Invest for Long-Term Success.

What Makes American Funds Different 2016 Edition Invest for Long-Term Success.

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

Each of Our Funds Is Designed to Pursue Objectives That Help Investors Meet Their Real-Life Needs. For more than 80 years, we have managed investments with the goal of helping long-term investors succeed. Below are a few examples of investors who, while working with their financial advisors, are pursuing their goals with American Funds. Funding an education We want to fully fund our children s education for as long as they wish to go to school, and it s our hope that they all earn at least a master s degree. Viet Ha, American Funds investor Investing for the long term Our focus is long-term growth. We like to keep 70% of our money in growth and growth-and-income mutual funds. We had some good success with our decisions to stay in the market and dollar cost average. Gregory Brookins, American Funds investor Living in retirement I have a budget for my golf, I have a budget for my garden, I have a budget for my children. And as long as Stuart makes money for me, he s going to be my friend. Frank Fukuhara, 101-year-old American Funds investor, about his advisor, Stuart, helping him establish a charitable trust. 1

We Are Aligned With Long-Term Investors. Our investment philosophy is based on doing what we believe is right for investors. In our efforts to help protect the value of investments, we pay close attention to risk. We base our decisions on a long-term perspective because we believe it is the best way to achieve superior long-term investment results. We invest with you My investments are in American Funds right alongside yours. Our associates and portfolio managers are also significant investors in our funds, a reflection of our collective interest in helping you succeed. Tim Armour, Portfolio Manager We reward long-term results We measure ourselves over one-, three-, five- and eight-year periods with increasing weight placed on each succeeding period to encourage a long-term focus and to further align ourselves with our investors. Joyce Gordon, Portfolio Manager [American Funds ] multiple-manager approach has produced consistently competitive risk-adjusted returns and a strong investment culture with high manager and analyst retention. The managers are heavily invested in the funds they manage, and their bonus calculations include eight-year performance, which frees them to focus on long-term results. Morningstar, Inc., May 2013 2

Put Our Experience to Work for You. Our portfolio managers average 27 years of investment experience, including 22 years at our company.* The average tenure of our portfolio managers on a fund is 9.7 years; for the industry, it s 6 years. Our Investment Experience Spans Generations (portfolio manager years of experience) 86% 100% 32% Strength in Numbers 20% of our portfolio managers experienced the 1982 recession 41% of our portfolio managers experienced the October 1987 crash 83% of our fixed-income portfolio managers experienced the difficult 1994 bond market 30+ years 20+ years 10+ years A Closer Look: Current Portfolio Managers Who Covered Oil Companies in Three Different Decades Michael T. Kerr Mike was an exploration geophysicist with an oil company in the 1980s, before joining Capital as an oil analyst. Years of experience: 32 O f fi c e : Los Angeles * As of December 31, 2015 Source: Morningstar David Barclay David, a bond fund portfolio manager, covered oil companies as a bond analyst in the 1990s. Years of experience: 34 O f fi c e : Los Angeles Noriko Honda Chen As a portfolio manager with analyst responsibilities, Noriko continues to cover energy today. Years of experience: 25 O f fi c e : San Francisco 3

The Capital System SM Combines Independence and Teamwork. We begin by defining a clear investment objective and assembling a team best equipped to pursue the opportunities. The Capital System s Multiple Manager Approach* Example: American Funds AMCAP Fund A diverse group of portfolio managers and analysts brings complementary investment approaches, experience levels, backgrounds and areas of focus. Analysts In most funds, including AMCAP, a group of investment analysts manages a portion of the fund known as the research portfolio. Portfolio Managers Each portfolio manager is assigned a portion of the overall assets to manage independently, enabling them to focus on their highest conviction ideas. Barry Crosthwaite Claudia Huntington Eric Richter James Terrile Experience: 19 years O f fi c e : San Francisco Experience: 43 years O f fi c e : Los Angeles Experience: 24 years O f fi c e : Washington, D.C. Experience: 20 years O f fi c e : Los Angeles Years of experience as of the fund s prospectus dated November 1, 2015. Portfolio segments do not reflect actual allocations and vary by funds. * American Funds Inflation Linked Bond Fund is managed by a portfolio team. 4

The Capital System Means Not Investing in Anyone s 200th Best Idea. Which would you prefer: a mutual fund that represents the 25 to 40 best ideas of several people or one person s 200 best ideas? The Capital System Single-Manager Approach 200 best ideas 40 best ideas 30 best ideas 30 best ideas 35 best ideas 40 best ideas 25 best ideas The Capital System is designed to try to get the benefits of two worlds. One is to capture the individual responsibility and individual motivation that are essential to investing. The other is the benefit of multiple points of view, which serves to sharpen the investment ideas. Rob Lovelace, Portfolio Manager How The Capital System Approach Can Benefit You Broad Diversification Each portfolio manager invests in his or her highest conviction ideas, so fund portfolios tend to contain a diverse group of securities. Rigorous Risk Management The diverse combination of portfolio managers and investment analysts in each fund is designed to lower volatility while striving for superior long-term results. Consistency With Fund Objectives Each fund s principal investment officer, along with a coordinating group, reviews investments for consistency with fund objectives and overall guidelines. 5

Global Research Is the Backbone of Our Organization. We have invested internationally for more than half a century. We invest more in international stocks than any other active mutual fund manager and are among the largest U.S. investors in international bonds.* Mark Casey Previously a director and product manager at a major software company, Mark has research responsibilities for entertainment, media, Internet media and imaging companies. Steve Backes A bond analyst who focuses on developing markets debt, Steve was a former senior economist for the Federal Reserve Bank of New York, former director of the United States Treasury and an economist for the International Monetary Fund. Experience: 22 years O f fi c e : New York Experience: 15 years O f fi c e : San Francisco Jay Markowitz A former pancreas transplant surgeon, Jay covers U.S. pharmaceutical and biotechnology companies as an investment analyst. Experience: 14 years O f fi c e : Los Angeles Strength in Numbers 302 191 111 166 43 Investment professionals Investment analysts Portfolio managers Based outside the U.S. Languages spoken The Capital Group Companies manage equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed-income investment professionals provide fixed-income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups. 6

Vantil Charles A bond analyst who covers European financial companies, Vantil worked for 20 years at one of the U.K. s largest banks, holding positions from retail banking to deputy head of the credit rating group. Experience: 28 years O f fi c e : London Susan Dietz-Henderson An analyst focused on China, Susan was previously an Australian diplomat based in China and was Australia s Consul-General in Shanghai. Experience: 28 years O f fi c e : Beijing Research offices Los Angeles 1931 New York 1943 Geneva 1962 Washington, D.C. 1974 San Francisco 1975 London 1979 Tokyo 1982 Hong Kong 1983 Singapore 1989 Mumbai 2008 Beijing 2009 Ken Kojima An equity analyst who researches Asian utilities, information technology and Japanese chemicals. Prior to joining Capital, he worked at Citibank Japan. Experience: 18 years O f fi c e : Singapore Our Investment Professionals Hail From Around the World 51 Countries of origin * Source: Morningstar, based on total net assets of all funds in the broad U.S. category group International Stocks as of December 31, 2015 As of December 31, 2015 7

We Seek Consistently Superior Long- Term Results. For most investors, results are paramount. Consider the following facts * : Our funds have beaten their Lipper peer indexes in 80% of 10-year periods (91% for equity funds, 58% for fixed-income funds). Our funds have beaten their Lipper peer indexes in 86% of 20-year periods (95% for equity funds, 58% for fixed-income funds). In Good Times and Bad, an 82-Year Track Record of Success in Equity Funds Over the years, investors have looked to us to provide superior long-term results. The reason becomes apparent when you look at our equity funds results over 480 10-calendar-year periods since our first fund began in 1934 (as shown below). Number of 10-Calendar-Year Periods When the Total Return Was Positive (Annualized Return Greater Than 0.00%) At Least Doubled (Annualized Return 7.18% or Greater) When the Value of an Investment... At Least Tripled (Annualized Return 11.61% or Greater) At Least Quadrupled (Annualized Return 14.87% or Greater) AMCAP Fund 39 39 33 24 12 EuroPacific Growth Fund 22 22 16 8 3 The Growth Fund of America 33 33 29 24 14 The New Economy Fund 23 21 19 9 6 New Perspective Fund 33 33 29 23 15 New World Fund 7 7 6 2 0 SMALLCAP World Fund 16 16 10 2 1 American Mutual Fund 56 56 45 28 14 Capital World Growth and Income Fund 13 13 10 5 0 Fundamental Investors 28 28 24 16 12 The Investment Company of America 73 73 61 41 20 Washington Mutual Investors Fund SM 54 54 44 28 15 Capital Income Builder 19 19 14 5 0 The Income Fund of America 33 33 27 18 6 American Balanced Fund 31 31 23 18 2 480 478 390 251 120 Percent of time 99.6% 81.3% 52.3% 25.0% Based on results calculated at net asset value with all distributions reinvested. Reflects applicable fees and expenses. * Based on Class A share results for rolling periods through December 31, 2015. Periods covered are the shorter of the fund s lifetime or since the comparable Lipper index inception date (except Capital Income Builder and SMALLCAP World Fund, for which the Lipper average was used). 8

Our Expenses Are Among the Lowest. We are committed to providing exceptional services at a reasonable cost. We have some of the lowest management fees among mutual fund companies. We strive to keep management fees low so that operating expenses remain competitive. Some of the lowest annual fees you ll find in the industry. Kiplinger.com, January 2014 Lower Is Better: American Funds Annual Operating Expenses (%) 0.71 1.28 0.59 1.10 0.96 1.45 0.57 1.14 0.72 1.20 0.70 American Funds 0.93 0.63 Industry average* 0.80 0.38 0.08 Growth Growth-and income International/ Global equity Equity-income Balanced Taxable bond Tax-exempt bond Money market The Difference Adds Up Ongoing annual expenses have an impact on long-term results. As you can see, a 0.5% difference in expenses could add up to more than your initial investment over time. $709,637 $816,430 The growth of hypothetical investments of $100,000 over 30 years, assuming an annual growth rate of 8% before expenses and annual expense ratios of 1.25% and 0.75%, respectively. Not intended to portray actual expenses and investment results. Your experience will differ. 1.25% 0.75% annual operating expenses $106,793 is the total a 0.5% difference in expenses can mean over 30 years more than your initial investment. The American Funds expense ratios are for Class A shares as of each fund s most recent printed prospectus available on January 1, 2016. The expense ratio for American Funds Inflation Linked Bond Fund is estimated. The investment adviser for American Funds Tax-Exempt Fund of New York is currently reimbursing a portion of other expenses. Net expense ratios reflect the reimbursement, without which they would have been higher. The reimbursement will be in effect through at least September 30, 2016, unless modified or terminated by the fund s board. The adviser may elect at its discretion to extend, modify or terminate the reimbursement at that time. Please see the fund s most recent prospectus for details. Expense ratios do not reflect sales charges. Due to their significant investments outside the U.S., Capital World Growth and Income Fund, EuroPacific Growth Fund, International Growth and Income Fund, New Perspective Fund, New World Fund and SMALLCAP World Fund are included in the International/Global equity category. Although Class A shares are available for purchase by retirement plans only in limited instances, their expense ratios do not include retirement plan recordkeeping expenses. American Funds offers plan sponsors flexibility in how they pay for plan operating expenses (such as recordkeeping fees) through eight distinct retirement plan share classes. Expenses differ for each share class, so expense ratios will vary. * Source for industry averages: Lipper, based on comparable categories for front-end load funds (except money market funds, which are compared against no-load funds), excluding funds of funds, as of each fund s most recent fiscal year-end available December 31, 2015. 9

