby revoke all
previous powers of attorney I have signed and otherwise act in my name and
behalf in matters involving the Funds and do hereby constitute and
appoint
|
Vincent P.
Corti
Patrick F.
Quan
Kimberly S.
Verdick
Steven I.
Koszalka
Julie E.
Lawton
Tanya
Schneider
Raymond F.
Sullivan, Jr.
Courtney R.
Taylor
|
Brian D.
Bullard
Karl C.
Grauman
M. Susan
Gupton
Gregory F.
Niland
Carmelo
Spinella
Ari M.
Vinocor
|
each of them
singularly, my true and lawful attorneys-in-fact, with full power of
substitution, and with full power to each of them, to sign for me and in my name
in the appropriate capacities, all Registration Statements of the Funds on Form
N-1A, any and all subsequent Amendments, or Post-Effective Amendments to said
Registration Statement on Form N-1A or any successor thereto, and any
supplements or other instruments in connection therewith, and generally to do
all such things in my name and behalf in connection therewith as said
attorneys-in-fact deem necessary or appropriate, to comply with the provisions
of the Securities Act of 1933 and the Investment Company Act of 1940 as amended,
and all related requirements of the U. S. Securities and Exchange
Commission. I hereby ratify and confirm all that said
attorneys-in-fact or their substitutes may do or cause to be done by virtue
hereof.
EXECUTED at
Los Angeles, CA
, this
5
th
day
of March, 2010.
(City,
State)
/s/ James G.
Ellis
James G. Ellis,
Board member
POWER
OF ATTORNEY
I,
Martin
Fenton
, the undersigned Board member of the
following registered investment
companies
(collectively, the “Funds”)
:
|
|
-
|
AMCAP Fund
(File No. 002-26516, File No.
811-01435)
|
|
|
-
|
The American
Funds Income Series – U.S. Government Securities Fund (File No. 002-98199,
File No. 811-04318)
|
|
|
-
|
American
Funds Insurance Series (File No. 002-86838, File No.
811-03857)
|
|
|
-
|
American
Funds Money Market Fund (File No. 333-157162, File No.
811-22277)
|
|
|
-
|
American
Funds Short-Term Tax-Exempt Bond Fund (File No. 033-26431, File No.
811-05750)
|
|
|
-
|
American
Funds Target Date Retirement Series (File No. 333-138648, File No.
811-21981)
|
|
|
-
|
The American
Funds Tax-Exempt Series II – The Tax-Exempt Fund of California (File No.
033-06180, File No. 811-04694)
|
|
|
-
|
American
High-Income Municipal Bond Fund (File No. 033-80630, File No.
811-08576)
|
|
|
-
|
American
High-Income Trust (File No. 033-17917, File No.
811-05364)
|
|
|
-
|
American
Mutual Fund (File No. 002-10607, File No.
811-00572)
|
|
|
-
|
The Bond Fund
of America (File No. 002-50700, File No.
811-02444)
|
|
|
-
|
Capital World
Bond Fund (File No. 033-12447, File No.
811-05104)
|
|
|
-
|
Intermediate
Bond Fund of America (File No. 033-19514, File No.
811-05446)
|
|
|
-
|
The
Investment Company of America (File No. 002-10811, File No.
811-00116)
|
|
|
-
|
Limited Term
Tax-Exempt Bond Fund of America (File No. 033-66214, File No.
811-07888)
|
|
|
-
|
Short-Term
Bond Fund of America (File No. 333-135770, File No.
811-21928)
|
|
|
-
|
The
Tax-Exempt Bond Fund of America (File No. 002-49291, File No.
811-02421)
|
hereby revoke all
previous powers of attorney I have signed and otherwise act in my name and
behalf in matters involving the Funds and do hereby constitute and
appoint
|
Vincent P.
Corti
Patrick F.
Quan
Kimberly S.
Verdick
Steven I.
Koszalka
Julie E.
Lawton
Tanya
Schneider
Raymond F.
Sullivan, Jr.
Courtney R.
Taylor
|
Brian D.
Bullard
Karl C.
Grauman
M. Susan
Gupton
Gregory F.
Niland
Carmelo
Spinella
Ari M.
Vinocor
|
each of them
singularly, my true and lawful attorneys-in-fact, with full power of
substitution, and with full power to each of them, to sign for me and in my name
in the appropriate capacities, all Registration Statements of the Funds on Form
N-1A, any and all subsequent Amendments, or Post-Effective Amendments to said
Registration Statement on Form N-1A or any successor thereto, and any
supplements or other instruments in connection therewith, and generally to do
all such things in my name and behalf in connection therewith as said
attorneys-in-fact deem necessary or appropriate, to comply with the provisions
of the Securities Act of 1933 and the Investment Company Act of 1940 as amended,
and all related requirements of the U. S. Securities and Exchange
Commission. I hereby ratify and confirm all that said
attorneys-in-fact or their substitutes may do or cause to be done by virtue
hereof.
