N-CSR 1 afps_ncsr.htm N-CSR

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: 811-22656

American Funds Portfolio Series

(Exact Name of Registrant as Specified in Charter)

6455 Irvine Center Drive

Irvine, California 92618

(Address of Principal Executive Offices)

Registrant's telephone number, including area code: (949) 975-5000

Date of fiscal year end: October 31

Date of reporting period: October 31, 2013

Steven I. Koszalka

American Funds Portfolio Series

6455 Irvine Center Drive

Irvine, California 92618

(Name and Address of Agent for Service)

Copies to:

Michael Glazer

Bingham McCutchen LLP

355 South Grand Avenue, Suite 4400

Los Angeles, California 90071

(Counsel for the Registrant)

ITEM 1 – Reports to Stockholders

Invest in portfolios
designed to pursue
real-life objectives

Special feature page 6

American Funds
Portfolio Series^SM

Annual report
for the year ended
October 31, 2013

American Funds Portfolio Series seeks to help investors meet a wide range of investment goals, including preservation of capital, income, balance and growth. Each fund in the series is an objective-based portfolio of actively managed American Funds.

American Funds, from Capital Group, is one of the nation’s largest mutual fund families. For more than 80 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 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. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. 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 September 30, 2013 (the most recent calendar quarter-end). Also shown are the gross and net expense ratios as of the series prospectus dated January 1, 2014 (unaudited):

Class A shares	1 year total return			Lifetime total return (since 5/18/12)			Gross expense ratio			Net expense ratio

Reflecting 5.75% maximum initial sales charge:
American Funds Global Growth Portfolio^SM		14.30	%		19.66	%		1.00	%		0.90	%
American Funds Growth Portfolio^SM		16.05			20.33			0.89			0.79
American Funds Growth and Income Portfolio^SM		8.59			13.98			0.80			0.70
American Funds Balanced Portfolio^SM		7.06			11.80			0.79			0.69
American Funds Income Portfolio^SM		2.92			7.07			0.78			0.68

Reflecting 3.75% maximum initial sales charge:
American Funds Tax-Advantaged Income Portfolio^SM		4.56			8.96			0.92			0.82

Reflecting 2.50% maximum initial sales charge:
American Funds Preservation Portfolio^SM		–3.49			–1.67			0.83			0.71
American Funds Tax-Exempt Preservation Portfolio^SM		–3.48			–1.24			0.89			0.76

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. Expense ratios are as of the series prospectus dated January 1, 2014 (unaudited).

The portfolio series’ funds invest in Class R-6 shares of the underlying funds. The series’ investment adviser is currently waiving its management fee of 0.10%, and reimbursing a portion of other expenses in all share classes for the Tax-Exempt Preservation Portfolio and the Preservation Portfolio. Investment results and net expense ratios shown reflect the waiver and/or reimbursements, without which the results would have been lower and the expenses would have been higher. Expense ratios are as of each fund’s prospectus available at the time of publication and include the weighted average expenses of the underlying funds. The waiver and reimbursements will remain in effect at least through December 31, 2014. After that time, the adviser may elect at its discretion to extend, modify or terminate the reimbursements. The waiver may only be modified or terminated with the approval of the fund board.

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

Investment allocations may not achieve fund objectives. There are expenses associated with the underlying funds in addition to fund of funds expenses. The funds’ risks are directly related to the risks of the underlying funds. Refer to the series prospectus and the Risk Factors section of this report for more information on these and other risks associated with investing in the series.

Special feature

6		Invest in portfolios designed to pursue real-life objectives

Contents

1		Letter to investors
4		The value of a $10,000 investment
8		Investment portfolios
16		Financial statements
59		Board of trustees and other officers

Fellow investors:

We’re pleased to present the annual report for American Funds Portfolio Series for the year ended October 31, 2013.

The series offers eight portfolios, each with a different objective, composed of individual American Funds. For more information on the series and the underlying funds, we invite you to read the article, “Invest in portfolios designed to pursue real-life objectives” that begins on page 6.

As you can see in the table on page 3, six of the portfolios posted positive results for the 12 months. It’s important to keep in mind that the funds are meant as long-term investments. Therefore, results for a single year should be placed in the proper context.

The economy

The U.S economy scored steady, if modest, gains throughout the reporting period. In a promising sign, gross domestic product (GDP) grew at its fastest pace of the year in the third quarter of 2013, significantly beating economists’ expectations. The employment market saw continued improvement, with more jobs being added each month. As of September 30, the unemployment rate had dropped to 7.2%. Inflation remained in check, housing numbers were up and the auto sector recorded healthy results. Fiscal drag curbed momentum somewhat, as government spending was restrained. Outside the U.S., developed market economies were generally solid, with the euro zone realizing some success in its efforts toward recovery. Emerging markets saw mixed economic results.

The stock market

Driven by the expanding economy and strong corporate profits, U.S. stocks advanced significantly. They began the reporting period on a negative note as anxiety attendant to the “fiscal cliff” put a damper on investor sentiment. However, the market ushered in the calendar year with an impressive rally, as concerns faded about fiscal challenges and global events. The second quarter of 2013 saw stocks rise moderately, held back by hints from the Federal Reserve that it might taper its stimulus programs. The third quarter closed with solid gains, as the market was reassured by the Fed’s commitment to its accommodative stance. The unmanaged Standard & Poor’s 500 Composite Index and Dow Jones Industrial Average hit fresh highs near the end of October. For the reporting period, the S&P 500 (a proxy for the domestic stock market) increased by 27.2%.

Many international markets finished the reporting period in positive territory, with developed markets leading the

American Funds Portfolio Series

way. Results in emerging markets were constrained by geopolitical concerns and stagnant growth in pivotal countries.

The bond market

Returns in most sectors of the bond market were muted for the reporting period, driven by economic events and reaction to the Fed. The summer saw a spike in volatility as investors became concerned that the Fed would soon curtail its monthly bond-buying programs, but by September many market segments rallied when it became clear that no action would be taken until the economy and employment showed sustained improvement. In addition, the Fed kept its target short-term interest rate near zero — where it has remained since late 2008 — in an ongoing effort to help boost economic activity. The high-yield bond sector proved to be a bright spot, with Barclays U.S. Corporate High Yield 2% Issuer Capped Index climbing 8.9%.

The series

Given the strength of the stock market rally, the series’ two growth-oriented portfolios — Global Growth Portfolio and Growth Portfolio — advanced to a significant degree. Underlying growth funds, like AMCAP Fund, aided results. The series’ Growth and Income Portfolio, Balanced Portfolio, Income Portfolio and Tax-Advantaged Income Portfolio also notched double-digit gains. Returns for the Preservation Portfolio and Tax-Exempt Preservation Portfolio were off slightly, reflecting the subdued results in the bond market. However, we remain committed to the belief that fixed-income holdings are vital for diversification, income and stability.

Moving forward

We are grateful that you have chosen to invest in American Funds Portfolio Series. Since its inception on May 18, 2012, more than 325,000 investors have opened accounts for a total of about $7.5 billion assets under management at the end of the reporting period. We warmly welcome our newest investors and, as always, we encourage all our investors to maintain a long-term perspective.

We thank you for your support and look forward to reporting to you again in six months’ time.

Cordially,




Bradley J. Vogt Vice Chairman of the Board	Walter R. Burkley President

December 11, 2013

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

2	American Funds Portfolio Series

Results at a glance

Average annual total returns for Class A shares, with all distributions reinvested,

for the periods ended October 31, 2013

				Lifetime
	1 year			(since 5/18/12)
American Funds Global Growth Portfolio		26.18	%		26.60	%
MSCI All Country World Index (ACWI)*^†		23.29			24.40
Lipper Global Funds Index		26.55			25.95

American Funds Growth Portfolio		28.45			26.98
Standard & Poor’s 500 Composite Index*		27.16			26.15
Lipper Growth Funds Index		31.09			28.11

American Funds Growth and Income Portfolio		20.01			20.76
Standard & Poor’s 500 Composite Index*		27.16			26.15
Lipper Growth and Income Funds Index		23.72			23.79

American Funds Balanced Portfolio		17.29			18.11
Standard & Poor’s 500 Composite Index*		27.16			26.15
Lipper Balanced Funds Index		15.28			15.81

American Funds Income Portfolio		12.19			13.26
Standard & Poor’s 500 Composite Index*		27.16			26.15
Lipper Income Funds Index		9.47			10.98

American Funds Tax-Advantaged Income Portfolio		11.28			13.27
Barclays Municipal Bond Index*		–1.72			0.55
Lipper Income Funds Index		9.47			10.98

American Funds Preservation Portfolio		–0.59			0.46
Barclays U.S. Government/Credit 1–7 Years ex BBB Index*		0.31			1.04
Lipper Short-Intermediate Investment-Grade Debt Funds Index		0.35			1.98

American Funds Tax-Exempt Preservation Portfolio		–0.48			1.11
Barclays Municipal Short-Intermediate 1–10 Years Index*		0.37			1.17
Lipper Intermediate Municipal Debt Funds Index		–1.00			0.71

^*	The market indexes are unmanaged and, therefore, have no expenses.
^†	Results reflect dividends net of withholding taxes.

The MSCI All Country World Index is a free float-adjusted market capitalization weighted index that is designed to measure results of more than 40 developed and emerging equity markets. The S&P 500 is a market capitalization-weighted index based on the average weighted results of 500 widely held common stocks.

Lipper Global Funds Index is an equally weighted index of funds that invest at least 25% of their portfolios in securities traded outside of the U.S. and may own U.S. securities as well. Lipper Growth Funds Index is an equally weighted index of growth funds. Lipper Growth and Income Funds Index is an equally weighted index of funds that combine a growth-of-earnings orientation and an income requirement for level and/or rising dividends. Lipper Balanced Funds Index is an equally weighted index of funds that seek to conserve principal by maintaining a balanced portfolio of both stocks and bonds. Lipper Income Funds Index is an equally weighted index of funds that normally seek a high level of current income through investing in income-producing stocks, bonds and money market instruments. Lipper Short-Intermediate Investment-Grade Debt Funds Index is an equally weighted index of funds that invest primarily in investment-grade debt issues (rated in the top four grades) with dollar-weighted average maturities of one to five years. Lipper Intermediate Municipal Debt Funds Index is an equally weighted index of funds that invest in municipal debt issues with dollar-weighted average maturities of five to 10 years.

Barclays Municipal Bond Index is a market-value-weighted index designed to represent the long-term investment-grade tax-exempt bond market. Barclays U.S. Government/Credit 1–7 Years ex BBB Index is a market-value-weighted index that tracks the total return results of fixed-rate, publicly placed, dollar-denominated obligations issued by the U.S. Treasury, U.S. government agencies, quasi-federal corporations, corporate or foreign debt guaranteed by the U.S. government, and U.S. corporate and foreign debentures and secured notes that meet specified maturity, liquidity and quality requirements, with maturities of one to seven years, excluding BBB-rated securities. Barclays Municipal Short-Intermediate 1–10 Years Index is a market-value-weighted index that includes investment-grade tax-exempt bonds with maturities of one to 10 years.

American Funds Portfolio Series

The value of a $10,000 investment

(for periods ended October 31, 2013, with all distributions reinvested)

Fund results shown are for Class A shares and reflect deduction of the maximum sales charge on the $10,000 investment: 5.75% (for Global Growth Portfolio, Growth Portfolio, Growth and Income Portfolio, Balanced Portfolio and Income Portfolio)¹; 3.75% (for Tax-Advantaged Income Portfolio)²; and 2.50% (for Preservation Portfolio and Tax-Exempt Preservation Portfolio).³

Global Growth Portfolio

Average annual total returns⁶based on a $1,000 investment

(for periods ended October 31, 2013)*

	1 year	Lifetime (since 5/18/12)

Class A shares	18.94%	21.55%

*	Assumes reinvestment of all distributions and payment of the maximum 5.75% sales charge.

Growth Portfolio

Average annual total returns⁶based on a $1,000 investment

(for periods ended October 31, 2013)*

	1 year	Lifetime (since 5/18/12)

Class A shares	21.09%	21.92%

*	Assumes reinvestment of all distributions and payment of the maximum 5.75% sales charge.

Growth and Income Portfolio

Average annual total returns⁶based on a $1,000 investment

(for periods ended October 31, 2013)*

	1 year	Lifetime (since 5/18/12)

Class A shares	13.15%	15.94%

*	Assumes reinvestment of all distributions and payment of the maximum 5.75% sales charge.

Balanced Portfolio

Average annual total returns⁶based on a $1,000 investment

(for periods ended October 31, 2013)*

	1 year	Lifetime (since 5/18/12)

Class A shares	10.54%	13.40%

*	Assumes reinvestment of all distributions and payment of the maximum 5.75% sales charge.

¹	As outlined in the prospectus, the sales charge is reduced for accounts (and aggregated investments) of $25,000 or more and is eliminated for purchases of $1 million or more.
²	As outlined in the prospectus, the sales charge is reduced for accounts (and aggregated investments) of $100,000 or more and is eliminated for purchases of $1 million or more.
³	As outlined in the prospectus, the sales charge is reduced for accounts (and aggregated investments) of $500,000 or more and is eliminated for purchases of $1 million or more.
⁴	The index is unmanaged and, therefore, has no expenses.
⁵	Results reflect dividends net of withholding taxes.

4	American Funds Portfolio Series

Thus, the net amount invested was $9,425, $9,625 and $9,750, respectively. 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. For current information and month-end results, visit americanfunds.com.

Income Portfolio

Average annual total returns⁶based on a $1,000 investment

(for periods ended October 31, 2013)*

	1 year	Lifetime (since 5/18/12)

Class A shares	5.78%	8.74%

*	Assumes reinvestment of all distributions and payment of the maximum 5.75% sales charge.

Tax-Advantaged Income Portfolio

Average annual total returns⁶based on a $1,000 investment

(for periods ended October 31, 2013)*

	1 year	Lifetime (since 5/18/12)

Class A shares	7.06%	10.33%

*	Assumes reinvestment of all distributions and payment of the maximum 3.75% sales charge.

Preservation Portfolio

Average annual total returns⁶based on a $1,000 investment

(for periods ended October 31, 2013)*

	1 year	Lifetime (since 5/18/12)

Class A shares	–3.09%	–1.30%

*	Assumes reinvestment of all distributions and payment of the maximum 2.50% sales charge.

Tax-Exempt Preservation Portfolio

Average annual total returns⁶based on a $1,000 investment

(for periods ended October 31, 2013)*

	1 year	Lifetime (since 5/18/12)

Class A shares	–2.98%	–0.66%

*	Assumes reinvestment of all distributions and payment of the maximum 2.50% sales charge.

⁶

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The portfolio series’ funds invest in Class R-6 shares of the underlying funds. The series’ investment adviser is currently waiving its management fee of 0.10%, and is reimbursing a portion of other expenses in all share classes for the Tax-Exempt Preservation Portfolio and the Preservation Portfolio. Investment results shown reflect the waiver and/or reimbursements, without which the results would have been lower. The waiver and reimbursements will remain in effect at least through December 31, 2014. After that time, the adviser may elect at its discretion to extend, modify or terminate the reimbursements. The waiver may only be modified or terminated with the approval of the fund board.

There is no sales charge on dividends or capital gain distributions that are reinvested in additional shares. The results shown are before taxes on fund distributions and sale of fund shares.

American Funds Portfolio Series

Invest in portfolios designed to pursue real-life objectives

Providing choices for investors

American Funds Portfolio Series was launched in May 2012 to help investors pursue preservation, balance and appreciation. Each of the eight funds in the series represents a blend of individual American Funds designed to help investors meet particular investment goals.

Experienced management

A Portfolio Oversight Committee actively monitors the series to keep the portfolios aligned with their objectives and to determine whether any changes to the underlying fund allocations are needed.

“With the portfolio series, what we’re really doing is answering a question we regularly receive from advisors, their clients, our friends and even our own family members: ‘Could you suggest a handful of your funds that would work well together?’ We’ve tried to create a spectrum of portfolios with complementary fund combinations designed to achieve specific investment objectives.”

Brad Vogt
26 years of investment experience*

*	As of the series prospectus dated January 1, 2014 (unaudited).

American Funds Global Growth Portfolio

Designed to help investors pursue long-term goals by investing in funds with exposure to companies located around the world.

Underlying funds:

30% Capital World Growth and Income Fund^®

30% New Perspective Fund^®

20% New World Fund^®

20% The New Economy Fund^®

American Funds Growth Portfolio

Seeks to help investors pursue longer term goals through exposure to a diverse mix of stocks of companies with strong growth potential.

Underlying funds:

30% AMCAP Fund^®

30% Fundamental Investors^®

25% EuroPacific Growth Fund^®

15% SMALLCAP World Fund^®

6	American Funds Portfolio Series

American Funds Growth and Income Portfolio

Seeks to help investors build assets over time through exposure to a wide range of stock investments, as well as income from dividend-paying companies and fixed-income securities.

Underlying funds:

25% Capital Income Builder^®

20% Capital World Growth and Income Fund^®

20% The Growth Fund of America^®

20% The Investment Company of America^®

15% Capital World Bond Fund^®

American Funds Balanced Portfolio

Offers exposure to a mix of global stocks and bonds that can temper the impact of volatility on an overall portfolio to help an investor pursue future needs and goals.

Underlying funds:

25% American Balanced Fund^®

25% The Bond Fund of America^®

20% New Perspective Fund^®

15% Capital World Growth and Income Fund^®

15% Washington Mutual Investors Fund^SM

American Funds Income Portfolio

With exposure to a diverse mix of stocks from dividend-paying companies and fixed-income securities, the portfolio seeks to provide income and long-term growth potential with lower volatility than the S&P 500.

Underlying funds:

20% American Mutual Fund^®

20% Capital Income Builder^®

20% The Income Fund of America^®

20% American High-Income Trust^®

20% U.S. Government Securities Fund^®

American Funds Tax-Advantaged Income Portfolio

Through exposure to a diverse mix of municipal bonds and dividend-paying companies, the portfolio seeks to help investors grow their assets while also providing some tax-exempt income.

Underlying funds:

25% Capital World Growth and Income Fund^®

25% Washington Mutual Investors Fund^SM

25% American High-Income Municipal Bond Fund^®

25% The Tax-Exempt Bond Fund of America^®

American Funds Preservation Portfolio

As part of a diversified investment strategy, this fund of funds seeks to provide investors with capital preservation and a source of current income to help cover unexpected expenses.

Underlying funds:

40% Intermediate Bond Fund of America^®

40% Short-Term Bond Fund of America^®

20% The Bond Fund of America^®

American Funds Tax-Exempt Preservation Portfolio

As part of a diversified investment strategy, this fund of funds seeks to provide investors with capital preservation and a source of tax-exempt income to help cover unexpected expenses.

Underlying funds:

70% Limited Term Tax-Exempt Bond Fund of America^®

30% The Tax-Exempt Bond Fund of America^®

The underlying fund allocations are as of 10/31/13. Portfolio Series funds are actively monitored, so allocations will vary over time.

