SEC File Nos. 2-10607
811-572
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
Registration Statement
Under
the Securities Act of 1933
Post-Effective Amendment No. 101
and
Registration Statement
Under
The Investment Company Act of 1940
Amendment No. 21
AMERICAN MUTUAL FUND, INC.
(Exact Name of Registrant as specified in charter)
333 South Hope Street
Los Angeles, California 90071
(Address of principal executive offices)
Registrant's telephone number, including area code:
(213) 486-9200
Vincent P. Corti
Capital Research and Management Company
333 South Hope Street
Los Angeles, California 90071
(name and address of agent for service)
Copies to:
JOHN B. POWER, ESQ.
O'Melveny & Myers
400 South Hope Street
Los Angeles, California 90071
(Counsel for the Registrant)
The Registrant has filed a declaration pursuant to rule 24f-2
registering an indefinite number of shares under the Securities Act of 1933.
On December 18, 1995, it filed its 24f-2 notice for fiscal 1995.
Approximate date of proposed public offering:
It is proposed that this filing become effective on December 29, 1995,
pursuant to paragraph (b) of rule 485.
AMERICAN MUTUAL FUND, INC.
CROSS REFERENCE SHEET
<TABLE>
<CAPTION>
ITEM NUMBER OF
PART "A"OF FORM N-1A CAPTIONS IN PROSPECTUS (PART "A")
<S> <C> <C>
1. Cover Page Cover Page
2. Synopsis Summary of Expenses
3. Condensed Financial Information Financial Highlights; Investment Results
4. General Description of Registrant Fund Organization and Management;
Investment Objectives and Policies;
Investment Techniques
5. Management of the Fund Financial Highlights; Fund Organization and Management;
Investment Techniques
6. Capital Stock and Other Securities Investment Objectives and Policies; Investment Techniques;
Fund Organization and Management;
Dividends, Distributions and Taxes
7. Purchase of Securities Being Offered Purchasing Shares; Fund Organization and Management;
Shareholder Services
8. Redemption or Repurchase Redeeming Shares
9. Legal Proceedings N/A
</TABLE>
<TABLE>
<CAPTION>
ITEM NUMBER OF CAPTIONS IN STATEMENT OF
PART "B" OF FORM N-1A ADDITIONAL INFORMATION (PART "B")
<S> <C> <C>
10. Cover Page Cover
11. Table of Contents Table of Contents
12. General Information and History Fund Organization and Management (Part "A")
13. Investment Objectives and Policies Investment Policies; Description of Certain Securities;
Investment Restrictions
14. Management of the Registrant Fund Directors and Officers; Management
15. Control Persons and Principal Holders Fund Directors and Officers
of Securities
16. Investment Advisory and Other Services Management
17. Brokerage Allocation and Other Practices Execution of Portfolio Transactions
18. Capital Stock and Other Securities None
19. Purchase, Redemption and Pricing of Purchase of Shares; Shareholder Account
Securities Being Offered Services and Privileges; How to Redeem Shares
20. Tax Status Dividends, Distributions and Federal Taxes
21. Underwriter Management -- Principal Underwriter
22. Calculation of Performance Data Investment Results
23. Financial Statements Financial Statements
</TABLE>
<TABLE>
<CAPTION>
ITEM IN PART "C"
<S> <C>
24. Financial Statements and Exhibits
25. Persons Controlled by or under
Common Control with Registrant
26. Number of Holders of Securities
27. Indemnification
28. Business and Other Connections of
Investment Adviser
29. Principal Underwriters
30. Location of Accounts and Records
31. Management Services
32. Undertakings
Signature Page
</TABLE>
<PAGE>
Prospectus
American
Mutual
Fund(R)
AN OPPORTUNITY FOR CURRENT INCOME, CAPITAL GROWTH AND CONSERVATION
OF PRINCIPAL
December 29, 1995
[LOGO OF THE AMERICAN FUNDS GROUP(R)]
AMERICAN MUTUAL FUND, INC.
333 South Hope Street
Los Angeles, California 90071
The fund strives for the balanced accomplishment of three objectives--current
income, capital growth and conservation of principal. It seeks to fulfill
these objectives through constant supervision, careful selection and
diversification of a portfolio which ordinarily consists principally of
equity-type securities of companies that are likely to participate in the
growth of the American economy.
This prospectus presents information you should know before investing in the
fund. It should be retained for future reference.
You may obtain the statement of additional information for the fund, dated
December 29, 1995, which contains the fund's financial statements, without
charge by writing to the Secretary of the fund at the above address or
telephoning 800/421-0180. These requests will be honored within three business
days of receipt.
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR INSURED OR
GUARANTEED BY, THE U.S. GOVERNMENT, ANY FINANCIAL INSTITUTION, THE FEDERAL
DEPOSIT INSURANCE CORPORATION OR ANY OTHER AGENCY, ENTITY OR PERSON. THE
PURCHASE OF FUND SHARES INVOLVES INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS
OF PRINCIPAL.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS
A CRIMINAL OFFENSE.
03-010-1295
<PAGE>
TABLE OF CONTENTS
<TABLE>
<S> <C>
Summary of Expenses................. 3
Financial Highlights................ 4
Investment Objectives and Policies.. 4
Investment Techniques............... 5
Investment Results.................. 7
Dividends, Distributions and Taxes.. 7
Fund Organization and Management.... 8
The American Funds
Shareholder Guide.................. 11-20
Purchasing Shares.................. 11
Reducing Your Sales Charge......... 14
Shareholder Services............... 15
Redeeming Shares................... 17
Retirement Plans................... 19
</TABLE>
IMPORTANT PHONE NUMBERS
Shareholder Services..800/421-0180 ext. 1
Dealer Services.......800/421-9900 ext.11
American FundsLine(R)........800/325-3590
(24-hour information)
<PAGE>
- -------------------------------------------------------------------------------
SUMMARY OF EXPENSES
Average annual expenses
paid over a 10-year
period would be
approximately $13 per
year, assuming a $1,000
investment and a 5%
annual return with the
maximum sales charge.
This table is designed to help you understand the costs of investing in the
fund. These are historical expenses; your actual expenses may vary.
SHAREHOLDER TRANSACTION EXPENSES
<TABLE>
<S> <C>
Maximum sales charge on purchases
(as a percentage of offering price)................................... 5.75%/1/
</TABLE>
The fund has no sales charge on reinvested dividends, deferred sales
charge,/2/ redemption fees or exchange fees.
ANNUAL FUND OPERATING EXPENSES (as a percentage of average net assets)
<TABLE>
<S> <C>
Management fees........................................................ 0.30%
12b-1 expenses......................................................... 0.19%/3/
Other expenses (including audit, legal, shareholder services,
transfer agent and custodian expenses)................................ 0.10%
Total fund operating expenses.......................................... 0.59%
</TABLE>
<TABLE>
<CAPTION>
EXAMPLE 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
You would pay the following cumulative ex-
penses on a $1,000 investment, assuming a 5%
annual return./4/ $63 $75 $89 $127
</TABLE>
/1/ Sales charges are reduced for certain large purchases. (See "The American
Funds Shareholder Guide: Purchasing Shares--Sales Charges.")
/2/ Any employer-sponsored 403(b) plan or defined contribution plan qualified
under Section 401(a) of the Internal Revenue Code including a "401(k)" plan
with 200 or more eligible employees or any other purchaser investing at
least $1 million in shares of the fund (or in combination with shares of
other funds in The American Funds Group other than the money market funds)
may purchase shares at net asset value; however, a contingent deferred
sales charge of 1% applies on certain redemptions made within 12 months
following such purchases. (See "The American Funds Shareholder Guide:
Redeeming Shares--Contingent Deferred Sales Charge.")
/3/ These expenses may not exceed 0.25% of the fund's average net assets
annually. (See "Fund Organization and Management--Plan of Distribution.")
Due to these distribution expenses, long-term shareholders may pay more than
the economic equivalent of the maximum front-end sales charge permitted by
the National Association of Securities Dealers.
/4/ Use of this assumed 5% return is required by the Securities and Exchange
Commission; it is not an illustration of past or future investment results.
THIS EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES; ACTUAL EXPENSES MAY BE GREATER OR LESSER THAN THOSE SHOWN.
3
<PAGE>
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FINANCIAL The following information has been audited by Deloitte
HIGHLIGHTS & Touche LLP, independent accountants, whose
(For a share unqualified report covering each of the most recent
outstanding five years is included in the statement of additional
throughout the information. This information should be read in
fiscal year) conjunction with the financial statements and
accompanying notes which are also included in the
statement of additional information.
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31
-------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $21.60 $23.21 $21.29 $20.98 $17.91 $20.53 $18.66 $18.16 $19.12 $16.11
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income.. .87 .88 .85 .87 .89 .96 1.00 .85 .78 .77
Net realized and
unrealized gain (loss)
on investments........ 3.41 (.54) 2.89 .98 3.39 (1.79) 2.53 1.25 .24 3.84
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total from investment
operations........... 4.28 .34 3.74 1.85 4.28 (.83) 3.53 2.10 1.02 4.61
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net
investment income..... (.84) (.84) (.85) (.88) (1.01) (1.00) (.99) (.89) (.76) (.74)
Distributions from net
realized gains........ (.87) (1.11) (.97) (.66) (.20) (.79) (.67) (.71) (1.22) (.86)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total Distributions... (1.71) (1.95) (1.82) (1.54) (1.21) (1.79) (1.66) (1.60) (1.98) (1.60)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net Asset Value, End of
Period................. $24.17 $21.60 $23.21 $21.29 $20.98 $17.91 $20.53 $18.66 $18.16 $19.12
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Total Return/1/......... 21.25% 1.75% 18.63% 9.43% 24.62% (4.65)% 20.22% 12.52% 5.24% 30.10%
RATIOS/SUPPLEMENTAL DATA
Net Assets, end of
period (in millions).. $6,552 $5,397 $5,283 $4,565 $4,134 $3,196 $3,169 $2,610 $2,388 $2,104
Ratios of expenses to
average net assets.... .59% .60% .59% .60% .63% .60% .59% .54% .47% .45%
Ratio of net income to
average net assets.... 3.92% 4.07% 3.83% 4.15% 4.47% 5.00% 5.20% 4.77% 4.26% 4.46%
Portfolio turnover
rate.................. 23.31% 18.46% 22.48% 37.35% 23.77% 12.17% 22.80% 16.92% 13.42% 18.06%
</TABLE>
--------
/1/ This was calculated without deducting a sales charge. The maximum sales
charge is 5.75% of the fund's offering price.
INVESTMENT The fund strives for the balanced accomplishment of
OBJECTIVES three investment objectives--current income, capital
AND POLICIES growth and conservation of principal. The fund seeks to
fulfill each of its objectives as follows:
The fund aims to
provide you with CURRENT INCOME primarily by the selection of
current income, investments whose dividends appear well protected.
capital growth and
conservation of CAPITAL GROWTH primarily by the purchase of equity-type
principal. securities of companies which Capital Research and
Management Company, the fund's investment adviser,
expects are likely to participate in the growth of the
American economy.
CONSERVATION OF PRINCIPAL by careful selection, broad
diversification and constant supervision of investments
which should serve to reduce risk and thereby preserve
principal.
The fund's portfolio is managed as a whole in that the
fund does not seek to fulfill all of its objectives in
each of its investments. The fund will ordinarily
invest principally in equity-type securities such as
common
4
<PAGE>
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stocks and nonconvertible preferred stocks of companies
that are likely to participate in the growth of the
American economy. The fund's investments include the
stocks of companies domiciled in the U.S. and/or that
are part of the Standard & Poor's 500 Stock Composite
Index which is considered a broad measure of the U.S.
market. However, assets may also be held in securities
convertible into common stocks, straight debt
securities (rated in the top three quality categories
by Standard & Poor's Corporation or Moody's Investors
Service, Inc. or unrated but determined to be of
equivalent quality by Capital Research and Management
Company), cash or cash equivalents, and U.S. Government
securities. (See the statement of additional
information for a description of cash equivalents.)
The fund's investments are limited to securities
included on its eligible list, which consists of
securities deemed suitable investment media in light of
the fund's investment objectives and policies.
Securities are added to, or deleted from, the eligible
list by the board of directors, reviewing and acting
upon the recommendations of Capital Research and
Management Company.
The fund's investment restrictions (which are described
in the statement of additional information) and
objectives cannot be changed without shareholder
approval. All other investment practices may be changed
by the board of directors.
ACHIEVEMENT OF THE FUND'S INVESTMENT OBJECTIVES CANNOT,
OF COURSE, BE ASSURED DUE TO THE RISK OF CAPITAL LOSS
FROM FLUCTUATING PRICES INHERENT IN ANY INVESTMENT IN
SECURITIES.
INVESTMENT RISKS OF INVESTING Because the fund invests in equity-
TECHNIQUES type securities such as common stocks and
nonconvertible preferred stocks, the fund's portfolio
Investing in is subject to market risks, including, for example, the
stocks involves possibility that stock prices in general may decline
certain risks. over short or even extended periods.
The fund may also invest in fixed-income securities,
including bonds, which have market values which tend to
vary inversely with the level of interest rates -- when
interest rates rise, their values will tend to decline
and vice versa. Although under normal market conditions
longer term securities yield more than shorter term
securities of similar quality, they are subject to
greater price fluctuations. These fluctuations in the
value of the fund's investments will be reflected in
its net asset value per share.
5
<PAGE>
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MULTIPLE PORTFOLIO COUNSELOR SYSTEM The basic
investment philosophy of Capital Research and
Management Company is to seek fundamental values at
reasonable prices, using a system of multiple portfolio
counselors in managing mutual fund assets. Under this
system the portfolio of the fund is divided into
segments, which are managed by individual counselors.
Each counselor decides how the segment will be invested
(within the limits provided by the fund's objectives
and policies and by Capital Research and Management
Company's investment committee). In addition, Capital
Research and Management Company's research
professionals make investment decisions with respect to
a portion of the fund's portfolio. The primary
individual portfolio counselors for the fund are listed
below.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
YEARS OF EXPERIENCE AS
INVESTMENT PROFESSIONAL
YEARS OF EXPERIENCE AS (APPROXIMATE)
PORTFOLIO COUNSELORS PORTFOLIO COUNSELOR (AND WITH CAPITAL
FOR PRIMARY TITLE(S) RESEARCH PROFESSIONAL, RESEARCH AND
AMERICAN MUTUAL FUND IF APPLICABLE) FOR MANAGEMENT
AMERICAN MUTUAL FUND COMPANY OR
(APPROXIMATE) ITS
AFFILIATES TOTAL YEARS
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Jon B. Lovelace, Jr. Chairman of the Board of the fund. 37 years 44 years 44 years
Vice Chairman of the Board and
Chairman of the Executive Committee,
Capital Research and Management
Company
- -------------------------------------------------------------------------------------------------------------------------------
James K. Dunton President and Director of the fund. 26 years 33 years 33 years
Senior Vice President and Director,
Capital Research and Management
Company
- -------------------------------------------------------------------------------------------------------------------------------
Robert G. O'Donnell Executive Vice President of the fund. 8 years (plus 12 years as 20 years 24 years
Senior Vice President and Director, research professional prior to
Capital Research and Management becoming a portfolio
Company counselor for the fund)
- -------------------------------------------------------------------------------------------------------------------------------
Timothy D. Armour Vice President of the fund. 4 years (plus 5 years as 13 years 13 years
Executive Vice President, Capital research professional
Research Company* prior to becoming a portfolio
counselor for the fund)
- -------------------------------------------------------------------------------------------------------------------------------
R. Michael Shanahan Portfolio counselor for the fund. 10 years (plus 7 years as 31 years 31 years
Chairman of the Board and research professional prior to
Principal Executive Officer, Capital becoming a portfolio
Research and Management Company counselor for the fund)
</TABLE>
- -------------------------------------------------------------------------------
*Company affiliated with Capital Research and Management Company.
- -------------------------------------------------------------------------------
6
<PAGE>
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INVESTMENT The fund may from time to time compare its investment
RESULTS results to various unmanaged indices or other mutual
funds in reports to shareholders, sales literature and
The fund has advertisements. The results may be calculated on a total
averaged a total return, yield and/or distribution rate basis for various
return of 12.85% a periods, with or without sales charges. Results
year (assuming the calculated without a sales charge will be higher. Total
maximum sales returns assume the reinvestment of all dividends and
charge was paid) capital gain distributions.
over its lifetime
The fund's yield and the average annual total returns
(February 21, 1950 are calculated in accordance with Securities and
through Exchange Commission requirements which provide that the
September 30, maximum sales charge be reflected. The fund's
1995). distribution rate is calculated by dividing the
dividends paid by the fund over the last 12 months by
the sum of the month-end price and the capital gains paid
over the last 12 months. For the 30-day period ended
September 30, 1995, the fund's SEC yield was 3.33% and
the distribution rate was 3.14% at maximum offering
price. The SEC yield reflects income earned by the fund,
while the distribution rate reflects dividends paid by
the fund. The fund's total return over the past 12 months
and average annual total returns over the past five-year
and lifetime periods, as of September 30, 1995, were
15.50%, 13.40% and 13.29%, respectively. Of course, past
results are not an indication of future results. Further
information regarding the fund's investment results is
contained in the fund's annual report which may be
obtained without charge by writing to the Secretary of
the fund at the address indicated on the cover of this
prospectus.
DIVIDENDS, DIVIDENDS AND DISTRIBUTIONS Dividends are usually paid
DISTRIBUTIONS in April, July, October and December. Capital gains, if
AND TAXES any, are usually distributed in December. When a
dividend or capital gain is distributed, the net asset
Income value per share is reduced by the amount of the payment.
distributions are
usually made in FEDERAL TAXES The fund intends to operate as a
April, July, "regulated investment company" under the Internal
October and Revenue Code. In any fiscal year in which the fund so
December. qualifies and distributes to shareholders all of its
net investment income and net capital gains, the fund
itself is relieved of federal income tax.
All dividends and capital gains are taxable whether
they are reinvested or received in cash--unless you are
exempt from taxation or entitled to tax deferral. Early
each year, you will be notified as to the amount and
federal tax status of all dividends and capital gains
paid during the prior year. Such dividends and capital
gains may also be subject to state or local taxes.
7
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IF YOU HAVE NOT FURNISHED A CERTIFIED CORRECT TAXPAYER
IDENTIFICATION NUMBER (GENERALLY YOUR SOCIAL SECURITY
NUMBER) AND HAVE NOT CERTIFIED THAT WITHHOLDING DOES
NOT APPLY, OR IF THE INTERNAL REVENUE SERVICE HAS
NOTIFIED THE FUND THAT THE TAXPAYER IDENTIFICATION
NUMBER LISTED ON YOUR ACCOUNT IS INCORRECT ACCORDING TO
ITS RECORDS OR THAT YOU ARE SUBJECT TO BACKUP
WITHHOLDING, FEDERAL LAW GENERALLY REQUIRES THE FUND TO
WITHHOLD 31% FROM ANY DIVIDENDS AND/OR REDEMPTIONS
(INCLUDING EXCHANGE REDEMPTIONS). Amounts withheld are
applied to your federal tax liability; a refund may be
obtained from the Service if withholding results in
overpayment of taxes. Federal law also requires the
fund to withhold 30% or the applicable tax treaty rate
from dividends paid to certain nonresident alien, non-
U.S. partnership and non-U.S. corporation shareholder
accounts.
This is a brief summary of some of the tax laws that
affect your investment in the fund. Please see the
statement of additional information and your tax
adviser for further information.
FUND FUND ORGANIZATION AND VOTING RIGHTS The fund, an open-
ORGANIZATION end, diversified management investment company, was
AND organized as a Delaware corporation in 1949 and was
MANAGEMENT reincorporated in the State of Maryland in 1984. The
fund's board supervises fund operations and performs
The fund is a duties required by applicable state and federal law.
member of The Members of the board who are not employed by Capital
American Funds Research and Management Company or its affiliates are
Group, which is paid for services rendered to the fund as described in
managed by one of the statement of additional information. They may elect
the largest and to defer all or a portion of these fees through a
most experienced deferred compensation plan in effect for the fund.
investment Shareholders have one vote per share owned and, at the
advisers. request of the holders of at least 10% of the shares,
the fund will hold a meeting at which any member of the
board could be removed by a majority vote. There will
not usually be a shareholder meeting in any year
except, for example, when the election of the board is
required to be acted upon by shareholders under the
Investment Company Act of 1940.
THE INVESTMENT ADVISER Capital Research and Management
Company, a large and experienced investment management
organization founded in 1931, is the investment adviser
to the fund and other funds, including those in The
American Funds Group. Capital Research and Management
Company is located at 333 South Hope Street, Los
Angeles, CA 90071, and at 135 South State College
Boulevard, Brea, CA 92621. (See "The American Funds
Shareholder Guide: Purchasing Shares--Investment
Minimums and Fund Numbers" for a listing of funds in
The American Funds Group.) Capital Research and
Management Company manages the investment portfolio and
business affairs of the fund and receives a fee at the
annual rate of 0.384% on the first $1 billion of the
8
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fund's net assets, 0.33% on net assets in excess of $1
billion but not exceeding $2 billion, 0.294% on net
assets in excess of $2 billion but not exceeding $3
billion, 0.27% on net assets in excess of $3 billion
but not exceeding $5 billion, 0.252% on net assets in
excess of $5 billion but not exceeding $8 billion, and
0.24% on net assets in excess of $8 billion.
Capital Research and Management Company is a wholly
owned subsidiary of The Capital Group Companies, Inc.
(formerly "The Capital Group, Inc."), which is located
at 333 South Hope Street, Los Angeles, CA 90071. The
research activities of Capital Research and Management
Company are conducted by affiliated companies which
have offices in Los Angeles, San Francisco, New York,
Washington, D.C., London, Geneva, Singapore, Hong Kong
and Tokyo.
Capital Research and Management Company and its
affiliated companies have adopted a personal investing
policy that is consistent with the recommendations
contained in the report dated May 9, 1994 issued by the
Investment Company Institute's Advisory Group on
Personal Investing. (See the statement of additional
information.)
PORTFOLIO TRANSACTIONS Orders for the fund's portfolio
securities transactions are placed by Capital Research
and Management Company, which strives to obtain the
best available prices, taking into account the costs
and quality of executions. In the over-the-counter
market, purchases and sales are transacted directly
with principal market-makers except in those
circumstances where it appears better prices and
executions are available elsewhere.
Subject to the above policy, when two or more brokers
are in a position to offer comparable prices and
executions, preference may be given to brokers that
have sold shares of the fund or have provided
investment research, statistical, and other related
services for the benefit of the fund and/or other funds
served by Capital Research and Management Company.
PRINCIPAL UNDERWRITER American Funds Distributors,
Inc., a wholly owned subsidiary of Capital Research and
Management Company, is the principal underwriter of the
fund's shares. American Funds Distributors, Inc. is
located at 333 South Hope Street, Los Angeles, CA
90071, 135 South State College Boulevard, Brea, CA
92621, 8000 1H-10 West, San Antonio, TX 78230, 8332
Woodfield Crossing Boulevard, Indianapolis, IN 46240,
and 5300 Robin Hood Road, Norfolk, VA 23513. Telephone
conversations with American Funds Distributors may be
recorded or monitored for verification, recordkeeping
and quality assurance purposes.
9
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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 board and the expenses paid under the plan were
incurred within the last 12 months and accrued while
the plan is in effect. Expenditures by the fund under
the plan may not exceed 0.25% of its average net assets
annually (all of which may be for service fees). See
"The American Funds Shareholder Guide: Purchasing
Shares--Sales Charges" below.
TRANSFER AGENT American Funds Service Company, a wholly
owned subsidiary of Capital Research and Management
Company, is the transfer agent and performs shareholder
service functions. It was paid a fee of $3,849,000 for
the fiscal year ended October 31, 1995. Telephone
conversations with American Funds Service Company may
be recorded or monitored for verification,
recordkeeping and quality assurance purposes.
AMERICAN FUNDS SERVICE COMPANY SERVICE AREAS
SERVICE ADDRESS AREAS SERVED
AREA
--------------------------------------------------------------
WEST P.O. Box 2205 AK, AZ, CA, HI, ID,
Brea, CA 92622-2205 MT, NV, OR, UT, WA and
Fax: 714/671-7080 outside the U.S.
--------------------------------------------------------------
CENTRAL- P.O. Box 659522 AR, CO, IA, KS, LA,
WEST San Antonio, TX 78265-9522 MN, MO, ND, NE, NM,
Fax: 210/530-4050 OK, SD, TX, and WY
--------------------------------------------------------------
CENTRAL- P.O. Box 6007 AL, IL, IN, KY, MI,
EAST Indianapolis, IN 46206-6007 MS, OH, TN and WI
Fax: 317/735-6620
--------------------------------------------------------------
EAST P.O. Box 2280 CT, DE, FL, GA, MA,
Norfolk, VA 23501-2280 MD, ME, NC, NH, NJ,
Fax: 804/670-4773 NY, PA, RI, SC, VA,
VT, WV and Washington,
D.C.
--------------------------------------------------------------
ALL SHAREHOLDERS MAY CALL AMERICAN FUNDS SERVICE COMPANY AT
800/421-0180 FOR SERVICE.
--------------------------------------------------------------
[MAP OF THE UNITED STATES]
--------------------------------------------------------------
West (light grey); Central-West (white); Central-East
(dark grey), East (red)
10
<PAGE>
THE AMERICAN FUNDS SHAREHOLDER GUIDE
PURCHASING SHARES ---------------------------------------------------------
METHOD INITIAL INVESTMENT ADDITIONAL INVESTMENTS
Your investment ---------------------------------------------------------
dealer can help See "Investment $50 minimum (except
you establish your Minimums and Fund where a lower
account--and help Numbers" for minimum is noted
you add to it initial under "Investment
whenever you like. investment Minimums and Fund
minimums. Numbers").
---------------------------------------------------------
By Visit any Mail directly to
contacting investment dealer your investment
your who is registered dealer's address
investment in the state printed on your
dealer where the account statement.
purchase is made
and who has a
sales agreement
with American
Funds
Distributors.
---------------------------------------------------------
By mail Make your check Fill out the account
payable to the additions form at the
fund and mail to bottom of a recent
the address account statement,
indicated on the make your check
account payable to the fund,
application. write your account
Please indicate number on your check,
an investment and mail the check
dealer on the and form in the
account envelope provided
application. with your account
statement.
---------------------------------------------------------
By wire Call 800/421-0180 Your bank should wire
to obtain your your additional
account investments in the
number(s), if same manner as
necessary. Please described under
indicate an "Initial Investment."
investment dealer
on the account.
Instruct your
bank to wire funds
to:
Wells Fargo Bank
155 Fifth Street
Sixth Floor
San Francisco, CA
94106
(ABA #121000248)
For credit to the
account of:
American Funds
Service Company
a/c #4600-076178
(fund name)
(your fund acct.
no.)
---------------------------------------------------------
The funds and American Funds Distributors reserve the
right to reject any purchase order.
---------------------------------------------------------
SHARE PRICE Shares are purchased at the offering price
next determined after the order is received by the fund
or American Funds Service Company. In the case of orders
sent directly to the fund or American Funds Service
Company, an investment dealer MUST be indicated. This
price is the net asset value plus a sales charge, if
applicable. Dealers are responsible for promptly
transmitting orders. (See the statement of additional
information under "Purchase of Shares--Price of
Shares.")
The net asset value per share is determined as of the
close of trading (currently 4:00 p.m., New York time) on
each day the New York Stock Exchange is open. The
current value of the fund's total assets, less all
liabilities, is divided by the total number of shares
outstanding and the result, rounded to the nearer cent,
is the net asset value per share. The net asset value
per share of the money market funds normally will remain
constant at $1.00 based on the funds' current practice
of valuing their shares using the penny-rounding method
in accordance with rules of the Securities and Exchange
Commission.
SHARE CERTIFICATES Shares are credited to your account
and certificates are not issued unless specifically
requested. This eliminates the costly problem of lost or
destroyed certificates.
11
<PAGE>
- -------------------------------------------------------------------------------
If you would like certificates issued, please request
them by writing to American Funds Service Company.
There is usually no charge for issuing certificates in
reasonable denominations. CERTIFICATES ARE NOT AVAIL-
ABLE FOR THE MONEY MARKET FUNDS.
INVESTMENT MINIMUMS AND FUND NUMBERS Here are the
minimum initial investments required by the funds in
The American Funds Group along with fund numbers for
use with our automated phone line, American
FundsLine(R) (see description below):
<TABLE>
<CAPTION>
MINIMUM
INITIAL FUND
FUND INVESTMENT NUMBER
---- ---------- ------
<S> <C> <C>
STOCK AND STOCK/BOND FUNDS
AMCAP Fund(R).............. $1,000 02
American Balanced Fund(R).. 500 11
American Mutual Fund(R).... 250 03
Capital Income Builder(R).. 1,000 12
Capital World Growth and
Income Fund(SM)........... 1,000 33
EuroPacific Growth Fund(R). 250 16
Fundamental Investors(SM).. 250 10
The Growth Fund of
America(R)................ 1,000 05
The Income Fund of
America(R)................ 1,000 06
The Investment Company of
America(R)................ 250 04
The New Economy Fund(R).... 1,000 14
New Perspective Fund(R).... 250 07
SMALLCAP World Fund(SM).... 1,000 35
Washington Mutual
Investors Fund(SM)........ 250 01
BOND FUNDS
American High-Income
Municipal Bond Fund(SM)... $1,000 40
American High-Income
Trust(R).................. 1,000 21
The Bond Fund of
America(SM)............... 1,000 08
Capital World Bond Fund(R). 1,000 31
Intermediate Bond Fund of
America(R)................ 1,000 23
Limited Term Tax-Exempt
Bond Fund of America(SM).. 1,000 43
The Tax-Exempt Bond Fund
of America(SM)............ 1,000 19
The Tax-Exempt Fund of
California(R)*............ 1,000 20
The Tax-Exempt Fund of
Maryland(R)*.............. 1,000 24
The Tax-Exempt Fund of
Virginia(R)*.............. 1,000 25
U.S. Government Securities
Fund(SM).................. 1,000 22
MONEY MARKET FUNDS
The Cash Management
Trust of America(R)....... 2,500 09
The Tax-Exempt Money
Fund of America(SM)....... 2,500 39
The U.S. Treasury Money
Fund of America(SM)....... 2,500 49
</TABLE>
--------
*Available only in certain states.
For retirement plan investments, the minimum is $250,
except that the money market funds have a minimum of
$1,000 for individual retirement accounts (IRAs). Mini-
mums are reduced to $50 for purchases through "Auto-
matic Investment Plans" (except for the money market
funds) or to $25 for purchases by retirement plans
through payroll deductions and may be reduced or waived
for shareholders of other funds in The American Funds
Group. TAX-EXEMPT FUNDS SHOULD NOT SERVE AS RETIREMENT
PLAN INVESTMENTS. The minimum is $50 for additional in-
vestments (except as noted above).
SALES CHARGES The sales charges you pay when purchasing
the stock, stock/bond, and bond funds of The American
Funds Group are set forth below. The money market funds
of The American Funds Group are offered at net asset
value. (See "Investment Minimums and Fund Numbers" for
a listing of the funds.)
12
<PAGE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DEALER
SALES CHARGE AS CONCESSION
PERCENTAGE OF THE: AS PERCENTAGE
------------------- OF THE
AMOUNT OF PURCHASE NET AMOUNT OFFERING OFFERING
AT THE OFFERING PRICE INVESTED PRICE PRICE
--------------------- ---------- -------- -------------
<S> <C> <C> <C>
STOCK AND STOCK/BOND FUNDS
Less than $50,000................ 6.10% 5.75% 5.00%
$50,000 but less than $100,000... 4.71 4.50 3.75
BOND FUNDS
Less than $25,000................ 4.99 4.75 4.00
$25,000 but less than $50,000.... 4.71 4.50 3.75
$50,000 but less than $100,000... 4.17 4.00 3.25
STOCK, STOCK/BOND, AND BOND FUNDS
$100,000 but less than $250,000.. 3.63 3.50 2.75
$250,000 but less than $500,000.. 2.56 2.50 2.00
$500,000 but less than $1,000,000 2.04 2.00 1.60
$1,000,000 or more............... none none (see below)
</TABLE>
Commissions of up to 1% will be paid to dealers who
initiate and are responsible for purchases of $1
million or more, for purchases by any employer-
sponsored 403(b) plan or defined contribution plan
qualified under Section 401(a) of the Internal Revenue
Code including a "401(k)" plan with 200 or more
eligible employees (paid pursuant to the fund's plan of
distribution), and for purchases made at net asset
value by certain retirement plans of organizations with
collective retirement plan assets of $100 million or
more as set forth in the statement of additional
information (paid by American Funds Distributors).
American Funds Distributors, at its expense (from a
designated percentage of its income), will, during
calendar year 1996, provide additional compensation to
dealers. Currently these payments are limited to the
top one hundred dealers who have sold shares of the
fund or other funds in The American Funds Group. These
payments will be based on a pro rata share of a
qualifying dealer's sales. American Funds Distributors
will, on an annual basis, determine the advisability of
continuing these payments.
Any employer-sponsored 403(b) plan or defined
contribution plan qualified under Section 401(a) of the
Internal Revenue Code including a "401(k)" plan with
200 or more eligible employees or any other purchaser
investing at least $1 million in shares of the fund (or
in combination with shares of other funds in The
American Funds Group other than the money market funds)
may purchase shares at net asset value; however, a
contingent deferred sales charge of 1% is imposed on
certain redemptions made within one year of the
purchase. (See "Redeeming Shares--Contingent Deferred
Sales Charge.")
Qualified dealers currently are paid a continuing
service fee not to exceed 0.25% of average net assets
(0.15% in the case of the money market funds) annually
in order to promote selling efforts and to
13
<PAGE>
- -------------------------------------------------------------------------------
compensate them for providing certain services. (See
"Fund Organization and Management--Plan of
Distribution.") These services include processing
purchase and redemption transactions, establishing
shareholder accounts and providing certain information
and assistance with respect to the fund.
NET ASSET VALUE PURCHASES The stock, stock/bond and
bond funds may sell shares at net asset value to: (1)
current or retired directors, trustees, officers and
advisory board members of the funds managed by Capital
Research and Management Company, employees of
Washington Management Corporation, employees and
partners of The Capital Group Companies, Inc. and its
affiliated companies, certain family members of the
above persons, and trusts or plans primarily for such
persons; (2) current registered representatives,
retired registered representatives with respect to
accounts established while active, or full-time
employees (and their spouses, parents, and children) of
dealers who have sales agreements with American Funds
Distributors (or who clear transactions through such
dealers) and plans for such persons or the dealers; (3)
companies exchanging securities with the fund through a
merger, acquisition or exchange offer; (4) trustees or
other fiduciaries purchasing shares for certain
retirement plans of organizations with retirement plan
assets of $100 million or more; (5) insurance company
separate accounts; (6) accounts managed by subsidiaries
of The Capital Group Companies, Inc.; and (7) The
Capital Group Companies, Inc., its affiliated companies
and Washington Management Corporation. Shares are
offered at net asset value to these persons and
organizations due to anticipated economies in sales
effort and expense.
REDUCING AGGREGATION Sales charge discounts are available for
YOUR SALES certain aggregated investments. Qualifying investments
CHARGE include those by you, your spouse and your children
under the age of 21, if all parties are purchasing
You and your shares for their own account(s), which may include
immediate family purchases through employee benefit plan(s) such as an
may combine IRA, individual-type 403(b) plan or single-participant
investments to Keogh-type plan or by a business solely controlled by
reduce your costs. these individuals (for example, the individuals own the
entire business) or by a trust (or other fiduciary
arrangement) solely for the benefit of these
individuals. Individual purchases by a trustee(s) or
other fiduciary(ies) may also be aggregated if the
investments are (1) for a single trust estate or
fiduciary account, including an employee benefit plan
other than those described above or (2) made for two or
more employee benefit plans of a single employer or of
affiliated employers as defined in the Investment
Company Act of 1940, again excluding employee benefit
plans described above, or (3) for a diversified common
trust fund or other diversified pooled account not
specifically formed for the purpose of accumulating
fund shares. Purchases made for nominee or street name
accounts (securities held in the name of an investment
dealer or another nominee such as a bank trust
department instead of the customer) may not be
aggregated with those made for
14
<PAGE>
- -------------------------------------------------------------------------------
other accounts and may not be aggregated with other
nominee or street name accounts unless otherwise
qualified as described above.
