497K 1 stbf497k.htm

Short-Term Bond
Fund of America®

Summary prospectus

April 7, 2017
(as supplemented
August 14, 2017)

 

 

 

 
Class A C T F-1 F-2 F-3 529-A 529-C 529-E 529-T
  ASBAX ASBCX TSTBX ASBFX SBFFX FSBTX CAAFX CCAMX CEAMX TTSBX
Class 529-F-1 R-1 R-2 R-2E R-3 R-4 R-5E R-5 R-6  
  CFAMX RAMAX RAMBX RAAEX RAMCX RAMEX RAAGX RAMFX RMMGX  

 

 

Investment objective The fund’s investment objective is to provide you with current income, consistent with the maturity and quality standards described in this prospectus, and preservation of capital.

Fees and expenses of the fund This table describes the fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $500,000 in American Funds. More information about these and other discounts is available from your financial professional and in the “Sales charge reductions and waivers” section on page 31 of the prospectus and on page 65 of the fund’s statement of additional information.

 

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) 2.50% none none 2.50% none none
Maximum deferred sales charge (load) (as a percentage of the amount redeemed) 1.001 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

 

Before you invest, you may want to review the fund’s prospectus and statement of additional information, which contain more information about the fund and its risks. You can find the fund’s prospectus, statement of additional information and other information about the fund online at americanfunds.com/prospectus. You can also get this information at no cost by calling (800) 421-4225 or by sending an email request to prospectus@americanfunds.com. The current prospectus and statement of additional information, each dated April 7, 2017 (and in each case, as supplemented to date), are incorporated by reference into this summary prospectus.

 
 

 

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)
Share class: A C T F-1 F-2 F-3 529-A
Management fees 0.28% 0.28% 0.28% 0.28% 0.28% 0.28% 0.28%
Distribution and/or service (12b-1) fees 0.303 0.99 0.25 0.25 none none 0.243
Other expenses 0.13 0.18 0.172 0.19 0.18 0.072 0.24
Total annual fund operating expenses 0.71 1.45 0.70 0.72 0.46 0.35 0.76

 

Share class: 529-C 529-E 529-T 529-F-1 R-1 R-2 R-2E
Management fees 0.28% 0.28% 0.28% 0.28% 0.28% 0.28% 0.28%
Distribution and/or service (12b-1) fees 0.99 0.49 0.25 0.00 1.00 0.74 0.60
Other expenses 0.24 0.22 0.232 0.24 0.17 0.443 0.343
Total annual fund operating expenses 1.51 0.99 0.76 0.52 1.45 1.46 1.22
Expense reimbursement — — — — — — 0.024
Total annual fund operating expenses after expense reimbursement 1.51 0.99 0.76 0.52 1.45 1.46 1.20

 

Share class: R-3 R-4 R-5E R-5 R-6    
Management fees 0.28% 0.28% 0.28% 0.28% 0.28%    
Distribution and/or service (12b-1) fees 0.50 0.25 none none none    
Other expenses 0.22 0.17  0.30 0.13 0.07    
Total annual fund operating expenses 1.00 0.70 0.58 0.41 0.35    
1A 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.
2Based on estimated amounts for the current fiscal year.
3Restated to reflect current fees.
4The investment adviser is currently reimbursing a portion of the other expenses. This reimbursement will be in effect through at least April 7, 2018. The adviser may elect at its discretion to extend, modify or terminate the reimbursement at that time.

Example This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds.