American Funds Portfolio Series

American Funds Global Growth Portfolio

Investment portfolio, October 31, 2013

Fund investments	Shares		Value (000)		Percent of net assets
Growth funds 70.0%
The New Economy Fund, Class R-6	3,063,719	$	117,524		20.0	%
New Perspective Fund, Class R-6	4,650,130		176,287		30.0
New World Fund, Inc., Class R-6	1,972,546		117,524		20.0
			411,335		70.0

Growth-and-income funds 30.0%
Capital World Growth and Income Fund, Class R-6	4,000,146		176,286		30.0

Total investment securities (cost: $512,889,000)			587,621		100.0
Other assets less liabilities			(181	)	—

Net assets		$	587,440		100.0	%

See Notes to Financial Statements

8	American Funds Portfolio Series

American Funds Growth Portfolio

Investment portfolio, October 31, 2013

Fund investments	Shares		Value (000)		Percent of net assets
Growth funds 70.0%
AMCAP Fund, Class R-6	10,832,580	$	298,113		30.0	%
EuroPacific Growth Fund, Class R-6	5,197,221		248,427		25.0
SMALLCAP World Fund, Inc., Class R-6	2,994,903		149,056		15.0
			695,596		70.0

Growth-and-income funds 30.0%
Fundamental Investors, Class R-6	5,900,883		298,113		30.0

Total investment securities (cost: $860,206,000)			993,709		100.0
Other assets less liabilities			(309	)	—

Net assets		$	993,400		100.0	%

See Notes to Financial Statements

American Funds Portfolio Series

American Funds Growth and Income Portfolio

Investment portfolio, October 31, 2013

Fund investments	Shares		Value (000)		Percent of net assets
Growth funds 20.0%
The Growth Fund of America, Class R-6	9,002	$	393,665		20.0	%

Growth-and-income funds 40.0%
Capital World Growth and Income Fund, Class R-6	8,933		393,665		20.0
The Investment Company of America, Class R-6	10,509		393,665		20.0
			787,330		40.0

Equity-income and Balanced funds 25.0%
Capital Income Builder, Class R-6	8,446		492,082		25.0

Bond funds 15.0%
Capital World Bond Fund, Class R-6	14,402		295,249		15.0

Total investment securities (cost: $1,770,535,000)			1,968,326		100.0
Other assets less liabilities			(641	)	—

Net assets		$	1,967,685		100.0	%

See Notes to Financial Statements

10	American Funds Portfolio Series

American Funds Balanced Portfolio

Investment portfolio, October 31, 2013

Fund investments	Shares		Value (000)		Percent of net assets
Growth funds 20.0%
New Perspective Fund, Class R-6	7,997,120	$	303,171		20.0	%

Growth-and-income funds 30.0%
Capital World Growth and Income Fund, Class R-6	5,158,874		227,351		15.0
Washington Mutual Investors Fund, Class R-6	5,903,703		227,352		15.0
			454,703		30.0
Equity-income and Balanced funds 25.0%
American Balanced Fund, Class R-6	16,030,023		378,950		25.0

Bond funds 25.0%
The Bond Fund of America, Class R-6	30,147,830		379,561		25.0

Total investment securities (cost: $1,375,294,000)			1,516,385		100.0
Other assets less liabilities			(477	)	—

Net assets		$	1,515,908		100.0	%

See Notes to Financial Statements

American Funds Portfolio Series

American Funds Income Portfolio

Investment portfolio, October 31, 2013

Fund investments	Shares		Value (000)		Percent of net assets
Growth-and-income funds 20.0%
American Mutual Fund, Class R-6	8,593	$	294,554		20.0	%

Equity-income and Balanced funds 40.0%
Capital Income Builder, Class R-6	5,056		294,555		20.0
The Income Fund of America, Class R-6	14,496		294,555		20.0
			589,110		40.0

Bond funds 40.0%
American High-Income Trust, Class R-6	25,793		294,555		20.0
U.S. Government Securities Fund, Class R-6	21,237		294,555		20.0
			589,110		40.0

Total investment securities (cost: $1,390,312,000)			1,472,774		100.0
Other assets less liabilities			(509	)	—

Net assets		$	1,472,265		100.0	%

See Notes to Financial Statements

12	American Funds Portfolio Series

American Funds Tax-Advantaged Income Portfolio

Investment portfolio, October 31, 2013

Fund investments	Shares		Value (000)		Percent of net assets
Growth-and-income funds 50.0%
Capital World Growth and Income Fund, Class R-6	1,499,407	$	66,079		25.0	%
Washington Mutual Investors Fund, Class R-6	1,715,889		66,079		25.0
			132,158		50.0

Tax-exempt bond funds 50.0%
American High-Income Municipal Bond Fund, Class R-6	4,581,152		66,106		25.0
The Tax-Exempt Bond Fund of America, Class R-6	5,290,517		66,078		25.0
			132,184		50.0

Total investment securities (cost: $249,041,000)			264,342		100.0
Other assets less liabilities			(58	)	—

Net assets		$	264,284		100.0	%

See Notes to Financial Statements

American Funds Portfolio Series

American Funds Preservation Portfolio

Investment portfolio, October 31, 2013

Fund investments	Shares		Value (000)		Percent of net assets
Bond funds 100.0%
The Bond Fund of America, Class R-6	7,779,726	$	97,947		20.0	%
Intermediate Bond Fund of America, Class R-6	14,478,455		195,894		40.0
Short-Term Bond Fund of America, Class R-6	19,589,349		195,893		40.0

Total investment securities (cost: $495,480,000)			489,734		100.0
Other assets less liabilities			(317	)	—

Net assets		$	489,417		100.0	%

See Notes to Financial Statements

14	American Funds Portfolio Series

American Funds Tax-Exempt Preservation Portfolio

Investment portfolio, October 31, 2013

Fund investments	Shares		Value (000)		Percent of net assets
Tax-exempt bond funds 100.0%
Limited Term Tax-Exempt Bond Fund of America, Class R-6	7,623,294	$	122,202		70.0	%
The Tax-Exempt Bond Fund of America, Class R-6	4,193,117		52,372		30.0

Total investment securities (cost: $179,023,000)			174,574		100.0
Other assets less liabilities			(65	)	—

Net assets		$	174,509		100.0	%

See Notes to Financial Statements

American Funds Portfolio Series

Financial statements

Statements of assets and liabilities
at October 31, 2013

	Global Growth Portfolio			Growth Portfolio			Growth and Income Portfolio

Assets:
Investment securities, at value	$	587,621		$	993,709		$	1,968,326
Receivables for:
Sales of investments		—			—			—
Sales of fund’s shares		2,856			4,309			5,528
Dividends		—			—			—
Total assets		590,477			998,018			1,973,854

Liabilities:
Payables for:
Purchases of investments		2,566			3,911			4,510
Repurchases of fund’s shares		290			397			1,012
Services provided by related parties		174			298			628
Trustees’ deferred compensation		—	*		—	*		1
Other		7			12			18
Total liabilities		3,037			4,618			6,169
Net assets at October 31, 2013	$	587,440		$	993,400		$	1,967,685

Net assets consist of:
Capital paid in on shares of beneficial interest	$	511,236		$	856,246		$	1,766,419
Undistributed net investment income		891			665			1,508
Undistributed (accumulated) net realized gain (loss)		581			2,986			1,967
Net unrealized appreciation (depreciation)		74,732			133,503			197,791
Net assets at October 31, 2013	$	587,440		$	993,400		$	1,967,685
Investment securities, at cost	$	512,889		$	860,206		$	1,770,535

^*	Amount less than one thousand.

See Notes to Financial Statements

16	American Funds Portfolio Series

(dollars in thousands)

Balanced Portfolio			Income Portfolio		Tax-Advantaged Income Portfolio			Preservation Portfolio			Tax-Exempt Preservation Portfolio

$	1,516,385		$	1,472,774	$	264,342		$	489,734		$	174,574
	—			—		—			822			965
	3,326			4,713		1,140			825			127
	61			122		460			146			457
	1,519,772			1,477,609		265,942			491,527			176,123

	2,681			3,901		1,520			113			457
	645			884		80			1,773			1,092
	524			550		56			217			63
	—	*		1		—	*		—	*		—	*
	14			8		2			7			2
	3,864			5,344		1,658			2,110			1,614
$	1,515,908		$	1,472,265	$	264,284		$	489,417		$	174,509

$	1,373,992		$	1,386,799	$	248,582		$	496,007		$	180,669
	927			2,262		543			80			55
	(102	)		742		(142	)		(924	)		(1,766	)
	141,091			82,462		15,301			(5,746	)		(4,449	)
$	1,515,908		$	1,472,265	$	264,284		$	489,417		$	174,509
$	1,375,294		$	1,390,312	$	249,041		$	495,480		$	179,023

American Funds Portfolio Series

Statements of assets and liabilities
at October 31, 2013 (continued)

		Global Growth Portfolio		Growth Portfolio		Growth and Income Portfolio

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

Class A:	Net assets	$	376,948	$	646,413	$	1,394,069
	Shares outstanding		27,076		46,114		109,426
	Net asset value per share	$	13.92	$	14.02	$	12.74
Class B:	Net assets	$	1,795	$	4,674	$	9,863
	Shares outstanding		130		336		776
	Net asset value per share	$	13.81	$	13.89	$	12.71
Class C:	Net assets	$	61,707	$	108,168	$	237,496
	Shares outstanding		4,474		7,789		18,710
	Net asset value per share	$	13.79	$	13.89	$	12.69
Class F-1:	Net assets	$	22,907	$	19,066	$	32,573
	Shares outstanding		1,645		1,361		2,557
	Net asset value per share	$	13.92	$	14.01	$	12.74
Class F-2:	Net assets	$	20,566	$	31,290	$	32,850
	Shares outstanding		1,473		2,227		2,576
	Net asset value per share	$	13.96	$	14.05	$	12.75
Class 529-A:	Net assets	$	44,876	$	89,932	$	128,915
	Shares outstanding		3,225		6,418		10,122
	Net asset value per share	$	13.91	$	14.01	$	12.74
Class 529-B:	Net assets	$	565	$	896	$	1,398
	Shares outstanding		41		65		110
	Net asset value per share	$	13.80	$	13.89	$	12.71
Class 529-C:	Net assets	$	16,092	$	32,778	$	55,610
	Shares outstanding		1,168		2,362		4,381
	Net asset value per share	$	13.78	$	13.88	$	12.69
Class 529-E:	Net assets	$	1,676	$	4,826	$	6,206
	Shares outstanding		121		346		488
	Net asset value per share	$	13.88	$	13.96	$	12.72
Class 529-F-1:	Net assets	$	1,162	$	4,311	$	10,000
	Shares outstanding		83		307		784
	Net asset value per share	$	13.94	$	14.04	$	12.75
Class R-1:	Net assets	$	740	$	2,447	$	3,936
	Shares outstanding		54		176		310
	Net asset value per share	$	13.81	$	13.90	$	12.70
Class R-2:	Net assets	$	6,809	$	13,430	$	17,575
	Shares outstanding		493		966		1,385
	Net asset value per share	$	13.80	$	13.90	$	12.69
Class R-3:	Net assets	$	6,460	$	8,931	$	13,492
	Shares outstanding		466		639		1,061
	Net asset value per share	$	13.86	$	13.97	$	12.72
Class R-4:	Net assets	$	1,557	$	2,389	$	2,308
	Shares outstanding		112		170		181
	Net asset value per share	$	13.93	$	14.02	$	12.74
Class R-5:	Net assets	$	20,587	$	20,387	$	19,937
	Shares outstanding		1,474		1,450		1,563
	Net asset value per share	$	13.97	$	14.06	$	12.76
Class R-6:	Net assets	$	2,993	$	3,462	$	1,457
	Shares outstanding		214		246		114
	Net asset value per share	$	14.02	$	14.07	$	12.75

See Notes to Financial Statements

18	American Funds Portfolio Series

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

Balanced Portfolio		Income Portfolio		Tax-Advantaged Income Portfolio		Preservation Portfolio		Tax-Exempt Preservation Portfolio

$	1,010,259	$	1,066,759	$	220,482	$	332,931	$	122,445
	81,236		93,126		19,107		33,581		12,485
$	12.44	$	11.46	$	11.54	$	9.91	$	9.81
$	6,636	$	6,237	$	225	$	2,357	$	111
	535		546		20		238		11
$	12.41	$	11.43	$	11.52	$	9.91	$	9.82
$	196,946	$	214,367	$	27,188	$	67,237	$	38,342
	15,894		18,780		2,365		6,789		3,914
$	12.39	$	11.41	$	11.50	$	9.90	$	9.80
$	39,594	$	41,800	$	10,831	$	5,699	$	5,324
	3,184		3,648		939		575		543
$	12.43	$	11.46	$	11.54	$	9.91	$	9.81
$	29,111	$	35,534	$	5,558	$	6,072	$	8,287
	2,339		3,099		481		613		845
$	12.45	$	11.46	$	11.54	$	9.91	$	9.81
$	89,698	$	38,848			$	32,550
	7,215		3,392				3,284
$	12.43	$	11.45			$	9.91
$	982	$	666			$	500
	79		58				51
$	12.41	$	11.43			$	9.92
$	43,459	$	29,463			$	17,406
	3,506		2,582				1,757
$	12.40	$	11.41			$	9.91
$	3,297	$	2,648			$	2,075
	265		231				209
$	12.42	$	11.44			$	9.91
$	9,325	$	2,293			$	5,711
	749		200				576
$	12.44	$	11.46			$	9.91
$	4,312	$	783			$	633
	348		69				64
$	12.40	$	11.42			$	9.91
$	15,102	$	9,757			$	5,702
	1,218		854				576
$	12.40	$	11.42			$	9.90
$	18,071	$	6,348			$	4,717
	1,455		555				476
$	12.42	$	11.45			$	9.91
$	24,301	$	6,417			$	1,471
	1,954		560				148
$	12.44	$	11.46			$	9.92
$	14,689	$	8,539			$	4,246
	1,180		745				428
$	12.45	$	11.47			$	9.91
$	10,126	$	1,806			$	110
	813		157				11
$	12.45	$	11.47			$	9.91

American Funds Portfolio Series

Statements of operations
for the year ended October 31, 2013

	Global Growth Portfolio		Growth Portfolio			Growth and Income Portfolio
Investment income:
Dividends	$	3,856	$	5,392		$	28,730
Interest		8		17			23
		3,864		5,409			28,753
Fees and expenses^†:
Investment advisory services		308		528			1,139
Distribution services		993		1,691			3,700
Transfer agent services		297		517			1,120
Reports to shareholders		17		29			62
Registration statement and prospectus		171		185			245
Trustees’ compensation		1		2			5
Auditing and legal		5		7			13
Custodian		20		20			20
State and local taxes		—		—			—
Other		37		79			130
Total fees and expenses before reimbursements/waivers		1,849		3,058			6,434
Less reimbursements/waivers of fees and expenses:
Investment advisory services		308		528			1,139
Other		—		—			—
Total fees and expenses after reimbursements/waivers		1,541		2,530			5,295
Net investment income		2,323		2,879			23,458

Net realized gain (loss) and unrealized appreciation (depreciation) on investments:
Net realized gain (loss) on sale of investments		1		—	*		—
Capital gain distributions received		785		3,333			2,674
Net realized gain (loss)		786		3,333			2,674
Net unrealized appreciation (depreciation) on investments		69,290		126,286			187,635
Net realized gain (loss) and unrealized appreciation (depreciation) on investments		70,076		129,619			190,309
Net increase (decrease) in net assets resulting from operations	$	72,399	$	132,498		$	213,767

^*	Amount less than one thousand.
^†	Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements.

See Notes to Financial Statements

20	American Funds Portfolio Series

(dollars in thousands)

Balanced Portfolio			Income Portfolio			Tax-Advantaged Income Portfolio			Preservation Portfolio			Tax-Exempt Preservation Portfolio

$	19,527		$	35,351		$	6,142		$	6,549		$	5,381
	28			4			2			3			—	*
	19,555			35,355			6,144			6,552			5,381

	929			968			181			426			180
	3,158			3,553			626			1,642			763
	924			969			179			439			185
	51			53			10			25			11
	237			259			93			234			97
	4			5			1			3			1
	11			10			4			5			3
	20			20			20			20			20
	—			—			—			—			7
	104			57			1			50			2

	5,438			5,894			1,115			2,844			1,269

	929			968			181			426			180
	—			—			—			76			55
	4,509			4,926			934			2,342			1,034
	15,046			30,429			5,210			4,210			4,347

	(6	)		(43	)		(52	)		(922	)		(1,777	)
	—			2,827			—			—			18
	(6	)		2,784			(52	)		(922	)		(1,759	)
	132,399			76,562			12,560			(6,315	)		(5,164	)
	132,393			79,346			12,508			(7,237	)		(6,923	)
$	147,439		$	109,775		$	17,718		$	(3,027	)	$	(2,576	)

American Funds Portfolio Series

Statements of changes in net assets

		Global Growth Portfolio						Growth Portfolio						Growth and Income Portfolio
		Year ended October 31, 2013			Period ended October 31, 2012*			Year ended October 31, 2013			Period ended October 31, 2012*			Year ended October 31, 2013			Period ended October 31, 2012*
Operations:
Net investment income	$	2,323		$	146		$	2,879		$	99		$	23,458		$	1,734
Net realized gain (loss)		786			(7	)		3,333			(186	)		2,674			(93	)
Net unrealized appreciation (depreciation) on investments		69,290			5,442			126,286			7,217			187,635			10,156

Net increase (decrease) in net assets resulting from operations		72,399			5,581			132,498			7,130			213,767			11,797

Dividends and distributions paid to shareholders:
Dividends from net investment income		(1,568	)		—			(2,296	)		—			(22,744	)		(1,305	)
Distributions from net realized gain on investments		(57	)		—			—			—			—			—
Total dividends and distributions paid to shareholders		(1,625	)		—			(2,296	)		—			(22,744	)		(1,305	)

Net capital share transactions		428,990			82,095			691,573			164,495			1,353,734			412,436

Total increase in net assets		499,764			87,676			821,775			171,625			1,544,757			422,928

Net assets:
Beginning of period		87,676			—			171,625			—			422,928			—
End of period	$	587,440		$	87,676		$	993,400		$	171,625		$	1,967,685		$	422,928

Undistributed net investment income	$	891		$	145		$	665		$	94		$	1,508		$	425

*	For the period May 18, 2012, commencement of operations, through October 31, 2012.

See Notes to Financial Statements

22	American Funds Portfolio Series

(dollars in thousands)

	Balanced Portfolio						Income Portfolio						Tax-Advantaged Income Portfolio						Preservation Portfolio						Tax-Exempt Preservation Portfolio
	Year ended			Period ended			Year ended			Period ended			Year ended			Period ended			Year ended			Period ended			Year ended			Period ended
	October 31,			October 31,			October 31,			October 31,			October 31,			October 31,			October 31,			October 31,			October 31,			October 31,
	2013			2012*			2013			2012*			2013			2012*			2013			2012*			2013			2012*

$	15,046		$	1,215		$	30,429		$	3,073		$	5,210		$	759		$	4,210		$	643		$	4,347		$	775
	(6	)		(96	)		2,784			(55	)		(52	)		16			(922	)		1			(1,759	)		38
	132,399			8,692			76,562			5,900			12,560			2,741			(6,315	)		569			(5,164	)		715

	147,439			9,811			109,775			8,918			17,718			3,516			(3,027	)		1,213			(2,576	)		1,528

	(14,398	)		(902	)		(30,515	)		(2,309	)		(4,843	)		(582	)		(4,213	)		(560	)		(4,352	)		(718	)
	—			—			—			—			(51	)		—			—			—			—			—
	(14,398	)		(902	)		(30,515	)		(2,309	)		(4,894	)		(582	)		(4,213	)		(560	)		(4,352	)		(718	)

	1,024,039			349,919			965,081			421,315			173,334			75,192			255,789			240,215			66,660			113,967

	1,157,080			358,828			1,044,341			427,924			186,158			78,126			248,549			240,868			59,732			114,777

	358,828			—			427,924			—			78,126			—			240,868			—			114,777			—
$	1,515,908		$	358,828		$	1,472,265		$	427,924		$	264,284		$	78,126		$	489,417		$	240,868		$	174,509		$	114,777

$	927		$	307		$	2,262		$	765		$	543		$	177		$	80		$	86		$	55		$	56

American Funds Portfolio Series

Notes to financial statements

1. Organization

American Funds Portfolio Series (the “series”) is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The series consists of eight funds (the “funds”). The assets of each fund are segregated, with each fund accounted for separately. The funds’ investment objectives are as follows:

American Funds Global Growth Portfolio		Seeks long-term growth of capital.
American Funds Growth Portfolio		Seeks long-term growth of capital.
American Funds Growth and Income Portfolio		Seeks long-term growth of capital while providing current income.
American Funds Balanced Portfolio		Seeks current income and long-term growth of capital and income.
American Funds Income Portfolio		Seeks current income and, secondarily, long-term growth of capital.
American Funds Tax-Advantaged Income Portfolio		Seeks current income, a portion of which is exempt from regular federal income tax, while secondarily striving for long-term growth of capital.
American Funds Preservation Portfolio		Seeks current income, consistent with the preservation of capital.
American Funds Tax-Exempt Preservation Portfolio		Seeks current income that is exempt from regular federal income tax, consistent with preservation of capital.

