UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

Certified Shareholder Report of

Registered Management Investment Companies

Investment Company Act File Number: 811-21928

Short-Term Bond Fund of America

(Exact Name of Registrant as Specified in Charter)

333 South Hope Street

Los Angeles, California 90071

(Address of Principal Executive Offices)

Registrant's telephone number, including area code: (213) 486-9200

Date of fiscal year end: August 31

Date of reporting period: February 28, 2018

Steven I. Koszalka

Short-Term Bond Fund of America

333 South Hope Street

Los Angeles, California 90071

(Name and Address of Agent for Service)

ITEM 1 – Reports to Stockholders

  Short-Term Bond Fund
of America^®   Semi-annual report
for the six months ended
February 28, 2018

Invest with care for
durable outcomes.

Short-Term Bond Fund of America seeks to provide you with current income, consistent with the maturity and quality standards described in the prospectus, and preservation of capital.

This fund is one of more than 40 offered by one of the nation’s largest mutual fund families, American Funds, from Capital Group. For more than 85 years, Capital has invested with a long-term focus based on thorough research and attention to risk.

Fund results shown in this report, unless otherwise indicated, are for Class A shares at net asset value. If a sales charge (maximum 2.50%) had been deducted, the results would have been lower. Results are for past periods and are not predictive of results for 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 current information and month-end results, visit americanfunds.com.

Here are the average annual total returns on a $1,000 investment with all distributions reinvested for periods ended March 31, 2018 (the most recent calendar quarter-end):

Class A shares	1 year	5 years	10 years
Reflecting 2.50% maximum sales charge	–2.54%	–0.13%	0.71%

For other share class results, visit americanfunds.com and americanfundsretirement.com.

The total annual fund operating expense ratio was 0.71% for Class A shares as of the prospectus dated November 1, 2017. The expense ratio is restated to reflect current fees.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers, without which results would have been lower. Visit americanfunds.com for more information.

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. Refer to the fund prospectus and the Risk Factors section of this report for more information on these and other risks associated with investing in the fund.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Fellow investors:

The U.S. Federal Reserve continued tightening monetary policy as the U.S. economy flourished during the first half of Short-Term Bond Fund of America’s fiscal year. For the six months ended February 28, 2018, the fund declined 0.87%.

By comparison, the Bloomberg Barclays U.S. Government/Credit 1–3 Years ex BBB Index — a broad measure of the market in which the fund invests — lost 0.73%. Meanwhile, the Lipper Short U.S. Government Funds Average fell 0.70%. Results for longer time periods are shown in the table below.

Investors who reinvested monthly dividends totaling 5 cents a share earned an income return of 0.54% over the period. For those who took their dividends in cash, the figure was the same. The fund’s share price dropped 14 cents from $9.97 to $9.83.

An environment of rising interest rates poses a challenge for funds that focus on short-term government securities, which may have led some peers to increase their risk appetite to achieve stronger relative results. With market volatility fluctuating, however, managers maintained the fund’s conservative, cautious investment approach that seeks stability over the long term. The fund’s primary goal is to generate a level of income while preserving capital.

Results at a glance

For periods ended February 28, 2018, with all distributions reinvested

	Cumulative total returns						Average annual total returns
	6 months			1 year			3 years			5 years			10 years
Short-Term Bond Fund of America (Class A shares)		–0.87	%		–0.15	%		0.50	%		0.34	%		0.93	%
Bloomberg Barclays U.S. Government/Credit 1–3 Years ex BBB Index*		–0.73			0.02			0.57			0.63			1.40
Lipper Short U.S. Government Funds Average†		–0.70			–0.08			0.22			0.20			1.01

*

Source: Bloomberg Index Services Ltd. The index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

†

Source: Thomson Reuters Lipper. Lipper averages reflect the current composition of all eligible mutual funds (all share classes) within a given category. Lipper categories are dynamic and averages may have few funds, especially over longer periods. To see the number of funds included in the Lipper category for each fund’s lifetime, please see the Quarterly Statistical Update, available on our website.

Short-Term Bond Fund of America 1

Bond market overview

In the latter part of 2017, markets were thriving. Most bond sectors saw positive returns, even as the Fed took its first steps to reduce the size of its balance sheet and approved an additional rate hike in December. Volatility was extremely low, and valuations in both equities and fixed income looked very high.

Some of this can be explained by economic optimism sparked by increasingly synchronized global growth and the fiscal boost provided by the Tax Cuts and Jobs Act passed by Congress in the final weeks of the year. U.S. inflation and wages began to pick up, which is typical after a long period of growth and low unemployment.

However, against this positive economic backdrop, volatility returned in early 2018 when markets began to sense that global central bank tightening could inhibit growth. That led credit to weaken modestly, with the yield differential between corporate bonds and ultra-low-risk U.S. Treasuries widening from the very narrow levels seen as the year began.

Interest rates rose across the Treasury curve, with the biggest increases seen in maturities ranging from one to five years. The yield on the benchmark 10-year Treasury note rose 68 basis points to end the period at 2.87%. Unemployment was extremely low at 4.1% in February.

Inside the portfolio

Rising interest rates were primarily responsible for the losses suffered by the fund and its benchmark. However, the fund lagged its index due to managers having anticipated that the yield curve would steepen, meaning that longer term rates would climb more than shorter term rates. Instead, short-term yields rose more sharply. The fund remains positioned for steepening in an effort to hedge against both enhanced volatility and the possibility that the Fed will fail to raise rates to the extent the market anticipates.

The fund’s duration, its sensitivity to interest rate risk, increased to about 2.2 from 1.0 years. Managers added to the fund’s duration in very short maturity bonds that are less likely to feel an impact from rising rates. To manage duration and curve positioning, the fund used both cash bonds and derivatives, such as interest rate swaps and futures. These financial instruments can provide protection when interest rates move contrary to what managers expect or can express managers’ interest rate expectations in a lower cost manner than buying additional bonds. Derivatives were used primarily to shift interest rate exposure away from longer maturities and toward shorter maturities.

Treasury Inflation-Protected Securities (TIPS) were a positive contributor, as expectations for inflation improved. Exposure to asset-backed securities fell to 12% from near 16%; managers sold holdings that had gained value, seeing little additional upside. They continue to trim the fund’s holdings of mortgage-backed securities, as these bonds tend to do poorly amid rising rates. Managers cut corporate exposure modestly, to 20% from 21%.

2 Short-Term Bond Fund of America

Looking ahead

Strong economic expansion is expected through 2019. However, the fiscal tailwinds created by tax cuts and a bigger federal budget paired with headwinds from tightening monetary policy could keep market volatility elevated in comparison to the historically low level seen in late 2017. This leads managers to be cautious on credit. They maintain a notable allocation to TIPS, due to the potential for additional inflation from factors like stronger wage growth.

As equity markets fluctuate, we believe investors looking for balance should seek fixed income for the diversification and cushion it can provide during times of volatility. Although higher yields led to an uncharacteristic loss over this period, they also tend to provide more income to bond investors, which can help to offset resulting price declines.

Short-Term Bond Fund of America’s chief objective is to preserve capital in times of market volatility. To that end, managers will continue to take proactive steps to guard against potential risks and uncertainties.

Thank you for your support. We look forward to reporting to you again in six months.

Sincerely,

John R. Queen
President

April 13, 2018

For current information about the fund, visit americanfunds.com.

The fund’s 30-day yield for Class A shares as of March 31, 2018, calculated in accordance with the U.S. Securities and Exchange Commission (SEC) formula, was 2.34%. The fund’s 12-month distribution rate for Class A shares as of that date was 1.20%. Both reflect the 2.50% maximum sales charge. The SEC yield reflects the rate at which the fund is earning income on its current portfolio of securities while the distribution rate reflects the fund’s past dividends paid to shareholders. Accordingly, the fund’s SEC yield and distribution rate may differ.

Short-Term Bond Fund of America 3

Summary investment portfolio February 28, 2018 unaudited

Portfolio by type of security Percent of net assets

 

Portfolio quality summary*	Percent of net assets
U.S. Treasury and agency†		38.66	%
AAA/Aaa		26.28
AA/Aa		16.07
A/A		6.36
Unrated		1.57
Short-term securities & other assets less liabilities		11.06

*

Bond ratings, which typically range from AAA/Aaa (highest) to D (lowest), are assigned by credit rating agencies such as Standard & Poor’s, Moody’s and/or Fitch as an indication of an issuer’s creditworthiness. In assigning a credit rating to a security, the fund looks specifically to the ratings assigned to the issuer of the security by Standard & Poor’s, Moody’s and/or Fitch. If agency ratings differ, the security will be considered to have received the highest of those ratings, consistent with the fund’s investment policies. Securities in the “unrated” category (above) have not been rated by a rating agency; however, the investment adviser performs its own credit analysis and assigns comparable ratings that are used for compliance with the fund’s investment policies.

†

These securities are guaranteed by the full faith and credit of the U.S. government.

Bonds, notes & other debt instruments 88.94%	Principal amount (000)		Value (000)
U.S. Treasury bonds & notes 37.92%
U.S. Treasury 26.48%
U.S. Treasury 0.875% 20191	$	50,000	$	49,002
U.S. Treasury 1.25% 2019		48,730		48,238
U.S. Treasury 1.25% 2019		29,805		29,393
U.S. Treasury 1.375% 2019		300,000		296,154
U.S. Treasury 1.375% 2019		70,160		69,380
U.S. Treasury 1.875% 2019		65,000		64,580
U.S. Treasury 1.375% 2020		170,000		165,840
U.S. Treasury 1.50% 2020		194,541		191,000
U.S. Treasury 1.50% 2020		29,470		28,883
U.S. Treasury 1.875% 2020		364,000		358,977
U.S. Treasury 1.125% 2021		30,000		28,870
U.S. Treasury 2.00% 2021		29,620		29,290
U.S. Treasury 1.875% 2022		89,480		86,575

4 Short-Term Bond Fund of America

	Principal amount		Value
	(000)		(000)
U.S. Treasury 1.875% 2022	$	30,230	$	29,297
U.S. Treasury 0.75%–2.63% 2018–2024		114,283		111,845
				1,587,324
U.S. Treasury inflation-protected securities 11.44%
U.S. Treasury Inflation-Protected Security 0.125% 20202		52,637		52,479
U.S. Treasury Inflation-Protected Security 0.125% 20222		239,007		235,284
U.S. Treasury Inflation-Protected Security 0.125% 20222		52,555		51,925
U.S. Treasury Inflation-Protected Security 0.125% 20242		107,044		104,153
U.S. Treasury Inflation-Protected Security 0.25% 20252		54,332		52,867
U.S. Treasury Inflation-Protected Security 0.375% 20252		10,635		10,442
U.S. Treasury Inflation-Protected Security 0.625% 20261,2		31,126		30,955
U.S. Treasury Inflation-Protected Security 0.375% 20272		36,785		35,659
U.S. Treasury Inflation-Protected Security 0.50% 20282		42,364		35,132
U.S. Treasury Inflation-Protected Security 0.875% 20472		50,553		49,157
U.S. Treasury Inflation-Protected Security 1.00% 20482		31,921		27,919
				685,972
Total U.S. Treasury bonds & notes				2,273,296
Corporate bonds & notes 19.92%
Financials 8.21%
Swedbank AB 2.20%–2.80% 2019–20223		18,670		18,424
Other securities				473,748
				492,172
Health care 2.97%
Merck & Co., Inc. (3-month USD-LIBOR + 0.36%) 2.233% 20184		26,200		26,214
Other securities				151,524
				177,738
Energy 2.77%
Chevron Corp. (3-month USD-LIBOR + 0.50%) 2.35% 20184		26,600		26,624
Chevron Corp. 1.686% 2019		30,315		30,092
Chevron Corp. 1.56%–1.99% 2019–2020		23,845		23,604
Exxon Mobil Corp. (3-month USD-LIBOR + 0.15%) 1.738% 20194		31,820		31,869
Other securities				54,135
				166,324
Consumer staples 1.80%
Coca-Cola Co. 1.375% 2019		35,000		34,563
Other securities				73,547
				108,110
Other 4.17%
Other securities				249,968
Total corporate bonds & notes				1,194,312
Asset-backed obligations 12.02%
Cabela’s Master Credit Card Trust, Series 2016-1, Class A1, 1.78% 20225		25,090		24,850
Citibank Credit Card Issuance Trust, Series 2017-A2, Class A2, 1.74% 20215		24,850		24,724
Drivetime Auto Owner Trust, Series 2017-4A, Class A, 1.85% 20203,5		26,391		26,313
Hertz Vehicle Financing LLC, Rental Car Asset-Backed Notes, Series 2013-1A, Class A2, 1.83% 20193,5		40,895		40,818
Other securities				603,853
				720,558

Short-Term Bond Fund of America 5

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)
Bonds & notes of governments & government agencies outside the U.S. 10.55%
European Investment Bank 1.25%–2.25% 2019–2022	$	95,168	$	92,643
European Stability Mechanism 2.125% 20223		58,324		56,602
Inter-American Development Bank 1.00%–2.50% 2019–2023		78,700		77,050
International Bank for Reconstruction and Development 0.88%–1.88% 2018–2022		81,000		79,093
KfW 1.00%–1.50% 2018–2021		83,000		81,815
Sweden (Kingdom of) 1.125% 20193		65,000		63,722
Sweden (Kingdom of) 1.13%–2.38% 2018–20213		21,300		21,119
Other securities				160,186
				632,230
Mortgage-backed obligations 6.39%
Federal agency mortgage-backed obligations 3.85%
Fannie Mae 4.50% 20485,6		25,400		26,517
Fannie Mae 1.65%–6.00% 2019–20484,5,6		52,298		53,720
Government National Mortgage Assn., Series 2012-H20, Class PT, 2.486% 20624,5		30,770		31,067
Government National Mortgage Assn. 2.36%–6.64% 2059–20654,5		33,490		33,924
Other securities				85,414
				230,642
Collateralized mortgage-backed (privately originated) 2.54%
Station Place Securitization Trust, Series 2017-LD1, Class A, (1-month USD-LIBOR + 0.80%) 2.421% 20503,4,5		31,350		31,281
Towd Point Mortgage Trust, Series 2017-5, Class A1, 2.221% 20573,4,5		33,001		33,203
Other securities				88,060
				152,544
Total mortgage-backed obligations				383,186
Municipals 1.40%
Other securities				83,706
Federal agency bonds & notes 0.74%
Fannie Mae 1.00%–2.00% 2019–2022		36,415		35,880
Other securities				8,489
				44,369
Total bonds, notes & other debt instruments (cost: $5,380,588,000)				5,331,657

Short-term securities 11.91%

Bank of Nova Scotia 1.70% due 3/15/20183	25,000	24,984
Chevron Corp. 1.66% due 3/28/20183	42,700	42,648
CPPIB Capital Inc. 1.55% due 3/13/2018–3/23/20183	81,000	80,941
Federal Home Loan Bank 1.32%–1.44% due 3/7/2018–4/27/2018	115,200	115,056
KfW 1.68% due 4/4/20183	75,000	74,883
Mizuho Bank, Ltd. 1.59%–1.99% due 3/23/2018–5/21/20183	68,400	68,262
Province of Alberta 1.54%–1.68% due 3/6/2018–4/2/20183	98,900	98,799
Sanofi 1.70% due 4/16/20183	75,000	74,833
Sumitomo Mitsui Banking Corp. 2.00% due 5/21/20183	25,000	24,885

6 Short-Term Bond Fund of America

	Principal amount (000)		Value (000)
Swedbank AB 1.34% due 3/1/2018	$	53,900	$	53,898
Total Capital Canada Ltd. 1.60% due 3/21/20183		55,000		54,948
Total short-term securities (cost: $714,167,000)				714,137
Total investment securities 100.85% (cost: $6,094,755,000)				6,045,794
Other assets less liabilities (0.85)%				(51,082	)
Net assets 100.00%			$	5,994,712

This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities” includes securities which were valued under fair value procedures adopted by authority of the board of trustees. The total value of securities which were valued under fair value procedures was $25,230,000, which represented .42% of the net assets of the fund.