It s Important to Measure Results Over Meaningful Periods of Time. We keep one objective in front of us every single day, and that is to generate superior long-term investment results for our investors. We take this very seriously, and it drives every decision that we make. Justin Toner, Investment Analyst Figures shown are past results for Class A shares and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. Unless otherwise indicated, results shown are at net asset value with all distributions reinvested. You could lose money by investing in the American Funds Money Market Fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time. If the 5.75% maximum Class A sales charge (3.75% for most bond and taxexempt bond funds, 2.50% for shorter term* bond funds) had been deducted, results would have been lower. There is no sales charge for American Funds Money Market Fund Class A shares. For current information and month-end results, visit americanfunds.com. Equity Fund Results at a Glance (as of December 31, 2015) Inception Date Outpaced Lipper Indexes Over 1 10-Year Periods Average Annual Total Return at Maximum Offering Price 20-Year Periods 1 Year 5 Years 10 Years Avg. Annual Return (Lifetime) at Net Asset Value Growth Funds AMCAP Fund 5/1/67 33 of 39 29 of 29 5.02% 11.09% 6.93% 11.43% 0.68% EuroPacific Growth Fund 4/16/84 22 of 22 12 of 12 6.53 2.41 3.98 10.78 0.83 The Growth Fund of America 12/1/73 3 33 of 33 23 of 23 0.69 10.73 6.55 13.52 0.65 The New Economy Fund 12/1/83 22 of 23 13 of 13 2.16 11.41 7.70 11.14 0.79 New Perspective Fund 3/13/73 23 of 23 13 of 13 0.71 7.71 6.87 12.23 0.75 New World Fund 6/17/99 3 of 7 11.39 0.70 5.07 7.34 1.04 SMALLCAP World Fund 4/30/90 7 of 16 0 of 6 3.31 5.86 6.39 9.45 1.07 Growth-and-Income Funds American Funds Developing World Growth and Income Fund SM 2/3/14 22.25 10.02 4 7.19 1.35 American Mutual Fund 2/21/50 38 of 47 36 of 37 8.43 9.20 6.27 11.55 0.58 Capital World Growth and Income Fund 3/26/93 13 of 13 3 of 3 7.79 5.69 5.23 10.44 0.77 Fundamental Investors 8/1/78 3 28 of 28 18 of 18 2.58 9.91 7.14 12.35 0.61 International Growth and Income Fund SM 10/1/08 13.51 1.68 5.42 4 6.29 0.91 The Investment Company of America 1/1/34 46 of 47 37 of 37 7.10 9.38 5.88 12.07 0.59 Washington Mutual Investors Fund SM 7/31/52 46 of 47 37 of 37 5.91 10.70 6.29 11.79 0.58 Equity-Income Funds Capital Income Builder 7/30/87 11 of 11 1 of 1 8.50 5.21 4.79 9.26 0.59 The Income Fund of America 12/1/73 3 18 of 18 8 of 8 7.15 7.07 5.71 11.04 0.55 Balanced Funds American Balanced Fund 7/26/75 3 24 of 31 16 of 21 4.13 8.54 6.20 10.70 0.59 American Funds Global Balanced Fund SM 2/1/11 9.02 4.17 4 5.44 0.85 Expense Ratio 2 When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Please see americanfunds.com for more information. The investment adviser for American Funds Tax-Exempt Fund of New York is currently reimbursing a portion of other expenses. Investment results reflect the reimbursement, without which results would have been lower. The reimbursement will be in effect through at least September 30, 2016, unless modified or terminated by the fund s board. The adviser may elect at its discretion to extend, modify or terminate the reimbursement at that time. Please see the fund s most recent prospectus for details. 1 Based on Class A shares at net asset value for periods through December 31, 2015. Each fund s Lipper index is as follows: AMCAP Fund and The New Economy Fund (Growth); The Growth Fund of America (Large-Cap Growth Fund); EuroPacific Growth Fund (International); New Perspective Fund and Capital World Growth and Income Fund (Global); New World Fund (Emerging Markets); American Mutual Fund, Fundamental Investors, The Investment Company of America and Washington Mutual Investors Fund (Growth & Income); The Income Fund of America (Income [Mixed Equity]); 10

Fixed-Income Fund Results at a Glance (as of December 31, 2015) Inception Date Outpaced Lipper Indexes Over 1 10-Year Periods Average Annual Total Return at Maximum Offering Price 20-Year Periods 1 Year 5 Years 10 Years Avg. Annual Return (Lifetime) at Net Asset Value Taxable Bond Funds 5 American Funds Inflation Linked Bond Fund * 12/14/12 3.67% 2.47% 4 1.65% 0.79% American Funds Mortgage Fund 11/1/10 2.01 2.05 1.62% 4 2.37 0.70 American High-Income Trust 2/19/88 15 of 18 8 of 8 10.90 2.18 4.61 7.64 0.67 The Bond Fund of America 5/28/74 8 of 18 2 of 8 3.53 2.40 2.91 7.78 0.62 Capital World Bond Fund 8/4/87 15 of 18 7 of 8 7.77 0.28 3.28 6.22 0.93 Intermediate Bond Fund of America * 2/19/88 3 of 16 0 of 6 1.63 1.09 2.39 4.87 0.61 Short-Term Bond Fund of America * 10/2/06 2.19 0.03 1.34 4 1.62 0.60 U.S. Government Securities Fund 10/17/85 9 of 21 7 of 11 2.30 1.77 3.40 5.85 0.65 Tax-Exempt Bond Funds 5 American Funds Short-Term Tax-Exempt Bond Fund * 8/7/09 6 2.05 0.70 0.97 4 1.38 0.58 American Funds Tax-Exempt Fund of New York 11/1/10 0.90 4.54 3.71 4 4.48 0.72 American High-Income Municipal Bond Fund 9/26/94 12 of 12 2 of 2 0.46 6.79 4.34 5.68 0.68 Limited Term Tax-Exempt Bond Fund of America * 10/6/93 13 of 13 3 of 3 1.12 2.62 3.15 4.14 0.57 The Tax-Exempt Bond Fund of America 10/3/79 13 of 25 9 of 15 0.75 4.91 4.00 6.67 0.54 The Tax-Exempt Fund of California 10/28/86 14 of 20 7 of 10 0.47 5.73 4.27 5.74 0.62 The Tax Exempt Fund of Maryland 8/14/86 5 of 14 1 of 4 1.83 3.41 3.08 5.06 0.69 The Tax-Exempt Fund of Virginia 8/14/86 3 of 15 0 of 5 1.64 3.45 3.31 5.21 0.66 Money Market Fund 7 American Funds Money Market Fund 5/1/09 0.00 0.00 0.00 4 0.00 0.38 The annualized seven-day SEC yield for American Funds Money Market Fund was 0.00% as of December 31, 2015; it reflects reimbursements of certain expenses by the investment adviser. Without the reimbursements, the yield would have been 0.15%. The yield more accurately reflects the fund s current earnings than do the fund s total returns. American Balanced Fund (Balanced); American High-Income Trust (High Yield); The Bond Fund of America (Core Bond); Capital World Bond Fund (Global Income); Intermediate Bond Fund of America (Short-Intermediate Investment Grade Debt); U.S. Government Securities Fund (General U.S. Government); American High-Income Municipal Bond Fund (High Yield Municipal Debt); Limited Term Tax-Exempt Bond Fund of America (Short- Intermediate Municipal Debt); The Tax-Exempt Bond Fund of America (General & Insured Municipal Debt); The Tax- Exempt Fund of California (California Municipal Debt); The Tax-Exempt Fund of Maryland (Maryland Municipal Debt); and The Tax-Exempt Fund of Virginia (Virginia Municipal Debt). SMALLCAP World Fund results are based on comparisons with Lipper Global Small-/Mid-Cap Funds Average. Capital Income Builder results are based on comparisons with Lipper Global Equity Income Funds Average. Results for the Lipper indexes/averages do not reflect sales charges. Periods covered are the shorter of the fund s lifetime or since the comparable Lipper index inception date. 2 Expense ratios are as of each fund s prospectus available at the time of publication. The expense ratio for American Funds Inflation Linked Bond Fund is estimated. 3 Capital Research and Management Company began managing the fund on this date. 4 Fund s lifetime is less than the full period. Average annual total return is shown. 5 Prior to January 10, 2000, the maximum sales charge for bond funds was 4.75%. From January 10, 2000, to October 31, 2006, the maximum sales charge for Intermediate Bond Fund of America and Limited Term Tax-Exempt Bond Fund of America was 3.75%. 6 The Tax-Exempt Money Fund of America converted to American Funds Short-Term Tax-Exempt Bond Fund on this date. Investment results shown do not include the fund s results for the period it operated as The Tax-Exempt Money Fund of America, whose results can be found in American Funds Short-Term Tax-Exempt Bond Fund s prospectus. 7 In connection with SEC requirements set to take effect in October 2016, the American Funds Money Market Fund name will change to American Funds U.S. Government Money Market Fund SM on or about April 1, 2016. The fund will invest at least 99.5% of its assets in qualifying government securities. Although American Funds Money Market Fund has 12b-1 plans for some share classes, the fund is currently suspending certain 12b-1 payments in this low interest rate environment. Should payments commence, the fund s investment results will be lower. 8 Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect expense reimbursements, without which results would have been lower. Please see americanfunds.com for more information. The investment adviser is currently reimbursing a portion of other expenses for funds in the American Funds Retirement Income Portfolio Series, each share class of American Funds 2060 Target Date Retirement Fund, and American Funds College 2033 Fund. Investment results and net expense ratios reflect the reimbursement, without which the results would have been lower and the expenses would have been higher. The reimbursement will be in effect through at least January 1, 2017, unless modified or terminated by the investment adviser. The expense ratios are as of each fund s prospectus available at the time of publication and include the weighted average expenses of the underlying funds. The expense ratios for American Funds 2060 Target Date Retirement Fund and funds in the American Funds Retirement Income Portfolio Series are estimated. 9 The Retirement Income Portfolio Series investment allocations may not achieve fund objectives and adequate income through retirement is not guaranteed. There are expenses associated with the underlying funds in addition to fund-of-funds expenses. The funds risks are directly related to the risks of the underlying funds. Payments consisting of return of capital will result in a decrease in an investor s fund share balance. Higher rates of withdrawal and withdrawals during declining markets may result in a more rapid decrease in an investor s fund share balance. Persistent returns of capital could ultimately result in a zero account balance. Expense Ratio 2 (continues on page 12) 11

Our Portfolios Are Designed to Help Investors Achieve Their Objectives. Fund Series Results at a Glance (as of December 31, 2015) Inception Date Average Annual Total Return at Maximum Offering Price 1 Year 5 Years 10 Years Avg. Annual Return (Lifetime) at Net Asset Value Expense Ratio (Net/Gross) American Funds Portfolio Series SM 8 American Funds Global Growth Portfolio SM 5/18/12 5.40% 10.15% 4 11.97% 0.84% American Funds Growth Portfolio SM 5/18/12 4.34 11.91 4 13.76 0.75 American Funds Growth and Income Portfolio SM 5/18/12 6.69 8.72 4 10.51 0.69 American Funds Balanced Portfolio SM 5/18/12 5.19 8.09 4 9.87 0.70 American Funds Income Portfolio SM 5/18/12 8.16 4.89 4 6.62 0.64 American Funds Tax-Advantaged Income Portfolio SM 5/18/12 2.46 7.68 4 8.83 0.79 American Funds Preservation Portfolio SM 5/18/12 1.91 0.01 4 0.73 0.71 American Funds Tax-Exempt Preservation Portfolio SM 5/18/12 0.82 1.48 4 2.20 0.76 SM 8,9 American Funds Retirement Income Portfolio Series American Funds Retirement Income Portfolio - Enhanced SM 8/28/15 4.42 10 1.41 10 0.75/0.83 American Funds Retirement Income Portfolio - Moderate SM 8/28/15 4.78 10 1.03 10 0.73/0.81 American Funds Retirement Income Portfolio - Conservative SM 8/28/15 5.10 10 0.68 10 0.72/0.80 American Funds Target Date Retirement Series 8,11 2060 Target Date Retirement Fund SM 3/27/15 7.50 10 1.86 10 0.88/1.12 2055 Target Date Retirement Fund 2/1/10 5.47 7.61 9.04% 4 10.14 0.78 2050 Target Date Retirement Fund 2/1/07 5.40 7.62 4.67 4 5.37 0.76 2045 Target Date Retirement Fund 2/1/07 5.42 7.61 4.67 4 5.37 0.75 2040 Target Date Retirement Fund 2/1/07 5.52 7.59 4.66 4 5.36 0.74 2035 Target Date Retirement Fund 2/1/07 5.56 7.49 4.60 4 5.30 0.74 2030 Target Date Retirement Fund 2/1/07 5.56 7.46 4.59 4 5.29 0.73 2025 Target Date Retirement Fund 2/1/07 6.01 6.99 4.22 4 4.91 0.73 2020 Target Date Retirement Fund 2/1/07 5.94 6.08 3.70 4 4.39 0.71 2015 Target Date Retirement Fund 2/1/07 6.65 5.32 3.48 4 4.17 0.71 2010 Target Date Retirement Fund 2/1/07 6.89 4.80 3.22 4 3.91 0.69 American Funds College Target Date Series 8,12 American Funds College 2033 Fund SM 3/27/15 7.24 10 3.16 10 0.85/0.88 American Funds College 2030 Fund 9/14/12 4.82 6.99 4 8.40 0.79 American Funds College 2027 Fund 9/14/12 5.08 6.00 4 7.40 0.78 American Funds College 2024 Fund 9/14/12 5.31 4.91 4 6.28 0.76 American Funds College 2021 Fund 9/14/12 4.52 3.88 4 5.25 0.71 American Funds College 2018 Fund 9/14/12 3.51 2.97 4 4.32 0.74 American Funds College Enrollment Fund 9/14/12 1.68 0.27 4 0.51 0.78 10 Cumulative fund lifetime return. 11 Although the target date funds are managed for investors on a projected retirement date time frame, each fund s allocation strategy does not guarantee that investors retirement goals will be met. American Funds investment professionals actively manage each target date fund s portfolio, moving it from a more growth-oriented strategy to a more income-oriented focus as each fund gets closer to its target date. Investment professionals continue to manage each fund for 30 years after it reaches its target date. The target date is the year in which an investor is assumed to retire and begin taking withdrawals. 12 Figures shown are for Class 529-A shares. 12