Each fund will attempt to achieve its investment objectives by investing in a mix of American Funds (the “underlying funds”) in different combinations and weightings. Capital Research and Management Company (“CRMC”), the series’ investment adviser, is also the investment adviser of the underlying funds.

The Global Growth Portfolio, Growth Portfolio, Growth and Income Portfolio, Balanced Portfolio, Income Portfolio and Preservation Portfolio each have 16 share classes consisting of five retail share classes (Classes A, B and C, as well as two F share classes, F-1 and F-2), five 529 college savings plan share classes (Classes 529-A, 529-B, 529-C, 529-E and 529-F-1) and six retirement plan share classes (Classes R-1, R-2, R-3, R-4, 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 Tax-Advantaged Income Portfolio and Tax-Exempt Preservation Portfolio each have five retail share classes (Classes A, B and C, as well as two F share classes, F-1 and F-2). The funds’ share classes are further described below:

		Contingent deferred
		sales charge
Share class	Initial sales charge	upon redemption	Conversion feature
Classes A and 529-A	Up to 2.50% for Preservation Portfolio and Tax-Exempt Preservation Portfolio; up to 3.75% for Tax-Advantaged Income Portfolio; up to 5.75% for all other funds	None (except 1% for certain redemptions within one year of purchase without an initial sales charge)	None
Classes B and 529-B*	None	Declines from 5% to 0% for redemptions within six years of purchase	Classes B and 529-B convert to Classes A and 529-A, respectively, after eight years
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	None
Class 529-E	None	None	None
Classes F-1, F-2 and 529-F-1	None	None	None
Classes R-1, R-2, R-3, R-4, R-5 and R-6	None	None	None

*	Class B and 529-B shares of the funds are not available for purchase.

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

24	American Funds Portfolio Series

2. Significant accounting policies

Each fund’s financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The funds follow the significant accounting policies described below, 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 funds as of the date the trades are executed. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis.

Fees and expenses — The fees and expenses of the underlying funds are not included in the fees and expenses reported for each of the funds; however, they are indirectly reflected in the valuation of each of the underlying funds. These fees are included in the net effective expense ratios that are provided as supplementary information in the Financial Highlights tables on pages 42 to 49.

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

Dividends and distributions to shareholders — Dividends and distributions to shareholders are recorded on each fund’s ex-dividend date.

3. Valuation

Security valuation — The value of each underlying fund is calculated based on the policies and procedures of the underlying fund contained in each underlying fund’s statement of additional information. Generally, the funds and the underlying funds determine the net asset value of each share class as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open.

Processes and structure — The series’ board of trustees has delegated authority to the funds’ 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 series’ board and audit committee also regularly review reports that describe fair value determinations and methods. 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 series’ investment adviser classifies each fund’s assets and liabilities into three levels based on the method used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Level 3 values are based on significant unobservable inputs that reflect the 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. At October 31, 2013, all of the investment securities for each fund were classified as Level 1.

4. Risk factors

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

Allocation risk — Investments in the funds are subject to risks related to the investment adviser’s allocation choices. The selection of the underlying funds and the allocation of the funds’ assets could cause the funds to lose value or their results to lag relevant benchmarks or other funds with similar objectives.

Fund structure — The funds invest in underlying funds and incur expenses related to the underlying funds. In addition, investors in the funds will incur fees to pay for certain expenses related to the operations of the funds. An investor holding the underlying funds

American Funds Portfolio Series

directly and in the same proportions as the funds would incur lower overall expenses but would not receive the benefit of the portfolio management and other services provided by the funds.

Because the funds’ investments consist of underlying funds, the funds’ risks are directly related to the risks of the underlying funds. For this reason, it is important to understand the risks associated with investing in the underlying funds.

Market conditions — The prices of, and the income generated by, the common stocks, bonds and other securities held by the underlying funds may decline due to market conditions and other factors, including those directly involving the issuers of securities held by the underlying funds.

Investing in stocks — Investing in stocks may involve larger price swings and greater potential for loss than other types of investments. As a result, the value of the underlying funds may be subject to sharp, short-term declines in value. Income provided by an underlying fund may be reduced by changes in the dividend policies of, and the capital resources available at, the companies in which the underlying fund invests.

Investing in growth-oriented stocks — Growth-oriented stocks may involve larger price swings and greater potential for loss than other types of investments.

Investing in income-oriented stocks — Income provided by an underlying fund may be reduced by changes in the dividend policies of, and the capital resources available at, the companies in which the underlying fund invests.

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

Bonds and other debt securities are 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. Credit risk is gauged, in part, by the credit ratings of the debt securities in which the underlying 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 funds’ investment adviser relies on its own credit analysts to research issuers and issues in seeking to mitigate various credit and default risks.

Investing in lower rated bonds — Lower rated bonds and other lower rated debt securities generally have higher rates of interest and involve greater risk of default or price declines due to changes in the issuer’s creditworthiness than those of higher quality debt securities. The market prices of these securities may fluctuate more than the prices of higher quality debt securities and may decline significantly in periods of general economic difficulty. These risks may be increased with respect to investments in bonds rated Ba1 or BB+ or below by Nationally Recognized Statistical Rating Organizations or unrated but determined by the underlying fund’s investment adviser to be of equivalent quality. Such securities are considered speculative and are sometimes referred to as “junk bonds.” The value of the underlying funds may be similarly affected.

Investing in small companies — Investing in smaller companies may pose additional risks. For example, it is often more difficult to value or dispose of small company stocks and more difficult to obtain information about smaller companies than about larger companies. In addition, the prices of these stocks may be more volatile than stocks of larger, more established companies.

Investing outside the U.S. — Securities of issuers domiciled outside the U.S., or with significant operations outside the U.S., may lose value because of adverse political, social, economic or market developments in the countries or regions in which the issuers operate. 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. 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 settlement and accounting practices and different regulatory, legal and reporting standards, and may be more difficult to value, than those in the U.S. The risks of investing outside the U.S. may be heightened in connection with investments in emerging markets.

Investing in emerging markets — Investing in emerging markets may involve risks in addition to and greater than those generally associated with investing in the securities markets of developed countries. For instance, developing countries may have less developed legal and accounting systems than those in developed countries. The governments of these countries may be less stable and more likely to impose capital controls, nationalize a company or industry, place restrictions on foreign ownership and on withdrawing sale

26	American Funds Portfolio Series

proceeds of securities from the country, and/or impose punitive taxes that could adversely affect the prices of securities. In addition, the economies of these countries may be dependent on relatively few industries that are more susceptible to local and global changes. Securities markets in these countries can also be relatively small and have substantially lower trading volumes. As a result, securities issued in these countries may be more volatile and less liquid, and may be more difficult to value, than securities issued in countries with more developed economies and/or markets. Additionally, there may be increased settlement risks for transactions in local securities.

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

Investing in mortgage-backed and asset-backed securities — Many types of bonds and other debt securities, including mortgage-backed securities, are subject to prepayment risk as well as the risks associated with investing in debt securities in general. If interest rates fall and the loans underlying these securities are prepaid faster than expected, the underlying fund may have to reinvest the prepaid principal in lower yielding securities, thus reducing the fund’s income. Conversely, if interest rates increase and the loans underlying the securities are prepaid more slowly than expected, the time in which the securities are expected to be paid off could be extended. This may reduce the fund’s cash for potential reinvestment in higher yielding securities.

Thinly traded securities — There may be little trading in the secondary market for particular bonds or other debt securities, which may make them more difficult to value, acquire or sell.

Credit and liquidity support — Changes in the credit quality of banks and financial institutions providing credit and liquidity support features with respect to securities held by the underlying fund could cause the values of these securities to decline.

Investing in similar municipal bonds — Investing significantly in municipal obligations of issuers in the same state or backed by revenues of similar types of projects or industries may make an underlying fund more susceptible to certain economic, political or regulatory occurrences. As a result, the potential for fluctuations in the underlying fund’s share price may increase.

Management — The investment adviser to the funds and to the underlying funds actively manages each underlying fund’s investments. Consequently, the underlying funds are 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 an underlying fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.

5. Taxation and distributions

Federal income taxation — Each fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and each intends to distribute substantially all of its net income and net capital gains each year. The funds are not subject to income taxes to the extent taxable income and net capital gains are distributed.

As of and during the period ended October 31, 2013, none of the funds had a liability for any unrecognized tax benefits. Each fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statements of operations. During the period, none of the funds incurred any interest or penalties.

The series is not subject to examination by U.S. federal and state tax authorities for tax years before 2012, the year the series commenced operations.

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; deferred expenses; and net capital losses. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the funds for financial reporting purposes. The funds may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.

American Funds Portfolio Series

As of October 31, 2013, the tax basis components of distributable earnings, unrealized appreciation (depreciation) and cost of investment securities for each fund were as follows (dollars in thousands):

	Global						Growth and									Tax- Advantaged						Tax-Exempt
	Growth			Growth			Income			Balanced			Income			Income			Preservation			Preservation
	Portfolio			Portfolio			Portfolio			Portfolio			Portfolio			Portfolio			Portfolio			Portfolio
Undistributed ordinary income	$	891		$	665		$	1,508		$	928		$	2,262		$	220		$	81		$	—
Undistributed tax-exempt income		—			—			—			—			—			322			—			55
Undistributed long-term capital gain		685			3,177			2,059			—			841			—			—			—
Capital loss carryforward		—			—			—			(1	)		—			—			(18	)		(1,219	)
Capital loss carryforward utilized		—			—			1			—			—			—			—			—
Gross unrealized appreciation on investment securities		74,628			133,312			201,573			146,108			89,502			20,995			—			—
Gross unrealized depreciation on investment securities		—			—			(3,874	)		(5,118	)		(7,138	)		(5,836	)		(6,652	)		(4,997	)
Net unrealized appreciation (depreciation) on investment securities		74,628			133,312			197,699			140,990			82,364			15,159			(6,652	)		(4,997	)
Cost of investment securities		512,993			860,397			1,770,627			1,375,395			1,390,410			249,183			496,386			179,571
Reclassification to (from) undistributed net investment income from (to) undistributed net realized gain		(1	)		5			391			—			1,587			—			—			—
Reclassification to (from) undistributed net investment income from (to) capital paid in on shares of beneficial interest		(8	)		(17	)		(22	)		(28	)		(4	)		(1	)		(3	)		4
Reclassification to (from) undistributed net realized gain/accumulated net realized loss from (to) capital paid in on shares of beneficial interest		(99	)		(156	)		(223	)		—			(399	)		(25	)		—			—

The tax character of distributions paid to shareholders from ordinary and/or tax-exempt income were as follows (dollars in thousands):

	Global Growth Portfolio					Growth Portfolio				Growth and Income Portfolio					Balanced Portfolio
	Year ended			Period ended		Year ended		Period ended		Year ended		Period ended			Year ended		Period ended
	October 31,			October 31,		October 31,		October 31,		October 31,		October 31,			October 31,		October 31,
	2013			2012*		2013		2012*		2013		2012*			2013		2012*
Class A	$	1,014		$	—	$	1,500	$	—	$	17,103	$	1,009		$	10,395	$	655
Class B		5			—		13		—		103		9			51		5
Class C		127			—		168		—		1,753		74			1,123		62
Class F-1		31			—		49		—		348		19			335		11
Class F-2		43			—		38		—		342		11			321		15
Class 529-A		174			—		278		—		1,725		100			1,071		85
Class 529-B		2			—		3		—		15		1			7		1
Class 529-C		34			—		79		—		478		27			265		21
Class 529-E		3			—		13		—		68		4			33		2
Class 529-F-1		7			—		14		—		115		3			95		4
Class R-1		2			—		10		—		41		2			31		1
Class R-2		10			—		19		—		116		2			85		3
Class R-3		9			—		6		—		131		4			156		11
Class R-4		9			—		6		—		20		—	^†		133		2
Class R-5		155			—		99		—		376		40			188		24
Class R-6		—	^†		—		1		—		10		—	^†		109		—	^†
Total	$	1,625		$	—	$	2,296	$	—	$	22,744	$	1,305		$	14,398	$	902

28	American Funds Portfolio Series

	Income Portfolio					Tax-Advantaged Income Portfolio					Preservation Portfolio					Tax-Exempt Preservation Portfolio
	Year ended		Period ended			Year ended		Period ended			Year ended		Period ended			Year ended		Period ended
	October 31,		October 31,			October 31,		October 31,			October 31,		October 31,			October 31,		October 31,
	2013		2012*			2013		2012*			2013		2012*			2013		2012*
Class A	$	22,756	$	1,728		$	4,230	$	526		$	3,296	$	430		$	3,108	$	528
Class B		119		13			4		—	^†		9		1			2		—	^†
Class C		3,636		250			367		30			224		31			699		83
Class F-1		1,015		99			182		18			75		17			211		45
Class F-2		767		46			111		8			80		14			332		62
Class 529-A		886		70								303		40
Class 529-B		13		1								1		—	^†
Class 529-C		511		40								43		5
Class 529-E		65		5								17		3
Class 529-F-1		59		3								39		3
Class R-1		14		1								3		—	^†
Class R-2		149		6								16		2
Class R-3		133		10								30		1
Class R-4		137		5								17		—	^†
Class R-5		234		32								56		13
Class R-6		21		—	^†							4		—	^†
Total	$	30,515	$	2,309		$	4,894	$	582		$	4,213	$	560		$	4,352	$	718

*	For the period May 18, 2012, commencement of operations, through October 31, 2012.
^†	Amount less than one thousand.

6. Fees and transactions with related parties

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

Investment advisory services — The series has an investment advisory and service agreement with CRMC that provides for monthly fees, accrued daily. These fees are based on an annual rate of 0.10% of daily net assets. CRMC is currently waiving these fees. This waiver can only be modified or terminated with the approval of the series’ board of trustees. Investment advisory services fees are presented in the statements of operations gross of the waiver from CRMC. CRMC receives fees from the underlying funds for investment advisory services. These fees are included in the net effective expense ratios that are provided as supplementary information in the Financial Highlights tables on pages 42 to 49.

Other reimbursements — CRMC has agreed to reimburse a portion of the fees and expenses of Preservation Portfolio and Tax-Exempt Preservation Portfolio during their startup period. At its discretion the adviser may elect to extend, modify or terminate the reimbursements. Fees and expenses in the statements of operations are presented gross of the reimbursement from CRMC. The amounts reimbursed by CRMC are reflected as other reimbursements.

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

Distribution services — The series has plans of distribution for all share classes, except Class F-2, 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 on the following page. 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.

American Funds Portfolio Series

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

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 limit of 0.30% is not exceeded. As of October 31, 2013, unreimbursed expenses subject to reimbursement for the funds’ Class A and 529-A shares were as follows (dollars in thousands):

	Class A		Class 529-A
Global Growth Portfolio	$	—	$	—
Growth Portfolio		—		—
Growth and Income Portfolio		—		—
Balanced Portfolio		—		—
Income Portfolio		—		—
Tax-Advantaged Income Portfolio		—	Not applicable
Preservation Portfolio		—		—
Tax-Exempt Preservation Portfolio		228	Not applicable

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

Administrative services — The series has an administrative services agreement with CRMC for providing administrative services to all of the funds’ share classes. These services include, but are not limited to, coordinating, monitoring, assisting and overseeing third parties that provide services to fund shareholders. CRMC receives administrative services fees of 0.05% of average daily net assets from the Class R-6 shares of the underlying funds for administrative services provided to the series.

529 plan services — For funds with 529 share classes, each 529 share class is subject to service fees to compensate the Commonwealth of Virginia for the maintenance 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 $30 billion of the net assets invested in Class 529 shares of the American Funds and decreasing to 0.06% on such assets between $120 billion and $150 billion. The fee for any given calendar quarter is accrued and calculated on the basis of the average net assets of Class 529 shares of the American Funds for the last month of the prior calendar quarter. The fee is included in other expenses on the accompanying financial statements. The Commonwealth of Virginia is not considered a related party.

30	American Funds Portfolio Series

Class-specific expenses under the agreements described on the previous page for the year ended October 31, 2013, were as follows:

	Distribution		Transfer agent		529 plan
	services		services		services
Global Growth Portfolio
Class A		$467,318		$181,193	Not applicable
Class B		11,136		1,240	Not applicable
Class C		310,729		29,120	Not applicable
Class F-1		29,729		13,598	Not applicable
Class F-2		Not applicable		10,616	Not applicable
Class 529-A		33,535		26,478	$26,034
Class 529-B		3,120		326	306
Class 529-C		84,198		7,888	8,239
Class 529-E		3,818		448	747
Class 529-F-1		—		693	733
Class R-1		4,001		373	Not applicable
Class R-2		25,108		11,856	Not applicable
Class R-3		17,466		5,762	Not applicable
Class R-4		2,415		652	Not applicable
Class R-5		Not applicable		6,804	Not applicable
Class R-6		Not applicable		144	Not applicable
Total class-specific expenses		$992,573		$297,191	$36,059

Growth Portfolio
Class A		$714,150		$319,220	Not applicable
Class B		30,337		3,385	Not applicable
Class C		541,314		50,629	Not applicable
Class F-1		25,375		11,633	Not applicable
Class F-2		Not applicable		18,865	Not applicable
Class 529-A		73,419		52,579	$51,623
Class 529-B		6,435		674	631
Class 529-C		197,241		18,943	19,316
Class 529-E		12,197		1,439	2,387
Class 529-F-1		—		1,988	2,109
Class R-1		16,054		1,502	Not applicable
Class R-2		45,812		21,497	Not applicable
Class R-3		25,235		8,398	Not applicable
Class R-4		2,981		767	Not applicable
Class R-5		Not applicable		5,878	Not applicable
Class R-6		Not applicable		101	Not applicable
Total class-specific expenses		$1,690,550		$517,498	$76,066

Growth and Income Portfolio
Class A		$1,683,246		$778,252	Not applicable
Class B		70,375		7,943	Not applicable
Class C		1,255,895		118,489	Not applicable
Class F-1		42,052		19,082	Not applicable
Class F-2		Not applicable		17,247	Not applicable
Class 529-A		133,449		82,199	$79,957
Class 529-B		10,266		1,074	1,006
Class 529-C		352,544		34,114	34,528
Class 529-E		18,727		2,289	3,666
Class 529-F-1		—		4,605	5,042
Class R-1		25,653		2,508	Not applicable
Class R-2		66,727		31,818	Not applicable
Class R-3		37,928		12,786	Not applicable
Class R-4		2,642		656	Not applicable
Class R-5		Not applicable		7,201	Not applicable
Class R-6		Not applicable		67	Not applicable
Total class-specific expenses		$3,699,504		$1,120,330	$124,199

American Funds Portfolio Series

	Distribution		Transfer agent		529 plan
	services		services		services
Balanced Portfolio
Class A		$1,344,224		$602,327	Not applicable
Class B		50,981		5,808	Not applicable
Class C		1,126,333		107,577	Not applicable
Class F-1		54,369		24,955	Not applicable
Class F-2		Not applicable		19,454	Not applicable
Class 529-A		95,804		65,097	$62,220
Class 529-B		8,118		868	796
Class 529-C		287,359		27,893	28,150
Class 529-E		11,428		1,411	2,237
Class 529-F-1		—		4,378	4,761
Class R-1		32,976		3,294	Not applicable
Class R-2		65,672		31,778	Not applicable
Class R-3		60,613		20,575	Not applicable
Class R-4		20,570		3,890	Not applicable
Class R-5		Not applicable		4,581	Not applicable
Class R-6		Not applicable		595	Not applicable
Total class-specific expenses		$3,158,447		$924,481	$98,164

