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American
Funds® Portfolio Series
Prospectus
January 1,
2024 |
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| Class |
A |
C |
T |
F-1 |
F-2 |
F-3 |
529-A |
529-C |
529-E |
529-T |
529-F-1 |
529-F-2 |
| American
Funds® Global Growth Portfolio |
PGGAX |
GGPCX |
TPGGX |
PGGFX |
PGWFX |
PGXFX |
CPGAX |
CPGCX |
CGGEX |
TGPPX |
CGGFX |
FGGPX |
| American
Funds® Growth Portfolio |
GWPAX |
GWPCX |
TGGPX |
GWPFX |
GWPEX |
GWPDX |
CGPAX |
CGPCX |
CGPEX |
TPGTX |
CGPFX |
FGPGX |
| American
Funds® Growth and Income Portfolio |
GAIOX |
GAITX |
TGXIX |
GAIFX |
GAIEX |
GAIHX |
CGNAX |
CGNCX |
CGNEX |
TGGGX |
CGNFX |
FGGIX |
American
Funds® Moderate Growth
and
Income Portfolio |
BLPAX |
BLPCX |
TBBPX |
BLPFX |
BLPEX |
BLPDX |
CBAAX |
CBPCX |
CBAEX |
TBPBX |
CBAFX |
FBBPX |
American
Funds® Conservative Growth
and
Income Portfolio |
INPAX |
INPCX |
TTPPX |
INPFX |
INPEX |
INPDX |
CIPAX |
CIPCX |
CIPEX |
TPTPX |
CIPFX |
FTPPX |
American
Funds® Tax-Aware Conservative
Growth
and Income Portfolio |
TAIAX |
TAICX |
TATAX |
TAIFX |
TXIFX |
TYIFX |
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
| American
Funds® Preservation Portfolio |
PPVAX |
PPVCX |
TPPPX |
PPVFX |
PPEFX |
PPFFX |
CPPAX |
CPPCX |
CPPEX |
TPAPX |
CPPFX |
FPPPX |
| American
Funds® Tax-Exempt Preservation Portfolio |
TEPAX |
TEPCX |
TTEPX |
TEPFX |
TXEFX |
TYEFX |
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
| Class |
529-F-3 |
ABLE-A |
ABLE-F-2 |
R-1 |
R-2 |
R-2E |
R-3 |
R-4 |
R-5E |
R-5 |
R-6 |
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| American Funds Global
Growth Portfolio |
FGPPX |
CGGGX |
CGHGX |
RGGAX |
RGGBX |
REBGX |
RGLCX |
RGGEX |
RGTFX |
RGGFX |
RGGGX |
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| American Funds Growth
Portfolio |
FPGGX |
CGQGX |
CGRGX |
RGWAX |
RGWBX |
RBGEX |
RGPCX |
RGWEX |
RGSFX |
RGWFX |
RGWGX |
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| American Funds Growth
and Income Portfolio |
FGIIX |
CGNGX |
CGLGX |
RGNAX |
RGNBX |
RBEGX |
RAICX |
RGNEX |
RGQFX |
RGNFX |
RGNGX |
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| American Funds Moderate
Growth and Income Portfolio |
FPPBX |
CBAGX |
CBBGX |
RBAAX |
RBABX |
RBBEX |
RBACX |
RBAEX |
RGPFX |
RBAFX |
RBAGX |
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American
Funds Conservative Growth
and
Income Portfolio |
FPTPX |
CIPGX |
CIQGX |
RNCAX |
RINBX |
RNBEX |
RNCCX |
RINEX |
RGOFX |
RINFX |
RINGX |
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American
Funds Tax- Aware Conservative
Growth
and Income Portfolio |
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
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| American Funds
Preservation Portfolio |
FFPPX |
CPPGX |
CPQGX |
RPPVX |
RPPBX |
RPBEX |
RPPCX |
RPPEX |
RGMFX |
RPPFX |
RPPGX |
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| American Funds
Tax-Exempt Preservation Portfolio |
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
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Table of contents
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| The U.S. Securities
and Exchange Commission has not approved or disapproved of these
securities. Further, it has not determined that this prospectus is
accurate or complete. Any representation to the contrary is a criminal
offense. |
American Funds Global Growth
Portfolio
Investment
objective The
fund’s investment objective is to provide long-term growth of
capital.
Fees
and expenses of the fund This
table describes the fees and expenses that you may pay if you buy, hold and sell
shares of the fund. You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
For example, in addition to the fees and
expenses described below, you may also be required to pay brokerage commissions
on purchases and sales of Class F-2, F-3, 529-F-2, 529-F-3 or ABLE-F-2 shares of
the fund. You may qualify for a Class A sales charge
discount if you and your family invest, or agree to invest in the future, at
least $25,000 in American Funds. More
information about these and other discounts is available from your financial
professional, in the “Sales charge reductions and waivers” sections on page 86
of the prospectus and on page 109 of the fund’s statement of additional
information, and in the sales charge waiver appendix to the
prospectus.
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| Shareholder
fees (fees
paid directly from your investment) |
| Share class: |
A |
529-A
and
ABLE-A |
C
and
529-C |
529-E |
T
and
529-T |
All F, 529-F and
ABLE-F-2 share classes |
All
R
share
classes |
| Maximum sales charge
(load) imposed on purchases (as a percentage of offering price) |
5.75% |
3.50 |
none |
none |
2.50% |
none |
none |
| Maximum deferred sales
charge (load) (as a percentage of the amount redeemed) |
1.001 |
1.001 |
1.00% |
none |
none |
none |
none |
| Maximum sales charge
(load) imposed on reinvested dividends |
none |
none |
none |
none |
none |
none |
none |
| Redemption or exchange
fees |
none |
none |
none |
none |
none |
none |
none |
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| Annual
fund operating expenses (expenses
that you pay each year as a percentage of the value of your
investment) |
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| Share class: |
A |
C |
T |
F-1 |
F-2 |
F-3 |
529-A |
529-C |
| Management
fees |
none |
none |
none |
none |
none |
none |
none |
none |
| Distribution and/or
service (12b-1) fees |
0.24% |
0.99% |
0.25% |
0.25% |
none |
none |
0.23% |
1.00% |
| Other expenses |
0.13 |
0.13 |
0.132 |
0.13 |
0.12% |
0.01% |
0.18 |
0.19 |
| Acquired (underlying)
fund fees and expenses |
0.44 |
0.44 |
0.44 |
0.44 |
0.44 |
0.44 |
0.44 |
0.44 |
| Total annual fund
operating expenses |
0.81 |
1.56 |
0.82 |
0.82 |
0.56 |
0.45 |
0.85 |
1.63 |
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| Share class: |
529-E |
529-T |
529-F-1 |
529-F-2 |
529-F-3 |
ABLE-A |
ABLE-F-2 |
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| Management
fees |
none |
none |
none |
none |
none |
none |
none |
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| Distribution and/or
service (12b-1) fees |
0.50% |
0.25% |
0.25% |
none |
none |
0.18% |
none |
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| Other expenses |
0.14 |
0.182 |
0.19 |
0.14%2 |
0.07% |
0.13 |
0.13% |
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| Acquired (underlying)
fund fees and expenses |
0.44 |
0.44 |
0.44 |
0.44 |
0.44 |
0.44 |
0.44 |
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| Total annual fund
operating expenses |
1.08 |
0.87 |
0.88 |
0.58 |
0.51 |
0.75 |
0.57 |
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| Fee waiver |
— |
— |
— |
— |
— |
0.063 |
0.063 |
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| Total annual fund
operating expenses after fee waiver |
1.08 |
0.87 |
0.88 |
0.58 |
0.51 |
0.69 |
0.51 |
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| Share class: |
R-1 |
R-2 |
R-2E |
R-3 |
R-4 |
R-5E |
R-5 |
R-6 |
| Management
fees |
none |
none |
none |
none |
none |
none |
none |
none |
| Distribution and/or
service (12b-1) fees |
1.00%2 |
0.75% |
0.60% |
0.50% |
0.25% |
none |
none |
none |
| Other expenses |
0.09 |
0.35 |
0.21 |
0.15 |
0.11 |
0.15% |
0.06% |
0.01% |
| Acquired (underlying)
fund fees and expenses |
0.44 |
0.44 |
0.44 |
0.44 |
0.44 |
0.44 |
0.44 |
0.44 |
| Total annual fund
operating expenses |
1.53 |
1.54 |
1.25 |
1.09 |
0.80 |
0.59 |
0.50 |
0.45 |
1
2
3
1 American
Funds Portfolio Series / Prospectus
Example
This example
is intended to help you compare the cost of investing in the fund with the cost
of investing in other mutual funds.
The example assumes that you
invest $10,000 in the fund for the time periods indicated and then redeem or
hold all of your shares at the end of those periods. The example also assumes
that your investment has a 5% return each year and that the fund’s operating
expenses remain the same. The example reflects the fee waiver described above
through the expiration date of such waiver and total annual fund operating
expenses thereafter. You may be required to pay brokerage commissions on your
purchases and sales of Class F-2, F-3, 529-F-2, 529-F-3 or ABLE-F-2 shares of
the fund, which are not reflected in the example. Although your actual costs
may be higher or lower, based on these assumptions your costs would
be:
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| Share class: |
A |
C |
T |
F-1 |
F-2 |
F-3 |
529-A |
529-C |
529-E |
529-T |
529-F-1 |
529-F-2 |
529-F-3 |
ABLE A |
ABLE F-2 |
| 1 year |
$653 |
$259 |
$332 |
$84 |
$57 |
$46 |
$434 |
$266 |
$110 |
$337 |
$90 |
$59 |
$52 |
$418 |
$52 |
| 3 years |
819 |
493 |
505 |
262 |
179 |
144 |
612 |
514 |
343 |
521 |
281 |
186 |
164 |
575 |
177 |
| 5 years |
999 |
850 |
694 |
455 |
313 |
252 |
805 |
887 |
595 |
720 |
488 |
324 |
285 |
747 |
312 |
| 10 years |
1,519 |
1,655 |
1,238 |
1,014 |
701 |
567 |
1,362 |
1,443 |
1,317 |
1,296 |
1,084 |
726 |
640 |
1,242 |
708 |
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| Share class: |
R-1 |
R-2 |
R-2E |
R-3 |
R-4 |
R-5E |
R-5 |
R-6 |
For the share classes
listed to the right, you would pay the following if you did not redeem
your shares: |
Share class: |
C |
529-C |
| 1 year |
$156 |
$157 |
$127 |
$111 |
$82 |
$60 |
$51 |
$46 |
1 year |
$159 |
$166 |
| 3 years |
483 |
486 |
397 |
347 |
255 |
189 |
160 |
144 |
3 years |
493 |
514 |
| 5 years |
834 |
839 |
686 |
601 |
444 |
329 |
280 |
252 |
5 years |
850 |
887 |
| 10 years |
1,824 |
1,834 |
1,511 |
1,329 |
990 |
738 |
628 |
567 |
10 years |
1,655 |
1,443 |
Portfolio turnover
The fund may
pay transaction costs, such as commissions, when it buys and sells securities
(or “turns over” its portfolio). A higher portfolio turnover rate may indicate
higher transaction costs and may result in higher taxes when fund shares are
held in a taxable account. These costs, which are not reflected in annual fund
operating expenses or in the example, affect the fund’s investment results.
