Unassociated Document

U.S. Government Securities FundSM

Investment portfolio

May 31, 2012

unaudited

Bonds & notes — 89.64%	Principal amount (000)		Value (000)

FEDERAL AGENCY MORTGAGE-BACKED OBLIGATIONS1 — 55.84%
Fannie Mae 3.308% 20172	$	4,130	$	4,465
Fannie Mae 10.50% 2018		639		713
Fannie Mae 5.50% 2023		14,614		15,929
Fannie Mae 6.00% 2024		1,433		1,616
Fannie Mae 3.50% 2025		4,380		4,629
Fannie Mae 3.50% 2025		3,454		3,650
Fannie Mae 3.50% 2025		3,361		3,553
Fannie Mae 3.50% 2025		716		757
Fannie Mae 3.50% 2025		604		639
Fannie Mae 3.50% 2025		242		256
Fannie Mae 10.739% 20252		1,227		1,370
Fannie Mae 6.00% 2026		84		95
Fannie Mae 3.00% 20273		479,962		502,610
Fannie Mae 3.00% 20273		82,325		85,978
Fannie Mae 3.50% 20273		2,784		2,939
Fannie Mae 4.50% 20273		7,240		7,754
Fannie Mae 6.50% 2027		2,978		3,371
Fannie Mae 6.50% 2027		2,627		2,974
Fannie Mae 5.00% 2028		2,462		2,668
Fannie Mae 6.00% 2028		3,629		4,001
Fannie Mae 6.00% 2028		2,234		2,463
Fannie Mae 6.00% 2028		446		491
Fannie Mae 8.00% 2031		1,434		1,681
Fannie Mae 2.401% 20332		1,082		1,151
Fannie Mae 5.00% 2033		8,587		9,320
Fannie Mae 2.508% 20352		775		829
Fannie Mae 5.00% 2035		24,731		26,827
Fannie Mae 5.50% 2036		109		119
Fannie Mae 5.542% 20362		2,827		3,012
Fannie Mae 6.00% 2036		3,487		3,849
Fannie Mae 5.00% 2037		18,681		20,276
Fannie Mae 5.41% 20372		960		1,019
Fannie Mae 5.50% 2037		5,807		6,358
Fannie Mae 6.00% 2037		14,647		16,121
Fannie Mae 6.00% 2037		12,537		13,838
Fannie Mae 6.00% 2037		8,930		9,858
Fannie Mae 6.00% 2037		5,144		5,678
Fannie Mae 6.00% 2037		3,457		3,816
Fannie Mae 6.00% 2037		2,162		2,387
Fannie Mae 6.00% 2037		639		706
Fannie Mae 6.00% 2037		478		528
Fannie Mae 6.00% 2037		473		522
Fannie Mae 6.50% 2037		2,912		3,278
Fannie Mae 6.50% 2037		1,966		2,220
Fannie Mae 6.50% 2037		1,862		2,069
Fannie Mae 6.50% 2037		1,639		1,822
Fannie Mae 6.50% 2037		738		820
Fannie Mae 7.00% 2037		2,158		2,415
Fannie Mae 7.00% 2037		916		1,025
Fannie Mae 7.00% 2037		74		83
Fannie Mae 7.50% 2037		241		274
Fannie Mae 5.00% 2038		16,090		17,453
Fannie Mae 5.00% 2038		11,117		12,066
Fannie Mae 5.50% 2038		25,900		28,249
Fannie Mae 5.50% 2038		8,693		9,482
Fannie Mae 5.50% 2038		7,960		8,682
Fannie Mae 5.50% 2038		5,972		6,514
Fannie Mae 5.507% 20382		4,366		4,681
Fannie Mae 6.00% 2038		106,255		117,337
Fannie Mae 6.00% 2038		54,950		60,655
Fannie Mae 6.00% 2038		41,660		45,985
Fannie Mae 6.00% 2038		20,367		22,539
Fannie Mae 6.00% 2038		20,296		22,403
Fannie Mae 6.00% 2038		6,373		7,012
Fannie Mae 6.00% 2038		5,197		5,737
Fannie Mae 6.00% 2038		3,231		3,567
Fannie Mae 6.00% 2038		1,877		2,071
Fannie Mae 6.00% 2038		1,649		1,817
Fannie Mae 6.00% 2038		1,586		1,733
Fannie Mae 6.50% 2038		4,350		4,889
Fannie Mae 7.00% 2038		3,658		4,095
Fannie Mae 6.00% 2039		77,152		85,162
Fannie Mae 6.00% 2039		37,051		40,898
Fannie Mae 6.00% 2039		5,151		5,686
Fannie Mae 6.00% 2039		3,929		4,325
Fannie Mae 3.243% 20402		13,573		14,288
Fannie Mae 3.563% 20402		1,467		1,550
Fannie Mae 4.00% 2040		20,183		21,521
Fannie Mae 4.00% 2040		17,091		18,224
Fannie Mae 4.00% 2040		7,947		8,578
Fannie Mae 4.50% 2040		8,420		9,232
Fannie Mae 4.50% 2040		6,570		7,074
Fannie Mae 4.50% 2040		2,448		2,684
Fannie Mae 4.50% 2040		2,227		2,442
Fannie Mae 4.50% 2040		1,524		1,642
Fannie Mae 4.50% 2040		742		814
Fannie Mae 4.50% 2040		511		561
Fannie Mae 5.00% 2040		38,207		41,600
Fannie Mae 5.00% 2040		1,655		1,831
Fannie Mae 6.00% 2040		18,791		20,742
Fannie Mae 6.00% 2040		8,522		9,388
Fannie Mae 6.00% 2040		5,960		6,557
Fannie Mae 6.00% 2040		1,667		1,839
Fannie Mae 3.279% 20412		10,674		11,211
Fannie Mae 3.50% 2041		25,581		26,974