CONCURRENT PURCHASES To qualify for a reduced sales
charge, you may combine concurrent purchases of two or
more funds in The American Funds Group, except direct
purchases of the money market funds. (Shares of the
money market funds purchased through an exchange,
reinvestment or cross-reinvestment from a fund having a
sales charge do qualify.) For example, if you
concurrently invest $25,000 in one fund and $25,000 in
another, the sales charge would be reduced to reflect a
$50,000 purchase.
RIGHT OF ACCUMULATION The sales charge for your invest-
ment may also be reduced by taking into account the
current value of your existing holdings in The American
Funds Group. Direct purchases of the money market funds
are excluded. (See account application.)
STATEMENT OF INTENTION You may reduce sales charges on
all investments by meeting the terms of a statement of
intention, a non-binding commitment to invest a certain
amount in fund shares subject to a commission within a
13-month period. Five percent of the statement amount
will be held in escrow to cover additional sales
charges which may be due if your total investments over
the statement period are insufficient to qualify for a
sales charge reduction. (See account application and
the statement of additional information under "Purchase
of Shares--Statement of Intention.")
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 ABOVE.
SHAREHOLDER AUTOMATIC INVESTMENT PLAN You may make regular monthly
SERVICES or quarterly investments through automatic charges to
your bank account. Once a plan is established, your ac-
The fund offers count will normally be charged by the 10th day of the
you a valuable month during which an investment is made (or by the
array of services 15th day of the month in the case of any retirement
designed to plan for which Capital Guardian Trust Company--another
increase the affiliate of The Capital Group Companies, Inc.--acts as
convenience and trustee or custodian).
flexibility of
your investment-- AUTOMATIC REINVESTMENT Dividends and capital gain dis-
services you can tributions are reinvested in additional shares at no
use to alter your sales charge unless you indicate otherwise on the
investment program account application. You also may elect to have divi-
as your needs and dends and/or capital gain distributions paid in cash by
circumstances informing the fund, American Funds Service Company or
change. your investment dealer.
CROSS-REINVESTMENT You may cross-reinvest dividends or
dividends and capital gain distributions paid by one
fund into another fund in The American Funds Group,
subject to conditions outlined in the statement of ad-
ditional information. Generally, to use this service
the value of your account in the paying fund must equal
at least $5,000.
15
<PAGE>
- -------------------------------------------------------------------------------
EXCHANGE PRIVILEGE You may exchange shares into other
funds in The American Funds Group. Exchange purchases
are subject to the minimum investment requirements of
the fund purchased and no sales charge generally
applies. However, exchanges of shares from the money
market funds are subject to applicable sales charges on
the fund being purchased, unless the money market fund
shares were acquired by an exchange from a fund having
a sales charge, or by reinvestment or cross-
reinvestment of dividends or capital gain
distributions.
You may exchange shares by writing to American Funds
Service Company (see "Redeeming Shares"), by contacting
your investment dealer, by using American FundsLine(R)
(see "Shareholder Services--American FundsLine(R)" be-
low), or by telephoning 800/421-0180 toll-free, faxing
(see "Transfer Agent" above for the appropriate fax
numbers) or telegraphing American Funds Service Compa-
ny. (See "Telephone Redemptions and Exchanges" below.)
Shares held in corporate-type retirement plans for
which Capital Guardian Trust Company serves as trustee
may not be exchanged by telephone, fax or telegraph.
Exchange redemptions and purchases are processed simul-
taneously at the share prices next determined after the
exchange order is received. (See "Purchasing Shares--
Share Price.") THESE TRANSACTIONS HAVE THE SAME TAX
CONSEQUENCES AS ORDINARY SALES AND PURCHASES.
AUTOMATIC EXCHANGES You may automatically exchange
shares (in amounts of $50 or more) among any of the
funds in The American Funds Group on any day (or pre-
ceding business day if the day falls on a non-business
day) of each month you designate. You must either meet
the minimum initial investment requirement for the re-
ceiving fund OR the originating fund's balance must be
at least $5,000 and the receiving fund's minimum must
be met within one year.
AUTOMATIC WITHDRAWALS You may make automatic
withdrawals of $50 or more as follows: five or more
times per year if you have an account of $10,000 or
more, or four or fewer times per year if you have an
account of $5,000 or more. Withdrawals are made on or
about the 15th day of each month you designate, and
checks will be sent within seven days. (See "Other
Important Things to Remember.") Additional investments
in a withdrawal account must not be less than one
year's scheduled withdrawals or $1,200, whichever is
greater. However, additional investments in a
withdrawal account may be inadvisable due to sales
charges and tax liabilities.
THESE SERVICES ARE AVAILABLE ONLY IN STATES WHERE THE
FUND TO BE PURCHASED MAY BE LEGALLY OFFERED AND MAY BE
TERMINATED OR MODIFIED AT ANY TIME UPON 60 DAYS'
WRITTEN NOTICE.
ACCOUNT STATEMENTS Your account is opened in accordance
with your registration instructions. Transactions in
the account, such as additional investments and
dividend reinvestments, will be reflected on regular
confirmation statements from American Funds Service
Company. Purchases through automatic investment plans
will be confirmed at least quarterly.
16
<PAGE>
- -------------------------------------------------------------------------------
AMERICAN FUNDSLINE(R) You may check your share balance,
the price of your shares, or your most recent account
transaction, redeem shares (up to $10,000 per fund, per
account each day), or exchange shares around the clock
with American FundsLine(R). To use this service, call
800/325-3590 from a TouchTone(TM) telephone.
Redemptions and exchanges through American FundsLine(R)
are subject to the conditions noted above and in
"Redeeming Shares--Telephone Redemptions and Exchanges"
below. You will need your fund number (see the list of
funds in The American Funds Group under "Purchasing
Shares--Investment Minimums and Fund Numbers"),
personal identification number (the last four digits of
your Social Security number or other tax identification
number associated with your account) and account
number.
REDEEMING By writing to Send a letter of instruction
SHARES American specifying the name of the fund, the
Funds Service number of shares or dollar amount to
You may take money Company (at be sold, your name and account
out of your the number. You should also enclose any
account whenever appropriate share certificates you wish to
you please. address redeem. For redemptions over $50,000
indicated and for certain redemptions of
under "Fund $50,000 or less (see below), your
Organization signature must be guaranteed by a
and bank, savings association, credit
Management-- union, or member firm of a domestic
Transfer stock exchange or the National
Agent") Association of Securities Dealers,
Inc., that is an eligible guarantor
institution. You should verify with
the institution that it is an
eligible guarantor prior to signing.
Additional documentation may be
required for redemption of shares
held in corporate, partnership or
fiduciary accounts. Notarization by a
Notary Public is not an acceptable
signature guarantee.
--------------------------------------------------------
By contacting If you redeem shares through your
your investment dealer, you may be charged
investment for this service. SHARES HELD FOR YOU
dealer IN YOUR INVESTMENT DEALER'S STREET
NAME MUST BE REDEEMED THROUGH THE
DEALER.
--------------------------------------------------------
You may have You may use this option, provided the
a redemption account is registered in the name of
check sent to an individual(s), a UGMA/UTMA
you by using custodian, or a non-retirement plan
American trust. These redemptions may not
FundsLine(R) exceed $10,000 per day, per fund
or by account and the check must be made
telephoning, payable to the shareholder(s) of
faxing, or record and be sent to the address of
telegraphing record provided the address has been
American used with the account for at least 10
Funds Service days. See "Transfer Agent" and
Company "Exchange Privilege" above for the
(subject to appropriate telephone or fax number.
the conditions
noted in this
section and
in "Telephone
Redemptions
and
Exchanges"
below)
--------------------------------------------------------
In the case Upon request (use the account
of the money application for the money market
market funds, funds) you may establish telephone
you may have redemption privileges (which will
redemptions enable you to have a redemption sent
wired to your to your bank account) and/or check
bank by writing privileges. If you request
telephoning check writing privileges, you will be
American provided with checks that you may use
Funds Service to draw against your account. These
Company checks may be made payable to anyone
($1,000 or you designate and must be signed by
more) or by the authorized number of registered
writing a shareholders exactly as indicated on
check ($250 your checking account signature card.
or more)
--------------------------------------------------------
A SIGNATURE GUARANTEE IS NOT CURRENTLY REQUIRED FOR ANY
REDEMPTION OF $50,000 OR LESS PROVIDED THE REDEMPTION
CHECK IS MADE PAYABLE TO THE REGISTERED SHAREHOLDER(S)
AND IS MAILED TO THE ADDRESS OF RECORD, PROVIDED THE
ADDRESS HAS BEEN USED WITH THE ACCOUNT FOR AT LEAST 10
DAYS.
17
<PAGE>
- -------------------------------------------------------------------------------
THE PRICE YOU RECEIVE FOR THE SHARES YOU REDEEM IS THE
NET ASSET VALUE NEXT DETERMINED AFTER YOUR ORDER AND
ALL REQUIRED DOCUMENTATION ARE RECEIVED BY THE FUND OR
AMERICAN FUNDS SERVICE COMPANY. (SEE "PURCHASING
SHARES--SHARE PRICE.")
TELEPHONE REDEMPTIONS AND EXCHANGES By using the
telephone (including American FundsLine(R)), fax or
telegraph redemption and/or exchange options, you agree
to hold the fund, American Funds Service Company, any
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 liability (including
attorney fees) which may be incurred in connection with
the exercise of these privileges. Generally, all
shareholders are automatically eligible to use these
options. However, you may elect to opt out of these
options by writing American Funds Service Company (you
may reinstate them at any time also by writing American
Funds Service Company). If American Funds Service
Company does not employ reasonable procedures to
confirm that the instructions received from any person
with appropriate account information are genuine, the
fund may be liable for losses due to unauthorized or
fraudulent instructions. In the event that shareholders
are unable to reach the fund by telephone because of
technical difficulties, market conditions, or a natural
disaster, redemption and exchange requests may be made
in writing only.
CONTINGENT DEFERRED SALES CHARGE A contingent deferred
sales charge of 1% applies to certain redemptions
within the first year on investments of $1 million or
more and on any investment made with no initial sales
charge by any employer-sponsored 403(b) plan or defined
contribution plan qualified under Section 401(a) of the
Internal Revenue Code including a "401(k)" plan with
200 or more eligible employees. The charge is 1% of the
lesser of the value of the shares redeemed (exclusive
of reinvested dividends and capital gain distributions)
or the total cost of such shares. Shares held for the
longest period are assumed to be redeemed first for
purposes of calculating this charge. The charge is
waived for exchanges (except if shares acquired by
exchange were then redeemed within 12 months of the
initial purchase); for distributions from qualified
retirement plans and other employee benefit plans; for
redemptions resulting from participant-directed
switches among investment options within a participant-
directed employer-sponsored retirement plan; for
distributions from 403(b) plans or IRAs due to death,
disability or attainment of age 59 1/2; for tax-free
returns of excess contributions to IRAs; for
redemptions through certain automatic withdrawals not
exceeding 10% of the amount that would otherwise be
subject to the charge; and for redemptions in
connection with loans made by qualified retirement
plans.
REINSTATEMENT PRIVILEGE You may reinvest proceeds from
a redemption or a dividend or capital gain distribution
without a sales charge (any contingent deferred sales
charge paid will be credited to your
18
<PAGE>
- -------------------------------------------------------------------------------
account) in any fund in The American Funds Group. Send
a written request and a check to American Funds Service
Company within 90 days after the date of the redemption
or distribution. Reinvestment will be at the next
calculated net asset value after receipt. The tax
status of a gain realized on a redemption will not be
affected by exercise of the reinstatement privilege,
but a loss may be nullified if you reinvest in the same
fund within 30 days. If you redeem your shares within
90 days after purchase and the sales charge on the
purchase of other shares is waived under the
reinstatement privilege, the sales charge you
previously paid for the shares may not be taken into
account when you calculate your gain or loss on that
redemption.
OTHER IMPORTANT THINGS TO REMEMBER The net asset value
for redemptions is determined as indicated under
"Purchasing Shares--Share Price." Because each stock,
stock/bond and bond fund's net asset value fluctuates,
reflecting the market value of the fund's portfolio,
the amount a shareholder receives for shares redeemed
may be more or less than the amount paid for them.
Redemption proceeds will not be mailed until sufficient
time has passed to provide reasonable assurance that
checks or drafts (including certified or cashier's
checks) for shares purchased have cleared (which may
take up to 15 calendar days from the purchase date).
Except for delays relating to clearance of checks for
share purchases or in extraordinary circumstances (and
as permissible under the Investment Company Act of
1940), redemption proceeds will be paid on or before
the seventh day following receipt of a proper
redemption request.
A fund may, with 60 days' written notice, close your
account if, due to a redemption, the account has a
value of less than the minimum required initial
investment. (For example, a fund may close an account
if a redemption is made shortly after a minimum initial
investment is made.)
RETIREMENT You may invest in the funds through various retirement
PLANS plans including the following plans for which Capital
Guardian Trust Company acts as trustee or custodian:
IRAs, Simplified Employee Pension plans, 403(b) plans
and Keogh- and corporate-type business retirement
plans. For further information about any of the plans,
agreements, applications and annual fees, contact
American Funds Distributors or your investment dealer.
To determine which retirement plan is appropriate for
you, please consult your tax adviser. TAX-EXEMPT FUNDS
SHOULD NOT SERVE AS INVESTMENTS FOR RETIREMENT PLANS.
FOR MORE INFORMATION, PLEASE REFER TO THE ACCOUNT
APPLICATION OR THE STATEMENT OF ADDITIONAL INFORMATION.
IF YOU HAVE ANY QUESTIONS ABOUT ANY OF THE SHAREHOLDER
SERVICES DESCRIBED HEREIN OR YOUR ACCOUNT, PLEASE
CONTACT YOUR INVESTMENT DEALER OR AMERICAN FUNDS
SERVICE COMPANY.
[LOGO OF This prospectus has been printed on
RECYCLED recycled paper that meets the
PAPER] guidelines of the United States
Environmental Protection Agency
19
<PAGE>
PROSPECTUS
for Eligible Retirement Plans
AMERICAN
MUTUAL FUND(R)
(ART)
An opportunity for current income, capital
growth and conservation of principal
DECEMBER 29, 1995 [LOGO OF THE AMERICAN FUNDS GROUP(R)]
AMERICAN MUTUAL FUND, INC.
333 South Hope Street
Los Angeles, California 90071
The fund strives for the balanced accomplishment of three objectives--current
income, capital growth and conservation of principal. It seeks to fulfill
these objectives through constant supervision, careful selection and
diversification of a portfolio which ordinarily consists principally of
equity-type securities of companies that are likely to participate in the
growth of the American economy.
This prospectus relates only to shares of the fund offered without a sales
charge to eligible retirement plans. For a prospectus regarding shares of the
fund to be acquired otherwise, contact the Secretary of the fund at the
address indicated above.
This prospectus presents information you should know before investing in the
fund. It should be retained for future reference.
You may obtain the statement of additional information for the fund, dated
December 29, 1995, which contains the fund's financial statements, without
charge, by writing to the Secretary of the fund at the above address or
telephoning 800/421-0180. These requests will be honored within three business
days of receipt.
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR INSURED OR
GUARANTEED BY, THE U.S. GOVERNMENT, ANY FINANCIAL INSTITUTION, THE FEDERAL
DEPOSIT INSURANCE CORPORATION, OR ANY OTHER AGENCY, ENTITY OR PERSON. THE
PURCHASE OF FUND SHARES INVOLVES INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS
OF PRINCIPAL.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS
A CRIMINAL OFFENSE.
RP 03-010-1295
<PAGE>
- -------------------------------------------------------------------------------
SUMMARY OF
EXPENSES
Average annual expenses
paid over a 10-year
period would be
approximately $7 per
year, assuming a $1,000
investment and a 5%
annual return with no
sales charge.
TABLE OF CONTENTS
<TABLE>
<S> <C>
Summary of Expenses.......... 2
Financial Highlights......... 3
Investment Objectives and
Policies.................... 3
Investment Techniques........ 4
Investment Results........... 6
Dividends, Distributions and
Taxes....................... 6
Fund Organization and
Management.................. 7
Purchasing Shares............ 9
Shareholder Services......... 10
Redeeming Shares............. 11
</TABLE>
This table is designed to help you understand the costs of investing in the
fund. These are historical expenses; your actual expenses may vary.
SHAREHOLDER TRANSACTION EXPENSES
Certain retirement plans may purchase shares of the fund with no sales
charge./1/ The fund also has no sales charge on reinvested dividends, deferred
sales charge, redemption fees or exchange fees.
ANNUAL FUND OPERATING EXPENSES (as a percentage of average net assets)
<TABLE>
<S> <C>
Management fees........................................................ 0.30%
12b-1 expenses......................................................... 0.19%/2/
Other expenses (including audit, legal, shareholder services,
transfer agent and custodian expenses)................................ 0.10%
Total fund operating expenses.......................................... 0.59%
</TABLE>
<TABLE>
<CAPTION>
EXAMPLE 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
You would pay the following cumulative
expenses on a $1,000 investment, assuming a 5%
annual return./3/ $6 $19 $33 $74
</TABLE>
/1/ Retirement plans of organizations with $100 million or more in collective
retirement plan assets may purchase shares of the fund with no sales charge.
In addition, any employer-sponsored 403(b) plan or defined contribution plan
qualified under Section 401(a) of the Internal Revenue Code including a
"401(k)" plan with 200 or more eligible employees or any other plan that
invests at least $1 million in shares of the fund (or in combination with
shares of other funds in The American Funds Group other than the money
market funds) may purchase shares at net asset value; however, a contingent
deferred sales charge of 1% applies on certain redemptions made within 12
months following such purchases. (See "Redeeming Shares--Contingent Deferred
Sales Charge.")
/2/ These expenses may not exceed 0.25% of the fund's average net assets
annually. (See "Fund Organization and Management--Plan of Distribution.")
Due to these distribution expenses, long-term shareholders may pay more than
the economic equivalent of the maximum front-end sales charge permitted by
the National Association of Securities Dealers.
/3/ Use of this assumed 5% return is required by the Securities and Exchange
Commission; it is not an illustration of past or future investment results.
THIS EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES; ACTUAL EXPENSES MAY BE GREATER OR LESSER THAN THOSE SHOWN.
2
<PAGE>
- -------------------------------------------------------------------------------
FINANCIAL The following information has been audited by Deloitte &
HIGHLIGHTS Touche llp, independent accountants, whose unqualified
report covering each of the most recent five years is
(For a share included in the statement of additional information.
outstanding This information should be read in conjunction with the
throughout the financial statements and accompanying notes which are
fiscal year) also included in the statement of additional
information.
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31
-------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Begin-
ning of Period......... $21.60 $23.21 $21.29 $20.98 $17.91 $20.53 $18.66 $18.16 $19.12 $16.11
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income.. .87 .88 .85 .87 .89 .96 1.00 .85 .78 .77
Net realized and
unrealized gain (loss)
on investments........ 3.41 (.54) 2.89 .98 3.39 (1.79) 2.53 1.25 .24 3.84
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total from investment
operations........... 4.28 .34 3.74 1.85 4.28 (.83) 3.53 2.10 1.02 4.61
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net
investment income..... (.84) (.84) (.85) (.88) (1.01) (1.00) (.99) (.89) (.76) (.74)
Distributions from net
realized gains........ (.87) (1.11) (.97) (.66) (.20) (.79) (.67) (.71) (1.22) (.86)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total Distributions... (1.71) (1.95) (1.82) (1.54) (1.21) (1.79) (1.66) (1.60) (1.98) (1.60)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net Asset Value, End of
Period................. $24.17 $21.60 $23.21 $21.29 $20.98 $17.91 $20.53 $18.66 $18.16 $19.12
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Total Return/1/........ 21.25% 1.75% 18.63% 9.43% 24.62% (4.65)% 20.22% 12.52% 5.24% 30.10%
RATIOS/SUPPLEMENTAL DATA
Net Assets, end of pe-
riod (in millions).... $6,552 $5,397 $5,283 $4,565 $4,134 $3,196 $3,169 $2,610 $2,388 $2,104
Ratios of expenses to
average net assets.... .59% .60% .59% .60% .63% .60% .59% .54% .47% .45%
Ratio of net income to
average net assets.... 3.92% 4.07% 3.83% 4.15% 4.47% 5.00% 5.20% 4.77% 4.26% 4.46%
Portfolio turnover
rate.................. 23.31% 18.46% 22.48% 37.35% 23.77% 12.17% 22.80% 16.92% 13.42% 18.06%
</TABLE>
--------
/1/ Calculated with no sales charge.
INVESTMENT The fund strives for the balanced accomplishment of
OBJECTIVES three investment objectives--current income, capital
AND POLICIES growth and conservation of principal. The fund seeks to
fulfill each of its objectives as follows:
The fund aims to
provide you with CURRENT INCOME primarily by the selection of investments
current income, whose dividends appear well protected.
capital growth and
conservation of CAPITAL GROWTH primarily by the purchase of equity-type
principal. securities of companies which Capital Research and
Management Company, the investment adviser, expects are
likely to participate in the growth of the American
economy.
CONSERVATION OF PRINCIPAL by careful selection, broad
diversification and constant supervision of investments
which should serve to reduce risk and thereby preserve
principal.
The fund's portfolio is managed as a whole in that the
fund does not seek to fulfill all of its objectives in
each of its investments. The fund will ordinarily invest
principally in equity-type securities such as common
stocks and nonconvertible preferred stocks of companies
that are likely to
3
<PAGE>
- -------------------------------------------------------------------------------
participate in the growth of the American economy. The
fund's investments include the stocks of companies
domiciled in the U.S. and/or that are part of the
Standard & Poor's 500 Stock Composite Index which is
considered a broad measure of the U.S. market. However,
assets may also be held in securities convertible into
common stocks, straight debt securities (rated in the
top three quality categories by Standard & Poor's
Corporation or Moody's Investors Service, Inc. or
unrated but determined to be of equivalent quality by
Capital Research and Management Company), cash or cash
equivalents, and U.S. Government securities. (See the
statement of additional information for a description
of cash equivalents.)
The fund's investments are limited to securities in-
cluded on its eligible list, which consists of securi-
ties deemed suitable investment media in light of the
fund's investment objectives and policies. Securities
are added to, or deleted from, the eligible list by the
board of directors, reviewing and acting upon the rec-
ommendations of Capital Research and Management Compa-
ny.
The fund's investment restrictions (which are described
in the statement of additional information) and
objectives cannot be changed without shareholder
approval. All other investment practices may be changed
by the board of directors.
ACHIEVEMENT OF THE FUND'S INVESTMENT OBJECTIVES CANNOT,
OF COURSE, BE ASSURED DUE TO THE RISK OF CAPITAL LOSS
FROM FLUCTUATING PRICES INHERENT IN ANY INVESTMENT IN
SECURITIES.
RISKS OF INVESTING Because the fund invests in equity-
INVESTMENT type securities such as common stocks and
TECHNIQUES nonconvertible preferred stocks, the fund's portfolio
is subject to market risks, including, for example, the
Investing in possibility that stock prices in general may decline
stocks over short or even extended periods.
involves certain
risks. The fund may also invest in fixed-income securities,
including bonds, which have market values which tend to
vary inversely with the level of interest rates--when
interest rates rise, their values will tend to decline
and vice versa. Although under normal market conditions
longer term securities yield more than shorter term
securities of similar quality, they are subject to
greater price fluctuations. These fluctuations in the
value of the fund's investments will be reflected in
its net asset value per share.
4
<PAGE>
- -------------------------------------------------------------------------------
MULTIPLE PORTFOLIO COUNSELOR SYSTEM The basic
investment philosophy of Capital Research and
Management Company is to seek fundamental values at
reasonable prices, using a system of multiple portfolio
counselors in managing mutual fund assets. Under this
system the portfolio of the fund is divided into
segments, which are managed by individual counselors.
Each counselor decides how the segment will be invested
(within the limits provided by the fund's objectives and
policies and by Capital Research and Management Company's
investment committee). In addition, Capital Research and
Management Company's research professionals make
investment decisions with respect to a portion of the
fund's portfolio. The primary individual portfolio
counselors for the fund are listed below.
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
YEARS OF EXPERIENCE AS
PORTFOLIO COUNSELOR YEARS OF EXPERIENCE
(AND RESEARCH AS INVESTMENT PROFESSIONAL
PORTFOLIO COUNSELORS PROFESSIONAL, IF (APPROXIMATE)
FOR APPLICABLE)
AMERICAN MUTUAL PRIMARY TITLE(S) FOR WITH CAPITAL
FUND AMERICAN MUTUAL FUND RESEARCH AND
(APPROXIMATE) MANAGEMENT
COMPANY OR TOTAL
ITS AFFILIATES YEARS
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Jon B. Lovelace, Chairman of the Board 37 years 44 years 44 years
Jr. of the fund. Vice
Chairman of the
Board and Chairman of
the Executive
Committee, Capital
Research and
Management Company
- ---------------------------------------------------------------------------------------------------------
James K. Dunton President and 26 years 33 years 33 years
Director of the
fund. Senior Vice
President and Director,
Capital Research
and Management
Company
- ---------------------------------------------------------------------------------------------------------
Robert G. Executive Vice 8 years (plus 12 20 years 24 years
O'Donnell President of the years as research
fund. Senior Vice professional prior
President to becoming a
and Director, Capital portfolio counselor
Research for the fund)
and Management
Company
- ---------------------------------------------------------------------------------------------------------
Timothy D. Armour Vice President of the 4 years (plus 5 13 years 13 years
fund. years as research
Executive Vice professional prior
President, to becoming a
Capital Research portfolio counselor
Company* for the fund)
- ---------------------------------------------------------------------------------------------------------
R. Michael Portfolio counselor 10 years (plus 7 31 years 31 years
Shanahan for the years as research
fund. Chairman of the professional prior
Board, to becoming a
and Principal portfolio counselor
Executive Officer, for the fund)
Capital Research and
Management Company
- ---------------------------------------------------------------------------------------------------------
</TABLE>
* Company affiliated with Capital Research and Management Company.
5
<PAGE>
- -------------------------------------------------------------------------------
INVESTMENT The fund may from time to time compare its investment
RESULTS results to various unmanaged indices or other mutual
funds in reports to shareholders, sales literature and
The fund has advertisements. The results may be calculated on a to-
averaged a total tal return, yield and/or distribution rate basis for
return (at no various periods, with or without sales charges. Results
sales charge) of calculated without a sales charge will be higher. Total
12.99% a year over returns assume the reinvestment of all dividends and
its lifetime capital gain distributions.
(February 21, 1950 The fund's yield and the average annual total returns
through September are calculated with no sales charge in accordance with
30, 1995). Securities and Exchange Commission requirements. The
fund's distribution rate is calculated by dividing the
dividends paid by the fund over the last 12 months by
the sum of the month-end price and the capital gains
paid over the last 12 months. For the 30-day period
ended September 30, 1995, the fund's SEC yield was
3.53% and the distribution rate was 3.32% with no sales
charge. The SEC yield reflects income earned by the
fund, while the distribution rate reflects dividends
paid by the fund. The fund's total return over the past
12 months and average annual total returns over the
past five-year and lifetime periods, as of September
30, 1995, were 22.55%, 14.75% and 13.96%, respectively.
Of course, past results are not an indication of future
results. Further information regarding the fund's
investment results is contained in the fund's annual
report which may be obtained without charge by writing
to the Secretary of the fund at the address indicated
on the cover of this prospectus.
DIVIDENDS, DIVIDENDS AND DISTRIBUTIONS Dividends are usually paid
DISTRIBUTIONS in April, July, October and December. Capital gains, if
AND TAXES any, are usually distributed in December. When a
dividend or capital gain is distributed, the net asset
Income value per share is reduced by the amount of the
distributions are payment.
usually made in
April, July, The terms of your plan will govern how your plan may
October and receive distributions from the fund. Generally,
December. periodic distributions from the fund to your plan are
reinvested in additional fund shares, although your
plan may permit fund distributions from net investment
income to be received by you in cash while reinvesting
capital gain distributions in additional shares or all
fund distributions to be received in cash. Unless you
select another option, all distributions will be
reinvested in additional fund shares.
FEDERAL TAXES The fund intends to operate as a
"regulated investment company" under the Internal
Revenue Code. For any fiscal year in which the fund so
qualifies and distributes to shareholders all of its
net investment income and net capital gains, the fund
itself is relieved
6
<PAGE>
- -------------------------------------------------------------------------------
of federal income tax. The tax treatment of redemptions
from a retirement plan may differ from redemptions from
an ordinary shareholder account.
Please see the statement of additional information and
your tax adviser for further information.
FUND FUND ORGANIZATION AND VOTING RIGHTS The fund, an open-
ORGANIZATION end, diversified management investment company, was
AND organized as a Delaware corporation in 1949 and was
MANAGEMENT reincorporated in the State of Maryland in 1984. The
fund's board supervises fund operations and performs
The fund is a duties required by applicable state and federal law.
member of The Members of the board who are not employed by Capital
American Funds Research and Management Company or its affiliates are
Group, which is paid for services rendered to the fund as described in
managed by one of the statement of additional information. They may elect
the largest and to defer all or a portion of these fees through a
most experienced deferred compensation plan in effect for the fund.
investment Shareholders have one vote per share owned and, at the
advisers. request of the holders of at least 10% of the shares,
the fund will hold a meeting at which any member of the
board could be removed by a majority vote. There will
not usually be a shareholder meeting in any year
except, for example, when the election of the board is
required to be acted upon by shareholders under the
Investment Company Act of 1940.
THE INVESTMENT ADVISER Capital Research and Management
Company, a large and experienced investment management
organization founded in 1931, is the investment adviser
to the fund and other funds, including those in The
American Funds Group. Capital Research and Management
Company is located at 333 South Hope Street, Los Ange-
les, CA 90071, and at 135 South State College Boule-
vard, Brea, CA 92621. Capital Research and Management
Company manages the investment portfolio and business
affairs of the fund and receives a fee at the annual
rate of 0.384% on the first $1 billion of the fund's
assets, 0.33% on net assets in excess of $1 billion but
not exceeding $2 billion, 0.294% on net assets in ex-
cess of $2 billion but not exceeding $3 billion, 0.27%
on net assets in excess of $3 billion but not exceeding
$5 billion, 0.252% on net assets in excess of $5 bil-
lion but not exceeding $8 billion, and 0.24% on net as-
sets in excess of $8 billion.
Capital Research and Management Company is a wholly
owned subsidiary of The Capital Group Companies, Inc.
(formerly "The Capital Group, Inc."), which is located
at 333 South Hope Street, Los Angeles, CA 90071. The
research activities of Capital Research and Management
Company are conducted by affiliated companies which
have offices in Los Angeles, San Francisco, New York,
Washington, D.C., London, Geneva, Singapore, Hong Kong
and Tokyo.
7
<PAGE>
- -------------------------------------------------------------------------------
Capital Research and Management Company and its affili-
ated companies have adopted a personal investing policy
that is consistent with the recommendations contained
in the report dated May 9, 1994 issued by the Invest-
ment Company Institute's Advisory Group on Personal In-
vesting. (See the statement of additional information.)
PORTFOLIO TRANSACTIONS Orders for the fund's portfolio
securities transactions are placed by Capital Research
and Management Company, which strives to obtain the
best available prices, taking into account the costs
and quality of executions. In the over-the-counter mar-
ket, purchases and sales are transacted directly with
principal market-makers except in those circumstances
where it appears better prices and executions are
available elsewhere.
Subject to the above policy, when two or more brokers
are in a position to offer comparable prices and
executions, preference may be given to brokers that
have sold shares of the fund or have provided
investment research, statistical, and other related
services for the benefit of the fund and/or other funds
served by Capital Research and Management Company.
PRINCIPAL UNDERWRITER American Funds Distributors,
Inc., a wholly owned subsidiary of Capital Research and
Management Company, is the principal underwriter of the
fund's shares. American Funds Distributors, Inc. is
located at 333 South Hope Street, Los Angeles, CA
90071, 135 South State College Boulevard, Brea, CA
92621, 8000 IH-10 West, San Antonio, TX 78230, 8332
Woodfield Crossing Boulevard, Indianapolis, IN 46240,
and 5300 Robin Hood Road, Norfolk, VA 23513. Telephone
conversations with American Funds Distributors may be
recorded or monitored for verification, recordkeeping
and quality assurance purposes.
PLAN OF DISTRIBUTION The fund has a plan of distribu-
tion or "12b-1 Plan" under which it may finance activi-
ties primarily intended to sell shares, provided the
categories of expenses are approved in advance by the
board and the expenses paid under the plan were in-
curred within the last 12 months and accrued while the
plan is in effect. Expenditures by the fund under the
plan may not exceed 0.25% of its average net assets an-
nually (all of which may be for service fees.)
TRANSFER AGENT American Funds Service Company, 800/421-
0180, a wholly owned subsidiary of Capital Research and
Management Company, is the transfer agent and performs
shareholder service functions. American Funds Service
Company is located at 333 South Hope Street, Los
Angeles, CA 90071, 135 South State College Boulevard,
Brea, CA 92621, 8000 IH-10 West, San Antonio, TX 78230,
5300 Robin Hood Road, Norfolk, VA 23513 and 8332
Woodfield Crossing
8
<PAGE>
- -------------------------------------------------------------------------------
Boulevard, Indianapolis, IN 46240. It was paid a fee of
$3,849,000 for the fiscal year ended October 31, 1995.
Telephone conversations with American Funds Service
Company may be recorded or monitored for verification,
recordkeeping and quality assurance purposes.
PURCHASING SHARES ALL ORDERS TO PURCHASE SHARES MUST BE MADE THROUGH YOUR
RETIREMENT PLAN. FOR MORE INFORMATION ABOUT HOW TO
PURCHASE SHARES OF THE FUND THROUGH YOUR PLAN OR
LIMITATIONS ON THE AMOUNT THAT MAY BE PURCHASED, PLEASE
CONSULT WITH YOUR EMPLOYER. Shares are sold to eligible
retirement plans at the net asset value per share next
determined after receipt of an order by the fund or
American Funds Service Company. Orders must be received
before the close of regular trading on the New York
Stock Exchange in order to receive that day's net asset
value. Plans of organizations with collective
retirement plan assets of $100 million or more may
purchase shares at net asset value. In addition, any
employer-sponsored 403(b) plan or defined contribution
plan qualified under Section 401(a) of the Internal
Revenue Code including a "401(k)" plan with 200 or more
eligible employees or any other plan that invests at
least $1 million in shares of the fund (or in
combination with shares of other funds in The American
Funds Group other than the money market funds) may
purchase shares at net asset value; however, a
contingent deferred sales charge of 1% is imposed on
certain redemptions made within one year of such
purchase. (See "Redeeming Shares--Contingent Deferred
Sales Charge.") Plans may also qualify to purchase
shares at net asset value by completing a statement of
intention to purchase $1 million in fund shares subject
to a commission over a maximum of 13 consecutive
months. Certain redemptions of such shares may also be
subject to a contingent deferred sales charge as
described above. (See the statement of additional
information.)
The minimum initial investment is $250, except that the
money market funds have a minimum of $1,000 for
individual retirement accounts (IRAs). Minimums are
reduced to $50 for purchases through "Automatic
Investment Plans" (except for the money market funds)
or to $25 for purchases by retirement plans through
payroll deductions and may be reduced or waived for
shareholders of other funds in The American Funds
Group.
American Funds Distributors, at its expense (from a
designated percentage of its income), will, during
calendar year 1996, provide additional promotional
incentives to dealers. Currently these incentives are
limited to the top one hundred dealers who have sold
shares of the fund or other funds in The American Funds
Group. Such incentive payments will be based on a pro
rata share of a qualifying dealer's sales. American
Funds Distributors will, on an annual basis, determine
the advisability of continuing these promotional
incentives.