During the most recent fiscal year, the fund’s portfolio turnover rate was
9% of the average value of its
portfolio.
Principal
investment strategies The
fund will attempt to achieve its investment objective by investing in a mix of
American Funds in different combinations and weightings. The underlying American
Funds will primarily consist of growth funds. The fund may also invest in
growth-and-income funds. Through its investments in the underlying funds, the
fund will have significant exposure to growth-oriented common stocks.
The fund will typically have
significant exposure to issuers domiciled outside the United States. The fund
will seek to invest at least 25% of its net assets in underlying funds that
invest significantly (under normal market conditions, at least 40%) in issuers
domiciled outside the United States. The fund will have exposure to issuers
domiciled in at least three different countries. The fund may also have exposure
to smaller capitalization issuers and issuers domiciled in emerging markets. The
investment adviser believes that exposure to issuers domiciled outside the
United States can help provide diversification when seeking long-term growth of
capital. The fund may also invest in underlying funds that hold bonds rated BB+
or below and Ba1 or below by Nationally Recognized Statistical Rating
Organizations designated by the fund’s investment adviser, or unrated but
determined by the fund’s investment adviser to be of equivalent quality.
Securities rated BB+ or below and Ba1 or below are sometimes referred to as
“junk bonds.”
The fund’s investment adviser
seeks to create combinations of underlying funds that complement each other with
a goal of achieving the fund’s investment objective of providing long-term
growth of capital. In making this determination, the fund’s investment adviser
considers the historical volatility and returns of the underlying funds and how
various combinations would have behaved in past market environments. It also
considers, among other topics, current market conditions and the investment
positions of the underlying funds.
The fund’s investment adviser
periodically reviews the investment strategies and asset mix of the underlying
funds. The investment adviser will also consider whether overall market
conditions would favor a change in the exposure of the fund to various asset
types or geographic regions. Based on these considerations, the investment
adviser may make adjustments to underlying fund holdings by adjusting the
percentage of individual underlying funds within the fund, or adding or removing
underlying funds. The investment adviser may also determine not to change the
underlying fund allocations, particularly in response to short-term market
movements, if in its opinion the combination of underlying funds is appropriate
to meet the fund’s investment objective.
American Funds Portfolio
Series / Prospectus 2
Principal
risks This
section describes the principal risks associated with investing in the fund and
its underlying funds. You may lose money by investing in the fund. The
likelihood of loss may be greater if you invest for a shorter period of time.
Investors in the fund should have a long-term perspective and be able to
tolerate potentially sharp declines in value.
The following are
principal risks associated with investing in the fund.
Allocation
risk — Investments in the fund are subject to risks related to the
investment adviser’s allocation choices. The selection of the underlying funds
and the allocation of the fund’s assets could cause the fund to lose value or
its results to lag relevant benchmarks or other funds with similar
objectives.
Fund
structure — The fund invests in underlying funds and incurs expenses related
to the underlying funds. In addition, investors in the fund will incur fees to
pay for certain expenses related to the operations of the fund. An investor
holding the underlying funds directly and in the same proportions as the fund
would incur lower overall expenses but would not receive the benefit of the
portfolio management and other services provided by the fund. Additionally, in
accordance with an exemption under the Investment Company Act of 1940, as
amended, the investment adviser considers only proprietary funds when selecting
underlying investment options and allocations. This means that the fund’s
investment adviser does not, nor does it expect to, consider any unaffiliated
funds as underlying investment options for the fund. This strategy could
raise certain conflicts of interest when determining the overall asset
allocation of the fund or choosing underlying investments for the fund,
including the selection of funds that result in greater compensation to the
adviser or funds with relatively lower historical investment results. The
investment adviser has policies and procedures designed to mitigate material
conflicts of interest that may arise in connection with its management of the
fund.
Underlying
fund risks — Because the fund’s investments consist of underlying funds, the
fund’s risks are directly related to the risks of the underlying funds. For this
reason, it is important to understand the risks associated with investing in the
underlying funds, as described below.
The following are
principal risks associated with investing in the underlying
funds.
Market
conditions — The prices of, and the income generated by, the common stocks,
bonds and other securities held by the underlying funds may decline – sometimes
rapidly or unpredictably – due to various factors, including events or
conditions affecting the general economy or particular industries or companies;
overall market changes; local, regional or global political, social or economic
instability; governmental, governmental agency or central bank responses to
economic conditions; changes in inflation rates; and currency exchange rate,
interest rate and commodity price fluctuations.
Economies and financial
markets throughout the world are highly interconnected. Economic, financial or
political events, trading and tariff arrangements, wars, terrorism,
cybersecurity events, natural disasters, public health emergencies (such as the
spread of infectious disease), bank failures and other circumstances in one
country or region, including actions taken by governmental or quasi-governmental
authorities in response to any of the foregoing, could have impacts on global
economies or markets. As a result, whether or not the underlying funds invest in
securities of issuers located in or with significant exposure to the countries
affected, the value and liquidity of the underlying funds’ investments may be
negatively affected by developments in other countries and
regions.
Issuer
risks — The prices of, and the income generated by, securities held by the
underlying funds may decline in response to various factors directly related to
the issuers of such securities, including reduced demand for an issuer’s goods
or services, poor management performance, major litigation, investigations or
other controversies related to the issuer, changes in the issuer’s financial
condition or credit rating, changes in government regulations affecting the
issuer or its competitive environment and strategic initiatives such as mergers,
acquisitions or dispositions and the market response to any such initiatives. An
individual security may also be affected by factors relating to the industry or
sector of the issuer or the securities markets as a whole, and conversely an
industry or sector or the securities markets may be affected by a change in
financial condition or other event affecting a single
issuer.
Investing
in stocks — Investing in stocks may involve larger price swings and greater
potential for loss than other types of investments. As a result, the value of
the underlying funds may be subject to sharp declines in value. Income provided
by an underlying fund may be reduced by changes in the dividend policies of, and
the capital resources available at, the companies in which the underlying fund
invests. These risks may be even greater in the case of smaller capitalization
stocks.
3 American
Funds Portfolio Series / Prospectus
Investing
in small companies — Investing in smaller companies may pose additional
risks. For example, it is often more difficult to value or dispose of small
company stocks and more difficult to obtain information about smaller companies
than about larger companies. Furthermore, smaller companies often have limited
product lines, operating histories, markets and/or financial resources, may be
dependent on one or a few key persons for management, and can be more
susceptible to losses. Moreover, the prices of their stocks may be more volatile
than stocks of larger, more established companies, particularly during times of
market turmoil.
Investing
outside the United States — Securities of issuers domiciled outside the
United States or with significant operations or revenues outside the United
States, and securities tied economically to countries outside the United States,
may lose value because of adverse political, social, economic or market
developments (including social instability, regional conflicts, terrorism and
war) in the countries or regions in which the issuers are domiciled, operate or
generate revenue or to which the securities are tied economically. These
securities may also lose value due to changes in foreign currency exchange rates
against the U.S. dollar and/or currencies of other countries. Issuers of these
securities may be more susceptible to actions of foreign governments, such as
nationalization, currency blockage or the imposition of price controls,
sanctions, or punitive taxes, each of which could adversely impact the value of
these securities. Securities markets in certain countries may be more volatile
and/or less liquid than those in the United States. Investments outside the
United States may also be subject to different regulatory, legal, accounting,
auditing, financial reporting and recordkeeping requirements, and may be more
difficult to value, than those in the United States. In addition, the value of
investments outside the United States may be reduced by foreign taxes, including
foreign withholding taxes on interest and dividends. Further, there may be
increased risks of delayed settlement of securities purchased or sold by an
underlying fund, which could impact the liquidity of the fund’s portfolio. The
risks of investing outside the United States may be heightened in connection
with investments in emerging markets.
Investing
in emerging markets — Investing in emerging markets may involve risks in
addition to and greater than those generally associated with investing in the
securities markets of developed countries. For instance, emerging market
countries tend to have less developed political, economic and legal systems than
those in developed countries. Accordingly, the governments of these countries
may be less stable and more likely to intervene in the market economy, for
example, by imposing capital controls, nationalizing a company or industry,
placing restrictions on foreign ownership and on withdrawing sale proceeds of
securities from the country, and/or imposing punitive taxes that could adversely
affect the prices of securities. Information regarding issuers in emerging
markets may be limited, incomplete or inaccurate, and such issuers may not be
subject to regulatory, accounting, auditing, and financial reporting and
recordkeeping standards comparable to those to which issuers in more developed
markets are subject. The underlying fund’s rights with respect to its
investments in emerging markets, if any, will generally be governed by local
law, which may make it difficult or impossible for the underlying fund to pursue
legal remedies or to obtain and enforce judgments in local courts. In addition,
the economies of these countries may be dependent on relatively few industries,
may have limited access to capital and may be more susceptible to changes in
local and global trade conditions and downturns in the world economy. Securities
markets in these countries can also be relatively small and have substantially
lower trading volumes. As a result, securities issued in these countries may be
more volatile and less liquid, more vulnerable to market manipulation, and more
difficult to value, than securities issued in countries with more developed
economies and/or markets. Less certainty with respect to security valuations may
lead to additional challenges and risks in calculating the underlying fund’s net
asset value. Additionally, emerging markets are more likely to experience
problems with the clearing and settling of trades and the holding of securities
by banks, agents and depositories that are less established than those in
developed countries.