Our Fixed-Income Funds Help Provide Diversification and Income. Investors have used our fixed-income funds to help diversify their portfolios and to pursue income and stability. Although fixed-income funds tend to lag during rising stock markets, our fixed-income funds have cushioned losses in diversified portfolios during stock market declines, as shown below. Our fixed-income funds are designed to be part of an investor s diversified portfolio, with objectives that may include preservation of capital, income and total return. To identify investment opportunities, we combine a bottom-up evaluation of bonds and issuers with extensive top-down analysis of economic trends and market conditions. Wesley Phoa, Portfolio Manager Figures shown are past results for Class A shares and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. Unless otherwise indicated, results shown are at net asset value with all distributions reinvested. If the maximum 3.75% Class A sales charge for most bond and tax-exempt bond funds (2.50% for American Funds Short-Term Tax-Exempt Bond Fund, Intermediate Bond Fund of America, Limited Term Tax-Exempt Bond Fund of America and Short-Term Bond Fund of America) had been deducted, results would have been lower. For current information and month-end results, visit americanfunds.com. Total Returns During Major Declines in the S&P 500 9/21/76 3/6/78 11/28/80 8/12/82 Standard & Poor s 500 Composite Index 13.5% 20.2% 32.8% 19.2% 47.4% 55.3% 18.6% The Bond Fund of America 9.2 22.5 0.1 3.4 11.9 13.7 3.3 The Tax-Exempt Bond Fund of America 10.2 0.1 1.2 23.3 3.4 6.1 Capital World Bond Fund 7.0 4.6 12.0 5.3 1.7 U.S. Government Securities Fund 1.4 0.7 26.6 10.7 6.4 American High-Income Trust 9.7 11.4 31.1 8.5 Intermediate Bond Fund of America 0.8 23.5 0.4 2.1 American High-Income Municipal Bond Fund 19.5 16.0 6.8 Limited Term Tax-Exempt Bond Fund of America 20.2 1.6 3.8 Short-Term Bond Fund of America 3.0 0.5 American Funds Mortgage Fund 4.6 American Funds Short-Term Tax-Exempt Bond Fund 1.4 Declines are based on the index value of the unmanaged S&P 500 excluding dividends and/or distributions. Each market decline reflects a period of more than 80 days and a decline of about 15% or more in the S&P 500 s index value with 100% recovery between each decline (except for a 78% recovery between March 6, 1978, and November 28, 1980, and a 77% recovery between March 9, 2009, and April 29, 2011). The total returns for the S&P 500 include reinvested dividends and/or distributions but do not reflect the effect of expenses. The total returns for the funds assume all distributions are reinvested and reflect applicable fees and expenses. 8/25/87 12/4/87 7/16/90 10/11/90 3/24/00 10/9/02 10/9/07 3/9/09 4/29/11 10/3/11 13

The American Funds Advantage SM Since 1931, American Funds, part of Capital Group, has helped investors pursue long-term investment success. Our consistent approach in combination with The Capital System SM has resulted in a superior long-term track record. Aligned With Investor Success We base our decisions on a long-term perspective, which we believe aligns our goals with the interests of our clients. Our portfolio managers average 27 years of investment experience, including 22 years at our company, reflecting a career commitment to our long-term approach. 1 The Capital System SM The Capital System combines individual accountability with teamwork. Funds using The Capital System are divided into portions that are managed independently by investment professionals with diverse backgrounds, ages and investment approaches. An extensive global research effort is the backbone of our system. Superior Long-Term Track Record Our equity funds have beaten their Lipper peer indexes in 91% of 10-year periods and 95% of 20-year periods. Our fixed-income funds have beaten their Lipper indexes in 58% of 10-year periods and 58% of 20-year periods. 2 Our fund management fees have been among the lowest in the industry. 3 1 Portfolio manager experience as of December 31, 2015. 2 Based on Class A share results for rolling periods through December 31, 2015. Periods covered are the shorter of the fund s lifetime or since the comparable Lipper index inception date (except Capital Income Builder and SMALLCAP World Fund, for which the Lipper average was used). 3 On average, our management fees were in the lowest quintile 68% of the time, based on the 20-year period ended December 31, 2015, versus comparable Lipper categories, excluding funds of funds. In addition to the more than 40 American Funds, we offer the American Funds Target Date Retirement Series and American Funds Retirement Income Portfolio Series ȘM as well as CollegeAmerica, a 529 college savings plan sponsored by Virginia529 ȘM Coverdell Education Savings Accounts, the American Funds Insurance Series variable annuity funds and a full line of retirement plan solutions. For details, please contact your financial professional or visit americanfunds.com. Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing. If used after March 31, 2016, this brochure must be accompanied by a current American Funds quarterly statistical update. The use of American Funds investors does not necessarily constitute an endorsement of the funds by the individuals portrayed in the brochure. Investing outside the United States involves risks such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in fund prospectuses. These risks may be heightened in connection with investments in developing countries. Small-company stocks entail additional risks, and they can fluctuate in price more than larger company stocks. Bond prices and a bond fund s share price will generally move in the opposite direction of interest rates. The return of principal for bond funds and funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. Investments in mortgage-related securities involve additional risks, such as prepayment risk, as more fully described in the prospectus. Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds. While not directly correlated to changes in interest rates, the values of inflation-linked bonds generally fluctuate in response to changes in real interest rates and may experience greater losses than other debt securities with similar durations. For tax-exempt bond funds, income may be subject to state or local income taxes and/or the federal alternative minimum tax. The Tax-Exempt Bond Fund of America does not invest in bonds subject to the alternative minimum tax. Certain other income, as well as capital gain distributions, may be taxable. A state tax-exempt bond fund is more susceptible to factors adversely affecting issuers of its state s tax-exempt securities than a more widely diversified municipal bond fund. Lit. No. MFGEBR-009-0216P Litho in USA CGD/UNL/8219-S48677 2016 American Funds Distributors, Inc. Printed on recycled paper

Quarterly Statistical Update June 30, 2016 This update must be used (until superseded) with any American Funds and CollegeAmerica sales materials that include investment results for periods ended before the date shown. As a practical matter, financial advisors should consider including this update with all American Funds and CollegeAmerica sales literature. This material may be photocopied. Investment results updated monthly, and daily share price information, are available at americanfunds.com. Exchange privileges generally allow shareholders to transfer some or all of their holdings among American Funds in the same share class without a sales charge. CollegeAmerica allows exchanges twice per calendar year and when the beneficiary is changed. Class A, C and F-1 shares generally may be exchanged into the corresponding 529 share class without a sales charge, but such exchanges from UGMA or UTMA custodial accounts may create significant legal and tax consequences. Exchange privileges are subject to change or termination. American Funds American Funds Class A shares are subject to a 5.75% maximum up-front sales charge for equity funds, Retirement Income Portfolio Series funds and most Portfolio Series funds, 3.75% for most bond and tax-exempt bond funds and American Funds Tax-Advantaged Income Portfolio, and 2.50% for shorter term bond funds, American Funds Preservation Portfolio and American Funds Tax-Exempt Preservation Portfolio. There is no sales charge for the Class A money market fund. Share classes without an up-front sales charge are also available. Class C shares have a 1% contingent deferred sales charge on shares sold within the first year of purchase and convert to Class F-1 shares after 10 years. Class F-1 and F-2 shares have an annual asset-based fee charged by the sponsoring firm. New investments in Class B shares are no longer allowed. For more information and investment results, please see americanfunds.com. Class C shares are limited to a maximum purchase of $500,000, and are not available to certain employer-sponsored retirement plans. Class F-1 and F-2 shares are available only through certain fee-based programs offered by registered investment advisors. Your financial advisor can help you decide which share class is best for you. Class F-2 shares were introduced on August 1, 2008. Fund results prior to the date of first sale are hypothetical, based on Class A share returns without a sales charge and adjusted for typical additional expenses as described on page 18. Individual fund expenses are shown on pages 8 and 9. American Funds in CollegeAmerica CollegeAmerica, a 529 college savings plan sponsored by Virginia529 SM, is available nationwide and allows federal-tax-free earnings and withdrawals for a beneficiary s qualified higher education expenses. (Qualified withdrawals from 529 plans are exempt from federal income tax. Qualified withdrawals may also be exempt from state income tax. Check with a tax advisor. If withdrawals are used for purposes other than higher education, the earnings will be subject to a 10% federal tax penalty in addition to federal and, if applicable, state income tax.) Interests in CollegeAmerica are sold through unaffiliated intermediaries. Depending on your state of residence, there may be an in-state plan that provides tax and other benefits not available through CollegeAmerica. Before investing in any state s 529 plan, you should consult your tax advisor. CollegeAmerica features four share classes. Class 529-A, 529-C and 529-F-1 shares are structured similarly to American Funds Class A, C and F-1 shares, respectively. Unless otherwise indicated, 529 share class details (including sales charges and share conversion) are generally the same as the corresponding American Funds share class. Class 529-E shares are structured similarly to Class 529-F-1 shares but are available only through eligible employer-sponsored plans. Unless otherwise indicated, Class 529-E share details are generally the same as Class 529-F-1 shares. New investments in Class 529-B shares are no longer allowed. More information and investment results for Class 529-B and 529-E shares can be found on americanfunds.com. Class 529-C shares do not convert to Class 529- F-1 shares after 10 years. Class 529-F-1 shares are available only through certain fee-based programs offered by broker-dealer firms and registered investment advisors. CollegeAmerica investors can contribute up to $14,000 a year per beneficiary ($28,000 for married couples) without gift-tax consequences. With a special gift-tax election, five years worth of investments can be accelerated, so investors can contribute up to $70,000 at one time ($140,000 for married couples). Each beneficiary is limited to $350,000 in combined account values (including investments and earnings) of all 529 plans administered by Virginia529. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses, summary prospectuses and CollegeAmerica Program Description, which can be obtained from a financial professional and should be read carefully before investing. CollegeAmerica is distributed by American Funds Distributors, Inc. and sold through unaffiliated intermediaries. The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. The value of fixed-income securities may be affected by changing interest rates and changes in credit ratings of the securities. Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds. Investments in mortgage-related securities involve additional risks, such as prepayment risk, as more fully described in the prospectus. While not directly correlated to changes in interest rates, the values of inflation linked bonds generally fluctuate in response to changes in real interest rates and may experience greater losses than other debt securities with similar durations. Please see important information about risks, fee waivers and expense reimbursements, beginning on page 18.