EXECUTED at
Los Angeles, CA
, this
5
th
day
of March, 2010.
(City, State)
/s/ Martin
Fenton
Martin Fenton,
Board member
POWER
OF ATTORNEY
I,
Leonard R.
Fuller
, the undersigned Board member of the
following registered investment
companies
(collectively, the “Funds”)
:
|
|
-
|
AMCAP Fund
(File No. 002-26516, File No.
811-01435)
|
|
|
-
|
The American
Funds Income Series – U.S. Government Securities Fund (File No. 002-98199,
File No. 811-04318)
|
|
|
-
|
American
Funds Insurance Series (File No. 002-86838, File No.
811-03857)
|
|
|
-
|
American
Funds Money Market Fund (File No. 333-157162, File No.
811-22277)
|
|
|
-
|
American
Funds Short-Term Tax-Exempt Bond Fund (File No. 033-26431, File No.
811-05750)
|
|
|
-
|
American
Funds Target Date Retirement Series (File No. 333-138648, File No.
811-21981)
|
|
|
-
|
The American
Funds Tax-Exempt Series II – The Tax-Exempt Fund of California (File No.
033-06180, File No. 811-04694)
|
|
|
-
|
American
High-Income Municipal Bond Fund (File No. 033-80630, File No.
811-08576)
|
|
|
-
|
American
High-Income Trust (File No. 033-17917, File No.
811-05364)
|
|
|
-
|
American
Mutual Fund (File No. 002-10607, File No.
811-00572)
|
|
|
-
|
The Bond Fund
of America (File No. 002-50700, File No.
811-02444)
|
|
|
-
|
Capital World
Bond Fund (File No. 033-12447, File No.
811-05104)
|
|
|
-
|
Intermediate
Bond Fund of America (File No. 033-19514, File No.
811-05446)
|
|
|
-
|
The
Investment Company of America (File No. 002-10811, File No.
811-00116)
|
|
|
-
|
Limited Term
Tax-Exempt Bond Fund of America (File No. 033-66214, File No.
811-07888)
|
|
|
-
|
Short-Term
Bond Fund of America (File No. 333-135770, File No.
811-21928)
|
|
|
-
|
The
Tax-Exempt Bond Fund of America (File No. 002-49291, File No.
811-02421)
|
hereby revoke all
previous powers of attorney I have signed and otherwise act in my name and
behalf in matters involving the Funds and do hereby constitute and
appoint
|
Vincent P.
Corti
Patrick F.
Quan
Kimberly S.
Verdick
Steven I.
Koszalka
Julie E.
Lawton
Tanya
Schneider
Raymond F.
Sullivan, Jr.
Courtney R.
Taylor
|
Brian D.
Bullard
Karl C.
Grauman
M. Susan
Gupton
Gregory F.
Niland
Carmelo
Spinella
Ari M.
Vinocor
|
each of them
singularly, my true and lawful attorneys-in-fact, with full power of
substitution, and with full power to each of them, to sign for me and in my name
in the appropriate capacities, all Registration Statements of the Funds on Form
N-1A, any and all subsequent Amendments, or Post-Effective Amendments to said
Registration Statement on Form N-1A or any successor thereto, and any
supplements or other instruments in connection therewith, and generally to do
all such things in my name and behalf in connection therewith as said
attorneys-in-fact deem necessary or appropriate, to comply with the provisions
of the Securities Act of 1933 and the Investment Company Act of 1940 as amended,
and all related requirements of the U. S. Securities and Exchange
Commission. I hereby ratify and confirm all that said
attorneys-in-fact or their substitutes may do or cause to be done by virtue
hereof.
EXECUTED at
Los Angeles, CA
, this
5
th
day
of March, 2010.
(City, State)
/s/ Leonard R.
Fuller
Leonard R. Fuller,
Board member
POWER
OF ATTORNEY
I,
William D.
Jones
, the undersigned Board member of the
following registered investment
companies
(collectively, the “Funds”)
:
|
|
-
|
American
Balanced Fund (File No. 002-10758, File No.
811-00066)
|
|
|
-
|
AMCAP Fund
(File No. 002-26516, File No.
811-01435)
|
|
|
-
|
American
Mutual Fund (File No. 002-10607, File No.