Income Portfolio
Class A		$1,696,532		$683,288	Not applicable
Class B		45,823		5,159	Not applicable
Class C		1,377,073		133,338	Not applicable
Class F-1		75,529		35,550	Not applicable
Class F-2		Not applicable		24,531	Not applicable
Class 529-A		57,099		28,195	$27,028
Class 529-B		5,298		564	519
Class 529-C		202,137		19,829	19,800
Class 529-E		10,662		1,338	2,088
Class 529-F-1		—		1,533	1,608
Class R-1		5,110		512	Not applicable
Class R-2		42,365		20,560	Not applicable
Class R-3		24,591		8,615	Not applicable
Class R-4		10,336		2,876	Not applicable
Class R-5		Not applicable		3,200	Not applicable
Class R-6		Not applicable		69	Not applicable
Total class-specific expenses		$3,552,555		$969,157	$51,043

Tax-Advantaged Income Portfolio
Class A		$436,728		$150,014
Class B		1,718		192
Class C		170,852		16,603
Class F-1		16,570		7,917
Class F-2		Not applicable		4,117
Total class-specific expenses		$625,868		$178,843

32	American Funds Portfolio Series

	Distribution		Transfer agent		529 plan
	services		services		services
Preservation Portfolio
Class A		$765,205		$291,158	Not applicable
Class B		24,445		2,821	Not applicable
Class C		559,361		55,440	Not applicable
Class F-1		17,556		8,638	Not applicable
Class F-2		Not applicable		6,626	Not applicable
Class 529-A		52,619		28,782	$27,003
Class 529-B		5,238		574	514
Class 529-C		144,800		14,455	14,193
Class 529-E		10,397		1,350	2,037
Class 529-F-1		—		2,683	2,899
Class R-1		7,280		716	Not applicable
Class R-2		34,204		16,807	Not applicable
Class R-3		17,200		5,520	Not applicable
Class R-4		3,720		1,119	Not applicable
Class R-5		Not applicable		2,015	Not applicable
Class R-6		Not applicable		82	Not applicable
Total class-specific expenses		$1,642,025		$438,786	$46,646

Tax-Exempt Preservation Portfolio
Class A		$364,449		$121,731
Class B		1,292		151
Class C		375,750		37,724
Class F-1		21,625		10,722
Class F-2		Not applicable		14,191
Total class-specific expenses		$763,116		$184,519

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 funds, are treated as if invested in shares of the American Funds. These amounts represent general, unsecured liabilities of the funds and vary according to the total returns of the selected American Funds. Trustees’ compensation on the accompanying financial statements includes current fees (either paid in cash or deferred) and a net increase in the value of the deferred amounts as follows:

			Increase in
			value of		Total
	Current fees		deferred amounts		trustees’ compensation
Global Growth Portfolio	$	1,249	$	24	$	1,273
Growth Portfolio		2,225		43		2,268
Growth and Income Portfolio		5,117		101		5,218
Balanced Portfolio		4,297		84		4,381
Income Portfolio		4,768		94		4,862
Tax-Advantaged Income Portfolio		902		18		920
Preservation Portfolio		2,498		52		2,550
Tax-Exempt Preservation Portfolio		1,138		23		1,161

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

American Funds Portfolio Series

7. Investment transactions

The funds made purchases and sales of investment securities during the year ended October 31, 2013, as follows (dollars in thousands):

		Purchases		Sales
Global Growth Portfolio	$	430,831	$	129
Growth Portfolio		696,276		528
Growth and Income Portfolio		1,357,832		—
Balanced Portfolio		1,025,754		699
Income Portfolio		969,189		897
Tax-Advantaged Income Portfolio		176,659		2,977
Preservation Portfolio		300,702		44,650
Tax-Exempt Preservation Portfolio		115,618		48,954

8. Capital share transactions

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

	Sales¹				Reinvestments of dividends and distributions						Repurchases¹						Net increase
Share class	Amount		Shares		Amount			Shares			Amount			Shares			Amount			Shares

Global Growth Portfolio

Year ended October 31, 2013

Class A	$	304,908		24,347	$	1,006			88		$	(26,966	)		(2,138	)	$	278,948			22,297
Class B		1,508		122		5			1			(449	)		(36	)		1,064			87
Class C		51,036		4,097		126			11			(4,063	)		(319	)		47,099			3,789
Class F-1		21,325		1,711		28			2			(2,782	)		(216	)		18,571			1,497
Class F-2		19,675		1,578		33			3			(2,727	)		(215	)		16,981			1,366
Class 529-A		30,887		2,497		174			15			(1,095	)		(88	)		29,966			2,424
Class 529-B		396		31		2			—	²		(56	)		(4	)		342			27
Class 529-C		12,768		1,031		34			3			(578	)		(46	)		12,224			988
Class 529-E		1,358		108		3			—	²		(52	)		(4	)		1,309			104
Class 529-F-1		889		73		7			1			(166	)		(14	)		730			60
Class R-1		631		51		2			—	²		(113	)		(9	)		520			42
Class R-2		7,466		606		10			1			(1,899	)		(154	)		5,577			453
Class R-3		6,067		494		9			1			(635	)		(49	)		5,441			446
Class R-4		1,330		109		9			1			(317	)		(26	)		1,022			84
Class R-5		9,429		747		155			13			(3,089	)		(241	)		6,495			519
Class R-6		2,755		216		—	²		—	²		(54	)		(4	)		2,701			212
Total net increase (decrease)	$	472,428		37,818	$	1,603			140		$	(45,041	)		(3,563	)	$	428,990			34,395

Period ended October 31, 2012³

Class A	$	77,801		7,379	$	—			—		$	(28,728	)		(2,600	)	$	49,073			4,779
Class B		527		48		—			—			(59	)		(5	)		468			43
Class C		7,840		722		—			—			(401	)		(37	)		7,439			685
Class F-1		1,639		153		—			—			(51	)		(5	)		1,588			148
Class F-2		1,317		123		—			—			(180	)		(16	)		1,137			107
Class 529-A		8,651		807		—			—			(71	)		(6	)		8,580			801
Class 529-B		154		14		—			—			(3	)		—	²		151			14
Class 529-C		1,927		181		—			—			(6	)		(1	)		1,921			180
Class 529-E		185		17		—			—			—	²		—	²		185			17
Class 529-F-1		251		23		—			—			—			—			251			23
Class R-1		131		12		—			—			—			—			131			12
Class R-2		442		40		—			—			—	²		—	²		442			40
Class R-3		419		40		—			—			(211	)		(20	)		208			20
Class R-4		320		28		—			—			—	²		—	²		320			28
Class R-5		10,620		993		—			—			(419	)		(38	)		10,201			955
Class R-6		191		19		—			—			(191	)		(17	)		—	²		2
Total net increase (decrease)	$	112,415		10,599	$	—			—		$	(30,320	)		(2,745	)	$	82,095			7,854

34	American Funds Portfolio Series

	Sales¹				Reinvestments of dividends					Repurchases¹						Net increase
Share class	Amount		Shares		Amount		Shares			Amount			Shares			Amount		Shares

Growth Portfolio

Year ended October 31, 2013

Class A	$	499,761		39,881	$	1,486		132		$	(46,759	)		(3,705	)	$	454,488		36,308
Class B		3,536		286		13		1			(1,018	)		(81	)		2,531		206
Class C		87,876		7,046		166		15			(7,265	)		(573	)		80,777		6,488
Class F-1		15,254		1,223		49		4			(1,876	)		(153	)		13,427		1,074
Class F-2		29,964		2,436		35		3			(4,741	)		(380	)		25,258		2,059
Class 529-A		59,326		4,780		278		25			(3,551	)		(285	)		56,053		4,520
Class 529-B		444		36		3		—	²		(213	)		(17	)		234		19
Class 529-C		21,624		1,759		79		7			(1,669	)		(137	)		20,034		1,629
Class 529-E		3,556		287		13		1			(25	)		(2	)		3,544		286
Class 529-F-1		3,021		237		14		1			(242	)		(19	)		2,793		219
Class R-1		1,663		137		10		1			(358	)		(30	)		1,315		108
Class R-2		11,240		892		19		2			(810	)		(65	)		10,449		829
Class R-3		8,493		692		6		—	²		(1,266	)		(99	)		7,233		593
Class R-4		1,962		158		6		—	²		(119	)		(9	)		1,849		149
Class R-5		10,082		789		99		9			(1,770	)		(140	)		8,411		658
Class R-6		3,999		299		1		—	²		(823	)		(59	)		3,177		240
Total net increase (decrease)	$	761,801		60,938	$	2,277		201		$	(72,505	)		(5,754	)	$	691,573		55,385

Period ended October 31, 2012³

Class A	$	132,170		12,495	$	—		—		$	(29,441	)		(2,689	)	$	102,729		9,806
Class B		1,449		135		—		—			(51	)		(5	)		1,398		130
Class C		14,646		1,364		—		—			(679	)		(63	)		13,967		1,301
Class F-1		3,179		297		—		—			(104	)		(10	)		3,075		287
Class F-2		1,820		170		—		—			(23	)		(2	)		1,797		168
Class 529-A		20,526		1,923		—		—			(272	)		(25	)		20,254		1,898
Class 529-B		506		48		—		—			(19	)		(2	)		487		46
Class 529-C		7,926		739		—		—			(69	)		(6	)		7,857		733
Class 529-E		647		60		—		—			(1	)		—	²		646		60
Class 529-F-1		1,032		96		—		—			(90	)		(8	)		942		88
Class R-1		731		68		—		—			—			—			731		68
Class R-2		1,619		148		—		—			(114	)		(11	)		1,505		137
Class R-3		625		59		—		—			(142	)		(13	)		483		46
Class R-4		229		21		—		—			—	²		—	²		229		21
Class R-5		8,464		803		—		—			(125	)		(11	)		8,339		792
Class R-6		245		23		—		—			(189	)		(17	)		56		6
Total net increase (decrease)	$	195,814		18,449	$	—		—		$	(31,319	)		(2,862	)	$	164,495		15,587

See page 41 for footnotes.

American Funds Portfolio Series

	Sales¹				Reinvestments of dividends						Repurchases¹						Net increase
Share class	Amount		Shares		Amount			Shares			Amount			Shares			Amount		Shares

Growth and Income Portfolio

Year ended October 31, 2013

Class A	$	1,049,902		89,576	$	16,966			1,470		$	(108,692	)		(9,186	)	$	958,176		81,860
Class B		7,409		639		103			9			(2,558	)		(218	)		4,954		430
Class C		191,382		16,304		1,744			152			(16,446	)		(1,389	)		176,680		15,067
Class F-1		27,432		2,323		320			28			(4,854	)		(414	)		22,898		1,937
Class F-2		28,985		2,446		333			28			(3,283	)		(276	)		26,035		2,198
Class 529-A		82,784		7,111		1,725			150			(5,059	)		(430	)		79,450		6,831
Class 529-B		954		82		15			1			(346	)		(29	)		623		54
Class 529-C		37,895		3,262		477			42			(3,252	)		(275	)		35,120		3,029
Class 529-E		4,539		392		68			6			(146	)		(13	)		4,461		385
Class 529-F-1		7,940		674		114			10			(266	)		(22	)		7,788		662
Class R-1		3,557		307		41			4			(885	)		(76	)		2,713		235
Class R-2		17,196		1,473		116			10			(2,762	)		(234	)		14,550		1,249
Class R-3		12,302		1,055		131			11			(1,467	)		(124	)		10,966		942
Class R-4		2,343		197		20			2			(325	)		(27	)		2,038		172
Class R-5		8,367		708		376			33			(2,793	)		(236	)		5,950		505
Class R-6		1,398		115		9			1			(75	)		(6	)		1,332		110
Total net increase (decrease)	$	1,484,385		126,664	$	22,558			1,957		$	(153,209	)		(12,955	)	$	1,353,734		115,666

Period ended October 31, 2012³

Class A	$	324,467		30,594	$	863			81		$	(33,316	)		(3,109	)	$	292,014		27,566
Class B		4,131		388		9			1			(460	)		(43	)		3,680		346
Class C		39,940		3,743		74			7			(1,149	)		(107	)		38,865		3,643
Class F-1		7,160		672		16			1			(582	)		(53	)		6,594		620
Class F-2		4,315		401		9			1			(252	)		(24	)		4,072		378
Class 529-A		35,172		3,311		100			10			(323	)		(30	)		34,949		3,291
Class 529-B		698		66		1			—	²		(109	)		(10	)		590		56
Class 529-C		14,584		1,367		27			3			(188	)		(18	)		14,423		1,352
Class 529-E		1,098		102		3			1			—			—			1,101		103
Class 529-F-1		1,299		122		3			—	²		—			—			1,302		122
Class R-1		815		76		2			—	²		(12	)		(1	)		805		75
Class R-2		1,489		137		2			—	²		(6	)		(1	)		1,485		136
Class R-3		1,389		130		4			—	²		(117	)		(11	)		1,276		119
Class R-4		93		9		—	²		—	²		—	²		—	²		93		9
Class R-5		11,493		1,090		40			4			(392	)		(36	)		11,141		1,058
Class R-6		46		4		—	²		—	²		—	²		—	²		46		4
Total net increase (decrease)	$	448,189		42,212	$	1,153			109		$	(36,906	)		(3,443	)	$	412,436		38,878

36	American Funds Portfolio Series

	Sales¹				Reinvestments of dividends						Repurchases¹						Net increase
Share class	Amount		Shares		Amount			Shares			Amount			Shares			Amount		Shares

Balanced Portfolio

Year ended October 31, 2013

Class A	$	771,451		66,757	$	10,336			898		$	(99,271	)		(8,512	)	$	682,516		59,143
Class B		4,959		433		50			4			(2,286	)		(198	)		2,723		239
Class C		155,059		13,390		1,115			98			(15,480	)		(1,325	)		140,694		12,163
Class F-1		39,454		3,404		334			29			(7,528	)		(647	)		32,260		2,786
Class F-2		23,091		1,991		320			28			(2,912	)		(247	)		20,499		1,772
Class 529-A		52,180		4,543		1,071			94			(6,801	)		(585	)		46,450		4,052
Class 529-B		755		66		7			1			(389	)		(34	)		373		33
Class 529-C		27,828		2,419		265			23			(2,862	)		(247	)		25,231		2,195
Class 529-E		2,328		204		33			3			(275	)		(23	)		2,086		184
Class 529-F-1		7,980		685		95			8			(796	)		(69	)		7,279		624
Class R-1		4,444		390		31			3			(1,411	)		(120	)		3,064		273
Class R-2		14,330		1,246		84			7			(3,121	)		(272	)		11,293		981
Class R-3		16,761		1,470		156			14			(5,238	)		(463	)		11,679		1,021
Class R-4		24,326		2,074		133			11			(2,216	)		(186	)		22,243		1,899
Class R-5		8,416		718		188			16			(2,081	)		(178	)		6,523		556
Class R-6		11,890		1,043		109			9			(2,873	)		(244	)		9,126		808
Total net increase (decrease)	$	1,165,252		100,833	$	14,327			1,246		$	(155,540	)		(13,350	)	$	1,024,039		88,729

Period ended October 31, 2012³

Class A	$	261,957		24,894	$	554			52		$	(30,373	)		(2,853	)	$	232,138		22,093
Class B		3,378		321		5			—	²		(269	)		(25	)		3,114		296
Class C		40,576		3,831		62			6			(1,139	)		(106	)		39,499		3,731
Class F-1		4,286		407		9			1			(105	)		(10	)		4,190		398
Class F-2		6,059		567		13			1			(16	)		(1	)		6,056		567
Class 529-A		33,585		3,188		85			8			(354	)		(33	)		33,316		3,163
Class 529-B		515		49		1			—	²		(35	)		(3	)		481		46
Class 529-C		14,139		1,343		21			2			(363	)		(34	)		13,797		1,311
Class 529-E		855		81		2			—	²		(2	)		—	²		855		81
Class 529-F-1		1,432		136		4			—	²		(119	)		(11	)		1,317		125
Class R-1		793		75		1			—	²		—	²		—	²		794		75
Class R-2		2,890		268		3			1			(342	)		(32	)		2,551		237
Class R-3		4,725		439		10			1			(58	)		(6	)		4,677		434
Class R-4		567		55		2			—	²		—	²		—	²		569		55
Class R-5		6,617		634		24			2			(128	)		(12	)		6,513		624
Class R-6		52		5		—	²		—	²		—	²		—	²		52		5
Total net increase (decrease)	$	382,426		36,293	$	796			74		$	(33,303	)		(3,126	)	$	349,919		33,241

See page 41 for footnotes.

American Funds Portfolio Series

	Sales¹				Reinvestments of dividends						Repurchases¹						Net increase
Share class	Amount		Shares		Amount			Shares			Amount			Shares			Amount		Shares

Income Portfolio

Year ended October 31, 2013

Class A	$	809,037		73,704	$	22,180			2,035		$	(128,313	)		(11,623	)	$	702,904		64,116
Class B		5,294		485		118			11			(2,030	)		(184	)		3,382		312
Class C		170,549		15,571		3,586			330			(28,087	)		(2,550	)		146,048		13,351
Class F-1		37,498		3,427		1,005			92			(17,261	)		(1,577	)		21,242		1,942
Class F-2		28,396		2,578		759			69			(5,268	)		(479	)		23,887		2,168
Class 529-A		28,137		2,579		886			81			(5,514	)		(502	)		23,509		2,158
Class 529-B		505		46		13			1			(231	)		(21	)		287		26
Class 529-C		21,254		1,947		511			47			(2,827	)		(256	)		18,938		1,738
Class 529-E		2,020		187		65			6			(468	)		(43	)		1,617		150
Class 529-F-1		1,784		165		59			6			(151	)		(14	)		1,692		157
Class R-1		797		72		14			2			(215	)		(19	)		596		55
Class R-2		7,943		723		149			14			(835	)		(75	)		7,257		662
Class R-3		7,715		706		133			12			(3,754	)		(338	)		4,094		380
Class R-4		5,304		484		137			12			(207	)		(19	)		5,234		477
Class R-5		7,688		697		234			22			(5,257	)		(478	)		2,665		241
Class R-6		1,788		158		21			2			(80	)		(7	)		1,729		153
Total net increase (decrease)	$	1,135,709		103,529	$	29,870			2,742		$	(200,498	)		(18,185	)	$	965,081		88,086

Period ended October 31, 2012³

Class A	$	332,993		32,028	$	1,532			146		$	(33,168	)		(3,164	)	$	301,357		29,010
Class B		2,768		267		13			1			(363	)		(34	)		2,418		234
Class C		57,660		5,532		247			24			(1,337	)		(127	)		56,570		5,429
Class F-1		17,872		1,718		96			9			(221	)		(21	)		17,747		1,706
Class F-2		10,035		956		42			4			(309	)		(29	)		9,768		931
Class 529-A		13,212		1,268		70			7			(425	)		(41	)		12,857		1,234
Class 529-B		337		33		1			—	²		(6	)		(1	)		332		32
Class 529-C		9,277		889		40			4			(512	)		(49	)		8,805		844
Class 529-E		852		82		5			—	²		(14	)		(1	)		843		81
Class 529-F-1		447		43		3			—	²		—			—			450		43
Class R-1		160		15		1			—	²		(10	)		(1	)		151		14
Class R-2		2,018		192		6			1			(9	)		(1	)		2,015		192
Class R-3		1,835		174		9			1			(3	)		—	²		1,841		175
Class R-4		870		82		5			1			—			—			875		83
Class R-5		5,266		507		32			3			(59	)		(6	)		5,239		504
Class R-6		48		4		—	²		—	²		(1	)		—	²		47		4
Total net increase (decrease)	$	455,650		43,790	$	2,102			201		$	(36,437	)		(3,475	)	$	421,315		40,516

38	American Funds Portfolio Series

	Sales¹				Reinvestments of dividends and distributions						Repurchases¹						Net increase
Share class	Amount		Shares		Amount			Shares			Amount			Shares			Amount		Shares

Tax-Advantaged Income Portfolio

Year ended October 31, 2013

Class A	$	162,396		14,592	$	4,173			377		$	(23,156	)		(2,067	)	$	143,413		12,902
Class B		183		17		4			—²			(49	)		(4	)		138		13
Class C		21,721		1,951		363			33			(3,670	)		(329	)		18,414		1,655
Class F-1		9,528		850		180			16			(2,214	)		(198	)		7,494		668
Class F-2		4,925		439		103			9			(1,153	)		(102	)		3,875		346
Total net increase (decrease)	$	198,753		17,849	$	4,823			435		$	(30,242	)		(2,700	)	$	173,334		15,584

Period ended October 31, 2012³

Class A	$	90,125		8,724	$	297			28		$	(26,972	)		(2,547	)	$	63,450		6,205
Class B		82		8		—	²		—	²		(12	)		(1	)		70		7
Class C		8,001		763		29			3			(596	)		(56	)		7,434		710
Class F-1		2,948		282		14			2			(137	)		(13	)		2,825		271
Class F-2		1,409		135		5			—	²		(1	)		—	²		1,413		135
Total net increase (decrease)	$	102,565		9,912	$	345			33		$	(27,718	)		(2,617	)	$	75,192		7,328

See page 41 for footnotes.