Figures shown are past results and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. Returns shown at net asset value (NAV) have all distributions reinvested. If a sales charge had been deducted, the results would have been lower. Returns shown at maximum offering price (MOP) for Class A shares reflect deduction of the maximum sales charge of 5.75% for equity funds, Target Date funds, Retirement Income funds and most Portfolio Series funds, 3.75% for most fixed income funds and American Funds Tax- Advantaged Income Portfolio and 2.50% for American Funds Inflation Linked Bond Fund, Intermediate Bond Fund of America, Limited Term Tax- Exempt Bond Fund of America, Short-Term Bond Fund of America, American Funds Short-Term Tax-Exempt Bond Fund, American Funds Preservation Portfolio and American Funds Tax-Exempt Preservation Portfolio. For money market funds, the annualized 7-day SEC yield more accurately reflects the fund's current earnings than does the fund's return. For current expense ratios and month-end results, visit americanfunds.com. You could lose money by investing in the American Funds U.S. Government Money Market Fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time. Class A Shares 1,2,4 Without Sales Charge (NAV) Inception Returns as of 6/30/16 Date 1 Year 5 Year 10 Year Average Annual Total Returns (%) With Maximum Sales Charge (MOP) Fund Lifetime 1 Year 5 Year 10 Year Fund Lifetime Max Sales Charge (%) Annualized 30-day SEC Yield at MOP (%)* Expense Ratio (%) (Net/Gross) Growth AMCAP Fund 5/1/67-1.35 11.54 7.72 11.35-7.01 10.22 7.09 11.22 5.75 0.43 0.67 EuroPacific Growth Fund 4/16/84-9.89 2.14 3.62 10.51-15.07 0.94 3.01 10.31 5.75 1.03 0.83 The Growth Fund of America 12/1/73 0.80 11.12 6.92 13.36-5.00 9.81 6.29 13.20 5.75 0.53 0.65 The New Economy Fund 12/1/83-8.93 10.25 7.74 10.79-14.16 8.95 7.10 10.59 5.75 0.33 0.78 New Perspective Fund 3/13/73-1.88 7.70 6.68 12.04-7.54 6.43 6.05 11.89 5.75 0.88 0.75 New World Fund 6/17/99-6.42 0.54 5.08 7.26-11.80-0.64 4.46 6.88 5.75 0.75 1.04 SMALLCAP World Fund 4/30/90-8.57 6.53 6.18 9.24-13.83 5.27 5.55 9.00 5.75 0.00 1.07 Growth and Income American Funds Developing World Growth 2/3/14-8.39-2.29-13.67-4.66 5.75 1.92 1.32 and Income Fund SM American Mutual Fund 2/21/50 6.57 10.91 7.33 11.60 0.45 9.61 6.70 11.50 5.75 2.00 0.58 Capital World Growth and Income Fund 3/26/93-3.39 6.19 5.35 10.28-8.95 4.93 4.73 10.00 5.75 2.10 0.77 Fundamental Investors 8/1/78 4.35 10.76 7.28 12.29-1.64 9.45 6.64 12.12 5.75 1.45 0.60 International Growth and Income Fund SM 10/1/08-10.62 1.56 5.79-15.76 0.37 4.98 5.75 2.36 0.91 The Investment Company of America 1/1/34 4.73 11.37 6.64 12.09-1.30 10.06 6.02 12.01 5.75 1.75 0.58 Washington Mutual Investors Fund SM 7/31/52 6.22 11.44 6.94 11.78 0.12 10.13 6.31 11.68 5.75 1.82 0.58 Equity Income Capital Income Builder 7/30/87 3.89 6.77 5.45 9.35-2.09 5.52 4.82 9.13 5.75 3.06 0.59 The Income Fund of America 12/1/73 5.42 8.44 6.31 11.07-0.63 7.16 5.69 10.91 5.75 2.90 0.55 Balanced American Balanced Fund 7/26/75 6.29 9.77 7.10 10.69 0.17 8.47 6.47 10.53 5.75 1.55 0.58 American Funds Global Balanced Fund SM 2/1/11 2.46 5.86 6.12-3.42 4.61 4.96 5.75 1.88 0.85 Bond American Funds Inflation Linked Bond Fund 12/14/12 3.49 0.12 0.85-0.61 2.50 4.64 0.80 American Funds Mortgage Fund 11/1/10 4.12 2.88 2.65 0.18 2.09 1.96 3.75 1.90 0.70 American Funds Strategic Bond Fund SM 3/18/16 3.25-0.63 3.75 4.04 1.08/1.16 American High-Income Trust 2/19/88-1.31 3.72 5.50 7.81-4.97 2.94 5.10 7.67 3.75 6.36 0.67 The Bond Fund of America 5/28/74 5.41 3.63 3.77 7.81 1.49 2.84 3.37 7.71 3.75 1.78 0.60 Capital World Bond Fund 8/4/87 6.28 1.68 4.33 6.38 2.29 0.91 3.93 6.24 3.75 1.61 0.93 Intermediate Bond Fund of America 2/19/88 2.79 1.75 2.88 4.87 0.19 1.23 2.62 4.78 2.50 1.28 0.61 Short-Term Bond Fund of America 10/2/06 1.10 0.62 1.69-1.46 0.11 1.42 2.50 1.10 0.60 U.S. Government Securities Fund 10/17/85 4.67 2.88 4.29 5.87 0.72 2.09 3.89 5.74 3.75 1.43 0.65 Tax-Exempt Bond American Funds Short-Term Tax-Exempt Bond Fund 8/7/09 1.51 1.15 1.44-1.02 0.64 1.06 2.50 0.67 0.58 American Funds Tax-Exempt Fund of New York 11/1/10 7.76 5.37 4.90 3.75 4.56 4.20 3.75 1.41 0.67/0.72 American High-Income Municipal Bond Fund 9/26/94 9.97 8.03 5.16 5.83 5.84 7.21 4.76 5.64 3.75 2.33 0.68 Limited Term Tax-Exempt Bond Fund of America 10/6/93 3.33 2.89 3.58 4.13 0.73 2.37 3.31 4.01 2.50 0.66 0.57 The Tax-Exempt Bond Fund of America 10/3/79 7.36 5.75 4.79 6.69 3.36 4.94 4.38 6.58 3.75 1.40 0.54 The Tax-Exempt Fund of California 10/28/86 7.52 6.47 5.06 5.78 3.51 5.66 4.66 5.65 3.75 1.28 0.62 Money Market American Funds U.S. Government Money Market Fund SM 5/1/09 0.00 0.00 0.00 0.00 0.00 0.00 0.00/-0.16 0.08/0.38 Please see important information about risks, fee waivers and expense reimbursements, beginning on page 18. 2

Class A Shares 1,2,4 Without Sales Charge (NAV) Inception Returns as of 6/30/16 Date 1 Year 5 Year 10 Year Average Annual Total Returns (%) With Maximum Sales Charge (MOP) Fund Lifetime 1 Year 5 Year 10 Year Fund Lifetime Max Sales Charge (%) Annualized 30-day SEC Yield at MOP (%)* Expense Ratio (%) (Net/Gross) Portfolio Series American Funds Balanced Portfolio SM 5/18/12 2.75 9.56-3.19 7.99 5.75 1.37 0.70 American Funds Global Growth Portfolio SM 5/18/12-4.62 10.32-10.09 8.74 5.75 1.03 0.84 American Funds Growth and Income Portfolio SM 5/18/12 2.42 10.43-3.45 8.86 5.75 1.75 0.69 American Funds Growth Portfolio SM 5/18/12-2.98 12.29-8.59 10.68 5.75 0.62 0.75 American Funds Income Portfolio SM 5/18/12 4.26 7.63-1.71 6.09 5.75 2.98 0.64 American Funds Preservation Portfolio SM 5/18/12 2.48 1.24-0.03 0.61 2.50 1.08 0.71 American Funds Tax-Advantaged Income Portfolio SM 5/18/12 4.99 8.84 1.06 7.84 3.75 2.67 0.79 American Funds Tax-Exempt Preservation Portfolio SM 5/18/12 4.37 2.56 1.78 1.92 2.50 2.33 0.76 Retirement Income Portfolio Series American Funds Retirement Income Portfolio 8/28/15 6.54 0.42 5.75 2.25 0.72/0.80 - Conservative SM American Funds Retirement Income Portfolio 8/28/15 7.98 1.77 5.75 2.66 0.75/0.83 - Enhanced SM American Funds Retirement Income Portfolio 8/28/15 7.25 1.08 5.75 2.50 0.73/0.81 - Moderate SM Retirement Target Date American Funds 2010 Target Date Retirement Fund 2/1/07 3.98 6.29 4.29-1.99 5.04 3.64 5.75 1.93 0.69 American Funds 2015 Target Date Retirement Fund 2/1/07 3.83 6.76 4.52-2.10 5.50 3.87 5.75 1.84 0.71 American Funds 2020 Target Date Retirement Fund 2/1/07 3.12 7.29 4.65-2.80 6.03 3.99 5.75 1.55 0.71 American Funds 2025 Target Date Retirement Fund 2/1/07 2.39 8.07 5.09-3.52 6.79 4.44 5.75 1.35 0.73 American Funds 2030 Target Date Retirement Fund 2/1/07 0.95 8.38 5.37-4.83 7.10 4.71 5.75 1.28 0.73 American Funds 2035 Target Date Retirement Fund 2/1/07 0.29 8.32 5.34-5.48 7.04 4.68 5.75 1.24 0.74 American Funds 2040 Target Date Retirement Fund 2/1/07 0.17 8.40 5.38-5.59 7.12 4.72 5.75 1.19 0.74 American Funds 2045 Target Date Retirement Fund 2/1/07 0.01 8.41 5.38-5.71 7.13 4.72 5.75 1.16 0.75 American Funds 2050 Target Date Retirement Fund 2/1/07 0.00 8.40 5.38-5.77 7.12 4.72 5.75 1.15 0.76 American Funds 2055 Target Date Retirement Fund 2/1/10 0.02 8.39 9.78-5.74 7.11 8.77 5.75 1.18 0.78 American Funds 2060 Target Date Retirement Fund SM 3/27/15 0.06 0.68-5.65-3.94 5.75 1.03 0.88/1.12 * Two SEC yields are shown for some funds. The first number reflects the fee waiver and/or reimbursement; the second does not. Please see important information about risks, fee waivers and expense reimbursements, beginning on page 18. 3

Figures shown are past results and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. Returns shown at net asset value (NAV) have all distributions reinvested. If a sales charge had been deducted, the results would have been lower. Class C shares reflect the deduction of a contingent deferred sales charge (1%) on shares sold within the first year of purchase. For money market funds, the annualized 7-day SEC yield more accurately reflects the fund's current earnings than does the fund's return. For current expense ratios and month-end results, visit americanfunds.com. You could lose money by investing in the American Funds U.S. Government Money Market Fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time. Class C Shares 1,3,4 Average Annual Total Returns (%) Inception Without CDSC With CDSC Returns as of 6/30/16 Date 1 Year 5 Year 10 Year Fund Lifetime 1 Year Annualized 30-day SEC Yield at NAV (%)* Expense Ratio (%) (Net/Gross) Growth AMCAP Fund 5/1/67-2.13 10.65 6.87 11.12-3.04-0.34 1.48 EuroPacific Growth Fund 4/16/84-10.59 1.35 2.81 10.20-11.47 0.32 1.62 The Growth Fund of America 12/1/73 0.00 10.24 6.08 13.11-0.92-0.20 1.45 The New Economy Fund 12/1/83-9.64 9.37 6.89 10.48-10.50-0.46 1.59 New Perspective Fund 3/13/73-2.68 6.85 5.82 11.79-3.61 0.16 1.55 New World Fund 6/17/99-7.16-0.26 4.25 6.74-8.09 0.04 1.84 SMALLCAP World Fund 4/30/90-9.31 5.68 5.35 8.90-10.15-0.78 1.87 Growth and Income American Funds Developing World Growth 2/3/14-9.12-2.99-10.01 1.28 2.07 and Income Fund SM American Mutual Fund 2/21/50 5.71 10.02 6.46 11.40 4.71 1.34 1.38 Capital World Growth and Income Fund 3/26/93-4.18 5.34 4.51 9.87-5.11 1.46 1.57 Fundamental Investors 8/1/78 3.54 9.87 6.42 12.02 2.55 0.75 1.40 International Growth and Income Fund SM 10/1/08-11.35 0.75 4.95-12.22 1.68 1.69 The Investment Company of America 1/1/34 3.88 10.47 5.78 11.91 2.92 1.09 1.39 Washington Mutual Investors Fund SM 7/31/52 5.33 10.55 6.09 11.59 4.34 1.17 1.38 Equity Income Capital Income Builder 7/30/87 3.06 5.93 4.60 8.99 2.06 2.47 1.38 The Income Fund of America 12/1/73 4.64 7.58 5.46 10.80 3.64 2.29 1.35 Balanced American Balanced Fund 7/26/75 5.46 8.90 6.26 10.44 4.46 0.85 1.38 American Funds Global Balanced Fund SM 2/1/11 1.65 5.01 5.28 0.66 1.19 1.65 Bond American Funds Inflation Linked Bond Fund 12/14/12 2.80-0.85 1.80 3.70 1.55 American Funds Mortgage Fund 11/1/10 3.31 2.04 1.84 2.31 1.16 1.50 American Funds Strategic Bond Fund SM 3/18/16 3.00 2.73 1.86/1.94 American High-Income Trust 2/19/88-2.09 2.90 4.66 7.45-3.01 5.81 1.47 The Bond Fund of America 5/28/74 4.58 2.82 2.95 7.56 3.58 1.07 1.40 Capital World Bond Fund 8/4/87 5.41 0.88 3.50 6.06 4.41 0.90 1.73 Intermediate Bond Fund of America 2/19/88 1.99 0.96 2.08 4.54 0.99 0.53 1.39 Short-Term Bond Fund of America 10/2/06 0.25-0.22 0.86-0.75 0.28 1.44 U.S. Government Securities Fund 10/17/85 3.90 2.07 3.48 5.58 2.90 0.72 1.42 Tax-Exempt Bond American Funds Tax-Exempt Fund of New York 11/1/10 6.92 4.47 4.02 5.92 0.55 1.50/1.56 American High-Income Municipal Bond Fund 9/26/94 9.14 7.20 4.35 5.39 8.14 1.56 1.44 Limited Term Tax-Exempt Bond Fund of America 10/6/93 2.55 2.12 2.81 3.72 1.55-0.11 1.33 The Tax-Exempt Bond Fund of America 10/3/79 6.52 4.92 3.96 6.38 5.52 0.75 1.33 The Tax-Exempt Fund of California 10/28/86 6.68 5.64 4.23 5.41 5.68 0.48 1.40 Money Market American Funds U.S. Government Money Market Fund SM 5/1/09 0.00 0.00 0.00-1.00 0.00/-0.16 0.08/0.42 Please see important information about risks, fee waivers and expense reimbursements, beginning on page 18. 4

