497K 1 ica497k.htm THE INVESTMENT COMPANY OF AMERICA ica497k.htm
 
   
 
 
 

 
The Investment
Company of America®
 

 
 
Class
A                 
B                 
C                 
Ticker
AIVSX
AICBX
AICCX
F-1                 
F-2                 
529-A                 
529-B                 
AICFX
ICAFX
CICAX
CICBX
529-C                 
529-E                 
529-F-1
 
CICCX
CICEX
CICFX
 
 
 

 
         
 
Summary prospectus
  
 
March 1, 2011
  
         
         
 
 
Before you invest, you may want to review the fund’s prospectus and statement of additional information, which contain more information about the fund and its risks. You can find the fund’s prospectus, statement of additional information and other information about the fund online at www.americanfunds.com/prospectus. You can also get this information at no cost by calling 800/421-0180 or by sending an e-mail request to prospectus@americanfunds.com. The current prospectus and statement of additional information, dated March 1, 2011, are incorporated by reference into this summary prospectus.
 
  
 
 
 
 
 
 Investment objectives
 
The fund’s investment objectives are to achieve long-term growth of capital and income.
 
 Fees and expenses of the fund
 
This table describes the fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $25,000 in American Funds. More information about these and other discounts is available from your financial professional and in the “Sales charge reductions and waivers” section on page 34 of the prospectus and on page 57 of the fund’s statement of additional information.
 
Shareholder fees
(fees paid directly from your investment)
 
 
Share classes
 
 
A and
529-A
 
B and
529-B
 
C and
529-C
 
529-E
 
F-1, F-2
and
529-F-1
 
Maximum sales charge (load) imposed on purchases (as a percentage of offering price)
5.75%
none
none
none
none
 
Maximum deferred sales charge (load)
(as a percentage of the amount redeemed)
none
5.00%
1.00%
none
none
 
Maximum sales charge (load) imposed on reinvested dividends
none
none
none
none
none
 
Redemption or exchange fees
none
none
none
none
none
 
Maximum annual account fee
(529 share classes only)
$10
$10
$10
$10
$10

Annual fund operating expenses
(expenses that you pay each year as a percentage of the value of your investment)
 
 
Share classes
 
 
A
 
B
 
C
 
F-1
 
F-2
Management fees
 
0.24%
 
0.24%
 
0.24%
 
0.24%
 
0.24%
Distribution and/or service (12b-1) fees
 
0.23
 
1.00
 
1.00
 
0.25
none
Other expenses
 
0.14
 
0.14
 
0.19
 
0.17
 
0.15
Total annual fund operating expenses
 
0.61
 
1.38
 
1.43
 
0.66
 
0.39

 
 
529-A
 
529-B
 
529-C
 
529-E
 
529-F-1
Management fees
 
0.24%
 
0.24%
 
0.24%
 
0.24%
 
0.24%
Distribution and/or service (12b-1) fees
 
0.21
 
1.00
 
0.99
 
0.50
 
0.00
Other expenses
 
0.23
 
0.24
 
0.24
 
0.23
 
0.23
Total annual fund operating expenses
 
0.68
 
1.48
 
1.47
 
0.97
 
0.47
 

 
Page 1
 
Example
 
This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds.
 
The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
 
 
Share classes
 
1 year
 
3 years
 
5 years
 
10 years
A
 
$634
 
$759
 
$  896
 
$1,293
B
 
640
 
837
 
955
 
1,447
C
 
246
 
452
 
782
 
1,713
F-1
 
67
 
211
 
368
 
822
F-2
 
40
 
125
 
219
 
493
529-A
 
660
 
819
 
991
 
1,478
529-B
 
670
 
907
 
1,065
 
1,653
529-C
 
269
 
504
 
860
 
1,857
529-E
 
119
 
348
 
594
 
1,293
529-F-1
 
68
 
190
 
322
 
698
 
For the share classes listed below, you would pay the following if you did not redeem your shares:
 
 
Share classes
 
1 year
 
3 years
 
5 years
 
10 years
B
 
$140
 
$437
 
$755
 
$1,447
C
 
146
 
452
 
782
 
1,713
529-B
 
170
 
507
 
865
 
1,653
529-C
 
169
 
504
 
860
 
1,857
 

 
Portfolio turnover
 
The fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund’s results. During the most recent fiscal year, the fund’s portfolio turnover rate was 23% of the average value of its portfolio.
 
