The
American
Funds
Group(R)
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New World
Fund
Prospectus
New World Fund seeks to make your investment grow over time by investing
primarily in stocks of companies with significant exposure to countries with
developing economies and/or markets.
American Funds Distributors, as principal underwriter, has entered into
agreements with a selected group of securities dealers to solicit subscriptions
for shares of the fund during an initial offering period that will terminate on
the settlement date, June 17, 1999. Purchases may not be made by exchanging
shares from other funds in The American Funds Group.
The fund will reopen on September 15, 1999, and shares of the fund will be
continuously offered thereafter.
THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED OF THESE
SECURITIES. FURTHER, IT HAS NOT DETERMINED THAT THIS PROSPECTUS IS TRUTHFUL OR
COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
APRIL 19, 1999
(AMENDED MAY 13, 1999)
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New World Fund, Inc.
333 South Hope Street
Los Angeles, California 90071
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TABLE OF CONTENTS
Risk/Return Summary 2
.............................................................................
Fees and Expenses of the Fund 3
.............................................................................
Investment Objective, Strategies and Risks 4
.............................................................................
Year 2000 6
.............................................................................
Management and Organization 6
.............................................................................
Shareholder Information 8
.............................................................................
Purchase and Exchange of Shares 9
.............................................................................
How to Sell Shares 13
.............................................................................
Distribution Arrangements 14
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New World Fund / Prospectus 1
36-010-0499/RRD
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RISK/RETURN SUMMARY
The fund seeks to make your investment grow over time by investing primarily in
stocks of companies with significant exposure to countries with developing
economies and/or markets. The fund may also invest in debt securities of
issuers, including issuers of high-yield, high-risk bonds, with exposure to
these countries.
The fund is designed for investors seeking capital appreciation. Investors in
the fund should have a long-term perspective and be able to tolerate
potentially wide price fluctuations. An investment in the fund is subject to
risks, including the possibility that the fund may decline in value in response
to economic, political and social events in the U.S. or abroad. In addition,
the prices of equity securities will be affected by events specifically
involving the companies whose securities are owned by the fund. The value of
debt securities held by the fund may be affected by changing interest rates and
credit ratings. High-yield, high-risk and longer maturity bonds will be subject
to greater credit risk and price fluctuations than higher quality and shorter
maturity bonds.
Although all securities in the fund's portfolio, including U.S. securities, may
be adversely affected by currency fluctuations or world political, social and
economic instability, investments outside the U.S., particularly in countries
with developing economies or markets, may be affected to a greater extent.
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 government
agency, entity or person.
You may lose money by investing in the fund. The likelihood of loss is greater
if you invest for a shorter period of time.
2 New World Fund / Prospectus
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FEES AND EXPENSES OF THE FUND
The following describes the fees and expenses that you may pay if you buy and
hold shares of the fund.
Shareholders Fees
(fees paid directly from your investment)
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Maximum sales charge imposed on purchases
(as a percentage of offering price) 5.75%/1/
................................................................................
Maximum sales charge imposed on reinvested dividends 0%
................................................................................
Maximum deferred sales charge 0%/2/
................................................................................
Redemption or exchange fees 0%
/1/ Sales charges are reduced or eliminated for larger purchases.
/2/ A contingent deferred sales charge of 1% applies to certain redemptions
made within 12 months following any purchases you made without a sales
charge.
Annual Fund Operating Expenses/1/
(expenses deducted from fund assets)
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Management Fees .85%
................................................................................
Service (12b-1) Fees .10%/2/
................................................................................
Other Expenses .29%
................................................................................
Total Annual Fund Operating Expenses 1.24%
/1/ Based on estimated amounts for the current fiscal year.
/2/ 12b-1 expenses may not exceed 0.30% of the fund's average net assets
annually.
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:
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One year $694
................................................................................
Three years $946
................................................................................
New World Fund / Prospectus 3
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INVESTMENT OBJECTIVE, STRATEGIES AND RISKS
The fund's investment objective is long-term capital appreciation. The fund may
invest in equity securities of any company, regardless of where it is based, if
the fund's investment adviser determines that a significant portion of a
company's assets or revenues (generally 20% or more) is attributable to
developing countries. Under normal market conditions, the fund will invest at
least 35% of its assets in equity and debt securities of issuers primarily based
in "qualified" countries that have developing economies and/or markets. In
addition, the fund may invest up to 25% of its assets in debt securities of
issuers, including issuers of high-yield, high-risk and government bonds,
primarily based in qualified countries or that have a significant portion of
their assets or revenues attributable to developing countries.
