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: (213) 486-9200

Date of fiscal year end: October 31

Date of reporting period: October 31, 2016

Steven I. Koszalka

American Funds Portfolio Series

333 South Hope Street

Los Angeles, California 90071

(Name and Address of Agent for Service)

ITEM 1 – Reports to Stockholders

Invest in portfolios
designed to pursue
real-life objectives.

American Funds
Portfolio Series^®

Annual report
for the year ended
October 31, 2016

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 85 years, Capital has invested with a long-term focus based on thorough research and attention to risk.

Fund results shown in this report, unless otherwise indicated, are for Class A shares at net asset value. If a sales charge 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 total returns on a $1,000 investment with all distributions reinvested for periods ended September 30, 2016 (the most recent calendar quarter-end). Also shown are the expense ratios as of the series prospectus dated January 1, 2017 (unaudited):

	Cumulative total returns			Average annual total returns
Class A shares	1 year			Lifetime (since 5/18/12)			Expense ratio

Reflecting 5.75% maximum initial sales charge:
American Funds Global Growth Portfolio^SM		4.79	%		9.70	%		0.82	%
American Funds Growth Portfolio^SM		6.34			11.53			0.76
American Funds Growth and Income Portfolio^SM		6.31			9.19			0.71
American Funds Balanced Portfolio^SM		3.99			8.19			0.73
American Funds Income Portfolio^SM		4.84			6.18			0.65

Reflecting 3.75% maximum initial sales charge:
American Funds Tax-Advantaged Income Portfolio^SM		6.11			7.80			0.78

Reflecting 2.50% maximum initial sales charge:
American Funds Preservation Portfolio^SM		–0.47			0.60			0.71
American Funds Tax-Exempt Preservation Portfolio^SM		0.51			1.74			0.74

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. 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.

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.

Contents

1	Letter to investors
4	The value of a $10,000 investment
6	A look inside the funds
10	Investment portfolios
18	Financial statements
74	Board of trustees and other officers

Fellow investors:

We are pleased to present the annual report for the American Funds Portfolio Series, for the period ended October 31, 2016. The reporting period saw much volatility, including dramatic reactions to the U.K.’s surprise decision to leave the European Union in June, and uncertainty amid the U.S. presidential campaign. Despite these conditions, all the funds within the series returned positive results. Returns ranged from 5.30% (for American Funds Income Portfolio) to 1.86% (for American Funds Global Growth Portfolio, which invests significantly in issuers outside the U.S.).

The U.S. stock market did well despite increased volatility. U.S. stocks saw modest gains overall midyear, despite weakening economic data and the turmoil caused by the U.K.’s vote to exit the European Union. By the end of the fiscal year, U.S. stocks weakened somewhat amid interest rate worries and disappointing earnings from several companies. Fixed income funds advanced over most of the year, while in the last quarter, those with higher credit exposures fared the best. The euro zone quickly rebounded from the selloff that followed the U.K.’s exit from the European Union. Generally, funds with an income focus, which are more heavily weighted in the higher yielding telecommunications and utilities sectors, tended to outpace those with a growth objective. This trend continued until the last quarter of the year, when these companies’ yields weakened a bit.

As always, we encourage investors to keep short-term results in their proper perspective, especially during periods of market and political volatility.

About the series

The American Funds Portfolio Series consists of eight funds of funds that are designed to help investors pursue real-life goals, both long- and short-term, within a framework of three common objectives: preservation, balance and growth. These funds of funds can be used individually or in combination, based on an investor’s needs, risk tolerance and time horizon (the total length of time that an investor expects to hold a security or portfolio, before it will be used to fund retirement or college, for example).

The series was created by the American Funds Portfolio Oversight Committee, a group of seasoned investment professionals with varied backgrounds, diverse investment approaches and decades of experience. The Committee regularly monitors the Portfolio Series funds.

The economy

The U.S. economy grew at a modest pace over the first half of the fiscal year. However, by the end of the period, real gross domestic product increased at an annual rate of 3.2%, the biggest gain since 2014, and this on top of the previous quarter’s 1.4% gain. This result reflects an increase in personal consumption expenditures (PCE), exports and private inventory investment, among other factors. The U.S. consumer appears in relatively good shape with household debt near 30-year-lows, unemployment levels down and the emergence of the first signs of wage growth.

The stock market

U.S. stocks advanced at the end of the period, having recovered from earlier volatility. Information technology stocks lifted the Standard & Poor’s 500 Composite Index* (a market capitalization-weighted index based on the results of 500 widely held common stocks) to 4.51%. The increase was buoyed by the Federal Reserve’s decision to let interest rates stand at its July and September meetings.

International markets showed mixed results early on, but advanced later. The

American Funds Portfolio Series

Andrew Suzman

Principal investment officer
American Funds
Portfolio Series

“We created the portfolio series to provide investors with a core of high-quality, actively managed investments that can help them with savings goals like college and retirement. Our approach requires a meticulous examination and selection of the underlying funds. We feel the series simplifies investment complexity for ordinary individuals and families.”

MSCI All Country World ex USA Index*, a leading benchmark for developed and developing markets outside the U.S., registered 0.22% for the period. Japanese companies rebounded from earlier losses, and non-Japan Pacific companies rallied. Companies domiciled in the euro zone rebounded from the selloff that occurred following the Brexit referendum in June, but fell by the end of the year amid continued uncertainty. U.K.-listed companies lagged their euro zone counterparts, in part due to the currency weakness.

The bond market

U.S. bonds were volatile during late 2015, with yields trending higher immediately following the Fed rate hike. By the end of the fiscal year the Bloomberg Barclays U.S. Aggregate Index* (a measure of the broad fixed income investment-grade market of bonds rated BBB/Baa and above) gained 4.37%.

In October 2016, the yield on the bellwether 10-year Treasury note rose 24 basis points to 1.84%. Higher yields across the Treasury curve hurt bond prices in most sectors. Investment-grade corporates declined by 0.81%, while high-yield corporates rose 0.39%. Investment-grade corporate spreads to Treasuries tightened six basis points to end the month at 132 basis points.

Inflation expectations have crept higher over the past few months. Yet Treasury Inflation Protected Securities prices ended October 0.40% lower, due largely to the impact of higher government bond yields. Municipal bonds lost 1.05% in a month of record-setting issuance; the increased supply, in combination with rising Treasury yields, put downward pressure on muni bond prices.

Inside the series

As the eight portfolios in the series are combinations of individual funds, the results of the underlying funds are a primary driver of the series results. Within fixed income, funds with higher credit exposures fared the best.

All equity funds within the series delivered positive results. Toward the end of the fiscal year, higher yielding companies, such as those in the consumer telecommunications and utilities sectors, slightly weakened from earlier advances. This was a drag on the returns of funds with an income focus.

Bond funds experienced the greatest returns and were strengthened by holdings in such underlying funds as American High-Income Trust^®, which led with a gain of 8.36%. Also benefitting the fixed income category was American High-Income Municipal Bond Fund^®, which seeks high-yield, tax-exempt income through bonds and notes, with a gain of 6.72%. American Mutual Fund^®, an equity fund which aims for conservation of capital, also saw a gain of 6.33%. The funds in the series geared toward preservation posted more modest gains, such as The Bond Fund of America^®, at 4.21%.

The table on page 3 shows the lifetime results for the funds (since May 18, 2012). We include in this table the indexes we use to compare our funds to their markets. This year we changed and/or added certain benchmark indexes (indicated with footnote symbols 3 and 4), as we deemed them more representative of the funds’ objectives.

Please keep in mind that this four-and-a-half-year period is still a relatively brief investment time frame. We also encourage investors to bear in mind that the funds in the series are designed as long-term investments.

Moving forward

Strong employment and wage growth are currently supporting consumer health as construction and housing gain momentum. But given that companies in many areas of the market are fully valued, selectivity is important. As always, we take a long-term, research driven approach to investing that has served clients for more than 80 years.

We thank you for your continued interest in the American Funds Portfolio Series and look forward to reporting to you again in six months.

Cordially,

Bradley J. Vogt

Vice Chairman of the Board

Walter R. Burkley

President

December 12, 2016

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

*	Sources: Bloomberg Index Services Ltd., MSCI and S&P Dow Jones Indices LLC. The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

2	American Funds Portfolio Series

Results at a glance

For periods ended October 31, 2016, with all distributions reinvested for Class A shares

	Cumulative total returns			Average annual total returns
	1 year			Lifetime (since 5/18/12)

American Funds Global Growth Portfolio		1.86	%		10.49	%
MSCI All Country World Index^1,2		2.05			9.70
Lipper Global Funds Index		1.67			10.29

American Funds Growth Portfolio		3.41			12.25
Standard & Poor’s 500 Composite Index¹		4.51			14.17
MSCI All Country World ex USA Index^1,2,3		0.22			6.07
Lipper Growth Funds Index		2.38			13.65

American Funds Growth and Income Portfolio		3.98			9.95
Standard & Poor’s 500 Composite Index¹		4.51			14.17
MSCI All Country World ex USA Index^1,2,3		0.22			6.07
Bloomberg Barclays Global Aggregate Index^1,3		5.59			0.97
Lipper Growth and Income Funds Index		3.96			11.31

American Funds Balanced Portfolio		3.45			9.12
Standard & Poor’s 500 Composite Index¹		4.51			14.17
MSCI All Country World ex USA Index^1,2,3		0.22			6.07
Bloomberg Barclays U.S. Aggregate Index^1,3		4.37			2.59
Lipper Balanced Funds Index		3.56			8.29

American Funds Income Portfolio		5.30			7.15
Standard & Poor’s 500 Composite Index¹		4.51			14.17
MSCI All Country World ex USA Index^1,2,3		0.22			6.07
Bloomberg Barclays U.S. Aggregate Index^1,3		4.37			2.59
Lipper Income Funds Index		4.08			5.93

American Funds Tax-Advantaged Income Portfolio		4.52			8.27
Standard & Poor’s 500 Composite Index^1,3		4.51			14.17
MSCI All Country World ex USA Index^1,2,3		0.22			6.07
Bloomberg Barclays Municipal Bond Index¹		4.06			3.45
Lipper Income Funds Index		4.08			5.93

American Funds Preservation Portfolio		1.90			1.14
Bloomberg Barclays 1-5 Year U.S. Government/Credit A+ Index^1,3		1.75			1.28
Bloomberg Barclays U.S. Government/Credit 1-7 Years ex BBB Index^1,4		2.22			1.55
Lipper Short-Intermediate Investment-Grade Debt Funds Index		2.97			1.93

American Funds Tax-Exempt Preservation Portfolio		2.08			2.18
Bloomberg Barclays Municipal Short-Intermediate 1-10 Years Index¹		2.01			2.07
Lipper Intermediate Municipal Debt Funds Index		3.40			2.67

¹	Sources: Bloomberg Index Services Ltd., MSCI and S&P Dow Jones Indices LLC. The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.
²	Results reflect dividends net of withholding taxes.
³	This index was added as a benchmark for the fund, as it is more representative of the fund’s objective.
⁴	This index is being replaced by the Bloomberg Barclays 1-5 Year U.S. Government/Credit A+ Index, which is more representative of the fund’s objective.

The MSCI ACWI is a free float-adjusted market capitalization-weighted index that is designed to measure results of more than 40 developed and emerging equity markets. MSCI All Country World ex USA Index is a free float-adjusted market capitalization weighted index that is designed to measure equity market results of more than 40 global developed and emerging markets, excluding the United States. 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 BBB/Baa and above) 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. Lipper indexes track the largest mutual funds (no more than 30), represented by one share class per fund, in the corresponding Lipper category.

Bloomberg Barclays Municipal Bond Index is a market-value-weighted index designed to represent the long-term investment-grade tax-exempt bond market. Bloomberg 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. Bloomberg 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. Bloomberg Barclays Global Aggregate Index represents the global investment-grade fixed income markets. Bloomberg Barclays U.S. Aggregate Index represents the U.S. investment-grade fixed-rate bond market. Bloomberg Barclays 1-5 Year U.S. Government/ Credit A+ 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 five years, including A-rated securities and above.

American Funds Portfolio Series

The value of a $10,000 investment

(for periods ended October 31, 2016, 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, 2016)*

	1 year	Lifetime (since 5/18/12)

Class A shares	–4.00%	9.03%

*	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, 2016)*

	1 year	Lifetime (since 5/18/12)

Class A shares	–2.54%	10.77%

*	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, 2016)*

	1 year	Lifetime (since 5/18/12)

Class A shares	–2.00%	8.50%

*	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, 2016)*

	1 year	Lifetime (since 5/18/12)

Class A shares	–2.51%	7.68%

*	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	Sources: Bloomberg Index Services Ltd., MSCI and S&P Dow Jones Indices LLC. The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

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, 2016)*

	1 year	Lifetime (since 5/18/12)

Class A shares	–0.71%	5.73%

*	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, 2016)*

	1 year	Lifetime (since 5/18/12)

Class A shares	0.62%	7.34%

*	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, 2016)*

	1 year	Lifetime (since 5/18/12)

Class A shares	–0.69%	0.56%

*	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, 2016)*

	1 year	Lifetime (since 5/18/12)

Class A shares	–0.43%	1.59%

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

⁵	Results reflect dividends net of withholding taxes.
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.

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

A look inside the funds

American Funds Portfolio Series was launched in May 2012 to help investors pursue preservation, income, 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.

The members of the Portfolio Oversight Committee actively monitor the series to keep the portfolios aligned with their objectives.

The pages that follow describe the funds’ objectives and the key drivers of results during the reporting period. They also include a table showing the target allocations of the underlying funds.

6	American Funds Portfolio Series

American Funds Global Growth Portfolio

Underlying funds:

30% Capital World Growth and Income Fund^®

30% New Perspective Fund^®

20% New World Fund^®

20% The New Economy Fund^®

The fund’s investment objective is to provide long-term growth of capital. It will attempt to achieve its objective by investing in a mix of American Funds in different combinations and weightings. The underlying American Funds will primarily consist of growth funds and growth-and-income funds. The fund will invest at least 25% of its assets in underlying funds that invest significantly (under normal market conditions, at least 40%) in issuers outside the United States.

For the 12-month period ended October 31, 2016, the fund’s A shares had a return of 1.86%. Among the fund’s underlying funds, New World Fund contributed to results, while Capital World Growth and Income Fund, New Perspective Fund and The New Economy Fund lagged somewhat.

American Funds Growth Portfolio

Underlying funds:

30% AMCAP Fund^®

30% Fundamental Investors^®

25% EuroPacific Growth Fund^®

15% SMALLCAP World Fund^®

The fund’s investment objective is to provide long-term growth of capital. It will attempt to achieve its objective by investing in a mix of American Funds in different combinations and weightings. The underlying American Funds will primarily consist of growth funds and growth-and-income funds, which principally invest in equity securities and which may have significant holdings of issuers domiciled outside the United States.

For the 12-month period ended October 31, 2016, the fund’s A shares had a return of 3.41%. Among the fund’s underlying funds, Fundamental Investors and SMALLCAP World Fund contributed to results, while EuroPacific Growth Fund lagged with a small positive result.

American Funds Growth and Income Portfolio

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^®

The fund’s investment objective is to provide long-term growth of capital while providing current income. It will attempt to achieve its objectives by investing in a mix of American Funds in different combinations and weightings. The underlying American Funds may represent a variety of fund categories such as growth funds, growth-and-income funds, equity-income funds, balanced funds and bond funds.

For the 12-month period ended October 31, 2016, the fund’s A shares had a return of 3.98%. Among the fund’s underlying funds, The Investment Company of America, Capital World Bond Fund and The Growth Fund of America contributed to results, while Capital Income Builder and Capital World Growth and Income Fund lagged somewhat.

American Funds Portfolio Series

American Funds Balanced Portfolio

Underlying funds:

20% American Balanced Fund^®

20% American Funds Global Balanced Fund^SM

20% The Bond Fund of America^®

20% New Perspective Fund^®

10% Capital World Growth and Income Fund^®

10% Washington Mutual Investors Fund^SM

The fund’s investment objective is to provide current income and long-term growth of capital and income. It will attempt to achieve its objectives by investing in a mix of American Funds in different combinations and weightings. The underlying American Funds may represent a variety of fund categories such as growth funds, growth-and-income funds, equity-income funds, balanced funds and bond funds. The fund will invest at least 45% of its assets in common stocks and other equity investments, and through its investments in the underlying funds, will invest at least 25% of the value of its assets in bonds and other debt securities (including money market instruments).

For the 12-month period ended October 31, 2016, the fund’s A shares had a return of 3.45%. Among the fund’s underlying funds, Washington Mutual Investors Fund, American Balanced Fund and The Bond Fund of America contributed to results, while New Perspective Fund and Capital World Growth and Income Fund lagged.

American Funds Income Portfolio

Underlying funds:

25% Capital Income Builder^®

25% The Income Fund of America^®

20% American Mutual Fund^®

15% American High-Income Trust^®

15% U.S. Government Securities Fund^®

The fund’s investment objective is to provide current income and, secondarily, long-term growth of capital. It will attempt to achieve its objectives by investing in a mix of American Funds in different combinations and weightings. The underlying American Funds may represent a variety of fund categories such as bond funds, balanced funds, equity-income funds, growth-and-income funds and growth funds.

For the 12-month period ended October 31, 2016, the fund’s A shares had a return of 5.30%. Among the fund’s underlying funds, American High-Income Trust, American Mutual Fund and The Income Fund of America contributed to results, while Capital Income Builder and U.S. Government Securities Fund lagged somewhat.

American Funds Tax-Advantaged Income Portfolio

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^®

The fund’s investment objective is to provide current income, a portion of which is exempt from regular federal income tax, while secondarily striving for long-term growth of capital. It will attempt to achieve its objectives by investing in a mix of American Funds in different combinations and weightings. The underlying American Funds may represent a variety of fund categories such as bond funds, balanced funds, equity income funds, growth-and-income funds and growth funds. The fund will seek to generate a material portion of its current income from underlying funds that invest in bonds that are exempt from regular income tax, such as municipal bonds.

For the 12-month period ended October 31, 2016, the fund’s A shares had a return of 4.52%. Among the underlying funds, all contributed to results, with American High-Income Municipal Bond Fund and Washington Mutual Investors Fund leading. Capital World Growth and Income Fund lagged somewhat.^.

8	American Funds Portfolio Series

American Funds Preservation Portfolio

Underlying funds:

40% Intermediate Bond Fund of America^®

40% Short-Term Bond Fund of America^®

20% The Bond Fund of America^®

The fund’s investment objective is to provide current income, consistent with preservation of capital. It will attempt to achieve its objective by investing in a mix of American Funds in different combinations and weightings. The fund principally invests in funds that seek current income through bond investments.

For the 12-month period ended October 31, 2016, the fund’s A shares had a return of 1.90%. All of the underlying funds contributed modestly to results, led by The Bond Fund of America. Short-Term Bond Fund of America lagged somewhat.

American Funds Tax-Exempt Preservation Portfolio

Underlying funds:

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

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

The fund’s investment objective is to provide current income that is exempt from regular federal income tax, consistent with preservation of capital. It will attempt to achieve its investment objective by investing in a mix of American Funds in different combinations and weightings. The fund principally invests in funds that seek current income through bond investments. The fund will strive to generate a material portion of its current income from underlying funds that invest in bonds that are exempt from regular income tax, such as municipal bonds.

For the 12-month period ended October 31, 2016, the fund’s A shares had a return of 2.08%. Both of the fund’s underlying funds modestly contributed to results, with The Tax-Exempt Bond Fund of America being the most additive.

The underlying fund allocations are as of 10/31/16. 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, 2016

Fund investments	Shares		Value (000)
Growth funds 70%
New Perspective Fund, Class R-6		14,589,141	$	535,422
New World Fund, Inc., Class R-6		6,638,363		357,343
The New Economy Fund, Class R-6		9,801,754		356,392
				1,249,157

Growth-and-income funds 30%
Capital World Growth and Income Fund, Class R-6		12,022,428		536,199

Total investment securities 100% (cost: $1,765,873,000)				1,785,356
Other assets less liabilities 0%				(717	)
Net assets 100%			$	1,784,639

See Notes to Financial Statements

10	American Funds Portfolio Series

American Funds Growth Portfolio

Investment portfolio, October 31, 2016

Fund investments	Shares		Value (000)
Growth funds 70%
AMCAP Fund, Class R-6		45,697,602	$	1,229,723
EuroPacific Growth Fund, Class R-6		22,000,045		1,028,722
SMALLCAP World Fund, Inc., Class R-6		13,300,802		614,763
				2,873,208
Growth-and-income funds 30%
Fundamental Investors, Class R-6		23,261,210		1,241,683

Total investment securities 100% (cost: $4,015,298,000)				4,114,891
Other assets less liabilities 0%				(1,649	)
Net assets 100%			$	4,113,242

See Notes to Financial Statements

American Funds Portfolio Series

American Funds Growth and Income Portfolio

Investment portfolio, October 31, 2016

Fund investments	Shares		Value (000)
Growth funds 20%
The Growth Fund of America, Class R-6		27,420,032	$	1,189,755

Growth-and-income funds 40%
Capital World Growth and Income Fund, Class R-6		26,626,054		1,187,522
The Investment Company of America, Class R-6		33,143,981		1,189,538
				2,377,060

Equity-income and Balanced funds 25%
Capital Income Builder, Class R-6		25,798,865		1,483,176

Fixed income funds 15%
Capital World Bond Fund, Class R-6		44,441,260		888,825

Total investment securities 100% (cost: $5,802,405,000)				5,938,816
Other assets less liabilities 0%				(2,460	)
Net assets 100%			$	5,936,356

Investments in affiliates

This holding is an affiliate of the fund under the Investment Company Act of 1940 since the fund holds 5% or more of its outstanding voting shares. Further details on this holding and related transactions during the year ended October 31, 2016, appear below.

Value of

Dividend

affiliates at

Beginning

Ending

income

10/31/2016

shares

Additions

Reductions

shares

(000)

Capital World Bond Fund, Class R-6

38,079,140

6,474,775

112,655

44,441,260

15,548

888,825

See Notes to Financial Statements

12	American Funds Portfolio Series

American Funds Balanced Portfolio

Investment portfolio, October 31, 2016

Fund investments	Shares		Value (000)
Growth funds 20%
New Perspective Fund, Class R-6		28,072,116	$	1,030,247

Growth-and-income funds 20%
Capital World Growth and Income Fund, Class R-6		11,535,171		514,469
Washington Mutual Investors Fund, Class R-6		12,829,539		516,260
				1,030,729

Equity-income and Balanced funds 40%
American Balanced Fund, Class R-6		41,690,248		1,032,251
American Funds Global Balanced Fund, Class R-6		34,775,521		1,032,137
				2,064,388

Fixed income funds 20%
The Bond Fund of America, Class R-6		79,096,128		1,032,204

Total investment securities 100% (cost: $4,967,125,000)				5,157,568
Other assets less liabilities 0%				(2,188	)
Net assets 100%			$	5,155,380

Investments in affiliates

Value of

Dividend

affiliates at

Beginning

Ending

income

10/31/2016

shares

Additions

Reductions

shares

(000)

American Funds Global Balanced Fund, Class R-6

26,894,799

7,887,806

7,084

34,775,521

20,139

1,032,137

See Notes to Financial Statements

American Funds Portfolio Series

American Funds Income Portfolio

Investment portfolio, October 31, 2016

Fund investments	Shares		Value (000)
Growth-and-income funds 20%
American Mutual Fund, Class R-6		20,940,429	$	755,740

Equity-income and Balanced funds 50%
Capital Income Builder, Class R-6		16,460,614		946,321
The Income Fund of America, Class R-6		44,664,865		947,788
				1,894,109

Fixed income funds 30%
American High-Income Trust, Class R-6		56,720,041		577,410
U.S. Government Securities Fund, Class R-6		40,437,628		571,384
				1,148,794

Total investment securities 100% (cost: $3,712,339,000)				3,798,643
Other assets less liabilities 0%				(1,499	)
Net assets 100%			$	3,797,144

Investments in affiliates

Value of

Dividend

affiliates at

Beginning

Ending

income

10/31/2016

shares

Additions

Reductions

shares

(000)

U.S. Government Securities Fund, Class R-6

43,703,109

8,575,667

11,841,148

40,437,628

8,019

571,384

See Notes to Financial Statements

14	American Funds Portfolio Series

American Funds Tax-Advantaged Income Portfolio

Investment portfolio, October 31, 2016

Fund investments	Shares		Value (000)
Growth-and-income funds 50%
Capital World Growth and Income Fund, Class R-6		6,390,276	$	285,006
Washington Mutual Investors Fund, Class R-6		7,102,569		285,807
				570,813

Tax-exempt fixed income funds 50%
American High-Income Municipal Bond Fund, Class R-6		18,021,335		287,080
The Tax-Exempt Bond Fund of America, Class R-6		21,830,714		287,074
				574,154

Total investment securities 100% (cost: $1,109,170,000)				1,144,967
Other assets less liabilities 0%				(453	)
Net assets 100%			$	1,144,514

Investments in affiliates

Value of

Dividend

affiliates at

Beginning

Ending

income

10/31/2016

shares

Additions

Reductions

shares

(000)

American High-Income Municipal Bond Fund, Class R-6

12,970,358

5,077,990

27,013

18,021,335

9,855

287,080

See Notes to Financial Statements

American Funds Portfolio Series

American Funds Preservation Portfolio

Investment portfolio, October 31, 2016

Fund investments	Shares		Value (000)
Fixed income funds 100%
Intermediate Bond Fund of America, Class R-6		36,468,769	$	496,705
Short-Term Bond Fund of America, Class R-6		49,670,464		496,705
The Bond Fund of America, Class R-6		19,030,829		248,352
				1,241,762

Total investment securities 100% (cost: $1,237,965,000)				1,241,762
Other assets less liabilities 0%				(483	)
Net assets 100%			$	1,241,279

Investments in affiliates

Value of

Dividend

affiliates at

Beginning

Ending

income

10/31/2016

shares

Additions

Reductions

shares

(000)

Short-Term Bond Fund of America, Class R-6

35,637,520

14,736,691

703,747

49,670,464

4,639

496,705

See Notes to Financial Statements

16	American Funds Portfolio Series

American Funds Tax-Exempt Preservation Portfolio

Investment portfolio, October 31, 2016

Fund investments	Shares		Value (000)
Tax-exempt fixed income funds 100%
Limited Term Tax-Exempt Bond Fund of America, Class R-6		19,754,313	$	313,303
The Tax-Exempt Bond Fund of America, Class R-6		10,210,866		134,273
				447,576

Total investment securities 100% (cost: $451,151,000)				447,576
Other assets less liabilities 0%				(120	)
Net assets 100%			$	447,456

Investments in affiliates

Value of

Dividend

affiliates at

Beginning

Ending

income

10/31/2016

shares

Additions

Reductions

shares

(000)

Limited Term Tax-Exempt Bond Fund of America, Class R-6

13,293,797

7,428,463

967,947

19,754,313

6,107

313,303

See Notes to Financial Statements

American Funds Portfolio Series

Financial statements

Statements of assets and liabilities
at October 31, 2016

	Global Growth Portfolio			Growth Portfolio			Growth and Income Portfolio
Assets:
Investment securities, at value:
Unaffiliated issuers	$	1,785,356		$	4,114,891		$	5,049,991
Affiliated issuers		—			—			888,825
Receivables for:
Sales of investments		779			—			2,177
Sales of fund’s shares		1,597			5,068			5,396
Dividends		—			—			—
Total assets		1,787,732			4,119,959			5,946,389

Liabilities:
Payables for:
Purchases of investments		—			1,121			—
Repurchases of fund’s shares		2,373			3,927			7,553
Services provided by related parties		698			1,618			2,422
Trustees’ deferred compensation		4			8			13
Other		18			43			45
Total liabilities		3,093			6,717			10,033
Net assets at October 31, 2016	$	1,784,639		$	4,113,242		$	5,936,356