Fannie Mae 3.752% 20412		10,745		11,363
Fannie Mae 4.00% 2041		41,216		43,948
Fannie Mae 4.00% 2041		39,482		42,617
Fannie Mae 4.00% 2041		27,319		29,130
Fannie Mae 4.00% 2041		27,273		29,080
Fannie Mae 4.00% 2041		19,135		20,409
Fannie Mae 4.00% 2041		15,817		16,865
Fannie Mae 4.00% 2041		4,418		4,769
Fannie Mae 4.00% 2041		4,271		4,610
Fannie Mae 4.00% 2041		2,797		3,020
Fannie Mae 4.50% 2041		80,723		87,048
Fannie Mae 4.50% 2041		55,397		59,737
Fannie Mae 4.50% 2041		51,077		55,079
Fannie Mae 4.50% 2041		19,728		21,273
Fannie Mae 4.50% 2041		12,465		13,667
Fannie Mae 4.50% 2041		11,945		13,128
Fannie Mae 4.50% 2041		6,641		7,282
Fannie Mae 4.50% 2041		6,411		7,074
Fannie Mae 4.50% 2041		5,674		6,119
Fannie Mae 4.50% 2041		1,754		1,924
Fannie Mae 4.50% 2041		1,221		1,339
Fannie Mae 5.00% 2041		32,120		35,438
Fannie Mae 5.00% 2041		4,360		4,840
Fannie Mae 5.00% 2041		3,811		4,234
Fannie Mae 5.00% 2041		3,033		3,367
Fannie Mae 5.00% 2041		1,975		2,194
Fannie Mae 5.00% 2041		1,952		2,166
Fannie Mae 5.00% 2041		1,856		2,062
Fannie Mae 5.00% 2041		1,840		2,045
Fannie Mae 5.00% 2041		1,481		1,645
Fannie Mae 5.00% 2041		1,437		1,596
Fannie Mae 5.00% 2041		1,275		1,415
Fannie Mae 5.00% 2041		1,229		1,364
Fannie Mae 5.00% 2041		1,169		1,298
Fannie Mae 5.00% 2041		1,059		1,177
Fannie Mae 5.00% 2041		968		1,074
Fannie Mae 5.00% 2041		926		1,028
Fannie Mae 3.50% 20423		289,885		304,470
Fannie Mae 3.50% 2042		41,488		43,763
Fannie Mae 3.50% 2042		40,980		43,227
Fannie Mae 4.00% 20423		116,110		123,367
Fannie Mae 4.50% 20423		168,779		181,121
Fannie Mae 4.50% 2042		21,363		23,037
Fannie Mae 5.00% 20423		48,950		53,027
Fannie Mae 5.50% 20423		111,306		121,341
Fannie Mae 6.00% 20423		134,805		148,391
Fannie Mae 6.639% 20472		1,750		1,900
Fannie Mae, Series 2003-T1, Class B, 4.491% 2012		27,750		28,124
Fannie Mae, Series 2012-M5, Class A1, multifamily 1.787% 2022		1,900		1,934
Fannie Mae, Series 2012-M2, Class A2, multifamily 2.717% 2022		4,325		4,488
Fannie Mae, Series 2012-M3, Class 1-A2, multifamily 3.044% 2022		3,500		3,726
Fannie Mae, Series 2003-48, Class TJ, 4.50% 2022		768		784
Fannie Mae, Series 2001-4, Class NA, 11.403% 20252		549		614
Fannie Mae, Series 2001-25, Class ZA, 6.50% 2031		622		707
Fannie Mae, Series 2001-20, Class E, 9.597% 20312		34		39
Fannie Mae, Series 2003-M2, Class D, multifamily 4.68% 20332		9,363		10,603
Fannie Mae, Series 2005-29, Class AK, 4.50% 2035		5,754		6,003
Fannie Mae, Series 2005-68, Class PG, 5.50% 2035		9,781		11,132
Fannie Mae, Series 2006-56, Class OG, principal only, 0% 2036		3,364		3,223
Fannie Mae, Series 2006-83, Class AO, principal only, 0% 2036		2,940		2,751
Fannie Mae, Series 2006-65, Class PF, 0.519% 20362		3,808		3,801
Fannie Mae, Series 2006-49, Class PA, 6.00% 2036		612		690
Fannie Mae, Series 2007-33, Class HE, 5.50% 2037		4,141		4,564
Fannie Mae, Series 2007-40, Class PT, 5.50% 2037		2,629		2,926
Fannie Mae, Series 1999-T2, Class A-1, 7.50% 20392		583		662
Freddie Mac 10.00% 2025		541		600
Freddie Mac 6.00% 2026		2,969		3,278
Freddie Mac 6.00% 2027		6,341		7,003
Freddie Mac 2.48% 20352		3,691		3,958
Freddie Mac 5.859% 20362		5,275		5,641
Freddie Mac 4.495% 20372		495		519
Freddie Mac 5.50% 2037		3,723		4,052
Freddie Mac 6.50% 2037		1,447		1,604
Freddie Mac 6.50% 2037		424		470
Freddie Mac 4.818% 20382		2,271		2,445
Freddie Mac 5.50% 2038		50,950		55,419
Freddie Mac 5.50% 2038		26,547		28,892
Freddie Mac 5.50% 2038		19,103		20,778
Freddie Mac 5.50% 2038		4,380		4,774
Freddie Mac 5.50% 2038		426		464
Freddie Mac 6.00% 2038		15,742		17,444
Freddie Mac 5.50% 2039		53,752		58,500
Freddie Mac 3.168% 20402		2,921		3,062
Freddie Mac 3.253% 20412		9,078		9,536