Class C Shares 1,3,4 Average Annual Total Returns (%) Inception Without CDSC With CDSC Returns as of 6/30/16 Date 1 Year 5 Year 10 Year Fund Lifetime 1 Year Annualized 30-day SEC Yield at NAV (%)* Expense Ratio (%) (Net/Gross) Portfolio Series American Funds Balanced Portfolio SM 5/18/12 2.04 1.04 0.69 1.49 American Funds Global Growth Portfolio SM 5/18/12-5.45 9.45-6.36 0.28 1.61 American Funds Growth and Income Portfolio SM 5/18/12 1.53 9.57 0.55 1.06 1.48 American Funds Growth Portfolio SM 5/18/12-3.69 11.41-4.62-0.15 1.54 American Funds Income Portfolio SM 5/18/12 3.51 6.82 2.51 2.36 1.41 American Funds Preservation Portfolio SM 5/18/12 1.85 0.52 0.85 0.35 1.43 American Funds Tax-Advantaged Income Portfolio SM 5/18/12 4.33 8.08 3.33 1.90 1.49 American Funds Tax-Exempt Preservation Portfolio SM 5/18/12 3.55 1.83 2.55 1.62 1.46 Retirement Income Portfolio Series American Funds Retirement Income Portfolio 8/28/15 5.91 1.44 1.42/1.50 - Conservative SM American Funds Retirement Income Portfolio - Enhanced SM 8/28/15 7.39 1.83 1.45/1.53 American Funds Retirement Income Portfolio 8/28/15 6.61 1.67 1.43/1.51 - Moderate SM Retirement Target Date American Funds 2010 Target Date Retirement Fund 2/1/07 3.15 5.46 3.47 2.16 1.26 1.45 American Funds 2015 Target Date Retirement Fund 2/1/07 3.02 5.92 3.69 2.04 1.17 1.45 American Funds 2020 Target Date Retirement Fund 2/1/07 2.28 6.44 3.81 1.29 0.81 1.46 American Funds 2025 Target Date Retirement Fund 2/1/07 1.60 7.21 4.25 0.63 0.64 1.48 American Funds 2030 Target Date Retirement Fund 2/1/07 0.24 7.53 4.53-0.71 0.56 1.49 American Funds 2035 Target Date Retirement Fund 2/1/07-0.44 7.48 4.50-1.39 0.51 1.51 American Funds 2040 Target Date Retirement Fund 2/1/07-0.68 7.53 4.53-1.63 0.47 1.51 American Funds 2045 Target Date Retirement Fund 2/1/07-0.77 7.52 4.52-1.72 0.41 1.52 American Funds 2050 Target Date Retirement Fund 2/1/07-0.77 7.53 4.53-1.72 0.40 1.53 American Funds 2055 Target Date Retirement Fund 2/1/10-0.76 7.55 8.92-1.72 0.39 1.56 American Funds 2060 Target Date Retirement Fund SM 3/27/15-0.74-0.04-1.73 0.34 1.57/1.81 * Two SEC yields are shown for some funds. The first number reflects the fee waiver and/or reimbursement; the second does not. Please see important information about risks, fee waivers and expense reimbursements, beginning on page 18. 5

Figures shown are past results at net asset value and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For money market funds, the annualized 7-day SEC yield more accurately reflects the fund's current earnings than does the fund's return. For current expense ratios and month-end results, visit americanfunds.com. You could lose money by investing in the American Funds U.S. Government Money Market Fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time. Class F-1 Shares 1,3,4 Annualized 30-day SEC Yield at NAV (%)* Expense Ratio (%) (Net/Gross) Inception Average Annual Total Returns (%) Returns as of 6/30/16 Date 1 Year 5 Year 10 Year Fund Lifetime Growth AMCAP Fund 5/1/67-1.43 11.50 7.71 11.30 0.40 0.73 EuroPacific Growth Fund 4/16/84-9.90 2.12 3.60 10.46 1.10 0.86 The Growth Fund of America 12/1/73 0.75 11.09 6.92 13.32 0.54 0.70 The New Economy Fund 12/1/83-8.96 10.22 7.73 10.74 0.29 0.83 New Perspective Fund 3/13/73-1.98 7.66 6.64 11.98 0.85 0.81 New World Fund 6/17/99-6.37 0.57 5.10 7.23 0.90 1.02 SMALLCAP World Fund 4/30/90-8.58 6.54 6.20 9.21-0.01 1.07 Growth and Income American Funds Developing World Growth 2/3/14-8.33-2.23 2.16 1.26 and Income Fund SM American Mutual Fund 2/21/50 6.46 10.84 7.28 11.53 2.01 0.66 Capital World Growth and Income Fund 3/26/93-3.45 6.15 5.33 10.23 2.20 0.81 Fundamental Investors 8/1/78 4.29 10.70 7.24 12.24 1.54 0.67 International Growth and Income Fund SM 10/1/08-10.68 1.52 5.75 2.50 0.95 The Investment Company of America 1/1/34 4.60 11.28 6.59 12.02 1.77 0.67 Washington Mutual Investors Fund SM 7/31/52 6.10 11.38 6.90 11.71 1.84 0.66 Equity Income Capital Income Builder 7/30/87 3.80 6.72 5.40 9.28 3.16 0.65 The Income Fund of America 12/1/73 5.33 8.34 6.25 11.00 2.95 0.64 Balanced American Balanced Fund 7/26/75 6.22 9.73 7.09 10.64 1.54 0.65 American Funds Global Balanced Fund SM 2/1/11 2.40 5.82 6.09 1.90 0.91 Bond American Funds Inflation Linked Bond Fund 12/14/12 3.47-0.14 4.55 0.82 American Funds Mortgage Fund 11/1/10 4.12 2.85 2.62 1.98 0.71 American Funds Strategic Bond Fund SM 3/18/16 3.15 3.38 1.09/1.17 American High-Income Trust 2/19/88-1.34 3.68 5.46 7.74 6.60 0.70 The Bond Fund of America 5/28/74 5.38 3.61 3.75 7.76 1.86 0.63 Capital World Bond Fund 8/4/87 6.20 1.68 4.33 6.34 1.85 0.91 Intermediate Bond Fund of America 2/19/88 2.74 1.70 2.85 4.83 1.26 0.66 Short-Term Bond Fund of America 10/2/06 0.99 0.50 1.60 0.95 0.73 U.S. Government Securities Fund 10/17/85 4.67 2.88 4.30 5.84 1.44 0.62 Tax-Exempt Bond American Funds Short-Term Tax-Exempt Bond Fund 8/7/09 1.29 0.92 1.23 0.39 0.80 American Funds Tax-Exempt Fund of New York 11/1/10 7.83 5.29 4.82 1.71 0.74/0.80 American High-Income Municipal Bond Fund 9/26/94 9.89 7.93 5.07 5.74 2.20 0.75 Limited Term Tax-Exempt Bond Fund of America 10/6/93 3.24 2.81 3.53 4.05 0.51 0.67 The Tax-Exempt Bond Fund of America 10/3/79 7.19 5.61 4.67 6.60 1.80 0.67 The Tax-Exempt Fund of California 10/28/86 7.39 6.34 4.96 5.69 1.10 0.74 Money Market American Funds U.S. Government Money Market Fund SM 5/1/09 0.00 0.00 0.00 0.00/-0.68 0.08/0.70 Please see important information about risks, fee waivers and expense reimbursements, beginning on page 18. 6

Class F-1 Shares 1,3,4 Annualized 30-day SEC Yield at NAV (%)* Expense Ratio (%) (Net/Gross) Inception Average Annual Total Returns (%) Returns as of 6/30/16 Date 1 Year 5 Year 10 Year Fund Lifetime Portfolio Series American Funds Balanced Portfolio SM 5/18/12 2.73 9.53 1.40 0.76 American Funds Global Growth Portfolio SM 5/18/12-4.70 10.28 1.00 0.89 American Funds Growth and Income Portfolio SM 5/18/12 2.38 10.39 1.77 0.75 American Funds Growth Portfolio SM 5/18/12-3.07 12.23 0.55 0.82 American Funds Income Portfolio SM 5/18/12 4.31 7.62 3.07 0.68 American Funds Preservation Portfolio SM 5/18/12 2.48 1.26 1.08 0.70 American Funds Tax-Advantaged Income Portfolio SM 5/18/12 5.02 8.88 2.61 0.76 American Funds Tax-Exempt Preservation Portfolio SM 5/18/12 4.30 2.59 2.37 0.73 Retirement Income Portfolio Series American Funds Retirement Income Portfolio 8/28/15 6.55 2.10 0.73/0.81 - Conservative SM American Funds Retirement Income Portfolio 8/28/15 7.99 2.44 0.76/0.84 - Enhanced SM American Funds Retirement Income Portfolio 8/28/15 7.26 2.30 0.74/0.82 - Moderate SM 4.26 Retirement Target Date American Funds 2010 Target Date Retirement Fund 2/1/07 3.99 6.27 1.97 0.71 American Funds 2015 Target Date Retirement Fund 2/1/07 3.81 6.70 4.46 1.89 0.72 American Funds 2020 Target Date Retirement Fund 2/1/07 3.13 7.26 4.60 1.52 0.73 American Funds 2025 Target Date Retirement Fund 2/1/07 2.30 8.02 5.04 1.35 0.76 American Funds 2030 Target Date Retirement Fund 2/1/07 0.99 8.35 5.32 1.34 0.77 American Funds 2035 Target Date Retirement Fund 2/1/07 0.32 8.29 5.29 1.22 0.77 American Funds 2040 Target Date Retirement Fund 2/1/07 0.07 8.35 5.33 1.26 0.78 American Funds 2045 Target Date Retirement Fund 2/1/07-0.07 8.34 5.32 1.13 0.80 American Funds 2050 Target Date Retirement Fund 2/1/07-0.06 8.35 5.33 1.13 0.79 American Funds 2055 Target Date Retirement Fund 2/1/10-0.04 8.37 9.75 1.10 0.82 American Funds 2060 Target Date Retirement Fund SM 3/27/15 0.14 0.83 1.76 0.85/1.09 * Two SEC yields are shown for some funds. The first number reflects the fee waiver and/or reimbursement; the second does not. Please see important information about risks, fee waivers and expense reimbursements, beginning on page 18. 7