Net assets consist of:
Capital paid in on shares of beneficial interest	$	1,721,464		$	3,879,491		$	5,656,813
(Distributions in excess of) undistributed net investment income		(4	)		(2,386	)		(13	)
Undistributed (accumulated) net realized gain (loss)		43,696			136,544			143,145
Net unrealized appreciation (depreciation)		19,483			99,593			136,411
Net assets at October 31, 2016	$	1,784,639		$	4,113,242		$	5,936,356

Investment securities, at cost:
Unaffiliated issuers	$	1,765,873		$	4,015,298		$	4,899,820
Affiliated issuers		—			—			902,585

See Notes to Financial Statements

18	American Funds Portfolio Series

(dollars in thousands)

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

$	4,125,431	$	3,227,259	$	857,887	$	745,057		$	134,273
	1,032,137		571,384		287,080		496,705			313,303

	6,311		—		102		—			—
	5,219		4,413		739		3,229			1,806
	1,537		3,333		1,730		1,359			955
	5,170,635		3,806,389		1,147,538		1,246,350			450,337

	1,538		4,299		1,730		2,685			2,261
	11,521		3,480		841		1,904			499
	2,152		1,440		448		469			119
	10		8		2		2			1
	34		18		3		11			1
	15,255		9,245		3,024		5,071			2,881
$	5,155,380	$	3,797,144	$	1,144,514	$	1,241,279		$	447,456

$	4,857,893	$	3,696,337	$	1,096,843	$	1,237,771		$	453,757

	6,157		2,362		1,849		343			332
	100,887		12,141		10,025		(632	)		(3,058	)
	190,443		86,304		35,797		3,797			(3,575	)
$	5,155,380	$	3,797,144	$	1,144,514	$	1,241,279		$	447,456

$	3,919,326	$	3,147,784	$	830,842	$	740,466		$	133,461
	1,047,799		564,555		278,328		497,499			317,690

American Funds Portfolio Series

Statements of assets and liabilities
at October 31, 2016

		Global Growth		Growth		Growth and Income
		Portfolio		Portfolio		Portfolio
Shares of beneficial interest issued and outstanding (no stated par value) — unlimited shares authorized
Class A:	Net assets	$	1,074,102	$	2,505,211	$	3,924,266
	Shares outstanding		75,174		164,710		293,826
	Net asset value per share	$	14.29	$	15.21	$	13.36
Class B:	Net assets	$	593	$	1,372	$	1,917
	Shares outstanding		42		92		143
	Net asset value per share	$	14.16	$	15.00	$	13.35
Class C:	Net assets	$	227,418	$	594,556	$	922,852
	Shares outstanding		16,185		39,800		69,501
	Net asset value per share	$	14.05	$	14.94	$	13.28
Class F-1:	Net assets	$	40,430	$	60,316	$	111,056
	Shares outstanding		2,828		3,969		8,316
	Net asset value per share	$	14.30	$	15.20	$	13.35
Class F-2:	Net assets	$	104,943	$	166,123	$	203,354
	Shares outstanding		7,316		10,877		15,205
	Net asset value per share	$	14.34	$	15.27	$	13.37
Class 529-A:	Net assets	$	146,644	$	370,541	$	328,585
	Shares outstanding		10,276		24,391		24,611
	Net asset value per share	$	14.27	$	15.19	$	13.35
Class 529-B:	Net assets	$	128	$	197	$	321
	Shares outstanding		9		13		24
	Net asset value per share	$	14.13	$	14.96	$	13.36
Class 529-C:	Net assets	$	55,561	$	125,900	$	128,329
	Shares outstanding		3,959		8,428		9,657
	Net asset value per share	$	14.03	$	14.94	$	13.29
Class 529-E:	Net assets	$	5,471	$	17,589	$	16,650
	Shares outstanding		385		1,166		1,249
	Net asset value per share	$	14.19	$	15.09	$	13.33
Class 529-F-1:	Net assets	$	10,056	$	30,183	$	24,371
	Shares outstanding		702		1,979		1,824
	Net asset value per share	$	14.32	$	15.25	$	13.36
Class R-1:	Net assets	$	2,832	$	7,030	$	6,211
	Shares outstanding		201		469		467
	Net asset value per share	$	14.08	$	15.00	$	13.30
Class R-2:	Net assets	$	46,693	$	93,746	$	90,585
	Shares outstanding		3,329		6,272		6,826
	Net asset value per share	$	14.03	$	14.95	$	13.27
Class R-2E:	Net assets	$	970	$	3,756	$	3,719
	Shares outstanding		68		249		279
	Net asset value per share	$	14.27	$	15.08	$	13.33
Class R-3:	Net assets	$	22,118	$	54,690	$	59,710
	Shares outstanding		1,559		3,619		4,485
	Net asset value per share	$	14.19	$	15.11	$	13.31
Class R-4:	Net assets	$	10,270	$	31,491	$	55,318
	Shares outstanding		720		2,074		4,144
	Net asset value per share	$	14.27	$	15.18	$	13.35
Class R-5E:	Net assets	$	10	$	10	$	10
	Shares outstanding		1		1		1
	Net asset value per share	$	14.26	$	15.18	$	13.34
Class R-5:	Net assets	$	4,228	$	9,816	$	6,562
	Shares outstanding		293		640		490
	Net asset value per share	$	14.40	$	15.33	$	13.40
Class R-6:	Net assets	$	32,172	$	40,715	$	52,540
	Shares outstanding		2,229		2,661		3,927
	Net asset value per share	$	14.43	$	15.30	$	13.38

See Notes to Financial Statements

20	American Funds Portfolio Series

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

Balanced		Income		Tax-Advantaged Income		Preservation		Tax-Exempt Preservation
Portfolio		Portfolio		Portfolio		Portfolio		Portfolio
$	3,209,073	$	2,655,282	$	888,969	$	802,605	$	338,443
	239,834		227,013		70,915		80,019		34,178
$	13.38	$	11.70	$	12.54	$	10.03	$	9.90
$	1,708	$	1,099	$	42	$	373	$	21
	128		94		3		37		2
$	13.37	$	11.71	$	12.58	$	10.04	$	9.93
$	866,379	$	626,472	$	154,541	$	175,252	$	64,626
	65,124		53,837		12,401		17,500		6,537
$	13.30	$	11.64	$	12.46	$	10.01	$	9.89
$	136,659	$	83,410	$	38,912	$	27,564	$	10,693
	10,215		7,128		3,105		2,748		1,080
$	13.38	$	11.70	$	12.53	$	10.03	$	9.90
$	221,548	$	174,405	$	62,050	$	49,029	$	33,673
	16,537		14,891		4,944		4,888		3,400
$	13.40	$	11.71	$	12.55	$	10.03	$	9.90
$	213,369	$	80,618			$	76,862
	15,950		6,894				7,665
$	13.38	$	11.69			$	10.03
$	241	$	105			$	111
	18		9				11
$	13.38	$	11.71			$	10.04
$	102,302	$	46,600			$	34,342
	7,681		4,002				3,428
$	13.32	$	11.64			$	10.02
$	9,483	$	5,921			$	3,154
	710		507				315
$	13.36	$	11.69			$	10.02
$	22,313	$	9,219			$	13,906
	1,666		788				1,386
$	13.39	$	11.70			$	10.03
$	10,205	$	1,803			$	1,625
	766		155				162
$	13.33	$	11.65			$	10.02
$	75,078	$	26,435			$	16,928
	5,639		2,270				1,692
$	13.31	$	11.64			$	10.00
$	2,913	$	324			$	2,924
	218		28				292
$	13.36	$	11.69			$	10.02
$	79,751	$	25,307			$	14,690
	5,974		2,167				1,466
$	13.35	$	11.68			$	10.02
$	55,066	$	30,951			$	9,920
	4,116		2,646				989
$	13.38	$	11.70			$	10.03
$	26	$	84			$	10
	2		7				1
$	13.38	$	11.69			$	10.04
$	11,727	$	4,254			$	1,201
	875		363				120
$	13.41	$	11.72			$	10.03
$	137,539	$	24,855			$	10,783
	10,261		2,121				1,075
$	13.40	$	11.72			$	10.03

American Funds Portfolio Series

Statements of operations
for the year ended October 31, 2016

	Global Growth			Growth			Growth and Income
	Portfolio			Portfolio			Portfolio
Investment income:
Income:
Dividends:
Unaffiliated issuers	$	24,012		$	36,705		$	112,425
Affiliated issuers		—			—			15,548
		24,012			36,705			127,973

Fees and expenses*:
Investment advisory services		267			555			826
Distribution services		5,621			12,827			19,658
Transfer agent services		1,768			3,841			5,603
Reports to shareholders		102			218			327
Registration statement and prospectus		352			581			662
Trustees’ compensation		9			20			30
Auditing and legal		11			20			28
Custodian		11			11			11
Other		172			392			386
Total fees and expenses before waivers/ reimbursements		8,313			18,465			27,531
Less waivers/reimbursements of fees and expenses:
Investment advisory services waivers		267			555			826
Miscellaneous fee reimbursements		—			—			—
Total waivers/reimbursements of fees and expenses		267			555			826
Total fees and expenses after waivers/reimbursements		8,046			17,910			26,705
Net investment income		15,966			18,795			101,268

Net realized gain (loss) and unrealized (depreciation)appreciation:
Net realized (loss) gain on sale of investments:
Unaffiliated issuers		(1,982	)		(1,259	)		(1,319	)
Affiliated issuers		—			—			(29	)
Capital gain distributions received		49,505			153,368			152,731
Net realized gain (loss)		47,523			152,109			151,383
Net unrealized (depreciation) appreciation		(27,474	)		(26,463	)		(29,360	)
Net realized gain (loss) and unrealized (depreciation) appreciation		20,049			125,646			122,023
Net increase in net assets resulting from operations	$	36,015		$	144,441		$	223,291

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

See Notes to Financial Statements

22	American Funds Portfolio Series

(dollars in thousands)

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

$	68,502		$	111,573		$	20,305		$	10,922		$	3,668
	20,139			8,019			9,855			4,639			6,107
	88,641			119,592			30,160			15,561			9,775

	683			527			138			151			52
	17,426			12,475			3,565			4,205			1,421
	4,716			3,480			952			1,104			362
	276			207			58			65			23
	618			498			228			324			168
	26			19			5			6			2
	23			19			8			8			5
	11			11			11			11			11
	272			115			2			90			1

	24,051			17,351			4,967			5,964			2,045

	683			527			138			151			52
	—			—			—			—			60
	683			527			138			151			112
	23,368			16,824			4,829			5,813			1,933
	65,273			102,768			25,331			9,748			7,842

	(108	)		(21,035	)		(110	)		66			16
	(3	)		(5,117	)		15			(4	)		(405	)
	114,977			46,916			11,697			1,557			—
	114,866			20,764			11,602			1,619			(389	)

	(11,645	)		52,084			4,924			7,953			(973	)

	103,221			72,848			16,526			9,572			(1,362	)
$	168,494		$	175,616		$	41,857		$	19,320		$	6,480

American Funds Portfolio Series

Statements of changes in net assets

	Global Growth						Growth						Growth and Income
	Portfolio						Portfolio						Portfolio
	Year ended October 31						Year ended October 31						Year ended October 31
	2016			2015			2016			2015			2016			2015
Operations:
Net investment income	$	15,966		$	12,245		$	18,795		$	13,176		$	101,268		$	78,392
Net realized gain (loss)		47,523			49,384			152,109			142,693			151,383			142,377
Net unrealized (depreciation) appreciation		(27,474	)		(60,174	)		(26,463	)		(86,586	)		(29,360	)		(202,565	)
Net increase (decrease) in net assets resulting from operations		36,015			1,455			144,441			69,283			223,291			18,204

Dividends and distributions paid to shareholders:
Dividends from net investment income		(12,486	)		(10,086	)		(19,413	)		(14,893	)		(91,948	)		(77,710	)
Distributions from net realized gain on investments		(47,394	)		(18,251	)		(132,451	)		(51,426	)		(131,752	)		(51,739	)
Total dividends and distributions paid to shareholders		(59,880	)		(28,337	)		(151,864	)		(66,319	)		(223,700	)		(129,449	)
Net capital share transactions		228,222			451,959			869,507			1,166,265			1,004,406			1,384,310

Total increase in net assets		204,357			425,077			862,084			1,169,229			1,003,997			1,273,065

Net assets:
Beginning of year		1,580,282			1,155,205			3,251,158			2,081,929			4,932,359			3,659,294
End of year	$	1,784,639		$	1,580,282		$	4,113,242		$	3,251,158		$	5,936,356		$	4,932,359

(Distributions in excess of) undistributed net investment income	$	(4	)	$	(3	)	$	(2,386	)	$	(1,753	)	$	(13	)	$	(6	)

See Notes to Financial Statements

24	American Funds Portfolio Series

(dollars in thousands)

Balanced						Income						Tax-Advantaged Income						Preservation						Tax-Exempt Preservation
Portfolio						Portfolio						Portfolio						Portfolio						Portfolio
Year ended October 31						Year ended October 31						Year ended October 31						Year ended October 31						Year ended October 31
2016			2015			2016			2015			2016			2015			2016			2015			2016			2015

$	65,273		$	45,530		$	102,768		$	91,336		$	25,331		$	17,783		$	9,748		$	7,085		$	7,842		$	5,995
	114,866			94,059			20,764			16,753			11,602			6,470			1,619			150			(389	)		(77	)
	(11,645	)		(59,544	)		52,084			(125,346	)		4,924			(11,403	)		7,953			(966	)		(973	)		(2,154	)

	168,494			80,045			175,616			(17,257	)		41,857			12,850			19,320			6,269			6,480			3,764

	(63,958	)		(41,329	)		(113,238	)		(85,492	)		(24,858	)		(17,083	)		(10,176	)		(7,166	)		(7,712	)		(5,845	)
	(86,331	)		(18,862	)		(14,453	)		(8,168	)		(5,812	)		(1,238	)		—			—			—			—
	(150,289	)		(60,191	)		(127,691	)		(93,660	)		(30,670	)		(18,321	)		(10,176	)		(7,166	)		(7,712	)		(5,845	)

	1,137,336			1,224,740			594,707			826,949			326,999			304,845			342,419			236,639			145,870			88,416

	1,155,541			1,244,594			642,632			716,032			338,186			299,374			351,563			235,742			144,638			86,335

	3,999,839			2,755,245			3,154,512			2,438,480			806,328			506,954			889,716			653,974			302,818			216,483
$	5,155,380		$	3,999,839		$	3,797,144		$	3,154,512		$	1,144,514		$	806,328		$	1,241,279		$	889,716		$	447,456		$	302,818

$	6,157		$	4,865		$	2,362		$	8,315		$	1,849		$	1,379		$	343		$	180		$	332		$	203

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 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 to the underlying funds.

The Global Growth Portfolio, Growth Portfolio, Growth and Income Portfolio, Balanced Portfolio, Income Portfolio and Preservation Portfolio each have 18 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 eight retirement plan share classes (Classes R-1, R-2, R-2E, R-3, R-4, R-5E, R-5 and R-6). The 529 college savings plan share classes can be used to save for college education. The retirement plan share classes are generally offered only through eligible employer-sponsored retirement plans. The 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 described further in the following table:

Share class	Initial sales charge	Contingent deferred sales charge upon redemption	Conversion feature
Classes A and 529-A	Up to 2.50% 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-2E, R-3, R-4, R-5E, R-5 and R-6	None	None	None

*	Class B and 529-B shares of each fund are not available for purchase.

On November 20, 2015, each fund in the series made an additional retirement plan share class (Class R-5E) available for sale pursuant to an amendment to the series’ registration statement filed with the U.S. Securities and Exchange Commission. Refer to the series’ prospectus for more details.

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 and

26	American Funds Portfolio Series

transfer agent 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.

2. Significant accounting policies

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

Security transactions and related investment income — Security transactions are recorded by the 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.

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 48 to 62.

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, transfer agent and administrative 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 net asset value of each share class of each fund is calculated based on the reported net asset values of the underlying funds in which each fund invests. The net asset 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 series’ 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, 2016, all of the investment securities held by each fund were classified as Level 1.

American Funds Portfolio Series

4. Risk factors

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

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

Fund structure — The fund invests in underlying funds and incurs expenses related to the underlying funds. In addition, investors in the fund will incur fees to pay for certain expenses related to the operations of the fund. An investor holding the underlying funds directly and in the same proportions as the fund would incur lower overall expenses but would not receive the benefit of the portfolio management and other services provided by the fund.

Underlying fund risks — Because the fund’s investments consist of underlying funds, the fund’s 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, as described below.

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

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

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

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

Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer will weaken and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. 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 underlying 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 debt instruments — 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 junk bonds.

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. Furthermore, smaller companies often have limited product lines, operating histories, markets and/or financial resources, may be dependent on one or a few key persons for management, and can be more susceptible to losses. Moreover, the prices of their stocks may be more volatile than stocks of larger, more established companies.

28	American Funds Portfolio Series

Investing outside the U.S. — Securities of issuers domiciled outside the U.S., or with significant operations or revenues outside the U.S., may lose value because of adverse political, social, economic or market developments (including social instability, regional conflicts, terrorism and war) in the countries or regions in which the issuers operate or generate revenue. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Issuers of these securities may be more susceptible to actions of foreign governments, such as the imposition of price controls or punitive taxes, that could adversely impact the value of these securities. Securities markets in certain countries may be more volatile and/or less liquid than those in the U.S. Investments outside the U.S. may also be subject to different accounting practices and different regulatory, legal and reporting standards and practices, and may be more difficult to value, than those in the U.S. In addition, the value of investments outside the U.S. may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased or sold by an underlying fund. 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 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. Less certainty with respect to security valuations may lead to additional challenges and risks in calculating the underlying fund’s net asset value. Additionally, there may be increased settlement risks for transactions in local securities.

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

Investing in mortgage-related and other asset-backed securities — Mortgage-related securities, such as mortgage-backed securities, and other asset-backed securities, include debt obligations that represent interests in pools of mortgages or other income-bearing assets, such as consumer loans or receivables. Such securities often involve risks that are different from or more acute than the risks associated with investing in other types of debt securities. Mortgage-backed and other asset-backed securities are subject to changes in the payment patterns of borrowers of the underlying debt. When interest rates fall, borrowers are more likely to refinance or prepay their debt before its stated maturity. This may result in the underlying fund having to reinvest the proceeds in lower yielding securities, effectively reducing the fund’s income. Conversely, if interest rates rise and borrowers repay their debt more slowly than expected, the time in which the mortgage-backed and other asset-backed securities are paid off could be extended, reducing the underlying fund’s cash available for reinvestment in higher yielding securities.

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

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.

Investing in derivatives — The use of derivatives involves a variety of risks, which may be different from, or greater than, the risks associated with investing in traditional cash securities, such as stocks and bonds. Changes in the value of a derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and a derivative instrument may expose the underlying fund to losses in excess of its initial investment. Derivatives may be difficult for the underlying fund to buy or sell at an opportune time or price and may be difficult to terminate or otherwise offset. The underlying fund’s use of

American Funds Portfolio Series

derivatives may result in losses to the underlying fund, and investing in derivatives may reduce the underlying fund’s returns and increase the underlying fund’s price volatility. The underlying fund’s counterparty to a derivative transaction (including, if applicable, the underlying fund’s clearing broker, the derivatives exchange or the clearinghouse) may be unable or unwilling to honor its financial obligations in respect of the transaction.

Management — The investment adviser to the fund 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, 2016, 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 significant 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; cost of investments sold; 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 distributions for tax purposes.

30	American Funds Portfolio Series

As of October 31, 2016, 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
	Growth			Growth			Income			Balanced
	Portfolio			Portfolio			Portfolio			Portfolio
Undistributed ordinary income	$	—		$	—		$	—		$	6,168
Late year ordinary loss deferral*		—			(2,378	)		—			—
Undistributed long-term capital gain		45,351			138,158			144,446			102,348
Gross unrealized appreciation on investment securities		29,632			97,980			150,335			204,647
Gross unrealized depreciation on investment securities		(11,803	)		—			(15,225	)		(15,664	)
Net unrealized appreciation (depreciation) on investment securities		17,829			97,980			135,110			188,983
Cost of investment securities		1,767,527			4,016,911			5,803,706			4,968,585
Reclassification to capital paid in on shares of beneficial interest from undistributed/distributions in excess of net investment income		3,481			15			9,327			23
Reclassification to capital paid in on shares of beneficial interest from undistributed net realized gain/accumulated net realized loss		2,732			14,965			7,081			12,579

				Tax-Advantaged						Tax-Exempt
	Income			Income			Preservation			Preservation
	Portfolio			Portfolio			Portfolio			Portfolio
Undistributed ordinary income	$	2,370		$	739		$	346		$	—
Undistributed tax-exempt income		—			1,113			—			333
Undistributed long-term capital gain		15,829			10,549			673			—
Capital loss carryforward^†		—			—			—			(2,004	)
Capital loss carryforward utilized		—			—			14			—
Gross unrealized appreciation on investment securities		132,482			35,273			4,011			813
Gross unrealized depreciation on investment securities		(49,866	)		—			(1,519	)		(5,442	)
Net unrealized appreciation (depreciation) on investment securities		82,616			35,273			2,492			(4,629	)
Cost of investment securities		3,716,027			1,109,694			1,239,270			452,205
Reclassification to (from) undistributed/distributions in excess of net investment income from (to) undistributed net realized gain/accumulated net realized loss		4,535			(2	)		592			—
Reclassification to capital paid in on shares of beneficial interest from undistributed/distributions in excess of net investment income		18			1			1			1
Reclassification to capital paid in on shares of beneficial interest from undistributed net realized gain/accumulated net realized loss		3,690			1,134			280			1

*	These deferrals are considered incurred in the subsequent year.
^†	The capital loss carryforward will be used to offset any capital gains realized by the fund in future years. The fund will not make distributions from capital gains while a capital loss carryforward remains.

American Funds Portfolio Series

The tax character of distributions paid to shareholders was as follows (dollars in thousands):

Global Growth Portfolio

	Year ended October 31, 2016									Year ended October 31, 2015
							Total									Total
							dividends and									dividends and
	Ordinary			Long-term			distributions			Ordinary			Long-term			distributions
Share class	income			capital gains			paid			income			capital gains			paid
Class A	$	9,026		$	29,527		$	38,553		$	7,104		$	11,346		$	18,450
Class B		—			43			43			1			34			35
Class C		503			6,068			6,571			434			2,133			2,567
Class F-1		300			1,177			1,477			374			647			1,021
Class F-2		640			1,715			2,355			470			645			1,115
Class 529-A		1,081			3,780			4,861			883			1,497			2,380
Class 529-B		—			11			11			—			8			8
Class 529-C		59			1,613			1,672			131			669			800
Class 529-E		31			143			174			29			61			90
Class 529-F-1		84			243			327			49			69			118
Class R-1		5			73			78			5			25			30
Class R-2		100			1,043			1,143			73			324			397
Class R-2E		—	¹		—	¹		—	¹		—	¹		—	¹		—	¹
Class R-3		102			519			621			85			200			285
Class R-4		86			276			362			54			84			138
Class R-5E²		—	¹		—	¹		—	¹
Class R-5		32			82			114			11			19			30
Class R-6		437			1,081			1,518			383			490			873
Total	$	12,486		$	47,394		$	59,880		$	10,086		$	18,251		$	28,337

Growth Portfolio

	Year ended October 31, 2016									Year ended October 31, 2015
							Total									Total
							dividends and									dividends and
	Ordinary			Long-term			distributions			Ordinary			Long-term			distributions
Share class	income			capital gains			paid			income			capital gains			paid
Class A	$	14,693		$	82,330		$	97,023		$	11,240		$	33,060		$	44,300
Class B		—			141			141			—			122			122
Class C		446			19,249			19,695			515			6,534			7,049
Class F-1		337			2,139			2,476			309			981			1,290
Class F-2		981			4,384			5,365			557			1,394			1,951
Class 529-A		1,882			11,480			13,362			1,442			4,557			5,999
Class 529-B		—			36			36			—			27			27
Class 529-C		—			4,000			4,000			48			1,635			1,683
Class 529-E		65			585			650			60			273			333
Class 529-F-1		160			815			975			96			252			348
Class R-1		—			263			263			5			113			118
Class R-2		38			2,584			2,622			56			868			924
Class R-2E		15			65			80			—	¹		—	¹		—	¹
Class R-3		137			1,429			1,566			118			536			654
Class R-4		177			966			1,143			61			179			240
Class R-5E²		—	¹		—	¹		—	¹
Class R-5		48			205			253			10			33			43
Class R-6		434			1,780			2,214			376			862			1,238
Total	$	19,413		$	132,451		$	151,864		$	14,893		$	51,426		$	66,319

32	American Funds Portfolio Series

Growth and Income Portfolio

	Year ended October 31, 2016									Year ended October 31, 2015
							Total									Total
							dividends and									dividends and
	Ordinary			Long-term			distributions			Ordinary			Long-term			distributions
Share class	income			capital gains			paid			income			capital gains			paid
Class A	$	67,057		$	89,249		$	156,306		$	57,879		$	36,062		$	93,941
Class B		40			145			185			104			132			236
Class C		9,124			19,979			29,103			7,275			7,097			14,372
Class F-1		1,732			2,279			4,011			1,403			916			2,319
Class F-2		3,209			3,442			6,651			2,111			1,102			3,213
Class 529-A		5,233			7,325			12,558			4,691			3,067			7,758
Class 529-B		6			23			29			14			19			33
Class 529-C		1,209			3,033			4,242			1,163			1,299			2,462
Class 529-E		241			392			633			201			148			349
Class 529-F-1		432			516			948			370			228			598
Class R-1		76			188			264			88			94			182
Class R-2		848			1,748			2,596			582			552			1,134
Class R-2E		18			6			24			—	¹		—	¹		—	¹
Class R-3		761			1,109			1,870			544			408			952
Class R-4		846			1,091			1,937			417			153			570
Class R-5E²		—	¹		—	¹		—	¹
Class R-5		90			86			176			44			20			64
Class R-6		1,026			1,141			2,167			824			442			1,266
Total	$	91,948		$	131,752		$	223,700		$	77,710		$	51,739		$	129,449

Balanced Portfolio

	Year ended October 31, 2016									Year ended October 31, 2015
							Total									Total
							dividends and									dividends and
	Ordinary			Long-term			distributions			Ordinary			Long-term			distributions
Share class	income			capital gains			paid			income			capital gains			paid
Class A	$	44,752		$	55,406		$	100,158		$	30,100		$	12,343		$	42,443
Class B		23			89			112			35			43			78
Class C		6,207			14,303			20,510			3,451			2,895			6,346
Class F-1		1,668			1,812			3,480			975			420			1,395
Class F-2		2,876			2,641			5,517			1,276			453			1,729
Class 529-A		2,877			3,808			6,685			2,133			960			3,093
Class 529-B		3			12			15			4			6			10
Class 529-C		684			1,915			2,599			468			503			971
Class 529-E		104			156			260			69			36			105
Class 529-F-1		325			363			688			212			80			292
Class R-1		73			189			262			53			46			99
Class R-2		501			1,145			1,646			280			247			527
Class R-2E		9			—	¹		9			—	¹		—	¹		—	¹
Class R-3		865			1,304			2,169			530			258			788
Class R-4		987			1,329			2,316			586			244			830
Class R-5E²		—	¹		—	¹		—	¹
Class R-5		197			208			405			154			57			211
Class R-6		1,807			1,651			3,458			1,003			271			1,274
Total	$	63,958		$	86,331		$	150,289		$	41,329		$	18,862		$	60,191

See page 35 for footnotes.

