485BPOS 1 ibfa485b.htm INTERMEDIATE BOND FUND OF AMERICA

SEC. File Nos. 033-19514

811-05446

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________

FORM N-1A

Registration Statement

Under

the Securities Act of 1933

Post-Effective Amendment No. 42

and

Registration Statement

Under

the Investment Company Act of 1940

Amendment No. 43

____________

INTERMEDIATE BOND FUND OF AMERICA

(Exact Name of Registrant as Specified in Charter)

333 South Hope Street

Los Angeles, California 90071-1447

(Address of Principal Executive Offices)

Registrant's telephone number, including area code:

(213) 486-9200

____________

COURTNEY R. TAYLOR, Secretary

Intermediate Bond Fund of America

333 South Hope Street

Los Angeles, California 90071-1447

(Name and Address of Agent for Service)

____________

Copies to:

Michael Glazer

Bingham McCutchen LLP

355 South Grand Avenue, Suite 4400

Los Angeles, CA 90071-3106

(Counsel for the Registrant)

____________

Approximate date of proposed public offering:

It is proposed that this filing will become effective on August 29, 2014, pursuant to paragraph (b) of rule 485.

Intermediate Bond
Fund of America^®

Prospectus

August 29, 2014

Class A	B	C	F-1	F-2	529-A	529-B	529-C	529-E
AIBAX	IBFBX	IBFCX	IBFFX	IBAFX	CBOAX	CBOBX	CBOCX	CBOEX

529-F-1	R-1	R-2	R-2E	R-3	R-4	R-5	R-6
CBOFX	RBOAX	RBOBX	REBBX	RBOCX	RBOEX	RBOFX	RBOGX

Table of contents

Investment objective	1
Fees and expenses of the fund	1
Principal investment strategies	3
Principal risks	3
Investment results	5
Management	6
Purchase and sale of fund shares	7
Tax information	7
Payments to broker-dealers and other financial intermediaries	7
Investment objective, strategies and risks	8
Management and organization	12
Shareholder information	14
Purchase, exchange and sale of shares	15
How to sell shares	19
Distributions and taxes	22
Choosing a share class	23
Sales charges	24
Sales charge reductions and waivers	26
Rollovers from retirement plans to IRAs	30
Plans of distribution	30
Other compensation to dealers	31
Fund expenses	32
Financial highlights	34

The U.S. Securities and Exchange Commission has not approved or disapproved of these securities. Further, it has not determined that this prospectus is accurate or complete. Any representation to the contrary is a criminal offense.

Investment objective

The fund’s investment objective is to provide you with current income consistent with the maturity and quality standards described in this prospectus and preservation of capital.

Fees and expenses of the fund

This table describes the fees and expenses that you may pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $500,000 in American Funds. More information about these and other discounts is available from your financial professional and in the “Sales charge reductions and waivers” section on page 26 of the prospectus and on page 59 of the fund’s statement of additional information.

Shareholder fees (fees paid directly from your investment)
	Share classes
		A and 529-A	B and 529-B	C and 529-C	529-E	F-1, F-2 and 529-F-1	All R share classes
Maximum sales charge (load) imposed on purchases (as a percentage of offering price)		2.50%	none	none	none	none	none
Maximum deferred sales charge (load) (as a percentage of the amount redeemed)		1.00¹	5.00%	1.00%	none	none	none
Maximum sales charge (load) imposed on reinvested dividends		none	none	none	none	none	none
Redemption or exchange fees		none	none	none	none	none	none

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)
	Share classes
		A	B	C	F-1	F-2	529-A	529-B	529-C	529-E
Management fees		0.21%	0.21%	0.21%	0.21%	0.21%	0.21%	0.21%	0.21%	0.21%
Distribution and/or service (12b-1) fees		0.24	1.00	1.00	0.25	none	0.23	0.99	0.99	0.50
Other expenses		0.15	0.14	0.19	0.18	0.18	0.26	0.28	0.27	0.22
Total annual fund operating expenses		0.60	1.35	1.40	0.64	0.39	0.70	1.48	1.47	0.93

	529-F-1	R-1	R-2	R-2E³	R-3	R-4	R-5	R-6
Management fees	0.21%	0.21%	0.21%	0.21%	0.21%	0.21%	0.21%	0.21%
Distribution and/or service (12b-1) fees	0.00	1.00	0.73	0.60	0.50	0.25	none	none
Other expenses	0.26	0.18	0.46²	0.27	0.24	0.17	0.12	0.06
Total annual fund operating expenses	0.47	1.39	1.40	1.08	0.95	0.63	0.33	0.27

A contingent deferred sales charge of 1.00% applies on certain redemptions within one year following purchases of $1 million or more made without an initial sales charge.

Estimated based on current fees.

Based on estimated amounts for the current fiscal year.

Intermediate Bond Fund of America / Prospectus 1

Example This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds.

The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

Share classes	1 year	3 years	5 years	10 years
A	$310	$437	$ 576	$ 981
B	637	828	939	1,418
C	243	443	766	1,680
F-1	65	205	357	798
F-2	40	125	219	493
529-A	320	468	630	1,099
529-B	651	868	1,008	1,557
529-C	250	465	803	1,757
529-E	95	296	515	1,143
529-F-1	48	151	263	591
R-1	142	440	761	1,669
R-2	143	443	766	1,680
R-2E	110	343	595	1,317
R-3	97	303	525	1,166
R-4	64	202	351	786
R-5	34	106	185	418
R-6	28	87	152	343

For the share classes listed below, you would pay the following if you did not redeem your shares:

Share classes	1 year	3 years	5 years	10 years
B	$137	$428	$739	$1,418
C	143	443	766	1,680
529-B	151	468	808	1,557
529-C	150	465	803	1,757

Portfolio turnover The fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund’s investment results. During the most recent fiscal year, the fund’s portfolio turnover rate was 199% of the average value of its portfolio.

Intermediate Bond Fund of America / Prospectus 2

Principal investment strategies

The fund maintains a portfolio of bonds, other debt securities and money market instruments having a dollar-weighted average maturity of no less than three years and no greater than five years under normal market conditions. The fund invests primarily in bonds and other debt securities with quality ratings of A– or better or A3 or better (by a Nationally Recognized Statistical Rating Organization designated by the fund’s investment adviser) or unrated but determined to be of equivalent quality by the fund’s investment adviser. The fund may invest up to 10% of its assets in bonds and other debt securities rated in the BBB or Baa rating category (by a Nationally Recognized Statistical Rating Organization designated by the fund’s investment adviser) or in unrated securities determined to be of equivalent quality by the fund’s investment adviser.

The fund primarily invests in intermediate-term debt securities denominated in U.S. dollars. These include securities issued and guaranteed by the U.S. government, debt securities and mortgage-backed securities issued by government-sponsored entities and federal agencies, and instrumentalities that are not backed by the full faith and credit of the U.S. government. In addition, the fund may invest in mortgage-backed securities issued by private issuers and asset-backed securities (securities backed by assets such as auto loans, credit card receivables or other providers of credit).

The investment adviser uses a system of multiple portfolio managers in managing the fund’s assets. Under this approach, the portfolio of the fund is divided into segments managed by individual managers who decide how their respective segments will be invested.

The fund relies on the professional judgment of its investment adviser to make decisions about the fund’s portfolio investments. The basic investment philosophy of the investment adviser is to seek to invest in attractively priced securities that, in its opinion, represent good investment opportunities. The investment adviser believes that an important way to accomplish this is by analyzing various factors, which may include the credit strength of the issuer, prices of similar securities issued by comparable issuers, anticipated changes in interest rates, general market conditions and other factors pertinent to the particular security being evaluated. Securities may be sold when the investment adviser believes that they no longer represent relatively attractive investment opportunities.

Principal risks

This section describes the principal risks associated with the fund’s principal investment strategies. You may lose money by investing in the fund. The likelihood of loss may be greater if you invest for a shorter period of time.

Market conditions — The prices of, and the income generated by, the securities held by the fund may decline due to market conditions and other factors, including those directly involving the issuers of securities held by the fund.

Investing in bonds — Rising interest rates will generally cause the prices of bonds and other debt securities to fall. Longer maturity debt securities may be subject to greater price fluctuations than shorter maturity debt securities. In addition, falling interest rates may cause an issuer to redeem, call or refinance a debt security before

Intermediate Bond Fund of America / Prospectus 3

its stated maturity, which may result in the fund having to reinvest the proceeds in lower yielding securities.

Bonds and other debt securities are subject to credit risk, which is the possibility that the credit strength of an issuer will weaken and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. Lower quality debt securities generally have higher rates of interest and may be subject to greater price fluctuations than higher quality debt securities. Credit risk is gauged, in part, by the credit ratings of the securities in which the fund invests. However, ratings are only the opinions of the rating agencies issuing them and are not guarantees as to credit quality or an evaluation of market risk. The fund’s investment adviser relies on its own credit analysts to research issuers and issues in seeking to mitigate the risks of an issuer defaulting on its obligations.

Investing in mortgage-backed and asset-backed securities — Many types of bonds and other debt securities, including mortgage-backed securities, are subject to prepayment risk as well as the risks associated with investing in debt securities in general. If interest rates fall and the loans underlying these securities are prepaid faster than expected, the fund may have to reinvest the prepaid principal in lower yielding securities, thus reducing the fund’s income. Conversely, if interest rates increase and the loans underlying the securities are prepaid more slowly than expected, the time in which the securities are expected to be paid off could be extended. This may reduce the fund’s cash for potential reinvestment in higher yielding securities.

Investing in securities backed by the U.S. government — Securities backed by the U.S. Treasury or the full faith and credit of the U.S. government are guaranteed only as to the timely payment of interest and principal when held to maturity. Accordingly, the current market values for these securities will fluctuate with changes in interest rates. Securities issued by government-sponsored entities and federal agencies and instrumentalities that are not backed by the full faith and credit of the U.S. government are neither issued nor guaranteed by the U.S. government.

Thinly traded securities — There may be little trading in the secondary market for particular bonds or other debt securities, which may make them more difficult to value, acquire or sell.

Investing in future delivery contracts — Contracts for future delivery of mortgage-related securities, such as to be announced contracts and mortgage dollar rolls, involve the fund selling mortgage-related securities and simultaneously contracting to repurchase similar securities for delivery at a future date at a predetermined price. This can increase the fund’s market exposure, and the market price of the securities the fund contracts to repurchase could drop below their purchase price. While the fund can preserve and generate capital through the use of such contracts by, for example, realizing the difference between the sale price and the future purchase price, the income generated by the fund may be reduced by engaging in such transactions. In addition, these transactions may increase the turnover rate of the fund.

Intermediate Bond Fund of America / Prospectus 4

Management — The investment adviser to the fund actively manages the fund’s investments. Consequently, the fund is subject to the risk that the methods and analyses employed by the investment adviser in this process may not produce the desired results. This could cause the fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.

Your investment in the fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency, entity or person. You should consider how this fund fits into your overall investment program.

Investment results

The following bar chart shows how the fund’s investment results have varied from year to year, and the following table shows how the fund’s average annual total returns for various periods compare with different broad measures of market results. This information provides some indication of the risks of investing in the fund. The Lipper Short-Intermediate Investment Grade Debt Funds Average includes the fund and other funds that disclose investment objectives and/or strategies reasonably comparable to those of the fund. The Lipper Short-Intermediate U.S. Government Funds Average includes funds that disclose investment objectives and/or strategies reasonably comparable to those of the fund. Past investment results (before and after taxes) are not predictive of future investment results. Updated information on the fund’s investment results can be obtained by visiting americanfunds.com.

Intermediate Bond Fund of America / Prospectus 5

Average annual total returns For the periods ended December 31, 2013 (with maximum sales charge):
Share class	Inception date	1 year	5 years	10 years	Lifetime
A − Before taxes	2/19/1988	– 3.63%	2.71%	2.47%	5.03%
− After taxes on distributions		–4.17	1.92	1.38	N/A
− After taxes on distributions and sale of fund shares		–2.05	1.80	1.50	N/A

Share classes (before taxes)	Inception date	1 year	5 years	10 years	Lifetime
B	3/15/2000	– 6.79%	2.11%	2.14%	3.39%
C	3/15/2001	– 2.93	2.42	1.94	2.57
F-1	3/19/2001	– 1.22	3.19	2.71	3.18
F-2	8/8/2008	– 0.95	3.50	N/A	3.14
529-A	2/19/2002	– 3.72	2.63	2.40	2.74
529-B	2/26/2002	– 6.91	1.98	2.01	2.40
529-C	2/19/2002	– 3.00	2.36	1.86	2.15
529-E	3/15/2002	– 1.50	2.89	2.38	2.76
529-F-1	9/16/2002	– 1.05	3.38	2.85	2.86
R-1	6/13/2002	– 1.94	2.43	1.92	2.14
R-2	5/31/2002	– 1.92	2.44	1.95	2.18
R-3	6/26/2002	– 1.51	2.87	2.37	2.54
R-4	6/27/2002	– 1.20	3.21	2.71	2.91
R-5	5/15/2002	– 0.90	3.51	3.02	3.32
R-6	5/1/2009	– 0.84	N/A	N/A	3.44

Indexes	1 year	5 years	10 years	Lifetime (from Class A inception)
Barclays U.S. Government/Credit 1–7 Years ex BBB Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes)	– 0.36%	2.82%	3.57%	5.87%
Lipper Short-Intermediate Investment Grade Debt Funds Average (reflects no deductions for sales charges, account fees or U.S. federal income taxes)	– 0.20	5.17	3.50	5.61
Lipper Short-Intermediate U.S. Government Funds Average (reflects no deductions for sales charges, account fees or U.S. federal income taxes)	– 1.53	2.14	2.98	5.43
Class A annualized 30-day yield at February 28, 2014: 0.69% (For current yield information, please call American FundsLine® at (800) 325-3590.)

After-tax returns are shown only for Class A shares; after-tax returns for other share classes will vary. After-tax returns are calculated using the highest individual federal income tax rates in effect during each year of the periods shown and do not reflect the impact of state and local taxes. Your actual after-tax returns depend on your individual tax situation and likely will differ from the results shown above. In addition, after-tax returns are not relevant if you hold your fund shares through a tax-favored arrangement, such as a 401(k) plan, individual retirement account (IRA) or 529 college savings plan.

Management

Investment adviser Capital Research and Management Company^SM

Portfolio managers The individuals primarily responsible for the portfolio management of the fund are:

Intermediate Bond Fund of America / Prospectus 6

Portfolio manager/ Fund title (if applicable)	Portfolio manager experience in this fund	Primary title with investment adviser
John H. Smet Vice Chairman of the Board	23 years	Senior Vice President – Capital Fixed Income Investors
Mark A. Brett President	5 years	Vice President – Capital Fixed Income Investors
David S. Lee	1 year	Senior Vice President – Capital Fixed Income Investors
Fergus N. MacDonald	1 year	Senior Vice President – Capital Fixed Income Investors

Certain senior members of the fixed-income investment division serve on a portfolio strategy group. The group utilizes a research driven process with input from the investment adviser’s analysts, portfolio managers and economists to define investment themes and to set guidance on a range of macro factors, including duration, yield curve and sector allocation. The fund’s portfolio managers consider guidance of the portfolio strategy group in making their investment decisions.

Purchase and sale of fund shares

The minimum amount to establish an account for all share classes is $250 and the minimum to add to an account is $50. For a payroll deduction retirement plan account, payroll deduction savings plan account or employer-sponsored 529 account, the minimum is $25 to establish or add to an account.

If you are a retail investor, you may sell (redeem) shares through your dealer or financial advisor or by writing to American Funds Service Company®at P.O. Box 6007, Indianapolis, Indiana 46206-6007; telephoning American Funds Service Company at (800) 421-4225; faxing American Funds Service Company at (888) 421-4351; or accessing our website at americanfunds.com. Please contact your plan administrator or recordkeeper to sell (redeem) shares from your retirement plan.

Tax information

Dividends and capital gain distributions you receive from the fund are subject to federal income taxes and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-favored.

Payments to broker-dealers and other financial intermediaries

If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and the fund’s distributor or its affiliates may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your individual financial advisor to recommend the fund over another investment. Ask your individual financial advisor or visit your financial intermediary’s website for more information.

Intermediate Bond Fund of America / Prospectus 7

Investment objective, strategies and risks

The fund’s investment objective is to provide you with current income consistent with the maturity and quality standards described in this prospectus and preservation of capital. While it has no present intention to do so, the fund’s board may change the fund’s investment objectives without shareholder approval upon 60 days’ written notice to shareholders.

The fund will invest more than 80% of its assets in bonds (bonds include any debt instrument and money market instrument). The fund maintains a portfolio of bonds, other debt securities and money market instruments having a dollar-weighted average maturity of no less than three years and no greater than five years under normal market conditions. The fund invests primarily in bonds and other debt securities with quality ratings of A– or better or A3 or better (by Nationally Recognized Statistical Rating Organizations designated by the fund’s investment adviser) or unrated but determined to be of equivalent quality by the fund’s investment adviser. The fund may invest up to 10% of its assets in bonds and other debt securities rated in the BBB or Baa rating category (by Nationally Recognized Statistical Rating Organizations designated by the fund’s investment adviser) or in unrated securities determined to be of equivalent quality by the fund’s investment adviser. As of the end of the fund’s last fiscal period, August 31, 2012, the dollar-weighted average maturity of the fund’s portfolio was 3.80 years.

The prices of, and the income generated by, the securities held by the fund may decline in response to certain events taking place around the world, including those directly involving the issuers of securities held by the fund; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; governmental or governmental agency responses to economic conditions; and currency, interest rate and commodity price fluctuations.

The prices of, and the income generated by, most bonds and other debt securities held by the fund may be affected by changing interest rates and by changes in the effective maturities and credit ratings of these securities. For example, the prices of debt securities in the fund’s portfolio generally will decline when interest rates rise and increase when interest rates fall.

In addition, falling interest rates may cause an issuer to redeem, call or refinance a debt security before its stated maturity, which may result in the fund having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities generally have higher rates of interest and may be subject to greater price fluctuations than shorter maturity debt securities.

Intermediate Bond Fund of America / Prospectus 8

Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer will weaken and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. Lower quality debt securities generally have higher rates of interest and may be subject to greater price fluctuations than higher quality debt securities. Credit risk is gauged, in part, by the credit ratings of the securities in which the fund invests. However, ratings are only the opinions of the rating agencies issuing them and are not guarantees as to credit quality or an evaluation of market risk. The fund’s investment adviser relies on its own credit analysts to research issuers and issues in seeking to mitigate the risks of an issuer defaulting on its obligations.

Many types of bonds and other debt securities, including mortgage-backed securities, are subject to prepayment risk. For example, when interest rates fall, homeowners are more likely to refinance their home mortgages and “prepay” their principal earlier than expected. The fund must then reinvest the prepaid principal in new securities when interest rates on new mortgage investments are falling, thus reducing the fund’s income. Conversely, if interest rates increase and the loans underlying the securities are prepaid more slowly than expected, the time in which the securities are expected to be paid off could be extended. This may reduce the fund’s cash for potential reinvestment in higher yielding securities. In addition, the values of the securities ultimately depend upon the payment pattern of the underlying loans by individuals.

A bond’s effective maturity is the market’s trading assessment of its maturity and represents an estimate of the most likely time period during which an investor in that bond will receive payment of principal. For example, as market interest rates decline, issuers may exercise call provisions that shorten the bond’s effective maturity. Conversely, if interest rates rise, effective maturities tend to lengthen. A portfolio’s dollar-weighted average maturity is the weighted average of all effective maturities in the portfolio, where more weight is given to larger holdings.

Securities backed by the U.S. Treasury or the full faith and credit of the U.S. government are guaranteed only as to the timely payment of interest and principal when held to maturity. Accordingly, the current market values for these securities will fluctuate with changes in interest rates. Securities issued by government-sponsored entities and federal agencies and instrumentalities that are not backed by the full faith and credit of the U.S. government are neither issued nor guaranteed by the U.S. government.

The fund may enter into contracts, such as to be announced contracts and mortgage dollar rolls, that involve the fund selling mortgage-related securities and simultaneously contracting to repurchase similar securities for delivery at a future date at a predetermined price. This can increase the fund’s market exposure, and the market price of the securities that the fund contracts to repurchase could drop below their purchase price. While the fund can preserve and generate capital through the use of such contracts by, for example, realizing the difference between the sale price and the future purchase price, the income generated by the fund may be reduced by engaging in such transactions. In addition, these transactions may increase the turnover rate of the fund.

There may be little trading in the secondary market for particular bonds or other debt securities, which may make them more difficult to value, acquire or sell.

Intermediate Bond Fund of America / Prospectus 9

The fund’s investment adviser attempts to reduce these risks through diversification of the portfolio and ongoing credit analysis, as well as by monitoring economic and legislative developments, but there can be no assurance that it will be successful at doing so.

The fund may also hold cash or money market instruments, including commercial paper and short-term securities issued by the U.S. government, its agencies and instrumentalities. The percentage of the fund invested in such holdings varies and depends on various factors, including market conditions. For temporary defensive purposes, the fund may invest without limitation in such instruments. The investment adviser may determine that it is appropriate to invest substantially in such instruments in response to certain circumstances, such as periods of market turmoil. A larger percentage of such holdings could moderate the fund’s investment results in a period of rising market prices. Consistent with the fund’s preservation of capital objective, a larger percentage of cash or money market instruments could reduce the magnitude of the fund’s loss in a period of falling market prices and provide liquidity to make additional investments or to meet redemptions.

The fund’s investment results will depend on the ability of the fund’s investment adviser to navigate the risks discussed above.

In addition to the investment strategies described above, the fund has other investment practices that are described in the statement of additional information, which includes a description of certain risks associated with those practices.

Intermediate Bond Fund of America / Prospectus 10

Fund comparative indexes The investment results table in this prospectus shows how the fund’s average annual total returns compare with various broad measures of market results. The Barclays U.S. Government/Credit 1–7 Years ex BBB Index is a market-value-weighted index that tracks the total return of fixed-rate, publicly placed, dollar-denominated obligations issued by the U.S. Treasury, U.S. government agencies and quasi-federal corporations, corporate or foreign debt guaranteed by the U.S. government, and U.S. corporate and foreign debentures and secured notes that meet specified maturity, liquidity and quality requirements, with maturities of one to seven years, excluding BBB-rated securities. This index is unmanaged and its results include reinvested distributions but do not reflect the effect of sales charges, account fees, expenses or U.S. federal income taxes. The Lipper Short-Intermediate Investment Grade Debt Funds Average is composed of funds that invest primarily in investment-grade debt issues (rated in the top four grades) with dollar-weighted average maturities of one to five years. The results of the underlying funds in the average include the reinvestment of dividends and capital gain distributions, as well as brokerage commissions paid by the funds for portfolio transactions and other fund expenses, but do not reflect the effect of sales charges, account fees or U.S. federal income taxes. The Lipper Short-Intermediate U.S. Government Funds Average is composed of funds that invest primarily in securities issued or guaranteed by the U.S. government, its agencies, or its instrumentalities, with dollar-weighted average maturities of one to five years. The results of the underlying funds in the average include the reinvestment of dividends and capital gain distributions, as well as brokerage commissions paid by the fund for portfolio transactions and other fund expenses, but do not reflect the effect of sales charges, account fees or U.S. federal income taxes.

Fund results All fund results in this prospectus reflect the reinvestment of dividends and capital gain distributions, if any. Unless otherwise noted, fund results reflect any fee waivers and/or expense reimbursements in effect during the periods presented.

Intermediate Bond Fund of America / Prospectus 11

Management and organization

Investment adviser Capital Research and Management Company, an experienced investment management organization founded in 1931, serves as the investment adviser to the fund and other funds, including the American Funds. Capital Research and Management Company is a wholly owned subsidiary of The Capital Group Companies, Inc. and is located at 333 South Hope Street, Los Angeles, California 90071. Capital Research and Management Company manages the investment portfolio and business affairs of the fund. The total management fee paid by the fund, as a percentage of average net assets, for the previous fiscal year appears in the Annual Fund Operating Expenses table under “Fees and expenses of the fund.” The management fee is based on the daily net assets of the fund and the fund’s monthly gross investment income. Please see the statement of additional information for further details. A discussion regarding the basis for approval of the fund’s Investment Advisory and Service Agreement by the fund’s board of trustees is contained in the fund’s annual report to shareholders for the fiscal year ended August 31, 2013.

Capital Research and Management Company manages equity assets through three equity investment divisions and fixed-income assets through its fixed-income investment division, Capital Fixed Income Investors. The three equity investment divisions — Capital World Investors, Capital Research Global Investors and Capital International Investors — make investment decisions independently of one another.

The equity investment divisions may, in the future, be incorporated as wholly owned subsidiaries of Capital Research and Management Company. In that event, Capital Research and Management Company would continue to be the investment adviser, and day-to-day investment management of equity assets would continue to be carried out through one or more of these subsidiaries. Although not currently contemplated, Capital Research and Management Company could incorporate its fixed-income investment division in the future and engage it to provide day-to-day investment management of fixed-income assets. Capital Research and Management Company and each of the funds it advises have received an exemptive order from the U.S. Securities and Exchange Commission that allows Capital Research and Management Company to use, upon approval of the fund’s board, its management subsidiaries and affiliates to provide day-to-day investment management services to the fund, including making changes to the management subsidiaries and affiliates providing such services. The fund’s shareholders have approved this arrangement; however, there is no assurance that Capital Research and Management Company will incorporate its investment divisions or exercise any authority granted to it under the exemptive order.

Portfolio holdings Portfolio holdings information for the fund is available on the American Funds website at americanfunds.com. A description of the fund’s policies and procedures regarding disclosure of information about its portfolio holdings is available in the statement of additional information.

Intermediate Bond Fund of America / Prospectus 12

The Capital System^SM Capital Research and Management Company uses a system of multiple portfolio managers in managing mutual fund assets. Under this approach, the portfolio of a fund is divided into segments managed by individual managers who decide how their respective segments will be invested. In addition, Capital Research and Management Company’s investment analysts may make investment decisions with respect to a portion of a fund’s portfolio. Investment decisions are subject to a fund’s objective(s), policies and restrictions and the oversight of the appropriate investment-related committees of Capital Research and Management Company and its investment divisions.

The table below shows the investment experience and role in management of the fund for each of the fund’s primary portfolio managers.

Portfolio manager	Investment experience	Experience in this fund	Role in management of the fund
John H. Smet	Investment professional for 32 years in total; 31 years with Capital Research and Management Company or affiliate	23 years	Serves as a fixed-income portfolio manager
Mark A. Brett	Investment professional for 35 years in total; 21 years with Capital Research and Management Company or affiliate	5 years	Serves as a fixed-income portfolio manager
David S. Lee	Investment professional for 15 years in total; 12 years with Capital Research and Management Company or affiliate	1 year	Serves as a fixed-income portfolio manager
Fergus N. MacDonald	Investment professional for 22 years in total; 11 years with Capital Research and Management Company or affiliate	1 year	Serves as a fixed-income portfolio manager

Information regarding the portfolio managers’ compensation, their ownership of securities in the fund and other accounts they manage is in the statement of additional information.

Intermediate Bond Fund of America / Prospectus 13

Certain privileges and/or services described on the following pages of this prospectus and in the statement of additional information may not be available to you, depending on your investment dealer or retirement plan recordkeeper. Please see your financial advisor, investment dealer or retirement plan recordkeeper for more information.

Shareholder information

Shareholder services American Funds Service Company, the fund’s transfer agent, offers a wide range of services that you can use to alter your investment program should your needs or circumstances change. These services may be terminated or modified at any time upon 60 days’ written notice.

A more detailed description of policies and services is included in the fund’s statement of additional information and the owner’s guide sent to new American Funds shareholders entitled Welcome. Class 529 shareholders should also refer to the applicable program description for information on policies and services relating specifically to their account(s). These documents are available by writing to or calling American Funds Service Company.

Intermediate Bond Fund of America / Prospectus 14

Unless otherwise noted, references to Class A, B, C or F-1 shares on the following pages also refer to the corresponding Class 529-A, 529-B, 529-C or 529-F-1 shares. Unless otherwise noted, references to Class F shares refer to both Class F-1 and F-2 shares and references to Class R shares refer to Class R-1, R-2, R-2E, R-3, R-4, R-5 and R-6 shares.

Purchase, exchange and sale of shares

The fund’s transfer agent, on behalf of the fund and American Funds Distributors,®the fund’s distributor, is required by law to obtain certain personal information from you or any other person(s) acting on your behalf in order to verify your or such person’s identity. If you do not provide the information, the transfer agent may not be able to open your account. If the transfer agent is unable to verify your identity or that of any other person(s) authorized to act on your behalf, or believes it has identified potentially criminal activity, the fund and American Funds Distributors reserve the right to close your account or take such other action they deem reasonable or required by law.

When purchasing shares, you should designate the fund or funds in which you wish to invest. Subject to the exception below, if no fund is designated, your money will be held uninvested (without liability to the transfer agent for loss of income or appreciation pending receipt of proper instructions) until investment instructions are received, but for no more than three business days. Your investment will be made at the net asset value (plus any applicable sales charge, in the case of Class A shares) next determined after investment instructions are received and accepted by the transfer agent. If investment instructions are not received, your money will be invested in Class A shares of American Funds Money Market Fund® on the third business day after receipt of your investment.

If the amount of your cash investment is $10,000 or less, no fund is designated, and you made a cash investment (excluding exchanges) within the last 16 months, your money will be invested in the same proportion and in the same fund or funds and in the same class of shares in which your last cash investment was made.

Different procedures may apply to certain employer-sponsored arrangements, including, but not limited to, SEPs and SIMPLE IRAs.

Valuing shares The net asset value of each share class of the fund is the value of a single share of that class. The fund calculates the net asset value each day the New York Stock Exchange is open for trading as of approximately 4 p.m. New York time, the normal close of regular trading. If, for example, the New York Stock Exchange closes at 1 p.m. New York time, the fund’s net asset value would still be determined as of 4 p.m. New York time. In this example, portfolio securities traded on the New York Stock Exchange would be valued at their closing prices unless the investment adviser determines that a “fair value” adjustment is appropriate due to subsequent events. Assets are valued primarily on the basis of market quotations. However, the fund has adopted procedures for making fair value determinations if market quotations are not readily available or are not considered reliable. For example, fair value procedures may be used if an issuer defaults and there is no market for its securities. Use of these procedures is intended to result in more appropriate net asset values.

Intermediate Bond Fund of America / Prospectus 15

Your shares will be purchased at the net asset value (plus any applicable sales charge, in the case of Class A shares) or sold at the net asset value next determined after American Funds Service Company receives your request, provided that your request contains all information and legal documentation necessary to process the transaction. A contingent deferred sales charge may apply at the time you sell certain Class A, B and C shares.

Purchase of Class A and C shares You may generally open an account and purchase Class A shares by contacting any financial advisor (who may impose transaction charges in addition to those described in this prospectus) authorized to sell the fund’s shares. See the statement of additional information for information on purchasing Class C shares. You may purchase additional shares in various ways, including through your financial advisor and by mail, telephone, the Internet and bank wire.

Class B shares Class B and 529-B shares may not be purchased or acquired, except by exchange from Class B or 529-B shares of another fund in the American Funds family. Any other investment received by the fund that is intended for Class B or 529-B shares will instead be invested in Class A or 529-A shares and will be subject to any applicable sales charges.

Shareholders with investments in Class B and 529-B shares may continue to hold such shares until they convert to Class A or 529-A shares. However, no additional investments will be accepted in Class B or 529-B shares. Dividends and capital gain distributions may continue to be reinvested in Class B or 529-B shares until their conversion dates. In addition, shareholders invested in Class B or 529-B shares will be able to exchange those shares for Class B or 529-B shares of other American Funds offering Class B or 529-B shares until they convert.

Automatic conversion of Class B and C shares Class B shares automatically convert to Class A shares in the month of the eight-year anniversary of the purchase date. Class C shares automatically convert to Class F-1 shares in the month of the 10-year anniversary of the purchase date; however, Class 529-C shares will not convert to Class 529-F-1 shares. The Internal Revenue Service currently takes the position that these automatic conversions are not taxable. Should its position change, the automatic conversion feature may be suspended. If this were to happen, you would have the option of converting your Class B, 529-B or C shares to the respective share classes at the anniversary dates described above. This exchange would be based on the relative net asset values of the two classes in question, without the imposition of a sales charge or fee, but you might face certain tax consequences as a result.

Purchase of Class F shares You may generally open an account and purchase Class F shares only through fee-based programs of investment dealers that have special agreements with the fund’s distributor, through certain registered investment advisors and through other intermediaries approved by the fund’s distributor. These intermediaries typically charge ongoing fees for services they provide. Intermediary fees are not paid by the fund and normally range from .75% to 1.50% of assets annually, depending on the services offered.

Purchase of Class 529 shares Class 529 shares may be purchased only through an account established with a 529 college savings plan managed by the American

Intermediate Bond Fund of America / Prospectus 16

Funds organization. You may open this type of account and purchase Class 529 shares by contacting any financial advisor (who may impose transaction charges in addition to those described in this prospectus) authorized to sell such an account. You may purchase additional shares in various ways, including through your financial advisor and by mail, telephone, the Internet and bank wire.

Class 529-E shares may be purchased only by employees participating through an eligible employer plan.

Accounts holding Class 529 shares are subject to a $10 account setup fee and an annual $10 account maintenance fee. These fees are waived until further notice.

Investors residing in any state may purchase Class 529 shares through an account established with a 529 college savings plan managed by the American Funds organization. Class 529-A, 529-B, 529-C and 529-F-1 shares are structured similarly to the corresponding Class A, B, C and F-1 shares. For example, the same initial sales charges apply to Class 529-A shares as to Class A shares.

Purchase of Class R shares Class R shares are generally available only to retirement plans established under Internal Revenue Code Sections 401(a), 403(b) or 457, and to nonqualified deferred compensation plans and certain voluntary employee benefit association and post-retirement benefit plans. Class R shares also are generally available only to retirement plans where plan level or omnibus accounts are held on the books of the fund. Class R-5 and R-6 shares are generally available only to fee-based programs or through retirement plan intermediaries. In addition, Class R-5 and R-6 shares are available for investment by other registered investment companies approved by the fund’s investment adviser or distributor. Class R shares generally are not available to retail nonretirement accounts, traditional and Roth individual retirement accounts (IRAs), Coverdell Education Savings Accounts, SEPs, SARSEPs, SIMPLE IRAs and 529 college savings plans.

Purchases by employer-sponsored retirement plans Eligible retirement plans generally may open an account and purchase Class A or R shares by contacting any investment dealer (who may impose transaction charges in addition to those described in this prospectus) authorized to sell these classes of the fund’s shares. Some or all R share classes may not be available through certain investment dealers. Additional shares may be purchased through a plan’s administrator or recordkeeper.

Class A shares are generally not available for retirement plans using the PlanPremier® or Recordkeeper Direct® recordkeeping programs.

Employer-sponsored retirement plans that are eligible to purchase Class R shares may instead purchase Class A shares and pay the applicable Class A sales charge, provided that their recordkeepers can properly apply a sales charge on plan investments. These plans are not eligible to make initial purchases of $1 million or more in Class A shares and thereby invest in Class A shares without a sales charge, nor are they eligible to establish a statement of intention that qualifies them to purchase Class A shares without a sales charge. More information about statements of intention can be found under “Sales charge reductions and waivers” in this prospectus. Plans investing in Class A shares with a sales charge may purchase additional Class A shares in accordance with the sales charge table in this prospectus.

Intermediate Bond Fund of America / Prospectus 17

Employer-sponsored retirement plans that invested in Class A shares without any sales charge before April 1, 2004, and that continue to meet the eligibility requirements in effect as of that date for purchasing Class A shares at net asset value, may continue to purchase Class A shares without any initial or contingent deferred sales charge.

A 403(b) plan may not invest in Class A or C shares unless it was invested in Class A or C shares before January 1, 2009.

Purchase minimums and maximums Purchase minimums described in this prospectus may be waived in certain cases. In addition, the fund reserves the right to redeem the shares of any shareholder for their then current net asset value per share if the shareholder’s aggregate investment in the fund falls below the fund’s minimum initial investment amount. See the statement of additional information for details.

For accounts established with an automatic investment plan, the initial purchase minimum of $250 may be waived if the purchases (including purchases through exchanges from another fund) made under the plan are sufficient to reach $250 within five months of account establishment.

The effective purchase maximums for Class 529-A, 529-E and 529-F-1 shares will reflect the maximum applicable contribution limits under state law. See the applicable program description for more details.

Exchange Generally, you may exchange your shares for shares of the same class of other American Funds without a sales charge. Class A, C or F-1 shares may generally be exchanged for the corresponding 529 share class without a sales charge. Class B shares may not be exchanged for Class 529-B shares. Exchanges from Class A, C or F-1 shares to the corresponding 529 share class, particularly in the case of Uniform Gifts to Minors Act or Uniform Transfers to Minors Act custodial accounts, may result in significant legal and tax consequences, as described in the applicable program description. Please consult your financial advisor before making such an exchange.

Exchanges of shares from American Funds Money Market Fund initially purchased without a sales charge generally will be subject to the appropriate sales charge. For purposes of computing the contingent deferred sales charge on Class B and C shares, the length of time you have owned your shares will be measured from the first day of the month in which shares were purchased and will not be affected by any permitted exchange.

Exchanges have the same tax consequences as ordinary sales and purchases. For example, to the extent you exchange shares held in a taxable account that are worth more now than what you paid for them, the gain will be subject to taxation.

See “Transactions by telephone, fax or the Internet” in the section “How to sell shares” of this prospectus for information regarding electronic exchanges.

Please see the statement of additional information for details and limitations on moving investments in certain share classes to different share classes and on moving investments held in certain accounts to different accounts.

Intermediate Bond Fund of America / Prospectus 18

How to sell shares

You may sell (redeem) shares in any of the following ways:

Employer-sponsored retirement plans

Shares held in eligible retirement plans may be sold through the plan’s administrator or recordkeeper.

Through your dealer or financial advisor (certain charges may apply)

Shares held for you in your dealer’s name must be sold through the dealer.

Generally, Class F shares must be sold through intermediaries such as dealers or financial advisors.

Writing to American Funds Service Company

Requests must be signed by the registered shareholder(s).

A signature guarantee is required if the redemption is:

—

more than $125,000;

—

made payable to someone other than the registered shareholder(s); or

—

sent to an address other than the address of record or to an address of record that has been changed within the previous 10 days.

American Funds Service Company reserves the right to require signature guarantee(s) on any redemption.

Additional documentation may be required for redemptions of shares held in corporate, partnership or fiduciary accounts.

Telephoning or faxing American Funds Service Company or using the Internet

Redemptions by telephone, fax or the Internet (including American FundsLine and americanfunds.com) are limited to $125,000 per American Funds shareholder each day.

Checks must be made payable to the registered shareholder.

Checks must be mailed to an address of record that has been used with the account for at least 10 days.

If you recently purchased shares and subsequently request a redemption of those shares, you will receive proceeds from the redemption once a sufficient period of time has passed to reasonably ensure that checks or drafts, including certified or cashier’s checks, for the shares purchased have cleared (normally 10 business days).

Although payment of redemptions normally will be in cash, the fund’s declaration of trust permits payment of the redemption price wholly or partly with portfolio securities or other fund assets under conditions and circumstances determined by the fund’s board of trustees.

Intermediate Bond Fund of America / Prospectus 19

Transactions by telephone, fax or the Internet Generally, you are automatically eligible to redeem or exchange shares by telephone, fax or the Internet, unless you notify us in writing that you do not want any or all of these services. You may reinstate these services at any time.

Unless you decide not to have telephone, fax or Internet services on your account(s), you agree to hold the fund, American Funds Service Company, any of its affiliates or mutual funds managed by such affiliates, and each of their respective directors, trustees, officers, employees and agents harmless from any losses, expenses, costs or liabilities (including attorney fees) that may be incurred in connection with the exercise of these privileges, provided that American Funds Service Company employs reasonable procedures to confirm that the instructions received from any person with appropriate account information are genuine. If reasonable procedures are not employed, American Funds Service Company and/or the fund may be liable for losses due to unauthorized or fraudulent instructions.

Frequent trading of fund shares The fund and American Funds Distributors reserve the right to reject any purchase order for any reason. The fund is not designed to serve as a vehicle for frequent trading. Frequent trading of fund shares may lead to increased costs to the fund and less efficient management of the fund’s portfolio, potentially resulting in dilution of the value of the shares held by long-term shareholders. Accordingly, purchases, including those that are part of exchange activity, that the fund or American Funds Distributors has determined could involve actual or potential harm to the fund may be rejected.

The fund, through its transfer agent, American Funds Service Company, maintains surveillance procedures that are designed to detect frequent trading in fund shares. Under these procedures, various analytics are used to evaluate factors that may be indicative of frequent trading. For example, transactions in fund shares that exceed certain monetary thresholds may be scrutinized. American Funds Service Company also may review transactions that occur close in time to other transactions in the same account or in multiple accounts under common ownership or influence. Trading activity that is identified through these procedures or as a result of any other information available to the fund will be evaluated to determine whether such activity might constitute frequent trading. These procedures may be modified from time to time as appropriate to improve the detection of frequent trading, to facilitate monitoring for frequent trading in particular retirement plans or other accounts and to comply with applicable laws.

In addition to the fund’s broad ability to restrict potentially harmful trading as described above, the fund’s board of trustees has adopted a “purchase blocking policy” under which any shareholder redeeming shares having a value of $5,000 or more from a fund will be precluded from investing in that fund for 30 calendar days after the redemption transaction. This policy also applies to redemptions and purchases that are part of exchange transactions. Under the fund’s purchase blocking policy, certain purchases will not be prevented and certain redemptions will not trigger a purchase block, such as:

purchases and redemptions of shares having a value of less than $5,000;

transactions in Class 529 shares;

Intermediate Bond Fund of America / Prospectus 20

purchases and redemptions by investment companies managed or sponsored by the fund’s investment adviser or its affiliates, including reallocations and transactions allowing the investment company to meet its redemptions and purchases;

retirement plan contributions, loans and distributions (including hardship withdrawals) identified as such on the retirement plan recordkeeper’s system;

purchase transactions involving in-kind transfers of shares of the fund, rollovers, Roth IRA conversions and IRA recharacterizations, where the entity maintaining the shareholder account is able to identify the transaction as one of these types of transactions; and

systematic redemptions and purchases, where the entity maintaining the shareholder account is able to identify the transaction as a systematic redemption or purchase.

Generally, purchases and redemptions will not be considered “systematic” unless the transaction is prescheduled for a specific date.

The fund reserves the right to waive the purchase blocking policy with respect to specific shareholder accounts in those instances where American Funds Service Company determines that its surveillance procedures are adequate to detect frequent trading in fund shares.

American Funds Service Company will work with certain intermediaries (such as investment dealers holding shareholder accounts in street name, retirement plan recordkeepers, insurance company separate accounts and bank trust companies) to apply their own procedures, provided that American Funds Service Company believes the intermediary’s procedures are reasonably designed to enforce the frequent trading policies of the fund. You should refer to disclosures provided by the intermediaries with which you have an account to determine the specific trading restrictions that apply to you.

If American Funds Service Company identifies any activity that may constitute frequent trading, it reserves the right to contact the intermediary and request that the intermediary either provide information regarding an account owner’s transactions or restrict the account owner’s trading. If American Funds Service Company is not satisfied that the intermediary has taken appropriate action, American Funds Service Company may terminate the intermediary’s ability to transact in fund shares.

There is no guarantee that all instances of frequent trading in fund shares will be prevented.

Notwithstanding the fund’s surveillance procedures and purchase blocking policy described above, all transactions in fund shares remain subject to the right of the fund, American Funds Distributors and American Funds Service Company to restrict potentially abusive trading generally, including the types of transactions described above that will not be prevented or trigger a block under the purchase blocking policy. See the statement of additional information for more information about how American Funds Service Company may address other potentially abusive trading activity in the American Funds.

Intermediate Bond Fund of America / Prospectus 21

Distributions and taxes

Dividends and distributions The fund declares daily dividends from net investment income and distributes the accrued dividends, which may fluctuate, to you each month. Generally, dividends begin accruing on the day payment for shares is received by the fund or American Funds Service Company.

Capital gains, if any, are usually distributed in December. When a capital gain is distributed, the net asset value per share is reduced by the amount of the payment.

You may elect to reinvest dividends and/or capital gain distributions to purchase additional shares of this fund or other American Funds, or you may elect to receive them in cash. Dividends and capital gain distributions for 529 share classes and retirement plan shareholders will be reinvested automatically.

Taxes on dividends and distributions For federal tax purposes, dividends and distributions of short-term capital gains are taxable as ordinary income. The fund’s distributions of net long-term capital gains are taxable as long-term capital gains. Any dividends or capital gain distributions you receive from the fund will normally be taxable to you when made, regardless of whether you reinvest dividends or capital gain distributions or receive them in cash.

Dividends and capital gain distributions that are automatically reinvested in a tax-favored retirement or education savings account do not result in federal or state income tax at the time of reinvestment.

Taxes on transactions Your redemptions, including exchanges, may result in a capital gain or loss for federal tax purposes. A capital gain or loss on your investment is the difference between the cost of your shares, including any sales charges, and the amount you receive when you sell them.

Exchanges within a tax-favored retirement plan account will not result in a capital gain or loss for federal or state income tax purposes. With limited exceptions, distributions from a retirement plan account are taxable as ordinary income.

Shareholder fees Fees borne directly by the fund normally have the effect of reducing a shareholder’s taxable income on distributions. By contrast, fees paid directly to advisors by a fund shareholder for ongoing advice are deductible for income tax purposes only to the extent that they (combined with certain other qualifying expenses) exceed 2% of such shareholder’s adjusted gross income.

Please see your tax advisor for more information. Holders of Class 529 shares should refer to the applicable program description for more information regarding the tax consequences of selling Class 529 shares.

Intermediate Bond Fund of America / Prospectus 22

Choosing a share class

The fund offers different classes of shares through this prospectus. The services or share classes available to you may vary depending upon how you wish to purchase shares of the fund.

Each share class represents an investment in the same portfolio of securities, but each class has its own sales charge and expense structure, allowing you to choose the class that best fits your situation. When you purchase shares of the fund for an individual-type account, you should choose a share class. If none is chosen, your investment will be made in Class A shares or, in the case of a 529 plan investment, Class 529-A shares.

