American Funds®

PORTFOLIO SERIES

SM

Share Class

Summary

Seeking growth and income. The fund of funds seeks to help investors build assets over time through exposure to a wide variety of stock investments as well as income from dividend-paying companies and fixed-income securities.
Price at NAV $13.89
as of 05/28/2015 (updated daily)
Fund Assets (millions) $4,502.1 Portfolio Oversight
Committee Members 7
Expense Ratio 0.79% Prospectus (PDF)

Underlying Funds

Growth 20%
The Growth Fund of America ® 20%
Growth-and-Income 40%
Capital World Growth and Income Fund ® 20%
The Investment Company of America ® 20%
Equity-Income 24.9%
Capital Income Builder ® 24.9%
Bond 15.1%
Capital World Bond Fund ® 15.1%
As of 3/31/2015 (updated quarterly).

Asset Mix

U.S. Equities50.9%
Non-U.S. Equities25.5%
U.S. Bonds9.8%
Non-U.S. Bonds8.8%
Cash & Equivalents5.0%

As of 4/30/2015 (updated monthly).

Fund Statistics

8.6 years
Average Life
6.4 years
Average Duration
2.5%
Average Yield
to Maturity
3.7%
Average Coupon
% of net assets as of 3/31/2015 (updated quarterly).

Market Capitalization

89.3%
Large
10.2%
Medium
0.5%
Small
$53,869.14 Million
Weighted Average


As of 03/31/2015 (updated quarterly). Morningstar data as of 03/31/2015 (updated quarterly).
For Class A Shares, this chart tracks a hypothetical investment with dividends reinvested.
GAIOX

Description

Fund Objective
The fund's investment objective is to provide long-term growth of capital while providing current income.
Distinguishing Characteristics
The fund will attempt to achieve its investment objectives by investing in a mix of American Funds in different combinations and weightings.
Types of Investments
The underlying American Funds may represent a variety of fund categories such as growth funds, growth-and-income funds, equity-income funds, balanced funds and bond funds.

Fund Facts

Fund Inception 05/18/2012
Fund Assets (millions)
As of 4/30/2015 (updated monthly).
$4,502.1
Companies/Issuers
Holdings are as of 10/31/2014 (updated as of most recent fiscal year-end).
1100+
Shareholder Accounts
Shareholder accounts are as of 4/30/2015 (updated monthly).
124,434
Regular Dividends Paid Mar, Jun, Sep, Dec
Minimum Initial Investment $250
Capital Gains Paid Dec
Portfolio Turnover (2014) 0%
Fiscal Year-End Oct
Prospectus Date 01/01/2015
CUSIP 02630R 20 3
Fund Number 51

Returns

ANNUAL RETURNS CHART
Returns at NAV | With Sales Charge
GAIOX
Standard & Poor's 500 Composite Index

Volatility & Return


Volatility & Return chart is not available for funds less than 10 years old.

Yield

12-month
Distribution Rates
30-day SEC Yield
Fund at NAV 2.20% N/A
Fund at MOP 2.08% 1.66%
As of 04/30/2015 (updated monthly).

Valuation

Price/ Price/ Price/
Book Cash Flow Earnings
Fund 2.58 9.14 17.43
Standard & Poor's 500 Composite Index 2.60 9.26 18.46
Fund as of 3/31/15. Index as of 4/30/15.

Portfolio Oversight Committee

LEARN ABOUT THE CAPITAL SYSTEMSM
Years of Experience with Fund
Years of Experience with Capital Group
Years of Experience with Investment Industry
Alan N. Berro 29 24 3
Joanna F. Jonsson 26 24 1
James B. Lovelace 33 33 3
Wesley K.-S. Phoa 21 16 3
John H. Smet 33 31 3
Andrew B. Suzman 21 21 3
Bradley J. Vogt 27 27 3
A boldface number indicates that years of experience with Capital Group is equal to years of experience with investment industry.

Ratings & Risk


Overall Morningstar RatingTM
Funds rated (--)
--
3-yr. Morningstar RatingTM
(-- funds rated)
--
5-yr. Morningstar RatingTM
(-- funds rated)
--
10-yr. Morningstar RatingTM
(-- funds rated)
--
Overall Morningstar Risk
--
Category Aggressive Allocation
ADVANTAGES AND DISADVANTAGES OF MORNINGSTAR RATINGS
Ratings are based on risk-adjusted returns as of -- (updated monthly).

Risk Measures

For the 3 Years ending 4/30/15 (updated monthly). R-squared, Beta and Capture Ratio calculated using the Morningstar Moderate Target Risk.

