497 1 stbf497.htm

 

 

Prospectus Supplement

August 14, 2017

 

 

For the following funds with prospectuses dated April 7, 2017–August 1, 2017 (each as supplemented to date)

 

AMCAP Fund®

American Balanced Fund®

American Funds Corporate Bond Fund®

American Funds Developing World Growth and Income FundSM

American Funds Emerging Markets Bond Fund®

American Funds Global Balanced FundSM

American Funds Inflation Linked Bond Fund®

American Funds Mortgage Fund®

American Funds Short-Term Tax-Exempt Bond Fund®

American Funds Strategic Bond FundSM

American Funds Tax-Exempt Fund of New York®

American High-Income Municipal Bond Fund®

American High-Income Trust®

American Mutual Fund®

The Bond Fund of America®

Capital Income Builder®

  

Capital World Bond Fund®

Capital World Growth and Income Fund®

EuroPacific Growth Fund®

Fundamental Investors®

The Growth Fund of America®

The Income Fund of America®

Intermediate Bond Fund of America®

International Growth and Income FundSM

The Investment Company of America®

Limited Term Tax-Exempt Bond Fund of America®

The New Economy Fund®

New Perspective Fund®

New World Fund®

Short-Term Bond Fund of America®

SMALLCAP World Fund,® Inc.

The Tax-Exempt Bond Fund of America®

The Tax-Exempt Fund of California®

U.S. Government Securities Fund®

Washington Mutual Investors FundSM

 

  1. The first footnote in the “Shareholder fees” table in the “Fees and expenses of the fund” section of the prospectus for each of the funds listed above (other than American Funds Emerging Markets Bond Fund) is amended in its entirety to read as follows:

 

A contingent deferred sales charge of 1.00% applies on certain redemptions made within 18 months following purchases of $1 million or more made without an initial sales charge. Contingent deferred sales charge is calculated based on the lesser of the offering price and market value of shares being sold.  

 

 
 

 

  2. The “Fees and expenses of the fund” section of the prospectus for American Funds Emerging Markets Bond Fund is amended by replacing the “Shareholder fees” table in its entirety with the following:
Shareholder fees (fees paid directly from your investment)
Share class: A and
529-A		 C and
529-C		 529-E T and
529-T		 All F and 529-F share classes All R
share
classes
Maximum sales charge (load) imposed on purchases (as a percentage of offering price) 3.75% none none 2.50% none none
Maximum deferred sales charge (load) (as a percentage of the amount redeemed) 1.00* 1.00% none none none none
Maximum sales charge (load) imposed on reinvested dividends none none none none none none
Redemption or exchange fees none none none none none none

*A contingent deferred sales charge of 1.00% applies on certain redemptions made within 18 months following purchases of $1 million or more made without an initial sales charge. Contingent deferred sales charge is calculated based on the lesser of the offering price and market value of shares being sold. 

 

  3. The “Fees and expenses of the fund” section of the prospectus for each of the funds listed below is amended by replacing information on Class A and/or Class 529-A shares in the “Annual fund operating expenses” table and the cumulative estimated expense example table under the heading “Example” with the respective information set forth below. Expense information for all other share classes remains unchanged. Except as indicated below each table, footnotes in the prospectus remain unchanged.

 

AMCAP Fund

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)   Example    
Share class: A 529-A   Share class: A 529-A
Management fees 0.30% 0.30%   1 year $  641 $  650
Distribution and/or service (12b-1) fees 0.244 0.234   3 years 783 810
Other expenses 0.15 0.25   5 years 937 983
Total annual fund operating expenses 0.69 0.78   10 years 1,384 1,486

4 Restated to reflect current fees.

 
 

American Balanced Fund

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)   Example    
Share class: A 529-A   Share class: A 529-A
Management fees 0.23% 0.23%   1 year $  633 $  640
Distribution and/or service (12b-1) fees 0.253 0.243   3 years 756 780
Other expenses 0.12 0.21   5 years 891 932
Total annual fund operating expenses 0.60 0.68   10 years 1,282 1,373

3Restated to reflect current fees.

