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:* 1.41%
- Investment expenses paid annually: $14.10 for a $1,000 balance
- Ticker symbol: BALCX
*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 3/31/14; holdings are subject to change)
- Microsoft 3.2%
- Wells Fargo 2.9%
- Amazon 2.7%
- Home Depot 2.4%
- Boeing 2.3%
- Merck 2.0%
- American Express 2.0%
- Berkshire Hathaway 1.7%
- Comcast 1.7%
- Lockheed Martin 1.6%
Where the fund was invested
(as of 3/31/14; 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. (Class C shares were first offered on March 15, 2001 (on February 21, 2014, in funds in the American Funds Target Date Retirement Series). Class C share returns prior to the date of the first sale are hypothetical results based on Class A share returns without a sales charge, adjusted for typical additional annual expenses of about 0.82% on average over the first 10 years. Shares of some funds were not sold on the first day available; please see the fund’s most recent shareholder report for the actual date of first sale.)
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. Unless otherwise indicated, all results are calculated at net asset value. Returns at net asset value would have been lower if the contingent deferred sales charge had been deducted. Returns with CDSC reflect deduction of a contingent deferred sales charge (1%) on shares sold within the first year of purchase.
Average annual total returns through 3/31/14
Class C Shares
|Latest10 years||Latest5 years||Latest3 years||Latestyear|
|At net asset value||6.02%||15.66%||11.00%||14.75%|
Investment results reflect the deduction of applicable fees and expenses and the reinvestment of all distributions. The investment adviser is currently waiving its management fee of 0.10% and reimbursing a portion of other expenses. Investment results shown reflect the waiver and/or any current reimbursements, without which the results would have been lower. After December 31, 2014, the adviser may modify or terminate the waiver, but only with fund board approval. The reimbursement will be in effect through at least December 31, 2014, unless modified or terminated by the fund’s board. The adviser may elect at its discretion to extend, modify or terminate the reimbursement at that time. See results without waivers and/or reimbursements. Read details about how waivers and/or reimbursements affect the results for each fund.
Class C shares were first offered on March 15, 2001. Class C share returns prior to the date shares first sold are hypothetical. Hypothetical returns prior to the date of first sale were calculated by adjusting Class A share results without a sales charge for the difference between the Class A share expense ratio and the estimated Class C share expense ratio as of the date of first sale over the first 10 years. See the dates of first sale and expense adjustments for Class C shares. Please see the fund prospectus for more information about specific expenses.
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.
A 1% contingent deferred sales charge may apply to Class C shares sold within one year of purchase. Class C shares convert to Class F-1 shares after 10 years.
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.
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.