Factors you should consider when choosing a class of shares include:

how long you expect to own the shares;

how much you intend to invest;

total expenses associated with owning shares of each class;

whether you qualify for any reduction or waiver of sales charges (for example, Class A or 529-A shares may be a less expensive option over time, particularly if you qualify for a sales charge reduction or waiver);

whether you plan to take any distributions in the near future (for example, the contingent deferred sales charge will not be waived if you sell your Class 529-B or 529-C shares to cover higher education expenses); and

availability of share classes:

—

Class B and 529-B shares may not be purchased or acquired except by exchange from Class B or 529-B shares of another fund in the American Funds family;

—

Class C shares are not available to retirement plans that do not currently invest in such shares and that are eligible to invest in Class R shares, including retirement plans established under Internal Revenue Code Sections 401(a) (including 401(k) plans), 403(b) or 457;

—

Class F and 529-F-1 shares are generally available only to fee-based programs of investment dealers that have special agreements with the fund’s distributor, to certain registered investment advisors and to other intermediaries approved by the fund’s distributor; and

—

Class R shares are generally available only to retirement plans established under Internal Revenue Code Sections 401(a) (including 401(k) plans), 403(b) or 457, and to nonqualified deferred compensation plans and certain voluntary employee benefit association and post-retirement benefit plans.

Each investor’s financial considerations are different. You should speak with your financial advisor to help you decide which share class is best for you.

Intermediate Bond Fund of America / Prospectus 23

Sales charges

Class A shares The initial sales charge you pay each time you buy Class A shares differs depending upon the amount you invest and may be reduced or eliminated for larger purchases as indicated below. The “offering price,” the price you pay to buy shares, includes any applicable sales charge, which will be deducted directly from your investment. Shares acquired through reinvestment of dividends or capital gain distributions are not subject to an initial sales charge.

	Sales charge as a percentage of:
Investment	Offering price	Net amount invested	Dealer commission as a percentage of offering price
Less than $500,000	2.50%	2.56%	2.00%
$500,000 but less than $750,000	2.00	2.04	1.60
$750,000 but less than $1 million	1.50	1.52	1.20
$1 million or more and certain other investments described below	none	none	see below

The sales charge, expressed as a percentage of the offering price or the net amount invested, may be higher or lower than the percentages described in the table above due to rounding. This is because the dollar amount of the sales charge is determined by subtracting the net asset value of the shares purchased from the offering price, which is calculated to two decimal places using standard rounding criteria. The impact of rounding will vary with the size of the investment and the net asset value of the shares. Similarly, any contingent deferred sales charge paid by you on investments in Class A shares may be higher or lower than the 1% charge described below due to rounding.

Except as provided below, investments in Class A shares of $1 million or more may be subject to a 1% contingent deferred sales charge if the shares are sold within one year of purchase. The contingent deferred sales charge is based on the original purchase cost or the current market value of the shares being sold, whichever is less.

Class A share purchases not subject to sales charges The following investments are not subject to any initial or contingent deferred sales charge if American Funds Service Company is properly notified of the nature of the investment:

investments in Class A shares made by endowments or foundations with $50 million or more in assets;

investments made by accounts that are part of certain qualified fee-based programs and that purchased Class A shares before the discontinuation of the relevant investment dealer’s load-waived Class A share program with the American Funds; and

certain rollover investments from retirement plans to IRAs (see “Rollovers from retirement plans to IRAs” in this prospectus for more information).

The distributor may pay dealers a commission of up to 1% on investments made in Class A shares with no initial sales charge. The fund may reimburse the distributor for these payments through its plans of distribution (see “Plans of distribution” in this prospectus).

Intermediate Bond Fund of America / Prospectus 24

Transfers from certain 529 plans to plans managed by the American Funds organization will be made with no sales charge. No commission will be paid to the dealer on such a transfer. Please see the statement of additional information for more information.

Certain other investors may qualify to purchase shares without a sales charge, such as employees of investment dealers and registered investment advisors authorized to sell American Funds and employees of The Capital Group Companies, Inc. and its affiliates. Please see the statement of additional information for further details.

Class B and C shares For Class B shares, a contingent deferred sales charge may be applied to shares you sell within six years of the date you purchased the Class B shares, as shown in the table below. The contingent deferred sales charge is eliminated six years after purchase.

Contingent deferred sales charge on Class B shares
Year of redemption:	1	2	3	4	5	6	7+
Contingent deferred sales charge:	5%	4%	4%	3%	2%	1%	0%

For Class C shares, a contingent deferred sales charge of 1% applies if shares are sold within one year of purchase. The contingent deferred sales charge is eliminated one year after purchase.

Any contingent deferred sales charge paid by you on sales of Class B or C shares, expressed as a percentage of the applicable redemption amount, may be higher or lower than the percentages described above due to rounding.

Class 529-E and Class F shares Class 529-E and Class F shares are sold without any initial or contingent deferred sales charge.

Class R shares Class R shares are sold without any initial or contingent deferred sales charge. The distributor will pay dealers annually asset-based compensation of up to 1.00% for sales of Class R-1 shares, up to .75% for Class R-2 shares, up to .60% for Class R-2E shares, up to .50% for Class R-3 shares and up to .25% for Class R-4 shares. No dealer compensation is paid from fund assets on sales of Class R-5 or R-6 shares. The fund may reimburse the distributor for these payments through its plans of distribution.

See “Plans of distribution” in this prospectus for ongoing compensation paid to your dealer or financial advisor for all share classes.

Contingent deferred sales charges Shares acquired through reinvestment of dividends or capital gain distributions are not subject to a contingent deferred sales charge. In addition, the contingent deferred sales charge may be waived in certain circumstances. See “Contingent deferred sales charge waivers” in the section “Sales charge reductions and waivers” of this prospectus. The contingent deferred sales charge is based on the original purchase cost or the current market value of the shares being sold, whichever is less. For purposes of determining the contingent deferred sales charge, if you sell only some of your shares, shares that are not subject to any contingent deferred sales charge will be sold first, followed by shares that you have owned the longest.

Intermediate Bond Fund of America / Prospectus 25

Sales charge reductions and waivers

To receive a reduction in your Class A initial sales charge, you must let your financial advisor or American Funds Service Company know at the time you purchase shares that you qualify for such a reduction. If you do not let your advisor or American Funds Service Company know that you are eligible for a reduction, you may not receive the sales charge discount to which you are otherwise entitled. In order to determine your eligibility to receive a sales charge discount, it may be necessary for you to provide your advisor or American Funds Service Company with information and records (including account statements) of all relevant accounts invested in the American Funds.

In addition to the information in this prospectus, you may obtain more information about share classes, sales charges and sales charge reductions and waivers through a link on the home page of the American Funds website at americanfunds.com, from the statement of additional information or from your financial advisor.

Reducing your Class A initial sales charge Consistent with the policies described in this prospectus, you and your “immediate family” (your spouse — or equivalent, if recognized under local law — and your children under the age of 21) may combine all of your American Funds investments to reduce Class A sales charges. In addition, two or more retirement plans of an employer or an employer’s affiliates may combine all of their American Funds investments to reduce Class A sales charges. Certain investments in the American Funds Target Date Retirement Series,® American Funds Portfolio Series^SMand American Funds College Target Date Series® may also be combined for this purpose. Please see the applicable series’ prospectus for further information. However, for this purpose, investments representing direct purchases of American Funds Money Market Fund are excluded. Following are different ways that you may qualify for a reduced Class A sales charge:

Aggregating accounts To receive a reduced Class A sales charge, investments made by you and your immediate family (see above) may be aggregated if made for your own account(s) and/or certain other accounts, such as:

trust accounts established by the above individuals (please see the statement of additional information for details regarding aggregation of trust accounts where the person(s) who established the trust is/are deceased);

solely controlled business accounts; and

single-participant retirement plans.

Investments made through employer-sponsored retirement plan accounts will not be aggregated with individual-type accounts.

Concurrent purchases You may combine simultaneous purchases (including, upon your request, purchases for gifts) of any class of shares of two or more American Funds (excluding American Funds Money Market Fund) to qualify for a reduced Class A sales charge.

Rights of accumulation You may take into account your accumulated holdings in all share classes of the American Funds (excluding American Funds Money Market Fund) to determine the initial sales charge you pay on each purchase of Class A shares. Subject to your investment dealer’s capabilities, your accumulated

Intermediate Bond Fund of America / Prospectus 26

holdings will be calculated as the higher of (a) the current value of your existing holdings (as of the day prior to your additional American Funds investment) or (b) the amount you invested (including reinvested dividends and capital gains, but excluding capital appreciation) less any withdrawals. Please see the statement of additional information for further details. You should retain any records necessary to substantiate the historical amounts you have invested.

If you make a gift of shares, upon your request you may purchase the shares at the sales charge discount allowed under rights of accumulation of all of your American Funds accounts.

Statement of intention You may reduce your Class A sales charge by establishing a statement of intention. A statement of intention allows you to combine all purchases of all share classes of the American Funds (excluding American Funds Money Market Fund) that you intend to make over a 13-month period to determine the applicable sales charge; however, purchases made under a right of reinvestment, appreciation of your holdings, and reinvested dividends and capital gains do not count as purchases made during the statement period. Your accumulated holdings (as described and calculated under “Rights of accumulation” above) eligible to be aggregated as of the day immediately before the start of the statement period may be credited toward satisfying the statement. A portion of your account may be held in escrow to cover additional Class A sales charges that may be due if your total purchases over the statement period do not qualify you for the applicable sales charge reduction. Employer-sponsored retirement plans may be restricted from establishing statements of intention. See the discussion regarding employer-sponsored retirement plans under “Purchase, exchange and sale of shares” in this prospectus for more information.

Intermediate Bond Fund of America / Prospectus 27

Right of reinvestment If you notify American Funds Service Company prior to the time of reinvestment, you may reinvest proceeds from a redemption, dividend payment or capital gain distribution without a sales charge in the same fund or other American Funds, provided that the reinvestment occurs within 90 days after the date of the redemption, dividend payment or distribution and is made into the same account from which you redeemed the shares or received the dividend payment or distribution. If the account has been closed, you may reinvest without a sales charge if the new receiving account has the same registration as the closed account and the reinvestment is made within 90 days after the date of redemption, dividend payment or distribution.

Proceeds from a Class B share redemption for which a contingent deferred sales charge was paid will be reinvested in Class A shares without any initial sales charge. If you redeem Class B shares without paying a contingent deferred sales charge, you may reinvest the proceeds in Class B shares or purchase Class A shares. If you purchase Class A shares, you are responsible for paying any applicable Class A sales charges. Proceeds from any other type of redemption and all dividend payments and capital gain distributions will be reinvested in the same share class from which the original redemption, dividend payment or distribution was made. Any contingent deferred sales charge on Class A or C shares will be credited to your account. Redemption proceeds of Class A shares representing direct purchases in American Funds Money Market Fund that are reinvested in other American Funds will be subject to a sales charge.

Proceeds will be reinvested at the next calculated net asset value after your request is received by American Funds Service Company, provided that your request contains all information and legal documentation necessary to process the transaction. For purposes of this “right of reinvestment policy,” automatic transactions (including, for example, automatic purchases, withdrawals and payroll deductions) and ongoing retirement plan contributions are not eligible for investment without a sales charge. You may not reinvest proceeds in the American Funds as described in this paragraph if such proceeds are subject to a purchase block as described under “Frequent trading of fund shares” in this prospectus. This paragraph does not apply to certain rollover investments as described under “Rollovers from retirement plans to IRAs” in this prospectus.

Intermediate Bond Fund of America / Prospectus 28

Contingent deferred sales charge waivers The contingent deferred sales charge on Class A, B and C shares may be waived in the following cases:

permitted exchanges of shares, except if shares acquired by exchange are then redeemed within the period during which a contingent deferred sales charge would apply to the initial shares purchased;

tax-free returns of excess contributions to IRAs;

redemptions due to death or postpurchase disability of the shareholder (this generally excludes accounts registered in the names of trusts and other entities);

for 529 share classes only, redemptions due to a beneficiary’s death, postpurchase disability or receipt of a scholarship (to the extent of the scholarship award);

redemptions due to the complete termination of a trust upon the death of the trustor/grantor or beneficiary, but only if such termination is specifically provided for in the trust document; and

the following types of transactions, if together they do not exceed 12% of the value of an account annually (see the statement of additional information for further details about waivers regarding these types of transactions):

—

redemptions due to receiving required minimum distributions from retirement accounts upon reaching age 70½ (required minimum distributions that continue to be taken by the beneficiary(ies) after the account owner is deceased also qualify for a waiver); and

—

if you have established an automatic withdrawal plan, redemptions through such a plan (including any dividends and/or capital gain distributions taken in cash).

To have your Class A, B or C contingent deferred sales charge waived, you must inform your advisor or American Funds Service Company at the time you redeem shares that you qualify for such a waiver.

Intermediate Bond Fund of America / Prospectus 29

Rollovers from retirement plans to IRAs

Assets from retirement plans may be invested in Class A, C or F shares through an IRA rollover, subject to the other provisions of this prospectus. Class C shares are not available if the assets are being rolled over from investments held in the American Funds Recordkeeper Direct and PlanPremier retirement plan recordkeeping programs.

Rollovers to IRAs from retirement plans that are rolled into Class A shares will be subject to applicable sales charges. The following rollovers to Class A shares will be made without a sales charge:

rollovers to Capital Bank and Trust Company^SMIRAs if the assets were invested in American Funds at the time of distribution;

rollovers to IRAs from 403(b) plans with Capital Bank and Trust Company as custodian; and

rollovers to Capital Bank and Trust Company IRAs from investments held in the American Funds Recordkeeper Direct and PlanPremier retirement plan recordkeeping programs.

IRA rollover assets that roll over without a sales charge as described above will not be subject to a contingent deferred sales charge, and investment dealers will be compensated solely with an annual service fee that begins to accrue immediately. All other rollovers invested in Class A shares, as well as future contributions to the IRA, will be subject to sales charges and to the terms and conditions generally applicable to Class A share investments as described in this prospectus and in the statement of additional information.

Plans of distribution

The fund has plans of distribution, or “12b-1 plans,” for certain share classes under which it may finance activities intended primarily to sell shares, provided that the categories of expenses are approved in advance by the fund’s board of trustees. The plans provide for payments, based on annualized percentages of average daily net assets, of:

Up to:	Share class(es)
0.30%	Class A shares
0.50%	Class 529-A, F-1, 529-F-1 and R-4 shares
0.75%	Class 529-E and R-3 shares
0.85%	Class R-2E shares
1.00%	Class B, 529-B, C, 529-C, R-1 and R-2 shares

For all share classes indicated above, up to .25% may be used to pay service fees to qualified dealers for providing certain shareholder services. The amount remaining for each share class, if any, may be used for distribution expenses.

The 12b-1 fees paid by each applicable share class of the fund, as a percentage of average net assets for the previous fiscal year, are indicated in the Annual Fund Operating Expenses table on page 1 of this prospectus. Since these fees are paid out of the fund’s assets or income on an ongoing basis, over time they may cost you more than paying other types of sales charges or service fees and reduce the return on your investment. The higher fees for Class B and C shares may cost you more over time than paying the initial sales charge for Class A shares.

Intermediate Bond Fund of America / Prospectus 30

Other compensation to dealers

American Funds Distributors, at its expense, provides additional compensation to investment dealers. These payments may be made, at the discretion of American Funds Distributors, to the top 100 dealers (or their affiliates) that have sold shares of the American Funds. A number of factors will be considered in determining payments, including the qualifying dealer’s sales, assets and redemption rates, and the quality of the dealer’s relationship with American Funds Distributors. The payment will be determined using a formula applied consistently to dealers based on the relevant facts and circumstances. The level of payments made to a qualifying firm in any given year will vary and (excluding payments for meetings as described below) will represent the sum of (a) up to .10% of the previous year’s American Funds sales by that dealer and (b) up to .02% of American Funds assets attributable to that dealer, with an adjustment made for the dealer’s relative redemption rate and the quality of the dealer’s relationship with American Funds Distributors. For calendar year 2013, aggregate payments made by American Funds Distributors to dealers were less than .02% of the average assets of the American Funds. Aggregate payments made by American Funds Distributors to dealers may also change from year to year. American Funds Distributors makes these payments to help defray the costs incurred by qualifying dealers in connection with efforts to educate financial advisors about the American Funds so that they can make recommendations and provide services that are suitable and meet shareholder needs. American Funds Distributors will, on an annual basis, determine the advisability of continuing these payments. American Funds Distributors may also pay expenses associated with meetings conducted by selling dealers, advisory platform providers and other intermediaries to facilitate educating financial advisors and shareholders about the American Funds. If investment advisers, distributors or other affiliates of mutual funds pay additional compensation or other incentives in differing amounts, dealer firms and their advisors may have financial incentives for recommending a particular mutual fund over other mutual funds or investments. You should consult with your financial advisor and review carefully any disclosure by your financial advisor’s firm as to compensation received.

Intermediate Bond Fund of America / Prospectus 31

Fund expenses

Note that references to Class A, B, C and F-1 shares in this “Fund expenses” section do not include the corresponding Class 529 shares.

In periods of market volatility, assets of the fund may decline significantly, causing total annual fund operating expenses (as a percentage of the value of your investment) to become higher than the numbers shown in the Annual Fund Operating Expenses table on page 1 of this prospectus.

For all share classes except Class B shares, “Other expenses” items in the Annual Fund Operating Expenses table in this prospectus include fees for administrative services provided by the fund’s investment adviser and its affiliates. Administrative services include, but are not limited to, coordinating, monitoring, assisting and overseeing third parties that provide services to fund shareholders. The fund's investment adviser receives an administrative services fee at the annual rate of .01% of the average daily net assets of the fund attributable to Class A shares and .05% of the average daily net assets of the fund attributable to Class C, F, R and 529 shares for its provision of administrative services.

The “Other expenses” items in the Annual Fund Operating Expenses table also include custodial, legal, transfer agent and subtransfer agent/recordkeeping payments and various other expenses applicable to all share classes.

Intermediate Bond Fund of America / Prospectus 32

Retail investors Subtransfer agent/recordkeeping payments may be made to third parties (including affiliates of the fund’s investment adviser) that provide subtransfer agent, recordkeeping and/or shareholder services with respect to certain shareholder accounts in lieu of the transfer agent providing such services. The amount paid for subtransfer agent/recordkeeping services varies depending on the share class and services provided, and typically ranges from $3 to $19 per account. For Class 529 shares, an expense of up to a maximum of .10% paid to a state or states for oversight and administrative services is included as an “Other expenses” item.

Employer-sponsored retirement plan investors The amount paid for subtransfer agent/ recordkeeping services varies depending on the share class selected and the entity receiving the payments. The table below shows the maximum payments to entities providing these services to retirement plans.

	Payments to affiliated entities	Payments to unaffiliated entities
Class A	0.05% of assets or $12 per participant position¹	0.05% of assets or $12 per participant position¹
Class R-1	0.10% of assets	0.10% of assets
Class R-2	0.15% of assets plus $27 per participant position² or 0.35% of assets³	0.25% of assets
Class R-2E	N/A	0.20% of assets
Class R-3	0.10% of assets plus $12 per participant position² or 0.19% of assets³	0.15% of assets
Class R-4	0.10% of assets	0.10% of assets
Class R-5	0.05% of assets	0.05% of assets
Class R-6	none	none

¹ Payment amount depends on the date services commenced.

² Payment with respect to Recordkeeper Direct program.

³ Payment with respect to PlanPremier program.

Intermediate Bond Fund of America / Prospectus 33

Financial highlights

The Financial Highlights table is intended to help you understand the fund’s results for the past five fiscal years (and for the six months ended February 28, 2014). Certain information reflects financial results for a single share of a particular class. The total returns in the table represent the rate that an investor would have earned or lost on an investment in the fund (assuming reinvestment of all dividends and capital gain distributions). Where indicated, figures in the table reflect the impact, if any, of certain reimbursements/waivers from Capital Research and Management Company. For more information about these reimbursements/waivers, see the fund’s statement of additional information and annual report. The information in the Financial Highlights table (except for information for the six months ended February 28, 2014) has been audited by Deloitte & Touche LLP, whose current report, along with the fund’s financial statements, is included in the statement of additional information, which is available upon request. The information for the six-month period presented has been derived from the fund’s unaudited financial statements and includes all adjustments that management considers necessary for a fair presentation of such information for the period presented.

		Income (loss) from investment operations¹
	Net asset value, beginning of period	Net investment income	Net gains (losses) on securities (both realized and unrealized)	Total from investment operations	Dividends (from net investment income)	Net asset value, end of period	Total return^2,3	Net assets, end of period (in millions)	Ratio of expenses to average net assets before reim- bursements/ waivers	Ratio of expenses to average net assets after reim- bursements/ waivers³	Ratio of net income to average net assets³
Class A:
Six months ended 2/28/2014^4,5	$13.40	$.09	$ .13	$ .22	$(.09)	$13.53	1.64%	$6,222	.60%⁶	.60%⁶	1.31%⁶
Year ended 8/31/2013	13.79	.17	(.37)	(.20)	(.19)	13.40	(1.46)	6,416	.60	.60	1.26
Year ended 8/31/2012	13.66	.24	.15	.39	(.26)	13.79	2.86	6,884	.61	.61	1.76
Year ended 8/31/2011	13.65	.30	.02	.32	(.31)	13.66	2.36	6,436	.60	.60	2.18
Year ended 8/31/2010	13.10	.33	.56	.89	(.34)	13.65	6.91	6,723	.62	.62	2.51
Year ended 8/31/2009	13.02	.45	.09	.54	(.46)	13.10	4.27	5,304	.69	.68	3.46
Class B:
Six months ended 2/28/2014^4,5	13.40	.04	.13	.17	(.04)	13.53	1.26	25	1.36⁶	1.36⁶	.55⁶
Year ended 8/31/2013	13.79	.07	(.37)	(.30)	(.09)	13.40	(2.20)	35	1.35	1.35	.52
Year ended 8/31/2012	13.66	.13	.15	.28	(.15)	13.79	2.10	62	1.35	1.35	1.04
Year ended 8/31/2011	13.65	.19	.02	.21	(.20)	13.66	1.60	96	1.36	1.36	1.44
Year ended 8/31/2010	13.10	.23	.56	.79	(.24)	13.65	6.12	175	1.36	1.36	1.78
Year ended 8/31/2009	13.02	.35	.09	.44	(.36)	13.10	3.51	207	1.42	1.41	2.79
(The Financial Highlights table continues on the following page.)

Intermediate Bond Fund of America / Prospectus 34

		Income (loss) from investment operations¹
	Net asset value, beginning of period	Net investment income	Net gains (losses) on securities (both realized and unrealized)	Total from investment operations	Dividends (from net investment income)	Net asset value, end of period	Total return^2,3	Net assets, end of period (in millions)	Ratio of expenses to average net assets before reim- bursements/ waivers	Ratio of expenses to average net assets after reim- bursements/ waivers³	Ratio of net income to average net assets³
Class C
Six months ended 2/28/2014^4,5	$13.40	$.04	$ .13	$ .17	$(.04)	$13.53	1.24%	$168	1.40%⁶	1.40%⁶	.51%⁶
Year ended 8/31/2013	13.79	.06	(.37)	(.31)	(.08)	13.40	(2.24)	203	1.40	1.40	.47
Year ended 8/31/2012	13.66	.13	.15	.28	(.15)	13.79	2.05	296	1.40	1.40	.98
Year ended 8/31/2011	13.65	.19	.02	.21	(.20)	13.66	1.55	335	1.41	1.41	1.39
Year ended 8/31/2010	13.10	.23	.56	.79	(.24)	13.65	6.07	414	1.41	1.41	1.72
Year ended 8/31/2009	13.02	.35	.09	.44	(.36)	13.10	3.47	342	1.46	1.46	2.69
Class F-1:
Six months ended 2/28/2014^4,5	13.40	.09	.13	.22	(.09)	13.53	1.62	613	.66⁶	.66⁶	1.25⁶
Year ended 8/31/2013	13.79	.17	(.37)	(.20)	(.19)	13.40	(1.49)	574	.64	.64	1.23
Year ended 8/31/2012	13.66	.23	.15	.38	(.25)	13.79	2.80	585	.67	.67	1.70
Year ended 8/31/2011	13.65	.29	.02	.31	(.30)	13.66	2.31	550	.65	.65	2.13
Year ended 8/31/2010	13.10	.33	.56	.89	(.34)	13.65	6.86	573	.67	.67	2.45
Year ended 8/31/2009	13.02	.44	.09	.53	(.45)	13.10	4.24	479	.71	.70	3.49
Class F-2:
Six months ended 2/28/2014^4,5	13.40	.10	.13	.23	(.10)	13.53	1.76	186	.38⁶	.38⁶	1.53⁶
Year ended 8/31/2013	13.79	.20	(.37)	(.17)	(.22)	13.40	(1.24)	172	.39	.39	1.49
Year ended 8/31/2012	13.66	.27	.15	.42	(.29)	13.79	3.13	290	.35	.35	2.01
Year ended 8/31/2011	13.65	.33	.02	.35	(.34)	13.66	2.63	282	.34	.34	2.44
Year ended 8/31/2010	13.10	.37	.56	.93	(.38)	13.65	7.21	256	.34	.34	2.79
Year ended 8/31/2009	13.02	.48	.09	.57	(.49)	13.10	4.54	245	.38	.38	3.23
Class 529-A:
Six months ended 2/28/2014^4,5	13.40	.08	.13	.21	(.08)	13.53	1.59	369	.70⁶	.70⁶	1.21⁶
Year ended 8/31/2013	13.79	.16	(.37)	(.21)	(.18)	13.40	(1.55)	385	.70	.70	1.16
Year ended 8/31/2012	13.66	.22	.15	.37	(.24)	13.79	2.76	398	.70	.70	1.66
Year ended 8/31/2011	13.65	.29	.02	.31	(.30)	13.66	2.29	331	.68	.68	2.11
Year ended 8/31/2010	13.10	.32	.56	.88	(.33)	13.65	6.83	284	.69	.69	2.43
Year ended 8/31/2009	13.02	.44	.09	.53	(.45)	13.10	4.21	200	.74	.73	3.42

Intermediate Bond Fund of America / Prospectus 35

		Income (loss) from investment operations¹
	Net asset value, beginning of period	Net investment income	Net gains (losses) on securities (both realized and unrealized)	Total from investment operations	Dividends (from net investment income)	Net asset value, end of period	Total return^2,3	Net assets, end of period (in millions)	Ratio of expenses to average net assets before reim- bursements/ waivers	Ratio of expenses to average net assets after reim- bursements/ waivers³	Ratio of net income to average net assets³
Class 529-B:
Six months ended 2/28/2014^4,5	$13.40	$.03	$ .13	$ .16	$(.03)	$13.53	1.20%	$ 3	1.49%⁶	1.49%⁶	.42%⁶
Year ended 8/31/2013	13.79	.05	(.37)	(.32)	(.07)	13.40	(2.32)	4	1.48	1.48	.39
Year ended 8/31/2012	13.66	.12	.15	.27	(.14)	13.79	1.96	9	1.48	1.48	.90
Year ended 8/31/2011	13.65	.18	.02	.20	(.19)	13.66	1.48	13	1.47	1.47	1.32
Year ended 8/31/2010	13.10	.22	.56	.78	(.23)	13.65	6.00	24	1.48	1.48	1.65
Year ended 8/31/2009	13.02	.34	.09	.43	(.35)	13.10	3.39	23	1.54	1.53	2.65
Class 529-C:
Six months ended 2/28/2014^4,5	13.40	.03	.13	.16	(.03)	13.53	1.20	79	1.48⁶	1.48⁶	.43⁶
Year ended 8/31/2013	13.79	.05	(.37)	(.32)	(.07)	13.40	(2.31)	87	1.47	1.47	.40
Year ended 8/31/2012	13.66	.12	.15	.27	(.14)	13.79	1.97	104	1.47	1.47	.89
Year ended 8/31/2011	13.65	.18	.02	.20	(.19)	13.66	1.49	92	1.46	1.46	1.32
Year ended 8/31/2010	13.10	.22	.56	.78	(.23)	13.65	6.01	97	1.47	1.47	1.65
Year ended 8/31/2009	13.02	.34	.09	.43	(.35)	13.10	3.40	72	1.53	1.52	2.66
Class 529-E:
Six months ended 2/28/2014^4,5	13.40	.07	.13	.20	(.07)	13.53	1.48	18	.93⁶	.93⁶	.97⁶
Year ended 8/31/2013	13.79	.13	(.37)	(.24)	(.15)	13.40	(1.78)	19	.93	.93	.93
Year ended 8/31/2012	13.66	.19	.15	.34	(.21)	13.79	2.51	20	.94	.94	1.42
Year ended 8/31/2011	13.65	.25	.02	.27	(.26)	13.66	2.00	16	.96	.96	1.83
Year ended 8/31/2010	13.10	.29	.56	.85	(.30)	13.65	6.54	14	.97	.97	2.16
Year ended 8/31/2009	13.02	.40	.09	.49	(.41)	13.10	3.92	11	1.02	1.01	3.14
Class 529-F-1:
Six months ended 2/28/2014^4,5	13.40	.10	.13	.23	(.10)	13.53	1.70	74	.49⁶	.49⁶	1.42⁶
Year ended 8/31/2013	13.79	.19	(.37)	(.18)	(.21)	13.40	(1.33)	76	.47	.47	1.39
Year ended 8/31/2012	13.66	.25	.15	.40	(.27)	13.79	3.00	78	.47	.47	1.89
Year ended 8/31/2011	13.65	.32	.02	.34	(.33)	13.66	2.50	66	.46	.46	2.32
Year ended 8/31/2010	13.10	.35	.56	.91	(.36)	13.65	7.07	54	.47	.47	2.65
Year ended 8/31/2009	13.02	.47	.09	.56	(.48)	13.10	4.44	37	.52	.52	3.63
(The Financial Highlights table continues on the following page.)

Intermediate Bond Fund of America / Prospectus 36

		Income (loss) from investment operations¹
	Net asset value, beginning of period	Net investment income	Net gains (losses) on securities (both realized and unrealized)	Total from investment operations	Dividends (from net investment income)	Net asset value, end of period	Total return^2,3	Net assets, end of period (in millions)	Ratio of expenses to average net assets before reim- bursements/ waivers	Ratio of expenses to average net assets after reim- bursements/ waivers³	Ratio of net income to average net assets³
Class R-1:
Six months ended 2/28/2014^4,5	$13.40	$.04	$ .13	$ .17	$(.04)	$13.53	1.24%	$ 11	1.40%⁶	1.40%⁶	.51%⁶
Year ended 8/31/2013	13.79	.06	(.37)	(.31)	(.08)	13.40	(2.23)	12	1.39	1.39	.48
Year ended 8/31/2012	13.66	.13	.15	.28	(.15)	13.79	2.05	17	1.39	1.39	.97
Year ended 8/31/2011	13.65	.19	.02	.21	(.20)	13.66	1.54	15	1.41	1.41	1.37
Year ended 8/31/2010	13.10	.23	.56	.79	(.24)	13.65	6.06	19	1.42	1.42	1.69
Year ended 8/31/2009	13.02	.35	.09	.44	(.36)	13.10	3.45	10	1.47	1.46	2.65
Class R-2
Six months ended 2/28/2014^4,5	13.40	.04	.13	.17	(.04)	13.53	1.25	134	1.39⁶	1.39⁶	.51⁶
Year ended 8/31/2013	13.79	.07	(.37)	(.30)	(.09)	13.40	(2.20)	142	1.36	1.36	.51
Year ended 8/31/2012	13.66	.13	.15	.28	(.15)	13.79	2.06	164	1.39	1.39	.98
Year ended 8/31/2011	13.65	.19	.02	.21	(.20)	13.66	1.55	161	1.41	1.40	1.38
Year ended 8/31/2010	13.10	.23	.56	.79	(.24)	13.65	6.06	175	1.45	1.42	1.71
Year ended 8/31/2009	13.02	.35	.09	.44	(.36)	13.10	3.47	146	1.53	1.45	2.72
Class R-3:
Six months ended 2/28/2014^4,5	13.40	.07	.13	.20	(.07)	13.53	1.47	150	.95⁶	.95⁶	.96⁶
Year ended 8/31/2013	13.79	.12	(.37)	(.25)	(.14)	13.40	(1.79)	161	.95	.95	.92
Year ended 8/31/2012	13.66	.19	.15	.34	(.21)	13.79	2.49	175	.96	.96	1.41
Year ended 8/31/2011	13.65	.25	.02	.27	(.26)	13.66	1.99	169	.97	.97	1.81
Year ended 8/31/2010	13.10	.28	.56	.84	(.29)	13.65	6.52	172	.99	.99	2.14
Year ended 8/31/2009	13.02	.40	.09	.49	(.41)	13.10	3.90	153	1.04	1.03	3.14
Class R-4:
Six months ended 2/28/2014^4,5	13.40	.09	.13	.22	(.09)	13.53	1.63	119	.63⁶	.63⁶	1.28⁶
Year ended 8/31/2013	13.79	.17	(.37)	(.20)	(.19)	13.40	(1.48)	116	.63	.63	1.24
Year ended 8/31/2012	13.66	.23	.15	.38	(.25)	13.79	2.83	135	.63	.63	1.74
Year ended 8/31/2011	13.65	.29	.02	.31	(.30)	13.66	2.32	120	.65	.65	2.14
Year ended 8/31/2010	13.10	.33	.56	.89	(.34)	13.65	6.87	121	.65	.65	2.46
Year ended 8/31/2009	13.02	.44	.09	.53	(.45)	13.10	4.25	79	.70	.69	3.47

Intermediate Bond Fund of America / Prospectus 37

		Income (loss) from investment operations¹
	Net asset value, beginning of period	Net investment income	Net gains (losses) on securities (both realized and unrealized)	Total from investment operations	Dividends (from net investment income)	Net asset value, end of period	Total return^2,3	Net assets, end of period (in millions)	Ratio of expenses to average net assets before reim- bursements/ waivers	Ratio of expenses to average net assets after reim- bursements/ waivers³	Ratio of net income to average net assets³
Class R-5
Six months ended 2/28/2014^4,5	$13.40	$.11	$ .13	$ .24	$(.11)	$13.53	1.78%	$ 43	.33%⁶	.33%⁶	1.58%⁶
Year ended 8/31/2013	13.79	.21	(.37)	(.16)	(.23)	13.40	(1.18)	42	.33	.33	1.54
Year ended 8/31/2012	13.66	.27	.15	.42	(.29)	13.79	3.13	50	.34	.34	2.03
Year ended 8/31/2011	13.65	.33	.02	.35	(.34)	13.66	2.62	47	.35	.35	2.44
Year ended 8/31/2010	13.10	.37	.56	.93	(.38)	13.65	7.18	45	.36	.36	2.76
Year ended 8/31/2009	13.02	.48	.09	.57	(.49)	13.10	4.56	35	.39	.39	3.76
Class R-6:
Six months ended 2/28/2014^4,5	13.40	.11	.13	.24	(.11)	13.53	1.81	1,076	.28⁶	.28⁶	1.63⁶
Year ended 8/31/2013	13.79	.22	(.37)	(.15)	(.24)	13.40	(1.13)	862	.27	.27	1.58
Year ended 8/31/2012	13.66	.28	.15	.43	(.30)	13.79	3.19	447	.28	.28	2.08
Year ended 8/31/2011	13.65	.34	.02	.36	(.35)	13.66	2.68	339	.30	.30	2.49
Year ended 8/31/2010	13.10	.37	.56	.93	(.38)	13.65	7.24	315	.31	.31	2.77
Period from 5/1/2009 to 8/31/2009^4,7	12.79	.14	.31	.45	(.14)	13.10	3.56	21	.12	.12	1.08

	Six months ended February 28,	Year ended August 31
	2014^4,5	2013	2012	2011	2010	2009
Portfolio turnover rate for all share classes	83%	199%	146%	80%	43%	87%

Based on average shares outstanding.

Total returns exclude any applicable sales charges, including contingent deferred sales charges.

This column reflects the impact, if any, of certain reimbursements/waivers from Capital Research and Management Company. During one of the periods shown, Capital Research and Management Company reduced fees for investment advisory services. In addition, during some of the periods shown, Capital Research and Management Company paid a portion of the fund’s transfer agent fees for certain retirement plan share classes.

⁴

Based on operations for the period shown and, accordingly, is not representative of a full year.

⁵

Unaudited.

⁶

Annualized.

⁷

Class R-6 shares were offered beginning May 1, 2009.

Intermediate Bond Fund of America / Prospectus 38


	For shareholder services	American Funds Service Company (800) 421-4225
	For retirement plan services	Call your employer or plan administrator
	For 529 plans	American Funds Service Company (800) 421-4225, ext. 529
	For 24-hour information	American FundsLine (800) 325-3590 americanfunds.com For Class R share information, visit AmericanFundsRetirement.com
	Telephone calls you have with American Funds may be monitored or recorded for quality assurance, verification and recordkeeping purposes. By speaking to American Funds on the telephone, you consent to such monitoring and recording.

Multiple translations This prospectus may be translated into other languages. If there is any inconsistency or ambiguity, the English text will prevail.

Annual/Semi-annual report to shareholders The shareholder reports contain additional information about the fund, including financial statements, investment results, portfolio holdings, a discussion of market conditions and the fund’s investment strategies, and the independent registered public accounting firm’s report (in the annual report).

Program description The CollegeAmerica® 529 program description contains additional information about the policies and services related to 529 plan accounts.

Statement of additional information (SAI) and codes of ethics The current SAI, as amended from time to time, contains more detailed information about the fund, including the fund’s financial statements, and is incorporated by reference into this prospectus. This means that the current SAI, for legal purposes, is part of this prospectus. The codes of ethics describe the personal investing policies adopted by the fund, the fund’s investment adviser and its affiliated companies.

The codes of ethics and current SAI are on file with the U.S. Securities and Exchange Commission (SEC). These and other related materials about the fund are available for review or to be copied at the SEC’s Public Reference Room in Washington, D.C., (202) 551-8090, on the EDGAR database on the SEC’s website at sec.gov or, after payment of a duplicating fee, via email request to publicinfo@sec.gov or by writing to the SEC’s Public Reference Section, 100 F Street, NE, Washington, D.C. 20549-1520. The codes of ethics, current SAI and shareholder reports are also available, free of charge, on our website, americanfunds.com.

E-delivery and household mailings Each year you are automatically sent an updated summary prospectus and annual and semi-annual reports for the fund. You may also occasionally receive proxy statements for the fund. In order to reduce the volume of mail you receive, when possible, only one copy of these documents will be sent to shareholders who are part of the same family and share the same household address. You may elect to receive these documents electronically in lieu of paper form by enrolling in e-delivery on our website, americanfunds.com.

If you would like to opt out of household-based mailings or receive a complimentary copy of the current SAI, codes of ethics, annual/semi-annual report to shareholders or applicable program description, please call American Funds Service Company at (800) 421-4225 or write to the secretary of the fund at 333 South Hope Street, Los Angeles, California 90071-1406.

Securities Investor Protection Corporation (SIPC) Shareholders may obtain information about SIPC® on its website at sipc.org or by calling (202) 371-8300.

MFGEPRX-023-0814P Litho in USA CGD/CF/8011

Investment Company File No. 811-05446

THE FUND MAKES AVAILABLE A SPANISH TRANSLATION OF THE ABOVE PROSPECTUS IN CONNECTION WITH THE PUBLIC OFFERING AND SALE OF ITS SHARES. THE ENGLISH LANGUAGE PROSPECTUS ABOVE IS A FAIR AND ACCURATE REPRESENTATION OF THE SPANISH EQUIVALENT.

	SECRETARY
/s/	COURTNEY R. TAYLOR
	COURTNEY R. TAYLOR

Intermediate Bond Fund of America^®

Part B
Statement of Additional Information

August 29, 2014

This document is not a prospectus but should be read in conjunction with the current prospectus of Intermediate Bond Fund of America (the “fund”) dated August 29, 2014. You may obtain a prospectus from your financial advisor, by calling American Funds Service Company® at (800) 421-4225 or by writing to the fund at the following address:

Intermediate Bond Fund of America
Attention: Secretary

333 South Hope Street
Los Angeles, California 90071

Certain privileges and/or services described below may not be available to all shareholders (including shareholders who purchase shares at net asset value through eligible retirement plans) depending on the shareholder’s investment dealer or retirement plan recordkeeper. Please see your financial advisor, investment dealer, plan recordkeeper or employer for more information.

Class A	AIBAX	Class 529-A	CBOAX	Class R-1	RBOAX
Class B	IBFBX	Class 529-B	CBOBX	Class R-2	RBOBX
Class C	IBFCX	Class 529-C	CBOCX	Class R-2E	REBBX
Class F-1	IBFFX	Class 529-E	CBOEX	Class R-3	RBOCX
Class F-2	IBAFX	Class 529-F-1	CBOFX	Class R-4	RBOEX
				Class R-5	RBOFX
				Class R-6	RBOGX

Table of Contents

Item	Page no.
Certain investment limitations and guidelines	2
Description of certain securities and investment techniques	3
Fund policies	11
Management of the fund	13
Execution of portfolio transactions	40
Disclosure of portfolio holdings	43
Price of shares	45
Taxes and distributions	48
Purchase and exchange of shares	51
Sales charges	56
Sales charge reductions and waivers	59
Selling shares	63
Shareholder account services and privileges	64
General information	67
Appendix	75
Investment portfolio Financial statements

Intermediate Bond Fund of America - Page 1

Certain investment limitations and guidelines

The following limitations and guidelines are considered at the time of purchase, under normal circumstances, and are based on a percentage of the fund’s net assets unless otherwise noted. This summary is not intended to reflect all of the fund’s investment limitations.

Debt securities

The fund will invest at least 80% of its assets in bonds (bonds include any debt instrument and money market instruments).

The fund will primarily invest in debt securities rated A– or better or A3 or better by Nationally Recognized Statistical Rating Organizations designated by the fund’s investment adviser or unrated but determined to be of equivalent quality by the fund’s investment adviser. The fund currently intends to look to the ratings from Moody’s Investors Service, Standard & Poor’s Corporation and Fitch Ratings. If rating agencies differ, securities will be considered to have received the highest of these ratings, consistent with the fund's investment policies.

The fund may invest up to 10% of its assets in bond and other securities rated in the BBB or Baa rating category by Nationally Recognized Statistical Rating Organizations designated by the fund’s investment adviser or in unrated securities determined to be of equivalent quality by the fund’s investment adviser.

Maturity

The fund’s dollar-weighted average maturity will be no less than three years and no longer than five years. The maturity of a debt instrument is normally its ultimate maturity date unless it is likely that a maturity shortening device (such as a call, put, refunding or redemption provision) will cause the debt instrument to be repaid.

* * * * * *

The fund may experience difficulty liquidating certain portfolio securities during significant market declines or periods of heavy redemptions.

Intermediate Bond Fund of America - Page 2

Description of certain securities and investment techniques

The descriptions below are intended to supplement the material in the prospectus under “Investment objective, strategies and risks.”

Debt securities — Debt securities, also known as “fixed-income securities,” are used by issuers to borrow money. Bonds, notes, debentures, asset-backed securities (including those backed by mortgages), and loan participations and assignments are common types of debt securities. Generally, issuers pay investors periodic interest and repay the amount borrowed either periodically during the life of the security and/or at maturity. Some debt securities, such as zero coupon bonds, do not pay current interest, but are purchased at a discount from their face values and their values accrete over time to face value at maturity. Some debt securities bear interest at rates that are not fixed, but that vary with changes in specified market rates or indices. The market prices of debt securities fluctuate depending on such factors as interest rates, credit quality and maturity. In general, market prices of debt securities decline when interest rates rise and increase when interest rates fall. These fluctuations will generally be greater for longer-term debt securities than for shorter-term debt securities.

Certain additional risk factors relating to debt securities are discussed below:

Sensitivity to interest rate and economic changes — Debt securities may be sensitive to economic changes, political and corporate developments, and interest rate changes. In addition, during an economic downturn or a period of rising interest rates, issuers that are highly leveraged may experience increased financial stress that could adversely affect their ability to meet projected business goals, to obtain additional financing and to service their principal and interest payment obligations. Periods of economic change and uncertainty also can be expected to result in increased volatility of market prices and yields of certain debt securities and derivative instruments. For example, during the financial crisis of 2007-2009, the Federal Reserve implemented a number of economic policies that impacted, and may continue to impact, interest rates and the market. These policies, as well as potential actions by governmental entities both in and outside of the U.S., may expose fixed-income markets to heightened volatility and may reduce liquidity for certain investments, which could cause the value of the fund’s portfolio to decline. Prices of debt securities can also be affected by financial contracts held by the issuer or third parties (such as derivatives) relating to the security or other assets or indices.

Payment expectations — Debt securities may contain redemption or call provisions. If an issuer exercises these provisions in a lower interest rate market, the fund would have to replace the security with a lower yielding security, resulting in decreased income to investors. If the issuer of a debt security defaults on its obligations to pay interest or principal or is the subject of bankruptcy proceedings, the fund may incur losses or expenses in seeking recovery of amounts owed to it.

Liquidity and valuation — There may be little trading in the secondary market for particular debt securities, which may affect adversely the fund’s ability to value accurately or dispose of such debt securities. Adverse publicity and investor perceptions, whether or not based on fundamental analysis, may decrease the value and/or liquidity of debt securities.

Credit ratings for debt securities provided by rating agencies reflect an evaluation of the safety of principal and interest payments, not market value risk. The rating of an issuer is a rating agency’s view of past and future potential developments related to the issuer and may not necessarily reflect actual outcomes. There can be a lag between the time of developments relating to an issuer and the time a rating is assigned and updated. The investment adviser considers these ratings of securities as one of many criteria in making its investment decisions.

Intermediate Bond Fund of America - Page 3

Bond rating agencies may assign modifiers (such as +/–) to ratings categories to signify the relative position of a credit within the rating category. Investment policies that are based on ratings categories should be read to include any security within that category, without giving consideration to the modifier except where otherwise provided. See the Appendix to this statement of additional information for more information about credit ratings.

Obligations backed by the “full faith and credit” of the U.S. government — U.S. government obligations include the following types of securities:

U.S. Treasury securities — U.S. Treasury securities include direct obligations of the U.S. Treasury, such as Treasury bills, notes and bonds. For these securities, the payment of principal and interest is unconditionally guaranteed by the U.S. government, and thus they are of high credit quality. Such securities are subject to variations in market value due to fluctuations in interest rates and in government policies, but, if held to maturity, are expected to be paid in full (either at maturity or thereafter).

Federal agency securities — The securities of certain U.S. government agencies and government-sponsored entities are guaranteed as to the timely payment of principal and interest by the full faith and credit of the U.S. government. Such agencies and entities include The Federal Financing Bank (“FFB”), the Government National Mortgage Association (“Ginnie Mae”), the Veterans Administration (“VA”), the Federal Housing Administration (“FHA”), the Export-Import Bank (“Exim Bank”), the Overseas Private Investment Corporation (“OPIC”), the Commodity Credit Corporation (“CCC”) and the Small Business Administration (“SBA”).