811-00572)
|
|
|
-
|
The Income
Fund of America (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)
|
hereby revoke all
previous powers of attorney I have signed and otherwise act in my name and
behalf in matters involving the Funds and do hereby constitute and
appoint
|
Vincent P.
Corti
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
|
each of them
singularly, my true and lawful attorneys-in-fact, with full power of
substitution, and with full power to each of them, to sign for me and in my name
in the appropriate capacities, all Registration Statements of the Funds on Form
N-1A, any and all subsequent Amendments, or Post-Effective Amendments to said
Registration Statement on Form N-1A or any successor thereto, and any
supplements or other instruments in connection therewith, and generally to do
all such things in my name and behalf in connection therewith as said
attorneys-in-fact deem necessary or appropriate, to comply with the provisions
of the Securities Act of 1933 and the Investment Company Act of 1940 as amended,
and all related requirements of the U. S. Securities and Exchange
Commission. I hereby ratify and confirm all that said
attorneys-in-fact or their substitutes may do or cause to be done by virtue
hereof.
EXECUTED at
Los Angeles, CA
, this
5
th
day
of March, 2010.
(City,
State)
/s/ William D.
Jones
William D. Jones,
Board member
POWER
OF ATTORNEY
I,
L. Daniel
Jorndt
, the undersigned Board member of the
following registered investment
companies
(collectively, the “Funds”)
:
|
|
-
|
AMCAP Fund
(File No. 002-26516, File No.
811-01435)
|
|
|
-
|
American
Mutual Fund (File No. 002-10607, File No.
811-00572)
|
|
|
-
|
The
Investment Company of America (File No. 002-10811, File No.
811-00116)
|
hereby revoke all
previous powers of attorney I have signed and otherwise act in my name and
behalf in matters involving the Funds and do hereby constitute and
appoint
|
Vincent P.
Corti
Patrick F.
Quan
Kimberly S.
Verdick
Steven I.
Koszalka
Julie E.
Lawton
Tanya
Schneider
Raymond F.
Sullivan, Jr.
Courtney R.
Taylor
|
Karl C.
Grauman
Carmelo
Spinella
|
each of them
singularly, my true and lawful attorneys-in-fact, with full power of
substitution, and with full power to each of them, to sign for me and in my name
in the appropriate capacities, all Registration Statements of the Funds on Form
N-1A, any and all subsequent Amendments, or Post-Effective Amendments to said
Registration Statement on Form N-1A or any successor thereto, and any
supplements or other instruments in connection therewith, and generally to do
all such things in my name and behalf in connection therewith as said
attorneys-in-fact deem necessary or appropriate, to comply with the provisions
of the Securities Act of 1933 and the Investment Company Act of 1940 as amended,
and all related requirements of the U. S. Securities and Exchange
Commission. I hereby ratify and confirm all that said
attorneys-in-fact or their substitutes may do or cause to be done by virtue
hereof.
EXECUTED at
Los Angeles, CA
, this
5
th
day
of March, 2010.
(City, State)
/s/ L. Daniel
Jorndt
L. Daniel Jorndt,
Board member
POWER
OF ATTORNEY
I,
William H.
Kling
, the undersigned Board member of the
following registered investment
companies
(collectively, the “Funds”)
:
|
|
-
|
AMCAP Fund
(File No. 002-26516, File No.
811-01435)
|
|
|
-
|
American
Mutual Fund (File No. 002-10607, File No.
811-00572)
|
|
|
-
|
EuroPacific
Growth Fund (File No. 002-83847, File No.
811-03734)
|
|
|
-
|
American
Funds Fundamental Investors (File No. 002-10760, File No.
811-00032)
|
|
|
-
|
The Growth
Fund of America (File No. 002-14728, File No.
811-00862)
|
|
|
-
|
The
Investment Company of America (File No. 002-10811, File No.
811-00116)
|
|
|
-
|
New
Perspective Fund (File No. 002-47749, File No.
811-02333)
|
|
|
-
|
American
Funds New World Fund (File No. 333-67455, File No.
811-09105)
|
|
|
-
|
SMALLCAP
World Fund (File No. 033-32785, File No.
811-05888)
|
hereby revoke all
previous powers of attorney I have signed and otherwise act in my name and
behalf in matters involving the Funds and do hereby constitute and
appoint
|
Vincent P.
Corti
Patrick F.
Quan
Kimberly S.
Verdick
Steven I.
Koszalka
Julie E.
Lawton
Tanya
Schneider
Raymond F.
Sullivan, Jr.
Courtney R.