Figures shown are past results at net asset value and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For money market funds, the annualized 7-day SEC yield more accurately reflects the fund's current earnings than does the fund's return. For current expense ratios and month-end results, visit americanfunds.com. You could lose money by investing in the American Funds U.S. Government Money Market Fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time. Class F-2 Shares 1,3,4 Annualized 30-day SEC Yield at NAV (%)* Expense Ratio (%) (Net/Gross) Inception Average Annual Total Returns (%) Returns as of 6/30/16 Date 1 Year 5 Year 10 Year Fund Lifetime Growth AMCAP Fund 5/1/67-1.16 11.78 7.97 11.58 0.65 0.47 EuroPacific Growth Fund 4/16/84-9.67 2.40 3.87 10.74 1.29 0.60 The Growth Fund of America 12/1/73 1.03 11.39 7.18 13.61 0.79 0.43 The New Economy Fund 12/1/83-8.72 10.53 8.01 11.04 0.58 0.57 New Perspective Fund 3/13/73-1.68 7.96 6.92 12.26 1.13 0.55 New World Fund 6/17/99-6.12 0.84 5.37 7.53 1.13 0.76 SMALLCAP World Fund 4/30/90-8.32 6.83 6.48 9.51 0.28 0.82 Growth and Income American Funds Developing World Growth 2/3/14-8.17-1.99 2.35 1.00 and Income Fund SM American Mutual Fund 2/21/50 6.77 11.11 7.53 11.77 2.26 0.41 Capital World Growth and Income Fund 3/26/93-3.19 6.45 5.60 10.51 2.42 0.54 Fundamental Investors 8/1/78 4.56 10.99 7.51 12.51 1.70 0.41 International Growth and Income Fund SM 10/1/08-10.43 1.78 6.02 2.71 0.69 The Investment Company of America 1/1/34 4.92 11.60 6.86 12.27 1.99 0.41 Washington Mutual Investors Fund SM 7/31/52 6.39 11.66 7.16 11.98 2.09 0.41 Equity Income Capital Income Builder 7/30/87 4.10 6.99 5.65 9.54 3.44 0.40 The Income Fund of America 12/1/73 5.65 8.62 6.50 11.25 3.22 0.38 Balanced American Balanced Fund 7/26/75 6.51 10.00 7.33 10.92 1.82 0.39 American Funds Global Balanced Fund SM 2/1/11 2.66 6.08 6.35 2.18 0.65 Bond American Funds Inflation Linked Bond Fund 12/14/12 3.81 0.13 4.68 0.55 American Funds Mortgage Fund 11/1/10 4.50 3.13 2.90 2.23 0.42 American Funds Strategic Bond Fund SM 3/18/16 3.27 3.57 0.79/0.87 American High-Income Trust 2/19/88-1.07 3.95 5.72 8.04 6.84 0.45 The Bond Fund of America 5/28/74 5.67 3.89 4.01 8.05 2.08 0.37 Capital World Bond Fund 8/4/87 6.62 1.97 4.61 6.67 1.80 0.65 Intermediate Bond Fund of America 2/19/88 3.03 1.99 3.14 5.13 1.49 0.39 Short-Term Bond Fund of America 10/2/06 1.25 0.78 1.87 1.19 0.45 U.S. Government Securities Fund 10/17/85 4.94 3.13 4.55 6.17 1.71 0.38 Tax-Exempt Bond American Funds Short-Term Tax-Exempt Bond Fund 8/7/09 1.54 1.19 1.49 0.64 0.55 American Funds Tax-Exempt Fund of New York 11/1/10 7.91 5.46 5.00 1.42 0.56/0.61 American High-Income Municipal Bond Fund 9/26/94 10.17 8.21 5.34 6.02 2.49 0.49 Limited Term Tax-Exempt Bond Fund of America 10/6/93 3.50 3.07 3.77 4.32 0.77 0.41 The Tax-Exempt Bond Fund of America 10/3/79 7.50 5.89 4.94 6.83 1.47/1.46 0.41 The Tax-Exempt Fund of California 10/28/86 7.66 6.61 5.21 5.92 1.35 0.49 Money Market American Funds U.S. Government Money Market Fund SM 5/1/09 0.00 0.00 0.00 0.00/-0.37 0.08/0.44 Please see important information about risks, fee waivers and expense reimbursements, beginning on page 18. 8

Class F-2 Shares 1,3,4 Annualized 30-day SEC Yield at NAV (%)* Expense Ratio (%) (Net/Gross) Inception Average Annual Total Returns (%) Returns as of 6/30/16 Date 1 Year 5 Year 10 Year Fund Lifetime Portfolio Series American Funds Balanced Portfolio SM 5/18/12 3.05 9.81 1.67 0.51 American Funds Global Growth Portfolio SM 5/18/12-4.49 10.55 1.27 0.63 American Funds Growth and Income Portfolio SM 5/18/12 2.62 10.68 2.04 0.50 American Funds Growth Portfolio SM 5/18/12-2.80 12.52 0.83 0.56 American Funds Income Portfolio SM 5/18/12 4.58 7.89 3.37 0.44 American Funds Preservation Portfolio SM 5/18/12 2.74 1.50 1.32 0.45 American Funds Tax-Advantaged Income Portfolio SM 5/18/12 5.36 9.16 2.89 0.51 American Funds Tax-Exempt Preservation Portfolio SM 5/18/12 4.67 2.85 2.61 0.48 Retirement Income Portfolio Series American Funds Retirement Income Portfolio 8/28/15 6.79 2.31 0.48/0.56 - Conservative SM American Funds Retirement Income Portfolio 8/28/15 8.22 2.78 0.51/0.59 - Enhanced SM American Funds Retirement Income Portfolio 8/28/15 7.47 2.53 0.49/0.57 - Moderate SM 4.52 Retirement Target Date American Funds 2010 Target Date Retirement Fund 2/1/07 4.18 6.53 2.32 0.46 American Funds 2015 Target Date Retirement Fund 2/1/07 4.14 6.99 4.74 2.17 0.46 American Funds 2020 Target Date Retirement Fund 2/1/07 3.42 7.53 4.87 1.82 0.47 American Funds 2025 Target Date Retirement Fund 2/1/07 2.64 8.30 5.30 1.64 0.49 American Funds 2030 Target Date Retirement Fund 2/1/07 1.28 8.62 5.59 1.55 0.51 American Funds 2035 Target Date Retirement Fund 2/1/07 0.58 8.56 5.56 1.52 0.52 American Funds 2040 Target Date Retirement Fund 2/1/07 0.35 8.62 5.59 1.45 0.52 American Funds 2045 Target Date Retirement Fund 2/1/07 0.23 8.61 5.58 1.40 0.55 American Funds 2050 Target Date Retirement Fund 2/1/07 0.27 8.62 5.59 1.38 0.53 American Funds 2055 Target Date Retirement Fund 2/1/10 0.21 8.62 10.01 1.35 0.58 American Funds 2060 Target Date Retirement Fund SM 3/27/15 0.30 0.95 1.44 0.61/0.85 * Two SEC yields are shown for some funds. The first number reflects the fee waiver and/or reimbursement; the second does not. Please see important information about risks, fee waivers and expense reimbursements, beginning on page 18. 9

Figures shown are past results and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. Returns shown at net asset value (NAV) have all distributions reinvested. If a sales charge had been deducted, the results would have been lower. Returns shown at maximum offering price (MOP) for Class 529-A shares reflect deduction of the maximum sales charge of 5.75% for equity funds and most Portfolio Series funds, 4.25% for most College Target Date funds, 3.75% for most fixed income funds and 2.50% for American Funds Inflation Linked Bond Fund, Intermediate Bond Fund of America, Short-Term Bond Fund of America, American Funds Preservation Portfolio and College Enrollment Fund. For money market funds, the annualized 7-day SEC yield more accurately reflects the fund's current earnings than does the fund's return. For current expense ratios and month-end results, visit americanfunds.com. You could lose money by investing in the American Funds U.S. Government Money Market Fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time. CollegeAmerica Class 529-A Shares 1,2,3,4 Without Sales Charge (NAV) Inception Returns as of 6/30/16 Date 1 Year 5 Year 10 Year Average Annual Total Returns (%) With Maximum Sales Charge (MOP) Fund Lifetime 1 Year 5 Year 10 Year Fund Lifetime Max Sales Charge (%) Annualized 30-day SEC Yield at MOP (%)* Expense Ratio (%) (Net/Gross) Growth AMCAP Fund 5/1/67-1.44 11.43 7.65 11.25-7.10 10.12 7.01 11.11 5.75 0.33 0.77 EuroPacific Growth Fund 4/16/84-9.94 2.09 3.57 10.42-15.10 0.89 2.96 10.22 5.75 0.95 0.90 The Growth Fund of America 12/1/73 0.70 11.02 6.86 13.26-5.10 9.72 6.22 13.10 5.75 0.44 0.73 The New Economy Fund 12/1/83-9.00 10.17 7.68 10.70-14.22 8.87 7.05 10.50 5.75 0.24 0.86 New Perspective Fund 3/13/73-1.99 7.61 6.59 11.94-7.62 6.34 5.96 11.78 5.75 0.78 0.84 New World Fund 6/17/99-6.48 0.48 5.03 7.20-11.85-0.70 4.41 6.83 5.75 0.69 1.11 SMALLCAP World Fund 4/30/90-8.65 6.45 6.13 9.17-13.90 5.20 5.50 8.92 5.75-0.09 1.15 Growth and Income American Funds Developing World Growth 2/3/14-8.35-2.27-13.64-4.65 5.75 1.90 1.38 and Income Fund SM American Mutual Fund 2/21/50 6.46 10.80 7.24 11.49 0.32 9.50 6.60 11.39 5.75 1.90 0.68 Capital World Growth and Income Fund 3/26/93-3.49 6.10 5.28 10.19-9.04 4.84 4.66 9.91 5.75 2.01 0.86 Fundamental Investors 8/1/78 4.27 10.65 7.20 12.19-1.73 9.35 6.57 12.01 5.75 1.35 0.70 International Growth and Income Fund SM 10/1/08-10.71 1.49 5.72-15.84 0.29 4.91 5.75 2.27 0.97 The Investment Company of America 1/1/34 4.59 11.25 6.54 11.97-1.42 9.94 5.92 11.89 5.75 1.65 0.69 Washington Mutual Investors Fund SM 7/31/52 6.10 11.34 6.85 11.67 0.00 10.03 6.22 11.56 5.75 1.73 0.68 Equity Income Capital Income Builder 7/30/87 3.79 6.68 5.36 9.24-2.18 5.42 4.74 9.02 5.75 2.97 0.68 The Income Fund of America 12/1/73 5.32 8.33 6.22 10.95-0.73 7.05 5.59 10.80 5.75 2.80 0.65 Balanced American Balanced Fund 7/26/75 6.20 9.67 7.03 10.59 0.08 8.38 6.39 10.43 5.75 1.44 0.68 American Funds Global Balanced Fund SM 2/1/11 2.42 5.79 6.05-3.47 4.54 4.89 5.75 1.77 0.93 Bond American Funds Inflation Linked Bond Fund 12/14/12 3.65-0.16 1.06-0.87 2.50 4.36 0.93 American Funds Mortgage Fund 11/1/10 4.15 2.79 2.57 0.21 2.00 1.88 3.75 1.77 0.79 American Funds Strategic Bond Fund SM 3/18/16 3.13-0.74 3.75 3.16 1.23/1.31 American High-Income Trust 2/19/88-1.40 3.63 5.42 7.71-5.06 2.85 5.02 7.56 3.75 6.26 0.76 The Bond Fund of America 5/28/74 5.31 3.54 3.69 7.71 1.39 2.75 3.29 7.61 3.75 1.67 0.70 Capital World Bond Fund 8/4/87 6.21 1.60 4.26 6.30 2.24 0.83 3.86 6.16 3.75 1.51 1.02 Intermediate Bond Fund of America 2/19/88 2.69 1.66 2.80 4.78 0.10 1.14 2.54 4.68 2.50 1.16 0.70 Short-Term Bond Fund of America 10/2/06 1.04 0.56 1.62-1.48 0.05 1.35 2.50 1.01 0.66 U.S. Government Securities Fund 10/17/85 4.58 2.79 4.22 5.78 0.64 2.01 3.82 5.65 3.75 1.35 0.72 Money Market American Funds U.S. Government Money Market Fund SM 5/1/09 0.00 0.00 0.00 0.00 0.00 0.00 0.00/-0.25 0.08/0.50 Please see important information about risks, fee waivers and expense reimbursements, beginning on page 18. 10

CollegeAmerica Class 529-A Shares 1,2,3,4 Without Sales Charge (NAV) Inception Returns as of 6/30/16 Date 1 Year 5 Year 10 Year Average Annual Total Returns (%) With Maximum Sales Charge (MOP) Fund Lifetime 1 Year 5 Year 10 Year Fund Lifetime Max Sales Charge (%) Annualized 30-day SEC Yield at MOP (%)* Expense Ratio (%) (Net/Gross) Portfolio Series American Funds Balanced Portfolio SM 5/18/12 2.68 9.48-3.26 7.92 5.75 1.31 0.80 American Funds Global Growth Portfolio SM 5/18/12-4.75 10.26-10.22 8.69 5.75 0.95 0.90 American Funds Growth and Income Portfolio SM 5/18/12 2.34 10.35-3.53 8.78 5.75 1.65 0.78 American Funds Growth Portfolio SM 5/18/12-2.98 12.23-8.53 10.63 5.75 0.52 0.82 American Funds Income Portfolio SM 5/18/12 4.15 7.55-1.81 6.01 5.75 2.88 0.75 American Funds Preservation Portfolio SM 5/18/12 2.52 1.20 0.01 0.57 2.50 1.05 0.77 College Target Date American Funds College 2018 Fund 9/14/12 3.36 4.56-1.04 3.38 4.25 1.19 0.74 American Funds College 2021 Fund 9/14/12 4.26 5.74-0.14 4.55 4.25 1.55 0.71 American Funds College 2024 Fund 9/14/12 3.78 6.77-0.61 5.57 4.25 1.62 0.76 American Funds College 2027 Fund 9/14/12 2.51 7.60-1.81 6.38 4.25 1.48 0.78 American Funds College 2030 Fund 9/14/12 1.14 8.26-3.18 7.04 4.25 1.37 0.79 American Funds College 2033 Fund SM 3/27/15-0.93-0.58-5.10-3.92 4.25 1.40 0.85/0.88 American Funds College Enrollment Fund 9/14/12 2.44 1.03-0.17 0.34 2.50 0.94 0.78 * Two SEC yields are shown for some funds. The first number reflects the fee waiver and/or reimbursement; the second does not. Please see important information about risks, fee waivers and expense reimbursements, beginning on page 18. 11