The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. The example reflects the expense reimbursement described above through the expiration date of such reimbursement and total annual fund operating expenses thereafter. You may be required to pay brokerage commissions on your purchases and sales of Class F-2 or F-3 shares of the fund, which are not reflected in the example. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

 

Share class: A C T F-1 F-2 F-3 529-A 529-C 529-E 529-T 529-F-1 R-1 R-2
1 year $  321 $  248 $   320 $ 74 $ 47 $ 36 $  326 $  254 $  101 $   328 $  53 $  148 $  149
3 years 471 459 468 230 148 113 487 477 315 493 167 459 462
5 years 635 792 630 401 258 197 662 824 547 672 291 792 797
10 years 1,110 1,735 1,099 894 579 443 1,169 1,802 1,213 1,192 653 1,735 1,746

 

Share class: R-2E R-3 R-4 R-5E R-5 R-6 For the share classes listed to the right, you would pay the following if you did not redeem your shares: Share class: C 529-C
1 year $  122 $  102 $ 72 $ 59 $ 42 $ 36 1 year $  148 $  154
3 years 385 318 224 186 132 113 3 years 459 477
5 years 668 552 390 324 230 197 5 years 792 824
10 years 1,476 1,225 871 726 518 443 10 years 1,735 1,802

 

Short-Term Bond Fund of America/Summary prospectus 1

 

Portfolio turnover The fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund’s investment results. During the most recent fiscal year, the fund’s portfolio turnover rate was 301% of the average value of its portfolio.

Principal investment strategies The fund will invest at least 80% of its assets in bonds (bonds include any debt instrument and cash equivalents, and may be represented by other investment instruments, including derivatives). The fund maintains a portfolio of bonds, other debt securities and money market instruments having a dollar-weighted average effective maturity no greater than three years and consisting primarily of debt securities rated AA– or Aa3 or better by Nationally Recognized Statistical Rating Organizations designated by the fund’s investment adviser or unrated but determined to be of equivalent quality by the fund’s investment adviser. The fund may invest up to 10% of its assets in debt securities in the A rating category or in unrated securities determined by the fund’s investment adviser to be of equivalent quality.

The fund primarily invests in debt securities denominated in U.S. dollars, including securities issued and guaranteed by the U.S. government, securities of corporate issuers, mortgage-backed securities and debt securities and mortgage-backed securities issued by government sponsored entities and federal agencies and instrumentalities that are not backed by the full faith and credit of the U.S. government. In addition, the fund may invest in asset-backed securities (securities backed by assets such as auto loans, credit card receivables or other providers of credit).

The fund may invest in inflation linked bonds issued by U.S. and non-U.S. governments, their agencies or instrumentalities, and corporations. Inflation linked bonds are structured to protect against inflation by linking the bond’s principal and interest payments to an inflation index, such as the Consumer Price Index for Urban Consumers, so that principal and interest adjust to reflect changes in the index.

The fund may also invest in certain derivative instruments, such as futures contracts and swaps. A derivative is a financial contract, the value of which is based on the value of an underlying financial asset (such as a stock, bond or currency), a reference rate or a market index. The fund may invest in a derivative only if, in the opinion of the investment adviser, the expected risks and rewards of the proposed investment are consistent with the investment objective and strategies of the fund as disclosed in this prospectus and in the fund’s statement of additional information.

The investment adviser uses a system of multiple portfolio managers in managing the fund’s assets. Under this approach, the portfolio of the fund is divided into segments managed by individual managers who decide how their respective segments will be invested.

The fund relies on the professional judgment of its investment adviser to make decisions about the fund’s portfolio investments. The basic investment philosophy of the investment adviser is to seek to invest in attractively priced securities that, in its opinion, represent good investment opportunities. The investment adviser believes that an important way to accomplish this is by analyzing various factors, which may include the credit strength of the issuer, prices of similar securities issued by comparable issuers,

Short-Term Bond Fund of America/Summary prospectus 2

 

anticipated changes in interest rates, general market conditions and other factors pertinent to the particular security being evaluated. Securities may be sold when the investment adviser believes that they no longer represent relatively attractive investment opportunities.

Principal risks This section describes the principal risks associated with the fund’s principal investment strategies. You may lose money by investing in the fund. The likelihood of loss may be greater if you invest for a shorter period of time.

