© 2015 American Funds Distributors, Inc. Figures are past results and are not predictive of results in future periods. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. Investing in an Uncertain Market AI-55756

Agenda © American Funds Distributors, Inc. 1Setting realistic expectations 2Three specific investment strategies 3Customizing your portfolio 4Staying the course AI-55757

© American Funds Distributors, Inc. Setting Realistic Expectations AI-55758

What Does History Show Us? The Stock Market (S&P 500 Index) Can Move in Three Directions © American Funds Distributors, Inc. Source: Standard & Poor’s 500 Index, 7/31/72–7/30/82, 8/12/82–12/31/99 and 10/9/07–3/9/09. FlatUpDown 1972– – – AI-55759

Markets Have Recovered The Benefits of Patience © American Funds Distributors, Inc. *Excludes the most recent decline in 2007–2009. Source: Capital Group. Market downturns are based on a decline of about 20% or more in the Dow Jones Industrial Average, excluding dividends and/or distributions. A new decline is considered to have begun only after the market has recovered 50% of the value lost in the previous decline. †Represents average of the annualized total returns of the Dow Jones Industrial Average with all distributions reinvested over the 10-year periods following the 11 bear markets. In 11 bear markets since 1956:* Average gain 10 years after market high Average gain 10 years after market low 7.8% † 12.1% † AI-55760

Long-Term Returns Average Annual Total Returns, 1/1/84–12/31/14 © American Funds Distributors, Inc. Sources: stocks — Ibbotson Large Company Stocks Index; bonds — Ibbotson Long-Term Corporate Bonds Index; cash equivalents — Ibbotson U.S. Treasury bills Index. Data from Ibbotson Associates. The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index. 11.3% 9.4% 3.7% AI-55761

Risk-Reward Connection Tolerance for Volatility © American Funds Distributors, Inc. High Medium Low Even wide swings won’t deter you from your strategy because you can look past them Wide swings keep you from getting a good night’s sleep,but some fluctuation is okay You have trouble with any downturn and want consistent returns, even if they’re low AI-55762

© American Funds Distributors, Inc. Three Specific Investment Strategies AI-55763

Strategies for Sound Investing © American Funds Distributors, Inc. Buy and hold Regular investing Diversification AI-55764

What’s Your Perspective? Focus on the Long Term, not the Bumps Along the Way © American Funds Distributors, Inc. Short-term bumps shown by Standard & Poor’s 500 Composite Index and reflected in monthly return percentages from 1/1/95 through 12/31/14. Long-term growth represented by a hypothetical $1,000 initial investment in the same index from 12/31/94 to 12/31/14. The market index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. Historical short-term bumps Historical long-term growth AI-55765

The Power of Compounding $200 Per Month Invested in the S&P 500, 1/1/95–12/31/14 © American Funds Distributors, Inc. Source: Thomson. Results based on S&P 500 Index, with dividends reinvested. Cumulative earnings equals year-end account value less cumulative investment. 5 years $23,222 $48,000 invested $24,000 invested $12,000 invested 10 years $34, years $114,427 Investment Earnings AI %52% 70% 30% 58%42%

Regular Investing © American Funds Distributors, Inc. Also known as dollar cost averaging Gradual approach Involves investing a fixed amount on a regular schedule AI-55767

Benefits of Regular Investing © American Funds Distributors, Inc. Encourages discipline Offers a systematic approach Keeps you investing through down markets Eases anxiety about daily market fluctuations AI-55768

Diversification: The Risk-Return Relationship Average Annual Total Returns, 12/31/84–12/31/14 © American Funds Distributors, Inc. Sources: Stocks — Ibbotson Large Company Stocks Index; bonds — Ibbotson Long-Term Corporate Bonds Index. Data from Ibbotson Associates. The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index. Volatility risk calculated using standard deviation (based on monthly returns), a measure of how returns over time have varied from the mean; a lower number signifies lower volatility. Return Volatility risk 100% bonds 20% stocks/ 80% bonds 40% stocks/ 60% bonds 80% stocks/ 20% bonds 100% stocks AI-55769

Diversification: The Mix Matters Number of Times Each Investment Was Best, 1995–2014 © American Funds Distributors, Inc. Based on calendar years. Sources: Stocks of issuers outside the U.S. — MSCI World ex USA Index; large U.S. stocks — Standard & Poor’s 500 Index; small U.S. stocks — Russell 2000 Index; U.S. bonds — Barclays U.S. Aggregate Index; cash equivalents — 30-day U.S. Treasury bills, Ibbotson Associates. Results for the MSCI ACWI ex USA reflect dividends gross of withholding taxes through December 31, 2000, and dividends net of withholding taxes thereafter. Stocks of issuers outside the U.S. Large U.S. stocks U.S. bonds Small U.S. stocks Cash equivalents AI-55770