Freddie Mac 3.406% 20412		11,716		12,353
Freddie Mac 4.50% 2041		4,394		4,806
Freddie Mac 5.00% 2041		10,067		11,114
Freddie Mac 5.50% 2041		35,290		38,407
Freddie Mac 6.00% 20423		17,160		18,873
Freddie Mac, Series K003, Class A2, multifamily 3.607% 2014		6,125		6,337
Freddie Mac, Series K501, Class A1, multifamily 1.337% 2016		4,256		4,296
Freddie Mac, Series 2356, Class GD, 6.00% 2016		1,358		1,447
Freddie Mac, Series K701, Class A2, multifamily 3.882% 20172		3,350		3,716
Freddie Mac, Series K705, Class A2, multifamily 2.303% 2018		2,112		2,183
Freddie Mac, Series K706, Class A2, multifamily 2.323% 2018		3,300		3,413
Freddie Mac, Series K704, Class A2, multifamily 2.412% 2018		3,225		3,354
Freddie Mac, Series K015, Class A1, multifamily 2.257% 2020		3,560		3,712
Freddie Mac, Series K009, Class A1, multifamily 2.757% 2020		1,894		2,013
Freddie Mac, Series K014, Class A1, multifamily 2.788% 2020		3,934		4,178
Freddie Mac, Series K013, Class A1, multifamily 2.902% 2020		4,086		4,361
Freddie Mac, Series K010, Class A1, multifamily 3.32% 20202		3,642		3,938
Freddie Mac, Series K011, Class A2, multifamily 4.084% 2020		4,200		4,783
Freddie Mac, Series 2289, Class NA, 11.499% 20202		259		292
Freddie Mac, Series K017, Class A2, multifamily 2.873% 2021		4,300		4,502
Freddie Mac, Series 2289, Class NB, 10.815% 20222		86		94
Freddie Mac, Series 1567, Class A, 0.65% 20232		30		30
Freddie Mac, Series 2626, Class NG, 3.50% 2023		402		413
Freddie Mac, Series 1617, Class PM, 6.50% 2023		748		840
Freddie Mac, Series 2153, Class GG, 6.00% 2029		1,378		1,555
Freddie Mac, Series 3061, Class PN, 5.50% 2035		2,178		2,430
Freddie Mac, Series 3156, Class PO, principal only, 0% 2036		5,384		4,993
Freddie Mac, Series 3146, Class PO, principal only, 0% 2036		2,567		2,353
Freddie Mac, Series 3213, Class OG, principal only, 0% 2036		1,593		1,541
Freddie Mac, Series 3156, Class PF, 0.489% 20362		6,394		6,375
Freddie Mac, Series 3257, Class PA, 5.50% 2036		3,121		3,474
Freddie Mac, Series 3233, Class PA, 6.00% 2036		3,830		4,298
Freddie Mac, Series 3272, Class PA, 6.00% 2037		4,364		4,836
Government National Mortgage Assn. 10.00% 2019		355		417
Government National Mortgage Assn. 10.00% 2021		158		177
Government National Mortgage Assn. 3.50% 2025		10,316		11,055
Government National Mortgage Assn. 3.50% 2025		783		839
Government National Mortgage Assn. 3.00% 2026		31,225		33,211
Government National Mortgage Assn. 6.50% 2029		1,351		1,527
Government National Mortgage Assn. 6.50% 2032		1,367		1,546
Government National Mortgage Assn. 6.00% 2033		1,141		1,270
Government National Mortgage Assn. 5.50% 2034		2,211		2,426
Government National Mortgage Assn. 6.00% 2034		1,456		1,619
Government National Mortgage Assn. 5.00% 2035		1,838		2,013
Government National Mortgage Assn. 5.00% 2035		1,343		1,454
Government National Mortgage Assn. 5.50% 2035		2,948		3,231
Government National Mortgage Assn. 6.00% 2035		1,343		1,495
Government National Mortgage Assn. 4.50% 2036		1,152		1,252
Government National Mortgage Assn. 5.50% 2036		1,737		1,900
Government National Mortgage Assn. 6.00% 2036		1,590		1,764
Government National Mortgage Assn. 6.00% 2037		3,108		3,437
Government National Mortgage Assn. 6.50% 2037		1,135		1,276
Government National Mortgage Assn. 5.50% 2038		3,241		3,606
Government National Mortgage Assn. 5.50% 2038		412		447
Government National Mortgage Assn. 6.00% 2038		2,684		3,018
Government National Mortgage Assn. 6.00% 2038		1,818		2,005
Government National Mortgage Assn. 6.50% 2038		1,656		1,871
Government National Mortgage Assn. 6.50% 2038		1,072		1,211
Government National Mortgage Assn. 3.50% 20392		7,349		7,771