Fund
Standard Deviation --
Sharpe Ratio --
R-squared --
Beta --
Capture Ratio (Downside/Upside) --/--
U.S. Treasuries/Agencies
5.1%
AAA/Aaa
2.4%
AA/Aa
1.2%
A
4.1%
BBB/Baa
4.3%
BB/Ba
0.7%
B
0.6%
CCC & Below
0.1%
Unrated
0.1%
Cash & equivalents
5.6%
% of net assets as of 3/31/2015 (updated quarterly).

Average Life Breakdown

0-4.9 Years
7.2%
5-9.9 Years
8.7%
10-19.9 Years
1.0%
20-29.9 Years
1.6%
30+ Years
0.1%
% of net assets as of 03/31/2015 (updated quarterly).

Holdings

Equity Fund Holdings
Health care 13.5%
Information technology 10.6%
Financials 9.7%
Consumer discretionary 9.4%
Industrials 7.6%
Consumer staples 7.3%
Energy 6.3%
Telecommunication services 4.9%
Utilities 3.8%
Materials 2.7%

% of net assets as of 3/31/2015 (updated quarterly).

Go to the underlying fund pages to see detailed holdings information.

Geographic Breakdown

United States
61%
Europe
21.6%
Asia & Pacific Basin
8.3%
Other (Including Canada & Latin America)
3.5%
Cash & equivalents
5.6%
% of net assets as of 3/31/2015 (updated quarterly).

Prices & Distributions

FIND HISTORICAL PRICES
2015
2006-2015

2015
Record
Date
Calculated
Date
Pay Date
Income Dividend
Regular
Income Dividend
Special
Cap. Gains
Long-Term
Cap. Gains
Short-Term
Reinvest NAV
03/25/15 03/25/15 03/26/15 $0.0648 $0.00 $0.00 $0.00 $13.60
2015 Year-to-Date:
Dividends Subtotal: $0.0648
Cap Gains Subtotal: $0.00
Total Distributions: $0.0648

Fees & Expenses

Fees

Annual Management Fees 0.10%
Other Expenses 0.12%
Service 12b-1 0.20%
As of each fund's most recent prospectus.

Expense Ratio

Gross Net
Fund 0.79% 0.69%
Lipper Growth & Income Funds Average 1.17%

Resources

Prospectuses & Reports for GAIOX

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. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely.

Returns shown at net asset value (NAV) have all distributions reinvested. If a sales charge had been deducted, the results would have been lower.

Returns with sales charge for Class A shares reflect payment of the 5.75% maximum sales charge.

View fund expense ratios and returns.

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 a financial professional and should be read carefully before investing.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

There may have been periods when the fund has lagged the index or indexes. Certain market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

Funds are actively managed, so holdings will change.

For Portfolio Series funds, the investment adviser is currently waiving its management fee of 0.10% through December 31, 2015, without which the results would have been lower and net expense ratio higher. Per the terms for each specific fund and subject to fund board approval, the investment adviser may elect to extend, modify or terminate the waiver. Please see each fund's most recent prospectus for details. Read details about how waivers and/or reimbursements affect the results for each fund. View results and yields without fee waiver and/or expense reimbursement.

  1. Calculated by Morningstar. Due to differing calculation methods, the figures shown here may differ from those calculated by American Funds.
  2. The months indicated for dividends and capital gains paid represent the anticipated current year ex-dividend date schedule for all share classes.
  3. Expense ratios for funds of funds are as of the most recent prospectus, and include the weighted average expenses of the underlying funds.
  4. Source for Lipper expense ratio comparison: Lipper, based on front-end load funds of funds, including the weighted average expenses of the underlying funds, for the most recent fiscal year-ends available as of 3/31/2015.
  5. Excludes certain securities in initial period of acquisition.
  6. For funds of funds, figures are based on holdings of the underlying funds as of date shown.
  7. Allocation percentages and underlying funds are subject to the Portfolio Oversight Committee's discretion and will evolve over time. Underlying funds may be added or removed at any time.
  8. The Portfolio Series funds are actively monitored; allocations and funds may change.
  9. Lipper ratings for Consistent Return reflect funds’ historical risk-adjusted returns at NAV, adjusted for volatility, relative to peers. Lipper ratings for Expense reflect funds’ expense minimization relative to peers with similar load structures. Lipper ratings for Preservation reflect funds’ historical loss avoidance relative to other funds within the same asset class. Preservation ratings are relative, rather than absolute, measures, and funds named Lipper Leaders for Preservation may still experience losses periodically; those losses may be larger for equity and mixed equity funds than for fixed income funds. Lipper ratings for Tax Efficiency reflect funds’ historical success in postponing taxable distributions relative to peers. Tax Efficiency offers no benefit to investors in tax-sheltered accounts such as 401(k) plans. Lipper ratings for Total Return reflect funds’ historical total return performance relative to peers. The Lipper ratings are subject to change every month and are based on an equal-weighted average of percentile ranks for the Total Return, Consistent Return, Preservation, Tax Efficiency, and Expense metrics. The highest 20% of funds in each classification are named Lipper Leaders for Total Return, the next 20% receive a rating of 4, the middle 20% are rated 3, the next 20% are rated 2, and the lowest 20% are rated 1. Lipper ratings are not intended to predict future results, and Lipper does not guarantee the accuracy of this information. More information is available at www.lipperleaders.com. Lipper Leader © 2015, Thomson Reuters, All Rights Reserved.
  10. Morningstar Rating™ for Funds: For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Ratings metrics. Past results are not guarantee of results in future periods. Morningstar Rating is for Class A only; other classes may have different performance characteristics.
  11. 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. Bond ratings for funds of funds relate to the securities held by the portfolios' underlying mutual funds, and if agency ratings of those holdings differ, the security will be considered to have received the highest of those ratings.
  12. The portfolio managers shown are as of the fund's most recent prospectus dated  01/01/2015.
  13. YTD (year-to-date return): the net change in the value of the fund's shares (in percentage terms) from January 1, 2015, to the current date shown above.
  14. Investment results assume all distributions are reinvested and reflect applicable fees and expenses. 
  15. 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 SEC yield and distribution rate may differ.

