Prospectus Supplement June 1, 2020 |
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For the
following funds with prospectuses dated
July 1, 2019 – June 1, 2020 (as supplemented to date)
AMCAP Fund® American Balanced Fund® American
Funds Developing World Growth and Income FundSM American Funds Emerging Markets Bond Fund® American
Funds Global Balanced FundSM American
Funds Inflation Linked Bond Fund® American Funds Mortgage Fund® American Funds Multi-Sector Income FundSM American
Funds Strategic Bond FundSM American High-Income Trust® American Mutual Fund® |
The Bond Fund of America® Capital Income Builder® Capital World Bond Fund® Capital World Growth and Income Fund® EuroPacific Growth Fund® Fundamental Investors® The Growth Fund of America® The Income Fund of America® Intermediate Bond Fund of America® International Growth and Income FundSM The Investment Company of America® The New Economy Fund® New Perspective Fund® New World Fund® Short-Term Bond Fund of America® SMALLCAP World Fund® U.S. Government Securities Fund® Washington Mutual Investors FundSM |
Changes
apply to all funds unless otherwise noted below.
1. The following is added to the section titled “The Capital SystemSM” in the “Management and organization”
section of The Income Fund of America prospectus:
Joyce E. Gordon, Partner, Capital Research Global Investors, Caroline Randall, Partner, Capital Research Global Investors
and Bradley J. Vogt, Partner, Capital Research Global Investors, serve as equity portfolio managers for the fund. Joyce has 40
years of experience, all with Capital Research and Management Company or affiliate. She has less than 1 year of experience in
managing the fund and 15 years of prior experience as an investment analyst for the fund. Caroline has 23 years of experience
in total (15 years with Capital Research and Management Company or affiliate). She has less than 1 year of experience in managing
the fund. Bradley has 33 years of experience, all with Capital Research and Management Company or affiliate. He has less than
1 year of experience in managing the fund and 15 years of prior experience as an investment analyst for the fund.
2. The following is added to the end of the “Sales charge reductions and waivers” section of the prospectus:
Other sales charge waivers Purchases
of Class A and 529-A shares through a self-clearing broker-dealer firm generally incur a sales charge. However, self-clearing
broker-dealer firms may (i) invest a recontribution of a refunded qualified education expense in 529-A shares without a sales
charge (“refunded 529 expense”) or (ii) extend the 90 day right of reinvestment to allow reinvestment in Class A shares
without a sales charge in cases where fund shareholders request reinvestment of a required minimum distribution from an Individual
Retirement Account if such requirement is waived by regulation or legislation (“waived RMD reinvestment”), provided
that the self-clearing broker-dealer firm has specific language in this prospectus to such effect. If a self-clearing firm does
not have their own policies listed in the prospectus, refunded 529 expenses and waived RMD reinvestments are not available without
a sales charge. Firm specific language is located in the Appendix to the prospectus. A self-clearing broker-dealer firm is a firm
that holds some or all of the assets in your account, executes trades for the assets held on its platform internally rather than
through the fund’s transfer agent or a third-party clearing firm and provides account statements and tax reporting to you.
The largest broker-dealer firms are typically self-clearing. For all other broker-dealer firms shares purchased through a refunded
529 expense or a waived RMD reinvestment are available at net asset value.
For accounts held with the fund’s transfer agent, purchases of shares through refunded 529 expenses and waived RMD reinvestments are not subject to sales charges. If you have any questions, ask your financial advisor whether Class A or 529-A shares purchased through these policies are available without a sales charge.
Recontributions
or waived RMD investments distributed from Class 529-C or Class C shares will be reinvested in the same share class from which
the distribution was made. In addition, any contingent deferred sales charge paid on Class 529-A/Class A and Class 529-C/Class
C share distributions under these policies will be credited to your account when reinvested.
3. The information under the “Plans of distribution” section of the American Funds Global Insight Fund and American
Funds International Vantage Fund prospectuses are amended to read as follows:
Plans of distribution The fund has plans of distribution, or “12b-1 plans,”
for certain share classes under which it may finance activities intended primarily to sell shares, provided that the categories
of expenses are approved in advance by the fund’s board of trustees. The plans provide for payments, based on annualized
percentages of average daily net assets, of:
| Up to: | Share class(es) |
| 0.30% | Class A shares |
| 0.50% | Class T, F-1, 529-A, 529-T, 529-F-1 and R-4 shares |
| 0.75% | Class 529-E and R-3 shares |
| 0.85% | Class R-2E shares |
| 1.00% | Class C, 529-C, R-1 and R-2 shares |
For all share classes indicated above, up to .25% may be used to pay service fees to qualified dealers for providing certain shareholder services. The amount remaining for each share class, if any, may be used for distribution expenses.
