© 2011 American Funds Distributors, Inc.AI-99998 Figures are past results and are not predictive of results in future periods. Investments are not FDIC-insured,

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Presentation transcript:

© 2011 American Funds Distributors, Inc.AI 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. For financial professionals only. Not for use with the public.

© American Funds Distributors, Inc. Thank you AI A For financial professionals only. Not for use with the public.

© American Funds Distributors, Inc.AI A For financial professionals only. Not for use with the public.

© American Funds Distributors, Inc. Bring it all together AI A For financial professionals only. Not for use with the public.

© American Funds Distributors, Inc. Agenda Seize the opportunity American Funds … a global leader Take action with American Funds Global Balanced Fund AI A For financial professionals only. Not for use with the public.

© American Funds Distributors, Inc. Seize the opportunity AI A For financial professionals only. Not for use with the public.

Consumption, population and GDP growth © American Funds Distributors, Inc. Developed world Developing world Developing world Developed world 3.0% Developed world Developing world AI Share of world populationGDP growth -A Developed-world strength, developing-world growth Sources: The World Bank World Development Indicators (WDI) database and International Monetary Fund (IMF) World Economic Outlook (WEO) database. The developed world represents 33 countries comprising IMF’s group of advanced economies, and the developing world represents 150 countries in the group of emerging and developing; IMF’s group of the euro area constitutes 16 countries. Figures for consumption and population are as of 2009, and those for GDP are based on partially estimated data for Share of world consumption 2.7% 7.1% 84% 16% 25% 75% For financial professionals only. Not for use with the public.

Shanghai 1990 Shanghai 2010 © American Funds Distributors, Inc.AI A For financial professionals only. Not for use with the public.

© American Funds Distributors, Inc.AI A For financial professionals only. Not for use with the public.

Fixed-income opportunities have grown © American Funds Distributors, Inc.AI U.S. 2,952,439 5,196,41713,751,466 Non-U.S.1,671,284 7,150,62922,379,203 Outstanding debt securities (in millions) 64% 36% 42% 58% 38% 62% U.S. Non-U.S. -A Source: Barclays Capital Inc. Represents securities included in the Barclays Capital U.S. and Global Aggregate indexes as of December 31. For financial professionals only. Not for use with the public.

© American Funds Distributors, Inc.AI The benefits of balance Sources: Stocks — MSCI ACWI (All Country World Index); bonds — Barclays Capital Global Aggregate Index. All indexes are unmanaged, and their results assume reinvested distributions but do not reflect sales charges, commissions, account fees, expenses or taxes. * Weighted blend of 60% MSCI ACWI and 40% Barclays Capital Global Aggregate indexes. Assumes the blend is rebalanced annually. $35,000 30,000 25,000 20,000 15,000 10,000 5, – – – – – – – – – – – 2010 Market returns by asset class (1991–2010) MSCI ACWI Barclays Capital Global Aggregate Blend* Rolling 10-calendar-year returns are for a hypothetical $10,000 investment. -A For financial professionals only. Not for use with the public.

© American Funds Distributors, Inc.AI The benefits of balance GlobalGlobal stocksbondsBlend* As of December 31, year average annual return 7.79% 6.91%7.97% 20-year standard deviation † A Sources: Stocks — MSCI ACWI (All Country World Index); bonds — Barclays Capital Global Aggregate Index. All indexes are unmanaged, and their results assume reinvested distributions but do not reflect sales charges, commissions, account fees, expenses or taxes. *Weighted blend of 60% MSCI ACWI and 40% Barclays Capital Global Aggregate indexes. Assumes the blend is rebalanced annually. † Volatility is calculated using annualized standard deviation (based on monthly returns), a measure of how returns over time have varied from the mean. For financial professionals only. Not for use with the public.

© American Funds Distributors, Inc. American Funds … a global leader AI A For financial professionals only. Not for use with the public.

© American Funds Distributors, Inc. A global leader Top active manager, international stock funds Top 3 active manager, EM stock funds Top 3 active manager, U.S. stock funds Top 5 active manager, bond funds 50+ years investing outside U.S. Created MSCI indexes American Funds AI Source for top active manager: Morningstar, as of 12/31/10. -A For financial professionals only. Not for use with the public.

© American Funds Distributors, Inc. American Funds AI Our people, process and perspective American Funds portfolio counselors Years of experience Compensation influenced by results over Investment horizon American Funds Comparable equity funds American Funds Comparable equity funds 30% 76% 5.1 years 27 years 4 years 8 years Portfolio turnover rate Industry average Average years of experience and American Funds portfolio turnover rate as of 1/1/11. Source for comparable equity funds: Lipper, 12/31/10. -A For financial professionals only. Not for use with the public.

