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, 2017

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

	American Funds Portfolio Series^SM

	Annual report
	for the year ended
	October 31, 2017

Invest in portfolios
designed to pursue
real-life objectives.

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

American Funds, from Capital Group, is one of the nation’s largest mutual fund families. For more than 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. 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, 2017 (the most recent calendar quarter-end). Also shown are the gross expense ratios as of the series prospectus dated January 1, 2018 (unaudited):

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

Reflecting 5.75% maximum initial sales charge:
American Funds Global Growth Portfolio^SM		13.23	%		9.98	%		11.57	%		0.81	%
American Funds Growth Portfolio^SM		11.64			11.44			12.79			0.75
American Funds Growth and Income Portfolio^SM		6.86			8.60			9.95			0.69
American Funds Balanced Portfolio^SM		5.63			7.75			8.90			0.75
American Funds Income Portfolio^SM		3.31			5.94			6.80			0.69

Reflecting 3.75% maximum initial sales charge:
American Funds Tax-Advantaged Income Portfolio^SM		5.57			7.20			8.14			0.75

Reflecting 2.50% maximum initial sales charge:
American Funds Preservation Portfolio^SM		–2.46			0.29			0.50			0.72
American Funds Tax-Exempt Preservation Portfolio^SM		–2.31			1.20			1.46			0.78	*

*	The net expense ratio for American Funds Tax-Exempt Preservation Portfolio was 0.76% as of the series prospectus dated January 1, 2018.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses.

The portfolio series funds invest in Class R-6 shares of the underlying funds. The investment adviser is currently reimbursing a portion of other expenses for American Funds Tax-Exempt Preservation Portfolio, and has in the past reimbursed certain expenses for other funds. Fund results and the net expense ratio reflect the reimbursements, without which the results would have been lower and the expenses would have been higher. After January 1, 2019, the adviser may modify or terminate the reimbursements. 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.

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

Contents

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

Fellow investors:

It is our pleasure to present the annual report for the American Funds Portfolio Series, for the 12-month period ended October 31, 2017.

Amid advancing stock and bond markets, all of the portfolios returned positive results over the fiscal year. Growth-focused equity funds of funds led, with returns for the period at 26.05% (American Funds Global Growth Portfolio) and 24.39% (American Funds Growth Portfolio). More conservative, fixed income portfolios trailed with returns of 0.81% to 0.08% (American Funds Tax-Exempt Preservation Portfolio and American Funds Preservation Portfolio, respectively).

As always, we encourage investors to keep short-term results in their proper perspective.

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. In creating the series, the Committee carefully selects a mix of individual American Funds, employing an objective-based process and rigorous analysis. The Committee regularly monitors each fund in the series.

The economy

The global economy remained on solid footing during the series’ fiscal year. In fact, the vast majority of countries experienced economic growth. This unusual occurrence was not attributable to policy developments in any one country, but rather a number of disparate factors.

The U.S. economy has strengthened consistently since 2009, with only a handful of modest declines in the overall pattern. The rate of growth has been moderate, but with the economy near full employment and inflation low, the picture remains positive despite political uncertainties.

While European markets lagged during much of the post-2009 period, they have improved considerably in the past fiscal year, with some nations outpacing the U.S. Meanwhile, concerns about China have abated since the government instituted policy measures designed to stimulate the country’s economy.

Thus, with the U.S., Europe and China all on a growth trajectory, the rest of the world has largely followed.

The stock market

Since last November the U.S. has enjoyed a strong bull market, which has shown little sign of tempering as of this writing. This is consistent with sound corporate balance sheets and earnings, as well as the state of the economy and the low level of market volatility.

That said, U.S. equities exhibit higher valuations than may be warranted by fundamentals. We believe this is due in large part to anticipation of further government policy changes, particularly with regard to corporate taxes and deregulation.

Overseas, equities have generally fared well despite a number of geopolitical uncertainties. The implications of Brexit for the United Kingdom and European Union, continued instability in the Middle East, and tensions between the U.S. and North Korea have not had a major impact on most markets.

The bond market

Since January, the fixed income market has seen a surge in prices, making bonds more expensive and keeping yields

American Funds Portfolio Series

relatively low. The sell-off that took place in the wake of the U.S. presidential election has gradually reversed since the start of the calendar year. On a day-to-day basis, the inverse correlation between equities and bonds remains intact — if stocks rise, bond prices generally fall. However, the overall trend in 2017 has been an increase in bond prices.

There are a number of potential factors at play. In the past, we’ve often seen a decline in equities when there has been uncertainty in the political or economic environment, but in this instance it may have initiated the rise in bond prices. There’s also been a greater appetite for fixed income securities in general, which may be due to more people entering retirement and seeking diversification from equities.

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. Broadly speaking, investments in equity funds outpaced those in fixed income funds and all portfolios within the series delivered positive results. Growth-oriented funds of funds tended to have larger holdings in information technology companies, and this helped them outpace funds of funds with an income focus. Within fixed income, funds with meaningful investments in lower quality, higher yielding bonds outpaced those with larger positions in higher quality, lower yielding securities.

The table on page 3 shows the lifetime results for the funds (since May 18, 2012). Please keep in mind that this five-and-a-half-year period is still a relatively brief investment time frame. As always, we encourage investors to have a long-term outlook, particularly since the funds in the series are designed as long-term investments.

Note that effective January 1, 2018, in order to help clarify the objective of each portfolio, the names of three of the funds of funds within the American Funds Portfolio Series will change:

	•	American Funds Balanced Portfolio^SMwill become American Funds Moderate Growth and Income Portfolio^SM
	•	American Funds Income Portfolio^SMwill become American Funds Conservative Growth and Income Portfolio^SM
	•	American Funds Tax-Advantaged Income Portfolio^SMwill become American Funds Tax-Advantaged Growth and Income Portfolio^SM

Moving forward

Looking ahead, we see no real roadblocks to continued growth around the world. While there has been — and will be —volatility in various parts of the market, the types of economic imbalances that preceded past recessions are not apparent today.

With the economic picture generally sound, any potential setbacks to securities prices would have to come from an external shock that would disrupt markets or undermine investor confidence. For example, failure to enact tax reform in the U.S. could prompt a decline in equities, as current prices reflect optimism on that count. A military escalation with North Korea may unsettle markets, particularly in Asia.

While the incidence and timing of these kinds of shocks cannot be predicted, it is still useful to undertake a close analysis of these scenarios and the factors that influence their probabilities. The investment professionals working on behalf of the series’ underlying funds continuously monitor global economies and markets for any sign of change.

Fund allocations in the series are not determined by short- or medium-term market forecasts, nor are allocations changed in response to competitive pressures. Any shifts made to investments by analysts and portfolio managers are based on bottom-up fundamentals — an approach that we’ve found works well in lieu of any sort of tactical, top-down process. Our focus remains on the long term, and we encourage you to adopt a similar perspective with regard to your investments.

As always, we thank you for entrusting your assets to our care. We look forward to reporting to you again in six months.

Cordially,

Bradley J. Vogt
Vice Chairman of the Board

Walter R. Burkley
President

December 11, 2017

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

Why your annual report has a different look

You have probably noticed that this annual report doesn’t look like the glossier reports of the past. After surveying a large, representative sample of our investors, we have decided to make a few key changes to these documents and have adjusted the look and feel of our reports (e.g., paper stock and design standards) to reflect the prevailing industry norm. These changes will reduce costs and the amount of paper we consume.

You also told us that we should be considering ways to deliver the valuable perspective of our investment professionals to you digitally. We are in the process of building our digital investor education content on our website, which will provide a platform for investment professionals to communicate with investors using the channels that you access more often.

If you have not already done so, you can elect to receive your annual reports electronically. Once you do, you will receive an email notification as soon as the documents are available. To learn more, visit americanfunds.com/gopaperless. n

2	American Funds Portfolio Series

Results at a glance

For periods ended October 31, 2017, with all distributions reinvested for Class A shares

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

American Funds Global Growth Portfolio		26.05	%		11.97	%		13.19	%
MSCI All Country World Index^1,2		23.20			10.80			12.06
Lipper Global Large-Cap Growth Funds Index³		24.65			11.49			12.26

American Funds Growth Portfolio		24.39			13.56			14.38
Standard & Poor’s 500 Composite Index¹		23.63			15.18			15.85
MSCI All Country World ex USA Index^1,2		23.64			7.29			9.09
Lipper Global Multi-Cap Growth Funds Index³		25.66			11.64			12.53

American Funds Growth and Income Portfolio		17.69			10.37			11.33
Standard & Poor’s 500 Composite Index¹		23.63			15.18			15.85
MSCI All Country World ex USA Index^1,2		23.64			7.29			9.09
Bloomberg Barclays Global Aggregate Index¹		1.18			0.43			1.00
Lipper Mixed-Asset Target Allocation Growth Funds Index³		16.51			9.86			10.66

American Funds Balanced Portfolio		15.23			9.37			10.22
Standard & Poor’s 500 Composite Index¹		23.63			15.18			15.85
MSCI All Country World ex USA Index^1,2		23.64			7.29			9.09
Bloomberg Barclays U.S. Aggregate Index¹		0.90			2.04			2.28
Lipper Mixed-Asset Target Allocation Growth Funds Index³		16.51			9.86			10.66

American Funds Income Portfolio		11.62			7.28			7.95
Standard & Poor’s 500 Composite Index¹		23.63			15.18			15.85
MSCI All Country World ex USA Index^1,2		23.64			7.29			9.09
Bloomberg Barclays U.S. Aggregate Index¹		0.90			2.04			2.28
Lipper Mixed-Asset Target Allocation Moderate Funds Index³		13.24			7.85			8.56

American Funds Tax-Advantaged Income Portfolio		12.03			8.18			8.95
Standard & Poor’s 500 Composite Index¹		23.63			15.18			15.85
MSCI All Country World ex USA Index^1,2		23.64			7.29			9.09
Bloomberg Barclays Municipal Bond Index¹		2.19			3.00			3.22
Lipper Mixed-Asset Target Allocation Moderate Funds Index³		13.24			7.85			8.56

American Funds Preservation Portfolio		0.08			0.78			0.95
Bloomberg Barclays 1–5 Year U.S. Government/Credit A+ Index^1,3		0.36			1.03			1.11
Bloomberg Barclays U.S. Government/Credit 1–7 Years ex BBB Index^1,4		0.25			1.19			1.31
Lipper Short-Intermediate Investment-Grade Debt Funds Index		1.49			1.51			1.85

American Funds Tax-Exempt Preservation Portfolio		0.81			1.68			1.93
Bloomberg Barclays Municipal Bond 1–7 Year Blend Index^1,3		1.41			1.63			1.71
Bloomberg Barclays Municipal Short-Intermediate 1–10 Years Index^1,5		1.53			1.88			1.97
Lipper Short-Intermediate Municipal Debt Funds Index³		0.93			1.23			1.36

¹	Sources: Bloomberg Index Services Ltd., MSCI, S&P Dow Jones Indices LLC and Thomson Reuters Lipper. 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.
⁵	This index is being replaced by the Bloomberg Barclays Municipal Bond 1–7 Year Blend Index, which is more representative of the fund’s objective.

The MSCI All Country World Index (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 approximately 500 widely held common stocks. Lipper Global Large-Cap Growth Funds Index is an equally weighted index of funds that invest at least 75% of their equity assets in companies both inside and outside of the U.S. with market capitalizations (on a three-year weighted basis) above Lipper’s global large-cap floor. Global large-cap growth funds typically have above-average characteristics compared to their large-cap-specific subset of the MSCI World Index. Lipper Global Multi-Cap Growth Funds Index is an equally weighted index of funds that invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. Global multi-cap growth funds typically have above-average characteristics compared to the MSCI World Index. Lipper Mixed-Asset Target Allocation Moderate Funds Index is an equally weighted index of funds that seeks to maintain a mix of between 40%–60% equity securities, with the remainder invested in bonds, cash and cash equivalents. Lipper Mixed-Asset Target Allocation Growth Funds Index is an equally weighted index of funds that seeks to maintain a mix of between 60%–80% equity securities, with the remainder invested in bonds, cash and cash equivalents. 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 Short-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. Bloomberg Barclays Municipal Bond 1–7 Year Blend Index is a market-value-weighted index that includes investment-grade tax-exempt bonds with maturities of one to seven years.

American Funds Portfolio Series

How a $10,000 investment has grown

(for periods ended October 31, 2017, 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, 2017)*

	1 year	5 years	Lifetime (since 5/18/12)

Class A shares	18.82%	10.65%	11.97%

*	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, 2017)*

	1 year	5 years	Lifetime (since 5/18/12)

Class A shares	17.23%	12.23%	13.15%

*	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, 2017)*

	1 year	5 years	Lifetime (since 5/18/12)

Class A shares	10.89%	9.08%	10.13%

*	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, 2017)*

	1 year	5 years	Lifetime (since 5/18/12)

Class A shares	8.58%	8.08%	9.03%

*	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, 2017)*

	1 year	5 years	Lifetime (since 5/18/12)

Class A shares	5.23%	6.02%	6.79%

*	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, 2017)*

	1 year	5 years	Lifetime (since 5/18/12)

Class A shares	7.82%	7.35%	8.19%

*	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, 2017)*

	1 year	5 years	Lifetime (since 5/18/12)

Class A shares	–2.45%	0.27%	0.47%

*	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, 2017)*

	1 year	5 years	Lifetime (since 5/18/12)

Class A shares	–1.67%	1.16%	1.45%

*	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. The investment adviser is currently reimbursing a portion of other expenses for American Funds Tax-Exempt Preservation Portfolio. Investment results reflect the reimbursement, without which the results would have been lower. The reimbursement will be in effect through at least January 1, 2019. The adviser may elect at its discretion to extend, modify or terminate the reimbursement at that time.

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:

10% SMALLCAP World Fund^®

25% EuroPacific Growth Fund^®

15% The Growth Fund of America^®

20% New Perspective Fund^®

15% Fundamental Investors^®

15% Capital World Growth and Income 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, 2017, the fund’s Class A shares had a return of 26.05%. Among the fund’s underlying funds, all contributed to results with double-digit returns. Leaders in the strong bull market were The Growth Fund of America, EuroPacific Growth Fund and SMALLCAP World Fund.

American Funds Growth Portfolio

Underlying funds:

10% SMALLCAP World Fund^®

15% EuroPacific Growth Fund^®

20% The Growth Fund of America^®

20% AMCAP Fund^®

20% Fundamental Investors^®

15% The Investment Company of America^®

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 that may have significant holdings of issuers domiciled outside the United States.

For the 12-month period ended October 31, 2017, the fund’s Class A shares had a return of 24.39%. Among the fund’s underlying funds, all contributed to results with double-digit returns. Leaders were The Growth Fund of America, EuroPacific Growth Fund and Fundamental Investors.

American Funds Growth and Income Portfolio

Underlying funds:

15% The Growth Fund of America^®

25% Capital World Growth and Income Fund^®

25% The Investment Company of America^®

15% Capital Income Builder^®

10% American Balanced Fund^®

10% The Bond Fund of America^®

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, 2017, the fund’s Class A shares had a return of 17.69%. Among the fund’s underlying funds, all contributed, with equity-focused funds contributing double-digit returns. The Growth Fund of America led, followed by Capital World Growth and Income Fund and The Investment Company of America. The only single-digit contributor was The Bond Fund of America.

American Funds Portfolio Series

American Funds Balanced Portfolio

Underlying funds:

10% New Perspective Fund^®

15% Capital World Growth and Income Fund^®

10% Washington Mutual Investors Fund^SM

25% American Funds Global Balanced Fund^SM

25% American Balanced Fund^®

15% The Bond Fund of America^®

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, 2017, the fund’s Class A shares had a return of 15.23%. Among the fund’s underlying funds, all contributed led by New Perspective Fund and Capital World Growth and Income Fund. American Funds Balanced Fund and American Funds Global Balanced Fund both also brought double-digit returns. The more conservative Bond Fund of America contributed least.

American Funds Income Portfolio

Underlying funds:

20% American Mutual Fund^®

25% Capital Income Builder^®

25% The Income Fund of America^®

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, 2017, the fund’s Class A shares had a return of 11.62%. Among the fund’s underlying funds, all contributed but one. American Mutual Fund led, followed by The Income Fund of America and Capital Income Builder. The only detractor was U.S. Government Securities Fund, with a negative return of –0.21%.

American Funds Tax-Advantaged Income Portfolio

Underlying funds:

20% Capital World Growth and Income Fund^®

15% Washington Mutual Investors Fund^SM

15% American Mutual Fund^®

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, 2017, the fund’s Class A shares had a return of 12.03%. Among the underlying funds, all contributed to results, led by Capital World Growth and Income Fund and Washington Mutual Investors Fund. Lagging somewhat were the municipal bond funds in the portfolio.

8	American Funds Portfolio Series

American Funds Preservation Portfolio

Underlying funds:

60% Intermediate Bond Fund of America^®

40% Short-Term 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, 2017, the fund’s Class A shares had a return of 0.08%. Both of the fund’s underlying funds contributed modestly to results, led by Short-Term Bond Fund of America at 0.52%. The Intermediate Bond Fund of America contributed 0.14%.

American Funds Tax-Exempt Preservation Portfolio

Underlying funds:

30% American Funds Short-Term Tax-Exempt Bond Fund^®

70% Limited Term 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, 2017, the fund’s Class A shares had a return of 0.81%. Both of the fund’s underlying funds contributed modestly to results, with Limited Term Tax-Exempt Bond Fund of America being the most additive.

The underlying fund allocations are as of 10/31/17. 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, 2017

Fund investments	Shares		Value (000)
Growth funds 70%
EuroPacific Growth Fund, Class R-6		11,295,871	$	645,898
New Perspective Fund, Class R-6		11,442,246		516,618
SMALLCAP World Fund, Inc., Class R-6		4,500,826		258,077
The Growth Fund of America, Class R-6		7,553,364		389,527
				1,810,120

Growth-and-income funds 30%
Capital World Growth and Income Fund, Class R-6		7,410,798		387,362
Fundamental Investors, Class R-6		6,092,708		387,618
				774,980

Total investment securities 100% (cost: $2,252,484,000)				2,585,100
Other assets less liabilities 0%				(889	)

Net assets 100%			$	2,584,211

See Notes to Financial Statements

10	American Funds Portfolio Series

American Funds Growth Portfolio

Investment portfolio October 31, 2017

Fund investments	Shares		Value (000)
Growth funds 65%
AMCAP Fund, Class R-6		35,567,902	$	1,142,797
EuroPacific Growth Fund, Class R-6		15,070,937		861,756
SMALLCAP World Fund, Inc., Class R-6		9,975,525		571,997
The Growth Fund of America, Class R-6		22,410,533		1,155,711
				3,732,261

Growth-and-income funds 35%
Fundamental Investors, Class R-6		18,062,500		1,149,136
The Investment Company of America, Class R-6		20,836,942		856,190
				2,005,326

Total investment securities 100% (cost: $4,788,150,000)				5,737,587
Other assets less liabilities 0%				(2,401	)

Net assets 100%			$	5,735,186

See Notes to Financial Statements

American Funds Portfolio Series

American Funds Growth and Income Portfolio

Investment portfolio October 31, 2017

Fund investments	Shares		Value (000)
Growth funds 15%
The Growth Fund of America, Class R-6		22,286,943	$	1,149,338

Growth-and-income funds 50%
Capital World Growth and Income Fund, Class R-6		36,179,794		1,891,118
The Investment Company of America, Class R-6		45,920,238		1,886,862
				3,777,980

Equity-income and Balanced funds 25%
American Balanced Fund, Class R-6		27,504,593		755,001
Capital Income Builder, Class R-6		17,993,577		1,130,357
				1,885,358

Fixed income funds 10%
The Bond Fund of America, Class R-6		58,099,249		752,385

Total investment securities 100% (cost: $6,612,206,000)				7,565,061
Other assets less liabilities 0%				(3,044	)

Net assets 100%			$	7,562,017

See Notes to Financial Statements

12	American Funds Portfolio Series

American Funds Balanced Portfolio

Investment portfolio October 31, 2017

Fund investments	Shares		Value (000)
Growth funds 10%
New Perspective Fund, Class R-6		14,996,285	$	677,082

Growth-and-income funds 25%
Capital World Growth and Income Fund, Class R-6		19,354,152		1,011,642
Washington Mutual Investors Fund, Class R-6		14,829,153		673,095
				1,684,737

Equity-income and Balanced funds 50%
American Balanced Fund, Class R-6		61,353,531		1,684,155
American Funds Global Balanced Fund, Class R-6		51,804,196		1,684,154
				3,368,309

Fixed income funds 15%
The Bond Fund of America, Class R-6		78,012,859		1,010,266

Total investment securities 100% (cost: $5,967,273,000)				6,740,394
Other assets less liabilities 0%				(2,629	)

Net assets 100%			$	6,737,765

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, 2017, appear below.