American Funds Portfolio Series

Income Portfolio

	Year ended October 31, 2016							Year ended October 31, 2015
						Total								Total
						dividends and								dividends and
	Ordinary		Long-term			distributions		Ordinary			Long-term			distributions
Share class	income		capital gains			paid		income			capital gains			paid
Class A	$	83,240	$	10,212		$	93,452	$	64,213		$	5,900		$	70,113
Class B		60		15			75		117			19			136
Class C		15,423		2,391			17,814		11,280			1,301			12,581
Class F-1		2,615		322			2,937		2,157			205			2,362
Class F-2		4,691		566			5,257		2,379			205			2,584
Class 529-A		2,465		314			2,779		2,040			200			2,240
Class 529-B		6		2			8		12			2			14
Class 529-C		1,155		192			1,347		1,000			130			1,130
Class 529-E		180		26			206		165			16			181
Class 529-F-1		275		29			304		184			16			200
Class R-1		44		7			51		41			5			46
Class R-2		654		104			758		457			52			509
Class R-2E		1		—	¹		1		—	¹		—	¹		—	¹
Class R-3		645		81			726		424			40			464
Class R-4		892		103			995		463			33			496
Class R-5E²		1		—	¹		1
Class R-5		132		13			145		83			7			90
Class R-6		759		76			835		477			37			514
Total	$	113,238	$	14,453		$	127,691	$	85,492		$	8,168		$	93,660

Tax-Advantaged Income Portfolio

	Year ended October 31, 2016						Year ended October 31, 2015
					Total							Total
					dividends and							dividends and
	Ordinary		Long-term		distributions		Ordinary		Long-term			distributions
Share class	income³		capital gains		paid		income³		capital gains			paid
Class A	$	20,163	$	4,658	$	24,821	$	14,176	$	1,011		$	15,187
Class B		2		1		3		4		—	¹		4
Class C		2,500		738		3,238		1,620		148			1,768
Class F-1		812		159		971		489		34			523
Class F-2		1,381		256		1,637		794		45			839
Total	$	24,858	$	5,812	$	30,670	$	17,083	$	1,238		$	18,321

34	American Funds Portfolio Series

Preservation Portfolio

	Year ended October 31, 2016								Year ended October 31, 2015
						Total								Total
	Ordinary			Long-term		dividends			Ordinary			Long-term		dividends
Share class	income			capital gains		paid			income			capital gains		paid
Class A	$	7,507		$	—	$	7,507		$	5,411		$	—	$	5,411
Class B		2			—		2			5			—		5
Class C		581			—		581			419			—		419
Class F-1		268			—		268			142			—		142
Class F-2		453			—		453			201			—		201
Class 529-A		695			—		695			510			—		510
Class 529-B		—	¹		—		—	¹		1			—		1
Class 529-C		85			—		85			70			—		70
Class 529-E		23			—		23			20			—		20
Class 529-F-1		155			—		155			110			—		110
Class R-1		6			—		6			4			—		4
Class R-2		55			—		55			43			—		43
Class R-2E		11			—		11			—	¹		—		—	¹
Class R-3		108			—		108			82			—		82
Class R-4		86			—		86			50			—		50
Class R-5E²		—	¹		—		—	¹
Class R-5		13			—		13			7			—		7
Class R-6		128			—		128			91			—		91
Total	$	10,176		$	—	$	10,176		$	7,166		$	—	$	7,166

Tax-Exempt Preservation Portfolio

	Year ended October 31, 2016								Year ended October 31, 2015
						Total							Total
	Ordinary			Long-term		dividends			Ordinary		Long-term		dividends
Share class	income³			capital gains		paid			income³		capital gains		paid
Class A	$	5,889		$	—	$	5,889		$	4,517	$	—	$	4,517
Class B		—	¹		—		—	¹		1		—		1
Class C		862			—		862			777		—		777
Class F-1		178			—		178			106		—		106
Class F-2		783			—		783			444		—		444
Total	$	7,712		$	—	$	7,712		$	5,845	$	—	$	5,845

¹	Amount less than one thousand.
²	Class R-5E shares were offered beginning November 20, 2015.
³	Ordinary income may include both taxable and tax-exempt income.

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 — At the beginning of the reporting period, the series had an investment advisory and service agreement with CRMC that provided for monthly fees, accrued daily. These fees were based on an annual rate of 0.10% of daily net assets. CRMC waived these fees through December 31, 2015. Effective January 1, 2016, CRMC eliminated the management fee. 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 48 to 62.

Miscellaneous fee reimbursements — CRMC reimbursed a portion of the fees and expenses of Tax-Exempt Preservation Portfolio. Fees and expenses in Tax-Exempt Preservation Portfolio’s statement of operations are presented gross of the reimbursement from CRMC. The amounts reimbursed by CRMC are reflected as miscellaneous fee reimbursements.

American Funds Portfolio Series

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

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

Share class	Currently approved limits			Plan limits
Class A		0.30	%		0.30	%
Class 529-A		0.30			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
Class R-2E		0.60			0.85
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, 2016, 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		811		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 — Each 529 share class is subject to service fees to compensate the Virginia College Savings Plan (“Virginia529”) for its oversight and administration of the 529 college savings plan. From November 1, 2015 to June 30, 2016, the quarterly fee was 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 0.05% on such assets in excess of $70 billion. Effective July 1, 2016, the quarterly fee was amended to annual rates of 0.10% on the first $20 billion of the net assets invested in the Class 529 shares of the American Funds, 0.05% on such assets between $20 billion and $100 billion, and 0.03% on such assets over $100 billion. The fee for any given calendar quarter is accrued and calculated on the basis of the average net assets of Class 529 shares of the American Funds for the last month of the prior calendar quarter. The fee is included in other expenses in the fund’s statement of operations. Virginia529 is not considered a related party to the fund.

36	American Funds Portfolio Series

Class-specific expenses under the agreements described in this section for the year ended October 31, 2016, were as follows (dollars in thousands):

Global Growth Portfolio

	Distribution	Transfer agent	529 plan
Share class	services	services	services
Class A	$2,107	$1,015	Not applicable
Class B	11	1	Not applicable
Class C	2,129	211	Not applicable
Class F-1	97	47	Not applicable
Class F-2	Not applicable	81	Not applicable
Class 529-A	239	143	$111
Class 529-B	2	—*	—*
Class 529-C	559	58	46
Class 529-E	26	3	4
Class 529-F-1	—	9	8
Class R-1	28	3	Not applicable
Class R-2	302	149	Not applicable
Class R-2E	—*	—*	Not applicable
Class R-3	98	34	Not applicable
Class R-4	23	10	Not applicable
Class R-5E^†	Not applicable	—*	Not applicable
Class R-5	Not applicable	2	Not applicable
Class R-6	Not applicable	2	Not applicable
Total class-specific expenses	$5,621	$1,768	$169

Growth Portfolio

	Distribution	Transfer agent	529 plan
Share class	services	services	services
Class A	$4,615	$2,217	Not applicable
Class B	26	3	Not applicable
Class C	5,318	521	Not applicable
Class F-1	142	68	Not applicable
Class F-2	Not applicable	144	Not applicable
Class 529-A	600	334	$262
Class 529-B	6	1	—*
Class 529-C	1,084	111	89
Class 529-E	79	9	13
Class 529-F-1	—	24	21
Class R-1	71	8	Not applicable
Class R-2	588	287	Not applicable
Class R-2E	10	3	Not applicable
Class R-3	220	75	Not applicable
Class R-4	68	30	Not applicable
Class R-5E^†	Not applicable	—*	Not applicable
Class R-5	Not applicable	4	Not applicable
Class R-6	Not applicable	2	Not applicable
Total class-specific expenses	$12,827	$3,841	$385

Growth and Income Portfolio

	Distribution	Transfer agent	529 plan
Share class	services	services	services
Class A	$8,055	$3,579	Not applicable
Class B	39	5	Not applicable
Class C	8,331	820	Not applicable
Class F-1	243	115	Not applicable
Class F-2	Not applicable	172	Not applicable
Class 529-A	662	314	$245
Class 529-B	6	1	—*
Class 529-C	1,209	125	99
Class 529-E	78	9	13
Class 529-F-1	—	22	18
Class R-1	71	8	Not applicable
Class R-2	584	288	Not applicable
Class R-2E	10	3	Not applicable
Class R-3	253	86	Not applicable
Class R-4	117	51	Not applicable
Class R-5E^†	Not applicable	—*	Not applicable
Class R-5	Not applicable	3	Not applicable
Class R-6	Not applicable	2	Not applicable
Total class-specific expenses	$19,658	$5,603	$375

Balanced Portfolio

	Distribution	Transfer agent	529 plan
Share class	services	services	services
Class A	$6,838	$2,855	Not applicable
Class B	32	4	Not applicable
Class C	7,733	759	Not applicable
Class F-1	287	134	Not applicable
Class F-2	Not applicable	177	Not applicable
Class 529-A	423	206	$161
Class 529-B	4	1	—*
Class 529-C	969	100	79
Class 529-E	42	5	7
Class 529-F-1	—	19	16
Class R-1	98	11	Not applicable
Class R-2	485	239	Not applicable
Class R-2E	8	3	Not applicable
Class R-3	355	122	Not applicable
Class R-4	152	69	Not applicable
Class R-5E^†	Not applicable	—*	Not applicable
Class R-5	Not applicable	7	Not applicable
Class R-6	Not applicable	5	Not applicable
Total class-specific expenses	$17,426	$4,716	$263

See page 38 for footnotes.

American Funds Portfolio Series

Income Portfolio

	Distribution	Transfer agent	529 plan
Share class	services	services	services
Class A	$5,494	$2,390	Not applicable
Class B	24	3	Not applicable
Class C	5,757	570	Not applicable
Class F-1	194	93	Not applicable
Class F-2	Not applicable	125	Not applicable
Class 529-A	162	78	$60
Class 529-B	2	—*	—*
Class 529-C	443	46	37
Class 529-E	29	4	5
Class 529-F-1	—	8	6
Class R-1	17	2	Not applicable
Class R-2	182	92	Not applicable
Class R-2E	—*	—*	Not applicable
Class R-3	105	36	Not applicable
Class R-4	66	30	Not applicable
Class R-5E^†	Not applicable	—*	Not applicable
Class R-5	Not applicable	2	Not applicable
Class R-6	Not applicable	1	Not applicable
Total class-specific expenses	$12,475	$3,480	$108

Tax-Advantaged Income Portfolio

	Distribution	Transfer agent
Share class	services	services
Class A	$2,230	$743
Class B	1	—*
Class C	1,257	122
Class F-1	77	36
Class F-2	Not applicable	51
Total class-specific expenses	$3,565	$952

Preservation Portfolio

	Distribution	Transfer agent	529 plan
Share class	services	services	services
Class A	$1,886	$673	Not applicable
Class B	8	1	Not applicable
Class C	1,579	155	Not applicable
Class F-1	63	30	Not applicable
Class F-2	Not applicable	35	Not applicable
Class 529-A	137	68	$54
Class 529-B	2	—*	—*
Class 529-C	289	29	24
Class 529-E	14	2	2
Class 529-F-1	—	12	10
Class R-1	16	2	Not applicable
Class R-2	114	60	Not applicable
Class R-2E	9	3	Not applicable
Class R-3	69	24	Not applicable
Class R-4	19	9	Not applicable
Class R-5E^†	Not applicable	—*	Not applicable
Class R-5	Not applicable	1	Not applicable
Class R-6	Not applicable	—*	Not applicable
Total class-specific expenses	$4,205	$1,104	$90

Tax-Exempt Preservation Portfolio

	Distribution	Transfer agent
Share class	services	services
Class A	$813	$260
Class B	1	—*
Class C	587	58
Class F-1	20	9
Class F-2	Not applicable	35
Total class-specific expenses	$1,421	$362

*	Amount less than one thousand.
^†	Class R-5E shares were offered beginning November 20, 2015.

38	American Funds Portfolio Series

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, shown on the accompanying financial statements, reflects 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 trustees’
	Current fees		deferred amounts		compensation
Global Growth Portfolio	$	9,218		$250		$ 9,468
Growth Portfolio		20,045		453		20,498
Growth and Income Portfolio		29,195		899		30,094
Balanced Portfolio		25,000		667		25,667
Income Portfolio		18,712		496		19,208
Tax-Advantaged Income Portfolio		5,165		138		5,303
Preservation Portfolio		5,754		142		5,896
Tax-Exempt Preservation Portfolio		1,979		50		2,029

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 any of the funds in the series.

7. Investment transactions

The funds made purchases and sales of investment securities during the year ended October 31, 2016, as follows (dollars in thousands):

	Purchases		Sales
Global Growth Portfolio	$	264,211	$	30,259
Growth Portfolio		906,185		15,797
Growth and Income Portfolio		1,055,203		19,692
Balanced Portfolio		1,178,671		10,571
Income Portfolio		892,335		275,373
Tax-Advantaged Income Portfolio		336,059		2,665
Preservation Portfolio		359,799		16,099
Tax-Exempt Preservation Portfolio		168,824		22,795

American Funds Portfolio Series

8. Capital share transactions

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

Global Growth Portfolio

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

Year ended October 31, 2016

Class A	$	260,846		18,918		$	38,436			2,743		$	(198,891	)		(14,351	)	$	100,391			7,310
Class B		124		9			43			3			(1,127	)		(82	)		(960	)		(70	)
Class C		62,890		4,623			6,566			474			(36,897	)		(2,702	)		32,559			2,395
Class F-1		18,621		1,358			1,476			105			(18,156	)		(1,342	)		1,941			121
Class F-2		73,139		5,274			2,335			166			(25,901	)		(1,881	)		49,573			3,559
Class 529-A		32,891		2,383			4,861			348			(15,743	)		(1,132	)		22,009			1,599
Class 529-B		14		1			11			—	²		(261	)		(19	)		(236	)		(18	)
Class 529-C		11,681		859			1,672			121			(10,127	)		(727	)		3,226			253
Class 529-E		1,399		101			174			12			(757	)		(54	)		816			59
Class 529-F-1		3,153		229			327			23			(1,262	)		(92	)		2,218			160
Class R-1		1,168		88			76			5			(787	)		(57	)		457			36
Class R-2		21,140		1,558			1,137			82			(8,376	)		(609	)		13,901			1,031
Class R-2E		961		67			—	²		—	²		—	²		—	²		961			67
Class R-3		8,421		613			621			44			(5,058	)		(362	)		3,984			295
Class R-4		4,177		303			362			26			(3,119	)		(228	)		1,420			101
Class R-5E³		10		1			—			—			—			—			10			1
Class R-5		2,259		165			114			8			(945	)		(68	)		1,428			105
Class R-6		3,323		238			1,518			108			(10,317	)		(732	)		(5,476	)		(386	)
Total net increase (decrease)	$	506,217		36,788		$	59,729			4,268		$	(337,724	)		(24,438	)	$	228,222			16,618

Year ended October 31, 2015

Class A	$	379,782		25,714		$	18,397			1,273		$	(114,558	)		(7,820	)	$	283,621			19,167
Class B		453		31			35			3			(1,178	)		(81	)		(690	)		(47	)
Class C		91,150		6,247			2,564			179			(25,798	)		(1,785	)		67,916			4,641
Class F-1		34,846		2,359			1,017			70			(33,539	)		(2,342	)		2,324			87
Class F-2		34,994		2,365			1,103			76			(21,860	)		(1,479	)		14,237			962
Class 529-A		43,168		2,927			2,379			164			(11,079	)		(754	)		34,468			2,337
Class 529-B		56		4			8			1			(225	)		(16	)		(161	)		(11	)
Class 529-C		15,584		1,071			800			56			(4,146	)		(285	)		12,238			842
Class 529-E		2,291		157			89			6			(1,240	)		(88	)		1,140			75
Class 529-F-1		4,124		283			119			8			(511	)		(34	)		3,732			257
Class R-1		1,230		85			29			2			(376	)		(26	)		883			61
Class R-2		17,877		1,230			396			28			(4,283	)		(295	)		13,990			963
Class R-2E		1		—	²		—			—			—	²		—	²		1			—	²
Class R-3		7,694		526			285			20			(2,147	)		(148	)		5,832			398
Class R-4		7,389		498			139			10			(2,842	)		(194	)		4,686			314
Class R-5		1,939		129			30			2			(372	)		(25	)		1,597			106
Class R-6		9,814		655			873			60			(4,542	)		(307	)		6,145			408
Total net increase (decrease)	$	652,392		44,281		$	28,263			1,958		$	(228,696	)		(15,679	)	$	451,959			30,560

40	American Funds Portfolio Series

Growth Portfolio

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

Year ended October 31, 2016

Class A	$	758,872		51,997		$	96,699		6,574	$	(388,362	)		(26,355	)	$	467,209			32,216
Class B		301		21			141		10		(2,789	)		(194	)		(2,347	)		(163	)
Class C		214,622		14,883			19,633		1,350		(95,424	)		(6,581	)		138,831			9,652
Class F-1		32,830		2,252			2,471		168		(26,095	)		(1,798	)		9,206			622
Class F-2		103,792		7,017			5,338		362		(47,667	)		(3,241	)		61,463			4,138
Class 529-A		100,435		6,855			13,362		909		(22,810	)		(1,557	)		90,987			6,207
Class 529-B		48		4			36		2		(805	)		(57	)		(721	)		(51	)
Class 529-C		37,143		2,553			4,000		275		(12,157	)		(842	)		28,986			1,986
Class 529-E		4,345		299			649		44		(1,601	)		(113	)		3,393			230
Class 529-F-1		12,178		831			974		66		(2,980	)		(201	)		10,172			696
Class R-1		3,139		217			259		18		(3,165	)		(214	)		233			21
Class R-2		45,116		3,148			2,619		180		(15,755	)		(1,081	)		31,980			2,247
Class R-2E		3,772		249			79		5		(89	)		(6	)		3,762			248
Class R-3		27,278		1,872			1,532		105		(11,039	)		(751	)		17,771			1,226
Class R-4		17,790		1,218			1,143		77		(10,671	)		(729	)		8,262			566
Class R-5E³		10		1			—		—		—			—			10			1
Class R-5		6,672		451			254		17		(2,036	)		(137	)		4,890			331
Class R-6		7,711		531			2,214		150		(14,505	)		(990	)		(4,580	)		(309	)
Total net increase (decrease)	$	1,376,054		94,399		$	151,403		10,312	$	(657,950	)		(44,847	)	$	869,507			59,864

Year ended October 31, 2015

Class A	$	859,489		55,673		$	44,170		2,919	$	(209,748	)		(13,649	)	$	693,911			44,943
Class B		1,207		79			121		8		(2,951	)		(193	)		(1,623	)		(106	)
Class C		237,543		15,566			7,036		469		(45,423	)		(2,982	)		199,156			13,053
Class F-1		37,177		2,406			1,290		85		(26,496	)		(1,725	)		11,971			766
Class F-2		62,599		4,043			1,943		128		(17,872	)		(1,160	)		46,670			3,011
Class 529-A		105,006		6,796			5,999		396		(15,096	)		(975	)		95,909			6,217
Class 529-B		155		10			27		2		(467	)		(31	)		(285	)		(19	)
Class 529-C		37,845		2,476			1,682		112		(6,615	)		(432	)		32,912			2,156
Class 529-E		3,898		254			332		22		(1,131	)		(75	)		3,099			201
Class 529-F-1		11,131		716			348		23		(1,333	)		(85	)		10,146			654
Class R-1		4,169		272			116		8		(2,062	)		(137	)		2,223			143
Class R-2		34,446		2,257			924		62		(8,019	)		(528	)		27,351			1,791
Class R-2E		7		—	²		—		—		—			—			7			—	²
Class R-3		18,948		1,229			654		43		(4,477	)		(293	)		15,125			979
Class R-4		20,645		1,357			240		16		(4,724	)		(310	)		16,161			1,063
Class R-5		3,607		230			43		3		(248	)		(16	)		3,402			217
Class R-6		16,856		1,073			1,238		81		(7,964	)		(519	)		10,130			635
Total net increase (decrease)	$	1,454,728		94,437		$	66,163		4,377	$	(354,626	)		(23,110	)	$	1,166,265			75,704

See page 47 for footnotes.

American Funds Portfolio Series

Growth and Income Portfolio

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

Year ended October 31, 2016

Class A	$	995,138		76,482	$	155,209		11,956	$	(587,774	)		(44,798	)	$	562,573			43,640
Class B		442		34		184		14		(4,740	)		(366	)		(4,114	)		(318	)
Class C		304,214		23,490		28,940		2,247		(147,673	)		(11,354	)		185,481			14,383
Class F-1		54,989		4,211		3,920		302		(31,725	)		(2,436	)		27,184			2,077
Class F-2		123,823		9,434		6,426		493		(52,199	)		(3,979	)		78,050			5,948
Class 529-A		72,529		5,546		12,556		968		(31,360	)		(2,399	)		53,725			4,115
Class 529-B		109		9		29		2		(795	)		(61	)		(657	)		(50	)
Class 529-C		24,895		1,915		4,241		329		(14,918	)		(1,140	)		14,218			1,104
Class 529-E		3,261		250		633		49		(1,575	)		(121	)		2,319			178
Class 529-F-1		8,900		684		948		73		(4,350	)		(332	)		5,498			425
Class R-1		2,685		206		262		21		(3,913	)		(297	)		(966	)		(70	)
Class R-2		41,614		3,215		2,594		201		(17,198	)		(1,318	)		27,010			2,098
Class R-2E		3,949		302		24		2		(335	)		(26	)		3,638			278
Class R-3		29,978		2,293		1,869		144		(13,180	)		(999	)		18,667			1,438
Class R-4		31,925		2,434		1,894		146		(13,734	)		(1,060	)		20,085			1,520
Class R-5E³		10		1		—		—		—			—			10			1
Class R-5		4,409		339		176		13		(1,260	)		(100	)		3,325			252
Class R-6		15,982		1,248		2,167		166		(9,789	)		(751	)		8,360			663
Total net increase (decrease)	$	1,718,852		132,093	$	222,072		17,126	$	(936,518	)		(71,537	)	$	1,004,406			77,682

Year ended October 31, 2015

Class A	$	1,161,900		85,594	$	93,342		6,904	$	(379,576	)		(28,062	)	$	875,666			64,436
Class B		1,465		108		235		17		(5,265	)		(389	)		(3,565	)		(264	)
Class C		332,505		24,616		14,292		1,058		(85,166	)		(6,322	)		261,631			19,352
Class F-1		43,278		3,196		2,212		164		(22,419	)		(1,658	)		23,071			1,702
Class F-2		79,853		5,869		3,158		233		(28,446	)		(2,111	)		54,565			3,991
Class 529-A		72,873		5,365		7,753		573		(19,770	)		(1,462	)		60,856			4,476
Class 529-B		278		20		33		2		(795	)		(58	)		(484	)		(36	)
Class 529-C		33,473		2,476		2,459		182		(11,790	)		(872	)		24,142			1,786
Class 529-E		4,928		362		349		26		(1,037	)		(77	)		4,240			311
Class 529-F-1		6,320		465		597		44		(3,965	)		(293	)		2,952			216
Class R-1		3,979		293		182		13		(3,277	)		(249	)		884			57
Class R-2		36,051		2,674		1,134		84		(11,191	)		(837	)		25,994			1,921
Class R-2E		—		—		—		—		—			—			—			—
Class R-3		18,976		1,404		952		71		(5,742	)		(427	)		14,186			1,048
Class R-4		30,242		2,240		570		42		(5,504	)		(411	)		25,308			1,871
Class R-5		1,980		147		64		5		(192	)		(14	)		1,852			138
Class R-6		19,808		1,456		1,266		94		(8,062	)		(594	)		13,012			956
Total net increase (decrease)	$	1,847,909		136,285	$	128,598		9,512	$	(592,197	)		(43,836	)	$	1,384,310			101,961

42	American Funds Portfolio Series

Balanced Portfolio

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

Year ended October 31, 2016

Class A	$	949,538		72,537	$	99,508		7,610		$	(435,771	)		(33,184	)	$	613,275			46,963
Class B		657		50		112		9			(3,824	)		(292	)		(3,055	)		(233	)
Class C		320,188		24,635		20,395		1,571			(136,184	)		(10,425	)		204,399			15,781
Class F-1		79,875		6,184		3,469		265			(34,034	)		(2,598	)		49,310			3,851
Class F-2		152,469		11,583		5,355		408			(41,795	)		(3,182	)		116,029			8,809
Class 529-A		52,565		4,001		6,684		511			(27,678	)		(2,106	)		31,571			2,406
Class 529-B		101		8		15		1			(509	)		(39	)		(393	)		(30	)
Class 529-C		27,570		2,108		2,595		200			(19,812	)		(1,507	)		10,353			801
Class 529-E		3,061		234		261		20			(1,183	)		(89	)		2,139			165
Class 529-F-1		7,710		586		689		53			(3,402	)		(258	)		4,997			381
Class R-1		4,784		367		262		20			(4,148	)		(316	)		898			71
Class R-2		32,531		2,497		1,641		126			(13,538	)		(1,032	)		20,634			1,591
Class R-2E		3,173		243		9		—	²		(344	)		(26	)		2,838			217
Class R-3		33,543		2,567		2,165		166			(19,021	)		(1,452	)		16,687			1,281
Class R-4		35,897		2,725		2,316		178			(35,881	)		(2,724	)		2,332			179
Class R-5E³		26		2		—		—			—			—			26			2
Class R-5		5,116		397		405		31			(4,621	)		(354	)		900			74
Class R-6		97,186		7,326		3,458		263			(36,248	)		(2,737	)		64,396			4,852
Total net increase (decrease)	$	1,805,990		138,050	$	149,339		11,432		$	(817,993	)		(62,321	)	$	1,137,336			87,161

Year ended October 31, 2015

Class A	$	993,186		74,182	$	42,191		3,167		$	(265,868	)		(19,887	)	$	769,509			57,462
Class B		1,287		97		78		6			(3,887	)		(292	)		(2,522	)		(189	)
Class C		320,596		24,034		6,320		475			(86,785	)		(6,523	)		240,131			17,986
Class F-1		40,031		2,988		1,392		104			(18,182	)		(1,370	)		23,241			1,722
Class F-2		61,782		4,608		1,716		129			(24,150	)		(1,796	)		39,348			2,941
Class 529-A		53,121		3,958		3,091		232			(19,522	)		(1,457	)		36,690			2,733
Class 529-B		275		20		10		1			(554	)		(41	)		(269	)		(20	)
Class 529-C		29,495		2,214		970		73			(13,972	)		(1,045	)		16,493			1,242
Class 529-E		3,062		228		105		8			(1,123	)		(84	)		2,044			152
Class 529-F-1		7,282		542		293		22			(2,783	)		(205	)		4,792			359
Class R-1		5,695		426		99		8			(3,745	)		(281	)		2,049			153
Class R-2		28,593		2,145		524		39			(10,781	)		(812	)		18,336			1,372
Class R-2E		—		—		—		—			—			—			—			—
Class R-3		37,736		2,825		789		59			(11,319	)		(848	)		27,206			2,036
Class R-4		23,800		1,772		829		62			(12,176	)		(912	)		12,453			922
Class R-5		3,790		283		211		16			(2,071	)		(157	)		1,930			142
Class R-6		50,760		3,800		1,274		95			(18,725	)		(1,404	)		33,309			2,491
Total net increase (decrease)	$	1,660,491		124,122	$	59,892		4,496		$	(495,643	)		(37,114	)	$	1,224,740			91,504