9
<PAGE>
- -------------------------------------------------------------------------------
Qualified dealers currently are paid a continuing
service fee not to exceed 0.25% of average net assets
(0.15% in the case of the money market funds) annually
in order to promote selling efforts and to compensate
them for providing certain services. (See "Fund
Organization and Management--Plan of Distribution.")
These services include processing purchase and
redemption transactions, establishing shareholder
accounts and providing certain information and
assistance with respect to the fund.
Shares of the fund not offered through a retirement
plan are offered to other shareholders pursuant to an-
other prospectus at public offering prices that may in-
clude an initial sales charge.
SHARE PRICE Shares are offered to eligible retirement
plans at the net asset value next determined after the
order is received by the fund or American Funds Service
Company. In the case of orders sent directly to the
fund or American Funds Service Company, an investment
dealer must be indicated. Dealers are responsible for
promptly transmitting orders. (See the statement of ad-
ditional information under "Purchase of Shares--Price
of Shares.")
The fund's net asset value per share is determined as
of the close of trading (currently 4:00 p.m., New York
time) on each day the New York Stock Exchange is open.
The current value of the fund's total assets, less all
liabilities, is divided by the total number of shares
outstanding and the result, rounded to the nearer cent,
is the net asset value per share.
SHAREHOLDER Subject to any restrictions contained in your plan, you
SERVICES can exchange your shares for shares of other funds in
The American Funds Group which are offered through the
plan at net asset value. In addition, again depending
on your plan, you may be able to exchange shares auto-
matically or cross-reinvest dividends in shares of
other funds. Contact your plan administrator/trustee
regarding how to use these services. Also, see the
fund's statement of additional information for a de-
scription of these and other services that may be
available through your plan. These services are avail-
able only in states where the fund to be purchased may
be legally offered and may be terminated or modified at
any time upon 60 days' written notice.
10
<PAGE>
- -------------------------------------------------------------------------------
REDEEMING Subject to any restrictions imposed by your plan, you
SHARES can sell your shares through the plan any day the New
York Stock Exchange is open. For more information about
how to sell shares of the fund through your retirement
plan, including any charges that may be imposed by the
plan, please consult with your employer.
--------------------------------------------------------
By contacting Your plan administrator/trustee must
your plan send a letter of instruction
administrator/ specifying the name of the fund, the
trustee number of shares or dollar amount to
be sold, and, if applicable, your
name and account number. For your
protection, if you redeem more than
$50,000, the signatures of the
registered owners or their legal
representatives must be guaranteed by
a bank, savings association, credit
union, or member firm of a domestic
stock exchange or the National
Association of Securities Dealers,
Inc., that is an eligible guarantor
institution. Your plan
administrator/trustee should verify
with the institution that it is an
eligible guarantor prior to signing.
Additional documentation may be
required to redeem shares from
certain accounts. Notarization by a
Notary Public is not an acceptable
signature guarantee.
--------------------------------------------------------
By Shares may also be redeemed through
contacting an investment dealer; however, you or
an your plan may be charged for this
investment service. SHARES HELD FOR YOU IN AN
dealer INVESTMENT DEALER'S STREET NAME MUST
BE REDEEMED THROUGH THE DEALER.
--------------------------------------------------------
THE PRICE YOU RECEIVE FOR THE SHARES YOU REDEEM IS THE
NET ASSET VALUE NEXT DETERMINED AFTER YOUR ORDER AND ALL
REQUIRED DOCUMENTATION ARE RECEIVED BY THE FUND OR
AMERICAN FUNDS SERVICE COMPANY. (SEE "PURCHASING SHARES--
SHARE PRICE.")
CONTINGENT DEFERRED SALES CHARGE A contingent deferred
sales charge of 1% applies to certain redemptions made
within the first year on investments of $1 million or
more and on any investment made with no initial sales
charge by any employer-sponsored 403(b) plan or defined
contribution plan qualified under Section 401(a) of the
Internal Revenue Code including a "401(k)" plan with 200
or more eligible employees. The charge is 1% of the
lesser of the value of the shares redeemed (exclusive of
reinvested dividends and capital gain distributions) or
the total cost of such shares. Shares held for the
longest period are assumed to be redeemed first for
purposes of calculating this charge. The charge is waived
for exchanges (except if shares acquired by exchange were
then redeemed within 12 months of the initial purchase);
for distributions from qualified retirement plans and
other employee benefit plans; for redemptions resulting
from participant-directed switches among investment
options within a participant-directed employer-sponsored
retirement plan; and for redemptions in connection with
loans made by qualified retirement plans.
11
<PAGE>
- -------------------------------------------------------------------------------
OTHER IMPORTANT THINGS TO REMEMBER The net asset value
for redemptions is determined as indicated under
"Purchasing Shares--Share Price." Because the fund's
net asset value fluctuates, reflecting the market value
of the portfolio, the amount you receive for shares
redeemed may be more or less than the amount paid for
them.
Redemption proceeds will not be mailed until sufficient
time has passed to provide reasonable assurance that
checks or drafts (including certified or cashier's
checks) for shares purchased have cleared (which may
take up to 15 calendar days from the purchase date).
Except for delays relating to clearance of checks for
share purchases or in extraordinary circumstances (and
as permissible under the Investment Company Act of
1940), redemption proceeds will be paid on or before
the seventh day following receipt of a proper
redemption request.
[LOGO OF This prospectus has been printed on
RECYCLED recycled paper that meets the
PAPER] guidelines of the United States
Environmental Protection Agency
--------------------------------------------------------
THIS PROSPECTUS RELATES ONLY TO SHARES OF THE FUND
OFFERED WITHOUT A SALES CHARGE TO ELIGIBLE RETIREMENT
PLANS. FOR A PROSPECTUS REGARDING SHARES OF THE FUND
TO BE ACQUIRED OTHERWISE, CONTACT THE SECRETARY OF
THE FUND AT THE ADDRESS INDICATED ON THE FRONT.
--------------------------------------------------------
12
<PAGE>
American
Mutual
FundR
December 29, 1995
AMERICAN MUTUAL FUND(r)
Profile
333 South Hope Street December 29, 1995
Los Angeles, CA 90071
1. Goal
The fund strives for the balanced accomplishment of three objectives - current
income, capital growth and conservation of principal through investments in
stock of companies that are likely to participate in the growth of the American
economy.
2. Investment Strategies
The fund's assets are normally invested primarily in common stocks and
nonconvertible preferred stocks. However, the fund may also hold other types
of securities, such as bonds, when appropriate.
3. Risks
Stock prices rise and fall.
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, capital growth, and
conservation of principal, 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 and
distributions and are not charged directly to shareholder accounts.
Shareholder Transaction Expenses
<TABLE>
<CAPTION>
<S> <C>
Maximum sales charge
on purchases
(as a percentage of offering price) 5.75%
*
</TABLE>
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.
Annual Fund Operating Expenses
(as a percentage of average net assets)
<TABLE>
<CAPTION>
<S> <C>
Management fees 0.30%
12b-1 expenses 0.19%
Other expenses 0.10%
Total fund operating expenses 0.59%
</TABLE>
Example
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.
<TABLE>
<CAPTION>
<S> <C>
One year $63
Three years 75
Five years 89
Ten years 127
</TABLE>
6. Past Results
Here are the fund's annual total returns for each of the 10 calendar years:
[CHART]
<TABLE>
<CAPTION>
<S> <C>
1985 30.6%
1986 18.5%
1987 4.4%
1988 12.8%
1989 25.3%
1990 -1.6%
1991 21.7%
1992 7.8%
1993 14.3%
1994 .3%
</TABLE>
[END CHART]
Sales charges have not been deducted from results shown above.
The fund's average annual total return* is +12.85% over its lifetime (February
21, 1950 through September 30, 1995). PAST RESULTS ARE NOT A GUARANTEE OF
FUTURE RESULTS.
<TABLE>
<CAPTION>
<S> <C>
Average Annual
Total Returns*
One year +15.50%
Five years +13.40%
Ten years +13.29%
30-Day Yield*
3.33%
</TABLE>
* These results were calculated for periods ended September 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 $250.
9. Redemptions
You may redeem shares at no cost at any time through your investment dealer or
by calling American FundsLineR at 800/325-3590. (You will need the fund's
number - 03 - 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. Income distributions
are usually made in April, July, October and December. 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 FundsLineR. If
you purchase shares at net asset value through a retirement plan, some or all
of the services or features described may not be available. Contact your
employer for details.
THIS PROFILE CONTAINS KEY INFORMATION ABOUT THE FUND. MORE DETAILS APPEAR IN
THE FUND'S ACCOMPANYING PROSPECTUS.
This profile has been printed on recycled
paper that meets the guidelines of the United
States Environmental Protection Agency.
<PAGE>
AMERICAN MUTUAL FUND, INC.
PART B
STATEMENT OF ADDITIONAL INFORMATION
DECEMBER 29, 1995
This document is not a prospectus but should be read in conjunction
with the current Prospectus of American Mutual Fund, Inc. (the fund or AMF)
dated December 29, 1995. The Prospectus may be obtained from your investment
dealer or financial planner or by writing to the fund at the following
address:
AMERICAN MUTUAL FUND, INC.
Attention: Secretary
333 South Hope Street
Los Angeles, CA 90071
(213) 486-9200
The fund has two forms of prospectuses. Each reference to the prospectus
in this Statement of Additional Information includes both of the fund's
prospectuses. Shareholders who purchase shares at net asset value through
eligible retirement plans should note that not all of the services or features
described below may be available to them, and they should contact their
employer for details.
TABLE OF CONTENTS
ITEM PAGE NO.
INVESTMENT POLICIES 1
DESCRIPTION OF CERTAIN SECURITIES 2
INVESTMENT RESTRICTIONS 3
FUND DIRECTORS AND OFFICERS 5
MANAGEMENT 9
DIVIDENDS, DISTRIBUTIONS AND FEDERAL TAXES 11
PURCHASE OF SHARES 13
SHAREHOLDER ACCOUNT SERVICES AND PRIVILEGES 14
HOW TO REDEEM SHARES 15
EXECUTION OF PORTFOLIO TRANSACTIONS 15
GENERAL INFORMATION 16
INVESTMENT RESULTS 17
FINANCIAL STATEMENTS ATTACHED
INVESTMENT POLICIES
The fund will invest primarily in equity-type securities of companies
that are likely to participate in the growth of the American economy; however,
the fund is not restricted with regard to the percentage of its portfolio which
may be placed in any particular type of investment. The economic outlook of
Capital Research and Management Company (the Investment Adviser) and the
fundamental and relative attractiveness of individual securities will determine
the fund's relative investment in cash and cash equivalents, bonds, preferred
stocks, common stocks and obligations of the U.S. Government, or its agencies
or instrumentalities.
FIXED-INCOME SECURITIES -- The fund may invest in intermediate- and long-term
debt securities. If market interest rates increase, such fixed-income
securities generally decline in value and vice versa. If the currency in which
the security is denominated declines against the U.S. dollar, the dollar value
of the security will decline and vice versa.
DESCRIPTION OF CERTAIN SECURITIES
BOND RATINGS - The fund may invest in debt securities which are rated in the
top three quality categories by Standard & Poor's Corporation or Moody's
Investors Service, Inc. or determined to be equivalent quality by the
Investment Adviser. The top three rating categories for Standard & Poor's and
Moody's are described below:
STANDARD & POOR'S CORPORATION:
"Debt rated 'AAA' has the highest rating assigned by Standard & Poor's.
Capacity to pay interest and repay principal is extremely strong."
"Debt rated 'AA' has a very strong capacity to pay interest and repay principal
and differs from the higher rated issues only in small degree."
"Debt rated 'A' has a strong capacity to pay interest and repay principal,
although they are somewhat more susceptible to the adverse effects of change in
circumstances and economic conditions, than debt in higher categories."
MOODY'S INVESTORS SERVICE, INC.:
"Bonds rated Aaa are judged to be of the best quality. They carry the smallest
degree of investment risk and are generally referred to as 'gilt edge.'
Interest payments are protected by a large or by an exceptionally stable
margin, and principal is secure. While the various protective elements are
likely to change, such changes as can be visualized are most unlikely to impair
the fundamentally strong position of such issues."
"Bonds rated Aa are judged to be of high quality by all standards. Together
with the Aaa group, they comprise what are generally known as high-grade bonds.
They are rated lower than the best bonds because margins of protection may not
be as large as in Aaa securities, or fluctuation of protective elements may be
of greater amplitude, or there may be other elements present which make the
long-term risks appear somewhat larger than the Aaa securities."
"Bonds rated A are judged to be of upper medium grade obligations. These bonds
possess many favorable investment attributes. Factors giving security to
principal and interest are considered adequate, but elements may be present
which suggest a susceptibility to impairment sometime in the future."
U.S. GOVERNMENT SECURITIES - Securities guaranteed by the U.S. Government
include: (1) direct obligations of the U.S. Treasury (such as Treasury bills,
notes and bonds) and (2) federal agency obligations guaranteed as to principal
and interest by the U.S. Treasury. In these securities, the payment of
principal and interest is unconditionally guaranteed by the U.S. Government,
and thus they are of the highest possible credit quality. Such securities are
subject to variations in market value due to fluctuations in interest rates,
but, if held to maturity, will be paid in full.
Securities issued by U.S. Government instrumentalities and certain federal
agencies are neither direct obligations of, nor guaranteed by, the Treasury.
However, they generally involve federal sponsorship in one way or another; some
are backed by specific types of collateral; some are supported by the issuer's
right to borrow from the Treasury; some are supported by the discretionary
authority of the Treasury to purchase certain obligations of the issuer; others
are supported only by the credit of the issuing government agency or
instrumentality. These agencies and instrumentalities include, but are not
limited to, Federal Land Banks, Farmers Home Administration, Central Bank
Cooperatives, and Federal Intermediate Credit Banks.
CASH EQUIVALENTS - These securities include: (1) commercial paper (short-term
notes up to 9 months in maturity issued by corporations or governmental
bodies); (2) commercial bank obligations such as certificates of deposit
(interest-bearing time deposits), bankers' acceptances (time drafts on a
commercial bank where the bank accepts an irrevocable obligation to pay at
maturity), and documented discount notes (corporate promissory discount notes
accompanied by a commercial bank guarantee to pay at maturity); (3) savings
association obligations (certificates of deposit issued by mutual savings banks
or savings and loan associations); (4) securities of the U.S. Government, its
agencies or instrumentalities that mature, or may be redeemed, in one year or
less; and (5) corporate bonds and notes that mature, or that may be redeemed,
in one year or less.
INVESTMENT RESTRICTIONS
The fund has adopted certain investment restrictions, which cannot be
changed without approval by a majority of its outstanding shares. Such
majority is defined within the Investment Company Act of 1940 (the 1940 Act) as
the vote of the lesser of (i) 67% or more of the outstanding voting securities
present at a meeting, if the holders of more than 50% of the outstanding voting
securities are present in person or by proxy, or (ii) more than 50% of the
outstanding voting securities.
These restrictions provide that the fund shall make no investment:
1. Which involves promotion or business management by the fund;
2. In any security about which information is not available with respect to
the history, management, assets, earnings, and income of the issuer;
3. If the investment would cause more than 5% of the value of the assets of
the fund, as they exist at the time of investment, to be invested in the
securities of any one issuer;
4. If the investment would cause more than 20% of the value of the assets of
the fund to be invested in securities of companies in any one industry;
5. If the investment would cause the fund to own more than 10% of any class of
securities of any one issuer or more than 10% of the outstanding voting
securities of any one issuer;
6. In any security which has not been placed on the fund's "Eligible List"
(See Prospectus).
The foregoing restrictions do not apply to the purchase of securities
issued or fully guaranteed by the U.S. government. Such restrictions also do
not apply to the acquisition of securities or property in satisfaction of
claims or as distributions on securities owned, or to the exercise of rights
distributed on securities owned; but if any securities or property so acquired
would not be permitted as an investment under the foregoing restrictions, they
must be converted into a permissible investment as soon as reasonably
practicable.
The fund is not permitted to:
7. Invest in real estate;
8. Make any investment which would subject it to unlimited liability;
9. Buy securities on margin;
10. Sell securities short; nor
11. Borrow money.
The fund does not concentrate investments in one industry or group of
industries, invest in commodities, or make loans except in the very occasional
instance where interest returns on a loan are particularly favorable, the loan
is secured by at least 150% of marketable securities, the total loans
outstanding would not exceed 20% of the current market value of the assets of
the fund, and total loans to any one borrower would not exceed 5% of the value
of such assets. No loans have ever been made to any person under the foregoing
authority. Loans may not be made to persons affiliated with the fund. The
fund does not invest to control other companies. While the fundamental
policies of the fund permit it to act as underwriter of securities issued by
others, it is not the practice of the fund to do so. The fundamental policies
set forth in this paragraph also may not be changed without shareholder
approval.
Further investment policies of the fund, which may be changed by action of
the Board of Directors, without shareholder approval, include the following:
the fund will not purchase or retain the securities of any issuer if those
officers and directors of the fund or the Investment Adviser who own
beneficially more than 1/2 of 1% of such issuer together own more than 5% of
the securities of such issuer; the fund will not invest in the securities of
other investment companies (except in connection with the administration of a
deferred compensation plan adopted by Directors and to the extent such
investments are allowed by an exemptive order granted by the Securities and
Exchange Commission); the fund will not invest in securities of companies
which, with their predecessors, have a record of less than three years'
continuous operations; the fund will not ordinarily purchase securities which
are non-income-producing at the time of purchase; the fund will not invest in
puts, calls, straddles, spreads or any combination thereof; the fund will not
purchase partnership interests in oil, gas, or mineral exploration, drilling or
mining ventures; nor will the fund invest more than 5% of the value of the
fund's net assets in warrants, valued at the lower of cost or market, with no
more than 2% being unlisted on the New York or American Stock Exchanges
(warrants acquired by the fund in units or attached to securities may be deemed
to be without value); nor invest more than 15% of the value of its total assets
in securities which are not readily marketable (including repurchase agreements
maturing in more than seven days or securities for which there is no active and
substantial market).
FUND DIRECTORS AND OFFICERS
DIRECTORS AND DIRECTOR COMPENSATION
<TABLE>
<CAPTION>
NAME, ADDRESS AND AGE POSITION WITH PRINCIPAL OCCUPATION(S) DURING AGGREGATE COMPENSATION TOTAL COMPENSATION TOTAL
NUMBER
REGISTRANT PAST 5 YEARS (POSITIONS WITHIN THE (INCLUDING VOLUNTARILY FROM ALL FUNDS MANAGED OF
FUND BOARDS
ORGANIZATIONS LISTED MAY HAVE DEFERRED COMPENSATION/1/) BY CAPITAL RESEARCH AND ON
WHICH
CHANGED DURING THIS PERIOD) FROM MANAGE-MENT COMPANY DIRECTOR
THE FUND DURING FISCAL FOR THE YEAR ENDED SERVES/2/
YEAR ENDED 10/31/95 10/31/95/2/
<S> <C> <C> <C> <C> <C>
+H. Frederick Christie Director Private Investor; former President and $22,858/3/ $138,750/3/ 18
P.O. Box 144 Chief Executive Officer, The Mission
Palos Verdes Estates, CA 90274 Group (non-utility holding company,
Age: 62 subsidiary of Southern California Edison
Company)
E. H. Clark, Jr. Director Chairman of the Board and Chief $24,000 $24,000 1
West Tower Executive
5000 Birch Street, Suite 3000 Officer, The Friendship Group (an
Newport Beach, CA 92660 investment partnership); former
Age: 69 Chairman
of the Board, Baker Hughes Inc.;
former
Chairman of the Board, Baker
International
Corporation
Mary Anne Dolan Director Founder and President, M.A.D., Inc. $23,800 $23,800 1
1033 Gayley Avenue, Suite 205 (a communications company)
Los Angeles, CA 90024
Age: 48
++James K. Dunton President and Senior Vice President and Director, none/4/ none/4/ 1
333 South Hope Street Director Capital
Los Angeles, CA 90071 Research and Management Company
Age: 57
Martin Fenton, Jr. Director Chairman, Senior Resource Group $24,070 $103,650 16
8070 La Jolla Shores (management of senior living centers)
P.O. Box 446
La Jolla, CA 92037
Age: 60
E. Eric Johnson Director Chairman, TBG Financial; former $23,800/3/ $23,800/3/ 1
2029 Century Park East #3720 Chairman, Johnson & Higgins of
Los Angeles, CA 90067 California
Age: 68
Mary Myers Kauppila Director Founder and President, Energy $24,250/3/ $76,300/3/ 4
One Winthrop Square Investment,
Boston, MA 02210 Inc.
Age: 41
++Jon B. Lovelace, Jr. Chairman of Vice Chairman of the Board and none/4/ none/4/ 4
333 South Hope Street the Board Chairman
Los Angeles, CA 90071 of the Executive Committee, Capital
Age: 68 Research and Management Company
++James W. Ratzlaff Vice Senior Partner, The Capital Group none/4/ none/4/ 6
P.O. Box 7650 Chairman of Partners,
San Francisco, CA 94120 the Board L.P.
Age: 59
Olin C. Robison Director President of the Salzburg Seminar; $23,300 $72,800 2
The Marble Works Professor and former President,
Middlebury, VT 05753 Middlebury
Age: 59 College
</TABLE>
+ May be deemed an "interested person" of the fund due to membership on the
board of directors of the parent company of a registered broker-dealer.
++ Directors who are considered "interested persons" as defined in the
Investment Company Act of 1940, as amended (the "1940 Act"), on the basis of
their affiliation with the fund's Investment Adviser, Capital Research and
Management Company.
/1/ Amounts may be deferred by eligible Directors under a non-qualified
deferred compensation plan adopted by each fund in 1994. Deferred amounts
accumulate at an earnings rate determined by the total return of one or more
funds in The American Funds Group as designated by the Director.
/2/ Capital Research and Management Company manages The American Funds Group
consisting of 28 funds: AMCAP Fund, Inc., American Balanced Fund, Inc.,
American High-Income Municipal Bond Fund, Inc., American High-Income Trust,
American Mutual Fund, Inc., The Bond Fund of America, Inc., The Cash Management
Trust of America, Capital Income Builder, Inc., Capital World Growth and Income
Fund, Inc., Capital World Bond Fund, Inc., EuroPacific Growth Fund, Fundamental
Investors, Inc., The Growth Fund of America, Inc., The Income Fund of America,
Inc., Intermediate Bond Fund of America, The Investment Company of America,
Limited Term Tax-Exempt Bond Fund of America, The New Economy Fund, New
Perspective Fund, Inc., SMALLCAP World Fund, Inc., The Tax-Exempt Bond Fund of
America, Inc., The Tax-Exempt Fund of California, The Tax-Exempt Fund of
Maryland, The Tax-Exempt Fund of Virginia, The Tax-Exempt Money Fund of
America, The U. S. Treasury Money Fund of America, U.S. Government Securities
Fund and Washington Mutual Investors Fund, Inc. Capital Research and
Management Company also manages American Variable Insurance Series and Anchor
Pathway Fund which serve as the underlying investment vehicle for certain
variable insurance contracts; and Bond Portfolio for Endowments, Inc. and
Endowments, Inc. whose shares may be owned only by tax-exempt organizations.
/3/ Since the plan's adoption, the total amount of deferred compensation
accrued by the fund (plus earnings thereon) for participating Directors is as
follows: H. Frederick Christie ($15,735), E. Eric Johnson ($45,102) and Mary
Myers Kauppila ($47,788). Amounts deferred and accumulated earnings thereon
are not funded and are general unsecured liabilities of the fund until paid to
the Director.
/4/ James K. Dunton, Jon B. Lovelace, Jr. and James W. Ratzlaff are affiliated
with the Investment Adviser and, accordingly, receive no compensation from the
fund.
OFFICERS
JON B. LOVELACE, JR., Chairman of the Board (see above).
JAMES W. RATZLAFF, Vice Chairman of the Board (see above).
JAMES K. DUNTON, President (see above)
ROBERT G. O'DONNELL, Executive Vice President. P.O. Box 7650, San Francisco,
CA 94120.
Senior Vice President and Director, Capital Research and Management Company.
* TIMOTHY D. ARMOUR, Vice President.
Executive Vice President, Capital Research Company.
* JOYCE E. GORDON, Vice President.
Vice President, Capital Research Company.
* VINCENT P. CORTI, Secretary.
Vice President - Fund Business Management Group, Capital Research and
Management Company.
** STEVEN N. KEARSLEY, Treasurer.
Vice President and Treasurer, Capital Research and Management Company;
Director, American Funds Service Company.
** MARY C. CREMIN, Assistant Treasurer.
Senior Vice President - Fund Business Management Group, Capital Research and
Management Company.
** R. MARCIA GOULD, Assistant Treasurer.
Vice President - Fund Business Management Group, Capital Research and
Management Company.
________________________
# Positions within the organizations listed may have changed during this
period.
* Address is 333 South Hope Street, Los Angeles, CA 90071.
** Address is 135 South State College Boulevard, Brea, CA 92621.
All of the Officers listed are officers or employees of the Investment
Adviser or affiliated companies. No compensation is paid by the fund to any
Officer or Director who is a director or officer of the Investment Adviser or
affiliated companies. Each unaffiliated Director is paid a fee of $12,000 per
annum, plus $1,500 for each Board of Directors meeting attended, plus $600 for
each meeting attended as a member of a committee of the Board of Directors.
The Directors may elect, on a voluntary basis, to defer all or a portion of
these fees through a deferred compensation plan in effect for the fund. The
fund also reimburses certain expenses of the Directors who are not affiliated
with the Investment Adviser. The total compensation paid by the fund to
unaffiliated Directors for the fiscal year ended October 31, 1995 was $186,000.
As of December 1, 1995 the Officers, Directors and their families, as a group,
owned beneficially or of record less than 1% of the outstanding shares.
MANAGEMENT
INVESTMENT ADVISER - The Investment Adviser, founded in 1931, maintains
research facilities in the U.S. and abroad, with a staff of professionals, many
of whom have a number of years of investment experience. The Investment
Adviser's professionals travel several million miles a year, making more than
5,000 research visits in more than 50 countries around the world. The
Investment Adviser believes that it is able to attract and retain quality
personnel.
An affiliate of the Investment Adviser compiles indices for major stock
markets around the world and compiles and edits the Morgan Stanley Capital
International Perspective, providing financial and market information about
more than 2,400 companies around the world.
The Investment Adviser is responsible for more than $100 billion of
stocks, bonds and money market instruments and serves over five million
investors of all types. These investors include privately owned businesses and
large corporations as well as schools, colleges, foundations and other
non-profit and tax-exempt organizations.
INVESTMENT ADVISORY AND SERVICE AGREEMENT - The Investment Advisory and
Service Agreement (the Agreement) between the fund and the Investment Adviser
may be renewed annually, provided that any such renewal has been specifically
approved by (i) the Board of Directors, or by the vote of a majority (as
defined in the 1940 Act) of the outstanding voting securities, and (ii) the
vote of a majority of Directors who are not parties to the Agreement or
interested persons (as defined in the 1940 Act) of any such party, cast in
person, at a meeting called for the purpose of voting on such approval. The
Agreement provides that the Investment Adviser has no liability to the fund for
its acts or omissions in performance of its obligations to the fund not
involving willful misconduct, bad faith, gross negligence or reckless disregard
of its obligations under the Agreement. The Agreement also provides that
either party has the right to terminate it without penalty, upon 60 days'
written notice to the other party and that the Agreement automatically
terminates in the event of its assignment (as defined in the 1940 Act).
The Investment Adviser, in addition to providing investment advisory
services, furnishes the services and pays the compensation and travel expenses
of persons to perform the executive, administrative, clerical, and bookkeeping
functions of the fund, provides suitable office space and utilities, necessary
office equipment and general purpose accounting forms, supplies and postage
used at the office of the fund. The fund pays all expenses not expressly
assumed by the Investment Adviser, including, but not limited to, fees and
expenses of the transfer agent, dividend disbursing agent, legal counsel,
independent accountant and custodian, including charges of such custodian for
the preparation and maintenance of the books of account and records of the
fund, cost of designing, printing and mailing reports, prospectuses, proxy
statements and notices to shareholders; fees and expenses of registration,
qualification and issuance of fund shares; expenses pursuant to the fund's Plan
of Distribution (described below); association dues; interest; taxes; and
compensation of Directors who are not affiliated persons of the Investment
Adviser.
As compensation for its services, the Investment Adviser receives a
monthly fee which is accrued daily, calculated at the annual rate of 0.384% on
the first $1 billion of net assets, plus 0.33% on net assets from $1 billion to
$2 billion, plus 0.294% on net assets from $2 billion to $3 billion, plus 0.27%
on net assets from $3 billion to $5 billion., plus 0.252% on net assets from $5
billion to $8 billion, plus 0.24% on net assets over $8 billion. In connection
with the approval of the Agreement by the fund's Board of Directors, the
Investment Adviser has agreed to waive any fees to the extent they would exceed
those payable under the rate structure contained in the previous agreement.
The fee structure referenced above is lower than that in the previous agreement
except in the event that the fund's net assets were to fall below $3 billion.
The Agreement provides that the Investment Adviser shall pay the fund the
amount by which expenses, with the exception of taxes and expenses, if any, as
may be incurred in connection with any merger, reorganization, or
recapitalization, exceed the sum of 1% of the first $25 million of the monthly
average of total assets of the fund for the year and 3/4 of 1% of such average
in excess of $25 million. Only one state (California) continues to impose
expense limitations on funds registered for sale therein. The California
provision currently limits annual expenses to the sum of 2-1/2% of the first
$30 million of average net assets, 2% of the next $70 million and 1-1/2% of the
remaining average net assets. Rule 12b-1 distribution plan expenses would be
excluded from this limit. Expenses which are not subject to this limitation
are interest, taxes, and extraordinary items such as litigation. Expenditures,
including costs incurred in connection with the purchase or sale of portfolio
securities, which are capitalized in accordance with generally accepted
accounting principles applicable to investment companies, are accounted for as
capital items and not as expenses.
During the fiscal years ended October 31, 1995, 1994, and 1993, the
Investment Adviser's total fees amounted to $17,788,000, $16,241,000 and
$15,673,000, respectively.
PRINCIPAL UNDERWRITER - American Funds Distributors, Inc. (the Principal
Underwriter) is the principal underwriter of the fund's shares. The fund has
adopted a Plan of Distribution (the Plan), pursuant to rule 12b-1 under the
1940 Act, (see "Fund Organization and Management - Principal Underwriter" in
the Prospectus). The Principal Underwriter receives amounts payable pursuant
to the Plan (see below) and commissions consisting of that portion of the sales
charge remaining after the discounts which it allows to investment dealers.
Commissions retained by the Principal Underwriter on sales of fund shares for
the fiscal year ended October 31, 1995 amounted to $2,831,000, after allowance
of $14,181,000 to dealers. During the fiscal years ended October 31, 1994 and
1993 the Principal Underwriter retained $2,877,000 and $2,586,000,
respectively.
As required by rule 12b-1, the Plan (together with the Principal
Underwriting Agreement) has been approved by a majority of the entire Board of
Directors and separately by a majority of the Directors who are not interested
persons of the fund and who have no direct or indirect financial interest in
the operation of the Plan or the Principal Underwriting Agreement, and the Plan
has been approved by the vote of a majority of the outstanding voting
securities of the fund. The Officers and Directors who are "interested
persons" of the fund may be considered to have a direct or indirect financial
interest in the operation of the Plan due to present or past affiliations with
the Investment Adviser and related companies. Potential benefits of the Plan
to the fund include improved shareholder services, savings to the fund in
transfer agency costs, savings to the fund in advisory fees and other expenses,
benefits to the investment process from growth or stability of assets and
maintenance of a financially healthy management organization. The selection
and nomination of Directors who are not "interested persons" of the fund are
committed to the discretion of the Directors who are not "interested persons"
during the existence of the Plan. The Plan is reviewed quarterly and must be
approved annually by the Board of Directors.
Under the Plan, the fund may expend up to 0.25% of its average net
assets annually to finance any activity which is primarily intended to result
in the sale of fund shares, provided the fund's Board of Directors has approved
the category of expenses for which payment is being made. These include
service fees for qualified dealers and dealer commissions and wholesaler
compensation on sales of shares exceeding $1 million (including purchases by
any employer-sponsored 403(b) plan or purchases by any defined contribution
plan qualified under Section 401(a) of the Internal Revenue Code including a
401(k) plan with 200 or more eligible employees). Only expenses incurred
during the preceding 12 months and accrued while the Plan is in effect may be
paid by the fund. During the fiscal year ended October 31, 1995, the fund paid
or accrued $11,107,000 under the Plan as compensation to dealers.
The Glass-Steagall and other applicable laws, among other things,
generally prohibit commercial banks from engaging in the business of
underwriting, selling or distributing securities, but permit banks to make
shares of mutual funds available to their customers and to perform
administrative and shareholder servicing functions. However, judicial or
administrative decisions or interpretations of such laws, as well as changes in
either federal or state statutes or regulations relating to the permissible
activities of banks or their subsidiaries or affiliates, could prevent a bank
from continuing to perform all or a part of its servicing activities. If a
bank were prohibited from so acting, shareholder clients of such bank would be
permitted to remain shareholders of the fund and alternate means for continuing
the servicing of such shareholders would be sought. In such event, changes in
the operation of the fund might occur and shareholders serviced by such bank
might no longer be able to avail themselves of any automatic investment or
other services then being provided by such bank. It is not expected that
shareholders would suffer adverse financial consequences as a result of any of
these occurrences.
In addition, state securities laws on this issue may differ from the
interpretations of federal law expressed herein and certain banks and financial
institutions may be required to be registered as dealers pursuant to state law.
DIVIDENDS, DISTRIBUTIONS AND FEDERAL TAXES
The fund intends to meet all the requirements and has elected the tax
status of a "regulated investment company" under the provisions of Subchapter M
of the Internal Revenue Code of 1986, (the Code). Under Subchapter M, if the
fund distributes within specified times at least 90% of its investment company
taxable income it will be taxed only on that portion of such investment company
taxable income which it retains.
To qualify, the fund must (a) derive at least 90% of its gross income from
dividends, interest, certain payments with respect to securities loans and
gains from the sale or other disposition of stock, securities, currencies or
other income derived with respect to its business of investing in such stock,
securities or currencies; (b) derive less than 30% of its gross income from the
gains or sale or other disposition of stock or securities held less than three
months; and (c) diversify its holdings so that, at the end of each fiscal
quarter, (i) at least 50% of the market value of the fund's assets is
represented by cash, cash items, U.S. Government securities, securities of
other regulated investment companies and other securities, but such other
securities must be limited, in respect of any one issuer, to an amount not
greater than 5% of the fund's assets and 10% of the outstanding voting
securities of such issuer, and (ii) not more than 25% of the value of its
assets is invested in the securities of any one issuer (other than U.S.
Government securities or the securities of other regulated investment
companies), or in two or more issuers which the fund controls and which are
engaged in the same or similar trades or businesses or related trades or
businesses.
Under the Code, a nondeductible excise tax of 4% is imposed on the excess
of a regulated investment company's "required distribution" for the calendar
year ending within the regulated investment company's taxable year over the
"distributed amount" for such calendar year. The term "required distribution"
means the sum of (i) 98% of ordinary income (generally net investment income)
for the calendar year, (ii) 98% of capital gains (both long-term and
short-term) for the one-year period ending on October 31 (as though the
one-year period ending on October 31 were the regulated investment company's
taxable year), and (iii) the sum of any untaxed, undistributed net investment
income and net capital gains of the regulated investment company for prior
periods. The term "distributed amount" generally means the sum of (i) amounts
actually distributed by the fund from its current year's ordinary income and
capital gain net income and (ii) any amount on which the fund pays income tax
for the year. The fund intends, to the extent practicable, to meet these
distribution requirements to minimize or avoid the excise tax liability.