The
12b-1 fees paid by each applicable share class of the fund, as a percentage of average net assets for the most recent fiscal year,
are indicated in the Annual Fund Operating Expenses table under “Fees and expenses of the fund” in this prospectus.
Since these fees are paid out of the fund’s assets on an ongoing basis, over time they may cost you more than paying other
types of sales charges or service fees and reduce the return on your investment. The higher fees for Class C shares may cost you
more over time than paying the initial sales charge for Class A or T shares.
4. The information under the heading “Morgan Stanley Wealth Management Class A share front-end
sales charge waiver” in the “Appendix – Sales charge waivers” section of the prospectus is amended to
read as follows:
Morgan Stanley Wealth Management Class A share front-end sales charge waiver
Morgan Stanley Wealth Management clients purchasing or converting to Class A shares of the fund through Morgan Stanley transactional brokerage accounts are entitled to a waiver of the front-end load in the following additional circumstances:
| · | Morgan Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules. |
| · | Shares purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund. |
| · | Class C (level load) share positions that are no longer subject to a contingent deferred sales charge and are converted to a Class A share in the same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program. |
| · | Effective June 1, 2020, Morgan Stanley, on your behalf, can convert Class F-1 shares to Class A shares without a sales charge if they were initially transferred to the transactional brokerage account or converted from Class C shares. |
| · | Shares purchased from the proceeds of redemptions within the same fund family under a Rights of Reinstatement provision, provided the repurchase occurs within 90 days following the redemption, the redemption and purchase |
occur in the same account, and redeemed shares were subject to a front-end or deferred sales load.
Effective June 30, 2020, Morgan Stanley Wealth Management clients purchasing or converting to Class 529-A shares of the fund through Morgan Stanley transactional brokerage accounts are entitled to a waiver of the front-end load in the following additional circumstances:
| · | Shares purchased through a rollover from another 529 plan. |
| · | Recontribution(s) of a refunded qualified higher education expense. |
Unless
specifically described above, no other front-end load waivers are available to mutual fund purchases by Morgan Stanley Wealth
Management clients.
5. The following is added to the end of the “Appendix – Sales charge waivers” section of the prospectus:
Oppenheimer & Co., Inc. (OPCO)
Effective June 1, 2020 shareholders purchasing fund shares through an OPCO platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this fund’s prospectus or SAI.
Front-end sales load waivers on Class A shares available at OPCO
| · | Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family) |
| · | Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (known as Rights of Restatement) |
| · | A shareholder in the fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share class) of the fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO |
| · | Employees and registered representatives of OPCO or its affiliates and their family members |
| · | Directors or trustees of the fund, and employees of the fund’s investment adviser or any of its affiliates, as described in this prospectus |
CDSC waivers on Class A and C shares available at OPCO
| · | Death or disability of the shareholder |
| · | Shares sold as part of a systematic withdrawal plan as described in the fund’s prospectus |
| · | Return of excess contributions from an IRA Account |
| · | Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based on applicable IRS regulations as described in the prospectus |
| · | Shares sold to pay OPCO fees but only if the transaction is initiated by OPCO |
| · | Shares acquired through a right of reinstatement |
Front-end load discounts available at OPCO: breakpoints, rights of accumulation and letters of intent
| · | Breakpoints as described in this prospectus. |
| · | Rights
of accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically
calculated based on the aggregated holding of fund family assets held by accounts within
the purchaser’s household at OPCO. Eligible fund family assets not held at OPCO
may be included in the ROA calculation only if the shareholder notifies his or her financial
advisor about such assets. |
Keep this supplement with your prospectus.
Lit. No. MFGEBS-407-0620P CGD/AFD/10039-S80975
THE FUND MAKES AVAILABLE A SPANISH TRANSLATION OF THE ABOVE PROSPECTUS SUPPLEMENT IN CONNECTION WITH THE PUBLIC OFFERING AND SALE OF ITS SHARES. THE ENGLISH LANGUAGE PROSPECTUS SUPPLEMENT ABOVE IS A FAIR AND ACCURATE REPRESENTATION OF THE SPANISH EQUIVALENT.