American Funds Portfolio Series

	Sales¹				Reinvestments of dividends						Repurchases¹						Net increase (decrease)
Share class	Amount		Shares		Amount			Shares			Amount			Shares			Amount			Shares

Preservation Portfolio

Year ended October 31, 2013

Class A	$	363,415		36,357	$	3,241			325		$	(192,138	)		(19,305	)	$	174,518			17,377
Class B		2,671		267		9			1			(1,881	)		(189	)		799			79
Class C		61,809		6,190		222			22			(26,523	)		(2,668	)		35,508			3,544
Class F-1		7,456		746		71			7			(8,488	)		(852	)		(961	)		(99	)
Class F-2		8,520		852		79			8			(5,465	)		(549	)		3,134			311
Class 529-A		25,165		2,516		303			31			(9,231	)		(930	)		16,237			1,617
Class 529-B		442		44		1			—	²		(465	)		(46	)		(22	)		(2	)
Class 529-C		13,466		1,348		43			4			(4,311	)		(434	)		9,198			918
Class 529-E		1,924		192		17			2			(1,170	)		(119	)		771			75
Class 529-F-1		5,529		554		39			4			(497	)		(50	)		5,071			508
Class R-1		1,475		147		3			—	²		(1,103	)		(110	)		375			37
Class R-2		7,316		730		16			2			(2,944	)		(295	)		4,388			437
Class R-3		10,963		1,095		30			3			(6,478	)		(646	)		4,515			452
Class R-4		2,698		270		17			1			(1,496	)		(150	)		1,219			121
Class R-5		4,066		407		56			6			(3,176	)		(320	)		946			93
Class R-6		474		47		4			1			(385	)		(39	)		93			9
Total net increase (decrease)	$	517,389		51,762	$	4,151			417		$	(265,751	)		(26,702	)	$	255,789			25,477

Period ended October 31, 2012³

Class A	$	197,273		19,619	$	343			34		$	(34,768	)		(3,449	)	$	162,848			16,204
Class B		1,752		174		1			—	²		(154	)		(15	)		1,599			159
Class C		34,032		3,385		30			3			(1,437	)		(143	)		32,625			3,245
Class F-1		7,875		783		14			1			(1,105	)		(110	)		6,784			674
Class F-2		3,561		354		12			1			(538	)		(53	)		3,035			302
Class 529-A		17,555		1,746		40			4			(832	)		(83	)		16,763			1,667
Class 529-B		631		63		—	²		—	²		(103	)		(10	)		528			53
Class 529-C		8,727		869		5			—	²		(305	)		(30	)		8,427			839
Class 529-E		1,359		135		3			—	²		(17	)		(1	)		1,345			134
Class 529-F-1		732		73		2			—	²		(50	)		(5	)		684			68
Class R-1		270		27		—	²		—	²		—			—			270			27
Class R-2		1,407		140		2			—	²		(8	)		(1	)		1,401			139
Class R-3		251		25		1			—	²		(7	)		(1	)		245			24
Class R-4		271		27		—	²		—	²		—	²		—	²		271			27
Class R-5		4,041		402		13			1			(687	)		(68	)		3,367			335
Class R-6		23		2		—	²		—	²		—			—			23			2
Total net increase (decrease)	$	279,760		27,824	$	466			44		$	(40,011	)		(3,969	)	$	240,215			23,899

40	American Funds Portfolio Series

	Sales¹				Reinvestments of dividends						Repurchases¹						Net increase (decrease)
Share class	Amount		Shares		Amount			Shares			Amount			Shares			Amount			Shares

Tax-Exempt Preservation Portfolio

Year ended October 31, 2013

Class A	$	123,762		12,285	$	3,061			308		$	(70,980	)		(7,161	)	$	55,843			5,432
Class B		103		10		2			—	²		(91	)		(9	)		14			1
Class C		31,805		3,156		695			70			(14,848	)		(1,505	)		17,652			1,721
Class F-1		5,734		567		208			21			(9,484	)		(949	)		(3,542	)		(361	)
Class F-2		9,858		975		330			33			(13,495	)		(1,353	)		(3,307	)		(345	)
Total net increase (decrease)		171,262		16,993	$	4,296			432		$	(108,898	)		(10,977	)	$	66,660			6,448


Period ended October 31, 2012³

Class A	$	99,451		9,897	$	354			35		$	(29,058	)		(2,879	)	$	70,747			7,053
Class B		117		12		—	²		—	²		(17	)		(2	)		100			10
Class C		22,490		2,237		78			8			(522	)		(52	)		22,046			2,193
Class F-1		9,392		933		41			4			(338	)		(33	)		9,095			904
Class F-2		12,843		1,275		58			6			(922	)		(91	)		11,979			1,190
Total net increase (decrease)	$	144,293		14,354	$	531			53		$	(30,857	)		(3,057	)	$	113,967			11,350

¹	Includes exchanges between share classes of the fund.
²	Amount less than one thousand.
³	For the period May 18, 2012, commencement of operations, through October 31, 2012.

American Funds Portfolio Series

Financial highlights

American Funds Global Growth Portfolio

			Income from investment operations¹							Dividends and distributions
Period ended	Net asset value, beginning of period		Net investment income (loss)			Net gains on securities (both realized and unrealized)		Total from investment operations		Dividends (from net investment income)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in thousands)		Ratio of expenses to average net assets before reimbursements/ waivers⁴			Ratio of expenses to average net assets after reimbursements/ waivers^3,4			Net effective expense ratio⁵			Ratio of net income (loss) to average net assets³
Class A:
10/31/13	$	11.17	$	.11		$	2.79	$	2.90	$	(.14	)	$	(.01	)	$	(.15	)	$	13.92		26.18	%	$	376,948		.50	%		.40	%		.90	%		.85	%
10/31/12^6,7		10.00		.03			1.14		1.17		—			—			—			11.17		11.70			53,354		.25			.20			.71			.29
Class B:
10/31/13		11.13		.02			2.78		2.80		(.11	)		(.01	)		(.12	)		13.81		25.32			1,795		1.28			1.18			1.68			.13
10/31/12^6,7		10.00		(.01	)		1.14		1.13		—			—			—			11.13		11.30			485		.56			.51			1.02			(.08	)
Class C:
10/31/13		11.13		.01			2.78		2.79		(.12	)		(.01	)		(.13	)		13.79		25.27			61,707		1.26			1.16			1.66			.04
10/31/12^6,7		10.00		(.02	)		1.15		1.13		—			—			—			11.13		11.30			7,627		.56			.51			1.02			(.17	)
Class F-1:
10/31/13		11.17		.08			2.82		2.90		(.14	)		(.01	)		(.15	)		13.92		26.23			22,907		.53			.43			.93			.59
10/31/12^6,7		10.00		.03			1.14		1.17		—			—			—			11.17		11.70			1,653		.19			.14			.65			.28
Class F-2:
10/31/13		11.18		.12			2.82		2.94		(.15	)		(.01	)		(.16	)		13.96		26.57			20,566		.27			.17			.67			.96
10/31/12^6,7		10.00		.04			1.14		1.18		—			—			—			11.18		11.80			1,196		.11			.06			.57			.37
Class 529-A:
10/31/13		11.16		.12			2.78		2.90		(.14	)		(.01	)		(.15	)		13.91		26.27			44,876		.50			.40			.90			.96
10/31/12^6,7		10.00		.02			1.14		1.16		—			—			—			11.16		11.60			8,942		.23			.18			.69			.21
Class 529-B:
10/31/13		11.14		.03			2.75		2.78		(.11	)		(.01	)		(.12	)		13.80		25.11			565		1.38			1.28			1.78			.21
10/31/12^6,7		10.00		(.03	)		1.17		1.14		—			—			—			11.14		11.40			157		.59			.54			1.05			(.26	)
Class 529-C:
10/31/13		11.12		(.01	)		2.80		2.79		(.12	)		(.01	)		(.13	)		13.78		25.23			16,092		1.36			1.26			1.76			(.06	)
10/31/12^6,7		10.00		(.02	)		1.14		1.12		—			—			—			11.12		11.20			2,000		.60			.56			1.07			(.18	)
Class 529-E:
10/31/13		11.16		.06			2.80		2.86		(.13	)		(.01	)		(.14	)		13.88		25.89			1,676		.82			.72			1.22			.49
10/31/12^6,7		10.00		.01			1.15		1.16		—			—			—			11.16		11.60			188		.33			.29			.80			.08
Class 529-F-1:
10/31/13		11.18		.16			2.76		2.92		(.15	)		(.01	)		(.16	)		13.94		26.37			1,162		.37			.27			.77			1.26
10/31/12^6,7		10.00		.03			1.15		1.18		—			—			—			11.18		11.80			258		.16			.11			.62			.23
Class R-1:
10/31/13		11.14		.02			2.78		2.80		(.12	)		(.01	)		(.13	)		13.81		25.28			740		1.25			1.15			1.65			.13
10/31/12^6,7		10.00		—	⁸		1.14		1.14		—			—			—			11.14		11.40			134		.51			.47			.98			(.04	)
Class R-2:
10/31/13		11.15		(.02	)		2.81		2.79		(.13	)		(.01	)		(.14	)		13.80		25.24			6,809		1.27			1.17			1.67			(.18	)
10/31/12^6,7		10.00		(.02	)		1.17		1.15		—			—			—			11.15		11.50			445		.47			.42			.93			(.21	)
Class R-3:
10/31/13		11.16		.05			2.80		2.85		(.14	)		(.01	)		(.15	)		13.86		25.77			6,460		.83			.73			1.23			.36
10/31/12^6,7		10.00		.04			1.12		1.16		—			—			—			11.16		11.60			227		.33			.29			.80			.39
Class R-4:
10/31/13		11.18		.14			2.77		2.91		(.15	)		(.01	)		(.16	)		13.93		26.27			1,557		.49			.39			.89			1.11
10/31/12^6,7		10.00		—	⁸		1.18		1.18		—			—			—			11.18		11.80			318		.21			.16			.67			(.02	)
Class R-5:
10/31/13		11.18		.18			2.77		2.95		(.15	)		(.01	)		(.16	)		13.97		26.66			20,587		.23			.13			.63			1.47
10/31/12^6,7		10.00		.03			1.15		1.18		—			—			—			11.18		11.80			10,674		.10			.05			.56			.30
Class R-6:
10/31/13		11.17		.10			2.85		2.95		(.09	)		(.01	)		(.10	)		14.02		26.57			2,993		.18			.08			.58			.79
10/31/12^6,7		10.00		.05			1.12		1.17		—			—			—			11.17		11.70			18		.13			.08			.59			.52

42	American Funds Portfolio Series

American Funds Growth Portfolio

			Income from investment operations¹
Period ended	Net asset value, beginning of period		Net investment income (loss)			Net gains on securities (both realized and unrealized)		Total from investment operations		Dividends (from net investment income)			Net asset value, end of period		Total return²^,³			Net assets, end of period (in thousands)		Ratio of expenses to average net assets before reimbursements/ waivers⁴			Ratio of expenses to average net assets after reimbursements/ waivers^3,4			Net effective expense ratio⁵			Ratio of net income (loss) to average net assets³
Class A:
10/31/13	$	11.02	$	.09		$	3.02	$	3.11	$	(.11	)	$	14.02		28.45	%	$	646,413		.45	%		.35	%		.79	%		.67	%
10/31/12^6,7		10.00		.02			1.00		1.02		—			11.02		10.20			108,024		.24			.19			.64			.15
Class B:
10/31/13		10.98		—	⁸		3.00		3.00		(.09	)		13.89		27.47			4,674		1.26			1.16			1.60			(.04	)
10/31/12^6,7		10.00		(.02	)		1.00		.98		—			10.98		9.80			1,427		.55			.51			.96			(.23	)
Class C:
10/31/13		10.98		(.02	)		3.02		3.00		(.09	)		13.89		27.52			108,168		1.24			1.14			1.58			(.17	)
10/31/12^6,7		10.00		(.03	)		1.01		.98		—			10.98		9.80			14,284		.55			.50			.95			(.27	)
Class F-1:
10/31/13		11.02		.08			3.02		3.10		(.11	)		14.01		28.41			19,066		.51			.41			.85			.64
10/31/12^6,7		10.00		.02			1.00		1.02		—			11.02		10.20			3,161		.19			.15			.60			.19
Class F-2:
10/31/13		11.03		.08			3.06		3.14		(.12	)		14.05		28.75			31,290		.26			.16			.60			.64
10/31/12^6,7		10.00		.03			1.00		1.03		—			11.03		10.30			1,851		.09			.05			.50			.27
Class 529-A:
10/31/13		11.01		.09			3.02		3.11		(.11	)		14.01		28.49			89,932		.49			.39			.83			.71
10/31/12^6,7		10.00		.01			1.00		1.01		—			11.01		10.10			20,903		.23			.18			.63			.09
Class 529-B:
10/31/13		10.98		.01			2.97		2.98		(.07	)		13.89		27.33			896		1.36			1.26			1.70			.04
10/31/12^6,7		10.00		(.02	)		1.00		.98		—			10.98		9.80			507		.59			.55			1.00			(.23	)
Class 529-C:
10/31/13		10.98		(.02	)		3.00		2.98		(.08	)		13.88		27.35			32,778		1.34			1.24			1.68			(.15	)
10/31/12^6,7		10.00		(.03	)		1.01		.98		—			10.98		9.80			8,041		.60			.55			1.00			(.30	)
Class 529-E:
10/31/13		11.00		.05			3.02		3.07		(.11	)		13.96		28.14			4,826		.80			.70			1.14			.39
10/31/12^6,7		10.00		(.01	)		1.01		1.00		—			11.00		10.00			657		.35			.30			.75			(.05	)
Class 529-F-1:
10/31/13		11.03		.11			3.02		3.13		(.12	)		14.04		28.73			4,311		.34			.24			.68			.90
10/31/12^6,7		10.00		.02			1.01		1.03		—			11.03		10.20			969		.14			.10			.55			.16
Class R-1:
10/31/13		10.99		.01			2.99		3.00		(.09	)		13.90		27.52			2,447		1.24			1.14			1.58			.11
10/31/12^6,7		10.00		(.04	)		1.03		.99		—			10.99		9.90			752		.56			.51			.96			(.34	)
Class R-2:
10/31/13		11.00		(.03	)		3.03		3.00		(.10	)		13.90		27.44			13,430		1.24			1.14			1.58			(.22	)
10/31/12^6,7		10.00		(.03	)		1.03		1.00		—			11.00		10.00			1,509		.48			.44			.89			(.27	)
Class R-3:
10/31/13		11.01		.01			3.05		3.06		(.10	)		13.97		28.02			8,931		.81			.71			1.15			.06
10/31/12^6,7		10.00		.02			.99		1.01		—			11.01		10.10			505		.32			.27			.72			.19
Class R-4:
10/31/13		11.03		.08			3.03		3.11		(.12	)		14.02		28.45			2,389		.46			.36			.80			.62
10/31/12^6,7		10.00		—	⁸		1.03		1.03		—			11.03		10.30			227		.18			.13			.58			.04
Class R-5:
10/31/13		11.03		.14			3.01		3.15		(.12	)		14.06		28.84			20,387		.20			.10			.54			1.12
10/31/12^6,7		10.00		.03			1.00		1.03		—			11.03		10.30			8,737		.09			.04			.49			.24
Class R-6:
10/31/13		11.03		.07			3.08		3.15		(.11	)		14.07		28.84			3,462		.15			.05			.49			.52
10/31/12^6,7		10.00		.05			.98		1.03		—			11.03		10.30			71		.12			.07			.52			.46

See page 49 for footnotes.

American Funds Portfolio Series

Financial highlights (continued)

American Funds Growth and Income Portfolio

			Income from investment operations¹
Period ended	Net asset value, beginning of period		Net investment income		Net gains on securities (both realized and unrealized)		Total from investment operations		Dividends (from net investment income)			Net asset value, end of period		Total return^2,3			Net assets, end of period (in thousands)		Ratio of expenses to average net assets before reimbursements/ waivers⁴			Ratio of expenses to average net assets after reimbursements/ waivers^3,4			Net effective expense ratio⁵			Ratio of net income to average net assets³
Class A:
10/31/13	$	10.88	$	.26	$	1.88	$	2.14	$	(.28	)	$	12.74		20.01	%	$	1,394,069		.43	%		.33	%		.70	%		2.19	%
10/31/12^6,7		10.00		.09		.87		.96		(.08	)		10.88		9.63			299,962		.23			.18			.56			.89
Class B:
10/31/13		10.86		.17		1.88		2.05		(.20	)		12.71		19.08			9,863		1.25			1.15			1.52			1.47
10/31/12^6,7		10.00		.06		.87		.93		(.07	)		10.86		9.30			3,761		.55			.50			.88			.59
Class C:
10/31/13		10.86		.16		1.88		2.04		(.21	)		12.69		19.03			237,496		1.22			1.12			1.49			1.36
10/31/12^6,7		10.00		.06		.87		.93		(.07	)		10.86		9.30			39,558		.54			.50			.88			.53
Class F-1:
10/31/13		10.88		.26		1.88		2.14		(.28	)		12.74		19.98			32,573		.49			.39			.76			2.16
10/31/12^6,7		10.00		.08		.88		.96		(.08	)		10.88		9.66			6,749		.20			.15			.53			.79
Class F-2:
10/31/13		10.89		.28		1.88		2.16		(.30	)		12.75		20.22			32,850		.24			.14			.51			2.31
10/31/12^6,7		10.00		.11		.87		.98		(.09	)		10.89		9.81			4,114		.09			.04			.42			1.06
Class 529-A:
10/31/13		10.88		.26		1.88		2.14		(.28	)		12.74		19.95			128,915		.49			.39			.76			2.17
10/31/12^6,7		10.00		.09		.87		.96		(.08	)		10.88		9.61			35,800		.26			.22			.60			.84
Class 529-B:
10/31/13		10.86		.17		1.87		2.04		(.19	)		12.71		18.99			1,398		1.34			1.24			1.61			1.45
10/31/12^6,7		10.00		.06		.86		.92		(.06	)		10.86		9.25			604		.59			.54			.92			.53
Class 529-C:
10/31/13		10.86		.16		1.86		2.02		(.19	)		12.69		18.86			55,610		1.33			1.23			1.60			1.33
10/31/12^6,7		10.00		.05		.88		.93		(.07	)		10.86		9.29			14,675		.59			.54			.92			.49
Class 529-E:
10/31/13		10.87		.21		1.89		2.10		(.25	)		12.72		19.61			6,206		.79			.69			1.06			1.80
10/31/12^6,7		10.00		.07		.88		.95		(.08	)		10.87		9.52			1,115		.34			.30			.68			.63
Class 529-F-1:
10/31/13		10.89		.29		1.87		2.16		(.30	)		12.75		20.14			10,000		.32			.22			.59			2.41
10/31/12^6,7		10.00		.10		.87		.97		(.08	)		10.89		9.78			1,331		.14			.09			.47			.89
Class R-1:
10/31/13		10.86		.16		1.89		2.05		(.21	)		12.70		19.12			3,936		1.23			1.13			1.50			1.38
10/31/12^6,7		10.00		.08		.85		.93		(.07	)		10.86		9.28			816		.54			.50			.88			.79
Class R-2:
10/31/13		10.86		.14		1.90		2.04		(.21	)		12.69		19.09			17,575		1.24			1.14			1.51			1.21
10/31/12^6,7		10.00		.06		.87		.93		(.07	)		10.86		9.38			1,484		.48			.43			.81			.52
Class R-3:
10/31/13		10.87		.21		1.89		2.10		(.25	)		12.72		19.67			13,492		.80			.70			1.07			1.79
10/31/12^6,7		10.00		.12		.83		.95		(.08	)		10.87		9.52			1,298		.31			.27			.65			1.09
Class R-4:
10/31/13		10.89		.24		1.90		2.14		(.29	)		12.74		19.95			2,308		.44			.34			.71			1.97
10/31/12^6,7		10.00		.11		.86		.97		(.08	)		10.89		9.78			93		.16			.11			.49			1.02
Class R-5:
10/31/13		10.89		.30		1.88		2.18		(.31	)		12.76		20.35			19,937		.18			.08			.45			2.58
10/31/12^6,7		10.00		.10		.88		.98		(.09	)		10.89		9.81			11,519		.08			.03			.41			.96
Class R-6:
10/31/13		10.89		.27		1.90		2.17		(.31	)		12.75		20.26			1,457		.14			.04			.41			2.27
10/31/12^6,7		10.00		.11		.86		.97		(.08	)		10.89		9.78			49		.14			.10			.48			1.02