Futures contracts

Contracts	Type	Number of contracts	Expiration		Notional amount7 (000)			Value at 2/28/20188 (000)		Unrealized (depreciation) appreciation at 2/28/2018 (000)
30 Day Federal Funds Futures	Long	4,011	April 2018	$	1,671,384		$	1,643,639		$	(90	)
20 Year U.S. Treasury Bond Futures	Short	84	June 2018		(8,400	)		(12,049	)		(11	)
10 Year Ultra U.S. Treasury Note Futures	Short	362	June 2018		(36,200	)		(46,359	)		(58	)
10 Year U.S. Treasury Note Futures	Short	409	June 2018		(40,900	)		(49,099	)		72
30 Year Ultra U.S. Treasury Bond Futures	Short	1,591	June 2018		(159,100	)		(247,997	)		(1,247	)
5 Year U.S. Treasury Note Futures	Long	6,523	July 2018		652,300			743,163			(625	)
2 Year U.S. Treasury Note Futures	Short	526	July 2018		(105,200	)		(111,758	)		(1	)
										$	(1,960	)

Swap contracts

Interest rate swaps

Receive	Pay	Expiration date	Notional (000)		Value at 2/28/2018 (000)			Upfront payments/ receipts (000)		Unrealized (depreciation) appreciation at 2/28/2018 (000)
1.8975%	U.S. EFFR	9/26/2018	$	1,957,100	$	—			$       —	$	—
1.886%	U.S. EFFR	9/26/2018		2,240,900		(56	)		—		(56	)
1.882%	U.S. EFFR	9/26/2018		2,241,000		(70	)		—		(70	)
1.8775%	U.S. EFFR	9/26/2018		2,241,000		(85	)		—		(85	)

Short-Term Bond Fund of America 7

Swap contracts (continued)

Interest rate swaps (continued)

Receive	Pay	Expiration date	Notional (000)		Value at 2/28/2018 (000)			Upfront payments/ receipts (000)		Unrealized (depreciation) appreciation at 2/28/2018 (000)
3-month USD-LIBOR	1.209%	3/18/2019	$	100,000	$	1,148			$         —	$	1,148
1.337%	U.S. EFFR	6/8/2019		26,000		(218	)		—		(218	)
1.367%	U.S. EFFR	6/12/2019		13,000		(105	)		—		(105	)
1.362%	U.S. EFFR	6/21/2019		174,500		(1,458	)		—		(1,458	)
1.351%	U.S. EFFR	6/28/2019		174,500		(1,516	)		—		(1,516	)
2.0325%	U.S. EFFR	2/12/2020		50,000		(109	)		—		(109	)
2.013%	U.S. EFFR	2/13/2020		950,000		(2,438	)		—		(2,438	)
2.7435%	3-month USD-LIBOR	2/16/2023		114,000		(23	)		—		(23	)
2.7365%	3-month USD-LIBOR	2/20/2023		114,000		(63	)		—		(63	)
3-month USD-LIBOR	2.2365%	9/2/2025		50		2			—		2
3-month USD-LIBOR	1.743%	2/8/2026		75,000		5,888			—		5,888
3-month USD-LIBOR	1.623%	5/19/2026		30,000		2,709			—		2,709
3-month USD-LIBOR	2.2197%	4/19/2027		82,500		4,308			—		4,308
3-month USD-LIBOR	2.214%	4/19/2027		17,500		922			—		922
3-month USD-LIBOR	2.298%	5/3/2027		25,200		1,160			—		1,160
3-month USD-LIBOR	2.31934%	11/17/2027		61,500		2,929			—		2,929
3-month USD-LIBOR	2.31613%	11/17/2027		57,500		2,754			—		2,754
2.925%	3-month USD-LIBOR	2/1/2028		36,000		(144	)		—		(144	)
2.91%	3-month USD-LIBOR	2/1/2028		45,000		(209	)		—		(209	)
2.908%	3-month USD-LIBOR	2/1/2028		45,000		(212	)		—		(212	)
2.92%	3-month USD-LIBOR	2/2/2028		34,000		(144	)		—		(144	)
3-month USD-LIBOR	2.9625%	2/1/2038		27,100		228			—		228
3-month USD-LIBOR	2.963%	2/1/2038		27,100		227			—		227
3-month USD-LIBOR	2.986%	2/1/2038		21,800		149			—		149
3-month USD-LIBOR	2.967%	2/2/2038		21,000		170			—		170
3-month USD-LIBOR	2.96%	2/15/2048		12,800		(35	)		—		(35	)
3-month USD-LIBOR	3.0135%	2/16/2048		26,000		(360	)		—		(360	)
									$         —	$	15,349

The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.

1	A portion of this security was pledged as collateral. The total value of pledged collateral was $17,223,000, which represented .29% of the net assets of the fund.
2	Index-linked bond whose principal amount moves with a government price index.
3	Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $1,612,422,000, which represented 26.90% of the net assets of the fund.
4	Coupon rate may change periodically.
5	Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.
6	Purchased on a TBA basis.
7	Notional amount is calculated based on the number of contracts and notional contract size.
8	Value is calculated based on the notional amount and current market price.

Key to abbreviations and symbol

EFFR = Federal Funds Effective Rate

LIBOR = London Interbank Offered Rate

TBA = To-be-announced

USD/$ = U.S. dollars

See Notes to Financial Statements

8 Short-Term Bond Fund of America

Financial statements

Statement of assets and liabilities	unaudited
at February 28, 2018	(dollars in thousands)
Assets:
Investment securities in unaffiliated issuers, at value (cost: $6,094,755)			$	6,045,794
Cash				51
Receivables for:
Sales of investments	$	128,488
Sales of fund’s shares		12,738
Variation margin on futures contracts		680
Variation margin on swap contracts		303
Interest		17,642		159,851
				6,205,696
Liabilities:
Payables for:
Purchases of investments		193,738
Repurchases of fund’s shares		10,122
Dividends on fund’s shares		154
Investment advisory services		1,272
Services provided by related parties		1,308
Trustees’ deferred compensation		57
Variation margin on futures contracts		2,318
Variation margin on swap contracts		1,825
Other		190		210,984
Net assets at February 28, 2018			$	5,994,712
Net assets consist of:
Capital paid in on shares of beneficial interest			$	6,076,978
Undistributed net investment income				1,488
Accumulated net realized loss				(48,182	)
Net unrealized depreciation				(35,572	)
Net assets at February 28, 2018			$	5,994,712

See Notes to Financial Statements

Short-Term Bond Fund of America 9

(dollars and shares in thousands, except per-share amounts)

Shares of beneficial interest issued and outstanding (no stated par value) —

unlimited shares authorized (609,873 total shares outstanding)

			Shares		Net asset value
	Net assets		outstanding		per share
Class A	$	2,983,690		303,439	$	9.83
Class C		61,057		6,284		9.72
Class T		10		1		9.83
Class F-1		125,069		12,720		9.83
Class F-2		288,179		29,307		9.83
Class F-3		241,811		24,587		9.83
Class 529-A		365,798		37,202		9.83
Class 529-C		38,771		4,002		9.69
Class 529-E		17,734		1,805		9.82
Class 529-T		10		1		9.83
Class 529-F-1		71,568		7,279		9.83
Class R-1		4,100		422		9.71
Class R-2		43,391		4,471		9.70
Class R-2E		593		60		9.83
Class R-3		51,600		5,254		9.82
Class R-4		34,264		3,485		9.83
Class R-5E		233		24		9.83
Class R-5		10,812		1,099		9.83
Class R-6		1,656,022		168,431		9.83

See Notes to Financial Statements

10 Short-Term Bond Fund of America

Statement of operations	unaudited
for the six months ended February 28, 2018	(dollars in thousands)
Investment income:
Income:
Interest				$	53,040
Fees and expenses*:
Investment advisory services	$	8,184
Distribution services		5,834
Transfer agent services		2,143
Administrative services		866
Reports to shareholders		113
Registration statement and prospectus		336
Trustees’ compensation		24
Auditing and legal		11
Custodian		14
Other		222			17,747
Net investment income					35,293
Net realized loss and unrealized depreciation:
Net realized (loss) gain on:
Investments in unaffiliated issuers		(33,262	)
Futures contracts		(3,254	)
Swap contracts		6,960			(29,556	)
Net unrealized (depreciation) appreciation on:
Investments in unaffiliated issuers		(68,519	)
Futures contracts		(2,124	)
Swap contracts		14,949			(55,694	)
Net realized loss and unrealized depreciation					(85,250	)
Net decrease in net assets resulting from operations				$	(49,957	)

* Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements.

See Notes to Financial Statements

Short-Term Bond Fund of America 11

Statements of changes in net assets

(dollars in thousands)

	Six months ended			Year ended
	February 28,			August 31,
	2018*			2017
Operations:
Net investment income	$	35,293		$	54,924
Net realized loss		(29,556	)		(1,063	)
Net unrealized (depreciation) appreciation		(55,694	)		7,425
Net (decrease) increase in net assets resulting from operations		(49,957	)		61,286
Dividends and distributions paid or accrued to shareholders:
Dividends from net investment income		(34,698	)		(61,789	)
Distributions from net realized gain on investments		—			(1,787	)
Total dividends and distributions paid or accrued to shareholders		(34,698	)		(63,576	)
Net capital share transactions		252,309			423,138
Total increase in net assets		167,654			420,848
Net assets:
Beginning of period		5,827,058			5,406,210
End of period (including undistributed net investment income: $1,488 and $893, respectively)	$	5,994,712		$	5,827,058

*Unaudited.

See Notes to Financial Statements

12 Short-Term Bond Fund of America

Notes to financial statements unaudited

1. Organization

Short-Term Bond Fund of America (the “fund”) is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund seeks to provide current income, consistent with the maturity and quality standards described in the prospectus, and preservation of capital.

The fund has 19 share classes consisting of six retail share classes (Classes A, C, T, F-1, F-2 and F-3), five 529 college savings plan share classes (Classes 529-A, 529-C, 529-E, 529-T and 529-F-1) and eight retirement plan share classes (Classes R-1, R-2, R-2E, R-3, R-4, R-5E, R-5 and R-6). The 529 college savings plan share classes can be used to save for college education. The retirement plan share classes are generally offered only through eligible employer-sponsored retirement plans. The fund’s share classes are described further in the following table:

Share class	Initial sales charge	Contingent deferred sales charge upon redemption	Conversion feature
Classes A and 529-A	Up to 2.50%	None (except 1% for certain redemptions within 18 months of purchase without an initial sales charge)	None
Class C*	None	1% for redemptions within one year of purchase	Class C converts to Class F-1 after 10 years
Class 529-C*	None	1% for redemptions within one year of purchase	Class 529-C converts to Class 529-A after 10 years†
Class 529-E	None	None	None
Classes T and 529-T*	Up to 2.50%	None	None
Classes F-1, F-2, F-3 and 529-F-1	None	None	None
Classes R-1, R-2, R-2E, R-3, R-4, R-5E, R-5 and R-6	None	None	None

*	Class C, T, 529-C and 529-T shares are not available for purchase.
†	Effective December 1, 2017.

Holders of all share classes have equal pro rata rights to the assets, dividends and liquidation proceeds of the fund. Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses (“class-specific fees and expenses”), primarily due to different arrangements for distribution, transfer agent and administrative services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each share class.

Short-Term Bond Fund of America 13

2. Significant accounting policies

The fund is an investment company that applies the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board. The fund’s financial statements have been prepared to comply with U.S. generally accepted accounting principles (“U.S. GAAP”). These principles require the fund’s investment adviser to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. Subsequent events, if any, have been evaluated through the date of issuance in the preparation of the financial statements. The fund follows the significant accounting policies described in this section, as well as the valuation policies described in the next section on valuation.

Security transactions and related investment income — Security transactions are recorded by the fund as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities. In the event a security is purchased with a delayed payment date, the fund will segregate liquid assets sufficient to meet its payment obligations. Interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security.

Class allocations — Income, fees and expenses (other than class-specific fees and expenses) are allocated daily among the various share classes based on the relative value of their settled shares. Realized and unrealized gains and losses are allocated daily among the various share classes based on their relative net assets. Class-specific fees and expenses, such as distribution, transfer agent and administrative services, are charged directly to the respective share class.

Dividends and distributions to shareholders — Dividends to shareholders are declared daily after the determination of the fund’s net investment income and are paid to shareholders monthly. Distributions to shareholders are recorded on the ex-dividend date.

3. Valuation

Capital Research and Management Company (“CRMC”), the fund’s investment adviser, values the fund’s investments at fair value as defined by U.S. GAAP. The net asset value of each share class of the fund is generally determined as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open.