Market conditions — The prices of, and the income generated by, the securities held by the fund may decline – sometimes rapidly or unpredictably – due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental or governmental agency responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.

Issuer risks — The prices of, and the income generated by, securities held by the fund may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives.

Investing in debt instruments — The prices of, and the income generated by, bonds and other debt securities held by the fund may be affected by changing interest rates and by changes in the effective maturities and credit ratings of these securities.

Rising interest rates will generally cause the prices of bonds and other debt securities to fall. Falling interest rates may cause an issuer to redeem, call or refinance a debt security before its stated maturity, which may result in the fund having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities.

Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer will weaken and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. Lower quality debt securities generally have higher rates of interest and may be subject to greater price fluctuations than higher quality debt securities. Credit risk is gauged, in part, by the credit ratings of the debt securities in which the fund invests. However, ratings are only the opinions of the rating agencies issuing them and are not guarantees as to credit quality or an evaluation of market risk. The fund’s investment adviser relies on its own credit analysts to research issuers and issues in seeking to mitigate various credit and default risks.

Investing in mortgage-related and other asset-backed securities — Mortgage-related securities, such as mortgage-backed securities, and other asset-backed securities, include debt obligations that represent interests in pools of mortgages or other income-bearing assets, such as consumer loans or receivables. Such securities often involve risks that are different from or more acute than the risks associated with investing in other types of debt securities. Mortgage-backed and other asset-backed securities are subject to changes in the payment patterns of borrowers of the underlying debt. When interest rates fall, borrowers are more likely to refinance or prepay their debt before its stated maturity. This may result in the fund having to reinvest the proceeds in lower yielding

Short-Term Bond Fund of America/Summary prospectus 3

 

securities, effectively reducing the fund’s income. Conversely, if interest rates rise and borrowers repay their debt more slowly than expected, the time in which the mortgage-backed and other asset-backed securities are paid off could be extended, reducing the fund’s cash available for reinvestment in higher yielding securities.

Investing in securities backed by the U.S. government — Securities backed by the U.S. Treasury or the full faith and credit of the U.S. government are guaranteed only as to the timely payment of interest and principal when held to maturity. Accordingly, the current market values for these securities will fluctuate with changes in interest rates. Securities issued by government-sponsored entities and federal agencies and instrumentalities that are not backed by the full faith and credit of the U.S. government are neither issued nor guaranteed by the U.S. government.

Liquidity risk — Certain fund holdings may be deemed to be less liquid or illiquid because they cannot be readily sold without significantly impacting the value of the holdings. Liquidity risk may result from the lack of an active market for a holding, legal or contractual restrictions on resale, or the reduced number and capacity of market participants to make a market in such holding. Market prices for less liquid or illiquid holdings may be volatile, and reduced liquidity may have an adverse impact on the market price of such holdings. Additionally, the sale of less liquid or illiquid holdings may involve substantial delays (including delays in settlement) and additional costs and the fund may be unable to sell such holdings when necessary to meet its liquidity needs.

Investing in inflation linked bonds — The values of inflation linked bonds generally fluctuate in response to changes in real interest rates — i.e., rates of interest after factoring in inflation. A rise in real interest rates may cause the prices of inflation linked securities to fall, while a decline in real interest rates may cause the prices to increase. Inflation linked bonds may experience greater losses than other debt securities with similar durations when real interest rates rise faster than nominal interest rates. There can be no assurance that the value of an inflation linked security will be directly correlated to changes in interest rates; for example, if interest rates rise for reasons other than inflation, the increase may not be reflected in the security’s inflation measure.

Investing in inflation linked bonds may also reduce the fund’s distributable income during periods of extreme deflation. If prices for goods and services decline throughout the economy, the principal and income on inflation linked securities may decline and result in losses to the fund.