 
Page 2
 
 Principal investment strategies
 
The fund invests primarily in common stocks, most of which have a history of paying dividends. The fund’s investments are limited to securities of companies that are included on its eligible list. In light of the fund’s investment objectives and policies, securities are added to, or deleted from, the eligible list by the fund’s board of trustees after reviewing and acting upon the recommendations of the fund’s investment adviser. The investment adviser bases its recommendations on a number of factors, such as the fund’s investment objectives and policies, whether a company is considered a leader in its industry and a company’s dividend payment prospects. Although the fund focuses on investments in medium to larger capitalization companies, the fund’s investments are not limited to a particular capitalization size. In the selection of common stocks and other securities for investment, potential for capital appreciation and future dividends are given more weight than current yield.
 
The fund may invest up to 15% of its assets, at the time of purchase, in securities of issuers domiciled outside the United States.
 
The investment adviser uses a system of multiple portfolio counselors in managing the fund’s assets. Under this approach, the portfolio of the fund is divided into segments managed by individual counselors who decide how their respective segments will be invested.
 
The fund relies on the professional judgment of its investment adviser to make decisions about the fund’s portfolio investments. The basic investment philosophy of the investment adviser is to seek to invest in attractively valued companies that, in its opinion, represent good, long-term investment opportunities. The investment adviser believes that an important way to accomplish this is through fundamental analysis, which may include meeting with company executives and employees, suppliers, customers and competitors. Securities may be sold when the investment adviser believes that they no longer represent relatively attractive investment opportunities.
 
 Principal risks
 
This section describes the principal risks associated with the fund’s principal investment strategies. You may lose money by investing in the fund. The likelihood of loss may be greater if you invest for a shorter period of time. Investors in the fund should have a long-term perspective and be able to tolerate potentially sharp declines in value.
 
Market conditions — The prices of, and the income generated by, the common stocks and other securities held by the fund may decline due to market conditions and other factors, including those directly involving the issuers of securities held by the fund.
 
 
Page 3
 
Investing in income-oriented stocks — Income provided by the fund may be reduced by changes in the dividend policies of, and the capital resources available at, the companies in which the fund invests.
 
Investing in growth-oriented stocks — Growth-oriented stocks may involve larger price swings and greater potential for loss than other types of investments.
 
Investing outside the United States — Securities of issuers domiciled outside the United States, or with significant operations outside the United States, may lose value because of political, social or economic developments in the country or region in which the issuer operates. These securities may also lose value due to changes in the exchange rate of the country’s currency against the U.S. dollar. Securities markets in certain countries may be more volatile and/or less liquid than those in the United States. Investments outside the United States may also be subject to different settlement and accounting practices and different regulatory, legal and reporting standards than those in the United States.
 
Management — The investment adviser to the fund actively manages the fund’s investments. Consequently, the fund is subject to the risk that the methods and analyses employed by the investment adviser in this process may not produce the desired results. This could cause the fund to lose value or its results to lag relevant benchmarks or other funds with similar objectives.
 
Your investment in the fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency, entity or person. You should consider how this fund fits into your overall investment program.
 
 Investment results
 
The following bar chart shows how the fund’s investment results have varied from year to year, and the following table shows how the fund’s average annual total returns for various periods compare with different broad measures of market results. This information provides some indication of the risks of investing in the fund. Lipper Growth & Income Funds Index includes the fund and other funds that disclose investment objectives that are reasonably comparable to the fund’s objective. Past results (before and after taxes) are not predictive of future results. Updated information on the fund’s results can be obtained by visiting americanfunds.com.
 
 
Page 4
 
 
 
 
 
Highest/Lowest quarterly results during this time period were:
 
Highest                   15.30%                         (quarter ended June 30, 2009)
 
Lowest                  –18.97%                         (quarter ended December 31, 2008)


Average annual total returns
For the periods ended December 31, 2010 (with maximum sales charge):
 
Share class
 
Inception date
 
1 year
 
5 years
 
10 years
 
Lifetime
A − Before taxes
1/1/1934
 
4.50%
 
1.27%
 
2.57%
 
12.07%
− After taxes on distributions
 
 
4.16
 
0.58
 
1.82
N/A
− After taxes on distributions and sale of fund shares
 
3.32
 
1.06
 
2.02
N/A

 
Share class (before taxes)
 