Methods and inputs — The fund’s investment adviser uses the following methods and inputs to establish the fair value of the fund’s assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve.

Fixed-income securities, including short-term securities, are generally valued at prices obtained from one or more pricing vendors. Vendors value such securities based on one

14 Short-Term Bond Fund of America

or more of the inputs described in the following table. The table provides examples of inputs that are commonly relevant for valuing particular classes of fixed-income securities in which the fund is authorized to invest. However, these classifications are not exclusive, and any of the inputs may be used to value any other class of fixed-income security.

Fixed-income class	Examples of standard inputs
All	Benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, spreads and other relationships observed in the markets among comparable securities; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance and other reference data (collectively referred to as “standard inputs”)
Corporate bonds & notes; convertible securities	Standard inputs and underlying equity of the issuer
Bonds & notes of governments & government agencies	Standard inputs and interest rate volatilities
Mortgage-backed; asset-backed obligations	Standard inputs and cash flows, prepayment information, default rates, delinquency and loss assumptions, collateral characteristics, credit enhancements and specific deal information
Municipal securities	Standard inputs and, for certain distressed securities, cash flows or liquidation values using a net present value calculation based on inputs that include, but are not limited to, financial statements and debt contracts

When the fund’s investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or deemed to be not representative), fixed-income securities will be valued in good faith at the mean quoted bid and ask prices that are reasonably and timely available (or bid prices, if ask prices are not available) or at prices for securities of comparable maturity, quality and type. Some securities may be valued based on their effective maturity or average life, which may be shorter than the stated maturity.

Exchange-traded futures are generally valued at the official settlement price of, or the last reported sale price on, the exchange or market on which such instruments are traded, as of the close of business on the day the futures are being valued or, lacking any sales, at the last available bid price. Prices for each future are taken from the exchange or market on which the security trades. Interest rate swaps are generally valued by pricing vendors based on market inputs that include the index and term of index, reset frequency, payer/receiver, currency and pay frequency.

Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the fund’s investment adviser are fair valued as determined in good faith under fair valuation guidelines adopted by authority of the fund’s board of trustees as further described. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission rules and guidance, to consider relevant principles and factors when making fair value determinations. The investment adviser considers relevant indications of value that are reasonably and timely

Short-Term Bond Fund of America 15

available to it in determining the fair value to be assigned to a particular security, such as the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. In addition, the closing prices of equity securities that trade in markets outside U.S. time zones may be adjusted to reflect significant events that occur after the close of local trading but before the net asset value of each share class of the fund is determined. Fair valuations and valuations of investments that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.

Processes and structure — The fund’s board of trustees has delegated authority to the fund’s investment adviser to make fair value determinations, subject to board oversight. The investment adviser has established a Joint Fair Valuation Committee (the “Fair Valuation Committee”) to administer, implement and oversee the fair valuation process, and to make fair value decisions. The Fair Valuation Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser’s valuation teams. The Fair Valuation Committee reviews changes in fair value measurements from period to period and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. The Fair Valuation Committee reports any changes to the fair valuation guidelines to the board of trustees with supplemental information to support the changes. The fund’s board and audit committee also regularly review reports that describe fair value determinations and methods.

The fund’s investment adviser has also established a Fixed-Income Pricing Review Group to administer and oversee the fixed-income valuation process, including the use of fixed-income pricing vendors. This group regularly reviews pricing vendor information and market data. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews, including an annual control self-evaluation program facilitated by the investment adviser’s compliance group.

Classifications — The fund’s investment adviser classifies the fund’s assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Certain securities trading outside the U.S. may transfer between Level 1 and Level 2 due to valuation adjustments resulting from significant market movements following the close of local trading. Level 3 values are based on significant unobservable inputs that reflect the investment adviser’s determination of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are

16 Short-Term Bond Fund of America

reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. The following tables present the fund’s valuation levels as of February 28, 2018 (dollars in thousands):

	Investment securities
	Level 1		Level 2		Level 3		Total
Assets:
Bonds, notes & other debt instruments:
U.S. Treasury bonds & notes	$	—	$	2,273,296	$	—	$	2,273,296
Corporate bonds & notes		—		1,193,412		900		1,194,312
Asset-backed obligations		—		720,558		—		720,558
Bonds & notes of governments & government agencies outside the U.S.		—		632,230		—		632,230
Mortgage-backed obligations		—		383,186		—		383,186
Municipals		—		83,706		—		83,706
Federal agency bonds & notes		—		44,369		—		44,369
Short-term securities		—		714,137		—		714,137
Total	$	—	$	6,044,894	$	900	$	6,045,794

	Other investments*
	Level 1			Level 2			Level 3		Total
Assets:
Unrealized appreciation on futures contracts	$	72		$	—		$	—	$	72
Unrealized appreciation on interest rate swaps		—			22,594			—		22,594
Liabilities:
Unrealized depreciation on futures contracts		(2,032	)		—			—		(2,032	)
Unrealized depreciation on interest rate swaps		—			(7,245	)		—		(7,245	)
Total	$	(1,960	)	$	15,349		$	—	$	13,389

* Futures contracts and interest rate swaps are not included in the investment portfolio.

4. Risk factors

Investing in the fund may involve certain risks including, but not limited to, those described below.

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.

Short-Term Bond Fund of America 17

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 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.

18 Short-Term Bond Fund of America

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 U.S. — Securities of issuers domiciled outside the U.S., or with significant operations or revenues outside the U.S., 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 U.S. Investments outside the U.S. 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 U.S. In addition, the value of investments outside the U.S. may be reduced by foreign taxes, including 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 U.S. may be heightened in connection with investments in emerging markets.

Short-Term Bond Fund of America 19

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.

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.

5. Certain investment techniques

Index-linked bonds — The fund has invested in index-linked bonds, which are fixed-income securities whose principal value is periodically adjusted to a government price index. Over the life of an index-linked bond, interest is paid on the adjusted principal value. Increases or decreases in the principal value of index-linked bonds are recorded as interest income in the fund’s statement of operations.

Mortgage dollar rolls — The fund has entered into mortgage dollar roll transactions in which the fund sells a mortgage-backed security to a counterparty and simultaneously enters into an agreement with the same counterparty to buy back a similar security on a specific future date at a predetermined price. Mortgage dollar rolls are accounted for as purchase and sale transactions. Portfolio turnover rates excluding and including mortgage dollar rolls are presented at the end of the fund’s financial highlights table.

Futures contracts — The fund has entered into futures contracts, which provide for the future sale by one party and purchase by another party of a specified amount of a specific financial instrument for a specified price, date, time and place designated at the time the contract is made. Futures contracts are used to strategically manage the fund’s interest rate sensitivity by increasing or decreasing the duration of the fund or a portion of the fund’s portfolio.

Upon entering into futures contracts, and to maintain the fund’s open positions in futures contracts, the fund is required to deposit with a futures broker, or FCM, in a segregated account in the name of the FCM an amount of cash, U.S. government securities, suitable money market instruments, or other liquid securities, known as initial margin. The margin required for a particular futures contract is set by the exchange on which the contract is

20 Short-Term Bond Fund of America

traded to serve as collateral, and may be significantly modified from time to time by the exchange during the term of the contract. When initial margin is deposited with brokers, a receivable is recorded in the fund’s statement of assets and liabilities.

On a daily basis, the fund pays or receives variation margin based on the increase or decrease in the value of the futures contracts and records variation margin on futures contracts in the statement of assets and liabilities. In addition, the fund segregates liquid assets equivalent to the fund’s outstanding obligations under the contract in excess of the initial margin and variation margin, if any. Futures contracts may involve a risk of loss in excess of the variation margin shown on the fund’s statement of assets and liabilities. The fund records realized gains or losses at the time the futures contract is closed or expires. Net realized gains or losses and net unrealized appreciation or depreciation from futures contracts are recorded in the fund’s statement of operations. The average month-end notional amount of futures contracts while held was $2,284,138,000.

Interest rate swaps — The fund has entered into interest rate swap contracts, which are agreements to exchange one stream of future interest payments for another based on a specified notional amount. Typically, interest rate swaps exchange a fixed interest rate for a payment that floats relative to a benchmark or vice versa. The fund’s investment adviser uses interest rate swaps to seek to manage the interest rate sensitivity of the fund by increasing or decreasing the duration of the fund or a portion of the fund’s portfolio. Risks may arise as a result of the fund’s investment adviser incorrectly anticipating changes in interest rates, increased volatility, reduced liquidity and the potential inability of counterparties to meet the terms of their agreements.

Upon entering into an interest rate swap contract, the fund is required to deposit cash, U.S. government securities or other liquid securities, which is known as “initial margin.” Generally, the initial margin required for a particular interest rate swap is set and held as collateral by the clearinghouse on which the contract is cleared. The amount of initial margin required may be significantly modified from time to time by the clearinghouse during the term of the contract.

On a daily basis, the fund’s investment adviser records daily interest accruals related to the exchange of future payments as a receivable and payable in the fund’s statement of assets and liabilities. The fund also pays or receives a “variation margin” based on the increase or decrease in the value of the interest rate swaps, including accrued interest, and records variation margin on interest rate swaps in the statement of assets and liabilities. The fund records realized gains and losses on both the net accrued interest and any gain or loss recognized at the time the interest rate swap is closed or expires. Net realized gains or losses, as well as any net unrealized appreciation or depreciation, from interest rate swaps are recorded in the fund’s statement of operations. The average month-end notional amount of interest rate swaps while held was $16,574,083,000.

Short-Term Bond Fund of America 21

The following tables present the financial statement impacts resulting from the fund’s use of futures contracts and interest rate swaps as of, or for the six months ended, February 28, 2018 (dollars in thousands):

		Assets			Liabilities
Contracts	Risk type	Location on statement of assets and liabilities	Value		Location on statement of assets and liabilities	Value
Futures	Interest	Net unrealized appreciation*	$	72	Net unrealized depreciation*	$	2,032
Swaps	Interest	Net unrealized appreciation*		22,594	Net unrealized depreciation*		7,245
			$	22,666		$	9,277

		Net realized (loss) gain				Net unrealized (depreciation) appreciation
Contracts	Risk type	Location on statement of operations	Value			Location on statement of operations	Value
Futures	Interest	Net realized loss on futures contracts	$	(3,254	)	Net unrealized depreciation on futures contracts	$	(2,124	)
Swaps	Interest	Net realized gain on swap contracts		6,960		Net unrealized appreciation on swap contracts		14,949
			$	3,706			$	12,825

* Includes cumulative appreciation/depreciation on futures contracts and interest rate swaps as reported in the applicable tables following the fund’s investment portfolio. Only current day’s variation margin is reported within the statement of assets and liabilities.

Collateral — The fund participates in a collateral program that calls for the fund to either receive or pledge highly liquid assets, such as cash or U.S. Treasury bills, as collateral due to its use of futures contracts, interest rate swaps and future delivery contracts. For futures contracts and interest rate swaps, the program calls for the fund to pledge collateral for initial and variation margin by contract. For future delivery contracts, the program calls for the fund to either receive or pledge collateral based on the net gain or loss on unsettled contracts by certain counterparties. The purpose of the collateral is to cover potential losses that could occur in the event that either party cannot meet its contractual obligation.

6. Taxation and distributions

Federal income taxation — The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income and net capital gains each year. The fund is not subject to income taxes to the extent such distributions are made. Therefore, no federal income tax provision is required.

22 Short-Term Bond Fund of America

As of and during the period ended February 28, 2018, the fund did not have a liability for any unrecognized tax benefits. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statement of operations. During the period, the fund did not incur any significant interest or penalties.

The fund’s tax returns are not subject to examination by federal, state and, if applicable, non-U.S. tax authorities after the expiration of each jurisdiction’s statute of limitations, which is generally three years after the date of filing but can be extended in certain jurisdictions.

Distributions — Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to different treatment for items such as short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase; cost of investments sold; paydowns on fixed-income securities and income on certain investments. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the fund for financial reporting purposes.

The components of distributable earnings on a tax basis are reported as of the fund’s most recent year-end. As of August 31, 2017, the components of distributable earnings on a tax basis were as follows (dollars in thousands):

Undistributed ordinary income	$	988
Post-October capital loss deferral*		(12,589	)

* This deferral is considered incurred in the subsequent year.

As of February 28, 2018, the tax basis unrealized appreciation (depreciation) and cost of investments were as follows (dollars in thousands):

Gross unrealized appreciation on investments	$	27,045
Gross unrealized depreciation on investments		(63,053	)
Net unrealized depreciation on investments		(36,008	)
Cost of investments		6,095,191

Short-Term Bond Fund of America 23

Tax distributions paid or accrued to shareholders from ordinary income were as follows (dollars in thousands):

	Six months ended			Year ended
	February 28,			August 31,
Share class	2018			2017
Class A	$	16,540		$	33,951
Class B1					3
Class C		110			255
Class T2		—	3		—	3
Class F-1		688			1,336
Class F-2		1,935			4,511
Class F-34		1,611			1,364
Class 529-A		1,783			3,278
Class 529-B1					—	3
Class 529-C		86			198
Class 529-E		71			127
Class 529-T2		—	3		—	3
Class 529-F-1		431			747
Class R-1		7			14
Class R-2		76			145
Class R-2E		2			3
Class R-3		204			399
Class R-4		195			343
Class R-5E		1			—	3
Class R-5		76			143
Class R-6		10,882			16,759
Total	$	34,698		$	63,576

1	Class B and 529-B shares were fully liquidated on May 5, 2017.
2	Class T and 529-T shares began investment operations on April 7, 2017.
3	Amount less than one thousand.
4	Class F-3 shares began investment operations on January 27, 2017.

7. Fees and transactions with related parties

CRMC, the fund’s investment adviser, is the parent company of American Funds Distributors,^® Inc. (“AFD”), the principal underwriter of the fund’s shares, and American Funds Service Company^® (“AFS”), the fund’s transfer agent. CRMC, AFD and AFS are considered related parties to the fund.

Investment advisory services — The fund has an investment advisory and service agreement with CRMC that provides for monthly fees accrued daily. These fees are based on a series of decreasing annual rates beginning with 0.360% on the first $500 million of daily net assets and decreasing to 0.250% on such assets in excess of $4 billion. For the six months ended February 28, 2018, the investment advisory services fee was $8,184,000, which was equivalent to an annualized rate of 0.278% of average daily net assets.