The fund also intends to continue distributing to shareholders all of the
excess of net long-term capital gain over net short-term capital loss on sales
of securities. If the net asset value of shares of the fund should, by reason
of a distribution of realized capital gains, be reduced below a shareholder's
cost, such distribution would to that extent be a return of capital to that
shareholder even though taxable to the shareholder, and a sale of shares by a
shareholder at net asset value at that time would establish a capital loss for
federal tax purposes.
Dividends generally are taxable to shareholders at the time they are paid.
However, dividends declared in October, November and December and made payable
to shareholders of record in such a month are treated as paid and are thereby
taxable as of December 31, provided that the fund pays the dividend no later
than the end of January of the following year.
If a shareholder exchanges or otherwise disposes of shares of the fund
within 90 days of having acquired such shares, and if, as a result of having
acquired those shares, the shareholder subsequently pays a reduced sales charge
for shares of the fund, or of a different fund, the sales charge previously
incurred in acquiring the fund's shares shall not be taken into account (to the
extent such previous sales charges do not exceed the reduction in sales
charges) for the purpose of determining the amount of gain or loss on the
exchange, but will be treated as having been incurred in the acquisition of
such other shares. Also, any loss realized on a redemption or exchange of
shares of a fund will be disallowed to the extent substantially identical
shares are reacquired within the 61-day period beginning 30 days before and
ending 30 days after the shares are disposed of.
Under the Code, distributions of net investment income by the fund to
a shareholder who, as to the U.S., is a nonresident alien individual,
nonresident alien fiduciary of a trust or estate, non-U.S. corporation or
non-U.S. partnership (a non-U.S. shareholder) will be subject to U.S.
withholding tax (at a rate of 30% or lower treaty rate). Withholding will not
apply if a dividend paid by the fund to a non-U.S. shareholder is "effectively
connected" with a U.S. trade or business, in which case the reporting and
withholding requirements applicable to U.S. citizens, U.S. residents, or
domestic corporations will apply. However, if the distribution is effectively
connected with the conduct of the non-U.S. shareholder's trade or business
within the U.S. , the distribution would be included in the net income of the
shareholder and subject to U.S. income tax at the applicable marginal rate.
Distributions of capital gains not effectively connected with a U.S. trade or
business are not subject to tax withholding, but if the non-U.S. shareholder is
an individual who is physically present in the U.S. for more than 182 days
during the taxable year and such shareholder is nonetheless treated as a
nonresident alien, the distributions would be subject to a 30% tax rate.
As of the date of this statement of additional information, the
maximum federal individual stated tax rate applicable to ordinary income is
39.6% (effective tax rates may be higher for some individuals due to phase out
of exemptions and elimination of deductions); the maximum individual tax rate
applicable to net capital gain is 28%; and the maximum corporate tax applicable
to ordinary income and net capital gain is 35%. However, to eliminate the
benefit of lower marginal corporate income tax rates, corporations which have
income in excess of $100,000 for a taxable year will be required to pay an
additional income tax liability up to $11,750 and corporations which have
taxable income in excess of $15,000,000 for a taxable year will be required to
pay an additional amount of tax of up to $100,000. Naturally, the amount of
tax payable by a taxpayer will be affected by a combination of tax law rules
covering, e.g., deductions, credits, deferrals, exemptions, sources of income
and other matters. Under the Code, an individual is entitled to establish an
IRA each year (prior to the tax return filing deadline for that year) whereby
earnings on investments are tax-deferred. In addition, in some cases, the IRA
contribution itself may be deductible.
The foregoing is limited to a summary of federal taxation and should not
be viewed as a comprehensive discussion of all provisions of the Code relevant
to investors. Dividends and capital gains distributions may also be subject to
state or local taxes. Shareholders should consult their own tax advisers for
additional details as to their particular tax status.
PURCHASE OF SHARES
PRICE OF SHARES - Purchases of shares are made at the offering price next
determined after the purchase order is received by the fund or American Funds
Service Company (the Transfer Agent); this offering price is effective for
orders received prior to the time of determination of the net asset value and,
in the case of orders placed with dealers, accepted by the Principal
Underwriter prior to its close of business. The dealer is responsible for
promptly transmitting purchase orders to the Principal Underwriter. Orders
received by the investment dealer, the Transfer Agent, or the fund after the
time of the determination of the net asset value will be entered at the next
calculated offering price. The prices which appear in the newspaper are not
always indicative of prices at which you will be purchasing and redeeming
shares of the fund, since such prices generally reflect the previous day's
closing price whereas purchases and redemptions are made at the next calculated
price.
The price you pay for shares, the public offering price, is based on
the net asset value per share which is calculated once daily at the close of
trading (currently 4:00 p.m., New York time) each day the New York Stock
Exchange is open as set forth below. The New York Stock Exchange is currently
closed on weekends and on the following holidays: New Year's Day, President's
Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving and
Christmas Day. The net asset value per share is determined as follows:
1. Securities traded on a national securities exchange (or reported
on the NASDAQ national market) and securities traded in the over-the-counter
market are stated at the last reported sales price on the day of valuation;
other securities, and securities for which no sale was reported on that date,
are stated on the last quoted bid price. Nonconvertible bonds and debentures,
and other long-term debt securities normally are valued at prices obtained for
the day of valuation from a bond pricing service, when such prices are
available; however, in circumstances where the Investment Adviser deems it
appropriate to do so, an over-the-counter or exchange quotation may be used.
U.S. Treasury bills, and other short-term obligations issued or guaranteed by
the U,S. Government, its agencies or instrumentalities, certificates of deposit
issued by banks, corporate short-term notes and other short-term investments
with original or remaining maturities in excess of 60 days are valued at the
mean of representative quoted bid and asked prices for such securities or, if
such prices are not available, for securities of comparable maturity, quality
and type. Short-term securities with 60 days or less to maturity are amortized
to maturity based on their cost to the fund if acquired within 60 days of
maturity or, if already held on the 60th day, based on the value determined on
the 61st day. Other securities are valued on the basis of last sale or bid
prices in what is, in the opinion of the Investment Adviser, the broadest and
most representative market, which may be either a securities exchange or the
over-the-counter market. Where quotations are not readily available,
securities are valued at fair value as determined in good faith by the Board of
Directors. The fair value of all other assets is added to the value of
securities to arrive at the total assets;
2. There are deducted from the total assets, thus determined, the
liabilities, including proper accruals of taxes and other expense items; and
3. The net assets so obtained are then divided by the total number of
shares outstanding, and the result, rounded to the nearer cent, is the net
asset value per share.
Any purchase order may be rejected by the Principal Underwriter or the
fund. The fund will not knowingly sell shares (other than for the reinvestment
of dividends or capital gain distributions) directly or indirectly, or through
a unit investment trust to any other investment company, person or entity,
where, after the sale, such investment company, person or entity would own
beneficially directly, indirectly, or through a unit investment trust more than
3% of the outstanding shares of the fund without the consent of a majority of
the fund's Directors.
STATEMENT OF INTENTION - The reduced sales charges and offering prices set
forth in the Prospectus apply to purchases of $50,000 [$25,000 in the case of
bond funds] or more made within a 13-month period subject to the following
statement of intention (the Statement) terms. The Statement is not a binding
obligation to purchase the indicated amount. When a shareholder elects to
utilize a Statement in order to qualify for a reduced sales charge, shares
equal to 5% of the dollar amount specified in the Statement will be held in
escrow in the shareholder's account out of the initial purchase (or subsequent
purchases, if necessary) by the Transfer Agent. All dividends and any capital
gain distributions on shares held in escrow will be credited to the
shareholder's account in shares (or paid in cash, if requested). If the
intended investment is not completed within the specified 13-month period, the
purchaser will remit to the Principal Underwriter the difference between the
sales charge actually paid and the sales charge which would have been paid if
the total purchases had been made at a single time. If the difference is not
paid within 45 days after written request by the Principal Underwriter or the
investment dealer, the appropriate number of shares will be redeemed to pay
such difference. If the proceeds from this redemption are inadequate, the
purchaser will be liable to the Principal Underwriter for the balance still
outstanding. The Statement may be revised upward at any time during the
13-month period, and such a revision will be treated as a new Statement, except
that the 13-month period during which the purchase must be made will remain
unchanged and there will be no retroactive reduction of the sales charges paid
on prior purchases. Existing holdings eligible for rights of accumulation (see
the prospectus and account application) may be credited toward satisfying the
Statement. During the Statement period reinvested dividends and capital gain
distributions, investments in money market funds, and investments made under a
right of reinstatement will not be creditied toward satisfying the
Statement.
In the case of purchase orders by the trustees of certain retirement
plans by payroll deduction, the sales charge for the investments made during
the 13-month period will be handled as follows: The regular monthly payroll
deduction investment will be multiplied by 13 and then multiplied by 1.5. The
current value of existing American Funds investments (other than money market
fund investments) and any rollovers or transfers reasonably anticipated to be
invested in non-money market American Funds during the 13-month period are
added to the figure determined above. The sum is the Statement amount and
applicable breakpoint level. On the first investment and all other investments
made pursuant to the statement of intention, a sales charge will be assessed
according to the sales charge breakpoint thus determined. There will be no
retroactive adjustments in sales charges on investments previously made during
the 13-month period.
Shareholders purchasing shares at a reduced sales charge under a
Statement indicate their acceptance of these terms with their first
purchase.
DEALER COMMISSIONS - The following commissions will be paid to dealers who
initiate and are responsible for purchases of $1 million or more, for purchases
by any employer-sponsered 403(b) plan or purchases by any defined contribution
plan qualified under Section 401(a) of the Internal Revenue Code including a
401(k) plan with 200 or more eligible employees, and for purchases made at net
asset value by certain retirement plans of organizations with collective
retirement plan assets of $100 million or more: 1.00% on amounts to $2 million,
0.80% on amounts over $2 million to $3 million, 0.50% on amounts over $3
million to $50 million, 0.25% on amounts over $50 million to $100 million, and
0.15% on amounts over $100 million. The level of dealer commissions will be
determined based on sales made over a 12-month period commencing from the date
of the first sale at net asset value. (See "The American Funds Shareholder
Guide" in the fund's prospectus for more information.)
SHAREHOLDER ACCOUNT SERVICES AND PRIVILEGES
AUTOMATIC INVESTMENT PLAN - The automatic investment plan enables
shareholders to make regular monthly or quarterly investments in shares through
automatic charges to their bank accounts. With shareholder authorization and
bank approval, the Transfer Agent will automatically charge the bank account
for the amount specified ($50 minimum), which will be automatically invested in
shares at the offering price on or about the 10th day of the month (or on or
about the 15th day of the month in the case of accounts for retirement plans
for which Capital Guardian Trust Company serves as trustee or custodian). Bank
accounts will be charged on the day or a few days before investments are
credited, depending on the bank's capabilities, and shareholders will receive a
confirmation statement at least quarterly. Participation in the plan will
begin within 30 days after receipt of the account application. If your bank
account cannot be charged due to insufficient funds, a stop-payment order or
closing of your account, the plan may be terminated and the related investment
reversed. The shareholder may change the amount of the investment or
discontinue the plan at any time by writing to the Transfer Agent.
AUTOMATIC WITHDRAWALS - Withdrawal payments are not to be considered as
dividends, yield or income. Automatic investments may not be made into a
shareholder account from which there are automatic withdrawals. Withdrawals of
amounts exceeding reinvested dividends and distributions and increases in share
value would reduce the aggregate value of the shareholder's account. The
Transfer Agent arranges for the redemption by the fund of sufficient shares,
deposited by the shareholder with the Transfer Agent, to provide the withdrawal
payment specified.
CROSS-REINVESTMENT OF DIVIDENDS AND DISTRIBUTIONS - A shareholder in one fund
may elect to cross-reinvest dividends or dividends and capital gain
distributions paid by that fund (the paying fund) into any other fund in The
American Funds Group (the receiving fund) subject to the following conditions:
(i) the aggregate value of the shareholder's account(s) in the paying fund(s)
must equal or exceed $5,000 (this condition is waived if the value of the
account in the receiving fund equals or exceeds that fund's minimum initial
investment requirement), (ii) as long as the value of the account in the
receiving fund is below that fund's minimum initial investment requirement,
dividends and capital gain distributions paid by the receiving fund must be
automatically reinvested in the receiving fund, and (iii) if this privilege is
discontinued with respect to a particular receiving fund, the value of the
account in that fund must equal or exceed the fund's minimum initial investment
requirement or the fund shall have the right, if the shareholder fails to
increase the value of the account to such minimum within 90 days after being
notified of the deficiency, automatically to redeem the account and send the
proceeds to the shareholder. These cross-reinvestments of dividends and
capital gain distributions will be at net asset value (without sales charge).
HOW TO REDEEM SHARES
REDEMPTIONS - The fund's Articles of Incorporation permit the fund to direct
the Transfer Agent to redeem the shares of any shareholder if (a) the shares
owned by such shareholder have a value (determined, for the purpose of this
sentence only, as the greater of the shareholder's cost or the then net asset
value of the shares, including the reinvestment of income dividends and capital
gain distributions, if any) of less than $250, or (b) such shareholder owns
less than ten (10) shares of Capital Stock of the Corporation. Prior notice of
at least 60 days will be given to a shareholder before the involuntary
redemption provision is made effective with respect to the shareholder's
account. The shareholder will have not less than 30 days from the date of such
notice within which to bring the account up to the minimum determined as set
forth above
EXECUTION OF PORTFOLIO TRANSACTIONS
There are occasions on which portfolio transactions for the fund may be
executed as part of concurrent authorizations to purchase or sell the same
security for other funds served by the Investment Adviser, or for trusts or
other accounts served by affiliated companies of the Investment Adviser.
Although such concurrent authorizations potentially could be either
advantageous or disadvantageous to the fund, they are effected only when the
Investment Adviser believes that to do so is in the interest of the fund. When
such concurrent authorizations occur, the objective is to allocate the
executions in an equitable manner.
As of the end of the fund's most recent fiscal year, October 31, 1995,
it held certain equity and debt securities of some of its regular brokers and
dealers or their parents that derive more than 15% of gross revenues from
securities-related activities which included securities of: American Express
Credit Corporation (debt) in the amount of $72,729,000; Ford Motor Company
(equity) in the amount of $77,039,000; Ford Motor Credit Company (debt) in the
amount of $74,748,000; General Electric Company (equity) in the amount of
$84,439,000; General Electric Capital Corporation (debt) in the amount of
$87,048,000; and, J.P. Morgan & Co., Inc. (equity) in the amount of
$34,706,000.
Brokerage commissions paid on portfolio transactions, including dealer
concessions on underwritings, for the fiscal years ended October 31, 1995,
1994, and 1993 amounted to $3,247,000, $2,662,000 and $2,770,000,
respectively.
GENERAL INFORMATION
CUSTODIAN OF ASSETS - Securities and cash owned by the fund, including proceeds
from the sale of shares of the fund and of securities in the fund's portfolio,
are held by The Chase Manhattan Bank, N.A., One Chase Manhattan Plaza, New
York, NY 10081, as Custodian.
INDEPENDENT ACCOUNTANT - Deloitte & Touche LLP, 1000 Wilshire Boulevard, 15th
Floor, Los Angeles, CA 90017, has served as the fund's independent accountant
since its inception, providing audit services, preparation of tax returns and
review of certain documents to be filed with the Securities and Exchange
Commission. The financial statements included in this Statement of Additional
Information have been so included in reliance on the report of Deloitte &
Touche LLP given on the authority of said firm as experts in auditing and
accounting.
REMOVAL OF DIRECTORS BY SHAREHOLDERS - At any meeting of shareholders, duly
called and at which a quorum is present, the shareholders may, by the
affirmative vote of the holders of a majority of the votes entitled to be cast
thereon, remove any director or directors from office and may elect a successor
or successors to fill any resulting vacancies for the unexpired terms of
removed directors. The fund has made an undertaking, at the request of the
staff of the Securities and Exchange Commission, to apply the provisions of
section 16(c) of the 1940 Act with respect to the removal of directors as
though the fund were a common-law trust. Accordingly, the directors of the
fund shall promptly call a meeting of shareholders for the purpose of voting
upon the question of removal of any director when requested in writing to do so
by the record holders of not less than 10% of the outstanding shares.
REPORTS TO SHAREHOLDERS - The fund's fiscal year ends on October 31.
Shareholders are provided at least semi-annually with reports showing the
investment portfolio, financial statements and other information. The fund's
annual financial statements are audited by the fund's independent accountant,
Deloitte & Touche LLP, whose selection is determined annually by the Board of
Directors.
The financial statements including the investment portfolio and the report
of Independent Accountant contained in the Annual Report are included in this
Statement of Additional Information. The following information is not included
in the Annual Report:
DETERMINATION OF NET ASSET VALUE, REDEMPTION PRICE AND
MAXIMUM OFFERING PRICE PER SHARE -- OCTOBER 31, 1995
<TABLE>
<CAPTION>
<S> <C>
Net asset value and redemption price per share
(Net assets divided by shares outstanding) $24.17
Maximum offering price per share (100/94.25 of
net asset value per share, which takes into
account the fund's current maximum sales charge) $25.64
</TABLE>
PERSONAL INVESTING POLICY - Capital Research and Management Company and its
affiliated companies have adopted a personal investing policy consistent with
Investment Company Institute guidelines. This policy includes: a ban on
acquisitions of securities pursuant to an initial public offering; restrictions
on acquisitions of private placement securities; pre-clearance and reporting
requirements; review of duplicate confirmation statements; annual
recertification of compliance with codes of ethics; disclosure of personal
holdings by certain investment personnel prior to recommendation for purchase
for the fund; blackout periods on personal investing for certain investment
personnel; ban on short-term trading profits for investment personnel;
limitations on service as a director of publicly traded companies; and
disclosure of personal securities transactions.
INVESTMENT RESULTS
The fund's yield is 3.36% based on a 30-day (or one month) period
ended October 31, 1995, computed by dividing the net investment income per
share earned during the period by the maximum offering price per share on the
last day of the period, according to the following formula:
YIELD = 2[((a-b)/cd + 1)/6/ -1]
Where: a = dividends and interest earned during the period.
b = expenses accrued for the period (net of reimbursements).
c = the average daily number of shares outstanding during the period that were
entitled to receive dividends.
d = the maximum offering price per share on the last day of the period.
The fund's average annual total return for the one-, five- and
ten-year periods ending on October 31, 1995 was 14.27%, 13.47%, and 12.76%,
respectively. The average annual total return (T) is computed by equating the
value at the end of the period (ending redeemable value or ERV) with a
hypothetical initial investment of $1,000 (P) over a period of years (n)
according to the following formula as required by the Securities and Exchange
Commission: P(1+T)/n/ = ERV.
To calculate total return, an initial investment is divided by the
offering price (which includes the sales charge) as of the first day of the
period in order to determine the initial number of shares purchased. Subsequent
dividends and capital gain distributions are then reinvested at net asset value
on the reinvestment date determined by the Board of Directors. The sum of the
initial shares purchased and shares acquired through reinvestment is multiplied
by the net asset value per share as of the end of the period in order to
determine ending value. The difference between the ending value and the
initial investment divided by the initial investment converted to a percentage
equals total return. The resulting percentage indicates the positive or
negative investment results that an investor would have experienced from
reinvested dividends and capital gain distributions and changes in share price
during the periods. Total return may be calculated for one-, five-, ten-year
and for other periods. The average annual total return over periods greater
than one year may also be computed by utilizing ending values as determined
above.
The following assumptions will be reflected in computations made in
accordance with the formula stated above: (1) deduction of the maximum sales
load of 5.75% from the $1,000 initial investment; (2) reinvestment of dividends
and distributions at net asset value on the reinvestment date determined by the
Board; and (3) a complete redemption at the end of any period illustrated. In
addition, the fund will provide lifetime average total return figures.
The fund may also, at times, calculate total return based on net asset
value per share (rather than the offering price), in which case the figure
would not reflect the effect of any sales charges which would have been paid if
shares were purchased during the period reflected in the computation.
Consequently, total return calculated in this manner will be higher. These
total returns may be calculated over periods in addition to those described
above. Total return for the unmanaged indices will be calculated assuming
reinvestment of dividends and interest, but will not reflect any deductions for
advisory fees, brokerage costs or administrative expenses.
The fund may also calculate a distribution rate on a taxable and tax
equivalent basis. The distribution rate is computed by dividing the dividends
paid by the fund over the last 12 months by the sum of the month-end net asset
value or maximum offering price and the capital gains paid over the last 12
months. The distribution rate may differ from the yield.
The fund may include information on its investment results and/or
comparisons of its investment results to various unmanaged indices (such as The
Dow Jones Average of 30 Industrial Stocks and The Standard and Poor's 500 Stock
Composite Index) or results of other mutual funds or investment or savings
vehicles in advertisements or in reports furnished to present or prospective
shareholders.
The fund may refer to results compiled by organizations such as CDA
Investment Technologies, Ibbottson Associates, Lipper Analytical Services,
Morningstar, Inc., Wiesenberger Investment Companies Services and by the U.S.
Department of Commerce. Additionally, the fund may, from time to time, refer
to results published in various newspapers or periodicals, including BARRONS,
FORBES, FORTUNE, INSTITUTIONAL INVESTOR, KIPLINGER'S PERSONAL FINANCE MAGAZINE,
MONEY, U.S. NEWS AND WORLD REPORT and The Wall Street Journal.
The fund may, from time to time, compare its investment results with the
following:
(1) Average of Savings Institutions deposits, which is a measure of all
kinds of savings deposits, including longer-term certificates (based on figures
supplied by the U.S. League of Savings Institutions and the Federal Reserve
Board). Savings deposits offer a guaranteed rate of return on principal, but
no opportunity for capital growth. The period shown may include periods during
which the maximum rates paid on some savings deposits were fixed by law.
(2) The Consumer Price Index, which is a measure of the average change in
prices over time in a fixed market basket of goods and services (e.g. food,
clothing, shelter, and fuels, transportation fares, charges for doctors' and
dentists' services, prescription medicines, and other goods and services that
people buy for day-to-day living).
The fund may, from time to time, illustrate the benefits of tax-deferral
by comparing taxable investments to investments made through tax-deferred
retirement plans.
EXPERIENCE OF THE INVESTMENT ADVISER - Capital Research and Management
Company manages nine common stock funds that are at least 10 years old. In the
rolling 10-year periods since 1964 (115 in all), those funds have had better
total returns than the Standard & Poor's 500 Stock Composite Index in 94 of the
115 periods.
Note that past results are not an indication of future investment results.
Also, the fund has different investment policies than some of the funds
mentioned above. These results are included solely for the purpose of
informing investors about the experience and history of Capital Research and
Management Company.
The investment results set forth below were calculated as described in the
fund's prospectus. The fund's results will vary from time to time depending
upon market conditions, the composition of the fund's portfolio and operating
expenses of the fund, so that any investment results reported by the fund
should not be considered representative of what an investment in the fund may
earn in any future period. These factors and possible differences in
calculation methods should be considered when comparing the fund's investment
results with those published for other mutual funds, other investment vehicles
and unmanaged indices. The fund's results also should be considered relative
to the risks associated with the fund's investment objective and policies.
The investment results set forth below were calculated as described in the
fund's Prospectus.
AMF VS. VARIOUS UNMANAGED INDICES
<TABLE>
<CAPTION>
10-Year AMF DJIA/(1)/ S&P 500/(2)/ Average
Periods Savings
11/1 -10/31 Account/(3)/
<S> <C> <C> <C> <C>
1985 - 1995 +232% +384% +321% +71%
1984 - 1994 +233 +362 +297 +80
1983 - 1993 +247 +338 +307 +91
1982 - 1992 +273 +384 +353 +102
1981 - 1991 +336 +453 +379 +114
1980 - 1990 +285 +316 +261 +123
1979 - 1989 +426 +423 +415 +125
1978 - 1988 +412 +347 +371 +125
1977 - 1987 +413 +309 +335 +125
1976 - 1986 +414 +233 +284 +124
1975 - 1985 +400 +182 +247 +122
1974 - 1984 +418 +212 +266 +117
1973 - 1983 +312 +120 +145 +111
1972 - 1982 +221 +76 +91 +103
1971 - 1981 +179 +67 +101 +93
1970 - 1980 +207 +97 +134 +83
1969 - 1979 +113 +50 +57 +78
1968 - 1978 +71 +28 +32 +74
1967 - 1977 +79 +40 +41 +71
1966 - 1976 +103 +78 +82 +69
1965 - 1975 +56 +28 +36 +66
1964 - 1974 +39 +10 +21 +62
1963 - 1973 +92 +81 +102 +59
1962 - 1972 +154 +131 +173 +56
1961 - 1971 +96 +70 +90 +54
1960 - 1970 +115 +86 +116 +52
1959 - 1969 +134 +87 +133 +49
1958 - 1968 +186 +147 +178 +46
1957 - 1967 +212 +184 +218 +44
</TABLE>
(1) The Dow Jones Average of 30 Industrial Stocks is comprised of 30 industrial
companies such as General Motors and General Electric.
(2) The Standard & Poor's 500 Stock Composite Index is comprised of industrial,
transportation, public utilities and financial stocks and represents a large
portion of the value of issues traded on the New York Stock Exchange. Selected
issues traded on the American Stock Exchange are also included.
(3) Based on figures supplied by the U.S. League of Savings Institutions and
the Federal Reserve Board which reflect all kinds of savings deposits,
including longer-term certificates. Savings accounts offer a guaranteed return
of principal, but no opportunity for capital growth. During a portion of the
period, the maximum rates paid on some savings deposits were fixed by law.
IF YOU ARE CONSIDERING AMF FOR AN INDIVIDUAL RETIREMENT ACCOUNT. . .
<TABLE>
<CAPTION>
Here's how much you would have if you had invsted $3,000 a year on
November 1 of each year in AMF over the past 5, 10, 20 and 30 years:
<S> <C> <C> <C>
5 years 10 years 20 years 30 years
(11/1/90 - 10/31/95) (11/1/85 - 10/31/95) (11/1/75 - 10/31/95) (11/1/65 - 10/31/95)
$14,151 $38,652 $229,229 $697,581
</TABLE>
SEE THE DIFFERENCE TIME CAN MAKE IN AN INVESTMENT PROGRAM...
<TABLE>
<CAPTION>
if you had invested Periods ...and taken all distributions
$10,000 in AMF 11/1 - 10/31 in shares, your investment
this many years ago... would have been worth this
Number much at October 31, 1995
of Years Value
<S> <C> <C>
1 1994 - 1995 $11,427
2 1993 - 1995 11,626
3 1992 - 1995 13,793
4 1991 - 1995 15,094
5 1990 - 1995 18,813
6 1989 - 1995 17,937
7 1988 - 1995 21,560
8 1987 - 1995 24,258
9 1986 - 1995 25,527
10 1985 - 1995 33,222
11 1984 - 1995 40,389
12 1983 - 1995 42,783
13 1982 - 1995 54,655
14 1981 - 1995 69,781
15 1980 - 1995 76,808
16 1979 - 1995 100,102
17 1978 - 1995 117,154
18 1977 - 1995 132,126
19 1976 - 1995 139,250
20 1975 - 1995 176,335
21 1974 - 1995 221,906
22 1973 - 1995 186,874
23 1972 - 1995 186,178
24 1971 - 1995 206,402
25 1970 - 1995 249,719
26 1969 - 1995 225,891
27 1968 - 1995 212,689
28 1967 - 1995 251,002
29 1966 - 1995 300,267
30 1965 - 1995 291,597
</TABLE>
Illustration of a $10,000 investment in AMF with
dividends reinvested and capital gain distributions taken in shares
(For the lifetime of the Fund, February 21, 1950 through October 31, 1995)
<TABLE>
<CAPTION>
COST OF SHARES VALUE OF SHARES
Fiscal Total From From
Year End Annual Dividends Investment From Initial Capital Gains Dividends Total
10/31 Dividends (cumulative) Cost Investment Reinvested Reinvested Value
<S> <C> <C> <C> <C> <C> <C> <C>
1950 $ 247 $ 247 $ 10,247 $ 9,548 $ 225 $ 245 $ 10,018
1951 523 770 10,770 10,706 740 788 12,234
1952 513 1,283 11,283 10,536 1,357 1,271 13,164
1953 550 1,833 11,833 10,452 1,829 1,795 14,076
1954 579 2,412 12,412 13,048 3,378 2,835 19,261
1955 647 3,059 13,059 15,240 5,871 3,939 25,050
1956 789 3,848 13,848 16,087 8,658 4,906 29,651
1957 911 4,759 14,759 13,452 9,685 4,913 28,050
1958 1,010 5,769 15,769 15,936 13,280 6,924 36,140
1959 1,050 6,819 16,819 16,632 16,623 8,234 41,489
1960 1,210 8,029 18,029 15,052 17,197 8,616 40,865
1961 1,257 9,286 19,286 18,495 23,965 11,888 54,348
1962 1,372 10,658 20,658 14,638 21,270 10,664 46,572
1963 1,523 12,181 22,181 17,987 28,625 14,677 61,289
1964 1,697 13,878 23,878 19,360 34,472 17,523 71,355
1965 1,845 15,723 25,723 19,925 40,082 19,912 79,919
1966 2,271 17,994 27,994 17,611 40,329 19,706 77,646
1967 2,568 20,562 30,562 19,285 49,467 24,084 92,836
1968 3,154 23,716 33,716 20,903 59,174 29,509 109,586
1969 3,762 27,478 37,478 17,930 56,314 28,972 103,216
1970 4,168 31,646 41,646 14,506 51,267 27,585 93,358
1971 4,424 36,070 46,070 16,482 61,005 35,512 112,999
1972 4,711 40,781 50,781 16,990 67,024 41,212 125,226
1973 5,069 45,850 55,850 15,842 65,585 43,372 124,799
1974 7,273 53,123 63,123 12,474 51,642 41,006 105,122
1975 7,300 60,423 70,423 14,788 61,223 56,185 132,196
1976 7,881 68,304 78,304 17,516 75,351 74,512 167,379
1977 8,604 76,908 86,908 16,952 79,251 80,231 176,434
1978 9,989 86,897 96,897 17,516 88,743 92,688 198,947
1979 11,322 98,219 108,219 18,702 104,186 109,917 232,805
1980 13,854 112,073 122,073 22,295 135,771 145,518 303,584
1981 16,351 128,424 138,424 22,559 148,139 163,418 334,116
1982 26,841 155,265 165,265 24,271 194,950 207,217 426,438
1983 26,227 181,492 191,492 28,391 246,296 270,229 544,916
1984 26,606 208,098 218,098 27,413 260,888 288,859 577,160
1985 30,124 238,222 248,222 30,310 320,100 351,425 701,835
1986 34,058 272,280 282,280 35,974 423,882 453,214 913,070
1987 39,285 311,565 321,565 34,167 460,226 466,495 960,888
1988 50,009 361,574 371,574 35,108 514,255 531,837 1,081,200
1989 59,908 421,482 431,482 38,627 611,229 649,930 1,299,786
1990 66,101 487,583 497,583 33,697 577,926 627,722 1,239,345
1991 71,767 559,350 569,350 39,473 692,684 812,254 1,544,411
1992 67,509 626,859 636,859 40,056 755,828 894,131 1,690,015
1993 70,887 697,746 707,746 43,669 911,212 1,049,980 2,004,861
1994 76,471 774,217 784,217 40,640 944,019 1,055,212 2,039,871
1995 83,156 857,373 867,373 45,475 1,156,130 1,271,837 2,473,442
</TABLE>
The dollar amount of capital gain distributions during the period was
$752,407.
AMERICAN MUTUAL FUND
INVESTMENT PORTFOLIO,
October 31, 1995
Percent of
Largest Industry Holdings* Net Assets
Banking 11.60%
Telecommunications 11.18%
Energy Sources 6.52%
Health & Personal Care 5.94%
Utilities: Electric & Gas 4.09%
Other Industries 33.35%
Bonds, Notes, and Cash Equivalents 27.32%
*Percentages above do not include certain stocks in initial period of
acquisition.
Percent of
Largest Individual Holdings Net Assets
AT&T 3.07%
Pacific Telesis 1.92
Ameritech 1.77
Minnesota Mining and Manufacturing 1.76
Amoco 1.56
Merck 1.54
Wachovia 1.48
Royal Dutch Petroleum 1.41
DuPont 1.31
Sprint 1.29
<TABLE>
<CAPTION>
Market Percent
EQUITY-TYPE SECURITIES Value of Net
(common and preferred stocks) Shares (Millions) Assets
<S> <C> <C> <C>
ENERGY
ENERGY SOURCES- 6.52%
Amoco Corp. 1,600,000 $102.200 1.56
Ashland Inc. 519,100 16.417 .25
Atlantic Richfield Co. 70,000 7.473 .11
Chevron Corp. 350,000 16.363 .25
Exxon Corp. 925,000 70.647 1.08
Phillips Petroleum Co. 2,400,000 77.400 1.18
Royal Dutch Petroleum Co.