American Funds Portfolio Series

Income Portfolio

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

Year ended October 31, 2016

Class A	$	697,584		60,692	$	91,671			7,997		$	(433,560	)		(37,835	)	$	355,695			30,854
Class B		502		44		74			7			(3,125	)		(272	)		(2,549	)		(221	)
Class C		197,713		17,327		17,572			1,542			(126,124	)		(11,042	)		89,161			7,827
Class F-1		37,817		3,294		2,881			251			(30,277	)		(2,633	)		10,421			912
Class F-2		171,186		14,880		4,346			376			(77,956	)		(7,021	)		97,576			8,235
Class 529-A		24,082		2,089		2,778			242			(17,963	)		(1,566	)		8,897			765
Class 529-B		62		6		8			1			(383	)		(34	)		(313	)		(27	)
Class 529-C		13,138		1,145		1,347			118			(13,049	)		(1,138	)		1,436			125
Class 529-E		724		63		206			18			(1,366	)		(120	)		(436	)		(39	)
Class 529-F-1		4,430		384		305			27			(1,714	)		(148	)		3,021			263
Class R-1		612		54		50			4			(404	)		(35	)		258			23
Class R-2		11,900		1,038		754			66			(8,564	)		(748	)		4,090			356
Class R-2E		318		27		—	²		—	²		—			—			318			27
Class R-3		11,512		1,004		727			63			(5,193	)		(455	)		7,046			612
Class R-4		16,804		1,462		995			87			(6,679	)		(578	)		11,120			971
Class R-5E³		85		7		1			—	²		—			—			86			7
Class R-5		2,169		189		145			13			(958	)		(83	)		1,356			119
Class R-6		12,071		1,049		835			72			(5,382	)		(466	)		7,524			655
Total net increase (decrease)	$	1,202,709		104,754	$	124,695			10,884		$	(732,697	)		(64,174	)	$	594,707			51,464

Year ended October 31, 2015

Class A	$	811,243		68,593	$	68,847			5,877		$	(302,274	)		(25,738	)	$	577,816			48,732
Class B		1,322		111		136			12			(3,808	)		(323	)		(2,350	)		(200	)
Class C		241,244		20,489		12,408			1,063			(87,525	)		(7,490	)		166,127			14,062
Class F-1		32,198		2,738		2,319			198			(21,841	)		(1,873	)		12,676			1,063
Class F-2		41,280		3,490		2,560			218			(23,418	)		(1,995	)		20,422			1,713
Class 529-A		23,319		1,974		2,239			191			(14,235	)		(1,208	)		11,323			957
Class 529-B		104		9		14			1			(372	)		(32	)		(254	)		(22	)
Class 529-C		15,014		1,273		1,130			97			(10,186	)		(868	)		5,958			502
Class 529-E		2,442		205		181			16			(931	)		(79	)		1,692			142
Class 529-F-1		3,260		274		200			17			(1,633	)		(138	)		1,827			153
Class R-1		615		52		46			4			(674	)		(57	)		(13	)		(1	)
Class R-2		10,569		897		505			43			(3,124	)		(269	)		7,950			671
Class R-2E		—		—		—			—			—			—			—			—
Class R-3		9,191		780		463			39			(2,375	)		(203	)		7,279			616
Class R-4		14,157		1,195		496			42			(4,537	)		(383	)		10,116			854
Class R-5		1,447		122		89			8			(689	)		(59	)		847			71
Class R-6		9,121		776		515			44			(4,103	)		(348	)		5,533			472
Total net increase (decrease)	$	1,216,526		102,978	$	92,148			7,870		$	(481,725	)		(41,063	)	$	826,949			69,785

44	American Funds Portfolio Series

Tax-Advantaged Income Portfolio

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

Year ended October 31, 2016

Class A	$	307,714		24,775	$	24,557		1,976		$	(101,195	)		(8,169	)	$	231,076			18,582
Class B		38		3		2		—			(186	)		(15	)		(146	)		(12	)
Class C		70,862		5,728		3,208		260			(21,222	)		(1,721	)		52,848			4,267
Class F-1		20,656		1,678		967		78			(5,590	)		(448	)		16,033			1,308
Class F-2		35,376		2,846		1,608		129			(9,796	)		(792	)		27,188			2,183
Total net increase (decrease)	$	434,646		35,030	$	30,342		2,443		$	(137,989	)		(11,145	)	$	326,999			26,328

Year ended October 31, 2015

Class A	$	293,454		23,513	$	15,025		1,217		$	(68,055	)		(5,486	)	$	240,424			19,244
Class B		94		8		5		—	²		(205	)		(17	)		(106	)		(9	)
Class C		54,518		4,389		1,749		142			(15,347	)		(1,237	)		40,920			3,294
Class F-1		9,213		740		522		42			(2,800	)		(225	)		6,935			557
Class F-2		22,531		1,802		828		67			(6,687	)		(541	)		16,672			1,328
Total net increase (decrease)	$	379,810		30,452	$	18,129		1,468		$	(93,094	)		(7,506	)	$	304,845			24,414

See page 47 for footnotes.

American Funds Portfolio Series

Preservation Portfolio

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

Year ended October 31, 2016

Class A	$	425,229		42,594	$	7,445		746		$	(217,793	)		(21,809	)	$	214,881			21,531
Class B		361		36		2		—			(1,232	)		(123	)		(869	)		(87	)
Class C		98,359		9,878		574		58			(55,136	)		(5,533	)		43,797			4,403
Class F-1		23,208		2,328		264		27			(16,681	)		(1,671	)		6,791			684
Class F-2		44,328		4,433		452		45			(16,909	)		(1,691	)		27,871			2,787
Class 529-A		38,996		3,905		695		70			(19,166	)		(1,919	)		20,525			2,056
Class 529-B		90		9		—		—			(384	)		(38	)		(294	)		(29	)
Class 529-C		20,439		2,049		85		9			(11,001	)		(1,103	)		9,523			955
Class 529-E		1,658		166		22		2			(1,100	)		(110	)		580			58
Class 529-F-1		6,605		661		155		15			(2,937	)		(294	)		3,823			382
Class R-1		931		93		6		1			(459	)		(46	)		478			48
Class R-2		10,454		1,050		55		5			(7,644	)		(765	)		2,865			290
Class R-2E		3,081		307		11		1			(177	)		(17	)		2,915			291
Class R-3		7,110		713		108		11			(5,184	)		(520	)		2,034			204
Class R-4		5,915		592		86		9			(2,425	)		(244	)		3,576			357
Class R-5E³		10		1		—		—			—			—			10			1
Class R-5		660		66		13		1			(177	)		(17	)		496			50
Class R-6		7,117		712		128		13			(3,828	)		(383	)		3,417			342
Total net increase (decrease)	$	694,551		69,593	$	10,101		1,013		$	(362,233	)		(36,283	)	$	342,419			34,323

Year ended October 31, 2015

Class A	$	318,904		32,012	$	5,359		538		$	(178,287	)		(17,897	)	$	145,976			14,653
Class B		878		88		5		1			(1,352	)		(136	)		(469	)		(47	)
Class C		73,837		7,422		415		42			(37,487	)		(3,768	)		36,765			3,696
Class F-1		14,656		1,471		138		14			(3,099	)		(311	)		11,695			1,174
Class F-2		15,508		1,556		199		20			(6,873	)		(689	)		8,834			887
Class 529-A		26,598		2,669		509		51			(14,828	)		(1,489	)		12,279			1,231
Class 529-B		283		28		1		—	²		(265	)		(27	)		19			1
Class 529-C		10,022		1,007		70		7			(7,806	)		(785	)		2,286			229
Class 529-E		1,120		113		20		2			(926	)		(93	)		214			22
Class 529-F-1		4,805		483		110		11			(2,665	)		(268	)		2,250			226
Class R-1		718		72		4		—	²		(306	)		(30	)		416			42
Class R-2		10,448		1,051		43		4			(4,094	)		(412	)		6,397			643
Class R-2E		—		—		—		—			—			—			—			—
Class R-3		9,569		962		82		8			(4,489	)		(451	)		5,162			519
Class R-4		4,929		495		50		5			(1,593	)		(160	)		3,386			340
Class R-5		631		63		7		1			(457	)		(46	)		181			18
Class R-6		3,728		374		91		9			(2,571	)		(258	)		1,248			125
Total net increase (decrease)	$	496,634		49,866	$	7,103		713		$	(267,098	)		(26,820	)	$	236,639			23,759

46	American Funds Portfolio Series

Tax-Exempt Preservation Portfolio

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

Year ended October 31, 2016
Class A	$	186,764		18,722	$	5,761		578		$	(75,982	)		(7,623	)	$	116,543			11,677
Class B		35		3		—		—			(80	)		(8	)		(45	)		(5	)
Class C		29,007		2,911		843		85			(16,352	)		(1,641	)		13,498			1,355
Class F-1		8,429		844		172		17			(2,637	)		(264	)		5,964			597
Class F-2		30,985		3,111		768		77			(21,843	)		(2,191	)		9,910			997
Total net increase (decrease)	$	255,220		25,591	$	7,544		757		$	(116,894	)		(11,727	)	$	145,870			14,621

Year ended October 31, 2015

Class A	$	125,006		12,577	$	4,432		447		$	(63,866	)		(6,428	)	$	65,572			6,596
Class B		55		6		1		—	²		(59	)		(6	)		(3	)		—	²
Class C		22,636		2,282		757		76			(13,747	)		(1,385	)		9,646			973
Class F-1		1,895		191		106		11			(1,567	)		(158	)		434			44
Class F-2		17,075		1,721		440		44			(4,748	)		(478	)		12,767			1,287
Total net increase (decrease)	$	166,667		16,777	$	5,736		578		$	(83,987	)		(8,455	)	$	88,416			8,900

¹	Includes exchanges between share classes of the fund.
²	Amount less than one thousand.
³	Class R-5E shares were offered beginning November 20, 2015.

American Funds Portfolio Series

Financial highlights

Global Growth Portfolio

			Income (loss) from investment operations¹									Dividends and distributions																	Ratio of			Ratio of
Period ended	Net asset value, beginning of period		Net investment income (loss)			Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Distri- butions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)			expenses to average net assets before waivers/ reimburse- ments⁴			expenses to average net assets after waivers/ reimburse- ments^3,4			Net effective expense ratio^3,5			Ratio of net income (loss) to average net assets³
Class A:
10/31/16	$	14.58	$	.15		$	.11		$	.26		$	(.13	)	$	(.42	)	$	(.55	)	$	14.29		1.86	%	$	1,074			.35	%		.33	%		.82	%		1.11	%
10/31/15		14.82		.15			(.03	)		.12			(.14	)		(.22	)		(.36	)		14.58		.85			990			.45			.35			.84			1.02
10/31/14		13.92		.14			.92			1.06			(.15	)		(.01	)		(.16	)		14.82		7.71			722			.44			.34			.83			.96
10/31/13		11.17		.11			2.79			2.90			(.14	)		(.01	)		(.15	)		13.92		26.18			377			.50			.40			.90			.85
10/31/12^6,7		10.00		.03			1.14			1.17			—			—			—			11.17		11.70	⁸		53			.25	⁸		.20	⁸		.71	⁸		.29	⁸
Class B:
10/31/16		14.44		.07			.07			.14			—			(.42	)		(.42	)		14.16		1.01			1			1.17			1.15			1.64			.52
10/31/15		14.66		.06			(.06	)		—			—	⁹		(.22	)		(.22	)		14.44		.05			2			1.23			1.13			1.62			.41
10/31/14		13.81		.03			.90			.93			(.07	)		(.01	)		(.08	)		14.66		6.82			2			1.25			1.15			1.64			.23
10/31/13		11.13		.02			2.78			2.80			(.11	)		(.01	)		(.12	)		13.81		25.32			2			1.28			1.18			1.68			.13
10/31/12^6,7		10.00		(.01	)		1.14			1.13			—			—			—			11.13		11.30	⁸		1			.56	⁸		.51	⁸		1.02	⁸		(.08	)⁸
Class C:
10/31/16		14.37		.04			.09			.13			(.03	)		(.42	)		(.45	)		14.05		.99			227			1.14			1.13			1.62			.30
10/31/15		14.63		.03			(.02	)		.01			(.05	)		(.22	)		(.27	)		14.37		.06			198			1.22			1.12			1.61			.22
10/31/14		13.79		.02			.93			.95			(.10	)		(.01	)		(.11	)		14.63		6.92			134			1.24			1.14			1.63			.14
10/31/13		11.13		.01			2.78			2.79			(.12	)		(.01	)		(.13	)		13.79		25.27			62			1.26			1.16			1.66			.04
10/31/12^6,7		10.00		(.02	)		1.15			1.13			—			—			—			11.13		11.30	⁸		8			.56	⁸		.51	⁸		1.02	⁸		(.17	)⁸
Class F-1:
10/31/16		14.58		.15			.10			.25			(.11	)		(.42	)		(.53	)		14.30		1.77			40			.42			.40			.89			1.08
10/31/15		14.82		.15			(.04	)		.11			(.13	)		(.22	)		(.35	)		14.58		.77			39			.50			.40			.89			1.01
10/31/14		13.92		.13			.93			1.06			(.15	)		(.01	)		(.16	)		14.82		7.69			39			.51			.41			.90			.92
10/31/13		11.17		.08			2.82			2.90			(.14	)		(.01	)		(.15	)		13.92		26.23			23			.53			.43			.93			.59
10/31/12^6,7		10.00		.03			1.14			1.17			—			—			—			11.17		11.70	⁸		2			.19	⁸		.14	⁸		.65	⁸		.28	⁸
Class F-2:
10/31/16		14.64		.16			.12			.28			(.16	)		(.42	)		(.58	)		14.34		1.98			105			.15			.13			.62			1.15
10/31/15		14.87		.19			(.04	)		.15			(.16	)		(.22	)		(.38	)		14.64		1.08			55			.24			.14			.63			1.28
10/31/14		13.96		.17			.92			1.09			(.17	)		(.01	)		(.18	)		14.87		7.90			41			.24			.14			.63			1.15
10/31/13		11.18		.12			2.82			2.94			(.15	)		(.01	)		(.16	)		13.96		26.57			20			.27			.17			.67			.96
10/31/12^6,7		10.00		.04			1.14			1.18			—			—			—			11.18		11.80	⁸		1			.11	⁸		.06	⁸		.57	⁸		.37	⁸
Class 529-A:
10/31/16		14.56		.14			.11			.25			(.12	)		(.42	)		(.54	)		14.27		1.79			147			.41			.39			.88			1.03
10/31/15		14.81		.14			(.04	)		.10			(.13	)		(.22	)		(.35	)		14.56		.73			126			.51			.41			.90			.97
10/31/14		13.91		.13			.93			1.06			(.15	)		(.01	)		(.16	)		14.81		7.70			94			.51			.41			.90			.87
10/31/13		11.16		.12			2.78			2.90			(.14	)		(.01	)		(.15	)		13.91		26.27			45			.50			.40			.90			.96
10/31/12^6,7		10.00		.02			1.14			1.16			—			—			—			11.16		11.60	⁸		9			.23	⁸		.18	⁸		.69	⁸		.21	⁸
Class 529-B:
10/31/16		14.42		.08			.05			.13			—			(.42	)		(.42	)		14.13		.94			—	¹⁰		1.26			1.23			1.72			.55
10/31/15		14.65		.05			(.06	)		(.01	)		—			(.22	)		(.22	)		14.42		(.04	)		—	¹⁰		1.32			1.22			1.71			.31
10/31/14		13.80		.03			.90			.93			(.07	)		(.01	)		(.08	)		14.65		6.79			1			1.33			1.23			1.72			.21
10/31/13		11.14		.03			2.75			2.78			(.11	)		(.01	)		(.12	)		13.80		25.11			1			1.38			1.28			1.78			.21
10/31/12^6,7		10.00		(.03	)		1.17			1.14			—			—			—			11.14		11.40	⁸		—	¹⁰		.59	⁸		.54	⁸		1.05	⁸		(.26	)⁸
Class 529-C:
10/31/16		14.34		.03			.10			.13			(.02	)		(.42	)		(.44	)		14.03		.92			56			1.23			1.21			1.70			.22
10/31/15		14.61		.03			(.04	)		(.01	)		(.04	)		(.22	)		(.26	)		14.34		(.02	)		53			1.31			1.21			1.70			.18
10/31/14		13.78		—	⁹		.92			.92			(.08	)		(.01	)		(.09	)		14.61		6.76			42			1.32			1.22			1.71			(.03	)
10/31/13		11.12		(.01	)		2.80			2.79			(.12	)		(.01	)		(.13	)		13.78		25.23			16			1.36			1.26			1.76			(.06	)
10/31/12^6,7		10.00		(.02	)		1.14			1.12			—			—			—			11.12		11.20	⁸		2			.60	⁸		.56	⁸		1.07	⁸		(.18	)⁸
Class 529-E:
10/31/16		14.50		.10			.10			.20			(.09	)		(.42	)		(.51	)		14.19		1.45			6			.68			.67			1.16			.75
10/31/15		14.75		.10			(.02	)		.08			(.11	)		(.22	)		(.33	)		14.50		.55			5			.78			.68			1.17			.69
10/31/14		13.88		.08			.93			1.01			(.13	)		(.01	)		(.14	)		14.75		7.33			4			.79			.69			1.18			.55
10/31/13		11.16		.06			2.80			2.86			(.13	)		(.01	)		(.14	)		13.88		25.89			2			.82			.72			1.22			.49
10/31/12^6,7		10.00		.01			1.15			1.16			—			—			—			11.16		11.60	⁸		—	¹⁰		.33	⁸		.29	⁸		.80	⁸		.08	⁸

48	American Funds Portfolio Series

Global Growth Portfolio

			Income (loss) from investment operations¹									Dividends and distributions																	Ratio of			Ratio of
Period ended	Net asset value, beginning of period		Net investment income (loss)			Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Distri- butions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)			expenses to average net assets before waivers/ reimburse- ments⁴			expenses to average net assets after waivers/ reimburse- ments^3,4			Net effective expense ratio^3,5			Ratio of net income (loss) to average net assets³
Class 529-F-1:
10/31/16	$	14.61	$	.17		$	.11		$	.28		$	(.15	)	$	(.42	)	$	(.57	)	$	14.32		1.97	%	$	10			.22	%		.21	%		.70	%		1.19	%
10/31/15		14.85		.17			(.03	)		.14			(.16	)		(.22	)		(.38	)		14.61		.98			8			.31			.21			.70			1.12
10/31/14		13.94		.14			.94			1.08			(.16	)		(.01	)		(.17	)		14.85		7.85			4			.31			.21			.70			.96
10/31/13		11.18		.16			2.76			2.92			(.15	)		(.01	)		(.16	)		13.94		26.37			1			.37			.27			.77			1.26
10/31/12^6,7		10.00		.03			1.15			1.18			—			—			—			11.18		11.80	⁸		—	¹⁰		.16	⁸		.11	⁸		.62	⁸		.23	⁸
Class R-1:
10/31/16		14.39		.03			.11			.14			(.03	)		(.42	)		(.45	)		14.08		1.03			3			1.15			1.14			1.63			.24
10/31/15		14.65		.02			(.02	)		—			(.04	)		(.22	)		(.26	)		14.39		.03			2			1.23			1.13			1.62			.17
10/31/14		13.81		.02			.92			.94			(.09	)		(.01	)		(.10	)		14.65		6.86			2			1.25			1.15			1.64			.13
10/31/13		11.14		.02			2.78			2.80			(.12	)		(.01	)		(.13	)		13.81		25.28			1			1.25			1.15			1.65			.13
10/31/12^6,7		10.00		—	⁹		1.14			1.14			—			—			—			11.14		11.40	⁸		—	¹⁰		.51	⁸		.47	⁸		.98	⁸		(.04	)⁸
Class R-2:
10/31/16		14.35		.03			.11			.14			(.04	)		(.42	)		(.46	)		14.03		1.03			47			1.16			1.15			1.64			.22
10/31/15		14.62		.02			(.02	)		—			(.05	)		(.22	)		(.27	)		14.35		.03			33			1.25			1.15			1.64			.17
10/31/14		13.80		—	⁹		.93			.93			(.10	)		(.01	)		(.11	)		14.62		6.82			19			1.30			1.20			1.69			.03
10/31/13		11.15		(.02	)		2.81			2.79			(.13	)		(.01	)		(.14	)		13.80		25.24			7			1.27			1.17			1.67			(.18	)
10/31/12^6,7		10.00		(.02	)		1.17			1.15			—			—			—			11.15		11.50	⁸		1			.47	⁸		.42	⁸		.93	⁸		(.21	)⁸
Class R-2E:
10/31/16		14.57		(.05	)		.31			.26			(.14	)		(.42	)		(.56	)		14.27		1.84			1			.75			.75			1.24			(.42	)
10/31/15		14.82		.17			(.04	)		.13			(.16	)		(.22	)		(.38	)		14.57		.94	¹¹		—	¹⁰		.38	¹¹		.27	¹¹		.76	¹¹		1.18	¹¹
10/31/14^6,12		15.02		.01			(.21	)		(.20	)		—			—			—			14.82		(1.33	)^8,11		—	¹⁰		.06	^8,11		.04	^8,11		.53	^8,11		.09	^8,11
Class R-3:
10/31/16		14.49		.09			.11			.20			(.08	)		(.42	)		(.50	)		14.19		1.46			22			.72			.70			1.19			.69
10/31/15		14.74		.10			(.03	)		.07			(.10	)		(.22	)		(.32	)		14.49		.48			18			.79			.69			1.18			.66
10/31/14		13.86		.09			.92			1.01			(.12	)		(.01	)		(.13	)		14.74		7.38			13			.82			.72			1.21			.60
10/31/13		11.16		.05			2.80			2.85			(.14	)		(.01	)		(.15	)		13.86		25.77			6			.83			.73			1.23			.36
10/31/12^6,7		10.00		.04			1.12			1.16			—			—			—			11.16		11.60	⁸		—	¹⁰		.33	⁸		.29	⁸		.80	⁸		.39	⁸
Class R-4:
10/31/16		14.57		.15			.10			.25			(.13	)		(.42	)		(.55	)		14.27		1.81			10			.41			.39			.88			1.08
10/31/15		14.82		.15			(.04	)		.11			(.14	)		(.22	)		(.36	)		14.57		.81			9			.47			.37			.86			1.00
10/31/14		13.93		.12			.93			1.05			(.15	)		(.01	)		(.16	)		14.82		7.62			4			.48			.38			.87			.81
10/31/13		11.18		.14			2.77			2.91			(.15	)		(.01	)		(.16	)		13.93		26.27			1			.49			.39			.89			1.11
10/31/12^6,7		10.00		—	⁹		1.18			1.18			—			—			—			11.18		11.80	⁸		—	¹⁰		.21	⁸		.16	⁸		.67	⁸		(.02	)⁸
Class R-5E:
10/31/16^6,13		14.71		.17			(.03	)		.14			(.17	)		(.42	)		(.59	)		14.26		1.03	⁸		—	¹⁰		.27	¹⁴		.25	¹⁴		.74	¹⁴		1.32	¹⁴
Class R-5:
10/31/16		14.70		.17			.11			.28			(.16	)		(.42	)		(.58	)		14.40		2.03			4			.10			.09			.58			1.25
10/31/15		14.88		.16			—	⁹		.16			(.12	)		(.22	)		(.34	)		14.70		1.13			3			.18			.08			.57			1.10
10/31/14		13.97		.27			.82			1.09			(.17	)		(.01	)		(.18	)		14.88		7.92			1			.21			.11			.60			1.84
10/31/13		11.18		.18			2.77			2.95			(.15	)		(.01	)		(.16	)		13.97		26.66			20			.23			.13			.63			1.47
10/31/12^6,7		10.00		.03			1.15			1.18			—			—			—			11.18		11.80	⁸		11			.10	⁸		.05	⁸		.56	⁸		.30	⁸
Class R-6:
10/31/16		14.72		.21			.09			.30			(.17	)		(.42	)		(.59	)		14.43		2.13			32			.05			.03			.52			1.47
10/31/15		14.95		.20			(.04	)		.16			(.17	)		(.22	)		(.39	)		14.72		1.15			39			.14			.04			.53			1.36
10/31/14		14.02		.14			.98			1.12			(.18	)		(.01	)		(.19	)		14.95		8.07			33			.14			.04			.53			.96
10/31/13		11.17		.10			2.85			2.95			(.09	)		(.01	)		(.10	)		14.02		26.57			3			.18			.08			.58			.79
10/31/12^6,7		10.00		.05			1.12			1.17			—			—			—			11.17		11.70	⁸		—	¹⁰		.13	⁸		.08	⁸		.59	⁸		.52	⁸

See page 62 for footnotes.

