American Balanced Fund®
American Balanced Fund may be appropriate for:
- Investors who want the income of bonds and the growth opportunities of stocks
- Income-oriented investors looking for a conservative entry into the stock market
- Investors who want to simplify their portfolio
The investment objectives of the fund are: (1) conservation of capital, (2) current income and (3) long-term growth of capital and income.
The fund is managed by Capital Research and Management Company, one of the nation’s oldest, largest and most respected investment management firms. Since 1931, Capital Research has invested with a long-term focus based on thorough research and attention to risk.
- Began operations: 7/26/75
- Expense ratio:* 0.61%
- Investment expenses paid annually: $6.10 for a $1,000 balance
- Ticker symbol: ABALX
*Fund expenses are as of each fund’s prospectus. Please see the fund’s most recent prospectus for details.
You can estimate the investment expenses you’re paying annually by multiplying your balance in the fund by the expense ratio.
Top 10 holdings
(Percentage of net assets shown are for the most recent period available as of 1/31/14; holdings are subject to change)
- Amazon 2.9%
- Microsoft 2.8%
- Wells Fargo 2.8%
- Home Depot 2.8%
- Boeing 2.5%
- American Express 2.0%
- Merck 2.0%
- Comcast 1.6%
- Berkshire Hathaway 1.6%
- Texas Instruments 1.5%
Where the fund was invested
(as of 1/31/14; percentage of net assets; holdings are subject to change)
The bar graph below shows the fund’s annual results and illustrates the fund’s fluctuations over the past 10 years. (The percentages are shown at net asset value, updated annually as of 12/31. If the results reflected deduction of the maximum sales charge of 5.75%, they would have been lower.)
Figures shown are past results and are not predictive of results in future periods. Current and future results may be lower or higher than those shown here. For more current information and month-end results, click here. Share price and return will vary, so you may lose money. Investing for short periods makes losses more likely. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Average annual total returns through 12/31/13
|Latest10 years||Latest5 years||Latest3 years||Latestyear|
|At net asset value||6.98%||14.58%||13.01%||21.73%|
|At maximum offering price
(Class A shares, with 5.75% maximum sales charge)
Investment results reflect the deduction of applicable fees and expenses and the reinvestment of all distributions. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Read details about how waivers and/or reimbursements affect the results for each fund.
In applying any particular asset allocation model to your own individual situation, you should consider your other assets, income and investments. For example, in addition to your retirement plan investments, you should consider any investments (including those in an Individual Retirement Account) and savings accounts.
The return of principal for the bond holdings in American Balanced Fund is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings.
Fund results and expense ratio information listed above apply to Class A shares only. The results and expense ratio information for the investments in your plan may differ.
SIMPLE IRA and SEP plans only:
Additional share class options are available without an up-front sales charge. There is no sales charge on Class A shares for plans with over $1 million invested in American Funds. Class B shares have higher expenses than Class A shares and a contingent deferred sales charge (CDSC) (up to 5%) if shares are sold within the first six years of purchase. Class B shares convert to Class A shares in the month of the eighth anniversary of purchase. Class C shares have higher expenses than Class A shares and a 1% CDSC if shares are sold within the first year of purchase. Class C shares convert to Class F-1 shares in the month of the 10th anniversary of purchase. Class F-1 shares have expenses similar to Class A share expenses, and carry an annual asset-based fee that is charged by participating broker-dealers. Your financial professional can help you decide which option is best for you.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from your plan’s financial professional or downloaded and should be read carefully before investing. You can find a link to the prospectus at the top of the page.