Management
— The investment adviser to the fund and to the underlying funds actively
manages each underlying fund’s investments. Consequently, the underlying funds
are subject to the risk that the methods and analyses, including models, tools
and data, employed by the investment adviser in this process may be flawed or
incorrect and may not produce the desired results. This could cause an
underlying fund to lose value or its investment results to lag relevant
benchmarks or other funds with similar objectives.
Your investment in the
fund is not a bank deposit and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other governmental agency, entity or
person. You should consider how this fund fits into your overall
investment program.
American Funds Portfolio
Series / Prospectus 4
Investment
results The following
bar chart shows how the fund’s investment results have varied from year to year,
and the following table shows how the fund’s average annual total returns for
various periods compare with a broad measure of securities market results and
other applicable measures of market results. This information
provides some indication of the risks of investing in the fund. The Lipper Global
Large-Cap Growth Funds Index includes funds that disclose investment objectives
and/or strategies reasonably comparable to those of the fund.
Past investment results (before
and after taxes) are not predictive of future investment
results. Prior to October 30, 2020, certain fees, such as 12b-1
fees, were not charged on Class 529-F-1 shares. If these expenses had been
deducted, results would have been lower. Updated information on the fund’s
investment results can be obtained by visiting capitalgroup.com.
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| Average
annual total returns For
the periods ended December 31, 2022: |
| Share class |
Inception date |
1 year |
5 years |
10 years |
Lifetime |
| F-2
—
Before taxes |
5/18/2012 |
–25.48% |
4.74% |
8.19% |
9.28% |
| — After taxes on
distributions |
|
–26.79 |
3.65 |
7.21 |
N/A |
| — After taxes on
distributions and sale of fund shares |
|
–14.09 |
3.70 |
6.61 |
N/A |
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| Share
classes (before
taxes) |
Inception date |
1 year |
5 years |
10 years |
Lifetime |
| A
(with maximum sales
charge) |
5/18/2012 |
–29.98% |
3.25% |
7.30% |
8.41% |
| C |
5/18/2012 |
–26.94 |
3.70 |
7.28 |
8.39 |
| F-1 |
5/18/2012 |
–25.71 |
4.47 |
7.90 |
9.00 |
| F-3 |
1/27/2017 |
–25.43 |
4.85 |
N/A |
7.76 |
| 529-A
(with maximum sales
charge) |
5/18/2012 |
–28.32 |
3.69 |
7.50 |
8.61 |
| 529-C |
5/18/2012 |
–26.98 |
3.64 |
7.45 |
8.55 |
| 529-E |
5/18/2012 |
–25.86 |
4.22 |
7.63 |
8.72 |
| 529-F-1 |
5/18/2012 |
–25.56 |
4.67 |
8.11 |
9.20 |
| 529-F-2 |
10/30/2020 |
–25.51 |
N/A |
N/A |
0.39 |
| 529-F-3 |
10/30/2020 |
–25.45 |
N/A |
N/A |
0.46 |
| ABLE-A |
7/13/2018 |
–28.18 |
N/A |
N/A |
3.24 |
| ABLE-F-2 |
10/30/2020 |
–25.46 |
N/A |
N/A |
0.48 |
| R-1 |
5/18/2012 |
–26.17 |
3.78 |
7.15 |
8.24 |
| R-2 |
5/18/2012 |
–26.26 |
3.71 |
7.11 |
8.21 |
| R-2E |
8/29/2014 |
–26.00 |
4.02 |
N/A |
5.67 |
| R-3 |
5/18/2012 |
–25.92 |
4.18 |
7.60 |
8.68 |
| R-4 |
5/18/2012 |
–25.68 |
4.50 |
7.93 |
9.03 |
| R-5E |
11/20/2015 |
–25.53 |
4.71 |
N/A |
7.25 |
| R-5 |
5/18/2012 |
–25.43 |
4.81 |
8.25 |
9.33 |
| R-6 |
5/18/2012 |
–25.45 |
4.85 |
8.30 |
9.37 |
| |
|
|
|
|
| Indexes |
1 year |
5 years |
10 years |
Lifetime
(from Class F-2
inception) |
| MSCI® All
Country World Index (reflects no deductions for sales charges, account
fees, expenses or U.S. federal income taxes) |
–18.36% |
5.23% |
7.98 |
8.96% |
| Lipper Global Large-Cap
Growth Funds Index (reflects no deductions for sales charges, account fees
or U.S. federal income taxes) |
–27.41 |
5.49 |
8.39 |
9.16 |
After-tax returns are shown
only for Class F-2 shares; after-tax returns for other share classes will
vary. After-tax returns are
calculated using the highest individual federal income tax rates in effect
during each year of the periods shown and do not reflect the impact of state and
local taxes. Your actual after-tax returns
depend on your individual tax situation and likely will differ from the results
shown above. In addition, after-tax returns are not relevant if you hold your
fund shares through a tax-deferred arrangement, such as a 401(k) plan,
individual retirement account (IRA) or 529 college savings
plan.
5 American
Funds Portfolio Series / Prospectus
Management
Investment
adviser Capital Research and Management
Company
Portfolio
Solutions Committee The investment
adviser’s Portfolio Solutions Committee develops the allocation approach and
selects the underlying funds in which the fund invests. The members of the
Portfolio Solutions Committee, who are jointly and primarily responsible for the
portfolio management of the fund, are:
| |
|
|
Investment
professional/
Series
title (if applicable) |
Investment
professional
experience
in this fund |
Primary title with
investment adviser |
| Alan
N. Berro Senior Vice
President |
12 years |
Partner – Capital World
Investors |
| Michelle
J. Black Senior Vice
President |
4 years |
Partner – Capital
Solutions Group |
| Brittain
Ezzes Senior Vice
President |
Less than 1
year |
Vice President – Capital
Research Global Investors |
| Samir
Mathur President |
4 years |
Partner – Capital
Solutions Group |
| Wesley
K. Phoa Senior Vice
President |
12 years |
Partner – Capital
Solutions Group |
| John
R. Queen Senior Vice
President |
4 years |
Partner – Capital Fixed
Income Investors |
| Andrew
B. Suzman Senior Vice
President |
12 years |
Partner – Capital World
Investors |
Purchase
and sale of fund shares The
minimum amount to establish an account for all share classes is normally $250
and the minimum to add to an account is $50. For a payroll deduction retirement
plan account, payroll deduction savings plan account or employer-sponsored 529
account, the minimum is $25 to establish or add to an account. For accounts with
Class F-3 shares held and serviced by the fund’s transfer agent, the minimum
investment amount is $1 million.
If
you are a retail investor, you may sell (redeem) shares on any business day
through your dealer or financial professional or by writing to American Funds
Service Company® at P.O. Box 6007, Indianapolis, Indiana
46206-6007; telephoning American Funds Service Company at (800) 421-4225;
faxing American Funds Service Company at (888) 421-4351; or accessing our
website at capitalgroup.com. Please contact your plan administrator or
recordkeeper to sell (redeem) shares from your retirement plan.
Tax
information Dividends
and capital gain distributions you receive from the fund are subject to federal
income taxes and may also be subject to state and local taxes, unless you are
tax-exempt or your account is tax-favored.
Payments
to broker-dealers and other financial intermediaries If
you purchase shares of the fund through a broker-dealer or other financial
intermediary (such as a bank), the fund and the fund’s distributor or its
affiliates may pay the intermediary for the sale of fund shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your individual financial professional
to recommend the fund over another investment. Ask your individual financial
professional or visit your financial intermediary’s website for more
information.
American Funds Portfolio
Series / Prospectus 6
American Funds Growth
Portfolio
Investment
objective The
fund’s investment objective is to provide long-term growth of
capital.
Fees
and expenses of the fund This
table describes the fees and expenses that you may pay if you buy, hold and sell
shares of the fund. You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
For example, in addition to the fees and
expenses described below, you may also be required to pay brokerage commissions
on purchases and sales of Class F-2, F-3, 529-F-2, 529-F-3 or ABLE-F-2 shares of
the fund. You may qualify for a Class A sales charge
discount if you and your family invest, or agree to invest in the future, at
least $25,000 in American Funds. More
information about these and other discounts is available from your financial
professional, in the “Sales charge reductions and waivers” sections on page 86
of the prospectus and on page 109 of the fund’s statement of additional
information, and in the sales charge waiver appendix to the
prospectus.