(New York Registered Shares) 750,000 92.156 1.41
Texaco Inc. 400,000 27.250 .42
Unocal Corp. $3.50 convertible preferred 330,000 16.995 .26
UTILITIES: ELECTRIC & GAS- 4.09%
Carolina Power & Light Co. 650,000 21.288 .32
Central and South West Corp. 1,800,000 48.150 .73
Consolidated Edison Co. of New York, Inc. 1,900,000 57.713 .88
Dominion Resources, Inc. 150,000 5.963 .09
Duke Power Co. 500,000 22.375 .34
Entergy Corp. 1,600,000 45.600 .70
Houston Industries Inc. 375,000 17.391 .27
Pacific Gas and Electric Co. 1,300,000 38.188 .58
Unicom Corp. 350,000 11.463 .18
----------- ------
695.032 10.61
----------- ------
MATERIALS
CHEMICALS- 2.99%
Dow Chemical Co. 400,000 27.450 .42
E.I. du Pont de Nemours and Co. 1,372,000 85.579 1.31
Monsanto Co. 788,200 82.564 1.26
FOREST PRODUCTS & PAPER- 1.38%
Georgia-Pacific Corp. 125,000 10.313 .16
Rayonier Inc. (formerly ITT Rayonier Inc.) 50,000 1.875 .03
Union Camp Corp. 750,000 38.156 .58
Westvaco Corp. 820,000 22.755 .35
Weyerhaeuser Co. 400,000 17.650 .26
METALS: STEEL- 0.27%
Worthington Industries, Inc. 1,050,000 17.456 .27
MISCELLANEOUS MATERIALS & COMMODITIES- 0.80%
Olin Corp. 649,600 41.574 .63
TRINOVA Corp. 400,000 11.250 .17
----------- ------
356.622 5.44
----------- ------
CAPITAL EQUIPMENT
AEROSPACE & MILITARY TECHNOLOGY- 1.96%
Boeing Co. 570,000 37.406 .57
General Motors Corp., Class H 250,000 10.500 .16
Sundstrand Corp 517,600 31.703 .48
United Technologies Corp. 550,000 48.813 .75
CONSTRUCTION & HOUSING- 0.17%
Stone & Webster, Inc. 325,000 10.928 .17
DATA PROCESSING & REPRODUCTION- 1.88%
International Business Machines Corp. 735,000 71.479 1.09
Xerox Corp. 400,000 51.900 .79
ELECTRICAL & ELECTRONIC- 1.62%
General Electric Co. 1,335,000 84.439 1.29
Hubbell Inc., Class B 360,000 21.690 .33
ELECTRONIC COMPONENTS- 0.60%
Motorola, Inc. 600,000 39.375 .60
INDUSTRIAL COMPONENTS- 1.16%
Dana Corp. 700,000 17.938 .27
Johnson Controls, Inc. 200,000 11.650 .18
TRW Inc. 700,000 46.025 .71
MACHINERY & ENGINEERING- 1.25%
Caterpillar Inc. 400,000 22.450 .34
Deere & Co. 671,400 60.006 .91
----------- ------
566.302 8.64
----------- ------
CONSUMER GOODS
AUTOMOBILES- 1.18%
Ford Motor Co., Class A 2,679,620 77.039 1.18
BEVERAGES- 0.40%
PepsiCo, Inc. 500,000 26.375 .40
FOOD & HOUSEHOLD PRODUCTS- 1.84%
Colgate-Palmolive Co. 325,000 22.506 .34
ConAgra, Inc. 1,279,917 49.437 .75
CPC International Inc. 185,000 12.279 .19
General Mills, Inc. 400,000 22.950 .35
Ralston Purina Co. 226,300 13.437 .21
HEALTH & PERSONAL CARE- 5.94%
Abbott Laboratories 400,000 15.900 .24
American Home Products Corp. 765,000 67.798 1.03
Bausch & Lomb Inc. 501,000 17.347 .26
Bristol-Myers Squibb Co. 325,000 24.781 .38
Johnson & Johnson 400,000 32.600 .50
Eli Lilly and Co. 325,000 31.403 .48
Merck & Co., Inc. 1,760,000 101.200 1.54
Schering-Plough Corp. 600,000 32.175 .49
Upjohn Co. 630,000 31.973 .49
Warner-Lambert Co. 400,000 34.050 .53
TEXTILES & APPAREL- 0.37%
VF Corp. 500,000 23.937 .37
----------- ------
637.187 9.73
----------- ------
SERVICES
BROADCASTING & PUBLISHING- 1.27%
Gannett Co., Inc. 850,000 46.219 .71
Times Mirror Co., $1.374 preferred equity
redemption cumulative stock, Series B 224,483 5.416 .08
Tribune Co. 500,000 31.562 .48
BUSINESS & PUBLIC SERVICES- 2.04%
Dun & Bradstreet Corp. 1,000,000 59.750 .91
Moore Corp. Ltd. 700,000 13.387 .20
Pitney Bowes Inc. 1,000,000 43.625 .67
WMX Technologies, Inc. 600,000 16.875 .26
LEISURE & TOURISM- 0.45%
Marriott International, Inc. 800,000 29.500 .45
MERCHANDISING- 0.87%
J. C. Penney Co., Inc. 300,000 12.637 .19
Wal-Mart Stores, Inc. 1,000,000 21.625 .33
Walgreen Co. 800,000 22.800 .35
TELECOMMUNICATIONS- 11.18%
Ameritech Corp. 2,150,000 116.100 1.77
AT&T Corp. 3,145,000 201.280 3.07
Bell Atlantic Corp. 500,000 31.812 .49
GTE Corp. 1,500,000 61.875 .94
Pacific Telesis Group 4,150,000 126.056 1.92
SBC Communications Inc. 700,000 39.112 .60
Sprint Corp. 2,200,000 84.700 1.29
U S WEST, Inc. 1,500,000 71.437 1.10
TRANSPORTATION: AIRLINES- 0.26%
Delta Air Lines, Inc. $3.50 convertible preferred,
Class C 310,000 17.166 .26
TRANSPORTATION: RAIL & ROAD- 2.56%
Conrail, Inc. 750,000 51.562 .79
Norfolk Southern Corp. 955,000 73.774 1.13
Union Pacific Corp. 650,000 42.494 .64
----------- ------
1,220.764 18.63
----------- ------
FINANCE
BANKING- 11.60%
AmSouth Bancorporation 1,000,000 39.875 .61
Banc One Corp. 2,100,000 70.875 1.08
BankAmerica Corp. 250,000 14.375 .22
Chemical Banking Corp. 1,050,000 59.719 .91
Citicorp $5.375 convertible preferred,
Series 13 150,000 26.850 .41
Comerica Inc. 1,700,000 57.162 .87
First Chicago Corp. 440,000 29.865 .46
First Interstate Bancorp 350,000 45.150 .69
First Security Corp. 950,000 31.112 .47
First Union Corp. 250,000 12.406 .19
Fleet Financial Group, Inc. 1,200,000 46.500 .71
Huntington Bancshares Inc. 2,600,000 62.075 .95
J.P. Morgan & Co. Inc. 450,000 34.706 .53
NBD Bancorp, Inc. 300,000 11.400 .17
PNC Bank Corp. 2,440,000 64.050 .98
Wachovia Corp. 2,200,000 97.075 1.48
Wells Fargo & Co. 270,000 56.734 .87
FINANCIAL SERVICES- 0.80%
Beneficial Corp. 225,000 11.025 .17
Federal National Mortgage Assn. 395,000 41.426 .63
INSURANCE- 3.04%
Aetna Life and Casualty Co. 400,000 28.150 .43
Allstate Corp. 1,400,000 51.450 .79
American General Corp. 970,000 31.889 .49
Lincoln National Corp. 600,000 26.775 .41
SAFECO Corp. 550,000 35.303 .54
St. Paul Companies, Inc. 500,000 25.375 .38
----------- ------
1,011.322 15.44
----------- ------
MULTI-INDUSTRY & MISCELLANEOUS
MULTI-INDUSTRY- 2.73%
Minnesota Mining and Manufacturing Co. 2,025,000 115.172 1.76
Tenneco Inc. 700,000 30.712 .47
Textron Inc. 480,000 33.000 .50
----------- ------
178.884 2.73
----------- ------
MISCELLANEOUS- 1.46%
Stocks in initial period of acquisition 95.974 1.46
----------- ------
TOTAL EQUITY-TYPE SECURITIES (cost:
$3,172.345 million) 4,762.087 72.68
----------- ------
BONDS AND NOTES Principal
Amount
CORPORATE- 0.21%
J.C. Penney Co., Inc. 9.05% 2001 $12,000,000 13.477 .21
----------- ------
U.S. TREASURY OBLIGATIONS- 6.37%
10.75% August 2005 8,000,000 10.720 .16
12.375% May 2004 50,000,000 70.906 1.08
11.75% February 2001 50,000,000 63.297 .97
8.25% July 1998 60,000,000 63.778 .97
5.125% April 1998 60,000,000 59.240 .90
8.125% February 1998 60,000,000 63.103 .96
6.00% November 1997 60,000,000 60.441 .92
6.375% June 1997 12,000,000 12.148 .19
7.25% November 1996 14,000,000 14.228 .22
----------- ------
417.861 6.37
----------- ------
TOTAL BONDS AND NOTES (cost: $439.766 million) 431.338 6.58
----------- ------
TOTAL INVESTMENT SECURITIES (cost: $3,612.111
million) 5,193.425 79.26
----------- ------
SHORT-TERM SECURITIES
CORPORATE SHORT-TERM NOTES- 17.84%
American Express Credit Corp. 5.67%-5.70%
due 12/7/95-1/17/96 73,300,000 72.729 1.11
AT&T Corp. 5.64%-5.65%
due 12/19-12/21/95 63,500,000 62.996 .96
Central and South West Corp. 5.67%-5.72%
due 11/6-12/14/95 69,845,000 69.618 1.06
Coca-Cola Co. 5.65%-5.66%
due 12/19-12/21/95 48,100,000 47.720 .73
John Deere Capital Corp. 5.71%-5.72%
due 11/15-11/16/95 40,000,000 39.902 .61
Ford Motor Credit Co. 5.64%-5.74%
due 11/1-12/1/95 75,000,000 74.748 1.14
General Electric Capital Corp. 5.68%-5.75%
due 11/13-12/15/95 87,400,000 87.048 1.33
H.J.Heinz Co. 5.71%-5.72%
due 11/1-12/28/95 41,600,000 41.530 .63
Hewlett-Packard Co. 5.58%-5.68%
due 12/13/95-1/25/96 93,050,000 92.159 1.41
J.C. Penney Funding Corp. 5.70%-5.71%
due 11/7-12/4/95 76,600,000 76.444 1.17
PepsiCo, Inc. 5.68%-5.72% due 11/7/95-1/19/96 62,300,000 61.815 .94
Pfizer Inc. 5.69%-5.70% due 11/2-12/4/95 60,000,000 59.833 .91
Procter & Gamble Co. 5.62%-5.65% due 11/29/95-1/25/96 96,700,000 96.004 1.47
Sara Lee Corp. 5.68% due 12/27/95 50,000,000 49.549 .76
Southwestern Bell Telephone Co. 5.72%-5.75%
due 11/7-11/15/95 19,300,000 19.267 .29
U S WEST Communications, Inc. 5.71%-5.72% due 44,175,000 44.113 .67
11/8-11/9/95
Wal-Mart Stores, Inc. 5.67%-5.70% due 11/13-12/20/95 82,064,000 81.603 1.25
Xerox Corp. 5.68%-5.71% due 11/2-12/15/95 92,400,000 92.130 1.40
FEDERAL AGENCY SHORT-TERM OBLIGATIONS- 0.46%
Federal National Mortgage Assn. 5.61%
due 12/8/95 30,000,000 29.822 .46
U.S. TREASURY SHORT-TERM SECURITIES - 2.66%
7.375%-7.50% due 1/31-5/15/96 172,700,000 173.812 2.66
----------- ------
TOTAL SHORT-TERM SECURITIES (cost: $1,370.635
million) 1,372.842 20.96
Excess of payables over cash and receivables 14.183 .22
----------- ------
TOTAL SHORT-TERM SECURITIES,
CASH AND RECEIVABLES, NET OF PAYABLES 1,358.659 20.74
----------- ------
NET ASSETS $6,552.084 100.00%
=========== ======
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
Equity-type securities Equity-type securities
appearing in the portfolio eliminated from the portfolio
since April 30, 1995 since April 30, 1995
- ---------------------------- ------------------------------
<S> <C>
Abbott Laboratories General Re
Aetna Life and Casualty Melville
Ashland Mobil
Colgate-Palmolive Phelps Dodge
Duke Power Texas Instruments
Fleet Financial Group Texas Utilities
General Motors
Georgia-Pacific
Johnson Controls
Moore
J.C. Penney
Ralston Purina
Wal-Mart
Walgreen
Weyerhaeuser
</TABLE>
- -----------
AMERICAN MUTUAL FUND
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
- ----------------------------------------- --------- --------------
STATEMENT OF ASSETS AND LIABILITIES (dollars in
October 31, 1995 millions)
- ---------------------------------------- --------- --------------
<S> <C> <C>
ASSETS:
Investment securities at market
(cost: $3,612.111) $5,193.425
Short-term securities
(cost: $1,370.635) 1,372.842
Cash 1.558
Receivables for-
Sales of fund's shares $ 5.487
Dividends and accrued interest 23.088 28.575
--------- --------------
6,596.400
LIABILITIES:
Payables for-
Purchases of investments 37.421
Repurchases of fund's shares 3.219
Management services 1.616
Accrued expenses 2.060 44.316
--------- --------------
NET ASSETS AT OCTOBER 31, 1995-
Equivalent to $24.17 per share on
271,030,873 shares of $1 par value
capital stock outstanding (authorized
capital stock--500,000,000 shares) $6,552.084
==============
- ----------------------------------------- --------- --------------
STATEMENT OF OPERATIONS (dollars in
for the year ended October 31, 1995 millions)
- ----------------------------------------- --------- --------------
INVESTMENT INCOME:
Income:
Dividends $156.273
Interest 108.834 $265.107
---------
Expenses:
Management services fee 17.788
Distribution expenses 11.107
Transfer agent fee 3.849
Reports to shareholders .398
Registration statement and
prospectus .148
Postage, stationery and supplies .934
Directors' fees .186
Auditing and legal fees .063
Custodian fee .143
Taxes other than federal income tax .068
Other expenses .100 34.784
--------- --------------
Net investment income 230.323
--------------
REALIZED GAIN AND UNREALIZED
APPRECIATION ON INVESTMENTS:
Net realized gain 305.112
Net increase in unrealized appreciation on
investments:
Beginning of year 970.648
End of year 1,583.521 612.873
--------- --------------
Net realized gain and increase in unrealized
appreciation on investments 917.985
--------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $1,148.308
==============
- ---------------------------------------- --------------
STATEMENT OF CHANGES IN NET ASSETS (dollars in
millions)
- ----------------------------------------- --------------
Year ended
October 31
1995 1994
--------- --------------
OPERATIONS:
Net investment income $ 230.323 $ 213.211
Net realized gain on investments 305.112 205.193
Net change in unrealized appreciation
on investments 612.873 (327.297)
--------- --------------
Net increase in net assets
resulting from operations 1,148.308 91.107
--------- --------------
DIVIDENDS AND DISTRIBUTIONS
PAID TO SHAREHOLDERS:
Dividends from net investment income (220.251) (200.381)
Distributions from net realized
gain on investments (217.473) (251.156)
--------- --------------
Total dividends and distributions (437.724) (451.537)
--------- --------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold:
31,087,225 and 30,117,655
shares, respectively 689.376 652.107
Proceeds from shares issued in
reinvestment of net investment
income dividends and distributions of
net realized gain on investments:
18,568,126 and 18,500,247
shares, respectively 388.017 395.698
Cost of shares repurchased:
28,510,164 and 26,355,477
shares, respectively (633.334) (572.989)
--------- --------------
Net increase in net assets
resulting from capital share
transactions 444.059 474.816
--------- --------------
TOTAL INCREASE IN NET ASSETS 1,154.643 114.386
NET ASSETS:
Beginning of year 5,397.441 5,283.055
--------- --------------
End of year (including undistributed
net investment income: $41.899
and $31.827, respectively) $6,552.084 $5,397.441
=========== ==============
</TABLE>
See Notes to Financial Statements
Notes to Financial Statements
1. American Mutual Fund, Inc. (the "fund") is registered under the Investment
Company Act of 1940 as an open-end, diversified management investment company.
The following paragraphs summarize the significant accounting policies
consistently followed by the fund in the preparation of its financial
statements:
Equity-type securities traded on a national securities exchange (or
reported on the NASDAQ national market)and securities traded in the
over-the-counter market are stated at the last reported sales price on the day
of valuation; other securities, and securities for which no sale was reported
on that date, are stated at the last quoted bid price.
Bonds and notes are valued at prices obtained from a bond-pricing service
provided by a major dealer in bonds, when such prices are available; however,
in circumstances where the investment adviser deems it appropriate to do so,
such securities will be valued at the mean of their representative quoted bid
and asked prices or, if such prices are not available, at prices for securities
of comparable maturity, quality, and type.
Short-term securities with original or remaining maturities in excess of
60 days are valued at the mean of their quoted bid and asked prices. Short-term
securities with 60 days or less to maturity are valued at amortized cost, which
approximates market value. Securities for which market quotations are not
readily available are valued at fair value as determined in good faith by the
Valuation Committee of the Board of Directors.
As is customary in the mutual fund industry, securities transactions are
accounted for on the date the securities are purchased or sold. Realized gains
and losses from securities transactions are reported on an identified cost
basis. Dividend and interest income is reported on the accrual basis. Discounts
on securities purchased are amortized over the life of the respective
securities. The fund does not amortize premiums on securities purchased.
Dividends and distributions paid to shareholders are recorded on the
ex-dividend date.
Pursuant to the custodian agreement, the fund receives credits against
its custodian fee for imputed interest on certain balances with the custodian
bank. The custodian fee of $143,000 includes $51,000 that was paid by these
credits rather than in cash.
2. It is the fund's policy to continue to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its net taxable income, including any net realized gain on
investments, to its shareholders. Therefore, no federal income tax provision is
required.
As of October 31, 1995, net unrealized appreciation on investments for
federal income tax purposes aggregated $1,584,877,000, of which $1,609,769,000
related to appreciated securities and $24,892,000 related to depreciated
securities. During the year ended October 31, 1995, the fund realized, on a tax
basis, a net capital gain of $305,481,000 on securities transactions. The cost
of portfolio securities for federal income tax purposes was $4,981,390,000 at
October 31, 1995.
3. The fee of $17,788,000 for management services was paid pursuant to an
agreement with Capital Research and Management Company (CRMC) with which
certain officers and Directors of the fund are affiliated. The Investment
Advisory and Service Agreement provides for monthly fees, accrued daily, based
on an annual rate of 0.384% of the first $1 billion of average net assets;
0.33% of such assets in excess of $1 billion but not exceeding $2 billion;
0.294% of such assets in excess of $2 billion but not exceeding $3 billion;
0.27% of such assets in excess of $3 billion but not exceeding $5 billion;
0.252% of such assets in excess of $5 billion but not exceeding $8 billion; and
0.24% of such assets in excess of $8 billion.
Pursuant to a Plan of Distribution, the fund may expend up to 0.25% of its
average net assets annually for any activities primarily intended to result in
sales of fund shares, provided the categories of expenses for which
reimbursement is made are approved by the fund's Board of Directors. Fund
expenses under the Plan include payments to dealers to compensate them for
their selling and servicing efforts. During the year ended October 31, 1995,
distribution expenses under the Plan were $11,107,000. As of October 31, 1995,
accrued and unpaid distribution expenses were $1,944,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $3,849,000. American Funds Distributors, Inc. (AFD), the
principal underwriter of the fund's shares, received $2,831,000 (after
allowances to dealers) as its portion of the sales charges paid by purchasers
of the fund's shares. Such sales charges are not an expense of the fund and,
hence, are not reflected in the accompanying statement of operations.
Directors of the fund who are unaffiliated with CRMC may elect to defer
part or all of the fees earned for services as memebers of the Board. Amounts
deferred are not funded and are general unsecured liabilities of the fund. As
of October 31, 1995, aggregate amounts deferred were $91,000.
CRMC is owned by The Capital Group Companies, Inc. AFS and AFD are both
wholly owned subsidiaries of CRMC. Certain Directors and officers of the fund
are or may be considered to be affiliated with CRMC, AFS, and AFD. No such
persons received any remuneration directly from the fund.
4. As of October 31, 1995, accumulated undistributed net realized gain on
investments was $290,187,000 and paid-in capital was $4,365,446,000.
The fund made purchases and sales of investment securities, excluding
short-term securities, of $1,134,732,000 and $1,268,264,000, respectively,
during the year ended October 31, 1995.
Per-Share Data and Ratios
<TABLE>
<CAPTION>
Year
ended
October 31
1995 1994 1993 1992 1991
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Year $21.60 $23.21 $21.29 $20.98 $17.91
------- ------- ------- ------- -------
Income from Investment
Operations:
Net investment income .87 .88 .85 .87 .89
Net realized and unrealized
gain (loss) on investments 3.41 (.54) 2.89 .98 3.39
------- ------- ------- ------- -------
Total income from
investment operations 4.28 .34 3.74 1.85 4.28
------- ------- ------- ------- -------
Less Distributions:
Dividends from net investment
income (.84) (.84) (.85) (.88) (1.01)
Distributions from net
realized gains (.87) (1.11) (.97) (.66) (.20)
------- ------- ------- ------- -------
Total distributions (1.71) (1.95) (1.82) (1.54) (1.21)
------- ------- ------- ------- -------
Net Asset Value, End of Year $24.17 $21.60 $23.21 $21.29 $20.98
======= ======= ======= ======= =======
Total Return* 21.25% 1.75% 18.63% 9.43% 24.62%
Ratios/Supplemental Data:
Net assets, end of year (in
millions) $6,552 $5,397 $5,283 $4,565 $4,134
Ratio of expenses to average
net assets .59% .60% .59% .60% .63%
Ratio of net income to average
net assets 3.92% 4.07% 3.83% 4.15% 4.47%
Portfolio turnover rate 23.31% 18.46% 22.48% 37.35% 23.77%
</TABLE>
*This was calculated without deducting a sales charge. The maximum sales
charge is 5.75% of the fund's offering price.
Independent Auditors' Report
To the Board of Directors and Shareholders of American Mutual Fund, Inc.:
We have audited the accompanying statement of assets and liabilities of
American Mutual Fund, Inc., including the schedule of portfolio investments, as
of October 31, 1995, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in
the period then ended, and the per-share data and ratios for each of the five
years in the period then ended. These financial statements and per-share data
and ratios are the responsibility of the fund's management. Our responsibility
is to express an opinion on these financial statements and the per-share data
and ratios based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and per-share data
and ratios are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at October
31, 1995 by correspondence with the custodian and brokers; where replies were
not received from brokers, we performed other procedures. An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and per-share data and ratios
referred to above present fairly, in all material respects, the financial
position of American Mutual Fund, Inc. at October 31, 1995, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the per-share data and ratios for
each of the five years in the period then ended, in conformity with generally
accepted accounting principles.
DELOITTE & TOUCHE LLP
Los Angeles, California
November 22, 1995
TAX INFORMATION (UNAUDITED)
We are required to advise you within 60 days of the fund's fiscal year-end
regarding the federal tax status of distributions received by shareholders
during such fiscal year. The distributions made during the fiscal year by the
fund were earned from the following sources:
Dividends and Distributions per Share
<TABLE>
<CAPTION>
To Shareholders of Payment Date Dividends From Net From Net
Record from Net Realized Realized
Investment Short-Term Long-term
Income Gains Gains
<S> <C> <C> <C> <C>
December 2, 1994 December 5, 1994 $0.21 - $0.87
April 7, 1995 April 10, 1995 0.21 - -
July 3, 1995 July 5, 1995 0.21 - -
October 6, 1995 October 9, 1995 0.21 - -
</TABLE>
Corporate shareholders may deduct up to 70% of qualifying dividends
received during the year. For purposes of computing this exclusion, 64% of the
dividends paid by the fund from net investment income represents qualifying
dividends.
Certain states may exempt from income taxation that portion of the
dividends paid from net investment income that was derived from direct U.S.
Treasury obligations. For purposes of computing this exclusion, 21% of the
dividends paid by the fund from net investment income was derived from interest
on direct U.S. Treasury obligations.
Dividends and distibutions received by retirement plans such as IRAs,
Keogh-type plans, and 403(b) plans need not be reported as taxable income.
However, many plan retirement trusts may need this information for their annual
information reporting.
SINCE THE AMOUNTS ABOVE ARE REPORTED FOR THE FUND'S FISCAL YEAR AND NOT
THE CALENDAR YEAR, SHAREHOLDERS SHOULD REFER TO THEIR FORM 1099-DIV WHICH WILL
BE MAILED IN JANUARY 1996 TO DETERMINE THE CALENDAR YEAR AMOUNTS TO BE INCLUDED
ON THEIR RESPECTIVE 1995 TAX RETURNS. SHAREHOLDERS SHOULD CONSULT THEIR TAX
ADVISERS.
PART C
OTHER INFORMATION
ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements:
Included in Prospectus - Part A
Financial Highlights
Included in Statement of Additional Information - Part B
Investment Portfolio
Statement of Assets and Liabilities
Statement of Operations
Statement of Changes in Net Assets
Notes to Financial Statements
Per-Share Data and Ratios
Report of Independent Auditors
(b) Exhibits:
1. On file (see SEC files nos. 811-572 and 2-10607)
2. On file (see SEC files nos. 811-572 and 2-10607)
3. None.
4. On file (see SEC files nos. 811-572 and 2-10607)
5. On file (see SEC files nos. 811-572 and 2-10607)
6. On file (see SEC files nos. 811-572 and 2-10607)
7. None.
8. On file (see SEC files nos. 811-572 and 2-10607)
9. Form of Shareholder Services Agreement between Registrant and American
Funds Service Company, as amended January 1, 1995
10. Not applicable to this filing.
11. Consent of Independent Auditors.
12. None.
13. None.
14. On file (see SEC files nos. 811-572 and 2-10607)
15. On file (see SEC files nos. 811-572 and 2-10607)
16. Update to previously filed schedule for computation of each performance
quotation provided in the Registration Statement in response to Item 22
17. Financial data schedule (EDGAR)
ITEM 25. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH REGISTRANT.
None.
ITEM 26. NUMBER OF HOLDERS OF SECURITIES.
As of November 30, 1995
<TABLE>
<CAPTION>
Number of Record-Holders
Title of Class
<S> <C>
Capital Stock 354,613
($1.00 par value)
</TABLE>
ITEM 27. INDEMNIFICATION.
Registrant is a joint-insured under Investment Advisor/Mutual Fund
Errors and Omissions Policy written by American International Surplus Lines
Insurance Company, Chubb Custom Insurance Company and ICI Mutual Insurance
Company, which insures its officers and Directors against certain liabilities.
However, in no event will Registrant maintain insurance to indemnify any such
person for any act for which Registrant itself is not permitted to indemnify
the individual.
Subsection (b) of Section 2-418 of the General Corporation Law of
Maryland empowers a corporation to indemnify any person who was or is party or
is threatened to be made a party to any threatened, pending or completed
action, suit or proceeding, whether civil, criminal, administrative or
investigative (other than an action by or in the right of the corporation) by
reason of the fact that he or she is or was a director, officer, employee or
agent of the corporation or is or was serving at the request of the corporation
as a director, officer, employee or agent of another corporation or enterprise,
against reasonable expenses (including attorneys' fees), judgments, penalties,
fines and amounts paid in settlement actually incurred by him in connection
with such action, suit or proceeding unless it is established that: (i) the
act or omission of the person was material to the matter giving rise to the
proceeding and was committed in bad faith or was the result of active and
deliberate dishonesty; (ii) the person actually received an improper personal
benefit of money, property or services; or (iii) with respect to any criminal
action or proceeding, the person had reasonable cause to believe his act or
omission was unlawful.
Indemnification under subsection (b) of Section 2-418 may not be made by a
corporation unless authorized for a specific proceeding after a determination
has been made that indemnification is permissible under the circumstances
because the party to be indemnified has met the standard of conduct set forth
in subsection (b). This determination shall be made (i) by the Board of
Directors by a majority vote of a quorum consisting of directors not, at the
time, parties to the proceeding, or, if such quorum cannot be obtained, then by
a majority vote of a committee of the Board consisting solely of two or more
directors not, at the time, parties to such proceeding and who were duly
designated to act in the matter by a majority vote of the full Board in which
the designated directors who are parties may participate; (ii) by special legal
counsel selected by the Board of Directors or a committee of the Board by vote
as set forth in subparagraph (i), or, if the requisite quorum of the full Board
cannot be obtained therefor and the committee cannot be established, by a
majority vote of the full Board in which any director who is a party may
participate; or (iii) by the stockholders (except that shares held by any party
to the specific proceeding may not be voted). A court of appropriate
jurisdiction may also order indemnification if the court determines that a
person seeking indemnification is entitled to reimbursement under subsection
(b).
Section 2-418 further provides that indemnification provided for by
Section 2-418 shall not be deemed exclusive of any rights to which the
indemnified party may be entitled; that the scope of indemnification extends to
directors, officers, employees or agents of a constituent corporation absorbed
in a consolidation or merger and persons serving in that capacity at the
request of the constituent corporation for another; and empowers the
corporation to purchase and maintain insurance on behalf of a director,
officer, employee or agent of the corporation against any liability asserted
against or incurred by such person in any such capacity or arising out of such
person's status as such whether or not the corporation would have the power to
indemnify such person against such liabilities under Section 2-418.
Article VII of the Articles of Incorporation of the Fund provides that
"The Corporation shall indemnify (a) its directors to the full extent provided
by the general laws of the State of Maryland now or hereafter in force,
including the advance of expenses under the procedures provided by such laws;
(b) its officers to the same extent it shall indemnify its directors; and (c)
its officers who are not directors to such further extent as shall be
consistent with the law. The foregoing shall not limit the authority of the
Corporation to indemnify other employees and agents consistent with the law."
ITEM 28. BUSINESS AND OTHER CONNECTIONS OF INVESTMENT ADVISER.
None.
ITEM 29. PRINCIPAL UNDERWRITERS
( a) American Funds Distributors, Inc. is also the Principal Underwriter
of shares of: AMCAP Fund, Inc., American Balanced Fund, Inc., The American
Funds Income Series, The American Funds Tax-Exempt Series I, The American Funds
Tax-Exempt Series II, American High-Income Municipal Bond Fund, Inc., American
High-Income Trust, The Bond Fund of America, Inc., Capital Income Builder,
Inc., Capital World Bond Fund, Inc., Capital World Growth and Income Fund,
Inc., The Cash Management Trust of America, EuroPacific Growth Fund,
Fundamental Investors, Inc., The Growth Fund of America, Inc., The Income Fund
of America, Inc., The Intermediate Bond Fund of America, The Investment Company
of America, Limited Term Tax-Exempt Bond Fund of America, The New Economy Fund,
New Perspective Fund, Inc., SMALLCAP World Fund, Inc., The Tax-Exempt Bond Fund
of America, Inc., The Tax-Exempt Money Fund of America, The U.S. Treasury Money
Fund of America and Washington Mutual Investors Fund, Inc.
(b)
<TABLE>
<CAPTION>
(1) (2) (3)
NAME AND PRINCIPAL POSITIONS AND OFFICES POSITIONS AND OFFICES
BUSINESS ADDRESS WITH UNDERWRITER WITH REGISTRANT
<S> <C> <C> <C>
# David L. Abzug Assistant Vice President None
John A. Agar Regional Vice President None
1501 N. University Drive
Little Rock, AR 72207
Robert B. Aprison Regional Vice President None
2983 Brynwood Drive
Madison, WI 53711
& Richard L. Armstrong Assistant Vice President None
* William W. Bagnard Vice President None
Steven L. Barnes Vice President None
8000 Town Line Avenue So.
Suite 204
Minneapolis, MN 55438
Michelle A. Bergeron Regional Vice President None
1190 Rockmart Circle
Kennesaw, GA 30144
Joseph T. Blair Vice President None
27 Drumlin Road
West Simsbury, CT 06092
Ian B. Bodell Vice President None
3100 West End Avenue, Suite 870
Nashville, TN 37215
Mick L. Brethower Vice President None
108 Hagen Court
Georgetown, TX 78628
C. Alan Brown Regional Vice President None
4619 McPherson Avenue
St. Louis, MO 63108
* Daniel C. Brown Senior Vice President, Director None
@ J. Peter Burns Vice President None
Brian C. Casey Regional Vice President None
9508 Cable Drive
Kensington, MD 20895
Victor C. Cassato Vice President None
999 Green Oaks Drive
Littleton, CO 80121
Christopher J. Cassin Regional Vice President None
231 Burlington
Clarendon Hills, IL 60514
Denise M. Cassin Regional Vice President None
1425 Vallejo, #203
San Francisco, CA 94109
* Larry P. Clemmensen Treasurer, Director None
* Kevin G. Clifford Senior Vice President None
Ruth M. Collier Vice President None
145 W. 67th Street #12K
New York, NY 10023
Thomas E. Cournoyer Vice President None
2333 Granada Blvd.
Coral Gables, FL 33134
Douglas A. Critchell Vice President None
3521 Rittenhouse Street N.W.
Washington, D.C. 20015
* Carl D. Cutting Vice President None
Michael A. Dilella Vice President None
P.O. Box 661
Ramsey, NJ 07446
G. Michael Dill Senior Vice President None
3622 East 87th Street
Tulsa, OK 74137
Kirk D. Dodge Vice President None
2617 Salisbury Road
Ann Arbor, MI 48103
Peter J. Doran Senior Vice President None
1205 Franklin Avenue
Garden City, NY 11530
* Michael J. Downer Secretary None
Robert W. Durbin Vice President None
74 Sunny Lane
Tiffin, OH 44883
+ Lloyd G. Edwards Vice President None
@ Richard A. Eychner Vice President None
* Paul H. Fieberg Senior Vice President None
John R. Fodor Regional Vice President None
15 Latisquana Road
Southborough, MA 01772
* Mark P. Freeman, Jr. President, Director None
Clyde E. Gardner Vice President None
Rt. 2, Box 3162
Osage Beach, MO 65065
# Evelyn K. Glassford Vice President None
Jeffrey J. Greiner Regional Vice President None
5898 Heather Glen Court
Dublin, OH 43017
* Paul G. Haaga, Jr. Director None
David E. Harper Vice President None
R.D. 1, Box 210, Rte. 519
Frenchtown, NJ 08825
Ronald R. Hulsey Regional Vice President None
6744 Avalon
Dallas, TX 75214
* Robert L. Johansen Vice President, Controller None
Victor J. Kriss, Jr. Senior Vice President None
P.O. Box 274
Surfside, CA 90743
Arthur J. Levine Vice President None
12558 Highlands Place
Fishers, IN 46038
# Karl A. Lewis Assistant Vice President None
T. Blake Liberty Regional Vice President None
12585-E
East Tennessee Circle
Aurora, CO 80012
Stephen A. Malbasa Regional Vice President None
13405 Lake Shore Blvd.
Cleveland, OH 44110
Steven M. Markel Senior Vice President None
5241 S. Race Street
Littleton, CO 80121
* John C. Massar Senior Vice President None
* E. Lee McClennahan Senior Vice President None
Laurie B. McCurdy Regional Vice President None
6008 E. Anderson Drive
Scottsdale, AZ 85255
& John V. McLaughlin Senior Vice President None
Terry W. McNabb Vice President None
2002 Barrett Station Rd.
St. Louis, MO 63131
* R. William Melinat Vice President, Institutional None
Investment Services Division
David R. Murray Regional Vice President None
25701 S.E. 32nd Place
Issaquah, WA 98027
Stephen S. Nelson Vice President None
7215 Trevor Court
Charlotte, NC 28226
* Barbara G. Nicolich Assistant Vice President, None
Institutional Investment Services
Division
William E. Noe Regional Vice President None
304 River Oaks Road
Brentwood, TN 37027
Peter A. Nyhus Regional Vice President None
3084 Wilds Ridge Court
Prior Lake, MN 55372
Eric P. Olson Regional Vice President None
62 Park Drive
Glenview, IL 60025
Fredric Phillips Regional Vice President None
32 Ridge Avenue
Newton Centre, MA 02161
# Candance D. Pilgram Assistant Vice President None
Carl S. Platou Regional Vice President None
4021 96th Avenue, SE
Mercer Island, WA 98040
* John O. Post, Jr. Vice President None
Steven J. Reitman Vice President None
212 The Lane
Hinsdale, IL 60521
Brian A. Roberts Regional Vice President None
12025 Delmahoy Drive
Charlotte, NC 28277
* George L. Romine, Jr. Vice President, Institutional None
Investment Services Division
George S. Ross Vice President None
55 Madison Avenue
Morristown, NJ 07960
* Julie D. Roth Vice President None
Douglas F. Rowe Regional Vice President None
30309 Oak Tree Drive
Georgetown, TX 78628
Christopher S. Rowey Regional Vice President None
9417 Beverlywood Street
Los Angeles, CA 90034
Dean B. Rydquist Vice President None
1080 Bay Pointe Crossing
Alpharetta, GA 30202
Richard R. Samson Vice President None
4604 Glencoe Avenue, #4
Marina del Rey, CA 90292
Joe D. Scarpitti Regional Vice President None
25760 Kensington Drive
Westlake, OH 44145
* R. Michael Shanahan Chairman None
David W. Short Senior Vice President None
1000 RIDC Plaza, Ste. 212
Pittsburgh, PA 15238
* Victor S. Sidhu Vice President, None
Institutional Investment Services
Division
William P. Simon, Jr. Vice President None
554 Canterbury Lane
Berwyn, PA 19312
* John C. Smith Assistant Vice President, None
Institutional Investment Services
Division
* Mark S. Smith Senior Vice President, None
Director
* Mary E. Smith Assistant Vice President, None
Institutional Investment Services
Division
Rodney G. Smith Regional Vice President None
2350 Lakeside Blvd., #850
Richardson, TX 75082
Nicholas D. Spadaccini Regional Vice President None
855 Markley Woods Way
Cincinnati, OH 45230
Daniel S. Spradling Senior Vice President None
4 West 4th Avenue, Suite 406
San Mateo, CA 94402
Craig R. Strauser Regional Vice President None
17040 Summer Place
Lake Oswego, OR 97035
Francis N. Strazzeri Regional Vice President None
31641 Saddletree Drive
Westlake Village, CA 91361
& James P. Toomey Assistant Vice President None
+ Christopher E. Trede Assistant Vice President None
George F. Truesdail Vice President None
400 Abbotsford Court
Charlotte, NC 28270
Scott W. Ursin-Smith Regional Vice President None
606 Glenwood Avenue
Mill Valley, CA 94941
@ Andrew J. Ward Vice President None
* David M. Ward Assistant Vice President, None
Institutional Investment Services
Division
Thomas E. Warren Regional Vice President None
4001 Crockers Lake Blvd., #1012
Sarasota, FL 34238
# J. Kelly Webb Senior Vice President None
Gregory J. Weimer Regional Vice President None
125 Surrey Drive
Canonsburg, PA 15317
# Timothy W. Weiss Director None
N. Dexter Williams Vice President None
Four Embarcadero Center
San Francisco, CA 94111
Timothy J. Wilson Regional Vice President None
113 Farmview Place
Venetia, PA 15367
* Marshall D. Wingo Senior Vice President None
* Robert L. Winston Senior Vice President, None
Director
William R. Yost Regional Vice President None
9320 Overlook Trail
Eden Prairie, MN 55347
Janet Young Regional Vice President None
1616 Vermont
Houston, TX 77006
</TABLE>
* Business Address, 333 South Hope Street, Los Angeles, CA 90071
# Business Address, 135 South State College Blvd., Brea, CA 92621
& Business Address, 8000 IH-10, Suite 1400, San Antonio, TX 78230
@ Business Address, 5300 Robin Hood Road, Norfolk, VA 23513
+ Business Address, 8332 Woodfield Crossing Boulevard, Indianapolis, IN 46240
(c) None.
