Thank you for choosing American Funds

With hundreds of fund families and nearly 8,000 mutual funds to choose from, we are pleased you have selected American Funds to help you achieve your long-term financial goals. We take our relationship with shareholders seriously and look forward to helping you make the most of your investment with us.

This booklet is intended to guide you through the many services available to you as an American Funds shareholder and answer questions you may have about your investment.

An electronic version of this booklet can be downloaded from americanfunds.com. Inside you will find:
• what is available on the American Funds websites
• fund and account information
• ways to track your investment
• how to sign up for automatic account deposits and/or withdrawals
• how to use FundsLink® — a 24-hour service linking transactions directly to your bank account
• tax information
• a glossary of terms

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

The return of principal in bond funds is not guaranteed. Bond funds have the same interest rate, inflation and credit risks that are associated with the underlying bonds owned by the fund.

Equity investments are subject to market fluctuations. High-yield bonds are subject to greater default risk than investment-grade bonds. Investing outside the United States is subject to additional risks, such as currency fluctuations and political instability, which are detailed in each fund’s prospectus. Investing in small-capitalization stocks can involve additional risks.

Download American Funds Shareholder Reference Guide

PDF format, 520KB, 28Pages.

American Funds ranks among the nation’s three largest mutual fund families, with more than $900 billion in assets under management. Our funds are distributed exclusively through financial advisers because we believe all investors benefit from ongoing professional advice.

We offer 30 funds, including stock, bond, money market and balanced funds, which invest in securities from the United States and around the world. In addition, we offer a series of target date funds for IRAs and tax-deferred retirement plans. We also offer the CollegeAmerica 529 savings plan, as well as a full range of retirement plans.

Visit American Funds Website

American Funds has been managing investors’ assets since 1931. We take a conservative long-term approach that’s consistent with the needs of most people saving for the future. That’s why the great majority of our investments are intended for retirement.

At American Funds, we know how important it is to select an experienced manager who understands the value of your trust. This is just one example of what makes us different.

Glossary

appreciation — Increase or gain in the value of an asset.

asset — Any item of monetary value owned by an individual or business organization. Mutual fund assets can include stocks, bonds, notes, CDs and cash.

asset allocation — The process of dividing investment dollars among different kinds of assets, such as cash, bonds and stocks.

average annual total return — The average annual profit or loss realized by an investment over a given period (e.g., five years, 10 years, lifetime of the fund). It is expressed as a percentage.

bond — A debt instrument issued by a government, government agency or corporation for the purpose of raising capital. Usually the issuer promises to pay back the loan on a specified date (the maturity date) and make regular interest payments up until that date.

bond rating — An evaluation by a rating agency of the quality and safety of a bond. The rating is based on the issuer’s financial condition and ability to meet scheduled interest and principal repayments. Typically, a AAA rating is the best and a D is the worst.

calendar quarter — One of the four three-month periods ending on either March 31, June 30, September 30 or December 31 that together comprise a calendar year. A mutual fund’s fiscal year does not necessarily start on January 1, thus its fiscal quarters may not coincide with the calendar quarters.

capital gain distribution — A periodic payment to mutual fund shareholders of profits realized on the sale of a fund’s securities. Most funds offer shareholders the option of using these distributions to purchase additional shares in the fund.

certificate of deposit (CD) — An FDIC-insured, short- or medium-term, interest-bearing debt instrument offered by banks and savings and loans.

contingent deferred sales charge (CDSC) — A sales fee charged to an investor by a mutual fund in the event that the investor elects to sell fund shares before a specified period of time has elapsed.

depreciation — Decrease or loss in the value of an asset.

distribution — The payment to shareholders of a dividend or capital gain.

dividend — In the case of mutual funds, dividends are declared by a fund’s board of directors and paid to its shareholders out of current income and interest generated by investments.

equity — Ownership interest in a company in the form of common or preferred stock. Often used as a synonym for stock.

expenses — A mutual fund’s annual cost of doing business, including operating costs and management, distribution and administration fees. Fund expenses are reported in a fund’s prospectus as a percentage of average net assets.

fixed-income security — An investment such as a bond, which pays a specific interest rate.

holding — An asset within a portfolio.

income — In the case of mutual funds, the amount of cash from dividends or interest that is received from financial investments.

market value — The value of a particular security, generally based on the most recently reported sale price.

money market — A market for debt instruments with a maturity of one year or less. A money market investment is usually stable and highly liquid (easily convertible into cash).

mutual fund — An investment company that pools money from shareholders and invests in a group of assets in an effort to achieve specific objectives over time. Benefits to shareholders include portfolio diversification and professional money management. Types of mutual funds include growth, growth-andincome, equity-income, balanced, bond, tax-exempt bond and money market.

net asset value (NAV) — The value of a fund share, based on the market value of the assets of the fund minus its liabilities, divided by the number of shares outstanding.

portfolio — The complete listing of assets held by an individual or mutual fund.

portfolio counselor — A financial professional responsible for managing portfolio holdings and identifying the best opportunities for profit within the goals and objectives of a mutual fund.

purchase blocking policy — A policy under which an American Funds shareholder redeeming shares (including redemptions that are part of an exchange transaction) with a value of $5,000 or more from a fund will be precluded from investing in that fund for 30 calendar days after the redemption transaction.

sales charge — A fee applied to the purchase of a mutual fund. It is typically paid to financial advisers for their guidance.

Securities and Exchange Commission (SEC) — The primary federal agency that regulates mutual funds, registered investment advisers and the stock and bond markets. Its responsibilities include enforcing full disclosure and protecting investors against fraudulent and manipulative practices in the securities markets.

security — A stock, bond, note or other investment instrument.

share — A unit of ownership in a company or mutual fund.

share class — A particular type of a given security. Mutual fund shares may be separated into multiple classes for purposes of offering different fee structures.

stock — A security that represents part ownership, or equity, in a company or mutual fund, and a claim on its proportionate share of the business organization’s assets and profits.

30-day yield — The 30-day rate of income return on an investment, stated as a percentage. It is calculated by an SEC formula reflecting income from the hypothetical sale of a mutual fund’s current portfolio.

total return — The total profit or loss on an investment over a given period. The figure includes income from dividends and interest, as well as appreciation or depreciation in the asset’s market value.

U.S. Treasuries — Negotiable U.S. government debt obligations, backed by the full faith and credit of the government.

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