Figures shown are past results and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. Returns shown at net asset value (NAV) have all distributions reinvested. If a sales charge had been deducted, the results would have been lower. Class 529-C shares reflect the deduction of a contingent deferred sales charge (1%) on shares sold within the first year of purchase. For money market funds, the annualized 7-day SEC yield more accurately reflects the fund's current earnings than does the fund's return. For current expense ratios and month-end results, visit americanfunds.com. You could lose money by investing in the American Funds U.S. Government Money Market Fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time. CollegeAmerica Class 529-C Shares 1,3,4 Average Annual Total Returns (%) Inception Without CDSC With CDSC Returns as of 6/30/16 Date 1 Year 5 Year 10 Year Fund Lifetime 1 Year Annualized 30-day SEC Yield at NAV (%)* Expense Ratio (%) (Net/Gross) Growth AMCAP Fund 5/1/67-2.20 10.57 6.79 10.35-3.10-0.36 1.55 EuroPacific Growth Fund 4/16/84-10.66 1.28 2.74 9.53-11.53 0.30 1.68 The Growth Fund of America 12/1/73-0.07 10.16 6.01 12.35-0.99-0.23 1.51 The New Economy Fund 12/1/83-9.74 9.29 6.80 9.80-10.59-0.48 1.66 New Perspective Fund 3/13/73-2.77 6.77 5.76 11.04-3.69 0.14 1.62 New World Fund 6/17/99-7.23-0.32 4.18 6.32-8.15 0.03 1.90 SMALLCAP World Fund 4/30/90-9.34 5.61 5.28 8.28-10.19-0.79 1.93 Growth and Income American Funds Developing World Growth 2/3/14-9.15-3.03-10.05 1.21 2.14 and Income Fund SM American Mutual Fund 2/21/50 5.63 9.94 6.39 10.61 4.63 1.31 1.46 Capital World Growth and Income Fund 3/26/93-4.23 5.27 4.44 9.31-5.16 1.42 1.64 Fundamental Investors 8/1/78 3.45 9.79 6.34 11.30 2.46 0.72 1.48 International Growth and Income Fund SM 10/1/08-11.44 0.67 4.87-12.31 1.65 1.77 The Investment Company of America 1/1/34 3.79 10.39 5.71 11.09 2.83 1.07 1.46 Washington Mutual Investors Fund SM 7/31/52 5.29 10.48 6.02 10.79 4.29 1.14 1.45 Equity Income Capital Income Builder 7/30/87 2.98 5.85 4.53 8.37 1.98 2.43 1.46 The Income Fund of America 12/1/73 4.52 7.50 5.39 10.08 3.52 2.25 1.42 Balanced American Balanced Fund 7/26/75 5.39 8.83 6.19 9.72 4.39 0.81 1.45 American Funds Global Balanced Fund SM 2/1/11 1.58 4.93 5.20 0.59 1.13 1.73 Bond American Funds Inflation Linked Bond Fund 12/14/12 2.63-0.94 1.63 3.62 1.64 American Funds Mortgage Fund 11/1/10 3.24 1.97 1.77 2.24 1.09 1.57 American Funds Strategic Bond Fund SM 3/18/16 3.02 2.67 1.93/2.01 American High-Income Trust 2/19/88-2.15 2.83 4.59 6.84-3.08 5.82 1.53 The Bond Fund of America 5/28/74 4.51 2.75 2.89 6.85 3.51 1.06 1.46 Capital World Bond Fund 8/4/87 5.38 0.81 3.43 5.45 4.38 0.88 1.79 Intermediate Bond Fund of America 2/19/88 1.93 0.89 2.01 3.95 0.93 0.55 1.46 Short-Term Bond Fund of America 10/2/06 0.14-0.30 0.78-0.86 0.26 1.52 U.S. Government Securities Fund 10/17/85 3.79 2.01 3.41 4.93 2.79 0.74 1.47 Money Market American Funds U.S. Government Money Market Fund SM 5/1/09 0.00 0.00 0.00-1.00 0.00/-0.25 0.08/0.50 Please see important information about risks, fee waivers and expense reimbursements, beginning on page 18. 12

CollegeAmerica Class 529-C Shares 1,3,4 Average Annual Total Returns (%) Inception Without CDSC With CDSC Returns as of 6/30/16 Date 1 Year 5 Year 10 Year Fund Lifetime 1 Year Annualized 30-day SEC Yield at NAV (%)* Expense Ratio (%) (Net/Gross) Portfolio Series American Funds Balanced Portfolio SM 5/18/12 1.91 8.62 0.92 0.60 1.58 American Funds Global Growth Portfolio SM 5/18/12-5.52 9.36-6.43 0.19 1.70 American Funds Growth and Income Portfolio SM 5/18/12 1.57 9.49 0.59 0.97 1.57 American Funds Growth Portfolio SM 5/18/12-3.84 11.30-4.77-0.24 1.64 American Funds Income Portfolio SM 5/18/12 3.39 6.73 2.39 2.32 1.50 American Funds Preservation Portfolio SM 5/18/12 1.64 0.42 0.64 0.29 1.52 College Target Date American Funds College 2018 Fund 9/14/12 2.61 3.77 1.62 0.50 1.51 American Funds College 2021 Fund 9/14/12 3.45 4.92 2.45 0.86 1.50 American Funds College 2024 Fund 9/14/12 2.94 5.95 1.96 0.93 1.55 American Funds College 2027 Fund 9/14/12 1.67 6.75 0.69 0.78 1.58 American Funds College 2030 Fund 9/14/12 0.28 7.39-0.69 0.67 1.61 American Funds College 2033 Fund SM 3/27/15-1.73-1.30-2.71 0.73 1.64/1.67 American Funds College Enrollment Fund 9/14/12 1.67 0.27 0.67 0.19 1.53 * Two SEC yields are shown for some funds. The first number reflects the fee waiver and/or reimbursement; the second does not. Please see important information about risks, fee waivers and expense reimbursements, beginning on page 18. 13

Figures shown are past results at net asset value and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. For money market funds, the annualized 7-day SEC yield more accurately reflects the fund's current earnings than does the fund's return. For current expense ratios and month-end results, visit americanfunds.com. You could lose money by investing in the American Funds U.S. Government Money Market Fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time. CollegeAmerica Class 529-F-1 Shares 1,3,4 Annualized 30-day SEC Yield at NAV (%)* Expense Ratio (%) (Net/Gross) Inception Average Annual Total Returns (%) Returns as of 6/30/16 Date 1 Year 5 Year 10 Year Fund Lifetime Growth AMCAP Fund 5/1/67-1.28 11.67 7.86 11.26 0.57 0.56 EuroPacific Growth Fund 4/16/84-9.77 2.30 3.78 10.46 1.23 0.69 The Growth Fund of America 12/1/73 0.91 11.26 7.08 13.28 0.69 0.51 The New Economy Fund 12/1/83-8.81 10.38 7.89 10.73 0.45 0.66 New Perspective Fund 3/13/73-1.79 7.84 6.82 11.96 1.05 0.63 New World Fund 6/17/99-6.29 0.68 5.23 7.31 0.93 0.90 SMALLCAP World Fund 4/30/90-8.46 6.68 6.34 9.22 0.12 0.93 Growth and Income American Funds Developing World Growth 2/3/14-8.22-2.10 2.16 1.12 and Income Fund SM American Mutual Fund 2/21/50 6.71 11.04 7.46 11.48 2.23 0.46 Capital World Growth and Income Fund 3/26/93-3.28 6.33 5.50 10.27 2.35 0.64 Fundamental Investors 8/1/78 4.49 10.89 7.42 12.22 1.65 0.48 International Growth and Income Fund SM 10/1/08-10.55 1.69 5.93 2.61 0.77 The Investment Company of America 1/1/34 4.83 11.50 6.78 11.96 1.97 0.47 Washington Mutual Investors Fund SM 7/31/52 6.33 11.59 7.09 11.67 2.05 0.46 Equity Income Capital Income Builder 7/30/87 4.01 6.91 5.59 9.30 3.37 0.46 The Income Fund of America 12/1/73 5.56 8.57 6.45 10.98 3.19 0.42 Balanced American Balanced Fund 7/26/75 6.45 9.91 7.26 10.61 1.75 0.46 American Funds Global Balanced Fund SM 2/1/11 2.59 5.99 6.26 2.10 0.72 Bond American Funds Inflation Linked Bond Fund 12/14/12 3.64 0.04 4.59 0.64 American Funds Mortgage Fund 11/1/10 4.24 2.99 2.76 2.09 0.57 American Funds Strategic Bond Fund SM 3/18/16 3.16 3.65 0.94/1.02 American High-Income Trust 2/19/88-1.18 3.85 5.64 7.77 6.72 0.54 The Bond Fund of America 5/28/74 5.55 3.77 3.92 7.73 1.96 0.47 Capital World Bond Fund 8/4/87 6.43 1.82 4.48 6.34 1.79 0.79 Intermediate Bond Fund of America 2/19/88 2.93 1.89 3.03 4.84 1.42 0.47 Short-Term Bond Fund of America 10/2/06 1.18 0.70 1.79 1.16 0.53 U.S. Government Securities Fund 10/17/85 4.82 3.02 4.44 5.83 1.61 0.49 Money Market American Funds U.S. Government Money Market Fund SM 5/1/09 0.00 0.00 0.00 0.00/-0.25 0.08/0.50 Please see important information about risks, fee waivers and expense reimbursements, beginning on page 18. 14

CollegeAmerica Class 529-F-1 Shares 1,3,4 Annualized 30-day SEC Yield at NAV (%)* Expense Ratio (%) (Net/Gross) Inception Average Annual Total Returns (%) Returns as of 6/30/16 Date 1 Year 5 Year 10 Year Fund Lifetime Portfolio Series American Funds Balanced Portfolio SM 5/18/12 2.89 9.71 1.58 0.58 American Funds Global Growth Portfolio SM 5/18/12-4.50 10.46 1.17 0.70 American Funds Growth and Income Portfolio SM 5/18/12 2.54 10.58 1.94 0.57 American Funds Growth Portfolio SM 5/18/12-2.85 12.42 0.74 0.63 American Funds Income Portfolio SM 5/18/12 4.50 7.80 3.26 0.50 American Funds Preservation Portfolio SM 5/18/12 2.76 1.43 1.25 0.52 College Target Date American Funds College 2018 Fund 9/14/12 3.58 4.80 1.47 0.51 American Funds College 2021 Fund 9/14/12 4.56 5.97 1.83 0.50 American Funds College 2024 Fund 9/14/12 3.97 7.00 1.90 0.55 American Funds College 2027 Fund 9/14/12 2.76 7.82 1.76 0.58 American Funds College 2030 Fund 9/14/12 1.27 8.45 1.65 0.61 American Funds College 2033 Fund SM 3/27/15-0.64-0.27 1.71 0.64/0.67 American Funds College Enrollment Fund 9/14/12 2.71 1.28 1.16 0.53 * Two SEC yields are shown for some funds. The first number reflects the fee waiver and/or reimbursement; the second does not. Please see important information about risks, fee waivers and expense reimbursements, beginning on page 18. 15