Investing outside the United States — Securities of issuers domiciled outside the United States, or with significant operations or revenues outside the United States, may lose value because of adverse political, social, economic or market developments (including social instability, regional conflicts, terrorism and war) in the countries or regions in which the issuers operate or generate revenue. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Issuers of these securities may be more susceptible to actions of foreign governments, such as the imposition of price controls or punitive taxes, that could adversely impact the value of these securities. Securities markets in certain countries may be more volatile and/or less liquid than those in the United States. Investments outside the United States may also be subject to different accounting practices and different regulatory, legal and reporting standards and practices, and may be more difficult to value, than those in the United States. In addition, the value of investments outside the United States may be reduced by foreign taxes, including

Short-Term Bond Fund of America/Summary prospectus 4

 

foreign withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased or sold by the fund. The risks of investing outside the United States may be heightened in connection with investments in emerging markets.

Investing in derivatives — 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. Changes in the value of a derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and a derivative instrument may expose the fund to losses in excess of its initial investment. Derivatives may be difficult for the fund to buy or sell at an opportune time or price and may be difficult to terminate or otherwise offset. The fund’s use of derivatives may result in losses to the fund, and investing in derivatives may reduce the fund’s returns and increase the fund’s price volatility. The fund’s counterparty to a derivative transaction (including, if applicable, the fund’s clearing broker, the derivatives exchange or the clearinghouse) may be unable or unwilling to honor its financial obligations in respect of the transaction. A description of the derivative instruments in which the fund may invest and the various risks associated with those derivatives is included in the fund’s statement of additional information under “Description of certain securities, investment techniques and risks.”

Management — The investment adviser to the fund actively manages the fund’s investments. Consequently, the fund is subject to the risk that the methods and analyses employed by the investment adviser in this process may not produce the desired results. This could cause the fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.

Your investment in the fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency, entity or person. You should consider how this fund fits into your overall investment program.

Investment results The following bar chart shows how the fund’s investment results have varied from year to year, and the following table shows how the fund’s average annual total returns for various periods compare with a broad measure of securities market results and other applicable measures of market results. This information provides some indication of the risks of investing in the fund. The Lipper Short U.S. Government Funds Average includes funds that disclose investment objectives and/or strategies reasonably comparable to the objective and/or strategies of the fund. Past investment results (before and after taxes) are not predictive of future investment results. Updated information on the fund’s investment results can be obtained by visiting americanfunds.com.

Short-Term Bond Fund of America/Summary prospectus 5

 

 

Average annual total returns For the periods ended December 31, 2016 (with maximum sales charge):
Share class Inception date 1 year 5 years 10 years Lifetime
A − Before taxes 10/2/2006 –1.47% –0.05% 1.24% 1.31%
− After taxes on distributions   –1.86 –0.36 0.66 N/A
− After taxes on distributions and sale of fund shares –0.83 –0.17 0.74 N/A

 

Share classes (before taxes) Inception date 1 year 5 years 10 years Lifetime
C 11/6/2006 –0.91% –0.40% 0.66% 0.71%
F-1 11/1/2006 0.80 0.32 1.39 1.41
F-2 8/19/2008 1.17 0.62 N/A 1.25
529-A 11/3/2006 –1.55 –0.10 1.17 1.22
529-C 11/3/2006 –1.03 –0.47 0.58 0.62
529-E 12/1/2006 0.55 0.06 1.10 1.10
529-F-1 11/16/2006 1.01 0.52 1.59 1.62
R-1 12/26/2006 –0.03 –0.42 0.64 0.63
R-2 12/8/2006 0.11 –0.40 0.64 0.65
R-2E 8/29/2014 0.48 N/A N/A 0.34
R-3 11/22/2006 0.52 0.03 1.07 1.08
R-4 1/3/2007 0.93 0.36 1.41 1.40
R-5E 11/20/2015 0.94 N/A N/A 0.73
R-5 1/4/2007 1.12 0.66 N/A 1.69
R-6 5/7/2009 1.18 0.69 N/A 0.93

 

Indexes 1 year 5 years 10 years Lifetime
(from Class A inception)
Bloomberg Barclays U.S. Government/Credit 1-3 Years ex BBB Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 1.05% 0.80% 2.32% 2.36%
Lipper Short U.S. Government Funds Average (reflects no deductions for sales charges, account fees or U.S. federal  income taxes) 0.60 0.32 1.68 1.89
Class A annualized 30-day yield at August 31, 2016: 0.87%
(For current yield information, please call American FundsLine® at (800) 325-3590.)		  