Inception date
 
1 year
 
5 years
 
10 years
 
Lifetime
B
3/15/2000
 
5.03%
 
1.35%
 
2.53%
 
2.94%
C
3/15/2001
 
8.95
 
1.65
 
N/A
 
2.92
F-1
3/15/2001
 
10.78
 
2.45
 
N/A
 
3.73
F-2
8/1/2008
 
11.07
 
N/A
 
N/A
 
2.30
529-A
2/15/2002
 
4.41
 
1.19
 
N/A
 
3.62
529-B
2/15/2002
 
4.87
 
1.23
 
N/A
 
3.52
529-C
2/19/2002
 
8.91
 
1.59
 
N/A
 
3.63
529-E
3/1/2002
 
10.46
 
2.10
 
N/A
 
3.74
529-F-1
9/16/2002
 
11.00
 
2.61
 
N/A
 
6.43

 
Indexes
 
1 year
 
5 years
 
10 years
 
Lifetime
(from Class A
inception)
S&P 500 (reflects no deductions for sales charges, account fees, expenses or taxes)
 
15.08%
 
2.29%
 
1.42%
 
10.66%
Lipper Growth & Income Funds Index (reflects no deductions for sales charges, account fees or taxes)
 
14.22
 
2.11
 
2.51
 
N/A
Class A annualized 30-day yield at December 31, 2010: 1.82%
(For current yield information, please call American FundsLine® at 800/325-3590.)

 
 
 
Page 5
 
After-tax returns are shown only for Class A shares; after-tax returns for other share classes will vary. After-tax returns are calculated using the highest individual federal income tax rates in effect during each year of the periods shown and do not reflect the impact of state and local taxes. Your actual after-tax returns depend on your individual tax situation and likely will differ from the results shown above. In addition, after-tax returns are not relevant if you hold your fund shares through a tax-deferred arrangement, such as a 401(k) plan, individual retirement account (IRA) or 529 college savings plan.
 
 Management
 
Investment adviser
 
Capital Research and Management Company
 
Portfolio counselors
 
The individuals primarily responsible for the portfolio management of the fund are:
 
 
Portfolio counselor/
Fund title (if applicable)
 
Portfolio counselor
experience
in this fund
 
Primary title
with investment adviser
 
James B. Lovelace
Vice Chairman of the Board
 
19 years
 
Senior Vice President –
Capital Research Global Investors
 
Donald D. O’Neal
President and Trustee
 
19 years
 
Senior Vice President –
Capital Research Global Investors
 
Joyce E. Gordon
Senior Vice President
 
10 years
 
Senior Vice President –
Capital Research Global Investors
 
Christopher D. Buchbinder
Vice President
 
4 years
 
Senior Vice President –
Capital Research Global Investors
 
William L. Robbins
Vice President
 
4 years
 
Senior Vice President –
Capital Research Global Investors
 
Eric S. Richter
 
3 years
 
Senior Vice President –
Capital Research Global Investors
 
C. Ross Sappenfield
 
11 years
 
Senior Vice President –
Capital Research Global Investors
 
 
 
Page 6
 
 Purchase and sale of fund shares

 
Purchase minimums (for all share classes)
  
To establish an account (including retirement plan and 529 accounts)
 
$250
For a payroll deduction retirement plan account, payroll deduction
savings plan account or employer-sponsored 529 account
 
25
To add to an account
 
50
For a payroll deduction retirement plan account, payroll deduction
savings plan account or employer-sponsored 529 account
 
25
 
You may sell (redeem) shares through your dealer or financial adviser or by writing to American Funds Service Company at P.O. Box 6007, Indianapolis, Indiana 46206-6007; telephoning American Funds Service Company at 800/421-0180; faxing American Funds Service Company at 888/421-4351; or accessing our website at americanfunds.com.
 
 Tax information
 
Dividends and capital gain distributions you receive from the fund are subject to federal income taxes and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred.
 
 Payments to broker-dealers and other financial intermediaries
 
If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and the fund’s distributor or its affiliates may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your individual financial adviser to recommend the fund over another investment. Ask your individual financial adviser or visit your financial intermediary’s website for more information.
 