Government National Mortgage Assn. 4.00% 2039		3,736		4,093
Government National Mortgage Assn. 4.50% 2039		12,057		13,281
Government National Mortgage Assn. 4.50% 2039		7,134		7,742
Government National Mortgage Assn. 4.50% 2039		3,625		3,921
Government National Mortgage Assn. 4.50% 2039		1,824		1,973
Government National Mortgage Assn. 5.00% 2039		6,867		7,597
Government National Mortgage Assn. 5.00% 2039		1,860		2,023
Government National Mortgage Assn. 5.50% 2039		3,164		3,449
Government National Mortgage Assn. 5.50% 2039		2,215		2,415
Government National Mortgage Assn. 5.50% 2039		1,099		1,198
Government National Mortgage Assn. 6.00% 2039		3,122		3,445
Government National Mortgage Assn. 6.00% 2039		2,112		2,331
Government National Mortgage Assn. 6.50% 2039		1,146		1,288
Government National Mortgage Assn. 4.50% 2040		15,529		16,852
Government National Mortgage Assn. 4.50% 2040		4,063		4,489
Government National Mortgage Assn. 4.50% 2040		3,835		4,153
Government National Mortgage Assn. 5.00% 2040		16,993		18,532
Government National Mortgage Assn. 5.00% 2040		3,942		4,367
Government National Mortgage Assn. 5.00% 2040		1,704		1,887
Government National Mortgage Assn. 5.00% 2040		1,637		1,780
Government National Mortgage Assn. 5.00% 2040		1,472		1,606
Government National Mortgage Assn. 3.50% 2041		1,958		2,093
Government National Mortgage Assn. 4.00% 2041		5,417		5,935
Government National Mortgage Assn. 4.00% 2041		4,626		5,068
Government National Mortgage Assn. 4.00% 2041		374		402
Government National Mortgage Assn. 4.50% 2041		8,866		9,619
Government National Mortgage Assn. 4.50% 2041		6,560		7,117
Government National Mortgage Assn. 5.00% 2041		1,790		1,952
Government National Mortgage Assn. 5.00% 2041		355		381
Government National Mortgage Assn. 5.50% 2041		1,128		1,221
Government National Mortgage Assn. 5.50% 2041		631		683
Government National Mortgage Assn. 5.50% 2041		363		393
Government National Mortgage Assn. 6.00% 2041		420		459
Government National Mortgage Assn. 6.50% 2041		9,225		10,608
Government National Mortgage Assn. 3.50% 20423		16,376		17,481
Government National Mortgage Assn. 3.50% 20423		5,000		5,340
Government National Mortgage Assn. 3.50% 2042		3,992		4,268
Government National Mortgage Assn. 3.50% 2042		2,086		2,177
Government National Mortgage Assn. 4.00% 2042		9,939		10,886
Government National Mortgage Assn. 4.00% 2042		4,040		4,424
Government National Mortgage Assn. 5.922% 2058		16,367		18,093
Government National Mortgage Assn. 6.172% 2058		531		573
Government National Mortgage Assn. 6.22% 2058		7,379		7,988
Government National Mortgage Assn., Series 2004-19, 5.00% 2031		3,466		3,498
Government National Mortgage Assn., Series 2003-116, Class JD, 5.00% 2032		9,554		10,201
Government National Mortgage Assn., Series 2003-46, 5.00% 2033		10,000		11,145
Government National Mortgage Assn., Series 2003, 6.116% 2058		4,187		4,649
Vendee Mortgage Trust, Series 2008-1, Class GD, 5.25% 2032		24,614		27,390
Vendee Mortgage Trust, Series 2011-2, Class DA, 3.75% 2033		19,405		20,556
Vendee Mortgage Trust, Series 2010-1, Class DA, 4.25% 2035		7,527		8,219
FDIC Structured Sale Guaranteed Notes, Series 2010-L2A, Class A, 3.00% 20194		10,819		10,941
FDIC Structured Sale Guaranteed Notes, Series 2010-S1, Class 1-A, 0.789% 20482,4		1,540		1,543
National Credit Union Administration, Series 2011-M1, Class A1, 0.259% 20132		2,431		2,431
National Credit Union Administration, Series 2010-R2, Class 1A, 0.609% 20172		1,140		1,142
National Credit Union Administration, Series 2011-R3, Class 1A, 0.639% 20202		2,233		2,239
National Credit Union Administration, Series 2011-R1, Class 1A, 0.689% 20202		1,226		1,230
				4,025,805