| |
|
|
|
|
|
|
|
| Shareholder
fees (fees
paid directly from your investment) |
| Share class: |
A |
529-A
and
ABLE-A |
C
and
529-C |
529-E |
T
and
529-T |
All F, 529-F and
ABLE-F-2 share classes |
All
R
share
classes |
| Maximum sales charge
(load) imposed on purchases (as a percentage of offering price) |
5.75% |
3.50 |
none |
none |
2.50% |
none |
none |
| Maximum deferred sales
charge (load) (as a percentage of the amount redeemed) |
1.001 |
1.001 |
1.00% |
none |
none |
none |
none |
| Maximum sales charge
(load) imposed on reinvested dividends |
none |
none |
none |
none |
none |
none |
none |
| Redemption or exchange
fees |
none |
none |
none |
none |
none |
none |
none |
| |
|
|
|
|
|
|
|
|
| Annual
fund operating expenses (expenses
that you pay each year as a percentage of the value of your
investment) |
| Share class: |
A |
C |
T |
F-1 |
F-2 |
F-3 |
529-A |
529-C |
| Management
fees |
none |
none |
none |
none |
none |
none |
none |
none |
| Distribution and/or
service (12b-1) fees |
0.24% |
0.99% |
0.25% |
0.25% |
none |
none |
0.24% |
1.00% |
| Other expenses |
0.13 |
0.13 |
0.122 |
0.13 |
0.11% |
0.01% |
0.18 |
0.18 |
| Acquired (underlying)
fund fees and expenses |
0.38 |
0.38 |
0.38 |
0.38 |
0.38 |
0.38 |
0.38 |
0.38 |
| Total annual fund
operating expenses |
0.75 |
1.50 |
0.75 |
0.76 |
0.49 |
0.39 |
0.80 |
1.56 |
| |
|
|
|
|
|
|
|
|
| Share class: |
529-E |
529-T |
529-F-1 |
529-F-2 |
529-F-3 |
ABLE-A |
ABLE-F-2 |
|
| Management
fees |
none |
none |
none |
none |
none |
none |
none |
|
| Distribution and/or
service (12b-1) fees |
0.50% |
0.25% |
0.25% |
none |
none |
0.20% |
none |
|
| Other expenses |
0.13 |
0.182 |
0.19 |
0.14%2 |
0.07% |
0.12 |
0.12% |
|
| Acquired (underlying)
fund fees and expenses |
0.38 |
0.38 |
0.38 |
0.38 |
0.38 |
0.38 |
0.38 |
|
| Total annual fund
operating expenses |
1.01 |
0.81 |
0.82 |
0.52 |
0.45 |
0.70 |
0.50 |
|
| Fee waiver |
— |
— |
— |
— |
— |
0.063 |
0.063 |
|
| Total annual fund
operating expenses after fee waiver |
1.01 |
0.81 |
0.82 |
0.52 |
0.45 |
0.64 |
0.44 |
|
| |
|
|
|
|
|
|
|
|
| Share class: |
R-1 |
R-2 |
R-2E |
R-3 |
R-4 |
R-5E |
R-5 |
R-6 |
| Management
fees |
none |
none |
none |
none |
none |
none |
none |
none |
| Distribution and/or
service (12b-1) fees |
1.00% |
0.75% |
0.60% |
0.50% |
0.25% |
none |
none |
none |
| Other expenses |
0.10 |
0.34 |
0.21 |
0.15 |
0.09 |
0.15% |
0.06% |
0.01% |
| Acquired (underlying)
fund fees and expenses |
0.38 |
0.38 |
0.38 |
0.38 |
0.38 |
0.38 |
0.38 |
0.38 |
| Total annual fund
operating expenses |
1.48 |
1.47 |
1.19 |
1.03 |
0.72 |
0.53 |
0.44 |
0.39 |
1
2
3
7 American
Funds Portfolio Series / Prospectus
Example
This example
is intended to help you compare the cost of investing in the fund with the cost
of investing in other mutual funds.
The example assumes that you
invest $10,000 in the fund for the time periods indicated and then redeem or
hold all of your shares at the end of those periods. The example also assumes
that your investment has a 5% return each year and that the fund’s operating
expenses remain the same. The example reflects the fee waiver described above
through the expiration date of such waiver and total annual fund operating
expenses thereafter. You may be required to pay brokerage commissions on your
purchases and sales of Class F-2, F-3, 529-F-2, 529-F-3 or ABLE-F-2 shares of
the fund, which are not reflected in the example. Although your actual
costs may be higher or lower, based on these assumptions your costs would
be:
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Share class: |
A |
C |
T |
F-1 |
F-2 |
F-3 |
529-A |
529-C |
529-E |
529-T |
529-F-1 |
529-F-2 |
529-F-3 |
ABLE A |
ABLE F-2 |
| 1 year |
$647 |
$253 |
$325 |
$78 |
$50 |
$40 |
$429 |
$259 |
$103 |
$331 |
$84 |
$53 |
$46 |
$413 |
$45 |
| 3 years |
801 |
474 |
484 |
243 |
157 |
125 |
597 |
493 |
322 |
502 |
262 |
167 |
144 |
560 |
154 |
| 5 years |
968 |
818 |
657 |
422 |
274 |
219 |
779 |
850 |
558 |
688 |
455 |
291 |
252 |
720 |
274 |
| 10 years |
1,452 |
1,588 |
1,157 |
942 |
616 |
493 |
1,305 |
1,376 |
1,236 |
1,227 |
1,014 |
653 |
567 |
1,185 |
622 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Share class: |
R-1 |
R-2 |
R-2E |
R-3 |
R-4 |
R-5E |
R-5 |
R-6 |
For the share classes
listed to the right, you would pay the following if you did not redeem
your shares: |
Share class: |
C |
529-C |
| 1 year |
$151 |
$150 |
$121 |
$105 |
$74 |
$54 |
$45 |
40 |
1 year |
$153 |
$159 |
| 3 years |
468 |
465 |
378 |
328 |
230 |
170 |
141 |
125 |
3 years |
474 |
493 |
| 5 years |
808 |
803 |
654 |
569 |
401 |
296 |
246 |
219 |
5 years |
818 |
850 |
| 10 years |
1,768 |
1,757 |
1,443 |
1,259 |
894 |
665 |
555 |
493 |
10 years |
1,588 |
1,376 |
Portfolio turnover
The fund may
pay transaction costs, such as commissions, when it buys and sells securities
(or “turns over” its portfolio). A higher portfolio turnover rate may indicate
higher transaction costs and may result in higher taxes when fund shares are
held in a taxable account. These costs, which are not reflected in annual fund
operating expenses or in the example, affect the fund’s investment results.
During the most recent fiscal year, the fund’s portfolio turnover rate was
1% of the average value of its
portfolio.
Principal
investment strategies The
fund will attempt to achieve its investment objective by investing in a mix of
American Funds in different combinations and weightings. The underlying American
Funds will primarily consist of growth funds. The fund may also invest in
growth-and-income funds. Through its investments in the underlying funds, the
fund will have significant exposure to growth-oriented common stocks.
The fund will typically have
significant exposure to issuers domiciled outside the United States. The fund
may also have exposure to smaller capitalization issuers and issuers domiciled
in emerging markets. The investment adviser believes that exposure to issuers
domiciled outside the United States can help provide diversification when
seeking long-term growth of capital.
The fund’s investment adviser
seeks to create combinations of underlying funds that complement each other with
a goal of achieving the fund’s investment objective of providing long-term
growth of capital. In making this determination, the fund’s investment adviser
considers the historical volatility and returns of the underlying funds and how
various combinations would have behaved in past market environments. It also
considers, among other topics, current market conditions and the investment
positions of the underlying funds.
The fund’s investment adviser
periodically reviews the investment strategies and asset mix of the underlying
funds. The investment adviser will also consider whether overall market
conditions would favor a change in the exposure of the fund to various asset
types or geographic regions. Based on these considerations, the investment
adviser may make adjustments to underlying fund holdings by adjusting the
percentage of individual underlying funds within the fund, or adding or removing
underlying funds. The investment adviser may also determine not to change the
underlying fund allocations, particularly in response to short-term market
movements, if in its opinion the combination of underlying funds is appropriate
to meet the fund’s investment objective.
American Funds Portfolio
Series / Prospectus 8
Principal
risks This
section describes the principal risks associated with investing in the fund and
its underlying funds. You may lose money by investing in the fund. The
likelihood of loss may be greater if you invest for a shorter period of time.
Investors in the fund should have a long-term perspective and be able to
tolerate potentially sharp declines in value.
The following are
principal risks associated with investing in the fund.
Allocation
risk — Investments in the fund are subject to risks related to the
investment adviser’s allocation choices. The selection of the underlying funds
and the allocation of the fund’s assets could cause the fund to lose value or
its results to lag relevant benchmarks or other funds with similar
objectives.
Fund
structure — The fund invests in underlying funds and incurs expenses related
to the underlying funds. In addition, investors in the fund will incur fees to
pay for certain expenses related to the operations of the fund. An investor
holding the underlying funds directly and in the same proportions as the fund
would incur lower overall expenses but would not receive the benefit of the
portfolio management and other services provided by the fund. Additionally, in
accordance with an exemption under the Investment Company Act of 1940, as
amended, the investment adviser considers only proprietary funds when selecting
underlying investment options and allocations. This means that the fund’s
investment adviser does not, nor does it expect to, consider any unaffiliated
funds as underlying investment options for the fund. This strategy could
raise certain conflicts of interest when determining the overall asset
allocation of the fund or choosing underlying investments for the fund,
including the selection of funds that result in greater compensation to the
adviser or funds with relatively lower historical investment results. The
investment adviser has policies and procedures designed to mitigate material
conflicts of interest that may arise in connection with its management of the
fund.
Underlying
fund risks — Because the fund’s investments consist of underlying funds, the
fund’s risks are directly related to the risks of the underlying funds. For this
reason, it is important to understand the risks associated with investing in the
underlying funds, as described below.
The following are
principal risks associated with investing in the underlying
funds.
Market
conditions — The prices of, and the income generated by, the common stocks,
bonds and other securities held by the underlying funds may decline – sometimes
rapidly or unpredictably – due to various factors, including events or
conditions affecting the general economy or particular industries or companies;
overall market changes; local, regional or global political, social or economic
instability; governmental, governmental agency or central bank responses to
economic conditions; changes in inflation rates; and currency exchange rate,
interest rate and commodity price fluctuations.
Economies and financial
markets throughout the world are highly interconnected. Economic, financial or
political events, trading and tariff arrangements, wars, terrorism,
cybersecurity events, natural disasters, public health emergencies (such as the
spread of infectious disease), bank failures and other circumstances in one
country or region, including actions taken by governmental or quasi-governmental
authorities in response to any of the foregoing, could have impacts on global
economies or markets. As a result, whether or not the underlying funds invest in
securities of issuers located in or with significant exposure to the countries
affected, the value and liquidity of the underlying funds’ investments may be
negatively affected by developments in other countries and
regions.
Issuer
risks — The prices of, and the income generated by, securities held by the
underlying funds may decline in response to various factors directly related to
the issuers of such securities, including reduced demand for an issuer’s goods
or services, poor management performance, major litigation, investigations or
other controversies related to the issuer, changes in the issuer’s financial
condition or credit rating, changes in government regulations affecting the
issuer or its competitive environment and strategic initiatives such as mergers,
acquisitions or dispositions and the market response to any such initiatives. An
individual security may also be affected by factors relating to the industry or
sector of the issuer or the securities markets as a whole, and conversely an
industry or sector or the securities markets may be affected by a change in
financial condition or other event affecting a single
issuer.