American Funds Portfolio Series

Financial highlights (continued)

Growth Portfolio

			Income (loss) from investment operations¹							Dividends and distributions
Period ended	Net asset value, beginning of period		Net investment income (loss)			Net gains (losses) on securities (both realized and unrealized)		Total from investment operations		Dividends (from net investment income)			Distri- butions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)			Ratio of expenses to average net assets before waivers/ reimburse- ments⁴			Ratio of expenses to average net assets after waivers/ reimburse- ments^3,4			Net effective expense ratio^3,5			Ratio of net income (loss) to average net assets³
Class A:
10/31/16	$	15.41	$	.10		$	.41	$	.51	$	(.11	)	$	(.60	)	$	(.71	)	$	15.21		3.41	%	$	2,505			.34	%		.32	%		.76	%		.68	%
10/31/15		15.36		.10			.43		.53		(.12	)		(.36	)		(.48	)		15.41		3.48			2,042			.42			.32			.75			.65
10/31/14		14.02		.07			1.39		1.46		(.08	)		(.04	)		(.12	)		15.36		10.46			1,345			.42			.32			.75			.47
10/31/13		11.02		.09			3.02		3.11		(.11	)		—			(.11	)		14.02		28.45			646			.45			.35			.79			.67
10/31/12^6,7		10.00		.02			1.00		1.02		—			—			—			11.02		10.20	⁸		108			.24	⁸		.19	⁸		.64	⁸		.15	⁸
Class B:
10/31/16		15.23		.02			.35		.37		—			(.60	)		(.60	)		15.00		2.50			1			1.17			1.14			1.58			.12
10/31/15		15.18		—	⁹		.41		.41		—			(.36	)		(.36	)		15.23		2.70			4			1.23			1.13			1.56			.01
10/31/14		13.89		(.04	)		1.37		1.33		—			(.04	)		(.04	)		15.18		9.58			5			1.24			1.14			1.57			(.28	)
10/31/13		10.98		—	⁹		3.00		3.00		(.09	)		—			(.09	)		13.89		27.47			5			1.26			1.16			1.60			(.04	)
10/31/12^6,7		10.00		(.02	)		1.00		.98		—			—			—			10.98		9.80	⁸		1			.55	⁸		.51	⁸		.96	⁸		(.23	)⁸
Class C:
10/31/16		15.18		(.02	)		.39		.37		(.01	)		(.60	)		(.61	)		14.94		2.54			595			1.14			1.12			1.56			(.13	)
10/31/15		15.16		(.03	)		.44		.41		(.03	)		(.36	)		(.39	)		15.18		2.69			458			1.21			1.11			1.54			(.18	)
10/31/14		13.89		(.05	)		1.38		1.33		(.02	)		(.04	)		(.06	)		15.16		9.60			259			1.23			1.13			1.56			(.35	)
10/31/13		10.98		(.02	)		3.02		3.00		(.09	)		—			(.09	)		13.89		27.52			108			1.24			1.14			1.58			(.17	)
10/31/12^6,7		10.00		(.03	)		1.01		.98		—			—			—			10.98		9.80	⁸		14			.55	⁸		.50	⁸		.95	⁸		(.27	)⁸
Class F-1:
10/31/16		15.40		.09			.40		.49		(.09	)		(.60	)		(.69	)		15.20		3.32			60			.41			.39			.83			.63
10/31/15		15.35		.09			.43		.52		(.11	)		(.36	)		(.47	)		15.40		3.42			51			.49			.39			.82			.61
10/31/14		14.01		.06			1.40		1.46		(.08	)		(.04	)		(.12	)		15.35		10.44			40			.50			.40			.83			.41
10/31/13		11.02		.08			3.02		3.10		(.11	)		—			(.11	)		14.01		28.41			19			.51			.41			.85			.64
10/31/12^6,7		10.00		.02			1.00		1.02		—			—			—			11.02		10.20	⁸		3			.19	⁸		.15	⁸		.60	⁸		.19	⁸
Class F-2:
10/31/16		15.47		.12			.41		.53		(.13	)		(.60	)		(.73	)		15.27		3.58			166			.14			.13			.57			.81
10/31/15		15.41		.13			.43		.56		(.14	)		(.36	)		(.50	)		15.47		3.68			104			.23			.13			.56			.82
10/31/14		14.05		.10			1.40		1.50		(.10	)		(.04	)		(.14	)		15.41		10.69			57			.24			.14			.57			.66
10/31/13		11.03		.08			3.06		3.14		(.12	)		—			(.12	)		14.05		28.75			31			.26			.16			.60			.64
10/31/12^6,7		10.00		.03			1.00		1.03		—			—			—			11.03		10.30	⁸		2			.09	⁸		.05	⁸		.50	⁸		.27	⁸
Class 529-A:
10/31/16		15.40		.09			.40		.49		(.10	)		(.60	)		(.70	)		15.19		3.28			370			.41			.40			.84			.60
10/31/15		15.35		.09			.43		.52		(.11	)		(.36	)		(.47	)		15.40		3.43			280			.49			.39			.82			.58
10/31/14		14.01		.06			1.40		1.46		(.08	)		(.04	)		(.12	)		15.35		10.43			184			.49			.39			.82			.40
10/31/13		11.01		.09			3.02		3.11		(.11	)		—			(.11	)		14.01		28.49			90			.49			.39			.83			.71
10/31/12^6,7		10.00		.01			1.00		1.01		—			—			—			11.01		10.10	⁸		21			.23	⁸		.18	⁸		.63	⁸		.09	⁸
Class 529-B:
10/31/16		15.20		.03			.33		.36		—			(.60	)		(.60	)		14.96		2.44			—	¹⁰		1.26			1.23			1.67			.18
10/31/15		15.17		(.02	)		.41		.39		—			(.36	)		(.36	)		15.20		2.56			1			1.31			1.21			1.64			(.12	)
10/31/14		13.89		(.06	)		1.38		1.32		—			(.04	)		(.04	)		15.17		9.51			1			1.32			1.22			1.65			(.41	)
10/31/13		10.98		.01			2.97		2.98		(.07	)		—			(.07	)		13.89		27.33			1			1.36			1.26			1.70			.04
10/31/12^6,7		10.00		(.02	)		1.00		.98		—			—			—			10.98		9.80	⁸		1			.59	⁸		.55	⁸		1.00	⁸		(.23	)⁸
Class 529-C:
10/31/16		15.18		(.03	)		.39		.36		—			(.60	)		(.60	)		14.94		2.44			126			1.22			1.21			1.65			(.20	)
10/31/15		15.15		(.04	)		.44		.40		(.01	)		(.36	)		(.37	)		15.18		2.64			98			1.31			1.21			1.64			(.24	)
10/31/14		13.88		(.06	)		1.37		1.31		—	⁹		(.04	)		(.04	)		15.15		9.45			65			1.31			1.21			1.64			(.41	)
10/31/13		10.98		(.02	)		3.00		2.98		(.08	)		—			(.08	)		13.88		27.35			33			1.34			1.24			1.68			(.15	)
10/31/12^6,7		10.00		(.03	)		1.01		.98		—			—			—			10.98		9.80	⁸		8			.60	⁸		.55	⁸		1.00	⁸		(.30	)⁸
Class 529-E:
10/31/16		15.31		.05			.40		.45		(.07	)		(.60	)		(.67	)		15.09		3.02			18			.68			.66			1.10			.35
10/31/15		15.27		.05			.43		.48		(.08	)		(.36	)		(.44	)		15.31		3.14			14			.77			.67			1.10			.34
10/31/14		13.96		.01			1.39		1.40		(.05	)		(.04	)		(.09	)		15.27		10.08			11			.78			.68			1.11			.09
10/31/13		11.00		.05			3.02		3.07		(.11	)		—			(.11	)		13.96		28.14			5			.80			.70			1.14			.39
10/31/12^6,7		10.00		(.01	)		1.01		1.00		—			—			—			11.00		10.00	⁸		1			.35	⁸		.30	⁸		.75	⁸		(.05	)⁸

50	American Funds Portfolio Series

Growth Portfolio

			Income (loss) from investment operations¹									Dividends and distributions																	Ratio of			Ratio of
Period ended	Net asset value, beginning of period		Net investment income (loss)			Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Distri- butions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)			expenses to average net assets before waivers/ reimburse- ments⁴			expenses to average net assets after waivers/ reimburse- ments^3,4			Net effective expense ratio^3,5			Ratio of net income (loss) to average net assets³
Class 529-F-1:
10/31/16	$	15.45	$	.11		$	.41		$	.52		$	(.12	)	$	(.60	)	$	(.72	)	$	15.25		3.47	%	$	30			.21	%		.20	%		.64	%		.74	%
10/31/15		15.39		.11			.45			.56			(.14	)		(.36	)		(.50	)		15.45		3.64			20			.30			.20			.63			.70
10/31/14		14.04		.09			1.39			1.48			(.09	)		(.04	)		(.13	)		15.39		10.60			10			.31			.21			.64			.59
10/31/13		11.03		.11			3.02			3.13			(.12	)		—			(.12	)		14.04		28.73			4			.34			.24			.68			.90
10/31/12^6,7		10.00		.02			1.01			1.03			—			—			—			11.03		10.20	⁸		1			.14	⁸		.10	⁸		.55	⁸		.16	⁸
Class R-1:
10/31/16		15.22		(.02	)		.40			.38			—			(.60	)		(.60	)		15.00		2.57			7			1.15			1.13			1.57			(.11	)
10/31/15		15.19		(.03	)		.44			.41			(.02	)		(.36	)		(.38	)		15.22		2.66			7			1.22			1.12			1.55			(.19	)
10/31/14		13.90		(.05	)		1.38			1.33			—			(.04	)		(.04	)		15.19		9.57			5			1.24			1.14			1.57			(.34	)
10/31/13		10.99		.01			2.99			3.00			(.09	)		—			(.09	)		13.90		27.52			3			1.24			1.14			1.58			.11
10/31/12^6,7		10.00		(.04	)		1.03			.99			—			—			—			10.99		9.90	⁸		1			.56	⁸		.51	⁸		.96	⁸		(.34	)⁸
Class R-2:
10/31/16		15.18		(.03	)		.41			.38			(.01	)		(.60	)		(.61	)		14.95		2.57			94			1.15			1.14			1.58			(.20	)
10/31/15		15.16		(.03	)		.43			.40			(.02	)		(.36	)		(.38	)		15.18		2.65			61			1.24			1.14			1.57			(.21	)
10/31/14		13.90		(.06	)		1.39			1.33			(.03	)		(.04	)		(.07	)		15.16		9.55			34			1.29			1.19			1.62			(.42	)
10/31/13		11.00		(.03	)		3.03			3.00			(.10	)		—			(.10	)		13.90		27.44			13			1.24			1.14			1.58			(.22	)
10/31/12^6,7		10.00		(.03	)		1.03			1.00			—			—			—			11.00		10.00	⁸		2			.48	⁸		.44	⁸		.89	⁸		(.27	)⁸
Class R-2E:
10/31/16		15.38		.03			.41			.44			(.14	)		(.60	)		(.74	)		15.08		2.94			4			.82			.81			1.25			.23
10/31/15		15.36		.07			.45			.52			(.14	)		(.36	)		(.50	)		15.38		3.43	¹¹		—	¹⁰		.52	¹¹		.42	¹¹		.85	¹¹		.48	¹¹
10/31/14^6,12		15.54		.01			(.19	)		(.18	)		—			—			—			15.36		(1.16	)^8,11		—	¹⁰		.06	^8,11		.04	^8,11		.47	^8,11		.06	^8,11
Class R-3:
10/31/16		15.32		.04			.41			.45			(.06	)		(.60	)		(.66	)		15.11		3.02			55			.71			.69			1.13			.26
10/31/15		15.29		.04			.43			.47			(.08	)		(.36	)		(.44	)		15.32		3.07			37			.78			.68			1.11			.25
10/31/14		13.97		.01			1.39			1.40			(.04	)		(.04	)		(.08	)		15.29		10.07			22			.81			.71			1.14			.06
10/31/13		11.01		.01			3.05			3.06			(.10	)		—			(.10	)		13.97		28.02			9			.81			.71			1.15			.06
10/31/12^6,7		10.00		.02			.99			1.01			—			—			—			11.01		10.10	⁸		—	¹⁰		.32	⁸		.27	⁸		.72	⁸		.19	⁸
Class R-4:
10/31/16		15.40		.09			.40			.49			(.11	)		(.60	)		(.71	)		15.18		3.29			31			.40			.38			.82			.59
10/31/15		15.36		.06			.46			.52			(.12	)		(.36	)		(.48	)		15.40		3.42			23			.47			.37			.80			.40
10/31/14		14.02		.06			1.40			1.46			(.08	)		(.04	)		(.12	)		15.36		10.44			7			.47			.37			.80			.39
10/31/13		11.03		.08			3.03			3.11			(.12	)		—			(.12	)		14.02		28.45			2			.46			.36			.80			.62
10/31/12^6,7		10.00		—	⁹		1.03			1.03			—			—			—			11.03		10.30	⁸		—	¹⁰		.18	⁸		.13	⁸		.58	⁸		.04	⁸
Class R-5E:
10/31/16^6,13		15.52		.12			.28			.40			(.14	)		(.60	)		(.74	)		15.18		2.73	⁸		—	¹⁰		.26	¹⁴		.25	¹⁴		.69	¹⁴		.89	¹⁴
Class R-5:
10/31/16		15.53		.13			.41			.54			(.14	)		(.60	)		(.74	)		15.33		3.62			10			.10			.08			.52			.85
10/31/15		15.42		.10			.47			.57			(.10	)		(.36	)		(.46	)		15.53		3.76			5			.17			.07			.50			.66
10/31/14		14.06		.15			1.35			1.50			(.10	)		(.04	)		(.14	)		15.42		10.72			1			.20			.10			.53			1.03
10/31/13		11.03		.14			3.01			3.15			(.12	)		—			(.12	)		14.06		28.84			20			.20			.10			.54			1.12
10/31/12^6,7		10.00		.03			1.00			1.03			—			—			—			11.03		10.30	⁸		9			.09	⁸		.04	⁸		.49	⁸		.24	⁸
Class R-6:
10/31/16		15.50		.16			.39			.55			(.15	)		(.60	)		(.75	)		15.30		3.66			41			.05			.03			.47			1.05
10/31/15		15.43		.16			.42			.58			(.15	)		(.36	)		(.51	)		15.50		3.83			46			.13			.03			.46			1.00
10/31/14		14.07		.09			1.41			1.50			(.10	)		(.04	)		(.14	)		15.43		10.75			36			.13			.03			.46			.59
10/31/13		11.03		.07			3.08			3.15			(.11	)		—			(.11	)		14.07		28.84			4			.15			.05			.49			.52
10/31/12^6,7		10.00		.05			.98			1.03			—			—			—			11.03		10.30	⁸		—	¹⁰		.12	⁸		.07	⁸		.52	⁸		.46	⁸

See page 62 for footnotes.

American Funds Portfolio Series

Financial highlights (continued)

Growth and Income Portfolio

			Income (loss) from investment operations¹								Dividends and distributions																	Ratio of			Ratio of
Period ended	Net asset value, beginning of period		Net investment income		Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Distri- butions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)			expenses to average net assets before waivers/ reimburse- ments⁴			expenses to average net assets after waivers/ reimburse- ments^3,4			Net effective expense ratio^3,5			Ratio of net income to average net assets³
Class A:
10/31/16	$	13.44	$	.26	$	.25		$	.51		$	(.24	)	$	(.35	)	$	(.59	)	$	13.36		3.98	%	$	3,924			.35	%		.34	%		.71	%		2.02	%
10/31/15		13.80		.26		(.17	)		.09			(.27	)		(.18	)		(.45	)		13.44		.70			3,363			.42			.32			.69			1.95
10/31/14		12.74		.28		1.08			1.36			(.29	)		(.01	)		(.30	)		13.80		10.77			2,564			.42			.32			.69			2.08
10/31/13		10.88		.26		1.88			2.14			(.28	)		—			(.28	)		12.74		20.01			1,394			.43			.33			.70			2.19
10/31/12^6,7		10.00		.09		.87			.96			(.08	)		—			(.08	)		10.88		9.63	⁸		300			.23	⁸		.18	⁸		.56	⁸		.89	⁸
Class B:
10/31/16		13.42		.17		.22			.39			(.11	)		(.35	)		(.46	)		13.35		3.05			2			1.16			1.14			1.51			1.27
10/31/15		13.77		.17		(.19	)		(.02	)		(.15	)		(.18	)		(.33	)		13.42		(.10	)		6			1.22			1.12			1.49			1.25
10/31/14		12.71		.18		1.06			1.24			(.17	)		(.01	)		(.18	)		13.77		9.88			10			1.23			1.13			1.50			1.33
10/31/13		10.86		.17		1.88			2.05			(.20	)		—			(.20	)		12.71		19.08			10			1.25			1.15			1.52			1.47
10/31/12^6,7		10.00		.06		.87			.93			(.07	)		—			(.07	)		10.86		9.30	⁸		4			.55	⁸		.50	⁸		.88	⁸		.59	⁸
Class C:
10/31/16		13.37		.16		.25			.41			(.15	)		(.35	)		(.50	)		13.28		3.16			923			1.13			1.12			1.49			1.23
10/31/15		13.74		.15		(.17	)		(.02	)		(.17	)		(.18	)		(.35	)		13.37		(.12	)		737			1.21			1.11			1.48			1.14
10/31/14		12.69		.17		1.08			1.25			(.19	)		(.01	)		(.20	)		13.74		9.93			491			1.22			1.12			1.49			1.27
10/31/13		10.86		.16		1.88			2.04			(.21	)		—			(.21	)		12.69		19.03			237			1.22			1.12			1.49			1.36
10/31/12^6,7		10.00		.06		.87			.93			(.07	)		—			(.07	)		10.86		9.30	⁸		40			.54	⁸		.50	⁸		.88	⁸		.53	⁸
Class F-1:
10/31/16		13.44		.26		.24			.50			(.24	)		(.35	)		(.59	)		13.35		3.86			111			.40			.39			.76			1.96
10/31/15		13.80		.26		(.18	)		.08			(.26	)		(.18	)		(.44	)		13.44		.64			84			.48			.38			.75			1.90
10/31/14		12.74		.27		1.08			1.35			(.28	)		(.01	)		(.29	)		13.80		10.70			63			.49			.39			.76			2.00
10/31/13		10.88		.26		1.88			2.14			(.28	)		—			(.28	)		12.74		19.98			33			.49			.39			.76			2.16
10/31/12^6,7		10.00		.08		.88			.96			(.08	)		—			(.08	)		10.88		9.66	⁸		7			.20	⁸		.15	⁸		.53	⁸		.79	⁸
Class F-2:
10/31/16		13.46		.29		.24			.53			(.27	)		(.35	)		(.62	)		13.37		4.11			203			.14			.13			.50			2.20
10/31/15		13.82		.28		(.16	)		.12			(.30	)		(.18	)		(.48	)		13.46		.88			125			.23			.13			.50			2.08
10/31/14		12.75		.30		1.09			1.39			(.31	)		(.01	)		(.32	)		13.82		11.03			73			.23			.13			.50			2.27
10/31/13		10.89		.28		1.88			2.16			(.30	)		—			(.30	)		12.75		20.22			33			.24			.14			.51			2.31
10/31/12^6,7		10.00		.11		.87			.98			(.09	)		—			(.09	)		10.89		9.81	⁸		4			.09	⁸		.04	⁸		.42	⁸		1.06	⁸
Class 529-A:
10/31/16		13.44		.25		.24			.49			(.23	)		(.35	)		(.58	)		13.35		3.81			329			.44			.43			.80			1.92
10/31/15		13.80		.25		(.17	)		.08			(.26	)		(.18	)		(.44	)		13.44		.61			276			.51			.41			.78			1.87
10/31/14		12.74		.27		1.07			1.34			(.27	)		(.01	)		(.28	)		13.80		10.67			221			.51			.41			.78			2.00
10/31/13		10.88		.26		1.88			2.14			(.28	)		—			(.28	)		12.74		19.95			129			.49			.39			.76			2.17
10/31/12^6,7		10.00		.09		.87			.96			(.08	)		—			(.08	)		10.88		9.61	⁸		36			.26	⁸		.22	⁸		.60	⁸		.84	⁸
Class 529-B:
10/31/16		13.42		.15		.24			.39			(.10	)		(.35	)		(.45	)		13.36		3.01			—	¹⁰		1.24			1.22			1.59			1.16
10/31/15		13.77		.15		(.18	)		(.03	)		(.14	)		(.18	)		(.32	)		13.42		(.19	)		1			1.31			1.21			1.58			1.11
10/31/14		12.71		.16		1.07			1.23			(.16	)		(.01	)		(.17	)		13.77		9.79			2			1.32			1.22			1.59			1.21
10/31/13		10.86		.17		1.87			2.04			(.19	)		—			(.19	)		12.71		18.99			1			1.34			1.24			1.61			1.45
10/31/12^6,7		10.00		.06		.86			.92			(.06	)		—			(.06	)		10.86		9.25	⁸		1			.59	⁸		.54	⁸		.92	⁸		.53	⁸
Class 529-C:
10/31/16		13.38		.15		.24			.39			(.13	)		(.35	)		(.48	)		13.29		3.05			128			1.22			1.20			1.57			1.15
10/31/15		13.74		.15		(.17	)		(.02	)		(.16	)		(.18	)		(.34	)		13.38		(.15	)		114			1.30			1.20			1.57			1.08
10/31/14		12.69		.16		1.07			1.23			(.17	)		(.01	)		(.18	)		13.74		9.81			93			1.31			1.21			1.58			1.20
10/31/13		10.86		.16		1.86			2.02			(.19	)		—			(.19	)		12.69		18.86			56			1.33			1.23			1.60			1.33
10/31/12^6,7		10.00		.05		.88			.93			(.07	)		—			(.07	)		10.86		9.29	⁸		15			.59	⁸		.54	⁸		.92	⁸		.49	⁸
Class 529-E:
10/31/16		13.41		.22		.25			.47			(.20	)		(.35	)		(.55	)		13.33		3.67			17			.68			.66			1.03			1.71
10/31/15		13.78		.22		(.18	)		.04			(.23	)		(.18	)		(.41	)		13.41		.29			14			.76			.66			1.03			1.61
10/31/14		12.72		.23		1.08			1.31			(.24	)		(.01	)		(.25	)		13.78		10.42			10			.78			.68			1.05			1.74
10/31/13		10.87		.21		1.89			2.10			(.25	)		—			(.25	)		12.72		19.61			6			.79			.69			1.06			1.80
10/31/12^6,7		10.00		.07		.88			.95			(.08	)		—			(.08	)		10.87		9.52	⁸		1			.34	⁸		.30	⁸		.68	⁸		.63	⁸

52	American Funds Portfolio Series

Growth and Income Portfolio

			Income (loss) from investment operations¹								Dividends and distributions																	Ratio of			Ratio of
Period ended	Net asset value, beginning of period		Net investment income		Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Distri- butions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)			expenses to average net assets before waivers/ reimburse- ments⁴			expenses to average net assets after waivers/ reimburse- ments^3,4			Net effective expense ratio^3,5			Ratio of net income to average net assets³
Class 529-F-1:
10/31/16	$	13.45	$	.28	$	.24		$	.52		$	(.26	)	$	(.35	)	$	(.61	)	$	13.36		4.03	%	$	24			.21	%		.20	%		.57	%		2.12	%
10/31/15		13.81		.28		(.17	)		.11			(.29	)		(.18	)		(.47	)		13.45		.81			19			.30			.20			.57			2.09
10/31/14		12.75		.29		1.08			1.37			(.30	)		(.01	)		(.31	)		13.81		10.87			16			.30			.20			.57			2.19
10/31/13		10.89		.29		1.87			2.16			(.30	)		—			(.30	)		12.75		20.14			10			.32			.22			.59			2.41
10/31/12^6,7		10.00		.10		.87			.97			(.08	)		—			(.08	)		10.89		9.78	⁸		1			.14	⁸		.09	⁸		.47	⁸		.89	⁸
Class R-1:
10/31/16		13.39		.16		.24			.40			(.14	)		(.35	)		(.49	)		13.30		3.08			6			1.15			1.13			1.50			1.23
10/31/15		13.75		.15		(.17	)		(.02	)		(.16	)		(.18	)		(.34	)		13.39		(.11	)		7			1.22			1.12			1.49			1.12
10/31/14		12.70		.17		1.07			1.24			(.18	)		(.01	)		(.19	)		13.75		9.88			7			1.23			1.13			1.50			1.28
10/31/13		10.86		.16		1.89			2.05			(.21	)		—			(.21	)		12.70		19.12			4			1.23			1.13			1.50			1.38
10/31/12^6,7		10.00		.08		.85			.93			(.07	)		—			(.07	)		10.86		9.28	⁸		1			.54	⁸		.50	⁸		.88	⁸		.79	⁸
Class R-2:
10/31/16		13.37		.16		.24			.40			(.15	)		(.35	)		(.50	)		13.27		3.08			91			1.15			1.14			1.51			1.20
10/31/15		13.74		.15		(.17	)		(.02	)		(.17	)		(.18	)		(.35	)		13.37		(.12	)		63			1.24			1.14			1.51			1.09
10/31/14		12.69		.16		1.08			1.24			(.18	)		(.01	)		(.19	)		13.74		9.89			38			1.28			1.18			1.55			1.23
10/31/13		10.86		.14		1.90			2.04			(.21	)		—			(.21	)		12.69		19.09			18			1.24			1.14			1.51			1.21
10/31/12^6,7		10.00		.06		.87			.93			(.07	)		—			(.07	)		10.86		9.38	⁸		1			.48	⁸		.43	⁸		.81	⁸		.52	⁸
Class R-2E:
10/31/16		13.44		.16		.29			.45			(.21	)		(.35	)		(.56	)		13.33		3.47			4			.82			.82			1.19			1.19
10/31/15		13.80		.28		(.18	)		.10			(.28	)		(.18	)		(.46	)		13.44		.76	¹¹		—	¹⁰		.36	¹¹		.25	¹¹		.62	¹¹		2.07	¹¹
10/31/14^6,12		13.91		.06		(.11	)		(.05	)		(.06	)		—			(.06	)		13.80		(.34	)^8,11		—	¹⁰		.06	^8,11		.04	^8,11		.41	^8,11		.44	^8,11
Class R-3:
10/31/16		13.41		.22		.23			.45			(.20	)		(.35	)		(.55	)		13.31		3.51			60			.70			.69			1.06			1.66
10/31/15		13.77		.22		(.17	)		.05			(.23	)		(.18	)		(.41	)		13.41		.36			41			.78			.68			1.05			1.59
10/31/14		12.72		.22		1.08			1.30			(.24	)		(.01	)		(.25	)		13.77		10.31			28			.80			.70			1.07			1.68
10/31/13		10.87		.21		1.89			2.10			(.25	)		—			(.25	)		12.72		19.67			13			.80			.70			1.07			1.79
10/31/12^6,7		10.00		.12		.83			.95			(.08	)		—			(.08	)		10.87		9.52	⁸		1			.31	⁸		.27	⁸		.65	⁸		1.09	⁸
Class R-4:
10/31/16		13.44		.26		.24			.50			(.24	)		(.35	)		(.59	)		13.35		3.88			55			.39			.38			.75			1.99
10/31/15		13.80		.22		(.13	)		.09			(.27	)		(.18	)		(.45	)		13.44		.67			35			.46			.36			.73			1.66
10/31/14		12.74		.27		1.08			1.35			(.28	)		(.01	)		(.29	)		13.80		10.75			10			.47			.37			.74			2.00
10/31/13		10.89		.24		1.90			2.14			(.29	)		—			(.29	)		12.74		19.95			2			.44			.34			.71			1.97
10/31/12^6,7		10.00		.11		.86			.97			(.08	)		—			(.08	)		10.89		9.78	⁸		—	¹⁰		.16	⁸		.11	⁸		.49	⁸		1.02	⁸
Class R-5E:
10/31/16^6,13		13.41		.28		.26			.54			(.26	)		(.35	)		(.61	)		13.34		4.20	⁸		—	¹⁰		.25	¹⁴		.24	¹⁴		.61	¹⁴		2.28	¹⁴
Class R-5:
10/31/16		13.48		.30		.25			.55			(.28	)		(.35	)		(.63	)		13.40		4.23			7			.09			.08			.45			2.24
10/31/15		13.84		.29		(.17	)		.12			(.30	)		(.18	)		(.48	)		13.48		.94			3			.17			.07			.44			2.16
10/31/14		12.76		.35		1.03			1.38			(.29	)		(.01	)		(.30	)		13.84		10.99			1			.19			.09			.46			2.65
10/31/13		10.89		.30		1.88			2.18			(.31	)		—			(.31	)		12.76		20.35			20			.18			.08			.45			2.58
10/31/12^6,7		10.00		.10		.88			.98			(.09	)		—			(.09	)		10.89		9.81	⁸		11			.08	⁸		.03	⁸		.41	⁸		.96	⁸
Class R-6:
10/31/16		13.46		.30		.25			.55			(.28	)		(.35	)		(.63	)		13.38		4.28			52			.04			.02			.39			2.32
10/31/15		13.82		.30		(.17	)		.13			(.31	)		(.18	)		(.49	)		13.46		.98			44			.12			.02			.39			2.20
10/31/14		12.75		.29		1.11			1.40			(.32	)		(.01	)		(.33	)		13.82		11.13			32			.12			.02			.39			2.14
10/31/13		10.89		.27		1.90			2.17			(.31	)		—			(.31	)		12.75		20.26			1			.14			.04			.41			2.27
10/31/12^6,7		10.00		.11		.86			.97			(.08	)		—			(.08	)		10.89		9.78	⁸		—	¹⁰		.14	⁸		.10	⁸		.48	⁸		1.02	⁸

See page 62 for footnotes.