Rankings shown are based on total returns for Class A shares at net asset value. Rankings do not reflect the effects of sales charges. American Funds Lipper Rankings as of 6/30/16 Lipper Category 1 Year 5 Year 10 Year Growth AMCAP Fund Growth 1258 of 2921 295 of 2193 295 of 1401 EuroPacific Growth Fund International 719 of 1484 318 of 1064 94 of 627 The Growth Fund of America Large-Cap Growth 186 of 679 170 of 548 254 of 395 The New Economy Fund Growth 2661 of 2921 806 of 2193 288 of 1401 New Perspective Fund Global 302 of 962 74 of 592 16 of 317 New World Fund Emerging Markets 149 of 821 28 of 408 26 of 167 SMALLCAP World Fund Global Small-/Mid-Cap 72 of 126 28 of 85 10 of 57 Growth and Income American Funds Developing World Growth Emerging Markets 250 of 821 and Income Fund SM American Mutual Fund Growth & Income 51 of 2447 200 of 1551 101 of 830 Capital World Growth and Income Fund Global 433 of 962 216 of 592 78 of 317 Fundamental Investors Growth & Income 173 of 2447 229 of 1551 109 of 830 International Growth and Income Fund SM International 866 of 1484 452 of 1064 The Investment Company of America Growth & Income 142 of 2447 138 of 1551 207 of 830 Washington Mutual Investors Fund SM Growth & Income 65 of 2447 128 of 1551 152 of 830 Equity Income Capital Income Builder Global Equity Income Funds 40 of 163 13 of 84 3 of 37 The Income Fund of America Income (Mixed Equity) 30 of 590 8 of 461 10 of 279 Balanced American Balanced Fund Balanced 9 of 635 5 of 535 17 of 393 American Funds Global Balanced Fund SM Flexible Portfolio 195 of 1248 286 of 773 Bond American Funds Inflation Linked Bond Fund Inflation Protected Bond 79 of 245 American Funds Mortgage Fund Intermediate U.S. Government 37 of 65 17 of 61 American Funds Strategic Bond Fund SM Multi-Sector Income American High-Income Trust High Yield 482 of 667 361 of 441 217 of 295 The Bond Fund of America Core Bond 179 of 503 194 of 399 246 of 293 Capital World Bond Fund Global Income 54 of 210 82 of 141 44 of 78 Intermediate Bond Fund of America Short-Intermediate Investment-Grade 66 of 188 79 of 112 69 of 87 Debt Short-Term Bond Fund of America Short U.S. Government 27 of 82 35 of 74 U.S. Government Securities Fund General U.S. Government 37 of 101 28 of 93 27 of 74 Tax-Exempt Bond American Funds Short-Term Tax-Exempt Bond Fund Short Municipal Debt 36 of 108 40 of 84 American Funds Tax-Exempt Fund of New York New York Municipal Debt 62 of 97 35 of 85 American High-Income Municipal Bond Fund High-Yield Municipal Debt 78 of 155 28 of 111 16 of 67 Limited Term Tax-Exempt Bond Fund of America Short-Intermediate Municipal Debt 27 of 65 13 of 54 5 of 39 The Tax-Exempt Bond Fund of America General & Insured Municipal Debt 152 of 266 93 of 211 58 of 158 The Tax-Exempt Fund of California California Municipal Debt 101 of 126 55 of 108 37 of 86 Please see important information about risks, fee waivers and expense reimbursements, beginning on page 18. 16

Rankings shown are based on Class A share results at net asset value. Morningstar rankings do not reflect the effects of sales charges, account fees or taxes. American Funds Morningstar Rankings 5 Rankings as of 6/30/16 Morningstar Category Inception Date Rank 1 Year 5 Year 10 Year Funds in Category Peer Group Percentile Rank Funds in Category Peer Group Percentile Rank Funds in Category Peer Group Percentile Growth AMCAP Fund Large Growth 5/1/67 661 1627 41 236 1289 19 344 931 37 EuroPacific Growth Fund Foreign Large Growth 4/16/84 237 355 67 151 275 55 59 189 31 The Growth Fund of America Large Growth 12/1/73 343 1627 21 333 1289 26 545 931 58 The New Economy Fund Large Growth 12/1/83 1522 1627 93 609 1289 47 336 931 36 New Perspective Fund World Stock 3/13/73 317 1131 28 87 731 12 18 409 5 New World Fund Diversified Emerging Mkts 6/17/99 156 856 18 20 416 5 24 186 13 SMALLCAP World Fund World Stock 4/30/90 876 1131 77 211 731 29 42 409 10 Growth and Income American Funds Developing World Growth Diversified Emerging Mkts 2/3/14 273 856 32 and Income Fund SM American Mutual Fund Large Value 2/21/50 156 1368 12 177 1030 17 87 756 12 Capital World Growth and Income Fund World Stock 3/26/93 443 1131 39 250 731 34 106 409 26 Fundamental Investors Large Blend 8/1/78 189 1523 13 515 1206 43 198 895 22 International Growth and Income Fund SM Foreign Large Blend 10/1/08 468 823 57 234 631 37 The Investment Company of America Large Blend 1/1/34 162 1523 11 311 1206 26 417 895 47 Washington Mutual Investors Fund SM Large Value 7/31/52 173 1368 13 109 1030 11 138 756 18 Equity Income Capital Income Builder World Allocation 7/30/87 23 552 4 11 362 3 37 176 21 The Income Fund of America Allocation--70% to 85% 12/1/73 23 451 5 25 310 8 10 234 4 Equity Balanced American Balanced Fund Allocation--50% to 70% 7/26/75 26 895 3 13 704 2 30 479 7 Equity American Funds Global Balanced Fund SM World Allocation 2/1/11 55 552 10 43 362 12 Bond American Funds Inflation Linked Bond Fund Inflation-Protected Bond 12/14/12 84 249 34 American Funds Mortgage Fund Intermediate Government 11/1/10 118 309 38 80 285 28 American Funds Strategic Bond Fund SM Multisector Bond 3/18/16 American High-Income Trust High Yield Bond 2/19/88 551 775 71 437 529 82 273 371 73 The Bond Fund of America Intermediate-Term Bond 5/28/74 297 1061 28 439 836 52 519 603 86 Capital World Bond Fund World Bond 8/4/87 131 364 36 118 253 47 79 152 52 Intermediate Bond Fund of America Short-Term Bond 2/19/88 51 571 9 154 405 38 147 284 52 Short-Term Bond Fund of America Short-Term Bond 10/2/06 403 571 70 362 405 89 U.S. Government Securities Fund Intermediate Government 10/17/85 58 309 19 78 285 27 109 218 50 Tax-Exempt Bond American Funds Short-Term Tax-Exempt Bond Fund Muni National Short 8/7/09 128 214 60 120 175 68 American Funds Tax-Exempt Fund of New York Muni New York Long 11/1/10 57 91 62 34 79 42 American High-Income Municipal Bond Fund High Yield Muni 9/26/94 101 200 50 40 146 27 22 95 23 Limited Term Tax-Exempt Bond Fund of America Muni National Short 10/6/93 40 214 19 12 175 7 8 115 7 The Tax-Exempt Bond Fund of America Muni National Interm 10/3/79 80 333 24 36 266 14 22 177 12 The Tax-Exempt Fund of California Muni California Intermediate 10/28/86 17 78 21 11 72 14 3 57 4 Please see important information about risks, fee waivers and expense reimbursements, beginning on page 18. 17

State-specific tax-exempt funds are more susceptible to factors adversely affecting issuers of their states' tax-exempt securities than more widely diversified municipal bond funds. Income from municipal bonds may be subject to state or local income taxes and/or the federal alternative minimum tax (except for The Tax-Exempt Bond Fund of America). Certain other income, as well as capital gain distributions, may be taxable. Investment allocations for funds of funds may not achieve fund objectives. There are expenses associated with the underlying funds in addition to fund-of-funds expenses. The funds' risks are directly related to the risks of the underlying funds, as described herein. Each target date fund is composed of a mix of American Funds and is subject to the risks and returns of the underlying funds. Underlying funds may be added or removed during the year. Although the target date funds are managed for investors on a projected retirement date time frame, the fund's allocation strategy does not guarantee that investors' retirement goals will be met. The target date is the year in which an investor is assumed to retire and begin taking withdrawals. American Funds investment professionals actively manage the target date fund's portfolio, moving it from a more growth-oriented strategy to a more income-oriented focus as the fund gets closer to its target date. Investment professionals continue to manage each fund for 30 years after it reaches its target date. The target allocations are as of January 1, 2016 and are subject to the Portfolio Oversight Committee's discretion. The funds investment adviser anticipates that the funds will invest their assets within a range that deviates no more than 10% above or below these allocations. Investment professionals gradually adjust the portfolio over time so that it becomes more preservation-oriented. The funds' allocation strategy does not guarantee that investors' education savings goals will be met. The target date is the year in which the beneficiary is expected to begin taking withdrawals. Investors and their advisors should periodically evaluate their investment to determine whether it continues to meet their needs. The Retirement Income Portfolio Series investment allocations may not achieve fund objectives and adequate income through retirement is not guaranteed. There are expenses associated with the underlying funds in addition to fund-of-funds expenses. The funds risks are directly related to the risks of the underlying funds. Payments consisting of return of capital will result in a decrease in an investor s fund share balance. Higher rates of withdrawal and withdrawals during declining markets may result in a more rapid decrease in an investor s fund share balance. Persistent returns of capital could ultimately result in a zero account balance. Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in the prospectus. These risks may be heightened in connection with investments in developing countries. Diversification does not eliminate the risks of investing; losses are possible in diversified portfolios. Small-company stocks entail additional risks, and they can fluctuate in price more than larger company stocks. The use of derivatives involves a variety of risks, which may be different from, or greater than, the risks associated with investing in traditional cash securities, such as stocks and bonds. American Funds Strategic Bond Fund may engage in frequent and active trading of its portfolio securities, which may involve correspondingly greater transaction costs, adversely affecting the fund's results. Fund shares of U.S. Government Securities Fund are not guaranteed by the U.S. government. Although American Funds U.S. Government Money Market Fund has 12b-1 plans for some share classes, the fund is currently suspending certain 12 b-1 payments in this low interest rate environment. Should payments commence, the fund s investment results will be lower and expenses will be higher. American Funds U.S. Government Money Market Fund Class A is the only share class in the American Funds offering check-writing privileges. It is also the only share class that can be exchanged into certain other share classes of other American Funds. Investment results assume all distributions are reinvested and reflect applicable fees and expenses. Lifetime returns for less than one year are not annualized, but calculated as cumulative total returns. For the following funds, the investment adviser is currently reimbursing a portion of the funds' fees or expenses, without which the results would have been lower and net expense ratios higher. - American Funds U.S. Government Money Market Fund is currently reimbursing a portion of the fund's fees and expenses. Please see the Financial Highlights table in the fund's most recent prospectus for details. - American Funds Tax-Exempt Fund of New York is currently reimbursing a portion of its expenses through at least September 30, 2016. - American Funds Strategic Bond Fund is currently reimbursing a portion of other expenses through at least March 1, 2017. - American Funds Retirement Income Portfolio Series funds are currently reimbursing a portion of other expenses for each share class through at least January 1, 2017. - American Funds 2060 Target Date Retirement Fund is currently reimbursing a portion of other expenses for each share class through at least January 1, 2017. - American Funds College 2033 Fund is currently reimbursing a portion of other expenses through at least January 1, 2017. Per the terms for each specific fund and subject to fund board approval, the investment adviser may elect to extend, modify or terminate the waiver and/or reimbursement. Please see each fund's most recent prospectus for details. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. For more information on fee waivers and expense reimbursements, visit americanfunds.com. 1 The Tax-Exempt Money Fund of America (inception date: October 24, 1989) converted to American Funds Short-Term Tax-Exempt Bond Fund on August 7, 2009. Investment results shown do not include the fund's results for the period it operated as The Tax-Exempt Money Fund of America. Results that reflect the operation of the fund as a money market fund prior to its conversion can be found in American Funds Short-Term Tax- Exempt Bond Fund's prospectus. 2 For Intermediate Bond Fund of America and Limited Term Tax-Exempt Bond Fund of America, the maximum initial sales charge was 3.75% from 1 /10/2000 to 10/31/2006. For bond funds, the maximum initial sales charge was 4.75% prior to 1/10/2000. 3 Class C and F-1 shares were first offered on March 15, 2001; Class F-2 shares were first offered on August 1, 2008; Class 529-A and 529-C shares were first offered on February 15, 2002; Class 529 F-1 shares were first offered on September 9, 2002. Class C, F-1, F-2, 529-A, 529-C and 529-F-1 share results prior to the date of first sale are hypothetical based on Class A share results without a sales charge, with Class C, F-1, 529-A, 529-C and 529-F-1 results adjusted for estimated additional annual expenses and Class F-2 results adjusted for typical estimated expenses. Results for certain funds with an inception date after March 15, 2001 for Class C and F-1; after August 1, 2008 for Class F-2; after February 15, 2002 for Class 529-A and 529-C; and after September 9, 2002 for 529-F-1 also include hypothetical returns because those funds' Class C, F-1, F2, 529-A, 529-C and 529-F-1 shares sold after the funds' date of first offering. Class C shares convert to Class F-1 shares after 10 years. Please see americanfunds.com for more information on specific expense adjustments and the actual dates of first sale. 4 Expense ratios are as of the most recent prospectus available at the time of publication. Expense ratios are estimated for Inflation Linked Bond Fund (529 share classes), Strategic Bond Fund, American Funds 2060 Target Date Retirement Fund, American Funds Retirement Income Portfolio Conservative, American Funds Retirement Income Portfolio Moderate and American Funds Retirement Income Portfolio Enhanced. Expense ratios for funds of funds include the weighted average expenses of the underlying funds. 5 Rankings are based on the funds' average annual total returns (Class A shares at net asset value) within the applicable Morningstar categories. The Morningstar rankings do not reflect the effects of sales charges, account fees or taxes. Past results are not predictive of results in future periods. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Please see americanfunds.com for more information. 18

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