24 Short-Term Bond Fund of America

Class-specific fees and expenses — Expenses that are specific to individual share classes are accrued directly to the respective share class. The principal class-specific fees and expenses are further described below:

Distribution services — The fund has plans of distribution for all share classes, except Class F-2, F-3, R-5E, R-5 and R-6 shares. Under the plans, the board of trustees approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares and service existing accounts. The plans provide for payments, based on an annualized percentage of average daily net assets, ranging from 0.30% to 1.00% as noted in this section. In some cases, the board of trustees has limited the amounts that may be paid to less than the maximum allowed by the plans. All share classes with a plan may use up to 0.25% of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.

Share class	Currently approved limits			Plan limits
Class A		0.30	%		0.30	%
Class 529-A		0.50			0.50
Classes C, 529-C and R-1		1.00			1.00
Class R-2		0.75			1.00
Class R-2E		0.60			0.85
Classes 529-E and R-3		0.50			0.75
Classes T, F-1, 529-T, 529-F-1 and R-4		0.25			0.50

For Class A and 529-A shares, distribution-related expenses include the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. These share classes reimburse AFD for amounts billed within the prior 15 months but only to the extent that the overall annual expense limits are not exceeded. As of February 28, 2018, there were no unreimbursed expenses subject to reimbursement for Class A or 529-A shares.

Transfer agent services — The fund has a shareholder services agreement with AFS under which the fund compensates AFS for providing transfer agent services to each of the fund’s share classes. These services include recordkeeping, shareholder communications and transaction processing. In addition, the fund reimburses AFS for amounts paid to third parties for performing transfer agent services on behalf of fund shareholders.

Administrative services — The fund has an administrative services agreement with CRMC under which the fund compensates CRMC for providing administrative services to Class A, C, T, F, 529 and R shares. These services include, but are not limited to, coordinating, monitoring, assisting and overseeing third parties that

Short-Term Bond Fund of America 25

provide services to fund shareholders. Under the agreement, Class A shares pay an annual fee of 0.01% of average daily net assets and Class C, T, F, 529 and R shares pay an annual fee of 0.05% of their respective average daily net assets.

529 plan services — Each 529 share class is subject to service fees to compensate the Virginia College Savings Plan (“Virginia529”) for its oversight and administration of the 529 college savings plan. The quarterly fee is based on a series of decreasing annual rates beginning with 0.10% on the first $20 billion of the net assets invested in the Class 529 shares of the American Funds and decreasing to 0.03% on such assets in excess of $100 billion. The fee for any given calendar quarter is accrued and calculated on the basis of the average net assets of Class 529 shares of the American Funds for the last month of the prior calendar quarter. The fee is included in other expenses in the fund’s statement of operations. Virginia529 is not considered a related party to the fund.

For the six months ended February 28, 2018, class-specific expenses under the agreements were as follows (dollars in thousands):

	Distribution		Transfer agent			Administrative			529 plan
Share class	services		services			services			services
Class A		$4,309		$1,479			$152			Not applicable
Class C		311		31			16			Not applicable
Class T		—		—	*		—	*		Not applicable
Class F-1		164		87			33			Not applicable
Class F-2		Not applicable		164			73			Not applicable
Class F-3		Not applicable		26			57			Not applicable
Class 529-A		384		148			85			$113
Class 529-C		262		26			13			18
Class 529-E		43		5			4			6
Class 529-T		—		—	*		—	*		—	*
Class 529-F-1		—		29			17			22
Class R-1		21		2			1			Not applicable
Class R-2		162		80			11			Not applicable
Class R-2E		2		1			—	*		Not applicable
Class R-3		131		42			13			Not applicable
Class R-4		45		18			9			Not applicable
Class R-5E		Not applicable		—	*		—	*		Not applicable
Class R-5		Not applicable		4			3			Not applicable
Class R-6		Not applicable		1			379			Not applicable
Total class-specific expenses		$5,834		$2,143			$866			$159

* Amount less than one thousand.

Trustees’ deferred compensation — Trustees who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund or other American Funds. These amounts represent general, unsecured liabilities of the fund

26 Short-Term Bond Fund of America

and vary according to the total returns of the selected funds. Trustees’ compensation of $24,000 in the fund’s statement of operations reflects $19,000 in current fees (either paid in cash or deferred) and a net increase of $5,000 in the value of the deferred amounts.

Affiliated officers and trustees — Officers and certain trustees of the fund are or may be considered to be affiliated with CRMC, AFD and AFS. No affiliated officers or trustees received any compensation directly from the fund.

Security transactions with related funds — The fund may purchase from, or sell securities to, other funds managed by CRMC (or funds managed by certain affiliates of CRMC) under procedures adopted by the fund’s board of trustees. The funds involved in such transactions are considered related by virtue of having a common investment adviser (or affiliated investment advisers), common trustees and/or common officers. When such transactions occur, each transaction is executed at the current market price of the security and no brokerage commissions or fees are paid in accordance with Rule 17a-7 of the 1940 Act.

Interfund lending — Pursuant to an exemptive order issued by the SEC, the fund, along with other CRMC-managed funds (or funds managed by certain affiliates of CRMC), may participate in an interfund lending program. The program provides an alternate credit facility that permits the funds to lend or borrow cash for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. The fund did not lend or borrow cash through the interfund lending program at any time during the six months ended February 28, 2018.

Short-Term Bond Fund of America 27

8. Capital share transactions

Capital share transactions in the fund were as follows (dollars and shares in thousands):

					Reinvestments of												Net (decrease)
	Sales				dividends						Repurchases						increase
Share class	Amount		Shares		Amount			Shares			Amount			Shares			Amount			Shares
Six months ended February 28, 2018
Class A	$	557,740		56,296	$	16,214			1,639		$	(648,654	)		(65,492	)	$	(74,700	)		(7,557	)
Class C		13,910		1,424		108			11			(20,119	)		(2,055	)		(6,101	)		(620	)
Class T		—		—		—			—			—			—			—			—
Class F-1		18,958		1,912		674			68			(28,699	)		(2,897	)		(9,067	)		(917	)
Class F-2		133,863		13,503		1,844			186			(148,627	)		(14,990	)		(12,920	)		(1,301	)
Class F-3		94,505		9,524		1,432			145			(61,987	)		(6,248	)		33,950			3,421
Class 529-A		103,178		10,416		1,768			179			(54,711	)		(5,524	)		50,235			5,071
Class 529-C		12,822		1,313		85			9			(38,231	)		(3,917	)		(25,324	)		(2,595	)
Class 529-E		4,190		423		70			7			(2,978	)		(301	)		1,282			129
Class 529-T		—		—		—	2		—	2		—			—			—	2		—	2
Class 529-F-1		15,833		1,599		429			43			(8,915	)		(900	)		7,347			742
Class R-1		442		45		7			—	2		(709	)		(72	)		(260	)		(27	)
Class R-2		8,759		895		75			8			(9,860	)		(1,008	)		(1,026	)		(105	)
Class R-2E		9		1		2			—	2		(6	)		(1	)		5			—	2
Class R-3		9,082		917		201			20			(11,780	)		(1,189	)		(2,497	)		(252	)
Class R-4		8,206		827		192			20			(10,882	)		(1,098	)		(2,484	)		(251	)
Class R-5E		558		57		1			—	2		(333	)		(34	)		226			23
Class R-5		2,053		207		76			7			(2,375	)		(240	)		(246	)		(26	)
Class R-6		352,406		35,558		10,882			1,100			(69,399	)		(7,014	)		293,889			29,644
Total net increase (decrease)	$	1,336,514		134,917	$	34,060			3,442		$	(1,118,265	)		(112,980	)	$	252,309			25,379

28 Short-Term Bond Fund of America

	Sales1					Reinvestments of dividends and distributions						Repurchases1						Net (decrease) increase
Share class	Amount			Shares		Amount			Shares			Amount			Shares			Amount			Shares
Year ended August 31, 2017
Class A	$	1,342,889			134,879	$	33,217			3,336		$	(1,406,317	)		(141,286	)	$	(30,211	)		(3,071	)
Class B3		218			22		2			—	2		(2,889	)		(292	)		(2,669	)		(270	)
Class C		28,348			2,878		250			26			(55,211	)		(5,611	)		(26,613	)		(2,707	)
Class T4		10			1		—			—			—			—			10			1
Class F-1		57,128			5,739		1,313			132			(65,364	)		(6,568	)		(6,923	)		(697	)
Class F-2		374,577			37,633		3,983			400			(468,558	)		(47,097	)		(89,998	)		(9,064	)
Class F-35		299,502			30,092		1,135			114			(90,034	)		(9,040	)		210,603			21,166
Class 529-A		110,487			11,097		3,262			327			(95,714	)		(9,618	)		18,035			1,806
Class 529-B3		23			2		—	2		—	2		(593	)		(60	)		(570	)		(58	)
Class 529-C		22,244			2,267		198			20			(25,407	)		(2,590	)		(2,965	)		(303	)
Class 529-E		5,505			553		127			13			(6,084	)		(612	)		(452	)		(46	)
Class 529-T4		10			1		—	2		—	2		—			—			10			1
Class 529-F-1		25,086			2,521		744			75			(16,400	)		(1,649	)		9,430			947
Class R-1		1,564			159		14			2			(1,985	)		(202	)		(407	)		(41	)
Class R-2		17,211			1,750		144			14			(18,822	)		(1,915	)		(1,467	)		(151	)
Class R-2E		629			63		3			1			(267	)		(27	)		365			37
Class R-3		24,458			2,459		394			40			(24,613	)		(2,475	)		239			24
Class R-4		20,186			2,029		341			34			(10,232	)		(1,028	)		10,295			1,035
Class R-5E		—	2		—		—			—			—	2		—			—			—
Class R-5		6,649			667		143			15			(4,633	)		(466	)		2,159			216
Class R-6		408,172			40,983		16,757			1,683			(90,662	)		(9,117	)		334,267			33,549
Total net increase (decrease)	$	2,744,896			275,795	$	62,027			6,232		$	(2,383,785	)		(239,653	)	$	423,138			42,374

1	Includes exchanges between share classes of the fund.
2	Amount less than one thousand.
3	Class B and 529-B shares were fully liquidated on May 5, 2017.
4	Class T and 529-T shares began investment operations on April 7, 2017.
5	Class F-3 shares began investment operations on January 27, 2017.

9. Investment transactions

The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $1,414,986,000 and $3,150,862,000, respectively, during the six months ended February 28, 2018.

Short-Term Bond Fund of America 29

Financial highlights

			(Loss) income from investment operations1
Period ended	Net asset value, beginning of period		Net investment income (loss)			Net (losses) gains on securities (both realized and unrealized)			Total from investment operations
Class A:
2/28/20184,5	$	9.97	$	.05		$	(.14	)	$	(.09	)
8/31/2017		9.98		.09			—	8		.09
8/31/2016		9.97		.07			.04			.11
8/31/2015		10.00		.07			(.02	)		.05
8/31/2014		9.95		.05			.04			.09
8/31/2013		10.10		.05			(.13	)		(.08	)
Class C:
2/28/20184,5		9.86		.02			(.14	)		(.12	)
8/31/2017		9.87		.01			.01			.02
8/31/2016		9.88		(.02	)		.04			.02
8/31/2015		9.94		(.01	)		(.02	)		(.03	)
8/31/2014		9.93		(.03	)		.04			.01
8/31/2013		10.10		(.03	)		(.14	)		(.17	)
Class T:
2/28/20184,5		9.98		.07			(.15	)		(.08	)
8/31/20174,11		9.95		.05			.04			.09
Class F-1:
2/28/20184,5		9.97		.05			(.14	)		(.09	)
8/31/2017		9.98		.08			.01			.09
8/31/2016		9.97		.06			.04			.10
8/31/2015		10.00		.06			(.02	)		.04
8/31/2014		9.95		.04			.04			.08
8/31/2013		10.10		.04			(.14	)		(.10	)
Class F-2:
2/28/20184,5		9.97		.07			(.15	)		(.08	)
8/31/2017		9.98		.11			—	8		.11
8/31/2016		9.97		.08			.04			.12
8/31/2015		10.00		.09			(.02	)		.07
8/31/2014		9.95		.07			.04			.11
8/31/2013		10.10		.07			(.14	)		(.07	)
Class F-3:
2/28/20184,5		9.98		.07			(.15	)		(.08	)
8/31/20174,12		9.94		.08			.05			.13

30 Short-Term Bond Fund of America

Dividends and distributions
Dividends (from net investment income)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return2,3			Net assets, end of period (in millions)			Ratio of expenses to average net assets before reimburse- ments			Ratio of expenses to average net assets after reimburse- ments3			Ratio of net income (loss) to average net assets3
$	(.05	)	$	—		$	(.05	)	$	9.83		(.87	)%6	$	2,984			.69	%7		.69	%7		1.11	%7
	(.10	)		—	8		(.10	)		9.97		.98			3,102			.64			.64			.93
	(.08	)		(.02	)		(.10	)		9.98		1.07			3,133			.62			.62			.67
	(.07	)		(.01	)		(.08	)		9.97		.49			2,970			.60			.60			.72
	(.04	)		—			(.04	)		10.00		.93			3,016			.59			.59			.55
	(.07	)		—			(.07	)		9.95		(.82	)		3,124			.60			.60			.51
	(.02	)		—			(.02	)		9.72		(1.25	)6		61			1.44	7		1.44	7		.36	7
	(.03	)		—	8		(.03	)		9.86		.22			68			1.45			1.45			.11
	(.01	)		(.02	)		(.03	)		9.87		.22			95			1.45			1.45			(.17	)
	(.02	)		(.01	)		(.03	)		9.88		(.36	)		104			1.44			1.44			(.14	)
	—	8		—			—	8		9.94		.11			115			1.45			1.45			(.31	)
	—	8		—			—	8		9.93		(1.67	)		143			1.45			1.45			(.34	)
	(.07	)		—			(.07	)		9.83		(.84	)6,9		—	10		.44	7,9		.44	7,9		1.36	7,9
	(.06	)		—			(.06	)		9.98		.87	6,9		—	10		.18	6,9		.18	6,9		.48	6,9
	(.05	)		—			(.05	)		9.83		(.89	)6		125			.73	7		.73	7		1.07	7
	(.10	)		—	8		(.10	)		9.97		.89			136			.73			.73			.83
	(.07	)		(.02	)		(.09	)		9.98		.96			143			.72			.72			.56
	(.06	)		(.01	)		(.07	)		9.97		.26			135			.73			.73			.60
	(.03	)		—			(.03	)		10.00		.88			120			.74			.74			.40
	(.05	)		—			(.05	)		9.95		(.95	)		147			.73			.73			.38
	(.06	)		—			(.06	)		9.83		(.76	)6		288			.46	7		.46	7		1.34	7
	(.12	)		—	8		(.12	)		9.97		1.16			305			.47			.47			1.09
	(.09	)		(.02	)		(.11	)		9.98		1.23			396			.46			.46			.85
	(.09	)		(.01	)		(.10	)		9.97		.54			304			.45			.45			.87
	(.06	)		—			(.06	)		10.00		1.18			311			.45			.45			.69
	(.08	)		—			(.08	)		9.95		(.68	)		272			.46			.46			.66
	(.07	)		—			(.07	)		9.83		(.81	)6		242			.37	7		.37	7		1.43	7
	(.09	)		—			(.09	)		9.98		1.30	6		211			.35	7		.35	7		1.33	7

See end of table for footnotes.

