Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in the prospectus. These risks may be heightened in connection with investments in developing countries. Small-company stocks entail additional risks, and they can fluctuate in price more than larger company stocks.
The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.
In the overall capture ratio chart, the S&P 500 Index was used as the comparative benchmark for capture ratio calculations for the following funds: AMCAP Fund® (AMCAP), American Mutual Fund® (AMF), The Growth Fund of America® (GFA), Fundamental Investors® (FI), The Investment Company of America® (ICA), Washington Mutual Investors FundSM (WMIF). MSCI ACWI was used for the following funds: The New Economy Fund® (NEF), New Perspective Fund® (NPF). MSCI ACWI ex USA was used for EuroPacific Growth Fund® (EUPAC). MSCI ACWI Small Cap was used for SMALLCAP World Fund® (SCWF). 70% MSCI ACWI/30% Bloomberg U.S. Aggregate Index blend was used for Capital Income Builder® (CIB). 65% S&P 500/35% Bloomberg U.S. Aggregate Index blend was used for The Income Fund of America® (IFA). 60% S&P 500/40% Bloomberg U.S. Aggregate Index blend was used for American Balanced Fund® (AMBAL).
Up (down) capture ratio is the ratio of a fund’s return during periods when the index was up (down), divided by the return of the index during those periods. For example, an up-capture ratio greater than 100 indicates the fund produced a higher return than the index during periods when the index was up. Conversely, during periods when the index was down, a down-capture ratio greater than 100 indicates the fund produced a lower return than the index.
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S&P 500 Index is a market capitalization-weighted index based on the results of approximately 500 widely held common stocks.
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