 

Short-Term Bond Fund of America/Summary prospectus 6

 

After-tax returns are shown only for Class A shares; after-tax returns for other share classes will vary. After-tax returns are calculated using the highest individual federal income tax rates in effect during each year of the periods shown and do not reflect the impact of state and local taxes. Your actual after-tax returns depend on your individual tax situation and likely will differ from the results shown above. In addition, after-tax returns are not relevant if you hold your fund shares through a tax-favored arrangement, such as a 401(k) plan, individual retirement account (IRA) or 529 college savings plan.

Management

Investment adviser Capital Research and Management CompanySM
Portfolio managers The individuals primarily responsible for the portfolio management of the fund are:

Portfolio manager/
Fund title (if applicable)		 Portfolio
manager
experience
in this fund		 Primary title
with investment adviser
John R. Queen President 6 years Vice President – Capital Fixed Income Investors
Ritchie Tuazon Vice President 3 years Vice President – Capital Fixed Income Investors

 

Purchase and sale of fund shares The minimum amount to establish an account for all share classes is $250 and the minimum to add to an account is $50. For a payroll deduction retirement plan account, payroll deduction savings plan account or employer-sponsored 529 account, the minimum is $25 to establish or add to an account.

If you are a retail investor, you may sell (redeem) shares on any business day through your dealer or financial advisor or by writing to American Funds Service Company® at P.O. Box 6007, Indianapolis, Indiana 46206-6007; telephoning American Funds Service Company at (800) 421-4225; faxing American Funds Service Company at (888) 421-4351; or accessing our website at americanfunds.com. Please contact your plan administrator or recordkeeper to sell (redeem) shares from your retirement plan.

Tax information Dividends and capital gain distributions you receive from the fund are subject to federal income taxes and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-favored.

Payments to broker-dealers and other financial intermediaries If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and the fund’s distributor or its affiliates may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your individual financial advisor to recommend the fund over another investment. Ask your individual financial advisor or visit your financial intermediary’s website for more information.

 

You can access the fund’s statutory prospectus or SAI at americanfunds.com/prospectus.
MFGEIPX-048-0817P
Litho in USA CGD/DFS/9691
Investment Company File No. 811-21928

 

 

 

 

 

THE FUND PROVIDES A SPANISH TRANSLATION OF THE ABOVE SUMMARY PROSPECTUS IN CONNECTION WITH THE PUBLIC OFFERING AND SALE OF ITS SHARES. THE FOLLOWING IS A FAIR AND ACCURATE ENGLISH TRANSLATION OF A SPANISH LANGUAGE SUMMARY PROSPECTUS SUPPLEMENT FOR THE FUND.

 

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

 

 

 

 

Summary Prospectus Supplement
August 14, 2017

 

 

For the following funds with summary 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®

The Tax-Exempt Bond Fund of America®

The Tax-Exempt Fund of California®

U.S. Government Securities Fund®

Washington Mutual Investors FundSM

 

Keep this supplement with your summary prospectus. Each fund’s summary prospectus consists of this supplement and the fund’s summary prospectus, as supplemented to date (which is incorporated herein by reference). For additional information about a fund, you should refer to its prospectus and statement of additional information, in each case as supplemented to date, except where specific information is provided in this supplement, in which case the disclosure provided in this supplement is controlling.