Other federal agency obligations — Additional federal agency securities are neither direct obligations of, nor guaranteed by, the U.S. government. These obligations include securities issued by certain U.S. government agencies and government-sponsored entities. However, they generally involve some form of federal sponsorship: some operate under a government charter; some are backed by specific types of collateral; some are supported by the issuer’s right to borrow from the Treasury; and others are supported only by the credit of the issuing government agency or entity. These agencies and entities include, but are not limited to: Federal Home Loan Bank, Federal Home Loan Mortgage Corporation (“Freddie Mac”), Federal National Mortgage Association (“Fannie Mae”), Tennessee Valley Authority and Federal Farm Credit Bank System.

On September 7, 2008, Freddie Mac and Fannie Mae were placed into conservatorship by their new regulator, the Federal Housing Finance Agency (“FHFA”). Simultaneously, the U.S. Treasury made a commitment of indefinite duration to maintain the positive net worth of both firms. As conservator, the FHFA has the authority to repudiate any contract either firm has entered into prior to FHFA’s appointment as conservator (or receiver should either firm go into default) if the FHFA, in its sole discretion determines that performance of the contract is burdensome and repudiation would promote the orderly administration of Fannie Mae’s or Freddie Mac’s affairs. While the FHFA has indicated that it does not intend to repudiate the guaranty obligations of either entity, doing so could adversely affect holders of their mortgage-backed securities. For example, if a contract were repudiated, the liability for any direct compensatory damages would accrue to the entity’s conservatorship estate and could only be satisfied to the extent the estate had available assets. As a result, if interest payments on Fannie Mae or Freddie Mac mortgage-backed securities held by the fund were reduced because underlying borrowers failed to make payments or such payments were not advanced by a loan servicer, the fund’s only recourse might be against the conservatorship estate, which might not have sufficient assets to offset any shortfalls.

The FHFA, in its capacity as conservator, has the power to transfer or sell any asset or liability of Fannie Mae or Freddie Mac. The FHFA has indicated it has no current intention to do this; however, should it do so a holder of a Fannie Mae or Freddie Mac mortgage-backed security would have to rely on

Intermediate Bond Fund of America - Page 4

another party for satisfaction of the guaranty obligations and would be exposed to the credit risk of that party.

Certain rights provided to holders of mortgage-backed securities issued by Fannie Mae or Freddie Mac under their operative documents may not be enforceable against FHFA, or enforcement may be delayed during the course of the conservatorship or any future receivership. For example, the operative documents may provide that upon the occurrence of an event of default by Fannie Mae or Freddie Mac, holders of a requisite percentage of the mortgage-backed security may replace the entity as trustee. However, under the Federal Housing Finance Regulatory Reform Act of 2008, holders may not enforce this right if the event of default arises solely because a conservator or receiver has been appointed.

Pass-through securities —The fund may invest in various debt obligations backed by pools of mortgages or other assets including, but not limited to, loans on single family residences, home equity loans, mortgages on commercial buildings, credit card receivables and leases on airplanes or other equipment. Principal and interest payments made on the underlying asset pools backing these obligations are typically passed through to investors, net of any fees paid to any insurer or any guarantor of the securities. Pass-through securities may have either fixed or adjustable coupons. These securities include:

Mortgage-backed securities — These securities may be issued by U.S. government agencies and government-sponsored entities, such as Ginnie Mae, Fannie Mae and Freddie Mac, and by private entities. The payment of interest and principal on mortgage-backed obligations issued by U.S. government agencies may be guaranteed by the full faith and credit of the U.S. government (in the case of Ginnie Mae), or may be guaranteed by the issuer (in the case of Fannie Mae and Freddie Mac). However, these guarantees do not apply to the market prices and yields of these securities, which vary with changes in interest rates.

Mortgage-backed securities issued by private entities are structured similarly to those issued by U.S. government agencies. However, these securities and the underlying mortgages are not guaranteed by any government agencies and the underlying mortgages are not subject to the same underwriting requirements. These securities generally are structured with one or more types of credit enhancements such as insurance or letters of credit issued by private companies. Borrowers on the underlying mortgages are usually permitted to prepay their underlying mortgages. Prepayments can alter the effective maturity of these instruments. In addition, delinquencies, losses or defaults by borrowers can adversely affect the prices and volatility of these securities. Such delinquencies and losses can be exacerbated by declining or flattening housing and property values. This, along with other outside pressures, such as bankruptcies and financial difficulties experienced by mortgage loan originators, decreased investor demand for mortgage loans and mortgage-related securities and increased investor demand for yield, can adversely affect the value and liquidity of mortgage-backed securities.

Collateralized mortgage obligations (CMOs) — CMOs are also backed by a pool of mortgages or mortgage loans, which are divided into two or more separate bond issues. CMOs issued by U.S. government agencies are backed by agency mortgages, while privately issued CMOs may be backed by either government agency mortgages or private mortgages. Payments of principal and interest are passed through to each bond issue at varying schedules resulting in bonds with different coupons, effective maturities and sensitivities to interest rates. Some CMOs may be structured in a way that when interest rates change, the impact of changing prepayment rates on the effective maturities of certain issues of these securities is magnified. CMOs may be less liquid or may exhibit greater price volatility than other types of mortgage or asset-backed securities.

Intermediate Bond Fund of America - Page 5

Commercial mortgage-backed securities — These securities are backed by mortgages on commercial property, such as hotels, office buildings, retail stores, hospitals and other commercial buildings. These securities may have a lower prepayment uncertainty than other mortgage-related securities because commercial mortgage loans generally prohibit or impose penalties on prepayments of principal. In addition, commercial mortgage-related securities often are structured with some form of credit enhancement to protect against potential losses on the underlying mortgage loans. Many of the risks of investing in commercial mortgage-backed securities reflect the risks of investing in the real estate securing the underlying mortgage loans, including the effects of local and other economic conditions on real estate markets, the ability of tenants to make rental payments and the ability of a property to attract and retain tenants. Commercial mortgage-backed securities may be less liquid or exhibit greater price volatility than other types of mortgage or asset-backed securities and may be more difficult to value.

Asset-backed securities — These securities are backed by other assets such as credit card, automobile or consumer loan receivables, retail installment loans or participations in pools of leases. Credit support for these securities may be based on the underlying assets and/or provided through credit enhancements by a third party. The values of these securities are sensitive to changes in the credit quality of the underlying collateral, the credit strength of the credit enhancement, changes in interest rates and at times the financial condition of the issuer. Obligors of the underlying assets also may make prepayments that can change effective maturities of the asset-backed securities. These securities may be less liquid and more difficult to value than other securities.

Inflation linked bonds — The fund may invest in inflation linked bonds issued by governments, their agencies or instrumentalities and corporations.

The principal amount of an inflation linked bond is adjusted in response to changes in the level of an inflation index, such as the Consumer Price Index for Urban Consumers (“CPURNSA”). If the index measuring inflation falls, the principal value or coupon of these securities will be adjusted downward. Consequently, the interest payable on these securities will be reduced. Also, if the principal value of these securities is adjusted according to the rate of inflation, the adjusted principal value repaid at maturity may be less than the original principal. In the case of U.S. Treasury Inflation-Protected Securities (“TIPS”), currently the only inflation linked security that is issued by the U.S Treasury, the principal amounts are adjusted daily based upon changes in the rate of inflation (as currently represented by the non-seasonally adjusted CPURNSA, calculated with a three-month lag). TIPS may pay interest semi-annually, equal to a fixed percentage of the inflation-adjusted principal amount. The interest rate on these bonds is fixed at issuance, but over the life of the bond, this interest may be paid on an increasing or decreasing principal amount that has been adjusted for inflation. The current market value of TIPS is not guaranteed and will fluctuate. However, the U.S. government guarantees that, at maturity, principal will be repaid at the higher of the original face value of the security (in the event of deflation) or the inflation adjusted value.

Other non-U.S. sovereign governments also issue inflation linked securities that are tied to their own local consumer price index and that offer similar deflationary protection. In certain of these non-U.S. jurisdictions, the repayment of the original bond principal upon the maturity of an inflation linked bond is not guaranteed, allowing for the amount of the bond repaid at maturity to be less than par. Corporations also periodically issue inflation linked securities tied to CPURNSA or similar inflationary indexes. While TIPS and non-U.S. sovereign inflation linked securities are currently the largest part of the inflation linked market, the fund may invest in corporate inflation linked securities.

The value of inflation protected securities is expected to change in response to the changes in real interest rates. Real interest rates, in turn, are tied to the relationship between nominal interest rates and the rate of inflation. If inflation were to rise at a faster rate than nominal interest rates, real interest rates

Intermediate Bond Fund of America - Page 6

would decline, leading to an increase in value of the inflation protected securities. In contrast, if nominal interest rates were to increase at a faster rate than inflation, real interest rates might rise, leading to a decrease in value of inflation protected securities. There can be no assurance, however, that the value of inflation protected securities will be directly correlated to the changes in interest rates. If interest rates rise due to reasons other than inflation, investors in these securities may not be protected to the extent that the increase is not reflected in the security’s inflation measure.

The interest rate for inflation linked bonds is fixed at issuance as a percentage of this adjustable principal. Accordingly, the actual interest income may both rise and fall as the principal amount of the bonds adjusts in response to movements of the consumer price index. For example, typically interest income would rise during a period of inflation and fall during a period of deflation.

The market for inflation protected securities may be less developed or liquid, and more volatile, than certain other securities markets. There is a limited number of inflation protected securities currently available for the fund to purchase, making the market less liquid and more volatile than the U.S. Treasury and agency markets.

Forward commitment, when issued and delayed delivery transactions — The fund may enter into commitments to purchase or sell securities at a future date. When the fund agrees to purchase such securities, it assumes the risk of any decline in value of the security from the date of the agreement. If the other party to such a transaction fails to deliver or pay for the securities, the fund could miss a favorable price or yield opportunity, or could experience a loss.

The fund will not use these transactions for the purpose of leveraging and will segregate liquid assets that will be marked to market daily in an amount sufficient to meet its payment obligations in these transactions. Although these transactions will not be entered into for leveraging purposes, to the extent the fund’s aggregate commitments in connection with these transactions exceed its segregated assets, the fund temporarily could be in a leveraged position (because it may have an amount greater than its net assets subject to market risk). Should market values of the fund’s portfolio securities decline while the fund is in a leveraged position, greater depreciation of its net assets would likely occur than if it were not in such a position. The fund will not borrow money to settle these transactions and, therefore, will liquidate other portfolio securities in advance of settlement if necessary to generate additional cash to meet its obligations. After a transaction is entered into, the fund may still dispose of or renegotiate the transaction. Additionally, prior to receiving delivery of securities as part of a transaction, the fund may sell such securities.

The fund may also enter into “roll” transactions. A “roll” transaction involves the sale of mortgage-backed or other securities together with a commitment to purchase similar, but not identical, securities at a later date. The fund assumes the risk of price and yield fluctuations during the time of the commitment. The fund will segregate liquid assets that will be marked to market daily in an amount sufficient to meet its payment obligations under “roll” transactions.

Repurchase agreements — The fund may enter into repurchase agreements under which the fund buys a security and obtains a simultaneous commitment from the seller to repurchase the security at a specified time and price. Because the security purchased constitutes collateral for the repurchase obligation, a repurchase agreement may be considered a loan by the fund that is collateralized by the security purchased. Repurchase agreements permit the fund to maintain liquidity and earn income over periods of time as short as overnight. The seller must maintain with the fund’s custodian collateral equal to at least 100% of the repurchase price, including accrued interest, as monitored daily by the investment adviser. The fund will only enter into repurchase agreements involving securities in which it could otherwise invest and with selected banks and securities dealers whose financial condition is monitored by the investment adviser. If the seller under the repurchase agreement defaults, the fund may incur a loss if the value of the collateral securing the repurchase agreement has declined and may

Intermediate Bond Fund of America - Page 7

incur disposition costs in connection with liquidating the collateral. If bankruptcy proceedings are commenced with respect to the seller, realization of the collateral by the fund may be delayed or limited.

Reverse repurchase agreements — The fund may enter into reverse repurchase agreements, or the other side of a repurchase agreement, under which the fund sells a security and makes a simultaneous commitment to the buyer to repurchase the security at a specified time and price. A reverse repurchase agreement may be considered the economic equivalent of borrowing by the fund. Reverse repurchase agreements permit the fund to maintain liquidity and earn income over periods of time as short as overnight. The seller must maintain with the fund’s custodian collateral equal to at least 100% of the repurchase price, including accrued interest, as monitored daily by the investment adviser. The fund will only enter into reverse repurchase agreements involving securities in which it can invest and with selected banks and securities dealers whose financial condition is monitored by the investment adviser. If the buyer under the reverse repurchase agreement defaults, the fund may incur a loss if the value of the security underlying the agreement has declined during the period prior to the fund being able to obtain the securities and may incur costs in connection with its attempt to obtain the security. If bankruptcy proceedings are commenced with respect to the buyer, realization of the security by the fund may be delayed or limited.

Interest rate swaps — The fund may enter into interest rate swaps in order to manage the interest rate sensitivity of the fund by increasing or decreasing the duration of the fund or a portion of the fund’s portfolio. An interest rate swap is an agreement between two parties to exchange or swap payments based on changes in an interest rate or rates. Typically, one interest rate is fixed and the other rate changes based on changes in a designated interest rate benchmark such as the London Interbank Offered Rate (LIBOR), prime rate or other benchmark. Interest rate swaps generally do not involve the delivery of securities or other principal amounts. Rather, cash payments are exchanged by the parties based on the application of the designated interest rates to a notional amount, which is the predetermined dollar principal of the trade upon which payment obligations are computed. Accordingly, the fund’s current obligation or right under the swap agreement is generally equal to the net amount to be paid or received under the swap agreement based on the relative value of the position held by each party. The fund will generally segregate assets with a daily value at least equal to the excess, if any, of the fund’s accrued obligations under the swap agreement over the accrued amount the fund is entitled to receive under the agreement.

The use of interest rate swaps involves certain risks, including losses if interest rate changes are not correctly anticipated by the fund’s investment adviser. To the extent the fund enters into bilaterally negotiated swap transactions, the fund will enter into swap agreements only with counterparties that meet certain credit standards; however, if the counterparty’s creditworthiness deteriorates rapidly and the counterparty defaults on its obligations under the swap agreement or declares bankruptcy, the fund may lose any amount it expected to receive from the counterparty. Certain interest rate swap transactions are currently subject to mandatory central clearing or may be eligible for voluntary central clearing. Because clearing interposes a central clearinghouse as the ultimate counterparty to each participant’s swap, central clearing is intended to decrease (but not eliminate) counterparty risk relative to uncleared bilateral swaps. Additionally, the term of an interest rate swap can be days, months or years and, as a result, certain swaps may be less liquid than others.

Restricted or illiquid securities — The fund may purchase securities subject to restrictions on resale. Restricted securities may only be sold pursuant to an exemption from registration under the Securities Act of 1933, as amended (the “1933 Act”), or in a registered public offering. Where registration is required, the holder of a registered security may be obligated to pay all or part of the registration expense and a considerable period may elapse between the time it decides to seek registration and the time it may be permitted to sell a security under an effective registration statement. Difficulty in selling such securities may result in a loss to the fund or cause it to incur additional administrative costs.

Intermediate Bond Fund of America - Page 8

Securities (including restricted securities) not actively traded will be considered illiquid unless they have been specifically determined to be liquid under procedures adopted by the fund’s board of trustees, taking into account factors such as the frequency and volume of trading, the commitment of dealers to make markets and the availability of qualified investors, all of which can change from time to time. The fund may incur certain additional costs in disposing of illiquid securities.

Investing outside the U.S. — Investing outside the United States involves special risks, caused by, among other things: fluctuating local currency values; different accounting, auditing, financial reporting, disclosure, and regulatory and legal standards and practices; changing local and regional economic, political, and social conditions; expropriation or confiscatory taxation and greater market volatility.

The risks described above may be heightened in connection with investments in emerging markets. Although there is no universally accepted definition, the investment adviser generally considers emerging markets to refer to the securities markets of countries in the earlier stages of their industrialization cycle with a low per capita gross domestic product (“GDP”) and a low market capitalization to GDP ratio relative to those in the United States and the European Union and would include markets commonly referred to as “frontier markets.” Historically, emerging markets have been more volatile than the markets of developed countries. The fund may invest in securities of issuers in developing and emerging countries only to a limited extent.

In determining the domicile of an issuer, the fund’s investment adviser will consider the domicile determination of a leading provider of global indexes, such as Morgan Stanley Capital International, and may also take into account such factors as where the company’s securities are listed and where the company is legally organized, maintains principal corporate offices and/or conducts its principal operations.

Cash and cash equivalents — The fund may hold cash or invest in cash equivalents. Cash equivalents include (a) commercial paper (for example, short-term notes with maturities typically up to 12 months in length issued by corporations, governmental bodies or bank/corporation sponsored conduits (asset-backed commercial paper)); (b) short-term bank obligations (for example, certificates of deposit, bankers’ acceptances (time drafts on a commercial bank where the bank accepts an irrevocable obligation to pay at maturity)) or bank notes; (c) savings association and savings bank obligations (for example, bank notes and certificates of deposit issued by savings banks or savings associations); (d) securities of the U.S. government, its agencies or instrumentalities that mature, or that may be redeemed, in one year or less; and (e) corporate bonds and notes that mature, or that may be redeemed, in one year or less.

Variable and floating rate obligations — The interest rates payable on certain securities in which the fund may invest may not be fixed but may fluctuate based upon changes in market rates or credit ratings. Variable and floating rate obligations bear coupon rates that are adjusted at designated intervals, based on the then current market rates of interest or credit ratings. The rate adjustment features tend to limit the extent to which the market value of the obligations will fluctuate.

Adjustment of maturities — The investment adviser seeks to anticipate movements in interest rates and may adjust the maturity distribution of the portfolio accordingly, keeping in mind the fund’s objectives.

The fund does not currently intend to engage in this investment practice over the next 12 months.

* * * * * *

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Portfolio turnover — Portfolio changes will be made without regard to the length of time particular investments may have been held. Short-term trading profits are not the fund’s objective, and changes in its investments are generally accomplished gradually, though short-term transactions may occasionally be made. High portfolio turnover may involve correspondingly greater transaction costs in the form of dealer spreads or brokerage commissions. It may also result in the realization of net capital gains, which are taxable when distributed to shareholders, unless the shareholder is exempt from taxation or his or her account is tax-favored.

Fixed-income securities are generally traded on a net basis and usually neither brokerage commissions nor transfer taxes are involved. Transaction costs are usually reflected in the spread between the bid and asked price. Certain investments, such as to be announced contracts and mortgage dollar rolls may increase a fund’s portfolio turnover rate.

The fund’s portfolio turnover rates for the fiscal years ended August 31, 2013 and 2012 were 199% and 146%, respectively. The increase in turnover was due to increased investments in to be announced contracts during the period. The portfolio turnover rate would equal 100% if each security in a fund’s portfolio were replaced once per year. See “Financial highlights” in the prospectus for the fund’s annual portfolio turnover rate for each of the last five fiscal years.

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Fund policies

All percentage limitations in the following fund policies are considered at the time securities are purchased and are based on the fund’s net assets unless otherwise indicated. None of the following policies involving a maximum percentage of assets will be considered violated unless the excess occurs immediately after, and is caused by, an acquisition by the fund. In managing the fund, the fund’s investment adviser may apply more restrictive policies than those listed below.

Fundamental policies — The fund has adopted the following policies, which may not be changed without approval by holders of a majority of its outstanding shares. Such majority is currently defined in the Investment Company Act of 1940, as amended (the “1940 Act”), as the vote of the lesser of (a) 67% or more of the voting securities present at a shareholder meeting, if the holders of more than 50% of the outstanding voting securities are present in person or by proxy, or (b) more than 50% of the outstanding voting securities.

1. Except as permitted by (i) the 1940 Act and the rules and regulations thereunder, or other successor law governing the regulation of registered investment companies, or interpretations or modifications thereof by the U.S. Securities and Exchange Commission (“SEC”), SEC staff or other authority of competent jurisdiction, or (ii) exemptive or other relief or permission from the SEC, SEC staff or other authority of competent jurisdiction, the fund may not:

Borrow money;

Issue senior securities;

Underwrite the securities of other issuers;

Purchase or sell real estate or commodities;

Make loans; or

Purchase the securities of any issuer if, as a result of such purchase, the fund’s investments would be concentrated in any particular industry.

2. The fund may not invest in companies for the purpose of exercising control or management.

Nonfundamental policies — The following policy may be changed without shareholder approval:

The fund may not acquire securities of open-end investment companies or unit investment trusts registered under the 1940 Act in reliance on Sections 12(d)(1)(F) or 12(d)(1)(G) of the 1940 Act.

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Additional information about the fund’s policies — The information below is not part of the fund’s fundamental or nonfundamental policies. This information is intended to provide a summary of what is currently required or permitted by the 1940 Act and the rules and regulations thereunder, or by the interpretive guidance thereof by the SEC or SEC staff, for particular fundamental policies of the fund. Information is also provided regarding the fund’s current intention with respect to certain investment practices permitted by the 1940 Act.

For purposes of fundamental policy 1a, the fund may borrow money in amounts of up to 33-1/3% of its total assets from banks for any purpose. Additionally, the fund may borrow up to 5% of its total assets from banks or other lenders for temporary purposes (a loan is presumed to be for temporary purposes if it is repaid within 60 days and is not extended or renewed). A reverse repurchase agreement may be considered the economic equivalent of borrowing by the fund; however, to the extent that the fund covers its commitments under a reverse repurchase agreement (and under certain similar agreements and transactions) by segregating or earmarking liquid assets equal in value to the amount of the fund’s commitment, such agreement will not be considered borrowing by the fund.

For purposes of fundamental policy 1b, a senior security does not include any promissory note or evidence of indebtedness if such loan is for temporary purposes only and in an amount not exceeding 5% of the value of the total assets of the fund at the time the loan is made (a loan is presumed to be for temporary purposes if it is repaid within 60 days and is not extended or renewed). Further, to the extent the fund covers its commitments under certain types of agreements and transactions, including reverse repurchase agreements, mortgage-dollar-roll transactions, sale-buybacks, when-issued, delayed-delivery, or forward commitment transactions, and other similar trading practices, by segregating or earmarking liquid assets equal in value to the amount of the fund’s commitment, such agreement or transaction will not be considered a senior security by the fund.

For purposes of fundamental policy 1c, the policy will not apply to the fund to the extent the fund may be deemed an underwriter within the meaning of the 1933 Act in connection with the purchase and sale of fund portfolio securities in the ordinary course of pursuing its investment objectives and strategies.

For purposes of fundamental policy 1e, the fund may not lend more than 33-1/3% of its total assets, provided that this limitation shall not apply to the fund’s purchase of debt obligations.

For purposes of fundamental policy 1f, the fund may not invest more than 25% of its total assets in the securities of issuers in a particular industry. This policy does not apply to investments in securities of the U.S. Government, its agencies or Government Sponsored Enterprises or repurchase agreements with respect thereto.

The fund currently does not intend to engage in borrowing, securities lending, purchase securities on margin, sell securities short or invest in puts, calls, straddles or spreads or combinations thereof.

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Management of the fund

Board of trustees and officers

“Independent” trustees¹

The fund’s nominating and governance committee and board select independent trustees with a view toward constituting a board that, as a body, possesses the qualifications, skills, attributes and experience to appropriately oversee the actions of the fund’s service providers, decide upon matters of general policy and represent the long-term interests of fund shareholders. In doing so, they consider the qualifications, skills, attributes and experience of the current board members, with a view toward maintaining a board that is diverse in viewpoint, experience, education and skills.

The fund seeks independent trustees who have high ethical standards and the highest levels of integrity and commitment, who have inquiring and independent minds, mature judgment, good communication skills, and other complementary personal qualifications and skills that enable them to function effectively in the context of the fund’s board and committee structure and who have the ability and willingness to dedicate sufficient time to effectively fulfill their duties and responsibilities.

Each independent trustee has a significant record of accomplishments in governance, business, not-for-profit organizations, government service, academia, law, accounting or other professions. Although no single list could identify all experience upon which the fund’s independent trustees draw in connection with their service, the following table summarizes key experience for each independent trustee. These references to the qualifications, attributes and skills of the trustees are pursuant to the disclosure requirements of the SEC, and shall not be deemed to impose any greater responsibility or liability on any trustee or the board as a whole. Notwithstanding the accomplishments listed below, none of the independent trustees is considered an “expert” within the meaning of the federal securities laws with respect to information in the fund’s registration statement.

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Name, age and position with fund (year first elected as a trustee²)	Principal occupation(s) during the past five years	Number of portfolios overseen by trustee	Other directorships³ held by trustee during the past five years	Other relevant experience
William H. Baribault, 68 Trustee (2010)	CEO and President, Richard Nixon Foundation; former Chairman of the Board and CEO, Oakwood Enterprises (private investment and consulting)	70	Former director of Henry Co. (until 2009); Professional Business Bank (until 2009)	· Service as chief executive officer for multiple companies · Corporate board experience · Service on advisory and trustee boards for charitable, educational and nonprofit organizations
James G. Ellis, 67 Trustee (2006)	Dean and Professor of Marketing, Marshall School of Business, University of Southern California	70	Mercury General Corp. Former director of Quiksilver, Inc. (until 2014)	· Service as chief executive officer for multiple companies · Corporate board experience · Service on advisory and trustee boards for charitable, municipal and nonprofit organizations · M.B.A.
Leonard R. Fuller, 68 Trustee (1994)	President and CEO, Fuller Consulting (financial management consulting firm)	70	None	· Former partner, public accounting firm · Financial management consulting · Service on advisory and trustee boards for municipal, educational and nonprofit organizations · M.B.A.
R. Clark Hooper, 68 Chairman of the Board (Independent and Non-Executive) (2005)	Private investor	72	The Swiss Helvetia Fund, Inc. Former director of JPMorgan Value Opportunities Fund, Inc. (until 2014)	· Senior regulatory and management experience, National Association of Securities Dealers (now FINRA) · Service on trustee boards for charitable, educational and nonprofit organizations

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Name, age and position with fund (year first elected as a trustee²)	Principal occupation(s) during the past five years	Number of portfolios overseen by trustee	Other directorships³ held by trustee during the past five years	Other relevant experience
Merit E. Janow, 56 Trustee (2010)	Dean and Professor, Columbia University, School of International and Public Affairs	69	MasterCard Incorporated; The NASDAQ Stock Market LLC; Trimble Navigation Limited	· Service with Office of the U.S. Trade Representative and U.S. Department of Justice · Corporate board experience · Service on advisory and trustee boards for charitable, educational and nonprofit organizations · Experience as corporate lawyer · J.D.
Laurel B. Mitchell, Ph.D., 59 Trustee (2010)	Clinical Professor and Director, Accounting Program, University of Redlands	66	None	· Assistant professor, accounting · Service in the Office of Chief Accountant and Enforcement Division of the U.S. Securities and Exchange Commission · Experience in corporate management and public accounting · Service on advisory and trustee boards for charitable, educational and nonprofit organizations · Ph.D., accounting · Formerly licensed as C.P.A.
Frank M. Sanchez, 70 Trustee (1999)	Principal, The Sanchez Family Corporation dba McDonald’s Restaurants (McDonald’s licensee)	66	None	· Senior academic leadership position · Corporate board experience · Service on advisory and trustee boards for charitable and nonprofit organizations · Ph.D., education administration and finance

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Name, age and
position with fund
(year first elected
as a trustee²)

Principal occupation(s)
during the past five years

Number of
portfolios
overseen
by
trustee

Other directorships³ held
by trustee during the past five years

Other relevant experience

Margaret Spellings, 56
Trustee (2010)

President, George W. Bush Foundation; former President and CEO, Margaret Spellings & Company (public policy and strategic consulting); former President, U.S. Chamber Foundation and Senior Advisor to the President and CEO, U.S. Chamber of Commerce; former U.S. Secretary of Education, U.S. Department of Education

Former director of Apollo Education Group, Inc. (until 2013)

· Former Assistant to the President for Domestic Policy, The White House

· Former senior advisor to the Governor of Texas

· Service on advisory and trustee boards for charitable and nonprofit organizations

Steadman Upham, Ph.D., 65
Trustee (2007)

President and University Professor, The University of Tulsa

None

· Senior academic leadership positions for multiple universities

· Service on advisory and trustee boards for educational and nonprofit organizations

· Ph.D., anthropology

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“Interested” trustee(s)^4,5

Interested trustees have similar qualifications, skills and attributes as the independent trustees. Interested trustees are senior executive officers and/or directors of Capital Research and Management Company or its affiliates. Such management roles with the fund’s service providers also permit the interested trustees to make a significant contribution to the fund’s board.

Name, age and position with fund (year first elected as a director/officer²)	Principal occupation(s) during the past five years and positions held with affiliated entities or the Principal Underwriter of the fund	Number of portfolios overseen by trustee	Other directorships³ held by trustee during the past five years
John H. Smet, 57 Vice Chairman of the Board (1993)	Senior Vice President – Capital Fixed Income Investors, Capital Research and Management Company; Director, Capital Research and Management Company	20	None

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Other officers⁵

Name, age and position with fund (year first elected as an officer²)	Principal occupation(s) during the past five years and positions held with affiliated entities or the Principal Underwriter of the fund
Mark A. Brett, 56 President (2010)	Senior Vice President – Capital Fixed Income Investors, Capital Bank and Trust Company; Senior Vice President, Capital International Limited; Senior Vice President – Capital Fixed Income Investors, Capital International Limited; Senior Vice President, Capital International Sàrl; Director, Capital Strategy Research, Inc.*
Kristine M. Nishiyama, 44 Senior Vice President (2003)	Senior Vice President and Senior Counsel – Fund Business Management Group, Capital Research and Management Company; Senior Vice President and General Counsel, Capital Bank and Trust Company*
Courtney R. Taylor, 39 Secretary (2006)	Assistant Vice President – Fund Business Management Group, Capital Research and Management Company
Karl C. Grauman, 46 Treasurer (2012)	Vice President – Investment Operations, Capital Research and Management Company
Steven I. Koszalka, 50 Assistant Secretary (2010)	Vice President – Fund Business Management Group, Capital Research and Management Company
Dori Laskin, 63 Assistant Treasurer (2010)	Vice President – Investment Operations, Capital Research and Management Company
Ari M. Vinocor, 39 Assistant Treasurer (2007)	Vice President – Investment Operations, Capital Research and Management Company

Company affiliated with Capital Research and Management Company.

The term “independent” trustee refers to a trustee who is not an “interested person” of the fund within the meaning of the 1940 Act.

Includes service as a trustee or officer of the fund’s predecessor, Intermediate Bond Fund of America, a Massachusetts business trust. Trustees and officers of the fund serve until their resignation, removal or retirement.

³ This includes all directorships/trusteeships (other than those in the American Funds or other funds managed by Capital Research and Management Company or its affiliates) that are held by each trustee as a director/trustee of a public company or a registered investment company. Unless otherwise noted, all directorships/trusteeships are current.

⁴ The term “interested” trustee refers to a trustee who is an “interested person” of the fund within the meaning of the 1940 Act, on the basis of his or her affiliation with the fund’s investment adviser, Capital Research and Management Company, or affiliated entities (including the fund’s principal underwriter).

⁵ All of the officers listed are officers and/or directors/trustees of one or more of the other funds for which Capital Research and Management Company serves as investment adviser.

The address for all trustees and officers of the fund is 333 South Hope Street, 55th Floor, Los Angeles, California 90071, Attention: Secretary.

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Fund shares owned by trustees as of December 31, 2013:

Name	Dollar range¹ of fund shares owned	Aggregate dollar range¹ of shares owned in all funds in the American Funds family overseen by trustee	Dollar range^1,2 of independent trustees deferred compensation³allocated to fund	Aggregate dollar range^1,2 of independent trustees deferred compensation³ allocated to all funds within American Funds family overseen by trustee
“Independent” trustees
William H. Baribault	None	Over $100,000	N/A	$10,001 – $50,000
James G. Ellis	$10,001 – $50,000	Over $100,000	N/A	N/A
Leonard R. Fuller	None	Over $100,000	N/A	Over $100,000

R. Clark Hooper	None	Over $100,000	N/A	Over $100,000
Merit E. Janow	None	Over $100,000	N/A	N/A
Laurel B. Mitchell	$1 – $10,000	Over $100,000	$1 – $10,000	$10,001 – $50,000
Frank M. Sanchez	$1 – $10,000	$10,001 – $50,000	N/A	N/A
Margaret Spellings	$1 – $10,000	Over $100,000	N/A	$50,001 – $100,000
Steadman Upham	None	Over $100,000	N/A	Over $100,000

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Name	Dollar range¹ of fund shares owned	Aggregate dollar range¹ of shares owned in all funds in the American Funds family overseen by trustee
“Interested” trustees
John H. Smet	Over $100,000	Over $100,000

Ownership disclosure is made using the following ranges: None; $1 – $10,000; $10,001 – $50,000; $50,001 – $100,000; and Over $100,000. The amounts listed for “interested” trustees include shares owned through The Capital Group Companies, Inc. retirement plan and 401(k) plan.

N/A indicates that the listed individual, as of December 31, 2013, was not a trustee of a particular fund, did not allocate deferred compensation to the fund or did not participate in the deferred compensation plan.

Eligible trustees may defer their compensation under a nonqualified deferred compensation plan. Amounts deferred by the trustee accumulate at an earnings rate determined by the total return of one or more American Funds as designated by the trustee.

Trustee compensation — No compensation is paid by the fund to any officer or trustee who is a director, officer or employee of the investment adviser or its affiliates. Except for the independent trustees listed in the “Board of trustees and officers — ‘Independent’ trustees” table under the “Management of the fund” section in this statement of additional information, all other officers and trustees of the fund are directors, officers or employees of the investment adviser or its affiliates. The boards of funds advised by the investment adviser typically meet either individually or jointly with the boards of one or more other such funds with substantially overlapping board membership (in each case referred to as a “board cluster”). The fund typically pays each independent trustee an annual fee, which ranges from $2,365 to $4,730, based primarily on the total number of board clusters on which that independent trustee serves.

In addition, the fund generally pays independent trustees attendance and other fees for meetings of the board and its committees. Board and committee chairs receive additional fees for their services.

Independent trustees also receive attendance fees for certain special joint meetings and information sessions with directors and trustees of other groupings of funds advised by the investment adviser. The fund and the other funds served by each independent trustee each pay an equal portion of these attendance fees.

No pension or retirement benefits are accrued as part of fund expenses. Independent trustees may elect, on a voluntary basis, to defer all or a portion of their fees through a deferred compensation plan in effect for the fund. The fund also reimburses certain expenses of the independent trustees.

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Trustee compensation earned during the fiscal year ended August 31, 2013:

Name	Aggregate compensation (including voluntarily deferred compensation¹) from the fund	Total compensation (including voluntarily deferred compensation¹) from all funds managed by Capital Research and Management Company or its affiliates
William H. Baribault	$8,395	$330,409
James G. Ellis	5,987	321,120
Leonard R. Fuller²	7,278	365,960
R. Clark Hooper	8,617	459,650
Merit E. Janow	6,354	351,027
Laurel B. Mitchell²	9,059	284,446
Frank M. Sanchez	8,362	254,570
Margaret Spellings²	5,754	288,402
Steadman Upham²	5,398	257,527

Amounts may be deferred by eligible trustees under a nonqualified deferred compensation plan adopted by the fund in 1993. Deferred amounts accumulate at an earnings rate determined by the total return of one or more American Funds as designated by the trustees. Compensation shown in this table for the fiscal year ended August 31, 2013 does not include earnings on amounts deferred in previous fiscal years. See footnote 2 to this table for more information.

² Since the deferred compensation plan’s adoption, the total amount of deferred compensation accrued by the fund (plus earnings thereon) through the end of the 2013 fiscal year for participating trustees is as follows: Leonard R. Fuller ($60,890), Laurel B. Mitchell ($1,443), Margaret Spellings ($2,491) and Steadman Upham ($43,834). Amounts deferred and accumulated earnings thereon are not funded and are general unsecured liabilities of the fund until paid to the trustees.

As of August 1, 2014, the officers and trustees of the fund and their families, as a group, owned beneficially or of record less than 1% of the outstanding shares of the fund.

Fund organization and the board of trustees — The fund, an open-end, diversified management investment company, was organized as a Massachusetts business trust on December 7, 1987, and was reorganized as a Delaware statutory trust on November 1, 2010. All fund operations are supervised by the fund’s board of trustees which meets periodically and performs duties required by applicable state and federal laws.

Delaware law charges trustees with the duty of managing the business affairs of the trust. Trustees are considered to be fiduciaries of the trust and owe duties of care and loyalty to the trust and its shareholders.

Independent board members are paid certain fees for services rendered to the fund as described above. They may elect to defer all or a portion of these fees through a deferred compensation plan in effect for the fund.

The fund has several different classes of shares. Shares of each class represent an interest in the same investment portfolio. Each class has pro rata rights as to voting, redemption, dividends and liquidation, except that each class bears different distribution expenses and may bear different transfer agent fees and other expenses properly attributable to the particular class as approved by the board of trustees and set forth in the fund’s rule 18f-3 Plan. Each class’ shareholders have exclusive voting rights with respect to the respective class’ rule 12b-1 plans adopted in connection with the distribution of shares and on other matters in which the interests of one class are different from interests in another class. Shares of all classes of the fund vote together on matters that affect all classes in substantially the same manner. Each class votes as a class on matters that affect that class alone. Note that 529 college savings plan account owners invested in Class 529 shares are not shareholders of the fund and,

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accordingly, do not have the rights of a shareholder, such as the right to vote proxies relating to fund shares. As the legal owner of the fund’s Class 529 shares, the Virginia College Savings Plan^SM will vote any proxies relating to the fund’s Class 529 shares. In addition, the trustees have the authority to establish new series and classes of shares, and to split or combine outstanding shares into a greater or lesser number, without shareholder approval.

The fund does not hold annual meetings of shareholders. However, significant matters that require shareholder approval, such as certain elections of board members or a change in a fundamental investment policy, will be presented to shareholders at a meeting called for such purpose. Shareholders have one vote per share owned.

The fund’s declaration of trust and by-laws, as well as separate indemnification agreements with independent trustees, provide in effect that, subject to certain conditions, the fund will indemnify its officers and trustees against liabilities or expenses actually and reasonably incurred by them relating to their service to the fund. However, trustees are not protected from liability by reason of their willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of their office.

Removal of trustees by shareholders — At any meeting of shareholders, duly called and at which a quorum is present, shareholders may, by the affirmative vote of the holders of two-thirds of the votes entitled to be cast, remove any trustee from office and may elect a successor or successors to fill any resulting vacancies for the unexpired terms of removed trustees. In addition, the trustees of the fund will promptly call a meeting of shareholders for the purpose of voting upon the removal of any trustees when requested in writing to do so by the record holders of at least 10% of the outstanding shares.

Leadership structure — The board’s chair is currently an independent trustee who is not an “interested person” of the fund within the meaning of the 1940 Act. The board has determined that an independent chair facilitates oversight and enhances the effectiveness of the board. The independent chair’s duties include, without limitation, generally presiding at meetings of the board, approving board meeting schedules and agendas, leading meetings of the independent trustees in executive session, facilitating communication with committee chairs, and serving as the principal independent trustee contact for fund management and counsel to the independent trustees and the fund.

Risk oversight — Day-to-day management of the fund, including risk management, is the responsibility of the fund’s contractual service providers, including the fund’s investment adviser, principal underwriter/distributor and transfer agent. Each of these entities is responsible for specific portions of the fund’s operations, including the processes and associated risks relating to the fund’s investments, integrity of cash movements, financial reporting, operations and compliance. The board of trustees oversees the service providers’ discharge of their responsibilities, including the processes they use to manage relevant risks. In that regard, the board receives reports regarding the operations of the fund’s service providers, including risks. For example, the board receives reports from investment professionals regarding risks related to the fund’s investments and trading. The board also receives compliance reports from the fund’s and the investment adviser’s chief compliance officers addressing certain areas of risk.

Committees of the fund’s board, as well as joint committees of independent board members of funds managed by Capital Research and Management Company, also explore risk management procedures in particular areas and then report back to the full board. For example, the fund’s audit committee oversees the processes and certain attendant risks relating to financial reporting, valuation of fund assets, and related controls. Similarly, a joint review and advisory committee oversees certain risk controls relating to the fund’s transfer agency services.

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Not all risks that may affect the fund can be identified or processes and controls developed to eliminate or mitigate their effect. Moreover, it is necessary to bear certain risks (such as investment-related risks) to achieve the fund’s objectives. As a result of the foregoing and other factors, the ability of the fund’s service providers to eliminate or mitigate risks is subject to limitations.

Committees of the board of trustees — The fund has an audit committee comprised of William H. Baribault, James G. Ellis, Leonard R. Fuller, Laurel B. Mitchell, Frank M. Sanchez, and Steadman Upham, none of whom is an “interested person” of the fund within the meaning of the 1940 Act. The committee provides oversight regarding the fund’s accounting and financial reporting policies and practices, its internal controls and the internal controls of the fund’s principal service providers. The committee acts as a liaison between the fund’s independent registered public accounting firm and the full board of trustees. The audit committee held six meetings during the 2013 fiscal year.

The fund has a contracts committee comprised of William H. Baribault, James G. Ellis, Leonard R. Fuller, R. Clark Hooper, Merit E. Janow, Laurel B. Mitchell, Frank M. Sanchez, Margaret Spellings, and Steadman Upham, none of whom is an “interested person” of the fund within the meaning of the 1940 Act. The committee’s principal function is to request, review and consider the information deemed necessary to evaluate the terms of certain agreements between the fund and its investment adviser or the investment adviser’s affiliates, such as the Investment Advisory and Service Agreement, Principal Underwriting Agreement, Administrative Services Agreement and Plans of Distribution adopted pursuant to rule 12b-1 under the 1940 Act, that the fund may enter into, renew or continue, and to make its recommendations to the full board of trustees on these matters. The contracts committee held one meeting during the 2013 fiscal year.

The fund has a nominating and governance committee comprised of William H. Baribault, James G. Ellis, Leonard R. Fuller, R. Clark Hooper, Merit E. Janow, Laurel B. Mitchell, Frank M. Sanchez and Margaret Spellings, none of whom is an “interested person” of the fund within the meaning of the 1940 Act. The committee periodically reviews such issues as the board’s composition, responsibilities, committees, compensation and other relevant issues, and recommends any appropriate changes to the full board of trustees. The committee also evaluates, selects and nominates independent trustee candidates to the full board of trustees. While the committee normally is able to identify from its own and other resources an ample number of qualified candidates, it will consider shareholder suggestions of persons to be considered as nominees to fill future vacancies on the board. Such suggestions must be sent in writing to the nominating and governance committee of the fund, addressed to the fund’s secretary, and must be accompanied by complete biographical and occupational data on the prospective nominee, along with a written consent of the prospective nominee for consideration of his or her name by the committee. The nominating and governance committee held three meetings during the 2013 fiscal year.

Proxy voting procedures and principles — The fund’s investment adviser, in consultation with the fund’s board, has adopted Proxy Voting Procedures and Principles (the “Principles”) with respect to voting proxies of securities held by the fund, other American Funds and American Funds Insurance Series. The complete text of these principles is available on the American Funds website at americanfunds.com. Proxies are voted by a committee of the appropriate equity investment division of the investment adviser under authority delegated by the funds’ boards. Therefore, if more than one fund invests in the same company, they may vote differently on the same proposal. In addition, the funds’ boards monitor the proxy voting process and generally provide guidance with respect to the Principles through a joint proxy committee of the American Funds.

The investment adviser seeks to vote all U.S. proxies; however, in certain circumstances it may be impracticable or impossible to do so. Proxies for companies outside the U.S. also are voted, provided there is sufficient time and information available. After a proxy statement is received, the investment adviser prepares a summary of the proposals contained in the proxy statement. A notation of any potential conflicts of interest also is included in the summary (see below for a description of Capital

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Research and Management Company’s special review procedures). For proxies of securities managed by a particular investment division of the investment adviser, the initial voting recommendation is made by one or more of the division’s investment analysts familiar with the company and industry. A second recommendation is made by a proxy coordinator (an investment analyst or other individual with experience in corporate governance and proxy voting matters) within the appropriate investment division, based on knowledge of these Principles and familiarity with proxy-related issues. The proxy summary and voting recommendations are made available to the appropriate proxy voting committee for a final voting decision.

The boards of the equity-oriented funds managed by the investment adviser have established a Joint Proxy Committee (“JPC”) composed of independent board members from each board. The JPC’s role is to facilitate appropriate oversight of the proxy voting process and provide valuable input on corporate governance and related matters. Members of the JPC also may be called upon to resolve voting conflicts involving funds co-managed by the investment adviser’s equity investment divisions and vote proxies when necessary as a result of regulatory requirements (see below for more information).

From time to time the investment adviser may vote proxies issued by, or on proposals sponsored or publicly supported by (1) a client with substantial assets managed by the investment adviser or its affiliates, (2) an entity with a significant business relationship with the American Funds organization, or (3) a company with a director of an American Fund on its board (each referred to as an “Interested Party”). Other persons or entities may also be deemed an Interested Party if facts or circumstances appear to give rise to a potential conflict. The investment adviser analyzes these proxies and proposals on their merits and does not consider these relationships when casting its vote.

The investment adviser has developed procedures to identify and address instances where a vote could appear to be influenced by such a relationship. Under the procedures, prior to a final vote being cast by the investment adviser, the relevant proxy committees’ voting results for proxies issued by Interested Parties are reviewed by a Special Review Committee (“SRC”) of the investment division voting the proxy if the vote was in favor of the Interested Party.

If a potential conflict is identified according to the procedure above, the SRC will be provided with a summary of any relevant communications with the Interested Party, the rationale for the voting decision, information on the organization’s relationship with the party and any other pertinent information. The SRC will evaluate the information and determine whether the decision was in the best interest of fund shareholders. It will then accept or override the voting decision or determine alternative action. The SRC includes senior investment professionals and legal and compliance professionals.

In cases where a fund is co-managed and a portfolio company is held by more than one of the investment adviser’s equity investment divisions, voting ties are resolved by one of the following methods. First, for those funds that have delegated tie-breaking authority to the investment adviser, the outcome will be determined by the equity investment division with the larger position in the portfolio company as of the record date for the shareholder meeting. For the remaining funds, members of the JPC representing those funds will determine the outcome based on a review of the same information provided to the relevant investment analysts, proxy coordinators and proxy committee members.