American Funds Corporate Bond Fund

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)   Example    
Share class: A   Share class: A
Management fees 0.46%   1 year $   463
Distribution and/or service (12b-1) fees 0.302   3 years 659
Other expenses 0.18   5 years 872
Total annual fund operating expenses 0.94   10 years 1,482
Expense reimbursement4 0.04      
Total annual fund operating expenses after expense reimbursement 0.90      

 

American Funds Developing World Growth and Income Fund

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)   Example    
Share class: 529-A   Share class: 529-A
Management fees 0.76%   1 year $   710
Distribution and/or service (12b-1) fees 0.213   3 years 996
Other expenses 0.44   5 years 1,302
Total annual fund operating expenses 1.41   10 years 2,169
             
 
 

 

American Funds Emerging Markets Bond Fund

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)   Example    
Share class: 529-A   Share class: 529-A
Management fees 0.57%   1 year $    494
Distribution and/or service (12b-1) fees 0.301   3 years 761
Other expenses2 0.42   5 years 1,048
Total annual fund operating expenses 1.29   10 years 1,865
Expense reimbursement3 0.08    
Total annual fund operating expenses after expense reimbursement 1.21    

 

American Funds Global Balanced Fund

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)   Example    
Share class: A 529-A   Share class: A 529-A
Management fees 0.46% 0.46%   1 year $   660 $    666
Distribution and/or service (12b-1) fees 0.273 0.233   3 years 840 860
Other expenses 0.15 0.26   5 years 1,035 1,070
Total annual fund operating expenses 0.88 0.95   10 years 1,597 1,674

 

American Funds Inflation Linked Bond Fund

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)   Example  
Share class: 529-A   Share class: 529-A
Management fees 0.33%   1 year $   331
Distribution and/or service (12b-1) fees 0.232   3 years 502
Other expenses 0.252   5 years 688
Total annual fund operating expenses 0.81   10 years 1,227

 

 
 

American Funds Mortgage Fund

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)   Example    
Share class: A 529-A   Share class: A 529-A
Management fees 0.24% 0.24%   1 year $   443 $   451
Distribution and/or service (12b-1) fees 0.253 0.233   3 years 587 612
Other expenses 0.20 0.30   5 years 745 787
Total annual fund operating expenses 0.69 0.77   10 years 1,201 1,293

 

American High-Income Municipal Bond Fund

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)   Example  
Share class: A   Share class: A
Management fees 0.30%   1 year $    442

Distribution and/or service

(12b-1) fees

 0.293   3 years 584
Other expenses 0.09   5 years 739
Total annual fund operating expenses 0.68   10 years 1,190
           

3 Restated to reflect current fees.

 

American High-Income Trust

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)   Example  
Share class: A   Share class: A
Management fees 0.29%   1 year $   446
Distribution and/or service (12b-1) fees 0.253   3 years 597
Other expenses 0.18   5 years 761
Total annual fund operating expenses 0.72   10 years 1,236

 

 
 

 

American Mutual Fund

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)   Example    
Share class: A 529-A   Share class: A 529-A
Management fees 0.24% 0.24%   1 year $   633 $   642
Distribution and/or service (12b-1) fees 0.253 0.243   3 years 756 786
Other expenses 0.11 0.22   5 years 891 942
Total annual fund operating expenses 0.60 0.70   10 years 1,282 1,395

 

The Bond Fund of America

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)   Example    
Share class: A 529-A   Share class: A 529-A
Management fees 0.19% 0.19%   1 year $   436 $   444
Distribution and/or service (12b-1) fees 0.253 0.243   3 years 566 590
Other expenses 0.18 0.27   5 years 708 750
Total annual fund operating expenses 0.62 0.70   10 years 1,120 1,213

 

Capital Income Builder

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)   Example    
Share class: A 529-A   Share class: A 529-A
Management fees 0.23% 0.23%   1 year $  634 $  643
Distribution and/or service (12b-1) fees 0.253 0.243   3 years 759 789
Other expenses 0.13 0.24   5 years 896 947
Total annual fund operating expenses 0.61 0.71   10 years 1,293 1,407

 

 
 

 

Capital World Bond Fund

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)   Example    
Share class: A 529-A   Share class: A 529-A
Management fees 0.44% 0.44%   1 year $   470 $   477
Distribution and/or service (12b-1) fees 0.263 0.243   3 years 672 694
Other expenses 0.27 0.36   5 years 891 927
Total annual fund operating expenses 0.97 1.04   10 years 1,520 1,598

 