Short-Term Bond Fund of America 31

Financial highlights (continued)

			(Loss) income from investment operations1
Period ended	Net asset value, beginning of period		Net investment income (loss)			Net (losses) gains on securities (both realized and unrealized)			Total from investment operations
Class 529-A:
2/28/20184,5	$	9.97	$	.05		$	(.14	)	$	(.09	)
8/31/2017		9.98		.09			—	8		.09
8/31/2016		9.97		.06			.04			.10
8/31/2015		10.00		.07			(.02	)		.05
8/31/2014		9.95		.05			.04			.09
8/31/2013		10.10		.04			(.13	)		(.09	)
Class 529-C:
2/28/20184,5		9.83		.02			(.14	)		(.12	)
8/31/2017		9.84		.01			.01			.02
8/31/2016		9.86		(.03	)		.04			.01
8/31/2015		9.93		(.02	)		(.03	)		(.05	)
8/31/2014		9.92		(.04	)		.05			.01
8/31/2013		10.10		(.04	)		(.14	)		(.18	)
Class 529-E:
2/28/20184,5		9.96		.04			(.14	)		(.10	)
8/31/2017		9.97		.06			—	8		.06
8/31/2016		9.96		.03			.04			.07
8/31/2015		10.00		.03			(.02	)		.01
8/31/2014		9.95		.01			.05			.06
8/31/2013		10.10		.01			(.13	)		(.12	)
Class 529-T:
2/28/20184,5		9.98		.06			(.15	)		(.09	)
8/31/20174,11		9.95		.05			.04			.09
Class 529-F-1:
2/28/20184,5		9.97		.06			(.14	)		(.08	)
8/31/2017		9.98		.11			—	8		.11
8/31/2016		9.97		.08			.04			.12
8/31/2015		10.00		.08			(.02	)		.06
8/31/2014		9.95		.06			.04			.10
8/31/2013		10.10		.06			(.14	)		(.08	)
Class R-1:
2/28/20184,5		9.85		.02			(.14	)		(.12	)
8/31/2017		9.86		.01			.01			.02
8/31/2016		9.87		(.02	)		.04			.02
8/31/2015		9.94		(.01	)		(.03	)		(.04	)
8/31/2014		9.92		(.03	)		.05			.02
8/31/2013		10.10		(.04	)		(.14	)		(.18	)

32 Short-Term Bond Fund of America

Dividends and distributions
Dividends (from net investment income)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return2,3			Net assets, end of period (in millions)			Ratio of expenses to average net assets before reimburse- ments			Ratio of expenses to average net assets after reimburse- ments3			Ratio of net income (loss) to average net assets3
$	(.05	)	$	—		$	(.05	)	$	9.83		(.89	)%6	$	366			.73	%7		.73	%7		1.07	%7
	(.10	)		—	8		(.10	)		9.97		.95			321			.67			.67			.90
	(.07	)		(.02	)		(.09	)		9.98		1.03			302			.66			.66			.63
	(.07	)		(.01	)		(.08	)		9.97		.43			291			.66			.66			.67
	(.04	)		—			(.04	)		10.00		.87			295			.65			.65			.49
	(.06	)		—			(.06	)		9.95		(.89	)		282			.67			.67			.44
	(.02	)		—			(.02	)		9.69		(1.27	)6		39			1.49	7		1.49	7		.32	7
	(.03	)		—	8		(.03	)		9.83		.20			65			1.49			1.49			.08
	(.01	)		(.02	)		(.03	)		9.84		.11			68			1.51			1.51			(.23	)
	(.01	)		(.01	)		(.02	)		9.86		(.49	)		68			1.52			1.52			(.19	)
	—	8		—			—	8		9.93		.10			71			1.52			1.52			(.38	)
	—	8		—			—	8		9.92		(1.77	)		71			1.52			1.52			(.41	)
	(.04	)		—			(.04	)		9.82		(1.01	)6		18			.96	7		.96	7		.84	7
	(.07	)		—	8		(.07	)		9.96		.66			17			.97			.97			.60
	(.04	)		(.02	)		(.06	)		9.97		.71			17			.99			.99			.30
	(.04	)		(.01	)		(.05	)		9.96		.03			17			1.00			1.00			.32
	(.01	)		—			(.01	)		10.00		.57			19			1.00			1.00			.14
	(.03	)		—			(.03	)		9.95		(1.23	)		18			1.01			1.01			.10
	(.06	)		—			(.06	)		9.83		(.87	)6,9		—	10		.50	7,9		.50	7,9		1.30	7,9
	(.06	)		—			(.06	)		9.98		.86	6,9		—	10		.20	6,9		.20	6,9		.47	6,9
	(.06	)		—			(.06	)		9.83		(.78	)6		71			.50	7		.50	7		1.30	7
	(.12	)		—	8		(.12	)		9.97		1.12			65			.50			.50			1.07
	(.09	)		(.02	)		(.11	)		9.98		1.16			56			.52			.52			.77
	(.08	)		(.01	)		(.09	)		9.97		.56			54			.53			.53			.81
	(.05	)		—			(.05	)		10.00		1.00			48			.53			.53			.62
	(.07	)		—			(.07	)		9.95		(.75	)		41			.53			.53			.59
	(.02	)		—			(.02	)		9.71		(1.26	)6		4			1.45	7		1.45	7		.35	7
	(.03	)		—	8		(.03	)		9.85		.21			4			1.47			1.47			.09
	(.01	)		(.02	)		(.03	)		9.86		.22			5			1.45			1.45			(.18	)
	(.02	)		(.01	)		(.03	)		9.87		(.48	)		6			1.47			1.47			(.15	)
	—	8		—			—	8		9.94		.21			6			1.47			1.47			(.33	)
	—	8		—			—	8		9.92		(1.77	)		5			1.47			1.47			(.36	)

See end of table for footnotes.

Short-Term Bond Fund of America 33

Financial highlights (continued)

			(Loss) income from investment operations1
Period ended	Net asset value, beginning of period		Net investment income (loss)			Net (losses) gains on securities (both realized and unrealized)			Total from investment operations
Class R-2:
2/28/20184,5	$	9.84	$	.02		$	(.14	)	$	(.12	)
8/31/2017		9.86		.01			—	8		.01
8/31/2016		9.87		(.01	)		.04			.03
8/31/2015		9.94		(.01	)		(.03	)		(.04	)
8/31/2014		9.93		(.03	)		.04			.01
8/31/2013		10.10		(.03	)		(.14	)		(.17	)
Class R-2E:
2/28/20184,5		9.97		.03			(.14	)		(.11	)
8/31/2017		9.97		.04			.01			.05
8/31/2016		9.97		.03			.04			.07
8/31/2015		10.00		.07			(.02	)		.05
8/31/20144,13		10.00		—			—			—
Class R-3:
2/28/20184,5		9.96		.04			(.14	)		(.10	)
8/31/2017		9.97		.06			—	8		.06
8/31/2016		9.96		.03			.04			.07
8/31/2015		10.00		.03			(.02	)		.01
8/31/2014		9.95		.01			.05			.06
8/31/2013		10.10		.01			(.14	)		(.13	)
Class R-4:
2/28/20184,5		9.97		.05			(.14	)		(.09	)
8/31/2017		9.98		.09			—	8		.09
8/31/2016		9.97		.06			.04			.10
8/31/2015		10.00		.06			(.02	)		.04
8/31/2014		9.95		.04			.04			.08
8/31/2013		10.10		.04			(.13	)		(.09	)
Class R-5E:
2/28/20184,5		9.98		.07			(.15	)		(.08	)
8/31/2017		9.98		.11			.01			.12
8/31/20164,14		9.97		.06			.04			.10
Class R-5:
2/28/20184,5		9.98		.07			(.15	)		(.08	)
8/31/2017		9.98		.12			.01			.13
8/31/2016		9.97		.09			.04			.13
8/31/2015		10.01		.09			(.03	)		.06
8/31/2014		9.95		.07			.05			.12
8/31/2013		10.10		.07			(.13	)		(.06	)

34 Short-Term Bond Fund of America

Dividends and distributions
Dividends (from net investment income)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return2,3			Net assets, end of period (in millions)			Ratio of expenses to average net assets before reimburse- ments			Ratio of expenses to average net assets after reimburse- ments3			Ratio of net income (loss) to average net assets3
$	(.02	)	$	—		$	(.02	)	$	9.70		(1.25	)%6	$	43			1.45	%7		1.45	%7		.35	%7
	(.03	)		—	8		(.03	)		9.84		.12			45			1.50			1.50			.07
	(.02	)		(.02	)		(.04	)		9.86		.26			46			1.43			1.43			(.14	)
	(.02	)		(.01	)		(.03	)		9.87		(.47	)		46			1.46			1.46			(.13	)
	—	8		—			—	8		9.94		.11			44			1.49			1.49			(.35	)
	—	8		—			—	8		9.93		(1.67	)		41			1.46			1.46			(.35	)
	(.03	)		—			(.03	)		9.83		(1.12	)6		1			1.21	7		1.21	7		.59	7
	(.05	)		—	8		(.05	)		9.97		.55			1			1.19			1.19			.43
	(.05	)		(.02	)		(.07	)		9.97		.70			—	10		1.13			1.11			.55
	(.07	)		(.01	)		(.08	)		9.97		.45	9		—	10		.59	9		.59	9		.74	9
	—			—			—			10.00		—			—	10		—			—			—
	(.04	)		—			(.04	)		9.82		(1.02	)6		52			1.00	7		1.00	7		.80	7
	(.07	)		—	8		(.07	)		9.96		.61			55			1.01			1.01			.56
	(.04	)		(.02	)		(.06	)		9.97		.69			55			1.00			1.00			.28
	(.04	)		(.01	)		(.05	)		9.96		.03			56			1.00			1.00			.32
	(.01	)		—			(.01	)		10.00		.56			60			1.02			1.02			.12
	(.02	)		—			(.02	)		9.95		(1.25	)		55			1.03			1.03			.08
	(.05	)		—			(.05	)		9.83		(.87	)6		34			.70	7		.70	7		1.10	7
	(.10	)		—	8		(.10	)		9.97		.93			37			.70			.70			.89
	(.07	)		(.02	)		(.09	)		9.98		.99			27			.70			.70			.60
	(.06	)		(.01	)		(.07	)		9.97		.28			24			.70			.70			.63
	(.03	)		—			(.03	)		10.00		.91			24			.71			.71			.44
	(.06	)		—			(.06	)		9.95		(.93	)		25			.71			.71			.40
	(.07	)		—			(.07	)		9.83		(.80	)6		—	10		.43	7		.43	7		1.34	7
	(.12	)		—	8		(.12	)		9.98		1.27			—	10		.65			.47			1.09
	(.07	)		(.02	)		(.09	)		9.98		1.01	6		—	10		.58	7		.58	7		.80	7
	(.07	)		—			(.07	)		9.83		(.83	)6		11			.41	7		.41	7		1.39	7
	(.13	)		—	8		(.13	)		9.98		1.32			11			.41			.41			1.17
	(.10	)		(.02	)		(.12	)		9.98		1.28			9			.41			.41			.91
	(.09	)		(.01	)		(.10	)		9.97		.58			7			.40			.40			.91
	(.06	)		—			(.06	)		10.01		1.21			6			.41			.41			.73
	(.09	)		—			(.09	)		9.95		(.63	)		13			.41			.41			.70

See end of table for footnotes.

Short-Term Bond Fund of America 35

Financial highlights (continued)

			(Loss) income from investment operations1
Period ended	Net asset value, beginning of period		Net investment income (loss)		Net (losses) gains on securities (both realized and unrealized)			Total from investment operations
Class R-6:
2/28/20184,5	$	9.97	$	.07	$	(.14	)	$	(.07	)
8/31/2017		9.98		.12		—	8		.12
8/31/2016		9.97		.09		.04			.13
8/31/2015		10.00		.10		(.02	)		.08
8/31/2014		9.95		.08		.04			.12
8/31/2013		10.10		.08		(.14	)		(.06	)

	Six months ended
	February 28,			Year ended August 31
Portfolio turnover rate for all share classes15	20184,5,6			2017			2016			2015			2014			2013
Excluding mortgage dollar roll transactions		80	%		134	%		292	%		418	%		Not available
Including mortgage dollar roll transactions		92	%		137	%		301	%		452	%		257	%		153	%

See Notes to Financial Statements

36 Short-Term Bond Fund of America

Dividends and distributions																Ratio of			Ratio of
Dividends (from net investment income)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return2,3			Net assets, end of period (in millions)		expenses to average net assets before reimburse- ments			expenses to average net assets after reimburse- ments3			Ratio of net income (loss) to average net assets3
$	(.07	)	$	—		$	(.07	)	$	9.83		(.70	)%6	$	1,656		.35	%7		.35	%7		1.45	%7
	(.13	)		—	8		(.13	)		9.97		1.28			1,384		.35			.35			1.23
	(.10	)		(.02	)		(.12	)		9.98		1.34			1,050		.35			.35			.97
	(.10	)		(.01	)		(.11	)		9.97		.73			729		.35			.35			1.01
	(.07	)		—			(.07	)		10.00		1.17			447		.35			.35			.79
	(.09	)		—			(.09	)		9.95		(.58	)		256		.35			.35			.76

1	Based on average shares outstanding.
2	Total returns exclude any applicable sales charges, including contingent deferred sales charges.
3	This column reflects the impact, if any, of certain reimbursements from CRMC. During some of the periods shown, CRMC paid a portion of the fund’s transfer agent fees for certain retirement plan share classes.
4	Based on operations for a period that is less than a full year.
5	Unaudited.
6	Not annualized.
7	Annualized.
8	Amount less than $.01.
9	All or a significant portion of assets in this class consisted of seed capital invested by CRMC and/or its affiliates. Fees for distribution services are not charged or accrued on these seed capital assets. If such fees were paid by the fund on seed capital assets, fund expenses would have been higher and net income and total return would have been lower.
10	Amount less than $1 million.
11	Class T and 529-T shares began investment operations on April 7, 2017.
12	Class F-3 shares began investment operations on January 27, 2017.
13	Class R-2E shares began investment operations on August 29, 2014.
14	Class R-5E shares began investment operations on November 20, 2015.
15	Refer to Note 5 for more information on mortgage dollar rolls.

