Reducing sales charges on Class A, 529-A and ABLE-A shares

In determining sales charges, solely with respect to Class A shares, investors can combine their PPS Funds, American Funds and American Legacy account values with those of your spouse or spouse equivalent (if recognized by law) and children under 21 or ABLE accounts for disabled adult children, including:

*  Individual-type employee benefit plans, such as an IRA, single-participant Keogh-type plan, or a participant account of a 403(b) plan that is treated as an individual-type plan for sales charge purposes

• Trust accounts established by the above family members. If the person(s) who established the trust is deceased, the primary beneficiary can combine accounts.
• Solely controlled business accounts
• Single-participant retirement plans
• Endowments or foundations established and controlled by the investor or immediate family member
• CollegeAmerica® accounts, which will be aggregated at the account owner level (except Class 529-E accounts, which may only be aggregated with an eligible employer plan)
• ABLEAmerica® accounts

Direct purchases of money market funds, and American Legacy accounts established after March 31, 2007, cannot be aggregated.

Investments made by a trustee or other fiduciary for a single trust estate or fiduciary account and multiple-employee benefit plans of a single employer or affiliated employers, provided they are not aggregated with personal accounts, can be aggregated.

We do not aggregate accounts of investors who are affiliated with each other by virtue of being in an association.

Investments made for participant accounts of a 403(b) plan that is treated like an employer-sponsored plan, or multiple 403(b) plans of a single employer or affiliated employers, can be aggregated.

Investments made for nonprofit, charitable or educational organizations (or any employer-sponsored retirement plan for such an endowment or foundation) or any endowments or foundations established and controlled by the organization can be aggregated.

Aggregation of participant IRA accounts under a SEP or SIMPLE IRA plan depend on the plan agreement selected by the plan sponsor. When a plan sponsor signs an American Funds prototype agreement, all plan contributions are required to come to American Funds.

When a sponsor selects another prototype of an IRA Model Agreement, some of the contributions may come to American Funds, but the participants are not required to establish an account with American Funds. As a result, accounts will be aggregated as follows:

• Using the American Funds prototype SEP or SIMPLE IRA plan agreement will cause the participant account values to be aggregated for reduced sales charges on Class A shares. When the group assets reach a breakpoint, all plan participants benefit from the reduced sales charge. Participants’ accounts will not be linked with personal accounts.
• When the plan sponsor does not use an American Funds prototype agreement for the plan, the participants’ accounts will be linked to any other personal accounts they may have with American Funds. This may be advantageous for participants already invested in American Funds or those who plan to establish personal accounts in the future.

Investments made by a common trust fund or other diversified pooled accounts that are not specifically formed for the purpose of accumulating fund shares may be aggregated.

Some investment firms request accounts to be set up as “street name” or “nominee” accounts. This simply means that the investment firm has sole access, or that we have limited access, to their clients’ account information.

Since American Funds Service Company has little or no access to certain nominee or street name account information, we are generally unable to aggregate those accounts. You should check with your financial professional to determine if this applies to your account(s).

You can reduce the sales charge paid on Class A share purchases by establishing a statement of intention (SOI). An SOI allows an investor to combine fund purchases of all American Funds share classes (excluding American Funds U.S. Government Money Market Fund) and PPS Funds he or she intends to make over a 13-month period to determine the applicable sales charge. Employer-sponsored retirement plans are restricted from establishing statements of intention. American Legacy accounts established on or before March 31, 2007, may count toward an SOL Capital appreciation and reinvested dividends/capital gains do not apply toward these combined purchases.

A statement of intention lets you take immediate advantage of the maximum quantity discount* available.

• Capital appreciation and reinvested dividends/capital gains do not apply toward your combined purchases.
• If you do not complete your statement of intention during the 13-month period, an additional sales charge will be due on the investment(s) made under the agreement. This additional sales charge represents the difference between the sales charge actually paid and the higher sales charge due. Any adjustments will be reflected in an Account Confirmation and may result in corrected tax forms.

Special statement of intention rules apply to shareholders investing by payroll deduction. Please see the statement of additional information for details.

Contact your financial professional or call us to establish a statement of intention.

*American Legacy accounts established on or before March 31, 2007, may count toward a statement of intention.

You can reinvest proceeds from a redemption, dividend payment or capital gain distribution back into the same account from which the proceeds came without a sales charge, provided the reinvestment occurs within 90 days after the date of the transaction.

If your account has been closed, the money can be reinvested into another fund provided:

• the reinvestment occurs within 90 days after the date of the sale
• the money is reinvested in the same type of account as the account from which it came
• the account has the same owner

See your financial professional or the fund’s statement of additional information for details.