U.S. TREASURY BONDS & NOTES — 24.55%
U.S. Treasury 1.375% 2012		137,235		138,017
U.S. Treasury 3.00% 20125		31,862		32,057
U.S. Treasury 1.125% 2013		151,290		152,723
U.S. Treasury 3.125% 2013		26,500		27,458
U.S. Treasury 0.25% 2014		34,600		34,592
U.S. Treasury 2.375% 2014		33,750		35,391
U.S. Treasury 2.625% 2014		50,215		52,738
U.S. Treasury 1.875% 2015		22,870		23,914
U.S. Treasury 2.125% 2015		64,500		68,340
U.S. Treasury 11.25% 2015		90,530		117,110
U.S. Treasury 1.50% 2016		36,875		38,323
U.S. Treasury 2.125% 2016		58,100		61,645
U.S. Treasury 2.375% 2016		40,200		43,053
U.S. Treasury 4.50% 2016		14,950		17,157
U.S. Treasury 5.125% 2016		3,000		3,541
U.S. Treasury 7.50% 2016		6,250		8,150
U.S. Treasury 0.875% 2017		65,500		66,224
U.S. Treasury 1.00% 2017		34,300		34,894
U.S. Treasury 2.50% 2017		64,000		69,734
U.S. Treasury 3.00% 2017		23,000		25,526
U.S. Treasury 3.25% 2017		7,400		8,309
U.S. Treasury 8.875% 2017		23,250		33,037
U.S. Treasury 3.50% 2018		51,320		59,052
U.S. Treasury 8.75% 2020		34,400		54,781
U.S. Treasury 3.125% 2021		45,675		52,358
U.S. Treasury 8.125% 2021		21,340		33,854
U.S. Treasury 1.75% 2022		39,200		39,849
U.S. Treasury 2.00% 2022		21,925		22,834
U.S. Treasury 6.00% 2026		26,250		39,019
U.S. Treasury 6.50% 2026		11,230		17,577
U.S. Treasury 6.25% 2030		21,840		34,999
U.S. Treasury 4.375% 2039		82,300		111,966
U.S. Treasury 3.875% 2040		17,500		22,012
U.S. Treasury 2.125% 20415		314		460
U.S. Treasury 3.125% 2041		4,200		4,613
U.S. Treasury 3.75% 2041		36,925		45,482
U.S. Treasury 4.75% 2041		81,540		117,632
U.S. Treasury 0.75% 20425		17,366		18,722
U.S. Treasury 3.125% 2042		2,700		2,965
				1,770,108