Short-Term Bond Fund of America 37

Expense example unaudited

As a fund shareholder, you incur two types of costs: (1) transaction costs, such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads), and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period (September 1, 2017, through February 28, 2018).

Actual expenses:

The first line of each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading titled “Expenses paid during period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes:

The second line of each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed rate of return of 5.00% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.

Notes:

Retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F-1, F-2, F-3 and 529-F-1 shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would be lower by the amount of these fees.

Note that the expenses shown in the table on the following page are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

38 Short-Term Bond Fund of America

	Beginning account value 9/1/2017		Ending account value 2/28/2018		Expenses paid during period*		Annualized expense ratio
Class A – actual return	$	1,000.00	$	991.31	$	3.41		.69	%
Class A – assumed 5% return		1,000.00		1,021.37		3.46		.69
Class C – actual return		1,000.00		987.54		7.10		1.44
Class C – assumed 5% return		1,000.00		1,017.65		7.20		1.44
Class T – actual return		1,000.00		991.58		2.17		.44
Class T – assumed 5% return		1,000.00		1,022.61		2.21		.44
Class F-1 – actual return		1,000.00		991.10		3.60		.73
Class F-1 – assumed 5% return		1,000.00		1,021.17		3.66		.73
Class F-2 – actual return		1,000.00		992.45		2.27		.46
Class F-2 – assumed 5% return		1,000.00		1,022.51		2.31		.46
Class F-3 – actual return		1,000.00		991.88		1.83		.37
Class F-3 – assumed 5% return		1,000.00		1,022.96		1.86		.37
Class 529-A – actual return		1,000.00		991.11		3.60		.73
Class 529-A – assumed 5% return		1,000.00		1,021.17		3.66		.73
Class 529-C – actual return		1,000.00		987.30		7.34		1.49
Class 529-C – assumed 5% return		1,000.00		1,017.41		7.45		1.49
Class 529-E – actual return		1,000.00		989.94		4.74		.96
Class 529-E – assumed 5% return		1,000.00		1,020.03		4.81		.96
Class 529-T – actual return		1,000.00		991.30		2.47		.50
Class 529-T – assumed 5% return		1,000.00		1,022.32		2.51		.50
Class 529-F-1 – actual return		1,000.00		992.23		2.47		.50
Class 529-F-1 – assumed 5% return		1,000.00		1,022.32		2.51		.50
Class R-1 – actual return		1,000.00		987.43		7.15		1.45
Class R-1 – assumed 5% return		1,000.00		1,017.60		7.25		1.45
Class R-2 – actual return		1,000.00		987.47		7.15		1.45
Class R-2 – assumed 5% return		1,000.00		1,017.60		7.25		1.45
Class R-2E – actual return		1,000.00		988.76		5.97		1.21
Class R-2E – assumed 5% return		1,000.00		1,018.79		6.06		1.21
Class R-3 – actual return		1,000.00		989.76		4.93		1.00
Class R-3 – assumed 5% return		1,000.00		1,019.84		5.01		1.00
Class R-4 – actual return		1,000.00		991.28		3.46		.70
Class R-4 – assumed 5% return		1,000.00		1,021.32		3.51		.70
Class R-5E – actual return		1,000.00		991.96		2.12		.43
Class R-5E – assumed 5% return		1,000.00		1,022.66		2.16		.43
Class R-5 – actual return		1,000.00		991.68		2.02		.41
Class R-5 – assumed 5% return		1,000.00		1,022.76		2.06		.41
Class R-6 – actual return		1,000.00		993.00		1.73		.35
Class R-6 – assumed 5% return		1,000.00		1,023.06		1.76		.35

* The “expenses paid during period” are equal to the “annualized expense ratio,” multiplied by the average account value over the period, multiplied by the number of days in the period, and divided by 365 (to reflect the one-half year period).

Short-Term Bond Fund of America 39

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40 Short-Term Bond Fund of America

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Short-Term Bond Fund of America 41

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42 Short-Term Bond Fund of America

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Short-Term Bond Fund of America 43

Offices of the fund and of the investment adviser

Capital Research and Management Company
333 South Hope Street
Los Angeles, CA 90071-1406

6455 Irvine Center Drive
Irvine, CA 92618-4518

Transfer agent for shareholder accounts

American Funds Service Company
(Write to the address near you.)

P.O. Box 6007
Indianapolis, IN 46206-6007

P.O. Box 2280
Norfolk, VA 23501-2280

Custodian of assets

JPMorgan Chase Bank
270 Park Avenue
New York, NY 10017-2070

Counsel

Morgan, Lewis & Bockius LLP

300 South Grand Avenue, 22nd Floor
Los Angeles, CA 90071-3132

Independent registered public accounting firm

PricewaterhouseCoopers LLP
601 South Figueroa Street
Los Angeles, CA 90017-3874

Principal underwriter

American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, CA 90071-1406

44 Short-Term Bond Fund of America

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus and summary prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at (800) 421-4225 or visit the American Funds website at americanfunds.com. Fund shares offered through American Funds Distributors, Inc.

“American Funds Proxy Voting Procedures and Principles” — which describes how we vote proxies relating to portfolio securities — is available on the American Funds website or upon request by calling AFS. The fund files its proxy voting record with the U.S. Securities and Exchange Commission (SEC) for the 12 months ended June 30 by August 31. The proxy voting record is available free of charge on the SEC website at sec.gov and on the American Funds website.

A complete February 28, 2018, portfolio of Short-Term Bond Fund of America’s investments is available free of charge by calling AFS or visiting the SEC website (where it is part of Form N-CSR).

Short-Term Bond Fund of America files a complete list of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. This filing is available free of charge on the SEC website. You may also review or, for a fee, copy this filing at the SEC’s Public Reference Room in Washington, D.C. Additional information regarding the operation of the Public Reference Room may be obtained by calling the SEC’s Office of Investor Education and Advocacy at (800) SEC-0330. Additionally, the list of portfolio holdings is available by calling AFS.

This report is for the information of shareholders of Short-Term Bond Fund of America, but it also may be used as sales literature when preceded or accompanied by the current prospectus or summary prospectus, which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material after June 30, 2018, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.

Bloomberg^® is a trademark of Bloomberg Finance L.P. (collectively with its affiliates, “Bloomberg”). Barclays^® is a trademark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Neither Bloomberg nor Barclays approves or endorses this material, guarantees the accuracy or completeness of any information herein and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

American Funds from Capital Group

The Capital Advantage^®

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

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.

American Funds’ superior long-term track record

Equity funds have beaten their Lipper peer indexes in 92% of 10-year periods and 99% of 20-year periods. Fixed income funds have beaten their Lipper indexes in 77% of 10-year periods and 80% of 20-year periods.² Fund management fees have been among the lowest in the industry.³

1	Portfolio manager experience as of December 31, 2017.
2	Based on Class F-2 share results for rolling periods through December 31, 2017. 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). Expenses differ for each share class, so results will vary. Class F-2 shares were first offered on August 1, 2008. Class F-2 share results prior to the date of first sale are hypothetical based on Class A share results without a sales charge, adjusted for typical estimated expenses. Results for certain funds with an inception date after August 1, 2008, also include hypothetical returns because those funds’ Class F-2 shares sold after the funds’ date of first offering. Please see americanfunds.com for more information on specific expense adjustments and the actual dates of first sale.
3	On average, our management fees were in the lowest quintile 71% of the time, based on the 20-year period ended December 31, 2017, versus comparable Lipper categories, excluding funds of funds.

 

ITEM 2 – Code of Ethics

Not applicable for filing of semi-annual reports to shareholders.

ITEM 3 – Audit Committee Financial Expert

Not applicable for filing of semi-annual reports to shareholders.

ITEM 4 – Principal Accountant Fees and Services

Not applicable for filing of semi-annual reports to shareholders.

ITEM 5 – Audit Committee of Listed Registrants

Not applicable to this Registrant, insofar as the Registrant is not a listed issuer as defined in Rule 10A-3 under the Securities Exchange Act of 1934.

ITEM 6 – Schedule of Investments

U.S. Government Securities Fund®

Investment portfolio

February 28, 2018

unaudited

Bonds, notes & other debt instruments 97.70% U.S. Treasury bonds & notes 78.68% U.S. Treasury 66.61%	Principal amount (000)	Value (000)
U.S. Treasury 1.125% 2019	$120,000	$119,032
U.S. Treasury 1.25% 2019	40,000	39,373
U.S. Treasury 1.375% 2019	280,000	277,990
U.S. Treasury 1.375% 2019	50,000	49,359
U.S. Treasury 1.50% 2019	180,000	178,943
U.S. Treasury 1.50% 2019	135,200	134,504
U.S. Treasury 1.50% 2019	70,000	69,187
U.S. Treasury 1.625% 2019	154,800	153,990
U.S. Treasury 1.25% 2020	15,600	15,290
U.S. Treasury 1.375% 2020	36,000	35,298
U.S. Treasury 1.375% 2020	27,000	26,529
U.S. Treasury 1.375% 2020	26,548	25,866
U.S. Treasury 1.625% 2020	7,500	7,375
U.S. Treasury 1.75% 2020	70,250	69,009
U.S. Treasury 1.75% 2020	56,150	55,236
U.S. Treasury 2.00% 2020	46,850	46,367
U.S. Treasury 8.75% 2020	5,255	6,059
U.S. Treasury 1.125% 2021	20,500	19,525
U.S. Treasury 1.125% 2021	19,926	19,035
U.S. Treasury 1.125% 20211	13,700	13,065
U.S. Treasury 1.75% 2021	227,621	221,220
U.S. Treasury 2.00% 2021	250,000	247,215
U.S. Treasury 2.00% 2021	145,000	142,072
U.S. Treasury 2.00% 2021	76,550	75,231
U.S. Treasury 2.25% 2021	270,706	268,472
U.S. Treasury 3.625% 2021	8,300	8,586
U.S. Treasury 8.00% 2021	3,400	4,059
U.S. Treasury 1.625% 2022	680	650
U.S. Treasury 1.625% 2022	121,000	115,910
U.S. Treasury 1.75% 2022	398,500	384,879
U.S. Treasury 1.75% 2022	238,000	229,699
U.S. Treasury 1.75% 2022	132,600	128,383
U.S. Treasury 1.75% 2022	47,000	45,450
U.S. Treasury 1.75% 2022	25,000	24,223
U.S. Treasury 1.875% 2022	503,330	489,056
U.S. Treasury 1.875% 2022	300,000	291,798
U.S. Treasury 1.875% 2022	152,000	147,309
U.S. Treasury 1.875% 2022	129,030	125,719
U.S. Treasury 1.875% 2022	89,000	86,640
U.S. Treasury 1.875% 2022	69,000	66,760
U.S. Treasury 2.00% 2022	443,000	430,627
U.S. Treasury 2.00% 2022	95,280	92,578
U.S. Treasury 2.125% 20221	904,127	882,799
U.S. Treasury 1.50% 2023	57,820	54,699
U.S. Treasury 1.625% 2023	152,230	144,410
U.S. Treasury 1.625% 2023	55,000	52,226

U.S. Government Securities Fund — Page 1 of 9

unaudited

Bonds, notes & other debt instruments U.S. Treasury bonds & notes (continued) U.S. Treasury (continued)	Principal amount (000)	Value (000)
U.S. Treasury 2.125% 2023	$157,874	$152,921
U.S. Treasury 2.375% 2023	68,000	67,145
U.S. Treasury 2.50% 2023	40,720	40,324
U.S. Treasury 2.75% 2023	147,900	148,200
U.S. Treasury 2.125% 20241	315,650	303,147
U.S. Treasury 2.25% 2024	122,250	118,239
U.S. Treasury 2.25% 2024	106,700	103,866
U.S. Treasury 2.50% 2024	96,000	94,609
U.S. Treasury 2.75% 2024	87,700	87,768
U.S. Treasury 2.75% 2025	145,000	144,548
U.S. Treasury 6.25% 2030	5,250	7,046
U.S. Treasury 2.75% 2047	164,128	152,112
U.S. Treasury 2.75% 2047	35,700	33,086
		7,574,713
U.S. Treasury inflation-protected securities 12.07%
U.S. Treasury Inflation-Protected Security 0.125% 20222	257,950	253,931
U.S. Treasury Inflation-Protected Security 0.125% 20222	70,037	69,197
U.S. Treasury Inflation-Protected Security 0.25% 20252	54,186	52,725
U.S. Treasury Inflation-Protected Security 0.375% 20252	281,414	276,306
U.S. Treasury Inflation-Protected Security 2.375% 20252	47,999	53,600
U.S. Treasury Inflation-Protected Security 0.125% 20262	52,967	50,583
U.S. Treasury Inflation-Protected Security 0.50% 20282	297,777	246,943
U.S. Treasury Inflation-Protected Security 2.125% 20412	3,096	3,877
U.S. Treasury Inflation-Protected Security 0.75% 20422	188,083	180,042
U.S. Treasury Inflation-Protected Security 0.625% 20432	23,054	21,349
U.S. Treasury Inflation-Protected Security 1.00% 20462	34,127	34,291
U.S. Treasury Inflation-Protected Security 0.875% 20472	69,855	67,926
U.S. Treasury Inflation-Protected Security 1.00% 20482	70,962	62,066
		1,372,836
Total U.S. Treasury bonds & notes		8,947,549
Mortgage-backed obligations 17.12% Federal agency mortgage-backed obligations 17.12%
Fannie Mae 10.50% 20183	16	16
Fannie Mae 5.50% 20233	465	486
Fannie Mae 6.00% 20243	351	390
Fannie Mae 10.47% 20253	24	24
Fannie Mae 6.00% 20263	18	20
Fannie Mae 6.50% 20273	621	692
Fannie Mae 6.50% 20273	268	298
Fannie Mae 5.00% 20283	284	304
Fannie Mae 8.00% 20313	380	426
Fannie Mae 3.00% 20333,4	109,450	108,864
Fannie Mae 3.00% 20333,4	8,550	8,515
Fannie Mae 3.00% 20363	28,910	28,572
Fannie Mae 3.00% 20363	16,088	15,900
Fannie Mae 4.00% 20363	21,844	22,648
Fannie Mae 4.00% 20363	13,878	14,387
Fannie Mae 4.00% 20363	10,705	11,098
Fannie Mae 4.00% 20363	4,625	4,795
Fannie Mae 4.00% 20363	1,271	1,318
Fannie Mae 4.00% 20363	33	34

