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Detailed Fund Information

CollegeAmerica (R) is a nationwide plan sponsored by Virginia 529 (SM)

Intermediate Bond Fund of America® (bond fund)

CollegeAmerica® Plans

Class 529-A shares

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How do the share classes differ?

Daily Prices

Updated July 11, 2014, 3:15PM Pacific time

Net Asset Value (NAV) $13.57
NAV Change $0.01
Maximum Offering Price (MOP) $13.92

(All prices are subject to revision.)

Historical Prices & Distributions

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Ticker Symbols & Fund Numbers

Fund Number 1023
Ticker/Quotron Symbol CBOAX
CUSIP Number 458809 50 6

Fund Description

Fund Objective The fund's investment objective is to provide current income consistent with its maturity and quality standards described in the prospectus and preservation of capital.
Distinguishing Characteristics The fund offers an attractive middle course between short-term instruments, such as money market funds (which usually offer greater stability of principal) and longer-term bond funds (which generally offer higher yields).
Types of Investments Primarily invests in corporate bonds, U.S. government bonds or notes, GNMA certificates and other mortgage-related securities, as well as cash.
Maturity The fund's portfolio will have dollar-weighted average maturities of no less than three years and no greater than five years.
Portfolio Restrictions The fund invests primarily in debt securities rated A or better and may invest up to 10% of its assets in debt securities rated BBB/Baa (or unrated, but determined by the fund’s investment adviser to be of equivalent quality).

Fund Facts

Minimum Initial Investment $250
Shareholder Accounts (aggregated for all share classes; updated monthly) 523,339
Regular Dividends Paid Monthly
Capital Gains Paid
Fund Inception February 19, 1988
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 529-A shares reflect payment of the 2.50% maximum sales charge at the beginning of the stated periods. The maximum initial sales charge was 3.75% prior to November 1, 2006. Definitions and other important legal information about these prices and returns are shown below.

Rates of Return*

  Average Annual Total Returns
1 yr 3 yrs 5 yrs 10 yrs Fund Lifetime
June 30, 2014 (most recent month-end)
NAV 2.11% 1.61% 2.90% 2.84% 5.01%
With sales charge -0.41% 0.75% 2.38% 2.58% 4.91%
June 30, 2014 (most recent quarter-end)
NAV 2.11% 1.61% 2.90% 2.84% 5.01%
With sales charge -0.41% 0.75% 2.38% 2.58% 4.91%

Expense Ratios

Intermediate Bond Fund of America 0.70%
Lipper Short-Intermediate Investment-Grade Debt Funds Average 0.86%

12-Month Distribution Rates

As of June 30, 2014 (updated monthly)

NAV 1.19%
With sales charge 1.16%

Annualized 30-Day SEC Yield

As of June 30, 2014 (updated monthly)

With sales charge 0.52%


Portfolio Summary

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

Asset-Backed Obligations 1.3%
Cash & equivalents 6.3%
Federal Agency Obligations Non-Mortgage 3.6%
Mortgage-Backed Securities 8.8%
Municipal Securities 0.6%
Non-U.S. Bonds 11.5%
U.S. Corporate Bonds 17.5%
U.S. Equities 0.0%
U.S. Treasuries 50.4%

Quality Summary

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

U.S. Treasuries/Agencies 54.0%
AAA/Aaa 10.5%
AA/Aa 7.6%
A 14.0%
BBB/Baa 7.6%
CCC & Below 0.0%
Unrated 0.0%
Cash & equivalents 6.3%

as of March 31, 2014 (updated quarterly)

Average Life (years) 3.9
Average Duration (years) 3.4

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 May 31, 2014 (updated monthly)

U.S. Equities 0.0%
U.S. Bonds 86.6%
Non-U.S. Bonds 10.5%
Cash & Equivalents 2.9%

Assets and Portfolio Turnover (for fiscal years)

Fiscal Year Fund Assets (billions) Portfolio Turnover
2013 $9.3 199%
2012 $9.7 146%
2011 $9.1 80%
2010 $9.5 43%
2009 $7.4 87%

Assets shown are for combined share classes.

Portfolio Managers

Number of years with American Funds or affiliates
Mark A. Brett 20
David S. Lee 11
Fergus N. MacDonald 10
John H. Smet 30

(as of the prospectus dated November 1, 2013)

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

Important Legal Information

CollegeAmerica is sponsored by Virginia529. But you can invest no matter where you live, and your beneficiary can go to school in any state. However, if you reside in a state other than Virginia, there may be an in-state plan that offers tax and other benefits not available in CollegeAmerica. Before investing in any state’s 529 plan, you should consult your tax adviser.

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 529-A shares were first offered on February 15, 2002. Class 529-A 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. View dates of first sale and specific expense adjustment information for Class 529-A 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 front-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.