	Beginning shares		Additions		Reductions		Ending shares		Net realized gain (000)		Net unrealized appreciation (000)		Dividend income (000)		Value of affiliate at 10/31/2017 (000)
Equity-income and Balanced funds 25%
American Funds Global Balanced Fund, Class R-6		34,775,521		17,028,675		—		51,804,196	$	—	$	119,273	$	27,933	$	1,684,154

See Notes to Financial Statements

American Funds Portfolio Series

American Funds Income Portfolio

Investment portfolio October 31, 2017

Fund investments	Shares		Value (000)
Growth-and-income funds 20%
American Mutual Fund, Class R-6		22,264,603	$	912,626

Equity-income and Balanced funds 50%
Capital Income Builder, Class R-6		18,092,529		1,136,573
The Income Fund of America, Class R-6		48,473,320		1,137,184
				2,273,757

Fixed income Funds 30%
American High-Income Trust, Class R-6		65,217,967		683,484
U.S. Government Securities Fund, Class R-6		49,524,485		681,457
				1,364,941

Total investment securities 100% (cost: $4,158,028,000)				4,551,324
Other assets less liabilities 0%				(1,849	)

Net assets 100%			$	4,549,475

Investments in affiliates

	Beginning shares		Additions		Reductions		Ending shares		Net realized loss (000)			Net unrealized depreciation (000)			Dividend income (000)		Value of affiliate at 10/31/2017 (000)
Fixed income funds 15%
U.S. Government Securities Fund, Class R-6		40,437,628		9,370,382		283,525		49,524,485	$	(84	)	$	(14,771	)	$	9,750	$	681,457

See Notes to Financial Statements

14	American Funds Portfolio Series

American Funds Tax-Advantaged Income Portfolio

Investment portfolio October 31, 2017

Fund investments	Shares		Value (000)
Growth-and-income funds 50%
American Mutual Fund, Class R-6		6,202,553	$	254,243
Capital World Growth and Income Fund, Class R-6		6,528,437		341,241
Washington Mutual Investors Fund, Class R-6		5,605,972		254,455
				849,939

Tax-exempt fixed income funds 50%
American High-Income Municipal Bond Fund, Class R-6		26,753,484		424,043
The Tax-Exempt Bond Fund of America, Class R-6		32,643,985		424,045
				848,088

Total investment securities 100% (cost: $1,570,667,000)				1,698,027
Other assets less liabilities 0%				(411	)

Net assets 100%			$	1,697,616

Investments in affiliates

	Beginning shares	Additions	Reductions	Ending shares		Net realized gain (000)		Net unrealized appreciation (000)		Dividend income (000)		Value of affiliate at 10/31/2017 (000)
Tax-exempt fixed income funds 25%
American High-Income Municipal Bond Fund, Class R-6	18,021,335	8,732,149	—	26,753,484	$	—	$	603	$	13,922	$	424,043

See Notes to Financial Statements

American Funds Portfolio Series

American Funds Preservation Portfolio

Investment portfolio October 31, 2017

Fund investments	Shares		Value (000)
Fixed income funds 100%
Intermediate Bond Fund of America, Class R-6		64,547,274	$	865,579
Short-Term Bond Fund of America, Class R-6		58,053,585		577,053
				1,442,632

Total investment securities 100% (cost: $1,453,418,000)				1,442,632
Other assets less liabilities 0%				(515	)

Net assets 100%			$	1,442,117

Investments in affiliates

	Beginning shares		Additions		Reductions		Ending shares		Net realized loss (000)			Net unrealized depreciation (000)			Dividend income (000)		Value of affiliates at 10/31/2017 (000)
Fixed income funds 100%
Intermediate Bond Fund of America, Class R-6		36,468,769		30,583,103		2,504,598		64,547,274	$	(253	)	$	(7,021	)	$	10,053	$	865,579
Short-Term Bond Fund of America, Class R-6		49,670,464		11,690,768		3,307,647		58,053,585		(136	)		(3,094	)		7,354		577,053
Total 100%									$	(389	)	$	(10,115	)	$	17,407	$	1,442,632

See Notes to Financial Statements

16	American Funds Portfolio Series

American Funds Tax-Exempt Preservation Portfolio

Investment portfolio October 31, 2017

Fund investments	Shares		Value (000)
Tax-exempt fixed income funds 100%
American Funds Short-Term Tax-Exempt Bond Fund, Class R-6		12,888,610	$	130,690
Limited Term Tax-Exempt Bond Fund of America, Class R-6		19,361,557		304,945
				435,635

Total investment securities 100% (cost: $440,618,000)				435,635
Other assets less liabilities 0%				(113	)

Net assets 100%			$	435,522

Investments in affiliates

	Beginning shares		Additions		Reductions		Ending shares		Net realized loss (000)			Net unrealized appreciation (depreciation) (000)			Dividend income (000)		Value of affiliates at 10/31/2017 (000)
Tax-exempt fixed income funds 100%
American Funds Short-Term Tax-Exempt Bond Fund, Class R-6		—		13,387,134		498,524		12,888,610	$	(3	)	$	270		$	901	$	130,690
Limited Term Tax-Exempt Bond Fund of America, Class R-6		19,754,313		2,861,086		3,253,842		19,361,557		(1,562	)		(867	)		6,872		304,945
Total 100%									$	(1,565	)	$	(597	)	$	7,773	$	435,635

See Notes to Financial Statements

American Funds Portfolio Series

Financial statements

Statements of assets and liabilities
at October 31, 2017

	Global Growth Portfolio			Growth Portfolio			Growth and Income Portfolio
Assets:
Investment securities, at value:
Unaffiliated issuers	$	2,585,100		$	5,737,587		$	7,565,061
Affiliated issuers		—			—			—
Receivables for:
Sales of fund’s shares		4,472			5,456			8,209
Dividends		—			—			1,393
Total assets		2,589,572			5,743,043			7,574,663

Liabilities:
Payables for:
Purchases of investments		3,117			711			3,256
Repurchases of fund’s shares		1,310			4,666			6,297
Services provided by related parties		912			2,423			3,041
Trustees’ deferred compensation		5			10			15
Other		17			47			37
Total liabilities		5,361			7,857			12,646
Net assets at October 31, 2017	$	2,584,211		$	5,735,186		$	7,562,017

Net assets consist of:
Capital paid in on shares of beneficial interest	$	2,108,136		$	4,629,196		$	6,472,976
(Distributions in excess of) undistributed net investment income		(5	)		(10	)		(15	)
Undistributed (accumulated) net realized gain (loss)		143,464			156,563			136,201
Net unrealized appreciation (depreciation)		332,616			949,437			952,855
Net assets at October 31, 2017	$	2,584,211		$	5,735,186		$	7,562,017

Investment securities, at cost:
Unaffiliated issuers	$	2,252,484		$	4,788,150		$	6,612,206
Affiliated issuers		—			—			—

See Notes to Financial Statements

18	American Funds Portfolio Series

(dollars in thousands)

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

$	5,056,240	$	3,869,867	$	1,273,984	$	—		$	—
	1,684,154		681,457		424,043		1,442,632			435,635
	14,504		5,360		2,707		3,646			879
	1,858		4,145		2,555		1,855			727
	6,756,756		4,560,829		1,703,289		1,448,133			437,241

	9,075		5,504		4,559		4,036			1,261
	7,274		3,995		703		1,465			345
	2,604		1,835		408		504			112
	13		10		3		3			1
	25		10		—		8			—
	18,991		11,354		5,673		6,016			1,719
$	6,737,765	$	4,549,475	$	1,697,616	$	1,442,117		$	435,522

$	5,823,975	$	4,135,812	$	1,538,927	$	1,453,826		$	447,163

	6,471		3,503		2,768		500			232
	134,198		16,864		28,561		(1,423	)		(6,890	)
	773,121		393,296		127,360		(10,786	)		(4,983	)
$	6,737,765	$	4,549,475	$	1,697,616	$	1,442,117		$	435,522

$	4,386,731	$	3,468,628	$	1,155,979	$	—		$	—
	1,580,542		689,400		414,688		1,453,418			440,618

American Funds Portfolio Series

Statements of assets and liabilities
at October 31, 2017

		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	$	1,470,548	$	3,363,748	$	4,836,142
	Shares outstanding		84,658		185,563		321,124
	Net asset value per share	$	17.37	$	18.13	$	15.06
Class C:	Net assets	$	295,520	$	760,704	$	1,111,476
	Shares outstanding		17,307		42,773		74,263
	Net asset value per share	$	17.08	$	17.78	$	14.97
Class T:	Net assets	$	12	$	11	$	11
	Shares outstanding		1		1		1
	Net asset value per share	$	17.40	$	18.15	$	15.06
Class F-1:	Net assets	$	58,103	$	78,450	$	149,982
	Shares outstanding		3,341		4,331		9,960
	Net asset value per share	$	17.39	$	18.11	$	15.06
Class F-2:	Net assets	$	248,536	$	293,744	$	384,567
	Shares outstanding		14,249		16,132		25,499
	Net asset value per share	$	17.44	$	18.21	$	15.08
Class F-3:	Net assets	$	15,119	$	23,752	$	27,990
	Shares outstanding		868		1,307		1,858
	Net asset value per share	$	17.41	$	18.17	$	15.07
Class 529-A:	Net assets	$	218,443	$	566,780	$	439,467
	Shares outstanding		12,592		31,305		29,193
	Net asset value per share	$	17.35	$	18.11	$	15.05
Class 529-C:	Net assets	$	71,128	$	184,475	$	159,060
	Shares outstanding		4,164		10,382		10,620
	Net asset value per share	$	17.08	$	17.77	$	14.98
Class 529-E:	Net assets	$	8,628	$	26,047	$	20,606
	Shares outstanding		500		1,449		1,372
	Net asset value per share	$	17.25	$	17.98	$	15.02
Class 529-T:	Net assets	$	12	$	11	$	11
	Shares outstanding		1		1		1
	Net asset value per share	$	17.39	$	18.14	$	15.06
Class 529-F-1:	Net assets	$	16,775	$	56,479	$	33,689
	Shares outstanding		963		3,106		2,236
	Net asset value per share	$	17.41	$	18.18	$	15.07

See Notes to Financial Statements

20	American Funds Portfolio Series

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

Balanced Portfolio		Income Portfolio		Tax-Advantaged Income Portfolio		Preservation Portfolio		Tax-Exempt Preservation Portfolio
$	4,072,501	$	3,175,329	$	1,229,322	$	987,835	$	336,155
	273,988		251,618		90,564		99,648		34,330
$	14.86	$	12.62	$	13.57	$	9.91	$	9.79
$	1,032,081	$	689,253	$	212,328	$	155,020	$	53,990
	69,858		54,916		15,741		15,661		5,522
$	14.77	$	12.55	$	13.49	$	9.90	$	9.78
$	11	$	10	$	11	$	10	$	10
	1		1		1		1		1
$	14.87	$	12.62	$	13.57	$	9.92	$	9.79
$	139,598	$	88,555	$	134,023	$	26,042	$	10,535
	9,391		7,014		9,878		2,627		1,076
$	14.86	$	12.63	$	13.57	$	9.91	$	9.80
$	400,749	$	263,576	$	101,229	$	67,835	$	33,508
	26,924		20,858		7,448		6,842		3,422
$	14.88	$	12.64	$	13.59	$	9.91	$	9.79
$	44,122	$	19,802	$	20,703	$	726	$	1,324
	2,967		1,569		1,524		73		135
$	14.87	$	12.62	$	13.58	$	9.91	$	9.79
$	280,394	$	100,257			$	85,515
	18,867		7,947				8,628
$	14.86	$	12.62			$	9.91
$	122,290	$	52,548			$	36,135
	8,267		4,184				3,650
$	14.79	$	12.56			$	9.90
$	11,118	$	6,709			$	3,691
	749		532				373
$	14.83	$	12.61			$	9.91
$	11	$	11			$	10
	1		1				1
$	14.87	$	12.62			$	9.92
$	31,453	$	9,625			$	17,218
	2,114		762				1,737
$	14.88	$	12.63			$	9.91

American Funds Portfolio Series

Statements of assets and liabilities
at October 31, 2017

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

Class R-1:	Net assets	$	3,297	$	9,011	$	7,530
	Shares outstanding		192		504		502
	Net asset value per share	$	17.16	$	17.87	$	15.00
Class R-2:	Net assets	$	67,032	$	139,065	$	122,520
	Shares outstanding		3,935		7,820		8,193
	Net asset value per share	$	17.03	$	17.78	$	14.96
Class R-2E:	Net assets	$	1,478	$	5,654	$	7,818
	Shares outstanding		86		316		520
	Net asset value per share	$	17.24	$	17.91	$	15.02
Class R-3:	Net assets	$	35,772	$	87,888	$	82,094
	Shares outstanding		2,074		4,884		5,469
	Net asset value per share	$	17.24	$	17.99	$	15.01
Class R-4:	Net assets	$	17,100	$	48,600	$	74,388
	Shares outstanding		986		2,686		4,941
	Net asset value per share	$	17.34	$	18.10	$	15.05
Class R-5E:	Net assets	$	12	$	5,745	$	3,843
	Shares outstanding		1		317		255
	Net asset value per share	$	17.37	$	18.13	$	15.05
Class R-5:	Net assets	$	7,756	$	22,019	$	18,131
	Shares outstanding		443		1,204		1,200
	Net asset value per share	$	17.52	$	18.28	$	15.11
Class R-6:	Net assets	$	48,940	$	63,003	$	82,692
	Shares outstanding		2,788		3,452		5,480
	Net asset value per share	$	17.55	$	18.25	$	15.09

See Notes to Financial Statements

22	American Funds Portfolio Series

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

Balanced Portfolio		Income Portfolio		Tax-Advantaged Income Portfolio	Preservation Portfolio		Tax-Exempt Preservation Portfolio
$	10,387	$	2,056		$	683
	702		164			69
$	14.80	$	12.57		$	9.91
$	100,398	$	31,584		$	15,086
	6,792		2,515			1,526
$	14.78	$	12.56		$	9.89
$	15,620	$	284		$	1,864
	1,054		23			188
$	14.82	$	12.61		$	9.91
$	104,545	$	31,183		$	15,730
	7,050		2,476			1,588
$	14.83	$	12.60		$	9.91
$	93,645	$	36,202		$	10,757
	6,301		2,868			1,085
$	14.86	$	12.62		$	9.91
$	6,899	$	2,990		$	11
	464		237			1
$	14.87	$	12.61		$	9.92
$	19,406	$	6,861		$	3,268
	1,303		542			329
$	14.89	$	12.65		$	9.92
$	252,537	$	32,640		$	14,681
	16,956		2,582			1,480
$	14.89	$	12.64		$	9.92

American Funds Portfolio Series

Statements of operations
for the year ended October 31, 2017

	Global Growth Portfolio			Growth Portfolio		Growth and Income Portfolio
Investment income:
Income:
Dividends:
Unaffiliated issuers	$	28,326		$	62,863	$	150,998
Affiliated issuers		—			—		—
		28,326			62,863		150,998

*Fees and expenses:**
Distribution services		7,188			17,527		24,338
Transfer agent services		2,013			4,712		6,381
Reports to shareholders		108			256		357
Registration statement and prospectus		374			582		596
Trustees’ compensation		13			32		44
Auditing and legal		11			19		25
Custodian		12			12		12
Other		178			479		407
Total fees and expenses before reimbursements		9,897			23,619		32,160
Less reimbursements of fees and expenses:
Transfer agent services reimbursements		—	^†		—		—	^†
Miscellaneous fee reimbursements		—			—		—
Total reimbursements of fees and expenses		—	^†		—		—	^†
Total fees and expenses after reimbursements		9,897			23,619		32,160
Net investment income		18,429			39,244		118,838

Net realized gain (loss) and unrealized appreciation (depreciation):
Net realized gain (loss) on sale of investments:
Unaffiliated issuers		104,140			73,626		615
Affiliated issuers		—			—		—
Capital gain distributions received		46,772			93,866		150,325
Net realized gain (loss)		150,912			167,492		150,940
Net unrealized app (dep) on investments:
Unaffiliated issuers		313,133			849,844		816,444
Affiliated issuers		—			—		—
Net unrealized appreciation (depreciation)		313,133			849,844		816,444
Net realized gain (loss) and unrealized appreciation (depreciation)		464,045			1,017,336		967,384
Net increase (decrease) in net assets resulting from operations	$	482,474		$	1,056,580	$	1,086,222

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

See Notes to Financial Statements

24	American Funds Portfolio Series

(dollars in thousands)

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

$	89,888	$	128,130		$	27,631	$	2,146		$	2,014
	27,933		9,750			13,922		17,407			7,773
	117,821		137,880			41,553		19,553			9,787

	21,479		15,374			4,799		5,116			1,556
	5,419		3,901			1,251		1,235			395
	308		225			72		70			24
	613		436			280		360			156
	38		28			9		8			3
	22		17			8		8			5
	12		12			12		12			12
	278		113			2		92			1
	28,169		20,106			6,433		6,901			2,152

	—		—			—		—	^†		—
	—		—			—		—			51
	—		—			—		—	^†		51
	28,169		20,106			6,433		6,901			2,101
	89,652		117,774			35,120		12,652			7,686

	43,788		(240	)		4,700		(788	)		(2,268	)
	—		(84	)		—		(389	)		(1,565	)
	105,807		28,596			26,655		3,069			—
	149,595		28,272			31,355		1,892			(3,833	)

	463,405		321,763			90,960		(4,468	)		(811	)
	119,273		(14,771	)		603		(10,115	)		(597	)
	582,678		306,992			91,563		(14,583	)		(1,408	)

	732,273		335,264			122,918		(12,691	)		(5,241	)