In determining whether a country is qualified, the fund will consider such
factors as the country's per capita gross domestic product, the percentage of
the country's economy that is industrialized, market capital as a percentage of
gross domestic product, the overall regulatory environment, the presence of
government regulation limiting or banning foreign ownership, and restrictions on
repatriation of initial capital, dividends, interest, and/or capital gains. The
fund's investment adviser, Capital Research and Management Company, will
maintain an eligible list of qualified countries and securities in which the
fund may invest. Qualified developing countries in which the fund may invest
currently include, but are not limited to Argentina, Brazil, Chile, China,
Columbia, Czech Republic, Greece, Hungary, India, Israel, Jordan, Malaysia,
Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, South Korea,
Thailand, Turkey and Venezuela.
The prices of equity securities will decline in response to certain events,
including those directly involving the companies whose securities are owned in
the fund, adverse conditions affecting the general economy, overall market
declines, world political, social and economic instability, and currency
fluctuations. Investments outside the U.S. may be affected by these events to a
greater extent and may also be affected by differing securities regulations,
higher transaction costs, and administrative difficulties such as delays in
clearing and settling portfolio transactions.
Investing in countries with developing economies and/or markets generally
involves risks in addition to and greater than those generally associated with
investing in developed countries. For instance, developing countries may have
less developed legal and accounting systems. The governments of these countries
may be more unstable and likely to impose capital controls, nationalize a
company or industry, place restrictions on foreign ownership and on withdrawing
sale proceeds of securities from the country, and/or impose punitive taxes that
4 New World Fund / Prospectus
could adversely affect security prices. In addition, the economies of these
countries may be dependent on relatively few industries that are more
susceptible to local and global changes. Securities markets in these countries
are also relatively small and have substantially lower trading volumes. As a
result, securities issued in these countries may be more volatile and
potentially less liquid than securities issued in countries with more developed
economies or markets.
The value of debt securities held by the fund may be affected by the risks
described above, as well as for developing countries, by factors such
as changing interest rates, credit ratings, and effective maturities. For
example, the value of bonds in the fund's portfolio generally will decline when
in terest rates rise and vice versa. In addition, the values of high-yield,
high-risk and longer maturity bonds will be subject to greater credit risk and
price fluctuations than higher quality and shorter maturity bonds.
The fund may also hold cash or money market instruments of any issuer to any
extent deemed appropriate. The size of the fund's cash position will vary and
will depend on various factors, including market conditions and purchases and
redemptions of fund shares. A larger cash position could detract from the
achievement of the fund's objective, but it also provides greater liquidity to
meet redemptions or to make additional investments, and it would reduce the
fund's exposure in the event of a market downturn.
The fund relies on the professional judgment of Capital Research and Management
Company to make decisions about the fund's portfolio securities. The basic
investment philosophy of Capital Research and Management Company is to seek
undervalued securities that represent good long-term investment opportunities.
Securities may be sold when they are judged to no longer represent good long-
term value.
New World Fund / Prospectus 5
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YEAR 2000
The date-related computer issue known as the "Year 2000 problem" could have an
adverse impact on the quality of services provided to the fund and its
shareholders. However, the fund understands that its key service providers --
including the investment adviser and its affiliates -- are taking steps to
address the issue. In addition, the Year 2000 problem may adversely affect the
issuers in which the fund invests. For example, issuers may incur substantial
costs to address the problem. They may also suffer losses caused by corporate
and governmental data processing errors. These risks may be particularly acute
in certain developing countries in which the fund may invest and may adversely
affect the fund's net asset value and total return. The fund and its investment
adviser will continue to monitor developments relating to this issue.
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MANAGEMENT AND ORGANIZATION
Investment Adviser
Capital Research and Management Company, an experienced investment management
organization founded in 1931, serves as investment adviser to the fund and
other funds, including those in The American Funds Group. Capital Research and
Management Company, a wholly owned subsidiary of The Capital Group Companies,
Inc., is headquartered at 333 South Hope Street, Los Angeles, CA 90071. Capital
Research and Management Company manages the investment portfolio and business
affairs of the fund. The estimated total management fee to be paid by the fund,
as a percentage of average net assets, is discussed earlier under "Fees and
Expenses of the Fund."