Capital World Growth and Income Fund

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)   Example    
Share class: A 529-A   Share class: A 529-A
Management fees 0.38% 0.38%   1 year $  652 $  660
Distribution and/or service (12b-1) fees 0.253 0.233   3 years 816 840
Other expenses 0.17 0.27   5 years 994 1,035
Total annual fund operating expenses 0.80 0.88   10 years 1,508 1,597

 

EuroPacific Growth Fund

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)   Example  
Share class: 529-A   Share class: 529-A
Management fees 0.42%   1 year $    663
Distribution and/or service (12b-1) fees 0.233   3 years 848
Other expenses 0.26   5 years 1,050
Total annual fund operating expenses 0.91   10 years 1,630

3 Restated to reflect current fees.

 

 
 

 

Fundamental Investors

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)   Example    
Share class: A 529-A   Share class: A 529-A
Management fees 0.25% 0.25%   1 year $  635 $  642
Distribution and/or service (12b-1) fees 0.253 0.233   3 years 762 786
Other expenses 0.12 0.22   5 years 901 942
Total annual fund operating expenses 0.62 0.70   10 years 1,305 1,395

3 Restated to reflect current fees.

The Growth Fund of America

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)   Example  
Share class: 529-A   Share class: 529-A
Management fees 0.27%   1 year $  647
Distribution and/or service (12b-1) fees 0.233   3 years 801
Other expenses 0.25   5 years 968
Total annual fund operating expenses 0.75   10 years 1,452

 

The Income Fund of America

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)   Example    
Share class: A 529-A   Share class: A 529-A
Management fees 0.22% 0.22%   1 year $  630 $  640
Distribution and/or service (12b-1) fees 0.253 0.243   3 years 747 777
Other expenses 0.10 0.21   5 years 875 927
Total annual fund operating expenses 0.57 0.67   10 years 1,248 1,362

 

 
 

 

Intermediate Bond Fund of America

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)   Example    
Share class: A 529-A   Share class: A 529-A
Management fees 0.20% 0.20%   1 year $  313 $  321
Distribution and/or service (12b-1) fees 0.273 0.243   3 years 447 471
Other expenses 0.16 0.27   5 years 592 635
Total annual fund operating expenses 0.63 0.71   10 years 1,017 1,110
  3 Restated to reflect current fees.

 

International Growth and Income Fund

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)   Example    
Share class: A 529-A   Share class: A 529-A
Management fees 0.49% 0.49%   1 year $  664 $  672
Distribution and/or service (12b-1) fees 0.253 0.233   3 years 854 878
Other expenses 0.19 0.293   5 years 1,060 1,101
Total annual fund operating expenses 0.93 1.01   10 years 1,652 1,740

 

The Investment Company of America

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)   Example    
Share class: A 529-A   Share class: A 529-A
Management fees 0.24% 0.24%   1 year $  633 $  641
Distribution and/or service (12b-1) fees 0.243 0.233   3 years 756 783
Other expenses 0.12 0.22   5 years 891 937
Total annual fund operating expenses 0.60 0.69   10 years 1,282 1,384
  3 Restated to reflect current fees.

 

 
 

 

The New Economy Fund

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)   Example    
Share class: A 529-A   Share class: A 529-A
Management fees 0.39% 0.39%   1 year $  654 $  662
Distribution and/or service (12b-1) fees 0.243 0.223   3 years 822 845
Other expenses 0.19 0.29   5 years 1,004 1,045
Total annual fund operating expenses 0.82 0.90   10 years 1,530 1,619

 

New Perspective Fund

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)   Example  
Share class: 529-A   Share class: 529-A
Management fees 0.38%   1 year $  659

Distribution and/or service

(12b-1) fees

 0.233   3 years 837
Other expenses 0.26   5 years 1,029
Total annual fund operating expenses 0.87   10 years 1,586

 

New World Fund

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)   Example    
Share class: A 529-A   Share class: A 529-A
Management fees 0.55% 0.55%   1 year $  679 $  685
Distribution and/or service (12b-1) fees 0.244 0.224   3 years 899 916
Other expenses 0.29 0.37   5 years 1,136 1,167
Total annual fund operating expenses 1.08 1.14   10 years 1,816 1,881

 

 
 

 

SMALLCAP World Fund

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)   Example    
Share class: A 529-A   Share class: A 529-A
Management fees 0.63% 0.63%   1 year $    682 $    689
Distribution and/or service (12b-1) fees 0.253 0.233   3 years 908 931
Other expenses 0.23 0.33   5 years 1,151 1,192
Total annual fund operating expenses 1.11 1.19   10 years 1,849 1,935