$	821,925	$	453,038		$	158,038	$	(39	)	$	2,445

American Funds Portfolio Series

Statements of changes in net assets

	Global Growth Portfolio						Growth Portfolio						Growth and Income Portfolio
	Year ended October 31						Year ended October 31						Year ended October 31
	2017			2016			2017			2016			2017			2016
Operations:
Net investment income	$	18,429		$	15,966		$	39,244		$	18,795		$	118,838		$	101,268
Net realized gain (loss)		150,912			47,523			167,492			152,109			150,940			151,383
Net unrealized appreciation (depreciation)		313,133			(27,474	)		849,844			(26,463	)		816,444			(29,360	)
Net increase (decrease) in net assets resulting from operations		482,474			36,015			1,056,580			144,441			1,086,222			223,291

Dividends and distributions paid to shareholders:
Dividends from net investment income		(15,700	)		(12,486	)		(35,599	)		(19,413	)		(116,273	)		(91,948	)
Distributions from net realized gain on investments		(45,356	)		(47,394	)		(138,199	)		(132,451	)		(144,461	)		(131,752	)
Total dividends and distributions paid to shareholders		(61,056	)		(59,880	)		(173,798	)		(151,864	)		(260,734	)		(223,700	)

Net capital share transactions		378,154			228,222			739,162			869,507			800,173			1,004,406

Total increase (decrease) in net assets		799,572			204,357			1,621,944			862,084			1,625,661			1,003,997

Net assets:
Beginning of year		1,784,639			1,580,282			4,113,242			3,251,158			5,936,356			4,932,359
End of year	$	2,584,211		$	1,784,639		$	5,735,186		$	4,113,242		$	7,562,017		$	5,936,356
(Distributions in excess of) undistributed net investment income	$	(5	)	$	(4	)	$	(10	)	$	(2,386	)	$	(15	)	$	(13	)

See Notes to Financial Statements

26	American Funds Portfolio Series

(dollars in thousands)

Balanced Portfolio						Income Portfolio						Tax-Advantaged Income Portfolio						Preservation Portfolio						Tax-Exempt Preservation Portfolio
Year ended October 31						Year ended October 31						Year ended October 31						Year ended October 31						Year ended October 31
2017			2016			2017			2016			2017			2016			2017			2016			2017			2016

$	89,652		$	65,273		$	117,774		$	102,768		$	35,120		$	25,331		$	12,652		$	9,748		$	7,686		$	7,842
	149,595			114,866			28,272			20,764			31,355			11,602			1,892			1,619			(3,833	)		(389	)
	582,678			(11,645	)		306,992			52,084			91,563			4,924			(14,583	)		7,953			(1,408	)		(973	)

	821,925			168,494			453,038			175,616			158,038			41,857			(39	)		19,320			2,445			6,480

	(89,343	)		(63,958	)		(120,943	)		(113,238	)		(34,201	)		(24,858	)		(14,496	)		(10,176	)		(7,786	)		(7,712	)
	(102,336	)		(86,331	)		(15,840	)		(14,453	)		(10,550	)		(5,812	)		(680	)		—			—			—
	(191,679	)		(150,289	)		(136,783	)		(127,691	)		(44,751	)		(30,670	)		(15,176	)		(10,176	)		(7,786	)		(7,712	)

	952,139			1,137,336			436,076			594,707			439,815			326,999			216,053			342,419			(6,593	)		145,870

	1,582,385			1,155,541			752,331			642,632			553,102			338,186			200,838			351,563			(11,934	)		144,638

	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
$	6,737,765		$	5,155,380		$	4,549,475		$	3,797,144		$	1,697,616		$	1,144,514		$	1,442,117		$	1,241,279		$	435,522		$	447,456

$	6,471		$	6,157		$	3,503		$	2,362		$	2,768		$	1,849		$	500		$	343		$	232		$	332

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 21 share classes consisting of seven retail share classes (Classes A, B, C, T, F-1, F-2 and F-3), six 529 college savings plan share classes (Classes 529-A, 529-B, 529-C, 529-E, 529-T and 529-F-1) and eight retirement plan share classes (Classes R-1, R-2, R-2E, R-3, R-4, R-5E, R-5 and R-6). The 529 college savings plan share classes can be used to save for college education. The retirement plan share classes are generally offered only through eligible employer-sponsored retirement plans. The Tax-Advantaged Income Portfolio and Tax-Exempt Preservation Portfolio each have seven retail share classes (Classes A, B, C, T, F-1, F-2 and F-3). 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 charge¹)	None
Class C	None	1% for redemptions within one year of purchase	Class C converts to Class F-1 after 10 years
Class 529-C	None	1% for redemptions within one year of purchase	Class 529-C converts to Class 529-A after 10 years²
Class 529-E	None	None	None
Classes T and 529-T³	Up to 2.50%	None	None
Classes F-1, F-2, F-3 and 529-F-1	None	None	None
Classes R-1, R-2, R-2E, R-3, R-4, R-5E, R-5 and R-6	None	None	None

¹	18 months for shares purchased on or after August 14, 2017.
²	Effective December 1, 2017.
³	Class T and 529-T shares are not available for purchase.

Holders of all share classes of each fund have equal pro rata rights to the assets, dividends and liquidation proceeds of each fund held. Each share class of each fund has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses (“class-specific fees and expenses”), primarily due to different arrangements for distribution and 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.

28	American Funds Portfolio Series

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.

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, 2017, all of the investment securities held by each fund were classified as Level 1.

4. Risk factors

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

Allocation risk — Investments in the 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.

American Funds Portfolio Series

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 growth-oriented stocks — Growth-oriented common stocks and other equity-type securities (such as preferred stocks, convertible preferred stocks and convertible bonds) may involve larger price swings and greater potential for loss than other types of investments.

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

30	American Funds Portfolio Series

Currency — The prices of, and the income generated by, many debt securities held by the underlying funds may also be affected by changes in relative currency values. If the U.S. dollar appreciates against foreign currencies, the value in U.S. dollars of an underlying fund’s securities denominated in such currencies would generally fall and vice versa. U.S. dollar-denominated securities of foreign issuers may also be affected by changes in relative currency values.

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 underlying 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.

Investing in future delivery contracts — An underlying fund may enter into contracts, such as to-be-announced contracts and mortgage dollar rolls, that involve an underlying fund selling mortgage-related securities and simultaneously contracting to repurchase similar securities for delivery at a future date at a predetermined price. This can increase the underlying fund’s market exposure, and the market price of the securities that the underlying fund contracts to repurchase could drop below their purchase price. While an underlying fund can preserve and generate capital through the use of such contracts by, for example, realizing the difference between the sale price and the future purchase price, the income generated by the underlying fund may be reduced by engaging in such transactions. In addition, these transactions may increase the turnover rate of the underlying fund.

Investing in inflation linked bonds — The values of inflation linked bonds generally fluctuate in response to changes in real interest rates — i.e., rates of interest after factoring in inflation. A rise in real interest rates may cause the prices of inflation linked securities to fall, while a decline in real interest rates may cause the prices to increase. Inflation linked bonds may experience greater losses than other debt securities with similar durations when real interest rates rise faster than nominal interest rates. There can be no assurance

American Funds Portfolio Series

that the value of an inflation linked security will be directly correlated to changes in interest rates; for example, if interest rates rise for reasons other than inflation, the increase may not be reflected in the security’s inflation measure.

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

Liquidity risk — Certain underlying 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 underlying 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 municipal securities — The yield and/or value of the fund’s investments in municipal securities may be adversely affected by events tied to the municipal securities markets, which can be very volatile and significantly impacted by unfavorable legislative or political developments and negative changes in the financial conditions of municipal securities issuers and the economy. To the extent the fund invests in obligations of a municipal issuer, the volatility, credit quality and performance of the fund may be adversely impacted by local political and economic conditions of the issuer. For example, a credit rating downgrade, bond default or bankruptcy involving an issuer within a particular state or territory could affect the market values and marketability of many or all municipal obligations of that state or territory. Income from municipal securities held by the fund could also be declared taxable because of changes in tax laws or interpretations by taxing authorities or as a result of noncompliant conduct of a municipal issuer. Additionally, the relative amount of publicly available information about municipal securities is generally less than that for corporate securities.

Investing in similar municipal bonds — Investing significantly in municipal obligations of multiple 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 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 such distributions are made. Therefore, no federal income tax provision is required.

As of and during the period ended October 31, 2017, none of the funds had a liability for any unrecognized tax benefits. These funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statements of operations. During the period, none of the funds incurred any interest or penalties.

32	American Funds Portfolio Series

The funds are not subject to examination by U.S. federal tax authorities for tax years before 2013 or by state tax authorities for tax years before 2012.

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.

As of October 31, 2017, 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	$	—	$	—	$	—	$	6,484
Undistributed long-term capital gain		143,629		157,056		136,839		135,369
Gross unrealized appreciation on investments		332,452		948,944		952,217		771,950
Net unrealized appreciation (depreciation) on investments		332,452		948,944		952,217		771,950
Cost of investments		2,252,648		4,788,643		6,612,844		5,968,444
Reclassification to undistributed/distributions in excess of net investment income from undistributed net realized gain/ accumulated net realized loss		—		—		—		12
Reclassification to capital paid in on shares of beneficial interest from undistributed/distributions in excess of net investment income		2,730		1,269		2,567		7
Reclassification to (from) capital paid in on shares of beneficial interest from (to) undistributed net realized gain/accumulated net realized loss		5,788		9,274		13,423		13,936

				Tax-Advantaged						Tax-Exempt
	Income			Income			Preservation			Preservation
	Portfolio			Portfolio			Portfolio			Portfolio
Undistributed ordinary income	$	3,513		$	1,098		$	503		$	—
Undistributed tax-exempt income		—			1,672			—			233
Undistributed long-term capital gain		20,992			28,994			—			—
Capital loss carryforward*		—			—			(478	)		(6,439	)
Gross unrealized appreciation on investments		429,928			127,368			—			1,718
Gross unrealized depreciation on investments		(40,761	)		(441	)		(11,732	)		(7,152	)
Net unrealized appreciation (depreciation) on investments		389,167			126,927			(11,732	)		(5,434	)
Cost of investments		4,162,157			1,571,100			1,454,364			441,069
Reclassification to undistributed/distributions in excess of net investment income from undistributed net realized gain/ accumulated net realized loss		4,320			—			2,003			—
Reclassification to capital paid in on shares of beneficial interest from undistributed/distributions in excess of net investment income		10			—			2			—
Reclassification to (from) capital paid in on shares of beneficial interest from (to) undistributed net realized gain/accumulated net realized loss		3,389			2,269			—			(1	)

*	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, 2017									Year ended October 31, 2016
							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	$	10,788		$	27,044		$	37,832		$	9,026		$	29,527		$	38,553
Class B¹		—			10			10			—			43			43
Class C		617			5,840			6,457			503			6,068			6,571
Class T²		—			—			—
Class F-1		367			993			1,360			300			1,177			1,477
Class F-2		1,329			2,765			4,094			640			1,715			2,355
Class F-3³		—			—			—
Class 529-A		1,465			3,819			5,284			1,081			3,780			4,861
Class 529-B¹		—			3			3			—			11			11
Class 529-C		22			1,317			1,339			59			1,613			1,672
Class 529-E		42			145			187			31			143			174
Class 529-T²		—			—			—
Class 529-F-1		121			269			390			84			243			327
Class R-1		—			59			59			5			73			78
Class R-2		173			1,250			1,423			100			1,043			1,143
Class R-2E		11			25			36			—	⁵		—	⁵		—	⁵
Class R-3		162			573			735			102			519			621
Class R-4		119			296			415			86			276			362
Class R-5E⁴		—	⁵		—	⁵		—	⁵		—	⁵		—	⁵		—	⁵
Class R-5		62			125			187			32			82			114
Class R-6		422			823			1,245			437			1,081			1,518
Total	$	15,700		$	45,356		$	61,056		$	12,486		$	47,394		$	59,880

Growth Portfolio

	Year ended October 31, 2017									Year ended October 31, 2016
							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	$	25,081		$	83,165		$	108,246		$	14,693		$	82,330		$	97,023
Class B¹		—			35			35			—			141			141
Class C		1,607			19,972			21,579			446			19,249			19,695
Class T²		—			—			—
Class F-1		579			2,066			2,645			337			2,139			2,476
Class F-2		2,074			5,800			7,874			981			4,384			5,365
Class F-3³		—			—			—
Class 529-A		3,607			12,636			16,243			1,882			11,480			13,362
Class 529-B¹		—			4			4			—			36			36
Class 529-C		389			4,516			4,905			—			4,000			4,000
Class 529-E		126			598			724			65			585			650
Class 529-T²		—			—			—
Class 529-F-1		347			1,025			1,372			160			815			975
Class R-1		12			237			249			—			263			263
Class R-2		323			3,240			3,563			38			2,584			2,622
Class R-2E		31			126			157			15			65			80
Class R-3		416			1,888			2,304			137			1,429			1,566
Class R-4		315			1,079			1,394			177			966			1,143
Class R-5E⁴		—	⁵		—	⁵		—	⁵		—	⁵		—	⁵		—	⁵
Class R-5		175			465			640			48			205			253
Class R-6		517			1,347			1,864			434			1,780			2,214
Total	$	35,599		$	138,199		$	173,798		$	19,413		$	132,451		$	151,864

34	American Funds Portfolio Series

Growth and Income Portfolio

	Year ended October 31, 2017									Year ended October 31, 2016
							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	$	81,593		$	94,686		$	176,279		$	67,057		$	89,249		$	156,306
Class B¹		6			32			38			40			145			185
Class C		11,596			22,610			34,206			9,124			19,979			29,103
Class T²		—	⁵		—			—	⁵
Class F-1		2,416			2,808			5,224			1,732			2,279			4,011
Class F-2		5,780			5,299			11,079			3,209			3,442			6,651
Class F-3³		154			—			154
Class 529-A		6,948			8,095			15,043			5,233			7,325			12,558
Class 529-B¹		1			6			7			6			23			29
Class 529-C		1,552			3,177			4,729			1,209			3,033			4,242
Class 529-E		292			401			693			241			392			633
Class 529-T²		—	⁵		—			—	⁵
Class 529-F-1		596			621			1,217			432			516			948
Class R-1		74			146			220			76			188			264
Class R-2		1,227			2,234			3,461			848			1,748			2,596
Class R-2E		70			90			160			18			6			24
Class R-3		1,096			1,429			2,525			761			1,109			1,870
Class R-4		1,181			1,364			2,545			846			1,091			1,937
Class R-5E⁴		—	⁵		—	⁵		—	⁵		—	⁵		—	⁵		—	⁵
Class R-5		253			176			429			90			86			176
Class R-6		1,438			1,287			2,725			1,026			1,141			2,167
Total	$	116,273		$	144,461		$	260,734		$	91,948		$	131,752		$	223,700

Balanced Portfolio

	Year ended October 31, 2017									Year ended October 31, 2016
							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	$	59,670		$	63,486		$	123,156		$	44,752		$	55,406		$	100,158
Class B¹		5			22			27			23			89			112
Class C		8,824			17,262			26,086			6,207			14,303			20,510
Class T²		—	⁵		—			—	⁵
Class F-1		2,068			2,335			4,403			1,668			1,812			3,480
Class F-2		5,660			4,690			10,350			2,876			2,641			5,517
Class F-3³		116			—			116
Class 529-A		3,888			4,297			8,185			2,877			3,808			6,685
Class 529-B¹		1			3			4			3			12			15
Class 529-C		955			2,032			2,987			684			1,915			2,599
Class 529-E		148			192			340			104			156			260
Class 529-T²		—	⁵		—			—	⁵
Class 529-F-1		478			446			924			325			363			688
Class R-1		99			214			313			73			189			262
Class R-2		815			1,487			2,302			501			1,145			1,646
Class R-2E		103			65			168			9			—	⁵		9
Class R-3		1,210			1,544			2,754			865			1,304			2,169
Class R-4		1,263			1,234			2,497			987			1,329			2,316
Class R-5E⁴		23			—	⁵		23			—	⁵		—	⁵		—	⁵
Class R-5		286			235			521			197			208			405
Class R-6		3,731			2,792			6,523			1,807			1,651			3,458
Total	$	89,343		$	102,336		$	191,679		$	63,958		$	86,331		$	150,289

See end of tables for footnotes.

American Funds Portfolio Series

Income Portfolio

	Year ended October 31, 2017									Year ended October 31, 2016
							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	$	88,221		$	11,087		$	99,308		$	83,240	$	10,212		$	93,452
Class B¹		5			3			8			60		15			75
Class C		15,142			2,591			17,733			15,423		2,391			17,814
Class T²		—	⁵		—			—	⁵
Class F-1		2,538			333			2,871			2,615		322			2,937
Class F-2		7,000			760			7,760			4,691		566			5,257
Class F-3³		174			—			174
Class 529-A		2,630			332			2,962			2,465		314			2,779
Class 529-B¹		1			—	⁵		1			6		2			8
Class 529-C		1,102			192			1,294			1,155		192			1,347
Class 529-E		169			24			193			180		26			206
Class 529-T²		—	⁵		—			—	⁵
Class 529-F-1		289			36			325			275		29			304
Class R-1		41			8			49			44		7			51
Class R-2		691			113			804			654		104			758
Class R-2E		8			1			9			1		—	⁵		1
Class R-3		774			106			880			645		81			726
Class R-4		1,010			128			1,138			892		103			995
Class R-5E⁴		6			1			7			1		—	⁵		1
Class R-5		178			19			197			132		13			145
Class R-6		964			106			1,070			759		76			835
Total	$	120,943		$	15,840		$	136,783		$	113,238	$	14,453		$	127,691

Tax-Advantaged Income Portfolio

	Year ended October 31, 2017									Year ended October 31, 2016
							Total							Total
							dividends and							dividends and
	Ordinary			Long-term			distributions			Ordinary		Long-term		distributions
Share class	income⁶			capital gains			paid			income⁶		capital gains		paid
Class A	$	26,502		$	8,157		$	34,659		$	20,163	$	4,658	$	24,821
Class B¹		—	⁵		—	⁵		—	⁵		2		1		3
Class C		3,350			1,425			4,775			2,500		738		3,238
Class T²		—	⁵		—			—	⁵
Class F-1		2,054			411			2,465			812		159		971
Class F-2		2,106			557			2,663			1,381		256		1,637
Class F-3³		189			—			189
Total	$	34,201		$	10,550		$	44,751		$	24,858	$	5,812	$	30,670

36	American Funds Portfolio Series

Preservation Portfolio

	Year ended October 31, 2017									Year ended October 31, 2016
							Total
							dividends and								Total
	Ordinary			Long-term			distributions			Ordinary			Long-term		dividends
Share class	income			capital gains			paid			income			capital gains		paid
Class A	$	10,538		$	439		$	10,977		$	7,507		$	—	$	7,507
Class B¹		—	⁵		—	⁵		—	⁵		2			—		2
Class C		865			97			962			581			—		581
Class T²		—	⁵		—			—	⁵
Class F-1		324			15			339			268			—		268
Class F-2		799			27			826			453			—		453
Class F-3³		5			—			5
Class 529-A		940			41			981			695			—		695
Class 529-B¹		—	⁵		—	⁵		—	⁵		—	⁵		—		—	⁵
Class 529-C		160			19			179			85			—		85
Class 529-E		33			2			35			23			—		23
Class 529-T²		—	⁵		—			—	⁵
Class 529-F-1		221			8			229			155			—		155
Class R-1		5			1			6			6			—		6
Class R-2		90			9			99			55			—		55
Class R-2E		19			1			20			11			—		11
Class R-3		151			9			160			108			—		108
Class R-4		128			5			133			86			—		86
Class R-5E⁴		—	⁵		—	⁵		—	⁵		—	⁵		—		—	⁵
Class R-5		30			1			31			13			—		13
Class R-6		188			6			194			128			—		128
Total	$	14,496		$	680		$	15,176		$	10,176		$	—	$	10,176

Tax-Exempt Preservation Portfolio

	Year ended October 31, 2017								Year ended October 31, 2016
						Total								Total
	Ordinary			Long-term		dividends			Ordinary			Long-term		dividends
Share class	income⁶			capital gains		paid			income⁶			capital gains		paid
Class A	$	6,177		$	—	$	6,177		$	5,889		$	—	$	5,889
Class B¹		—	⁵		—		—	⁵		—	⁵		—		—	⁵
Class C		692			—		692			862			—		862
Class T²		—	⁵		—		—	⁵
Class F-1		189			—		189			178			—		178
Class F-2		719			—		719			783			—		783
Class F-3³		9			—		9
Total	$	7,786		$	—	$	7,786		$	7,712		$	—	$	7,712

¹	Class B and 529-B shares were fully liquidated on May 5, 2017.
²	Class T and 529-T shares, as applicable, began investment operations on April 7, 2017.
³	Class F-3 shares began investment operations on January 27, 2017.
⁴	Class R-5E shares began investment operations on November 20, 2015.
⁵	Amount less than one thousand.
⁶	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 — The series has an investment advisory and service agreement with 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.