 
 
 
 
MFGEIP-904-0311P Litho in USA CGD/RRD/8012
Investment Company File No. 811-00116
The Capital Group Companies
 
 American Funds  Capital Research and Management  Capital International  Capital Guardian  Capital Bank and Trust
 
 
 
 
 
 
   
 
 
 

 
The Investment
Company of America®

 
 
 
 
Class
A                         
R-1                        
R-2                        
Ticker
AIVSX
RICAX
RICBX
R-3                        
R-4                        
R-5                        
R-6                        
RICCX
RICEX
RICFX
RICGX
 
 
 
 
         
 
Summary retirement plan prospectus
  
 
March 1, 2011
  
         
         
 
 
Before you invest, you may want to review the fund’s retirement plan prospectus and statement of additional information, which contain more information about the fund and its risks. You can find the fund’s retirement plan prospectus, statement of additional information and other information about the fund online at www.americanfunds.com/retirementprospectus. You can also get this information at no cost by calling 800/421-0180 or by sending an e-mail request to retirementprospectus@americanfunds.com. The current retirement plan prospectus and statement of additional information, dated March 1, 2011, are incorporated by reference into this summary retirement plan prospectus.
 
  

 
 
 
 
 Investment objectives
 
The fund’s investment objectives are to achieve long-term growth of capital and income.
 
 Fees and expenses of the fund
 
This table describes the fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for a Class A sales charge discount if you and your family invest, or agree to invest in the future, at least $25,000 in American Funds. More information about these and other discounts is available from your financial professional and in the “Sales charge reductions” section on page 23 of the retirement plan prospectus and in the “Sales charge reductions and waivers” section on page 57 of the fund’s statement of additional information.
 
Shareholder fees
(fees paid directly from your investment)
 
 
Class A
 
All R share classes
 
Maximum sales charge (load) imposed on
purchases (as a percentage of offering price)
5.75%
none
 
Maximum deferred sales charge (load)
(as a percentage of the amount redeemed)
none
none
 
Maximum sales charge (load) imposed
on reinvested dividends
none
none
 
Redemption or exchange fees
none
none

Annual fund operating expenses
(expenses that you pay each year as a percentage of the value of your investment)
 
 
Share classes
 
 
A
 
R-1
 
R-2
 
R-3
 
R-4
 
R-5
 
R-6
Management fees
 
0.24%
 
0.24%
 
0.24%
 
0.24%
 
0.24%
 
0.24%
 
0.24%
Distribution and/or service (12b-1) fees
 
0.23
 
0.99
 
0.75
 
0.50
 
0.25
 
none
 
none
Other expenses
 
0.14
 
0.18
 
0.45
 
0.23
 
0.16
 
0.11
 
0.06
Total annual fund operating expenses
 
0.61
 
1.41
 
1.44
 
0.97
 
0.65
 
0.35
 
0.30
 
 
 
Page 1
 
Example
 
This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds.
 
The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
 
 
Share classes
 
1 year
 
3 years
 
5 years
 
10 years
A
 
$634
 
$759
 
$896
 
$1,293
R-1
 
144
 
446
 
771
 
1,691
R-2
 
147
 
456
 
787
 
1,724
R-3
 
99
 
309
 
536
 
1,190
R-4
 
66
 
208
 
362
 
810
R-5
 
36
 
113
 
197
 
443
R-6
 
31
 
97
 
169
 
381
 

 
Portfolio turnover
 
The fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund’s results. During the most recent fiscal year, the fund’s portfolio turnover rate was 23% of the average value of its portfolio.
 
 Principal investment strategies
 
The fund invests primarily in common stocks, most of which have a history of paying dividends. The fund’s investments are limited to securities of companies that are included on its eligible list. In light of the fund’s investment objectives and policies, securities are added to, or deleted from, the eligible list by the fund’s board of trustees after reviewing and acting upon the recommendations of the fund’s investment adviser. The investment adviser bases its recommendations on a number of factors, such as the fund’s investment objectives and policies, whether a company is considered a leader in its industry and a company’s dividend payment prospects. Although the fund focuses on investments in medium to larger capitalization companies, the fund’s investments are not limited to a particular capitalization size. In the selection of common stocks and other securities for investment, potential for capital appreciation and future dividends are given more weight than current yield.
 
 
Page 2
 
The fund may invest up to 15% of its assets, at the time of purchase, in securities of issuers domiciled outside the United States.
 
The investment adviser uses a system of multiple portfolio counselors in managing the fund’s assets. Under this approach, the portfolio of the fund is divided into segments managed by individual counselors who decide how their respective segments will be invested.
 