Capital Research and Management Company and its affiliated companies have
adopted a personal investing policy that is consistent with the recommendations
contained in the May 9, 1994 report issued by the Investment Company
Institute's Advisory Group on Personal Investing. This policy has also been
incorporated into the fund's code of ethics.
6 New World Fund / Prospectus
Multiple Portfolio Counselor System
Capital Research and Management Company uses a system of multiple portfolio
counselors in managing mutual fund assets. Under this approach the portfolio of
a fund is divided into segments managed by individual counselors. Counselors
decide how their respective segments will be invested, within the limits
provided by a fund's objective(s) and policies and by Capital Research and
Management Company's investment committee. In addition, Capital Research and
Management Company's research professionals may make investment decisions with
respect to a portion of a fund's portfolio. The primary individual portfolio
counselors for New World Fund are listed below.
<TABLE>
Approximate
Years of Experience as an
Investment Professional
(including the last five years)
................................
With Capital
Portfolio Years of Experience Research and
Counselors as Portfolio Counselor Management
for New World for New World Fund Company or
Fund Primary Title(s) (approximate) Affiliates Total Years
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Robert W. President of the Less than one year 14 years 14 years
Lovelace fund. Executive (since the fund began
Vice President operations)
and Director,
Capital Research
Company*
------------------------------------------------------------------------------------------------
Mark E. Denning Senior Vice Less than one year 17 years 17 years
President of the (since the fund began
fund. Director, operations)
Capital Research
and Management
Company
------------------------------------------------------------------------------------------------
David C. Barclay Vice President of Less than one year 11 years 18 years
the fund. Vice (since the fund began
President, Capital operations)
Research and
Management Company.
------------------------------------------------------------------------------------------------
Alwyn Heong Vice President of Less than one year 7 years 11 years
the fund. Vice (since the fund began
President, Capital operations)
Research Company*
------------------------------------------------------------------------------------------------
Carl M. Kawaja Vice President of Less than one year 8 years 12 years
the fund. Vice (since the fund began
President, Capital operations)
Research Company*
------------------------------------------------------------------------------------------------
</TABLE>
The fund will begin operations June 17, 1999.
* Company affiliated with Capital Research and Management Company.
New World Fund / Prospectus 7
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SHAREHOLDER INFORMATION
Shareholder Services
American Funds Service Company, the fund's transfer agent, offers you a wide
range of services you can use to alter your investment program should your
needs and circumstances change. These services are available only in states
where they may be legally offered and may be terminated or modified at any time
upon 60 days written notice. For your convenience, American Funds Service
Company has four service centers across the country.
[MAPS APPEARS HERE]
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Call toll-free from anywhere anywhere in the U.S.
(8 a.m. to 8 p.m. ET):
800/421-0180
Western Western Central Eastern Central Eastern
Service Center Service Center Service Center Service Center
American Funds American Funds American Funds American Funds
Service Company Service Company Service Company Service Company
P.O. Box 2205 P.O. Box 659522 P.O. Box 6007 P.O. Box 2280
Brea, California San Antonio, Texas Indianapolis, Indiana Norfolk, Virginia
92822-2205 78265-9522 46206-6007 23501-2280
Fax: 714/671-7080 Fax: 210/474-4050 Fax: 317/735-6620 Fax: 757/670-4773
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A complete description of the services we offer is described in the fund's
statement of additional information. In addition, an easy-to-read guide to
owning a fund in The American Funds Group titled "Welcome to the Family" is
sent to new shareholders and is available by writing or calling American Funds
Service Company.
YOU MAY INVEST IN THE FUND THROUGH VARIOUS RETIREMENT PLANS.However, some re-
tirement plans or accounts held by investment dealers may not offer certain
services. If you have any questions, please contact your plan
administrator/trustee or dealer.
8 New World Fund / Prospectus
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PURCHASE AND EXCHANGE OF SHARES
Initial Offering
American Funds Distributors will serve as the principal underwriter for the
fund's shares and will enter into agreements with a selected group of
securities dealers who will use their best efforts to solicit orders to purchase
shares of the fund. Dealers may obtain non-binding indications of interest
prior to actually confirming any orders. The termination date of the offering
is June 17, 1999, the settlement date for subscriptions accepted during the
offering. Any payments received by a dealer or by American Funds Distributors
prior to the settlement date will be held in a non-interest bearing bank
account. Shares of the fund may be purchased only through those dealers that are
registered, if required, in the state where the purchase is made.