44	American Funds Portfolio Series

American Funds Balanced Portfolio

			Income from investment operations¹
Period ended	Net asset value, beginning of period		Net investment income		Net gains on securities (both realized and unrealized)		Total from investment operations		Dividends (from net investment income)			Net asset value, end of period		Total return^2,3			Net assets, end of period (in thousands)		Ratio of expenses to average net assets before reimbursements/ waivers⁴			Ratio of expenses to average net assets after reimbursements/ waivers^3,4			Net effective expense ratio⁵			Ratio of net income to average net assets³
Class A:
10/31/13	$	10.80	$	.21	$	1.64	$	1.85	$	(.21	)	$	12.44		17.29	%	$	1,010,259		.45	%		.35	%		.69	%		1.76	%
10/31/12^6,7		10.00		.08		.78		.86		(.06	)		10.80		8.62			238,580		.23			.18			.53			.73
Class B:
10/31/13		10.78		.12		1.63		1.75		(.12	)		12.41		16.38			6,636		1.25			1.15			1.49			1.03
10/31/12^6,7		10.00		.04		.79		.83		(.05	)		10.78		8.29			3,190		.55			.50			.85			.37
Class C:
10/31/13		10.78		.11		1.64		1.75		(.14	)		12.39		16.32			196,946		1.23			1.13			1.47			.96
10/31/12^6,7		10.00		.04		.79		.83		(.05	)		10.78		8.30			40,201		.54			.50			.85			.37
Class F-1:
10/31/13		10.80		.19		1.65		1.84		(.21	)		12.43		17.20			39,594		.50			.40			.74			1.61
10/31/12^6,7		10.00		.08		.78		.86		(.06	)		10.80		8.64			4,298		.19			.15			.50			.79
Class F-2:
10/31/13		10.81		.23		1.64		1.87		(.23	)		12.45		17.51			29,111		.25			.15			.49			1.96
10/31/12^6,7		10.00		.09		.79		.88		(.07	)		10.81		8.80			6,126		.09			.04			.39			.88
Class 529-A:
10/31/13		10.79		.21		1.63		1.84		(.20	)		12.43		17.27			89,698		.49			.39			.73			1.77
10/31/12^6,7		10.00		.07		.78		.85		(.06	)		10.79		8.51			34,148		.27			.23			.58			.66
Class 529-B:
10/31/13		10.78		.11		1.63		1.74		(.11	)		12.41		16.23			982		1.34			1.24			1.58			.91
10/31/12^6,7		10.00		.04		.78		.82		(.04	)		10.78		8.25			495		.59			.54			.89			.38
Class 529-C:
10/31/13		10.78		.11		1.63		1.74		(.12	)		12.40		16.26			43,459		1.33			1.23			1.57			.91
10/31/12^6,7		10.00		.04		.78		.82		(.04	)		10.78		8.25			14,126		.59			.55			.90			.33
Class 529-E:
10/31/13		10.79		.17		1.63		1.80		(.17	)		12.42		16.89			3,297		.80			.70			1.04			1.44
10/31/12^6,7		10.00		.06		.79		.85		(.06	)		10.79		8.49			876		.35			.30			.65			.61
Class 529-F-1:
10/31/13		10.80		.24		1.62		1.86		(.22	)		12.44		17.45			9,325		.32			.22			.56			2.03
10/31/12^6,7		10.00		.09		.77		.86		(.06	)		10.80		8.67			1,353		.14			.09			.44			.85
Class R-1:
10/31/13		10.78		.11		1.64		1.75		(.13	)		12.40		16.40			4,312		1.24			1.14			1.48			.95
10/31/12^6,7		10.00		.04		.79		.83		(.05	)		10.78		8.32			807		.55			.50			.85			.36
Class R-2:
10/31/13		10.79		.11		1.64		1.75		(.14	)		12.40		16.33			15,102		1.25			1.15			1.49			.90
10/31/12^6,7		10.00		.04		.81		.85		(.06	)		10.79		8.50			2,552		.48			.44			.79			.40
Class R-3:
10/31/13		10.79		.16		1.64		1.80		(.17	)		12.42		16.86			18,071		.80			.70			1.04			1.36
10/31/12^6,7		10.00		.10		.75		.85		(.06	)		10.79		8.53			4,686		.31			.26			.61			.89
Class R-4:
10/31/13		10.80		.20		1.65		1.85		(.21	)		12.44		17.33			24,301		.43			.33			.67			1.71
10/31/12^6,7		10.00		.10		.76		.86		(.06	)		10.80		8.61			596		.20			.15			.50			.92
Class R-5:
10/31/13		10.81		.24		1.63		1.87		(.23	)		12.45		17.56			14,689		.18			.08			.42			2.06
10/31/12^6,7		10.00		.09		.79		.88		(.07	)		10.81		8.80			6,741		.08			.03			.38			.83
Class R-6:
10/31/13		10.81		.24		1.64		1.88		(.24	)		12.45		17.57			10,126		.14			.04			.38			2.01
10/31/12^6,7		10.00		.10		.77		.87		(.06	)		10.81		8.77			53		.13			.08			.43			.93

See page 49 for footnotes.

American Funds Portfolio Series

Financial highlights (continued)

American Funds Income Portfolio

			Income from investment operations¹
Period ended	Net asset value, beginning of period		Net investment income		Net gains on securities (both realized and unrealized)		Total from investment operations		Dividends (from net investment income)			Net asset value, end of period		Total return^2,3			Net assets, end of period (in thousands)		Ratio of expenses to average net assets before reimbursements/ waivers⁴			Ratio of expenses to average net assets after reimbursements/ waivers^3,4			Net effective expense ratio⁵			Ratio of net income to average net assets³
Class A:
10/31/13	$	10.57	$	.36	$	.90	$	1.26	$	(.37	)	$	11.46		12.19	%	$	1,066,759		.48	%		.38	%		.68	%		3.28	%
10/31/12^6,7		10.00		.16		.52		.68		(.11	)		10.57		6.84			306,501		.23			.18			.49			1.54
Class B:
10/31/13		10.55		.28		.90		1.18		(.30	)		11.43		11.35			6,237		1.25			1.15			1.45			2.51
10/31/12^6,7		10.00		.13		.51		.64		(.09	)		10.55		6.47			2,472		.55			.50			.81			1.26
Class C:
10/31/13		10.54		.28		.90		1.18		(.31	)		11.41		11.35			214,367		1.23			1.13			1.43			2.51
10/31/12^6,7		10.00		.12		.52		.64		(.10	)		10.54		6.41			57,237		.54			.50			.81			1.20
Class F-1:
10/31/13		10.57		.37		.89		1.26		(.37	)		11.46		12.17			41,800		.51			.41			.71			3.31
10/31/12^6,7		10.00		.16		.52		.68		(.11	)		10.57		6.85			18,026		.20			.16			.47			1.50
Class F-2:
10/31/13		10.57		.39		.90		1.29		(.40	)		11.46		12.44			35,534		.25			.15			.45			3.50
10/31/12^6,7		10.00		.17		.52		.69		(.12	)		10.57		6.90			9,843		.09			.04			.35			1.61
Class 529-A:
10/31/13		10.56		.35		.91		1.26		(.37	)		11.45		12.14			38,848		.55			.45			.75			3.20
10/31/12^6,7		10.00		.16		.51		.67		(.11	)		10.56		6.72			13,033		.25			.20			.51			1.56
Class 529-B:
10/31/13		10.55		.27		.90		1.17		(.29	)		11.43		11.23			666		1.34			1.24			1.54			2.45
10/31/12^6,7		10.00		.12		.53		.65		(.10	)		10.55		6.50			335		.58			.53			.84			1.12
Class 529-C:
10/31/13		10.54		.27		.89		1.16		(.29	)		11.41		11.23			29,463		1.33			1.23			1.53			2.42
10/31/12^6,7		10.00		.13		.51		.64		(.10	)		10.54		6.41			8,891		.59			.54			.85			1.20
Class 529-E:
10/31/13		10.56		.33		.89		1.22		(.34	)		11.44		11.80			2,648		.80			.70			1.00			2.98
10/31/12^6,7		10.00		.15		.52		.67		(.11	)		10.56		6.69			856		.35			.30			.61			1.47
Class 529-F-1:
10/31/13		10.57		.39		.89		1.28		(.39	)		11.46		12.36			2,293		.33			.23			.53			3.54
10/31/12^6,7		10.00		.17		.52		.69		(.12	)		10.57		6.89			456		.14			.09			.40			1.63
Class R-1:
10/31/13		10.55		.28		.90		1.18		(.31	)		11.42		11.36			783		1.23			1.13			1.43			2.57
10/31/12^6,7		10.00		.17		.49		.66		(.11	)		10.55		6.59			152		.48			.43			.74			1.63
Class R-2:
10/31/13		10.56		.27		.90		1.17		(.31	)		11.42		11.26			9,757		1.25			1.15			1.45			2.44
10/31/12^6,7		10.00		.13		.53		.66		(.10	)		10.56		6.67			2,028		.50			.45			.76			1.28
Class R-3:
10/31/13		10.56		.31		.92		1.23		(.34	)		11.45		11.86			6,348		.81			.71			1.01			2.83
10/31/12^6,7		10.00		.19		.48		.67		(.11	)		10.56		6.75			1,844		.31			.26			.57			1.85
Class R-4:
10/31/13		10.57		.37		.90		1.27		(.38	)		11.46		12.24			6,417		.45			.35			.65			3.37
10/31/12^6,7		10.00		.23		.46		.69		(.12	)		10.57		6.89			874		.18			.14			.45			2.21
Class R-5:
10/31/13		10.57		.39		.91		1.30		(.40	)		11.47		12.58			8,539		.19			.09			.39			3.54
10/31/12^6,7		10.00		.17		.52		.69		(.12	)		10.57		6.91			5,329		.08			.03			.34			1.68
Class R-6:
10/31/13		10.57		.37		.93		1.30		(.40	)		11.47		12.57			1,806		.13			.03			.33			3.29
10/31/12^6,7		10.00		.19		.50		.69		(.12	)		10.57		6.89			47		.14			.09			.40			1.79

46	American Funds Portfolio Series

American Funds Tax-Advantaged Income Portfolio

			Income from investment operations¹						Dividends and distributions
Period ended	Net asset value, beginning of period		Net investment income		Net gains on securities (both realized and unrealized)		Total from investment operations		Dividends (from net investment income)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in thousands)		Ratio of expenses to average net assets before reimbursements/ waivers⁴			Ratio of expenses to average net assets after reimbursements/ waivers^3,4			Net effective expense ratio⁵			Ratio of net income to average net assets³
Class A:
10/31/13	$	10.66	$	.33	$	.86	$	1.19	$	(.30	)	$	(.01	)	$	(.31	)	$	11.54		11.28	%	$	220,482		.55	%		.45	%		.82	%		2.93	%
10/31/12^6,7		10.00		.15		.62		.77		(.11	)		—			(.11	)		10.66		7.73			66,173		.24			.19			.55			1.45
Class B:
10/31/13		10.66		.25		.85		1.10		(.23	)		(.01	)		(.24	)		11.52		10.38			225		1.28			1.18			1.55			2.24
10/31/12^6,7		10.00		.12		.63		.75		(.09	)		—			(.09	)		10.66		7.51			74		.52			.48			.84			1.20
Class C:
10/31/13		10.64		.25		.85		1.10		(.23	)		(.01	)		(.24	)		11.50		10.45			27,188		1.27			1.17			1.54			2.21
10/31/12^6,7		10.00		.11		.63		.74		(.10	)		—			(.10	)		10.64		7.43			7,552		.55			.50			.86			1.01
Class F-1:
10/31/13		10.66		.33		.86		1.19		(.30	)		(.01	)		(.31	)		11.54		11.31			10,831		.53			.43			.80			2.92
10/31/12^6,7		10.00		.14		.63		.77		(.11	)		—			(.11	)		10.66		7.79			2,884		.19			.15			.51			1.30
Class F-2:
10/31/13		10.67		.36		.85		1.21		(.33	)		(.01	)		(.34	)		11.54		11.46			5,558		.28			.18			.55			3.21
10/31/12^6,7		10.00		.15		.64		.79		(.12	)		—			(.12	)		10.67		7.92			1,443		.10			.05			.41			1.48

See page 49 for footnotes.

American Funds Portfolio Seriesre

Financial highlights (continued)

American Funds Preservation Portfolio

			(Loss) income from investment operations¹																		Ratio of			Ratio of
Period ended	Net asset value, beginning of period		Net investment income		Net (losses) gains on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Net asset value, end of period		Total return^2,3			Net assets, end of period (in thousands)		expenses to average net assets before reimbursements/ waivers⁴			expenses to average net assets after reimbursements/ waivers^3,4			Net effective expense ratio⁵			Ratio of net income to average net assets³
Class A:
10/31/13	$	10.08	$	.11	$	(.17	)	$	(.06	)	$	(.11	)	$	9.91		(.59	)%	$	332,931		.53	%		.41	%		.71	%		1.13	%
10/31/12^6,7		10.00		.06		.07			.13			(.05	)		10.08		1.26			163,334		.23			.19			.50			.60
Class B:
10/31/13		10.08		.04		(.17	)		(.13	)		(.04	)		9.91		(1.32	)		2,357		1.28			1.17			1.47			.38
10/31/12^6,7		10.00		.03		.07			.10			(.02	)		10.08		.97			1,602		.55			.51			.82			.28
Class C:
10/31/13		10.07		.04		(.17	)		(.13	)		(.04	)		9.90		(1.29	)		67,237		1.27			1.15			1.45			.39
10/31/12^6,7		10.00		.03		.06			.09			(.02	)		10.07		.93			32,688		.55			.50			.81			.28
Class F-1:
10/31/13		10.08		.11		(.17	)		(.06	)		(.11	)		9.91		(.61	)		5,699		.54			.42			.72			1.13
10/31/12^6,7		10.00		.06		.07			.13			(.05	)		10.08		1.33			6,796		.20			.15			.46			.63
Class F-2:
10/31/13		10.08		.14		(.17	)		(.03	)		(.14	)		9.91		(.34	)		6,072		.28			.17			.47			1.37
10/31/12^6,7		10.00		.07		.07			.14			(.06	)		10.08		1.40			3,043		.10			.05			.36			.74
Class 529-A:
10/31/13		10.08		.11		(.17	)		(.06	)		(.11	)		9.91		(.61	)		32,550		.56			.44			.74			1.09
10/31/12^6,7		10.00		.06		.06			.12			(.04	)		10.08		1.25			16,801		.26			.22			.53			.57
Class 529-B:
10/31/13		10.08		.03		(.16	)		(.13	)		(.03	)		9.92		(1.33	)		500		1.38			1.26			1.56			.29
10/31/12^6,7		10.00		.02		.07			.09			(.01	)		10.08		.89			531		.59			.55			.86			.25
Class 529-C:
10/31/13		10.08		.03		(.17	)		(.14	)		(.03	)		9.91		(1.38	)		17,406		1.37			1.25			1.55			.29
10/31/12^6,7		10.00		.02		.07			.09			(.01	)		10.08		.93			8,453		.60			.55			.86			.24
Class 529-E:
10/31/13		10.07		.08		(.16	)		(.08	)		(.08	)		9.91		(.78	)		2,075		.83			.71			1.01			.83
10/31/12^6,7		10.00		.05		.06			.11			(.04	)		10.07		1.13			1,345		.35			.31			.62			.47
Class 529-F-1:
10/31/13		10.08		.13		(.17	)		(.04	)		(.13	)		9.91		(.40	)		5,711		.35			.24			.54			1.28
10/31/12^6,7		10.00		.07		.07			.14			(.06	)		10.08		1.37			686		.14			.10			.41			.68
Class R-1:
10/31/13		10.08		.04		(.17	)		(.13	)		(.04	)		9.91		(1.32	)		633		1.27			1.15			1.45			.39
10/31/12^6,7		10.00		.03		.10			.13			(.05	)		10.08		1.30			271		.45			.41			.72			.35
Class R-2:
10/31/13		10.07		.04		(.17	)		(.13	)		(.04	)		9.90		(1.30	)		5,702		1.29			1.17			1.47			.36
10/31/12^6,7		10.00		.03		.08			.11			(.04	)		10.07		1.11			1,401		.47			.42			.73			.33
Class R-3:
10/31/13		10.08		.08		(.17	)		(.09	)		(.08	)		9.91		(.85	)		4,717		.83			.72			1.02			.80
10/31/12^6,7		10.00		.05		.07			.12			(.04	)		10.08		1.19			245		.33			.29			.60			.51
Class R-4:
10/31/13		10.08		.12		(.17	)		(.05	)		(.11	)		9.92		(.45	)		1,471		.49			.38			.68			1.16
10/31/12^6,7		10.00		.06		.08			.14			(.06	)		10.08		1.36			271		.17			.13			.44			.63
Class R-5:
10/31/13		10.08		.14		(.17	)		(.03	)		(.14	)		9.91		(.28	)		4,246		.22			.10			.40			1.44
10/31/12^6,7		10.00		.07		.07			.14			(.06	)		10.08		1.42			3,377		.08			.04			.35			.75
Class R-6:
10/31/13		10.08		.15		(.18	)		(.03	)		(.14	)		9.91		(.16	)		110		.20			.08			.38			1.45
10/31/12^6,7		10.00		.07		.06			.13			(.05	)		10.08		1.34			24		.13			.08			.39			.72

48	American Funds Portfolio Series

American Funds Tax-Exempt Preservation Portfolio

			(Loss) income from investment operations¹																		Ratio of			Ratio of
Period ended	Net asset value, beginning of period		Net investment income		Net (losses) gains on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Net asset value, end of period		Total return^2,3			Net assets, end of period (in thousands)		expenses to average net assets before reimbursements/ waivers⁴			expenses to average net assets after reimbursements/ waivers^3,4			Net effective expense ratio⁵			Ratio of net income to average net assets³
Class A:
10/31/13	$	10.11	$	.25	$	(.30	)	$	(.05	)	$	(.25	)	$	9.81		(.48	)%	$	122,445		.58	%		.45	%		.76	%		2.54	%
10/31/12^6,7		10.00		.12		.09			.21			(.10	)		10.11		2.10			71,341		.24			.19			.50			1.22
Class B:
10/31/13		10.12		.18		(.30	)		(.12	)		(.18	)		9.82		(1.21	)		111		1.29			1.16			1.47			1.83
10/31/12^6,7		10.00		.09		.09			.18			(.06	)		10.12		1.84			101		.53			.49			.80			.92
Class C:
10/31/13		10.10		.18		(.30	)		(.12	)		(.18	)		9.80		(1.17	)		38,342		1.28			1.15			1.46			1.85
10/31/12^6,7		10.00		.09		.09			.18			(.08	)		10.10		1.77			22,159		.55			.51			.82			.89
Class F-1:
10/31/13		10.11		.26		(.31	)		(.05	)		(.25	)		9.81		(.49	)		5,324		.56			.42			.73			2.56
10/31/12^6,7		10.00		.12		.09			.21			(.10	)		10.11		2.13			9,144		.20			.16			.47			1.24
Class F-2:
10/31/13		10.11		.28		(.30	)		(.02	)		(.28	)		9.81		(.22	)		8,287		.30			.16			.47			2.82
10/31/12^6,7		10.00		.13		.09			.22			(.11	)		10.11		2.25			12,032		.10			.05			.36			1.34

	Period ended October 31
Portfolio turnover rate for all share classes	2013			2012^6,7,9
Global Growth Portfolio		—	%¹⁰		40	%
Growth Portfolio		—	¹⁰		24
Growth and Income Portfolio		—	¹⁰		7
Balanced Portfolio		—	¹⁰		9
Income Portfolio		—	¹⁰		7
Tax-Advantaged Income Portfolio		2	⁹		45
Preservation Portfolio		11	⁹		16
Tax-Exempt Preservation Portfolio		28	⁹		36

¹	Based on average shares outstanding.
²	Total returns exclude any applicable sales charges.
³	This column reflects the impact, if any, of certain reimbursements/waivers from CRMC. During the periods shown, CRMC reduced fees for investment advisory services and reimbursed other fees and expenses.
⁴	This column does not include expenses of the underlying funds in which each fund invests.
⁵	This column reflects the net effective expense ratios for each fund and class, which are unaudited. These ratios include each class’s expense ratio combined with the weighted average net expense ratio of the underlying funds for the periods presented. See pages 52 to 58 for further information regarding fees and expenses.
⁶	Based on operations for the period shown and, accordingly, is not representative of a full year.
⁷	For the period May 18, 2012, commencement of operations, through October 31, 2012.
⁸	Amount less than $.01.
⁹	Portfolio turnover rates reflect the redemption (or removal) of CRMC’s initial capital investment, without which the portfolio turnover rates would have been lower.
¹⁰	Amount is either less than 1% or there is no turnover.

