American Funds Short-Term Tax-Exempt Bond Fund®
Limited Term Tax-Exempt Bond Fund of America® The Tax-Exempt Bond Fund of America® American High-Income Municipal Bond Fund® The Tax-Exempt Fund of California® American Funds Tax-Exempt Fund of New York®
Prospectus Supplement
June 1, 2020 (for prospectus dated October 1, 2019, as supplemented to date) |
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1. The following is added
to the end of the “Sales charge reductions and waivers” section of the prospectus:
Other sales charge waivers Purchases
of Class A shares through a self-clearing broker-dealer firm generally incur a sales charge. However, self-clearing broker-dealer
firms may extend the 90 day right of reinvestment to allow reinvestment in Class A shares without a sales charge in cases where
fund shareholders request reinvestment of a required minimum distribution from an Individual Retirement Account if such requirement
is waived by regulation or legislation (“waived RMD reinvestment”), provided that the self-clearing broker-dealer firm
has specific language in this prospectus to such effect. If a self-clearing firm does not have their own policies listed in the
prospectus waived RMD reinvestments are not available without a sales charge. Firm specific language is located in the Appendix
to the prospectus. A self-clearing broker-dealer firm is a firm that holds some or all of the assets in your account, executes
trades for the assets held on its platform internally rather than through the fund’s transfer agent or a third-party clearing
firm and provides account statements and tax reporting to you. The largest broker-dealer firms are typically self-clearing. For
all other broker-dealer firms, shares purchased through a waived RMD reinvestment are available at net asset value.
For accounts held with the fund’s transfer agent, purchases of Class A shares through waived RMD reinvestments are not subject to sales charges. If you have any questions, ask your financial advisor whether Class A shares purchased through these policies are available without a sales charge.
Waived RMD investments distributed from Class C shares will be reinvested in C shares. In addition, any contingent deferred sales charge paid on Class A and Class C share distributions under this policy will be credited to your account when reinvested.
2. The information under the heading “Morgan Stanley Wealth Management Class A share front-end sales charge waiver”
in the “Appendix – Sales charge waivers” section of the prospectus is amended to read as follows:
Morgan Stanley Wealth Management Class A share front-end sales charge waiver
Morgan Stanley Wealth Management clients purchasing or converting to Class A shares of the fund through Morgan Stanley transactional brokerage accounts are entitled to a waiver of the front-end load in the following additional circumstances:
| · | Morgan Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules. |
| · | Shares purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund. |
| · | Class C (level load) share positions that are no longer subject to a contingent deferred sales charge and are converted to a Class A share in the same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program. |
| · | Effective June 1, 2020, Morgan Stanley, on your behalf, can convert Class F-1 shares to Class A shares without a sales charge if they were initially transferred to the transactional brokerage account or converted from Class C shares. |
| · | Shares purchased from the proceeds of redemptions within the same fund family under a Rights of Reinstatement provision, provided the repurchase occurs within 90 days following the redemption, the redemption and purchase occur in the same account, and redeemed shares were subject to a front-end or deferred sales load. |
Effective June 30, 2020, Morgan Stanley Wealth Management clients purchasing or converting to Class 529-A shares of the fund through Morgan Stanley transactional brokerage accounts are entitled to a waiver of the front-end load in the following additional circumstances:
| · | Shares purchased through a rollover from another 529 plan. |
| · | Recontribution(s) of a refunded qualified higher education expense. |
Unless specifically described above, no other front-end
load waivers are available to mutual fund purchases by Morgan Stanley Wealth Management clients.
3. The following is added to the end of the “Appendix
– Sales charge waivers” section of the prospectus:
Oppenheimer & Co., Inc. (OPCO)
Effective June 1, 2020 shareholders purchasing fund shares through an OPCO platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this fund’s prospectus or SAI.
Front-end sales load waivers on Class A shares available at OPCO
| · | Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family) |
| · | Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (known as Rights of Restatement) |
| · | A shareholder in the fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share class) of the fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO |
| · | Employees and registered representatives of OPCO or its affiliates and their family members |
| · | Directors or trustees of the fund, and employees of the fund’s investment adviser or any of its affiliates, as described in this prospectus |
CDSC waivers on Class A and C shares available at OPCO
| · | Death or disability of the shareholder |
| · | Shares sold as part of a systematic withdrawal plan as described in the fund’s prospectus |
| · | Return of excess contributions from an IRA Account |
| · | Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based on applicable IRS regulations as described in the prospectus |
| · | Shares sold to pay OPCO fees but only if the transaction is initiated by OPCO |
| · | Shares acquired through a right of reinstatement |
Front-end load discounts available at OPCO: breakpoints, rights of accumulation and letters of intent
| · | Breakpoints as described in this prospectus. |
| · | Rights of accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the
aggregated holding of fund family assets held by accounts within the purchaser’s household at OPCO. Eligible fund family
assets not held at OPCO may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about
such assets. |
Keep this supplement with your prospectus.