A minimum purchase of 200 shares ($5,000 at the maximum offering price) is
required to invest in the fund during the offering, except that for retirement
plans, such as IRAs, this minimum is reduced to 60 shares ($1,500 at the
maximum offering price). For Education IRAs the minimum is further reduced to 20
shares ($500 at the maximum offering price). The shares are offered at a
maximum offering price of $25.00 per share, which is equal to the net asset
value per share plus a sales charge. The sales charge will be reduced for large
purchases in the amount indicated below, but in all cases, the fund will receive
the net asset value of $23.56 per share.
The table below shows the offering price, total per-share sales charges
(underwriting discounts) and dealer concessions connected with sales of various
quantities of the fund's shares during the initial offering. Dealer concessions
represent the amounts allowed to securities dealers. Certain dealers may elect
not to receive the entire dealer concession.
<TABLE>
Underwriting Discount Dealer Concession
--------------------------------- ---------------------
Approx. % Approx. % Approx. %
Amount of Purchase Offering Dollar of Offering of Net Dollar of Offering
at the Offering Price Price Amount Price Asset Value Amount Price
- ------------------------ --------- --------- ----------- ----------- --------- -----------
<S> <C> <C> <C> <C> <C> <C>
Less than $50,000....... $25.00 $1.44 5.75% 6.10% $1.44 5.75%
$50,000 but less than
$100,000............... $24.67 $1.11 4.50% 4.71% $1.11 4.50%
$100,000 but less than
$250,000............... $24.41 $0.85 3.50% 3.63% $0.85 3.50%
$250,000 but less than
$500,000............... $24.16 $0.60 2.50% 2.56% $0.60 2.50%
$500,000 but less than
$1 million............. $24.04 $0.48 2.00% 2.04% $0.48 2.00%
$1 million or more...... see see see see see see
next page next page next page next page next page next
page
</TABLE>
New World Fund / Prospectus 9
Investments of $1 million or more and investments made by employer-sponsored
defined contribution-type plans with 100 or more eligible employees are sold
with no initial sales charge. A 1% contingent deferred sales charge may be im-
posed on certain redemptions by accounts that invest with no initial sales
charge (other than employer-sponsored plans), if redemptions are made within
one year of purchase. Up to 1% may be paid by the fund under its Plan of Dis-
tribution to dealers on investments made with no initial sales charge.
The fund currently intends to pay a continuing service fee (not to exceed 0.25%
annually) to dealers in order to promote selling efforts and to compensate them
for providing certain services for their clients.
You may be entitled to a reduced sales charge and offering price on purchases
in the offering as described below under "Reducing Your Sales Charge."
Additional Sales and Future Offerings
Following the completion of the offering, the fund does not intend to make
additional sales of its shares (except as described below) until September 15,
1999. During the period prior to September 15, 1999, the fund intends to sell
additional shares pursuant to its registration statement (including this
prospectus) or amendments thereto, as follows: (i) additional purchases ($50
minimum) by shareholders that purchased fund shares in the initial offering;
(ii) for reinvestment of dividends and capital gain distributions paid by the
fund (including reinvestment within 30 days of dividends or capital gain
distributions that were paid in cash); (iii) in connection with the exercise of
the reinstatement privilege by shareholders who redeemed fund shares; and (iv)
in connection with retirement plans offered to employees of the investment
adviser and its affiliates. Investments in such retirement plans, as well as
reinvestment and reinstatement, will be at the next determined net asset value.
The other sales will be at the net asset value next determined after receipt of
the order plus a sales charge in accordance with the schedule set forth on the
previous page.
Exchange
Shareholders of other funds in The American Funds Group may not exchange their
shares for shares of the fund during the initial offering or in connection with
the additional sales described above. You may exchange your shares into
other funds in The American Funds Group, subject to the terms of the
prospectuses of the funds involved, without a sales charge. Once the fund
begins its continuous offering on September 15, 1999, exchanges into the fund
will be permitted and exchanges of shares from the money market funds initially
purchased without a sales charge generally will be subject to the appropriate
sales charge. Exchanges have the same tax consequences as ordinary sales and
purchases. See "Transactions by Telephone . . ." for information regarding
electronic exchanges.