U.S. Government Securities Fund — Page 2 of 9

unaudited

Bonds, notes & other debt instruments Mortgage-backed obligations (continued) Federal agency mortgage-backed obligations (continued)	Principal amount (000)	Value (000)
Fannie Mae 3.00% 20373	$10,276	$10,141
Fannie Mae 6.50% 20373	152	166
Fannie Mae 6.50% 20373	152	164
Fannie Mae 6.50% 20373	40	44
Fannie Mae 7.00% 20373	213	235
Fannie Mae 7.00% 20373	52	56
Fannie Mae 7.50% 20373	40	45
Fannie Mae 6.00% 20383	40	40
Fannie Mae 7.00% 20383	381	413
Fannie Mae 5.00% 20413	1,642	1,787
Fannie Mae 5.00% 20413	1,117	1,216
Fannie Mae 5.00% 20413	878	957
Fannie Mae 5.00% 20413	661	721
Fannie Mae 3.00% 20463	23,351	22,660
Fannie Mae 3.50% 20473	24,210	24,212
Fannie Mae 3.50% 20473	9,499	9,506
Fannie Mae 4.00% 20473	71,965	73,880
Fannie Mae 4.00% 20473	31,734	32,608
Fannie Mae 4.00% 20473	24,427	25,077
Fannie Mae 4.00% 20473	16,472	16,908
Fannie Mae 4.50% 20473	42,813	44,968
Fannie Mae 3.00% 20483,4	61,000	59,044
Fannie Mae 4.00% 20483,4	161,000	164,677
Fannie Mae 4.00% 20483,4	52,500	53,601
Fannie Mae 4.50% 20483,4	73,200	76,560
Fannie Mae 4.50% 20483,4	25,000	26,187
Fannie Mae 4.50% 20483,4	1,000	1,044
Fannie Mae, Series 2001-4, Class NA, 9.251% 20253,5	9	9
Fannie Mae, Series 2001-25, Class ZA, 6.50% 20313	233	247
Fannie Mae, Series 2001-20, Class E, 9.582% 20313,5	3	3
Fannie Mae, Series 2006-65, Class PF, (1-month USD-LIBOR + 0.28%) 1.901% 20363,5	759	755
Fannie Mae, Series 1999-T2, Class A1, 7.500% 20393,5	238	259
Fannie Mae, Series 2012-M2, Class A2, Multi Family 2.717% 20223	4,325	4,307
Fannie Mae, Series 2012-M3, Class 1A2, Multi Family 3.044% 20223	3,500	3,516
Fannie Mae, Series 2014-M1, Class A2, Multi Family 3.191% 20233,5	3,600	3,628
Fannie Mae, Series 2014-M3, Class A2, Multi Family 3.466% 20243,5	6,525	6,687
Fannie Mae, Series 2006-83, Class AO, principal only, 0% 20363	958	815
Fannie Mae, Series 2006-56, Class OG, principal only, 0% 20363	561	471
Freddie Mac 10.00% 20253	27	27
Freddie Mac 4.00% 20363	211	219
Freddie Mac 5.00% 20413	3,800	4,145
Freddie Mac 3.50% 20463	5,921	5,932
Freddie Mac 3.50% 20473	31,553	31,595
Freddie Mac 3.50% 20473	24,451	24,455
Freddie Mac 3.50% 20473	23,412	23,444
Freddie Mac 3.50% 20473	15,136	15,156
Freddie Mac 3.50% 20473	5,561	5,568
Freddie Mac 4.50% 20473	9,727	10,228
Freddie Mac 3.00% 20483,4	12,300	11,898
Freddie Mac 4.00% 20483,4	148,870	152,267
Freddie Mac 4.50% 20483,4	6,000	6,275
Freddie Mac Pool #1H1354 3.429% 20363,5	412	434
Freddie Mac Pool #760014 2.976% 20453,5	5,908	5,902
Freddie Mac, Series 2289, Class NA, 10.179% 20203,5	5	6

U.S. Government Securities Fund — Page 3 of 9

unaudited

Bonds, notes & other debt instruments Mortgage-backed obligations (continued) Federal agency mortgage-backed obligations (continued)	Principal amount (000)	Value (000)
Freddie Mac, Series 2289, Class NB, 9.00% 20223,5	$7	$7
Freddie Mac, Series 1567, Class A, (1-month USD-LIBOR + 0.40%) 1.988% 20233,5	6	6
Freddie Mac, Series 2626, Class NG, 3.50% 20233	1	1
Freddie Mac, Series 3156, Class PF, (1-month USD-LIBOR + 0.25%) 1.838% 20363,5	1,339	1,348
Freddie Mac, Series KGRP, Class A, Multi Family (1-month USD-LIBOR + 0.38%) 1.960% 20203,5	2,097	2,101
Freddie Mac, Series K013, Class A1, Multi Family 2.902% 20203	892	896
Freddie Mac, Series K010, Class A1, Multi Family 3.32% 20203	305	307
Freddie Mac, Series K031, Class A1, Multi Family 2.778% 20223	1,708	1,709
Freddie Mac, Series KS01, Class A2, Multi Family 2.522% 20233	3,185	3,139
Freddie Mac, Series K029, Class A2, Multi Family 3.32% 20233	1,200	1,220
Freddie Mac, Series K070, Class A2, Multi Family 3.303% 20273	20,965	21,003
Freddie Mac, Series 3156, Class PO, principal only, 0% 20363	1,128	958
Freddie Mac, Series 3146, Class PO, principal only, 0% 20363	501	420
Freddie Mac, Series 3213, Class OG, principal only, 0% 20363	435	388
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-2, Class HA, 2.25% 20563	41,254	40,040
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-1, Class HA, 2.25% 20563,5	37,356	36,303
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-2, Class MA, 3.00% 20563	38,194	37,294
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-4, Class HT, 2.25% 20573	10,027	9,618
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-4, Class MT, 3.50% 20573	7,715	7,675
Government National Mortgage Assn. 10.00% 20193	14	14
Government National Mortgage Assn. 10.00% 20213	21	22
Government National Mortgage Assn. 6.50% 20293	425	474
Government National Mortgage Assn. 6.50% 20323	653	726
Government National Mortgage Assn. 6.50% 20373	233	260
Government National Mortgage Assn. 5.50% 20383	294	320
Government National Mortgage Assn. 5.50% 20383	30	31
Government National Mortgage Assn. 6.00% 20383	397	451
Government National Mortgage Assn. 6.50% 20383	268	293
Government National Mortgage Assn. 6.50% 20383	251	263
Government National Mortgage Assn. 6.50% 20383	186	206
Government National Mortgage Assn. 6.50% 20383	134	147
Government National Mortgage Assn. 4.00% 20393	487	502
Government National Mortgage Assn. 4.00% 20393	55	57
Government National Mortgage Assn. 5.00% 20393	1,005	1,083
Government National Mortgage Assn. 6.00% 20393	2,238	2,502
Government National Mortgage Assn. 6.50% 20393	676	752
Government National Mortgage Assn. 4.50% 20403	915	962
Government National Mortgage Assn. 5.00% 20403	151	160
Government National Mortgage Assn. 5.00% 20403	122	129
Government National Mortgage Assn. 5.50% 20403	3,535	3,887
Government National Mortgage Assn. 3.50% 20413	838	833
Government National Mortgage Assn. 4.00% 20413	230	229
Government National Mortgage Assn. 4.50% 20413	11,479	11,983
Government National Mortgage Assn. 5.00% 20413	6,128	6,447
Government National Mortgage Assn. 5.00% 20413	92	97
Government National Mortgage Assn. 5.50% 20413	296	307
Government National Mortgage Assn. 5.50% 20413	227	236
Government National Mortgage Assn. 5.50% 20413	75	77
Government National Mortgage Assn. 6.00% 20413	81	87
Government National Mortgage Assn. 6.50% 20413	1,290	1,398
Government National Mortgage Assn. 3.50% 20423	536	540
Government National Mortgage Assn. 4.00% 20423	3,129	3,186
Government National Mortgage Assn. 4.00% 20423	1,771	1,803
Government National Mortgage Assn. 3.50% 20433	4,011	4,039

U.S. Government Securities Fund — Page 4 of 9

unaudited

Bonds, notes & other debt instruments Mortgage-backed obligations (continued) Federal agency mortgage-backed obligations (continued)	Principal amount (000)	Value (000)
Government National Mortgage Assn. 4.50% 20433	$510	$538
Government National Mortgage Assn. 4.50% 20453	20,012	21,044
Government National Mortgage Assn. 4.50% 20453	508	535
Government National Mortgage Assn. 4.50% 20453	107	113
Government National Mortgage Assn. 4.00% 20463	7,768	7,909
Government National Mortgage Assn. 4.00% 20473	110,372	113,464
Government National Mortgage Assn. 4.50% 20473	10,081	10,503
Government National Mortgage Assn. 3.50% 20483,4	75,000	75,425
Government National Mortgage Assn. 3.50% 20483,4	25,000	25,106
Government National Mortgage Assn. 4.00% 20483,6	75,200	77,321
Government National Mortgage Assn. 4.00% 20483,4	57,000	58,403
Government National Mortgage Assn. 4.00% 20483,4	9,400	9,618
Government National Mortgage Assn. 4.50% 20483,4	87,275	90,725
Government National Mortgage Assn. 4.50% 20483,4	10,525	10,933
Government National Mortgage Assn. 6.216% 20583	488	525
Government National Mortgage Assn., Series 2003-46, 5.00% 20333	1,011	1,054
Government National Mortgage Assn., Series 2010-H23, Class PT, 5.423% 20603,5	22,084	22,516
Government National Mortgage Assn., Series 2011-H02, Class BI, interest only, 0.487% 20613,5	21,195	232
Government National Mortgage Assn., Series 2012-H23, Class FI, interest only, 0.736% 20623,5	18,522	217
National Credit Union Administration, Series 2011-R3, Class 1A, (1-month USD-LIBOR + 0.40%) 1.979% 20203,5	606	607
National Credit Union Administration, Series 2011-R1, Class 1A, (1-month USD-LIBOR + 0.45%) 2.029% 20203,5	387	388
Vendee Mortgage Trust, Series 2011-2, Class V, 3.75% 20283	10,851	10,762
Vendee Mortgage Trust, Series 2008-1, Class GD, 5.25% 20323	8,288	8,569
Vendee Mortgage Trust, Series 2011-2, Class DA, 3.75% 20333	5,155	5,210
Vendee Mortgage Trust, Series 2010-1, Class DA, 4.25% 20353	2,158	2,202
Total mortgage-backed obligations		1,946,807
Federal agency bonds & notes 1.90%
Export-Import Bank of the United States-Guaranteed, Ethiopian Leasing 2012 LLC 2.646% 20263	1,426	1,404
Export-Import Bank of the United States-Guaranteed, VCK Lease SA 2.591% 20263	1,480	1,457
Fannie Mae 1.25% 2021	31,600	30,278
Fannie Mae 7.125% 2030	3,000	4,153
Federal Home Loan Bank 3.375% 2023	14,160	14,649
Federal Home Loan Bank 5.50% 2036	700	917
Private Export Funding Corp. 1.45% 2019	5,250	5,193
Private Export Funding Corp. 2.25% 2020	10,000	9,970
Private Export Funding Corp. 3.55% 2024	11,150	11,572
Small Business Administration, Series 2001-20K, 5.34% 20213	154	158
Small Business Administration, Series 2001-20J, 5.76% 20213	48	50
Small Business Administration, Series 2001-20F, 6.44% 20213	204	212
Small Business Administration, Series 2003-20B, 4.84% 20233	609	631
Tennessee Valley Authority 4.65% 2035	3,930	4,603
Tennessee Valley Authority 5.88% 2036	2,750	3,689
Tennessee Valley Authority, Series A, 3.875% 2021	8,500	8,843
Tennessee Valley Authority, Series 2008, Class A, 4.875% 2048	3,300	4,056
TVA Southaven 3.846% 20333	2,497	2,551
United States Agency for International Development, Iraq (State of), 2.149% 2022	13,330	13,016
United States Agency for International Development, Israel (State of), Class 1-A, 5.50% 2023	5,000	5,652
United States Agency for International Development, Jordan (Kingdom of) 1.945% 2019	31,500	31,420
United States Agency for International Development, Jordan (Kingdom of) 2.503% 2020	8,200	8,241
United States Agency for International Development, Jordan (Kingdom of) 2.578% 2022	6,000	5,985
United States Agency for International Development, Jordan (Kingdom of) 3.00% 2025	2,500	2,511