The Principles, which have been in effect in substantially their current form for many years, provide an important framework for analysis and decision-making by all funds. However, they are not exhaustive and do not address all potential issues. The Principles provide a certain amount of flexibility so that all relevant facts and circumstances can be considered in connection with every vote. As a result, each proxy received is voted on a case-by-case basis considering the specific circumstances of each

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proposal. The voting process reflects the funds’ understanding of the company’s business, its management and its relationship with shareholders over time.

Information regarding how the fund voted proxies relating to portfolio securities during the 12-month period ended June 30 of each year will be available on or about September 1 of each year (a) without charge, upon request by calling American Funds Service Company at (800) 421-4225, (b) on the American Funds website and (c) on the SEC’s website at sec.gov.

The following summary sets forth the general positions of the American Funds, American Funds Insurance Series and the investment adviser on various proposals. A copy of the full Principles is available upon request, free of charge, by calling American Funds Service Company or visiting the American Funds website.

Director matters — The election of a company’s slate of nominees for director generally is supported. Votes may be withheld for some or all of the nominees if this is determined to be in the best interest of shareholders. Separation of the chairman and CEO positions also may be supported.

Governance provisions — Typically, proposals to declassify a board (elect all directors annually) are supported based on the belief that this increases the directors’ sense of accountability to shareholders. Proposals for cumulative voting generally are supported in order to promote management and board accountability and an opportunity for leadership change. Proposals designed to make director elections more meaningful, either by requiring a majority vote or by requiring any director receiving more withhold votes than affirmative votes to tender his or her resignation, generally are supported.

Shareholder rights — Proposals to repeal an existing poison pill generally are supported. (There may be certain circumstances, however, when a proxy voting committee of a fund or an investment division of the investment adviser believes that a company needs to maintain anti-takeover protection.) Proposals to eliminate the right of shareholders to act by written consent or to take away a shareholder’s right to call a special meeting typically are not supported.

Compensation and benefit plans — Option plans are complicated, and many factors are considered in evaluating a plan. Each plan is evaluated based on protecting shareholder interests and a knowledge of the company and its management. Considerations include the pricing (or repricing) of options awarded under the plan and the impact of dilution on existing shareholders from past and future equity awards. Compensation packages should be structured to attract, motivate and retain existing employees and qualified directors; however, they should not be excessive.

Routine matters — The ratification of auditors, procedural matters relating to the annual meeting and changes to company name are examples of items considered routine. Such items generally are voted in favor of management’s recommendations unless circumstances indicate otherwise.

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Principal fund shareholders — The following table identifies those investors who own of record, or are known by the fund to own beneficially, 5% or more of any class of its shares as of the opening of business on August 1, 2014. Unless otherwise indicated, the ownership percentages below represent ownership of record rather than beneficial ownership.

Name and address	Ownership	Ownership percentage
Edward D. Jones & Co. Omnibus Account Saint Louis, MO	Record	Class A Class B Class 529-A Class 529-B	29.71% 30.50 9.45 15.34
Pershing, LLC Custody Account Jersey City, NJ	Record	Class A Class B Class C Class F-1 Class F-2 Class R-1	8.62 6.88 8.67 14.35 8.90 11.88
First Clearing, LLC Custody Account Saint Louis, MO	Record	Class A Class B Class C Class F-2 Class R-1	6.54 5.69 9.22 61.02 9.18

Merrill Lynch Omnibus Account Jacksonville, FL	Record	Class C	7.57
National Financial Services, LLC Omnibus Account Jersey City, NJ	Record	Class F-1	33.14
UBS WM USA Omnibus Account Jersey City, NJ	Record	Class F-1	9.81


Raymond James Omnibus Account St. Petersburg, FL	Record	Class F-1	8.33
Capital Group Private Client Services Account Irvine, CA	Record	Class F-2	7.32
Nationwide Trust Company Columbus, OH	Record	Class R-5	7.59
American Funds 2020 Target Date Retirement Fund Los Angeles, CA	Record	Class R-6	19.05

American Funds Preservation Portfolio Irvine, CA	Record	Class R-6	14.58
American Funds 2015 Target Date Retirement Fund Los Angeles, CA	Record	Class R-6	11.46
American Funds College 2018 Fund Irvine, CA	Record	Class R-6	8.51
American Funds 2010 Target Date Retirement Fund Los Angeles, CA	Record	Class R-6	7.39
American Funds 2025 Target Date Retirement Fund Los Angeles, CA	Record	Class R-6	6.80

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Name and address Ownership Ownership percentage

Lincoln Variable Insurance Products #1

Pittsburgh, PA
Record Class R-6 6.20

American Funds College 2015 Fund

Irvine, CA
Record Class R-6 5.73

Lincoln Variable Insurance Products #2

Pittsburgh, PA
Record Class R-6 5.20

Unless otherwise noted, references in this statement of additional information to Class F shares, Class R shares or Class 529 shares refer to both F share classes, all R share classes or all 529 share classes, respectively.

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Investment adviser — Capital Research and Management Company, the fund’s investment adviser, founded in 1931, maintains research facilities in the United States and abroad (Los Angeles, San Francisco, New York, Washington, D.C., London, Geneva, Hong Kong, Singapore and Tokyo). These facilities are staffed with experienced investment professionals. The investment adviser is located at 333 South Hope Street, Los Angeles, CA 90071. It is a wholly owned subsidiary of The Capital Group Companies, Inc., a holding company for several investment management subsidiaries. Capital Research and Management Company manages equity assets through three equity investment divisions and fixed-income assets through its fixed-income investment division, Capital Fixed Income Investors. The three equity investment divisions — Capital World Investors, Capital Research Global Investors and Capital International Investors — make investment decisions independently of one another. Portfolio managers in Capital International Investors rely on a research team that also provides investment services to institutional clients and other accounts advised by affiliates of Capital Research and Management Company. The investment adviser has claimed an exclusion from the definition of the term commodity pool operator under the Commodity Exchange Act (the “CEA”) with respect to the fund and, therefore, is not subject to registration or regulation as such under the CEA with respect to the fund.

The investment adviser has adopted policies and procedures that address issues that may arise as a result of an investment professional’s management of the fund and other funds and accounts. Potential issues could involve allocation of investment opportunities and trades among funds and accounts, use of information regarding the timing of fund trades, investment professional compensation and voting relating to portfolio securities. The investment adviser believes that its policies and procedures are reasonably designed to address these issues.

Compensation of investment professionals — As described in the prospectus, the investment adviser uses a system of multiple portfolio managers in managing fund assets. In addition, Capital Research and Management Company’s investment analysts may make investment decisions with respect to a portion of a fund’s portfolio within their research coverage.

Portfolio managers and investment analysts are paid competitive salaries by Capital Research and Management Company. In addition, they may receive bonuses based on their individual portfolio results. Investment professionals also may participate in profit-sharing plans. The relative mix of compensation represented by bonuses, salary and profit-sharing plans will vary depending on the individual’s portfolio results, contributions to the organization and other factors.

To encourage a long-term focus, bonuses based on investment results are principally determined by comparing pretax total investment returns to relevant benchmarks over the most recent year, a four-year rolling average and an eight-year rolling average with greater weight placed on the four-year and eight-year rolling averages. For portfolio managers, benchmarks may include measures of the marketplaces in which the fund invests and measures of the results of comparable mutual funds. For investment analysts, benchmarks may include relevant market measures and appropriate industry or sector indexes reflecting their areas of expertise. Capital Research and Management Company makes periodic subjective assessments of analysts’ contributions to the investment process and this is an element of their overall compensation. The investment results of each of the fund’s portfolio managers may be measured against one or more benchmarks, depending on his or her investment focus, such as: Barclays U.S. Government/Credit 1-7 Years ex. BBB Index, Lipper Short-Intermediate Investment Grade Debt Funds Average and Lipper Short-Intermediate U.S. Government Funds Average. From time to time, Capital Research and Management Company may adjust or customize these benchmarks to better reflect the universe of comparably managed funds of competitive investment management firms.

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Portfolio manager fund holdings and other managed accounts — As described below, portfolio managers may personally own shares of the fund. In addition, portfolio managers may manage portions of other mutual funds or accounts advised by Capital Research and Management Company or its affiliates.

The following table reflects information as of August 31, 2013:

Portfolio manager	Dollar range of fund shares owned¹	Number of other registered investment companies (RICs) for which portfolio manager is a manager (assets of RICs in billions)²		Number of other pooled investment vehicles (PIVs) for which portfolio manager is a manager (assets of PIVs in billions)³		Number of other accounts for which portfolio manager is a manager (assets of other accounts in billions)⁴
John H. Smet	$500,001 – $1,000,000	6	$197.2	None		None
Mark A. Brett	$500,001 – $1,000,000	3	$33.2	2	$0.14	7⁵	$2.59
David S. Lee	$100,001 – $500,000	1	$0.0	2	$0.69	3	$2.07
Fergus N. MacDonald	$100,001 – $500,000	4	$10.9	None		None

Ownership disclosure is made using the following ranges: None; $1 – $10,000; $10,001 – $50,000; $50,001 – $100,000; $100,001 – $500,000; $500,001 – $1,000,000; and Over $1,000,000. The amounts listed include shares owned through The Capital Group Companies, Inc. retirement plan and 401(k) plan.

Indicates RIC(s) for which the portfolio manager also has significant day to day management responsibilities. Assets noted are the total net assets of the RIC(s) and are not the total assets managed by the individual, which is a substantially lower amount. No RIC or account has an advisory fee that is based on the performance of the RIC or account.

Represents funds advised or sub-advised by Capital Research and Management Company or its affiliates and sold outside the United States and/or fixed-income assets in institutional accounts managed by investment adviser subsidiaries of Capital Group International, Inc., an affiliate of Capital Research and Management Company. Assets noted are the total net assets of the funds or accounts and are not the total assets managed by the individual, which is a substantially lower amount.

⁴

Reflects other professionally managed accounts held at companies affiliated with Capital Research and Management Company. Personal brokerage accounts of portfolio managers and their families are not reflected.

⁵

The advisory fee of one of these accounts (representing $0.32 billion in total assets) is based partially on its investment results.

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Investment Advisory and Service Agreement — The Investment Advisory and Service Agreement (the “Agreement”) between the fund and the investment adviser will continue in effect until March 31, 2015, unless sooner terminated, and may be renewed from year to year thereafter, provided that any such renewal has been specifically approved at least annually by (a) the board of trustees, or by the vote of a majority (as defined in the 1940 Act) of the outstanding voting securities of the fund, and (b) the vote of a majority of trustees who are not parties to the Agreement or interested persons (as defined in the 1940 Act) of any such party, cast in person at a meeting called for the purpose of voting on such approval. The Agreement provides that the investment adviser has no liability to the fund for its acts or omissions in the performance of its obligations to the fund not involving willful misconduct, bad faith, gross negligence or reckless disregard of its obligations under the Agreement. The Agreement also provides that either party has the right to terminate it, without penalty, upon 60 days’ written notice to the other party, and that the Agreement automatically terminates in the event of its assignment (as defined in the 1940 Act). In addition, the Agreement provides that the investment adviser may delegate all, or a portion of, its investment management responsibilities to one or more subsidiary advisers approved by the fund’s board, pursuant to an agreement between the investment adviser and such subsidiary. Any such subsidiary adviser will be paid solely by the investment adviser out of its fees.

In addition to providing investment advisory services, the investment adviser furnishes the services and pays the compensation and travel expenses of persons to perform the fund’s executive, administrative, clerical and bookkeeping functions, and provides suitable office space, necessary small office equipment and utilities, general purpose accounting forms, supplies and postage used at the fund’s offices. The fund pays all expenses not assumed by the investment adviser, including, but not limited to: custodian, stock transfer and dividend disbursing fees and expenses; shareholder recordkeeping and administrative expenses; costs of the designing, printing and mailing of reports, prospectuses, proxy statements and notices to its shareholders; taxes; expenses of the issuance and redemption of fund shares (including stock certificates, registration and qualification fees and expenses); expenses pursuant to the fund’s plans of distribution (described below); legal and auditing expenses; compensation, fees and expenses paid to independent trustees; association dues; costs of stationery and forms prepared exclusively for the fund; and costs of assembling and storing shareholder account data.

The management fee is based upon the daily net assets of the fund and monthly gross investment income. Gross investment income is determined in accordance with generally accepted accounting principles and does not include gains or losses from sales of capital assets.

The management fee is based on the following annualized rates and daily net asset levels:

Net asset level

Rate		In excess of	Up to
0.30%	$ 0		$ 60,000,000
0.21	60,000,000		1,000,000,000
0.18	1,000,000,000		3,000,000,000
0.16	3,000,000,000		6,000,000,000
0.15	6,000,000,000		10,000,000,000
0.14	10,000,000,000

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The Agreement also provides for fees based on monthly gross investment income at the following annualized rates:

Monthly gross investment income

Rate	In excess of	Up to
3.00%	$ 0	$3,333,333
2.50	3,333,333	8,333,333
2.00	8,333,333

For the fiscal years ended August 31, 2013, 2012 and 2011, the investment adviser received from the fund management fees of $20,683,000, $20,833,000 and $20,748,000 , respectively.

Administrative services — The investment adviser and its affiliates provide certain administrative services for shareholders of the fund’s Class A, C, F, R and 529 shares. Services include, but are not limited to, coordinating, monitoring, assisting and overseeing third parties that provide services to fund shareholders.

These services are provided pursuant to an Administrative Services Agreement (the “Administrative Agreement”) between the fund and the investment adviser relating to the fund’s Class A, C, F, R and 529 shares. The Administrative Agreement will continue in effect until March 31, 2015, unless sooner renewed or terminated, and may be renewed from year to year thereafter, provided that any such renewal has been specifically approved at least annually by the vote of a majority of the members of the fund’s board who are not parties to the Administrative Agreement or interested persons (as defined in the 1940 Act) of any such party, cast in person at a meeting called for the purpose of voting on such approval. The fund may terminate the Administrative Agreement at any time by vote of a majority of independent board members. The investment adviser has the right to terminate the Administrative Agreement upon 60 days’ written notice to the fund. The Administrative Agreement automatically terminates in the event of its assignment (as defined in the 1940 Act).

Under the Administrative Agreement, the investment adviser receives an administrative services fee at the annual rate of .01% of the average daily net assets of the fund attributable to Class A shares and .05% of the average daily net assets of the fund attributable to Class C, F, R and 529 shares for administrative services. Administrative services fees are paid monthly and accrued daily.

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During the 2013 fiscal year, administrative services fees were:

	Administrative services fee
Class A	$690,000
Class C	129,000
Class F-1	290,000
Class F-2	121,000
Class 529-A	205,000
Class 529-B	3,000
Class 529-C	50,000
Class 529-E	10,000
Class 529-F-1	39,000
Class R-1	8,000
Class R-2	78,000
Class R-3	86,000
Class R-4	64,000
Class R-5	23,000
Class R-6	341,000

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Principal Underwriter and plans of distribution — American Funds Distributors, Inc. (the “Principal Underwriter”) is the principal underwriter of the fund’s shares. The Principal Underwriter is located at 333 South Hope Street, Los Angeles, CA 90071; 6455 Irvine Center Drive, Irvine, CA 92618; 3500 Wiseman Boulevard, San Antonio, TX 78251; and 12811 North Meridian Street, Carmel, IN 46032.

The Principal Underwriter receives revenues relating to sales of the fund’s shares, as follows:

For Class A and 529-A shares, the Principal Underwriter receives commission revenue consisting of the balance of the Class A and 529-A sales charge remaining after the allowances by the Principal Underwriter to investment dealers.

For Class B and 529-B shares sold prior to April 21, 2009, the Principal Underwriter sold its rights to the .75% distribution-related portion of the 12b-1 fees paid by the fund, as well as any contingent deferred sales charges, to a third party. The Principal Underwriter compensated investment dealers for sales of Class B and 529-B shares out of the proceeds of this sale and kept any amounts remaining after this compensation was paid.

For Class C and 529-C shares, the Principal Underwriter receives any contingent deferred sales charges that apply during the first year after purchase.

In addition, the fund reimburses the Principal Underwriter for advancing immediate service fees to qualified dealers and advisors upon the sale of Class C and 529-C shares. The fund also reimburses the Principal Underwriter for service fees (and, in the case of Class 529-E shares, commissions) paid on a quarterly basis to intermediaries, such as qualified dealers or financial advisors, in connection with investments in Class F-1, 529-F-1, 529-E, R-1, R-2, R-2E, R-3 and R-4 shares.

To the extent the fund serves as an underlying investment for certain variable annuity products, the Principal Underwriter may receive compensation from the variable annuity’s sponsoring insurance company. These payments generally cover expenses associated with the education and training efforts that the Principal Underwriter provides to the insurance company’s sales force.

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Commissions, revenue or service fees retained by the Principal Underwriter after allowances or compensation to dealers were:

	Fiscal year	Commissions, revenue or fees retained	Allowance or compensation to dealers
Class A	2013	2,602,000	10,600,000
	2012	2,199,000	8,820,000
	2011	2,046,000	8,080,000
Class C	2013	80,000	1,000
	2012	104,000	1,000
	2011	132,000	206
Class 529-A	2013	133,000	526,000
	2012	159,000	626,000
	2011	156,000	620,000
Class 529-C	2013	15,000	23
	2012	2,000	10
	2011	21,000	261

Plans of distribution — The fund has adopted plans of distribution (the “Plans”) pursuant to rule 12b-1 under the 1940 Act. The Plans permit the fund to expend amounts to finance any activity primarily intended to result in the sale of fund shares, provided the fund’s board of trustees has approved the category of expenses for which payment is being made.

Each Plan is specific to a particular share class of the fund. As the fund has not adopted a Plan for Class F-2, Class R-5 or Class R-6, no 12b-1 fees are paid from Class F-2, Class R-5 or Class R-6 share assets and the following disclosure is not applicable to these share classes.

Payments under the Plans may be made for service-related and/or distribution-related expenses. Service-related expenses include paying service fees to qualified dealers. Distribution-related expenses include commissions paid to qualified dealers. The amounts actually paid under the Plans for the past fiscal year, expressed as a percentage of the fund’s average daily net assets attributable to the applicable share class, are disclosed in the prospectus under “Fees and expenses of the fund.” Further information regarding the amounts available under each Plan is in the “Plans of Distribution” section of the prospectus.

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Following is a brief description of the Plans:

Class A and 529-A — For Class A and 529-A shares, up to .25% of the fund’s average daily net assets attributable to such shares is reimbursed to the Principal Underwriter for paying service-related expenses, and the balance available under the applicable Plan may be paid to the Principal Underwriter for distribution-related expenses. The fund may annually expend up to .30% for Class A shares and up to .50% for Class 529-A shares under the applicable Plan.

Distribution-related expenses for Class A and 529-A shares include dealer commissions and wholesaler compensation paid on sales of shares of $1 million or more purchased without a sales charge. Commissions on these “no load” purchases (which are described in further detail under the “Sales Charges” section of this statement of additional information) in excess of the Class A and 529-A Plan limitations and not reimbursed to the Principal Underwriter during the most recent fiscal quarter are recoverable for 15 months, provided that the reimbursement of such commissions does not cause the fund to exceed the annual expense limit. After 15 months, these commissions are not recoverable.

Class B and 529-B — The Plans for Class B and 529-B shares provide for payments to the Principal Underwriter of up to .25% of the fund’s average daily net assets attributable to such shares for paying service-related expenses and .75% for distribution-related expenses, which include the financing of commissions paid to qualified dealers.

Other share classes (Class C, 529-C, F-1, 529-F-1, 529-E, R-1, R-2, R-2E, R-3 and R-4) — The Plans for each of the other share classes that have adopted Plans provide for payments to the Principal Underwriter for paying service-related and distribution-related expenses of up to the following amounts of the fund’s average daily net assets attributable to such shares:

Share class	Service related payments¹	Distribution related payments¹	Total allowable under the Plans²
Class C	0.25%	0.75%	1.00%
Class 529-C	0.25	0.75	1.00
Class F-1	0.25	—	0.50
Class 529-F-1	0.25	—	0.50
Class 529-E	0.25	0.25	0.75
Class R-1	0.25	0.75	1.00
Class R-2	0.25	0.50	1.00
Class R-2E	0.25	0.35	0.85
Class R-3	0.25	0.25	0.75
Class R-4	0.25	—	0.50

Amounts in these columns represent the amounts approved by the board of trustees under the applicable Plan.

The fund may annually expend the amounts set forth in this column under the current Plans with the approval of the board of trustees.

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During the 2013 fiscal year, 12b-1 expenses accrued and paid, and if applicable, unpaid, were:

	12b-1 expenses	12b-1 unpaid liability outstanding
Class A	$16,805,000	$2,376,000
Class B	487,000	41,000
Class C	2,564,000	384,000
Class F-1	1,446,000	253,000
Class 529-A	930,000	165,000
Class 529-B	65,000	6,000
Class 529-C	983,000	192,000
Class 529-E	101,000	21,000
Class 529-F-1	—	—
Class R-1	153,000	25,000
Class R-2	1,138,000	263,000
Class R-3	852,000	175,000
Class R-4	320,000	66,000

Approval of the Plans — As required by rule 12b-1 and the 1940 Act, the Plans (together with the Principal Underwriting Agreement) have been approved by the full board of trustees and separately by a majority of the independent trustees of the fund who have no direct or indirect financial interest in the operation of the Plans or the Principal Underwriting Agreement. In addition, the selection and nomination of independent trustees of the fund are committed to the discretion of the independent trustees during the existence of the Plans.

Potential benefits of the Plans to the fund include quality shareholder services, savings to the fund in transfer agency costs, and benefits to the investment process from growth or stability of assets. The Plans may not be amended to materially increase the amount spent for distribution without shareholder approval. Plan expenses are reviewed quarterly by the board of trustees and the Plans must be renewed annually by the board of trustees.

A portion of the fund’s 12b-1 expense is paid to financial advisors to compensate them for providing ongoing services. If you have questions regarding your investment in the fund or need assistance with your account, please contact your financial advisor. If you need a financial advisor, please call American Funds Distributors at (800) 421-4120 for assistance.

Fee to Virginia College Savings Plan — With respect to Class 529 shares, as compensation for its oversight and administration, Virginia College Savings Plan receives a quarterly fee accrued daily and calculated at the annual rate of .10% on the first $30 billion of the net assets invested in Class 529 shares of the American Funds, .07% on net assets between $30 billion and $50 billion, .06% on net assets between $50 billion and $70 billion and .05% on net assets over $70 billion. The fee for any given calendar quarter is accrued and calculated on the basis of average net assets of Class 529 shares of the American Funds for the last month of the prior calendar quarter.

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Other compensation to dealers — As of July 2014, the top dealers (or their affiliates) that American Funds Distributors anticipates will receive additional compensation (as described in the prospectus) include:

AEGON / Transamerica / Diversified

Diversified Capital Corporation

Diversified Resources, LLC

Diversified Securities, Incorporated

Merrill Lynch Life Insurance Company

Merrill Lynch Life Insurance Company of New York

Transam Securities, Inc.

Transamerica Financial Advisors, Inc.

Transamerica Financial Life Insurance Company

Transamerica Investors Securities Corporation

AXA Advisors, LLC

Cadaret, Grant & Co., Inc.

Cambridge

Cambridge Investment Research, Inc.

Cetera Financial Group

Cetera Advisor Networks LLC

Cetera Advisors LLC

Cetera Financial Specialists LLC

Cetera Investment Services LLC

CIMAS, LLC

Commonwealth

Commonwealth Financial Network

D.A. Davidson & Co.

Edward Jones

Edward Jones Health Savings Plan

H. Beck, Inc.

Hefren-Tillotson, Inc.

HTK / Janney Montgomery Group

Hornor, Townsend & Kent, Inc.

Janney Montgomery Scott LLC

ING Group

ING Financial Advisers, LLC

ING Financial Partners, Inc.

ING Investment Advisors, LLC

J.J.B. Hilliard Lyons

Hilliard Lyons Trust Company LLC

J. J. B. Hilliard, W. L. Lyons, LLC

J.P. Morgan Chase Banc One

J.P. Morgan Institutional Investments, Inc.

J.P. Morgan Securities LLC

JP Morgan Chase Bank, N.A.

Ladenburg Thalmann Group

Investacorp, Inc.

Ladenburg, Thalmann & Co., Inc.

Securities America, Inc.

Triad Advisors, Inc.

Intermediate Bond Fund of America - Page 37

Lincoln Network

Lincoln Capital Corp (RI)

Lincoln Financial Advisors Corporation

Lincoln Financial Distributors, Inc.

Lincoln Financial Securities Corporation

Lincoln Investment Advisors Corporation

Lincoln Management

Lincoln-Legacy

LPL Group

LPL Financial LLC

Mass Mutual / MML

MassMutual Trust Company FSB

Massmutual Trust Company, FSB (The)

MML Investors Services, LLC

Merrill Lynch Banc of America

Bank of America

Merrill Lynch, Pierce, Fenner & Smith Incorporated

Metlife Enterprises

Metlife Securities Inc.

New England Securities

Tower Square Securities, Inc.

Walnut Street Securities, Inc.

Morgan Stanley Smith Barney

Morgan Stanley Smith Barney LLC

NFP Securities, Inc.

NMIS

Northwestern Mutual Investment Services, LLC

NPH / Jackson National

Invest Financial Corporation

Investment Centers of America, Inc.

National Planning Corporation

SII Investments, Inc.

Park Avenue Securities LLC

PFS

PFS Investments Inc.

Puplava Securities, Inc.

Raymond James Group

Morgan Keegan & Company, Inc.

Raymond James & Associates, Inc.

Raymond James Financial Services Inc.

RBC Capital Markets Corporation

Robert W. Baird & Co. Incorporated

Stifel, Nicolaus & Company, Incorporated

The Advisor Group

FSC Securities Corporation

Royal Alliance Associates, Inc.

SagePoint Financial, Inc.

Woodbury Financial Services, Inc.

UBS

UBS Financial Services Inc.

UBS Securities, LLC

Intermediate Bond Fund of America - Page 38

Wells Fargo Network

First Clearing LLC

Wells Fargo

Wells Fargo Advisors Financial Network, LLC

Wells Fargo Advisors Investment Services Group

Wells Fargo Advisors Latin American Channel

Wells Fargo Advisors Private Client Group

Wells Fargo Bank, N.A.

Wells Fargo Securities, LLC

Intermediate Bond Fund of America - Page 39

Execution of portfolio transactions

The investment adviser places orders with broker-dealers for the fund’s portfolio transactions. Purchases and sales of equity securities on a securities exchange or an over-the-counter market are effected through broker-dealers who receive commissions for their services. Generally, commissions relating to securities traded on foreign exchanges will be higher than commissions relating to securities traded on U.S. exchanges and may not be subject to negotiation. Equity securities may also be purchased from underwriters at prices that include underwriting fees. Purchases and sales of fixed-income securities are generally made with an issuer or a primary market-maker acting as principal with no stated brokerage commission. The price paid to an underwriter for fixed-income securities includes underwriting fees. Prices for fixed-income securities in secondary trades usually include undisclosed compensation to the market-maker reflecting the spread between the bid and ask prices for the securities.

In selecting broker-dealers, the investment adviser strives to obtain “best execution” (the most favorable total price reasonably attainable under the circumstances) for the fund’s portfolio transactions, taking into account a variety of factors. These factors include the size and type of transaction, the nature and character of the markets for the security to be purchased or sold, the cost, quality, likely speed and reliability of the executions, the broker-dealer’s or execution venue’s ability to offer liquidity and anonymity and the potential for minimizing market impact. The investment adviser considers these factors, which involve qualitative judgments, when selecting broker-dealers and execution venues for fund portfolio transactions. The investment adviser views best execution as a process that should be evaluated over time as part of an overall relationship with particular broker-dealer firms. The fund does not consider the investment adviser as having an obligation to obtain the lowest commission rate available for a portfolio transaction to the exclusion of price, service and qualitative considerations.

The investment adviser may execute portfolio transactions with broker-dealers who provide certain brokerage and/or investment research services to it, but only when in the investment adviser’s judgment the broker-dealer is capable of providing best execution for that transaction. The receipt of these services permits the investment adviser to supplement its own research and analysis and makes available the views of, and information from, individuals and the research staffs of other firms. Such views and information may be provided in the form of written reports, telephone contacts and meetings with securities analysts. These services may include, among other things, reports and other communications with respect to individual companies, industries, countries and regions, economic, political and legal developments, as well as scheduling meetings with corporate executives and seminars and conferences related to relevant subject matters. The investment adviser considers these services to be supplemental to its own internal research efforts and therefore the receipt of investment research from broker-dealers does not tend to reduce the expenses involved in the investment adviser’s research efforts. If broker-dealers were to discontinue providing such services it is unlikely the investment adviser would attempt to replicate them on its own, in part because they would then no longer provide an independent, supplemental viewpoint. Nonetheless, if it were to attempt to do so, the investment adviser would incur substantial additional costs. Research services that the investment adviser receives from broker-dealers may be used by the investment adviser in servicing the fund and other funds and accounts that it advises; however, not all such services will necessarily benefit the fund.

The investment adviser may pay commissions in excess of what other broker-dealers might have charged, including on an execution-only basis, for certain portfolio transactions in recognition of brokerage and/or investment research services provided by a broker-dealer. In this regard, the investment adviser has adopted a brokerage allocation procedure consistent with the requirements of Section 28(e) of the U.S. Securities Exchange Act of 1934. Section 28(e) permits an investment adviser to cause an account to pay a higher commission to a broker-dealer that provides certain brokerage and/or investment research services to the investment adviser, if the investment adviser makes a good

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faith determination that such commissions are reasonable in relation to the value of the services provided by such broker-dealer to the investment adviser in terms of that particular transaction or the investment adviser’s overall responsibility to the fund and other accounts that it advises. Certain brokerage and/or investment research services may not necessarily benefit all accounts paying commissions to each such broker-dealer; therefore, the investment adviser assesses the reasonableness of commissions in light of the total brokerage and investment research services provided by each particular broker-dealer.

In accordance with its internal brokerage allocation procedure, each equity investment division of the investment adviser periodically assesses the brokerage and investment research services provided by each broker-dealer from which it receives such services. Using its judgment, each equity investment division of the investment adviser provides its trading desks with information regarding the relative value of services provided by particular broker-dealers. Neither the investment adviser nor the fund incurs any obligation to any broker-dealer to pay for research by generating trading commissions. As part of its ongoing relationships with broker-dealers, the investment adviser routinely meets with firms, typically at the firm’s request, to discuss the level and quality of the brokerage and research services provided, as well as the perceived value and cost of such services. In valuing the brokerage and investment research services the investment adviser receives from broker-dealers in connection with its good faith determination of reasonableness, the investment adviser does not attribute a dollar value to such services, but rather takes various factors into consideration, including the quantity, quality and usefulness of the services to the investment adviser.

The investment adviser seeks, on an ongoing basis, to determine what the reasonable levels of commission rates are in the marketplace. The investment adviser takes various considerations into account when evaluating such reasonableness, including, (a) rates quoted by broker-dealers, (b) the size of a particular transaction in terms of the number of shares and dollar amount, (c) the complexity of a particular transaction, (d) the nature and character of the markets on which a particular trade takes place, (e) the ability of a broker-dealer to provide anonymity while executing trades, (f) the ability of a broker-dealer to execute large trades while minimizing market impact, (g) the extent to which a broker-dealer has put its own capital at risk, (h) the level and type of business done with a particular broker-dealer over a period of time, (i) historical commission rates, and (j) commission rates that other institutional investors are paying.

When executing portfolio transactions in the same equity security for the funds and accounts, or portions of funds and accounts, over which the investment adviser, through its equity investment divisions, has investment discretion, each of the investment divisions normally aggregates its respective purchases or sales and executes them as part of the same transaction or series of transactions. When executing portfolio transactions in the same fixed-income security for the fund and the other funds or accounts over which it or one of its affiliated companies has investment discretion, the investment adviser normally aggregates such purchases or sales and executes them as part of the same transaction or series of transactions. The objective of aggregating purchases and sales of a security is to allocate executions in an equitable manner among the funds and other accounts that have concurrently authorized a transaction in such security.

The investment adviser may place orders for the fund’s portfolio transactions with broker-dealers who have sold shares of the funds managed by the investment adviser or its affiliated companies; however, it does not consider whether a broker-dealer has sold shares of the funds managed by the investment adviser or its affiliated companies when placing any such orders for the fund’s portfolio transactions.

Forward currency contracts are traded directly between currency traders (usually large commercial banks) and their customers. The cost to the fund of engaging in such contracts varies with factors such as the currency involved, the length of the contract period and the market conditions then prevailing. Because such contracts are entered into on a principal basis, their prices usually include undisclosed compensation to the market maker reflecting the spread between the bid and ask prices for the

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contracts. The fund may incur additional fees in connection with the purchase or sale of certain contracts.

No brokerage commissions were paid by the fund on portfolio transactions for the fiscal years ended August 31, 2013, 2012 and 2011.

The fund is required to disclose information regarding investments in the securities of its “regular” broker-dealers (or parent companies of its regular broker-dealers) that derive more than 15% of their revenue from broker-dealer, underwriter or investment adviser activities. A regular broker-dealer is (a) one of the 10 broker-dealers that received from the fund the largest amount of brokerage commissions by participating, directly or indirectly, in the fund’s portfolio transactions during the fund’s most recently completed fiscal year; (b) one of the 10 broker-dealers that engaged as principal in the largest dollar amount of portfolio transactions of the fund during the fund’s most recently completed fiscal year; or (c) one of the 10 broker-dealers that sold the largest amount of securities of the fund during the fund’s most recently completed fiscal year.

At the end of the fund’s most recently completed fiscal year, the fund’s regular broker-dealers included Goldman Sachs & Co., Citigroup Global Markets Inc., Morgan Stanley and UBS AG. At the end of the fund’s most recently completed fiscal year, the fund held debt securities of Goldman Sachs Group, Inc. in the amount of $50,773,000, Citigroup Inc. in the amount of $48,277,000, Morgan Stanley in the amount of $48,256,000 and UBS AG in the amount of $19,136,000.

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Disclosure of portfolio holdings

The fund’s investment adviser, on behalf of the fund, has adopted policies and procedures with respect to the disclosure of information about fund portfolio securities. These policies and procedures have been reviewed by the fund’s board of trustees, and compliance will be periodically assessed by the board in connection with reporting from the fund’s Chief Compliance Officer.

Under these policies and procedures, the fund’s complete list of portfolio holdings available for public disclosure, dated as of the end of each calendar quarter, is permitted to be posted on the American Funds website no earlier than the 10th day after such calendar quarter. In practice, the publicly disclosed portfolio is typically posted on the American Funds website within 30 days after the end of the calendar quarter. The publicly disclosed portfolio may exclude certain securities when deemed to be in the best interest of the fund as permitted by applicable regulations. In addition, the fund’s list of top 10 equity portfolio holdings measured by percentage of net assets, dated as of the end of each calendar month, is permitted to be posted on the American Funds website no earlier than the 10th day after such month. Such portfolio holdings information may be disclosed to any person pursuant to an ongoing arrangement to disclose portfolio holdings information to such person no earlier than one day after the day on which the information is posted on the American Funds website.

The fund’s custodian, outside counsel, auditor, financial printers, proxy voting service providers, pricing information vendors, consultants or agents operating under a contract with the investment adviser or its affiliates, co-litigants (such as in connection with a bankruptcy proceeding related to a fund holding) and certain other third parties described below, each of which requires portfolio holdings information for legitimate business and fund oversight purposes, may receive fund portfolio holdings information earlier. See the “General information” section in this statement of additional information for further information about the fund’s custodian, outside counsel and auditor.

The fund’s portfolio holdings, dated as of the end of each calendar month, are made available to up to 20 key broker-dealer relationships with research departments to help them evaluate the fund for eligibility on approved lists or in model portfolios. These firms include certain of those listed under the “Other compensation to dealers” section of this statement of additional information and certain broker-dealer firms that offer trading platforms for registered investment advisers. Monthly holdings may be provided to these intermediaries no earlier than the 10th day after the end of the calendar month. In practice, monthly holdings are provided within 30 days after the end of the calendar month. Holdings may also be disclosed more frequently to certain statistical and data collection agencies including Morningstar, Lipper, Inc., Value Line, Vickers Stock Research, Bloomberg, Overlap and Thomson Financial Research.

Affiliated persons of the fund, including officers of the fund and employees of the investment adviser and its affiliates, who receive portfolio holdings information are subject to restrictions and limitations on the use and handling of such information pursuant to applicable codes of ethics, including requirements not to trade in securities based on confidential and proprietary investment information, to maintain the confidentiality of such information, and to pre-clear securities trades and report securities transactions activity, as applicable. For more information on these restrictions and limitations, please see the “Code of ethics” section in this statement of additional information and the Code of Ethics. Third-party service providers of the fund and other entities, as described in this statement of additional information, receiving such information are subject to confidentiality obligations. When portfolio holdings information is disclosed other than through the American Funds website to persons not affiliated with the fund, such persons will be bound by agreements (including confidentiality agreements) or fiduciary or other obligations that restrict and limit their use of the information to legitimate business uses only. None of the fund, its investment adviser or any of their affiliates receives compensation or other consideration in connection with the disclosure of information about portfolio securities.

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Subject to board policies, the authority to disclose a fund’s portfolio holdings, and to establish policies with respect to such disclosure, resides with the appropriate investment-related committees of the fund’s investment adviser. In exercising their authority, the committees determine whether disclosure of information about the fund’s portfolio securities is appropriate and in the best interest of fund shareholders. The investment adviser has implemented policies and procedures to address conflicts of interest that may arise from the disclosure of fund holdings. For example, the investment adviser’s code of ethics specifically requires, among other things, the safeguarding of information about fund holdings and contains prohibitions designed to prevent the personal use of confidential, proprietary investment information in a way that would conflict with fund transactions. In addition, the investment adviser believes that its current policy of not selling portfolio holdings information and not disclosing such information to unaffiliated third parties until such holdings have been made public on the American Funds website (other than to certain fund service providers and other third parties for legitimate business and fund oversight purposes) helps reduce potential conflicts of interest between fund shareholders and the investment adviser and its affiliates.

The fund’s investment adviser and its affiliates provide investment advice to clients other than the fund that have investment objectives that may be substantially similar to those of the fund. These clients also may have portfolios consisting of holdings substantially similar to those of the fund and generally have access to current portfolio holdings information for their accounts. These clients do not owe the fund’s investment adviser or the fund a duty of confidentiality with respect to disclosure of their portfolio holdings.

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Price of shares

Shares are purchased at the offering price or sold at the net asset value price next determined after the purchase or sell order is received by the fund or the Transfer Agent provided that your request contains all information and legal documentation necessary to process the transaction. The Transfer Agent may accept written orders for the sale of fund shares on a future date. These orders are subject to the Transfer Agent’s policies, which generally allow shareholders to provide a written request to sell shares at the net asset value on a specified date no more than five business days after receipt of the order by the Transfer Agent. Any request to sell shares on a future date will be rejected if the request is not in writing, if the requested transaction date is more than five business days after the Transfer Agent receives the request or if the request does not contain all information and legal documentation necessary to process the transaction.

The offering or net asset value price is effective for orders received prior to the time of determination of the net asset value and, in the case of orders placed with dealers or their authorized designees, accepted by the Principal Underwriter, the Transfer Agent, a dealer or any of their designees. In the case of orders sent directly to the fund or the Transfer Agent, an investment dealer should be indicated. The dealer is responsible for promptly transmitting purchase and sell orders to the Principal Underwriter.

Orders received by the investment dealer or authorized designee, the Transfer Agent or the fund after the time of the determination of the net asset value will be entered at the next calculated offering price. Note that investment dealers or other intermediaries may have their own rules about share transactions and may have earlier cut-off times than those of the fund. For more information about how to purchase through your intermediary, contact your intermediary directly.

Prices that appear in the newspaper do not always indicate prices at which you will be purchasing and redeeming shares of the fund, since such prices generally reflect the previous day’s closing price, while purchases and redemptions are made at the next calculated price. The price you pay for shares, the offering price, is based on the net asset value per share, which is calculated once daily as of approximately 4 p.m. New York time, which is the normal close of trading on the New York Stock Exchange, each day the New York Stock Exchange is open. If, for example, the New York Stock Exchange closes at 1 p.m. New York time, the fund’s share price would still be determined as of 4 p.m. New York time. In such example, portfolio securities traded on the New York Stock Exchange would be valued at their closing prices unless the investment adviser determines that a fair value adjustment is appropriate due to subsequent events. The New York Stock Exchange is currently closed on weekends and on the following holidays: New Year’s Day; Martin Luther King, Jr. Day; Presidents’ Day; Good Friday; Memorial Day; Independence Day; Labor Day; Thanksgiving; and Christmas Day. Each share class of the fund has a separately calculated net asset value (and share price).

All portfolio securities of funds managed by Capital Research and Management Company (other than American Funds Money Market Fund®) are valued, and the net asset values per share for each share class are determined, as indicated below. The fund follows standard industry practice by typically reflecting changes in its holdings of portfolio securities on the first business day following a portfolio trade.

Equity securities, including depositary receipts, are generally valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market on which the security trades.

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Fixed-income securities, including short-term securities, are generally valued at prices obtained from one or more pricing vendors. The pricing vendors base prices on, among other things, benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, underlying equity of the issuer, interest rate volatilities, 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, prepayment information, default rates, delinquency and loss assumptions, financial or collateral characteristics or performance, credit enhancements, liquidation value calculations, specific deal information and other reference data. The fund’s investment adviser performs certain checks on vendor prices prior to calculation of the fund’s net asset value. When the 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.

Securities with both fixed-income and equity characteristics (e.g., convertible bonds, preferred stocks, units comprised of more than one type of security, etc.), or equity securities traded principally among fixed-income dealers, are generally valued in the manner described above for either equity or fixed-income securities, depending on which method is deemed most appropriate by the investment adviser.

Forward currency contracts are valued at the mean of representative quoted bid and ask prices, generally based on prices supplied by one or more pricing vendors.

Assets or liabilities initially expressed in terms of currencies other than U.S. dollars are translated prior to the next determination of the net asset value of the fund’s shares into U.S. dollars at the prevailing market rates.

Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the investment adviser are valued at fair value as determined in good faith under fair value guidelines adopted by authority of the fund’s board. Subject to board oversight, the fund’s board has delegated the obligation to make fair valuation determinations to a valuation committee established by the fund’s investment adviser. The board receives regular reports describing fair-valued securities and the valuation methods used.

The valuation committee has adopted guidelines and procedures (consistent with SEC rules and guidance) to consider certain relevant principles and factors when making all fair value determinations. As a general principle, securities lacking readily available market quotations, or that have quotations that are considered unreliable by the investment adviser, are valued in good faith by the valuation committee based upon what the fund might reasonably expect to receive upon their current sale. 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. The valuation committee 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.

Each class of shares represents interests in the same portfolio of investments and is identical in all respects to each other class, except for differences relating to distribution, service and other charges and expenses, certain voting rights, differences relating to eligible investors, the designation of each class of shares, conversion features and exchange privileges. Expenses attributable to the fund, but not to a particular class of shares, are borne by each class pro rata based on relative aggregate net

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assets of the classes. Expenses directly attributable to a class of shares are borne by that class of shares. Liabilities attributable to particular share classes, such as liabilities for repurchase of fund shares, are deducted from total assets attributable to such share classes.

Net assets so obtained for each share class are then divided by the total number of shares outstanding of that share class, and the result, rounded to the nearest cent, is the net asset value per share for that class.

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Taxes and distributions

Disclaimer: Some of the following information may not apply to certain shareholders, including those holding fund shares in a tax-favored account, such as a retirement plan or education savings account. Shareholders should consult their tax advisors about the application of federal, state and local tax law in light of their particular situation.

Taxation as a regulated investment company — The fund intends to qualify each year as a “regulated investment company” under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”), so that it will not be liable for federal tax on income and capital gains distributed to shareholders. In order to qualify as a regulated investment company, and avoid being subject to federal income taxes, the fund intends to distribute substantially all of its net investment income and realized net capital gains on a fiscal year basis, and intends to comply with other tests applicable to regulated investment companies under Subchapter M.

The Code includes savings provisions allowing the fund to cure inadvertent failures of certain qualification tests required under Subchapter M. However, should the fund fail to qualify under Subchapter M, the fund would be subject to federal, and possibly state, corporate taxes on its taxable income and gains, and distributions to shareholders would be taxed as dividend income to the extent of the fund’s earnings and profits.

Amounts not distributed by the fund on a timely basis in accordance with a calendar year distribution requirement may be subject to a nondeductible 4% excise tax. Unless an applicable exception applies, to avoid the tax, the fund must distribute during each calendar year an amount equal to the sum of (1) at least 98% of its ordinary income (not taking into account any capital gains or losses) for the calendar year, (2) at least 98.2% of its capital gains in excess of its capital losses for the twelve month period ending on October 31, and (3) all ordinary income and capital gains for previous years that were not distributed during such years.

Dividends paid by the fund from ordinary income or from an excess of net short-term capital gain over net long-term capital loss are taxable to shareholders as ordinary income dividends. For corporate shareholders, a portion of the fund’s ordinary income dividends may be eligible for the 70% deduction for dividends received by corporations to the extent the fund’s income consists of dividends paid by U.S. corporations. This deduction does not include dividends received from non-U.S. corporations and dividends on stocks the fund has not held for more than 45 days during the 90-day period beginning 45 days before the stock became ex-dividend (90 and 180 days for certain preferred stock). Corporate shareholders can only apply the lower rate to the qualified portion of a fund’s dividends if they have held the shares in the fund on which the dividends were paid for the applicable 45 day or 90 day holding period surrounding the ex-dividend date of the fund’s dividends.

The fund may declare a capital gain distribution consisting of the excess of net realized long-term capital gains over net realized short-term capital losses. Net capital gains for a fiscal year are computed by taking into account any capital loss carryforward of the fund. For fund fiscal years beginning on or after December 22, 2010, capital losses may be carried forward indefinitely and retain their character as either short-term or long-term. Under prior law, net capital losses could be carried forward for eight tax years and were treated as short-term capital losses. The fund is required to use capital losses arising in fiscal years beginning on or after December 22, 2010 before using capital losses arising in fiscal years prior to December 22, 2010.

The fund may retain a portion of net capital gain for reinvestment and may elect to treat such capital gain as having been distributed to shareholders of the fund. Shareholders may receive a credit for the tax that the fund paid on such undistributed net capital gain and would increase the basis in their

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shares of the fund by the difference between the amount of includible gains and the tax deemed paid by the shareholder.

Distributions of net capital gain that the fund properly designates as a capital gain distribution generally will be taxable as long-term capital gain, regardless of the length of time the shares of the fund have been held by a shareholder. Any loss realized upon the redemption of shares held at the time of redemption for six months or less from the date of their purchase will be treated as a long-term capital loss to the extent of any capital gain distributions (including any undistributed amounts treated as distributed capital gains, as described above) during such six-month period.