10 New World Fund / Prospectus
The fund and American Funds Distributors, the fund's principal underwriter,
reserve the right to reject any purchase order for any reason. Although there is
currently no specific limit on the number of exchanges you can make in a period
of time, the fund and American Funds Distributors reserve the right to reject
any purchase order and may terminate the exchange privilege of any investor
whose pattern of exchange activity they have determined involves actual or
potential harm to the fund.
Share Price
The fund calculates its share price, also called net asset value, as of 4:00
p.m. New York time, which is the normal close of trading on the New York Stock
Exchange, every day the Exchange is open. In calculating net asset value,
market prices are used when available. If a market price for a particular
security is not available, the fund will determine the appropriate price for the
security.
Your shares will be purchased at the offering price, or sold at the net asset
value, next determined after American Funds Service Company receives and
accepts your request. The offering price is the net asset value plus a sales
charge, if applicable.
Sales Charge
When the fund begins its continuous offering of shares on September 15, 1999,
it likely will adopt the sales charge schedule applicable to the other equity
funds in The American Funds Group as set forth below.
<TABLE>
Sales Charge as a Percentage of
.................
Net Dealer Concession
Offering Amount as % of
Investment Price Invested Offering Price
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Less than $50,000 5.75% 6.10% 5.00%
................................................................................................
$50,000 but less than $100,000 4.50% 4.71% 3.75%
................................................................................................
$100,000 but less than $250,000 3.50% 3.63% 2.75%
................................................................................................
$250,000 but less than $500,000 2.50% 2.56% 2.00%
................................................................................................
$500,000 but less $1 million 2.00% 2.04% 1.60%
................................................................................................
$1 million or more and certain
other investments described on the next page see next page see mext page see next page
</TABLE>
New World Fund / Prospectus 11
Purchases Not Subject to Sales Charge
Investments of $1 million or more and investments made by employer-sponsored
defined contribution-type plans with 100 or more eligible employees are sold
with no initial sales charge. A 1% contingent deferred sales charge may be
imposed on certain redemptions by accounts that invest with no initial sales
charge (other than employer-sponsored plans), if redemptions are made within
one year of purchase. Up to 1% may be paid by the fund under its Plan of
Distribution to dealers on investments made with no initial sales charge.
Reducing Your Sales Charge
You and your immediate family may combine investments to reduce your sales
charge. You must let your investment dealer or American Funds Service Company
know if you qualify for a reduction in your sales charge using one or any
combination of the methods described in the statement of additional information
and the "Welcome to the Family" guide.
Plan of Distribution
The fund has a Plan of Distribution or "12b-1 Plan" under which it may finance
activities primarily intended to sell shares, provided the categories of
expenses are approved in advance by the fund's board of directors. Up to 0.25%
of average net assets is paid annually to qualified dealers for providing
certain services pursuant to the fund's Plan of Distribution. The estimated 12b-
1 fee, as a percentage of average net assets, to be paid by the fund is
indicated earlier under "Fees and Expenses of the Fund." Since these fees are
paid out of the fund's assets on an ongoing basis, over time they will increase
the cost of an investment and may cost you more than paying higher initial sales
charges.
Other Compensation to Dealers
American Funds Distributors may provide additional compensation to, or sponsor
informational meetings for, dealers as described in the statement of additional
information.
12 New World Fund / Prospectus
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HOW TO SELL SHARES
Once a sufficient period of time has passed to reasonably assure that checks or
drafts (including certified or cashiers' checks) for shares purchased have
cleared (normally 15 calendar days), you may sell (redeem) those shares in any
of the following ways:
Through Your Dealer (certain charges may apply)
. Shares held for you in your dealer's name must be sold through the
dealer
Writing to American Funds Service Company
. Requests must be signed by the registered shareholder(s)
. A signature guarantee is required if the redemption is:
-- Over $50,000;
-- Made payable to someone other than the registered shareholder(s);
or
-- Sent to an address other than the address of record, or an address
of record which has been changed within the last 10 days
. Additional documentation may be required for sales of shares held in
corporate, partnership or fiduciary accounts.