American Funds Portfolio Series

Miscellaneous fee reimbursements — CRMC reimbursed a portion of miscellaneous 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.

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

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

For Class A and 529-A shares, distribution-related expenses include the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. These share classes reimburse AFD for amounts billed within the prior 15 months but only to the extent that the overall annual expense limits are not exceeded. As of October 31, 2017, 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		28		—
Tax-Exempt Preservation Portfolio		1,031		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. These fees are included in the net effective expense ratios that are provided as supplementary information in the financial highlights tables.

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

38	American Funds Portfolio Series

Class-specific expenses under the agreements described in this section for the year ended October 31, 2017, were as follows (dollars in thousands):

Global Growth Portfolio

	Distribution		Transfer agent		529 plan
Share class	services		services		services
Class A	$2,932		$1,078		Not applicable
Class B¹	2		—	²	Not applicable
Class C	2,517		227		Not applicable
Class T³	—		—	²	Not applicable
Class F-1	111		53		Not applicable
Class F-2	Not applicable		168		Not applicable
Class F-3⁴	—		—	²	Not applicable
Class 529-A	365		170		$120
Class 529-B¹	—	²	—	²	—	²
Class 529-C	594		57		40
Class 529-E	34		4		5
Class 529-T³	—		—	²	—	²
Class 529-F-1	—		12		9
Class R-1	28		3		Not applicable
Class R-2	422		185		Not applicable
Class R-2E	8		2		Not applicable
Class R-3	141		38		Not applicable
Class R-4	34		12		Not applicable
Class R-5E	Not applicable		—	²	Not applicable
Class R-5	Not applicable		3		Not applicable
Class R-6	Not applicable		1		Not applicable
Total class-specific expenses	$7,188		$2,013		$174

Growth Portfolio

	Distribution		Transfer agent		529 plan
Share class	services		services		services
Class A	$6,522		$2,577		Not applicable
Class B¹	4		1		Not applicable
Class C	6,748		610		Not applicable
Class T³	—		—	²	Not applicable
Class F-1	176		85		Not applicable
Class F-2	Not applicable		244		Not applicable
Class F-3⁴	—		—	²	Not applicable
Class 529-A	936		447		$318
Class 529-B¹	—	²	—	²	—	²
Class 529-C	1,586		149		108
Class 529-E	108		11		15
Class 529-T³	—		—	²	—	²
Class 529-F-1	—		39		29
Class R-1	79		7		Not applicable
Class R-2	878		388		Not applicable
Class R-2E	29		9		Not applicable
Class R-3	362		99		Not applicable
Class R-4	99		35		Not applicable
Class R-5E	Not applicable		1		Not applicable
Class R-5	Not applicable		9		Not applicable
Class R-6	Not applicable		1		Not applicable
Total class-specific expenses	$17,527		$4,712		$470

Growth and Income Portfolio

	Distribution	Transfer agent		529 plan
Share class	services	services		services
Class A	$9,980	$3,895		Not applicable
Class B¹	4	1		Not applicable
Class C	10,229	929		Not applicable
Class T³	—	—	²	Not applicable
Class F-1	333	159		Not applicable
Class F-2	Not applicable	314		Not applicable
Class F-3⁴	—	—	²	Not applicable
Class 529-A	822	373		$262
Class 529-B¹	1	—	²	—	²
Class 529-C	1,457	140		100
Class 529-E	93	10		13
Class 529-T³	—	—	²	—	²
Class 529-F-1	—	28		20
Class R-1	67	6		Not applicable
Class R-2	806	354		Not applicable
Class R-2E	30	9		Not applicable
Class R-3	355	97		Not applicable
Class R-4	161	58		Not applicable
Class R-5E	Not applicable	1		Not applicable
Class R-5	Not applicable	6		Not applicable
Class R-6	Not applicable	1		Not applicable
Total class-specific expenses	$24,338	$6,381		$395

Balanced Portfolio

	Distribution	Transfer agent		529 plan
Share class	services	services		services
Class A	$8,538	$3,182		Not applicable
Class B¹	4	1		Not applicable
Class C	9,434	857		Not applicable
Class T³	—	—	²	Not applicable
Class F-1	327	159		Not applicable
Class F-2	Not applicable	335		Not applicable
Class F-3⁴	—	—	²	Not applicable
Class 529-A	571	237		$166
Class 529-B¹	1	—	²	—	²
Class 529-C	1,114	107		76
Class 529-E	52	6		7
Class 529-T³	—	—	²	—	²
Class 529-F-1	—	25		18
Class R-1	105	10		Not applicable
Class R-2	648	285		Not applicable
Class R-2E	52	16		Not applicable
Class R-3	448	121		Not applicable
Class R-4	185	64		Not applicable
Class R-5E	Not applicable	3		Not applicable
Class R-5	Not applicable	7		Not applicable
Class R-6	Not applicable	4		Not applicable
Total class-specific expenses	$21,479	$5,419		$267

See end of tables for footnotes.

American Funds Portfolio Series

Income Portfolio

	Distribution		Transfer agent		529 plan
Share class	services		services		services
Class A	$7,321		$2,628		Not applicable
Class B¹	3		—	²	Not applicable
Class C	6,639		608		Not applicable
Class T³	—		—	²	Not applicable
Class F-1	214		104		Not applicable
Class F-2	Not applicable		242		Not applicable
Class F-3⁴	—		—	²	Not applicable
Class 529-A	212		87		$61
Class 529-B¹	—	²	—	²	—	²
Class 529-C	486		48		34
Class 529-E	31		3		4
Class 529-T³	—		—	²	—	²
Class 529-F-1	—		9		6
Class R-1	19		2		Not applicable
Class R-2	223		97		Not applicable
Class R-2E	2		1		Not applicable
Class R-3	140		38		Not applicable
Class R-4	84		29		Not applicable
Class R-5E	Not applicable		1		Not applicable
Class R-5	Not applicable		3		Not applicable
Class R-6	Not applicable		1		Not applicable
Total class-specific expenses	$15,374		$3,901		$105

Tax-Advantaged Income Portfolio

	Distribution		Transfer agent
Share class	services		services
Class A	$2,807		$916
Class B¹	—	²	—	²
Class C	1,792		161
Class T³	—		—	²
Class F-1	200		89
Class F-2	Not applicable		85
Class F-3⁴	Not applicable		—	²
Total class-specific expenses	$4,799		$1,251

Preservation Portfolio

	Distribution		Transfer agent		529 plan
Share class	services		services		services
Class A	$2,611		$775		Not applicable
Class B¹	1		—	²	Not applicable
Class C	1,651		154		Not applicable
Class T³	—		—	²	Not applicable
Class F-1	65		32		Not applicable
Class F-2	Not applicable		60		Not applicable
Class F-3⁴	—		—	²	Not applicable
Class 529-A	177		76		$53
Class 529-B¹	—	²	—	²	—	²
Class 529-C	348		34		24
Class 529-E	16		2		2
Class 529-T³	—		—	²	—	²
Class 529-F-1	—		14		11
Class R-1	10		1		Not applicable
Class R-2	121		51		Not applicable
Class R-2E	14		5		Not applicable
Class R-3	77		21		Not applicable
Class R-4	25		9		Not applicable
Class R-5E	Not applicable		—	²	Not applicable
Class R-5	Not applicable		1		Not applicable
Class R-6	Not applicable		—²		Not applicable
Total class-specific expenses	$5,116		$1,235		$90

Tax-Exempt Preservation Portfolio

	Distribution		Transfer agent
Share class	services		services
Class A	$966		$293
Class B¹	—	²	—	²
Class C	566		53
Class T³	—		—	²
Class F-1	24		12
Class F-2	Not applicable		37
Class F-3⁴	Not applicable		—	²
Total class-specific expenses	$1,556		$395

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

40	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, includes current fees (either paid in cash or deferred) and a net increase in the value of the deferred amounts as follows (dollars in thousands):

			Increase in value of			Total trustees’
	Current fees		deferred amounts			compensation
Global Growth Portfolio		$13		$—	*		$13
Growth Portfolio		31		1			32
Growth and Income Portfolio		43		1			44
Balanced Portfolio		37		1			38
Income Portfolio		27		1			28
Tax-Advantaged Income Portfolio		9		—	*		9
Preservation Portfolio		8		—	*		8
Tax-Exempt Preservation Portfolio		3		—	*		3

*Amount less than one thousand.

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, 2017, as follows (dollars in thousands):

	Purchases		Sales
Global Growth Portfolio	$	1,713,053	$	1,330,583
Growth Portfolio		2,326,738		1,627,511
Growth and Income Portfolio		2,830,389		2,018,673
Balanced Portfolio		1,830,506		874,146
Income Portfolio		492,576		46,562
Tax-Advantaged Income Portfolio		635,169		178,372
Preservation Portfolio		538,585		321,955
Tax-Exempt Preservation Portfolio		188,716		195,416

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

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

Year ended October 31, 2017

Class A	$	354,909		22,648		$	37,638			2,727		$	(242,404	)		(15,891	)	$	150,143			9,484
Class B²		9		—			11			1			(626	)		(43	)		(606	)		(42	)
Class C		71,152		4,624			6,439			472			(59,814	)		(3,974	)		17,777			1,122
Class T³		10		1			—			—			—			—			10			1
Class F-1		29,543		1,855			1,360			98			(22,218	)		(1,440	)		8,685			513
Class F-2		146,270		9,178			4,041			292			(39,394	)		(2,537	)		110,917			6,933
Class F-3⁴		14,415		885			—			—			(278	)		(17	)		14,137			868
Class 529-A		49,676		3,198			5,284			383			(19,235	)		(1,265	)		35,725			2,316
Class 529-B²		2		—	⁵		3			—	⁵		(135	)		(9	)		(130	)		(9	)
Class 529-C		13,592		891			1,338			98			(11,328	)		(784	)		3,602			205
Class 529-E		2,037		132			187			14			(475	)		(31	)		1,749			115
Class 529-T³		10		1			—			—			—			—			10			1
Class 529-F-1		5,634		360			390			28			(1,954	)		(127	)		4,070			261
Class R-1		1,424		94			57			4			(1,583	)		(107	)		(102	)		(9	)
Class R-2		25,724		1,694			1,424			104			(18,147	)		(1,192	)		9,001			606
Class R-2E		456		29			36			3			(235	)		(14	)		257			18
Class R-3		13,846		902			734			53			(6,714	)		(440	)		7,866			515
Class R-4		7,946		520			415			30			(4,339	)		(284	)		4,022			266
Class R-5E		—		—			—			—			—			—			—			—
Class R-5		3,396		217			187			14			(1,318	)		(81	)		2,265			150
Class R-6		13,632		860			1,244			90			(6,120	)		(391	)		8,756			559
Total net increase (decrease)	$	753,683		48,089		$	60,788			4,411		$	(436,317	)		(28,627	)	$	378,154			23,873

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			—	⁵		(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			—	⁵		—	⁵		—	⁵		—	⁵		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-5E⁶		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

42	American Funds Portfolio Series

Growth Portfolio

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

Year ended October 31, 2017

Class A	$	769,267		47,161	$	107,885		7,212		$	(544,326	)		(33,520	)	$	332,826			20,853
Class B²		138		9		35		2			(1,594	)		(103	)		(1,421	)		(92	)
Class C		184,736		11,534		21,529		1,458			(160,575	)		(10,019	)		45,690			2,973
Class T³		10		1		—		—			—			—			10			1
Class F-1		36,159		2,227		2,637		176			(33,393	)		(2,041	)		5,403			362
Class F-2		166,457		10,014		7,796		520			(87,373	)		(5,279	)		86,880			5,255
Class F-3⁴		23,509		1,346		—		—			(672	)		(39	)		22,837			1,307
Class 529-A		131,040		8,030		16,240		1,086			(36,224	)		(2,202	)		111,056			6,914
Class 529-B²		4		1		4		—	⁵		(212	)		(14	)		(204	)		(13	)
Class 529-C		40,697		2,581		4,905		332			(15,502	)		(959	)		30,100			1,954
Class 529-E		5,267		325		724		49			(1,473	)		(91	)		4,518			283
Class 529-T³		10		1		—		—			—			—			10			1
Class 529-F-1		21,699		1,329		1,372		91			(4,706	)		(293	)		18,365			1,127
Class R-1		3,223		200		245		16			(2,892	)		(181	)		576			35
Class R-2		52,592		3,275		3,562		241			(31,865	)		(1,968	)		24,289			1,548
Class R-2E		1,523		96		157		11			(658	)		(40	)		1,022			67
Class R-3		34,767		2,151		2,304		155			(17,076	)		(1,041	)		19,995			1,265
Class R-4		18,472		1,138		1,394		93			(9,932	)		(619	)		9,934			612
Class R-5E		5,593		319		—		—			(47	)		(3	)		5,546			316
Class R-5		11,638		718		640		42			(3,258	)		(196	)		9,020			564
Class R-6		20,032		1,225		1,864		124			(9,186	)		(558	)		12,710			791
Total net increase (decrease)	$	1,526,833		93,681	$	173,293		11,608		$	(960,964	)		(59,166	)	$	739,162			46,123

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-5E⁶		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

See end of tables for footnotes.

American Funds Portfolio Series

Growth and Income Portfolio

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

Year ended October 31, 2017

Class A	$	990,035		70,555	$	175,030			12,993		$	(787,644	)		(56,250	)	$	377,421			27,298
Class B²		50		4		37			3			(2,040	)		(150	)		(1,953	)		(143	)
Class C		257,775		18,532		34,030			2,562			(227,870	)		(16,332	)		63,935			4,762
Class T³		10		1		—			—			—			—			10			1
Class F-1		69,271		4,932		5,119			380			(51,963	)		(3,668	)		22,427			1,644
Class F-2		228,345		16,159		10,891			803			(93,931	)		(6,668	)		145,305			10,294
Class F-3⁴		29,893		2,070		154			11			(3,241	)		(223	)		26,806			1,858
Class 529-A		89,670		6,398		15,040			1,117			(41,240	)		(2,933	)		63,470			4,582
Class 529-B²		40		3		7			—			(375	)		(27	)		(328	)		(24	)
Class 529-C		28,467		2,047		4,726			356			(20,246	)		(1,440	)		12,947			963
Class 529-E		4,969		352		692			52			(3,992	)		(281	)		1,669			123
Class 529-T³		10		1		—	⁵		—	⁵		—			—			10			1
Class 529-F-1		10,474		748		1,215			90			(6,015	)		(426	)		5,674			412
Class R-1		2,834		202		219			16			(2,555	)		(183	)		498			35
Class R-2		43,402		3,115		3,461			261			(28,148	)		(2,009	)		18,715			1,367
Class R-2E		4,258		300		160			12			(986	)		(71	)		3,432			241
Class R-3		32,384		2,318		2,525			188			(21,290	)		(1,522	)		13,619			984
Class R-4		22,379		1,597		2,545			189			(13,801	)		(989	)		11,123			797
Class R-5E		3,934		267		—			—			(187	)		(13	)		3,747			254
Class R-5		11,995		850		429			31			(2,428	)		(171	)		9,996			710
Class R-6		32,317		2,297		2,725			201			(13,392	)		(945	)		21,650			1,553
Total net increase (decrease)	$	1,862,512		132,748	$	259,005			19,265		$	(1,321,344	)		(94,301	)	$	800,173			57,712

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-5E⁶		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

44	American Funds Portfolio Series

Balanced Portfolio

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

Year ended October 31, 2017

Class A	$	992,328		70,776	$	122,304			9,099		$	(636,302	)		(45,721	)	$	478,330			34,154
Class B²		86		6		27			2			(1,839	)		(136	)		(1,726	)		(128	)
Class C		240,742		17,331		25,924			1,957			(201,841	)		(14,554	)		64,825			4,734
Class T³		10		1		—			—			—			—			10			1
Class F-1		66,750		4,794		4,377			326			(82,217	)		(5,944	)		(11,090	)		(824	)
Class F-2		243,254		17,258		10,127			747			(107,674	)		(7,618	)		145,707			10,387
Class F-3⁴		45,539		3,136		116			8			(2,537	)		(177	)		43,118			2,967
Class 529-A		70,339		5,018		8,183			609			(37,841	)		(2,710	)		40,681			2,917
Class 529-B²		16		1		3			—	⁵		(263	)		(19	)		(244	)		(18	)
Class 529-C		27,420		1,970		2,987			225			(22,394	)		(1,609	)		8,013			586
Class 529-E		2,731		195		340			25			(2,540	)		(181	)		531			39
Class 529-T³		10		1		—	⁵		—	⁵		—			—			10			1
Class 529-F-1		12,929		923		923			69			(7,588	)		(544	)		6,264			448
Class R-1		4,180		303		313			24			(5,411	)		(391	)		(918	)		(64	)
Class R-2		38,238		2,754		2,296			173			(24,570	)		(1,774	)		15,964			1,153
Class R-2E		14,623		1,054		169			12			(3,126	)		(230	)		11,666			836
Class R-3		36,587		2,609		2,739			205			(24,202	)		(1,738	)		15,124			1,076
Class R-4		54,293		3,895		2,497			185			(26,536	)		(1,895	)		30,254			2,185
Class R-5E		6,954		492		23			2			(450	)		(32	)		6,527			462
Class R-5		9,421		671		519			38			(3,912	)		(281	)		6,028			428
Class R-6		151,431		10,809		6,522			480			(64,888	)		(4,594	)		93,065			6,695
Total net increase (decrease)	$	2,017,881		143,997	$	190,389			14,186		$	(1,256,131	)		(90,148	)	$	952,139			68,035

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			—	⁵		(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-5E⁶		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

See end of tables for footnotes.