 
1. The first footnote in the “Shareholder fees” table in the “Fees and expenses of the fund” section of the summary prospectus for each of the funds listed on the cover of this supplement (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 summary 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 summary 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 summary prospectus remain unchanged.

 

AMCAP Fund

 

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)

 

Share class:     A     529-A
Management fees     0.30 %     0.30 %
Distribution and/or service (12b-1) fees     0.24 4     0.23 4
Other expenses     0.15       0.25  
Total annual fund operating expenses     0.69       0.78  

 

4 Restated to reflect current fees.

 

Example

 

Share class:   A   529-A
1 year   $ 641     $ 650  
3 years     783       810  
5 years     937       983  
10 years     1,384       1,486  

 

American Balanced Fund

 

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)

 

Share class:   A   529-A
Management fees     0.23 %     0.23 %
Distribution and/or service (12b-1) fees     0.25 3     0.24 3
Other expenses     0.12       0.21  
Total annual fund operating expenses     0.60       0.68  

 

3 Restated to reflect current fees.

 

Example

 

Share class:   A   529-A
1 year   $ 633     $ 640  
3 years     756       780  
5 years     891       932  
10 years     1,282       1,373  

 

American Funds Corporate Bond Fund

 

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)

 

Share class:   A
Management fees     0.46 %
Distribution and/or service (12b-1) fees     0.30 2
Other expenses     0.18  
Total annual fund operating expenses     0.94  
Expense reimbursement4     0.04  
Total annual fund operating expenses after expense reimbursement     0.90  

 

Example

 

Share class:   A
1 year   $ 463  
3 years     659  
5 years     872  
10 years     1,482  

 

Summary Prospectus Supplement 2
 

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)

 

Share class:   529-A
Management fees     0.76 %
Distribution and/or service (12b-1) fees     0.21 3
Other expenses     0.44  
Total annual fund operating expenses     1.41  

 

Example

 

Share class:   529-A
1 year   $ 710  
3 years     996  
5 years     1,302  
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)

 

Share class:   529-A
Management fees     0.57 %
Distribution and/or service (12b-1) fees     0.30 1
Other expenses2     0.42  
Total annual fund operating expenses     1.29  
Expense reimbursement3     0.08  
Total annual fund operating expenses after expense reimbursement     1.21  

 

Example

 

Share class:   529-A
1 year   $ 494  
3 years     761  
5 years     1,048  
10 years     1,865  

 

American Funds Global Balanced Fund

 

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)

 

Share class:   A   529-A
Management fees     0.46 %     0.46 %
Distribution and/or service (12b-1) fees     0.27 3     0.23 3
Other expenses     0.15       0.26  
Total annual fund operating expenses     0.88       0.95  

 

Example

 

Share class:   A   529-A
1 year   $ 660     $ 666  
3 years     840       860  
5 years     1,035       1,070  
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)

 

Share class:   529-A
Management fees     0.33 %
Distribution and/or service (12b-1) fees     0.23 2
Other expenses     0.25 2
Total annual fund operating expenses     0.81  

 

Example

 

Share class:   529-A
1 year   $ 331  
3 years     502  
5 years     688  
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)

 

Share class:   A   529-A
Management fees     0.24 %     0.24 %
Distribution and/or service (12b-1) fees     0.25 3     0.23 3
Other expenses     0.20       0.30  
Total annual fund operating expenses     0.69       0.77  

 

Example

 

Share class:   A   529-A
1 year   $ 443     $ 451  
3 years     587       612  
5 years     745       787  
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)

 

Share class:   A
Management fees     0.30 %
Distribution and/or service (12b-1) fees     0.29 3
Other expenses     0.09  
Total annual fund operating expenses     0.68  

 

3 Restated to reflect current fees.

 

Example

 

Share class:   A
1 year   $ 442  
3 years     584  
5 years     739  
10 years     1,190  

 

American High-Income Trust

 

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)