Investing
in stocks — Investing in stocks may involve larger price swings and greater
potential for loss than other types of investments. As a result, the value of
the underlying funds may be subject to sharp declines in value. Income provided
by an underlying fund may be reduced by changes in the dividend policies of, and
the capital resources available at, the companies in which the underlying fund
invests. These risks may be even greater in the case of smaller capitalization
stocks.
Investing
in small companies — Investing in smaller companies may pose additional
risks. For example, it is often more difficult to value or dispose of small
company stocks and more difficult to obtain information about smaller companies
than about larger companies. Furthermore, smaller companies often have limited
product lines, operating histories, markets and/or financial resources, may be
dependent on one or a few key persons for management, and can be more
susceptible to losses. Moreover, the prices of their stocks may be more volatile
than stocks of larger, more established companies, particularly during times of
market turmoil.
9 American
Funds Portfolio Series / Prospectus
Investing
outside the United States — Securities of issuers domiciled outside the
United States or with significant operations or revenues outside the United
States, and securities tied economically to countries outside the United States,
may lose value because of adverse political, social, economic or market
developments (including social instability, regional conflicts, terrorism and
war) in the countries or regions in which the issuers are domiciled, operate or
generate revenue or to which the securities are tied economically. These
securities may also lose value due to changes in foreign currency exchange rates
against the U.S. dollar and/or currencies of other countries. Issuers of these
securities may be more susceptible to actions of foreign governments, such as
nationalization, currency blockage or the imposition of price controls,
sanctions, or punitive taxes, each of which could adversely impact the value of
these securities. Securities markets in certain countries may be more volatile
and/or less liquid than those in the United States. Investments outside the
United States may also be subject to different regulatory, legal, accounting,
auditing, financial reporting and recordkeeping requirements, and may be more
difficult to value, than those in the United States. In addition, the value of
investments outside the United States may be reduced by foreign taxes, including
foreign withholding taxes on interest and dividends. Further, there may be
increased risks of delayed settlement of securities purchased or sold by an
underlying fund, which could impact the liquidity of the fund’s portfolio. The
risks of investing outside the United States may be heightened in connection
with investments in emerging markets.
Investing
in emerging markets — Investing in emerging markets may involve risks in
addition to and greater than those generally associated with investing in the
securities markets of developed countries. For instance, emerging market
countries tend to have less developed political, economic and legal systems than
those in developed countries. Accordingly, the governments of these countries
may be less stable and more likely to intervene in the market economy, for
example, by imposing capital controls, nationalizing a company or industry,
placing restrictions on foreign ownership and on withdrawing sale proceeds of
securities from the country, and/or imposing punitive taxes that could adversely
affect the prices of securities. Information regarding issuers in emerging
markets may be limited, incomplete or inaccurate, and such issuers may not be
subject to regulatory, accounting, auditing, and financial reporting and
recordkeeping standards comparable to those to which issuers in more developed
markets are subject. The underlying fund’s rights with respect to its
investments in emerging markets, if any, will generally be governed by local
law, which may make it difficult or impossible for the underlying fund to pursue
legal remedies or to obtain and enforce judgments in local courts. In addition,
the economies of these countries may be dependent on relatively few industries,
may have limited access to capital and may be more susceptible to changes in
local and global trade conditions and downturns in the world economy. Securities
markets in these countries can also be relatively small and have substantially
lower trading volumes. As a result, securities issued in these countries may be
more volatile and less liquid, more vulnerable to market manipulation, and more
difficult to value, than securities issued in countries with more developed
economies and/or markets. Less certainty with respect to security valuations may
lead to additional challenges and risks in calculating the underlying fund’s net
asset value. Additionally, emerging markets are more likely to experience
problems with the clearing and settling of trades and the holding of securities
by banks, agents and depositories that are less established than those in
developed countries.
Management
— The investment adviser to the fund and to the underlying funds actively
manages each underlying fund’s investments. Consequently, the underlying funds
are subject to the risk that the methods and analyses, including models, tools
and data, employed by the investment adviser in this process may be flawed or
incorrect and may not produce the desired results. This could cause an
underlying fund to lose value or its investment results to lag relevant
benchmarks or other funds with similar objectives.
Your investment in the
fund is not a bank deposit and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other governmental agency, entity or
person. You should consider how this fund fits into your overall
investment program.
American Funds Portfolio
Series / Prospectus 10
Investment
results The following
bar chart shows how the fund’s investment results have varied from year to year,
and the following table shows how the fund’s average annual total returns for
various periods compare with a broad measure of securities market results and
other applicable measures of market results. This information
provides some indication of the risks of investing in the fund. The Lipper Global
Multi-Cap Growth Funds Index includes funds that disclose investment objectives
and/or strategies reasonably comparable to those of the fund.
Past investment results (before
and after taxes) are not predictive of future investment
results. Prior to October 30, 2020, certain fees, such as 12b-1
fees, were not charged on Class 529-F-1 shares. If these expenses had been
deducted, results would have been lower. Updated information on the fund’s
investment results can be obtained by visiting capitalgroup.com.
| |
|
|
|
|
|
| Average
annual total returns For
the periods ended December 31, 2022: |
| Share class |
Inception date |
1 year |
5 years |
10 years |
Lifetime |
| F-2
—
Before taxes |
5/18/2012 |
–26.70% |
5.51% |
9.49% |
10.32% |
| — After taxes on
distributions |
|
–28.32 |
4.11 |
8.35 |
N/A |
| — After taxes on
distributions and sale of fund shares |
|
–14.66 |
4.29 |
7.69 |
N/A |
| |
|
|
|
|
|
| Share
classes (before
taxes) |
Inception date |
1 year |
5 years |
10 years |
Lifetime |
| A
(with maximum sales
charge) |
5/18/2012 |
–31.10% |
4.00% |
8.60% |
9.45 |
| C |
5/18/2012 |
–28.09 |
4.45 |
8.57 |
9.42 |
| F-1 |
5/18/2012 |
–26.91 |
5.22 |
9.20 |
10.03 |
| F-3 |
1/27/2017 |
–26.60 |
5.61 |
N/A |
8.03 |
| 529-A
(with maximum sales
charge) |
5/18/2012 |
–29.45 |
4.45 |
8.80 |
9.65 |
| 529-C |
5/18/2012 |
–28.12 |
4.40 |
8.74 |
9.60 |
| 529-E |
5/18/2012 |
–27.08 |
4.96 |
8.92 |
9.74 |
| 529-F-1 |
5/18/2012 |
–26.76 |
5.43 |
9.42 |
10.24 |
| 529-F-2 |
10/30/2020 |
–26.71 |
N/A |
N/A |
1.26 |
| 529-F-3 |
10/30/2020 |
–26.65 |
N/A |
N/A |
1.35 |
| ABLE-A |
7/13/2018 |
–29.39 |
N/A |
N/A |
3.60 |
| ABLE-F-2 |
10/30/2020 |
–26.63 |
N/A |
N/A |
1.39 |
| R-1 |
5/18/2012 |
–27.43 |
4.47 |
8.40 |
9.24 |
| R-2 |
5/18/2012 |
–27.41 |
4.47 |
8.41 |
9.24 |
| R-2E |
8/29/2014 |
–27.23 |
4.77 |
N/A |
6.52 |
| R-3 |
5/18/2012 |
–27.09 |
4.94 |
8.90 |
9.72 |
| R-4 |
5/18/2012 |
–26.87 |
5.25 |
9.23 |
10.06 |
| R-5E |
11/20/2015 |
–26.75 |
5.46 |
N/A |
7.95 |
| R-5 |
5/18/2012 |
–26.68 |
5.56 |
9.55 |
10.37 |
| R-6 |
5/18/2012 |
–26.62 |
5.62 |
9.60 |
10.42 |
| |
|
|
|
|
| Indexes |
1 year |
5 years |
10 years |
Lifetime
(from Class F-2
inception) |
| S&P 500 Index
(reflects no deductions for sales charges, account fees, expenses or U.S.
federal income taxes) |
–18.11% |
9.42% |
12.56% |
12.96% |
| MSCI® All
Country World ex USA Index (reflects no deductions for sales charges,
account fees, expenses or U.S. federal income taxes) |
–16.00 |
0.88 |
3.80 |
5.30 |
| Lipper Global Multi-Cap
Growth Funds Index (reflects no deductions for sales charges, account fees
or U.S. federal income taxes) |
–28.63 |
5.19 |
8.30 |
9.12 |
After-tax
returns are shown only for Class F-2 shares; after-tax returns for other share
classes will vary. After-tax returns are
calculated using the highest individual federal income tax rates in effect
during each year of the periods shown and do not reflect the impact of state and
local taxes. Your actual after-tax returns
depend on your individual tax situation and likely will differ from the results
shown above. In addition, after-tax returns are not relevant if you hold your
fund shares through a tax-deferred arrangement, such as a 401(k) plan,
individual retirement account (IRA) or 529 college savings
plan.
11 American
Funds Portfolio Series / Prospectus
Management
Investment
adviser Capital Research and Management
Company
Portfolio
Solutions Committee The investment
adviser’s Portfolio Solutions Committee develops the allocation approach and
selects the underlying funds in which the fund invests. The members of the
Portfolio Solutions Committee, who are jointly and primarily responsible for the
portfolio management of the fund, are:
| |
|
|
Investment
professional/
Series
title (if applicable) |
Investment
professional
experience
in this fund |
Primary title with
investment adviser |
| Alan
N. Berro Senior Vice
President |
12 years |
Partner – Capital World
Investors |
| Michelle
J. Black Senior Vice
President |
4 years |
Partner – Capital
Solutions Group |
| Brittain
Ezzes Senior Vice
President |
Less than 1
year |
Vice President – Capital
Research Global Investors |
| Samir
Mathur President |
4 years |
Partner – Capital
Solutions Group |
| Wesley
K. Phoa Senior Vice
President |
12 years |
Partner – Capital
Solutions Group |
| John
R. Queen Senior Vice
President |
4 years |
Partner – Capital Fixed
Income Investors |
| Andrew
B. Suzman Senior Vice
President |
12 years |
Partner – Capital World
Investors |
Purchase
and sale of fund shares The
minimum amount to establish an account for all share classes is normally $250
and the minimum to add to an account is $50. For a payroll deduction retirement
plan account, payroll deduction savings plan account or employer-sponsored 529
account, the minimum is $25 to establish or add to an account. For accounts with
Class F-3 shares held and serviced by the fund’s transfer agent, the minimum
investment amount is $1 million.