See Notes to Financial Statements

American Funds Portfolio Series

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of the American Funds Portfolio Series:

We have audited the accompanying statements of assets and liabilities, including the investment portfolios, of the American Funds Portfolio Series comprising the American Funds Global Growth Portfolio, American Funds Growth Portfolio, American Funds Growth and Income Portfolio, American Funds Balanced Portfolio, American Funds Income Portfolio, American Funds Tax-Advantaged Income Portfolio, American Funds Preservation Portfolio and American Funds Tax-Exempt Preservation Portfolio (the “Series”), as of October 31, 2013, and the related statements of operations for the year then ended, the statements of changes in net assets for the year ended October 31, 2013 and the period from May 18, 2012 (commencement of operations) to October 31, 2012, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Series’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Series is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Series’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of investments owned as of October 31, 2013, by correspondence with the custodian. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the funds comprising the American Funds Portfolio Series as of October 31, 2013, the results of their operations for the year then ended, the changes in their net assets for the year ended October 31, 2013 and the period from May 18, 2012 (commencement of operations) to October 31, 2012, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP

Costa Mesa, California
December 11, 2013

50	American Funds Portfolio Series

Tax information

unaudited

We are required to advise you of the federal tax status of certain distributions received by shareholders during the fiscal year. The series hereby designate the following amounts for the fiscal year ended October 31, 2013:

	Global Growth Portfolio			Growth Portfolio			Growth and Income Portfolio			Balanced Portfolio			Income Portfolio		Tax- Advantaged Income Portfolio			Preservation Portfolio		Tax-Exempt Preservation Portfolio
Long-term capital gains	$	100,000		$	156,000		$	223,000			—		$	400,000		—			—		—
Foreign taxes (per share)	$	0.006		$	0.002		$	0.003		$	0.003			—	$	0.004			—		—
Foreign source income (per share)	$	0.06		$	0.02		$	0.05		$	0.03			—	$	0.04			—		—
Qualified dividend income		100	%		100	%		100	%		100	%	$	19,414,000		100	%*	$	19,000		—
Corporate dividends received deduction	$	1,689,000			100	%	$	13,942,000		$	10,390,000		$	12,706,000	$	1,712,000		$	2,000		—
Exempt interest dividends		—			—			—			—			—	$	2,934,000			—		100	%
U.S. government income that may be exempt from state taxation	$	7,000		$	9,000		$	630,000		$	879,000		$	1,188,000	$	3,000		$	946,000		—

*The percentage applies only to the taxable ordinary income that has been reported on Form 1099-DIV.

Individual shareholders should refer to their Form 1099 or other tax information, which will be mailed in January 2014, to determine the calendar year amounts to be included on their 2013 tax returns. Shareholders should consult their tax advisors.

American Funds Portfolio Series

Expense example

unaudited

As a fund shareholder, you incur two types of costs: (1) transaction costs, such as initial sales charges on purchase payments (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 funds so you can compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period (May 1, 2013, through October 31, 2013).

Actual expenses:

The first line of each share class in the tables on the following pages 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 entitled “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 tables on the following pages 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 funds 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:

There are some account fees that are charged to certain types of accounts, such as individual retirement accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually), that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor. 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 also be lower by the amount of these fees.

Note that the expenses shown in the tables on the following pages 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 tables 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.

52	American Funds Portfolio Series

	Beginning account value 5/1/2013		Ending account value 10/31/2013		Expenses paid during period^1,2		Annualized expense ratio²			Effective expenses paid during period³		Effective annualized expense ratio⁴
American Funds Global Growth Portfolio
Class A — actual return	$	1,000.00	$	1,106.51	$	1.86		.35	%	$	4.51	.85	%
Class A — assumed 5% return		1,000.00		1,023.44		1.79		.35			4.33	.85
Class B — actual return		1,000.00		1,102.15		6.04		1.14			8.69	1.64
Class B — assumed 5% return		1,000.00		1,019.46		5.80		1.14			8.34	1.64
Class C — actual return		1,000.00		1,101.43		5.99		1.13			8.63	1.63
Class C — assumed 5% return		1,000.00		1,019.51		5.75		1.13			8.29	1.63
Class F-1 — actual return		1,000.00		1,105.64		2.12		.40			4.78	.90
Class F-1 — assumed 5% return		1,000.00		1,023.19		2.04		.40			4.58	.90
Class F-2 — actual return		1,000.00		1,107.94		.74		.14			3.40	.64
Class F-2 — assumed 5% return		1,000.00		1,024.50		.71		.14			3.26	.64
Class 529-A — actual return		1,000.00		1,105.72		1.80		.34			4.46	.84
Class 529-A — assumed 5% return		1,000.00		1,023.49		1.73		.34			4.28	.84
Class 529-B — actual return		1,000.00		1,101.35		6.51		1.23			9.16	1.73
Class 529-B — assumed 5% return		1,000.00		1,019.00		6.26		1.23			8.79	1.73
Class 529-C — actual return		1,000.00		1,101.52		6.46		1.22			9.11	1.72
Class 529-C — assumed 5% return		1,000.00		1,019.06		6.21		1.22			8.74	1.72
Class 529-E — actual return		1,000.00		1,104.21		3.66		.69			6.31	1.19
Class 529-E — assumed 5% return		1,000.00		1,021.73		3.52		.69			6.06	1.19
Class 529-F-1 — actual return		1,000.00		1,107.23		1.12		.21			3.77	.71
Class 529-F-1 — assumed 5% return		1,000.00		1,024.15		1.07		.21			3.62	.71
Class R-1 — actual return		1,000.00		1,102.15		5.93		1.12			8.58	1.62
Class R-1 — assumed 5% return		1,000.00		1,019.56		5.70		1.12			8.24	1.62
Class R-2 — actual return		1,000.00		1,102.23		5.83		1.10			8.48	1.60
Class R-2 — assumed 5% return		1,000.00		1,019.66		5.60		1.10			8.13	1.60
Class R-3 — actual return		1,000.00		1,103.51		3.76		.71			6.42	1.21
Class R-3 — assumed 5% return		1,000.00		1,021.63		3.62		.71			6.16	1.21
Class R-4 — actual return		1,000.00		1,106.43		1.65		.31			4.30	.81
Class R-4 — assumed 5% return		1,000.00		1,023.64		1.58		.31			4.13	.81
Class R-5 — actual return		1,000.00		1,107.85		.37		.07			3.03	.57
Class R-5 — assumed 5% return		1,000.00		1,024.85		.36		.07			2.91	.57
Class R-6 — actual return		1,000.00		1,107.43		.21		.04			2.87	.54
Class R-6 — assumed 5% return		1,000.00		1,025.00		.20		.04			2.75	.54

See page 58 for footnotes.

American Funds Portfolio Series

	Beginning account value 5/1/2013		Ending account value 10/31/2013		Expenses paid during period^1,2		Annualized expense ratio²			Effective expenses paid during period³		Effective annualized expense ratio⁴
American Funds Growth Portfolio
Class A — actual return	$	1,000.00	$	1,122.50	$	1.60		.30	%	$	3.96		.74	%
Class A — assumed 5% return		1,000.00		1,023.69		1.53		.30			3.77		.74
Class B — actual return		1,000.00		1,117.46		6.03		1.13			8.38		1.57
Class B — assumed 5% return		1,000.00		1,019.51		5.75		1.13			7.98		1.57
Class C — actual return		1,000.00		1,117.46		5.92		1.11			8.27		1.55
Class C — assumed 5% return		1,000.00		1,019.61		5.65		1.11			7.88		1.55
Class F-1 — actual return		1,000.00		1,121.70		2.09		.39			4.44		.83
Class F-1 — assumed 5% return		1,000.00		1,023.24		1.99		.39			4.23		.83
Class F-2 — actual return		1,000.00		1,123.10		.70		.13			3.05		.57
Class F-2 — assumed 5% return		1,000.00		1,024.55		.66		.13			2.91		.57
Class 529-A — actual return		1,000.00		1,121.70		1.98		.37			4.33		.81
Class 529-A — assumed 5% return		1,000.00		1,023.34		1.89		.37			4.13		.81
Class 529-B — actual return		1,000.00		1,116.56		6.51		1.22			8.86		1.66
Class 529-B — assumed 5% return		1,000.00		1,019.06		6.21		1.22			8.44		1.66
Class 529-C — actual return		1,000.00		1,117.55		6.46		1.21			8.81		1.65
Class 529-C — assumed 5% return		1,000.00		1,019.11		6.16		1.21			8.39		1.65
Class 529-E — actual return		1,000.00		1,120.39		3.63		.68			5.99		1.12
Class 529-E — assumed 5% return		1,000.00		1,021.78		3.47		.68			5.70		1.12
Class 529-F-1 — actual return		1,000.00		1,123.20		1.07		.20			3.43		.64
Class 529-F-1 — assumed 5% return		1,000.00		1,024.20		1.02		.20			3.26		.64
Class R-1 — actual return		1,000.00		1,117.37		5.87		1.10			8.22		1.54
Class R-1 — assumed 5% return		1,000.00		1,019.66		5.60		1.10			7.83		1.54
Class R-2 — actual return		1,000.00		1,117.37		5.92		1.11			8.27		1.55
Class R-2 — assumed 5% return		1,000.00		1,019.61		5.65		1.11			7.88		1.55
Class R-3 — actual return		1,000.00		1,119.39		3.74		.70			6.09		1.14
Class R-3 — assumed 5% return		1,000.00		1,021.68		3.57		.70			5.80		1.14
Class R-4 — actual return		1,000.00		1,122.50		1.66		.31			4.01		.75
Class R-4 — assumed 5% return		1,000.00		1,023.64		1.58		.31			3.82		.75
Class R-5 — actual return		1,000.00		1,123.00		.32		.06			2.68		.50
Class R-5 — assumed 5% return		1,000.00		1,024.90		.31		.06			2.55		.50
Class R-6 — actual return		1,000.00		1,123.80		.11		.02			2.46		.46
Class R-6 — assumed 5% return		1,000.00		1,025.10		.10		.02			2.35		.46

54	American Funds Portfolio Series

	Beginning account value 5/1/2013		Ending account value 10/31/2013		Expenses paid during period^1,2		Annualized expense ratio²			Effective expenses paid during period³		Effective annualized expense ratio⁴
American Funds Growth and Income Portfolio
Class A — actual return	$	1,000.00	$	1,076.50	$	1.52		.29	%	$	3.45		.66	%
Class A — assumed 5% return		1,000.00		1,023.74		1.48		.29			3.36		.66
Class B — actual return		1,000.00		1,071.49		5.90		1.13			7.83		1.50
Class B — assumed 5% return		1,000.00		1,019.51		5.75		1.13			7.63		1.50
Class C — actual return		1,000.00		1,071.28		5.80		1.11			7.73		1.48
Class C — assumed 5% return		1,000.00		1,019.61		5.65		1.11			7.53		1.48
Class F-1 — actual return		1,000.00		1,075.31		1.99		.38			3.92		.75
Class F-1 — assumed 5% return		1,000.00		1,023.29		1.94		.38			3.82		.75
Class F-2 — actual return		1,000.00		1,077.29		.68		.13			2.62		.50
Class F-2 — assumed 5% return		1,000.00		1,024.55		.66		.13			2.55		.50
Class 529-A — actual return		1,000.00		1,076.20		1.94		.37			3.87		.74
Class 529-A — assumed 5% return		1,000.00		1,023.34		1.89		.37			3.77		.74
Class 529-B — actual return		1,000.00		1,071.11		6.32		1.21			8.25		1.58
Class 529-B — assumed 5% return		1,000.00		1,019.11		6.16		1.21			8.03		1.58
Class 529-C — actual return		1,000.00		1,070.46		6.31		1.21			8.25		1.58
Class 529-C — assumed 5% return		1,000.00		1,019.11		6.16		1.21			8.03		1.58
Class 529-E — actual return		1,000.00		1,073.94		3.50		.67			5.44		1.04
Class 529-E — assumed 5% return		1,000.00		1,021.83		3.41		.67			5.30		1.04
Class 529-F-1 — actual return		1,000.00		1,077.04		1.05		.20			2.98		.57
Class 529-F-1 — assumed 5% return		1,000.00		1,024.20		1.02		.20			2.91		.57
Class R-1 — actual return		1,000.00		1,071.78		5.74		1.10			7.68		1.47
Class R-1 — assumed 5% return		1,000.00		1,019.66		5.60		1.10			7.48		1.47
Class R-2 — actual return		1,000.00		1,071.29		5.85		1.12			7.78		1.49
Class R-2 — assumed 5% return		1,000.00		1,019.56		5.70		1.12			7.58		1.49
Class R-3 — actual return		1,000.00		1,074.76		3.61		.69			5.54		1.06
Class R-3 — assumed 5% return		1,000.00		1,021.73		3.52		.69			5.40		1.06
Class R-4 — actual return		1,000.00		1,075.41		1.73		.33			3.66		.70
Class R-4 — assumed 5% return		1,000.00		1,023.54		1.68		.33			3.57		.70
Class R-5 — actual return		1,000.00		1,077.44		.31		.06			2.25		.43
Class R-5 — assumed 5% return		1,000.00		1,024.90		.31		.06			2.19		.43
Class R-6 — actual return		1,000.00		1,077.74		.10		.02			2.04		.39
Class R-6 — assumed 5% return		1,000.00		1,025.10		.10		.02			1.99		.39

See page 58 for footnotes.

American Funds Portfolio Series

	Beginning account value 5/1/2013		Ending account value 10/31/2013		Expenses paid during period^1,2		Annualized expense ratio²			Effective expenses paid during period³		Effective annualized expense ratio⁴
American Funds Balanced Portfolio
Class A — actual return	$	1,000.00	$	1,065.78	$	1.51		.29	%	$	3.28		.63	%
Class A — assumed 5% return		1,000.00		1,023.74		1.48		.29			3.21		.63
Class B — actual return		1,000.00		1,060.93		5.87		1.13			7.64		1.47
Class B — assumed 5% return		1,000.00		1,019.51		5.75		1.13			7.48		1.47
Class C — actual return		1,000.00		1,060.56		5.77		1.11			7.53		1.45
Class C — assumed 5% return		1,000.00		1,019.61		5.65		1.11			7.38		1.45
Class F-1 — actual return		1,000.00		1,064.59		2.03		.39			3.80		.73
Class F-1 — assumed 5% return		1,000.00		1,023.24		1.99		.39			3.72		.73
Class F-2 — actual return		1,000.00		1,066.60		.68		.13			2.45		.47
Class F-2 — assumed 5% return		1,000.00		1,024.55		.66		.13			2.40		.47
Class 529-A — actual return		1,000.00		1,064.78		1.93		.37			3.70		.71
Class 529-A — assumed 5% return		1,000.00		1,023.34		1.89		.37			3.62		.71
Class 529-B — actual return		1,000.00		1,060.15		6.34		1.22			8.10		1.56
Class 529-B — assumed 5% return		1,000.00		1,019.06		6.21		1.22			7.93		1.56
Class 529-C — actual return		1,000.00		1,060.77		6.29		1.21			8.05		1.55
Class 529-C — assumed 5% return		1,000.00		1,019.11		6.16		1.21			7.88		1.55
Class 529-E — actual return		1,000.00		1,063.16		3.54		.68			5.30		1.02
Class 529-E — assumed 5% return		1,000.00		1,021.78		3.47		.68			5.19		1.02
Class 529-F-1 — actual return		1,000.00		1,065.64		1.04		.20			2.81		.54
Class 529-F-1 — assumed 5% return		1,000.00		1,024.20		1.02		.20			2.75		.54
Class R-1 — actual return		1,000.00		1,060.92		5.82		1.12			7.58		1.46
Class R-1 — assumed 5% return		1,000.00		1,019.56		5.70		1.12			7.43		1.46
Class R-2 — actual return		1,000.00		1,061.20		5.82		1.12			7.59		1.46
Class R-2 — assumed 5% return		1,000.00		1,019.56		5.70		1.12			7.43		1.46
Class R-3 — actual return		1,000.00		1,063.05		3.54		.68			5.30		1.02
Class R-3 — assumed 5% return		1,000.00		1,021.78		3.47		.68			5.19		1.02
Class R-4 — actual return		1,000.00		1,066.08		1.56		.30			3.33		.64
Class R-4 — assumed 5% return		1,000.00		1,023.69		1.53		.30			3.26		.64
Class R-5 — actual return		1,000.00		1,066.90		.31		.06			2.08		.40
Class R-5 — assumed 5% return		1,000.00		1,024.90		.31		.06			2.04		.40
Class R-6 — actual return		1,000.00		1,067.06		.16		.03			1.93		.37
Class R-6 — assumed 5% return		1,000.00		1,025.05		.15		.03			1.89		.37