 

Share class:   A
Management fees     0.29 %
Distribution and/or service (12b-1) fees     0.25 3
Other expenses     0.18  
Total annual fund operating expenses     0.72  

 

Example

 

Share class:   A
1 year   $ 446  
3 years     597  
5 years     761  
10 years     1,236  

 

Summary Prospectus Supplement 3
 

American Mutual Fund

 

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)

 

Share class:   A   529-A
Management fees     0.24 %     0.24 %
Distribution and/or service (12b-1) fees     0.25 3     0.24 3
Other expenses     0.11       0.22  
Total annual fund operating expenses     0.60       0.70  

 

Example

 

Share class:   A   529-A
1 year   $ 633     $ 642  
3 years     756       786  
5 years     891       942  
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)

 

Share class:   A   529-A
Management fees     0.19 %     0.19 %
Distribution and/or service (12b-1) fees     0.25 3     0.24 3
Other expenses     0.18       0.27  
Total annual fund operating expenses     0.62       0.70  

 

Example

 

Share class:   A   529-A
1 year   $ 436     $ 444  
3 years     566       590  
5 years     708       750  
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)

 

Share class:   A   529-A
Management fees     0.23 %     0.23 %
Distribution and/or service (12b-1) fees     0.25 3     0.24 3
Other expenses     0.13       0.24  
Total annual fund operating expenses     0.61       0.71  

 

Example

 

Share class:   A   529-A
1 year   $ 634     $ 643  
3 years     759       789  
5 years     896       947  
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)

 

Share class:   A   529-A
Management fees     0.44 %     0.44 %
Distribution and/or service (12b-1) fees     0.26 3     0.24 3
Other expenses     0.27       0.36  
Total annual fund operating expenses     0.97       1.04  

 

Example

 

Share class:   A   529-A
1 year   $ 470     $ 477  
3 years     672       694  
5 years     891       927  
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)

 

Share class:   A   529-A
Management fees     0.38 %     0.38 %
Distribution and/or service (12b-1) fees     0.25 3     0.23 3
Other expenses     0.17       0.27  
Total annual fund operating expenses     0.80       0.88  

 

Example

 

Share class:   A   529-A
1 year   $ 652     $ 660  
3 years     816       840  
5 years     994       1,035  
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)

 

Share class:   529-A
Management fees     0.42 %
Distribution and/or service (12b-1) fees     0.23 3
Other expenses     0.26  
Total annual fund operating expenses     0.91  

 

3 Restated to reflect current fees.

 

Example

 

Share class:   529-A
1 year   $ 663  
3 years     848  
5 years     1,050  
10 years     1,630  

 

Fundamental Investors

 

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)

 

Share class:   A   529-A
Management fees     0.25 %     0.25 %
Distribution and/or service (12b-1) fees     0.25 3     0.23 3
Other expenses     0.12       0.22  
Total annual fund operating expenses     0.62       0.70  

 

3 Restated to reflect current fees.

 

Example

 

Share class:   A   529-A
1 year   $ 635     $ 642  
3 years     762       786  
5 years     901       942  
10 years     1,305       1,395  

 

Summary Prospectus Supplement 4
 

The Growth Fund of America

 

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)

 

Share class:   529-A
Management fees     0.27 %
Distribution and/or service (12b-1) fees     0.23 3
Other expenses     0.25  
Total annual fund operating expenses     0.75  

 

Example

 

Share class:   529-A
1 year   $ 647  
3 years     801  
5 years     968  
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)

 

Share class:   A   529-A
Management fees     0.22 %     0.22 %
Distribution and/or service (12b-1) fees     0.25 3     0.24 3
Other expenses     0.10       0.21  
Total annual fund operating expenses     0.57       0.67  

 

Example

 

Share class:   A   529-A
1 year   $ 630     $ 640  
3 years     747       777  
5 years     875       927  
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)

 