U.S. Government Securities Fund — Page 5 of 9

unaudited

Bonds, notes & other debt instruments Federal agency bonds & notes (continued)	Principal amount (000)	Value (000)
United States Agency for International Development, Tunisia (Kingdom of) 1.416% 2021	$7,000	$6,742
United States Agency for International Development, Ukraine, 1.844% 2019	2,890	2,874
United States Agency for International Development, Ukraine, 1.847% 2020	20,000	19,763
United States Agency for International Development, Ukraine, 1.471% 2021	11,770	11,328
United States Government-Guaranteed Certificates of Participation, Overseas Private Investment Corp, 3.49% 20293	1,549	1,561
United States Government-Guaranteed Certificates of Participation, Overseas Private Investment Corp, 3.82% 20323	1,731	1,749
United States Government-Guaranteed Certificates of Participation, Overseas Private Investment Corp, 3.938% 20323	1,365	1,423
		216,651
Total bonds, notes & other debt instruments (cost: $11,299,472,000)		11,111,007
Short-term securities 9.90%
Federal Home Loan Bank 1.36%–1.61% due 3/21/2018–5/16/2018	517,500	516,549
Freddie Mac 1.11% due 3/2/2018	75,000	74,997
Home Depot Inc. 1.37% due 3/1/20187	23,500	23,499
PepsiCo Inc. 1.48% due 3/12/20187	50,000	49,975
U.S. Treasury Bills 1.47%–1.51% due 4/12/2018–4/26/2018	419,600	418,719
United Parcel Service Inc. 1.30% due 3/1/20187	9,900	9,900
Wal-Mart Stores, Inc. 1.54% due 3/6/20187	31,800	31,792
Total short-term securities (cost: $1,125,522,000)		1,125,431
Total investment securities 107.60% (cost: $12,424,994,000)		12,236,438
Other assets less liabilities (7.60)%		(864,522)
Net assets 100.00%		$11,371,916

Futures contracts

Contracts	Type	Number of contracts	Expiration	Notional amount8 (000)	Value at 2/28/20189 (000)	Unrealized (depreciation) appreciation at 2/28/2018 (000)
30 Day Federal Funds Futures	Long	4,310	April 2018	$1,795,977	$1,766,164	$(99)
10 Year U.S. Treasury Note Futures	Long	10,484	June 2018	1,048,400	1,258,572	1,067
20 Year U.S. Treasury Bond Futures	Long	635	June 2018	63,500	91,083	132
10 Year Ultra U.S. Treasury Note Futures	Short	1,169	June 2018	(116,900)	(149,705)	(155)
30 Year Ultra U.S. Treasury Bond Futures	Short	1,706	June 2018	(170,600)	(265,923)	(1,675)
5 Year U.S. Treasury Note Futures	Long	40,588	July 2018	4,058,800	4,624,178	(5,262)
2 Year U.S. Treasury Note Futures	Long	9,541	July 2018	1,908,200	2,027,164	(962)
90 Day Euro Dollar Futures	Long	9,358	December 2018	2,339,500	2,280,311	(4,167)
90 Day Euro Dollar Futures	Short	4,857	December 2019	(1,214,250)	(1,179,644)	6,806
						$(4,315)

U.S. Government Securities Fund — Page 6 of 9

unaudited

Swap contracts

Interest rate swaps

Receive	Pay	Expiration date	Notional (000)	Value at 2/28/2018 (000)	Upfront payments/ receipts (000)	Unrealized (depreciation) appreciation at 2/28/2018 (000)
1.8975%	U.S. EFFR	9/26/2018	$2,656,100	$—	$—	$—
1.886%	U.S. EFFR	9/26/2018	3,041,300	(76)	—	(76)
1.882%	U.S. EFFR	9/26/2018	3,041,300	(95)	—	(95)
1.8775%	U.S. EFFR	9/26/2018	3,041,300	(116)	—	(116)
1.37%	U.S. EFFR	6/14/2019	190,000	(1,533)	—	(1,533)
1.362%	U.S. EFFR	6/21/2019	190,000	(1,588)	—	(1,588)
3-month USD-LIBOR	1.5445%	6/28/2019	190,000	2,090	—	2,090
1.351%	U.S. EFFR	6/28/2019	190,000	(1,651)	—	(1,651)
3-month USD-LIBOR	1.59851%	8/7/2019	205,000	2,305	—	2,305
2.32475%	3-month USD-LIBOR	2/9/2020	1,840,000	(6,394)	—	(6,394)
3-month USD-LIBOR	2.3774%	2/13/2020	1,560,000	3,905	—	3,905
1.997%	U.S. EFFR	2/13/2020	231,000	(664)	—	(664)
1.989%	U.S. EFFR	2/13/2020	231,000	(700)	—	(700)
2.005%	U.S. EFFR	2/14/2020	525,400	(1,436)	—	(1,436)
1.8005%	3-month USD-LIBOR	9/28/2020	168,000	(3,390)	—	(3,390)
3-month USD-LIBOR	1.217%	9/22/2021	250,000	12,571	—	12,571
3-month USD-LIBOR	1.225%	9/22/2021	250,000	12,503	—	12,503
3-month USD-LIBOR	1.196%	9/27/2021	90,000	4,605	—	4,605
3-month USD-LIBOR	2.01215%	2/2/2022	350,000	9,081	—	9,081
3-month USD-LIBOR	1.9665%	2/2/2022	146,000	4,037	—	4,037
3-month USD-LIBOR	1.977%	2/7/2022	178,000	4,867	—	4,867
3-month USD-LIBOR	2.2175%	3/17/2022	316,000	6,045	—	6,045
3-month USD-LIBOR	1.869%	4/19/2022	215,000	7,145	—	7,145
3-month USD-LIBOR	1.948%	7/28/2022	360,000	11,663	—	11,663
2.80%	3-month USD-LIBOR	9/2/2022	560,000	(1,167)	—	(1,167)
2.75%	3-month USD-LIBOR	9/2/2022	560,000	(1,680)	—	(1,680)
2.009%	3-month USD-LIBOR	10/4/2022	187,000	(5,907)	—	(5,907)
2.00965%	3-month USD-LIBOR	10/6/2022	171,000	(5,399)	—	(5,399)
1.9855%	3-month USD-LIBOR	10/17/2022	102,500	(3,359)	—	(3,359)
1.98%	3-month USD-LIBOR	10/17/2022	102,500	(3,384)	—	(3,384)
2.1045%	3-month USD-LIBOR	10/31/2022	76,000	(2,111)	—	(2,111)
2.08613%	3-month USD-LIBOR	11/17/2022	138,100	(4,012)	—	(4,012)
2.08934%	3-month USD-LIBOR	11/17/2022	146,900	(4,246)	—	(4,246)
2.2025%	3-month USD-LIBOR	12/4/2022	71,000	(1,731)	—	(1,731)
3-month USD-LIBOR	2.2455%	12/21/2022	78,500	1,783	—	1,783
2.27403%	3-month USD-LIBOR	12/29/2022	220,000	(4,709)	—	(4,709)
3-month USD-LIBOR	2.6778%	2/12/2023	190,000	605	—	605
2.7435%	3-month USD-LIBOR	2/16/2023	155,000	(31)	—	(31)
2.7365%	3-month USD-LIBOR	2/20/2023	154,000	(85)	—	(85)
3-month USD-LIBOR	1.495%	11/10/2023	115,000	7,790	—	7,790
3-month USD-LIBOR	2.0815%	2/10/2024	86,700	3,346	—	3,346
3-month USD-LIBOR	2.0955%	2/10/2024	43,300	1,637	—	1,637
3-month USD-LIBOR	2.3875%	3/17/2024	290,300	6,483	—	6,483
3-month USD-LIBOR	2.12813%	10/3/2024	225,000	9,186	—	9,186
3-month USD-LIBOR	2.4595%	1/12/2025	88,200	1,932	—	1,932
3-month USD-LIBOR	2.585%	1/26/2025	124,600	1,747	—	1,747
3-month USD-LIBOR	2.588%	1/26/2025	58,100	803	—	803
2.561%	3-month USD-LIBOR	1/29/2025	80,900	(1,251)	—	(1,251)
3-month USD-LIBOR	2.72%	2/8/2025	100,000	556	—	556
2.722%	3-month USD-LIBOR	2/9/2025	141,000	(768)	—	(768)

U.S. Government Securities Fund — Page 7 of 9

unaudited

Receive	Pay	Expiration date	Notional (000)	Value at 2/28/2018 (000)	Upfront payments/ receipts (000)	Unrealized (depreciation) appreciation at 2/28/2018 (000)
3-month USD-LIBOR	2.469%	6/9/2025	$23,000	$535	$—	$535
3-month USD-LIBOR	1.7545%	2/5/2026	45,000	3,490	—	3,490
3-month USD-LIBOR	2.24%	12/5/2026	179,000	8,666	—	8,666
3-month USD-LIBOR	2.27%	12/5/2026	146,000	6,724	—	6,724
2.579%	3-month USD-LIBOR	3/14/2027	159,000	(3,609)	—	(3,609)
2.333%	3-month USD-LIBOR	3/29/2027	130,000	(5,561)	—	(5,561)
3-month USD-LIBOR	2.31934%	11/17/2027	77,600	3,696	—	3,696
3-month USD-LIBOR	2.31613%	11/17/2027	72,400	3,468	—	3,468
2.925%	3-month USD-LIBOR	2/1/2028	48,600	(195)	—	(195)
2.91%	3-month USD-LIBOR	2/1/2028	60,800	(282)	—	(282)
2.908%	3-month USD-LIBOR	2/1/2028	60,700	(286)	—	(286)
2.92%	3-month USD-LIBOR	2/2/2028	45,900	(194)	—	(194)
3-month USD-LIBOR	2.97125%	9/2/2030	124,000	474	—	474
3-month USD-LIBOR	3.005%	9/2/2030	124,000	128	—	128
3-month USD-LIBOR	2.9625%	2/1/2038	36,300	306	—	306
3-month USD-LIBOR	2.963%	2/1/2038	36,300	304	—	304
3-month USD-LIBOR	2.986%	2/1/2038	29,200	199	—	199
3-month USD-LIBOR	2.967%	2/2/2038	28,200	229	—	229
3-month USD-LIBOR	3.206%	7/31/2044	22,000	(1,049)	—	(1,049)
3-month USD-LIBOR	3.238%	8/8/2044	28,000	(1,502)	—	(1,502)
3-month USD-LIBOR	2.7045%	1/2/2045	38,500	1,884	—	1,884
3-month USD-LIBOR	2.58245%	11/5/2045	13,000	954	—	954
3-month USD-LIBOR	2.6485%	11/16/2045	54,375	3,284	—	3,284
3-month USD-LIBOR	2.52822%	11/23/2045	17,800	1,501	—	1,501
3-month USD-LIBOR	2.59125%	12/16/2045	22,500	1,621	—	1,621
U.S. EFFR	2.166%	10/23/2047	35,000	2,771	—	2,771
U.S. EFFR	2.172%	11/8/2047	15,000	1,169	—	1,169
U.S. EFFR	2.145%	11/9/2047	47,500	3,971	—	3,971
U.S. EFFR	2.153%	11/10/2047	47,500	3,891	—	3,891
U.S. EFFR	2.155%	11/10/2047	26,680	2,175	—	2,175
U.S. EFFR	2.17%	11/13/2047	48,320	3,787	—	3,787
2.964%	3-month USD-LIBOR	2/12/2048	34,100	123	—	123
U.S. EFFR	2.5635%	2/12/2048	81,502	(325)	—	(325)
3-month USD-LIBOR	2.96%	2/15/2048	17,400	(48)	—	(48)
3-month USD-LIBOR	3.0135%	2/16/2048	35,000	(485)	—	(485)
3-month USD-LIBOR	2.9825%	2/20/2048	35,000	(259)	—	(259)
					$—	$100,757

1	A portion of this security was pledged as collateral. The total value of pledged collateral was $161,142,000, which represented 1.42% of the net assets of the fund.
2	Index-linked bond whose principal amount moves with a government price index.
3	Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.
4	Purchased on a TBA basis.
5	Coupon rate may change periodically.
6	Valued under fair value procedures adopted by authority of the board of trustees. The total value of the security was $77,321,000, which represented .68% of the net assets of the fund.
7	Acquired in a transaction exempt from registration under Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $115,166,000, which represented 1.01% of the net assets of the fund.
8	Notional amount is calculated based on the number of contracts and notional contract size.
9	Value is calculated based on the notional amount and current market price.

U.S. Government Securities Fund — Page 8 of 9

unaudited

Key to abbreviations and symbol

EFFR = Federal Funds Effective Rate

LIBOR = London Interbank Offered Rate

TBA = To-be-announced

USD/$ = U.S. dollars

Additional financial disclosures are included in the fund’s current shareholder report and should be read in conjunction with this report.

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 prospectus and summary prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at (800) 421-4225 or visit the American Funds website at americanfunds.com. Fund shares offered through American Funds Distributors, Inc.

MFGEFPX-022-0418O-S60661 U.S. Government Securities Fund — Page 9 of 9

ITEM 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.

ITEM 8 – Portfolio Managers of Closed-End Management Investment Companies

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.

ITEM 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.

ITEM 10 – Submission of Matters to a Vote of Security Holders

There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s board of trustees since the Registrant last submitted a proxy statement to its shareholders. The procedures are as follows. The Registrant has a nominating and governance committee comprised solely of persons who are not considered ‘‘interested persons’’ of the Registrant within the meaning of the Investment Company Act of 1940, as amended. The committee periodically reviews such issues as the board’s composition, responsibilities, committees, compensation and other relevant issues, and recommends any appropriate changes to the full board of trustees. While the committee normally is able to identify from its own resources an ample number of qualified candidates, it will consider shareholder suggestions of persons to be considered as nominees to fill future vacancies on the board. Such suggestions must be sent in writing to the nominating and governance committee of the Registrant, c/o the Registrant’s Secretary, and must be accompanied by complete biographical and occupational data on the prospective nominee, along with a written consent of the prospective nominee for consideration of his or her name by the nominating and governance committee.

ITEM 11 – Controls and Procedures

(a)	The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures (as such term is defined in Rule 30a-3 under the Investment Company Act of 1940), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule.
(b)	There were no changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

ITEM 12 – Exhibits

(a)(1)	Not applicable for filing of semi-annual reports to shareholders.
(a)(2)	The certifications required by Rule 30a-2 of the Investment Company Act of 1940 and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

SHORT-TERM BOND FUND OF AMERICA

By /s/ John R. Queen

John R. Queen, President and

Principal Executive Officer

Date: April 30, 2018

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By /s/ John R. Queen

John R. Queen, President and

Principal Executive Officer

Date: April 30, 2018

By /s/ Brian C. Janssen

Brian C. Janssen, Treasurer and

Principal Financial Officer

Date: April 30, 2018