AMERICAN FUNDS INVESTMENT OPTIONS

Fund Objective:

Seeks to provide long-term growth of capital through investments all over the world, including the United States.

Distinguishing Characteristics:

Diversifies among blue chip companies in the United States and abroad, emphasizing multinational or global companies and focusing on opportunities generated by changes in global trade patterns and economic and political relationships.

Types of Investments:

The fund invests primarily in common stocks, convertibles, preferred stocks, bonds and cash.

Non-U.S. Holdings:

The fund may invest up to 100% of assets outside the United States, though in practice this is unlikely since New Perspective Fund is a global fund. There have been many periods, however, when more than 75% of assets have been invested outside the United States.

Seeks to provide long-term growth of capital by investing in the stocks of smaller companies in the United States and around the world.

Distinguishing Characteristics:

One of few small-company growth funds that invests globally. Normally, at least 80% of assets will be invested in equities of issuers having market capitalizations of less than $3.5 billion, measured at time of purchase.

Types of Investments:

The fund invests in common stocks, government and corporate debt, and cash and equivalents.

Non-U.S. Holdings:

There is no specific limit. Historically, the fund has invested a substantial portion of assets in the U.S. because of the number of small-cap opportunities.

Fund Objective:

Seeks to provide current income and the opportunity for growth of principal consistent with sound common-stock investing.

Distinguishing Characteristics:

The fund seeks to be at least 95% invested in equity-type securities. The fund invests in stocks that meet strict standards evolving from requirements originally established by the U.S. District Court for the District of Columbia for the investment of trust funds. May not invest in companies that derive their primary revenues from alcohol or tobacco.

Types of Investments:

Invests in common stocks and securities convertible into common stocks. See a view of what you owned as of the last quarter-end based on the fund's fiscal calendar for details.

Non-U.S. Holdings:

Companies purchased must be based in the United States or included in the S&P 500.

Strives to provide for the balanced accomplishment of three objectives — current income, capital growth and conservation of principal.

Distinguishing Characteristics:

The fund is conservatively managed to reduce volatility and risk. It has historically produced income well above that of the S&P 500. The fund does not own securities of companies that derive the majority of their revenues from tobacco and/or alcohol.

Types of Investments:

The fund invests primarily in common stocks, securities convertible into common stocks, nonconvertible preferred stocks, U.S. government securities, bonds rated A or better and cash.

Non-U.S. Holdings:

Companies owned must be based in the United States or Canada or included in the S&P 500.

Seeks to provide current income and, secondarily, growth of capital through a flexible mix of equity and debt instruments.

Distinguishing Characteristics:

Seeks investments in both the stock and bond markets that provide an opportunity for above-average current income and long-term capital growth. The fund has typically provided income well in excess of that provided by stocks in general.

Types of Investments:

Invests primarily in common or preferred stocks, convertible securities, bonds, U.S. and non-U.S. government securities, cash and equivalents.

Non-U.S. Holdings:

The fund may invest up to 20% of assets in equities of non-U.S. companies and up to 10% of assets in fixed-income securities of non-U.S. issuers denominated in U.S. dollars.

Portfolio Restrictions:

The fund may invest only 20% of its assets in securities rated below investment grade.