FEDERAL AGENCY BONDS & NOTES — 9.23%
Federal Home Loan Bank 0.875% 2012		48,750		48,836
Federal Home Loan Bank 1.75% 2012		57,605		57,819
Federal Home Loan Bank 1.625% 2013		19,500		19,771
Federal Home Loan Bank 3.625% 2013		10,000		10,464
Federal Home Loan Bank 2.375% 2014		16,500		17,112
Federal Home Loan Bank 2.75% 2015		8,500		9,048
Federal Home Loan Bank, Series 2816, 1.00% 2017		25,485		25,502
Federal Home Loan Bank 4.125% 2020		15,125		18,009
Freddie Mac 1.125% 2012		35,700		35,757
Freddie Mac 0.375% 2014		75,250		75,377
Freddie Mac 2.50% 2014		13,000		13,532
Freddie Mac 3.00% 2014		22,750		24,067
Freddie Mac 1.75% 2015		33,375		34,666
Freddie Mac 2.375% 2022		15,000		15,533
Fannie Mae 0.75% 2013		67,575		67,974
Fannie Mae 3.00% 2014		4,500		4,769
Fannie Mae 0.50% 2015		7,000		7,003
Fannie Mae 6.625% 2030		2,950		4,532
Federal Farm Credit Banks, Consolidated Systemwide Designated Bonds, 1.625% 2014		33,225		34,218
Tennessee Valley Authority, Series A, 3.875% 2021		4,200		4,914
Tennessee Valley Authority, 4.65% 2035		3,930		4,781
Tennessee Valley Authority 5.88% 2036		2,750		3,906
Tennessee Valley Authority 5.25% 2039		11,000		14,535
Tennessee Valley Authority, Series 2008, Class A, 4.875% 2048		3,300		4,222
United States Agency for International Development, Republic of Egypt 4.45% 2015		19,000		21,239
United States Agency for International Development, State of Israel, Class 1-A, 5.50% 2023		5,000		6,640
United States Government Agency-Guaranteed (FDIC insured), Citigroup Inc. 2.125% 2012		9,000		9,020
United States Government Agency-Guaranteed (FDIC insured), Citigroup Inc. 2.25% 2012		12,450		12,581
United States Government Agency-Guaranteed (FDIC insured), Bank of America Corp. 2.375% 2012		20,500		20,524
United States Government Agency-Guaranteed (FDIC insured), JPMorgan Chase & Co. 2.20% 2012		15,000		15,008
Small Business Administration, Series SBIC-PS 2006-10A, Participating Securities, 5.408% 20161		2,238		2,431
Small Business Administration, Series 2001-20K, 5.34% 20211		1,043		1,154
Small Business Administration, Series 2001-20J, 5.76% 20211		444		492
Small Business Administration, Series 2001-20F, 6.44% 20211		1,667		1,860
Small Business Administration, Series 2003-20B, 4.84% 20231		4,798		5,292
United States Government Agency-Guaranteed (FDIC insured), General Electric Capital Corp., Series G, 2.20% 2012		10,000		10,002
Western Corp. 1.75% 2012		2,800		2,818
				665,408