Share class:   A   529-A
Management fees     0.20 %     0.20 %
Distribution and/or service (12b-1) fees     0.27 3     0.24 3
Other expenses     0.16       0.27  
Total annual fund operating expenses     0.63       0.71  

 

3 Restated to reflect current fees.

 

Example

 

Share class:   A   529-A
1 year   $ 313     $ 321  
3 years     447       471  
5 years     592       635  
10 years     1,017       1,110  

 

International Growth and Income Fund

 

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)

 

Share class:   A   529-A
Management fees     0.49 %     0.49 %
Distribution and/or service (12b-1) fees     0.25 3     0.23 3
Other expenses     0.19       0.29 3
Total annual fund operating expenses     0.93       1.01  

 

Example

 

Share class:   A   529-A
1 year   $ 664     $ 672  
3 years     854       878  
5 years     1,060       1,101  
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)

 

Share class:   A   529-A
Management fees     0.24 %     0.24 %
Distribution and/or service (12b-1) fees     0.24 3     0.23 3
Other expenses     0.12       0.22  
Total annual fund operating expenses     0.60       0.69  

 

3 Restated to reflect current fees.

 

Example

 

Share class:   A   529-A
1 year   $ 633     $ 641  
3 years     756       783  
5 years     891       937  
10 years     1,282       1,384  

 

The New Economy Fund

 

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)

 

Share class:   A   529-A
Management fees     0.39 %     0.39 %
Distribution and/or service (12b-1) fees     0.24 3     0.22 3
Other expenses     0.19       0.29  
Total annual fund operating expenses     0.82       0.90  

 

Example

 

Share class:   A   529-A
1 year   $ 654     $ 662  
3 years     822       845  
5 years     1,004       1,045  
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)

 

Share class:   529-A
Management fees     0.38 %
Distribution and/or service (12b-1) fees     0.23 3
Other expenses     0.26  
Total annual fund operating expenses     0.87  

 

Example

 

Share class:   529-A
1 year   $ 659  
3 years     837  
5 years     1,029  
10 years     1,586  

 

Summary Prospectus Supplement 5
 

New World Fund

 

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)

 

Share class:   A   529-A
Management fees     0.55 %     0.55 %
Distribution and/or service (12b-1) fees     0.24 4     0.22 4
Other expenses     0.29       0.37  
Total annual fund operating expenses     1.08       1.14  

 

Example

 

Share class:   A   529-A
1 year   $ 679     $ 685  
3 years     899       916  
5 years     1,136       1,167  
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)

 

Share class:   A   529-A
Management fees     0.63 %     0.63 %
Distribution and/or service (12b-1) fees     0.25 3     0.23 3
Other expenses     0.23       0.33  
Total annual fund operating expenses     1.11       1.19  

 

Example

 

Share class:   A   529-A
1 year   $ 682     $ 689  
3 years     908       931  
5 years     1,151       1,192  
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)

 

Share class:   A   529-A
Management fees     0.21 %     0.21 %
Distribution and/or service (12b-1) fees     0.27 3     0.23 3
Other expenses     0.17       0.28  
Total annual fund operating expenses     0.65       0.72  

 

3 Restated to reflect current fees.

 

Example

 

Share class:   A   529-A
1 year   $ 439     $ 446  
3 years     575       597  
5 years     724       761  
10 years     1,155       1,236  

 

Washington Mutual Investors Fund

 

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)

 

Share class:   529-A
Management fees     0.24 %
Distribution and/or service (12b-1) fees     0.23 3
Other expenses     0.20  
Total annual fund operating expenses     0.67  

 

3 Restated to reflect current fees.

 

Example

 

Share class:   529-A
1 year   $ 640  
3 years     777  
5 years     927  
10 years     1,362  

 

 

Lit. No. MFGEBS-251-0817P Litho in USA CGD/RRD/10039-S63297 00171098 Summary Prospectus Supplement 6