©2015 Morningstar, Inc. All Rights Reserved. Some of the information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar, its content providers nor the American Funds are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Information is calculated by Morningstar. Due to differing calculation methods, the figures shown here may differ from those calculated by American Funds.

Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in the prospectus. These risks may be heightened in connection with investments in developing countries.

The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds.

For more information about the risks associated with each fund, go to its detailed fund information page or read the prospectus. Investment allocations for funds of funds may not achieve fund objectives. There are expenses associated with the underlying funds in addition to fund-of-funds expenses. The funds' risks are directly related to the risks of the underlying funds, as described herein.

Terms and Definitions

Beta: Beta relatively measures a fund's sensitivity to market movements over a specified period of time. The beta of the market (represented by the benchmark index) is equal to 1; a beta higher than 1 implies that a fund's return was more volatile than the market. A beta lower than 1 suggests that the fund was less volatile than the market. Generally the higher the R-squared measure, the more reliable the beta measurement will be. Calculated by Morningstar.

Bond Statistic Average Coupon: The average coupon is the weighted average coupon rate of all the bonds in the fund.

Bond Statistic Average Duration in Years: Expressed in years, average duration is a weighted average of the estimated price sensitivity of the bonds in the fund's portfolio to a given change in interest rates. With respect to individual bonds, for example, a duration of 4 years indicates that the price of a bond will rise/fall by approximately 4% if rates in general fall/rise by 1%. Typically, bonds with a longer duration pay higher interest but are more sensitive to interest rate changes.

Bond Statistic Average Life in Years: Expressed in years, average life is time weighting the expected principal payments, taking into consideration the impact of calls and prepayments. In general, it is a better measure than average maturity for bonds that have the ability to prepay principal before they reach maturity (e.g., mortgages, mortgage-backed securities and asset-backed securities). Data shown is a weighted average of the bonds held in the fund's portfolio.

Bond Statistic Average Yield to Maturity: A weighted average of all the fund's bond holding's yield to maturities. Yield to maturity is the return a bond earns if held to maturity, based on its price and coupon. Assumes that coupon payments can be reinvested at the yield to maturity.

Capture Ratio Downside: Capture ratios reflect the annualized product of fund vs. index returns for all months in which the index had a positive return (upside capture) or negative return (downside capture). Calculated by Morningstar.

Capture Ratio Upside: Capture ratios reflect the annualized product of fund vs. index returns for all months in which the index had a positive return (upside capture) or negative return (downside capture). Calculated by Morningstar.

Historical Long-Term Capital Gains: 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. Read our explanation of the effect of a capital gain on a fund's price for details. Two types of capital gains are realized by our funds — short-term and long-term. Net short-term capital gains are distributed to shareholders as income dividends and are taxed at ordinary income tax rates. Long-term capital gain distributions are taxed at a maximum 15% rate.

Historical Regular Dividend: The share prices of all of our equity funds decrease when a dividend is paid. The share price of only one of our fixed-income funds, Capital World Bond Fund, also decreases when a dividend is paid. A fund pays a special dividend when the investment income generated by the fund exceeds the income the fund has paid in the form of dividends throughout the year. Special dividends are distributed with the last dividend payment at the end of the calendar year. Prior to January 1, 2003, short-term capital gains distributed to shareholders as income dividends and special dividends paid to shareholders were included in the aggregate income dividend dollar amount.