ASSET-BACKED OBLIGATIONS1 — 0.02%
PE Environmental Funding LLC, Series 2007-A, Class A-1, 4.982% 2016		835		871
Oncor Electric Delivery Transition Bond Co. LLC, Series 2003-1, Class A-3, 4.95% 2015		447		454
PSE&G Transition Funding II LLC, Series 2005-1, Class A-2, 4.34% 2014		187		188
				1,513


Total bonds & notes (cost: $6,220,081,000)				6,462,834



Short-term securities — 30.89%

Freddie Mac 0.07%–0.18% due 6/5–12/18/2012		610,650		610,475
Federal Home Loan Bank 0.095%–0.15% due 6/6–12/20/2012		540,437		540,278
U.S. Treasury Bills 0.061%–0.145% due 6/21–11/8/2012		429,700		429,596
Fannie Mae 0.07%–0.14% due 7/16–11/14/2012		285,900		285,777
Jupiter Securitization Co., LLC 0.16% due 6/1/20124		50,000		50,000
Federal Farm Credit Banks 0.10% due 9/6/2012		42,800		42,789
Procter & Gamble Co. 0.10% due 6/13/20124		40,000		39,999
Bank of New York Co., Inc. 0.11% due 6/18/20124		39,600		39,598
Wal-Mart Stores, Inc. 0.10% due 6/18/20124		35,000		34,998
General Electric Capital Corp. 0.12% due 6/13/2012		30,000		29,999
General Electric Co. 0.13% due 6/1/2012		3,600		3,600
ExxonMobil Corp. 0.08% due 6/13/2012		26,500		26,499
Harvard University 0.08% due 6/13/2012		24,959		24,958
National Rural Utilities Cooperative Finance Corp. 0.13% due 6/13/2012		23,800		23,799
Straight-A Funding LLC 0.13% due 6/18/20124		23,600		23,598
Paccar Financial Corp. 0.13% due 6/5/2012		20,800		20,800

Total short-term securities (cost: $2,226,765,000)				2,226,763


Total investment securities (cost: $8,446,846,000)				8,689,597
Other assets less liabilities				(1,480,248	)

Net assets			$	7,209,349

1Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.

2Coupon rate may change periodically.