The fund relies on the professional judgment of its investment adviser to make decisions about the fund’s portfolio investments. The basic investment philosophy of the investment adviser is to seek to invest in attractively valued companies that, in its opinion, represent good, long-term investment opportunities. The investment adviser believes that an important way to accomplish this is through fundamental analysis, which may include meeting with company executives and employees, suppliers, customers and competitors. Securities may be sold when the investment adviser believes that they no longer represent relatively attractive investment opportunities.
 
 Principal risks
 
This section describes the principal risks associated with the fund’s principal investment strategies. You may lose money by investing in the fund. The likelihood of loss may be greater if you invest for a shorter period of time. Investors in the fund should have a long-term perspective and be able to tolerate potentially sharp declines in value.
 
Market conditions — The prices of, and the income generated by, the common stocks and other securities held by the fund may decline due to market conditions and other factors, including those directly involving the issuers of securities held by the fund.
 
Investing in income-oriented stocks — Income provided by the fund may be reduced by changes in the dividend policies of, and the capital resources available at, the companies in which the fund invests.
 
Investing in growth-oriented stocks — Growth-oriented stocks may involve larger price swings and greater potential for loss than other types of investments.
 
Investing outside the United States — Securities of issuers domiciled outside the United States, or with significant operations outside the United States, may lose value because of political, social or economic developments in the country or region in which the issuer operates. These securities may also lose value due to changes in the exchange rate of the country’s currency against the U.S. dollar. Securities markets in certain countries may be more volatile and/or less liquid than those in the United States. Investments outside the United States may also be subject to different settlement and accounting practices and different regulatory, legal and reporting standards than those in the United States.
 
 
Page 3
 
Management — The investment adviser to the fund actively manages the fund’s investments. Consequently, the fund is subject to the risk that the methods and analyses employed by the investment adviser in this process may not produce the desired results. This could cause the fund to lose value or its results to lag relevant benchmarks or other funds with similar objectives.
 
Your investment in the fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency, entity or person. You should consider how this fund fits into your overall investment program.
 
 Investment results
 
The following bar chart shows how the fund’s investment results have varied from year to year, and the following table shows how the fund’s average annual total returns for various periods compare with different broad measures of market results. This information provides some indication of the risks of investing in the fund. Lipper Growth & Income Funds Index includes the fund and other funds that disclose investment objectives that are reasonably comparable to the fund’s objective. Past results are not predictive of future results. Updated information on the fund’s results can be obtained by visiting americanfunds.com.
 
 
 
 
Highest/Lowest quarterly results during this time period were:
 
Highest                   15.30%                         (quarter ended June 30, 2009)
 
Lowest                  –18.97%                         (quarter ended December 31, 2008)
 
 
 
Page 4
 
 
Average annual total returns
For the periods ended December 31, 2010 (with maximum sales charge):
 
Share class
 
Inception date
 
1 year
 
5 years
 
10 years
 
Lifetime
A
1/1/1934
 
4.50%
 
1.27%
 
2.57%
 
12.07%

 
Share class
 
Inception date
 
1 year
 
5 years
 
Lifetime
 
R-1
6/6/2002
 
9.96%
 
1.65%
 
3.86%
 
R-2
5/21/2002
 
9.96
 
1.61
 
3.41
 
R-3
6/4/2002
 
10.45
 
2.12
 
4.19
 
R-4
5/28/2002
 
10.82
 
2.43
 
4.23
 
R-5
5/15/2002
 
11.14
 
2.73
 
4.46
 
R-6
5/1/2009
 
11.16
 
N/A
 
23.40
 

 
Indexes
 
1 year
 
5 years
 
10 years
 
Lifetime
(from Class A
inception)
S&P 500 (reflects no deductions for sales charges, account fees, expenses or taxes)
 
15.08%
 
2.29%
 
1.42%
 
10.66%
Lipper Growth & Income Funds Index (reflects no deductions for sales charges, account fees or taxes)
 
14.22
 
2.11
 
2.51
 
N/A
Class A annualized 30-day yield at December 31, 2010: 1.82%
(For current yield information, please call American FundsLine® at 800/325-3590.)