American Funds Portfolio Series

Income Portfolio

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

Year ended October 31, 2017

Class A	$	697,268		57,326		$	97,120			8,025		$	(495,993	)		(40,746	)	$	298,395			24,605
Class B²		22		2			8			—	⁵		(1,158	)		(96	)		(1,128	)		(94	)
Class C		143,339		11,845			17,503			1,455			(148,117	)		(12,221	)		12,725			1,079
Class T³		10		1			—			—			—			—			10			1
Class F-1		31,206		2,562			2,819			233			(35,374	)		(2,909	)		(1,349	)		(114	)
Class F-2		147,523		12,063			7,643			630			(82,352	)		(6,726	)		72,814			5,967
Class F-3⁴		20,646		1,664			168			13			(1,352	)		(108	)		19,462			1,569
Class 529-A		30,923		2,529			2,960			245			(21,004	)		(1,721	)		12,879			1,053
Class 529-B²		2		—	⁵		1			—	⁵		(111	)		(9	)		(108	)		(9	)
Class 529-C		14,184		1,167			1,294			108			(13,255	)		(1,093	)		2,223			182
Class 529-E		1,462		119			193			16			(1,337	)		(110	)		318			25
Class 529-T³		10		1			—	⁵		—	⁵		—			—			10			1
Class 529-F-1		3,343		273			325			27			(3,942	)		(326	)		(274	)		(26	)
Class R-1		844		70			49			4			(782	)		(65	)		111			9
Class R-2		10,574		873			801			66			(8,448	)		(694	)		2,927			245
Class R-2E		60		5			9			1			(134	)		(11	)		(65	)		(5	)
Class R-3		12,579		1,031			880			73			(9,697	)		(795	)		3,762			309
Class R-4		9,130		752			1,139			94			(7,547	)		(624	)		2,722			222
Class R-5E		3,155		253			6			—	⁵		(295	)		(23	)		2,866			230
Class R-5		3,148		257			197			16			(1,144	)		(94	)		2,201			179
Class R-6		14,869		1,220			1,070			88			(10,364	)		(847	)		5,575			461
Total net increase (decrease)	$	1,144,297		94,013		$	134,185			11,094		$	(842,406	)		(69,218	)	$	436,076			35,889

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			—	⁵		—	⁵		—			—			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-5E⁶		85		7			1			—	⁵		—			—			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

46	American Funds Portfolio Series

Tax-Advantaged Income Portfolio

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

Year ended October 31, 2017

Class A	$	334,689		25,763	$	34,210			2,673		$	(113,511	)		(8,787	)	$	255,388			19,649
Class B²		—		—		—	⁵		—	⁵		(43	)		(3	)		(43	)		(3	)
Class C		69,161		5,343		4,701			370			(30,606	)		(2,373	)		43,256			3,340
Class T³		10		1		—			—			—			—			10			1
Class F-1		118,716		9,129		2,461			190			(32,903	)		(2,546	)		88,274			6,773
Class F-2		59,377		4,554		2,606			203			(29,226	)		(2,253	)		32,757			2,504
Class F-3⁴		21,757		1,643		174			13			(1,758	)		(132	)		20,173			1,524
Total net increase (decrease)	$	603,710		46,433	$	44,152			3,449		$	(208,047	)		(16,094	)	$	439,815			33,788

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

See end of tables for footnotes.

American Funds Portfolio Series

Preservation Portfolio

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

Year ended October 31, 2017

Class A	$	555,832		56,005		$	10,911			1,103		$	(371,604	)		(37,479	)	$	195,139			19,629
Class B²		10		1			1			—	⁵		(379	)		(38	)		(368	)		(37	)
Class C		53,406		5,392			950			97			(72,543	)		(7,328	)		(18,187	)		(1,839	)
Class T³		10		1			—			—			—			—			10			1
Class F-1		12,929		1,302			333			34			(14,463	)		(1,457	)		(1,201	)		(121	)
Class F-2		49,294		4,965			815			82			(30,661	)		(3,093	)		19,448			1,954
Class F-3⁴		734		74			5			—	⁵		(12	)		(1	)		727			73
Class 529-A		34,854		3,512			982			99			(26,252	)		(2,648	)		9,584			963
Class 529-B²		10		1			—	⁵		—	⁵		(120	)		(12	)		(110	)		(11	)
Class 529-C		14,628		1,476			178			18			(12,599	)		(1,272	)		2,207			222
Class 529-E		1,648		166			34			4			(1,105	)		(112	)		577			58
Class 529-T³		10		1			—	⁵		—	⁵		—			—			10			1
Class 529-F-1		9,187		927			229			23			(5,939	)		(599	)		3,477			351
Class R-1		426		43			6			1			(1,357	)		(137	)		(925	)		(93	)
Class R-2		6,865		694			99			10			(8,600	)		(870	)		(1,636	)		(166	)
Class R-2E		1,241		124			21			2			(2,280	)		(230	)		(1,018	)		(104	)
Class R-3		8,575		866			160			16			(7,526	)		(760	)		1,209			122
Class R-4		4,852		489			133			13			(4,022	)		(406	)		963			96
Class R-5E		1		—	⁵		—	⁵		—			—			—			1			—	⁵
Class R-5		3,085		310			31			3			(1,030	)		(104	)		2,086			209
Class R-6		11,274		1,133			193			19			(7,407	)		(747	)		4,060			405
Total net increase (decrease)	$	768,871		77,482		$	15,081			1,524		$	(567,899	)		(57,293	)	$	216,053			21,713

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-5E⁶		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

48	American Funds Portfolio Series

Tax-Exempt Preservation Portfolio

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

Year ended October 31, 2017

Class A	$	145,055		14,886	$	6,027			619		$	(149,376	)		(15,353	)	$	1,706			152
Class B²		—		—		—	⁵		—	⁵		(21	)		(2	)		(21	)		(2	)
Class C		14,941		1,533		680			70			(25,454	)		(2,618	)		(9,833	)		(1,015	)
Class T³		10		1		—			—			—			—			10			1
Class F-1		4,962		507		184			19			(5,169	)		(530	)		(23	)		(4	)
Class F-2		25,182		2,576		671			69			(25,610	)		(2,623	)		243			22
Class F-3⁴		1,593		162		8			1			(276	)		(28	)		1,325			135
Total net increase (decrease)	$	191,743		19,665	$	7,570			778		$	(205,906	)		(21,154	)	$	(6,593	)		(711	)

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

¹	Includes exchanges between share classes of the fund.
²	Class B and 529-B shares were fully liquidated on May 5, 2017.
³	Class T and 529-T shares, as applicable, began investment operations on April 7, 2017.
⁴	Class F-3 shares began investment operations on January 27, 2017.
⁵	Amount less than one thousand.
⁶	Class R-5E shares began investment operations on November 20, 2015.

American Funds Portfolio Series

Financial highlights

Global Growth Portfolio

			Income (loss) from investment operations¹							Dividends and distributions																	Ratio of expenses to			Ratio of expenses to
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)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)			average net assets before waivers/ reimburse- ments⁴			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:
10/31/17	$	14.29	$	.16	$	3.44		$	3.60	$	(.15	)	$	(.37	)	$	(.52	)	$	17.37		26.05	%	$	1,471			.35	%		.35	%		.79	%		1.02	%
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
Class C:
10/31/17		14.05		.04		3.40			3.44		(.04	)		(.37	)		(.41	)		17.08		25.16			295			1.11			1.11			1.55			.28
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
Class T:
10/31/17^6,7		15.06		.05		2.29			2.34		—			—			—			17.40		15.54	^8,9		—	¹⁰		.12	^9,11		.12	^9,11		.56	^9,11		.52	^9,11
Class F-1:
10/31/17		14.30		.15		3.45			3.60		(.14	)		(.37	)		(.51	)		17.39		26.01			58			.39			.39			.83			.99
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
Class F-2:
10/31/17		14.34		.17		3.48			3.65		(.18	)		(.37	)		(.55	)		17.44		26.37			249			.13			.13			.57			1.10
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
Class F-3:
10/31/17^6,12		14.50		.06		2.85			2.91		—			—			—			17.41		20.07	⁸		15			.02	¹¹		.02	¹¹		.46	¹¹		.51	¹¹

50	American Funds Portfolio Series

Global Growth Portfolio

			Income (loss) from investment operations¹									Dividends and distributions																	Ratio of expenses to			Ratio of expenses to
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)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)			average net assets before waivers/ reimburse- ments⁴			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-A:
10/31/17	$	14.27	$	.15		$	3.44		$	3.59		$	(.14	)	$	(.37	)	$	(.51	)	$	17.35		26.04	%	$	218			.40	%		.40	%		.84	%		.96	%
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
Class 529-C:
10/31/17		14.03		.03			3.40			3.43			(.01	)		(.37	)		(.38	)		17.08		25.05			71			1.19			1.19			1.63			.17
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		—	¹³		.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	)
Class 529-E:
10/31/17		14.19		.11			3.42			3.53			(.10	)		(.37	)		(.47	)		17.25		25.71			9			.64			.64			1.08			.69
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
Class 529-T:
10/31/17^6,7		15.06		.04			2.29			2.33			—			—			—			17.39		15.47	^8,9		—	¹⁰		.19	^9,11		.19	^9,11		.63	^9,11		.45	^9,11
Class 529-F-1:
10/31/17		14.32		.18			3.45			3.63			(.17	)		(.37	)		(.54	)		17.41		26.25			17			.18			.18			.62			1.15
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
Class R-1:
10/31/17		14.08		.03			3.42			3.45			—			(.37	)		(.37	)		17.16		25.12			3			1.12			1.12			1.56			.19
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

See end of tables for footnotes.

American Funds Portfolio Series

Financial highlights (continued)

Global Growth Portfolio

			Income (loss) from investment operations¹									Dividends and distributions																	Ratio of expenses to			Ratio of expenses to
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)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)			average net assets before waivers/ reimburse- ments⁴			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 R-2:
10/31/17	$	14.03	$	.04		$	3.38		$	3.42		$	(.05	)	$	(.37	)	$	(.42	)	$	17.03		25.10	%	$	67			1.10	%		1.10	%		1.54	%		.26	%
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		—	¹³		.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	)
Class R-2E:
10/31/17		14.27		.08			3.43			3.51			(.17	)		(.37	)		(.54	)		17.24		25.48			1			.81			.81			1.25			.49
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	⁹		—	¹⁰		.38	⁹		.27	⁹		.76	⁹		1.18	⁹
10/31/14^6,14		15.02		.01			(.21	)		(.20	)		—			—			—			14.82		(1.33	)^8,9		—	¹⁰		.06	^8,9		.04	^8,9		.53	^8,9		.09	^8,9
Class R-3:
10/31/17		14.19		.10			3.42			3.52			(.10	)		(.37	)		(.47	)		17.24		25.64			36			.66			.66			1.10			.65
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
Class R-4:
10/31/17		14.27		.15			3.44			3.59			(.15	)		(.37	)		(.52	)		17.34		26.03			17			.36			.36			.80			1.00
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
Class R-5E:
10/31/17		14.26		.20			3.44			3.64			(.16	)		(.37	)		(.53	)		17.37		26.42			—	¹⁰		.17			.10			.54			1.33
10/31/16^6,15		14.71		.17			(.03	)		.14			(.17	)		(.42	)		(.59	)		14.26		1.03	⁸		—	¹⁰		.27	¹¹		.25	¹¹		.74	¹¹		1.32	¹¹
Class R-5:
10/31/17		14.40		.20			3.47			3.67			(.18	)		(.37	)		(.55	)		17.52		26.46			8			.07			.07			.51			1.25
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			—	¹³		.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
Class R-6:
10/31/17		14.43		.21			3.47			3.68			(.19	)		(.37	)		(.56	)		17.55		26.45			49			.03			.03			.47			1.31
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

52	American Funds Portfolio Series

Growth Portfolio

			Income (loss) from investment operations¹							Dividends and distributions																	Ratio of expenses to			Ratio of expenses to
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)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)			average net assets before waivers/ reimburse- ments⁴			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:
10/31/17	$	15.21	$	.16		$	3.41	$	3.57	$	(.15	)	$	(.50	)	$	(.65	)	$	18.13		24.39	%	$	3,364			.33	%		.33	%		.72	%		.97	%
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
Class C:
10/31/17		14.94		.03			3.35		3.38		(.04	)		(.50	)		(.54	)		17.78		23.37			761			1.11			1.11			1.50			.20
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	)
Class T:
10/31/17^6,7		16.00		.04			2.11		2.15		—			—			—			18.15		13.44	^8,9		—	¹⁰		.11	^9,11		.11	^9,11		.50	^9,11		.45	^9,11
Class F-1:
10/31/17		15.20		.15			3.40		3.55		(.14	)		(.50	)		(.64	)		18.11		24.25			78			.39			.39			.78			.93
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
Class F-2:
10/31/17		15.27		.18			3.44		3.62		(.18	)		(.50	)		(.68	)		18.21		24.66			294			.13			.13			.52			1.11
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
Class F-3:
10/31/17^6,12		15.59		.06			2.52		2.58		—			—			—			18.17		16.55	⁸		24			.02	¹¹		.02	¹¹		.41	¹¹		.46	¹¹

See end of tables for footnotes.

American Funds Portfolio Series

Financial highlights (continued)

Growth Portfolio

			Income (loss) from investment operations¹							Dividends and distributions																	Ratio of expenses to			Ratio of expenses to
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)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)			average net assets before waivers/ reimburse- ments⁴			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-A:
10/31/17	$	15.19	$	.14		$	3.42	$	3.56	$	(.14	)	$	(.50	)	$	(.64	)	$	18.11		24.36	%	$	567			.38	%		.38	%		.77	%		.87	%
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
Class 529-C:
10/31/17		14.94		.02			3.35		3.37		(.04	)		(.50	)		(.54	)		17.77		23.32			184			1.18			1.18			1.57			.10
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		—	¹³		(.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	)
Class 529-E:
10/31/17		15.09		.10			3.40		3.50		(.11	)		(.50	)		(.61	)		17.98		24.01			26			.64			.64			1.03			.63
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
Class 529-T:
10/31/17^6,7		16.00		.04			2.10		2.14		—			—			—			18.14		13.38	^8,9		—	¹⁰		.18	^9,11		.18	^9,11		.57	^9,11		.38	^9,11
Class 529-F-1:
10/31/17		15.25		.17			3.43		3.60		(.17	)		(.50	)		(.67	)		18.18		24.55			56			.18			.18			.57			1.01
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
Class R-1:
10/31/17		15.00		.03			3.37		3.40		(.03	)		(.50	)		(.53	)		17.87		23.36			9			1.11			1.11			1.50			.21
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

54	American Funds Portfolio Series

Growth Portfolio

			Income (loss) from investment operations¹									Dividends and distributions																	Ratio of expenses to			Ratio of expenses to
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)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)			average net assets before waivers/ reimburse- ments⁴			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 R-2:
10/31/17	$	14.95	$	.03		$	3.35		$	3.38		$	(.05	)	$	(.50	)	$	(.55	)	$	17.78		23.36	%	$	139			1.10	%		1.10	%		1.49	%		.16	%
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	)
Class R-2E:
10/31/17		15.08		.07			3.38			3.45			(.12	)		(.50	)		(.62	)		17.91		23.76			6			.81			.81			1.20			.42
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	⁹		—	¹⁰		.52	⁹		.42	⁹		.85	⁹		.48	⁹
10/31/14^6,14		15.54		.01			(.19	)		(.18	)		—			—			—			15.36		(1.16	)^8,9		—	¹⁰		.06	^8,9		.04	^8,9		.47	^8,9		.06	^8,9
Class R-3:
10/31/17		15.11		.09			3.40			3.49			(.11	)		(.50	)		(.61	)		17.99		23.95			88			.66			.66			1.05			.58
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
Class R-4:
10/31/17		15.18		.15			3.42			3.57			(.15	)		(.50	)		(.65	)		18.10		24.40			48			.36			.36			.75			.91
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
Class R-5E:
10/31/17		15.18		(.02	)		3.63			3.61			(.16	)		(.50	)		(.66	)		18.13		24.71			6			.17			.17			.56			(.14	)
10/31/16^6,15		15.52		.12			.28			.40			(.14	)		(.60	)		(.74	)		15.18		2.73	⁸		—	¹⁰		.26	¹¹		.25	¹¹		.69	¹¹		.89	¹¹
Class R-5:
10/31/17		15.33		.20			3.44			3.64			(.19	)		(.50	)		(.69	)		18.28		24.70			22			.07			.07			.46			1.21
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
Class R-6:
10/31/17		15.30		.20			3.44			3.64			(.19	)		(.50	)		(.69	)		18.25		24.79			63			.02			.02			.41			1.21
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

See end of tables for footnotes.

American Funds Portfolio Series

Financial highlights (continued)

Growth and Income Portfolio

			Income (loss) from investment operations¹								Dividends and distributions																	Ratio of expenses to			Ratio of expenses to
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)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)			average net assets before waivers/ reimburse- ments⁴			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:
10/31/17	$	13.36	$	.27	$	2.02		$	2.29		$	(.27	)	$	(.32	)	$	(.59	)	$	15.06		17.69	%	$	4,836			.33	%		.33	%		.66	%		1.91	%
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
Class C:
10/31/17		13.28		.16		2.01			2.17			(.16	)		(.32	)		(.48	)		14.97		16.84			1,111			1.11			1.11			1.44			1.15
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
Class T:
10/31/17^6,7		13.85		.14		1.19			1.33			(.12	)		—			(.12	)		15.06		9.67	^8,9		—	¹⁰		.11	^9,11		.11	^9,11		.44	^9,11		1.66	^9,11
Class F-1:
10/31/17		13.35		.26		2.03			2.29			(.26	)		(.32	)		(.58	)		15.06		17.72			150			.39			.39			.72			1.87
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
Class F-2:
10/31/17		13.37		.29		2.04			2.33			(.30	)		(.32	)		(.62	)		15.08		18.00			385			.13			.13			.46			2.08
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
Class F-3:
10/31/17^6,12		13.57		.19		1.50			1.69			(.19	)		—			(.19	)		15.07		12.57	⁸		28			.02	¹¹		.02	¹¹		.35	¹¹		1.74	¹¹

56	American Funds Portfolio Series

Growth and Income Portfolio

			Income (loss) from investment operations¹								Dividends and distributions																	Ratio of expenses to			Ratio of expenses to
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)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)			average net assets before waivers/ reimburse- ments⁴			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-A:
10/31/17	$	13.35	$	.26	$	2.02		$	2.28		$	(.26	)	$	(.32	)	$	(.58	)	$	15.05		17.64	%	$	439			.39	%		.39	%		.72	%		1.85	%
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
Class 529-C:
10/31/17		13.29		.15		2.01			2.16			(.15	)		(.32	)		(.47	)		14.98		16.75			159			1.18			1.18			1.51			1.07
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
Class 529-E:
10/31/17		13.33		.23		2.00			2.23			(.22	)		(.32	)		(.54	)		15.02		17.31			21			.64			.64			.97			1.61
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
Class 529-T:
10/31/17^6,7		13.85		.13		1.20			1.33			(.12	)		—			(.12	)		15.06		9.63	^8,9		—	¹⁰		.18	^9,11		.18	^9,11		.51	^9,11		1.59	^9,11
Class 529-F-1:
10/31/17		13.36		.29		2.03			2.32			(.29	)		(.32	)		(.61	)		15.07		17.95			34			.18			.18			.51			2.05
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
Class R-1:
10/31/17		13.30		.16		2.02			2.18			(.16	)		(.32	)		(.48	)		15.00		16.86			8			1.11			1.11			1.44			1.13
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

See end of tables for footnotes.