Taylor
|
Karl C.
Grauman
Bryan K.
Nielsen
Jeffrey P.
Regal
Carmelo
Spinella
Neal F.
Wellons
|
each of them
singularly, my true and lawful attorneys-in-fact, with full power of
substitution, and with full power to each of them, to sign for me and in my name
in the appropriate capacities, all Registration Statements of the Funds on Form
N-1A, any and all subsequent Amendments, or Post-Effective Amendments to said
Registration Statement on Form N-1A or any successor thereto, and any
supplements or other instruments in connection therewith, and generally to do
all such things in my name and behalf in connection therewith as said
attorneys-in-fact deem necessary or appropriate, to comply with the provisions
of the Securities Act of 1933 and the Investment Company Act of 1940 as amended,
and all related requirements of the U. S. Securities and Exchange
Commission. I hereby ratify and confirm all that said
attorneys-in-fact or their substitutes may do or cause to be done by virtue
hereof.
EXECUTED at
Los Angeles, CA
, this
5
th
day
of March, 2010.
(City,
State)
/s/ William H.
Kling
William H. Kling,
Board member
POWER
OF ATTORNEY
I,
John G.
McDonald
, the undersigned Board member of the
following registered investment
companies
(collectively, the “Funds”)
:
|
|
-
|
AMCAP Fund
(File No. 002-26516, File No.
811-01435)
|
|
|
-
|
American
Balanced Fund (File No. 002-10758, File No.
811-00066)
|
|
|
-
|
American
Mutual Fund (File No. 002-10607, File No.
811-00572)
|
|
|
-
|
EuroPacific
Growth Fund (File No. 002-83847, File No.
811-03734)
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|
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-
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American
Funds Fundamental Investors (File No. 002-10760, File No.
811-00032)
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|
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-
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The Growth
Fund of America (File No. 002-14728, File No.
811-00862)
|
|
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-
|
The Income
Fund of America (File No. 002-33371, File No.
811-01880)
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|
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-
|
International
Growth and Income Fund (File No. 333-152323, File No.
811-22215)
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|
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-
|
The
Investment Company of America (File No. 002-10811, File No.
811-00116)
|
|
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-
|
New
Perspective Fund (File No. 002-47749, File No.
811-02333)
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|
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-
|
American
Funds New World Fund (File No. 333-67455, File No.
811-09105)
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|
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-
|
SMALLCAP
World Fund (File No. 033-32785, File No.
811-05888)
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hereby revoke all
previous powers of attorney I have signed and otherwise act in my name and
behalf in matters involving the Funds and do hereby constitute and
appoint
|
Vincent P.
Corti
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
|
each of them
singularly, my true and lawful attorneys-in-fact, with full power of
substitution, and with full power to each of them, to sign for me and in my name
in the appropriate capacities, all Registration Statements of the Funds on Form
N-1A, any and all subsequent Amendments, or Post-Effective Amendments to said
Registration Statement on Form N-1A or any successor thereto, and any
supplements or other instruments in connection therewith, and generally to do
all such things in my name and behalf in connection therewith as said
attorneys-in-fact deem necessary or appropriate, to comply with the provisions
of the Securities Act of 1933 and the Investment Company Act of 1940 as amended,
and all related requirements of the U. S. Securities and Exchange
Commission. I hereby ratify and confirm all that said
attorneys-in-fact or their substitutes may do or cause to be done by virtue
hereof.
EXECUTED at
Los Angeles, CA
, this
5
th
day
of March, 2010.
(City, State)
/s/ John G.
McDonald
John G. McDonald,
Board member
POWER
OF ATTORNEY
I,
Bailey
Morris-Eck
, the undersigned Board member of the
following registered investment
companies
(collectively, the “Funds”)
:
|
|
-
|
AMCAP Fund
(File No. 002-26516, File No.
811-01435)
|
|
|
-
|
American
Mutual Fund (File No. 002-10607, File No.
811-00572)
|
|
|
-
|
The
Investment Company of America (File No. 002-10811, File No.
811-00116)
|
hereby revoke all
previous powers of attorney I have signed and otherwise act in my name and
behalf in matters involving the Funds and do hereby constitute and
appoint
|
Vincent P.
Corti
Patrick F.
Quan
Kimberly S.
Verdick
Steven I.
Koszalka
Julie E.
Lawton
Tanya
Schneider
Raymond F.
Sullivan, Jr.
Courtney R.
Taylor
|
Karl C.