Capital gain distributions by the fund result in a reduction in the net asset value of the fund’s shares. Investors should consider the tax implications of buying shares just prior to a capital gain distribution. The price of shares purchased at that time includes the amount of the forthcoming distribution. Those purchasing just prior to a distribution will subsequently receive a partial return of their investment capital upon payment of the distribution, which will be taxable to them.

Redemptions and exchanges of fund shares — Redemptions of shares, including exchanges for shares of other American Funds, may result in federal, state and local tax consequences (gain or loss) to the shareholder.

Any loss realized on a redemption or exchange of shares of the fund will be disallowed to the extent substantially identical shares are reacquired within the 61-day period beginning 30 days before and ending 30 days after the shares are disposed of. Any loss disallowed under this rule will be added to the shareholder’s tax basis in the new shares purchased.

If a shareholder exchanges or otherwise disposes of shares of the fund within 90 days of having acquired such shares, and if, as a result of having acquired those shares, the shareholder subsequently pays a reduced or no sales charge for shares of the fund, or of a different fund acquired before January 31^st of the year following the year the shareholder exchanged or otherwise disposed of the original fund shares, the sales charge previously incurred in acquiring the fund’s shares will not be taken into account (to the extent such previous sales charges do not exceed the reduction in sales charges) for the purposes of determining the amount of gain or loss on the exchange, but will be treated as having been incurred in the acquisition of such other fund(s).

Tax consequences of investments in non-U.S. securities — Dividend and interest income received by the fund from sources outside the United States may be subject to withholding and other taxes imposed by such foreign jurisdictions. Tax conventions between certain countries and the United States, however, may reduce or eliminate these foreign taxes. Some foreign countries impose taxes on capital gains with respect to investments by foreign investors.

If more than 50% of the value of the total assets of the fund at the close of the taxable year consists of securities of foreign corporations, the fund may elect to pass through to shareholders the foreign taxes paid by the fund. If such an election is made, shareholders may claim a credit or deduction on their federal income tax returns for, and will be required to treat as part of the amounts distributed to them, their pro rata portion of qualified taxes paid by the fund to foreign countries. The application of the foreign tax credit depends upon the particular circumstances of each shareholder.

Foreign currency gains and losses, including the portion of gain or loss on the sale of debt securities attributable to fluctuations in foreign exchange rates, are generally taxable as ordinary income or loss. These gains or losses may increase or decrease the amount of dividends payable by the fund to shareholders. A fund may elect to treat gain and loss on certain foreign currency contracts as capital gain and loss instead of ordinary income or loss.

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If the fund invests in stock of certain passive foreign investment companies (PFICs), the fund intends to mark-to-market these securities and recognize any gains at the end of its fiscal and excise tax years. Deductions for losses are allowable only to the extent of any previously recognized gains. Both gains and losses will be treated as ordinary income or loss, and the fund is required to distribute any resulting income. If the fund is unable to identify an investment as a PFIC security and thus does not make a timely mark-to-market election, the fund may be subject to adverse tax consequences.

Other tax considerations — After the end of each calendar year, individual shareholders holding fund shares in taxable accounts will receive a statement of the federal income tax status of all distributions. Shareholders of the fund also may be subject to state and local taxes on distributions received from the fund.

For fund shares acquired on or after January 1, 2012, the fund is required to report cost basis information for redemptions, including exchanges, to both shareholders and the IRS.

Shareholders may obtain more information about cost basis online at americanfunds.com/costbasis.

Under the backup withholding provisions of the Code, the fund generally will be required to withhold federal income tax on all payments made to a shareholder if the shareholder either does not furnish the fund with the shareholder’s correct taxpayer identification number or fails to certify that the shareholder is not subject to backup withholding. Backup withholding also applies if the IRS notifies the shareholder or the fund that the taxpayer identification number provided by the shareholder is incorrect or that the shareholder has previously failed to properly report interest or dividend income.

The foregoing discussion of U.S. federal income tax law relates solely to the application of that law to U.S. persons (i.e., U.S. citizens and legal residents and U.S. corporations, partnerships, trusts and estates). Each shareholder who is not a U.S. person should consider the U.S. and foreign tax consequences of ownership of shares of the fund, including the possibility that such a shareholder may be subject to U.S. withholding taxes.

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Unless otherwise noted, all references in the following pages to Class A, B, C or F-1 shares also refer to the corresponding Class 529-A, 529-B, 529-C or 529-F-1 shares. Class 529 shareholders should also refer to the applicable program description for information on policies and services specifically relating to these accounts. Shareholders holding shares through an eligible retirement plan should contact their plan’s administrator or recordkeeper for information regarding purchases, sales and exchanges.

Purchase and exchange of shares

Purchases by individuals — As described in the prospectus, you may generally open an account and purchase fund shares by contacting a financial advisor or investment dealer authorized to sell the fund’s shares. You may make investments by any of the following means:

Contacting your financial advisor — Deliver or mail a check to your financial advisor.

By mail — For initial investments, you may mail a check, made payable to the fund, directly to the address indicated on the account application. Please indicate an investment dealer on the account application. You may make additional investments by filling out the “Account Additions” form at the bottom of a recent transaction confirmation and mailing the form, along with a check made payable to the fund, using the envelope provided with your confirmation.

The amount of time it takes for us to receive regular U.S. postal mail may vary and there is no assurance that we will receive such mail on the day you expect. Mailing addresses for regular U.S. postal mail can be found in the prospectus. To send investments or correspondence to us via overnight mail or courier service, use either of the following addresses:

American Funds

12711 North Meridian Street

Carmel, IN 46032-9181

American Funds

5300 Robin Hood Road

Norfolk, VA 23513-2407

By telephone — Using the American FundsLine. Please see the “Shareholder account services and privileges” section of this statement of additional information for more information regarding this service.

By Internet — Using americanfunds.com. Please see the “Shareholder account services and privileges” section of this statement of additional information for more information regarding this service.

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By wire — If you are making a wire transfer, instruct your bank to wire funds to:

Wells Fargo Bank

ABA Routing No. 121000248

Account No. 4600-076178

Your bank should include the following information when wiring funds:

For credit to the account of:

American Funds Service Company

(fund’s name)

For further credit to:

(shareholder’s fund account number)

(shareholder’s name)

You may contact American Funds Service Company at (800) 421-4225 if you have questions about making wire transfers.

Other purchase information — Class 529 shares may be purchased only through CollegeAmerica by investors establishing qualified higher education savings accounts. Class 529-E shares may be purchased only by investors participating in CollegeAmerica through an eligible employer plan. The American Funds state tax-exempt funds are qualified for sale only in certain jurisdictions, and tax-exempt funds in general should not serve as retirement plan investments. In addition, the fund and the Principal Underwriter reserve the right to reject any purchase order.

Class R-5 and R-6 shares may be made available to certain charitable foundations organized and maintained by The Capital Group Companies, Inc. or its affiliates.

Class R-5 and R-6 shares may also be made available to the Virginia College Savings Plan for use in the Virginia Education Savings Trust and the Virginia Prepaid Education Program and other registered investment companies approved by the fund’s investment adviser or distributor. Class R-6 shares are also available to other post employment benefits plans.

Class F-2 shares may be made available to other registered investment companies approved by the fund.

Class C shares of the fund may be acquired only by exchanging from Class C shares of other American Funds. Direct purchases of Class C shares of the fund are not permitted.

Purchase minimums and maximums — All investments are subject to the purchase minimums and maximums described in the prospectus. As noted in the prospectus, purchase minimums may be waived or reduced in certain cases.

In the case of American Funds non-tax-exempt funds, the initial purchase minimum of $25 may be waived for the following account types:

Payroll deduction retirement plan accounts (such as, but not limited to, 403(b), 401(k), SIMPLE IRA, SARSEP and deferred compensation plan accounts); and

Employer-sponsored CollegeAmerica accounts.

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The following account types may be established without meeting the initial purchase minimum:

Retirement accounts that are funded with employer contributions; and

Accounts that are funded with monies set by court decree.

The following account types may be established without meeting the initial purchase minimum, but shareholders wishing to invest in two or more funds must meet the normal initial purchase minimum of each fund:

Accounts that are funded with (a) transfers of assets, (b) rollovers from retirement plans, (c) rollovers from 529 college savings plans or (d) required minimum distribution automatic exchanges; and

American Funds Money Market Fund accounts registered in the name of clients of Capital Guardian Trust Company’s Capital Group Private Client Services division.

Certain accounts held on the fund’s books, known as omnibus accounts, contain multiple underlying accounts that are invested in shares of the fund. These underlying accounts are maintained by entities such as financial intermediaries and are subject to the applicable initial purchase minimums as described in the prospectus and this statement of additional information. However, in the case where the entity maintaining these accounts aggregates the accounts’ purchase orders for fund shares, such accounts are not required to meet the fund’s minimum amount for subsequent purchases.

Exchanges — You may only exchange shares into other American Funds within the same share class. However, exchanges from Class A shares of American Funds Money Market Fund may be made to Class C shares of other American Funds for dollar cost averaging purposes. Exchanges are not permitted from Class A shares of American Funds Money Market Fund to Class C shares of American Funds Short-Term Tax-Exempt Bond Fund, Intermediate Bond Fund of America, Limited Term Tax-Exempt Bond Fund of America or Short-Term Bond Fund of America. Exchange purchases are subject to the minimum investment requirements of the fund purchased and no sales charge generally applies. However, exchanges of shares from American Funds Money Market Fund are subject to applicable sales charges, unless the American Funds Money Market Fund shares were acquired by an exchange from a fund having a sales charge, or by reinvestment or cross-reinvestment of dividends or capital gain distributions. Exchanges of Class F shares generally may only be made through fee-based programs of investment firms that have special agreements with the fund’s distributor and certain registered investment advisors.

You may exchange shares of other classes by contacting the Transfer Agent, by contacting your investment dealer or financial advisor, by using American FundsLine or americanfunds.com, or by telephoning (800) 421-4225 toll-free, or faxing (see “American Funds Service Company service areas” in the prospectus for the appropriate fax numbers) the Transfer Agent. For more information, see “Shareholder account services and privileges” in this statement of additional information. These transactions have the same tax consequences as ordinary sales and purchases.

Shares held in employer-sponsored retirement plans may be exchanged into other American Funds by contacting your plan administrator or recordkeeper. Exchange redemptions and purchases are processed simultaneously at the share prices next determined after the exchange order is received (see “Price of shares” in this statement of additional information).

Conversion — Currently, Class C shares of the fund automatically convert to Class F-1 shares in the month of the 10-year anniversary of the purchase date. The board of trustees of the fund reserves the right at any time, without shareholder approval, to amend the conversion feature of the Class C shares, including without limitation, providing for conversion into a different share class or for no conversion.

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In making its decision, the board of trustees will consider, among other things, the effect of any such amendment on shareholders.

Frequent trading of fund shares — As noted in the prospectus, certain redemptions may trigger a purchase block lasting 30 calendar days under the fund’s “purchase blocking policy.” Under this policy, systematic redemptions will not trigger a purchase block and systematic purchases will not be prevented if the entity maintaining the shareholder account is able to identify the transaction as a systematic redemption or purchase. For purposes of this policy, systematic redemptions include, for example, regular periodic automatic redemptions and statement of intention escrow share redemptions. Systematic purchases include, for example, regular periodic automatic purchases and automatic reinvestments of dividends and capital gain distributions. Generally, purchases and redemptions will not be considered “systematic” unless the transaction is prescheduled for a specific date.

Other potentially abusive activity — In addition to implementing purchase blocks, American Funds Service Company will monitor for other types of activity that could potentially be harmful to the American Funds — for example, short-term trading activity in multiple funds. When identified, American Funds Service Company will request that the shareholder discontinue the activity. If the activity continues, American Funds Service Company will freeze the shareholder account to prevent all activity other than redemptions of fund shares.

Moving between share classes

If you wish to “move” your investment between share classes (within the same fund or between different funds), we generally will process your request as an exchange of the shares you currently hold for shares in the new class or fund. Below is more information about how sales charges are handled for various scenarios.

Exchanging Class B shares for Class A shares — If you exchange Class B shares for Class A shares during the contingent deferred sales charge period you are responsible for paying any applicable deferred sales charges attributable to those Class B shares, but you will not be required to pay a Class A sales charge. If, however, you exchange your Class B shares for Class A shares after the contingent deferred sales charge period, you are responsible for paying any applicable Class A sales charges.

Exchanging Class C shares for Class A shares — If you exchange Class C shares for Class A shares, you are still responsible for paying any Class C contingent deferred sales charges and applicable Class A sales charges.

Exchanging Class C shares for Class F shares — If you are part of a qualified fee-based program and you wish to exchange your Class C shares for Class F shares to be held in the program, you are still responsible for paying any applicable Class C contingent deferred sales charges.

Exchanging Class F shares for Class A shares — You can exchange Class F shares held in a qualified fee-based program for Class A shares without paying an initial Class A sales charge if you are leaving or have left the fee-based program. You can exchange Class F shares received in a conversion from Class C shares for Class A shares at any time without paying an initial Class A sales charge if you notify American Funds Service Company of the conversion when you make your request. If you have already redeemed your Class F shares, the foregoing requirements apply and you must purchase Class A shares within 90 days after redeeming your Class F shares to receive the Class A shares without paying an initial Class A sales charge.

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Exchanging Class A shares for Class F shares — If you are part of a qualified fee-based program and you wish to exchange your Class A shares for Class F shares to be held in the program, any Class A sales charges (including contingent deferred sales charges) that you paid or are payable will not be credited back to your account.

Exchanging Class A shares for Class R shares — Provided it is eligible to invest in Class R shares, a retirement plan currently invested in Class A shares may exchange its shares for Class R shares. Any Class A sales charges that the retirement plan previously paid will not be credited back to the plan’s account.

Exchanging Class F-1 shares for Class F-2 shares — If you are part of a qualified fee-based program that offers Class F-2 shares, you may exchange your Class F-1 shares for Class F-2 shares to be held in the program.

Moving between other share classes — If you desire to move your investment between share classes and the particular scenario is not described in this statement of additional information, please contact American Funds Service Company at (800) 421-4225 for more information.

Non-reportable transactions — Automatic conversions described in the prospectus will be non-reportable for tax purposes. In addition, an exchange of shares from one share class of a fund to another share class of the same fund will be treated as a non-reportable exchange for tax purposes, provided that the exchange request is received in writing by American Funds Service Company and processed as a single transaction. However, a movement between a 529 share class and a non-529 share class of the same fund will be reportable.

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Sales charges

Class A purchases

Purchases by certain 403(b) plans

A 403(b) plan may not invest in Class A or C shares unless such plan was invested in Class A or C shares before January 1, 2009.

Participant accounts of a 403(b) plan that were treated as an individual-type plan for sales charge purposes before January 1, 2009, may continue to be treated as accounts of an individual-type plan for sales charge purposes. Participant accounts of a 403(b) plan that were treated as an employer-sponsored plan for sales charge purposes before January 1, 2009, may continue to be treated as accounts of an employer-sponsored plan for sales charge purposes. Participant accounts of a 403(b) plan that is established on or after January 1, 2009, are treated as accounts of an employer-sponsored plan for sales charge purposes.

Purchases by SEP plans and SIMPLE IRA plans

Participant accounts in a Simplified Employee Pension (SEP) plan or a Savings Incentive Match Plan for Employees of Small Employers IRA (SIMPLE IRA) plan will be aggregated together for Class A sales charge purposes if the SEP plan or SIMPLE IRA plan was established after November 15, 2004, by an employer adopting a prototype plan produced by American Funds Distributors, Inc. In the case where the employer adopts any other plan (including, but not limited to, an IRS model agreement), each participant’s account in the plan will be aggregated with the participant’s own personal investments that qualify under the aggregation policy. A SEP plan or SIMPLE IRA plan with a certain method of aggregating participant accounts as of November 15, 2004, may continue with that method so long as the employer has not modified the plan document since that date.

Other purchases

Pursuant to a determination of eligibility by a vice president or more senior officer of the Capital Research and Management Company Fund Administration Unit, or by his or her designee, Class A shares of the American Funds stock, stock/bond and bond funds may be sold at net asset value to:

(1)

current or retired directors, trustees, officers and advisory board members of, and certain lawyers who provide services to, the funds managed by Capital Research and Management Company, current or retired employees and partners of The Capital Group Companies, Inc. and its affiliated companies, certain family members of the above persons, and trusts or plans primarily for such persons;

(2)

currently registered representatives and assistants directly employed by such representatives, retired registered representatives with respect to accounts established while active, or full-time employees (collectively, “Eligible Persons”) (and their (a) spouses or equivalents if recognized under local law, (b) parents and children, including parents and children in step and adoptive relationships, sons-in-law and daughters-in-law, and (c) parents-in-law, if the Eligible Persons or the spouses, children or parents of the Eligible Persons are listed in the account registration with the parents-in-law) of dealers who have sales agreements with the Principal Underwriter (or who clear transactions through such dealers), plans for the dealers, and plans that include as participants only the Eligible Persons, their

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	spouses, parents and/or children (these policies are subject to the dealer’s policies and system capabilities);
(3)	currently registered investment advisors (“RIAs”) and assistants directly employed by such RIAs, retired RIAs with respect to accounts established while active, or full-time employees (collectively, “Eligible RIAs”) (and their (a) spouses or equivalents if recognized under local law, (b) parents and children, including parents and children in step and adoptive relationships, sons-in-law and daughters-in-law and (c) parents-in-law, if the Eligible RIAs or the spouses, children or parents of the Eligible RIAs are listed in the account registration with the parents-in-law) of RIA firms that are authorized to sell shares of the funds, plans for the RIA firms, and plans that include as participants only the Eligible RIAs, their spouses, parents and/or children (these policies are subject to the RIA’s policies and system capabilities);
(4)	companies exchanging securities with the fund through a merger, acquisition or exchange offer;
(5)	insurance company separate accounts;
(6)	accounts managed by subsidiaries of The Capital Group Companies, Inc.;
(7)	The Capital Group Companies, Inc. and its affiliated companies;
(8)	an individual or entity with a substantial business relationship with The Capital Group Companies, Inc. or its affiliates, or an individual or entity related or relating to such individual or entity;
(9)	wholesalers and full-time employees directly supporting wholesalers involved in the distribution of insurance company separate accounts whose underlying investments are managed by any affiliate of The Capital Group Companies, Inc.; and
(10)	full-time employees of banks that have sales agreements with the Principal Underwriter, who are solely dedicated to directly supporting the sale of mutual funds.

Shares are offered at net asset value to these persons and organizations due to anticipated economies in sales effort and expense. Once an account is established under this net asset value privilege, additional investments can be made at net asset value for the life of the account.

Transfers to CollegeAmerica — A transfer from the Virginia Prepaid Education ProgramSM or the Virginia Education Savings TrustSM to a CollegeAmerica account will be made with no sales charge. No commission will be paid to the dealer on such a transfer.

Moving between accounts — Investments in certain account types may be moved to other account types without incurring additional Class A sales charges. These transactions include, for example:

redemption proceeds from a non-retirement account (for example, a joint tenant account) used to purchase fund shares in an IRA or other individual-type retirement account;

required minimum distributions from an IRA or other individual-type retirement account used to purchase fund shares in a non-retirement account; and

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death distributions paid to a beneficiary’s account that are used by the beneficiary to purchase fund shares in a different account.

Loan repayments — Repayments on loans taken from a retirement plan or an individual-type retirement account are not subject to sales charges if American Funds Service Company is notified of the repayment.

Dealer commissions and compensation — Commissions (up to 1.00%) are paid to dealers who initiate and are responsible for certain Class A share purchases not subject to initial sales charges. These purchases consist of a) purchases of $1 million or more, b) purchases by employer-sponsored defined contribution-type retirement plans investing $1 million or more or with 100 or more eligible employees, and c) purchases made at net asset value by certain retirement plans, endowments and foundations with assets of $50 million or more. Commissions on such investments (other than IRA rollover assets that roll over at no sales charge under the fund’s IRA rollover policy as described in the prospectus) are paid to dealers at the following rates: 1.00% on amounts of less than $10 million, .50% on amounts of at least $10 million but less than $25 million and .25% on amounts of at least $25 million. Commissions are based on cumulative investments over the life of the account with no adjustment for redemptions, transfers, or market declines. For example, if a shareholder has accumulated investments in excess of $10 million (but less than $25 million) and subsequently redeems all or a portion of the account(s), purchases following the redemption will generate a dealer commission of .50%.

A dealer concession of up to 1% may be paid by the fund under its Class A plan of distribution to reimburse the Principal Underwriter in connection with dealer and wholesaler compensation paid by it with respect to investments made with no initial sales charge.

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Sales charge reductions and waivers

Reducing your Class A sales charge — As described in the prospectus, there are various ways to reduce your sales charge when purchasing Class A shares. Additional information about Class A sales charge reductions is provided below.

Statement of intention — By establishing a statement of intention (the “Statement”), you enter into a nonbinding commitment to purchase shares of the American Funds (excluding American Funds Money Market Fund) over a 13-month period and receive the same sales charge (expressed as a percentage of your purchases) as if all shares had been purchased at once, unless the Statement is upgraded as described below.

The Statement period starts on the date on which your first purchase made toward satisfying the Statement is processed. Your accumulated holdings (as described in the paragraph below titled “Rights of accumulation”) eligible to be aggregated as of the day immediately before the start of the Statement period may be credited toward satisfying the Statement.

You may revise the commitment you have made in your Statement upward at any time during the Statement period. If your prior commitment has not been met by the time of the revision, the Statement period during which purchases must be made will remain unchanged. Purchases made from the date of the revision will receive the reduced sales charge, if any, resulting from the revised Statement. If your prior commitment has been met by the time of the revision, your original Statement will be considered met and a new Statement will be established.

The Statement will be considered completed if the shareholder dies within the 13-month Statement period. Commissions to dealers will not be adjusted or paid on the difference between the Statement amount and the amount actually invested before the shareholder’s death.

When a shareholder elects to use a Statement, shares equal to 5% of the dollar amount specified in the Statement may be held in escrow in the shareholder’s account out of the initial purchase (or subsequent purchases, if necessary) by the Transfer Agent. All dividends and any capital gain distributions on shares held in escrow will be credited to the shareholder’s account in shares (or paid in cash, if requested). If the intended investment is not completed within the specified Statement period the investments made during the statement period will be adjusted to reflect the difference between the sales charge actually paid and the sales charge which would have been paid if the total of such purchases had been made at a single time. Any dealers assigned to the shareholder’s account at the time a purchase was made during the Statement period will receive a corresponding commission adjustment if appropriate.

In addition, if you currently have individual holdings in American Legacy variable annuity contracts or variable life insurance policies that were established on or before March 31, 2007, you may continue to apply purchases under such contracts and policies to a Statement.

Shareholders purchasing shares at a reduced sales charge under a Statement indicate their acceptance of these terms and those in the prospectus with their first purchase.

Aggregation — Qualifying investments for aggregation include those made by you and your “immediate family” as defined in the prospectus, if all parties are purchasing shares for their own accounts and/or:

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individual-type employee benefit plans, such as an IRA, single-participant Keogh-type plan, or a participant account of a 403(b) plan that is treated as an individual-type plan for sales charge purposes (see “Purchases by certain 403(b) plans” under “Sales charges” in this statement of additional information);

SEP plans and SIMPLE IRA plans established after November 15, 2004, by an employer adopting any plan document other than a prototype plan produced by American Funds Distributors, Inc.;

business accounts solely controlled by you or your immediate family (for example, you own the entire business);

trust accounts established by you or your immediate family (for trusts with only one primary beneficiary, upon the trustor’s death the trust account may be aggregated with such beneficiary’s own accounts; for trusts with multiple primary beneficiaries, upon the trustor’s death the trustees of the trust may instruct American Funds Service Company to establish separate trust accounts for each primary beneficiary; each primary beneficiary’s separate trust account may then be aggregated with such beneficiary’s own accounts);

endowments or foundations established and controlled by you or your immediate family; or

529 accounts, which will be aggregated at the account owner level (Class 529-E accounts may only be aggregated with an eligible employer plan).

Individual purchases by a trustee(s) or other fiduciary(ies) may also be aggregated if the investments are:

for a single trust estate or fiduciary account, including employee benefit plans other than the individual-type employee benefit plans described above;

made for two or more employee benefit plans of a single employer or of affiliated employers as defined in the 1940 Act, excluding the individual-type employee benefit plans described above;

for a diversified common trust fund or other diversified pooled account not specifically formed for the purpose of accumulating fund shares;

for nonprofit, charitable or educational organizations, or any endowments or foundations established and controlled by such organizations, or any employer-sponsored retirement plans established for the benefit of the employees of such organizations, their endowments, or their foundations;

for participant accounts of a 403(b) plan that is treated as an employer-sponsored plan for sales charge purposes (see “Purchases by certain 403(b) plans” under “Sales charges” in this statement of additional information), or made for participant accounts of two or more such plans, in each case of a single employer or affiliated employers as defined in the 1940 Act; or

for a SEP or SIMPLE IRA plan established after November 15, 2004, by an employer adopting a prototype plan produced by American Funds Distributors, Inc.

Purchases made for nominee or street name accounts (securities held in the name of an investment dealer or another nominee such as a bank trust department instead of the customer) may not be aggregated with those made for other accounts and may not be aggregated with other nominee or street name accounts unless otherwise qualified as described above.

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Concurrent purchases — As described in the prospectus, you may reduce your Class A sales charge by combining purchases of all classes of shares in the American Funds, as well as applicable holdings in the American Funds Target Date Retirement Series, American Funds Portfolio Series and American Funds College Target Date Series. Shares of American Funds Money Market Fund purchased through an exchange, reinvestment or cross-reinvestment from a fund having a sales charge also qualify. However, direct purchases of American Funds Money Market Fund are excluded. If you currently have individual holdings in American Legacy variable annuity contracts or variable life insurance policies that were established on or before March 31, 2007, you may continue to combine purchases made under such contracts and policies to reduce your Class A sales charge.

Rights of accumulation — Subject to the limitations described in the aggregation policy, you may take into account your accumulated holdings in all share classes of the American Funds, as well as applicable holdings in the American Funds Target Date Retirement Series, American Funds Portfolio Series and American Funds College Target Date Series, to determine your sales charge on investments in accounts eligible to be aggregated. Direct purchases of American Funds Money Market Fund are excluded. Subject to your investment dealer’s or recordkeeper’s capabilities, your accumulated holdings will be calculated as the higher of (a) the current value of your existing holdings (the “market value”) as of the day prior to your American Funds investment or (b) the amount you invested (including reinvested dividends and capital gains, but excluding capital appreciation) less any withdrawals (the “cost value”). Depending on the entity on whose books your account is held, the value of your holdings in that account may not be eligible for calculation at cost value. For example, accounts held in nominee or street name may not be eligible for calculation at cost value and instead may be calculated at market value for purposes of rights of accumulation.

The value of all of your holdings in accounts established in calendar year 2005 or earlier will be assigned an initial cost value equal to the market value of those holdings as of the last business day of 2005. Thereafter, the cost value of such accounts will increase or decrease according to actual investments or withdrawals. You must contact your financial advisor or American Funds Service Company if you have additional information that is relevant to the calculation of the value of your holdings.

When determining your American Funds Class A sales charge, if your investment is not in an employer-sponsored retirement plan, you may also continue to take into account the market value (as of the day prior to your American Funds investment) of your individual holdings in various American Legacy variable annuity contracts and variable life insurance policies that were established on or before March 31, 2007. An employer-sponsored retirement plan may also continue to take into account the market value of its investments in American Legacy Retirement Investment Plans that were established on or before March 31, 2007.

You may not purchase Class C or 529-C shares if such combined holdings cause you to be eligible to purchase Class A or 529-A shares at the $1 million or more sales charge discount rate (i.e. at net asset value).

If you make a gift of American Funds Class A shares, upon your request, you may purchase the shares at the sales charge discount allowed under rights of accumulation of all of your American Funds and applicable American Legacy accounts.

CDSC waivers for Class A, B and C shares — As noted in the prospectus, a contingent deferred sales charge (“CDSC”) may be waived for redemptions due to death or post-purchase disability of a shareholder (this generally excludes accounts registered in the names of trusts and other entities). In the case of joint tenant accounts, if one joint tenant dies, a surviving joint tenant, at the time he or she

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notifies the Transfer Agent of the other joint tenant’s death and removes the decedent’s name from the account, may redeem shares from the account without incurring a CDSC. Redemptions made after the Transfer Agent is notified of the death of a joint tenant will be subject to a CDSC.

In addition, a CDSC may be waived for the following types of transactions, if together they do not exceed 12% of the value of an “account” (defined below) annually (the “12% limit”):

Required minimum distributions taken from retirement accounts upon the shareholder’s attainment of age 70½ (required minimum distributions that continue to be taken by the beneficiary(ies) after the account owner is deceased also qualify for a waiver).

Redemptions through an automatic withdrawal plan (“AWP”) (see “Automatic withdrawals” under “Shareholder account services and privileges” in this statement of additional information). For each AWP payment, assets that are not subject to a CDSC, such as shares acquired through reinvestment of dividends and/or capital gain distributions, will be redeemed first and will count toward the 12% limit. If there is an insufficient amount of assets not subject to a CDSC to cover a particular AWP payment, shares subject to the lowest CDSC will be redeemed next until the 12% limit is reached. Any dividends and/or capital gain distributions taken in cash by a shareholder who receives payments through an AWP will also count toward the 12% limit. In the case of an AWP, the 12% limit is calculated at the time an automatic redemption is first made, and is recalculated at the time each additional automatic redemption is made. Shareholders who establish an AWP should be aware that the amount of a payment not subject to a CDSC may vary over time depending on fluctuations in the value of their accounts. This privilege may be revised or terminated at any time.

For purposes of this paragraph, “account” means your investment in the applicable class of shares of the particular fund from which you are making the redemption.

CDSC waivers are allowed only in the cases listed here and in the prospectus. For example, CDSC waivers will not be allowed on redemptions of Class 529-B and 529-C shares due to termination of CollegeAmerica; a determination by the Internal Revenue Service that CollegeAmerica does not qualify as a qualified tuition program under the Code; proposal or enactment of law that eliminates or limits the tax-favored status of CollegeAmerica; or elimination of the fund by the Virginia College Savings Plan as an option for additional investment within CollegeAmerica.

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Selling shares

The methods for selling (redeeming) shares are described more fully in the prospectus. If you wish to sell your shares by contacting American Funds Service Company directly, any such request must be signed by the registered shareholders. To contact American Funds Service Company via overnight mail or courier service, see “Purchase and exchange of shares.”

A signature guarantee may be required for certain redemptions. In such an event, your signature may be guaranteed by a domestic stock exchange or the Financial Industry Regulatory Authority, bank, savings association or credit union that is an eligible guarantor institution. The Transfer Agent reserves the right to require a signature guarantee on any redemptions.

Additional documentation may be required for sales of shares held in corporate, partnership or fiduciary accounts. You must include with your written request any shares you wish to sell that are in certificate form.

If you sell Class A, B or C shares and request a specific dollar amount to be sold, we will sell sufficient shares so that the sale proceeds, after deducting any applicable CDSC, equals the dollar amount requested.

If you hold multiple American Funds and a CDSC applies to the shares you are redeeming, the CDSC will be calculated based on the applicable class of shares of the particular fund from which you are making the redemption.

Redemption proceeds will not be mailed until sufficient time has passed to provide reasonable assurance that checks or drafts (including certified or cashier’s checks) for shares purchased have cleared (which may take up to 10 business days from the purchase date). Except for delays relating to clearance of checks for share purchases or in extraordinary circumstances (and as permissible under the 1940 Act), sale proceeds will be paid on or before the seventh day following receipt and acceptance of an order. Interest will not accrue or be paid on amounts that represent uncashed distribution or redemption checks.

You may request that redemption proceeds of $1,000 or more from American Funds Money Market Fund be wired to your bank by writing American Funds Service Company. A signature guarantee is required on all requests to wire funds.

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Shareholder account services and privileges

The following services and privileges are generally available to all shareholders. However, certain services and privileges described in the prospectus and this statement of additional information may not be available for Class 529 shareholders or if your account is held with an investment dealer or through an employer-sponsored retirement plan.

Automatic investment plan — An automatic investment plan enables you to make monthly or quarterly investments in the American Funds through automatic debits from your bank account. To set up a plan, you must fill out an account application and specify the amount that you would like to invest and the date on which you would like your investments to occur. The plan will begin within 30 days after your account application is received. Your bank account will be debited on the day or a few days before your investment is made, depending on the bank’s capabilities. The Transfer Agent will then invest your money into the fund you specified on or around the date you specified. If the date you specified falls on a weekend or holiday, your money will be invested on the following business day. However, if the following business day falls in the next month, your money will be invested on the business day immediately preceding the weekend or holiday. If your bank account cannot be debited due to insufficient funds, a stop-payment or the closing of the account, the plan may be terminated and the related investment reversed. You may change the amount of the investment or discontinue the plan at any time by contacting the Transfer Agent.

Automatic reinvestment — Dividends and capital gain distributions are reinvested in additional shares of the same class and fund at net asset value unless you indicate otherwise on the account application. You also may elect to have dividends and/or capital gain distributions paid in cash by informing the fund, the Transfer Agent or your investment dealer. Dividends and capital gain distributions paid to retirement plan shareholders or shareholders of the 529 share classes will be automatically reinvested.

If you have elected to receive dividends and/or capital gain distributions in cash, and the postal or other delivery service is unable to deliver checks to your address of record, or you do not respond to mailings from American Funds Service Company with regard to uncashed distribution checks, your distribution option may be automatically converted to having all dividends and other distributions reinvested in additional shares.

Cross-reinvestment of dividends and distributions — For all share classes, except the 529 classes of shares, you may cross-reinvest dividends and capital gains (distributions) into other American Funds in the same share class at net asset value, subject to the following conditions:

(1) the aggregate value of your account(s) in the fund(s) paying distributions equals or exceeds $5,000 (this is waived if the value of the account in the fund receiving the distributions equals or exceeds that fund’s minimum initial investment requirement);

(2) if the value of the account of the fund receiving distributions is below the minimum initial investment requirement, distributions must be automatically reinvested; and

(3) if you discontinue the cross-reinvestment of distributions, the value of the account of the fund receiving distributions must equal or exceed the minimum initial investment requirement. If you do not meet this requirement within 90 days of notification, the fund has the right to automatically redeem the account.

Automatic exchanges — For all share classes, you may automatically exchange shares of the same class in amounts of $50 or more among any of the American Funds on any day (or preceding business day if the day falls on a nonbusiness day) of each month you designate.

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Automatic withdrawals — Depending on the type of account, for all share classes except R shares, you may automatically withdraw shares from any of the American Funds. You can make automatic withdrawals of $50 or more. You can designate the day of each period for withdrawals and request that checks be sent to you or someone else. Withdrawals may also be electronically deposited to your bank account. The Transfer Agent will withdraw your money from the fund you specify on or around the date you specify. If the date you specified falls on a weekend or holiday, the redemption will take place on the previous business day. However, if the previous business day falls in the preceding month, the redemption will take place on the following business day after the weekend or holiday. You should consult with your advisor or intermediary to determine if your account is eligible for automatic withdrawals.

Withdrawal payments are not to be considered as dividends, yield or income. Generally, automatic investments may not be made into a shareholder account from which there are automatic withdrawals. Withdrawals of amounts exceeding reinvested dividends and distributions and increases in share value would reduce the aggregate value of the shareholder’s account. The Transfer Agent arranges for the redemption by the fund of sufficient shares, deposited by the shareholder with the Transfer Agent, to provide the withdrawal payment specified.

Redemption proceeds from an automatic withdrawal plan are not eligible for reinvestment without a sales charge.

Account statements — Your account is opened in accordance with your registration instructions. Transactions in the account, such as additional investments, will be reflected on regular confirmation statements from the Transfer Agent. Dividend and capital gain reinvestments, purchases through automatic investment plans and certain retirement plans, as well as automatic exchanges and withdrawals, will be confirmed at least quarterly.

American FundsLine and americanfunds.com — You may check your share balance, the price of your shares or your most recent account transaction; redeem shares (up to $125,000 per American Funds shareholder each day) from nonretirement plan accounts; or exchange shares around the clock with American FundsLine or using americanfunds.com. To use American FundsLine, call (800) 325-3590 from a TouchTone™ telephone. Redemptions and exchanges through American FundsLine and americanfunds.com are subject to the conditions noted above and in “Telephone and Internet purchases, redemptions and exchanges” below. You will need your fund number (see the list of the American Funds under the “General information — fund numbers” section in this statement of additional information), personal identification number (generally the last four digits of your Social Security number or other tax identification number associated with your account) and account number.

Generally, all shareholders are automatically eligible to use these services. However, if you are not currently authorized to do so, you may complete an American FundsLink Authorization Form. Once you establish this privilege, you, your financial advisor or any person with your account information may use these services.

Telephone and Internet purchases, redemptions and exchanges — By using the telephone (including American FundsLine) or the Internet (including americanfunds.com), or fax purchase, redemption and/or exchange options, you agree to hold the fund, the Transfer Agent, any of its affiliates or mutual funds managed by such affiliates, and each of their respective directors, trustees, officers, employees and agents harmless from any losses, expenses, costs or liabilities (including attorney fees) that may be incurred in connection with the exercise of these privileges. Generally, all shareholders are automatically eligible to use these services. However, you may elect to opt out of these services by writing the Transfer Agent (you may also reinstate them at any time by writing the Transfer Agent). If the Transfer Agent does not employ reasonable procedures to confirm that the instructions received from any person with appropriate account information are genuine, it and/or the fund may be liable for

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losses due to unauthorized or fraudulent instructions. In the event that shareholders are unable to reach the fund by telephone because of technical difficulties, market conditions or a natural disaster, redemption and exchange requests may be made in writing only.

Checkwriting — You may establish check writing privileges for Class A shares (but not Class 529-A shares) of American Funds Money Market Fund upon meeting the fund’s initial purchase minimum of $1,000. This can be done by using an account application. If you request check writing privileges, you will be provided with checks that you may use to draw against your account. These checks may be made payable to anyone you designate and must be signed by the authorized number of registered shareholders exactly as indicated on your account application.

Redemption of shares — The fund’s declaration of trust permits the fund to direct the Transfer Agent to redeem the shares of any shareholder for their then current net asset value per share if at such time the shareholder of record owns shares having an aggregate net asset value of less than the minimum initial investment amount required of new shareholders as set forth in the fund’s current registration statement under the 1940 Act, and subject to such further terms and conditions as the board of trustees of the fund may from time to time adopt.

While payment of redemptions normally will be in cash, the fund’s declaration of trust permits payment of the redemption price wholly or partly with portfolio securities or other fund assets under conditions and circumstances determined by the fund’s board of trustees. For example, redemptions could be made in this manner if the board determined that making payments wholly in cash over a particular period would be unfair and/or harmful to other fund shareholders.

Share certificates — Shares are credited to your account. The fund does not issue share certificates.

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General information

Custodian of assets — Securities and cash owned by the fund, including proceeds from the sale of shares of the fund and of securities in the fund’s portfolio, are held by JP Morgan Chase Bank NA, 270 Park Avenue, New York, NY 10017-2070, as custodian. If the fund holds securities of issuers outside the U.S., the custodian may hold these securities pursuant to subcustodial arrangements in banks outside the U.S. or branches of U.S. banks outside the U.S.

Transfer agent services — American Funds Service Company, a wholly owned subsidiary of the investment adviser, maintains the records of shareholder accounts, processes purchases and redemptions of the fund’s shares, acts as dividend and capital gain distribution disbursing agent, and performs other related shareholder service functions. The principal office of American Funds Service Company is located at 6455 Irvine Center Drive, Irvine, CA 92618. Transfer agent fees are paid according to a fee schedule, based principally on the number of accounts serviced, contained in a Shareholder Services Agreement between the fund and American Funds Service Company.

In the case of certain shareholder accounts, third parties who may be unaffiliated with the investment adviser provide transfer agency and shareholder services in place of American Funds Service Company. These services are rendered under agreements with American Funds Service Company or its affiliates and the third parties receive compensation according to such agreements. Compensation for transfer agency and shareholder services, whether paid to American Funds Service Company or such third parties, is ultimately paid from fund assets and is reflected in the expenses of the fund as disclosed in the prospectus.

During the 2013 fiscal year, transfer agent fees, gross of any payments made by American Funds Service Company to third parties, were:

	Transfer agent fee
Class A	$8,920,000
Class B	66,000
Class C	333,000
Class F-1	664,000
Class F-2	279,000
Class 529-A	414,000
Class 529-B	8,000
Class 529-C	107,000
Class 529-E	13,000
Class 529-F-1	78,000
Class R-1	18,000
Class R-2	549,000
Class R-3	310,000
Class R-4	135,000
Class R-5	25,000
Class R-6	2,000

Independent registered public accounting firm — Deloitte & Touche LLP, 695 Town Center Drive, Costa Mesa, CA 92626, serves as the fund’s independent registered public accounting firm, providing audit services, preparation of tax returns and review of certain documents to be filed with the SEC. The financial statements included in this statement of additional information from the annual report have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report appearing herein. Such financial statements have been so included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing. The selection of

Intermediate Bond Fund of America - Page 67

the fund’s independent registered public accounting firm is reviewed and determined annually by the board of trustees.

Independent legal counsel — Bingham McCutchen LLP, 355 South Grand Avenue, Suite 4400, Los Angeles, CA 90071, serves as independent legal counsel (“counsel”) for the fund and for independent trustees in their capacities as such. A determination with respect to the independence of the fund’s counsel will be made at least annually by the independent trustees of the fund, as prescribed by applicable 1940 Act rules.

Prospectuses, reports to shareholders and proxy statements — The fund’s fiscal year ends on August 31. Shareholders are provided updated summary prospectuses annually and at least semi-annually with reports showing the fund’s investment portfolio or summary investment portfolio, financial statements and other information. Shareholders may request a copy of the fund’s current prospectus at no cost by calling (800) 421-4225 or by sending an email request to prospectus@americanfunds.com. Shareholders may also access the fund’s current summary prospectus, prospectus, statement of additional information and shareholder reports at americanfunds.com/prospectus. The fund’s annual financial statements are audited by the fund’s independent registered public accounting firm, Deloitte & Touche LLP. In addition, shareholders may also receive proxy statements for the fund. In an effort to reduce the volume of mail shareholders receive from the fund when a household owns more than one account, the Transfer Agent has taken steps to eliminate duplicate mailings of summary prospectuses, shareholder reports and proxy statements. To receive additional copies of a summary prospectus, report or proxy statement, shareholders should contact the Transfer Agent.

Shareholders may also elect to receive updated summary prospectuses, annual reports and semi-annual reports electronically by signing up for electronic delivery on our website, americanfunds.com. Upon electing the electronic delivery of updated summary prospectuses and other reports, a shareholder will no longer automatically receive such documents in paper form by mail. A shareholder who elects electronic delivery is able to cancel this service at any time and return to receiving updated summary prospectuses and other reports in paper form by mail.

Summary prospectuses, prospectuses, annual reports and semi-annual reports that are mailed to shareholders by the American Funds organization are printed with ink containing soy and/or vegetable oil on paper containing recycled fibers.

Codes of ethics — The fund and Capital Research and Management Company and its affiliated companies, including the fund’s Principal Underwriter, have adopted codes of ethics that allow for personal investments, including securities in which the fund may invest from time to time. These codes include a ban on acquisitions of securities pursuant to an initial public offering; restrictions on acquisitions of private placement securities; preclearance and reporting requirements; review of duplicate confirmation statements; annual recertification of compliance with codes of ethics; blackout periods on personal investing for certain investment personnel; ban on short-term trading profits for investment personnel; limitations on service as a director of publicly traded companies; disclosure of personal securities transactions; and policies regarding political contributions.

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Determination of net asset value, redemption price and maximum offering price per share for Class A shares — February 28, 2014

Net asset value and redemption price per share (Net assets divided by shares outstanding)	$13.53
Maximum offering price per share (100/97.50 of net asset value per share, which takes into account the fund’s current maximum sales charge)	$13.88

Other information — The fund reserves the right to modify the privileges described in this statement of additional information at any time.

The fund’s financial statements, including the investment portfolio and the report of the fund’s independent registered public accounting firm contained in the annual report, are included in this statement of additional information.

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Fund numbers — Here are the fund numbers for use with our automated telephone line, American FundsLine®, or when making share transactions:

	Fund numbers
Fund	Class A	Class B	Class C	Class F-1	Class F-2
Stock and stock/bond funds
AMCAP Fund®	002	202	302	402	602
American Balanced Fund®	011	211	311	411	611
American Funds Developing World Growth and Income Fund^SM	30100	32100	33100	34100	36100
American Funds Global Balanced Fund^SM	037	237	337	437	637
American Mutual Fund®	003	203	303	403	603
Capital Income Builder®	012	212	312	412	612
Capital World Growth and Income Fund®	033	233	333	433	633
EuroPacific Growth Fund®	016	216	316	416	616
Fundamental Investors®	010	210	310	410	610
The Growth Fund of America®	005	205	305	405	605
The Income Fund of America®	006	206	306	406	606
International Growth and Income Fund^SM	034	234	334	434	634
The Investment Company of America®	004	204	304	404	604
The New Economy Fund®	014	214	314	414	614
New Perspective Fund®	007	207	307	407	607
New World Fund®	036	236	336	436	636
SMALLCAP World Fund®	035	235	335	435	635
Washington Mutual Investors Fund^SM	001	201	301	401	601
Bond funds
American Funds Mortgage Fund®	042	242	342	442	642
American Funds Short-Term Tax-Exempt Bond Fund®	039	N/A	N/A	439	639
American Funds Tax-Exempt Fund of New York®	041	241	341	441	641
American High-Income Municipal Bond Fund®	040	240	340	440	640
American High-Income Trust®	021	221	321	421	621
The Bond Fund of America®	008	208	308	408	608
Capital World Bond Fund®	031	231	331	431	631
Intermediate Bond Fund of America®	023	223	323	423	623
Limited Term Tax-Exempt Bond Fund of America®	043	243	343	443	643
Short-Term Bond Fund of America®	048	248	348	448	648
The Tax-Exempt Bond Fund of America®	019	219	319	419	619
The Tax-Exempt Fund of California®	020	220	320	420	620
The Tax-Exempt Fund of Maryland®*	024	224	324	424	624
The Tax-Exempt Fund of Virginia®*	025	225	325	425	625
U.S. Government Securities Fund®	022	222	322	422	622
Money market fund
American Funds Money Market Fund®	059	259	359	459	659

___________

*Qualified for sale only in certain jurisdictions.