American Funds Portfolio Series

Financial highlights (continued)

Growth and Income Portfolio

			Income (loss) from investment operations¹								Dividends and distributions																	Ratio of expenses to			Ratio of expenses to
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)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)			average net assets before waivers/ reimburse- ments⁴			average net assets after waivers/ reimburse- ments^3,4			Net effective expense ratio^3,5			Ratio of net income to average net assets³
Class R-2:
10/31/17	$	13.27	$	.16	$	2.01		$	2.17		$	(.16	)	$	(.32	)	$	(.48	)	$	14.96		16.88	%	$	122			1.10	%		1.10	%		1.43	%		1.14	%
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
Class R-2E:
10/31/17		13.33		.20		2.02			2.22			(.21	)		(.32	)		(.53	)		15.02		17.17			8			.80			.80			1.13			1.44
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	⁹		—	¹⁰		.36	⁹		.25	⁹		.62	⁹		2.07	⁹
10/31/14^6,14		13.91		.06		(.11	)		(.05	)		(.06	)		—			(.06	)		13.80		(.34	)^8,9		—	¹⁰		.06	^8,9		.04	^8,9		.41	^8,9		.44	^8,9
Class R-3:
10/31/17		13.31		.22		2.02			2.24			(.22	)		(.32	)		(.54	)		15.01		17.39			82			.65			.65			.98			1.58
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
Class R-4:
10/31/17		13.35		.26		2.02			2.28			(.26	)		(.32	)		(.58	)		15.05		17.68			74			.36			.36			.69			1.88
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
Class R-5E:
10/31/17		13.34		.02		2.31			2.33			(.30	)		(.32	)		(.62	)		15.05		18.06			4			.17			.16			.49			.12
10/31/16^6,15		13.41		.28		.26			.54			(.26	)		(.35	)		(.61	)		13.34		4.20	⁸		—	¹⁰		.25	¹¹		.24	¹¹		.61	¹¹		2.28	¹¹
Class R-5:
10/31/17		13.40		.30		2.03			2.33			(.30	)		(.32	)		(.62	)		15.11		18.03			18			.07			.07			.40			2.08
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
Class R-6:
10/31/17		13.38		.31		2.03			2.34			(.31	)		(.32	)		(.63	)		15.09		18.11			83			.02			.02			.35			2.19
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

58	American Funds Portfolio Series

Balanced Portfolio

			Income (loss) from investment operations¹						Dividends and distributions																	Ratio of expenses to			Ratio of expenses to
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)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)			average net assets before waivers/ reimburse- ments⁴			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:
10/31/17	$	13.38	$	.23	$	1.75	$	1.98	$	(.24	)	$	(.26	)	$	(.50	)	$	14.86		15.23	%	$	4,073			.35	%		.35	%		.73	%		1.68	%
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
Class C:
10/31/17		13.30		.13		1.73		1.86		(.13	)		(.26	)		(.39	)		14.77		14.38			1,032			1.11			1.11			1.49			.92
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
Class T:
10/31/17^6,7		13.76		.13		1.10		1.23		(.12	)		—			(.12	)		14.87		8.96	^8,9		—	¹⁰		.11	^9,11		.11	^9,11		.49	^9,11		1.59	^9,11
Class F-1:
10/31/17		13.38		.23		1.74		1.97		(.23	)		(.26	)		(.49	)		14.86		15.15			140			.39			.39			.77			1.61
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
Class F-2:
10/31/17		13.40		.26		1.75		2.01		(.27	)		(.26	)		(.53	)		14.88		15.45			401			.13			.13			.51			1.87
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
Class F-3:
10/31/17^6,12		13.48		.17		1.38		1.55		(.16	)		—			(.16	)		14.87		11.58	⁸		44			.02	¹¹		.02	¹¹		.40	¹¹		1.55	¹¹

See end of tables for footnotes.

American Funds Portfolio Series

Financial highlights (continued)

Balanced Portfolio

			Income (loss) from investment operations¹						Dividends and distributions																	Ratio of expenses to			Ratio of expenses to
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)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)			average net assets before waivers/ reimburse- ments⁴			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-A:
10/31/17	$	13.38	$	.22	$	1.75	$	1.97	$	(.23	)	$	(.26	)	$	(.49	)	$	14.86		15.14	%	$	280			.42	%		.42	%		.80	%		1.60	%
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
Class 529-C:
10/31/17		13.32		.12		1.73		1.85		(.12	)		(.26	)		(.38	)		14.79		14.27			122			1.18			1.18			1.56			.84
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
Class 529-E:
10/31/17		13.36		.19		1.74		1.93		(.20	)		(.26	)		(.46	)		14.83		14.88			11			.64			.64			1.02			1.40
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
Class 529-T:
10/31/17^6,7		13.76		.12		1.10		1.22		(.11	)		—			(.11	)		14.87		8.92	^8,9		—	¹⁰		.18	^9,11		.18	^9,11		.56	^9,11		1.52	^9,11
Class 529-F-1:
10/31/17		13.39		.26		1.75		2.01		(.26	)		(.26	)		(.52	)		14.88		15.46			31			.18			.18			.56			1.84
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
Class R-1:
10/31/17		13.33		.13		1.73		1.86		(.13	)		(.26	)		(.39	)		14.80		14.32			10			1.11			1.11			1.49			.94
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

60	American Funds Portfolio Series

Balanced Portfolio

			Income (loss) from investment operations¹								Dividends and distributions																	Ratio of expenses to			Ratio of expenses to
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)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)			average net assets before waivers/ reimburse- ments⁴			average net assets after waivers/ reimburse- ments^3,4			Net effective expense ratio^3,5			Ratio of net income to average net assets³
Class R-2:
10/31/17	$	13.31	$	.13	$	1.73		$	1.86		$	(.13	)	$	(.26	)	$	(.39	)	$	14.78		14.39	%	$	100			1.09	%		1.09	%		1.47	%		.92	%
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
Class R-2E:
10/31/17		13.36		.15		1.76			1.91			(.19	)		(.26	)		(.45	)		14.82		14.74			16			.80			.80			1.18			1.08
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	⁹		—	¹⁰		.35	⁹		.25	⁹		.63	⁹		1.61	⁹
10/31/14^6,14		13.37		.04		(.05	)		(.01	)		(.05	)		—			(.05	)		13.31		(.10	)^8,9		—	¹⁰		.06	^8,9		.04	^8,9		.38	^8,9		.31	^8,9
Class R-3:
10/31/17		13.35		.19		1.74			1.93			(.19	)		(.26	)		(.45	)		14.83		14.91			105			.65			.65			1.03			1.36
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
Class R-4:
10/31/17		13.38		.23		1.75			1.98			(.24	)		(.26	)		(.50	)		14.86		15.24			94			.35			.35			.73			1.67
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
Class R-5E:
10/31/17		13.38		.17		1.83			2.00			(.25	)		(.26	)		(.51	)		14.87		15.41			7			.16			.16			.54			1.22
10/31/16^6,15		13.44		.20		.23			.43			(.22	)		(.27	)		(.49	)		13.38		3.38	⁸		—	¹⁰		.26	¹¹		.25	¹¹		.63	¹¹		1.60	¹¹
Class R-5:
10/31/17		13.41		.27		1.74			2.01			(.27	)		(.26	)		(.53	)		14.89		15.50			19			.07			.07			.45			1.93
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
Class R-6:
10/31/17		13.40		.28		1.75			2.03			(.28	)		(.26	)		(.54	)		14.89		15.64			253			.02			.02			.40			1.96
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

See end of tables for footnotes.

American Funds Portfolio Series

Financial highlights (continued)

Income Portfolio

			Income (loss) from investment operations¹								Dividends and distributions																	Ratio of expenses to			Ratio of expenses to
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)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)			average net assets before waivers/ reimburse- ments⁴			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:
10/31/17	$	11.70	$	.36	$	.98		$	1.34		$	(.37	)	$	(.05	)	$	(.42	)	$	12.62		11.62	%	$	3,175			.36	%		.36	%		.66	%		2.93	%
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
Class C:
10/31/17		11.64		.26		.98			1.24			(.28	)		(.05	)		(.33	)		12.55		10.77			689			1.11			1.11			1.41			2.18
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
Class T:
10/31/17^6,7		12.11		.20		.50			.70			(.19	)		—			(.19	)		12.62		5.83	^8,9		—	¹⁰		.11	^9,11		.11	^9,11		.41	^9,11		2.84	^9,11
Class F-1:
10/31/17		11.70		.35		.99			1.34			(.36	)		(.05	)		(.41	)		12.63		11.66			88			.39			.39			.69			2.91
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
Class F-2:
10/31/17		11.71		.38		1.00			1.38			(.40	)		(.05	)		(.45	)		12.64		11.95			264			.13			.13			.43			3.14
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
Class F-3:
10/31/17^6,12		11.96		.28		.67			.95			(.29	)		—			(.29	)		12.62		8.02	⁸		20			.02	¹¹		.02	¹¹		.32	¹¹		2.96	¹¹

62	American Funds Portfolio Series

Income Portfolio

			Income (loss) from investment operations¹								Dividends and distributions																	Ratio of expenses to			Ratio of expenses to
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)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)			average net assets before waivers/ reimburse- ments⁴			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-A:
10/31/17	$	11.69	$	.35	$	.99		$	1.34		$	(.36	)	$	(.05	)	$	(.41	)	$	12.62		11.64	%	$	100			.42	%		.42	%		.72	%		2.86	%
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
Class 529-C:
10/31/17		11.64		.26		.98			1.24			(.27	)		(.05	)		(.32	)		12.56		10.79			52			1.16			1.16			1.46			2.13
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
Class 529-E:
10/31/17		11.69		.32		.98			1.30			(.33	)		(.05	)		(.38	)		12.61		11.31			7			.64			.64			.94			2.65
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
Class 529-T:
10/31/17^6,7		12.11		.19		.51			.70			(.19	)		—			(.19	)		12.62		5.79	^8,9		—	¹⁰		.19	^9,11		.19	^9,11		.49	^9,11		2.77	^9,11
Class 529-F-1:
10/31/17		11.70		.38		.99			1.37			(.39	)		(.05	)		(.44	)		12.63		11.89			10			.18			.18			.48			3.13
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
Class R-1:
10/31/17		11.65		.26		.99			1.25			(.28	)		(.05	)		(.33	)		12.57		10.82			2			1.11			1.11			1.41			2.15
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

See end of tables for footnotes.

American Funds Portfolio Series

Financial highlights (continued)

Income Portfolio

			Income (loss) from investment operations¹								Dividends and distributions																	Ratio of expenses to			Ratio of expenses to
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)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)			average net assets before waivers/ reimburse- ments⁴			average net assets after waivers/ reimburse- ments^3,4			Net effective expense ratio^3,5			Ratio of net income to average net assets³
Class R-2:
10/31/17	$	11.64	$	.27	$	.98		$	1.25		$	(.28	)	$	(.05	)	$	(.33	)	$	12.56		10.88	%	$	32			1.09	%		1.09	%		1.39	%		2.19	%
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
Class R-2E:
10/31/17		11.69		.30		.98			1.28			(.31	)		(.05	)		(.36	)		12.61		11.14			—	¹⁰		.79			.79			1.09			2.51
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	)⁹		—	¹⁰		.36	⁹		.25	⁹		.55	⁹		3.46	⁹
10/31/14^6,14		12.07		.08		(.07	)		.01			(.10	)		—			(.10	)		11.98		.07	^8,9		—	¹⁰		.06	^8,9		.04	^8,9		.35	^8,9		.69	^8,9
Class R-3:
10/31/17		11.68		.32		.98			1.30			(.33	)		(.05	)		(.38	)		12.60		11.32			31			.65			.65			.95			2.66
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
Class R-4:
10/31/17		11.70		.36		.98			1.34			(.37	)		(.05	)		(.42	)		12.62		11.62			36			.35			.35			.65			2.93
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
Class R-5E:
10/31/17		11.69		.23		1.13			1.36			(.39	)		(.05	)		(.44	)		12.61		11.86			3			.16			.16			.46			1.81
10/31/16^6,15		11.47		.42		.27			.69			(.42	)		(.05	)		(.47	)		11.69		6.14	⁸		—	¹⁰		.26	¹¹		.25	¹¹		.55	¹¹		3.77	¹¹
Class R-5:
10/31/17		11.72		.39		.99			1.38			(.40	)		(.05	)		(.45	)		12.65		12.00			7			.07			.07			.37			3.21
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
Class R-6:
10/31/17		11.72		.40		.98			1.38			(.41	)		(.05	)		(.46	)		12.64		11.96			33			.02			.02			.32			3.25
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

64	American Funds Portfolio Series

Tax-Advantaged Income Portfolio

			Income from investment operations¹							Dividends and distributions																	Ratio of expenses to			Ratio of expenses to
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)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)			average net assets before waivers/ reimburse- ments⁴			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:
10/31/17	$	12.54	$	.34	$	1.13		$	1.47	$	(.33	)	$	(.11	)	$	(.44	)	$	13.57		12.03	%	$	1,229			.39	%		.39	%		.73	%		2.63	%
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
Class C:
10/31/17		12.46		.24		1.14			1.38		(.24	)		(.11	)		(.35	)		13.49		11.32			213			1.12			1.12			1.46			1.90
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
Class T:
10/31/17^6,7		12.81		.20		.74			.94		(.18	)		—			(.18	)		13.57		7.41	^8,9		—	¹⁰		.12	^9,11		.12	^9,11		.46	^9,11		2.72	^9,11
Class F-1:
10/31/17		12.53		.34		1.15			1.49		(.34	)		(.11	)		(.45	)		13.57		12.15			134			.39			.39			.73			2.59
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
Class F-2:
10/31/17		12.55		.37		1.14			1.51		(.36	)		(.11	)		(.47	)		13.59		12.36			101			.14			.14			.48			2.85
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
Class F-3:
10/31/17^6,12		12.62		.30		.93			1.23		(.27	)		—			(.27	)		13.58		9.83	⁸		21			.02	¹¹		.02	¹¹		.36	¹¹		2.95	¹¹

See end of tables for footnotes.

American Funds Portfolio Series

Financial highlights (continued)

Preservation Portfolio

			Income (loss) from investment operations¹								Dividends and distributions																	Ratio of expenses to			Ratio of expenses to
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)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)			average net assets before waivers/ reimburse- ments⁴			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:
10/31/17	$	10.03	$	.11	$	(.10	)	$	.01		$	(.12	)	$	(.01	)	$	(.13	)	$	9.91		.08	%	$	988			.42	%		.42	%		.72	%		1.07	%
10/31/16		9.95		.10		.09			.19			(.11	)		—			(.11	)		10.03		1.90			803			.42			.41			.71			1.05
10/31/15		9.95		.11		—	¹³		.11			(.11	)		—			(.11	)		9.95		1.08			582			.51			.41			.71			1.09
10/31/14		9.91		.10		.04			.14			(.10	)		—			(.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
Class C:
10/31/17		10.01		.04		(.09	)		(.05	)		(.05	)		(.01	)		(.06	)		9.90		(.53	)		155			1.13			1.13			1.43			.37
10/31/16		9.93		.03		.09			.12			(.04	)		—			(.04	)		10.01		1.18			175			1.15			1.14			1.44			.32
10/31/15		9.94		.04		(.01	)		.03			(.04	)		—			(.04	)		9.93		.28			130			1.23			1.13			1.43			.36
10/31/14		9.90		.03		.04			.07			(.03	)		—			(.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
Class T:
10/31/17^6,7		9.91		.07		.02			.09			(.08	)		—			(.08	)		9.92		.89	^8,9		—	¹⁰		.14	^9,11		.14	^9,11		.44	^9,11		1.31	^9,11
Class F-1:
10/31/17		10.03		.11		(.10	)		.01			(.12	)		(.01	)		(.13	)		9.91		.09			26			.41			.41			.71			1.10
10/31/16		9.95		.10		.09			.19			(.11	)		—			(.11	)		10.03		1.90			27			.42			.41			.71			1.04
10/31/15		9.96		.11		(.01	)		.10			(.11	)		—			(.11	)		9.95		1.00			20			.50			.40			.70			1.11
10/31/14		9.91		.10		.05			.15			(.10	)		—			(.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
Class F-2:
10/31/17		10.03		.13		(.09	)		.04			(.15	)		(.01	)		(.16	)		9.91		.36			68			.15			.15			.45			1.35
10/31/16		9.95		.13		.08			.21			(.13	)		—			(.13	)		10.03		2.18			49			.15			.14			.44			1.31
10/31/15		9.95		.13		—	¹³		.13			(.13	)		—			(.13	)		9.95		1.33			21			.25			.15			.45			1.34
10/31/14		9.91		.12		.04			.16			(.12	)		—			(.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
Class F-3:
10/31/17^6,12		9.88		.11		.03			.14			(.11	)		—			(.11	)		9.91		1.38	⁸		1			.04	¹¹		.04	¹¹		.34	¹¹		1.40	¹¹

66	American Funds Portfolio Series

Preservation Portfolio

			Income (loss) from investment operations¹								Dividends and distributions																	Ratio of expenses to			Ratio of expenses to
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)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)			average net assets before waivers/ reimburse- ments⁴			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-A:
10/31/17	$	10.03	$	.11	$	(.10	)	$	.01		$	(.12	)	$	(.01	)	$	(.13	)	$	9.91		.07	%	$	85			.43	%		.43	%		.73	%		1.07	%
10/31/16		9.94		.10		.09			.19			(.10	)		—			(.10	)		10.03		1.97			77			.45			.43			.73			1.03
10/31/15		9.95		.10		(.01	)		.09			(.10	)		—			(.10	)		9.94		.93			56			.57			.47			.77			1.03
10/31/14		9.91		.09		.04			.13			(.09	)		—			(.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
Class 529-C:
10/31/17		10.02		.03		(.09	)		(.06	)		(.05	)		(.01	)		(.06	)		9.90		(.69	)		36			1.19			1.19			1.49			.31
10/31/16		9.94		.02		.09			.11			(.03	)		—			(.03	)		10.02		1.10			34			1.23			1.22			1.52			.24
10/31/15		9.95		.03		(.01	)		.02			(.03	)		—			(.03	)		9.94		.19			25			1.32			1.22			1.52			.27
10/31/14		9.91		.02		.04			.06			(.02	)		—			(.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
Class 529-E:
10/31/17		10.02		.08		(.08	)		—	¹³		(.10	)		(.01	)		(.11	)		9.91		(.05	)		4			.66			.66			.96			.84
10/31/16		9.94		.08		.08			.16			(.08	)		—			(.08	)		10.02		1.64			3			.69			.68			.98			.78
10/31/15		9.95		.08		(.01	)		.07			(.08	)		—			(.08	)		9.94		.70			3			.79			.69			.99			.81
10/31/14		9.91		.07		.04			.11			(.07	)		—			(.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
Class 529-T:
10/31/17^6,7		9.91		.07		.01			.08			(.07	)		—			(.07	)		9.92		.84	^8,9		—	¹⁰		.21	^9,11		.21	^9,11		.51	^9,11		1.24	^9,11
Class 529-F-1:
10/31/17		10.03		.13		(.10	)		.03			(.14	)		(.01	)		(.15	)		9.91		.31			17			.20			.20			.50			1.30
10/31/16		9.94		.12		.10			.22			(.13	)		—			(.13	)		10.03		2.19			14			.23			.22			.52			1.24
10/31/15		9.95		.13		(.01	)		.12			(.13	)		—			(.13	)		9.94		1.17			10			.32			.22			.52			1.28
10/31/14		9.91		.12		.04			.16			(.12	)		—			(.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
Class R-1:
10/31/17		10.02		.04		(.09	)		(.05	)		(.05	)		(.01	)		(.06	)		9.91		(.58	)		1			1.14			1.14			1.44			.39
10/31/16		9.94		.03		.09			.12			(.04	)		—			(.04	)		10.02		1.17			2			1.16			1.15			1.45			.31
10/31/15		9.95		.04		(.01	)		.03			(.04	)		—			(.04	)		9.94		.28			1			1.24			1.14			1.44			.37
10/31/14		9.91		.02		.05			.07			(.03	)		—			(.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

See end of tables for footnotes.

