Statement of Additional
Information Supplement April 25, 2025  

For the most recent statement of additional information of the following funds:

American Balanced Fund^® (AMBAL) American Funds Corporate Bond Fund^® (CBF) American Funds Emerging Markets Bond Fund^® (EMBF) American Funds^® Global Balanced Fund (GBAL) American Funds Inflation Linked Bond Fund^® (ILBF) American Funds Mortgage Fund^® (AFMF) American Funds Short-Term Tax-Exempt Bond Fund^® (STEX) American Funds^® Strategic Bond Fund (SBF) American Funds Tax-Exempt Fund of New York^® (TEFNY) American High-Income Trust^® (AHIT) American High-Income Municipal Bond Fund^® (AHIM) The Bond Fund of America^® (BFA) Capital Income Builder^® (CIB) Capital World Bond Fund^® (WBF) The Income Fund of America^® (IFA) Intermediate Bond Fund of America^® (IBFA) Limited Term Tax-Exempt Bond Fund of America^® (LTEX) New World Fund, Inc.^® (NWF) Short-Term Bond Fund of America^® (STBF) The Tax-Exempt Bond Fund of America^® (TEBF) The Tax-Exempt Fund of California^® (TEFCA) U.S. Government Securities Fund^® (GVT)

1. The second paragraph under the subheading “Swaps” in the “Description of certain securities, investment techniques and risks” section of the statement of additional information for AFMF, AHIM, AHIT, AMBAL, BFA, CBF, CIB, EMBF, GBAL, GVT, IBFA, IFA, ILBF, LTEX, NWF, SBF, STBF, STEX, TEBF, TEFCA, TEFNY and WBF are amended to read as follows:

Swaps can be traded on a swap execution facility (“SEF”) and cleared through a central clearinghouse (cleared), traded OTC and cleared, or traded bilaterally and not cleared. For example, standardized interest rate swaps and standardized credit default swap indices are traded on SEFs and cleared. Other forms of swaps, such as total return swaps and certain types of interest rate swaps and credit default swap indices are entered into on a bilateral basis. Because clearing interposes a central clearinghouse as the ultimate counterparty to each participant’s swap, and margin is required to be exchanged under the rules of the clearinghouse, central clearing is intended to decrease (but not eliminate) counterparty risk relative to uncleared bilateral swaps. To the extent the fund enters into bilaterally negotiated swaps, the fund will enter into swaps only with counterparties that meet certain credit standards and have agreed to specific collateralization procedures; however, if the counterparty’s creditworthiness deteriorates rapidly and the counterparty defaults on its obligations under the swap or declares bankruptcy, the fund may lose any amount it expected to receive from the counterparty. In addition, bilateral swaps are subject to certain regulatory margin requirements that mandate the posting and collection of minimum margin amounts, which may result in the fund and its counterparties posting higher margin amounts for bilateral swaps than would otherwise be the case.

2. The paragraphs under the subheadings “Swaps - Credit default swap indices” in the “Description of certain securities, investment techniques and risks” section of the statement of additional information for AHIM, AHIT, AMBAL, BFA, CBF, CIB, EMBF, GBAL, IBFA, IFA, ILBF, LTEX, NWF, SBF, STEX, TEBF, TEFCA, TEFNY and WBF are amended to read as follows:

Credit default swap indices — In order to assume exposure to a diversified portfolio of credits or to hedge against existing credit risks, the fund may invest in credit default swap indices, including CDX and iTraxx indices (collectively referred to as “CDSIs”). Additionally, in order to assume exposure to the commercial mortgage-backed security sector or to hedge against existing credit and market risks within such sector, the fund may invest in mortgage-backed security credit default swap indices, including the CMBX index (collectively referred to as “CMBXIs”).

A CDSI is based on a portfolio of credit default swaps with similar characteristics, such as credit default swaps on high-yield bonds. A CMBXI is a tradeable index referencing a basket of commercial mortgage-backed securities. In a typical CDSI or CMBXI transaction, one party — the protection buyer — is obligated to pay the other party — the protection seller — a stream of periodic payments over the term of the contract. If a credit event, such as a default or restructuring, occurs with respect to any of the underlying reference obligations, the protection seller must pay the protection buyer the loss on those credits. Also, if a restructuring credit event occurs in an iTraxx index, the fund as protection buyer may receive a single name credit default swap (“CDS”) representing the relevant constituent.

The fund may enter into a CDSI or CMBXI transaction as either protection buyer or protection seller. If the fund is a protection buyer, it would pay the counterparty a periodic stream of payments over the term of the contract and would not recover any of those payments if no credit events were to occur with respect to any of the underlying reference obligations. However, if a credit event did occur, the fund, as a protection buyer, would have the right to deliver the referenced debt obligations or a specified amount of cash, depending on the terms of the applicable agreement, and to receive the par value of such debt obligations from the counterparty protection seller. As a protection seller, the fund would receive fixed payments throughout the term of the contract if no credit events were to occur with respect to any of the underlying reference obligations. If a credit event were to occur, however, the value of any deliverable obligation received by the fund, coupled with the periodic payments previously received by the fund, may be less than the full notional value that the fund, as a protection seller, pays to the counterparty protection buyer, effectively resulting in a loss of value to the fund. Furthermore, as a protection seller, the fund would effectively add leverage to its portfolio because it would have investment exposure to the notional amount of the swap.

The use of CDSI or CMBXI, like all other swaps, is subject to certain risks, including the risk that the fund’s counterparty will default on its obligations. If such a default were to occur, any contractual remedies that the fund might have may be subject to applicable bankruptcy laws, which could delay or limit the fund’s recovery. Thus, if the fund’s counterparty to a CDSI or CMBXI transaction defaults on its obligation to make payments thereunder, the fund may lose such payments altogether or collect only a portion thereof, which collection could involve substantial costs or delays.

Additionally, when the fund invests in a CDSI or CMBXI as a protection seller, the fund will be indirectly exposed to the creditworthiness of issuers of the underlying reference obligations in the index. If the investment adviser to the fund does not correctly evaluate the creditworthiness of issuers of the underlying instruments on which the CDSI or CMBXI is based, the investment could result in losses to the fund.

Keep this supplement with your statement of additional information.

Lit No. MFGEBS-610-0425O CGD/10149-S108526