PROFILE
THE BOND FUND OF AMERICA (SM)
AUGUST 1, 1995
[The American Funds Group(R)]
<PAGE>
THE BOND FUND OF AMERICA (SM)
333 South Hope Street August 1, 1995
Los Angeles, CA 90071
1. GOALS
The fund seeks to provide you with high income while preserving your
investment.
2. INVESTMENT STRATEGIES
The fund will invest at least 60% of its assets in higher quality bonds (rated
"A" or better). The fund may also hold lower rated bonds (including "junk
bonds"). In addition, the fund may invest in non-U.S. bonds to a limited
degree. The fund has no maturity limitations.
3. RISKS
Investing in bonds involves risk, including credit risk (the possibility that
the bond issuer will default on its obligation) and market risk (when interest
rates rise, bond prices fall and vice versa). Lower rated bonds are subject to
greater price fluctuations and risk of loss than higher rated bonds. Moreover,
investing ouside the U.S. involves special risks, such as currency
fluctuations.
YOU CAN LOSE MONEY BY INVESTING IN THE FUND; YOUR INVESTMENT IS NOT GUARANTEED.
THE LIKELIHOOD OF LOSS IS GREATER IF YOU INTEND TO INVEST FOR A SHORTER PERIOD
OF TIME.
4. APPROPRIATENESS
If you are not a long-term investor seeking current income, this fund may not
be appropriate for you. Please consult your investment dealer.
5. FEES AND EXPENSES
Shareholder transaction expenses are charges you pay when you buy or sell
shares of a fund. Annual fund operating expenses are paid out of the fund's
assets. The fund's expenses are factored into its share price or dividends and
are not charged directly to shareholder accounts.
SHAREHOLDER TRANSACTION EXPENSES
--------------------------------
Maximum sales charge on purchases
(as a percentage of offering price).................................4.75%*
ANNUAL FUND OPERATING EXPENSES
------------------------------
(as a percentage of average net assets)
Management fees........................0.37%
12b-1 expenses.........................0.22%
Other expenses.........................0.10%
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Total fund operating expenses..........0.69%
EXAMPLE
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You would pay the following cumulative expenses on a $1,000 investment,
assuming a 5% annual return. This example should not be considered a
representation of past or future expenses.
ONE YEAR $54
THREE YEARS 69
FIVE YEARS 84
TEN YEARS 129
*Sales charges are reduced or eliminated for larger purchases. The fund has no
sales charge on reinvested dividends, and no deferred sales charge or
redemption or exchange fees. A contingent deferred sales charge of 1% applies
on certain redemptions within 12 months following purchases without a sales
charge.
6. PAST RESULTS
Here are the fund's annual total returns for each of the last 10 calendar
years:
[CHART]
1985 26.6
1986 15.2
1987 2.0
1988 10.7
1989 10.1
1990 3.3
1991 21.0
1992 11.3
1993 14.1
1994 -5.0
Sales charges have not been deducted from results shown above.
[END CHART]
The fund's average annual compound return* is +10.31% over its lifetime (May
28, 1974 through June 30, 1995). PAST RESULTS ARE NOT A GUARANTEE OF FUTURE
RESULTS.
<TABLE>
<CAPTION>
Average Annual
Compound Returns*
<S> <C>
One year + 5.54%
Five years + 9.14%
Ten years + 9.77%
30-Day Yield*
6.90%
</TABLE>
*These results were calculated for periods ended June 30, 1995 in accordance
with Securities and Exchange Commission rules which require that the maximum
sales charge be deducted.
7. INVESTMENT ADVISER
Capital Research and Management Company, one of the world's largest and most
experienced investment advisers, manages the fund, which is a member of The
American Funds Group. Capital Research and Management Company manages this
diversified mutual fund using the multiple portfolio counselor system. Under
this system, the fund's assets are divided into several portions. Each portion
is independently managed by a portfolio counselor or a group of research
professionals, subject to oversight by the investment adviser's investment
committee.
8. PURCHASES
The fund's shares are sold through investment dealers. Your investment dealer
can help you with your account, or you may call American Funds Service Company
at 800/421-0180 with questions about your account. Generally, the minimum
initial investment is $1,000.
9. REDEMPTIONS
You may redeem shares at no cost at any time by calling American FundsLine(R)
at 800/325-3590. (You will need the fund's number - 08 - if you use this
service.) Transactions will be processed as of the next close of the New York
Stock Exchange.
10. DISTRIBUTIONS
Dividends and capital gain distributions are automatically reinvested unless
you notify American Funds Service Company that you would like to invest them in
another of the American Funds or receive payment in cash. Dividends are paid
monthly. Capital gains, if any, are usually distributed in December.
11. OTHER SERVICES
You may exchange your shares for any of the other American Funds or obtain
information about your investment any time by calling American FundsLine(R).
THIS PROFILE CONTAINS KEY INFORMATION ABOUT THE FUND. MORE DETAILS APPEAR IN
THE FUND'S ACCOMPANYING PROSPECTUS.
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