| /s/ | JENNIFER L. BUTLER |
| JENNIFER L. BUTLER | |
| SECRETARY | |
| /s/ | STEVEN I. KOSZALKA |
| STEVEN I. KOSZALKA | |
| SECRETARY | |
| /s/ | COURTNEY R. TAYLOR |
| COURTNEY R. TAYLOR | |
| SECRETARY | |
| /s/ | MICHAEL W. STOCKTON |
| MICHAEL W. STOCKTON | |
| SECRETARY |
|
Statement of Additional June 1, 2020
|
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For the following funds with statements of additional information
dated July 1, 2019 – March 1, 2020
(as supplemented to date):
| American Balanced Fund® | Capital World Bond Fund® |
| American Funds Corporate Bond Fund® | Capital World Growth and Income Fund® |
| American Funds Developing World Growth and Income FundSM | Fundamental Investors® |
| American Funds Emerging Markets Bond Fund® | The Growth Fund of America® |
| American Funds Global Balanced FundSM | The Income Fund of America® |
| American Funds Global Insight FundSM | Intermediate Bond Fund of America® |
| American Funds Inflation Linked Bond Fund® | International Growth and Income FundSM |
| American Funds International Vantage FundSM | The Investment Company of America® |
| American Funds Mortgage Fund® | Limited Term Tax-Exempt Bond Fund of America® |
| American Funds Short-Term Tax-Exempt Bond Fund® | The New Economy Fund® |
| American Funds Strategic Bond FundSM | New Perspective Fund® |
| American Funds Tax-Exempt Fund of New York®` | New World Fund, ® Inc. |
| American Funds U.S. Government Money Market FundSM | Short-Term Bond Fund of America® |
| American High-Income Municipal Bond Fund® | SMALLCAP World Fund® |
| American High-Income Trust® | The Tax-Exempt Bond Fund of America® |
| American Mutual Fund® | The Tax-Exempt Fund of California® |
| The Bond Fund of America® | U.S. Government Securities Fund® |
| Capital Income Builder® | Washington Mutual Investors FundSM |
Changes apply to all funds unless otherwise noted below.
1. The table under the heading “Portfolio manager fund holdings and other managed accounts” in the “Management
of the fund” section of The Income Fund of America statement of additional information is amended to read as follows. Footnotes
in the statement of additional information remain unchanged.
| Portfolio manager |
Dollar range of fund shares owned1 |
Number of other registered investment companies (RICs) for which portfolio manager is a manager (assets of RICs in billions)2 |
Number of other pooled investment vehicles (PIVs) for which portfolio manager is a manager (assets of PIVs in billions)2 |
Number of other accounts for which portfolio manager is a manager (assets of other accounts in billions) 2,3 | |||
| Hilda L. Applbaum | Over $1,000,000 | 2 | $148.7 | 2 | $1.41 | None | |
| Andrew B. Suzman | Over $1,000,000 | 21 | $367.1 | 2 | $0.47 | None | |
| David A. Daigle | Over $1,000,000 | 5 | $60.1 | 3 | $0.98 | 2 | $0.69 |
| Paul Flynn | $100,001 – $500,000 | 2 | $6.7 | 3 | $1.76 | None | |
| James R. Mulally | Over $1,000,000 | 7 | $179.9 | 1 | $0.12 | None | |
| Dina N. Perry | Over $1,000,000 | 1 | $101.3 | 2 | $5.61 | None |
| Pramod Atluri | $100,001 – $500,000 | 3 | $204.3 | None | None | |
| Anirudh Samsi | $500,001 – $1,000,000 | 1 | $0.4 | 2 | $1.41 | None |
| Shannon Ward | $100,001 – $500,000 | 3 | $18.1 | 1 | $0.05 | None |
| Joyce E. Gordon | Over $1,000,000 | 5 | $306.0 | 6 | $1.16 | None |
| Caroline Randall | $100,001 – $500,000 | None | 1 | $0.22 | None | |
| Bradley J. Vogt | Over $1,000,000 | 6 | $289.2 | 3 | $2.19 | None |
2. The fourth paragraph under the heading “Moving between share classes” in the “Purchase and exchange of shares”
section is amended to read as follows:
Exchanging Class F shares for Class A shares — You can exchange Class F shares held in a qualified fee-based program
for Class A shares without paying an initial Class A sales charge if you are leaving or have left the fee-based program. Your financial
intermediary can also convert Class F-1 shares to Class A shares without a sales charge if they are held in a brokerage account
and they were initially transferred to the account or converted from Class C shares. You can exchange Class F shares received in
a conversion from Class C shares for Class A shares at any time without paying an initial Class A sales charge if you notify American
Funds Service Company of the conversion when you make your request. If you have already redeemed your Class F shares, the foregoing
requirements apply and you must purchase Class A shares within 90 days after redeeming your Class F shares to receive the Class A
shares without paying an initial Class A sales charge.
3. The following is added to the end of the sub-section captioned “Statement of intention” in the “Sales charge
reductions and waivers” section of the statement of additional information for each of the funds listed above (other than
American Funds U.S. Government Money Market Fund):
The Statement period may be extended in cases where the fund’s distributor determines it is appropriate to do so; for example
in periods when there are extenuating circumstances such as a natural disaster that may limit an individual’s ability to
meet the investment required under the Statement.
Keep this supplement with your statement of additional information.
Lit No. MFGEBS-409-0620O CGD/10149-S80996