American Funds Portfolio Series

Financial highlights (continued)

Balanced Portfolio

			Income (loss) from investment operations¹						Dividends and distributions																	Ratio of			Ratio of
Period ended	Net asset value, beginning of period		Net investment income		Net gains (losses) on securities (both realized and unrealized)		Total from investment operations		Dividends (from net investment income)			Distri- butions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)			expenses to average net assets before waivers/ reimburse- ments⁴			expenses to average net assets after waivers/ reimburse- ments^3,4			Net effective expense ratio^3,5			Ratio of net income to average net assets³
Class A:
10/31/16	$	13.41	$	.21	$	.24	$	.45	$	(.21	)	$	(.27	)	$	(.48	)	$	13.38		3.45	%	$	3,209			.37	%		.35	%		.73	%		1.57	%
10/31/15		13.32		.20		.17		.37		(.19	)		(.09	)		(.28	)		13.41		2.76			2,586			.42			.32			.70			1.51
10/31/14		12.44		.22		.88		1.10		(.22	)		—			(.22	)		13.32		8.94			1,803			.43			.33			.67			1.67
10/31/13		10.80		.21		1.64		1.85		(.21	)		—			(.21	)		12.44		17.29			1,010			.45			.35			.69			1.76
10/31/12^6,7		10.00		.08		.78		.86		(.06	)		—			(.06	)		10.80		8.62	⁸		239			.23	⁸		.18	⁸		.53	⁸		.73	⁸
Class B:
10/31/16		13.39		.11		.22		.33		(.08	)		(.27	)		(.35	)		13.37		2.57			2			1.17			1.14			1.52			.84
10/31/15		13.29		.10		.16		.26		(.07	)		(.09	)		(.16	)		13.39		1.97			5			1.22			1.12			1.50			.77
10/31/14		12.41		.12		.88		1.00		(.12	)		—			(.12	)		13.29		8.08			7			1.23			1.13			1.47			.92
10/31/13		10.78		.12		1.63		1.75		(.12	)		—			(.12	)		12.41		16.38			7			1.25			1.15			1.49			1.03
10/31/12^6,7		10.00		.04		.79		.83		(.05	)		—			(.05	)		10.78		8.29	⁸		3			.55	⁸		.50	⁸		.85	⁸		.37	⁸
Class C:
10/31/16		13.34		.10		.24		.34		(.11	)		(.27	)		(.38	)		13.30		2.65			866			1.13			1.12			1.50			.80
10/31/15		13.26		.09		.17		.26		(.09	)		(.09	)		(.18	)		13.34		1.96			658			1.21			1.11			1.49			.71
10/31/14		12.39		.11		.89		1.00		(.13	)		—			(.13	)		13.26		8.11			416			1.22			1.12			1.46			.86
10/31/13		10.78		.11		1.64		1.75		(.14	)		—			(.14	)		12.39		16.32			197			1.23			1.13			1.47			.96
10/31/12^6,7		10.00		.04		.79		.83		(.05	)		—			(.05	)		10.78		8.30	⁸		40			.54	⁸		.50	⁸		.85	⁸		.37	⁸
Class F-1:
10/31/16		13.41		.20		.24		.44		(.20	)		(.27	)		(.47	)		13.38		3.43			137			.40			.39			.77			1.50
10/31/15		13.32		.19		.17		.36		(.18	)		(.09	)		(.27	)		13.41		2.71			85			.48			.38			.76			1.46
10/31/14		12.43		.21		.89		1.10		(.21	)		—			(.21	)		13.32		8.94			62			.49			.39			.73			1.63
10/31/13		10.80		.19		1.65		1.84		(.21	)		—			(.21	)		12.43		17.20			40			.50			.40			.74			1.61
10/31/12^6,7		10.00		.08		.78		.86		(.06	)		—			(.06	)		10.80		8.64	⁸		4			.19	⁸		.15	⁸		.50	⁸		.79	⁸
Class F-2:
10/31/16		13.43		.23		.25		.48		(.24	)		(.27	)		(.51	)		13.40		3.68			222			.14			.13			.51			1.77
10/31/15		13.33		.23		.17		.40		(.21	)		(.09	)		(.30	)		13.43		3.03			104			.23			.13			.51			1.69
10/31/14		12.45		.24		.89		1.13		(.25	)		—			(.25	)		13.33		9.11			64			.23			.13			.47			1.84
10/31/13		10.81		.23		1.64		1.87		(.23	)		—			(.23	)		12.45		17.51			29			.25			.15			.49			1.96
10/31/12^6,7		10.00		.09		.79		.88		(.07	)		—			(.07	)		10.81		8.80	⁸		6			.09	⁸		.04	⁸		.39	⁸		.88	⁸
Class 529-A:
10/31/16		13.41		.20		.24		.44		(.20	)		(.27	)		(.47	)		13.38		3.38			213			.44			.42			.80			1.50
10/31/15		13.32		.19		.17		.36		(.18	)		(.09	)		(.27	)		13.41		2.66			182			.52			.42			.80			1.42
10/31/14		12.43		.21		.89		1.10		(.21	)		—			(.21	)		13.32		8.92			144			.52			.42			.76			1.59
10/31/13		10.79		.21		1.63		1.84		(.20	)		—			(.20	)		12.43		17.27			90			.49			.39			.73			1.77
10/31/12^6,7		10.00		.07		.78		.85		(.06	)		—			(.06	)		10.79		8.51	⁸		34			.27	⁸		.23	⁸		.58	⁸		.66	⁸
Class 529-B:
10/31/16		13.39		.10		.23		.33		(.07	)		(.27	)		(.34	)		13.38		2.55			—	¹⁰		1.25			1.23			1.61			.77
10/31/15		13.29		.09		.16		.25		(.06	)		(.09	)		(.15	)		13.39		1.89			1			1.31			1.21			1.59			.66
10/31/14		12.41		.11		.87		.98		(.10	)		—			(.10	)		13.29		7.96			1			1.32			1.22			1.56			.87
10/31/13		10.78		.11		1.63		1.74		(.11	)		—			(.11	)		12.41		16.23			1			1.34			1.24			1.58			.91
10/31/12^6,7		10.00		.04		.78		.82		(.04	)		—			(.04	)		10.78		8.25	⁸		—	¹⁰		.59	⁸		.54	⁸		.89	⁸		.38	⁸
Class 529-C:
10/31/16		13.35		.09		.24		.33		(.09	)		(.27	)		(.36	)		13.32		2.61			102			1.22			1.21			1.59			.72
10/31/15		13.27		.09		.16		.25		(.08	)		(.09	)		(.17	)		13.35		1.84			92			1.30			1.20			1.58			.64
10/31/14		12.40		.10		.89		.99		(.12	)		—			(.12	)		13.27		7.98			75			1.31			1.21			1.55			.78
10/31/13		10.78		.11		1.63		1.74		(.12	)		—			(.12	)		12.40		16.26			44			1.33			1.23			1.57			.91
10/31/12^6,7		10.00		.04		.78		.82		(.04	)		—			(.04	)		10.78		8.25	⁸		14			.59	⁸		.55	⁸		.90	⁸		.33	⁸
Class 529-E:
10/31/16		13.39		.17		.24		.41		(.17	)		(.27	)		(.44	)		13.36		3.16			9			.67			.66			1.04			1.26
10/31/15		13.30		.16		.17		.33		(.15	)		(.09	)		(.24	)		13.39		2.43			7			.77			.67			1.05			1.16
10/31/14		12.42		.17		.89		1.06		(.18	)		—			(.18	)		13.30		8.56			5			.78			.68			1.02			1.31
10/31/13		10.79		.17		1.63		1.80		(.17	)		—			(.17	)		12.42		16.89			3			.80			.70			1.04			1.44
10/31/12^6,7		10.00		.06		.79		.85		(.06	)		—			(.06	)		10.79		8.49	⁸		1			.35	⁸		.30	⁸		.65	⁸		.61	⁸

54	American Funds Portfolio Series

Balanced Portfolio

			Income (loss) from investment operations¹								Dividends and distributions																	Ratio of			Ratio of
Period ended	Net asset value, beginning of period		Net investment income		Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Distri- butions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)			expenses to average net assets before waivers/ reimburse- ments⁴			expenses to average net assets after waivers/ reimburse- ments^3,4			Net effective expense ratio^3,5			Ratio of net income to average net assets³
Class 529-F-1:
10/31/16	$	13.42	$	.23	$	.23		$	.46		$	(.22	)	$	(.27	)	$	(.49	)	$	13.39		3.60	%	$	22			.22	%		.20	%		.58	%		1.71	%
10/31/15		13.33		.22		.16			.38			(.20	)		(.09	)		(.29	)		13.42		2.89			17			.30			.20			.58			1.64
10/31/14		12.44		.24		.89			1.13			(.24	)		—			(.24	)		13.33		9.12			12			.30			.20			.54			1.83
10/31/13		10.80		.24		1.62			1.86			(.22	)		—			(.22	)		12.44		17.45			9			.32			.22			.56			2.03
10/31/12^6,7		10.00		.09		.77			.86			(.06	)		—			(.06	)		10.80		8.67	⁸		1			.14	⁸		.09	⁸		.44	⁸		.85	⁸
Class R-1:
10/31/16		13.36		.10		.24			.34			(.10	)		(.27	)		(.37	)		13.33		2.66			10			1.15			1.13			1.51			.78
10/31/15		13.27		.09		.18			.27			(.09	)		(.09	)		(.18	)		13.36		1.99			9			1.22			1.12			1.50			.70
10/31/14		12.40		.12		.87			.99			(.12	)		—			(.12	)		13.27		8.06			7			1.23			1.13			1.47			.89
10/31/13		10.78		.11		1.64			1.75			(.13	)		—			(.13	)		12.40		16.40			4			1.24			1.14			1.48			.95
10/31/12^6,7		10.00		.04		.79			.83			(.05	)		—			(.05	)		10.78		8.32	⁸		1			.55	⁸		.50	⁸		.85	⁸		.36	⁸
Class R-2:
10/31/16		13.35		.10		.24			.34			(.11	)		(.27	)		(.38	)		13.31		2.63			75			1.16			1.14			1.52			.76
10/31/15		13.27		.09		.17			.26			(.09	)		(.09	)		(.18	)		13.35		1.92			54			1.24			1.14			1.52			.67
10/31/14		12.40		.10		.89			.99			(.12	)		—			(.12	)		13.27		8.04			36			1.28			1.18			1.52			.79
10/31/13		10.79		.11		1.64			1.75			(.14	)		—			(.14	)		12.40		16.33			15			1.25			1.15			1.49			.90
10/31/12^6,7		10.00		.04		.81			.85			(.06	)		—			(.06	)		10.79		8.50	⁸		3			.48	⁸		.44	⁸		.79	⁸		.40	⁸
Class R-2E:
10/31/16		13.40		.09		.31			.40			(.17	)		(.27	)		(.44	)		13.36		3.09			3			.82			.82			1.20			.73
10/31/15		13.31		.22		.16			.38			(.20	)		(.09	)		(.29	)		13.40		2.82	¹¹		—	¹⁰		.35	¹¹		.25	¹¹		.63	¹¹		1.61	¹¹
10/31/14^6,12		13.37		.04		(.05	)		(.01	)		(.05	)		—			(.05	)		13.31		(.10	)^8,11		—	¹⁰		.06	^8,11		.04	^8,11		.38	^8,11		.31	^8,11
Class R-3:
10/31/16		13.38		.16		.24			.40			(.16	)		(.27	)		(.43	)		13.35		3.13			80			.71			.69			1.07			1.24
10/31/15		13.30		.15		.17			.32			(.15	)		(.09	)		(.24	)		13.38		2.38			63			.78			.68			1.06			1.15
10/31/14		12.42		.16		.90			1.06			(.18	)		—			(.18	)		13.30		8.56			35			.81			.71			1.05			1.27
10/31/13		10.79		.16		1.64			1.80			(.17	)		—			(.17	)		12.42		16.86			18			.80			.70			1.04			1.36
10/31/12^6,7		10.00		.10		.75			.85			(.06	)		—			(.06	)		10.79		8.53	⁸		5			.31	⁸		.26	⁸		.61	⁸		.89	⁸
Class R-4:
10/31/16		13.41		.21		.23			.44			(.20	)		(.27	)		(.47	)		13.38		3.43			55			.40			.38			.76			1.62
10/31/15		13.32		.19		.17			.36			(.18	)		(.09	)		(.27	)		13.41		2.72			53			.46			.36			.74			1.45
10/31/14		12.44		.21		.89			1.10			(.22	)		—			(.22	)		13.32		8.88			40			.47			.37			.71			1.61
10/31/13		10.80		.20		1.65			1.85			(.21	)		—			(.21	)		12.44		17.33			24			.43			.33			.67			1.71
10/31/12^6,7		10.00		.10		.76			.86			(.06	)		—			(.06	)		10.80		8.61	⁸		1			.20	⁸		.15	⁸		.50	⁸		.92	⁸
Class R-5E:
10/31/16^6,13		13.44		.20		.23			.43			(.22	)		(.27	)		(.49	)		13.38		3.38	⁸		—	¹⁰		.26	¹⁴		.25	¹⁴		.63	¹⁴		1.60	¹⁴
Class R-5:
10/31/16		13.43		.24		.25			.49			(.24	)		(.27	)		(.51	)		13.41		3.79			12			.10			.08			.46			1.85
10/31/15		13.34		.24		.16			.40			(.22	)		(.09	)		(.31	)		13.43		3.00			11			.17			.07			.45			1.78
10/31/14		12.45		.27		.87			1.14			(.25	)		—			(.25	)		13.34		9.24			9			.19			.09			.43			2.06
10/31/13		10.81		.24		1.63			1.87			(.23	)		—			(.23	)		12.45		17.56			15			.18			.08			.42			2.06
10/31/12^6,7		10.00		.09		.79			.88			(.07	)		—			(.07	)		10.81		8.80	⁸		7			.08	⁸		.03	⁸		.38	⁸		.83	⁸
Class R-6:
10/31/16		13.43		.24		.25			.49			(.25	)		(.27	)		(.52	)		13.40		3.77			138			.04			.02			.40			1.81
10/31/15		13.34		.24		.17			.41			(.23	)		(.09	)		(.32	)		13.43		3.05			73			.12			.02			.40			1.77
10/31/14		12.45		.25		.90			1.15			(.26	)		—			(.26	)		13.34		9.29			39			.13			.03			.37			1.89
10/31/13		10.81		.24		1.64			1.88			(.24	)		—			(.24	)		12.45		17.57			10			.14			.04			.38			2.01
10/31/12^6,7		10.00		.10		.77			.87			(.06	)		—			(.06	)		10.81		8.77	⁸		—	¹⁰		.13	⁸		.08	⁸		.43	⁸		.93	⁸

See page 62 for footnotes.

American Funds Portfolio Series

Financial highlights (continued)

Income Portfolio

			Income (loss) from investment operations¹								Dividends and distributions																	Ratio of			Ratio of
Period ended	Net asset value, beginning of period		Net investment income		Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Distri- butions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)			expenses to average net assets before waivers/ reimburse- ments⁴			expenses to average net assets after waivers/ reimburse- ments^3,4			Net effective expense ratio^3,5			Ratio of net income to average net assets³
Class A:
10/31/16	$	11.55	$	.36	$	.24		$	.60		$	(.40	)	$	(.05	)	$	(.45	)	$	11.70		5.30	%	$	2,655			.36	%		.35	%		.65	%		3.13	%
10/31/15		11.98		.40		(.42	)		(.02	)		(.37	)		(.04	)		(.41	)		11.55		(.18	)		2,265			.44			.34			.64			3.35
10/31/14		11.46		.37		.53			.90			(.37	)		(.01	)		(.38	)		11.98		7.94			1,766			.45			.35			.66			3.18
10/31/13		10.57		.36		.90			1.26			(.37	)		—			(.37	)		11.46		12.19			1,067			.48			.38			.68			3.28
10/31/12^6,7		10.00		.16		.52			.68			(.11	)		—			(.11	)		10.57		6.84	⁸		307			.23	⁸		.18	⁸		.49	⁸		1.54	⁸
Class B:
10/31/16		11.53		.26		.25			.51			(.28	)		(.05	)		(.33	)		11.71		4.50			1			1.17			1.14			1.44			2.28
10/31/15		11.96		.31		(.43	)		(.12	)		(.27	)		(.04	)		(.31	)		11.53		(1.02	)		4			1.22			1.12			1.42			2.59
10/31/14		11.43		.28		.53			.81			(.27	)		(.01	)		(.28	)		11.96		7.17			6			1.23			1.13			1.44			2.40
10/31/13		10.55		.28		.90			1.18			(.30	)		—			(.30	)		11.43		11.35			6			1.25			1.15			1.45			2.51
10/31/12^6,7		10.00		.13		.51			.64			(.09	)		—			(.09	)		10.55		6.47	⁸		2			.55	⁸		.50	⁸		.81	⁸		1.26	⁸
Class C:
10/31/16		11.49		.27		.24			.51			(.31	)		(.05	)		(.36	)		11.64		4.55			627			1.14			1.12			1.42			2.35
10/31/15		11.93		.30		(.41	)		(.11	)		(.29	)		(.04	)		(.33	)		11.49		(.98	)		529			1.21			1.11			1.41			2.57
10/31/14		11.41		.28		.54			.82			(.29	)		(.01	)		(.30	)		11.93		7.19			381			1.22			1.12			1.43			2.41
10/31/13		10.54		.28		.90			1.18			(.31	)		—			(.31	)		11.41		11.35			214			1.23			1.13			1.43			2.51
10/31/12^6,7		10.00		.12		.52			.64			(.10	)		—			(.10	)		10.54		6.41	⁸		58			.54	⁸		.50	⁸		.81	⁸		1.20	⁸
Class F-1:
10/31/16		11.55		.36		.23			.59			(.39	)		(.05	)		(.44	)		11.70		5.26			83			.41			.39			.69			3.09
10/31/15		11.99		.39		(.42	)		(.03	)		(.37	)		(.04	)		(.41	)		11.55		(.30	)		72			.48			.38			.68			3.32
10/31/14		11.46		.37		.53			.90			(.36	)		(.01	)		(.37	)		11.99		7.97			62			.49			.39			.70			3.15
10/31/13		10.57		.37		.89			1.26			(.37	)		—			(.37	)		11.46		12.17			42			.51			.41			.71			3.31
10/31/12^6,7		10.00		.16		.52			.68			(.11	)		—			(.11	)		10.57		6.85	⁸		18			.20	⁸		.16	⁸		.47	⁸		1.50	⁸
Class F-2:
10/31/16		11.56		.40		.22			.62			(.42	)		(.05	)		(.47	)		11.71		5.54			174			.14			.13			.43			3.45
10/31/15		12.00		.42		(.42	)		—			(.40	)		(.04	)		(.44	)		11.56		(.06	)		77			.24			.14			.44			3.56
10/31/14		11.46		.40		.54			.94			(.39	)		(.01	)		(.40	)		12.00		8.32			59			.23			.13			.44			3.39
10/31/13		10.57		.39		.90			1.29			(.40	)		—			(.40	)		11.46		12.44			36			.25			.15			.45			3.50
10/31/12^6,7		10.00		.17		.52			.69			(.12	)		—			(.12	)		10.57		6.90	⁸		10			.09	⁸		.04	⁸		.35	⁸		1.61	⁸
Class 529-A:
10/31/16		11.54		.35		.23			.58			(.38	)		(.05	)		(.43	)		11.69		5.21			81			.44			.43			.73			3.05
10/31/15		11.98		.38		(.42	)		(.04	)		(.36	)		(.04	)		(.40	)		11.54		(.35	)		71			.55			.45			.75			3.25
10/31/14		11.45		.36		.54			.90			(.36	)		(.01	)		(.37	)		11.98		7.94			62			.53			.43			.74			3.11
10/31/13		10.56		.35		.91			1.26			(.37	)		—			(.37	)		11.45		12.14			39			.55			.45			.75			3.20
10/31/12^6,7		10.00		.16		.51			.67			(.11	)		—			(.11	)		10.56		6.72	⁸		13			.25	⁸		.20	⁸		.51	⁸		1.56	⁸
Class 529-B:
10/31/16		11.53		.26		.24			.50			(.27	)		(.05	)		(.32	)		11.71		4.45			—	¹⁰		1.23			1.20			1.50			2.28
10/31/15		11.96		.30		(.43	)		(.13	)		(.26	)		(.04	)		(.30	)		11.53		(1.11	)		—	¹⁰		1.31			1.21			1.51			2.51
10/31/14		11.43		.27		.54			.81			(.27	)		(.01	)		(.28	)		11.96		7.10			1			1.32			1.22			1.53			2.34
10/31/13		10.55		.27		.90			1.17			(.29	)		—			(.29	)		11.43		11.23			1			1.34			1.24			1.54			2.45
10/31/12^6,7		10.00		.12		.53			.65			(.10	)		—			(.10	)		10.55		6.50	⁸		—	¹⁰		.58	⁸		.53	⁸		.84	⁸		1.12	⁸
Class 529-C:
10/31/16		11.50		.26		.23			.49			(.30	)		(.05	)		(.35	)		11.64		4.35			47			1.22			1.20			1.50			2.27
10/31/15		11.93		.29		(.41	)		(.12	)		(.27	)		(.04	)		(.31	)		11.50		(1.01	)		45			1.30			1.20			1.50			2.49
10/31/14		11.41		.27		.53			.80			(.27	)		(.01	)		(.28	)		11.93		7.06			40			1.31			1.21			1.52			2.33
10/31/13		10.54		.27		.89			1.16			(.29	)		—			(.29	)		11.41		11.23			29			1.33			1.23			1.53			2.42
10/31/12^6,7		10.00		.13		.51			.64			(.10	)		—			(.10	)		10.54		6.41	⁸		9			.59	⁸		.54	⁸		.85	⁸		1.20	⁸
Class 529-E:
10/31/16		11.53		.32		.25			.57			(.36	)		(.05	)		(.41	)		11.69		5.05			6			.68			.66			.96			2.81
10/31/15		11.97		.35		(.41	)		(.06	)		(.34	)		(.04	)		(.38	)		11.53		(.56	)		6			.77			.67			.97			3.00
10/31/14		11.44		.34		.53			.87			(.33	)		(.01	)		(.34	)		11.97		7.70			5			.78			.68			.99			2.86
10/31/13		10.56		.33		.89			1.22			(.34	)		—			(.34	)		11.44		11.80			3			.80			.70			1.00			2.98
10/31/12^6,7		10.00		.15		.52			.67			(.11	)		—			(.11	)		10.56		6.69	⁸		1			.35	⁸		.30	⁸		.61	⁸		1.47	⁸

56	American Funds Portfolio Series

Income Portfolio

			Income (loss) from investment operations¹								Dividends and distributions																	Ratio of			Ratio of
Period ended	Net asset value, beginning of period		Net investment income		Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Distri- butions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)			expenses to average net assets before waivers/ reimburse- ments⁴			expenses to average net assets after waivers/ reimburse- ments^3,4			Net effective expense ratio^3,5			Ratio of net income to average net assets³
Class 529-F-1:
10/31/16	$	11.55	$	.38	$	.23		$	.61		$	(.41	)	$	(.05	)	$	(.46	)		11.70		5.45	%		9			.21	%		.20	%		.50	%		3.26	%
10/31/15		11.99		.41		(.42	)		(.01	)		(.39	)		(.04	)		(.43	)		11.55		(.11	)		6			.30			.20			.50			3.50
10/31/14		11.46		.40		.52			.92			(.38	)		(.01	)		(.39	)		11.99		8.16			4			.30			.20			.51			3.36
10/31/13		10.57		.39		.89			1.28			(.39	)		—			(.39	)		11.46		12.36			2			.33			.23			.53			3.54
10/31/12^6,7		10.00		.17		.52			.69			(.12	)		—			(.12	)		10.57		6.89	⁸		—	¹⁰		.14	⁸		.09	⁸		.40	⁸		1.63	⁸
Class R-1:
10/31/16		11.50		.27		.24			.51			(.31	)		(.05	)		(.36	)		11.65		4.50			2			1.15			1.13			1.43			2.33
10/31/15		11.94		.30		(.42	)		(.12	)		(.28	)		(.04	)		(.32	)		11.50		(1.03	)		1			1.22			1.12			1.42			2.56
10/31/14		11.42		.27		.55			.82			(.29	)		(.01	)		(.30	)		11.94		7.20			2			1.23			1.13			1.44			2.34
10/31/13		10.55		.28		.90			1.18			(.31	)		—			(.31	)		11.42		11.36			1			1.23			1.13			1.43			2.57
10/31/12^6,7		10.00		.17		.49			.66			(.11	)		—			(.11	)		10.55		6.59	⁸		—	¹⁰		.48	⁸		.43	⁸		.74	⁸		1.63	⁸
Class R-2:
10/31/16		11.50		.27		.23			.50			(.31	)		(.05	)		(.36	)		11.64		4.44			27			1.17			1.15			1.45			2.33
10/31/15		11.94		.30		(.41	)		(.11	)		(.29	)		(.04	)		(.33	)		11.50		(.99	)		22			1.24			1.14			1.44			2.55
10/31/14		11.42		.27		.54			.81			(.28	)		(.01	)		(.29	)		11.94		7.10			15			1.29			1.19			1.50			2.35
10/31/13		10.56		.27		.90			1.17			(.31	)		—			(.31	)		11.42		11.26			10			1.25			1.15			1.45			2.44
10/31/12^6,7		10.00		.13		.53			.66			(.10	)		—			(.10	)		10.56		6.67`	⁸		2			.50	⁸		.45	⁸		.76	⁸		1.28	⁸
Class R-2E:
10/31/16		11.54		.19		.42			.61			(.41	)		(.05	)		(.46	)		11.69		5.39			—	¹⁰		.68			.67			.97			1.65
10/31/15		11.98		.41		(.43	)		(.02	)		(.38	)		(.04	)		(.42	)		11.54		(.18	)¹¹		—	¹⁰		.36	¹¹		.25	¹¹		.55	¹¹		3.46	¹¹
10/31/14^6,12		12.07		.08		(.07	)		.01			(.10	)		—			(.10	)		11.98		.07	^8,11		—	¹⁰		.06	^8,11		.04	^8,11		.35	^8,11		.69	^8,11
Class R-3:
10/31/16		11.53		.32		.24			.56			(.36	)		(.05	)		(.41	)		11.68		4.98			25			.71			.69			.99			2.79
10/31/15		11.97		.35		(.41	)		(.06	)		(.34	)		(.04	)		(.38	)		11.53		(.56	)		18			.78			.68			.98			2.99
10/31/14		11.45		.33		.53			.86			(.33	)		(.01	)		(.34	)		11.97		7.58			11			.81			.71			1.02			2.84
10/31/13		10.56		.31		.92			1.23			(.34	)		—			(.34	)		11.45		11.86			6			.81			.71			1.01			2.83
10/31/12^6,7		10.00		.19		.48			.67			(.11	)		—			(.11	)		10.56		6.75	⁸		2			.31	⁸		.26	8		.57	⁸		1.85	⁸
Class R-4:
10/31/16		11.55		.35		.24			.59			(.39	)		(.05	)		(.44	)		11.70		5.28			31			.40			.38			.68			3.07
10/31/15		11.99		.38		(.41	)		(.03	)		(.37	)		(.04	)		(.41	)		11.55		(.27	)		19			.46			.36			.66			3.26
10/31/14		11.46		.36		.55			.91			(.37	)		(.01	)		(.38	)		11.99		7.99			10			.47			.37			.68			3.05
10/31/13		10.57		.37		.90			1.27			(.38	)		—			(.38	)		11.46		12.24			6			.45			.35			.65			3.37
10/31/12^6,7		10.00		.23		.46			.69			(.12	)		—			(.12	)		10.57		6.89	⁸		1			.18	⁸		.14	8		.45	⁸		2.21	⁸
Class R-5E:
10/31/16^6,13		11.47		.42		.27			.69			(.42	)		(.05	)		(.47	)		11.69		6.14	⁸		—	¹⁰		.26	¹⁴		.25	¹⁴		.55	¹⁴		3.77	¹⁴
Class R-5:
10/31/16		11.57		.39		.24			.63			(.43	)		(.05	)		(.48	)		11.72		5.56			4			.10			.08			.38			3.35
10/31/15		12.00		.42		(.41	)		.01			(.40	)		(.04	)		(.44	)		11.57		.09			3			.18			.08			.38			3.58
10/31/14		11.47		.42		.51			.93			(.39	)		(.01	)		(.40	)		12.00		8.24			2			.19			.09			.40			3.58
10/31/13		10.57		.39		.91			1.30			(.40	)		—			(.40	)		11.47		12.58			9			.19			.09			.39			3.54
10/31/12^6,7		10.00		.17		.52			.69			(.12	)		—			(.12	)		10.57		6.91	⁸		5			.08	⁸		.03	⁸		.34	⁸		1.68	⁸
Class R-6:
10/31/16		11.56		.40		.24			.64			(.43	)		(.05	)		(.48	)		11.72		5.71			25			.04			.03			.33			3.43
10/31/15		12.00		.43		(.42	)		.01			(.41	)		(.04	)		(.45	)		11.56		.05			17			.13			.03			.33			3.64
10/31/14		11.47		.41		.53			.94			(.40	)		(.01	)		(.41	)		12.00		8.33			12			.13			.03			.34			3.48
10/31/13		10.57		.37		.93			1.30			(.40	)		—			(.40	)		11.47		12.57			2			.13			.03			.33			3.29
10/31/12^6,7		10.00		.19		.50			.69			(.12	)		—			(.12	)		10.57		6.89	⁸		—	¹⁰		.14	⁸		.09	⁸		.40	⁸		1.79	⁸

See page 62 for footnotes.

