The American Funds® Group is a broadly diversified family of 31 funds—a portfolio for every investor. With more than $1 trillion in investments and over 50 million shareholder accounts, The American Funds Group is the nation's second largest mutual fund company.

The American Funds is managed by Capital Research and Management Company—one of The Capital Group Companies. It manages global financial assets for individual, corporate and institutional investors in the U.S.

50 years ago, American Funds developed a unique approach to managing investments that blends teamwork with individual accountability; the multiple portfolio counselor system. It has provided a sustainable method of achieving fund objectives.

Assets of each fund are divided into smaller, more manageable portions. Each portion is managed by a portfolio counselor who operates autonomously, investing his or her portion as though it were an entire fund—subject to fund objectives and overall guidelines.

A group of research analysts typically manages one portion (usually about 20% - 30% of assets), bringing additional expertise directly to bear on fund results.

• Diversity—Because each investment professional offers unique expertise and has different convictions, this approach magnifies the benefits of diversification inherent in mutual fund investing.
  
  
• Consistency—Over time, having more than one person managing assets has tended to smooth out the peaks and valleys of investing.
  
  
• Continuity—When one counselor retires or changes responsibilities, only a portion of portfolio control changes hands. Smooth, gradual transitions help the fund's investment approach remain consistent.
  
  
• Manageability—Portfolio counselors and analysts can focus on the companies they really like and understand, and they can act independently on their best ideas, with no need for consensus. What's more, additional counselors can be added to funds as assets grow.

To invest successfully in U.S. companies, you have to understand what their global competition is doing. Last year, on average, American Funds spent $130 million on investment research, making thousands of research visits in more than 70 countries.

• traveling millions of miles meeting executives, industry specialists, economists and government officials
  
  
• visiting with companies before—and after—investing
  
  
• meeting a company's suppliers, bankers, customers and competitors
  
  
• talking to other Capital associates with knowledge in relevant areas

Their industry specialists regularly share information with counterparts who work for their other affiliates, providing extraordinary industry coverage—more than 20 experts in various aspects of the telecommunications industry alone, for example. In addition, people with different responsibilities often make joint visits to companies in order to contribute unique perspectives to investment decisions. The result is a breadth of knowledge and understanding individual investors could not achieve on their own.

Lower annual expenses mean more money for American Funds shareholders over the long term.

You can't control market returns, but you can control what you invest in and how much you pay to own it. Many investors look only at the initial cost when selecting an investment. In fact, ongoing annual expenses can have an even greater impact on returns. They don't realize that it's important to consider both the price to acquire a mutual fund and the cost to own one.

At American Funds, their operating expenses are among the industry's lowest. Here's why:

• They have a large asset base, but relatively few funds, which allows them to pass along economies of scale to their shareholders.
  
  
• They believe in providing good value for the service they render.

No matter which share class you select, the funds will be among the low-cost options for comparable funds.

To be effective, a global organization must be multinational, multilingual and multicultural. That's why the American Funds family has more than 170 investment professionals—who speak nearly two dozen languages—based around the world.

The above information was provided by American Funds. For further information visit www.americanfunds.com.