© American Funds Distributors, Inc. Customizing Your Portfolio AI-55771

Objective: Buy a New Home Sample Portfolio — Accumulation Phase © American Funds Distributors, Inc. Sample portfolios were selected based on relevant factors such as age, time horizon, risk tolerance and investment goals, and are for illustrative purposes only. Please consider individual objectives, risk tolerance and time horizon when investing. Doug and Ellen Accumulation period: Five years Distribution period: One-time distribution AI % equity-income/ balanced 10% growth-and- income 80% bonds

Objective: Save for Toddler’s College Education Sample Portfolio — Accumulation Phase © American Funds Distributors, Inc. Sample portfolios were selected based on relevant factors such as age, time horizon, risk tolerance and investment goals, and are for illustrative purposes only. Please consider individual objectives, risk tolerance and time horizon when investing. Ricardo Accumulation period: 15 years Distribution period: 4 years AI % growth-and- income 25% growth 20% equity-income/ balanced 20% bonds

Objective: Invest for Retirement Sample Portfolio — Accumulation Phase © American Funds Distributors, Inc. Sample portfolios were selected based on relevant factors such as age, time horizon, risk tolerance and investment goals, and are for illustrative purposes only. Please consider individual objectives, risk tolerance and time horizon when investing. Janet Accumulation period: 20 years Distribution period: 20+ years AI % growth-and- income 45% growth 15% equity-income/ balanced

Objective: Live Off Investment Sample Portfolio — Distribution Phase © American Funds Distributors, Inc. Sample portfolios were selected based on relevant factors such as age, time horizon, risk tolerance and investment goals, and are for illustrative purposes only. Please consider individual objectives, risk tolerance and time horizon when investing. Tom Annual account withdrawals: 5% AI % growth-and- income 5% growth 15% equity-income/ balanced 60% bonds

Objective: Supplement Existing Income Sample Portfolio — Distribution Phase © American Funds Distributors, Inc. Sample portfolios were selected based on relevant factors such as age, time horizon, risk tolerance and investment goals, and are for illustrative purposes only. Please consider individual objectives, risk tolerance and time horizon when investing. Lori Annual account withdrawals: 3% AI % growth-and- income 15% growth 20% equity-income/ balanced 40% bonds

© American Funds Distributors, Inc. Staying the Course AI-55777

The Advantage of Staying the Course Growth of a Hypothetical $100,000 Investment (12/31/94−12/31/14) © American Funds Distributors, Inc. Source: Average equity and fixed-income investors — Dalbar. Dalbar uses data from the Investment Company Institute, Standard & Poor’s and Barclays index products to compare mutual fund investor behavior with an appropriate set of benchmarks. These behaviors are then used to simulate the “average investor.” Ending values for hypothetical equity and fixed-income investor investments are based on average annual total returns. The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index. AI $275,099 $654,752 $117,276 $333,296

Investing in an Uncertain Market © American Funds Distributors, Inc. 1Set realistic expectations 2Stick to sound investment strategies 3Customize your portfolio to suit your investment objective 4Invest for the long term and stay the course AI-55779

© American Funds Distributors, Inc. Investing in an Uncertain Market AI-55780

Prospectus Language Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing. © American Funds Distributors, Inc. AI-39093

Index Language Dow Jones Industrial Average is a price-weighted average of 30 actively traded industrial and service-oriented blue chip stocks. Barclays U.S. Aggregate Index represents the U.S. investment-grade fixed-rate bond market. MSCI World ex USA Index is a free float-adjusted market capitalization-weighted index that is designed to measure results of more than 20 developed equity markets, excluding the United States. Results reflect dividends gross of withholding taxes through December 31, 2000, and dividends net of withholding taxes thereafter. Russell 2000 Index measures the results of the 2,000 smallest companies in the Russell 3000 Index, which represent approximately 8% of the total market capitalization of the Russell 3000 Index. © American Funds Distributors, Inc. AI-44440

Index Language (cont.) Standard & Poor's 500 Composite Index is a market capitalization-weighted index based on the results of 500 widely held common stocks. Market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index. © American Funds Distributors, Inc. AI-44440

Balancing Risk Language The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. In addition, there are ongoing fees and expenses associated with owning bond fund shares, which is in contrast to owning individual bonds. Bond prices and a bond fund’s share price will generally move in the opposite direction of interest rates. Unlike mutual fund shares, investments in U.S. Treasuries are guaranteed by the U.S. government as to the payment of principal and interest. Regular investing neither ensures a profit nor protects against loss in a declining market. Investors should consider their willingness to keep investing when share prices are declining. Diversifying investments does not insure against market loss. 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. This meeting may have been funded in whole or in part by American Funds Distributors, Inc. © American Funds Distributors, Inc. AI-44440

© 2015 American Funds Distributors, Inc. AI-89026