2008 year-end estimates and actuals: Capital gain distributions, qualified dividends and special dividends
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- Capital gain distributions
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Capital gain distribution actuals
Throughout the year, mutual funds realize gains and losses from selling securities in their portfolios. Tax laws require mutual funds to distribute the net gains from these sales to shareholders by year end.
The American Funds shown below paid year-end capital gain distributions in 2008. Distribution amounts are based on gains and losses realized through the fund’s fiscal year-end or October 31. No other funds paid year-end capital gain distributions in 2008.
Each fund’s capital gain distribution is the same across all share classes.
Year-end distributions of capital gains*
| Fund | Record date |
Payment date |
Actual per-share amounts | |
|---|---|---|---|---|
| Long-term | Short-term | |||
| American Mutual Fund® | 12/15 | 12/16 | $0.055 | — |
| EuroPacific Growth Fund® | 12/23 | 12/24 | $1.387 | — |
| New Perspective Fund® | 12/23 | 12/24 | $1.581 | — |
| Washington Mutual Investors FundSM | 12/19 | 12/22 | $0.495 | — |
* The following funds paid long-term capital gain distributions earlier this year: AMCAP® Fund paid $0.704 per share on 6/23 (record date: 6/20); American Balanced Fund® paid $0.140 per share on 2/19 (record date: 2/15); and Fundamental InvestorsSM paid $0.262 per share on 2/19 (record date: 2/15).
The effect of a capital gain on a fund’s price
When a capital gain distribution is paid, the net asset value per share is reduced by the amount of the payment plus or minus any change in the value of the fund’s holdings. Learn more.
Taxes on capital gain distributions
Recent legislation extended through 2010 the favorable tax rates that apply to long-term capital gains. These rates had been set to expire at the end of 2008.
- For individuals in tax brackets higher than 15%, the tax rate on long-term capital gains is 15%.
- For those whose tax brackets are 10% or 15%, there are no taxes on long-term capital gains through 2010.
You will be notified on Form 1099-DIV (mailed in late January 2009) of the actual amount of any long-term capital gain distributions.
For more information about capital gain distributions, read our FAQs or contact your financial adviser.
Funds that did not pay year-end capital gain distributions
- AMCAP Fund
- American Balanced Fund
- American High-Income Municipal Bond Fund®
- American High-Income TrustSM
- The Bond Fund of AmericaSM
- Capital Income Builder®
- Capital World Bond Fund®
- Capital World Growth and Income FundSM
- The Cash Management Trust of America®
- Fundamental Investors
- The Growth Fund of America®
- The Income Fund of America®
- Intermediate Bond Fund of America®
- The International Growth and Income FundSM
- The Investment Company of America®
- Limited Term Tax-Exempt Bond Fund of AmericaSM
- The New Economy Fund®
- New World FundSM
- SMALLCAP World Fund®
- Short-Term Bond Fund of AmericaSM
- The Tax-Exempt Bond Fund of America®
- The Tax-Exempt Fund of California®
- The Tax-Exempt Fund of Maryland®
- The Tax-Exempt Fund of Virginia®
- The Tax-Exempt Money Fund of AmericaSM
- U.S. Government Securities FundSM
- The U.S. Treasury Money Fund of AmericaSM
Please note that as described above, some funds paid capital gain distributions earlier this year.