 
 
 
Page 5
 
 Management
 
Investment adviser
 
Capital Research and Management Company
 
Portfolio counselors
 
The individuals primarily responsible for the portfolio management of the fund are:
 
 
Portfolio counselor/
Fund title (if applicable)
 
Portfolio counselor
experience
in this fund
 
Primary title
with investment adviser
 
James B. Lovelace
Vice Chairman of the Board
 
19 years
 
Senior Vice President –
Capital Research Global Investors
 
Donald D. O’Neal
President and Trustee
 
19 years
 
Senior Vice President –
Capital Research Global Investors
 
Joyce E. Gordon
Senior Vice President
 
10 years
 
Senior Vice President –
Capital Research Global Investors
 
Christopher D. Buchbinder
Vice President
 
4 years
 
Senior Vice President –
Capital Research Global Investors
 
William L. Robbins
Vice President
 
4 years
 
Senior Vice President –
Capital Research Global Investors
 
Eric S. Richter
 
3 years
 
Senior Vice President –
Capital Research Global Investors
 
C. Ross Sappenfield
 
11 years
 
Senior Vice President –
Capital Research Global Investors
 
 
 
Page 6
 
 Purchase and sale of fund shares
 
Eligible retirement plans generally may open an account and purchase Class A or R shares by contacting any investment dealer authorized to sell these classes of the fund’s shares. Investment dealers may impose transaction charges in addition to those described in this summary retirement plan prospectus.
 
Please contact your plan administrator or recordkeeper in order to sell (redeem) shares from your retirement plan.
 
 Tax information
 
Dividends and capital gains distributed by the fund to tax-deferred retirement plan accounts are not currently taxable.
 
 Payments to broker-dealers and other financial intermediaries
 
If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and the fund’s distributor or its affiliates may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your individual financial adviser to recommend the fund over another investment. Ask your individual financial adviser or visit your financial intermediary’s website for more information.
 
 
 
 

RPGEIP-904-0311P Litho in USA CGD/RRD/8036
Investment Company File No. 811-00116
The Capital Group Companies
 
 American Funds  Capital Research and Management  Capital International  Capital Guardian  Capital Bank and Trust
 
 
 
 
 
THE FUND PROVIDES SPANISH TRANSLATION IN CONNECTION WITH THE PUBLIC OFFERING AND SALE OF ITS SHARES. THE FOLLOWING IS A FAIR AND ACCURATE ENGLISH TRANSLATION OF A SPANISH LANGUAGE SUMMARY RETIREMENT PLAN PROSPECTUS FOR THE FUND.
 
/s/
VINCENT P. CORTI
VINCENT P. CORTI
SECRETARY
 
 
 
 
  
 
 
 
 
   
 
 
 

 
The Investment
Company of America®

 
 
 
 
Class
A                         
R-1                        
R-2                        
Ticker
AIVSX
RICAX
RICBX
R-3                        
R-4                        
R-5                        
R-6                        
RICCX
RICEX
RICFX
RICGX
 
 
 
 
         
 
Summary retirement plan prospectus
  
 
March 1, 2011
  
         
         
 
 
Before you invest, you may want to review the fund’s retirement plan prospectus and statement of additional information, which contain more information about the fund and its risks. You can find the fund’s retirement plan prospectus, statement of additional information and other information about the fund online at www.americanfunds.com/
retirementprospectus. You can also get this information at no cost by calling 800/421-0180 or by sending an e-mail request to retirementprospectus@americanfunds.com. The current retirement plan prospectus and statement of additional information, dated March 1, 2011, are incorporated by reference into this summary retirement plan prospectus.
 
  

 
 
 
 
 Investment objectives
 
The fund’s investment objectives are to achieve long-term growth of capital and income.
 
 Fees and expenses of the fund
 
This table describes the fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for a Class A sales charge discount if you and your family invest, or agree to invest in the future, at least $25,000 in American Funds. More information about these and other discounts is available from your financial professional and in the “Sales charge reductions” section on page 23 of the retirement plan prospectus and in the “Sales charge reductions and waivers” section on page 57 of the fund’s statement of additional information.
 