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS.
Accounts, books and other records required by rules 31a-1 and 31a-2 under
the Investment Company Act of 1940, are maintained and held in the offices of
the Fund and its investment adviser, Capital Research and Management Company,
333 South Hope Street, Los Angeles, CA 90071. Certain accounting records are
maintained and kept in the offices of the Fund's accounting department, 135
South State College Blvd., Brea, CA 92621.
Records covering shareholder accounts are maintained and kept by the
Transfer Agent, American Funds Service Company, 135 South State College Blvd.,
Brea, CA 92621, 8000 IH-10, Suite 1400, San Antonio, TX 78230, 8332 Woodfield
Crossing Blvd., Indianapolis, IN 46240, and 5300 Robin Hood Road, Norfolk, VA
23513.
Records covering portfolio transactions are also maintained and kept by
the Custodian, The Chase Manhattan Bank, N.A., One Chase Manhattan Plaza, New
York, New York, 10081.
ITEM 31. MANAGEMENT SERVICES.
None.
ITEM 32. UNDERTAKINGS.
(c) As reflected in the prospectus, the fund undertakes to provide each
person to whom a prospectus is delivered with a copy of the fund's latest
annual report to shareholders, upon request and without charge.
SIGNATURE OF REGISTRANT
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it meets all of
the requirements for effectiveness of this Registration Statement pursuant to
rule 485(b) under the Securities of 1933 and has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Los Angeles, and State of California, on the 26th
day of December, 1995.
AMERICAN MUTUAL FUND, INC.
By /s/ Jon B. Lovelace
(Jon B. Lovelace, Chairman of the Board)
Pursuant to the requirements of the Securities Act of 1933, this amendment
to Registration Statement has been signed below on December 26, 1995, by the
following persons in the capacities indicated.
<TABLE>
<CAPTION>
SIGNATURE TITLE
<S> <C> <C>
(1) Chief Executive Officer:
James W. Ratzlaff*
(James W. Ratzlaff) Vice Chairman of the Board
(2) Principal Financial Officer and
Principal Accounting Officer:
/s/ Steven N. Kearsley
(Steven N. Kearsley) Treasurer
(3) Directors:
H. Frederick Christie* Director
E. H. Clark, Jr.* Director
Mary Anne Dolan* Director
James K. Dunton President and Director
Martin Fenton, Jr.* Director
E. Eric Johnson* Director
Mary Myers Kaupilla* Director
/s/ Jon B. Lovelace, Jr.
(Jon B. Lovelace, Jr.) Chairman of the Board
James W. Ratzlaff* Vice Chairman of the Board
Olin C. Robison* Director
</TABLE>
*By /s/ Vincent P. Corti
(Vincent P. Corti, Attorney-in-Fact)
Counsel represents that this amendment does not contain disclosures that
would make the amendment ineligible for effectiveness under the provisions of
rule 485(b).
/s/ Michele Y. Yang
(Michele Y. Yang)
SHAREHOLDER SERVICES AGREEMENT
1. The parties to this Agreement, which is effective as of January 1,
1995, are American Mutual Fund, Inc. (hereinafter called "the Fund") and
American Funds Service Company, a California corporation (hereinafter called
"AFS"). AFS is a wholly owned subsidiary of Capital Research and Management
Company (hereinafter called "CRMC"). This Agreement will continue in effect
until amended or terminated in accordance with its terms.
2. The Fund hereby employs AFS, and AFS hereby accepts such employment by
the Fund, as its transfer agent. In such capacity AFS will provide the
services of stock transfer agent, dividend disbursing agent, redemption agent,
and such additional related services as the Fund may from time to time require,
all of which services are sometimes referred to herein as "shareholder
services."
3. AFS has entered into substantially identical agreements with other
investment companies for which CRMC serves as investment adviser. (For the
purposes of this Agreement, such investment companies, including the Fund, are
called "participating investment companies.")
4. AFS has entered into an agreement with DST Systems, Inc. (hereinafter
called "DST"), to provide AFS with electronic data processing services
sufficient for the performance of the shareholder services referred to in
paragraph 2.
5. The Fund, together with the other participating companies, will
maintain a Review and Advisory Committee, which Committee will review and may
make recommendations to the boards of the participating investment companies
regarding all fees and charges provided for in this Agreement, as well as
review the level and quality of the shareholder services rendered to the
participating investment companies and their shareholders. Each participating
investment company may select one director or trustee who is not affiliated
with CRMC, or any of its affiliated companies, or with Washington Management
Corporation or any of its affiliated companies, to serve on the Review and
Advisory Committee.
6. AFS will provide to the participating investment companies the
shareholder services referred to herein in return for the following fees:
ANNUAL ACCOUNT MAINTENANCE FEE (PAID MONTHLY):
$.67 per month for each open account on AFS books or in Level 2 or 4
Networking ($8.04 per year)
$.09 per month for each open account maintained in Street Name or Level 1
or 3 Networking ($1.08 per year)
No annual fee will be charged for a participant account underlying a 401(k)
or other defined contribution plan where the plan maintains a single account on
AFS books and responds to all participant inquiries
TRANSACTION FEES:
$2.00 per non-automated transaction
$0.50 per automated transaction
For this purpose, "transactions" shall include all types of transactions
included in an "activity index" as reported to the Review and Advisory
Committee at least annually. AFS will bill the Fund monthly, on or shortly
after the first of each calendar month, and the Fund will pay to AFS within
five business days of such billing.
Any revision of the schedule of charges set forth herein shall require the
affirmative vote of a majority of the members of the board of
directors/trustees of the Fund.
7. All fund-specific charges from third parties -- including DST charges,
payments described in the next sentence, postage, NSCC transaction charges and
similar out-of-pocket expenses -- will be passed through directly to the Fund
or other participating investment companies, as applicable. AFS, subject to
approval of its board of directors, is authorized in its discretion to
negotiate payments to third parties for account maintenance and/or transaction
processing services provided such payments do not exceed the anticipated
savings to the Fund, either in fees payable to AFS hereunder or in other direct
Fund expenses, that AFS reasonably anticipates would be realized by the Fund
from using the services of such third party rather than maintaining the
accounts directly on AFS' books and/or processing non-automated transactions.
8. It is understood that AFS may have income in excess of its expenses and
may accumulate capital and surplus. AFS is not, however, permitted to
distribute any net income or accumulated surplus to its parent, CRMC, in the
form of a dividend without the affirmative vote of a majority of the members of
the boards of directors/trustees of the Fund and all participating investment
companies.
9. This Agreement may be amended at any time by mutual agreement of the
parties, with agreement of the Fund to be evidenced by affirmative vote of a
majority of the members of the board of directors/trustees of the Fund.
10. This Agreement may be terminated on 180 days' written notice by either
party. In the event of a termination of this Agreement, AFS and the Fund will
each extend full cooperation in effecting a conversion to whatever successor
shareholder service provider(s) the Fund may select, it being understood that
all records relating to the Fund and its shareholders are property of the Fund.
11. In the event of a termination of this Agreement by the Fund, the Fund
will pay to AFS as a termination fee the Fund's proportionate share of any
costs of conversion of the Fund's shareholder service from AFS to a successor.
In the event of termination of this Agreement and all corresponding agreements
with all the participating investment companies, all assets of AFS will be sold
or otherwise converted to cash, with a view to the liquidation of AFS when it
ceases to provide shareholder services for the participating investment
companies. To the extent any such assets are sold by AFS to CRMC and/or any of
its affiliates, such sales shall be at fair market value at the time of sale as
agreed upon by AFS, the purchasing company or companies, and the Review and
Advisory Committee. After all assets of AFS have been converted to cash and
all liabilities of AFS have been paid or discharged, an amount equal to any
capital or paid-in surplus of AFS that shall have been contributed by CRMC or
its affiliates shall be set aside in cash for distribution to CRMC upon
liquidation of AFS. Any other capital or surplus and any assets of AFS
remaining after the foregoing provisions for liabilities and return of capital
or paid-in surplus to CRMC shall be distributed to the participating investment
companies in such proportions as may be determined by the Review and Advisory
Committee.
12. In the event of disagreement between the Fund and AFS, or between the
Fund and other participating investment companies as to any matter arising
under this Agreement, which the parties to the disagreement are unable to
resolve, the question shall be referred to the Review and Advisory Committee
for resolution. If the Review and Advisory Committee is unable to resolve the
question to the satisfaction of both parties, either party may elect to submit
the question to arbitration; one arbitrator to be named by each party to the
disagreement and a third arbitrator to be selected by the two arbitrators named
by the original parties. The decision of a majority of the arbitrators shall
be final and binding on all parties to the arbitration. The expenses of such
arbitration shall be paid by the party electing to submit the question to
arbitration.
13. The obligations of the Fund under this Agreement are not binding upon
any of the directors, trustees, officers, employees, agents or shareholders of
the Fund individually, but bind only the Fund itself. AFS agrees to look
solely to the assets of the Fund for the satisfaction of any liability of the
Fund in respect to this Agreement and will not seek recourse against such
directors, trustees, officers, employees, agents or shareholders, or any of
them or their personal assets for such satisfaction.
AMERICAN FUNDS SERVICE COMPANY AMERICAN MUTUAL FUND, INC.
By /s/ Don R. Conlan By /s/ Jon B. Lovelace
Don R. Conlan, Chairman Jon B. Lovelace, Jr., Chairman
By /s/ Kenneth R. Gorvetzian By /s/ Vincent P. Corti
Kenneth R. Gorvetzian, Secretary Vincent P. Corti, Secretary
CONSENT OF INDEPENDENT AUDITORS
American Mutual Fund, Inc.:
We consent to (a) the use in this Post-Effective Amendment No. 101 to
Registration Statement No. 2-10607 on Form N-1A of our report dated
November 22, 1995 appearing in the Financial Statements, which are included in
Part B, the Statement of Additional Information of such Registration Statement,
(b) the reference to us under the heading "General Information" in such
Statement of Additional Information, and (c) the reference to us under the
heading "Financial Highlights" in the Prospectus, which is a part of such
Registration Statement.
DELOITTE & TOUCHE llp
December 26, 1995
SCHEDULE FOR COMPUTATION OF EACH PERFORMANCE QUOTATION
PROVIDED IN THE REGISTRATION STATEMENT
(1) ENDING REDEMPTION VALUE AND TOTAL RETURN
Value of an initial investment at the end of a period and total return for the
period are computed as set forth below.
(A) INITIAL INVESTMENT DIVIDED BY
PUBLIC OFFERING PRICE FOR ONE SHARE AT BEGINNING
OF PERIOD EQUALS
NUMBER OF SHARES INITIALLY PURCHASED
(B) NUMBER OF SHARES INITIALLY PURCHASED PLUS
NUMBER OF SHARES ACQUIRED AT NET ASSET VALUE
THROUGH REINVESTMENT OF DIVIDENDS AND CAPITAL
GAIN DISTRIBUTIONS DURING PERIOD EQUALS
NUMBER OF SHARES PURCHASED DURING PERIOD
(C) NUMBER OF SHARES PURCHASED DURING PERIOD MULTIPLIED BY
NET ASSET VALUE OF ONE SHARE AS OF THE LAST DAY
OF THE PERIOD EQUALS
VALUE OF INVESTMENT AT END OF PERIOD
(D) VALUE OF INVESTMENT AT END OF PERIOD DIVIDED BY
INITIAL INVESTMENT
MINUS ONE AND THEN MULTIPLIED BY 100 EQUALS
TOTAL RETURN FOR THE PERIOD EXPRESSED AS A
PERCENTAGE
Exhibit 16
(2) AVERAGE ANNUAL TOTAL RETURN
Average annual total return quotations for the 1, 5, and 10-year periods ended
on the date of the most recent balance sheet are computed according to the
formula set forth below.
P(1+T)/n/ = ERV
WHERE: P = a hypothetical initial investment of $1,000
T = average annual total return
n = number of years
ERV = ending redeemable value of a hypothetical $1,000 investment as of the
end of 1, 5 and 10-year periods (computed in accordance with the formula shown
in (1), above)
THUS:
AVG. ANNUAL TOTAL RETURN AT PUBLIC OFFERING PRICE:
1 Year Total Return 1,000(1+T)/1/ = $1,142.71
T = + 14.27%
5 Year Avg. Annual Total Return 1,000(1+T)/5/ = $ 1,881.25
T = + 13.47%
10 Year Avg. Annual Total Return 1,000(1+T)/10/= $ 3,322.09
T = + 12.76%
Hypothetical illustrations based on $1,000 and $10,000 initial investments used
to obtain ending values over various time periods are attached. Illustrations
of $2,000 per year investments in an Individual Retirement Account are also
included.
(3) YIELD
Yield is computed as set forth below.
(A) Dividends and interest earned during the period MINUS
Expenses accrued for the period EQUALS
Net investment income
(B) Net income investment DIVIDED BY
Average daily number of shares
outstanding during the period that
were entitled to receive dividends EQUALS
Net investment income per share earned
during the period
(C) Net investment income per share earned during the period DIVIDED BY
Maximum offering price per share on
last day of the period EQUALS
Current month's yield
(D) Current months yield PLUS ONE RAISED
TO THE SIXTH POWER EQUALS
Semiannual compounded yield
(E) Semiannual compounded yield MINUS ONE
MULTIPLIED BY TWO EQUALS
Annualized rate
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
10/01/94 1000.00 22.92 5.75 % 43.630 21.600 942
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/30/95 1000 38 38 1038 38 1065 47 1112 42 1154.97 47.335
TOTAL $ 38
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
10/01/90 1000.00 19.31 5.75 % 51.787 18.200 943
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/30/91 1000 53 53 1053 10 1083 12 1095 58 1153.42 55.161
9/30/92 1000 50 103 1103 37 1120 53 1173 114 1287.11 59.506
9/30/93 1000 52 155 1155 58 1206 123 1329 181 1510.08 64.838
9/30/94 1000 58 213 1213 73 1119 187 1306 223 1529.91 70.829
9/30/95 1000 62 275 1275 62 1264 288 1552 322 1874.99 76.844
TOTAL $ 240
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
10/01/85 1000.00 16.51 5.75 % 60.569 15.560 942
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/30/86 1000 47 47 1047 53 1127 60 1187 49 1236.60 66.484
9/30/87 1000 55 102 1102 82 1272 162 1434 114 1548.75 73.750
9/30/88 1000 68 170 1170 53 1126 201 1327 171 1498.86 80.627
9/30/89 1000 81 251 1251 55 1276 293 1569 287 1856.84 88.169
9/30/90 1000 91 342 1342 70 1102 317 1419 331 1750.11 96.160
9/30/91 1000 99 441 1441 19 1267 387 1654 487 2141.81 102.430
9/30/92 1000 94 535 1535 68 1310 476 1786 604 2390.01 110.495
9/30/93 1000 99 634 1634 108 1411 635 2046 758 2804.00 120.395
9/30/94 1000 105 739 1739 135 1308 724 2032 808 2840.81 131.519
9/30/95 1000 115 854 1854 116 1478 960 2438 1043 3481.64 142.690
TOTAL $ 759
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
2/21/50 1000.00 10.63 5.75 % 94.073 10.020 943
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/30/50 1000 19 19 1019 0 993 0 993 20 1013.03 95.931
9/30/51 1000 41 60 1060 23 1155 27 1182 66 1248.85 101.698
9/30/52 1000 56 116 1116 49 1127 78 1205 122 1327.61 110.819
9/30/53 1000 49 165 1165 67 1044 139 1183 162 1345.26 121.195
9/30/54 1000 57 222 1222 49 1394 250 1644 285 1929.45 130.192
9/30/55 1000 59 281 1281 112 1695 448 2143 413 2556.32 283.720
9/30/56 1000 83 364 1364 222 1723 705 2428 505 2933.13 320.211
9/30/57 1000 87 451 1451 357 1484 944 2428 518 2946.18 373.407
9/30/58 1000 97 548 1548 175 1594 1221 2815 666 3481.81 411.075
9/30/59 1000 103 651 1651 184 1870 1444 3314 786 4099.53 443.672
9/30/60 1000 113 764 1764 298 1662 1597 3259 827 4086.64 491.182
9/30/61 1000 129 893 1893 225 1866 2245 4111 1167 5278.80 532.137
9/30/62 1000 134 1027 2027 336 1492 2072 3564 1050 4614.78 581.940
9/30/63 1000 151 1178 2178 147 1804 2680 4484 1436 5920.15 617.325
9/30/64 1000 160 1338 2338 262 2011 3279 5290 1772 7062.09 660.626
9/30/65 1000 181 1519 2519 422 2028 3750 5778 1975 7753.75 719.272
9/30/66 1000 213 1732 2732 610 1767 3806 5573 1912 7485.55 797.183
9/30/67 1000 251 1983 2983 463 2126 5122 7248 2579 9827.42 869.683
9/30/68 1000 297 2280 3280 793 2055 5816 7871 2813 10684.26 978.412
9/30/69 1000 336 2616 3616 621 1746 5484 7230 2695 9925.33 1069.540
9/30/70 1000 436 3052 4052 585 1501 5306 6807 2744 9551.98 1196.990
9/30/71 1000 438 3490 4490 0 1776 6277 8053 3710 11763.74 1246.159
9/30/72 1000 463 3953 4953 264 1772 6560 8332 4174 12506.25 1327.627
9/30/73 1000 497 4450 5450 412 1641 6472 8113 4360 12473.76 1430.477
9/30/74 1000 549 4999 5999 315 1135 4697 5832 3437 9269.67 1537.259
9/30/75 1000 774 5773 6773 0 1417 5865 7282 5130 12412.72 1648.435
9/30/76 1000 774 6547 7547 0 1851 7664 9515 7576 17091.48 1736.939
9/30/77 1000 878 7425 8425 278 1829 7867 9696 8373 18069.74 1859.027
9/30/78 1000 974 8399 9399 632 2026 9473 11499 10396 21895.02 2032.964
9/30/79 1000 1107 9506 10506 691 2156 10924 13080 12309 25389.31 2215.472
9/30/80 1000 1282 10788 11788 931 2335 13007 15342 14810 30152.59 2429.701
9/30/81 1000 1581 12369 13369 2217 2222 14591 16813 15629 32442.64 2747.048
9/30/82 1000 2628 14997 15997 2870 2231 17923 20154 18580 38734.05 3265.940
9/30/83 1000 2575 17572 18572 1587 2867 24874 27741 26719 54460.09 3573.497
9/30/84 1000 2529 20101 21101 2311 2719 25874 28593 27930 56523.95 3911.692
CONTINUED ON NEXT PAGE
AMERICAN MUTUAL FUND, INC.
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/30/85 1000 2941 23042 24042 2773 2928 30917 33845 33164 67009.87 4306.547
9/30/86 1000 3282 26324 27324 3747 3500 41235 44735 43191 87926.44 4727.228
9/30/87 1000 3831 30155 31155 5826 3951 53219 57170 52949 110119.59 5243.790
9/30/88 1000 4850 35005 36005 3757 3498 51232 54730 51842 106572.62 5732.793
9/30/89 1000 5822 40827 41827 3882 3962 62700 66662 65363 132025.88 6269.035
9/30/90 1000 6423 47250 48250 5002 3424 58728 62152 62283 124435.46 6837.113
9/30/91 1000 7079 54329 55329 1384 3934 69037 72971 79313 152284.81 7282.870
9/30/92 1000 6624 60953 61953 4858 4070 76789 80859 89073 169932.29 7856.324
9/30/93 1000 7019 67972 68972 7700 4382 91434 95816 103552 199368.39 8560.257
9/30/94 1000 7481 75453 76453 9588 4064 94401 98465 103518 201983.70 9351.097
9/30/95 1000 8149 83602 84602 8216 4591 116712 121303 126242 247545.71 10145.316
TOTAL $ 75241
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
10/01/94 1000.00 21.60 0.00 % 46.296 21.600 1000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/30/95 1000 40 40 1040 41 1130 50 1180 45 1225.54 50.227
TOTAL $ 41
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
10/01/90 1000.00 18.20 0.00 % 54.945 18.200 1000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/30/91 1000 57 57 1057 11 1149 13 1162 61 1223.80 58.527
9/30/92 1000 54 111 1111 39 1188 56 1244 121 1365.61 63.135
9/30/93 1000 56 167 1167 62 1280 131 1411 191 1602.17 68.792
9/30/94 1000 60 227 1227 77 1187 199 1386 237 1623.18 75.147
9/30/95 1000 66 293 1293 66 1341 305 1646 343 1989.33 81.530
TOTAL $ 255
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
10/01/85 1000.00 15.56 0.00 % 64.267 15.560 1000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/30/86 1000 49 49 1049 56 1195 64 1259 53 1312.14 70.545
9/30/87 1000 57 106 1106 87 1350 172 1522 121 1643.31 78.253
9/30/88 1000 73 179 1179 56 1195 213 1408 182 1590.37 85.550
9/30/89 1000 86 265 1265 58 1353 311 1664 306 1970.21 93.552
9/30/90 1000 96 361 1361 75 1170 337 1507 349 1856.95 102.030
9/30/91 1000 105 466 1466 21 1344 410 1754 518 2272.54 108.682
9/30/92 1000 99 565 1565 73 1390 505 1895 640 2535.88 117.239
9/30/93 1000 105 670 1670 115 1497 674 2171 804 2975.16 127.744
9/30/94 1000 112 782 1782 143 1388 768 2156 858 3014.17 139.545
9/30/95 1000 122 904 1904 123 1568 1018 2586 1108 3694.06 151.396
TOTAL $ 807
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
2/21/50 1000.00 10.02 0.00 % 99.800 10.020 1000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/30/50 1000 20 20 1020 0 1054 0 1054 20 1074.70 101.771
9/30/51 1000 44 64 1064 24 1226 29 1255 69 1324.88 107.889
9/30/52 1000 60 124 1124 52 1196 83 1279 129 1408.42 117.564
9/30/53 1000 53 177 1177 71 1108 147 1255 172 1427.15 128.572
9/30/54 1000 61 238 1238 52 1479 266 1745 301 2046.89 138.117
9/30/55 1000 63 301 1301 119 1798 476 2274 437 2711.94 300.992
9/30/56 1000 87 388 1388 235 1828 747 2575 536 3111.66 339.701
9/30/57 1000 93 481 1481 379 1575 1002 2577 548 3125.51 396.135
9/30/58 1000 105 586 1586 185 1691 1295 2986 707 3693.72 436.095
9/30/59 1000 109 695 1695 195 1983 1532 3515 834 4349.04 470.676
9/30/60 1000 120 815 1815 316 1763 1694 3457 877 4335.38 521.079
9/30/61 1000 136 951 1951 239 1980 2382 4362 1238 5600.10 564.526
9/30/62 1000 143 1094 2094 357 1583 2198 3781 1114 4895.68 617.362
9/30/63 1000 159 1253 2253 156 1914 2844 4758 1522 6280.48 654.899
9/30/64 1000 171 1424 2424 278 2134 3478 5612 1879 7491.93 700.835
9/30/65 1000 191 1615 2615 448 2152 3978 6130 2095 8225.68 763.050
9/30/66 1000 226 1841 2841 648 1874 4038 5912 2029 7941.13 845.701
9/30/67 1000 267 2108 3108 491 2255 5434 7689 2736 10425.56 922.616
9/30/68 1000 315 2423 3423 842 2180 6170 8350 2984 11334.58 1037.965
9/30/69 1000 356 2779 3779 659 1852 5817 7669 2860 10529.45 1134.639
9/30/70 1000 464 3243 4243 620 1593 5629 7222 2911 10133.39 1269.848
9/30/71 1000 465 3708 4708 0 1884 6659 8543 3936 12479.77 1322.010
9/30/72 1000 492 4200 5200 280 1880 6959 8839 4428 13267.48 1408.437
9/30/73 1000 528 4728 5728 437 1741 6866 8607 4626 13233.01 1517.547
9/30/74 1000 582 5310 6310 334 1204 4983 6187 3646 9833.90 1630.829
9/30/75 1000 821 6131 7131 0 1503 6222 7725 5443 13168.27 1748.774
9/30/76 1000 820 6951 7951 0 1964 8131 10095 8036 18131.80 1842.663
9/30/77 1000 932 7883 8883 295 1940 8346 10286 8883 19169.61 1972.182
9/30/78 1000 1034 8917 9917 671 2150 10050 12200 11027 23227.72 2156.706
9/30/79 1000 1174 10091 11091 733 2287 11588 13875 13059 26934.70 2350.323
9/30/80 1000 1361 11452 12452 987 2477 13799 16276 15711 31987.93 2577.593
9/30/81 1000 1677 13129 14129 2352 2357 15480 17837 16580 34417.36 2914.256
9/30/82 1000 2788 15917 16917 3045 2367 19014 21381 19710 41091.72 3464.732
9/30/83 1000 2730 18647 19647 1683 3042 26388 29430 28344 57774.99 3791.010
9/30/84 1000 2682 21329 22329 2452 2884 27449 30333 29631 59964.49 4149.792
CONTINUED ON NEXT PAGE
AMERICAN MUTUAL FUND, INC.