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	Fund numbers
Fund	Class 529-A	Class 529-B	Class 529-C	Class 529-E	Class 529-F-1
Stock and stock/bond funds
AMCAP Fund	1002	1202	1302	1502	1402
American Balanced Fund	1011	1211	1311	1511	1411
American Funds Developing World Growth and Income Fund	10100	12100	13100	14100	15100
American Funds Global Balanced Fund	1037	1237	1337	1537	1437
American Mutual Fund	1003	1203	1303	1503	1403
Capital Income Builder	1012	1212	1312	1512	1412
Capital World Growth and Income Fund	1033	1233	1333	1533	1433
EuroPacific Growth Fund	1016	1216	1316	1516	1416
Fundamental Investors	1010	1210	1310	1510	1410
The Growth Fund of America	1005	1205	1305	1505	1405
The Income Fund of America	1006	1206	1306	1506	1406
International Growth and Income Fund	1034	1234	1334	1534	1434
The Investment Company of America	1004	1204	1304	1504	1404
The New Economy Fund	1014	1214	1314	1514	1414
New Perspective Fund	1007	1207	1307	1507	1407
New World Fund	1036	1236	1336	1536	1436
SMALLCAP World Fund	1035	1235	1335	1535	1435
Washington Mutual Investors Fund	1001	1201	1301	1501	1401
Bond funds
American Funds Mortgage Fund	1042	1242	1342	1542	1442
American High-Income Trust	1021	1221	1321	1521	1421
The Bond Fund of America	1008	1208	1308	1508	1408
Capital World Bond Fund	1031	1231	1331	1531	1431
Intermediate Bond Fund of America	1023	1223	1323	1523	1423
Short-Term Bond Fund of America	1048	1248	1348	1548	1448
U.S. Government Securities Fund	1022	1222	1322	1522	1422
Money market fund
American Funds Money Market Fund	1059	1259	1359	1559	1459

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	Fund numbers
Fund	Class R-1	Class R-2	Class R-2E	Class R-3	Class R-4	Class R-5	Class R-6
Stock and stock/bond funds
AMCAP Fund	2102	2202	4102	2302	2402	2502	2602
American Balanced Fund	2111	2211	4111	2311	2411	2511	2611
American Funds Developing World Growth and Income Fund	21100	22100	41100	23100	24100	25100	26100
American Funds Global Balanced Fund	2137	2237	4137	2337	2437	2537	2637
American Mutual Fund	2103	2203	4103	2303	2403	2503	2603
Capital Income Builder	2112	2212	4112	2312	2412	2512	2612
Capital World Growth and Income Fund	2133	2233	4133	2333	2433	2533	2633
EuroPacific Growth Fund	2116	2216	4116	2316	2416	2516	2616
Fundamental Investors	2110	2210	4110	2310	2410	2510	2610
The Growth Fund of America	2105	2205	4105	2305	2405	2505	2605
The Income Fund of America	2106	2206	4106	2306	2406	2506	2606
International Growth and Income Fund	2134	2234	41034	2334	2434	2534	2634
The Investment Company of America	2104	2204	4104	2304	2404	2504	2604
The New Economy Fund	2114	2214	4114	2314	2414	2514	2614
New Perspective Fund	2107	2207	4107	2307	2407	2507	2607
New World Fund	2136	2236	4136	2336	2436	2536	2636
SMALLCAP World Fund	2135	2235	4135	2335	2435	2535	2635
Washington Mutual Investors Fund	2101	2201	4101	2301	2401	2501	2601
Bond funds
American Funds Mortgage Fund	2142	2242	4142	2342	2442	2542	2642
American High-Income Trust	2121	2221	4121	2321	2421	2521	2621
The Bond Fund of America	2108	2208	4108	2308	2408	2508	2608
Capital World Bond Fund	2131	2231	4131	2331	2431	2531	2631
Intermediate Bond Fund of America	2123	2223	4123	2323	2423	2523	2623
Short-Term Bond Fund of America	2148	2248	4148	2348	2448	2548	2648
U.S. Government Securities Fund	2122	2222	4122	2322	2422	2522	2622
Money market fund
American Funds Money Market Fund	2159	2259	4159	2359	2459	2559	2659

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	Fund numbers
Fund	Class A	Class B	Class C	Class F-1	Class F-2
American Funds Target Date Retirement Series®
American Funds 2055 Target Date Retirement Fund®	082	282	382	482	682
American Funds 2050 Target Date Retirement Fund®	069	269	369	469	669
American Funds 2045 Target Date Retirement Fund®	068	268	368	468	668
American Funds 2040 Target Date Retirement Fund®	067	267	367	467	667
American Funds 2035 Target Date Retirement Fund®	066	266	366	466	36066
American Funds 2030 Target Date Retirement Fund®	065	265	365	465	665
American Funds 2025 Target Date Retirement Fund®	064	264	364	464	664
American Funds 2020 Target Date Retirement Fund®	063	263	363	463	663
American Funds 2015 Target Date Retirement Fund®	062	262	362	462	662
American Funds 2010 Target Date Retirement Fund®	061	261	361	461	661

	Fund numbers
Fund	Class R-1	Class R-2	Class R-2E	Class R-3	Class R-4	Class R-5	Class R-6
American Funds Target Date Retirement Series®
American Funds 2055 Target Date Retirement Fund®	2182	2282	4182	2382	2482	2582	2682
American Funds 2050 Target Date Retirement Fund®	2169	2269	4169	2369	2469	2569	2669
American Funds 2045 Target Date Retirement Fund®	2168	2268	4168	2368	2468	2568	2668
American Funds 2040 Target Date Retirement Fund®	2167	2267	4167	2367	2467	2567	2667
American Funds 2035 Target Date Retirement Fund®	2166	2266	4166	2366	2466	2566	2666
American Funds 2030 Target Date Retirement Fund®	2165	2265	4165	2365	2465	2565	2665
American Funds 2025 Target Date Retirement Fund®	2164	2264	4164	2364	2464	2564	2664
American Funds 2020 Target Date Retirement Fund®	2163	2263	4163	2363	2463	2563	2663
American Funds 2015 Target Date Retirement Fund®	2162	2262	4162	2362	2462	2562	2662
American Funds 2010 Target Date Retirement Fund®	2161	2261	4161	2361	2461	2561	2661

	Fund numbers
Fund	Class 529-A	Class 529-B	Class 529-C	Class 529-E	Class 529-F-1
American Funds College Target Date Series®
American Funds College 2030 Fund®	1094	1294	1394	1594	1494
American Funds College 2027 Fund®	1093	1293	1393	1593	1493
American Funds College 2024 Fund®	1092	1292	1392	1592	1492
American Funds College 2021 Fund®	1091	1291	1391	1591	1491
American Funds College 2018 Fund®	1090	1290	1390	1590	1490
American Funds College 2015 Fund®	1089	1289	1389	1589	1489
American Funds College Enrollment Fund^SM	1088	1288	1388	1588	1488

Intermediate Bond Fund of America - Page 73

	Fund numbers
Fund	Class A		Class B		Class C		Class F-1			Class F-2
American Funds Portfolio Series^SM
American Funds Global Growth Portfolio^SM	055		255		355		455			655
American Funds Growth Portfolio^SM	053		253		353		453			653
American Funds Growth and Income Portfolio^SM	051		251		351		451			651
American Funds Balanced Portfolio^SM	050		250		350		450			650
American Funds Income Portfolio^SM	047		247		347		447			647
American Funds Tax-Advantaged Income Portfolio^SM	046		246		346		446			646
American Funds Preservation Portfolio^SM	045		245		345		445			645
American Funds Tax-Exempt Preservation Portfolio^SM	044		244		344		444			644
	Class 529-A		Class 529-B		Class 529-C		Class 529-E			Class 529-F-1
American Funds Global Growth Portfolio	1055		1255		1355		1555			1455
American Funds Growth Portfolio	1053		1253		1353		1553			1453
American Funds Growth and Income Portfolio	1051		1251		1351		1551			1451
American Funds Balanced Portfolio	1050		1250		1350		1550			1450
American Funds Income Portfolio	1047		1247		1347		1547			1447
American Funds Tax-Advantaged Income Portfolio	N/A		N/A		N/A		N/A			N/A
American Funds Preservation Portfolio	1045		1245		1345		1545			1445
American Funds Tax-Exempt Preservation Portfolio	N/A		N/A		N/A		N/A			N/A

	Class R-1	Class R-2		Class R-2E		Class R-3		Class R-4	Class R-5		Class R-6
American Funds Global Growth Portfolio	2155	2255		4155		2355		2455	2555		2655
American Funds Growth Portfolio	2153	2253		4153		2353		2453	2553		2653
American Funds Growth and Income Portfolio	2151	2251		4151		2351		2451	2551		2651
American Funds Balanced Portfolio	2150	2250		4150		2350		2450	2550		2650
American Funds Income Portfolio	2147	2247		4147		2347		2447	2547		2647
American Funds Tax-Advantaged Income Portfolio	N/A	N/A		N/A		N/A		N/A	N/A		N/A
American Funds Preservation Portfolio	2145	2245		4145		2345		2445	2545		2645
American Funds Tax-Exempt Preservation Portfolio	N/A	N/A		N/A		N/A		N/A	N/A		N/A

Intermediate Bond Fund of America - Page 74

Appendix

The following descriptions of debt security ratings are based on information provided by Moody’s Investors Service, Standard & Poor’s Corporation and Fitch Ratings, Inc.

Description of bond ratings

Moody’s
Long-term rating definitions

Aaa
Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit risk.

Aa
Obligations rated Aa are judged to be of high quality and are subject to very low credit risk.

A
Obligations rated A are considered upper-medium grade and are subject to low credit risk.

Baa
Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as such may possess certain speculative characteristics.

Ba
Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.

B
Obligations rated B are considered speculative and are subject to high credit risk.

Caa
Obligations rated Caa are judged to be speculative and of poor standing and are subject to very high credit risk.

Ca
Obligations rated Ca are highly speculative and are likely in, or very near, default, with some prospect of recovery of principal and interest.

C
Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery of principal or interest.

Note: Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category. Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance companies and securities firms.

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Standard & Poor’s
Long-term issue credit ratings

AAA
An obligation rated AAA has the highest rating assigned by Standard & Poor’s. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong.

AA
An obligation rated AA differs from the highest-rated obligations only to a small degree. The obligor’s capacity to meet its financial commitment on the obligation is very strong.

A
An obligation rated A is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher-rated categories. However, the obligor’s capacity to meet its financial commitment on the obligation is still strong.

BBB
An obligation rated BBB exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation.

BB, B, CCC, CC, and C

Obligations rated BB, B, CCC, CC, and C are regarded as having significant speculative characteristics. BB indicates the least degree of speculation and C the highest. While such obligations will likely have some quality and protective characteristics, these may be outweighed by large uncertainties or major exposures to adverse conditions.

BB
An obligation rated BB is less vulnerable to nonpayment than other speculative issues. However, it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions which could lead to the obligor’s inadequate capacity to meet its financial commitment on the obligation.

B
An obligation rated B is more vulnerable to nonpayment than obligations rated BB, but the obligor currently has the capacity to meet its financial commitment on the obligation. Adverse business, financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its financial commitment on the obligation.

CCC
An obligation rated CCC is currently vulnerable to nonpayment and is dependent upon favorable business, financial, and economic conditions for the obligor to meet its financial commitment on the obligation. In the event of adverse business, financial, or economic conditions, the obligor is not likely to have the capacity to meet its financial commitment on the obligation.

CC
An obligation rated CC is currently highly vulnerable to nonpayment. The CC rating is used when a default has not occurred, but Standard & Poor’s expects default to be a virtual certainty, regardless of the anticipated time to default.

Intermediate Bond Fund of America - Page 76

C
An obligation rated C is currently highly vulnerable to nonpayment, and the obligation is expected to have lower relative seniority or lower ultimate recovery compared to obligations that are rated higher.

D
An obligation rated D is in default or in breach of an imputed promise. For non-hybrid capital instruments, the D rating category is used when payments on an obligation are not made on the date due, unless Standard & Poor’s believes that such payments will be made within five business days in the absence of a stated grace period or within the earlier of the stated grace period or 30 calendar days. The D rating also will be used upon the filing of a bankruptcy petition or the taking of similar action and where default on an obligation is a virtual certainty, for example due to automatic stay provisions. An obligation’s rating is lowered to D if it is subject to a distressed exchange offer.

Plus (+) or minus (–)

The ratings from AA to CCC may be modified by the addition of a plus or minus sign to show relative standing within the major rating categories.

This indicates that no rating has been requested, that there is insufficient information on which to base a rating, or that Standard & Poor’s does not rate a particular obligation as a matter of policy.

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Fitch Ratings, Inc.
Long-term credit ratings

AAA
Highest credit quality. AAA ratings denote the lowest expectation of default risk. They are assigned only in case of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events.

AA
Very high credit quality. AA ratings denote expectations of very low default risk. They indicate very strong capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events.

A
High credit quality. A ratings denote expectations of low default risk. The capacity for payment of financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to changes in circumstances or in economic conditions than is the case for higher ratings.

BBB
Good credit quality. BBB ratings indicate that expectations of default risk are low. The capacity for payment of financial commitments is considered adequate but adverse changes in circumstances and economic conditions are more likely to impair this capacity.

BB
Speculative. BB ratings indicate an elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time; however, business or financial flexibility exists which supports the servicing of financial commitments.

B
Highly speculative. B ratings indicate that material default risk is present, but a limited margin of safety remains. Financial commitments are currently being met; however, capacity for continued payment is vulnerable to deterioration in the business and economic environment.

CCC
Substantial credit risk. Default is a real possibility.

CC
Very high levels of credit risk. Default of some kind appears probable.

C
Exceptionally high levels of credit risk. Default is imminent or inevitable, or the issuer is in standstill. Conditions that are indicative of a C category rating for an issuer include:

The issuer has entered into a grace or cure period following nonpayment of a material financial obligation;

The issuer has entered into a temporary negotiated waiver or standstill agreement following a payment default on a material financial obligation; or

Fitch Ratings otherwise believes a condition of RD or D to be imminent or inevitable, including through the formal announcement of a distressed debt exchange.

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RD
Restricted default. RD ratings indicate an issuer that in Fitch Ratings’ opinion has experienced an uncured payment default on a bond, loan or other material financial obligation but which has not entered into bankruptcy filings, administration, receivership, liquidation or other formal winding up procedure, and which has not otherwise ceased operating. This would include:

The selective payment default on a specific class or currency of debt;

The uncured expiry of any applicable grace period, cure period or default forbearance period following a payment default on a bank loan, capital markets security or other material financial obligation;

The extension of multiple waivers or forbearance periods upon a payment default on one or more material financial obligations, either in series or in parallel; or

Execution of a distressed debt exchange on one or more material financial obligations.

D
Default. D ratings indicate an issuer that in Fitch Ratings’ opinion has entered into bankruptcy filings, administration, receivership, liquidation or other formal winding up procedure, or which has otherwise ceased business.

Default ratings are not assigned prospectively to entities or their obligations; within this context, nonpayment on an instrument that contains a deferral feature or grace period will generally not be considered a default until after the expiration of the deferral or grace period, unless a default is otherwise driven by bankruptcy or other similar circumstance, or by a distressed debt exchange.

Imminent default typically refers to the occasion where a payment default has been intimated by the issuer, and is all but inevitable. This may, for example, be where an issuer has missed a scheduled payment, but (as is typical) has a grace period during which it may cure the payment default. Another alternative would be where an issuer has formally announced a distressed debt exchange, but the date of the exchange still lies several days or weeks in the immediate future.

In all cases, the assignment of a default rating reflects the agency’s opinion as to the most appropriate rating category consistent with the rest of its universe of ratings, and may differ from the definition of default under the terms of an issuer’s financial obligations or local commercial practice.

Note: The modifiers “+” or “–” may be appended to a rating to denote relative status within major rating categories. Such suffixes are not added to the AAA long-term rating category, or to categories below B.

Intermediate Bond Fund of America - Page 79

Description of commercial paper ratings

Moody’s

Commercial paper ratings (highest three ratings)

P-1

Issuers (or supporting institutions) rated Prime-1 have a superior ability to repay short-term debt obligations.

P-2

Issuers (or supporting institutions) rated Prime-2 have a strong ability to repay short-term debt obligations.

P-3

Issuers (or supporting institutions) rated Prime-3 have an acceptable ability to repay short-term obligations.

Standard & Poor’s

Commercial paper ratings (highest three ratings)

A-1

A short-term obligation rated A-1 is rated in the highest category by Standard & Poor’s. The obligor’s capacity to meet its financial commitment on the obligation is strong. Within this category, certain obligations are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial commitment on these obligations is extremely strong.

A-2

A short-term obligation rated A-2 is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher rating categories. However, the obligor’s capacity to meet its financial commitment on the obligation is satisfactory.

A-3

A short-term obligation rated A-3 exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation.

Intermediate Bond Fund of America - Page 80

Intermediate Bond Fund of America^®

Investment portfolio

February 28, 2014

unaudited

Bonds, notes & other debt instruments 94.54%
U.S. Treasury bonds & notes 49.77%	Principal amount	Value
U.S. Treasury 48.34%	(000)	(000)

U.S. Treasury 2.25% 2014	$ 51,000	$ 51,273
U.S. Treasury 2.625% 2014	188,250	190,244
U.S. Treasury 0.25% 2015	261,600	261,885
U.S. Treasury 0.25% 2015	135,000	135,031
U.S. Treasury 1.25% 2015	25,000	25,409
U.S. Treasury 1.75% 2015¹	100,000	102,217
U.S. Treasury 2.25% 2015	58,000	59,119
U.S. Treasury 4.125% 2015	50,000	52,375
U.S. Treasury 4.25% 2015	50,000	52,951
U.S. Treasury 0.625% 2016	294,250	294,400
U.S. Treasury 0.625% 2016	145,000	145,489
U.S. Treasury 0.625% 2016	125,000	125,151
U.S. Treasury 0.625% 2016	9,000	9,036
U.S. Treasury 0.875% 2016	201,500	203,328
U.S. Treasury 1.00% 2016	25,000	25,295
U.S. Treasury 1.50% 2016	60,000	61,470
U.S. Treasury 1.50% 2016	12,600	12,911
U.S. Treasury 1.75% 2016	26,000	26,776
U.S. Treasury 2.00% 2016	70,000	72,428
U.S. Treasury 2.375% 2016	50,000	52,092
U.S. Treasury 2.625% 2016	20,000	20,912
U.S. Treasury 3.00% 2016	20,000	21,256
U.S. Treasury 4.50% 2016	47,500	51,381
U.S. Treasury 5.125% 2016	96,500	106,517
U.S. Treasury 7.50% 2016	40,000	47,430
U.S. Treasury 0.50% 2017	67,640	66,731
U.S. Treasury 0.625% 2017	318,075	316,049
U.S. Treasury 0.75% 2017	49,250	49,073
U.S. Treasury 0.875% 2017	145,000	145,407
U.S. Treasury 1.00% 2017	247,250	249,171
U.S. Treasury 2.50% 2017	153,750	162,032
U.S. Treasury 4.50% 2017	60,000	67,015
U.S. Treasury 4.625% 2017	115,000	128,193
U.S. Treasury 8.75% 2017	25,000	31,292
U.S. Treasury 0.75% 2018	50,000	49,224
U.S. Treasury 1.00% 2018	50,000	49,486
U.S. Treasury 1.25% 2018	62,000	61,474
U.S. Treasury 1.25% 2018	9,750	9,681
U.S. Treasury 1.375% 2018	70,000	69,992
U.S. Treasury 3.50% 2018	50,000	54,584
U.S. Treasury 8.75% 2020	15,000	21,114
U.S. Treasury 8.00% 2021	20,000	28,236
U.S. Treasury 1.75% 2022	56,800	54,046
U.S. Treasury 2.50% 2023	223,550	221,770
Bonds, notes & other debt instruments
	Principal amount	Value
U.S. Treasury bonds & notes — U.S. Treasury (continued)	(000)	(000)

U.S. Treasury 2.75% 2023	$373,250	$ 377,091
U.S. Treasury 6.25% 2023	25,000	32,893
U.S. Treasury 7.125% 2023	15,000	20,677
U.S. Treasury 2.875% 2043	5,000	4,335
U.S. Treasury 3.75% 2043	500	515
U.S. Treasury 3.625% 2044	13,750	13,831
		4,490,288
U.S. Treasury inflation-protected securities² 1.43%

U.S. Treasury Inflation-Protected Security 1.625% 2015	1,190	1,227
U.S. Treasury Inflation-Protected Security 0.125% 2018	15,123	15,671
U.S. Treasury Inflation-Protected Security 0.375% 2023	42,060	42,081
U.S. Treasury Inflation-Protected Security 2.00% 2026	2,935	3,379
U.S. Treasury Inflation-Protected Security 1.375% 2044	69,752	70,887
		133,245
Total U.S. Treasury bonds & notes		4,623,533
Corporate bonds & notes 28.14%
Financials 8.78%

Bank of America Corp. 4.50% 2015	5,000	5,203
Bank of America Corp., Series L, 3.625% 2016	6,985	7,364
Bank of America Corp. 3.75% 2016	11,000	11,692
Bank of America Corp. 1.25% 2017	7,000	7,012
Bank of America Corp. 5.75% 2017	5,070	5,788
Bank of America Corp. 2.60% 2019	10,000	10,135
Bank of America Corp. 5.625% 2020	7,000	8,070
Bank of America Corp. 4.125% 2024	5,000	5,124
JPMorgan Chase & Co. 3.40% 2015	6,000	6,216
JPMorgan Chase & Co. 1.125% 2016	15,000	15,096
JPMorgan Chase & Co. 1.35% 2017	14,500	14,571
JPMorgan Chase & Co. 1.625% 2018	18,500	18,322
JPMorgan Chase & Co. 3.875% 2024	5,000	5,060
Citigroup Inc. 4.587% 2015	18,865	20,093
Citigroup Inc. 6.01% 2015	3,198	3,345
Citigroup Inc. 1.70% 2016	7,000	7,099
Citigroup Inc. 3.953% 2016	5,535	5,890
Citigroup Inc. 2.50% 2018	7,500	7,599
American Express Centurion Bank 0.875% 2015	12,000	12,068
American Express Co. 6.15% 2017	2,900	3,371
American Express Co. 0.826% 2018³	25,000	25,043
Goldman Sachs Group, Inc. 3.625% 2016	15,625	16,414
Goldman Sachs Group, Inc. 2.625% 2019	6,300	6,343
Goldman Sachs Group, Inc. 5.25% 2021	3,560	3,973
Goldman Sachs Group, Inc. 3.625% 2023	6,100	6,029
Goldman Sachs Group, Inc. 4.00% 2024	7,500	7,525
Morgan Stanley, Series F, 6.00% 2015	3,635	3,855
Morgan Stanley 1.75% 2016	10,000	10,176
Morgan Stanley 3.80% 2016	6,325	6,690
Morgan Stanley 2.125% 2018	10,000	10,067
Kimco Realty Corp., Series C, 4.82% 2014	795	803
Kimco Realty Corp., Series C, 4.904% 2015	8,915	9,271
Kimco Realty Corp., Series C, 5.783% 2016	9,500	10,405
Bonds, notes & other debt instruments
	Principal amount	Value
Corporate bonds & notes — Financials (continued)	(000)	(000)

Kimco Realty Corp. 5.70% 2017	$ 5,500	$ 6,155
Kimco Realty Corp. 6.875% 2019	2,000	2,407
Rabobank Nederland 2.25% 2019	7,000	7,053
Rabobank Nederland 4.625% 2023	20,500	21,124
Barclays Bank PLC 5.20% 2014	4,500	4,576
Barclays Bank PLC 6.05% 2017⁴	4,140	4,699
Barclays Bank PLC 2.50% 2019	17,250	17,455
Simon Property Group, LP 4.20% 2015	9,430	9,660
Simon Property Group, LP 6.10% 2016	7,000	7,699
Simon Property Group, LP 5.875% 2017	2,500	2,818
Simon Property Group, LP 1.50% 2018⁴	6,480	6,432
New York Life Global Funding 2.10% 2019⁴	25,000	25,074
Prologis, Inc. 5.625% 2016	6,260	6,949
Prologis, Inc. 2.75% 2019	6,005	6,072
Prologis, Inc. 3.35% 2021	1,000	994
Prologis, Inc. 4.25% 2023	10,505	10,763
Westfield Group 5.75% 2015⁴	10,000	10,736
Westfield Group 5.70% 2016⁴	1,250	1,395
Westfield Group 7.125% 2018⁴	1,000	1,200
Westfield Group 4.625% 2021⁴	4,770	5,193
Westfield Group 3.375% 2022⁴	5,600	5,606
Berkshire Hathaway Inc. 2.20% 2016	8,500	8,820
Berkshire Hathaway Inc. 1.55% 2018	15,000	15,043
BNP Paribas 3.60% 2016	7,000	7,366
BNP Paribas 2.40% 2018	6,500	6,560
BNP Paribas 5.00% 2021	8,000	8,922
HSBC Finance Corp. 0.669% 2016³	4,400	4,398
HSBC Bank PLC 0.876% 2018^3,4	8,500	8,541
HSBC Holdings PLC 4.875% 2020	6,000	6,581
HSBC Holdings PLC 4.00% 2022	2,950	3,063
BB&T Corp. 1.00% 2017	7,000	6,972
BB&T Corp., Series C, 1.60% 2017	8,250	8,328
BB&T Corp. 2.05% 2018	5,000	5,055
Hospitality Properties Trust 5.125% 2015	1,130	1,150
Hospitality Properties Trust 6.30% 2016	5,240	5,638
Hospitality Properties Trust 6.70% 2018	10,000	11,282
Nordea Bank, Series 2, 3.70% 2014⁴	8,000	8,185
Nordea Bank AB 3.125% 2017⁴	5,000	5,261
Nordea Bank AB 4.875% 2021⁴	2,500	2,655
US Bank NA 4.95% 2014	2,550	2,629
US Bancorp., Series T, 1.65% 2017	8,500	8,669
US Bancorp. 0.726% 2018³	1,295	1,296
US Bancorp. 3.70% 2024	3,305	3,390
Bank of New York Mellon Corp., Series G, 2.50% 2016	7,000	7,245
Bank of New York Mellon Corp. 0.798% 2018³	7,500	7,528
Wells Fargo & Co. 1.25% 2016	7,000	7,086
Wells Fargo & Co. 3.676% 2016	7,000	7,467
Westpac Banking Corp. 3.00% 2015	6,300	6,580
Westpac Banking Corp. 2.25% 2019	6,500	6,534
BPCE SA group 5.70% 2023⁴	3,750	3,958
BPCE SA group 5.15% 2024⁴	9,050	9,103
Intercontinentalexchange, Inc. 4.00% 2023	12,390	12,943
Svenska Handelsbanken AB 1.625% 2018	12,500	12,424
MetLife Global Funding I 2.50% 2015⁴	12,000	12,371
Bonds, notes & other debt instruments
	Principal amount	Value
Corporate bonds & notes — Financials (continued)	(000)	(000)

UBS AG 4.875% 2020	$11,000	$ 12,348
ACE INA Holdings Inc. 2.60% 2015	10,090	10,426
DCT Industrial Trust Inc. 4.50% 2023⁴	9,750	9,751
Boston Properties, Inc. 3.70% 2018	7,000	7,504
Regions Financial Corp. 2.00% 2018	7,500	7,394
ANZ National (International) Ltd. 3.125% 2015⁴	7,000	7,248
American International Group, Inc. 4.125% 2024	6,400	6,587
Discover Financial Services 4.20% 2023	5,930	6,097
Host Hotels & Resorts LP 6.00% 2020	5,465	6,003
Northern Trust Corp. 4.625% 2014	2,825	2,844
Northern Trust Corp. 5.85% 2017⁴	2,750	3,090
Royal Bank of Scotland PLC 4.375% 2016	5,000	5,351
Société Générale 3.10% 2015⁴	5,000	5,175
Capital One Bank 1.15% 2016	5,000	5,010
Standard Chartered Bank 3.95% 2023⁴	5,000	4,776
ERP Operating LP 5.25% 2014	4,000	4,098
AvalonBay Communities, Inc. 3.625% 2020	3,645	3,779
Developers Diversified Realty Corp. 9.625% 2016	1,400	1,628
Developers Diversified Realty Corp. 7.875% 2020	1,500	1,886
Unum Group 7.125% 2016	2,800	3,202
Royal Bank of Canada 1.20% 2017	3,000	3,019
Piedmont Operating Partnership LP 4.45% 2024	3,000	3,014
CNA Financial Corp. 3.95% 2024	2,370	2,394
		815,439
Consumer staples 3.08%

Anheuser-Busch InBev NV 0.602% 2014³	11,625	11,640
Anheuser-Busch InBev NV 3.625% 2015	7,000	7,250
Anheuser-Busch InBev NV 4.125% 2015	7,500	7,741
Anheuser-Busch InBev NV 1.375% 2017	7,500	7,543
Anheuser-Busch InBev NV 0.639% 2019³	8,500	8,506
Wal-Mart Stores, Inc. 2.25% 2015	5,000	5,126
Wal-Mart Stores, Inc. 2.875% 2015	7,000	7,198
Wal-Mart Stores, Inc. 2.80% 2016	7,000	7,341
Wal-Mart Stores, Inc. 1.125% 2018	10,000	9,849
Wal-Mart Stores, Inc. 5.80% 2018	740	863
Coca-Cola Co. 1.50% 2015	10,000	10,186
Coca-Cola Co. 1.80% 2016	6,500	6,679
Coca-Cola Co. 3.15% 2020	6,285	6,521
SABMiller Holdings Inc. 2.45% 2017⁴	17,290	17,876
SABMiller Holdings Inc. 2.20% 2018⁴	2,700	2,715
Altria Group, Inc. 4.75% 2021	4,000	4,375
Altria Group, Inc. 2.85% 2022	5,000	4,698
Altria Group, Inc. 2.95% 2023	2,000	1,864
Altria Group, Inc. 4.00% 2024	9,500	9,522
ConAgra Foods, Inc. 1.30% 2016	8,590	8,666
ConAgra Foods, Inc. 1.90% 2018	7,835	7,831
ConAgra Foods, Inc. 3.20% 2023	2,000	1,906
WM. Wrigley Jr. Co 2.40% 2018⁴	6,650	6,723
WM. Wrigley Jr. Co 3.375% 2020⁴	10,000	10,209
Procter & Gamble Co. 3.50% 2015	7,500	7,723
Procter & Gamble Co. 1.45% 2016	8,410	8,559
Pernod Ricard SA 2.95% 2017⁴	14,500	15,128
Bonds, notes & other debt instruments
	Principal amount	Value
Corporate bonds & notes — Consumer staples (continued)	(000)	(000)

British American Tobacco International Finance PLC 2.125% 2017⁴	$ 7,000	$ 7,172
British American Tobacco International Finance PLC 9.50% 2018⁴	5,910	7,835
Philip Morris International Inc. 1.875% 2019	2,400	2,396
Philip Morris International Inc. 2.90% 2021	8,850	8,766
Philip Morris International Inc. 3.60% 2023	3,000	2,985
Reynolds American Inc. 3.25% 2022	6,850	6,526
Reynolds American Inc. 4.85% 2023	3,750	3,940
PepsiCo, Inc. 2.50% 2016	10,000	10,376
Kroger Co. 6.40% 2017	7,500	8,666
Kraft Foods Inc. 2.25% 2017	7,725	7,940
Tesco PLC 5.50% 2017⁴	6,840	7,680
General Mills, Inc. 0.586% 2014³	7,500	7,506
		286,026
Energy 2.93%

StatoilHydro ASA 2.90% 2014	3,110	3,161
StatoilHydro ASA 3.875% 2014	4,750	4,768
Statoil ASA 3.125% 2017	22,000	23,434
Statoil ASA 0.697% 2018³	5,000	5,033
Statoil ASA 1.95% 2018	1,595	1,608
Statoil ASA 3.15% 2022	4,000	4,039
Shell International Finance BV 4.00% 2014	25,000	25,043
Shell International Finance BV 3.10% 2015	7,500	7,775
Shell International Finance BV 2.00% 2018	4,365	4,417
Total Capital SA 3.00% 2015	7,000	7,240
Total Capital SA 2.30% 2016	8,000	8,289
Total Capital Canada Ltd. 1.45% 2018	20,130	20,156
Kinder Morgan Energy Partners, LP 5.125% 2014	5,000	5,158
Kinder Morgan Energy Partners, LP 3.50% 2016	7,000	7,329
Kinder Morgan Energy Partners, LP 3.50% 2021	4,430	4,454
Kinder Morgan Energy Partners, LP 3.95% 2022	4,000	4,009
Kinder Morgan Energy Partners, LP 4.15% 2024	3,000	2,981
Chevron Corp. 1.718% 2018	20,000	20,124
Transocean Inc. 5.05% 2016	8,000	8,777
Transocean Inc. 2.50% 2017	5,600	5,687
Transocean Inc. 6.375% 2021	2,220	2,495
Transocean Inc. 3.80% 2022	2,000	1,901
BG Energy Capital PLC 2.50% 2015⁴	7,000	7,223
BG Energy Capital PLC 2.875% 2016⁴	5,750	6,031
TransCanada PipeLines Ltd. 0.875% 2015	7,000	7,032
TransCanada PipeLines Ltd. 6.50% 2018	5,000	5,965
Enbridge Inc. 5.60% 2017	2,500	2,812
Enbridge Inc. 4.00% 2023	10,000	10,119
Marathon Oil Corp. 0.90% 2015	7,500	7,528
ConocoPhillips 1.05% 2017	7,500	7,445
Devon Energy Corp. 2.25% 2018	7,225	7,272
Williams Partners LP 4.30% 2024	7,180	7,209
Husky Energy Inc. 5.90% 2014	6,000	6,091
Enterprise Products Operating LLC 1.25% 2015	5,000	5,041
Canadian Natural Resources Ltd. 1.45% 2014	5,000	5,036
BP Capital Markets PLC 3.625% 2014⁴	2,000	2,012
BP Capital Markets PLC 3.875% 2015	2,500	2,590
CNOOC Finance (2013) Ltd. 3.00% 2023	5,000	4,540
		271,824
Bonds, notes & other debt instruments
Corporate bonds & notes (continued)	Principal amount	Value
Utilities 2.78%	(000)	(000)

MidAmerican Energy Holdings Co. 2.00% 2018⁴	$17,350	$ 17,300
MidAmerican Energy Holdings Co. 5.75% 2018	3,600	4,151
Nevada Power Co., General and Refunding Mortgage Notes, Series S, 6.50% 2018	10,000	11,928
NV Energy, Inc 6.25% 2020	1,200	1,422
MidAmerican Energy Holdings Co. 3.75% 2023⁴	10,000	10,048
Iberdrola Finance Ireland 3.80% 2014⁴	15,000	15,229
Scottish Power PLC 5.375% 2015	4,000	4,181
Iberdrola Finance Ireland 5.00% 2019⁴	5,000	5,516
Niagara Mohawk Power 3.553% 2014⁴	11,170	11,370
National Grid PLC 6.30% 2016	10,990	12,338
Progress Energy, Inc. 6.05% 2014	16,500	16,526
Duke Energy Corp. 3.95% 2023	2,500	2,568
PSEG Power LLC 2.75% 2016	5,310	5,551
PSEG Power LLC 2.45% 2018	10,000	10,095
PSEG Power LLC 4.30% 2023	3,000	3,076
PG&E Corp. 5.75% 2014	5,000	5,019
PG&E Corp. 2.40% 2019	2,000	2,007
Pacific Gas and Electric Co. 3.25% 2023	5,000	4,890
Pacific Gas and Electric Co. 3.85% 2023	4,370	4,466
Enel Finance International SA 3.875% 2014⁴	15,550	15,810
E.ON International Finance BV 5.80% 2018⁴	13,000	14,943
Centerpoint Energy, Inc., Series B, 6.85% 2015	10,000	10,765
Teco Finance, Inc. 4.00% 2016	6,000	6,367
Teco Finance, Inc. 5.15% 2020	1,004	1,123
Tampa Electric Co. 2.60% 2022	3,000	2,849
American Electric Power Co. 1.65% 2017	10,000	10,011
Consumers Energy Co., First Mortgage Bonds, 5.15% 2017	500	559
CMS Energy Corp. 6.25% 2020	273	323
Consumers Energy Co. 2.85% 2022	7,500	7,376
CMS Energy Corp. 3.875% 2024	1,000	1,015
Entergy Louisiana, LLC 1.875% 2014	5,000	5,058
Entergy Louisiana, LLC 3.30% 2022	3,000	2,955
Electricité de France SA 1.15% 2017⁴	7,500	7,513
State Grid Overseas Investment Ltd. 1.75% 2018⁴	7,500	7,342
National Rural Utilities Cooperative Finance Corp. 1.00% 2015	3,650	3,674
National Rural Utilities Cooperative Finance Corp. 3.875% 2015	500	525
National Rural Utilities Cooperative Finance Corp. 3.40% 2023	3,000	3,005
Commonwealth Edison Company 2.15% 2019	5,000	5,033
Public Service Co. of Colorado 5.80% 2018	2,250	2,623
Virginia Electric and Power Co. 3.45% 2024	1,860	1,871
		258,421
Health care 2.77%

Novartis Capital Corp. 2.90% 2015	10,000	10,299
Novartis Securities Investment Ltd. 5.125% 2019	6,500	7,471
Novartis Capital Corp. 3.40% 2024	18,000	18,093
Schering-Plough Corp. 6.00% 2017	7,945	9,216
Merck & Co., Inc. 0.596% 2018³	10,000	10,015
Merck & Co., Inc. 1.10% 2018	11,080	10,923
AbbVie Inc. 1.75% 2017	7,500	7,561
AbbVie Inc. 2.90% 2022	16,775	16,236
Sanofi 0.557% 2014³	10,000	10,002
Sanofi 1.25% 2018	8,000	7,899
Thermo Fisher Scientific Inc. 1.30% 2017	7,000	7,006
Bonds, notes & other debt instruments
	Principal amount	Value
Corporate bonds & notes — Health care (continued)	(000)	(000)

Thermo Fisher Scientific Inc. 2.40% 2019	$ 7,000	$ 7,024
Thermo Fisher Scientific Inc. 4.15% 2024	3,500	3,606
Medco Health Solutions, Inc. 2.75% 2015	4,415	4,547
Express Scripts Inc. 2.65% 2017	12,560	13,055
GlaxoSmithKline Capital Inc. 1.50% 2017	10,039	10,170
GlaxoSmithKline Capital Inc. 5.65% 2018	5,000	5,810
Amgen Inc. 1.875% 2014	5,000	5,050
Amgen Inc. 2.50% 2016	8,850	9,196
UnitedHealth Group Inc. 1.875% 2016	3,650	3,743
UnitedHealth Group Inc. 1.40% 2017	3,020	3,023
UnitedHealth Group Inc. 6.00% 2017	4,750	5,456
Gilead Sciences, Inc. 2.40% 2014	2,865	2,907
Gilead Sciences, Inc. 3.05% 2016	8,285	8,760
Roche Holdings, Inc. 6.00% 2019⁴	9,111	10,798
McKesson Corp. 0.95% 2015	3,035	3,047
McKesson Corp. 1.40% 2018	7,500	7,371
WellPoint, Inc. 5.25% 2016	3,000	3,239
WellPoint, Inc. 2.375% 2017	3,000	3,088
Pfizer Inc. 0.543% 2018³	5,000	5,010
Johnson & Johnson 0.326% 2014³	5,000	5,001
Aetna Inc. 1.50% 2017	5,000	4,991
DENTSPLY International Inc. 2.75% 2016	3,930	4,088
Cardinal Health, Inc. 1.90% 2017	3,700	3,747
Medtronic, Inc. 3.625% 2024	3,000	3,048
Baxter International Inc. 3.20% 2023	3,000	2,957
Dignity Health 3.125% 2022	2,000	1,848
Catholic Health Initiatives, Series 2012, 1.60% 2017	1,000	989
Teva Pharmaceutical Financial IV LLC, 2.25% 2020	960	924
		257,214
Consumer discretionary 2.34%

DaimlerChrysler North America Holding Corp. 1.95% 2014⁴	7,500	7,507
DaimlerChrysler North America Holding Corp. 1.30% 2015⁴	7,500	7,565
DaimlerChrysler North America Holding Corp. 1.098% 2018^3,4	7,500	7,547
DaimlerChrysler North America Holding Corp. 1.875% 2018⁴	8,900	8,956
DaimlerChrysler North America Holding Corp. 2.375% 2018⁴	7,000	7,121
Comcast Corp. 5.85% 2015	3,000	3,266
Comcast Corp. 5.90% 2016	10,000	11,022
Comcast Corp. 6.30% 2017	9,000	10,582
Comcast Corp. 3.60% 2024	7,500	7,576
Volkswagen International Finance NV 0.857% 2014^3,4	15,000	15,006
Volkswagen International Finance NV 1.125% 2016⁴	5,000	5,013
Volkswagen International Finance NV 2.125% 2018⁴	10,000	10,076
Walt Disney Co. 0.875% 2014	7,000	7,040
Walt Disney Co. 1.10% 2017	11,685	11,642
NBCUniversal Media, LLC 2.10% 2014	7,500	7,510
NBCUniversal Media, LLC 2.875% 2016	7,000	7,297
Toyota Motor Credit Corp. 0.875% 2015	7,500	7,555
Toyota Motor Credit Corp. 1.75% 2017	5,000	5,107
Dollar General Corp. 1.875% 2018	12,000	11,887
Dollar General Corp. 3.25% 2023	65	61
Ford Motor Credit Co. 1.70% 2016	7,500	7,609
Ford Motor Credit Co. 1.50% 2017	2,500	2,505
Carnival Corp. 3.95% 2020	9,417	9,713
Bonds, notes & other debt instruments
	Principal amount	Value
Corporate bonds & notes — Consumer discretionary (continued)	(000)	(000)

Time Warner Inc. 4.75% 2021	$ 8,750	$ 9,642
Viacom Inc. 2.50% 2018	5,825	5,953
Viacom Inc. 4.25% 2023	1,090	1,128
Thomson Reuters Corp. 1.30% 2017	4,360	4,360
Thomson Reuters Corp. 4.30% 2023	2,000	2,059
Time Warner Cable Inc. 7.50% 2014	5,430	5,458
CBS Corp. 1.95% 2017	4,800	4,877
Target Corp. 6.00% 2018	4,055	4,720
Cox Communications, Inc. 6.25% 2018⁴	250	289
		217,649
Telecommunication services 1.98%

Verizon Communications Inc. 3.00% 2016	13,000	13,582
Verizon Communications Inc. 3.65% 2018	25,000	26,670
Verizon Communications Inc. 5.15% 2023	34,210	37,558
AT&T Inc. 0.90% 2016	5,000	5,020
AT&T Inc. 2.40% 2016	16,530	17,085
AT&T Inc. 2.95% 2016	8,000	8,361
AT&T Inc. 1.144% 2018³	5,000	5,061
Deutsche Telekom International Finance BV 4.875% 2014	5,000	5,075
Deutsche Telekom International Finance BV 3.125% 2016⁴	10,250	10,718
Deutsche Telekom International Finance BV 2.25% 2017⁴	5,600	5,756
France Télécom 4.375% 2014	5,000	5,075
France Télécom 2.125% 2015	10,000	10,192
Orange SA 2.75% 2019	5,000	5,073
Vodafone Group PLC 5.375% 2015	12,000	12,533
Telefónica Emisiones, SAU 3.729% 2015	5,000	5,156
Telefónica Emisiones, SAU 3.992% 2016	5,000	5,261
Telecom Italia Capital SA 6.175% 2014	6,000	6,090
		184,266
Industrials 1.43%

General Electric Co. 0.85% 2015	9,000	9,059
General Electric Capital Corp. 1.00% 2015	11,300	11,408
General Electric Capital Corp., Series A, 2.25% 2015	9,500	9,780
General Electric Capital Corp. 2.95% 2016	3,255	3,411
General Electric Capital Corp. 2.30% 2017	16,135	16,736
General Electric Corp. 5.25% 2017	7,500	8,564
General Electric Capital Corp., Series A, 5.625% 2017	3,000	3,440
General Electric Capital Corp., Series A, 6.00% 2019	7,000	8,307
United Technologies Corp. 1.80% 2017	12,655	12,936
Canadian National Railway Co. 5.85% 2017	7,000	8,095
Norfolk Southern Corp. 5.75% 2016	7,190	7,828
Union Pacific Corp. 5.70% 2018	5,900	6,839
Boeing Company 0.95% 2018	6,500	6,338
Paccar Financial Corp. 0.841% 2018³	5,000	5,041
BAE Systems Holdings Inc. 4.95% 2014⁴	4,500	4,547
Volvo Treasury AB 5.95% 2015⁴	4,300	4,532
Atlas Copco AB 5.60% 2017⁴	4,000	4,459
Continental Airlines, Inc., Series 2001-1, Class A-1, 6.703% 2022⁵	1,042	1,146
		132,466
Bonds, notes & other debt instruments
Corporate bonds & notes (continued)	Principal amount	Value
Information technology 1.07%	(000)	(000)

International Business Machines Corp. 1.95% 2016	$ 9,650	$ 9,954
International Business Machines Corp. 2.00% 2016	7,000	7,197
International Business Machines Corp. 5.70% 2017	5,000	5,761
International Business Machines Corp. 1.25% 2018	10,000	9,930
International Business Machines Corp. 1.625% 2020	7,500	7,173
International Business Machines Corp. 3.625% 2024	6,635	6,687
Cisco Systems, Inc. 0.493% 2014³	7,300	7,301
Cisco Systems, Inc. 1.10% 2017	7,000	7,031
Cisco Systems, Inc. 0.734% 2019³	10,000	10,061
Oracle Corp. 1.20% 2017	3,000	2,995
Oracle Corp. 0.819% 2019³	8,500	8,563
Oracle Corp. 2.375% 2019	7,000	7,162
Google Inc. 1.25% 2014	5,000	5,012
Xerox Corp. 2.95% 2017	2,500	2,619
Samsung Electronics America, Inc. 1.75% 2017⁴	1,500	1,505
		98,951
Materials 0.98%