American Funds Portfolio Series

Financial highlights (continued)

Preservation Portfolio

			Income (loss) from investment operations¹								Dividends and distributions																	Ratio of expenses to			Ratio of expenses to
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)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)			average net assets before waivers/ reimburse- ments⁴			average net assets after waivers/ reimburse- ments^3,4			Net effective expense ratio^3,5			Ratio of net income to average net assets³
Class R-2:
10/31/17	$	10.00	$	.04	$	(.09	)	$	(.05	)	$	(.05	)	$	(.01	)	$	(.06	)	$	9.89		(.50	)%	$	15			1.10	%		1.10	%		1.40	%		.40	%
10/31/16		9.93		.03		.08			.11			(.04	)		—			(.04	)		10.00		1.07			17			1.20			1.18			1.48			.27
10/31/15		9.94		.04		(.01	)		.03			(.04	)		—			(.04	)		9.93		.28			14			1.25			1.15			1.45			.36
10/31/14		9.90		.02		.04			.06			(.02	)		—			(.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
Class R-2E:
10/31/17		10.02		.07		(.09	)		(.02	)		(.08	)		(.01	)		(.09	)		9.91		(.27	)		2			.84			.84			1.14			.67
10/31/16		9.95		.07		.08			.15			(.08	)		—			(.08	)		10.02		1.53			3			.81			.81			1.11			.69
10/31/15		9.96		.12		(.01	)		.11			(.12	)		—			(.12	)		9.95		1.12	⁹		—	¹⁰		.38	⁹		.27	⁹		.57	⁹		1.22	⁹
10/31/14^6,14		9.96		.02		—	¹³		.02			(.02	)		—			(.02	)		9.96		.16	^8,9		^—	¹⁰		.06	^8,9		.04	^8,9		.34	^8,9		.17	^8,9
Class R-3:
10/31/17		10.02		.08		(.08	)		—	¹³		(.10	)		(.01	)		(.11	)		9.91		(.06	)		16			.67			.67			.97			.83
10/31/16		9.94		.07		.09			.16			(.08	)		—			(.08	)		10.02		1.60			15			.73			.71			1.01			.74
10/31/15		9.95		.08		(.01	)		.07			(.08	)		—			(.08	)		9.94		.70			13			.80			.70			1.00			.80
10/31/14		9.91		.07		.04			.11			(.07	)		—			(.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
Class R-4:
10/31/17		10.03		.11		(.09	)		.02			(.13	)		(.01	)		(.14	)		9.91		.13			11			.37			.37			.67			1.12
10/31/16		9.95		.11		.08			.19			(.11	)		—			(.11	)		10.03		1.92			10			.41			.40			.70			1.06
10/31/15		9.96		.11		(.01	)		.10			(.11	)		—			(.11	)		9.95		1.01			6			.48			.38			.68			1.13
10/31/14		9.92		.10		.04			.14			(.10	)		—			(.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
Class R-5E:
10/31/17		10.04		.14		(.10	)		.04			(.15	)		(.01	)		(.16	)		9.92		.39			—	¹⁰		.18			.11			.41			1.40
10/31/16^6,15		9.91		.11		.13			.24			(.11	)		—			(.11	)		10.04		2.48	⁸		—	¹⁰		.28	¹¹		.27	¹¹		.57	¹¹		1.19	¹¹
Class R-5:
10/31/17		10.03		.14		(.09	)		.05			(.15	)		(.01	)		(.16	)		9.92		.52			3			.08			.08			.38			1.39
10/31/16		9.95		.14		.08			.22			(.14	)		—			(.14	)		10.03		2.21			1			.11			.10			.40			1.35
10/31/15		9.96		.14		(.01	)		.13			(.14	)		—			(.14	)		9.95		1.28			1			.20			.10			.40			1.40
10/31/14		9.91		.14		.04			.18			(.13	)		—			(.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
Class R-6:
10/31/17		10.03		.14		(.08	)		.06			(.16	)		(.01	)		(.17	)		9.92		.57			14			.04			.04			.34			1.45
10/31/16		9.95		.14		.08			.22			(.14	)		—			(.14	)		10.03		2.27			11			.06			.04			.34			1.41
10/31/15		9.96		.14		(.01	)		.13			(.14	)		—			(.14	)		9.95		1.34			7			.15			.05			.35			1.45
10/31/14		9.91		.13		.05			.18			(.13	)		—			(.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

68	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:
10/31/17	$	9.90	$	.18	$	(.10	)	$	.08		$	(.19	)	$	9.79		.81	%	$	336			.44	%		.43	%		.77	%		1.89	%
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
Class C:
10/31/17		9.89		.12		(.11	)		.01			(.12	)		9.78		.10			54			1.14			1.13			1.47			1.20
10/31/16		9.89		.15		—	¹³		.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
Class T:
10/31/17^6,7		9.76		.11		.04			.15			(.12	)		9.79		1.50	^8,9		—	¹⁰		.14	^9,11		.12	^9,11		.46	^9,11		1.95	^9,11
Class F-1:
10/31/17		9.90		.19		(.10	)		.09			(.19	)		9.80		.93			11			.42			.41			.75			1.91
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
Class F-2:
10/31/17		9.90		.21		(.10	)		.11			(.22	)		9.79		1.09			34			.16			.15			.49			2.17
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
Class F-3:
10/31/17^6,12		9.69		.15		.11			.26			(.16	)		9.79		2.70	⁸		1			.03	¹¹		.01	¹¹		.35	¹¹		2.02	¹¹

See end of tables for footnotes.

American Funds Portfolio Series

Financial highlights (continued)

	Year ended October 31
Portfolio turnover rate for all share classes	2017			2016			2015			2014			2013
Global Growth Portfolio		64	%		2	%		2	%		—	%¹⁶		—	%¹⁶
Growth Portfolio		33			—	¹⁶		—	¹⁶		—	¹⁶		—	¹⁶
Growth and Income Portfolio		30			—	¹⁶		—	¹⁶		—	¹⁶		—	¹⁶
Balanced Portfolio		15			—	¹⁶		13			—	¹⁶		—	¹⁶
Income Portfolio		1			8			—	¹⁶		—	¹⁶		—	¹⁶
Tax-Advantaged Income Portfolio		13			—	¹⁶		1			1			2	¹⁷
Preservation Portfolio		25			2			2			5			11	¹⁷
Tax-Exempt Preservation Portfolio		45			6			8			14			28	¹⁷

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 some of the periods shown, CRMC reduced fees for investment advisory services. During the periods shown, CRMC also reimbursed a portion of miscellaneous fees and expenses for 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	Class T and 529-T shares, as applicable, began investment operations on April 7, 2017.
⁸	Not annualized.
⁹	All or a significant portion of assets in this class consisted of seed capital invested by CRMC and/or its affiliates. Fees for distribution services are not charged or accrued on these seed capital assets. If such fees were paid by the fund on seed capital assets, fund expenses would have been higher and net income and total return would have been lower.
¹⁰	Amount less than $1 million.
¹¹	Annualized.
¹²	Class F-3 shares began investment operations on January 27, 2017.
¹³	Amount less than $.01.
¹⁴	Class R-2E shares began investment operations on August 29, 2014.
¹⁵	Class R-5E shares began investment operations on November 20, 2015.
¹⁶	Amount is either less than 1% or there is no turnover.
¹⁷	Portfolio turnover rates reflect the redemption (or removal) of CRMC’s initial capital investment, without which the portfolio turnover rates would have been lower.

See Notes to Financial Statements

70	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, 2017, 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 their 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, 2017, by correspondence with the custodian and transfer agent; when 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, 2017, 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 11, 2017

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, 2017, through October 31, 2017).

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, F-2 and F-3 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.

72	American Funds Portfolio Series

Global Growth Portfolio

	Beginning account value 5/1/2017		Ending account value 10/31/2017		Expenses paid during period^1,2		Annualized expense ratio²			Effective expenses paid during period³		Effective annualized expense ratio⁴
Class A – actual return	$	1,000.00	$	1,122.08	$	1.87		.35	%	$	4.23		.79	%
Class A – assumed 5% return		1,000.00		1,023.44		1.79		.35			4.02		.79
Class C – actual return		1,000.00		1,117.80		5.93		1.11			8.27		1.55
Class C – assumed 5% return		1,000.00		1,019.61		5.65		1.11			7.88		1.55
Class T – actual return		1,000.00		1,123.31		.59		.11			2.94		.55
Class T – assumed 5% return		1,000.00		1,024.65		.56		.11			2.80		.55
Class F-1 – actual return		1,000.00		1,121.93		2.03		.38			4.39		.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		1,123.00		.70		.13			3.05		.57
Class F-2 – assumed 5% return		1,000.00		1,024.55		.66		.13			2.91		.57
Class F-3 – actual return		1,000.00		1,123.95		.11		.02			2.46		.46
Class F-3 – assumed 5% return		1,000.00		1,025.10		.10		.02			2.35		.46
Class 529-A – actual return		1,000.00		1,121.52		2.09		.39			4.44		.83
Class 529-A – assumed 5% return		1,000.00		1,023.24		1.99		.39			4.23		.83
Class 529-C – actual return		1,000.00		1,117.07		6.30		1.18			8.64		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		1,120.13		3.37		.63			5.72		1.07
Class 529-E – assumed 5% return		1,000.00		1,022.03		3.21		.63			5.45		1.07
Class 529-T – actual return		1,000.00		1,122.66		.96		.18			3.32		.62
Class 529-T – assumed 5% return		1,000.00		1,024.30		.92		.18			3.16		.62
Class 529-F-1 – actual return		1,000.00		1,122.51		.96		.18			3.32		.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		1,117.18		5.92		1.11			8.27		1.55
Class R-1 – assumed 5% return		1,000.00		1,019.61		5.65		1.11			7.88		1.55
Class R-2 – actual return		1,000.00		1,117.46		5.82		1.09			8.17		1.53
Class R-2 – assumed 5% return		1,000.00		1,019.71		5.55		1.09			7.78		1.53
Class R-2E – actual return		1,000.00		1,119.48		4.33		.81			6.68		1.25
Class R-2E – assumed 5% return		1,000.00		1,021.12		4.13		.81			6.36		1.25
Class R-3 – actual return		1,000.00		1,120.20		3.53		.66			5.88		1.10
Class R-3 – assumed 5% return		1,000.00		1,021.88		3.36		.66			5.60		1.10
Class R-4 – actual return		1,000.00		1,121.60		1.93		.36			4.28		.80
Class R-4 – assumed 5% return		1,000.00		1,023.39		1.84		.36			4.08		.80
Class R-5E – actual return		1,000.00		1,123.54		.48		.09			2.84		.53
Class R-5E – assumed 5% return		1,000.00		1,024.75		.46		.09			2.70		.53
Class R-5 – actual return		1,000.00		1,123.80		.37		.07			2.73		.51
Class R-5 – assumed 5% return		1,000.00		1,024.85		.36		.07			2.60		.51
Class R-6 – actual return		1,000.00		1,123.55		.11		.02			2.46		.46
Class R-6 – assumed 5% return		1,000.00		1,025.10		.10		.02			2.35		.46

See end of tables for footnotes.

American Funds Portfolio Series

Growth Portfolio

	Beginning account value 5/1/2017		Ending account value 10/31/2017		Expenses paid during period^1,2		Annualized expense ratio²			Effective expenses paid during period³		Effective annualized expense ratio⁴
Class A – actual return	$	1,000.00	$	1,108.87	$	1.81		.34	%	$	3.88		.73	%
Class A – assumed 5% return		1,000.00		1,023.49		1.73		.34			3.72		.73
Class C – actual return		1,000.00		1,104.35		5.83		1.10			7.90		1.49
Class C – assumed 5% return		1,000.00		1,019.66		5.60		1.10			7.58		1.49
Class T – actual return		1,000.00		1,110.78		.53		.10			2.61		.49
Class T – assumed 5% return		1,000.00		1,024.70		.51		.10			2.50		.49
Class F-1 – actual return		1,000.00		1,108.33		2.02		.38			4.09		.77
Class F-1 – assumed 5% return		1,000.00		1,023.29		1.94		.38			3.92		.77
Class F-2 – actual return		1,000.00		1,110.37		.69		.13			2.77		.52
Class F-2 – assumed 5% return		1,000.00		1,024.55		.66		.13			2.65		.52
Class F-3 – actual return		1,000.00		1,110.64		.11		.02			2.18		.41
Class F-3 – assumed 5% return		1,000.00		1,025.10		.10		.02			2.09		.41
Class 529-A – actual return		1,000.00		1,109.00		2.02		.38			4.09		.77
Class 529-A – assumed 5% return		1,000.00		1,023.29		1.94		.38			3.92		.77
Class 529-C – actual return		1,000.00		1,104.41		6.21		1.17			8.27		1.56
Class 529-C – assumed 5% return		1,000.00		1,019.31		5.96		1.17			7.93		1.56
Class 529-E – actual return		1,000.00		1,107.82		3.35		.63			5.42		1.02
Class 529-E – assumed 5% return		1,000.00		1,022.03		3.21		.63			5.19		1.02
Class 529-T – actual return		1,000.00		1,110.17		.90		.17			2.98		.56
Class 529-T – assumed 5% return		1,000.00		1,024.35		.87		.17			2.85		.56
Class 529-F-1 – actual return		1,000.00		1,109.89		.90		.17			2.98		.56
Class 529-F-1 – assumed 5% return		1,000.00		1,024.35		.87		.17			2.85		.56
Class R-1 – actual return		1,000.00		1,104.46		5.89		1.11			7.96		1.50
Class R-1 – assumed 5% return		1,000.00		1,019.61		5.65		1.11			7.63		1.50
Class R-2 – actual return		1,000.00		1,104.35		5.78		1.09			7.85		1.48
Class R-2 – assumed 5% return		1,000.00		1,019.71		5.55		1.09			7.53		1.48
Class R-2E – actual return		1,000.00		1,106.25		4.30		.81			6.37		1.20
Class R-2E – assumed 5% return		1,000.00		1,021.12		4.13		.81			6.11		1.20
Class R-3 – actual return		1,000.00		1,107.07		3.51		.66			5.58		1.05
Class R-3 – assumed 5% return		1,000.00		1,021.88		3.36		.66			5.35		1.05
Class R-4 – actual return		1,000.00		1,109.08		1.91		.36			3.99		.75
Class R-4 – assumed 5% return		1,000.00		1,023.39		1.84		.36			3.82		.75
Class R-5E – actual return		1,000.00		1,110.92		.90		.17			2.98		.56
Class R-5E – assumed 5% return		1,000.00		1,024.35		.87		.17			2.85		.56
Class R-5 – actual return		1,000.00		1,110.56		.37		.07			2.45		.46
Class R-5 – assumed 5% return		1,000.00		1,024.85		.36		.07			2.35		.46
Class R-6 – actual return		1,000.00		1,110.77		.11		.02			2.18		.41
Class R-6 – assumed 5% return		1,000.00		1,025.10		.10		.02			2.09		.41

74	American Funds Portfolio Series

Growth and Income Portfolio

	Beginning account value 5/1/2017		Ending account value 10/31/2017		Expenses paid during period^1,2		Annualized expense ratio²			Effective expenses paid during period³		Effective annualized expense ratio⁴
Class A – actual return	$	1,000.00	$	1,079.80	$	1.78		.34	%	$	3.51		.67	%
Class A – assumed 5% return		1,000.00		1,023.49		1.73		.34			3.41		.67
Class C – actual return		1,000.00		1,075.52		5.75		1.10			7.48		1.43
Class C – assumed 5% return		1,000.00		1,019.66		5.60		1.10			7.27		1.43
Class T – actual return		1,000.00		1,081.05		.52		.10			2.26		.43
Class T – assumed 5% return		1,000.00		1,024.70		.51		.10			2.19		.43
Class F-1 – actual return		1,000.00		1,079.53		1.99		.38			3.72		.71
Class F-1 – assumed 5% return		1,000.00		1,023.29		1.94		.38			3.62		.71
Class F-2 – actual return		1,000.00		1,080.81		.63		.12			2.36		.45
Class F-2 – assumed 5% return		1,000.00		1,024.60		.61		.12			2.29		.45
Class F-3 – actual return		1,000.00		1,082.18		.05		.01			1.78		.34
Class F-3 – assumed 5% return		1,000.00		1,025.16		.05		.01			1.73		.34
Class 529-A – actual return		1,000.00		1,078.81		2.04		.39			3.77		.72
Class 529-A – assumed 5% return		1,000.00		1,023.24		1.99		.39			3.67		.72
Class 529-C – actual return		1,000.00		1,075.08		6.12		1.17			7.85		1.50
Class 529-C – assumed 5% return		1,000.00		1,019.31		5.96		1.17			7.63		1.50
Class 529-E – actual return		1,000.00		1,077.70		3.30		.63			5.03		.96
Class 529-E – assumed 5% return		1,000.00		1,022.03		3.21		.63			4.89		.96
Class 529-T – actual return		1,000.00		1,080.66		.89		.17			2.62		.50
Class 529-T – assumed 5% return		1,000.00		1,024.35		.87		.17			2.55		.50
Class 529-F-1 – actual return		1,000.00		1,080.59		.89		.17			2.62		.50
Class 529-F-1 – assumed 5% return		1,000.00		1,024.35		.87		.17			2.55		.50
Class R-1 – actual return		1,000.00		1,075.41		5.75		1.10			7.48		1.43
Class R-1 – assumed 5% return		1,000.00		1,019.66		5.60		1.10			7.27		1.43
Class R-2 – actual return		1,000.00		1,075.76		5.70		1.09			7.43		1.42
Class R-2 – assumed 5% return		1,000.00		1,019.71		5.55		1.09			7.22		1.42
Class R-2E – actual return		1,000.00		1,077.26		4.19		.80			5.92		1.13
Class R-2E – assumed 5% return		1,000.00		1,021.17		4.08		.80			5.75		1.13
Class R-3 – actual return		1,000.00		1,077.67		3.46		.66			5.18		.99
Class R-3 – assumed 5% return		1,000.00		1,021.88		3.36		.66			5.04		.99
Class R-4 – actual return		1,000.00		1,078.98		1.89		.36			3.62		.69
Class R-4 – assumed 5% return		1,000.00		1,023.39		1.84		.36			3.52		.69
Class R-5E – actual return		1,000.00		1,081.24		.84		.16			2.57		.49
Class R-5E – assumed 5% return		1,000.00		1,024.40		.82		.16			2.50		.49
Class R-5 – actual return		1,000.00		1,080.95		.31		.06			2.05		.39
Class R-5 – assumed 5% return		1,000.00		1,024.90		.31		.06			1.99		.39
Class R-6 – actual return		1,000.00		1,081.29		.10		.02			1.84		.35
Class R-6 – assumed 5% return		1,000.00		1,025.10		.10		.02			1.79		.35

See end of tables for footnotes.