American Funds Portfolio Series

Financial highlights (continued)

Tax-Advantaged Income Portfolio

			Income from investment operations¹							Dividends and distributions																	Ratio of			Ratio of
Period ended	Net asset value, beginning of period		Net investment income		Net gains (losses) on securities (both realized and unrealized)			Total from investment operations		Dividends (from net investment income)			Distri- butions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)			expenses to average net assets before waivers/ reimburse- ments⁴			expenses to average net assets after waivers/ reimburse- ments^3,4			Net effective expense ratio^3,5			Ratio of net income to average net assets³
Class A:
10/31/16	$	12.40	$	.33	$	.22		$	.55	$	(.33	)	$	(.08	)	$	(.41	)	$	12.54		4.52	%	$	889			.43	%		.42	%		.78	%		2.69	%
10/31/15		12.48		.34		(.07	)		.27		(.32	)		(.03	)		(.35	)		12.40		2.22			649			.53			.43			.79			2.74
10/31/14		11.54		.34		.94			1.28		(.34	)		—			(.34	)		12.48		11.25			413			.54			.44			.81			2.85
10/31/13		10.66		.33		.86			1.19		(.30	)		(.01	)		(.31	)		11.54		11.28			220			.55			.45			.82			2.93
10/31/12^6,7		10.00		.15		.62			.77		(.11	)		—			(.11	)		10.66		7.73	⁸		66			.24	⁸		.19	⁸		.55	⁸		1.45	⁸
Class B:
10/31/16		12.40		.24		.22			.46		(.20	)		(.08	)		(.28	)		12.58		3.75			—	¹⁰		1.14			1.12			1.48			1.93
10/31/15		12.47		.25		(.07	)		.18		(.22	)		(.03	)		(.25	)		12.40		1.45			—	¹⁰		1.23			1.13			1.49			2.01
10/31/14		11.52		.26		.94			1.20		(.25	)		—			(.25	)		12.47		10.55			—	¹⁰		1.25			1.15			1.52			2.16
10/31/13		10.66		.25		.85			1.10		(.23	)		(.01	)		(.24	)		11.52		10.38			—	¹⁰		1.28			1.18			1.55			2.24
10/31/12^6,7		10.00		.12		.63			.75		(.09	)		—			(.09	)		10.66		7.51	⁸		—	¹⁰		.52	⁸		.48	⁸		.84	⁸		1.20	⁸
Class C:
10/31/16		12.34		.24		.21			.45		(.25	)		(.08	)		(.33	)		12.46		3.70			155			1.14			1.13			1.49			1.97
10/31/15		12.43		.25		(.06	)		.19		(.25	)		(.03	)		(.28	)		12.34		1.50			101			1.23			1.13			1.49			2.04
10/31/14		11.50		.26		.93			1.19		(.26	)		—			(.26	)		12.43		10.49			60			1.24			1.14			1.51			2.14
10/31/13		10.64		.25		.85			1.10		(.23	)		(.01	)		(.24	)		11.50		10.45			27			1.27			1.17			1.54			2.21
10/31/12^6,7		10.00		.11		.63			.74		(.10	)		—			(.10	)		10.64		7.43	⁸		8			.55	⁸		.50	⁸		.86	⁸		1.01	⁸
Class F-1:
10/31/16		12.40		.33		.21			.54		(.33	)		(.08	)		(.41	)		12.53		4.47			39			.41			.40			.76			2.69
10/31/15		12.48		.34		(.06	)		.28		(.33	)		(.03	)		(.36	)		12.40		2.24			22			.50			.40			.76			2.76
10/31/14		11.54		.35		.93			1.28		(.34	)		—			(.34	)		12.48		11.25			16			.51			.41			.78			2.91
10/31/13		10.66		.33		.86			1.19		(.30	)		(.01	)		(.31	)		11.54		11.31			11			.53			.43			.80			2.92
10/31/12^6,7		10.00		.14		.63			.77		(.11	)		—			(.11	)		10.66		7.79	⁸		3			.19	⁸		.15	⁸		.51	⁸		1.30	⁸
Class F-2:
10/31/16		12.42		.37		.20			.57		(.36	)		(.08	)		(.44	)		12.55		4.72			62			.15			.14			.50			2.95
10/31/15		12.50		.37		(.06	)		.31		(.36	)		(.03	)		(.39	)		12.42		2.49			34			.25			.15			.51			3.01
10/31/14		11.54		.37		.96			1.33		(.37	)		—			(.37	)		12.50		11.71			18			.24			.14			.51			3.09
10/31/13		10.67		.36		.85			1.21		(.33	)		(.01	)		(.34	)		11.54		11.46			6			.28			.18			.55			3.21
10/31/12^6,7		10.00		.15		.64			.79		(.12	)		—			(.12	)		10.67		7.92	⁸		1			.10	⁸		.05	⁸		.41	⁸		1.48	⁸

58	American Funds Portfolio Series

Preservation Portfolio

			Income (loss) from investment operations¹
Period ended	Net asset value, beginning of period		Net investment income		Net gains (losses) 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 millions)			Ratio of expenses to average net assets before waivers/ reimbursements⁴			Ratio of expenses to average net assets after waivers/ reimbursements^3,4			Net effective expense ratio^3,5			Ratio of net income to average net assets³
Class A:
10/31/16	$	9.95	$	.10	$	.09		$	.19		$	(.11	)	$	10.03		1.90	%	$	803			.42	%		.41	%		.71	%		1.05	%
10/31/15		9.95		.11		—	⁹		.11			(.11	)		9.95		1.08			582			.51			.41			.71			1.09
10/31/14		9.91		.10		.04			.14			(.10	)		9.95		1.44			436			.50			.39			.69			1.01
10/31/13		10.08		.11		(.17	)		(.06	)		(.11	)		9.91		(.59	)		333			.53			.41			.71			1.13
10/31/12^6,7		10.00		.06		.07			.13			(.05	)		10.08		1.26	⁸		163			.23	⁸		.19	⁸		.50	⁸		.60	⁸
Class B:
10/31/16		9.95		.03		.08			.11			(.02	)		10.04		1.15			—	¹⁰		1.19			1.16			1.46			.29
10/31/15		9.95		.03		—	⁹		.03			(.03	)		9.95		.35			1			1.24			1.14			1.44			.33
10/31/14		9.91		.03		.03			.06			(.02	)		9.95		.64			2			1.26			1.15			1.45			.28
10/31/13		10.08		.04		(.17	)		(.13	)		(.04	)		9.91		(1.32	)		2			1.28			1.17			1.47			.38
10/31/12^6,7		10.00		.03		.07			.10			(.02	)		10.08		.97	⁸		2			.55	⁸		.51	⁸		.82	⁸		.28	⁸
Class C:
10/31/16		9.93		.03		.09			.12			(.04	)		10.01		1.18			175			1.15			1.14			1.44			.32
10/31/15		9.94		.04		(.01	)		.03			(.04	)		9.93		.28			130			1.23			1.13			1.43			.36
10/31/14		9.90		.03		.04			.07			(.03	)		9.94		.68			93			1.25			1.14			1.44			.27
10/31/13		10.07		.04		(.17	)		(.13	)		(.04	)		9.90		(1.29	)		67			1.27			1.15			1.45			.39
10/31/12^6,7		10.00		.03		.06			.09			(.02	)		10.07		.93	⁸		33			.55	⁸		.50	⁸		.81	⁸		.28	⁸
Class F-1:
10/31/16		9.95		.10		.09			.19			(.11	)		10.03		1.90			27			.42			.41			.71			1.04
10/31/15		9.96		.11		(.01	)		.10			(.11	)		9.95		1.00			20			.50			.40			.70			1.11
10/31/14		9.91		.10		.05			.15			(.10	)		9.96		1.51			9			.51			.41			.71			1.00
10/31/13		10.08		.11		(.17	)		(.06	)		(.11	)		9.91		(.61	)		6			.54			.42			.72			1.13
10/31/12^6,7		10.00		.06		.07			.13			(.05	)		10.08		1.33	⁸		7			.20	⁸		.15	⁸		.46	⁸		.63	⁸
Class F-2:
10/31/16		9.95		.13		.08			.21			(.13	)		10.03		2.18			49			.15			.14			.44			1.31
10/31/15		9.95		.13		—	⁹		.13			(.13	)		9.95		1.33			21			.25			.15			.45			1.34
10/31/14		9.91		.12		.04			.16			(.12	)		9.95		1.67			12			.25			.15			.45			1.25
10/31/13		10.08		.14		(.17	)		(.03	)		(.14	)		9.91		(.34	)		6			.28			.17			.47			1.37
10/31/12^6,7		10.00		.07		.07			.14			(.06	)		10.08		1.40	⁸		3			.10	⁸		.05	⁸		.36	⁸		.74	⁸
Class 529-A:
10/31/16		9.94		.10		.09			.19			(.10	)		10.03		1.97			77			.45			.43			.73			1.03
10/31/15		9.95		.10		(.01	)		.09			(.10	)		9.94		.93			56			.57			.47			.77			1.03
10/31/14		9.91		.09		.04			.13			(.09	)		9.95		1.36			44			.56			.45			.75			.96
10/31/13		10.08		.11		(.17	)		(.06	)		(.11	)		9.91		(.61	)		33			.56			.44			.74			1.09
10/31/12^6,7		10.00		.06		.06			.12			(.04	)		10.08		1.25	⁸		17			.26	⁸		.22	⁸		.53	⁸		.57	⁸
Class 529-B:
10/31/16		9.95		.02		.09			.11			(.02	)		10.04		1.08			—	¹⁰		1.27			1.25			1.55			.22
10/31/15		9.96		.03		(.01	)		.02			(.03	)		9.95		.17			—	¹⁰		1.33			1.23			1.53			.26
10/31/14		9.92		.02		.04			.06			(.02	)		9.96		.56			—	¹⁰		1.34			1.23			1.53			.20
10/31/13		10.08		.03		(.16	)		(.13	)		(.03	)		9.92		(1.33	)		—	¹⁰		1.38			1.26			1.56			.29
10/31/12^6,7		10.00		.02		.07			.09			(.01	)		10.08		.89	⁸		1			.59	⁸		.55	⁸		.86	⁸		.25	⁸
Class 529-C:
10/31/16		9.94		.02		.09			.11			(.03	)		10.02		1.10			34			1.23			1.22			1.52			.24
10/31/15		9.95		.03		(.01	)		.02			(.03	)		9.94		.19			25			1.32			1.22			1.52			.27
10/31/14		9.91		.02		.04			.06			(.02	)		9.95		.60			22			1.34			1.23			1.53			.18
10/31/13		10.08		.03		(.17	)		(.14	)		(.03	)		9.91		(1.38	)		17			1.37			1.25			1.55			.29
10/31/12^6,7		10.00		.02		.07			.09			(.01	)		10.08		.93	⁸		9			.60	⁸		.55	⁸		.86	⁸		.24	⁸
Class 529-E:
10/31/16		9.94		.08		.08			.16			(.08	)		10.02		1.64			3			.69			.68			.98			.78
10/31/15		9.95		.08		(.01	)		.07			(.08	)		9.94		.70			3			.79			.69			.99			.81
10/31/14		9.91		.07		.04			.11			(.07	)		9.95		1.12			2			.80			.70			1.00			.71
10/31/13		10.07		.08		(.16	)		(.08	)		(.08	)		9.91		(.78	)		2			.83			.71			1.01			.83
10/31/12^6,7		10.00		.05		.06			.11			(.04	)		10.07		1.13	⁸		1			.35	⁸		.31	⁸		.62	⁸		.47	⁸

See page 62 for footnotes.

American Funds Portfolio Series

Financial highlights (continued)

Preservation Portfolio

			Income (loss) from investment operations¹
Period ended	Net asset value, beginning of period		Net investment income		Net gains (losses) 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 millions)			Ratio of expenses to average net assets before waivers/ reimbursements⁴			Ratio of expenses to average net assets after waivers/ reimbursements^3,4			Net effective expense ratio^3,5			Ratio of net income to average net assets³
Class 529-F-1:
10/31/16	$	9.94	$	.12	$	.10		$	.22		$	(.13	)	$	10.03		2.19	%	$	14			.23	%		.22	%		.52	%		1.24	%
10/31/15		9.95		.13		(.01	)		.12			(.13	)		9.94		1.17			10			.32			.22			.52			1.28
10/31/14		9.91		.12		.04			.16			(.12	)		9.95		1.59			8			.33			.22			.52			1.18
10/31/13		10.08		.13		(.17	)		(.04	)		(.13	)		9.91		(.40	)		6			.35			.24			.54			1.28
10/31/12^6,7		10.00		.07		.07			.14			(.06	)		10.08		1.37	⁸		1			.14	⁸		.10	⁸		.41	⁸		.68	⁸
Class R-1:
10/31/16		9.94		.03		.09			.12			(.04	)		10.02		1.17			2			1.16			1.15			1.45			.31
10/31/15		9.95		.04		(.01	)		.03			(.04	)		9.94		.28			1			1.24			1.14			1.44			.37
10/31/14		9.91		.02		.05			.07			(.03	)		9.95		.66			1			1.26			1.15			1.45			.25
10/31/13		10.08		.04		(.17	)		(.13	)		(.04	)		9.91		(1.32	)		1			1.27			1.15			1.45			.39
10/31/12^6,7		10.00		.03		.10			.13			(.05	)		10.08		1.30	⁸		—	¹⁰		.45	⁸		.41	⁸		.72	⁸		.35	⁸
Class R-2:
10/31/16		9.93		.03		.08			.11			(.04	)		10.00		1.07			17			1.20			1.18			1.48			.27
10/31/15		9.94		.04		(.01	)		.03			(.04	)		9.93		.28			14			1.25			1.15			1.45			.36
10/31/14		9.90		.02		.04			.06			(.02	)		9.94		.62			8			1.33			1.22			1.52			.19
10/31/13		10.07		.04		(.17	)		(.13	)		(.04	)		9.90		(1.30	)		6			1.29			1.17			1.47			.36
10/31/12^6,7		10.00		.03		.08			.11			(.04	)		10.07		1.11	⁸		1			.47	⁸		.42	⁸		.73	⁸		.33	⁸
Class R-2E:
10/31/16		9.95		.07		.08			.15			(.08	)		10.02		1.53			3			.81			.81			1.11			.69
10/31/15		9.96		.12		(.01	)		.11			(.12	)		9.95		1.12	¹¹		—	¹⁰		.38	¹¹		.27	¹¹		.57	¹¹		1.22	¹¹
10/31/14^6,12		9.96		.02		—	⁹		.02			(.02	)		9.96		.16	^8,11		—	¹⁰		.06	^8,11		.04	^8,11		.34	^8,11		.17	^8,11
Class R-3:
10/31/16		9.94		.07		.09			.16			(.08	)		10.02		1.60			15			.73			.71			1.01			.74
10/31/15		9.95		.08		(.01	)		.07			(.08	)		9.94		.70			13			.80			.70			1.00			.80
10/31/14		9.91		.07		.04			.11			(.07	)		9.95		1.09			7			.84			.73			1.03			.67
10/31/13		10.08		.08		(.17	)		(.09	)		(.08	)		9.91		(.85	)		5			.83			.72			1.02			.80
10/31/12^6,7		10.00		.05		.07			.12			(.04	)		10.08		1.19	⁸		—	¹⁰		.33	⁸		.29	⁸		.60	⁸		.51	⁸
Class R-4:
10/31/16		9.95		.11		.08			.19			(.11	)		10.03		1.92			10			.41			.40			.70			1.06
10/31/15		9.96		.11		(.01	)		.10			(.11	)		9.95		1.01			6			.48			.38			.68			1.13
10/31/14		9.92		.10		.04			.14			(.10	)		9.96		1.43			3			.49			.39			.69			1.03
10/31/13		10.08		.12		(.17	)		(.05	)		(.11	)		9.92		(.45	)		1			.49			.38			.68			1.16
10/31/12^6,7		10.00		.06		.08			.14			(.06	)		10.08		1.36	⁸		—	¹⁰		.17	⁸		.13	⁸		.44	⁸		.63	⁸
Class R-5E:
10/31/16^6,13		9.91		.11		.13			.24			(.11	)		10.04		2.48	⁸		—	¹⁰		.28	¹⁴		.27	¹⁴		.57	¹⁴		1.19	¹⁴
Class R-5:
10/31/16		9.95		.14		.08			.22			(.14	)		10.03		2.21			1			.11			.10			.40			1.35
10/31/15		9.96		.14		(.01	)		.13			(.14	)		9.95		1.28			1			.20			.10			.40			1.40
10/31/14		9.91		.14		.04			.18			(.13	)		9.96		1.78			1			.22			.11			.41			1.35
10/31/13		10.08		.14		(.17	)		(.03	)		(.14	)		9.91		(.28	)		4			.22			.10			.40			1.44
10/31/12^6,7		10.00		.07		.07			.14			(.06	)		10.08		1.42	⁸		3			.08	⁸		.04	⁸		.35	⁸		.75	⁸
Class R-6:
10/31/16		9.95		.14		.08			.22			(.14	)		10.03		2.27			11			.06			.04			.34			1.41
10/31/15		9.96		.14		(.01	)		.13			(.14	)		9.95		1.34			7			.15			.05			.35			1.45
10/31/14		9.91		.13		.05			.18			(.13	)		9.96		1.76			6			.14			.04			.34			1.31
10/31/13		10.08		.15		(.18	)		(.03	)		(.14	)		9.91		(.16	)		—	¹⁰		.20			.08			.38			1.45
10/31/12^6,7		10.00		.07		.06			.13			(.05	)		10.08		1.34	⁸		—	¹⁰		.13	⁸		.08	⁸		.39	⁸		.72	⁸

60	American Funds Portfolio Series

Tax-Exempt Preservation Portfolio

			Income (loss) from investment operations¹
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 millions)			Ratio of expenses to average net assets before waivers/ reimbursements⁴			Ratio of expenses to average net assets after waivers/ reimbursements^3,4			Net effective expense ratio^3,5			Ratio of net income to average net assets³
Class A:
10/31/16	$	9.91	$	.22	$	(.01	)	$	.21		$	(.22	)	$	9.90		2.08	%	$	338			.47	%		.44	%		.74	%		2.21	%
10/31/15		9.99		.24		(.09	)		.15			(.23	)		9.91		1.55			223			.55			.44			.75			2.43
10/31/14		9.81		.26		.18			.44			(.26	)		9.99		4.50			159			.56			.44			.75			2.59
10/31/13		10.11		.25		(.30	)		(.05	)		(.25	)		9.81		(.48	)		123			.58			.45			.76			2.54
10/31/12^6,7		10.00		.12		.09			.21			(.10	)		10.11		2.10	⁸		72			.24	⁸		.19	⁸		.50	⁸		1.22	⁸
Class B:
10/31/16		9.92		.15		(.01	)		.14			(.13	)		9.93		1.45	¹¹		—	¹⁰		1.19	¹¹		1.15	¹¹		1.45	¹¹		1.54	¹¹
10/31/15		10.00		.17		(.09	)		.08			(.16	)		9.92		.81			—	¹⁰		1.26			1.15			1.46			1.72
10/31/14		9.82		.19		.17			.36			(.18	)		10.00		3.74			—	¹⁰		1.27			1.15			1.46			1.91
10/31/13		10.12		.18		(.30	)		(.12	)		(.18	)		9.82		(1.21	)		—	¹⁰		1.29			1.16			1.47			1.83
10/31/12^6,7		10.00		.09		.09			.18			(.06	)		10.12		1.84	⁸		—	¹⁰		.53	⁸		.49	⁸		.80	⁸		.92	⁸
Class C:
10/31/16		9.89		.15		—	⁹		.15			(.15	)		9.89		1.48			64			1.17			1.14			1.44			1.51
10/31/15		9.98		.17		(.09	)		.08			(.17	)		9.89		.76			51			1.25			1.14			1.45			1.73
10/31/14		9.80		.19		.18			.37			(.19	)		9.98		3.79			42			1.26			1.14			1.45			1.90
10/31/13		10.10		.18		(.30	)		(.12	)		(.18	)		9.80		(1.17	)		39			1.28			1.15			1.46			1.85
10/31/12^6,7		10.00		.09		.09			.18			(.08	)		10.10		1.77	⁸		22			.55	⁸		.51	⁸		.82	⁸		.89	⁸
Class F-1:
10/31/16		9.91		.22		(.01	)		.21			(.22	)		9.90		2.13			11			.43			.40			.70			2.23
10/31/15		9.99		.24		(.08	)		.16			(.24	)		9.91		1.58			5			.52			.41			.72			2.46
10/31/14		9.81		.26		.18			.44			(.26	)		9.99		4.54			4			.52			.40			.71			2.64
10/31/13		10.11		.26		(.31	)		(.05	)		(.25	)		9.81		(.49	)		5			.56			.42			.73			2.56
10/31/12^6,7		10.00		.12		.09			.21			(.10	)		10.11		2.13	⁸		9			.20	⁸		.16	⁸		.47	⁸		1.24	⁸
Class F-2:
10/31/16		9.91		.25		(.02	)		.23			(.24	)		9.90		2.37			34			.18			.15			.45			2.50
10/31/15		9.99		.27		(.09	)		.18			(.26	)		9.91		1.83			24			.27			.16			.47			2.71
10/31/14		9.81		.29		.18			.47			(.29	)		9.99		4.81			11			.26			.15			.46			2.89
10/31/13		10.11		.28		(.30	)		(.02	)		(.28	)		9.81		(.22	)		8			.30			.16			.47			2.82
10/31/12^6,7		10.00		.13		.09			.22			(.11	)		10.11		2.25	⁸		12			.10	⁸		.05	⁸		.36	⁸		1.34	⁸

See page 62 for footnotes.

American Funds Portfolio Series

Financial highlights (continued)

	Year ended October 31
Portfolio turnover rate for all share classes	2016			2015			2014			2013			2012^6,7,8,15
Global Growth Portfolio		2	%		2	%		—	%¹⁶		—	%¹⁶		40	%
Growth Portfolio		—	¹⁶		—	¹⁶		—	¹⁶		—	¹⁶		24
Growth and Income Portfolio		—	¹⁶		—	¹⁶		—	¹⁶		—	¹⁶		7
Balanced Portfolio		—	¹⁶		13			—	¹⁶		—	¹⁶		9
Income Portfolio		8			—	¹⁶		—	¹⁶		—	¹⁶		7
Tax-Advantaged Income Portfolio		^—	¹⁶		1			1			2	¹⁵		45
Preservation Portfolio		2			2			5			11	¹⁵		16
Tax-Exempt Preservation Portfolio		6			8			14			28	¹⁵		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 waivers/reimbursements from CRMC. During the periods shown, CRMC reduced fees for investment advisory services. During the periods shown, CRMC also reimbursed other fees and expenses for Preservation Portfolio and Tax-Exempt Preservation Portfolio.
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 Expense Example 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	Not annualized.
⁹	Amount less than $.01.
¹⁰	Amount less than $1 million.
¹¹	All or a significant portion of assets in this class consisted of seed capital invested by CRMC and/or its affiliates. Fees for distribution services are not charged or accrued on these seed capital assets. If such fees were paid by the fund on seed capital assets, fund expenses would have been higher and net income and total return would have been lower.
¹²	Class R-2E shares were offered beginning August 29, 2014.
¹³	Class R-5E shares were offered beginning November 20, 2015.
¹⁴	Annualized.
¹⁵	Portfolio turnover rates reflect the redemption (or removal) of CRMC’s initial capital investment, without which the portfolio turnover rates would have been lower.
¹⁶	Amount is either less than 1% or there is no turnover.

See Notes to Financial Statements

62	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, 2016, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, 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, 2016, by correspondence with the custodian and transfer agent; where replies were not received from the transfer agent, we performed other auditing procedures. 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, 2016, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, 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 12, 2016

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 designates the following amounts for the year ended October 31, 2016:

	Global						Growth and
	Growth			Growth			Income			Balanced
	Portfolio			Portfolio			Portfolio			Portfolio
Long-term capital gains	$	50,126,000		$	147,417,000		$	138,835,000		$	98,910,000
Foreign taxes (per share)	$	0.010		$	0.004		$	0.002		$	0.005
Foreign source income (per share)	$	0.13		$	0.05		$	0.08		$	0.07
Qualified dividend income		100	%		100	%		100	%		100	%
Corporate dividends received deduction	$	13,534,000		$	17,039,000		$	67,358,000		$	50,137,000
U.S. government income that may be exempt from state taxation	$	39,000		$	51,000		$	6,110,000		$	5,904,000

			Tax-Advantaged					Tax-Exempt
	Income		Income			Preservation		Preservation
	Portfolio		Portfolio			Portfolio		Portfolio
Long-term capital gains	$	18,144,000	$	6,946,000		$	280,000		—
Foreign taxes (per share)		—	$	0.002			—		—
Foreign source income (per share)		—	$	0.05			—		—
Qualified dividend income	$	77,043,000		100	%*	$	31,000		—
Corporate dividends received deduction	$	53,007,000	$	9,061,000		$	21,000		—
Exempt interest dividends		—	$	14,746,000			—		100	%
U.S. government income that may be exempt from state taxation	$	7,937,000	$	19,000		$	3,923,000		—

*	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 2017, to determine the calendar year amounts to be included on their 2016 tax returns. Shareholders should consult their tax advisors.

64	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 and contingent deferred sales charges on redemptions (loads), and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The 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, 2016, through October 31, 2016).

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 titled “Expenses paid during period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes:

The second line of each share class in the 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 fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.

Notes:

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

Note that the expenses shown in the 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.