© American Funds Distributors, Inc.AI Douglas Upton Jeetu Panjabi Johnny Chan Carolyn Herzog -A For financial professionals only. Not for use with the public.

American Funds Global Balanced Fund SM © American Funds Distributors, Inc.AI Introducing -A For financial professionals only. Not for use with the public.

© American Funds Distributors, Inc. A natural fit AI Growth Primarily domestic funds Global funds Growth- and- income Balanced The Growth Fund of America Capital World Growth and Income Fund American Balanced Fund The Investment Company of America New Perspective Fund American Funds Global Balanced Fund ? -A For financial professionals only. Not for use with the public.

© American Funds Distributors, Inc.AI American Funds Global Balanced Fund *For more information about the fund’s underlying investments, please refer to the most current prospectus or statement of additional information. Objective Portfolio structure* Seeks the balanced accomplishment of three objectives: long-term growth of capital, conservation of principal and current income. Global Balanced Fund U.S. bonds Non-U.S. bonds Developing markets bonds U.S. stocks Developing markets stocks Non-U.S. stocks -A For financial professionals only. Not for use with the public.

© American Funds Distributors, Inc. Portfolio counselors and years of experience AI The whole is greater than the sum of its parts Eric Richter Washington, D.C. 19 years Mark Brett London 32 years David Riley Washington, D.C. 17 years Paul Flynn Geneva 15 years Robert Neithart Los Angeles 23 years -A For financial professionals only. Not for use with the public.

© American Funds Distributors, Inc.AI — Jim Rothenberg, Vice Chairman Capital Research and Management Company During the recent decline, there were very few places for investors to hide. That doesn’t mean that diversification was a bad idea. Some in the investment business are now saying that the answer is tactical asset allocation and market timing. I would caution investors that it’s highly unlikely that anybody can do those things consistently. I would say, beware of market timing and trading. Keep focused on the long term and stay with diversification. -A For financial professionals only. Not for use with the public.

Seize the opportunity American Funds … a global leader Take action with American Funds Global Balanced Fund Summary © American Funds Distributors, Inc.AI A For financial professionals only. Not for use with the public.

© American Funds Distributors, Inc. Ticker symbols A shares: GBLAX C shares: GBLCX F-1 shares: GBLEX 529-A shares: CBFAX R-3 shares: RGBCX AI A For financial professionals only. Not for use with the public.

Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in each fund’s prospectus and summary prospectus, which can be obtained from a financial professional and should be read carefully before investing. © American Funds Distributors, Inc.AI For financial professionals only. Not for use with the public.

© American Funds Distributors, Inc. Barclays Capital Global Aggregate Index represents the global investment-grade fixed- income markets. MSCI All Country World Index is a free-float-adjusted market-capitalization-weighted index that measures equity market results in the developed and emerging markets, consisting of 40 developed- and emerging-market country indexes. Indexes are unmanaged. Their results include reinvested dividends and/or distributions, but do not reflect the effect of sales charges, commissions, account fees, expenses or taxes. AI For financial professionals only. Not for use with the public.

© American Funds Distributors, Inc. If used after March 31, 2011, this presentation must be accompanied by a current American Funds quarterly statistical update. Equity investments are subject to market fluctuations. This meeting may have been funded in whole or in part by American Funds Distributors. Diversifying investments does not insure against market loss. Investing outside the United States involves additional 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. The return of principal in bond funds, as well as in funds with significant bond holdings, is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks that are associated with the underlying bonds owned by the fund(s). Bond prices and a bond fund’s share price will generally move in the opposite direction of interest rates. Bond ratings, which typically range from AAA/aaa (highest) to D (lowest), are assigned by credit rating agencies such as Standard & Poor’s, Moody’s and/or Fitch, as an indication of an issuer's creditworthiness. AI For financial professionals only. Not for use with the public.

© American Funds Distributors, Inc. Barclays Capital Global Aggregate ex U.S. Dollar Index represents the global investment-grade fixed-income markets, excluding U.S.-dollar-denominated fixed- income securities. Capital Research and Management Company manages equity assets through two investment divisions. These divisions make investment decisions independently. AI For financial professionals only. Not for use with the public.

© 2011 American Funds Distributors, Inc.AI For financial professionals only. Not for use with the public.