American Funds Portfolio Series

Balanced Portfolio

	Beginning account value 5/1/2017		Ending account value 10/31/2017		Expenses paid during period^1,2		Annualized expense ratio²			Effective expenses paid during period³		Effective annualized expense ratio⁴
Class A – actual return	$	1,000.00	$	1,072.04	$	1.83		.35	%	$	3.81		.73	%
Class A – assumed 5% return		1,000.00		1,023.44		1.79		.35			3.72		.73
Class C – actual return		1,000.00		1,067.80		5.73		1.10			7.71		1.48
Class C – assumed 5% return		1,000.00		1,019.66		5.60		1.10			7.53		1.48
Class T – actual return		1,000.00		1,073.27		.52		.10			2.51		.48
Class T – assumed 5% return		1,000.00		1,024.70		.51		.10			2.45		.48
Class F-1 – actual return		1,000.00		1,071.79		1.98		.38			3.97		.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		1,073.10		.63		.12			2.61		.50
Class F-2 – assumed 5% return		1,000.00		1,024.60		.61		.12			2.55		.50
Class F-3 – actual return		1,000.00		1,073.67		.10		.02			2.09		.40
Class F-3 – assumed 5% return		1,000.00		1,025.10		.10		.02			2.04		.40
Class 529-A – actual return		1,000.00		1,071.63		2.19		.42			4.18		.80
Class 529-A – assumed 5% return		1,000.00		1,023.09		2.14		.42			4.08		.80
Class 529-C – actual return		1,000.00		1,067.29		6.10		1.17			8.08		1.55
Class 529-C – assumed 5% return		1,000.00		1,019.31		5.96		1.17			7.88		1.55
Class 529-E – actual return		1,000.00		1,069.88		3.29		.63			5.27		1.01
Class 529-E – assumed 5% return		1,000.00		1,022.03		3.21		.63			5.14		1.01
Class 529-T – actual return		1,000.00		1,072.87		.89		.17			2.87		.55
Class 529-T – assumed 5% return		1,000.00		1,024.35		.87		.17			2.80		.55
Class 529-F-1 – actual return		1,000.00		1,072.83		.89		.17			2.87		.55
Class 529-F-1 – assumed 5% return		1,000.00		1,024.35		.87		.17			2.80		.55
Class R-1 – actual return		1,000.00		1,067.41		5.78		1.11			7.76		1.49
Class R-1 – assumed 5% return		1,000.00		1,019.61		5.65		1.11			7.58		1.49
Class R-2 – actual return		1,000.00		1,067.93		5.68		1.09			7.66		1.47
Class R-2 – assumed 5% return		1,000.00		1,019.71		5.55		1.09			7.48		1.47
Class R-2E – actual return		1,000.00		1,069.74		4.17		.80			6.16		1.18
Class R-2E – assumed 5% return		1,000.00		1,021.17		4.08		.80			6.01		1.18
Class R-3 – actual return		1,000.00		1,070.58		3.44		.66			5.43		1.04
Class R-3 – assumed 5% return		1,000.00		1,021.88		3.36		.66			5.30		1.04
Class R-4 – actual return		1,000.00		1,072.04		1.83		.35			3.81		.73
Class R-4 – assumed 5% return		1,000.00		1,023.44		1.79		.35			3.72		.73
Class R-5E – actual return		1,000.00		1,072.87		.89		.17			2.87		.55
Class R-5E – assumed 5% return		1,000.00		1,024.35		.87		.17			2.80		.55
Class R-5 – actual return		1,000.00		1,073.33		.31		.06			2.30		.44
Class R-5 – assumed 5% return		1,000.00		1,024.90		.31		.06			2.24		.44
Class R-6 – actual return		1,000.00		1,073.57		.10		.02			2.09		.40
Class R-6 – assumed 5% return		1,000.00		1,025.10		.10		.02			2.04		.40

76	American Funds Portfolio Series

Income Portfolio

	Beginning account value 5/1/2017		Ending account value 10/31/2017		Expenses paid during period^1,2		Annualized expense ratio²			Effective expenses paid during period³		Effective annualized expense ratio⁴
Class A – actual return	$	1,000.00	$	1,050.96	$	1.76		.34	%	$	3.31		.64	%
Class A – assumed 5% return		1,000.00		1,023.49		1.73		.34			3.26		.64
Class C – actual return		1,000.00		1,047.28		5.68		1.10			7.22		1.40
Class C – assumed 5% return		1,000.00		1,019.66		5.60		1.10			7.12		1.40
Class T – actual return		1,000.00		1,052.23		.57		.11			2.12		.41
Class T – assumed 5% return		1,000.00		1,024.65		.56		.11			2.09		.41
Class F-1 – actual return		1,000.00		1,051.54		2.02		.39			3.57		.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		1,052.85		.67		.13			2.22		.43
Class F-2 – assumed 5% return		1,000.00		1,024.55		.66		.13			2.19		.43
Class F-3 – actual return		1,000.00		1,052.63		.10		.02			1.66		.32
Class F-3 – assumed 5% return		1,000.00		1,025.10		.10		.02			1.63		.32
Class 529-A – actual return		1,000.00		1,051.45		2.12		.41			3.67		.71
Class 529-A – assumed 5% return		1,000.00		1,023.14		2.09		.41			3.62		.71
Class 529-C – actual return		1,000.00		1,047.00		5.99		1.16			7.53		1.46
Class 529-C – assumed 5% return		1,000.00		1,019.36		5.90		1.16			7.43		1.46
Class 529-E – actual return		1,000.00		1,049.52		3.25		.63			4.80		.93
Class 529-E – assumed 5% return		1,000.00		1,022.03		3.21		.63			4.74		.93
Class 529-T – actual return		1,000.00		1,051.83		.93		.18			2.48		.48
Class 529-T – assumed 5% return		1,000.00		1,024.30		.92		.18			2.45		.48
Class 529-F-1 – actual return		1,000.00		1,051.79		.88		.17			2.43		.47
Class 529-F-1 – assumed 5% return		1,000.00		1,024.35		.87		.17			2.40		.47
Class R-1 – actual return		1,000.00		1,047.36		5.73		1.11			7.28		1.41
Class R-1 – assumed 5% return		1,000.00		1,019.61		5.65		1.11			7.17		1.41
Class R-2 – actual return		1,000.00		1,047.42		5.63		1.09			7.17		1.39
Class R-2 – assumed 5% return		1,000.00		1,019.71		5.55		1.09			7.07		1.39
Class R-2E – actual return		1,000.00		1,048.45		4.13		.80			5.68		1.10
Class R-2E – assumed 5% return		1,000.00		1,021.17		4.08		.80			5.60		1.10
Class R-3 – actual return		1,000.00		1,049.49		3.36		.65			4.91		.95
Class R-3 – assumed 5% return		1,000.00		1,021.93		3.31		.65			4.84		.95
Class R-4 – actual return		1,000.00		1,050.87		1.86		.36			3.41		.66
Class R-4 – assumed 5% return		1,000.00		1,023.39		1.84		.36			3.36		.66
Class R-5E – actual return		1,000.00		1,051.83		.88		.17			2.43		.47
Class R-5E – assumed 5% return		1,000.00		1,024.35		.87		.17			2.40		.47
Class R-5 – actual return		1,000.00		1,053.13		.36		.07			1.91		.37
Class R-5 – assumed 5% return		1,000.00		1,024.85		.36		.07			1.89		.37
Class R-6 – actual return		1,000.00		1,052.52		.10		.02			1.66		.32
Class R-6 – assumed 5% return		1,000.00		1,025.10		.10		.02			1.63		.32

See end of tables for footnotes.

American Funds Portfolio Series

Tax-Advantaged Income Portfolio

	Beginning account value 5/1/2017		Ending account value 10/31/2017		Expenses paid during period^1,2		Annualized expense ratio²			Effective expenses paid during period³		Effective annualized expense ratio⁴
Class A – actual return	$	1,000.00	$	1,062.67	$	2.08		.40	%	$	3.85		.74	%
Class A – assumed 5% return		1,000.00		1,023.19		2.04		.40			3.77		.74
Class C – actual return		1,000.00		1,059.46		5.76		1.11			7.53		1.45
Class C – assumed 5% return		1,000.00		1,019.61		5.65		1.11			7.37		1.45
Class T – actual return		1,000.00		1,064.96		.57		.11			2.34		.45
Class T – assumed 5% return		1,000.00		1,024.65		.56		.11			2.29		.45
Class F-1 – actual return		1,000.00		1,063.74		1.98		.38			3.75		.72
Class F-1 – assumed 5% return		1,000.00		1,023.29		1.94		.38			3.67		.72
Class F-2 – actual return		1,000.00		1,064.72		.68		.13			2.45		.47
Class F-2 – assumed 5% return		1,000.00		1,024.55		.66		.13			2.40		.47
Class F-3 – actual return		1,000.00		1,065.32		.10		.02			1.87		.36
Class F-3 – assumed 5% return		1,000.00		1,025.10		.10		.02			1.84		.36

78	American Funds Portfolio Series

Preservation Portfolio

	Beginning account value 5/1/2017		Ending account value 10/31/2017		Expenses paid during period^1,2		Annualized expense ratio²			Effective expenses paid during period³		Effective annualized expense ratio⁴
Class A – actual return	$	1,000.00	$	1,002.98	$	2.12		.42	%	$	3.63		.72	%
Class A – assumed 5% return		1,000.00		1,023.09		2.14		.42			3.67		.72
Class C – actual return		1,000.00		1,000.39		5.60		1.11			7.11		1.41
Class C – assumed 5% return		1,000.00		1,019.61		5.65		1.11			7.17		1.41
Class T – actual return		1,000.00		1,005.42		.61		.12			2.12		.42
Class T – assumed 5% return		1,000.00		1,024.60		.61		.12			2.14		.42
Class F-1 – actual return		1,000.00		1,003.03		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		1,004.38		.71		.14			2.22		.44
Class F-2 – assumed 5% return		1,000.00		1,024.50		.71		.14			2.24		.44
Class F-3 – actual return		1,000.00		1,005.92		.15		.03			1.67		.33
Class F-3 – assumed 5% return		1,000.00		1,025.05		.15		.03			1.68		.33
Class 529-A – actual return		1,000.00		1,004.00		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-C – actual return		1,000.00		1,000.12		5.95		1.18			7.46		1.48
Class 529-C – assumed 5% return		1,000.00		1,019.26		6.01		1.18			7.53		1.48
Class 529-E – actual return		1,000.00		1,002.88		3.23		.64			4.75		.94
Class 529-E – assumed 5% return		1,000.00		1,021.98		3.26		.64			4.79		.94
Class 529-T – actual return		1,000.00		1,005.02		.96		.19			2.48		.49
Class 529-T – assumed 5% return		1,000.00		1,024.25		.97		.19			2.50		.49
Class 529-F-1 – actual return		1,000.00		1,005.16		.91		.18			2.43		.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		999.99		5.70		1.13			7.21		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		1,000.45		5.60		1.11			7.11		1.41
Class R-2 – assumed 5% return		1,000.00		1,019.61		5.65		1.11			7.17		1.41
Class R-2E – actual return		1,000.00		1,001.74		4.19		.83			5.70		1.13
Class R-2E – assumed 5% return		1,000.00		1,021.02		4.23		.83			5.75		1.13
Class R-3 – actual return		1,000.00		1,002.68		3.38		.67			4.90		.97
Class R-3 – assumed 5% return		1,000.00		1,021.83		3.41		.67			4.94		.97
Class R-4 – actual return		1,000.00		1,003.17		1.87		.37			3.38		.67
Class R-4 – assumed 5% return		1,000.00		1,023.34		1.89		.37			3.41		.67
Class R-5E – actual return		1,000.00		1,004.62		.45		.09			1.97		.39
Class R-5E – assumed 5% return		1,000.00		1,024.75		.46		.09			1.99		.39
Class R-5 – actual return		1,000.00		1,005.67		.40		.08			1.92		.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		1,005.94		.15		.03			1.67		.33
Class R-6 – assumed 5% return		1,000.00		1,025.05		.15		.03			1.68		.33

See end of tables for footnotes.

American Funds Portfolio Series

Tax-Exempt Preservation Portfolio

	Beginning account value 5/1/2017		Ending account value 10/31/2017		Expenses paid during period^1,2			Annualized expense ratio²			Effective expenses paid during period³		Effective annualized expense ratio⁴
Class A – actual return	$	1,000.00	$	1,011.40	$	1.98			.39	%	$	3.70		.73	%
Class A – assumed 5% return		1,000.00		1,023.24		1.99			.39			3.72		.73
Class C – actual return		1,000.00		1,007.83		5.52			1.09			7.24		1.43
Class C – assumed 5% return		1,000.00		1,019.71		5.55			1.09			7.27		1.43
Class T – actual return		1,000.00		1,012.83		.46			.09			2.18		.43
Class T – assumed 5% return		1,000.00		1,024.75		.46			.09			2.19		.43
Class F-1 – actual return		1,000.00		1,011.49		1.88			.37			3.60		.71
Class F-1 – assumed 5% return		1,000.00		1,023.34		1.89			.37			3.62		.71
Class F-2 – actual return		1,000.00		1,012.79		.56			.11			2.28		.45
Class F-2 – assumed 5% return		1,000.00		1,024.65		.56			.11			2.29		.45
Class F-3 – actual return		1,000.00		1,013.33		—	⁵		—	⁵		1.73		.34
Class F-3 – assumed 5% return		1,000.00		1,025.21		—	⁵		—	⁵		1.73		.34

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.
⁵	Amount less than $.01.

80	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, 2017:

	Global Growth Portfolio			Growth Portfolio			Growth and Income Portfolio			Balanced Portfolio
Long-term capital gains	$	47,744,000		$	146,949,000		$	155,264,000		$	116,285,000
Foreign taxes (per share)	$	0.012		$	0.008		$	0.004		$	0.007
Foreign source income (per share)	$	0.12		$	0.07		$	0.07		$	0.09
Qualified dividend income		100	%		100	%		100	%		100	%
Corporate dividends received deduction	$	17,325,000			100	%	$	89,390,000		$	59,771,000
U.S. government income that may be exempt from state taxation	$	127,000		$	398,000		$	7,019,000		$	10,956,000

	Income Portfolio			Tax-Advantaged Income Portfolio			Preservation Portfolio			Tax-Exempt Preservation Portfolio
Long-term capital gains	$	19,079,000		$	12,613,000		$	673,000			—
Foreign taxes (per share)		—		$	0.003			—			—
Foreign source income (per share)		—		$	0.04			—			—
Qualified dividend income	$	89,250,000			100	%*	$	14,000			—
Corporate dividends received deduction	$	60,757,000		$	13,128,000		$	9,000			—
Exempt interest dividends		—		$	20,836,000			—			100	%
U.S. government income that may be exempt from state taxation	$	11,608,000		$	98,000		$	6,512,000			—

*	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 2018, to determine the calendar year amounts to be included on their 2017 tax returns. Shareholders should consult their tax advisors.

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)	80	General Finance Corporation
James G. Ellis, 1947	2012	Dean and Professor of Marketing, Marshall School of Business, University of Southern California	80	Mercury General Corporation
Leonard R. Fuller, 1946	2012	Private investor; former President and CEO, Fuller Consulting (financial management consulting)	80	None
Mary Davis Holt, 1950	2015–2016 2017	Principal, Mary Davis Holt Enterprises, LLC (leadership development consulting); former Partner, Flynn Heath Holt Leadership, LLC (leadership consulting); former COO, Time Life Inc. (1993–2003)	77	None
R. Clark Hooper, 1946 Chairman of the Board (Independent and Non-Executive)	2012	Private investor	80	None
Merit E. Janow, 1958	2012	Dean and Professor, Columbia University, School of International and Public Affairs	79	MasterCard Incorporated; Trimble Inc.
Laurel B. Mitchell, PhD, 1955	2012	Distinguished Professor of Accounting, University of Redlands; former Director, Accounting Program, University of Redlands	76	None
Frank M. Sanchez, 1943	2012	Principal, The Sanchez Family Corporation dba McDonald’s Restaurants (McDonald’s licensee)	76	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	81	None

We are deeply saddened by the loss of Dr. Steadman Upham, who passed away on July 30, 2017. Dr. Upham served as an independent trustee on the boards of several American Funds since 2001. His wise counsel and friendship will be missed.

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;⁶Partner — 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.

82	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 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 Company⁶
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
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 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

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

84	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. Fund shares offered through American Funds Distributors, Inc.

“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, 2017, 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.

MSCI has not approved, reviewed or produced this report, makes no express or implied warranties or representations and is not liable whatsoever for any data in the report. You may not redistribute the MSCI data or use it as a basis for other indices or investment products.

Standard & Poor’s 500 Composite 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 © 2017 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.

American Funds from Capital Group

The Capital Advantage^SM

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 21 years at our company, reflecting a career commitment to our long-term approach.¹

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

	American Funds’ superior long-term track record
	Equity funds have beaten their Lipper peer indexes in 93% of 10-year periods and 98% of 20-year periods. Fixed income funds have beaten their Lipper indexes in 80% of 10-year periods and 80% of 20-year periods.²Fund management fees have been among the lowest in the industry.³

	¹	Portfolio manager experience as of December 31, 2016.
	²	Based on Class F-2 share results for rolling periods through December 31, 2016. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date (except Capital Income Builder and SMALLCAP World Fund, for which the Lipper average was used). Expenses differ for each share class, so results will vary. Class F-2 shares were first offered on August 1, 2008. Class F-2 share results prior to the date of first sale are hypothetical based on Class A share results without a sales charge, adjusted for typical estimated expenses. Results for certain funds with an inception date after August 1, 2008, also include hypothetical returns because those funds’ Class F-2 shares sold after the funds’ date of first offering. Please see americanfunds.com for more information on specific expense adjustments and the actual dates of first sale.
	³	On average, our management fees were in the lowest quintile 73% of the time, based on the 20-year period ended December 31, 2016, 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:
		2016	$81,000
		2017	$68,000

	b) Audit-Related Fees:
		2016	$6,000
		2017	$7,000

	c) Tax Fees:
		2016	$29,000
		2017	$30,000
		The tax fees consist of professional services relating to the preparation of the Registrant’s tax returns.

	d) All Other Fees:
		2016	None
		2017	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:
	2016	$1,138,000
	2017	$1,194,000
	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:
	2016	None
	2017	None
	The tax fees consist of consulting services relating to the Registrant’s investments.


d) All Other Fees:
	2016	$3,000
	2017	None
	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 $1,228,000 for fiscal year 2016 and $1,419,000 for fiscal year 2017. 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 29, 2017

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 29, 2017

By /s/ Gregory F. Niland

Gregory F. Niland, Treasurer and

Principal Financial Officer

Date: December 29, 2017