Historical Short-Term Capital Gains: 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. Read our explanation of the effect of a capital gain on a fund's price for details. Two types of capital gains are realized by our funds — short-term and long-term. Net short-term capital gains are distributed to shareholders as income dividends and are taxed at ordinary income tax rates. Long-term capital gain distributions are taxed at a maximum 15% rate.

Historical Special Dividend: The share prices of all of our equity funds decrease when a dividend is paid. The share price of only one of our fixed-income funds, Capital World Bond Fund, also decreases when a dividend is paid. A fund pays a special dividend when the investment income generated by the fund exceeds the income the fund has paid in the form of dividends throughout the year. Special dividends are distributed with the last dividend payment at the end of the calendar year. Prior to January 1, 2003, short-term capital gains distributed to shareholders as income dividends and special dividends paid to shareholders were included in the aggregate income dividend dollar amount.

Lipper Consistent Return Rating: The Consistent Return takes into account both short and long-term risk-adjusted performance relative to fund classification. The measure is based on the Effective Return computation. Effective Return is a risk-adjusted return measure that looks back over a variety of holding periods (measured in days, weeks, months, and/or years) and reflects funds’ historical risk-adjusted returns, relative to peers.

Lipper Expense Rating: Lipper Ratings for Expense reflect funds’ expense minimization relative to peers with similar load structures. Lipper Ratings for Expense differentiate funds that have minimized expenses compared to competing funds. These costs are subtracted directly from a fund’s return, so if two funds have equal returns before expenses, the lower cost fund will deliver higher net returns to an investor. To rate an individual fund, Lipper first looks at the classification the fund is in and then at the load structure (funds within a classification are grouped into one of three load classifications– no-load/front-end load, back-end load/level load, and institutional load). The fund is then ranked against its peers (similar classification, similar load structure) so a fund that has the lowest expense levels within a given classification and time period is designated as a Lipper Leader for Expense.

Lipper Preservation Rating: Lipper Ratings for Preservation reflect funds’ historical loss avoidance relative to other funds within the same asset class. The Preservation model is defined as the sum of negative monthly returns over three-, five-, and ten-year performance periods. Unlike the other Lipper measures, the Preservation measure is calculated from three broad asset classes (equity funds, mixed asset funds, and bond funds) instead of from the investment classification level.

Morningstar rating: In an effort to classify funds by what they own, as well as by their prospectus objectives and styles, Morningstar developed Morningstar Categories. While the prospectus objective identifies a fund's investment goals based on the wording in the fund prospectus, the Morningstar Category identifies funds based on their actual investment styles as measured by their underlying portfolio holdings (portfolio and other statistics over the past three years).

R-Squared: R-squared is a measure of the correlation between a particular fund's return and that of its benchmark index. A measure of 100 indicates that all of the fund's return can be explained by movements in its benchmark. Generally the higher the R-squared measure, the more reliable the beta measurement will be. Calculated by Morningstar.

S&P 500: Standard & Poor's 500 Composite Index is a market capitalization-weighted index based on the results of 500 widely held common stocks.

Sharpe Ratio: Sharpe ratios use standard deviation and excess return to determine reward per unit of risk. The higher the number, the better the portfolio's historical risk-adjusted performance. Calculated by Morningstar.

Standard Deviation: Annualized standard deviation (based on monthly returns) is a common measure of absolute volatility that tells how returns over time have varied from the mean. A lower number signifies lower volatility. Calculated by Morningstar.

Valuation Price-to-Cash Flow: Price-to-cash-flow (P/C) ratio is the average price to cash flow ratio of the individual stocks within a fund.

Valuation Price-to-Earnings Ratio: Price-to-earnings (P/E) ratio takes the current price of a stock divided by its earnings per share. The ratio reflects the cost of a given stock per dollar of current annual earnings and is the most common measure of a stock's expense. The higher the P/E, the more investors are paying, and therefore the more earnings growth they are expecting.

Valuation: Price-to-book ratio compares a stock's market value to the value of total assets less total liabilities (book value). Adjusted for stock splits. Price-to-cash-flow (P/C) ratio is the average price to cash flow ratio of the individual stocks within a fund. Price-to-earnings (P/E) ratio takes the current price of a stock divided by its earnings per share. The ratio reflects the cost of a given stock per dollar of current annual earnings and is the most common measure of a stock's expense. The higher the P/E, the more investors are paying, and therefore the more earnings growth they are expecting.