56	American Funds Portfolio Series

	Beginning account value 5/1/2013		Ending account value 10/31/2013		Expenses paid during period^1,2		Annualized expense ratio²			Effective expenses paid during period³		Effective annualized expense ratio⁴
American Funds Income Portfolio
Class A — actual return	$	1,000.00	$	1,032.56	$	1.69		.33	%	$	3.23		.63	%
Class A — assumed 5% return		1,000.00		1,023.54		1.68		.33			3.21		.63
Class B — actual return		1,000.00		1,028.99		5.78		1.13			7.31		1.43
Class B — assumed 5% return		1,000.00		1,019.51		5.75		1.13			7.27		1.43
Class C — actual return		1,000.00		1,028.37		5.73		1.12			7.26		1.42
Class C — assumed 5% return		1,000.00		1,019.56		5.70		1.12			7.22		1.42
Class F-1 — actual return		1,000.00		1,032.52		1.95		.38			3.48		.68
Class F-1 — assumed 5% return		1,000.00		1,023.29		1.94		.38			3.47		.68
Class F-2 — actual return		1,000.00		1,032.81		.67		.13			2.20		.43
Class F-2 — assumed 5% return		1,000.00		1,024.55		.66		.13			2.19		.43
Class 529-A — actual return		1,000.00		1,032.26		2.20		.43			3.74		.73
Class 529-A — assumed 5% return		1,000.00		1,023.04		2.19		.43			3.72		.73
Class 529-B — actual return		1,000.00		1,027.33		6.23		1.22			7.77		1.52
Class 529-B — assumed 5% return		1,000.00		1,019.06		6.21		1.22			7.73		1.52
Class 529-C — actual return		1,000.00		1,027.73		6.18		1.21			7.72		1.51
Class 529-C — assumed 5% return		1,000.00		1,019.11		6.16		1.21			7.68		1.51
Class 529-E — actual return		1,000.00		1,030.00		3.48		.68			5.01		.98
Class 529-E — assumed 5% return		1,000.00		1,021.78		3.47		.68			4.99		.98
Class 529-F-1 — actual return		1,000.00		1,033.31		1.03		.20			2.56		.50
Class 529-F-1 — assumed 5% return		1,000.00		1,024.20		1.02		.20			2.55		.50
Class R-1 — actual return		1,000.00		1,028.60		5.68		1.11			7.21		1.41
Class R-1 — assumed 5% return		1,000.00		1,019.61		5.65		1.11			7.17		1.41
Class R-2 — actual return		1,000.00		1,028.46		5.68		1.11			7.21		1.41
Class R-2 — assumed 5% return		1,000.00		1,019.61		5.65		1.11			7.17		1.41
Class R-3 — actual return		1,000.00		1,030.72		3.43		.67			4.96		.97
Class R-3 — assumed 5% return		1,000.00		1,021.83		3.41		.67			4.94		.97
Class R-4 — actual return		1,000.00		1,032.60		1.69		.33			3.23		.63
Class R-4 — assumed 5% return		1,000.00		1,023.54		1.68		.33			3.21		.63
Class R-5 — actual return		1,000.00		1,033.95		.31		.06			1.85		.36
Class R-5 — assumed 5% return		1,000.00		1,024.90		.31		.06			1.84		.36
Class R-6 — actual return		1,000.00		1,034.18		.10		.02			1.64		.32
Class R-6 — assumed 5% return		1,000.00		1,025.10		.10		.02			1.63		.32

American Funds Tax-Advantaged Income Portfolio
Class A — actual return	$	1,000.00	$	1,023.59	$	2.04		.40	%	$	3.93		.77	%
Class A — assumed 5% return		1,000.00		1,023.19		2.04		.40			3.92		.77
Class B — actual return		1,000.00		1,019.87		5.80		1.14			7.69		1.51
Class B — assumed 5% return		1,000.00		1,019.46		5.80		1.14			7.68		1.51
Class C — actual return		1,000.00		1,020.57		5.76		1.13			7.64		1.50
Class C — assumed 5% return		1,000.00		1,019.51		5.75		1.13			7.63		1.50
Class F-1 — actual return		1,000.00		1,024.64		2.09		.41			3.98		.78
Class F-1 — assumed 5% return		1,000.00		1,023.14		2.09		.41			3.97		.78
Class F-2 — actual return		1,000.00		1,024.97		.77		.15			2.65		.52
Class F-2 — assumed 5% return		1,000.00		1,024.45		.77		.15			2.65		.52

See page 58 for footnotes.

American Funds Portfolio Series

	Beginning account value 5/1/2013		Ending account value 10/31/2013		Expenses paid during period^1,2		Annualized expense ratio²			Effective expenses paid during period³		Effective annualized expense ratio⁴
American Funds Preservation Portfolio
Class A — actual return	$	1,000.00	$	989.59	$	1.86		.37	%	$	3.36		.67	%
Class A — assumed 5% return		1,000.00		1,023.34		1.89		.37			3.41		.67
Class B — actual return		1,000.00		986.68		5.76		1.15			7.26		1.45
Class B — assumed 5% return		1,000.00		1,019.41		5.85		1.15			7.38		1.45
Class C — actual return		1,000.00		985.85		5.71		1.14			7.21		1.44
Class C — assumed 5% return		1,000.00		1,019.46		5.80		1.14			7.32		1.44
Class F-1 — actual return		1,000.00		989.36		2.06		.41			3.56		.71
Class F-1 — assumed 5% return		1,000.00		1,023.14		2.09		.41			3.62		.71
Class F-2 — actual return		1,000.00		990.76		.80		.16			2.31		.46
Class F-2 — assumed 5% return		1,000.00		1,024.40		.82		.16			2.35		.46
Class 529-A — actual return		1,000.00		990.35		2.21		.44			3.71		.74
Class 529-A — assumed 5% return		1,000.00		1,022.99		2.24		.44			3.77		.74
Class 529-B — actual return		1,000.00		986.26		6.21		1.24			7.71		1.54
Class 529-B — assumed 5% return		1,000.00		1,018.95		6.31		1.24			7.83		1.54
Class 529-C — actual return		1,000.00		986.32		6.21		1.24			7.71		1.54
Class 529-C — assumed 5% return		1,000.00		1,018.95		6.31		1.24			7.83		1.54
Class 529-E — actual return		1,000.00		988.93		3.51		.70			5.01		1.00
Class 529-E — assumed 5% return		1,000.00		1,021.68		3.57		.70			5.09		1.00
Class 529-F-1 — actual return		1,000.00		991.46		1.15		.23			2.66		.53
Class 529-F-1 — assumed 5% return		1,000.00		1,024.05		1.17		.23			2.70		.53
Class R-1 — actual return		1,000.00		986.77		5.51		1.10			7.01		1.40
Class R-1 — assumed 5% return		1,000.00		1,019.66		5.60		1.10			7.12		1.40
Class R-2 — actual return		1,000.00		986.83		5.61		1.12			7.11		1.42
Class R-2 — assumed 5% return		1,000.00		1,019.56		5.70		1.12			7.22		1.42
Class R-3 — actual return		1,000.00		989.41		3.26		.65			4.76		.95
Class R-3 — assumed 5% return		1,000.00		1,021.93		3.31		.65			4.84		.95
Class R-4 — actual return		1,000.00		990.96		1.61		.32			3.11		.62
Class R-4 — assumed 5% return		1,000.00		1,023.59		1.63		.32			3.16		.62
Class R-5 — actual return		1,000.00		991.13		.45		.09			1.96		.39
Class R-5 — assumed 5% return		1,000.00		1,024.75		.46		.09			1.99		.39
Class R-6 — actual return		1,000.00		992.49		.20		.04			1.71		.34
Class R-6 — assumed 5% return		1,000.00		1,025.00		.20		.04			1.73		.34

American Funds Tax-Exempt Preservation Portfolio
Class A — actual return	$	1,000.00	$	979.31	$	2.20		.44	%	$	3.74		.75	%
Class A — assumed 5% return		1,000.00		1,022.99		2.24		.44			3.82		.75
Class B — actual return		1,000.00		975.64		5.73		1.15			7.27		1.46
Class B — assumed 5% return		1,000.00		1,019.41		5.85		1.15			7.43		1.46
Class C — actual return		1,000.00		975.68		5.68		1.14			7.22		1.45
Class C — assumed 5% return		1,000.00		1,019.46		5.80		1.14			7.38		1.45
Class F-1 — actual return		1,000.00		979.23		2.05		.41			3.59		.72
Class F-1 — assumed 5% return		1,000.00		1,023.14		2.09		.41			3.67		.72
Class F-2 — actual return		1,000.00		980.65		.75		.15			2.30		.46
Class F-2 — assumed 5% return		1,000.00		1,024.45		.77		.15			2.35		.46

¹	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).
²	The “expenses paid during period” and “annualized expense ratio” do not include the expenses of the underlying funds in which each fund invests.
³	The “effective expenses paid during period” are equal to the “effective 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).
⁴	The “effective annualized expense ratio” reflects the net annualized expense ratio of the class plus the class’s pro-rata share of the weighted average expense ratio of the underlying funds in which it invests.The annualized weighted average expense ratio of the underlying funds for the period reflects the net actual expense ratio of each underlying fund for the period, annualized and weighted for the fund’s relative average investment therein during the period.

58	American Funds Portfolio Series

Board of trustees and other officers

“Independent” trustees¹

Name and age	Year first elected a trustee of the series²	Principal occupation(s) during past five years	Number of portfolios in fund complex overseen by trustee	Other directorships³ held by trustee
William H. Baribault, 68	2012	Chairman of the Board and CEO, Oakwood Enterprises (private investment and consulting)	69	None
James G. Ellis, 66	2012	Dean and Professor of Marketing, Marshall School of Business, University of Southern California	69	Quiksilver, Inc.
Leonard R. Fuller, 67	2012	President and CEO, Fuller Consulting (financial management consulting firm)	69	None
R. Clark Hooper, 67 Chairman of the Board(Independent and Non-Executive)	2012	Private investor	71	JPMorgan Value Opportunities Fund, Inc.; The Swiss Helvetia Fund, Inc.
Merit E. Janow, 55	2012	Dean and Professor, Columbia University, School of International and Public Affairs	68	The NASDAQ Stock Market LLC; Trimble Navigation Limited
Laurel B. Mitchell, Ph.D., 58	2012	Clinical Professor and Director, Accounting Program, University of Redlands	65	None
Frank M. Sanchez, 70	2012	Principal, The Sanchez Family Corporation dba McDonald’s Restaurants (McDonald’s licensee)	65	None
Margaret Spellings, 56	2012	President, George W. Bush Foundation; former President and CEO, Margaret Spellings & Company (public policy and strategic consulting); former President, U.S. Chamber Foundation and Senior Advisor to the President and CEO, U.S. Chamber of Commerce; former U.S. Secretary of Education, U.S. Department of Education	69	None
Steadman Upham, Ph.D., 64	2012	President and University Professor, The University of Tulsa	68	None

We are saddened by the loss of W. Scott Hedrick who passed away on November 3, 2013. Mr. Hedrick served as an independent board member on the boards of various American Funds since 2007. His wise counsel and friendship will be missed.

“Interested” trustee^4,5

Name, age and position with series		Year first elected a trustee or officer of the series²		Principal occupation(s) during past five years and positions held with affiliated entities or the principal underwriter of the series		Number of portfolios in fund complex overseen by trustee		Other directorships³ held by trustee
Bradley J. Vogt, 48 Vice Chairman of the Board		2012		Director, Capital Research and Management Company; Chairman, Capital Research Company;⁶ Senior Vice President — Capital Research Global Investors,Capital Research and Management Company; Director, American Funds Distributors, Inc.⁶		15		None

The series’ statement of additional information includes further details about the series’ trustees and is available without charge upon request by calling American Funds Service Company at (800) 421-4225 or by visiting the American Funds website at americanfunds.com. The address for all trustees and officers of the series is 333 South Hope Street, Los Angeles, CA90071, Attention: Secretary.

See page 60 for footnotes.

American Funds Portfolio Series

Other officers⁵

Name, age and position with series	Year first elected an officer of the series²	Principal occupation(s) during past five years and positions held with affiliated entities or the principal underwriter of the series
Walter R. Burkley, 47 President	2012	Senior Vice President and Senior Counsel — Fund Business Management Group, Capital Research and Management Company; Director, Capital Research Company⁶
Alan N. Berro, 53 Senior Vice President	2012	Senior Vice President — Capital World Investors, Capital Research and Management Company
James B. Lovelace, 57 Senior Vice President	2012	Senior Vice President — Capital Research Global Investors, Capital Research and Management Company; Director, Capital Research and Management Company
Wesley K.-S. Phoa, 47 Senior Vice President	2012	Senior Vice President — Capital Fixed Income Investors, Capital Research Company;⁶Senior Vice President — Capital Fixed Income Investors, Capital International Research, Inc.;⁶Vice President, Capital Strategy Research, Inc.;⁶Senior Vice President — Capital Fixed Income Investors, Capital Bank and Trust Company⁶
John H. Smet, 57 Senior Vice President	2012	Senior Vice President — Capital Fixed Income Investors, Capital Research and Management Company; Director, Capital Research and Management Company
Andrew B. Suzman, 46 Senior Vice President	2012	Senior Vice President — Capital World Investors, Capital Research Company;⁶Senior Vice President — Capital World Investors, Capital Bank and Trust Company;⁶Director, American Funds Distributors, Inc.;⁶ Director, Capital Strategy Research, Inc.;⁶Director, The Capital Group Companies, Inc.⁶
Maria T. Manotok, 39 Vice President	2012	Vice President and Associate Counsel — Fund Business Management Group, Capital Research and Management Company; Vice President and Associate Counsel, Capital Group Companies Global⁶
Steven I. Koszalka, 49 Secretary	2012	Vice President — Fund Business Management Group, Capital Research and Management Company
Gregory F. Niland, 42 Treasurer	2012	Vice President — Fund Business Management Group, Capital Research and Management Company
Karl C. Grauman, 45 Assistant Treasurer	2012	Vice President — Fund Business Management Group, Capital Research and Management Company
Dori Laskin, 62 Assistant Treasurer	2012	Vice President — Fund Business Management Group, Capital Research and Management Company

¹	The term “independent” trustee refers to a director who is not an “interested person” of the series within the meaning of the Investment Company Act of 1940.
2	Trustees and officers of the series serve until their resignation,removal or retirement.
³	This includes all directorships (other than those in the American Funds or other funds managed by Capital Research and Management Company) that are held by each trustee as a trustee or director of a public company or a registered investment company.
4	“Interested persons” within the meaning of the Investment Company Act of 1940,on the basis of their affiliation with the series’ investment adviser,Capital Research and Management Company,or affiliated entities (including the series’ principal underwriter).
5	All of the officers listed are officers and/or directors/trustees of one or more of the other funds for which Capital Research and Management Company serves as investment adviser.
6	Company affiliated with Capital Research and Management Company.

60	American Funds Portfolio Series

Office of the series
6455 Irvine Center Drive
Irvine, CA 92618-4518

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

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

Bingham McCutchen LLP

355 South Grand Avenue, Suite 4400
Los Angeles, CA 90071-3106

Independent registered public accounting firm

Deloitte & Touche LLP
695 Town Center Drive
Suite 1200
Costa Mesa, CA 92626-7188

Principal underwriter

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

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the series 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.

“Proxy Voting Guidelines for American Funds Portfolio Series” — which describes how we vote proxies relating to the underlying funds held in the portfolios — is available on the American Funds website or upon request by calling AFS. The series 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.

American Funds Portfolio Series 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 American Funds Portfolio Series, but it also may be used as sales literature when preceded or accompanied by the current prospectus, which gives details about charges, expenses, investment objectives and operating policies of the series. If used as sales material after December 31, 2013, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.

The American Funds 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 25 years of investment experience, including 20 years at our company, reflecting a career commitment to our long-term approach.¹

The Capital System^SM

Our investment process, The Capital System, combines individual accountability with teamwork. Each fund is divided into portions that are managed independently by investment professionals with diverse backgrounds, ages and investment approaches. An extensive global research effort is the backbone of our system.

Superior long-term track record

Our equity funds have beaten their Lipper peer indexes in 90% of 10-year periods and 96% of 20-year periods. Our fixed-income funds have beaten their Lipper indexes in 58% of 10-year periods and 63% of 20-year periods.²Our fund management fees have been among the lowest in the industry.³

¹	Portfolio manager experience as of December 31, 2012.
²	Based on Class A share results for rolling periods through December 31, 2012. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date.
³	Based on management fees for the 20-year period ended December 31, 2012, versus comparable Lipper categories, excluding funds of funds.

		Printed on paper containing 10% post-consumer waste Printed with inks containing soy and/or vegetable oil
Lit No. MFGEARX-900-1213P Litho in USA CGD/Q/10216-S36729

ITEM 2 – Code of Ethics

The Registrant has adopted a Code of Ethics that applies to its Principal Executive Officer and Principal Financial Officer. The Registrant undertakes to provide to any person without charge, upon request, a copy of the Code of Ethics. Such request can be made to American Funds Service Company at 800/421-9225 or to the Secretary of the Registrant, 6455 Irvine Center Drive, Irvine, California 92618.

ITEM 3 – Audit Committee Financial Expert

The Registrant’s board has determined that Laurel B. Mitchell, a member of the Registrant’s audit committee, is an “audit committee financial expert” and "independent," as such terms are defined in this Item. This designation will not increase the designee’s duties, obligations or liability as compared to his or her duties, obligations and liability as a member of the audit committee and of the board, nor will it reduce the responsibility of the other audit committee members. There may be other individuals who, through education or experience, would qualify as "audit committee financial experts" if the board had designated them as such. Most importantly, the board believes each member of the audit committee contributes significantly to the effective oversight of the Registrant’s financial statements and condition.

ITEM 4 – Principal Accountant Fees and Services

Registrant:
	a) Audit Fees:
		2012	$18,000
		2013	$34,000

	b) Audit-Related Fees:
		2012	None
		2013	$2,000
		The audit-related fees consist of assurance and related services relating to the examination of the Registrant’s investment adviser conducted in accordance with Statement on Standards for Attestation Engagements Number 16 issued by the American Institute of Certified Public Accountants.

	c) Tax Fees:
		2012	$9,000
		2013	$16,000
		The tax fees consist of professional services relating to the preparation of the Registrant’s tax returns.

	d) All Other Fees:
		2012	None
		2013	None

Adviser and affiliates (includes only fees for non-audit services billed to the adviser and affiliates for engagements that relate directly to the operations and financial reporting of the Registrant and were subject to the pre-approval policies described below):
	a) Audit Fees:
		Not Applicable

	b) Audit-Related Fees:
		2012	$1,028,000
		2013	$1,046,000
		The audit-related fees consist of assurance and related services relating to the examination of the Registrant’s transfer agent, principal underwriter and investment adviser conducted in accordance with Statement on Standards for Attestation Engagements Number 16 issued by the American Institute of Certified Public Accountants.

	c) Tax Fees:
		2012	$18,000
		2013	$36,000
		The tax fees consist of consulting services relating to the Registrant’s investments.

	d) All Other Fees:
		2012	$2,000
		2013	$2,000
		The other fees consist of subscription services related to an accounting research tool.

All audit and permissible non-audit services that the Registrant’s audit committee considers compatible with maintaining the independent registered public accounting firm’s independence are required to be pre-approved by the committee. The pre-approval requirement will extend to all non-audit services provided to the Registrant, the investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant, if the engagement relates directly to the operations and financial reporting of the Registrant. The committee will not delegate its responsibility to pre-approve these services to the investment adviser. The committee may delegate to one or more committee members the authority to review and pre-approve audit and permissible non-audit services. Actions taken under any such delegation will be reported to the full committee at its next meeting. The pre-approval requirement is waived with respect to non-audit services if certain conditions are met. The pre-approval requirement was not waived for any of the non-audit services listed above provided to the Registrant, adviser and affiliates.

Aggregate non-audit fees paid to the Registrant’s auditors, including fees for all services billed to the Registrant, adviser and affiliates that provide ongoing services to the Registrant, were $1,634,000 for fiscal year 2012 and $1,474,000 for fiscal year 2013. The non-audit services represented by these amounts were brought to the attention of the committee and considered to be compatible with maintaining the auditors’ independence.

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

Not applicable, insofar as the schedule is included as part of the report to shareholders filed under Item 1 of this Form.

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)	The Code of Ethics that is the subject of the disclosure required by Item 2 is attached as an exhibit hereto.

(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.

	AMERICAN FUNDS PORTFOLIO SERIES

	By /s/ Walter R. Burkley
	Walter R. Burkley, President and Principal Executive Officer

	Date: December 31, 2013

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/ Walter R. Burkley

Walter R. Burkley, President and

Principal Executive Officer

Date: December 31, 2013

By /s/ Gregory F. Niland

Gregory F. Niland, Treasurer and

Principal Financial Officer

Date: December 31, 2013