Shareholder fees
(fees paid directly from your investment)
 
 
Class A
 
All R share classes
 
Maximum sales charge (load) imposed on
purchases (as a percentage of offering price)
5.75%
none
 
Maximum deferred sales charge (load)
(as a percentage of the amount redeemed)
none
none
 
Maximum sales charge (load) imposed
on reinvested dividends
none
none
 
Redemption or exchange fees
none
none

Annual fund operating expenses
(expenses that you pay each year as a percentage of the value of your investment)
 
 
Share classes
 
 
A
 
R-1
 
R-2
 
R-3
 
R-4
 
R-5
 
R-6
Management fees
 
0.24%
 
0.24%
 
0.24%
 
0.24%
 
0.24%
 
0.24%
 
0.24%
Distribution and/or service (12b-1) fees
 
0.23
 
0.99
 
0.75
 
0.50
 
0.25
 
none
 
none
Other expenses
 
0.14
 
0.18
 
0.45
 
0.23
 
0.16
 
0.11
 
0.06
Total annual fund operating expenses
 
0.61
 
1.41
 
1.44
 
0.97
 
0.65
 
0.35
 
0.30
 
 
 
Page 1
 
Example
 
This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds.
 
The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
 
 
Share classes
 
1 year
 
3 years
 
5 years
 
10 years
A
 
$634
 
$759
 
$896
 
$1,293
R-1
 
144
 
446
 
771
 
1,691
R-2
 
147
 
456
 
787
 
1,724
R-3
 
99
 
309
 
536
 
1,190
R-4
 
66
 
208
 
362
 
810
R-5
 
36
 
113
 
197
 
443
R-6
 
31
 
97
 
169
 
381
 

 
Portfolio turnover
 
The fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund’s results. During the most recent fiscal year, the fund’s portfolio turnover rate was 23% of the average value of its portfolio.
 
 Principal investment strategies
 
The fund invests primarily in common stocks, most of which have a history of paying dividends. The fund’s investments are limited to securities of companies that are included on its eligible list. In light of the fund’s investment objectives and policies, securities are added to, or deleted from, the eligible list by the fund’s board of trustees after reviewing and acting upon the recommendations of the fund’s investment adviser. The investment adviser bases its recommendations on a number of factors, such as the fund’s investment objectives and policies, whether a company is considered a leader in its industry and a company’s dividend payment prospects. Although the fund focuses on investments in medium to larger capitalization companies, the fund’s investments are not limited to a particular capitalization size. In the selection of common stocks and other securities for investment, potential for capital appreciation and future dividends are given more weight than current yield.
 
 
Page 2
 
The fund may invest up to 15% of its assets, at the time of purchase, in securities of issuers domiciled outside the United States.
 
The investment adviser uses a system of multiple portfolio counselors in managing the fund’s assets. Under this approach, the portfolio of the fund is divided into segments managed by individual counselors who decide how their respective segments will be invested.
 
The fund relies on the professional judgment of its investment adviser to make decisions about the fund’s portfolio investments. The basic investment philosophy of the investment adviser is to seek to invest in attractively valued companies that, in its opinion, represent good, long-term investment opportunities. The investment adviser believes that an important way to accomplish this is through fundamental analysis, which may include meeting with company executives and employees, suppliers, customers and competitors. Securities may be sold when the investment adviser believes that they no longer represent relatively attractive investment opportunities.
 
 Principal risks
 
This section describes the principal risks associated with the fund’s principal investment strategies. You may lose money by investing in the fund. The likelihood of loss may be greater if you invest for a shorter period of time. Investors in the fund should have a long-term perspective and be able to tolerate potentially sharp declines in value.
 
Market conditions — The prices of, and the income generated by, the common stocks and other securities held by the fund may decline due to market conditions and other factors, including those directly involving the issuers of securities held by the fund.
 
Investing in income-oriented stocks — Income provided by the fund may be reduced by changes in the dividend policies of, and the capital resources available at, the companies in which the fund invests.
 
Investing in growth-oriented stocks — Growth-oriented stocks may involve larger price swings and greater potential for loss than other types of investments.
 
Investing outside the United States — Securities of issuers domiciled outside the United States, or with significant operations outside the United States, may lose value because of political, social or economic developments in the country or region in which the issuer operates. These securities may also lose value due to changes in the exchange rate of the country’s currency against the U.S. dollar. Securities markets in certain countries may be more volatile and/or less liquid than those in the United States. Investments outside the United States may also be subject to different settlement and accounting practices and different regulatory, legal and reporting standards than those in the United States.
 
 
Page 3
 
Management — The investment adviser to the fund actively manages the fund’s investments. Consequently, the fund is subject to the risk that the methods and analyses employed by the investment adviser in this process may not produce the desired results. This could cause the fund to lose value or its results to lag relevant benchmarks or other funds with similar objectives.
 