Lit. No. MFGEBS-406-0620P Printed in USA CGD/AFD/10039-S80976
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Statement of Additional June 1, 2020
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For the following funds with statements of additional information
dated July 1, 2019 – March 1, 2020
(as supplemented to date):
| American Balanced Fund® | Capital World Bond Fund® |
| American Funds Corporate Bond Fund® | Capital World Growth and Income Fund® |
| American Funds Developing World Growth and Income FundSM | Fundamental Investors® |
| American Funds Emerging Markets Bond Fund® | The Growth Fund of America® |
| American Funds Global Balanced FundSM | The Income Fund of America® |
| American Funds Global Insight FundSM | Intermediate Bond Fund of America® |
| American Funds Inflation Linked Bond Fund® | International Growth and Income FundSM |
| American Funds International Vantage FundSM | The Investment Company of America® |
| American Funds Mortgage Fund® | Limited Term Tax-Exempt Bond Fund of America® |
| American Funds Short-Term Tax-Exempt Bond Fund® | The New Economy Fund® |
| American Funds Strategic Bond FundSM | New Perspective Fund® |
| American Funds Tax-Exempt Fund of New York®` | New World Fund, ® Inc. |
| American Funds U.S. Government Money Market FundSM | Short-Term Bond Fund of America® |
| American High-Income Municipal Bond Fund® | SMALLCAP World Fund® |
| American High-Income Trust® | The Tax-Exempt Bond Fund of America® |
| American Mutual Fund® | The Tax-Exempt Fund of California® |
| The Bond Fund of America® | U.S. Government Securities Fund® |
| Capital Income Builder® | Washington Mutual Investors FundSM |
Changes apply to all funds unless otherwise noted below.
1. The table under the heading “Portfolio manager fund holdings and other managed accounts” in the “Management
of the fund” section of The Income Fund of America statement of additional information is amended to read as follows. Footnotes
in the statement of additional information remain unchanged.
| Portfolio manager |
Dollar range of fund shares owned1 |
Number of other registered investment companies (RICs) for which portfolio manager is a manager (assets of RICs in billions)2 |
Number of other pooled investment vehicles (PIVs) for which portfolio manager is a manager (assets of PIVs in billions)2 |
Number of other accounts for which portfolio manager is a manager (assets of other accounts in billions) 2,3 | |||
| Hilda L. Applbaum | Over $1,000,000 | 2 | $148.7 | 2 | $1.41 | None | |
| Andrew B. Suzman | Over $1,000,000 | 21 | $367.1 | 2 | $0.47 | None | |
| David A. Daigle | Over $1,000,000 | 5 | $60.1 | 3 | $0.98 | 2 | $0.69 |
| Paul Flynn | $100,001 – $500,000 | 2 | $6.7 | 3 | $1.76 | None | |
| James R. Mulally | Over $1,000,000 | 7 | $179.9 | 1 | $0.12 | None | |
| Dina N. Perry | Over $1,000,000 | 1 | $101.3 | 2 | $5.61 | None |
| Pramod Atluri | $100,001 – $500,000 | 3 | $204.3 | None | None | |
| Anirudh Samsi | $500,001 – $1,000,000 | 1 | $0.4 | 2 | $1.41 | None |
| Shannon Ward | $100,001 – $500,000 | 3 | $18.1 | 1 | $0.05 | None |
| Joyce E. Gordon | Over $1,000,000 | 5 | $306.0 | 6 | $1.16 | None |
| Caroline Randall | $100,001 – $500,000 | None | 1 | $0.22 | None | |
| Bradley J. Vogt | Over $1,000,000 | 6 | $289.2 | 3 | $2.19 | None |
2. The fourth paragraph under the heading “Moving between share classes” in the “Purchase and exchange of shares”
section is amended to read as follows:
Exchanging Class F shares for Class A shares — You can exchange Class F shares held in a qualified fee-based program
for Class A shares without paying an initial Class A sales charge if you are leaving or have left the fee-based program. Your financial
intermediary can also convert Class F-1 shares to Class A shares without a sales charge if they are held in a brokerage account
and they were initially transferred to the account or converted from Class C shares. You can exchange Class F shares received in
a conversion from Class C shares for Class A shares at any time without paying an initial Class A sales charge if you notify American
Funds Service Company of the conversion when you make your request. If you have already redeemed your Class F shares, the foregoing
requirements apply and you must purchase Class A shares within 90 days after redeeming your Class F shares to receive the Class A
shares without paying an initial Class A sales charge.
3. The following is added to the end of the sub-section captioned “Statement of intention” in the “Sales charge
reductions and waivers” section of the statement of additional information for each of the funds listed above (other than
American Funds U.S. Government Money Market Fund):
The Statement period may be extended in cases where the fund’s distributor determines it is appropriate to do so; for example
in periods when there are extenuating circumstances such as a natural disaster that may limit an individual’s ability to
meet the investment required under the Statement.
Keep this supplement with your statement of additional information.
Lit No. MFGEBS-409-0620O CGD/10149-S80996