Telephoning or Faxing American Funds Service Company, or by using American
FundsLine(R) or American FundsLine OnLine(R):
. Redemptions by telephone or fax (including American FundsLine and
American FundsLine OnLine) are limited to $50,000 per shareholder each
day
. Checks must be made payable to the registered shareholder
. Checks must be mailed to an address of record that has been used with
the account for at least 10 days
Transactions by Telephone, Fax, American FundsLine, or American FundsLine
OnLine
Generally, you are automatically eligible to use these services for redemptions
and exchanges unless you notify us in writing that you do not want any or all
of these services. You may reinstate these services at any time.
Unless you decide not to have telephone, fax, or computer services on your
account(s), you agree to hold the fund, American Funds Service Company, any
New World Fund / Prospectus 13
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of its affiliates or mutual funds managed by such affiliates, and each of their
respective directors, trustees, officers, employees and agents harmless from
any losses, expenses, costs or liabilities (including attorney fees) that may be
incurred in connection with the exercise of these privileges, provided American
Funds Service Company employs reasonable procedures to confirm that the in-
structions received from any person with appropriate account information are
genuine. If reasonable procedures are not employed, the fund may be liable for
losses due to unauthorized or fraudulent instructions.
- --------------------------------------------------------------------------------
DISTRIBUTION ARRANGEMENTS
Dividends and Distributions
The fund intends to distribute dividends to you once each year, usually in
December. Capital gains, if any, are usually distributed in December.
You may elect to reinvest dividends and/or capital gain distributions to
purchase additional shares of this fund or any other fund in The American Funds
Group or you may elect to receive them in cash.
TAX CONSEQUENCES
As with any investment, your investment in the fund could have tax consequences.
If you are not investing through a tax-advantaged retirement account you
should consider these tax consequences.
TAXES ON DISTRIBUTIONS
Distributions you receive from the fund are subject to income tax and may also
be subject to state or local taxes.
For federal tax purposes, the fund's dividends and distributions of short-term
capital gains are taxable to you as ordinary income. The fund's
distributions of long-term capital gains are taxable to you as capital gains.
Any taxable distributions from the fund will normally be taxable to you when
made, regardless of whether you reinvest distributions or receive them in
cash.
TAXES ON TRANSACTIONS
Your redemptions, including exchanges, may result in a capital gain or loss
for federal tax purposes. A capital gain or loss on your investment in the
fund is the difference between the cost of your shares, including any sales
charges, and the price you receive when you sell them.
Please see the statement of additional information, the "Welcome to the Family,"
guide, and your tax adviser for further information.
14 New World Fund / Prospectus
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NOTES
New World Fund / Prospectus 15
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NOTES
16 New World Fund / Prospectus
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NOTES
New World Fund / Prospectus 17
For Shareholder For Retirement Plan For Dealer
Services Services Services
American Funds Call your employer or American Funds
Service Company plan administrator Distributors
800/421-0180 800/421-9900 ext. 11
For 24-hour Information
American American
FundsLine(R) FundsLine OnLine(R)
800/325-3590 http://www.americanfunds.com
Telephone conversations may be recorded or monitored for verification,
recordkeeping and quality assurance purposes.
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Multiple Translations
This prospectus may be translated into other languages. In the event of any
inconsistency or ambiguity as to the meaning of any word or phrase in a
translation, the English text will prevail.
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OTHER FUND INFORMATION
Annual/Semi-Annual Report to Shareholders
Contains additional information about the fund including financial statements,
investment results, portfolio holdings, a statement from portfolio management
discussing market conditions and the fund's investment strategies, and the
independent accountants' report (in the annual report).
Statement of Additional Information (SAI)
Contains more detailed information on all aspects of the fund, including the
fund's financial statements.
A current SAI has been filed with the Securities and Exchange Commission and is
incorporated by reference into this prospectus. The SAI and other related
materials about the fund are available for review or to be copied at the
Securities and Exchange Commission's Public Reference Room (1-800-SEC-0330) in
Washington, D.C. or on its Internet Web site at http://www.sec.gov.
Code of Ethics
Includes a description of the fund's personal investing policy.
To request a free copy of any of the documents above:
Call American Funds or Write to the Secretary of the fund
Service Company 333 South Hope Street
800/421-0180 ext. 1 Los Angeles, CA 90071
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