Grauman
Carmelo
Spinella
|
each of them
singularly, my true and lawful attorneys-in-fact, with full power of
substitution, and with full power to each of them, to sign for me and in my name
in the appropriate capacities, all Registration Statements of the Funds on Form
N-1A, any and all subsequent Amendments, or Post-Effective Amendments to said
Registration Statement on Form N-1A or any successor thereto, and any
supplements or other instruments in connection therewith, and generally to do
all such things in my name and behalf in connection therewith as said
attorneys-in-fact deem necessary or appropriate, to comply with the provisions
of the Securities Act of 1933 and the Investment Company Act of 1940 as amended,
and all related requirements of the U. S. Securities and Exchange
Commission. I hereby ratify and confirm all that said
attorneys-in-fact or their substitutes may do or cause to be done by virtue
hereof.
EXECUTED at
Los Angeles, CA
, this
5
th
day
of March, 2010.
(City,
State)
/s/ Bailey
Morris-Eck
Bailey Morris-Eck,
Board member
POWER
OF ATTORNEY
I,
Olin C.
Robison
, the undersigned Board member of the
following registered investment
companies
(collectively, the “Funds”)
:
|
|
-
|
AMCAP Fund
(File No. 002-26516, File No.
811-01435)
|
|
|
-
|
American
Mutual Fund (File No. 002-10607, File No.
811-00572)
|
|
|
-
|
The
Investment Company of America (File No. 002-10811, File No.
811-00116)
|
hereby revoke all
previous powers of attorney I have signed and otherwise act in my name and
behalf in matters involving the Funds and do hereby constitute and
appoint
|
Vincent P.
Corti
Patrick F.
Quan
Kimberly S.
Verdick
Steven I.
Koszalka
Julie E.
Lawton
Tanya
Schneider
Raymond F.
Sullivan, Jr.
Courtney R.
Taylor
|
Karl C.
Grauman
Carmelo
Spinella
|
each of them
singularly, my true and lawful attorneys-in-fact, with full power of
substitution, and with full power to each of them, to sign for me and in my name
in the appropriate capacities, all Registration Statements of the Funds on Form
N-1A, any and all subsequent Amendments, or Post-Effective Amendments to said
Registration Statement on Form N-1A or any successor thereto, and any
supplements or other instruments in connection therewith, and generally to do
all such things in my name and behalf in connection therewith as said
attorneys-in-fact deem necessary or appropriate, to comply with the provisions
of the Securities Act of 1933 and the Investment Company Act of 1940 as amended,
and all related requirements of the U. S. Securities and Exchange
Commission. I hereby ratify and confirm all that said
attorneys-in-fact or their substitutes may do or cause to be done by virtue
hereof.
EXECUTED at
Los Angeles, CA
, this
5
th
day
of March, 2010.
(City,
State)
/s/ Olin C.
Robison
Olin C. Robison,
Board member
POWER
OF ATTORNEY
I,
Steven B.
Sample
, the undersigned Board member of the
following registered investment
companies
(collectively, the “Funds”)
:
|
|
-
|
AMCAP Fund
(File No. 002-26516, File No.
811-01435)
|
|
|
-
|
American
Mutual Fund (File No. 002-10607, File No.
811-00572)
|
|
|
-
|
The
Investment Company of America (File No. 002-10811, File No.
811-00116)
|
hereby revoke all
previous powers of attorney I have signed and otherwise act in my name and
behalf in matters involving the Funds and do hereby constitute and
appoint
|
Vincent P.
Corti
Patrick F.
Quan
Kimberly S.
Verdick
Steven I.
Koszalka
Julie E.
Lawton
Tanya
Schneider
Raymond F.
Sullivan, Jr.
Courtney R.
Taylor
|
Karl C.
Grauman
Carmelo
Spinella
|
each of them
singularly, my true and lawful attorneys-in-fact, with full power of
substitution, and with full power to each of them, to sign for me and in my name
in the appropriate capacities, all Registration Statements of the Funds on Form
N-1A, any and all subsequent Amendments, or Post-Effective Amendments to said
Registration Statement on Form N-1A or any successor thereto, and any
supplements or other instruments in connection therewith, and generally to do
all such things in my name and behalf in connection therewith as said
attorneys-in-fact deem necessary or appropriate, to comply with the provisions
of the Securities Act of 1933 and the Investment Company Act of 1940 as amended,
and all related requirements of the U. S. Securities and Exchange
Commission. I hereby ratify and confirm all that said
attorneys-in-fact or their substitutes may do or cause to be done by virtue
hereof.
EXECUTED at
Los Angeles, CA
, this
5
th
day
of March, 2010.
(City, State)
/s/ Steven B.
Sample
Steven B. Sample,
Board member