If
you are a retail investor, you may sell (redeem) shares on any business day
through your dealer or financial professional or by writing to American Funds
Service Company® at P.O. Box 6007, Indianapolis, Indiana
46206-6007; telephoning American Funds Service Company at (800) 421-4225;
faxing American Funds Service Company at (888) 421-4351; or accessing our
website at capitalgroup.com. Please contact your plan administrator or
recordkeeper to sell (redeem) shares from your retirement plan.
Tax
information Dividends
and capital gain distributions you receive from the fund are subject to federal
income taxes and may also be subject to state and local taxes, unless you are
tax-exempt or your account is tax-favored.
Payments
to broker-dealers and other financial intermediaries If
you purchase shares of the fund through a broker-dealer or other financial
intermediary (such as a bank), the fund and the fund’s distributor or its
affiliates may pay the intermediary for the sale of fund shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your individual financial professional
to recommend the fund over another investment. Ask your individual financial
professional or visit your financial intermediary’s website for more
information.
American Funds Portfolio
Series / Prospectus 12
American Funds Growth and Income
Portfolio
Investment
objective The
fund’s investment objective is to provide long-term growth of capital while
providing current income.
Fees
and expenses of the fund This
table describes the fees and expenses that you may pay if you buy, hold and sell
shares of the fund. You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
For example, in addition to the fees and
expenses described below, you may also be required to pay brokerage commissions
on purchases and sales of Class F-2, F-3, 529-F-2, 529-F-3 or ABLE-F-2 shares of
the fund. You may qualify for a Class A sales charge
discount if you and your family invest, or agree to invest in the future, at
least $25,000 in American Funds. More
information about these and other discounts is available from your financial
professional, in the “Sales charge reductions and waivers” sections on page 86
of the prospectus and on page 109 of the fund’s statement of additional
information, and in the sales charge waiver appendix to the
prospectus.
| |
|
|
|
|
|
|
|
| Shareholder
fees (fees
paid directly from your investment) |
| Share class: |
A |
529-A
and
ABLE-A |
C
and
529-C |
529-E |
T
and
529-T |
All F, 529-F and
ABLE-F-2 share classes |
All
R
share
classes |
| Maximum sales charge
(load) imposed on purchases (as a percentage of offering price) |
5.75% |
3.50 |
none |
none |
2.50% |
none |
none |
| Maximum deferred sales
charge (load) (as a percentage of the amount redeemed) |
1.001 |
1.001 |
1.00% |
none |
none |
none |
none |
| Maximum sales charge
(load) imposed on reinvested dividends |
none |
none |
none |
none |
none |
none |
none |
| Redemption or exchange
fees |
none |
none |
none |
none |
none |
none |
none |
| |
|
|
|
|
|
|
|
|
| Annual
fund operating expenses (expenses
that you pay each year as a percentage of the value of your
investment) |
| Share class: |
A |
C |
T |
F-1 |
F-2 |
F-3 |
529-A |
529-C |
| Management
fees |
none |
none |
none |
none |
none |
none |
none |
none |
| Distribution and/or
service (12b-1) fees |
0.25% |
1.00% |
0.25% |
0.25% |
none |
none |
0.24% |
1.00% |
| Other expenses |
0.08 |
0.08 |
0.082 |
0.12 |
0.11% |
0.01% |
0.13 |
0.14 |
| Acquired (underlying)
fund fees and expenses |
0.34 |
0.34 |
0.34 |
0.34 |
0.34 |
0.34 |
0.34 |
0.34 |
| Total annual fund
operating expenses |
0.67 |
1.42 |
0.67 |
0.71 |
0.45 |
0.35 |
0.71 |
1.48 |
| |
|
|
|
|
|
|
|
|
| Share class: |
529-E |
529-T |
529-F-1 |
529-F-2 |
529-F-3 |
ABLE-A |
ABLE-F-2 |
|
| Management
fees |
none |
none |
none |
none |
none |
none |
none |
|
| Distribution and/or
service (12b-1) fees |
0.50% |
0.25% |
0.25% |
none |
none |
0.20% |
none |
|
| Other expenses |
0.10 |
0.12 |
0.18 |
0.10% |
0.07% |
0.10 |
0.10% |
|
| Acquired (underlying)
fund fees and expenses |
0.34 |
0.34 |
0.34 |
0.34 |
0.34 |
0.34 |
0.34 |
|
| Total annual fund
operating expenses |
0.94 |
0.71 |
0.77 |
0.44 |
0.41 |
0.64 |
0.44 |
|
| Fee waiver |
— |
— |
— |
— |
— |
0.063 |
0.063 |
|
| Total annual fund
operating expenses after fee waiver |
0.94 |
0.71 |
0.77 |
0.44 |
0.41 |
0.58 |
0.38 |
|
| |
|
|
|
|
|
|
|
|
| Share class: |
R-1 |
R-2 |
R-2E |
R-3 |
R-4 |
R-5E |
R-5 |
R-6 |
| Management
fees |
none |
none |
none |
none |
none |
none |
none |
none |
| Distribution and/or
service (12b-1) fees |
1.00% |
0.75% |
0.60% |
0.50% |
0.25% |
none |
none |
none |
| Other expenses |
0.10 |
0.33 |
0.21 |
0.15 |
0.09 |
0.15% |
0.06% |
0.01% |
| Acquired (underlying)
fund fees and expenses |
0.34 |
0.34 |
0.34 |
0.34 |
0.34 |
0.34 |
0.34 |
0.34 |
| Total annual fund
operating expenses |
1.44 |
1.42 |
1.15 |
0.99 |
0.68 |
0.49 |
0.40 |
0.35 |
1
2
3
13 American
Funds Portfolio Series / Prospectus
Example
This example
is intended to help you compare the cost of investing in the fund with the cost
of investing in other mutual funds.
The example assumes that you
invest $10,000 in the fund for the time periods indicated and then redeem or
hold all of your shares at the end of those periods. The example also assumes
that your investment has a 5% return each year and that the fund’s operating
expenses remain the same. The example reflects the fee waiver described above
through the expiration date of such waiver and total annual fund operating
expenses thereafter. You may be required to pay brokerage commissions on your
purchases and sales of Class F-2, F-3, 529-F-2, 529-F-3 or ABLE-F-2 shares of
the fund, which are not reflected in the example. Although your actual
costs may be higher or lower, based on these assumptions your costs would
be:
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Share class: |
A |
C |
T |
F-1 |
F-2 |
F-3 |
529-A |
529-C |
529-E |
529-T |
529-F-1 |
529-F-2 |
529-F-3 |
ABLE A |
ABLE F-2 |
| 1 year |
$640 |
$245 |
$317 |
$73 |
$46 |
$36 |
$420 |
$251 |
$96 |
$321 |
$79 |
$45 |
$42 |
$407 |
$39 |
| 3 years |
777 |
449 |
459 |
227 |
144 |
113 |
569 |
468 |
300 |
471 |
246 |
141 |
132 |
542 |
135 |
| 5 years |
927 |
776 |
614 |
395 |
252 |
197 |
731 |
808 |
520 |
635 |
428 |
246 |
230 |
689 |
240 |
| 10 years |
1,362 |
1,497 |
1,064 |
883 |
567 |
443 |
1,202 |
1,278 |
1,155 |
1,110 |
954 |
555 |
518 |
1,115 |
549 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Share class: |
R-1 |
R-2 |
R-2E |
R-3 |
R-4 |
R-5E |
R-5 |
R-6 |
For the share classes
listed to the right, you would pay the following if you did not redeem
your shares: |
Share class: |
C |
529-C |
| 1 year |
$147 |
$145 |
$117 |
$101 |
$69 |
$50 |
$41 |
36 |
1 year |
$145 |
$151 |
| 3 years |
456 |
449 |
365 |
315 |
218 |
157 |
128 |
113 |
3 years |
449 |
468 |
| 5 years |
787 |
776 |
633 |
547 |
379 |
274 |
224 |
197 |
5 years |
776 |
808 |
| 10 years |
1,724 |
1,702 |
1,398 |
1,213 |
847 |
616 |
505 |
443 |
10 years |
1,497 |
1,278 |
Portfolio turnover
The fund may
pay transaction costs, such as commissions, when it buys and sells securities
(or “turns over” its portfolio). A higher portfolio turnover rate may indicate
higher transaction costs and may result in higher taxes when fund shares are
held in a taxable account. These costs, which are not reflected in annual fund
operating expenses or in the example, affect the fund’s investment results.
During the most recent fiscal year, the fund’s portfolio turnover rate was
2% of the average value of its
portfolio.
Principal
investment strategies The
fund will attempt to achieve its investment objective by investing in a mix of
American Funds in different combinations and weightings. The underlying American
Funds will predominately consist of equity funds in the growth,
growth-and-income, equity-income and balanced categories. However, the fund may
also invest in fixed income funds.
Through its investments in the
underlying funds, the fund will have significant exposure to growth-oriented
common stocks. The fund will seek to generate some of its income from exposure
to dividend paying stocks. The fund will seek exposure to investments outside
the United States, including in emerging markets. The investment adviser
believes that exposure to investments outside the United States can help provide
diversification when seeking current income and long-term growth of
capital.
With respect to its fixed
income investments, the underlying funds in which the fund invests may hold debt
securities with a wide range of quality and maturities. The fund may invest in
underlying funds with significant exposure to bonds rated BB+ or below and Ba1
or below by Nationally Recognized Statistical Rating Organizations designated by
the fund’s investment adviser, or unrated but determined by the fund’s
investment adviser to be of equivalent quality. Securities rated BB+ or below
and Ba1 or below are sometimes referred to as “junk bonds.” Exposure to lower
rated securities may help the fund achieve its objective of providing current
income.
The underlying funds may hold
securities issued and guaranteed by the U.S. government, securities issued by
federal agencies and instrumentalities and securities backed by mortgages or
other assets. The underlying funds may also invest in the debt securities of
governments, agencies, corporations and other entities domiciled outside the
United States.