 

U.S. Government Securities Fund

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)   Example    
Share class: A 529-A   Share class: A 529-A
Management fees 0.21% 0.21%   1 year $  439 $  446
Distribution and/or service (12b-1) fees 0.273 0.233   3 years 575 597
Other expenses 0.17 0.28   5 years 724 761
Total annual fund operating expenses 0.65 0.72   10 years 1,155 1,236

3 Restated to reflect current fees.

 

Washington Mutual Investors Fund

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)   Example  
Share class: 529-A   Share class: 529-A
Management fees 0.24%   1 year $  640
Distribution and/or service (12b-1) fees 0.233   3 years 777
Other expenses 0.20   5 years 927
Total annual fund operating expenses 0.67   10 years 1,362
           

3 Restated to reflect current fees.

 
 

 

  4. The fourth paragraph under the heading “Class A shares” in the “Sales charges” section of the prospectus is amended and restated as follows:

Except as provided below, investments in Class A shares of $1 million or more will be subject to a 1% contingent deferred sales charge if the shares are sold within 18 months of purchase. The contingent deferred sales charge is based on the original purchase cost or the current market value of the shares being sold, whichever is less. Class A shares purchased before August 14, 2017 are subject to a contingent deferred sales charge period of 12 months.

 

 

 

Keep this supplement with your prospectus.

 

 

  

Lit. No. MFGEBS-252-0817P CGD/AFD/10039-S63463 

 

THE FUND MAKES AVAILABLE A SPANISH TRANSLATION OF THE ABOVE PROSPECTUS SUPPLEMENT IN CONNECTION WITH THE PUBLIC OFFERING AND SALE OF ITS SHARES. THE ENGLISH LANGUAGE PROSPECTUS SUPPLEMENT ABOVE IS A FAIR AND ACCURATE REPRESENTATION OF THE SPANISH EQUIVALENT.

 

 

/s/ STEVEN I. KOSZALKA
  STEVEN I. KOSZALKA
  SECRETARY

 

 

Statement of Additional

Information Supplement

August 14, 2017

 

 

 

For the following funds and series with statements of additional information dated April 7, 2017-August 1, 2017 (each as supplemented to date)

 

AMCAP Fund® Capital World Bond Fund®
American Balanced Fund® Capital World Growth and Income Fund®
American Funds College Target Date Series® EuroPacific Growth Fund®
American Funds Corporate Bond Fund® Fundamental Investors®
American Funds Developing World Growth and Income FundSM The Growth Fund of America®
American Funds Emerging Markets Bond Fund® The Income Fund of America®
American Funds Global Balanced FundSM Intermediate Bond Fund of America®
American Funds Inflation Linked Bond Fund® International Growth and Income FundSM
American Funds Mortgage Fund® The Investment Company of America®
American Funds Portfolio SeriesSM Limited Term Tax-Exempt Bond Fund of America®
American Funds Retirement Income Portfolio SeriesSM The New Economy Fund®
American Funds Short-Term Tax-Exempt Bond Fund® New Perspective Fund®
American Funds Strategic Bond FundSM New World Fund®
American Funds Target Date Retirement Series® Short-Term Bond Fund of America®
American Funds Tax-Exempt Fund of New York® SMALLCAP World Fund®
American High-Income Municipal Bond Fund® The Tax-Exempt Bond Fund of America®
American High-Income Trust® The Tax-Exempt Fund of California®
American Mutual Fund® U.S. Government Securities Fund®
The Bond Fund of America® Washington Mutual Investors FundSM
Capital Income Builder®  

 

 

The first paragraph under the heading “Payment of service fees” in the “Management of the fund” section of the statement of additional information is amended and restated as follows:

 

Payment of service fees — For purchases of less than $1 million, payment of service fees to investment dealers generally begins accruing immediately after establishment of an account in Class A, C, 529-A or 529-C shares. For purchases of $1 million or more, payment of service fees to investment dealers generally begins accruing 12 months after establishment of an account in Class A or 529-A shares. Service fees are not paid on certain investments made at net asset value including accounts established by registered representatives and their family members as described in the “Sales charges” section of the prospectus.

 

 

Keep this supplement with your statement of additional information.

 

  

Lit. No. MFGEBS-256-0817O CGD/10149-S63469