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/30/85 1000 3120 24449 25449 2942 3106 32799 35905 35183 71088.69 4568.682
9/30/86 1000 3482 27931 28931 3975 3713 43745 47458 45820 93278.44 5014.970
9/30/87 1000 4064 31995 32995 6181 4192 56459 60651 56171 116822.52 5562.977
9/30/88 1000 5146 37141 38141 3985 3711 54350 58061 54998 113059.66 6081.746
9/30/89 1000 6174 43315 44315 4118 4204 66517 70721 69341 140062.27 6650.630
9/30/90 1000 6813 50128 51128 5306 3633 62302 65935 66074 132009.81 7253.286
9/30/91 1000 7509 57637 58637 1468 4174 73239 77413 84141 161554.36 7726.177
9/30/92 1000 7028 64665 65665 5154 4317 81463 85780 94496 180276.06 8334.538
9/30/93 1000 7447 72112 73112 8169 4649 97000 101649 109854 211503.92 9081.319
9/30/94 1000 7936 80048 81048 10172 4311 100147 104458 109820 214278.42 9920.297
9/30/95 1000 8645 88693 89693 8716 4870 123816 128686 133927 262613.81 10762.861
TOTAL $ 79821
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/85 10000.00 17.09 5.75 % 585.138 16.110 9427
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/86 10000 457 457 10457 503 11188 591 11779 484 12263.74 641.409
10/31/87 10000 528 985 10985 783 10626 1335 11961 945 12906.00 710.683
10/31/88 10000 671 1656 11656 505 10919 1927 12846 1675 14521.96 778.240
10/31/89 10000 805 2461 12461 521 12013 2731 14744 2713 17457.87 850.359
10/31/90 10000 888 3349 13349 672 10480 2983 13463 3183 16646.06 929.428
10/31/91 10000 964 4313 14313 186 12276 3705 15981 4762 20743.51 988.728
10/31/92 10000 907 5220 15220 653 12458 4470 16928 5771 22699.14 1066.188
10/31/93 10000 952 6172 16172 1034 13581 6045 19626 7301 26927.94 1160.187
10/31/94 10000 1028 7200 17200 1288 12639 6915 19554 7844 27398.17 1268.434
10/31/95 10000 1117 8317 18317 1104 14143 9078 23221 10000 33221.59 1374.497
TOTAL $ 7249
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
DOW JONES INDUSTRIAL AVERAGE
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/85 10000.00 1374.31 0.00 % 7.276 1374.310 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/86 10000 496 496 10496 0 13664 0 13664 539 14203.75 7.564
10/31/87 10000 541 1037 11037 0 14506 0 14506 1055 15561.50 7.806
10/31/88 10000 605 1642 11642 0 15634 0 15634 1791 17425.55 8.110
10/31/89 10000 828 2470 12470 0 19246 0 19246 3115 22361.51 8.454
10/31/90 10000 870 3340 13340 0 17771 0 17771 3658 21429.00 8.774
10/31/91 10000 867 4207 14207 0 22332 0 22332 5529 27861.29 9.078
10/31/92 10000 900 5107 15107 0 23475 0 23475 6719 30194.75 9.359
10/31/93 10000 952 6059 16059 0 26781 0 26781 8681 35462.48 9.635
10/31/94 10000 1027 7086 17086 0 28437 0 28437 10276 38713.84 9.906
10/31/95 10000 1138 8224 18224 0 34602 0 34602 13799 48401.28 10.178
TOTAL $ 0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STANDARD & POOR'S 500 COMPOSITE INDEX
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/85 10000.00 189.82 0.00 % 52.681 189.820 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/86 10000 440 440 10440 0 12853 0 12853 464 13317.40 54.584
10/31/87 10000 478 918 10918 0 13265 0 13265 899 14164.19 56.254
10/31/88 10000 539 1457 11457 0 14697 0 14697 1586 16283.48 58.370
10/31/89 10000 632 2089 12089 0 17931 0 17931 2634 20565.23 60.422
10/31/90 10000 725 2814 12814 0 16015 0 16015 3000 19015.50 62.551
10/31/91 10000 778 3592 13592 0 20675 0 20675 4706 25381.96 64.674
10/31/92 10000 812 4404 14404 0 22057 0 22057 5861 27918.00 66.681
10/31/93 10000 844 5248 15248 0 24646 0 24646 7432 32078.17 68.568
10/31/94 10000 896 6144 16144 0 24884 0 24884 8413 33297.84 70.494
10/31/95 10000 967 7111 17111 0 30634 0 30634 11466 42100.60 72.400
TOTAL $ 0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE FIXED INCOME ACCOUNT
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/85 10000.00 10.00 0.00 % 1000.000 10.000 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/86 10000 722 722 10722 0 10000 0 10000 721 10721.72 1072.172
10/31/87 10000 683 1405 11405 0 10000 0 10000 1404 11404.04 1140.404
10/31/88 10000 736 2141 12141 0 10000 0 10000 2139 12139.94 1213.994
10/31/89 10000 881 3022 13022 0 10000 0 10000 3021 13021.55 1302.155
10/31/90 10000 946 3968 13968 0 10000 0 10000 3967 13967.56 1396.756
10/31/91 10000 889 4857 14857 0 10000 0 10000 4857 14857.87 1485.787
10/31/92 10000 687 5544 15544 0 10000 0 10000 5544 15544.63 1554.463
10/31/93 10000 530 6074 16074 0 10000 0 10000 6075 16075.51 1607.551
10/31/94 10000 510 6584 16584 0 10000 0 10000 6586 16586.25 1658.625
10/31/95 10000 523 7107 17107 0 10000 0 10000 7108 17108.13 1710.813
TOTAL $ 0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE FIXED INCOME ACCOUNT
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/84 10000.00 10.00 0.00 % 1000.000 10.000 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/85 10000 846 846 10846 0 10000 0 10000 846 10846.84 1084.684
10/31/86 10000 783 1629 11629 0 10000 0 10000 1629 11629.67 1162.967
10/31/87 10000 740 2369 12369 0 10000 0 10000 2369 12369.76 1236.976
10/31/88 10000 799 3168 13168 0 10000 0 10000 3167 13167.98 1316.798
10/31/89 10000 956 4124 14124 0 10000 0 10000 4124 14124.25 1412.425
10/31/90 10000 1027 5151 15151 0 10000 0 10000 5150 15150.37 1515.037
10/31/91 10000 966 6117 16117 0 10000 0 10000 6116 16116.09 1611.609
10/31/92 10000 745 6862 16862 0 10000 0 10000 6861 16861.00 1686.100
10/31/93 10000 577 7439 17439 0 10000 0 10000 7436 17436.84 1743.684
10/31/94 10000 554 7993 17993 0 10000 0 10000 7990 17990.84 1799.084
TOTAL $ 0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE FIXED INCOME ACCOUNT
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/83 10000.00 10.00 0.00 % 1000.000 10.000 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/84 10000 947 947 10947 0 10000 0 10000 946 10946.87 1094.687
10/31/85 10000 927 1874 11874 0 10000 0 10000 1873 11873.89 1187.389
10/31/86 10000 857 2731 12731 0 10000 0 10000 2730 12730.85 1273.085
10/31/87 10000 809 3540 13540 0 10000 0 10000 3541 13541.02 1354.102
10/31/88 10000 874 4414 14414 0 10000 0 10000 4414 14414.82 1441.482
10/31/89 10000 1046 5460 15460 0 10000 0 10000 5461 15461.64 1546.164
10/31/90 10000 1123 6583 16583 0 10000 0 10000 6584 16584.91 1658.491
10/31/91 10000 1057 7640 17640 0 10000 0 10000 7642 17642.07 1764.207
10/31/92 10000 815 8455 18455 0 10000 0 10000 8457 18457.52 1845.752
10/31/93 10000 631 9086 19086 0 10000 0 10000 9087 19087.88 1908.788
TOTAL $ 0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE FIXED INCOME ACCOUNT
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/82 10000.00 10.00 0.00 % 1000.000 10.000 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/83 10000 960 960 10960 0 10000 0 10000 959 10959.66 1095.966
10/31/84 10000 1038 1998 11998 0 10000 0 10000 1997 11997.40 1199.740
10/31/85 10000 1016 3014 13014 0 10000 0 10000 3013 13013.39 1301.339
10/31/86 10000 940 3954 13954 0 10000 0 10000 3952 13952.59 1395.259
10/31/87 10000 887 4841 14841 0 10000 0 10000 4840 14840.51 1484.051
10/31/88 10000 958 5799 15799 0 10000 0 10000 5798 15798.17 1579.817
10/31/89 10000 1147 6946 16946 0 10000 0 10000 6945 16945.45 1694.545
10/31/90 10000 1231 8177 18177 0 10000 0 10000 8176 18176.52 1817.652
10/31/91 10000 1158 9335 19335 0 10000 0 10000 9335 19335.12 1933.512
10/31/92 10000 895 10230 20230 0 10000 0 10000 10228 20228.83 2022.883
TOTAL $ 0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE FIXED INCOME ACCOUNT
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/81 10000.00 10.00 0.00 % 1000.000 10.000 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/82 10000 1089 1089 11089 0 10000 0 10000 1088 11088.83 1108.883
10/31/83 10000 1064 2153 12153 0 10000 0 10000 2152 12152.99 1215.299
10/31/84 10000 1151 3304 13304 0 10000 0 10000 3303 13303.74 1330.374
10/31/85 10000 1126 4430 14430 0 10000 0 10000 4430 14430.37 1443.037
10/31/86 10000 1041 5471 15471 0 10000 0 10000 5471 15471.83 1547.183
10/31/87 10000 985 6456 16456 0 10000 0 10000 6456 16456.44 1645.644
10/31/88 10000 1061 7517 17517 0 10000 0 10000 7518 17518.37 1751.837
10/31/89 10000 1273 8790 18790 0 10000 0 10000 8790 18790.58 1879.058
10/31/90 10000 1366 10156 20156 0 10000 0 10000 10155 20155.71 2015.571
10/31/91 10000 1285 11441 21441 0 10000 0 10000 11440 21440.47 2144.047
TOTAL $ 0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE FIXED INCOME ACCOUNT
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/80 10000.00 10.00 0.00 % 1000.000 10.000 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/81 10000 1047 1047 11047 0 10000 0 10000 1046 11046.39 1104.639
10/31/82 10000 1204 2251 12251 0 10000 0 10000 2249 12249.15 1224.915
10/31/83 10000 1176 3427 13427 0 10000 0 10000 3424 13424.65 1342.465
10/31/84 10000 1271 4698 14698 0 10000 0 10000 4695 14695.80 1469.580
10/31/85 10000 1245 5943 15943 0 10000 0 10000 5940 15940.30 1594.030
10/31/86 10000 1151 7094 17094 0 10000 0 10000 7090 17090.75 1709.075
10/31/87 10000 1086 8180 18180 0 10000 0 10000 8178 18178.39 1817.839
10/31/88 10000 1172 9352 19352 0 10000 0 10000 9351 19351.43 1935.143
10/31/89 10000 1405 10757 20757 0 10000 0 10000 10756 20756.75 2075.675
10/31/90 10000 1508 12265 22265 0 10000 0 10000 12264 22264.71 2226.471
TOTAL $ 0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE FIXED INCOME ACCOUNT
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/79 10000.00 10.00 0.00 % 1000.000 10.000 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/80 10000 854 854 10854 0 10000 0 10000 854 10854.02 1085.402
10/31/81 10000 1135 1989 11989 0 10000 0 10000 1989 11989.78 1198.978
10/31/82 10000 1306 3295 13295 0 10000 0 10000 3295 13295.26 1329.526
10/31/83 10000 1276 4571 14571 0 10000 0 10000 4571 14571.16 1457.116
10/31/84 10000 1379 5950 15950 0 10000 0 10000 5950 15950.87 1595.087
10/31/85 10000 1350 7300 17300 0 10000 0 10000 7301 17301.66 1730.166
10/31/86 10000 1249 8549 18549 0 10000 0 10000 8550 18550.35 1855.035
10/31/87 10000 1181 9730 19730 0 10000 0 10000 9730 19730.87 1973.087
10/31/88 10000 1273 11003 21003 0 10000 0 10000 11004 21004.10 2100.410
10/31/89 10000 1526 12529 22529 0 10000 0 10000 12529 22529.44 2252.944
TOTAL $ 0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE FIXED INCOME ACCOUNT
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/78 10000.00 10.00 0.00 % 1000.000 10.000 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/79 10000 718 718 10718 0 10000 0 10000 717 10717.51 1071.751
10/31/80 10000 915 1633 11633 0 10000 0 10000 1632 11632.81 1163.281
10/31/81 10000 1218 2851 12851 0 10000 0 10000 2850 12850.05 1285.005
10/31/82 10000 1398 4249 14249 0 10000 0 10000 4249 14249.20 1424.920
10/31/83 10000 1368 5617 15617 0 10000 0 10000 5616 15616.64 1561.664
10/31/84 10000 1479 7096 17096 0 10000 0 10000 7095 17095.34 1709.534
10/31/85 10000 1448 8544 18544 0 10000 0 10000 8543 18543.04 1854.304
10/31/86 10000 1338 9882 19882 0 10000 0 10000 9881 19881.32 1988.132
10/31/87 10000 1266 11148 21148 0 10000 0 10000 11146 21146.53 2114.653
10/31/88 10000 1364 12512 22512 0 10000 0 10000 12511 22511.11 2251.111
TOTAL $ 0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE FIXED INCOME ACCOUNT
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/77 10000.00 10.00 0.00 % 1000.000 10.000 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/78 10000 635 635 10635 0 10000 0 10000 634 10634.56 1063.456
10/31/79 10000 763 1398 11398 0 10000 0 10000 1397 11397.60 1139.760
10/31/80 10000 973 2371 12371 0 10000 0 10000 2370 12370.98 1237.098
10/31/81 10000 1294 3665 13665 0 10000 0 10000 3665 13665.46 1366.546
10/31/82 10000 1488 5153 15153 0 10000 0 10000 5153 15153.39 1515.339
10/31/83 10000 1455 6608 16608 0 10000 0 10000 6607 16607.61 1660.761
10/31/84 10000 1572 8180 18180 0 10000 0 10000 8180 18180.14 1818.014
10/31/85 10000 1540 9720 19720 0 10000 0 10000 9719 19719.72 1971.972
10/31/86 10000 1423 11143 21143 0 10000 0 10000 11142 21142.94 2114.294
10/31/87 10000 1347 12490 22490 0 10000 0 10000 12488 22488.45 2248.845
TOTAL $ 0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE FIXED INCOME ACCOUNT
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/76 10000.00 10.00 0.00 % 1000.000 10.000 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/77 10000 612 612 10612 0 10000 0 10000 612 10612.07 1061.207
10/31/78 10000 673 1285 11285 0 10000 0 10000 1285 11285.48 1128.548
10/31/79 10000 810 2095 12095 0 10000 0 10000 2095 12095.23 1209.523
10/31/80 10000 1033 3128 13128 0 10000 0 10000 3128 13128.18 1312.818
10/31/81 10000 1373 4501 14501 0 10000 0 10000 4501 14501.89 1450.189
10/31/82 10000 1579 6080 16080 0 10000 0 10000 6080 16080.90 1608.090
10/31/83 10000 1543 7623 17623 0 10000 0 10000 7624 17624.13 1762.413
10/31/84 10000 1669 9292 19292 0 10000 0 10000 9292 19292.92 1929.292
10/31/85 10000 1634 10926 20926 0 10000 0 10000 10926 20926.74 2092.674
10/31/86 10000 1510 12436 22436 0 10000 0 10000 12437 22437.06 2243.706
TOTAL $ 0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/94 1000.00 22.92 5.75 % 43.630 21.600 942
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/95 1000 39 39 1039 38 1055 46 1101 41 1142.71 47.278
TOTAL $ 38
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/90 1000.00 19.00 5.75 % 52.632 17.910 943
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/91 1000 54 54 1054 11 1104 12 1116 58 1174.67 55.990
10/31/92 1000 51 105 1105 37 1121 52 1173 112 1285.41 60.376
10/31/93 1000 54 159 1159 59 1222 123 1345 179 1524.85 65.698
10/31/94 1000 59 218 1218 73 1137 188 1325 226 1551.48 71.828
10/31/95 1000 63 281 1281 62 1272 286 1558 323 1881.25 77.834
TOTAL $ 242
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/85 1000.00 17.09 5.75 % 58.514 16.110 943
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/86 1000 46 46 1046 50 1119 59 1178 48 1226.36 64.140
10/31/87 1000 52 98 1098 78 1063 133 1196 94 1290.58 71.067
10/31/88 1000 66 164 1164 50 1092 193 1285 167 1452.20 77.824
10/31/89 1000 81 245 1245 52 1201 273 1474 271 1745.77 85.035
10/31/90 1000 89 334 1334 67 1048 298 1346 318 1664.56 92.940
10/31/91 1000 97 431 1431 19 1228 370 1598 476 2074.29 98.870
10/31/92 1000 91 522 1522 65 1246 447 1693 576 2269.88 106.617
10/31/93 1000 95 617 1617 103 1358 604 1962 730 2692.75 116.017
10/31/94 1000 102 719 1719 129 1264 691 1955 784 2739.74 126.840
10/31/95 1000 112 831 1831 110 1414 908 2322 1000 3322.09 137.447
TOTAL $ 723
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/90 2000.00 19.00 5.75 % 105.263 17.910 1885
ANNUAL INVESTMENTS OF $ 2000.00 -- SAME DAY AS INITIAL INVESTMENT
DIVIDENDS AND CAPITAL GAINS REINVESTED
RIGHT OF ACCUMULATION DISCOUNT REFLECTED WHERE APPLICABLE IN THIS ILLUSTRATION
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/91 2000 109 109 2109 21 2208 24 2232 117 2349.30 111.978
10/31/92 4000 184 293 4293 133 4154 169 4323 310 4633.47 217.636
10/31/93 6000 273 566 6566 297 6583 521 7104 628 7732.71 333.163
10/31/94 8000 366 932 8932 460 7881 945 8826 959 9785.36 453.026
10/31/95 10000 476 1408 11408 470 10927 1629 12556 1594 14150.69 585.465
TOTAL $ 1381
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/85 2000.00 17.09 5.75 % 117.028 16.110 1885
ANNUAL INVESTMENTS OF $ 2000.00 -- SAME DAY AS INITIAL INVESTMENT
DIVIDENDS AND CAPITAL GAINS REINVESTED
RIGHT OF ACCUMULATION DISCOUNT REFLECTED WHERE APPLICABLE IN THIS ILLUSTRATION
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/86 2000 91 91 2091 101 2238 118 2356 96 2452.77 128.283
10/31/87 4000 186 277 4277 277 3915 386 4301 263 4564.61 251.355
10/31/88 6000 336 613 6613 252 5960 674 6634 622 7256.95 388.904
10/31/89 8000 506 1119 9119 328 8631 1126 9757 1233 10990.02 535.315
10/31/90 10000 655 1774 11774 495 9174 1425 10599 1677 12276.52 685.456
10/31/91 12000 820 2594 14594 158 12955 1849 14804 2843 17647.68 841.167
10/31/92 14000 854 3448 17448 614 15059 2545 17604 3770 21374.18 1003.954
10/31/93 16000 975 4423 20423 1060 18472 3975 22447 5145 27592.19 1188.806
10/31/94 18000 1125 5548 23548 1410 18945 5111 24056 5935 29991.60 1388.500
10/31/95 20000 1300 6848 26848 1284 23308 7278 30586 8065 38651.70 1599.160
TOTAL $ 5979
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/75 2000.00 8.34 5.75 % 239.808 7.860 1885
ANNUAL INVESTMENTS OF $ 2000.00 -- SAME DAY AS INITIAL INVESTMENT
DIVIDENDS AND CAPITAL GAINS REINVESTED
RIGHT OF ACCUMULATION DISCOUNT REFLECTED WHERE APPLICABLE IN THIS ILLUSTRATION
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/76 2000 113 113 2113 40 2233 40 2273 113 2386.54 256.342
10/31/77 4000 219 332 4332 161 3985 201 4186 316 4502.21 499.690
10/31/78 6000 361 693 6693 250 6065 455 6520 682 7202.15 773.593
10/31/79 8000 517 1210 9210 425 8487 917 9404 1229 10633.21 1069.739
10/31/80 10000 745 1955 11955 627 12365 1715 14080 2243 16323.27 1377.491
10/31/81 12000 980 2935 14935 630 14419 2381 16800 3239 20039.99 1671.392
10/31/82 14000 1762 4697 18697 1883 17541 4896 22437 5546 27983.47 2169.261
10/31/83 16000 1836 6533 22533 1111 22724 7005 29729 8437 38166.38 2529.250
10/31/84 18000 1956 8489 26489 1699 23761 8460 32221 10200 42421.39 2911.557
10/31/85 20000 2312 10801 30801 2129 28356 11783 40139 13738 53877.04 3344.323
10/31/86 22000 2707 13508 35508 2978 35921 17480 53401 19176 72577.49 3795.894
10/31/87 24000 3204 16712 40712 4753 35932 21304 57236 21152 78388.53 4316.549
10/31/88 26000 4179 20891 46891 3139 38883 25346 64229 26123 90352.15 4842.023
10/31/89 28000 5112 26003 54003 3313 44881 31764 76645 34269 110914.72 5402.568
10/31/90 30000 5740 31743 61743 4342 40838 31591 72429 35168 107597.67 6007.687
10/31/91 32000 6342 38085 70085 1223 50098 38393 88491 47997 136488.05 6505.627
10/31/92 34000 6050 44135 78135 4354 52797 43702 96499 54968 151467.88 7114.508
10/31/93 36000 6434 50569 86569 6989 59663 55560 115223 66752 181975.85 7840.407
10/31/94 38000 7014 57583 95583 8795 57321 60514 117835 69282 187117.41 8662.843
10/31/95 40000 7707 65290 105290 7614 66301 76962 143263 85966 229229.49 9484.050
TOTAL $ 56455
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/65 2000.00 11.24 5.75 % 177.936 10.590 1884
ANNUAL INVESTMENTS OF $ 2000.00 -- SAME DAY AS INITIAL INVESTMENT
DIVIDENDS AND CAPITAL GAINS REINVESTED
RIGHT OF ACCUMULATION DISCOUNT REFLECTED WHERE APPLICABLE IN THIS ILLUSTRATION
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/66 2000 53 53 2053 124 1665 116 1781 49 1830.79 195.597
10/31/67 4000 123 176 4176 253 3888 380 4268 174 4442.95 433.459
10/31/68 6000 215 391 6391 333 6257 791 7048 420 7468.69 672.249
10/31/69 8000 321 712 8712 530 6984 1153 8137 672 8809.65 924.412
10/31/70 10000 432 1144 11144 606 7175 1524 8699 974 9673.50 1254.669
10/31/71 12000 548 1692 13692 327 10294 2073 12367 1623 13990.38 1597.075
10/31/72 14000 662 2354 16354 578 12555 2718 15273 2321 17594.14 1948.410
10/31/73 16000 788 3142 19142 490 13465 3015 16480 2932 19412.92 2305.573
10/31/74 18000 1241 4383 22383 0 12087 2374 14461 3479 17940.41 2705.944
10/31/75 20000 1376 5759 25759 0 16566 2814 19380 5553 24933.04 3172.143
10/31/76 22000 1599 7358 29358 564 21855 3909 25764 8191 33955.26 3647.182
10/31/77 24000 1841 9199 33199 1353 22974 5137 28111 9667 37778.75 4192.980
10/31/78 26000 2245 11444 37444 1554 25687 6849 32536 12188 44724.75 4803.947
10/31/79 28000 2653 14097 42097 2180 29437 9524 38961 15580 54541.70 5487.093
10/31/80 30000 3359 17456 47456 2828 37371 14158 51529 22085 73614.30 6212.177
10/31/81 32000 4068 21524 53524 2613 39744 17003 56747 26372 83119.66 6932.415
10/31/82 34000 6831 28355 62355 7305 44817 27346 72163 36362 108525.60 8412.837
10/31/83 36000 6792 35147 71147 4110 54682 36715 91397 49746 141143.39 9353.439
10/31/84 38000 6986 42133 80133 6068 54661 41510 96171 55368 151539.01 10400.756
10/31/85 40000 8010 50143 90143 7373 62572 54309 116881 69739 186620.25 11584.125
10/31/86 42000 9150 59293 101293 10065 76555 76271 152826 92474 245300.02 12829.499
10/31/87 44000 10638 69931 113931 15775 74544 88044 162588 97589 260177.85 14326.974
10/31/88 46000 13642 83573 129573 10248 78600 101751 180351 114597 294948.21 15806.442
10/31/89 48000 16451 100024 148024 10660 88622 124425 213047 143874 356921.97 17385.386
10/31/90 50000 18251 118275 168275 13809 79013 120888 199901 142282 342183.64 19105.731
10/31/91 52000 19928 138203 190203 3843 94841 145968 240809 188033 428842.59 20440.543
10/31/92 54000 18831 157034 211034 13552 98221 162883 261104 210302 471406.57 22142.159
10/31/93 56000 19854 176888 232888 21567 109205 202002 311207 250334 561541.49 24193.946
10/31/94 58000 21492 198380 256380 26949 103454 214976 318430 254911 573341.85 26543.604
10/31/95 60000 23453 221833 281833 23172 117956 268698 386654 310927 697581.39 28861.456
TOTAL $ 188829
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/65 10000.00 11.24 5.75 % 889.680 10.590 9422
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/66 10000 267 267 10267 620 8327 578 8905 248 9153.80 977.970
10/31/67 10000 302 569 10569 623 9119 1258 10377 567 10944.56 1067.762
10/31/68 10000 372 941 10941 577 9884 2019 11903 1016 12919.17 1162.842
10/31/69 10000 443 1384 11384 733 8479 2387 10866 1302 12168.20 1276.831
10/31/70 10000 491 1875 11875 689 6859 2604 9463 1543 11006.06 1427.505
10/31/71 10000 521 2396 12396 312 7794 3283 11077 2244 13321.59 1520.730
10/31/72 10000 555 2951 12951 485 8034 3872 11906 2857 14763.05 1634.889
10/31/73 10000 598 3549 13549 371 7491 3975 11466 3246 14712.72 1747.354
10/31/74 10000 857 4406 14406 0 5899 3130 9029 3363 12392.88 1869.213
10/31/75 10000 861 5267 15267 0 6993 3710 10703 4881 15584.73 1982.790
10/31/76 10000 930 6197 16197 328 8283 4729 13012 6720 19732.47 2119.492
10/31/77 10000 1014 7211 17211 745 8016 5323 13339 7460 20799.96 2308.542
10/31/78 10000 1178 8389 18389 815 8283 6308 14591 8863 23454.03 2519.230
10/31/79 10000 1334 9723 19723 1097 8843 7847 16690 10755 27445.62 2761.129
10/31/80 10000 1633 11356 21356 1375 10543 10719 21262 14527 35789.90 3020.245
10/31/81 10000 1928 13284 23284 1238 10667 12114 22781 16608 39389.37 3285.185
10/31/82 10000 3164 16448 26448 3384 11477 17227 28704 21569 50273.25 3897.151
10/31/83 10000 3092 19540 29540 1871 13425 22303 35728 28512 64240.80 4257.177
10/31/84 10000 3137 22677 32677 2725 12963 24255 37218 30824 68042.09 4670.013
10/31/85 10000 3552 26229 36229 3269 14333 30549 44882 37858 82740.14 5135.949
10/31/86 10000 4014 30243 40243 4417 17011 41441 58452 49190 107642.96 5629.862
10/31/87 10000 4632 34875 44875 6868 16157 46153 62310 50970 113280.23 6237.898
10/31/88 10000 5896 40771 50771 4429 16601 52300 68901 58563 127464.00 6830.868
10/31/89 10000 7062 47833 57833 4577 18265 62898 81163 72070 153233.39 7463.877
10/31/90 10000 7792 55625 65625 5896 15934 60141 76075 70032 146107.85 8157.892
10/31/91 10000 8460 64085 74085 1632 18665 72300 90965 91107 182072.54 8678.386
10/31/92 10000 7959 72044 82044 5728 18941 79606 98547 100690 199237.93 9358.287
10/31/93 10000 8356 80400 90400 9078 20649 97068 117717 118638 236355.55 10183.350
10/31/94 10000 9015 89415 99415 11304 19217 101654 120871 119611 240482.87 11133.466
10/31/95 10000 9804 99219 109219 9686 21504 125513 147017 144580 291597.13 12064.424
TOTAL $ 84872
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/66 10000.00 9.93 5.75 % 1007.049 9.360 9426
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/67 10000 311 311 10311 641 10322 644 10966 303 11269.97 1099.509
10/31/68 10000 383 694 10694 594 11188 1372 12560 743 13303.30 1197.417
10/31/69 10000 457 1151 11151 754 9597 1852 11449 1081 12530.00 1314.795
10/31/70 10000 506 1657 11657 710 7764 2191 9955 1378 11333.30 1469.948
10/31/71 10000 537 2194 12194 321 8822 2824 11646 2071 13717.68 1565.945
10/31/72 10000 572 2766 12766 500 9094 3413 12507 2694 15201.98 1683.497
10/31/73 10000 616 3382 13382 382 8479 3558 12037 3113 15150.15 1799.305
10/31/74 10000 883 4265 14265 0 6677 2801 9478 3283 12761.34 1924.787
10/31/75 10000 886 5151 15151 0 7915 3321 11236 4812 16048.09 2041.742
10/31/76 10000 956 6107 16107 337 9376 4278 13654 6665 20319.13 2182.506
10/31/77 10000 1045 7152 17152 767 9074 4908 13982 7436 21418.38 2377.179
10/31/78 10000 1213 8365 18365 839 9376 5903 15279 8872 24151.36 2594.131
10/31/79 10000 1374 9739 19739 1130 10010 7449 17459 10802 28261.61 2843.220
10/31/80 10000 1682 11421 21421 1416 11934 10284 22218 14635 36853.97 3110.040
10/31/81 10000 1984 13405 23405 1275 12075 11712 23787 16773 40560.48 3382.859
10/31/82 10000 3258 16663 26663 3484 12991 16919 29910 21857 51767.93 4013.018
10/31/83 10000 3184 19847 29847 1926 15196 22007 37203 28947 66150.76 4383.748
10/31/84 10000 3230 23077 33077 2806 14673 24050 38723 31342 70065.06 4808.858
10/31/85 10000 3658 26735 36735 3366 16224 30433 46657 38543 85200.09 5288.646
10/31/86 10000 4134 30869 40869 4548 19255 41457 60712 50131 110843.29 5797.243
10/31/87 10000 4770 35639 45639 7073 18288 46371 64659 51989 116648.16 6423.357
10/31/88 10000 6071 41710 51710 4561 18792 52668 71460 59793 131253.64 7033.957
10/31/89 10000 7273 48983 58983 4713 20675 63463 84138 73651 157789.21 7685.787
10/31/90 10000 8025 57008 67008 6072 18036 60790 78826 71625 150451.83 8400.437
10/31/91 10000 8712 65720 75720 1680 21128 73116 94244 93241 187485.80 8936.406
10/31/92 10000 8196 73916 83916 5898 21440 80619 102059 103102 205161.53 9636.521
10/31/93 10000 8605 82521 92521 9347 23374 98478 121852 121530 243382.71 10486.114
10/31/94 10000 9283 91804 101804 11640 21752 103302 125054 122578 247632.72 11464.478
10/31/95 10000 10095 101899 111899 9974 24340 127708 152048 148218 300266.67 12423.114
TOTAL $ 86754
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/67 10000.00 10.88 5.75 % 919.118 10.250 9421
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/68 10000 320 320 10320 496 10211 564 10775 345 11120.68 1000.961
10/31/69 10000 381 701 10701 631 8759 1047 9806 668 10474.24 1099.081
10/31/70 10000 423 1124 11124 594 7086 1427 8513 960 9473.89 1228.780
10/31/71 10000 450 1574 11574 268 8051 1901 9952 1515 11467.07 1309.026
10/31/72 10000 478 2052 12052 418 8300 2379 10679 2028 12707.86 1407.294
10/31/73 10000 515 2567 12567 319 7739 2532 10271 2393 12664.54 1504.102
10/31/74 10000 738 3305 13305 0 6094 1994 8088 2579 10667.65 1608.997
10/31/75 10000 741 4046 14046 0 7224 2363 9587 3828 13415.16 1706.763
10/31/76 10000 800 4846 14846 282 8557 3087 11644 5341 16985.45 1824.431
10/31/77 10000 873 5719 15719 641 8281 3630 11911 5993 17904.35 1987.164
10/31/78 10000 1014 6733 16733 701 8557 4446 13003 7185 20188.93 2168.521
10/31/79 10000 1149 7882 17882 944 9136 5705 14841 8783 23624.83 2376.743
10/31/80 10000 1406 9288 19288 1184 10892 7974 18866 11941 30807.46 2599.786
10/31/81 10000 1659 10947 20947 1066 11020 9161 20181 13724 33905.84 2827.843
10/31/82 10000 2724 13671 23671 2913 11857 13466 25323 17951 43274.51 3354.613
10/31/83 10000 2661 16332 26332 1610 13869 17604 31473 23824 55297.56 3664.517
10/31/84 10000 2701 19033 29033 2345 13392 19339 32731 25838 58569.64 4019.879
10/31/85 10000 3058 22091 32091 2814 14807 24594 39401 31820 71221.50 4420.950
10/31/86 10000 3456 25547 35547 3802 17574 33651 51225 41432 92657.49 4846.103
10/31/87 10000 3987 29534 39534 5912 16691 37809 54500 43009 97509.97 5369.492
10/31/88 10000 5075 34609 44609 3812 17151 43047 60198 49521 109719.12 5879.910
10/31/89 10000 6080 40689 50689 3940 18869 51972 70841 61060 131901.06 6424.796
10/31/90 10000 6708 47397 57397 5076 16461 49876 66337 59430 125767.49 7022.194
10/31/91 10000 7283 54680 64680 1404 19283 60018 79301 77424 156725.36 7470.227
10/31/92 10000 6850 61530 71530 4930 19568 66274 85842 85659 171501.08 8055.476
10/31/93 10000 7193 68723 78723 7814 21333 81102 102435 101016 203451.39 8765.678
10/31/94 10000 7760 76483 86483 9730 19853 85220 105073 101931 207004.10 9583.523
10/31/95 10000 8439 84922 94922 8338 22215 105486 127701 123301 251002.48 10384.877
TOTAL $ 71984
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/68 10000.00 11.79 5.75 % 848.176 11.110 9423
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/69 10000 323 323 10323 534 8083 478 8561 314 8875.46 931.318
10/31/70 10000 360 683 10683 503 6539 877 7416 611 8027.80 1041.219
10/31/71 10000 381 1064 11064 227 7430 1234 8664 1052 9716.74 1109.217
10/31/72 10000 406 1470 11470 354 7659 1628 9287 1481 10768.14 1192.485
10/31/73 10000 436 1906 11906 271 7142 1783 8925 1806 10731.44 1274.518
10/31/74 10000 624 2530 12530 0 5623 1404 7027 2012 9039.35 1363.401
10/31/75 10000 628 3158 13158 0 6667 1665 8332 3035 11367.48 1446.244
10/31/76 10000 678 3836 13836 239 7897 2215 10112 4280 14392.81 1545.952
10/31/77 10000 740 4576 14576 544 7642 2688 10330 4841 15171.43 1683.844
10/31/78 10000 859 5435 15435 594 7897 3367 11264 5843 17107.29 1837.518
10/31/79 10000 975 6410 16410 800 8431 4406 12837 7181 20018.73 2013.957
10/31/80 10000 1191 7601 17601 1003 10051 6248 16299 9805 26104.99 2202.953
10/31/81 10000 1406 9007 19007 903 10170 7247 17417 11313 28730.43 2396.199
10/31/82 10000 2307 11314 21314 2468 10941 10855 21796 14873 36669.04 2842.561
10/31/83 10000 2255 13569 23569 1364 12799 14268 27067 19789 46856.91 3105.163
10/31/84 10000 2287 15856 25856 1987 12358 15761 28119 21510 49629.54 3406.283
10/31/85 10000 2590 18446 28446 2384 13664 20147 33811 26539 60350.23 3746.135
10/31/86 10000 2928 21374 31374 3222 16217 27692 43909 34605 78514.20 4106.391
10/31/87 10000 3379 24753 34753 5010 15403 31257 46660 35965 82625.98 4549.889
10/31/88 10000 4300 29053 39053 3230 15827 35674 51501 41470 92971.53 4982.397
10/31/89 10000 5151 34204 44204 3338 17413 43157 60570 51197 111767.62 5444.112
10/31/90 10000 5684 39888 49888 4301 15191 41493 56684 49886 106570.27 5950.322
10/31/91 10000 6172 46060 56060 1190 17795 49955 67750 65052 132802.73 6329.968
10/31/92 10000 5805 51865 61865 4178 18058 55242 73300 72023 145323.05 6825.883
10/31/93 10000 6096 57961 67961 6621 19686 67724 87410 84986 172396.45 7427.680
10/31/94 10000 6576 64537 74537 8245 18321 71283 89604 85802 175406.90 8120.690
10/31/95 10000 7150 71687 81687 7065 20500 88345 108845 103844 212689.33 8799.724
TOTAL $ 60575
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/69 10000.00 10.11 5.75 % 989.120 9.530 9426
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/70 10000 380 380 10380 534 7626 521 8147 379 8526.03 1105.841
10/31/71 10000 404 784 10784 241 8665 844 9509 810 10319.81 1178.061
10/31/72 10000 430 1214 11214 376 8932 1248 10180 1256 11436.45 1266.495
10/31/73 10000 463 1677 11677 287 8328 1446 9774 1623 11397.46 1353.617
10/31/74 10000 664 2341 12341 0 6558 1138 7696 1904 9600.37 1448.019
10/31/75 10000 667 3008 13008 0 7774 1350 9124 2948 12072.98 1536.003
10/31/76 10000 720 3728 13728 254 9209 1857 11066 4220 15286.10 1641.901
10/31/77 10000 787 4515 14515 577 8912 2375 11287 4826 16113.05 1788.352
10/31/78 10000 913 5428 15428 631 9209 3080 12289 5880 18169.06 1951.564
10/31/79 10000 1034 6462 16462 850 9832 4151 13983 7278 21261.22 2138.956
10/31/80 10000 1265 7727 17727 1065 11721 6004 17725 10000 27725.27 2339.685
10/31/81 10000 1494 9221 19221 959 11860 7058 18918 11595 30513.66 2544.926
10/31/82 10000 2451 11672 21672 2621 12760 10842 23602 15343 38945.04 3018.995
10/31/83 10000 2395 14067 24067 1449 14926 14350 29276 20489 49765.24 3297.895
10/31/84 10000 2430 16497 26497 2111 14411 15963 30374 22335 52709.95 3617.704
10/31/85 10000 2751 19248 29248 2532 15935 20540 36475 27621 64096.05 3978.650
10/31/86 10000 3110 22358 32358 3422 18912 28393 47305 36082 83387.43 4361.267
10/31/87 10000 3588 25946 35946 5321 17962 32231 50193 37561 87754.40 4832.291
10/31/88 10000 4567 30513 40513 3431 18457 36895 55352 43390 98742.08 5291.644
10/31/89 10000 5471 35984 45984 3545 20307 44742 65049 53655 118704.77 5782.015
10/31/90 10000 6038 42022 52022 4568 17715 43115 60830 52354 113184.86 6319.646
10/31/91 10000 6554 48576 58576 1264 20752 51938 72690 68355 141045.52 6722.856
10/31/92 10000 6166 54742 64742 4437 21058 57538 78596 75746 154342.96 7249.552
10/31/93 10000 6474 61216 71216 7032 22957 70692 93649 89447 183096.73 7888.700
10/31/94 10000 6984 68200 78200 8756 21365 74557 95922 90372 186294.06 8624.725
10/31/95 10000 7594 75794 85794 7504 23907 92542 116449 109441 225890.60 9345.908
TOTAL $ 63767
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/70 10000.00 8.18 5.75 % 1222.494 7.710 9425
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/71 10000 446 446 10446 267 10709 278 10987 421 11408.40 1302.329
10/31/72 10000 475 921 10921 416 11039 705 11744 898 12642.83 1400.092
10/31/73 10000 512 1433 11433 318 10293 969 11262 1337 12599.72 1496.404
10/31/74 10000 734 2167 12167 0 8105 763 8868 1745 10613.07 1600.764
10/31/75 10000 736 2903 12903 0 9609 904 10513 2833 13346.51 1698.029
10/31/76 10000 797 3700 13700 281 11381 1357 12738 4160 16898.55 1815.097
10/31/77 10000 869 4569 14569 638 11015 1952 12967 4845 17812.72 1976.995
10/31/78 10000 1007 5576 15576 698 11381 2709 14090 5995 20085.63 2157.425
10/31/79 10000 1143 6719 16719 939 12152 3846 15998 7505 23503.96 2364.583
10/31/80 10000 1398 8117 18117 1177 14487 5752 20239 10410 30649.86 2586.486
10/31/81 10000 1650 9767 19767 1060 14658 6907 21565 12167 33732.40 2813.378
10/31/82 10000 2711 12478 22478 2898 15770 11022 26792 16261 43053.16 3337.454
10/31/83 10000 2647 15125 25125 1602 18447 14736 33183 21831 55014.74 3645.775
10/31/84 10000 2686 17811 27811 2333 17812 16558 34370 23900 58270.11 3999.321
10/31/85 10000 3042 20853 30853 2800 19694 21502 41196 29661 70857.27 4398.341