The fund’s investment adviser
seeks to create combinations of underlying funds that complement each other with
a goal of achieving the fund’s investment objective of providing long-term
growth of capital while providing current income. In making this determination,
the fund’s investment adviser considers the historical volatility and returns of
the underlying funds and how various combinations would have behaved in past
market environments. It also considers, among other topics, current market
conditions and the investment positions of the underlying funds.
The fund’s investment adviser
periodically reviews the investment strategies and asset mix of the underlying
funds. The investment adviser will also consider whether overall market
conditions would favor a change in the exposure of the fund to various asset
types or geographic regions. Based on these considerations, the investment
adviser may make adjustments to underlying fund holdings by adjusting the
percentage of individual underlying funds within the fund, or adding or removing
underlying funds. The investment adviser may also determine not to change the
underlying fund allocations, particularly in response to short-term market
movements, if in its opinion the combination of underlying funds is appropriate
to meet the fund’s investment objective.
American Funds Portfolio
Series / Prospectus 14
Principal
risks This
section describes the principal risks associated with investing in the fund and
its underlying funds. You may lose money by investing in the fund. The
likelihood of loss may be greater if you invest for a shorter period of time.
Investors in the fund should have a long-term perspective and be able to
tolerate potentially sharp declines in value.
The following are
principal risks associated with investing in the fund.
Allocation
risk — Investments in the fund are subject to risks related to the
investment adviser’s allocation choices. The selection of the underlying funds
and the allocation of the fund’s assets could cause the fund to lose value or
its results to lag relevant benchmarks or other funds with similar
objectives.
Fund
structure — The fund invests in underlying funds and incurs expenses related
to the underlying funds. In addition, investors in the fund will incur fees to
pay for certain expenses related to the operations of the fund. An investor
holding the underlying funds directly and in the same proportions as the fund
would incur lower overall expenses but would not receive the benefit of the
portfolio management and other services provided by the fund. Additionally, in
accordance with an exemption under the Investment Company Act of 1940, as
amended, the investment adviser considers only proprietary funds when selecting
underlying investment options and allocations. This means that the fund’s
investment adviser does not, nor does it expect to, consider any unaffiliated
funds as underlying investment options for the fund. This strategy could
raise certain conflicts of interest when determining the overall asset
allocation of the fund or choosing underlying investments for the fund,
including the selection of funds that result in greater compensation to the
adviser or funds with relatively lower historical investment results. The
investment adviser has policies and procedures designed to mitigate material
conflicts of interest that may arise in connection with its management of the
fund.
Underlying
fund risks — Because the fund’s investments consist of underlying funds, the
fund’s risks are directly related to the risks of the underlying funds. For this
reason, it is important to understand the risks associated with investing in the
underlying funds, as described below.
The following are
principal risks associated with investing in the underlying
funds.
Market
conditions — The prices of, and the income generated by, the common stocks,
bonds and other securities held by the underlying funds may decline – sometimes
rapidly or unpredictably – due to various factors, including events or
conditions affecting the general economy or particular industries or companies;
overall market changes; local, regional or global political, social or economic
instability; governmental, governmental agency or central bank responses to
economic conditions; changes in inflation rates; and currency exchange rate,
interest rate and commodity price fluctuations.
Economies and financial
markets throughout the world are highly interconnected. Economic, financial or
political events, trading and tariff arrangements, wars, terrorism,
cybersecurity events, natural disasters, public health emergencies (such as the
spread of infectious disease), bank failures and other circumstances in one
country or region, including actions taken by governmental or quasi-governmental
authorities in response to any of the foregoing, could have impacts on global
economies or markets. As a result, whether or not the underlying funds invest in
securities of issuers located in or with significant exposure to the countries
affected, the value and liquidity of the underlying funds’ investments may be
negatively affected by developments in other countries and
regions.
Issuer
risks — The prices of, and the income generated by, securities held by the
underlying funds may decline in response to various factors directly related to
the issuers of such securities, including reduced demand for an issuer’s goods
or services, poor management performance, major litigation, investigations or
other controversies related to the issuer, changes in the issuer’s financial
condition or credit rating, changes in government regulations affecting the
issuer or its competitive environment and strategic initiatives such as mergers,
acquisitions or dispositions and the market response to any such initiatives. An
individual security may also be affected by factors relating to the industry or
sector of the issuer or the securities markets as a whole, and conversely an
industry or sector or the securities markets may be affected by a change in
financial condition or other event affecting a single
issuer.
Investing
in stocks — Investing in stocks may involve larger price swings and greater
potential for loss than other types of investments. As a result, the value of
the underlying funds may be subject to sharp declines in value. Income provided
by an underlying fund may be reduced by changes in the dividend policies of, and
the capital resources available at, the companies in which the underlying fund
invests. These risks may be even greater in the case of smaller capitalization
stocks.
15 American
Funds Portfolio Series / Prospectus
Investing
outside the United States — Securities of issuers domiciled outside the
United States or with significant operations or revenues outside the United
States, and securities tied economically to countries outside the United States,
may lose value because of adverse political, social, economic or market
developments (including social instability, regional conflicts, terrorism and
war) in the countries or regions in which the issuers are domiciled, operate or
generate revenue or to which the securities are tied economically. These
securities may also lose value due to changes in foreign currency exchange rates
against the U.S. dollar and/or currencies of other countries. Issuers of these
securities may be more susceptible to actions of foreign governments, such as
nationalization, currency blockage or the imposition of price controls,
sanctions, or punitive taxes, each of which could adversely impact the value of
these securities. Securities markets in certain countries may be more volatile
and/or less liquid than those in the United States. Investments outside the
United States may also be subject to different regulatory, legal, accounting,
auditing, financial reporting and recordkeeping requirements, and may be more
difficult to value, than those in the United States. In addition, the value of
investments outside the United States may be reduced by foreign taxes, including
foreign withholding taxes on interest and dividends. Further, there may be
increased risks of delayed settlement of securities purchased or sold by an
underlying fund, which could impact the liquidity of the fund’s portfolio. The
risks of investing outside the United States may be heightened in connection
with investments in emerging markets.
Investing
in debt instruments — The prices of, and the income generated by, bonds and
other debt securities held by an underlying fund may be affected by factors such
as the interest rates, maturities and credit quality of these securities.
Rising interest rates will
generally cause the prices of bonds and other debt securities to fall. Also,
when interest rates rise, issuers of debt securities which may be prepaid at any
time, such as mortgage- or other asset-backed securities, are less likely to
refinance existing debt securities, causing the average life of such securities
to extend. A general change in interest rates may cause investors to sell debt
securities on a large scale, which could also adversely affect the price and
liquidity of debt securities and could also result in increased redemptions from
the fund. Falling interest rates may cause an issuer to redeem, call or
refinance a debt security before its stated maturity, which may result in the
fund having to reinvest the proceeds in lower yielding securities. Longer
maturity debt securities generally have greater sensitivity to changes in
interest rates and may be subject to greater price fluctuations than shorter
maturity debt securities.
Bonds and other debt
securities are also subject to credit risk, which is the possibility that the
credit strength of an issuer or guarantor will weaken or be perceived to be
weaker, and/or an issuer of a debt security will fail to make timely payments of
principal or interest and the security will go into default. Changes in actual
or perceived creditworthiness may occur quickly. A downgrade or default
affecting any of the underlying funds’ securities could cause the value of the
underlying funds’ shares to decrease. Credit risk is gauged, in part, by the
credit ratings of the debt securities in which the underlying fund invests.
However, ratings are only the opinions of the rating agencies issuing them and
are not guarantees as to credit quality or an evaluation of market risk. The
underlying funds’ investment adviser relies on its own credit analysts to
research issuers and issues in assessing credit and default
risks.
Management
— The investment adviser to the fund and to the underlying funds actively
manages each underlying fund’s investments. Consequently, the underlying funds
are subject to the risk that the methods and analyses, including models, tools
and data, employed by the investment adviser in this process may be flawed or
incorrect and may not produce the desired results. This could cause an
underlying fund to lose value or its investment results to lag relevant
benchmarks or other funds with similar objectives.
Your investment in the
fund is not a bank deposit and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other governmental agency, entity or
person. You should consider how this fund fits into your overall
investment program.
American Funds Portfolio
Series / Prospectus 16
Investment
results The following
bar chart shows how the fund’s investment results have varied from year to year,
and the following table shows how the fund’s average annual total returns for
various periods compare with a broad measure of securities market results and
other applicable measures of market results. This information provides some
indication of the risks of investing in the fund. The Lipper
Mixed-Asset Target Allocation Growth Funds Index includes funds that disclose
investment objectives and/or strategies reasonably comparable to those of the
fund. Past investment results (before
and after taxes) are not predictive of future investment
results. Prior to October 30, 2020, certain fees, such as 12b-1
fees, were not charged on Class 529-F-1 shares. If these expenses had been
deducted, results would have been lower. Updated information on the fund’s
investment results can be obtained by visiting capitalgroup.com.