American Funds Portfolio Series

Global Growth Portfolio

	Beginning		Ending		Expenses					Effective		Effective
	account value		account value		paid during		Annualized			expenses paid		annualized
	5/1/2016		10/31/2016		period^1,2		expense ratio²			during period³		expense ratio⁴
Class A – actual return	$	1,000.00	$	1,039.27	$	1.59		.31	%	$	4.11		.80	%
Class A – assumed 5% return		1,000.00		1,023.64		1.58		.31			4.08		.80
Class B – actual return		1,000.00		1,035.08		5.80		1.13			8.31		1.62
Class B – assumed 5% return		1,000.00		1,019.51		5.75		1.13			8.24		1.62
Class C – actual return		1,000.00		1,035.37		5.69		1.11			8.21		1.60
Class C – assumed 5% return		1,000.00		1,019.61		5.65		1.11			8.13		1.60
Class F-1 – actual return		1,000.00		1,039.24		1.95		.38			4.47		.87
Class F-1 – assumed 5% return		1,000.00		1,023.29		1.94		.38			4.43		.87
Class F-2 – actual return		1,000.00		1,039.88		.62		.12			3.14		.61
Class F-2 – assumed 5% return		1,000.00		1,024.60		.61		.12			3.11		.61
Class 529-A – actual return		1,000.00		1,039.33		1.90		.37			4.42		.86
Class 529-A – assumed 5% return		1,000.00		1,023.34		1.89		.37			4.38		.86
Class 529-B – actual return		1,000.00		1,035.16		6.10		1.19			8.62		1.68
Class 529-B – assumed 5% return		1,000.00		1,019.21		6.06		1.19			8.54		1.68
Class 529-C – actual return		1,000.00		1,034.66		6.10		1.19			8.62		1.68
Class 529-C – assumed 5% return		1,000.00		1,019.21		6.06		1.19			8.54		1.68
Class 529-E – actual return		1,000.00		1,037.27		3.29		.64			5.80		1.13
Class 529-E – assumed 5% return		1,000.00		1,021.98		3.26		.64			5.75		1.13
Class 529-F-1 – actual return		1,000.00		1,039.95		.98		.19			3.50		.68
Class 529-F-1 – assumed 5% return		1,000.00		1,024.25		.97		.19			3.47		.68
Class R-1 – actual return		1,000.00		1,035.29		5.75		1.12			8.26		1.61
Class R-1 – assumed 5% return		1,000.00		1,019.56		5.70		1.12			8.19		1.61
Class R-2 – actual return		1,000.00		1,035.43		5.69		1.11			8.21		1.60
Class R-2 – assumed 5% return		1,000.00		1,019.61		5.65		1.11			8.13		1.60
Class R-2E – actual return		1,000.00		1,039.33		4.11		.80			6.63		1.29
Class R-2E – assumed 5% return		1,000.00		1,021.17		4.08		.80			6.56		1.29
Class R-3 – actual return		1,000.00		1,038.04		3.54		.69			6.06		1.18
Class R-3 – assumed 5% return		1,000.00		1,021.73		3.52		.69			6.01		1.18
Class R-4 – actual return		1,000.00		1,039.33		2.00		.39			4.52		.88
Class R-4 – assumed 5% return		1,000.00		1,023.24		1.99		.39			4.48		.88
Class R-5E – actual return		1,000.00		1,040.11		1.29		.25			3.81		.74
Class R-5E – assumed 5% return		1,000.00		1,023.95		1.28		.25			3.77		.74
Class R-5 – actual return		1,000.00		1,040.46		.41		.08			2.93		.57
Class R-5 – assumed 5% return		1,000.00		1,024.80		.41		.08			2.91		.57
Class R-6 – actual return		1,000.00		1,041.12		.10		.02			2.62		.51
Class R-6 – assumed 5% return		1,000.00		1,025.10		.10		.02			2.60		.51

66	American Funds Portfolio Series

Growth Portfolio

	Beginning		Ending		Expenses					Effective		Effective
	account value		account value		paid during		Annualized			expenses paid		annualized
	5/1/2016		10/31/2016		period^1,2		expense ratio²			during period³		expense ratio⁴
Class A – actual return	$	1,000.00	$	1,041.78	$	1.54		.30	%	$	3.81		.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		1,037.34		5.75		1.12			8.01		1.56
Class B – assumed 5% return		1,000.00		1,019.56		5.70		1.12			7.93		1.56
Class C – actual return		1,000.00		1,037.49		5.65		1.10			7.91		1.54
Class C – assumed 5% return		1,000.00		1,019.66		5.60		1.10			7.83		1.54
Class F-1 – actual return		1,000.00		1,041.81		1.96		.38			4.22		.82
Class F-1 – assumed 5% return		1,000.00		1,023.29		1.94		.38			4.18		.82
Class F-2 – actual return		1,000.00		1,042.31		.62		.12			2.88		.56
Class F-2 – assumed 5% return		1,000.00		1,024.60		.61		.12			2.85		.56
Class 529-A – actual return		1,000.00		1,041.12		1.90		.37			4.17		.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		1,036.73		6.11		1.19			8.37		1.63
Class 529-B – assumed 5% return		1,000.00		1,019.21		6.06		1.19			8.29		1.63
Class 529-C – actual return		1,000.00		1,037.49		6.06		1.18			8.32		1.62
Class 529-C – assumed 5% return		1,000.00		1,019.26		6.01		1.18			8.24		1.62
Class 529-E – actual return		1,000.00		1,039.97		3.29		.64			5.55		1.08
Class 529-E – assumed 5% return		1,000.00		1,021.98		3.26		.64			5.50		1.08
Class 529-F-1 – actual return		1,000.00		1,042.38		.93		.18			3.19		.62
Class 529-F-1 – assumed 5% return		1,000.00		1,024.30		.92		.18			3.16		.62
Class R-1 – actual return		1,000.00		1,038.06		5.75		1.12			8.01		1.56
Class R-1 – assumed 5% return		1,000.00		1,019.56		5.70		1.12			7.93		1.56
Class R-2 – actual return		1,000.00		1,038.19		5.70		1.11			7.96		1.55
Class R-2 – assumed 5% return		1,000.00		1,019.61		5.65		1.11			7.88		1.55
Class R-2E – actual return		1,000.00		1,039.28		4.37		.85			6.63		1.29
Class R-2E – assumed 5% return		1,000.00		1,020.92		4.33		.85			6.56		1.29
Class R-3 – actual return		1,000.00		1,039.92		3.50		.68			5.76		1.12
Class R-3 – assumed 5% return		1,000.00		1,021.78		3.47		.68			5.70		1.12
Class R-4 – actual return		1,000.00		1,041.15		1.96		.38			4.22		.82
Class R-4 – assumed 5% return		1,000.00		1,023.29		1.94		.38			4.18		.82
Class R-5E – actual return		1,000.00		1,041.86		1.29		.25			3.55		.69
Class R-5E – assumed 5% return		1,000.00		1,023.95		1.28		.25			3.52		.69
Class R-5 – actual return		1,000.00		1,042.85		.41		.08			2.68		.52
Class R-5 – assumed 5% return		1,000.00		1,024.80		.41		.08			2.65		.52
Class R-6 – actual return		1,000.00		1,042.94		.10		.02			2.37		.46
Class R-6 – assumed 5% return		1,000.00		1,025.10		.10		.02			2.35		.46

See page 73 for footnotes.

American Funds Portfolio Series

Growth and Income Portfolio

	Beginning		Ending		Expenses					Effective		Effective
	account value		account value		paid during		Annualized			expenses paid		annualized
	5/1/2016		10/31/2016		period^1,2		expense ratio²			during period³		expense ratio⁴
Class A – actual return	$	1,000.00	$	1,026.93	$	1.63		.32	%	$	3.53		.69	%
Class A – assumed 5% return		1,000.00		1,023.59		1.63		.32			3.52		.69
Class B – actual return		1,000.00		1,022.40		5.71		1.12			7.60		1.49
Class B – assumed 5% return		1,000.00		1,019.56		5.70		1.12			7.58		1.49
Class C – actual return		1,000.00		1,022.49		5.61		1.10			7.49		1.47
Class C – assumed 5% return		1,000.00		1,019.66		5.60		1.10			7.48		1.47
Class F-1 – actual return		1,000.00		1,025.95		1.94		.38			3.83		.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		1,027.18		.61		.12			2.50		.49
Class F-2 – assumed 5% return		1,000.00		1,024.60		.61		.12			2.50		.49
Class 529-A – actual return		1,000.00		1,025.68		2.14		.42			4.03		.79
Class 529-A – assumed 5% return		1,000.00		1,023.09		2.14		.42			4.02		.79
Class 529-B – actual return		1,000.00		1,021.88		6.06		1.19			7.95		1.56
Class 529-B – assumed 5% return		1,000.00		1,019.21		6.06		1.19			7.93		1.56
Class 529-C – actual return		1,000.00		1,022.00		6.01		1.18			7.90		1.55
Class 529-C – assumed 5% return		1,000.00		1,019.26		6.01		1.18			7.88		1.55
Class 529-E – actual return		1,000.00		1,025.41		3.27		.64			5.16		1.01
Class 529-E – assumed 5% return		1,000.00		1,021.98		3.26		.64			5.14		1.01
Class 529-F-1 – actual return		1,000.00		1,026.80		.92		.18			2.81		.55
Class 529-F-1 – assumed 5% return		1,000.00		1,024.30		.92		.18			2.80		.55
Class R-1 – actual return		1,000.00		1,022.01		5.71		1.12			7.59		1.49
Class R-1 – assumed 5% return		1,000.00		1,019.56		5.70		1.12			7.58		1.49
Class R-2 – actual return		1,000.00		1,022.63		5.66		1.11			7.55		1.48
Class R-2 – assumed 5% return		1,000.00		1,019.61		5.65		1.11			7.53		1.48
Class R-2E – actual return		1,000.00		1,023.78		4.34		.85			6.22		1.22
Class R-2E – assumed 5% return		1,000.00		1,020.92		4.33		.85			6.21		1.22
Class R-3 – actual return		1,000.00		1,024.66		3.47		.68			5.36		1.05
Class R-3 – assumed 5% return		1,000.00		1,021.78		3.47		.68			5.35		1.05
Class R-4 – actual return		1,000.00		1,026.03		1.94		.38			3.83		.75
Class R-4 – assumed 5% return		1,000.00		1,023.29		1.94		.38			3.82		.75
Class R-5E – actual return		1,000.00		1,026.61		1.28		.25			3.17		.62
Class R-5E – assumed 5% return		1,000.00		1,023.95		1.28		.25			3.16		.62
Class R-5 – actual return		1,000.00		1,028.14		.36		.07			2.25		.44
Class R-5 – assumed 5% return		1,000.00		1,024.85		.36		.07			2.24		.44
Class R-6 – actual return		1,000.00		1,028.43		.10		.02			1.99		.39
Class R-6 – assumed 5% return		1,000.00		1,025.10		.10		.02			1.99		.39

68	American Funds Portfolio Series

Balanced Portfolio

	Beginning		Ending		Expenses					Effective		Effective
	account value		account value		paid during		Annualized			expenses paid		annualized
	5/1/2016		10/31/2016		period^1,2		expense ratio²			during period³		expense ratio⁴
Class A – actual return	$	1,000.00	$	1,023.85	$	1.68		.33	%	$	3.62		.71	%
Class A – assumed 5% return		1,000.00		1,023.54		1.68		.33			3.62		.71
Class B – actual return		1,000.00		1,019.58		5.70		1.12			7.64		1.50
Class B – assumed 5% return		1,000.00		1,019.56		5.70		1.12			7.63		1.50
Class C – actual return		1,000.00		1,019.52		5.60		1.10			7.53		1.48
Class C – assumed 5% return		1,000.00		1,019.66		5.60		1.10			7.53		1.48
Class F-1 – actual return		1,000.00		1,023.74		1.94		.38			3.88		.76
Class F-1 – assumed 5% return		1,000.00		1,023.29		1.94		.38			3.87		.76
Class F-2 – actual return		1,000.00		1,024.95		.61		.12			2.55		.50
Class F-2 – assumed 5% return		1,000.00		1,024.60		.61		.12			2.55		.50
Class 529-A – actual return		1,000.00		1,023.52		2.09		.41			4.03		.79
Class 529-A – assumed 5% return		1,000.00		1,023.14		2.09		.41			4.02		.79
Class 529-B – actual return		1,000.00		1,019.22		6.11		1.20			8.04		1.58
Class 529-B – assumed 5% return		1,000.00		1,019.16		6.11		1.20			8.03		1.58
Class 529-C – actual return		1,000.00		1,019.75		6.01		1.18			7.94		1.56
Class 529-C – assumed 5% return		1,000.00		1,019.26		6.01		1.18			7.93		1.56
Class 529-E – actual return		1,000.00		1,022.41		3.26		.64			5.20		1.02
Class 529-E – assumed 5% return		1,000.00		1,021.98		3.26		.64			5.19		1.02
Class 529-F-1 – actual return		1,000.00		1,024.60		.92		.18			2.86		.56
Class 529-F-1 – assumed 5% return		1,000.00		1,024.30		.92		.18			2.85		.56
Class R-1 – actual return		1,000.00		1,019.98		5.70		1.12			7.64		1.50
Class R-1 – assumed 5% return		1,000.00		1,019.56		5.70		1.12			7.63		1.50
Class R-2 – actual return		1,000.00		1,019.53		5.65		1.11			7.58		1.49
Class R-2 – assumed 5% return		1,000.00		1,019.61		5.65		1.11			7.58		1.49
Class R-2E – actual return		1,000.00		1,021.55		4.33		.85			6.27		1.23
Class R-2E – assumed 5% return		1,000.00		1,020.92		4.33		.85			6.26		1.23
Class R-3 – actual return		1,000.00		1,022.37		3.47		.68			5.40		1.06
Class R-3 – assumed 5% return		1,000.00		1,021.78		3.47		.68			5.40		1.06
Class R-4 – actual return		1,000.00		1,023.68		1.94		.38			3.88		.76
Class R-4 – assumed 5% return		1,000.00		1,023.29		1.94		.38			3.87		.76
Class R-5E – actual return		1,000.00		1,024.37		1.28		.25			3.21		.63
Class R-5E – assumed 5% return		1,000.00		1,023.95		1.28		.25			3.21		.63
Class R-5 – actual return		1,000.00		1,025.91		.36		.07			2.30		.45
Class R-5 – assumed 5% return		1,000.00		1,024.85		.36		.07			2.29		.45
Class R-6 – actual return		1,000.00		1,025.42		.10		.02			2.04		.40
Class R-6 – assumed 5% return		1,000.00		1,025.10		.10		.02			2.04		.40

See page 73 for footnotes.

American Funds Portfolio Series

Income Portfolio

	Beginning		Ending		Expenses					Effective		Effective
	account value		account value		paid during		Annualized			expenses paid		annualized
	5/1/2016		10/31/2016		period^1,2		expense ratio²			during period³		expense ratio⁴
Class A – actual return	$	1,000.00	$	1,027.47	$	1.69		.33	%	$	3.22		.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		1,023.41		5.76		1.13			7.29		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		1,023.73		5.66		1.11			7.19		1.41
Class C – assumed 5% return		1,000.00		1,019.61		5.65		1.11			7.17		1.41
Class F-1 – actual return		1,000.00		1,027.17		1.94		.38			3.47		.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		1,028.51		.56		.11			2.10		.41
Class F-2 – assumed 5% return		1,000.00		1,024.65		.56		.11			2.09		.41
Class 529-A – actual return		1,000.00		1,026.18		2.09		.41			3.63		.71
Class 529-A – assumed 5% return		1,000.00		1,023.14		2.09		.41			3.62		.71
Class 529-B – actual return		1,000.00		1,023.30		5.92		1.16			7.45		1.46
Class 529-B – assumed 5% return		1,000.00		1,019.36		5.90		1.16			7.43		1.46
Class 529-C – actual return		1,000.00		1,022.41		5.96		1.17			7.49		1.47
Class 529-C – assumed 5% return		1,000.00		1,019.31		5.96		1.17			7.48		1.47
Class 529-E – actual return		1,000.00		1,025.80		3.27		.64			4.80		.94
Class 529-E – assumed 5% return		1,000.00		1,021.98		3.26		.64			4.79		.94
Class 529-F-1 – actual return		1,000.00		1,027.26		.92		.18			2.45		.48
Class 529-F-1 – assumed 5% return		1,000.00		1,024.30		.92		.18			2.45		.48
Class R-1 – actual return		1,000.00		1,023.56		5.71		1.12			7.24		1.42
Class R-1 – assumed 5% return		1,000.00		1,019.56		5.70		1.12			7.22		1.42
Class R-2 – actual return		1,000.00		1,022.84		5.71		1.12			7.24		1.42
Class R-2 – assumed 5% return		1,000.00		1,019.56		5.70		1.12			7.22		1.42
Class R-2E – actual return		1,000.00		1,026.74		3.78		.74			5.31		1.04
Class R-2E – assumed 5% return		1,000.00		1,021.48		3.77		.74			5.30		1.04
Class R-3 – actual return		1,000.00		1,025.88		3.47		.68			5.00		.98
Class R-3 – assumed 5% return		1,000.00		1,021.78		3.47		.68			4.99		.98
Class R-4 – actual return		1,000.00		1,027.20		1.99		.39			3.53		.69
Class R-4 – assumed 5% return		1,000.00		1,023.24		1.99		.39			3.52		.69
Class R-5E – actual return		1,000.00		1,027.36		1.33		.26			2.86		.56
Class R-5E – assumed 5% return		1,000.00		1,023.89		1.33		.26			2.85		.56
Class R-5 – actual return		1,000.00		1,028.65		.41		.08			1.94		.38
Class R-5 – assumed 5% return		1,000.00		1,024.80		.41		.08			1.94		.38
Class R-6 – actual return		1,000.00		1,028.95		.10		.02			1.64		.32
Class R-6 – assumed 5% return		1,000.00		1,025.10		.10		.02			1.63		.32

70	American Funds Portfolio Series

Tax-Advantaged Income Portfolio

	Beginning		Ending		Expenses					Effective		Effective
	account value		account value		paid during		Annualized			expenses paid		annualized
	5/1/2016		10/31/2016		period^1,2		expense ratio²			during period³		expense ratio⁴
Class A – actual return	$	1,000.00	$	1,022.49	$	2.04		.40	%	$	3.87		.76	%
Class A – assumed 5% return		1,000.00		1,023.19		2.04		.40			3.87		.76
Class B – actual return		1,000.00		1,018.39		5.24		1.03			7.07		1.39
Class B – assumed 5% return		1,000.00		1,020.01		5.24		1.03			7.07		1.39
Class C – actual return		1,000.00		1,017.68		5.65		1.11			7.48		1.47
Class C – assumed 5% return		1,000.00		1,019.61		5.65		1.11			7.48		1.47
Class F-1 – actual return		1,000.00		1,021.78		1.99		.39			3.82		.75
Class F-1 – assumed 5% return		1,000.00		1,023.24		1.99		.39			3.82		.75
Class F-2 – actual return		1,000.00		1,023.05		.66		.13			2.50		.49
Class F-2 – assumed 5% return		1,000.00		1,024.55		.66		.13			2.50		.49

See page 73 for footnotes.

American Funds Portfolio Series

Preservation Portfolio

	Beginning		Ending		Expenses					Effective		Effective
	account value		account value		paid during		Annualized			expenses paid		annualized
	5/1/2016		10/31/2016		period^1,2		expense ratio²			during period³		expense ratio⁴
Class A – actual return	$	1,000.00	$	1,006.66	$	1.87		.37	%	$	3.39		.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		1,002.94		5.76		1.14			7.27		1.44
Class B – assumed 5% return		1,000.00		1,019.46		5.80		1.14			7.32		1.44
Class C – actual return		1,000.00		1,002.88		5.60		1.11			7.12		1.41
Class C – assumed 5% return		1,000.00		1,019.61		5.65		1.11			7.17		1.41
Class F-1 – actual return		1,000.00		1,006.58		1.97		.39			3.49		.69
Class F-1 – assumed 5% return		1,000.00		1,023.24		1.99		.39			3.52		.69
Class F-2 – actual return		1,000.00		1,007.95		.66		.13			2.18		.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		1,006.49		2.07		.41			3.59		.71
Class 529-A – assumed 5% return		1,000.00		1,023.14		2.09		.41			3.62		.71
Class 529-B – actual return		1,000.00		1,002.77		6.11		1.21			7.62		1.51
Class 529-B – assumed 5% return		1,000.00		1,019.11		6.16		1.21			7.68		1.51
Class 529-C – actual return		1,000.00		1,002.61		6.01		1.19			7.52		1.49
Class 529-C – assumed 5% return		1,000.00		1,019.21		6.06		1.19			7.58		1.49
Class 529-E – actual return		1,000.00		1,005.24		3.29		.65			4.80		.95
Class 529-E – assumed 5% return		1,000.00		1,021.93		3.31		.65			4.84		.95
Class 529-F-1 – actual return		1,000.00		1,007.58		.96		.19			2.48		.49
Class 529-F-1 – assumed 5% return		1,000.00		1,024.25		.97		.19			2.50		.49
Class R-1 – actual return		1,000.00		1,002.70		5.70		1.13			7.22		1.43
Class R-1 – assumed 5% return		1,000.00		1,019.51		5.75		1.13			7.27		1.43
Class R-2 – actual return		1,000.00		1,002.10		5.85		1.16			7.37		1.46
Class R-2 – assumed 5% return		1,000.00		1,019.36		5.90		1.16			7.43		1.46
Class R-2E – actual return		1,000.00		1,003.89		4.14		.82			5.66		1.12
Class R-2E – assumed 5% return		1,000.00		1,021.07		4.18		.82			5.70		1.12
Class R-3 – actual return		1,000.00		1,004.98		3.54		.70			5.05		1.00
Class R-3 – assumed 5% return		1,000.00		1,021.68		3.57		.70			5.09		1.00
Class R-4 – actual return		1,000.00		1,006.60		1.97		.39			3.49		.69
Class R-4 – assumed 5% return		1,000.00		1,023.24		1.99		.39			3.52		.69
Class R-5E – actual return		1,000.00		1,007.15		1.32		.26			2.83		.56
Class R-5E – assumed 5% return		1,000.00		1,023.89		1.33		.26			2.85		.56
Class R-5 – actual return		1,000.00		1,008.13		.46		.09			1.97		.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		1,008.44		.15		.03			1.67		.33
Class R-6 – assumed 5% return		1,000.00		1,025.05		.15		.03			1.68		.33

72	American Funds Portfolio Series

Tax-Exempt Preservation Portfolio

	Beginning		Ending		Expenses					Effective		Effective
	account value		account value		paid during		Annualized			expenses paid		annualized
	5/1/2016		10/31/2016		period^1,2		expense ratio²			during period³		expense ratio⁴
Class A – actual return	$	1,000.00	$	1,002.63	$	2.12		.42	%	$	3.63		.72	%
Class A – assumed 5% return		1,000.00		1,023.09		2.14		.42			3.67		.72
Class B – actual return		1,000.00		999.12		5.59		1.11			7.10		1.41
Class B – assumed 5% return		1,000.00		1,019.61		5.65		1.11			7.17		1.41
Class C – actual return		1,000.00		999.08		5.64		1.12			7.16		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		1,001.83		2.02		.40			3.53		.70
Class F-1 – assumed 5% return		1,000.00		1,023.19		2.04		.40			3.57		.70
Class F-2 – actual return		1,000.00		1,004.00		.71		.14			2.22		.44
Class F-2 – assumed 5% return		1,000.00		1,024.50		.71		.14			2.24		.44

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.

American Funds Portfolio Series

Board of trustees and other officers

Independent trustees¹

Name and year of birth	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, 1945	2012	CEO and President, Richard Nixon Foundation; Chairman of the Board and CEO, Oakwood Enterprises (private investment and consulting)	81	General Finance Corporation
James G. Ellis, 1947	2012	Dean and Professor of Marketing, Marshall School of Business, University of Southern California	81	Mercury General Corporation
Leonard R. Fuller, 1946	2012	Private investor; former President and CEO, Fuller Consulting (financial management consulting)	81	None
R. Clark Hooper, 1946 (Chairman of the Board Independent and Non-Executive)	2012	Private investor	81	None
Merit E. Janow, 1958	2012	Dean and Professor, Columbia University, School of International and Public Affairs	80	MasterCard Incorporated; Trimble Navigation Limited
Laurel B. Mitchell, PhD, 1955	2012	Distinguished Professor of Accounting, University of Redlands; former Director, Accounting Program, University of Redlands	77	None
Frank M. Sanchez, 1943	2012	Principal, The Sanchez Family Corporation dba McDonald’s Restaurants (McDonald’s licensee)	77	None
Margaret Spellings, 1957	2012	President, The University of North Carolina; former 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	82	ClubCorp Holdings, Inc.
Steadman Upham, PhD, 1949	2012	President Emeritus and University Professor, The University of Tulsa	80	None

Interested trustee^4,5

Name, year of birth 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, 1965 Vice Chairman of the Board		2012		Chairman, Capital Research Company;⁶ Partner — Capital Research Global Investors, Capital Research and Management Company; Director, The Capital Group Companies, Inc.⁶		18		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, CA 90071, Attention: Secretary.

74	American Funds Portfolio Series

Other officers⁵

Name, year of birth 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, 1966 President	2012	Senior Vice President and Senior Counsel — Fund Business Management Group, Capital Research and Management Company; Director, Capital Research Company⁶
Alan N. Berro, 1960 Senior Vice President	2012	Partner — Capital World Investors, Capital Research and Management Company; Director, Capital Research and Management Company
Joanna F. Jonsson, 1963 Senior Vice President	2014	Partner — Capital World Investors, Capital Research and Management Company; Director, Capital Research and Management Company; Partner — Capital World Investors, Capital Bank and Trust Company⁶
James B. Lovelace, 1956 Senior Vice President	2012	Partner — Capital Research Global Investors, Capital Research and Management Company; Director, Capital Research and Management Company
Wesley K.-S. Phoa, 1966 Senior Vice President	2012	Partner — Capital Fixed Income Investors, Capital Research and Management Company; Partner — Capital Fixed Income Investors, Capital Bank and Trust Company;⁶ Vice President, Capital Strategy Research, Inc.⁶
John H. Smet, 1956 Senior Vice President	2012	Partner — Capital Fixed Income Investors, Capital Research and Management Company; Director, Capital Research and Management Company
Andrew B. Suzman, 1967 Senior Vice President	2012	Partner — Capital World Investors, Capital Research and Management Company; Director, Capital Strategy Research, Inc.;⁶Director, The Capital Group Companies, Inc.⁶
Maria T. Manotok, 1974 Vice President	2012	Senior Vice President and Senior Counsel — Fund Business Management Group, Capital Research and Management Company; Director, Capital Guardian Trust Company⁶
Steven I. Koszalka, 1964 Secretary	2012	Vice President — Fund Business Management Group, Capital Research and Management Company
Gregory F. Niland, 1971 Treasurer	2012	Vice President — Investment Operations, Capital Research and Management Company
Susan K. Countess, 1966 Assistant Secretary	2014	Associate — Fund Business Management Group, Capital Research and Management Company
Brian C. Janssen, 1972 Assistant Treasurer	2015	Vice President — Investment Operations, Capital Research and Management Company
Dori Laskin, 1951 Assistant Treasurer	2012	Vice President — Investment Operations, 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/trusteeships (other than those in the American Funds or other funds managed by Capital Research and Management Company or its affiliates) that are held by each trustee as a trustee or director of a public company or a registered investment company.
⁴	The term interested trustee refers to a trustee who is an “interested person” 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 directors/trustees and/or 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.


American Funds Portfolio Series	75

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

Morgan, Lewis & Bockius LLP
300 South Grand Avenue, 22nd Floor
Los Angeles, CA 90071-3132

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

76	American Funds Portfolio Series

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

Visit the American Funds website for more information on the securities held by the underlying funds in the American Funds Portfolio Series’ portfolios.

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, 2016, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.

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

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The Standard and Poor’s 500 Composite Index (“Index”) is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Capital Group. Copyright© 2016 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC.

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 27 years of investment experience, including 22 years at our company, reflecting a career commitment to our long-term approach.¹

The Capital System^SM

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

Superior long-term track record

Our equity funds have beaten their Lipper peer indexes in 91% of 10-year periods and 95% of 20-year periods. Our fixed income funds have beaten their Lipper indexes in 58% of 10-year periods and 58% of 20-year periods.²Our fund management fees have been among the lowest in the industry.³

¹	Portfolio manager experience as of December 31, 2015.
²	Based on Class A share results for rolling periods through December 31, 2015. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date (except Capital Income Builder and SMALLCAP World Fund, for which the Lipper average was used).
³	On average, our management fees were in the lowest quintile 68% of the time, based on the 20-year period ended December 31, 2015, versus comparable Lipper categories, excluding funds of funds.

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:

2015 $62,000

2016 $81,000

b) Audit-Related Fees:

2015 $5,000

2016 $6,000

c) Tax Fees:

2015 $16,000

2016 $29,000

The tax fees consist of professional services relating to the preparation of the Registrant’s tax returns.

d) All Other Fees:

2015 None

2016 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:

2015 $1,143,000

2016 $1,138,000

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:

2015 None

2016 None

The tax fees consist of consulting services relating to the Registrant’s investments.

d) All Other Fees:

2015 $5,000

2016 $3,000

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 $1,445,000 for fiscal year 2015 and $1,228,000 for fiscal year 2016. 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 27, 2016

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 27, 2016

By _/s/ Gregory F. Niland____________________

Gregory F. Niland, Treasurer and

Principal Financial Officer

Date: December 27, 2016