10/31/86 10000 3439 24292 34292 3783 23374 29959 53333 38850 92183.62 4821.319
10/31/87 10000 3967 28259 38259 5882 22200 34273 56473 40538 97011.28 5342.031
10/31/88 10000 5049 33308 43308 3793 22812 39392 62204 46953 109157.98 5849.838
10/31/89 10000 6047 39355 49355 3919 25098 47927 73025 58201 131226.45 6391.936
10/31/90 10000 6674 46029 56029 5050 21895 46324 68219 56905 125124.26 6986.279
10/31/91 10000 7246 53275 63275 1397 25648 55849 81497 74426 155923.82 7432.022
10/31/92 10000 6816 60091 70091 4905 26027 62016 88043 82580 170623.96 8014.277
10/31/93 10000 7157 67248 77248 7774 28374 76414 104788 97622 202410.86 8720.847
10/31/94 10000 7720 74968 84968 9680 26406 80807 107213 98732 205945.42 9534.510
10/31/95 10000 8395 83363 93363 8295 29548 100497 130045 119673 249718.78 10331.766
TOTAL $ 69905
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/71 10000.00 9.29 5.75 % 1076.426 8.760 9429
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/72 10000 394 394 10394 343 9720 345 10065 384 10449.80 1157.231
10/31/73 10000 422 816 10816 263 9064 580 9644 770 10414.18 1236.838
10/31/74 10000 608 1424 11424 0 7137 456 7593 1179 8772.10 1323.092
10/31/75 10000 609 2033 12033 0 8461 541 9002 2029 11031.40 1403.486
10/31/76 10000 657 2690 12690 232 10022 878 10900 3067 13967.31 1500.248
10/31/77 10000 718 3408 13408 527 9699 1377 11076 3646 14722.93 1634.065
10/31/78 10000 834 4242 14242 577 10022 1995 12017 4584 16601.55 1783.196
10/31/79 10000 945 5187 15187 776 10700 2918 13618 5808 19426.94 1954.421
10/31/80 10000 1157 6344 16344 973 12756 4443 17199 8134 25333.31 2137.832
10/31/81 10000 1365 7709 17709 877 12906 5394 18300 9581 27881.11 2325.364
10/31/82 10000 2240 9949 19949 2395 13886 8771 22657 12928 35585.05 2758.531
10/31/83 10000 2188 12137 22137 1324 16243 11783 28026 17445 45471.72 3013.368
10/31/84 10000 2221 14358 24358 1929 15684 13303 28987 19175 48162.39 3305.586
10/31/85 10000 2514 16872 26872 2314 17341 17349 34690 23876 58566.17 3635.392
10/31/86 10000 2842 19714 29714 3126 20581 24261 44842 31351 76193.20 3985.000
10/31/87 10000 3278 22992 32992 4862 19548 27851 47399 32784 80183.41 4415.386
10/31/88 10000 4174 27166 37166 3135 20086 32069 52155 38068 90223.12 4835.108
10/31/89 10000 4999 32165 42165 3240 22099 39075 61174 47289 108463.52 5283.172
10/31/90 10000 5516 37681 47681 4174 19279 37818 57097 46322 103419.83 5774.418
10/31/91 10000 5989 43670 53670 1155 22583 45610 68193 60683 128876.78 6142.840
10/31/92 10000 5632 49302 59302 4054 22917 50700 73617 67409 141026.98 6624.095
10/31/93 10000 5915 55217 65217 6425 24984 62550 87534 79766 167300.02 7208.101
10/31/94 10000 6381 61598 71598 8001 23251 66223 89474 80747 170221.46 7880.623
10/31/95 10000 6940 68538 78538 6856 26017 82430 108447 97954 206401.75 8539.584
TOTAL $ 57558
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/72 10000.00 9.58 5.75 % 1043.841 9.030 9426
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/73 10000 382 382 10382 237 8789 232 9021 372 9393.75 1115.647
10/31/74 10000 548 930 10930 0 6921 183 7104 808 7912.57 1193.450
10/31/75 10000 550 1480 11480 0 8205 217 8422 1528 9950.49 1265.966
10/31/76 10000 593 2073 12073 209 9718 470 10188 2410 12598.72 1353.246
10/31/77 10000 648 2721 12721 476 9405 931 10336 2944 13280.29 1473.950
10/31/78 10000 751 3472 13472 520 9718 1478 11196 3778 14974.84 1608.468
10/31/79 10000 852 4324 14324 700 10376 2289 12665 4858 17523.37 1762.914
10/31/80 10000 1043 5367 15367 878 12370 3599 15969 6881 22850.99 1928.354
10/31/81 10000 1231 6598 16598 791 12516 4452 16968 8181 25149.18 2097.513
10/31/82 10000 2020 8618 18618 2160 13466 7467 20933 11165 32098.27 2488.238
10/31/83 10000 1974 10592 20592 1194 15752 10108 25860 15156 41016.23 2718.107
10/31/84 10000 2003 12595 22595 1740 15209 11497 26706 16737 43443.27 2981.693
10/31/85 10000 2267 14862 24862 2087 16816 15094 31910 20917 52827.64 3279.183
10/31/86 10000 2563 17425 27425 2820 19958 21224 41182 27545 68727.51 3594.535
10/31/87 10000 2957 20382 30382 4385 18956 24496 43452 28874 72326.76 3982.751
10/31/88 10000 3764 24146 34146 2828 19478 28283 47761 33621 81382.74 4361.347
10/31/89 10000 4510 28656 38656 2922 21430 34538 55968 41867 97835.88 4765.508
10/31/90 10000 4975 33631 43631 3765 18695 33495 52190 41096 93286.40 5208.621
10/31/91 10000 5402 39033 49033 1042 21900 40418 62318 53931 116249.01 5540.944
10/31/92 10000 5082 44115 54115 3657 22223 44997 67220 59988 127208.67 5975.043
10/31/93 10000 5336 49451 59451 5796 24228 55620 79848 71059 150907.38 6501.826
10/31/94 10000 5755 55206 65206 7217 22547 58989 81536 72006 153542.56 7108.452
10/31/95 10000 6260 61466 71466 6184 25230 73519 98749 87428 186177.76 7702.845
TOTAL $ 51608
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/73 10000.00 8.93 5.75 % 1119.821 8.420 9429
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/74 10000 549 549 10549 0 7424 0 7424 518 7942.18 1197.916
10/31/75 10000 551 1100 11100 0 8802 0 8802 1185 9987.73 1270.703
10/31/76 10000 596 1696 11696 210 10426 214 10640 2005 12645.87 1358.310
10/31/77 10000 650 2346 12346 478 10090 685 10775 2554 13329.98 1479.465
10/31/78 10000 755 3101 13101 522 10426 1226 11652 3378 15030.88 1614.488
10/31/79 10000 855 3956 13956 703 11131 2022 13153 4435 17588.96 1769.513
10/31/80 10000 1047 5003 15003 881 13270 3284 16554 6382 22936.54 1935.573
10/31/81 10000 1236 6239 16239 794 13427 4136 17563 7680 25243.30 2105.363
10/31/82 10000 2028 8267 18267 2169 14446 7137 21583 10635 32218.38 2497.549
10/31/83 10000 1981 10248 20248 1199 16898 9728 26626 14543 41169.68 2728.276
10/31/84 10000 2011 12259 22259 1746 16316 11136 27452 16153 43605.80 2992.848
10/31/85 10000 2276 14535 24535 2095 18040 14704 32744 20281 53025.24 3291.449
10/31/86 10000 2573 17108 27108 2831 21411 20773 42184 26800 68984.60 3607.981
10/31/87 10000 2969 20077 30077 4402 20336 24084 44420 28177 72597.32 3997.650
10/31/88 10000 3778 23855 33855 2838 20896 27872 48768 32919 81687.19 4377.663
10/31/89 10000 4526 28381 38381 2933 22990 34098 57088 41113 98201.89 4783.336
10/31/90 10000 4993 33374 43374 3779 20056 33124 53180 40455 93635.36 5228.105
10/31/91 10000 5422 38796 48796 1046 23494 39987 63481 53202 116683.86 5561.671
10/31/92 10000 5101 43897 53897 3671 23841 44576 68417 59267 127684.54 5997.395
10/31/93 10000 5355 49252 59252 5817 25991 55185 81176 70295 151471.92 6526.149
10/31/94 10000 5777 55029 65029 7244 24188 58611 82799 71317 154116.95 7135.044
10/31/95 10000 6283 61312 71312 6207 27066 73125 100191 86683 186874.25 7731.661
TOTAL $ 51565
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/74 10000.00 7.03 5.75 % 1422.475 6.630 9431
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/75 10000 655 655 10655 0 11181 0 11181 679 11860.02 1508.909
10/31/76 10000 707 1362 11362 249 13243 254 13497 1519 15016.45 1612.938
10/31/77 10000 771 2133 12133 567 12817 814 13631 2197 15828.81 1756.805
10/31/78 10000 896 3029 13029 620 13243 1456 14699 3149 17848.57 1917.140
10/31/79 10000 1015 4044 14044 835 14139 2401 16540 4346 20886.19 2101.226
10/31/80 10000 1244 5288 15288 1046 16856 3900 20756 6480 27236.19 2298.413
10/31/81 10000 1467 6755 16755 942 17055 4912 21967 8008 29975.41 2500.034
10/31/82 10000 2408 9163 19163 2575 18350 8475 26825 11433 38258.06 2965.741
10/31/83 10000 2353 11516 21516 1424 21465 11552 33017 15870 48887.40 3239.722
10/31/84 10000 2387 13903 23903 2073 20725 13224 33949 17831 51780.18 3553.890
10/31/85 10000 2703 16606 26606 2488 22916 17460 40376 22589 62965.44 3908.469
10/31/86 10000 3056 19662 29662 3361 27198 24668 51866 30050 81916.52 4284.337
10/31/87 10000 3525 23187 33187 5227 25832 28599 54431 31775 86206.48 4747.053
10/31/88 10000 4487 27674 37674 3370 26543 33097 59640 37360 97000.32 5198.302
10/31/89 10000 5374 33048 43048 3483 29203 40490 69693 46917 116610.89 5680.024
10/31/90 10000 5930 38978 48978 4487 25477 39333 64810 46378 111188.31 6208.169
10/31/91 10000 6438 45416 55416 1242 29844 47484 77328 61229 138557.50 6604.266
10/31/92 10000 6057 51473 61473 4359 30284 52932 83216 68404 151620.40 7121.672
10/31/93 10000 6360 57833 67833 6908 33016 65531 98547 81319 179866.96 7749.546
10/31/94 10000 6860 64693 74693 8602 30725 69599 100324 82683 183007.86 8472.586
10/31/95 10000 7460 72153 82153 7371 34381 86833 121214 100691 221905.91 9181.047
TOTAL $ 61229
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/75 10000.00 8.34 5.75 % 1199.041 7.860 9424
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/76 10000 562 562 10562 198 11163 202 11365 567 11932.69 1281.707
10/31/77 10000 614 1176 11176 451 10803 647 11450 1128 12578.25 1396.032
10/31/78 10000 713 1889 11889 493 11163 1157 12320 1863 14183.21 1523.438
10/31/79 10000 807 2696 12696 663 11918 1908 13826 2771 16597.00 1669.718
10/31/80 10000 987 3683 13683 831 14209 3099 17308 4334 21642.96 1826.410
10/31/81 10000 1166 4849 14849 749 14376 3903 18279 5540 23819.66 1986.627
10/31/82 10000 1914 6763 16763 2046 15468 6735 22203 8198 30401.39 2356.697
10/31/83 10000 1870 8633 18633 1131 18094 9179 27273 11574 38847.89 2574.413
10/31/84 10000 1897 10530 20530 1648 17470 10508 27978 13168 41146.61 2824.064
10/31/85 10000 2148 12678 22678 1977 19317 13874 33191 16843 50034.86 3105.826
10/31/86 10000 2428 15106 25106 2671 22926 19602 42528 22566 65094.15 3404.506
10/31/87 10000 2801 17907 27907 4154 21775 22726 44501 24002 68503.13 3772.199
10/31/88 10000 3565 21472 31472 2678 22374 26300 48674 28406 77080.35 4130.780
10/31/89 10000 4271 25743 35743 2768 24616 32175 56791 35872 92663.67 4513.574
10/31/90 10000 4712 30455 40455 3566 21475 31256 52731 35623 88354.67 4933.259
10/31/91 10000 5117 35572 45572 987 25156 37732 62888 47215 110103.31 5248.013
10/31/92 10000 4814 40386 50386 3464 25528 42062 67590 52893 120483.60 5659.164
10/31/93 10000 5054 45440 55440 5489 27830 52073 79903 63026 142929.45 6158.098
10/31/94 10000 5451 50891 60891 6835 25899 55306 81205 64220 145425.33 6732.654
10/31/95 10000 5929 56820 66820 5857 28981 69001 97982 78353 176335.23 7295.624
TOTAL $ 48656
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/76 10000.00 9.88 5.75 % 1012.146 9.310 9423
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/77 10000 485 485 10485 356 9119 356 9475 457 9932.86 1102.426
10/31/78 10000 562 1047 11047 389 9423 754 10177 1023 11200.28 1203.038
10/31/79 10000 637 1684 11684 524 10061 1336 11397 1709 13106.42 1318.553
10/31/80 10000 780 2464 12464 657 11994 2244 14238 2853 17091.16 1442.292
10/31/81 10000 921 3385 13385 591 12136 2877 15013 3797 18810.04 1568.811
10/31/82 10000 1511 4896 14896 1616 13057 5097 18154 5853 24007.55 1861.050
10/31/83 10000 1477 6373 16373 893 15273 6990 22263 8414 30677.62 2032.977
10/31/84 10000 1498 7871 17871 1301 14747 8049 22796 9696 32492.89 2230.123
10/31/85 10000 1695 9566 19566 1561 16306 10680 26986 12525 39511.82 2452.627
10/31/86 10000 1918 11484 21484 2109 19352 15152 34504 16899 51403.95 2688.491
10/31/87 10000 2212 13696 23696 3280 18381 17635 36016 18079 54095.99 2978.854
10/31/88 10000 2816 16512 26512 2115 18887 20449 39336 21533 60869.29 3262.020
10/31/89 10000 3372 19884 29884 2186 20779 25056 45835 27340 73175.24 3564.308
10/31/90 10000 3721 23605 33605 2816 18128 24375 42503 27269 69772.49 3895.728
10/31/91 10000 4041 27646 37646 779 21235 29437 50672 36275 86947.12 4144.286
10/31/92 10000 3801 31447 41447 2735 21549 32851 54400 40744 95144.26 4468.965
10/31/93 10000 3991 35438 45438 4335 23492 40724 64216 48653 112869.46 4862.967
10/31/94 10000 4306 39744 49744 5398 21862 43304 65166 49674 114840.42 5316.686
10/31/95 10000 4681 44425 54425 4626 24464 54075 78539 60710 139249.58 5761.257
TOTAL $ 38267
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/77 10000.00 9.56 5.75 % 1046.025 9.010 9425
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/78 10000 534 534 10534 369 9738 366 10104 523 10627.26 1141.489
10/31/79 10000 605 1139 11139 497 10397 895 11292 1143 12435.89 1251.096
10/31/80 10000 741 1880 11880 623 12395 1685 14080 2136 16216.80 1368.506
10/31/81 10000 873 2753 12753 561 12542 2280 14822 3025 17847.75 1488.553
10/31/82 10000 1433 4186 14186 1533 13494 4353 17847 4932 22779.34 1765.840
10/31/83 10000 1400 5586 15586 848 15785 6066 21851 7257 29108.19 1928.972
10/31/84 10000 1421 7007 17007 1235 15241 7090 22331 8499 30830.57 2116.031
10/31/85 10000 1610 8617 18617 1481 16851 9530 26381 11109 37490.40 2327.151
10/31/86 10000 1820 10437 20437 2001 20000 13659 33659 15115 48774.14 2550.949
10/31/87 10000 2098 12535 22535 3112 18996 16052 35048 16280 51328.46 2826.457
10/31/88 10000 2671 15206 25206 2007 19519 18703 38222 19533 57755.26 3095.137
10/31/89 10000 3200 18406 28406 2074 21475 23004 44479 24952 69431.64 3381.960
10/31/90 10000 3532 21938 31938 2672 18734 22456 41190 25012 66202.99 3696.426
10/31/91 10000 3834 25772 35772 739 21946 27144 49090 33408 82498.96 3932.267
10/31/92 10000 3606 29378 39378 2595 22270 30371 52641 37635 90276.80 4240.338
10/31/93 10000 3786 33164 43164 4113 24278 37770 62048 45047 107095.16 4614.182
10/31/94 10000 4085 37249 47249 5122 22594 40278 62872 46093 108965.30 5044.690
10/31/95 10000 4442 41691 51691 4389 25282 50401 75683 56442 132125.72 5466.517
TOTAL $ 35971
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/78 10000.00 9.88 5.75 % 1012.146 9.310 9423
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/79 10000 536 536 10536 441 10061 447 10508 518 11026.76 1109.332
10/31/80 10000 656 1192 11192 552 11994 1081 13075 1304 14379.22 1213.436
10/31/81 10000 775 1967 11967 498 12136 1603 13739 2086 15825.37 1319.881
10/31/82 10000 1272 3239 13239 1359 13057 3410 16467 3731 20198.18 1565.750
10/31/83 10000 1242 4481 14481 752 15273 4853 20126 5683 25809.91 1710.398
10/31/84 10000 1261 5742 15742 1095 14747 5779 20526 6811 27337.12 1876.261
10/31/85 10000 1427 7169 17169 1313 16306 7888 24194 9048 33242.36 2063.461
10/31/86 10000 1612 8781 18781 1775 19352 11445 30797 12450 43247.51 2261.899
10/31/87 10000 1861 10642 20642 2760 18381 13600 31981 13531 45512.37 2506.188
10/31/88 10000 2368 13010 23010 1779 18887 15933 34820 16390 51210.95 2744.424
10/31/89 10000 2837 15847 25847 1839 20779 19682 40461 21103 61564.28 2998.747
10/31/90 10000 3131 18978 28978 2369 18128 19287 37415 21286 58701.46 3277.580
10/31/91 10000 3400 22378 32378 656 21235 23337 44572 28578 73150.95 3486.699
10/31/92 10000 3198 25576 35576 2301 21549 26188 47737 32310 80047.42 3759.860
10/31/93 10000 3357 28933 38933 3647 23492 32681 56173 38787 94960.07 4091.343
10/31/94 10000 3622 32555 42555 4541 21862 34961 56823 39795 96618.29 4473.069
10/31/95 10000 3938 36493 46493 3892 24464 43848 68312 48842 117154.33 4847.097
TOTAL $ 31569
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/79 10000.00 10.55 5.75 % 947.867 9.940 9422
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/80 10000 560 560 10560 472 11232 468 11700 586 12286.31 1036.819
10/31/81 10000 662 1222 11222 425 11365 909 12274 1247 13521.95 1127.769
10/31/82 10000 1086 2308 12308 1162 12227 2418 14645 2613 17258.25 1337.849
10/31/83 10000 1061 3369 13369 642 14303 3567 17870 4183 22053.19 1461.444
10/31/84 10000 1076 4445 14445 935 13810 4378 18188 5170 23358.13 1603.166
10/31/85 10000 1220 5665 15665 1122 15270 6121 21391 7012 28403.81 1763.117
10/31/86 10000 1379 7044 17044 1516 18123 9044 27167 9785 36952.67 1932.671
10/31/87 10000 1590 8634 18634 2358 17213 10922 28135 10752 38887.90 2141.404
10/31/88 10000 2023 10657 20657 1520 17687 12897 30584 13173 43757.03 2344.964
10/31/89 10000 2425 13082 23082 1571 19460 16028 35488 17115 52603.36 2562.268
10/31/90 10000 2675 15757 25757 2024 16976 15792 32768 17389 50157.22 2800.515
10/31/91 10000 2903 18660 28660 560 19886 19134 39020 23483 62503.51 2979.195
10/31/92 10000 2732 21392 31392 1966 20180 21558 41738 26658 68396.19 3212.597
10/31/93 10000 2870 24262 34262 3116 22000 27032 49032 32106 81138.26 3495.832
10/31/94 10000 3095 27357 37357 3880 20474 29043 49517 33038 82555.11 3821.996
10/31/95 10000 3365 30722 40722 3325 22910 36537 59447 40655 100102.06 4141.583
TOTAL $ 26594
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/80 10000.00 12.57 5.75 % 795.545 11.850 9427
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/81 10000 507 507 10507 326 9539 334 9873 502 10375.32 865.331
10/31/82 10000 833 1340 11340 891 10263 1464 11727 1515 13242.19 1026.526
10/31/83 10000 815 2155 12155 493 12005 2279 14284 2637 16921.32 1121.360
10/31/84 10000 827 2982 12982 718 11591 2918 14509 3413 17922.60 1230.103
10/31/85 10000 935 3917 13917 861 12816 4208 17024 4770 21794.12 1352.832
10/31/86 10000 1058 4975 14975 1163 15211 6360 21571 6782 28353.64 1482.931
10/31/87 10000 1220 6195 16195 1809 14447 7830 22277 7561 29838.53 1643.091
10/31/88 10000 1553 7748 17748 1167 14845 9330 24175 9399 33574.56 1799.280
10/31/89 10000 1861 9609 19609 1206 16333 11676 28009 12353 40362.35 1966.018
10/31/90 10000 2053 11662 21662 1553 14248 11574 25822 12663 38485.42 2148.823
10/31/91 10000 2229 13891 23891 430 16691 14046 30737 17221 47958.69 2285.924
10/31/92 10000 2097 15988 25988 1509 16937 15896 32833 19647 52480.13 2465.013
10/31/93 10000 2201 18189 28189 2391 18465 20038 38503 23754 62257.06 2682.338
10/31/94 10000 2375 20564 30564 2977 17184 21630 38814 24530 63344.22 2932.603
10/31/95 10000 2583 23147 33147 2551 19228 27302 46530 30277 76807.93 3177.821
TOTAL $ 20045
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/81 10000.00 12.72 5.75 % 786.164 11.990 9426
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/82 10000 756 756 10756 810 10142 1003 11145 885 12030.69 932.612
10/31/83 10000 740 1496 11496 448 11863 1689 13552 1821 15373.21 1018.768
10/31/84 10000 751 2247 12247 652 11454 2282 13736 2546 16282.88 1117.562
10/31/85 10000 850 3097 13097 782 12665 3415 16080 3720 19800.19 1229.062
10/31/86 10000 960 4057 14057 1057 15031 5294 20325 5434 25759.57 1347.258
10/31/87 10000 1108 5165 15165 1644 14277 6654 20931 6177 27108.59 1492.764
10/31/88 10000 1411 6576 16576 1060 14670 8004 22674 7828 30502.85 1634.665
10/31/89 10000 1690 8266 18266 1095 16140 10088 26228 10441 36669.62 1786.148
10/31/90 10000 1865 10131 20131 1411 14080 10062 24142 10822 34964.42 1952.229
10/31/91 10000 2024 12155 22155 390 16494 12229 28723 14847 43570.99 2076.787
10/31/92 10000 1905 14060 24060 1371 16737 13903 30640 17038 47678.78 2239.492
10/31/93 10000 2000 16060 26060 2172 18247 17617 35864 20697 56561.24 2436.934
10/31/94 10000 2158 18218 28218 2705 16981 19104 36085 21463 57548.94 2664.303
10/31/95 10000 2347 20565 30565 2318 19002 24192 43194 26586 69780.87 2887.086
TOTAL $ 17915
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/82 10000.00 13.69 5.75 % 730.460 12.900 9423
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/83 10000 580 580 10580 351 11023 403 11426 614 12040.93 797.941
10/31/84 10000 588 1168 11168 511 10643 899 11542 1211 12753.41 875.320
10/31/85 10000 665 1833 11833 613 11768 1693 13461 2047 15508.36 962.654
10/31/86 10000 751 2584 12584 828 13966 2982 16948 3228 20176.00 1055.230
10/31/87 10000 868 3452 13452 1287 13265 4105 17370 3862 21232.62 1169.197
10/31/88 10000 1105 4557 14557 830 13630 5132 18762 5129 23891.13 1280.339
10/31/89 10000 1324 5881 15881 858 14996 6651 21647 7074 28721.20 1398.987
10/31/90 10000 1461 7342 17342 1105 13083 6790 19873 7512 27385.64 1529.070
10/31/91 10000 1585 8927 18927 306 15325 8300 23625 10501 34126.66 1626.628
10/31/92 10000 1492 10419 20419 1074 15551 9592 25143 12201 37344.04 1754.065
10/31/93 10000 1567 11986 21986 1701 16954 12384 29338 14963 44301.18 1908.711
10/31/94 10000 1690 13676 23676 2119 15778 13647 29425 15649 45074.79 2086.796
10/31/95 10000 1837 15513 25513 1816 17655 17476 35131 19524 54655.40 2261.291
TOTAL $ 13399
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/83 10000.00 16.01 5.75 % 624.610 15.090 9425
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/84 10000 460 460 10460 400 9101 399 9500 483 9983.10 685.182
10/31/85 10000 521 981 10981 480 10062 989 11051 1088 12139.59 753.544
10/31/86 10000 589 1570 11570 648 11943 1934 13877 1916 15793.35 826.012
10/31/87 10000 679 2249 12249 1008 11343 2834 14177 2443 16620.45 915.223
10/31/88 10000 864 3113 13113 650 11655 3627 15282 3419 18701.50 1002.224
10/31/89 10000 1036 4149 14149 671 12823 4776 17599 4883 22482.36 1095.098
10/31/90 10000 1143 5292 15292 865 11187 4940 16127 5309 21436.93 1196.925
10/31/91 10000 1241 6533 16533 239 13104 6058 19162 7551 26713.65 1273.291
10/31/92 10000 1168 7701 17701 840 13298 7063 20361 8871 29232.13 1373.045
10/31/93 10000 1226 8927 18927 1332 14497 9209 23706 10972 34678.01 1494.098
10/31/94 10000 1323 10250 20250 1658 13492 10231 23723 11560 35283.56 1633.498
10/31/95 10000 1439 11689 21689 1421 15097 13174 28271 14512 42783.00 1770.087
TOTAL $ 10212
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/84 10000.00 15.46 5.75 % 646.831 14.570 9424
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/85 10000 492 492 10492 453 10420 517 10937 523 11460.15 711.369
10/31/86 10000 556 1048 11048 612 12367 1331 13698 1211 14909.39 779.780
10/31/87 10000 642 1690 11690 951 11746 2205 13951 1739 15690.19 863.997
10/31/88 10000 816 2506 12506 613 12070 2941 15011 2643 17654.73 946.127
10/31/89 10000 978 3484 13484 634 13279 3978 17257 3967 21224.02 1033.805
10/31/90 10000 1080 4564 14564 817 11585 4200 15785 4452 20237.10 1129.933
10/31/91 10000 1172 5736 15736 226 13571 5177 18748 6470 25218.53 1202.027
10/31/92 10000 1101 6837 16837 793 13771 6117 19888 7708 27596.10 1296.200
10/31/93 10000 1158 7995 17995 1257 15013 8093 23106 9631 32737.19 1410.478
10/31/94 10000 1248 9243 19243 1566 13972 9099 23071 10237 33308.86 1542.077
10/31/95 10000 1358 10601 20601 1342 15634 11811 27445 12943 40388.63 1671.023
TOTAL $ 9264
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/85 10000.00 17.09 5.75 % 585.138 16.110 9427
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/86 10000 457 457 10457 503 11188 591 11779 484 12263.74 641.409
10/31/87 10000 528 985 10985 783 10626 1335 11961 945 12906.00 710.683
10/31/88 10000 671 1656 11656 505 10919 1927 12846 1675 14521.96 778.240
10/31/89 10000 805 2461 12461 521 12013 2731 14744 2713 17457.87 850.359
10/31/90 10000 888 3349 13349 672 10480 2983 13463 3183 16646.06 929.428
10/31/91 10000 964 4313 14313 186 12276 3705 15981 4762 20743.51 988.728
10/31/92 10000 907 5220 15220 653 12458 4470 16928 5771 22699.14 1066.188
10/31/93 10000 952 6172 16172 1034 13581 6045 19626 7301 26927.94 1160.187
10/31/94 10000 1028 7200 17200 1288 12639 6915 19554 7844 27398.17 1268.434
10/31/95 10000 1117 8317 18317 1104 14143 9078 23221 10000 33221.59 1374.497
TOTAL $ 7249
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/86 10000.00 20.29 5.75 % 492.854 19.120 9423
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/87 10000 406 406 10406 601 8950 595 9545 371 9916.87 546.083
10/31/88 10000 516 922 10922 388 9197 1038 10235 923 11158.55 597.993
10/31/89 10000 618 1540 11540 401 10118 1611 11729 1685 13414.51 653.410
10/31/90 10000 682 2222 12222 516 8827 1867 10694 2096 12790.71 714.166
10/31/91 10000 741 2963 12963 143 10340 2349 12689 3250 15939.18 759.732
10/31/92 10000 697 3660 13660 501 10493 2929 13422 4019 17441.88 819.252
10/31/93 10000 732 4392 14392 795 11439 4094 15533 5158 20691.23 891.479
10/31/94 10000 790 5182 15182 990 10646 4801 15447 5605 21052.57 974.656
10/31/95 10000 859 6041 16041 848 11912 6402 18314 7213 25527.29 1056.156
TOTAL $ 5183
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/87 10000.00 19.27 5.75 % 518.941 18.160 9424
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/88 10000 490 490 10490 368 9683 406 10089 514 10603.94 568.271
10/31/89 10000 587 1077 11077 381 10654 892 11546 1201 12747.73 620.932
10/31/90 10000 649 1726 11726 491 9294 1216 10510 1644 12154.94 678.668
10/31/91 10000 704 2430 12430 136 10887 1579 12466 2680 15146.91 721.969
10/31/92 10000 663 3093 13093 477 11048 2121 13169 3405 16574.88 778.529
10/31/93 10000 695 3788 13788 755 12045 3168 15213 4449 19662.75 847.167
10/31/94 10000 751 4539 14539 940 11209 3890 15099 4907 20006.11 926.209
10/31/95 10000 816 5355 15355 806 12543 5331 17874 6384 24258.37 1003.656
TOTAL $ 4354
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/88 10000.00 19.80 5.75 % 505.051 18.660 9424
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/89 10000 523 523 10523 338 10369 396 10765 564 11329.56 551.854
10/31/90 10000 577 1100 11100 436 9045 735 9780 1022 10802.72 603.167
10/31/91 10000 626 1726 11726 121 10596 998 11594 1867 13461.84 641.651
10/31/92 10000 589 2315 12315 423 10753 1474 12227 2504 14731.00 691.921
10/31/93 10000 618 2933 12933 671 11722 2367 14089 3386 17475.34 752.923
10/31/94 10000 666 3599 13599 836 10909 3040 13949 3831 17780.47 823.170
10/31/95 10000 725 4324 14324 716 12207 4271 16478 5081 21559.69 892.002
TOTAL $ 3541
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/89 10000.00 21.78 5.75 % 459.137 20.530 9426
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/90 10000 479 479 10479 363 8223 324 8547 440 8987.76 501.829
10/31/91 10000 521 1000 11000 100 9633 494 10127 1073 11200.11 533.847
10/31/92 10000 489 1489 11489 352 9775 885 10660 1596 12256.04 575.671
10/31/93 10000 514 2003 12003 558 10657 1597 12254 2285 14539.30 626.424
10/31/94 10000 555 2558 12558 695 9917 2182 12099 2694 14793.19 684.870
10/31/95 10000 604 3162 13162 596 11097 3166 14263 3674 17937.48 742.138
TOTAL $ 2664
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/90 10000.00 19.00 5.75 % 526.316 17.910 9426
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/91 10000 546 546 10546 105 11042 119 11161 585 11746.62 559.896
10/31/92 10000 513 1059 11059 370 11205 524 11729 1125 12854.09 603.762
10/31/93 10000 539 1598 11598 586 12216 1234 13450 1798 15248.81 656.993
10/31/94 10000 581 2179 12179 729 11368 1879 13247 2268 15515.06 718.290
10/31/95 10000 633 2812 12812 625 12721 2861 15582 3230 18812.79 778.353
TOTAL $ 2415
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/91 10000.00 22.26 5.75 % 449.236 20.980 9425
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/92 10000 411 411 10411 297 9564 323 9887 426 10313.54 484.431
10/31/93 10000 434 845 10845 470 10427 884 11311 923 12234.92 527.140
10/31/94 10000 467 1312 11312 585 9704 1409 11113 1335 12448.56 576.322
10/31/95 10000 508 1820 11820 501 10858 2185 13043 2051 15094.48 624.513
TOTAL $ 1853
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/92 10000.00 22.59 5.75 % 442.674 21.290 9425
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/93 10000 394 394 10394 429 10274 486 10760 420 11180.28 481.701
10/31/94 10000 426 820 10820 535 9562 988 10550 825 11375.55 526.646
10/31/95 10000 465 1285 11285 458 10699 1662 12361 1432 13793.43 570.684
TOTAL $ 1422
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/93 10000.00 24.63 5.75 % 406.009 23.210 9423
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/94 10000 358 358 10358 451 8770 451 9221 367 9588.02 443.890
10/31/95 10000 390 748 10748 386 9813 974 10787 838 11625.94 481.007
TOTAL $ 837
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/94 10000.00 22.92 5.75 % 436.300 21.600 9424
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/95 10000 385 385 10385 380 10545 461 11006 421 11427.14 472.782
TOTAL $ 380
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
11/01/95 10000.00 25.64 5.75 % 390.016 24.170 9427
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/95 10000 0 0 10000 0 9427 0 9427 0 9426.69 390.016
TOTAL $ 0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN MUTUAL FUND, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
2/21/50 10000.00 10.63 5.75 % 940.734 10.020 9426
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/50 10000 247 247 10247 230 9548 225 9773 245 10018.18 987.013
10/31/51 10000 523 770 10770 488 10706 740 11446 787 12233.68 1075.016
10/31/52 10000 513 1283 11283 621 10536 1357 11893 1270 13163.53 1175.315
10/31/53 10000 550 1833 11833 483 10452 1829 12281 1794 14075.70 1266.940
10/31/54 10000 579 2412 12412 1092 13048 3378 16426 2835 19261.39 1388.709
10/31/55 10000 647 3059 13059 1928 15240 5871 21111 3939 25050.02 3092.595
10/31/56 10000 789 3848 13848 2452 16087 8658 24745 4906 29651.49 3468.011
10/31/57 10000 911 4759 14759 2611 13452 9685 23137 4913 28050.40 3923.133
10/31/58 10000 1010 5769 15769 1697 15936 13280 29216 6923 36139.81 4266.802
10/31/59 10000 1050 6819 16819 2765 16632 16623 33255 8233 41488.54 4693.274
10/31/60 10000 1210 8029 18029 2214 15052 17197 32249 8615 40864.54 5108.068
10/31/61 10000 1257 9286 19286 2724 18495 23965 42460 11888 54348.08 5528.798
10/31/62 10000 1372 10658 20658 2590 14638 21270 35908 10664 46572.24 5986.149
10/31/63 10000 1523 12181 22181 2452 17987 28625 46612 14676 61288.96 6410.979
10/31/64 10000 1697 13878 23878 3612 19360 34472 53832 17522 71354.81 6934.384
10/31/65 10000 1845 15723 25723 4554 19925 40082 60007 19911 79918.95 7546.643
10/31/66 10000 2271 17994 27994 5259 17611 40329 57940 19706 77646.29 8295.544
10/31/67 10000 2568 20562 30562 5284 19285 49467 68752 24084 92836.23 9057.193
10/31/68 10000 3154 23716 33716 4891 20903 59174 80077 29508 109585.75 9863.704
10/31/69 10000 3762 27478 37478 6214 17930 56314 74244 28971 103215.70 10830.609
10/31/70 10000 4168 31646 41646 5849 14506 51267 65773 27584 93357.98 12108.687
10/31/71 10000 4424 36070 46070 2643 16482 61005 77487 35512 112999.29 12899.462
10/31/72 10000 4711 40781 50781 4116 16990 67024 84014 41212 125226.23 13867.800
10/31/73 10000 5069 45850 55850 3147 15842 65585 81427 43372 124799.35 14821.775
10/31/74 10000 7273 53123 63123 0 12474 51642 64116 41005 105121.53 15855.435
10/31/75 10000 7300 60423 70423 0 14788 61223 76011 56185 132196.11 16818.843
10/31/76 10000 7881 68304 78304 2779 17516 75351 92867 74511 167378.77 17978.386
10/31/77 10000 8604 76908 86908 6321 16952 79251 96203 80230 176433.70 19581.987
10/31/78 10000 9989 86897 96897 6912 17516 88743 106259 92687 198946.53 21369.122
10/31/79 10000 11322 98219 108219 9305 18702 104186 122888 109916 232804.77 23421.003
10/31/80 10000 13854 112073 122073 11663 22295 135771 158066 145518 303584.28 25618.927
10/31/81 10000 16351 128424 138424 10504 22559 148139 170698 163418 334116.40 27866.255
10/31/82 10000 26841 155265 165265 28702 24271 194950 219221 207216 426437.71 33057.187
10/31/83 10000 26227 181492 191492 15867 28391 246296 274687 270229 544916.09 36111.073
10/31/84 10000 26606 208098 218098 23111 27413 260888 288301 288859 577160.04 39612.906
CONTINUED ON NEXT PAGE
AMERICAN MUTUAL FUND, INC.
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/31/85 10000 30124 238222 248222 27729 30310 320100 350410 351424 701834.79 43565.164
10/31/86 10000 34058 272280 282280 37466 35974 423882 459856 453214 913070.32 47754.724
10/31/87 10000 39285 311565 321565 58261 34167 460226 494393 466494 960887.84 52912.326
10/31/88 10000 50009 361574 371574 37568 35108 514255 549363 531836 1081199.98 57942.121
10/31/89 10000 59908 421482 431482 38821 38627 611229 649856 649930 1299786.29 63311.558
10/31/90 10000 66101 487583 497583 50016 33697 577926 611623 627721 1239344.51 69198.465
10/31/91 10000 71767 559350 569350 13840 39473 692684 732157 812254 1544411.31 73613.504
10/31/92 10000 67509 626859 636859 48585 40056 755828 795884 894130 1690014.85 79380.688
10/31/93 10000 70887 697746 707746 76999 43669 911212 954881 1049980 2004861.21 86379.199
10/31/94 10000 76471 774217 784217 95881 40640 944019 984659 1055211 2039870.76 94438.461
10/31/95 10000 83156 857373 867373 82161 45475 1156130 1201605 1271837 2473442.00 102335.209
TOTAL $ 752407
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> NOV-1-1994
<PERIOD-END> OCT-31-1995
<INVESTMENTS-AT-COST> 4,982,746
<INVESTMENTS-AT-VALUE> 6,566,267
<RECEIVABLES> 28,575
<ASSETS-OTHER> 1,558
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 6,596,400
<PAYABLE-FOR-SECURITIES> 37,421
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6,895
<TOTAL-LIABILITIES> 44,316
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 4,365,446
<SHARES-COMMON-STOCK> 271,030,873
<SHARES-COMMON-PRIOR> 249,885,686
<ACCUMULATED-NII-CURRENT> 41,899
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 290,187
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,583,521
<NET-ASSETS> 6,552,084
<DIVIDEND-INCOME> 156,273
<INTEREST-INCOME> 108,834
<OTHER-INCOME> 0
<EXPENSES-NET> 34,784
<NET-INVESTMENT-INCOME> 230,323
<REALIZED-GAINS-CURRENT> 305,112
<APPREC-INCREASE-CURRENT> 612,873
<NET-CHANGE-FROM-OPS> 1,148,308
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 220,251
<DISTRIBUTIONS-OF-GAINS> 217,473
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 31,087,225
<NUMBER-OF-SHARES-REDEEMED> 28,510,164
<SHARES-REINVESTED> 18,568,126
<NET-CHANGE-IN-ASSETS> 1,154,643
<ACCUMULATED-NII-PRIOR> 31,827
<ACCUMULATED-GAINS-PRIOR> 202,548
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 17,788
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 34,784
<AVERAGE-NET-ASSETS> 5,875,434
<PER-SHARE-NAV-BEGIN> 21.60
<PER-SHARE-NII> .87
<PER-SHARE-GAIN-APPREC> 3.41
<PER-SHARE-DIVIDEND> .84
<PER-SHARE-DISTRIBUTIONS> .87
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 24.17
<EXPENSE-RATIO> .006
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
