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Strengthen your practice with

SMAmerican Funds is introducing eight new funds of funds designed to help your clients pursue their investing goals. They can also be beneficial in managing your practice. Here are several case studies that show how you can use the American Funds Portfolio Series funds. Created by senior investment professionals who know and manage the American Funds, these eight new Portfolio Series funds are:

A fund of funds can be added to an account with a single-ticket purchase.

Aligned with investor objectives, the Portfolio Series funds offer clients a structured approach to pursuing specific investing goals, as well as broad diversification.

An oversight committee regularly reviews the Portfolio Series funds’ results and holdings to keep them aligned with their objectives. The committee also will determine whether they need to be rebalanced. For rebalancing, the intention is to keep the underlying fund allocations within a few percentage points of the target weighting. This will be accomplished in part through cash flows.

Example 1:The need Clients with significant assets in cash need a first step back into the market.

Consider Consider Rather than sitting in cash, clients willing to assume some principal risk could benefit from investing a portion of their assets in American Funds Tax-Exempt Preservation PortfolioSM (for tax-exempt investments) or American Funds Preservation PorfolioSM (for taxable assets).

American Funds Tax-Exempt Preservation Portfolio

American Funds Preservation Portfolio

LTEX 70%

TEBF 30%STBF 40%

BFA 20%

IBFA 40%

How it fits

CASH Preservation Preservation

Growth funds Growth-and-income funds Equity-income and Balanced funds Bond and Tax-exempt bond funds

Underlying fund allocations are as of 5/18/12. The Portfolio Series funds are actively monitored, and allocations will vary over time.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Example 3: The need Clients need to increase their allocation in securities based outside the United States

Consider Consider American Funds Global Growth PortfolioSM and American Funds Balanced PortfolioSM can help add meaningful exposure to companies outside the U.S.

American Funds Global Growth Portfolio American Funds Balanced Portfolio

WGI 30%

NPF 30%

NWF 20%

NEF 20%

BFA 25%

AMBAL 25%

WMIF 15%

WGI 15%

NPF 20%

Example 2:The need Plan for the income clients will need to help meet their expenses in retirement.

Consider Consider As investors live longer and face rising expenses, the income-oriented holdings of American Funds Income PortfolioSM

and American Funds Tax-Advantaged Income PortfolioSM seek to provide the income they need in retirement.

American Funds Income Portfolio American Funds Tax-Advantaged Income Portfolio

How it fits Five retirement realitiesPre-retirement Retirement

AMF 20%

CIB 20%

IFA 20%

AHIT 20%

GVT 20%

WGI 25%

WMIF 25%

AHIM 25%

TEBF 25%

How it fits

Non-U.S. equities

Example 5:The need Clients who tend to buy individual stocks should consider diversifying concentrated holdings while adding growth potential.

Consider Consider American Funds Growth PortfolioSM and American Funds Global Growth Portfolio can provide exposure to a diverse array of equities that have the potential for long-term growth.

American Funds Growth Portfolio American Funds Global Growth Portfolio

How it fits IIIIIII

FI 30%

SCWF 15%

EUPAC 25%

AMCAP 30%

WGI 30%

NPF 30%

NWF 20%

NEF 20%

American Funds Tax-Advantaged Income Portfolio

Example 4: The need Reducing the impact of taxes can have a significant role in building assets for high net worth clients.

Consider Consider High net worth clients have distinct needs. American Funds Tax-Exempt Preservation Portfolio and American Funds Tax-Advantaged Income Portfolio may be appropriate for their tax-advantaged investments.

American Funds Tax-Exempt Preservation Portfolio

LTEX 70%

TEBF 30%

WGI 25%

WMIF 25%

AHIM 25%

TEBF 25%

How it fits

Growth funds Growth-and-income funds Equity-income and Balanced funds Bond and Tax-exempt bond funds

Underlying fund allocations are as of 5/18/12. The Portfolio Series funds are actively monitored, and allocations will vary over time.

Growth

®

For financial professionals only. Not for use with the public.

The Capital Group CompaniesAmerican Funds Capital Research and Management Capital International Capital Guardian Capital Bank and Trust

Investors should carefully consider investment objectives, risks, charges and expenses. 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.

Investment allocations may not achieve fund objectives. There are expenses associated with the underlying funds in addition to fund- of-funds expenses. The funds’ risks are directly related to the risks of the underlying funds, as described below.

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 return of principal for bond funds is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds. 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. Income from municipal bonds may be subject to state or local income taxes and/or the federal alternative minimum tax. Certain other income, as well as capital gain distributions, may be taxable.

American Funds Growth and Income Portfolio

Example 6: The need It takes time and energy to manage several small accounts.

Consider Consider Streamline your practice by moving account assets into one of two broadly diversified Portfolio Series funds, American Funds Balanced Portfolio or American Funds Growth and Income Portfolio.SM

American Funds Balanced Portfolio

BFA 25%

AMBAL 25%

WMIF 15%

WGI 15%

NPF 20%

CIB 25%

WBF 15%

ICA 20%

WGI 20%

GFA 20%

How it fits

Growth funds Growth-and-income funds Equity-income and Balanced funds Bond and Tax-exempt bond funds

Underlying fund allocations are as of 5/18/12. The Portfolio Series funds are actively monitored, and allocations will vary over time.