Glencore Xstrata LLC 1.599% 2019^3,4	5,000	4,879
Glencore Xstrata LLC 2.50% 2019⁴	9,000	8,867
Xstrata Canada Financial Corp. 4.95% 2021⁴	8,500	8,905
Glencore Xstrata LLC 4.125% 2023⁴	3,000	2,887
Rio Tinto Finance (USA) Ltd. 2.25% 2016	7,000	7,216
Rio Tinto Finance (USA) Ltd. 2.50% 2016	10,000	10,368
Rio Tinto Finance (USA) Ltd. 1.625% 2017	7,000	7,055
BHP Billiton Finance (USA) Ltd. 5.50% 2014	5,865	5,887
BHP Billiton Finance (USA) Ltd. 2.05% 2018	7,780	7,884
BHP Billiton Finance (USA) Ltd. 3.85% 2023	4,750	4,880
Praxair, Inc. 1.05% 2017	7,500	7,398
Newcrest Finance Pty Ltd. 4.45% 2021⁴	6,700	6,036
Ecolab Inc. 3.00% 2016	5,455	5,741
Mosaic Co. 4.25% 2023	3,000	3,050
		91,053
Total corporate bonds & notes		2,613,309
Mortgage-backed obligations 9.22%
Federal agency mortgage-backed obligations⁵ 4.76%

Fannie Mae 7.00% 2015	97	100
Fannie Mae 7.00% 2016	90	94
Fannie Mae 11.50% 2019	5	5
Fannie Mae 5.00% 2023	1,807	1,962
Fannie Mae 6.00% 2024	874	967
Fannie Mae 6.00% 2026	623	690
Fannie Mae 9.041% 2026³	166	188
Fannie Mae 3.00% 2027	42,578	44,194
Fannie Mae 2.50% 2028	991	999
Fannie Mae 2.50% 2028	982	990
Fannie Mae 2.50% 2028	975	983
Fannie Mae 2.50% 2028	969	977
Fannie Mae 2.50% 2028	962	970
Fannie Mae 2.50% 2028	901	909
Fannie Mae 2.50% 2028	885	892
Bonds, notes & other debt instruments
	Principal amount	Value
Mortgage-backed obligations — Federal agency mortgage-backed obligations⁵ (continued)	(000)	(000)

Fannie Mae 2.50% 2028	$ 878	$ 886
Fannie Mae 2.50% 2028	663	669
Fannie Mae 2.50% 2028	623	628
Fannie Mae 2.50% 2028	495	499
Fannie Mae 2.50% 2028	440	443
Fannie Mae 6.00% 2028	1,379	1,530
Fannie Mae 6.00% 2028	489	543
Fannie Mae 6.00% 2028	472	524
Fannie Mae 2.50% 2029⁶	65,000	65,203
Fannie Mae 6.50% 2034	1,490	1,675
Fannie Mae 2.224% 2037³	1,172	1,244
Fannie Mae 2.403% 2037³	5,095	5,430
Fannie Mae 2.502% 2037³	3,029	3,248
Fannie Mae 7.00% 2037	348	393
Fannie Mae 7.50% 2037	84	96
Fannie Mae 2.348% 2038³	1,227	1,306
Fannie Mae 5.301% 2038³	381	408
Fannie Mae 3.73% 2039³	348	371
Fannie Mae 3.88% 2039³	547	577
Fannie Mae 3.942% 2039³	229	243
Fannie Mae 3.992% 2039³	2,680	2,833
Fannie Mae 6.50% 2039	1,045	1,168
Fannie Mae 3.251% 2040³	8,149	8,732
Fannie Mae 4.191% 2040³	3,886	4,141
Fannie Mae 4.392% 2040³	4,813	5,134
Fannie Mae 5.50% 2040	2,151	2,383
Fannie Mae 5.50% 2040	1,181	1,304
Fannie Mae 3.42% 2041³	4,690	4,953
Fannie Mae 3.556% 2041³	8,832	9,257
Fannie Mae 2.06% 2042³	10,136	10,407
Fannie Mae 2.196% 2042³	11,667	12,031
Fannie Mae 2.591% 2042³	22,176	22,358
Fannie Mae 2.626% 2042³	3,694	3,804
Fannie Mae 2.951% 2042³	3,270	3,354
Fannie Mae 4.00% 2042	24,358	25,564
Fannie Mae 3.00% 2043	6,051	5,896
Fannie Mae 4.50% 2044⁶	38,000	40,819
Fannie Mae 7.00% 2047	72	80
Fannie Mae 3.874% 2050³	1,870	1,983
Fannie Mae, Series 2001-4, Class GA, 9.521% 2025³	155	178
Fannie Mae, Series 2001-4, Class NA, 10.545% 2025³	121	135
Fannie Mae, Series 2002-W7, Class A-5, 7.50% 2029	499	587
Fannie Mae, Series 2001-20, Class D, 11.007% 2031³	24	26
Fannie Mae, Series 2005-29, Class AK, 4.50% 2035	935	944
Fannie Mae, Series 2006-96, Class MO, principal only, 0% 2036	1,856	1,746
Fannie Mae, Series 2006-43, Class PX, 6.00% 2036	6,302	7,023
Fannie Mae, Series 2006-49, Class PA, 6.00% 2036	1,973	2,193
Fannie Mae, Series 2006-123, Class BO, principal only, 0% 2037	4,827	4,408
Fannie Mae, Series 2007-114, Class A7, 0.356% 2037³	12,500	12,320
Fannie Mae, Series 2007-33, Class HE, 5.50% 2037	3,294	3,606
Fannie Mae, Series 2001-T10, Class A-1, 7.00% 2041	146	171
Fannie Mae, Series 2001-50, Class BA, 7.00% 2041	113	128
Fannie Mae, Series 2002-W3, Class A-5, 7.50% 2041	583	689
Freddie Mac 5.00% 2023	1,898	2,050
Bonds, notes & other debt instruments
	Principal amount	Value
Mortgage-backed obligations — Federal agency mortgage-backed obligations⁵ (continued)	(000)	(000)

Freddie Mac 5.00% 2023	$ 677	$ 731
Freddie Mac 5.00% 2024	433	472
Freddie Mac 4.00% 2026	7,118	7,612
Freddie Mac 6.00% 2026	157	174
Freddie Mac 6.00% 2026	61	67
Freddie Mac 6.50% 2027	1,216	1,354
Freddie Mac 2.742% 2037³	1,280	1,362
Freddie Mac 6.00% 2037	1,320	1,467
Freddie Mac 6.00% 2037	389	432
Freddie Mac 2.344% 2038³	3,533	3,733
Freddie Mac 2.801% 2038³	1,238	1,317
Freddie Mac 3.638% 2039³	1,466	1,573
Freddie Mac 3.417% 2041³	2,066	2,201
Freddie Mac 5.00% 2041	808	884
Freddie Mac 2.802% 2043³	24,196	24,941
Freddie Mac 3.00% 2043	17,075	16,601
Freddie Mac, Series 1567, Class A, 0.555% 2023³	26	26
Freddie Mac, Series 2626, Class NG, 3.50% 2023	99	103
Freddie Mac, Series T-041, Class 3-A, 6.562% 2032³	350	412
Freddie Mac, Series 3061, Class PN, 5.50% 2035	3,499	3,854
Freddie Mac, Series 3171, Class MO, principal only, 0% 2036	4,193	3,788
Freddie Mac, Series 3213, Class OG, principal only, 0% 2036	2,103	1,924
Freddie Mac, Series 3156, Class NG, 6.00% 2036	2,298	2,558
Freddie Mac, Series 3292, Class BO, principal only, 0% 2037	598	551
Freddie Mac, Series 3271, Class OA, 6.00% 2037	2,963	3,281
Government National Mortgage Assn. 4.654% 2061	11,421	12,511
Government National Mortgage Assn. 5.048% 2063	1,818	1,967
Government National Mortgage Assn. 2.50% 2042³	2,786	2,877
		442,014
Commercial mortgage-backed securities⁵ 4.15%

Greenwich Capital Commercial Funding Corp., Series 2005-GG5, Class A-4-1, 5.243% 2037³	8,845	8,863
Greenwich Capital Commercial Funding Corp., Series 2006-GG7, Class A-4, 5.82% 2038³	24,647	26,942
Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class A-4, 5.444% 2039	2,950	3,256
Greenwich Capital Commercial Funding Corp., Series 2007-GG11, Class A-1-A, 5.704% 2049	10,318	11,639
Wachovia Bank Commercial Mortgage Trust, Series 2005-C16, Class A-PB, 4.692% 2041	95	95
Wachovia Bank Commercial Mortgage Trust, Series 2007-C30, Class A-5, 5.342% 2043	15,000	16,563
Wachovia Bank Commercial Mortgage Trust, Series 2006-C25, Class A1A, 5.722% 2043³	9,879	10,801
Wachovia Bank Commercial Mortgage Trust, Series 2005-C22, Class A-4, 5.291% 2044³	8,981	9,534
Wachovia Bank Commercial Mortgage Trust, Series 2007-C32, Class A-3, 5.75% 2049³	7,500	8,344
Hilton USA Trust, Series 2013-HLF-AFX, 2.662% 2030⁴	25,562	25,791
Hilton USA Trust, Series 2013-HLF, BFX, 3.367% 2030⁴	4,250	4,337
Hilton USA Trust, Series 2013-HLF, CFX, 3.7141% 2030⁴	8,750	8,895
Hilton USA Trust, Series 2013-HLF, AFL, 1.157% 2030^3,4	20,000	20,031
Hilton USA Trust, Series 2013-HLF, BFL, 1.657% 2030^3,4	5,000	5,008
Hilton USA Trust Series 2013-HLF, CFL, 2.057% 2030^3,4	7,000	7,013
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-CIBC12, Class A-3B, 4.846% 2037³	818	819
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP3, Class A-4B, 4.996% 2042³	1,000	1,053
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2006-CB-16, Class A1A, 5.546% 2045	7,858	8,606
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2011-C3A, Class A-2, 3.673% 2046⁴	9,450	9,902
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2007-CB19, Class A-4, 5.712% 2049³	10,050	11,247
Morgan Stanley Capital I Trust, Series 2006-IQ12, Class A1A, 5.319% 2043	28,533	31,196
ML-CFC Commercial Mortgage Trust, Series 2006-2, Class A-1-A, 5.873% 2046³	5,947	6,521
ML-CFC Commercial Mortgage Trust, Series 2006-4, Class A-3, 5.172% 2049	3,000	3,250
ML-CFC Commercial Mortgage Trust, Series 2007-8, Class A-3, 5.894% 2049³	12,250	13,800
Bonds, notes & other debt instruments
	Principal amount	Value
Mortgage-backed obligations — Commercial mortgage-backed securities⁵ (continued)	(000)	(000)

Banc of America Commercial Mortgage Inc., Series 2006-1, Class A1A, 5.378% 2045³	$20,873	$ 22,413
Commercial Mortgage Trust, Series 2006-C8, Class A1A, 5.292% 2046	17,131	18,747
CS First Boston Mortgage Securities Corp., Series 2004-C2, Class E, 5.69% 2036³	2,000	2,211
CS First Boston Mortgage Securities Corp., Series 2006-C4, Class A-3, 5.467% 2039	13,984	15,242
LB-UBS Commercial Mortgage Trust, Series 2006-C3, Class A1A, 5.641% 2039³	3,035	3,297
LB-UBS Commercial Mortgage Trust, Series 2007-C2, Class A-1-A, 5.387% 2040	8,622	9,532
J.P. Morgan Chase Commercial Mortgage Securities Trust, Series 2006-LDP8, Class A-4, 5.399% 2045	4,956	5,401
J.P. Morgan Chase Commercial Mortgage Securities Trust, Series 2006-LDP7, Class A-M, 5.873% 2045³	6,500	7,181
DBUBS Mortgage Trust, Series 2011-LC1A, Class A1, 3.742% 2046⁴	8,478	8,884
Bear Stearns Commercial Mortgage Securities Trust, Series 2007-PW17, Class A-4, 5.694% 2050³	7,005	7,891
Crown Castle Towers LLC, Series 2010-1, Class C, 4.523% 2035⁴	6,000	6,202
Morgan Stanley Capital I Trust, Series 2011-C3, Class A-2, 3.224% 2049	5,684	5,960
LB-UBS Commercial Mortgage Trust, Series 2007-C7, Class A-M, 6.17% 2045³	4,500	5,184
Aventura Mall Trust, Series A, 3.743% 2032^3,4	4,300	4,506
GE Commercial Mortgage Corp., Series 2004-C3, Class B, 5.351% 2039³	2,000	2,026
GE Commercial Mortgage Corp., Series 2005-C4, Class A-3A, 5.311% 2045³	1,151	1,156
DBUBS Mortgage Trust, Series 2011-LC2A, Class A-2, 3.386% 2044⁴	2,850	2,991
GS Mortgage Securities Corp. II, Series 2011-GC3, Class A-2, 3.645% 2044⁴	1,175	1,235
Morgan Stanley Capital I Trust, Series 2006-IQ11, Class A-M, 5.662% 2042³	1,000	1,086
Bear Stearns Commercial Mortgage Securities Inc., Series 2005-PWR9, Class A-AB, 4.804% 2042	968	980
		385,631
Collateralized mortgage-backed obligations (privately originated)⁵ 0.18%

Freddie Mac, Series 2013-DN2, Class M-1, 1.606% 2023³	3,316	3,335
Freddie Mac, Series 2013-DN1, Class M-1, 3.556% 2023³	3,978	4,132
Freddie Mac, Series 2014-DN1, Class M-1, 1.155% 2024³	7,575	7,619
CS First Boston Mortgage Securities Corp., Series 2002-34, Class I-A-1, 7.50% 2032	231	248
CS First Boston Mortgage Securities Corp., Series 2002-30, Class I-A-1, 7.50% 2032	223	242
CS First Boston Mortgage Securities Corp., Series 2003-21, Class V-A-1, 6.50% 2033	314	338
CS First Boston Mortgage Securities Corp., Series 2003-29, Class V-A-1, 7.00% 2033	804	884
Paine Webber CMO, Series O, Class 5, 9.50% 2019	44	48
		16,846
Other mortgage-backed obligations⁵ 0.13%

Bank of Montreal 2.85% 2015⁴	7,500	7,737
Northern Rock PLC 5.625% 2017⁴	3,150	3,581
Royal Bank of Canada 3.125% 2015⁴	1,000	1,031
		12,349
Total mortgage-backed obligations		856,840
Federal agency bonds & notes 3.76%

Fannie Mae 2.625% 2014	9,000	9,156
Fannie Mae 2.75% 2014	20,000	20,015
Fannie Mae 3.00% 2014	8,250	8,375
Fannie Mae 1.625% 2015	20,000	20,443
Fannie Mae 2.375% 2015	25,000	25,746
Fannie Mae 0.50% 2016	14,630	14,664
Fannie Mae 0.875% 2018	15,000	14,701
Fannie Mae 1.875% 2018	25,110	25,509
Fannie Mae, Series 2012-M13, multifamily 1.246% 2017	42,658	42,825
Fannie Mae, Series 2012-M8, multifamily 1.52% 2019	8,335	8,375
Fannie Mae, Series 2014-M2, Class A2, multifamily 3.513% 2023³	6,405	6,544
Bonds, notes & other debt instruments
	Principal amount	Value
Federal agency bonds & notes (continued)	(000)	(000)

Freddie Mac 2.50% 2014	$11,000	$ 11,034
Freddie Mac 5.00% 2014	10,000	10,178
Freddie Mac 0.75% 2018	10,000	9,832
Freddie Mac 4.875% 2018	11,135	12,750
Freddie Mac 1.25% 2019	25,000	24,168
Freddie Mac 1.375% 2020	20,000	19,214
Freddie Mac, Series K714, Class A-2, multifamily 3.034% 2020³	3,580	3,721
Freddie Mac, Series K020, Class A2, multifamily 2.373% 2022	7,500	7,233
Freddie Mac, Series K021, Class A2, multifamily 2.396% 2022	9,195	8,875
Freddie Mac, Series K036, Class A-2, multifamily 3.527% 2023³	6,360	6,553
Federal Home Loan Bank 5.50% 2014	5,000	5,119
Federal Home Loan Bank 5.375% 2016	1,420	1,592
Federal Home Loan Bank 1.75% 2018	25,000	25,161
Federal Farm Credit Banks 2.625% 2014	5,000	5,014
Federal Agricultural Mortgage Corp. 5.125% 2017⁴	1,070	1,208
CoBank, ACB 0.843% 2022^3,4	935	860
		348,865
Bonds & notes of governments & government agencies outside the U.S. 1.70%

Polish Government 5.00% 2015	8,000	8,585
Polish Government 6.375% 2019	2,825	3,369
Polish Government 3.00% 2023	15,000	14,170
Australia Government Agency-Guaranteed, Commonwealth Bank of Australia 2.70% 2014⁴	1,045	1,064
Australia Government Agency-Guaranteed, Commonwealth Bank of Australia 3.625% 2014⁴	14,000	14,145
Bermudan Government 5.603% 2020⁴	7,500	8,250
Bermudan Government 4.854% 2024⁴	3,525	3,538
Swedish Government 1.00% 2014⁴	10,600	10,621
Finland (Republic of) 1.25% 2015⁴	10,000	10,153
United Mexican States Government Global, Series A, 4.00% 2023	10,000	10,138
Netherlands Government 1.00% 2017	10,000	10,069
Europe Government Agency-Guaranteed, Dexia Credit Local 2.75% 2014⁴	10,000	10,035
European Investment Bank 3.125% 2014	9,250	9,318
Netherlands Government Agency-Guaranteed, ING Bank NV 3.90% 2014⁴	9,000	9,013
France Government Agency-Guaranteed, Société Finance 3.375% 2014⁴	5,900	5,932
France Government Agency-Guaranteed, Société Finance 2.875% 2014⁴	5,440	5,518
Chilean Government 3.875% 2020	5,000	5,325
Spanish Government 4.00% 2018⁴	5,000	5,284
Asian Development Bank 2.75% 2014	5,100	5,125
Aries Vermögensverwaltungs GmbH, Series C, 9.60% 2014	4,250	4,484
Indonesia (Republic of) 5.875% 2020⁴	2,460	2,718
Indonesia (Republic of) 5.875% 2020	140	155
Indonesia (Republic of) 4.875% 2021	200	208
Indonesia (Republic of) 3.75% 2022	200	190
New Zealand Government Agency-Guaranteed, Westpac Securities Co. 3.45% 2014⁴	730	739
		158,146
Asset-backed obligations⁵ 1.35%

Aesop Funding LLC, Series 2012-3A, Class A, 2.10% 2019⁴	10,000	10,111
Aesop Funding LLC, Series 2013-2A, Class A, 2.97% 2020⁴	37,535	38,791
Hertz Vehicle Financing LLC, Rental Car Asset-backed Notes, Series 2013-1A, Class A-1, 1.12% 2017⁴	22,000	22,059
Hertz Vehicle Financing LLC, Rental Car Asset-backed Notes, Series 2013-1A, Class A-2, 1.83% 2019⁴	15,000	14,870
CarMaxAuto Owner Trust, Series 2014-1, Class A-2, 0.47% 2017	4,470	4,471
CarMaxAuto Owner Trust, Series 2014-1, Class A-3, 0.79% 2018	5,090	5,093
Aesop Funding II LLC, Series 2013-1A, Class A, 1.92% 2019⁴	8,360	8,309
Bonds, notes & other debt instruments
	Principal amount	Value
Asset-backed obligations⁵ (continued)	(000)	(000)

Enterprise Fleet Financing LLC, Series 2014-1, Class A2, 0.87% 2019⁴	$ 7,085	$ 7,088
MBNA Credit Card Master Note Trust, Series 2004-1, Class B, 4.45% 2016	4,250	4,261
Lehman ABS Manufactured Housing Contract Trust, Series 2001-B, Class A-3, 4.35% 2040	3,146	3,242
Honda Auto Receivables Owner Trust, Series 2014-1, Class A-3, 0.67% 2017	2,960	2,962
Hyundai Auto Receivables Trust, Series 2014-A, Class A2, 0.46% 2017	2,415	2,416
CenterPoint Energy Transition Bond Co. III, LLC, Series 2008, Class A-1, 4.192% 2020	1,081	1,137
Green Tree Financial Corp., Series 1997-6, Class A-7, 7.14% 2029	400	423
		125,233
Municipals 0.60%

State of Florida, Hurricane Catastrophe Fund Finance Corp., Revenue Bonds, Series 2013-A, 2.107% 2018	17,500	17,581
State of Florida, Hurricane Catastrophe Fund Finance Corp., Revenue Bonds, Series 2013-A, 2.995% 2020	12,500	12,421
State of New Jersey, General Obligation Refunding Bonds,
Series H, Assured Guaranty Municipal insured, 5.25% 2015	8,000	8,550
State of New Jersey, Transportation Trust Fund Authority, Transportation System Revenue Refunding Bonds,
Series 2013-B, 1.758% 2018	7,500	7,419
State of Washington, Energy Northwest, Columbia Generating Station Electric Revenue Bonds,
Series 2012-E, 2.197% 2019	5,500	5,517
State of Texas, Board of Regents of the University of Texas System, Revenue Refunding Financing System Bonds
(Build America Bonds — Direct Payment), Series 2010-D, 2.616% 2015	4,500	4,651
		56,139
Total bonds, notes & other debt instruments (cost: $8,639,933,000)		8,782,065
Preferred securities 0.03%

U.S. government agency securities 0.03%	Shares

CoBank, ACB, Class E, noncumulative⁴	4,000	2,712
Total preferred securities (cost: $3,985,000)		2,712
	Principal amount
Short-term securities 6.13%	(000)

Federal Home Loan Bank 0.07%–0.10% due 5/16–7/25/2014	$188,900	188,861
Abbott Laboratories 0.06%–0.10% due 3/20–5/19/2014⁴	64,800	64,792
Coca-Cola Co. 0.11%–0.13% due 5/12–5/22/2014⁴	59,500	59,488
Chevron Corp. 0.07% due 3/17–4/21/2014⁴	58,400	58,395
Wal-Mart Stores, Inc. 0.05%–0.08% due 3/19–4/8/2014⁴	50,200	50,197
ExxonMobil Corp. 0.05%–0.07% due 3/17–3/18/2014	31,800	31,799
Emerson Electric Co. 0.08% due 3/28/2014⁴	24,700	24,698
Fannie Mae 0.09%–0.12% due 5/2–7/23/2014	17,800	17,796
General Electric Co. 0.05% due 3/3/2014	17,400	17,400
John Deere Financial Ltd. 0.07% due 3/17/2014⁴	15,000	14,999
Federal Farm Credit Banks 0.16% due 3/25/2014	11,600	11,600
Kimberly-Clark Worldwide Inc. 0.05% due 3/26/2014⁴	11,000	11,000
Freddie Mac 0.10% due 5/2/2014		10,000
9,999
Paccar Financial Corp. 0.08% due 3/25/2014	8,400	8,400
Total short-term securities (cost: $569,401,000)		569,424
Total investment securities (cost: $9,213,319,000)		9,354,201
Other assets less liabilities		(64,677)
Net assets		$9,289,524

A portion of this security was pledged as collateral. The total value of pledged collateral was $1,290,000, which represented .01% of the net assets of the fund.

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

Coupon rate may change periodically.

⁴

Acquired 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 $1,072,824,000, which represented 11.55% of the net assets of the fund.

⁵

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

⁶

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

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.

MFGEFPX-023-0414O-S37654

Summary investment portfolio February 28, 2014	unaudited

Investment mix by security type	Percent of net assets

Portfolio quality summary*	Percent of net assets
U.S. Treasury and agency^†	53.5	%
Aaa/AAA	10.8
Aa/AA	8.2
A/A	14.6
Baa/BBB	7.4
Unrated	0.1
Short-term securities & other assets less liabilities	5.4

Bond ratings, which typically range from Aaa/AAA (highest) to D (lowest), are assigned by credit rating agencies such as Moody’s, Standard & Poor’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 (above) 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 the fund’s investment policies.

^†

These securities are guaranteed by the full faith and credit of the United States government.

4	Intermediate Bond Fund of America

Bonds, notes & other debt instruments 94.54%	Principal amount (000)		Value (000)		Percent of net assets
U.S. Treasury bonds & notes 49.77%
U.S. Treasury 48.34%
2.25% 2014	$	51,000	$	51,273
2.625% 2014		188,250		190,244
0.25% 2015		261,600		261,885
0.25% 2015		135,000		135,031
1.75% 2015¹		100,000		102,217
2.25% 2015		58,000		59,119
4.125% 2015		50,000		52,375
4.25% 2015		50,000		52,951
0.625% 2016		294,250		294,400
0.625% 2016		145,000		145,489
0.625% 2016		125,000		125,151
0.875% 2016		201,500		203,328
1.50% 2016		60,000		61,470
2.00% 2016		70,000		72,428
2.375% 2016		50,000		52,092
4.50% 2016		47,500		51,381
5.125% 2016		96,500		106,517
7.50% 2016		40,000		47,430
0.50% 2017		67,640		66,731		48.34	%
0.625% 2017		318,075		316,049
0.75% 2017		49,250		49,073
0.875% 2017		145,000		145,407
1.00% 2017		247,250		249,171
2.50% 2017		153,750		162,032
4.50% 2017		60,000		67,015
4.625% 2017		115,000		128,193
8.75% 2017		25,000		31,292
0.75% 2018		50,000		49,224
1.00% 2018		50,000		49,486
1.25% 2018		62,000		61,474
1.375% 2018		70,000		69,992
3.50% 2018		50,000		54,584
1.75% 2022		56,800		54,046
2.50% 2023		223,550		221,770
2.75% 2023		373,250		377,091
6.25% 2023		25,000		32,893
0.625%–8.75% 2015–2044		216,600		239,984
				4,490,288		48.34

U.S. Treasury inflation-protected securities² 1.43%
0.375% 2023		42,060		42,081
1.375% 2044		69,752		70,887		1.43
0.125%–2.00% 2015–2026		19,248		20,277
				133,245		1.43

Total U.S. Treasury bonds & notes				4,623,533		49.77

Intermediate Bond Fund of America

Bonds, notes & other debt instruments (continued)	Principal amount (000)		Value (000)		Percent of net assets
Corporate bonds & notes 28.14%
Telecommunication services 1.98%
Verizon Communications Inc. 5.15% 2023	$	34,210	$	37,558		.40	%
Other securities				146,708		1.58
				184,266		1.98

Other corporate bonds & notes 26.16%
Other securities				2,429,043		26.16

Total corporate bonds & notes				2,613,309		28.14

Mortgage-backed obligations 9.22%
Federal agency mortgage-backed obligations³ 4.76%
Fannie Mae:
3.00% 2027		42,578		44,194
2.50% 2029⁴		65,000		65,203		3.67
4.50% 2044⁴		38,000		40,819
0%–11.50% 2015–2050⁵		183,765		190,975
Freddie Mac 0%–6.562% 2023–2043⁵		81,060		83,468		.90
Other securities				17,355		.19
				442,014		4.76

Collateralized mortgage-backed obligations (privately originated)³ 0.18%
Freddie Mac 1.155%–3.556% 2023–2024⁵		14,869		15,086		.16
Other securities				1,760		.02
				16,846		.18

Other mortgage-backed obligations 4.28%
Other securities				397,980		4.28

Total mortgage-backed obligations				856,840		9.22

Federal agency bonds & notes 3.76%
Fannie Mae:
Series 2012-M13, multifamily 1.246% 2017		42,658		42,825		2.11
0.50%–3.513% 2014–2023⁵		151,730		153,528
Freddie Mac 0.75%–5.00% 2014–2023⁵		113,770		113,558		1.22
Federal Home Loan Bank 1.75%–5.50% 2014–2018		31,420		31,872		.34
Other securities				7,082		.09
				348,865		3.76

6	Intermediate Bond Fund of America

	Principal amount		Value			Percent of
	(000)		(000)			net assets
Asset-backed obligations³ 1.35%
Aesop Funding LLC, Series 2013–2A, Class A, 2.97% 2020⁶	$	37,535	$	38,791			.42	%
Other securities				86,442			.93
				125,233			1.35

Other bonds & notes 2.30%
Other securities				214,285			2.30

Total bonds, notes & other debt instruments (cost: $8,639,933,000)				8,782,065			94.54

Preferred securities 0.03%
U.S. government agency securities 0.03%
Other securities				2,712			.03

Total preferred securities (cost: $3,985,000)				2,712			.03

Short-term securities 6.13%
Federal Home Loan Bank 0.07%–0.10% due 5/16–7/25/2014		188,900		188,861			2.03
Abbott Laboratories 0.06%–0.10% due 3/20–5/19/2014⁶		64,800		64,792			.70
Coca-Cola Co. 0.11%–0.13% due 5/12–5/22/2014⁶		59,500		59,488			.64
Chevron Corp. 0.07% due 3/17–4/21/2014⁶		58,400		58,395			.63
Wal-Mart Stores, Inc. 0.05%–0.08% due 3/19–4/8/2014⁶		50,200		50,197			.54
ExxonMobil Corp. 0.05%–0.07% due 3/17–3/18/2014		31,800		31,799			.34
Fannie Mae 0.09%–0.12% due 5/2–7/23/2014		17,800		17,796			.19
Freddie Mac 0.10% due 5/2/2014		10,000		9,999			.11
Other securities				88,097			.95

Total short-term securities (cost: $569,401,000)				569,424			6.13
Total investment securities (cost: $9,213,319,000)				9,354,201			100.70
Other assets less liabilities				(64,677	)		(.70	)

Net assets			$	9,289,524			100.00	%

This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.

Intermediate Bond Fund of America

Interest rate swaps

The fund has entered into an interest rate swap as shown in the following table. The average notional amount of interest rate swaps was $85,000,000 over the prior two-month period.

Pay/receive floating rate		Floating rate index		Fixed rate		Expiration date		Notional amount (000)		Unrealized depreciation at 2/28/2014 (000)
Pay		3-month USD-LIBOR		0.727%		12/19/2016		$85,000		$(4)

The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.

¹	A portion of this security was pledged as collateral. The total value of pledged collateral was $1,290,000, which represented .01% of the net assets of the fund.
²	Index-linked bond whose principal amount moves with a government price index.
³	Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.
⁴	A portion or all of the security purchased on a TBA basis.
⁵	Coupon rate may change periodically.
⁶	Acquired 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, including those in “Other securities,” was $1,072,824,000, which represented 11.55% of the net assets of the fund.

Key to abbreviation

TBA = To be announced

See Notes to Financial Statements

8	Intermediate Bond Fund of America

Financial statements

Statement of assets and liabilities
at February 28, 2014

unaudited
(dollars in thousands)

Assets:
Investment securities, at value (cost: $9,213,319)			$	9,354,201
Cash				92
Receivables for:
Sales of investments	$	192,325
Sales of fund’s shares		16,791
Interest		43,797		252,913
				9,607,206
Liabilities:
Payables for:
Purchases of investments		296,551
Repurchases of fund’s shares		14,720
Dividends on fund’s shares		409
Investment advisory services		1,531
Services provided by related parties		4,026
Trustees’ deferred compensation		247
Variation margin on interest rate swaps		44
Other		154		317,682
Net assets at February 28, 2014			$	9,289,524

Net assets consist of:
Capital paid in on shares of beneficial interest			$	9,235,880
Distributions in excess of net investment income				(2,627	)
Accumulated net realized loss				(84,607	)
Net unrealized appreciation				140,878
Net assets at February 28, 2014			$	9,289,524

(dollars and shares in thousands, except per-share amounts)

Shares of beneficial interest issued and outstanding (no stated par value) —
unlimited shares authorized (686,566 total shares outstanding)

	Net assets		Shares outstanding		Net asset value per share
Class A	$	6,221,759		459,835	$	13.53
Class B		25,385		1,876		13.53
Class C		168,313		12,440		13.53
Class F-1		612,624		45,278		13.53
Class F-2		185,688		13,724		13.53
Class 529-A		369,260		27,291		13.53
Class 529-B		2,991		221		13.53
Class 529-C		79,230		5,856		13.53
Class 529-E		17,795		1,315		13.53
Class 529-F-1		73,421		5,426		13.53
Class R-1		11,325		837		13.53
Class R-2		134,321		9,927		13.53
Class R-3		149,951		11,082		13.53
Class R-4		118,973		8,793		13.53
Class R-5		42,520		3,143		13.53
Class R-6		1,075,968		79,522		13.53

See Notes to Financial Statements

Intermediate Bond Fund of America

Statement of operations
for the six months ended February 28, 2014

unaudited
(dollars in thousands)

Investment income:
Income:
Interest				$	87,656
*Fees and expenses:**
Investment advisory services	$	9,760
Distribution services		11,069
Transfer agent services		5,516
Administrative services		1,039
Reports to shareholders		318
Registration statement and prospectus		160
Trustees’ compensation		51
Auditing and legal		66
Custodian		12
Other		316			28,307
Net investment income					59,349

Net realized gain and unrealized appreciation on investments and interest rate swaps:
Net realized gain on:
Investments		17,255
Interest rate swaps		81			17,336
Net unrealized appreciation (depreciation) on:
Investments		76,113
Interest rate swaps		(4	)		76,109
Net realized gain and unrealized appreciation on investments and interest rate swaps					93,445

Net increase in net assets resulting from operations				$	152,794

^*	Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements.

See Notes to Financial Statements

10	Intermediate Bond Fund of America

Statements of changes in net assets

(dollars in thousands)

	Six months ended February 28, 2014 *			Year ended August 31, 2013
Operations:
Net investment income	$	59,349		$	120,928
Net realized gain on investments and interest rate swaps		17,336			28,451
Net unrealized appreciation (depreciation) on investments and interest rate swaps		76,109			(299,754	)
Net increase (decrease) in net assets resulting from operations		152,794			(150,375	)

Dividends paid or accrued to shareholders from net investment income		(60,953	)		(135,040	)

Net capital share transactions		(108,483	)		(122,161	)

Total decrease in net assets		(16,642	)		(407,576	)

Net assets:
Beginning of period		9,306,166			9,713,742
End of period (including distributions in excess of net investment income: $(2,627) and $(1,023), respectively)	$	9,289,524		$	9,306,166

* Unaudited.

See Notes to Financial Statements

Intermediate Bond Fund of America

Notes to financial statements

unaudited

1. Organization

Intermediate Bond Fund of America (the “fund”) is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund seeks to provide current income consistent with its maturity and quality standards described in the prospectus and preservation of capital.

The fund has 16 share classes consisting of five retail share classes (Classes A, B and C, as well as two F share classes, F-1 and F-2), five 529 college savings plan share classes (Classes 529-A, 529-B, 529-C, 529-E and 529-F-1) and six retirement plan share classes (Classes R-1, R-2, R-3, R-4, R-5 and R-6). The 529 college savings plan share classes can be used to save for college education. The retirement plan share classes are generally offered only through eligible employer-sponsored retirement plans. The fund’s share classes are described further in the following table:

Share class	Initial sales charge	Contingent deferred sales charge upon redemption	Conversion feature
Classes A and 529-A	Up to 2.50%	None (except 1% for certain redemptions within one year of purchase without an initial sales charge)	None
Classes B and 529-B*	None	Declines from 5% to 0% for redemptions within six years of purchase	Classes B and 529-B convert to Classes A and 529-A, respectively, after eight years
Class C*	None	1% for redemptions within one year of purchase	Class C converts to Class F-1 after 10 years
Class 529-C*	None	1% for redemptions within one year of purchase	None
Class 529-E	None	None	None
Classes F-1, F-2 and 529-F-1	None	None	None
Classes R-1, R-2, R-3, R-4, R-5 and R-6	None	None	None

* Class B, 529-B, C and 529-C shares of the fund are not available for purchase.

Holders of all share classes have equal pro rata rights to assets, dividends and liquidation proceeds. Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses (“class-specific fees and expenses”), primarily due to different arrangements for distribution, administrative and shareholder services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each share class.

12	Intermediate Bond Fund of America

2. Significant accounting policies

The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The fund follows the significant accounting policies described in this section, as well as the valuation policies described in the next section on valuation.

Security transactions and related investment income — Security transactions are recorded by the fund as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities. In the event a security is purchased with a delayed payment date, the fund will segregate liquid assets sufficient to meet its payment obligations. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security.

Class allocations — Income, fees and expenses (other than class-specific fees and expenses) are allocated daily among the various share classes based on the relative value of their settled shares. Realized and unrealized gains and losses are allocated daily among the various share classes based on their relative net assets. Class-specific fees and expenses, such as distribution, administrative and shareholder services, are charged directly to the respective share class.

Dividends and distributions to shareholders — Dividends to shareholders are declared daily after the determination of the fund’s net investment income and are paid to shareholders monthly. Distributions to shareholders are recorded on the ex-dividend date.

3. Valuation

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.

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.

Intermediate Bond Fund of America

Equity securities are generally valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market on which the security trades.

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”)
Corporate bonds & notes; convertible securities		Standard inputs and underlying equity of the issuer
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
Municipal securities		Standard inputs and, for certain distressed securities, cash flows or liquidation values using a net present value calculation based on inputs that include, but are not limited to, financial statements and debt contracts

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. Some securities may be valued based on their effective maturity or average life, which may be shorter than the stated maturity.

14	Intermediate Bond Fund of America

method is deemed most appropriate by the fund’s investment adviser. 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. Interest rate swaps are generally valued by pricing vendors based on market inputs that include the index and term of index, reset frequency, payer/receiver, currency and pay frequency.

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 valuation guidelines adopted by authority of the fund’s board of trustees as further described. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission 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.

Intermediate Bond Fund of America

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 reflected 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 February 28, 2014, all of the fund’s investments were classified as Level 2.

4. Risk factors

Investing in the fund may involve certain risks including, but not limited to, those described below.

Market conditions — The prices of, and the income generated by, the securities held by the fund may decline due to market conditions and other factors, including those directly involving the issuers of securities held by the fund.

Investing in bonds — Rising interest rates will generally cause the prices of bonds and other debt securities to fall. Longer maturity debt securities may be subject to greater price fluctuations than shorter maturity debt securities. In addition, falling interest rates may cause an issuer to redeem, call or refinance a debt security before its stated maturity, which may result in the fund having to reinvest the proceeds in lower yielding securities.

16	Intermediate Bond Fund of America

the loans underlying the securities are prepaid more slowly than expected, the time in which the securities are expected to be paid off could be extended. This may reduce the fund’s cash for potential reinvestment in higher yielding securities.

Investing in securities backed by the U.S. government — Securities backed by the U.S. Treasury or the full faith and credit of the U.S. government are guaranteed only as to the timely payment of interest and principal when held to maturity. Accordingly, the current market values for these securities will fluctuate with changes in interest rates. Securities issued by government-sponsored entities and federal agencies and instrumentalities that are not backed by the full faith and credit of the U.S. government are neither issued nor guaranteed by the U.S. government.

Thinly traded securities — There may be little trading in the secondary market for particular bonds or other debt securities, which may make them more difficult to value, acquire or sell.

Investing in future delivery contracts — Contracts for future delivery of mortgage-related securities, such as to be announced contracts and mortgage dollar rolls, involve the fund selling mortgage-related securities and simultaneously contracting to repurchase similar securities for delivery at a future date at a predetermined price. This can increase the fund’s market exposure, and the market price of the securities the fund contracts to repurchase could drop below their purchase price. While the fund can preserve and generate capital through the use of such contracts by, for example, realizing the difference between the sale price and the future purchase price, the income generated by the fund may be reduced by engaging in such transactions. In addition, these transactions may increase the turnover rate of the fund.

Management — The investment adviser to the fund actively manages the fund’s investments. Consequently, the fund is subject to the risk that the methods and analyses employed by the investment adviser in this process may not produce the desired results. This could cause the fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.

5. Certain investment techniques

Mortgage dollar rolls — The fund has entered into mortgage dollar roll transactions in which the fund sells a mortgage-backed security to a counterparty and simultaneously enters into an agreement with the same counterparty to buy back a similar security on a specific future date at a predetermined price. Mortgage dollar rolls are accounted for as purchase and sale transactions, which may increase the fund’s portfolio turnover rate.

Interest rate swaps — The fund has entered into interest rate swaps, which are agreements to exchange one stream of future interest payments for another based on a specified notional amount. Typically, interest rate swaps exchange a fixed interest rate for a payment that floats relative to a benchmark or vice versa. The fund’s investment adviser uses interest rate swaps to manage the interest rate sensitivity

Intermediate Bond Fund of America

of the fund by increasing or decreasing the duration of the fund or a portion of the fund’s portfolio. Risks may arise as a result of the fund’s investment adviser incorrectly anticipating changes in interest rates, increased volatility, reduced liquidity and the potential inability of counterparties to meet the terms of their agreements.

Upon entering into an interest rate swap contract, the fund is required to deposit cash, U.S. government securities or other liquid securities, which is known as “initial margin.” Generally, the initial margin required for a particular interest rate swap is set and held as collateral by the clearinghouse on which the contract is cleared. The amount of initial margin required may be significantly modified from time to time by the clearinghouse during the term of the contract.

On a daily basis, the fund’s investment adviser records daily interest accruals related to the exchange of future payments as a receivable and payable in the fund’s statement of assets and liabilities. The fund also pays or receives a “variation margin” based on the increase or decrease in the value of the interest rate swaps, including accrued interest, and records variation margin on interest rate swaps in the statement of assets and liabilities. The fund records realized gains and losses on both the net accrued interest and any gain or loss recognized at the time the interest rate swap is closed or expires. Net realized gains or losses, as well as any net unrealized appreciation or depreciation, from interest rate swaps are recorded in the fund’s statement of operations.

The following tables present the financial statement impacts resulting from the fund’s use of interest rate swaps as of February 28, 2014 (dollars in thousands):

	Asset			Liability
Contract	Location on statement of assets and liabilities	Value		Location on statement of assets and liabilities	Value
Interest rate swaps	Variation margin on interest rate swaps	$	—	Variation margin on interest rate swaps	$	44

	Net realized gain			Net unrealized depreciation
Contract	Location on statement of operations	Value		Location on statement of operations	Value
Interest rate swaps	Net realized gain on interest rate swaps	$	81	Net unrealized depreciation on interest rate swaps	$	(4	)

Collateral — The fund has entered into a collateral program due to its use of interest rate swaps. The program calls for the fund to pledge collateral for initial and variation margin by contract. The purpose of the collateral is to cover potential losses that could occur in the event that either party cannot meet its contractual obligations.

18	Intermediate Bond Fund of America

6. Taxation and distributions

Federal income taxation — The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income and net capital gains each year. The fund is not subject to income taxes to the extent such distributions are made. Therefore, no federal income tax provision is required.

As of and during the period ended February 28, 2014, the fund did not have a liability for any unrecognized tax benefits. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statement of operations. During the period, the fund did not incur any interest or penalties.

The fund is not subject to examination by U.S. federal tax authorities for tax years before 2009 and by state tax authorities for tax years before 2008.

Distributions — Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to different treatment for items such as short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase; cost of investments sold; paydowns on fixed-income securities; and net capital losses. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the fund for financial reporting purposes.

The components of distributable earnings on a tax basis are reported as of the fund’s most recent year-end. As of August 31, 2013, the components of distributable earnings on a tax basis were as follows (dollars in thousands):

Undistributed ordinary income	$	572
Capital loss carryforward expiring 2018*		(66,274	)
Post-October capital loss deferral^†		(31,190	)

^*	The capital loss carryforward will be used to offset any capital gains realized by the fund in the current year or in subsequent years through the expiration date. The fund will not make distributions from capital gains while a capital loss carryforward remains.
^†	This deferral is considered incurred in the subsequent year.

Intermediate Bond Fund of America

Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after August 31, 2011, may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.

As of February 28, 2014, the tax basis unrealized appreciation (depreciation) and cost of investment securities were as follows (dollars in thousands):

Gross unrealized appreciation on investment securities	$	151,022
Gross unrealized depreciation on investment securities		(16,424	)
Net unrealized appreciation on investment securities		134,598
Cost of investment securities		9,219,603

Tax-basis distributions paid or accrued to shareholders from ordinary income were as follows (dollars in thousands):

Share class	Six months ended February 28, 2014			Year ended August 31, 2013
Class A		$	41,877		$	96,681
Class B			86			327
Class C			495			1,583
Class F-1			3,813			7,945
Class F-2			1,378			3,997
Class 529-A			2,316			5,347
Class 529-B			8			36
Class 529-C			190			536
Class 529-E			90			217
Class 529-F-1			538			1,197
Class R-1			32			97
Class R-2			376			1,013
Class R-3			771			1,823
Class R-4			769			1,775
Class R-5			333			764
Class R-6			7,881			11,702
Total		$	60,953		$	135,040

20	Intermediate Bond Fund of America

7. Fees and transactions with related parties

CRMC, the fund’s investment adviser, is the parent company of American Funds Distributors,^® Inc. (“AFD”), the principal underwriter of the fund’s shares, and American Funds Service Company^® (“AFS”), the fund’s transfer agent. CRMC, AFD and AFS are considered related parties to the fund.

Investment advisory services — The fund has an investment advisory and service agreement with CRMC that provides for monthly fees accrued daily. These fees are based on a series of decreasing annual rates beginning with 0.300% on the first $60 million of daily net assets and decreasing to 0.140% on such assets in excess of $10 billion. The agreement also provides for monthly fees, accrued daily, based on a series of decreasing rates beginning with 3.00% on the first $3,333,333 of the fund’s monthly gross income and decreasing to 2.00% on such income in excess of $8,333,333. For the six months ended February 28, 2014, the investment advisory services fee was $9,760,000, which was equivalent to an annualized rate of 0.213% of average daily net assets.

Class-specific fees and expenses — Expenses that are specific to individual share classes are accrued directly to the respective share class. The principal class-specific fees and expenses are described below:

Distribution services — The fund has plans of distribution for all share classes, except Class F-2, R-5 and R-6 shares. Under the plans, the board of trustees approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares and service existing accounts. The plans provide for payments, based on an annualized percentage of average daily net assets, ranging from 0.30% to 1.00% as noted in this section. In some cases, the board of trustees has limited the amounts that may be paid to less than the maximum allowed by the plans. All share classes with a plan may use up to 0.25% of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.

For Class A and 529-A shares, distribution-related expenses include the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. These share classes reimburse AFD for amounts billed within the prior 15 months but only to the extent that the overall annual expense limit of 0.30% is not exceeded. As of February 28, 2014, there were no unreimbursed expenses subject to reimbursement for Class A or 529-A shares.

Intermediate Bond Fund of America

Share class	Currently approved limits			Plan limits
Class A		0.30	%		0.30	%
Class 529-A		0.30			0.50
Classes B and 529-B		1.00			1.00
Classes C, 529-C and R-1		1.00			1.00
Class R-2		0.75			1.00
Classes 529-E and R-3		0.50			0.75
Classes F-1, 529-F-1 and R-4		0.25			0.50

Transfer agent services — The fund has a shareholder services agreement with AFS under which the fund compensates AFS for providing transfer agent services to each of the fund’s share classes. These services include recordkeeping, shareholder communications and transaction processing. In addition, the fund reimburses AFS for amounts paid to third parties for performing transfer agent services on behalf of fund shareholders.