3A portion or all of the security purchased on a TBA basis.

4Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $200,677,000, which represented 2.78% of the net assets of the fund.

5Index-linked bond whose principal amount moves with a government price index.

Valuation disclosures

Capital Research and Management Company (“CRMC”), the fund’s investment adviser, values the fund’s investments at fair value as defined by accounting principles generally accepted in the United States of America. The net asset value of each share class of the fund is generally determined as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open. Security transactions are recorded by the fund as of the date the trades are executed with brokers.

Methods and inputs – The fund’s investment adviser uses the following methods and inputs to establish the fair value of the fund’s assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve.

Fixed-income securities, including short-term securities purchased with more than 60 days left to maturity, are generally valued at prices obtained from one or more pricing vendors. Vendors value such securities based on one or more of the inputs described in the following table. The table provides examples of inputs that are commonly relevant for valuing particular classes of fixed-income securities in which the fund is authorized to invest. However, these classifications are not exclusive, and any of the inputs may be used to value any other class of fixed-income security.

Fixed-income class	Examples of standard inputs
All	Benchmark yields, transactions, bids, offers, quotations from dealers and
	trading systems, new issues, spreads and other relationships observed in
	the markets among comparable securities; and proprietary pricing models
	such as yield measures calculated using factors such as cash flows,
	financial or collateral performance and other reference data (collectively
	referred to as “standard inputs”)
Bonds & notes of governments & government agencies	Standard inputs and interest rate volatilities
Mortgage-backed; asset-backed obligations	Standard inputs and cash flows, prepayment information, default rates,
	delinquency and loss assumptions, collateral characteristics, credit
	enhancements and specific deal information

When the fund’s investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or not deemed to be representative), fixed-income securities will be valued in good faith at the mean quoted bid and ask prices that are reasonably and timely available (or bid prices, if ask prices are not available) or at prices for securities of comparable maturity, quality and type.

Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates fair value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par when they reach 60 days.

Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the fund’s investment adviser are fair valued as determined in good faith under fair value guidelines adopted by authority of the board of trustees as further described below. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission (“SEC”) rules and guidance, to consider relevant principles and factors when making fair value determinations. The investment adviser considers relevant indications of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security, such as the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. Fair valuations and valuations of investments that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.

Processes and structure – The fund’s board of trustees has delegated authority to the fund’s investment adviser to make fair value determinations, subject to board oversight. The investment adviser has established a Joint Fair Valuation Committee (the “Fair Valuation Committee”) to administer, implement and oversee the fair valuation process, and to make fair value decisions. The Fair Valuation Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser’s valuation teams. The Fair Valuation Committee reviews changes in fair value measurements from period to period and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. The Fair Valuation Committee reports any changes to the fair valuation guidelines to the board of trustees with supplemental information to support the changes. The fund’s board and audit committee also regularly review reports that describe fair value determinations and methods.

The fund’s investment adviser has also established a Fixed-Income Pricing Review Group to administer and oversee the fixed-income valuation process, including the use of fixed-income pricing vendors. This group regularly reviews pricing vendor information and market data. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews, including an annual control self-evaluation program facilitated by the investment adviser’s compliance group.

Classifications – The fund’s investment adviser classifies the fund’s assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Level 3 values are based on significant unobservable inputs that reflect the investment adviser’s determination of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. At May 31, 2012, all of the fund’s investment securities were classified as Level 2.

Federal income tax information	(dollars in thousands)

Gross unrealized appreciation on investment securities	$	242,483
Gross unrealized depreciation on investment securities		(1,116	)
Net unrealized appreciation on investment securities		241,367
Cost of investment securities for federal income tax purposes		8,448,230

Key to abbreviation

TBA = To be announced

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

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus and summary prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at 800/421-4225 or visit the American Funds website at americanfunds.com.

MFGEFP-922-0712O-S32885

ITEM 2 – Controls and Procedures

	THE AMERICAN FUNDS INCOME SERIES

	By /s/ Thomas H. Hogh
	Thomas H. Hogh, President and Principal Executive Officer

	Date: July 27, 2012