Your investment in the fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency, entity or person. You should consider how this fund fits into your overall investment program.
 
 Investment results
 
The following bar chart shows how the fund’s investment results have varied from year to year, and the following table shows how the fund’s average annual total returns for various periods compare with different broad measures of market results. This information provides some indication of the risks of investing in the fund. Lipper Growth & Income Funds Index includes the fund and other funds that disclose investment objectives that are reasonably comparable to the fund’s objective. Past results are not predictive of future results. Updated information on the fund’s results can be obtained by visiting americanfunds.com.
 
 
 
 
Highest/Lowest quarterly results during this time period were:
 
Highest                   15.30%                         (quarter ended June 30, 2009)
 
Lowest                  –18.97%                         (quarter ended December 31, 2008)
 
 
 
Page 4
 
 
Average annual total returns
For the periods ended December 31, 2010 (with maximum sales charge):
 
Share class
 
Inception date
 
1 year
 
5 years
 
10 years
 
Lifetime
A
1/1/1934
 
4.50%
 
1.27%
 
2.57%
 
12.07%

 
Share class
 
Inception date
 
1 year
 
5 years
 
Lifetime
 
R-1
6/6/2002
 
9.96%
 
1.65%
 
3.86%
 
R-2
5/21/2002
 
9.96
 
1.61
 
3.41
 
R-3
6/4/2002
 
10.45
 
2.12
 
4.19
 
R-4
5/28/2002
 
10.82
 
2.43
 
4.23
 
R-5
5/15/2002
 
11.14
 
2.73
 
4.46
 
R-6
5/1/2009
 
11.16
 
N/A
 
23.40
 

 
Indexes
 
1 year
 
5 years
 
10 years
 
Lifetime
(from Class A
inception)
S&P 500 (reflects no deductions for sales charges, account fees, expenses or taxes)
 
15.08%
 
2.29%
 
1.42%
 
10.66%
Lipper Growth & Income Funds Index (reflects no deductions for sales charges, account fees or taxes)
 
14.22
 
2.11
 
2.51
 
N/A
Class A annualized 30-day yield at December 31, 2010: 1.82%
(For current yield information, please call American FundsLine® at 800/325-3590.)

 
 
 
Page 5
 
 Management
 
Investment adviser
 
Capital Research and Management Company
 
Portfolio counselors
 
The individuals primarily responsible for the portfolio management of the fund are:
 
 
Portfolio counselor/
Fund title (if applicable)
 
Portfolio counselor
experience
in this fund
 
Primary title
with investment adviser
 
James B. Lovelace
Vice Chairman of the Board
 
19 years
 
Senior Vice President –
Capital Research Global Investors
 
Donald D. O’Neal
President and Trustee
 
19 years
 
Senior Vice President –
Capital Research Global Investors
 
Joyce E. Gordon
Senior Vice President
 
10 years
 
Senior Vice President –
Capital Research Global Investors
 
Christopher D. Buchbinder
Vice President
 
4 years
 
Senior Vice President –
Capital Research Global Investors
 
William L. Robbins
Vice President
 
4 years
 
Senior Vice President –
Capital Research Global Investors
 
Eric S. Richter
 
3 years
 
Senior Vice President –
Capital Research Global Investors
 
C. Ross Sappenfield
 
11 years
 
Senior Vice President –
Capital Research Global Investors
 
 
 
Page 6
 
 Purchase and sale of fund shares
 
Eligible retirement plans generally may open an account and purchase Class A or R shares by contacting any investment dealer authorized to sell these classes of the fund’s shares. Investment dealers may impose transaction charges in addition to those described in this summary retirement plan prospectus.
 
Please contact your plan administrator or recordkeeper in order to sell (redeem) shares from your retirement plan.
 
 Tax information
 
Dividends and capital gains distributed by the fund to tax-deferred retirement plan accounts are not currently taxable.
 
 Payments to broker-dealers and other financial intermediaries
 
If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and the fund’s distributor or its affiliates may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your individual financial adviser to recommend the fund over another investment. Ask your individual financial adviser or visit your financial intermediary’s website for more information.
 
 
 
 

RPGEIP-904-0311P Litho in USA CGD/RRD/8036
Investment Company File No. 811-00116
The Capital Group Companies
 
 American Funds  Capital Research and Management  Capital International  Capital Guardian  Capital Bank and Trust