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Detailed Fund Information

U.S. Government Securities Fund® (bond fund)

Class B shares

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Please note: American Funds no longer allows new investments in Class B and 529-B shares.

Daily Prices

Updated April 16, 2014, 3:11PM Pacific time

Net Asset Value (NAV) $13.79
NAV Change $−0.01
Maximum Offering Price (MOP) $13.79

(All prices are subject to revision.)

Historical Prices & Distributions

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Ticker Symbols & Fund Numbers

Fund Number 222
Ticker/Quotron Symbol UGSBX
CUSIP Number 026300 20 2

Fund Description

Fund Objective The fund's investment objective is to provide a high level of current income consistent with prudent investment risk and preservation of capital.
Types of Investments Primarily invests in direct obligations of the U.S. Treasury, GNMA mortgage-backed securities, securities issued by U.S. government agencies or instrumentalities that are not backed by the full faith and credit of the U.S. government.
Maturity Not required to maintain any particular maturity.
Portfolio Restrictions At least 80% of the fund's assets will be invested in securities that are guaranteed or sponsored by the U.S. government.

Fund Facts

Minimum Initial Investment $250
Shareholder Accounts (aggregated for all share classes; updated monthly) 298,573
Regular Dividends Paid Monthly
Capital Gains Paid
Fund Inception October 17, 1985
Fiscal Year-End August

The months indicated for dividends and capital gains paid represent the anticipated current year ex-dividend date schedule for all share classes.

Returns & Expenses

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. Results shown at net asset value have all distributions reinvested. If a sales charge had been deducted, the results would have been lower. Share price and return will vary, so investors 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. Returns with sales charge for Class B shares reflect the deduction of a contingent deferred sales charge (up to 5%) on shares sold within the first six years of purchase. Returns with sales charge for Class B shares reflect the deduction of a contingent deferred sales charge (up to 5%) on shares sold within the first six years of purchase.

Rates of Return*

  Average Annual Total Returns
1 yr 3 yrs 5 yrs 10 yrs Fund Lifetime
March 31, 2014 (most recent month-end)
NAV -1.83% 2.02% 2.23% 3.06% 5.83%
With CDSC -6.68% 0.74% 1.87% 3.06% 5.83%
March 31, 2014 (most recent quarter-end)
NAV -1.83% 2.02% 2.23% 3.06% 5.83%
With CDSC -6.68% 0.74% 1.87% 3.06% 5.83%

Expense Ratios

U.S. Government Securities Fund 1.35%
Lipper General U.S. Government Funds Average 1.65%

12-Month Distribution Rates

As of March 31, 2014 (updated monthly)

NAV 0.27%

Annualized 30-Day SEC Yield

As of March 31, 2014 (updated monthly)

At net asset value 0.36%


Portfolio Summary

% of net assets as of March 31, 2014 (updated quarterly)

Agency Notes & Bonds 14.4%
Asset-Backed Obligations 0.0%
Cash & equivalents 9.7%
Mortgage-Backed Securities 22.7%
Other Federal Obligations 2.1%
U.S. Treasury Bonds & Notes 51.1%

Quality Summary

% of net assets as of March 31, 2014 (updated quarterly)

U.S. Treasuries/Agencies 67.6%
AAA/Aaa 22.7%
CCC & Below 0.0%
Unrated 0.0%
Cash & equivalents 9.7%

as of March 31, 2014 (updated quarterly)

Average Life (years) 7.6
Average Duration (years) 5.5

Bond ratings, which typically range from AAA/Aaa (highest) to D (lowest), are assigned by credit rating agencies such as Standard & Poor’s, Moody’s and/or Fitch, as an indication of an issuer’s creditworthiness. If agency ratings differ, the security will be considered to have received the highest of those ratings, consistent with the fund’s investment policies. Securities in the Unrated category have not been rated by a rating agency; however, the investment adviser performs its own credit analysis and assigns comparable ratings that are used for compliance with fund investment policies.

U.S. government obligations are guaranteed by the full faith and credit of the United States government. Unlike average maturity, average life includes the impact of callable bonds.

Portfolio Holdings

(updated quarterly, upon availability)

Asset Mix

as of March 31, 2014 (updated monthly)

U.S. Bonds 90.3%
Cash & Equivalents 9.7%

Assets and Portfolio Turnover (for fiscal years)

Fiscal Year Fund Assets (billions) Portfolio Turnover
2013 $6.3 488%
2012 $7.3 353%
2011 $6.6 212%
2010 $7.8 95%
2009 $7.3 166%

Assets shown are for combined share classes.

Portfolio Managers

Number of years with American Funds or affiliates
Thomas H. Høgh 23
Fergus N. MacDonald 10
Wesley K.-S. Phoa 14

(as of the prospectus dated November 1, 2013)

The portfolio managers shown are reflected in the fund’s most recent prospectus.

Important Legal Information

Fund shares are not guaranteed by the U.S. government.

The return of principal in bond funds is not guaranteed. Bond funds have the same interest rate, inflation and credit risks that are associated with the underlying bonds owned by the fund.

* Investment results assume all distributions are reinvested and reflect applicable fees and expenses. Class B shares were first offered on March 15, 2000. Class B share results prior to the date of first sale are hypothetical based on Class A share results without a sales charge, adjusted for estimated additional annual expenses over the first eight years. Class B shares convert to Class A shares after eight years. View dates of first sale and specific expense adjustment information for Class B shares.

  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.

Source for Lipper expense ratio comparison: Lipper, based on back-end load funds, excluding funds of funds, for the most recent fiscal year-ends available as of March 31, 2014. The fund’s expense ratio is as of the fund’s prospectus. The expense ratios do not reflect sales charges.

The SEC yield reflects the rate at which the fund is earning income on its current portfolio of securities, while the distribution rate reflects the fund's past dividends paid to shareholders. Accordingly, the fund's SEC yield and distribution rate may differ.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses, summary prospectuses and CollegeAmerica Program Description, which can be obtained from a financial professional and should be read carefully before investing. CollegeAmerica is distributed by American Funds Distributors® and sold through unaffiliated intermediaries.