| |
|
|
|
|
|
| Average
annual total returns For
the periods ended December 31, 2022: |
| Share class |
Inception date |
1 year |
5 years |
10 years |
Lifetime |
| F-2
—
Before taxes |
5/18/2012 |
–15.73% |
5.71% |
8.20% |
8.88% |
| — After taxes on
distributions |
|
–17.02 |
4.33 |
7.02 |
N/A |
| — After taxes on
distributions and sale of fund shares |
|
–8.43 |
4.38 |
6.52 |
N/A |
| |
|
|
|
|
|
| Share
classes (before
taxes) |
Inception date |
1 year |
5 years |
10 years |
Lifetime |
| A
(with maximum sales
charge) |
5/18/2012 |
–20.70% |
4.24% |
7.33% |
8.04% |
| C |
5/18/2012 |
–17.28 |
4.70 |
7.30 |
8.02 |
| F-1 |
5/18/2012 |
–15.93 |
5.43 |
7.92 |
8.60 |
| F-3 |
1/27/2017 |
–15.61 |
5.82 |
N/A |
7.53 |
| 529-A
(with maximum sales
charge) |
5/18/2012 |
–18.85 |
4.69 |
7.53 |
8.22 |
| 529-C |
5/18/2012 |
–17.30 |
4.65 |
7.48 |
8.19 |
| 529-E |
5/18/2012 |
–16.06 |
5.20 |
7.65 |
8.33 |
| 529-F-1 |
5/18/2012 |
–15.76 |
5.65 |
8.13 |
8.81 |
| 529-F-2 |
10/30/2020 |
–15.70 |
N/A |
N/A |
5.36 |
| 529-F-3 |
10/30/2020 |
–15.62 |
N/A |
N/A |
5.44 |
| ABLE-A |
7/13/2018 |
–18.73 |
N/A |
N/A |
4.61 |
| ABLE-F-2 |
10/30/2020 |
–15.62 |
N/A |
N/A |
5.46 |
| R-1 |
5/18/2012 |
–16.49 |
4.68 |
7.13 |
7.81 |
| R-2 |
5/18/2012 |
–16.51 |
4.70 |
7.13 |
7.82 |
| R-2E |
8/29/2014 |
–16.29 |
4.98 |
N/A |
5.77 |
| R-3 |
5/18/2012 |
–16.13 |
5.15 |
7.61 |
8.29 |
| R-4 |
5/18/2012 |
–15.86 |
5.47 |
7.95 |
8.64 |
| R-5E |
11/20/2015 |
–15.70 |
5.67 |
N/A |
7.47 |
| R-5 |
5/18/2012 |
–15.65 |
5.76 |
8.25 |
8.94 |
| R-6 |
5/18/2012 |
–15.59 |
5.83 |
8.31 |
8.98 |
| |
|
|
|
|
| Indexes |
1 year |
5 years |
10 years |
Lifetime
(from Class F-2
inception) |
| S&P 500 Index
(reflects no deductions for sales charges, account fees, expenses or U.S.
federal income taxes) |
–18.11% |
9.42% |
12.56% |
12.96% |
| MSCI® All
Country World ex USA Index (reflects no deductions for sales charges,
account fees, expenses or U.S. federal income taxes) |
–16.00 |
0.88 |
3.80 |
5.30 |
| Bloomberg Global
Aggregate Index (reflects no deductions for sales charges, account fees,
expenses or U.S. federal income taxes) |
–16.25 |
–1.66 |
–0.44 |
–0.14 |
| Lipper Mixed-Asset
Target Allocation Growth Funds Index (reflects no deductions for sales
charges, account fees or U.S. federal income taxes) |
–15.88 |
5.11 |
7.51 |
8.09 |
After-tax
returns are shown only for Class F-2 shares; after-tax returns for other share
classes will vary. After-tax returns are
calculated using the highest individual federal income tax rates in effect
during each year of the periods shown and do not reflect the impact of state and
local taxes. Your actual after-tax returns
depend on your individual tax situation and likely will differ from the results
shown above. In addition, after-tax returns are not relevant if you hold your
fund shares through a tax-deferred arrangement, such as a 401(k) plan,
individual retirement account (IRA) or 529 college savings
plan.
17 American
Funds Portfolio Series / Prospectus
Management
Investment
adviser Capital Research and Management
Company
Portfolio
Solutions Committee The investment
adviser’s Portfolio Solutions Committee develops the allocation approach and
selects the underlying funds in which the fund invests. The members of the
Portfolio Solutions Committee, who are jointly and primarily responsible for the
portfolio management of the fund, are:
| |
|
|
Investment
professional/
Series
title (if applicable) |
Investment
professional
experience
in this fund |
Primary title with
investment adviser |
| Alan
N. Berro Senior Vice
President |
12 years |
Partner – Capital World
Investors |
| Michelle
J. Black Senior Vice
President |
4 years |
Partner – Capital
Solutions Group |
| Brittain
Ezzes Senior Vice
President |
Less than 1
year |
Vice President – Capital
Research Global Investors |
| Samir
Mathur President |
4 years |
Partner – Capital
Solutions Group |
| Wesley
K. Phoa Senior Vice
President |
12 years |
Partner – Capital
Solutions Group |
| John
R. Queen Senior Vice
President |
4 years |
Partner – Capital Fixed
Income Investors |
| Andrew
B. Suzman Senior Vice
President |
12 years |
Partner – Capital World
Investors |
Purchase
and sale of fund shares The
minimum amount to establish an account for all share classes is normally $250
and the minimum to add to an account is $50. For a payroll deduction retirement
plan account, payroll deduction savings plan account or employer-sponsored 529
account, the minimum is $25 to establish or add to an account. For accounts with
Class F-3 shares held and serviced by the fund’s transfer agent, the minimum
investment amount is $1 million.
If
you are a retail investor, you may sell (redeem) shares on any business day
through your dealer or financial professional or by writing to American Funds
Service Company® at P.O. Box 6007, Indianapolis, Indiana
46206-6007; telephoning American Funds Service Company at (800) 421-4225;
faxing American Funds Service Company at (888) 421-4351; or accessing our
website at capitalgroup.com. Please contact your plan administrator or
recordkeeper to sell (redeem) shares from your retirement plan.
Tax
information Dividends
and capital gain distributions you receive from the fund are subject to federal
income taxes and may also be subject to state and local taxes, unless you are
tax-exempt or your account is tax-favored.
Payments
to broker-dealers and other financial intermediaries If
you purchase shares of the fund through a broker-dealer or other financial
intermediary (such as a bank), the fund and the fund’s distributor or its
affiliates may pay the intermediary for the sale of fund shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your individual financial professional
to recommend the fund over another investment. Ask your individual financial
professional or visit your financial intermediary’s website for more
information.
American Funds Portfolio
Series / Prospectus 18
American Funds Moderate Growth and Income
Portfolio
Investment
objectives The
fund’s investment objectives are to provide current income and long-term growth
of capital and income.
Fees
and expenses of the fund This
table describes the fees and expenses that you may pay if you buy, hold and sell
shares of the fund. You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
For example, in addition to the fees and
expenses described below, you may also be required to pay brokerage commissions
on purchases and sales of Class F-2, F-3, 529-F-2, 529-F-3 or ABLE-F-2 shares of
the fund. You may qualify for a Class A sales charge
discount if you and your family invest, or agree to invest in the future, at
least $25,000 in American Funds. More
information about these and other discounts is available from your financial
professional, in the “Sales charge reductions and waivers” sections on page 86
of the prospectus and on page 109 of the fund’s statement of additional
information, and in the sales charge waiver appendix to the
prospectus.
| |
|
|
|
|
|
|
|
| Shareholder
fees (fees
paid directly from your investment) |
| Share class: |
A |
529-A
and
ABLE-A |
C
and
529-C |
529-E |
T
and
529-T |
All F, 529-F and
ABLE-F-2 share classes |
All
R
share
classes |
| Maximum sales charge
(load) imposed on purchases (as a percentage of offering price) |
5.75% |
3.50 |
none |
none |
2.50% |
none |
none |
| Maximum deferred sales
charge (load) (as a percentage of the amount redeemed) |
1.001 |
1.001 |
1.00% |
none |
none |
none |
none |
| Maximum sales charge
(load) imposed on reinvested dividends |
none |
none |
none |
none |
none |
none |
none |
| Redemption or exchange
fees |
none |
none |
none |
none |
none |
none |
none |
| |
|
|
|
|
|
|
|
|
| Annual
fund operating expenses (expenses
that you pay each year as a percentage of the value of your
investment) |
| Share class: |
A |
C |
T |
F-1 |
F-2 |
F-3 |
529-A |
529-C |
| Management
fees |
none |
none |
none |
none |
none |
none |
none |
none |
| Distribution and/or
service (12b-1) fees |
0.25% |
1.00% |
0.25% |
0.25% |
none |
none |
0.24% |
1.00% |
| Other expenses |
0.06 |
0.06 |
0.062 |
0.12 |
0.11% |
0.01% |
0.12 |
0.12 |
| Acquired (underlying)
fund fees and expenses |
0.34 |
0.34 |
0.34 |
0.34 |
0.34 |
0.34 |
0.34 |
0.34 |
| Total annual fund
operating expenses |
0.65 |
1.40 |
0.65 |
0.71 |
0.45 |
0.35 |
0.70 |
1.46 |
| |
|
|
|
|
|
|
|
|
| Share class: |
529-E |
529-T |
529-F-1 |
529-F-2 |
529-F-3 |
ABLE-A |
ABLE-F-2 |
|
| Management
fees |
none |
none |
none |
none |
none |
none |
none |
|
| Distribution and/or
service (12b-1) fees |
0.50% |
0.25% |
0.25% |
none |
none |
0.21% |
none |
|
| Other expenses |
0.10 |
0.122 |
0.17 |
0.11% |
0.07% |
0.09 |
0.09% |
|
| Acquired (underlying)
fund fees and expenses |
0.34 |
0.34 |
0.34 |
0.34 |
0.34 |
0.34 |
0.34 |
|
| Total annual fund
operating expenses |
0.94 |
0.71 |
0.76 |
0.45 |
0.41 |
0.64 |
0.43 |
|
| Fee waiver |
— |
— |
— |
— |
— |
0.063 |
0.063 |
|
| Total annual fund
operating expenses after fee waiver |
0.94 |
0.71 |
0.76 |
0.45 |
0.41 |
0.58 |
0.37 |
|
| |
|
|
|
|
|
|
|
|
| Share class: |
R-1 |
R-2 |
R-2E |
R-3 |
R-4 |
R-5E |
R-5 |
R-6 |
| Management
fees |
none |
none |
none |
none |
none |
none |
none |
none |
| Distribution and/or
service (12b-1) fees |
0.99% |
0.75% |
0.60% |
0.50% |
0.25% |
none |
none |
none |
| Other expenses |
0.09 |
0.33 |
0.21 |
0.15 |
0.10 |
0.15% |
0.06% |
0.01% |
| Acquired (underlying)
fund fees and expenses |
0.34 |
0.34 |
0.34 |
0.34 |
0.34 |
0.34 |
0.34 |
0.34 |
| Total annual fund
operating expenses |
1.42 |
1.42 |
1.15 |
0.99 |
0.69 |
0.49 |
0.40 |
0.35 |
1
2
3
19 American
Funds Portfolio Series / Prospectus