Administrative services — The fund has an administrative services agreement with CRMC under which the fund compensates CRMC for providing administrative services to Class A, C, F, 529 and R shares. These services include, but are not limited to, coordinating, monitoring, assisting and overseeing third parties that provide services to fund shareholders. Under the agreement, Class A shares pay an annual fee of 0.01% and Class C, F, 529 and R shares pay an annual fee of 0.05% of their respective average daily net assets.

529 plan services — Each 529 share class is subject to service fees to compensate the Commonwealth of Virginia for the maintenance of the 529 college savings plan. The quarterly fee is based on a series of decreasing annual rates beginning with 0.10% on the first $30 billion of the net assets invested in Class 529 shares of the American Funds and decreasing to 0.06% on such assets between $120 billion and $150 billion. The fee for any given calendar quarter is accrued and calculated on the basis of the average net assets of Class 529 shares of the American Funds for the last month of the prior calendar quarter. The fee is included in other expenses in the fund’s statement of operations. The Commonwealth of Virginia is not considered a related party.

22	Intermediate Bond Fund of America

For the six months ended February 28, 2014, class-specific expenses under the agreements were as follows (dollars in thousands):

Share class	Distribution services		Transfer agent services		Administrative services		529 plan services
Class A		$7,299		$4,118		$312	Not applicable
Class B		147		20		Not applicable	Not applicable
Class C		916		119		46	Not applicable
Class F-1		733		385		148	Not applicable
Class F-2		Not applicable		90		44	Not applicable
Class 529-A		409		206		93	$182
Class 529-B		18		2		1	2
Class 529-C		407		48		21	40
Class 529-E		44		6		5	8
Class 529-F-1		—		41		18	36
Class R-1		58		7		3	Not applicable
Class R-2		506		262		34	Not applicable
Class R-3		386		139		39	Not applicable
Class R-4		146		61		29	Not applicable
Class R-5		Not applicable		11		10	Not applicable
Class R-6		Not applicable		1		236	Not applicable
Total class-specific expenses		$11,069		$5,516		$1,039	$268

Trustees’ deferred compensation — Trustees who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund or other American Funds. These amounts represent general, unsecured liabilities of the fund and vary according to the total returns of the selected funds. Trustees’ compensation of $51,000 in the fund’s statement of operations includes $34,000 in current fees (either paid in cash or deferred) and a net increase of $17,000 in the value of the deferred amounts.

Affiliated officers and trustees — Officers and certain trustees of the fund are or may be considered to be affiliated with CRMC, AFD and AFS. No affiliated officers or trustees received any compensation directly from the fund.

Intermediate Bond Fund of America

8. Capital share transactions

Capital share transactions in the fund were as follows (dollars and shares in thousands):

	Sales*				Reinvestments of dividends				Repurchases*						Net (decrease) increase
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares

Six months ended February 28, 2014

Class A	$	644,460		47,825	$	40,875		3,029	$	(941,571	)		(69,889	)	$	(256,236	)		(19,035	)
Class B		2,159		160		85		6		(12,089	)		(898	)		(9,845	)		(732	)
Class C		19,061		1,415		476		36		(56,023	)		(4,160	)		(36,486	)		(2,709	)
Class F-1		115,144		8,545		3,805		282		(86,627	)		(6,430	)		32,322			2,397
Class F-2		44,177		3,278		1,045		77		(33,759	)		(2,505	)		11,463			850
Class 529-A		34,817		2,585		2,325		172		(56,168	)		(4,171	)		(19,026	)		(1,414	)
Class 529-B		277		21		8		1		(1,662	)		(124	)		(1,377	)		(102	)
Class 529-C		7,748		575		189		14		(16,102	)		(1,196	)		(8,165	)		(607	)
Class 529-E		2,130		158		90		7		(3,535	)		(263	)		(1,315	)		(98	)
Class 529-F-1		7,845		582		540		40		(11,593	)		(862	)		(3,208	)		(240	)
Class R-1		1,254		93		31		2		(2,303	)		(170	)		(1,018	)		(75	)
Class R-2		15,847		1,176		375		28		(25,460	)		(1,890	)		(9,238	)		(686	)
Class R-3		20,555		1,526		766		57		(33,781	)		(2,508	)		(12,460	)		(925	)
Class R-4		23,398		1,737		772		57		(22,160	)		(1,644	)		2,010			150
Class R-5		9,478		703		335		25		(9,602	)		(714	)		211			14
Class R-6		258,375		19,198		7,965		590		(62,455	)		(4,629	)		203,885			15,159
Total net increase (decrease)	$	1,206,725		89,577	$	59,682		4,423	$	(1,374,890	)		(102,053	)	$	(108,483	)		(8,053	)

Year ended August 31, 2013

Class A	$	1,853,301		135,322	$	93,726		6,857	$	(2,216,704	)		(162,422	)	$	(269,677	)		(20,243	)
Class B		8,788		641		322		24		(34,891	)		(2,551	)		(25,781	)		(1,886	)
Class C		52,049		3,800		1,520		111		(139,311	)		(10,195	)		(85,742	)		(6,284	)
Class F-1		197,845		14,480		7,852		574		(199,200	)		(14,568	)		6,497			486
Class F-2		121,853		8,884		3,204		234		(236,236	)		(17,257	)		(111,179	)		(8,139	)
Class 529-A		101,924		7,440		5,325		390		(109,064	)		(8,005	)		(1,815	)		(175	)
Class 529-B		1,280		93		35		2		(5,461	)		(399	)		(4,146	)		(304	)
Class 529-C		19,813		1,447		535		39		(34,852	)		(2,556	)		(14,504	)		(1,070	)
Class 529-E		5,142		375		216		16		(5,847	)		(429	)		(489	)		(38	)
Class 529-F-1		19,405		1,419		1,191		87		(20,413	)		(1,494	)		183			12
Class R-1		4,229		308		97		7		(8,829	)		(646	)		(4,503	)		(331	)
Class R-2		47,343		3,455		1,008		74		(65,377	)		(4,780	)		(17,026	)		(1,251	)
Class R-3		63,457		4,632		1,803		132		(74,034	)		(5,416	)		(8,774	)		(652	)
Class R-4		44,429		3,242		1,765		129		(61,936	)		(4,529	)		(15,742	)		(1,158	)
Class R-5		13,802		1,010		763		56		(21,608	)		(1,578	)		(7,043	)		(512	)
Class R-6		488,402		35,658		11,667		855		(62,489	)		(4,586	)		437,580			31,927
Total net increase (decrease)	$	3,043,062		222,206	$	131,029		9,587	$	(3,296,252	)		(241,411	)	$	(122,161	)		(9,618	)

* Includes exchanges between share classes of the fund.

24	Intermediate Bond Fund of America

9. Investment transactions

The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $4,623,692,000 and $5,366,138,000, respectively, during the six months ended February 28, 2014.

Intermediate Bond Fund of America

Financial highlights

				Income (loss) from investment operations¹
		Net asset value, beginning of period		Net investment income		Net gains (losses) on securities (both realized and unrealized)			Total from investment operations
Class A:	Six months ended 2/28/2014^4,5	$	13.40	$	.09	$	.13		$	.22
	Year ended 8/31/2013		13.79		.17		(.37	)		(.20	)
	Year ended 8/31/2012		13.66		.24		.15			.39
	Year ended 8/31/2011		13.65		.30		.02			.32
	Year ended 8/31/2010		13.10		.33		.56			.89
	Year ended 8/31/2009		13.02		.45		.09			.54
Class B:	Six months ended 2/28/2014^4,5		13.40		.04		.13			.17
	Year ended 8/31/2013		13.79		.07		(.37	)		(.30	)
	Year ended 8/31/2012		13.66		.13		.15			.28
	Year ended 8/31/2011		13.65		.19		.02			.21
	Year ended 8/31/2010		13.10		.23		.56			.79
	Year ended 8/31/2009		13.02		.35		.09			.44
Class C:	Six months ended 2/28/2014^4,5		13.40		.04		.13			.17
	Year ended 8/31/2013		13.79		.06		(.37	)		(.31	)
	Year ended 8/31/2012		13.66		.13		.15			.28
	Year ended 8/31/2011		13.65		.19		.02			.21
	Year ended 8/31/2010		13.10		.23		.56			.79
	Year ended 8/31/2009		13.02		.35		.09			.44
Class F-1:	Six months ended 2/28/2014^4,5		13.40		.09		.13			.22
	Year ended 8/31/2013		13.79		.17		(.37	)		(.20	)
	Year ended 8/31/2012		13.66		.23		.15			.38
	Year ended 8/31/2011		13.65		.29		.02			.31
	Year ended 8/31/2010		13.10		.33		.56			.89
	Year ended 8/31/2009		13.02		.44		.09			.53
Class F-2:	Six months ended 2/28/2014^4,5		13.40		.10		.13			.23
	Year ended 8/31/2013		13.79		.20		(.37	)		(.17	)
	Year ended 8/31/2012		13.66		.27		.15			.42
	Year ended 8/31/2011		13.65		.33		.02			.35
	Year ended 8/31/2010		13.10		.37		.56			.93
	Year ended 8/31/2009		13.02		.48		.09			.57
Class 529-A:	Six months ended 2/28/2014^4,5		13.40		.08		.13			.21
	Year ended 8/31/2013		13.79		.16		(.37	)		(.21	)
	Year ended 8/31/2012		13.66		.22		.15			.37
	Year ended 8/31/2011		13.65		.29		.02			.31
	Year ended 8/31/2010		13.10		.32		.56			.88
	Year ended 8/31/2009		13.02		.44		.09			.53

26	Intermediate Bond Fund of America

Dividends (from net investment income)			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)		Ratio of expenses to average net assets before reimbursements/ waivers			Ratio of expenses to average net assets after reimbursements/ waivers³			Ratio of net income to average net assets³
$	(.09	)	$	13.53		1.64	%	$	6,222		.60	%⁶		.60	%⁶		1.31	%⁶
	(.19	)		13.40		(1.46	)		6,416		.60			.60			1.26
	(.26	)		13.79		2.86			6,884		.61			.61			1.76
	(.31	)		13.66		2.36			6,436		.60			.60			2.18
	(.34	)		13.65		6.91			6,723		.62			.62			2.51
	(.46	)		13.10		4.27			5,304		.69			.68			3.46
	(.04	)		13.53		1.26			25		1.36	⁶		1.36	⁶		.55	⁶
	(.09	)		13.40		(2.20	)		35		1.35			1.35			.52
	(.15	)		13.79		2.10			62		1.35			1.35			1.04
	(.20	)		13.66		1.60			96		1.36			1.36			1.44
	(.24	)		13.65		6.12			175		1.36			1.36			1.78
	(.36	)		13.10		3.51			207		1.42			1.41			2.79
	(.04	)		13.53		1.24			168		1.40	⁶		1.40	⁶		.51	⁶
	(.08	)		13.40		(2.24	)		203		1.40			1.40			.47
	(.15	)		13.79		2.05			296		1.40			1.40			.98
	(.20	)		13.66		1.55			335		1.41			1.41			1.39
	(.24	)		13.65		6.07			414		1.41			1.41			1.72
	(.36	)		13.10		3.47			342		1.46			1.46			2.69
	(.09	)		13.53		1.62			613		.66	⁶		.66	⁶		1.25	⁶
	(.19	)		13.40		(1.49	)		574		.64			.64			1.23
	(.25	)		13.79		2.80			585		.67			.67			1.70
	(.30	)		13.66		2.31			550		.65			.65			2.13
	(.34	)		13.65		6.86			573		.67			.67			2.45
	(.45	)		13.10		4.24			479		.71			.70			3.49
	(.10	)		13.53		1.76			186		.38	⁶		.38	⁶		1.53	⁶
	(.22	)		13.40		(1.24	)		172		.39			.39			1.49
	(.29	)		13.79		3.13			290		.35			.35			2.01
	(.34	)		13.66		2.63			282		.34			.34			2.44
	(.38	)		13.65		7.21			256		.34			.34			2.79
	(.49	)		13.10		4.54			245		.38			.38			3.23
	(.08	)		13.53		1.59			369		.70	⁶		.70	⁶		1.21	⁶
	(.18	)		13.40		(1.55	)		385		.70			.70			1.16
	(.24	)		13.79		2.76			398		.70			.70			1.66
	(.30	)		13.66		2.29			331		.68			.68			2.11
	(.33	)		13.65		6.83			284		.69			.69			2.43
	(.45	)		13.10		4.21			200		.74			.73			3.42

See page 31 for footnotes.

Intermediate Bond Fund of America

Financial highlights (continued)

				Income (loss) from investment operations¹
		Net asset value, beginning of period		Net investment income		Net gains (losses) on securities (both realized and unrealized)			Total from investment operations
Class 529-B:	Six months ended 2/28/2014^4,5	$	13.40	$	.03	$	.13		$	.16
	Year ended 8/31/2013		13.79		.05		(.37	)		(.32	)
	Year ended 8/31/2012		13.66		.12		.15			.27
	Year ended 8/31/2011		13.65		.18		.02			.20
	Year ended 8/31/2010		13.10		.22		.56			.78
	Year ended 8/31/2009		13.02		.34		.09			.43
Class 529-C:	Six months ended 2/28/2014^4,5		13.40		.03		.13			.16
	Year ended 8/31/2013		13.79		.05		(.37	)		(.32	)
	Year ended 8/31/2012		13.66		.12		.15			.27
	Year ended 8/31/2011		13.65		.18		.02			.20
	Year ended 8/31/2010		13.10		.22		.56			.78
	Year ended 8/31/2009		13.02		.34		.09			.43
Class 529-E:	Six months ended 2/28/2014^4,5		13.40		.07		.13			.20
	Year ended 8/31/2013		13.79		.13		(.37	)		(.24	)
	Year ended 8/31/2012		13.66		.19		.15			.34
	Year ended 8/31/2011		13.65		.25		.02			.27
	Year ended 8/31/2010		13.10		.29		.56			.85
	Year ended 8/31/2009		13.02		.40		.09			.49
Class 529-F-1:	Six months ended 2/28/2014^4,5		13.40		.10		.13			.23
	Year ended 8/31/2013		13.79		.19		(.37	)		(.18	)
	Year ended 8/31/2012		13.66		.25		.15			.40
	Year ended 8/31/2011		13.65		.32		.02			.34
	Year ended 8/31/2010		13.10		.35		.56			.91
	Year ended 8/31/2009		13.02		.47		.09			.56
Class R-1:	Six months ended 2/28/2014^4,5		13.40		.04		.13			.17
	Year ended 8/31/2013		13.79		.06		(.37	)		(.31	)
	Year ended 8/31/2012		13.66		.13		.15			.28
	Year ended 8/31/2011		13.65		.19		.02			.21
	Year ended 8/31/2010		13.10		.23		.56			.79
	Year ended 8/31/2009		13.02		.35		.09			.44

28	Intermediate Bond Fund of America

Dividends (from net investment income)			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)		Ratio of expenses to average net assets before reimbursements/ waivers			Ratio of expenses to average net assets after reimbursements/ waivers³			Ratio of net income to average net assets³
$	(.03	)	$	13.53		1.20	%	$	3		1.49	%⁶		1.49	%⁶		.42	%⁶
	(.07	)		13.40		(2.32	)		4		1.48			1.48			.39
	(.14	)		13.79		1.96			9		1.48			1.48			.90
	(.19	)		13.66		1.48			13		1.47			1.47			1.32
	(.23	)		13.65		6.00			24		1.48			1.48			1.65
	(.35	)		13.10		3.39			23		1.54			1.53			2.65
	(.03	)		13.53		1.20			79		1.48	⁶		1.48	⁶		.43	⁶
	(.07	)		13.40		(2.31	)		87		1.47			1.47			.40
	(.14	)		13.79		1.97			104		1.47			1.47			.89
	(.19	)		13.66		1.49			92		1.46			1.46			1.32
	(.23	)		13.65		6.01			97		1.47			1.47			1.65
	(.35	)		13.10		3.40			72		1.53			1.52			2.66
	(.07	)		13.53		1.48			18		.93	⁶		.93	⁶		.97	⁶
	(.15	)		13.40		(1.78	)		19		.93			.93			.93
	(.21	)		13.79		2.51			20		.94			.94			1.42
	(.26	)		13.66		2.00			16		.96			.96			1.83
	(.30	)		13.65		6.54			14		.97			.97			2.16
	(.41	)		13.10		3.92			11		1.02			1.01			3.14
	(.10	)		13.53		1.70			74		.49	⁶		.49	⁶		1.42	⁶
	(.21	)		13.40		(1.33	)		76		.47			.47			1.39
	(.27	)		13.79		3.00			78		.47			.47			1.89
	(.33	)		13.66		2.50			66		.46			.46			2.32
	(.36	)		13.65		7.07			54		.47			.47			2.65
	(.48	)		13.10		4.44			37		.52			.52			3.63
	(.04	)		13.53		1.24			11		1.40	⁶		1.40	⁶		.51	⁶
	(.08	)		13.40		(2.23	)		12		1.39			1.39			.48
	(.15	)		13.79		2.05			17		1.39			1.39			.97
	(.20	)		13.66		1.54			15		1.41			1.41			1.37
	(.24	)		13.65		6.06			19		1.42			1.42			1.69
	(.36	)		13.10		3.45			10		1.47			1.46			2.65

See page 31 for footnotes.

Intermediate Bond Fund of America

Financial highlights (continued)

				Income (loss) from investment operations¹
		Net asset value, beginning of period		Net investment income		Net gains (losses) on securities (both realized and unrealized)			Total from investment operations
Class R-2:	Six months ended 2/28/2014^4,5	$	13.40	$	.04	$	.13		$	.17
	Year ended 8/31/2013		13.79		.07		(.37	)		(.30	)
	Year ended 8/31/2012		13.66		.13		.15			.28
	Year ended 8/31/2011		13.65		.19		.02			.21
	Year ended 8/31/2010		13.10		.23		.56			.79
	Year ended 8/31/2009		13.02		.35		.09			.44
Class R-3:	Six months ended 2/28/2014^4,5		13.40		.07		.13			.20
	Year ended 8/31/2013		13.79		.12		(.37	)		(.25	)
	Year ended 8/31/2012		13.66		.19		.15			.34
	Year ended 8/31/2011		13.65		.25		.02			.27
	Year ended 8/31/2010		13.10		.28		.56			.84
	Year ended 8/31/2009		13.02		.40		.09			.49
Class R-4:	Six months ended 2/28/2014^4,5		13.40		.09		.13			.22
	Year ended 8/31/2013		13.79		.17		(.37	)		(.20	)
	Year ended 8/31/2012		13.66		.23		.15			.38
	Year ended 8/31/2011		13.65		.29		.02			.31
	Year ended 8/31/2010		13.10		.33		.56			.89
	Year ended 8/31/2009		13.02		.44		.09			.53
Class R-5:	Six months ended 2/28/2014^4,5		13.40		.11		.13			.24
	Year ended 8/31/2013		13.79		.21		(.37	)		(.16	)
	Year ended 8/31/2012		13.66		.27		.15			.42
	Year ended 8/31/2011		13.65		.33		.02			.35
	Year ended 8/31/2010		13.10		.37		.56			.93
	Year ended 8/31/2009		13.02		.48		.09			.57
Class R-6:	Six months ended 2/28/2014^4,5		13.40		.11		.13			.24
	Year ended 8/31/2013		13.79		.22		(.37	)		(.15	)
	Year ended 8/31/2012		13.66		.28		.15			.43
	Year ended 8/31/2011		13.65		.34		.02			.36
	Year ended 8/31/2010		13.10		.37		.56			.93
	Period from 5/1/2009 to 8/31/2009^4,7		12.79		.14		.31			.45

	Six months
	ended
	February 28,			Year ended August 31
	2014^4,5			2013			2012			2011			2010			2009
Portfolio turnover rate for all share classes		83	%		199	%		146	%		80	%		43	%		87	%

30	Intermediate Bond Fund of America

Dividends (from net investment income)			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)		Ratio of expenses to average net assets before reimbursements/ waivers			Ratio of expenses to average net assets after reimbursements/ waivers³			Ratio of net income to average net assets³
$	(.04	)	$	13.53		1.25	%	$	134		1.39	%⁶		1.39	%⁶		.51	%⁶
	(.09	)		13.40		(2.20	)		142		1.36			1.36			.51
	(.15	)		13.79		2.06			164		1.39			1.39			.98
	(.20	)		13.66		1.55			161		1.41			1.40			1.38
	(.24	)		13.65		6.06			175		1.45			1.42			1.71
	(.36	)		13.10		3.47			146		1.53			1.45			2.72
	(.07	)		13.53		1.47			150		.95	⁶		.95	⁶		.96	⁶
	(.14	)		13.40		(1.79	)		161		.95			.95			.92
	(.21	)		13.79		2.49			175		.96			.96			1.41
	(.26	)		13.66		1.99			169		.97			.97			1.81
	(.29	)		13.65		6.52			172		.99			.99			2.14
	(.41	)		13.10		3.90			153		1.04			1.03			3.14
	(.09	)		13.53		1.63			119		.63	⁶		.63	⁶		1.28	⁶
	(.19	)		13.40		(1.48	)		116		.63			.63			1.24
	(.25	)		13.79		2.83			135		.63			.63			1.74
	(.30	)		13.66		2.32			120		.65			.65			2.14
	(.34	)		13.65		6.87			121		.65			.65			2.46
	(.45	)		13.10		4.25			79		.70			.69			3.47
	(.11	)		13.53		1.78			43		.33	⁶		.33	⁶		1.58	⁶
	(.23	)		13.40		(1.18	)		42		.33			.33			1.54
	(.29	)		13.79		3.13			50		.34			.34			2.03
	(.34	)		13.66		2.62			47		.35			.35			2.44
	(.38	)		13.65		7.18			45		.36			.36			2.76
	(.49	)		13.10		4.56			35		.39			.39			3.76
	(.11	)		13.53		1.81			1,076		.28	⁶		.28	⁶		1.63	⁶
	(.24	)		13.40		(1.13	)		862		.27			.27			1.58
	(.30	)		13.79		3.19			447		.28			.28			2.08
	(.35	)		13.66		2.68			339		.30			.30			2.49
	(.38	)		13.65		7.24			315		.31			.31			2.77
	(.14	)		13.10		3.56			21		.12			.12			1.08

¹	Based on average shares outstanding.
²	Total returns exclude any applicable sales charges, including contingent deferred sales charges.
³	This column reflects the impact, if any, of certain reimbursements/waivers from CRMC. During one of the periods shown, CRMC reduced fees for investment advisory services. In addition, during some of the periods shown, CRMC paid a portion of the fund’s transfer agent fees for certain retirement plan share classes.
⁴	Based on operations for the period shown and, accordingly, is not representative of a full year.
⁵	Unaudited.
⁶	Annualized.
⁷	Class R-6 shares were offered beginning May 1, 2009.

See Notes to Financial Statements

Intermediate Bond Fund of America^®

Investment portfolio

August 31, 2013

Bonds, notes & other debt instruments 90.23%
U.S. Treasury bonds & notes 38.04%	Principal amount	Value
U.S. Treasury 36.73%	(000)	(000)

U.S. Treasury 1.875% 2014	$ 35,000	$ 35,312
U.S. Treasury 2.25% 2014	51,000	51,803
U.S. Treasury 2.625% 2014	188,250	192,469
U.S. Treasury 0.25% 2015	370,100	369,452
U.S. Treasury 1.25% 2015	25,000	25,425
U.S. Treasury 1.75% 2015	100,000	102,568
U.S. Treasury 2.25% 2015	58,000	59,611
U.S. Treasury 4.125% 2015	50,000	53,191
U.S. Treasury 4.25% 2015	50,000	53,722
U.S. Treasury 0.50% 2016	95,500	94,940
U.S. Treasury 0.625% 2016	145,000	144,361
U.S. Treasury 1.00% 2016	25,000	25,121
U.S. Treasury 1.50% 2016	12,600	12,863
U.S. Treasury 1.75% 2016	26,000	26,738
U.S. Treasury 2.00% 2016	70,000	72,449
U.S. Treasury 2.375% 2016	50,000	52,237
U.S. Treasury 2.625% 2016	20,000	21,003
U.S. Treasury 3.00% 2016	20,000	21,313
U.S. Treasury 4.50% 2016	47,500	52,010
U.S. Treasury 5.125% 2016	96,500	107,968
U.S. Treasury 7.50% 2016	40,000	48,322
U.S. Treasury 0.50% 2017	67,640	65,738
U.S. Treasury 0.75% 2017	29,000	28,538
U.S. Treasury 0.875% 2017	535,125	530,378
U.S. Treasury 1.00% 2017	247,250	246,496
U.S. Treasury 2.50% 2017	153,750	161,522
U.S. Treasury 4.25% 2017	50,000	55,994
U.S. Treasury 4.50% 2017	60,000	67,334
U.S. Treasury 4.625% 2017	115,000	129,043
U.S. Treasury 8.75% 2017	25,000	31,939
U.S. Treasury 0.75% 2018	90,000	87,215
U.S. Treasury 0.75% 2018	12,500	12,102
U.S. Treasury 1.00% 2018	60,000	58,488
U.S. Treasury 1.375% 2018	5,000	4,951
U.S. Treasury 1.50% 2018	35,000	34,783
U.S. Treasury 3.50% 2018	60,000	65,365
U.S. Treasury 4.00% 2018	10,000	11,159
U.S. Treasury 1.25% 2019	10,000	9,673
U.S. Treasury 3.50% 2020	15,000	16,307
U.S. Treasury 8.75% 2020	15,000	21,289
U.S. Treasury 8.00% 2021	20,000	28,303
U.S. Treasury 1.75% 2022	81,200	75,634
U.S. Treasury 6.25% 2023	25,000	32,695
U.S. Treasury 7.125% 2023	15,000	20,646
		3,418,470
Bonds, notes & other debt instruments
U.S. Treasury bonds & notes (continued)	Principal amount	Value
U.S. Treasury inflation-protected securities¹ 1.31%	(000)	(000)

U.S. Treasury Inflation-Protected Security 2.00% 2014	$38,730	$ 39,123
U.S. Treasury Inflation-Protected Security 1.625% 2015	1,192	1,236
U.S. Treasury Inflation-Protected Security 0.125% 2017	13,878	14,212
U.S. Treasury Inflation-Protected Security 0.125% 2018	41,412	42,174
U.S. Treasury Inflation-Protected Security 0.375% 2023	22,073	21,450
U.S. Treasury Inflation-Protected Security 2.00% 2026	2,941	3,324
		121,519
Total U.S. Treasury bonds & notes		3,539,989
Corporate bonds & notes 29.79%
Financials 8.33%

Bank of America Corp. 4.50% 2015	5,000	5,245
Bank of America Corp., Series L, 3.625% 2016	6,985	7,319
Bank of America Corp. 3.75% 2016	11,135	11,749
Bank of America Corp. 5.75% 2017	5,070	5,672
Bank of America Corp. 2.00% 2018	10,000	9,705
Bank of America Corp. 5.625% 2020	12,000	13,204
Goldman Sachs Group, Inc. 3.625% 2016	15,625	16,370
Goldman Sachs Group, Inc. 2.90% 2018	14,650	14,628
Goldman Sachs Group, Inc. 5.25% 2021	3,560	3,803
Goldman Sachs Group, Inc. 5.75% 2022	5,000	5,490
Goldman Sachs Group, Inc. 3.625% 2023	11,100	10,482
Citigroup Inc. 4.587% 2015	16,640	17,785
Citigroup Inc. 6.01% 2015	4,750	5,063
Citigroup Inc. 1.70% 2016	7,000	7,000
Citigroup Inc. 3.953% 2016	5,535	5,870
Citigroup Inc. 1.75% 2018	7,500	7,212
Citigroup Inc. 8.50% 2019	4,219	5,347
Morgan Stanley, Series F, 2.875% 2014	7,250	7,310
Morgan Stanley, Series F, 6.00% 2015	3,635	3,901
Morgan Stanley 1.75% 2016	10,000	10,000
Morgan Stanley 3.80% 2016	8,325	8,707
Morgan Stanley 2.125% 2018	19,000	18,339
JPMorgan Chase & Co. 3.40% 2015	6,000	6,251
JPMorgan Chase & Co. 1.125% 2016	15,000	14,968
JPMorgan Chase & Co. 1.625% 2018	18,500	17,713
JPMorgan Chase & Co. 3.20% 2023	2,500	2,325
American Express Centurion Bank 0.875% 2015	12,000	11,982
American Express Co. 6.15% 2017	2,900	3,349
American Express Co. 0.852% 2018²	25,000	25,012
Prologis, Inc. 5.625% 2016	6,260	6,909
Prologis, Inc. 6.625% 2018	8,000	9,286
Prologis, Inc. 2.75% 2019	6,005	5,950
Prologis, Inc. 6.875% 2020	5,000	5,855
Prologis, Inc. 4.25% 2023	7,505	7,383
Simon Property Group, LP 6.75% 2014	5,655	5,805
Simon Property Group, LP 4.20% 2015	9,430	9,802
Simon Property Group, LP 6.10% 2016	7,000	7,811
Simon Property Group, LP 5.875% 2017	2,500	2,813
Simon Property Group, LP 1.50% 2018³	6,480	6,263
Nordea Bank, Series 2, 3.70% 2014³	18,000	18,626
Nordea Bank AB 3.125% 2017³	5,000	5,176
Bonds, notes & other debt instruments
	Principal amount	Value
Corporate bonds & notes — Financials (continued)	(000)	(000)

Nordea Bank AB 1.625% 2018³	$ 7,500	$ 7,249
Kimco Realty Corp., Series C, 4.82% 2014	795	818
Kimco Realty Corp., Series C, 4.904% 2015	8,915	9,383
Kimco Realty Corp., Series C, 5.783% 2016	9,500	10,461
Kimco Realty Corp. 5.70% 2017	5,500	6,137
Kimco Realty Corp. 6.875% 2019	2,000	2,389
Berkshire Hathaway Inc. 2.20% 2016	8,500	8,783
Berkshire Hathaway Finance Corp. 1.30% 2018	4,370	4,227
Berkshire Hathaway Inc. 1.55% 2018	15,000	14,695
Westfield Group 5.75% 2015³	10,000	10,911
Westfield Group 5.70% 2016³	1,250	1,394
Westfield Group 7.125% 2018³	1,000	1,185
Westfield Group 4.625% 2021³	4,770	4,964
Westfield Group 3.375% 2022³	7,100	6,619
UBS AG 2.25% 2014	7,000	7,055
UBS AG 4.875% 2020	11,000	12,082
Monumental Global Funding III 0.468% 2014^2,3	9,140	9,144
Monumental Global Funding III 5.25% 2014³	8,500	8,647
Australia & New Zealand Banking Group Ltd. 2.125% 2014³	10,000	10,057
ANZ National (International) Ltd. 3.125% 2015³	7,000	7,260
HSBC Finance Corp. 0.518% 2014²	2,250	2,251
HSBC Finance Corp. 0.705% 2016²	4,400	4,377
HSBC Holdings PLC 4.875% 2020	6,000	6,398
HSBC Holdings PLC 4.00% 2022	2,950	2,975
BNP Paribas 3.60% 2016	7,000	7,355
BNP Paribas 5.00% 2021	8,000	8,519
Westpac Banking Corp. 1.85% 2013	8,000	8,035
Westpac Banking Corp. 3.00% 2015	6,300	6,592
Wells Fargo & Co. 1.25% 2016	7,000	6,990
Wells Fargo & Co. 3.676% 2016	7,000	7,438
Standard Chartered PLC 3.20% 2016³	8,000	8,331
Standard Chartered Bank 3.95% 2023³	5,000	4,598
Hospitality Properties Trust 7.875% 2014	600	618
Hospitality Properties Trust 5.125% 2015	1,130	1,167
Hospitality Properties Trust 6.70% 2018	10,000	11,122
Royal Bank of Scotland PLC 3.95% 2015	7,000	7,331
Royal Bank of Scotland Group PLC 4.375% 2016	5,000	5,305
Toyota Motor Credit Corp. 0.875% 2015	7,500	7,536
Toyota Motor Credit Corp. 1.75% 2017	5,000	5,003
Barclays Bank PLC 5.20% 2014	4,500	4,668
Barclays Bank PLC 6.05% 2017³	4,140	4,569
Barclays Bank PLC 5.125% 2020	3,000	3,299
MetLife Global Funding I 2.50% 2015³	12,000	12,401
Svenska Handelsbanken AB 1.625% 2018	12,500	12,160
BB&T Corp., Series C, 1.60% 2017	8,250	8,112
BB&T Corp., 2.05% 2018	3,365	3,322
US Bank NA 4.95% 2014	2,550	2,678
US Bancorp., Series T, 1.65% 2017	8,500	8,454
ACE INA Holdings Inc. 2.60% 2015	10,090	10,465
Rabobank Nederland 1.70% 2018	8,000	7,795
Ford Motor Credit Co. 1.70% 2016	7,500	7,407
Boston Properties, Inc. 3.70% 2018	7,000	7,305
Bank of New York Mellon Corp., Series G, 2.50% 2016	7,000	7,224
Regions Financial Corp. 2.00% 2018	7,500	7,173
American International Group, Inc. 3.80% 2017	6,400	6,772
Bonds, notes & other debt instruments
	Principal amount	Value
Corporate bonds & notes — Financials (continued)	(000)	(000)

Northern Trust Corp. 4.625% 2014	$ 2,825	$ 2,906
Northern Trust Corp. 5.85% 2017³	2,750	3,120
Korea Development Bank 8.00% 2014	5,350	5,494
Société Générale 3.10% 2015³	5,000	5,193
PRICOA Global Funding I 5.30% 2013³	5,000	5,015
ERP Operating LP 5.25% 2014	4,000	4,181
Mack-Cali Realty Corp. 2.50% 2017	3,510	3,426
AvalonBay Communities, Inc. 2.85% 2023	3,370	3,040
		775,060
Health care 3.75%

Schering-Plough Corp. 6.00% 2017	7,945	9,208
Merck & Co., Inc. 0.623% 2018²	15,000	15,011
Merck & Co., Inc. 1.10% 2018	15,460	14,887
Merck & Co., Inc. 2.80% 2023	5,000	4,666
GlaxoSmithKline Capital Inc. 1.50% 2017	24,539	24,336
GlaxoSmithKline Capital Inc. 5.65% 2018	10,000	11,524
GlaxoSmithKline Capital Inc. 2.85% 2022	2,591	2,471
Novartis Capital Corp. 4.125% 2014	17,500	17,777
Novartis Capital Corp. 2.90% 2015	10,000	10,385
Novartis Securities Investment Ltd. 5.125% 2019	6,500	7,410
Amgen Inc. 1.875% 2014	5,000	5,078
Amgen Inc. 2.50% 2016	15,850	16,418
Amgen Inc. 2.125% 2017	7,000	7,068
Amgen Inc. 3.625% 2022	1,645	1,611
Medco Health Solutions, Inc. 2.75% 2015	4,415	4,550
Express Scripts Inc. 2.65% 2017	12,560	12,859
Express Scripts Inc. 3.90% 2022	7,000	7,023
AbbVie Inc. 1.75% 2017	7,500	7,392
AbbVie Inc. 2.90% 2022	16,775	15,623
UnitedHealth Group Inc. 1.875% 2016	3,650	3,710
UnitedHealth Group Inc. 1.40% 2017	3,020	2,945
UnitedHealth Group Inc. 6.00% 2017	4,750	5,404
UnitedHealth Group Inc. 2.875% 2023	7,500	6,959
Sanofi 0.586% 2014²	10,000	10,017
Sanofi 1.25% 2018	8,000	7,723
Aetna Inc. 1.50% 2017	10,325	10,024
Aetna Inc. 2.75% 2022	6,000	5,469
Gilead Sciences, Inc. 2.40% 2014	2,865	2,922
Gilead Sciences, Inc. 3.05% 2016	8,285	8,724
Gilead Sciences, Inc. 4.40% 2021	2,195	2,331
Baxter International Inc. 1.85% 2018	5,850	5,794
Baxter International Inc. 3.20% 2023	6,000	5,787
Pfizer Inc. 0.575% 2018²	5,000	5,011
Pfizer Inc. 6.20% 2019	5,000	5,980
Roche Holdings, Inc. 6.00% 2019³	9,111	10,778
McKesson Corp. 0.95% 2015	3,035	3,035
McKesson Corp. 1.40% 2018	7,500	7,239
Cardinal Health, Inc. 1.90% 2017	3,700	3,669
Cardinal Health, Inc. 3.20% 2023	5,995	5,549
WellPoint, Inc. 6.00% 2014	4,400	4,500
WellPoint, Inc. 5.25% 2016	3,000	3,272
Humana Inc. 3.15% 2022	7,500	6,922
Teva Pharmaceutical Financial IV LLC, 2.25% 2020	5,960	5,604
Bonds, notes & other debt instruments
	Principal amount	Value
Corporate bonds & notes — Health care (continued)	(000)	(000)

Johnson & Johnson 0.354% 2014²	$ 5,000	$ 5,007
Boston Scientific Corp. 6.00% 2020	3,700	4,222
DENTSPLY International Inc. 2.75% 2016	3,930	3,986
Catholic Health Initiatives, Series 2012, 1.60% 2017	1,000	974
		348,854
Consumer staples 3.58%

Anheuser-Busch InBev NV 0.628% 2014²	11,625	11,660
Anheuser-Busch InBev NV 3.625% 2015	7,000	7,327
Anheuser-Busch InBev NV 4.125% 2015	7,500	7,849
Anheuser-Busch InBev NV 1.375% 2017	12,000	11,862
Coca-Cola Co. 3.625% 2014	10,000	10,165
Coca-Cola Co. 1.50% 2015	10,000	10,193
Coca-Cola Co. 1.80% 2016	6,500	6,644
Coca-Cola Co. 3.15% 2020	6,285	6,393
Wal-Mart Stores, Inc. 2.25% 2015	5,000	5,149
Wal-Mart Stores, Inc. 2.875% 2015	7,000	7,253
Wal-Mart Stores, Inc. 2.80% 2016	7,000	7,352
Wal-Mart Stores, Inc. 1.125% 2018	10,000	9,681
Wal-Mart Stores, Inc. 5.80% 2018	740	863
PepsiCo, Inc. 0.875% 2013	5,000	5,003
PepsiCo, Inc. 3.10% 2015	6,000	6,202
PepsiCo, Inc. 2.50% 2016	16,000	16,564
SABMiller Holdings Inc. 2.45% 2017³	25,290	25,755
Procter & Gamble Co. 3.50% 2015	7,500	7,812
Procter & Gamble Co. 1.45% 2016	8,410	8,532
ConAgra Foods, Inc. 1.30% 2016	8,590	8,648
ConAgra Foods, Inc. 1.90% 2018	7,835	7,694
Philip Morris International Inc. 2.90% 2021	8,850	8,503
Philip Morris International Inc. 2.625% 2023	7,500	6,851
British American Tobacco International Finance PLC 2.125% 2017³	7,000	7,049
British American Tobacco International Finance PLC 9.50% 2018³	5,910	7,912
Pernod Ricard SA 2.95% 2017³	14,500	14,811
Altria Group, Inc. 8.50% 2013	4,000	4,058
Altria Group, Inc. 4.75% 2021	4,000	4,236
Altria Group, Inc. 2.85% 2022	5,000	4,511
Altria Group, Inc. 2.95% 2023	2,000	1,813
Kraft Foods Inc. 2.25% 2017	7,725	7,827
Kraft Foods Inc. 3.50% 2022	6,175	6,036
Reynolds American Inc. 3.25% 2022	12,120	11,084
Kroger Co. 7.50% 2014	6,030	6,180
Kroger Co. 6.40% 2017	2,500	2,871
Brown-Forman Corp. 1.00% 2018	9,000	8,625
Heineken NV 1.40% 2017³	8,190	7,948
Tesco PLC 5.50% 2017³	6,840	7,619
Unilever Capital Corp. 3.65% 2014	7,500	7,603
General Mills, Inc. 0.613% 2014²	7,500	7,513
Kimberly-Clark Corp. 7.50% 2018	4,500	5,598
Wesfarmers Ltd. 1.874% 2018³	3,750	3,646
SABMiller Holdings Inc. 2.20% 2018³	2,700	2,669
		333,564
Energy 3.27%

Shell International Finance BV 4.00% 2014	25,000	25,498
Shell International Finance BV 3.10% 2015	7,500	7,843
Shell International Finance BV 1.125% 2017	15,000	14,749
Bonds, notes & other debt instruments
	Principal amount	Value
Corporate bonds & notes — Energy (continued)	(000)	(000)

Total Capital Canada Ltd. 1.625% 2014	$ 5,000	$ 5,029
Total Capital SA 3.00% 2015	7,000	7,295
Total Capital SA 2.30% 2016	8,000	8,241
Total Capital Canada Ltd. 1.45% 2018	20,130	19,683
Total Capital International 2.875% 2022	4,580	4,361
StatoilHydro ASA 2.90% 2014	3,110	3,191
StatoilHydro ASA 3.875% 2014	4,750	4,852
Statoil ASA 3.125% 2017	22,000	23,173
Statoil ASA 3.15% 2022	4,000	3,932
Kinder Morgan Energy Partners, LP 5.00% 2013	5,000	5,060
Kinder Morgan Energy Partners, LP 5.125% 2014	5,000	5,250
Kinder Morgan Energy Partners, LP 3.50% 2016	7,000	7,385
Kinder Morgan Energy Partners, LP 3.95% 2022	4,000	3,907
BG Energy Capital PLC 2.50% 2015³	7,000	7,208
BG Energy Capital PLC 2.875% 2016³	13,270	13,798
Chevron Corp. 1.718% 2018	20,000	19,704
Transocean Inc. 5.05% 2016	8,000	8,751
Transocean Inc. 2.50% 2017	6,550	6,489
Transocean Inc. 6.375% 2021	2,220	2,448
TransCanada PipeLines Ltd. 0.875% 2015	7,000	7,014
TransCanada PipeLines Ltd. 6.50% 2018	5,000	5,947
Enterprise Products Operating LLC 1.25% 2015	5,000	5,025
Enterprise Products Operating LLC 3.35% 2023	7,500	7,121
Devon Energy Corp. 1.875% 2017	4,075	4,019
Devon Energy Corp. 3.25% 2022	7,500	7,115
Husky Energy Inc. 5.90% 2014	6,000	6,233
Husky Energy Inc. 7.25% 2019	3,000	3,655
Enbridge Energy Partners, LP, Series B, 6.50% 2018	4,600	5,324
Enbridge Energy Partners, LP 4.20% 2021	4,000	4,026
Phillips 66 4.30% 2022	7,685	7,765
Marathon Oil Corp. 0.90% 2015	7,500	7,482
ConocoPhillips 1.05% 2017	7,500	7,235
Canadian Natural Resources Ltd. 1.45% 2014	5,000	5,036
BP Capital Markets PLC 3.625% 2014³	2,000	2,045
BP Capital Markets PLC 3.875% 2015	2,500	2,621
Apache Corp. 2.625% 2023	4,210	3,847
Enbridge Inc. 5.60% 2017	2,500	2,769
Cenovus Energy Inc. 4.50% 2014	2,009	2,087
		304,213
Utilities 2.43%

Iberdrola Finance Ireland 3.80% 2014³	15,000	15,373
Scottish Power PLC 5.375% 2015	4,000	4,223
Iberdrola Finance Ireland 5.00% 2019³	5,000	5,267
Niagara Mohawk Power 3.553% 2014³	11,170	11,494
National Grid PLC 6.30% 2016	10,990	12,437
Pacific Gas and Electric Co. 6.25% 2013	12,250	12,419
PG&E Corp. 5.75% 2014	5,000	5,140
Pacific Gas and Electric Co. 3.25% 2023	5,000	4,752
Progress Energy, Inc. 6.05% 2014	16,500	16,974
Enel Finance International SA 3.875% 2014³	15,550	15,945
E.ON International Finance BV 5.80% 2018³	13,000	14,979
Sierra Pacific Power Co., General and Refunding Mortgage Notes, Series Q, 5.45% 2013	2,850	2,850
Nevada Power Co., General and Refunding Mortgage Notes, Series S, 6.50% 2018	10,000	11,928
Public Service Co. of Colorado 5.80% 2018	2,250	2,621
Bonds, notes & other debt instruments
	Principal amount	Value
Corporate bonds & notes — Utilities (continued)	(000)	(000)

Northern States Power Co., First Mortgage Bonds, 2.60% 2023	$12,000	$ 11,115
Consumers Energy Co., First Mortgage Bonds, 5.15% 2017	500	559
Consumers Energy Co., First Mortgage Bonds, 6.125% 2019	3,100	3,701
Consumers Energy Co. 2.85% 2022	7,500	7,245
Teco Finance, Inc. 4.00% 2016	6,000	6,358
Tampa Electric Co. 2.60% 2022	5,000	4,671
Centerpoint Energy, Inc., Series B, 6.85% 2015	10,000	10,967
National Rural Utilities Cooperative Finance Corp. 1.125% 2013	6,000	6,008
National Rural Utilities Cooperative Finance Corp. 1.00% 2015	3,650	3,670
National Rural Utilities Cooperative Finance Corp. 3.875% 2015	500	531
Electricité de France SA 5.50% 2014³	10,000	10,187
American Electric Power Co. 1.65% 2017	10,000	9,724
PSEG Power LLC 2.75% 2016	5,310	5,501
Entergy Louisiana, LLC 1.875% 2014	5,000	5,064
MidAmerican Energy Holdings Co. 5.75% 2018	3,600	4,147
		225,850
Industrials 2.37%

General Electric Co. 0.85% 2015	9,000	9,001
General Electric Capital Corp. 1.00% 2015	11,300	11,294
General Electric Capital Corp., Series A, 2.25% 2015	9,500	9,730
General Electric Capital Corp. 2.95% 2016	3,255	3,384
General Electric Capital Corp. 1.60% 2017	7,500	7,352
General Electric Capital Corp. 2.30% 2017	16,135	16,354
General Electric Capital Corp., Series A, 5.625% 2017	3,000	3,394
General Electric Capital Corp., Series A, 6.00% 2019	7,000	8,065
General Electric Co. 2.70% 2022	7,500	6,995
General Electric Capital Corp. 3.10% 2023	5,000	4,621
Canadian National Railway Co. 4.95% 2014	17,850	18,140
Canadian National Railway Co. 5.85% 2017	7,000	8,023
United Technologies Corp. 1.80% 2017	12,655	12,722
United Technologies Corp. 3.10% 2022	8,100	7,891
Union Pacific Corp. 5.125% 2014	6,125	6,248
Union Pacific Corp. 5.70% 2018	5,900	6,793
Union Pacific Corp. 4.163% 2022	2,694	2,815
Union Pacific Corp. 2.75% 2023	5,000	4,648
Burlington Northern Santa Fe LLC 7.00% 2014	13,480	13,817
Burlington Northern Santa Fe LLC 3.00% 2023	2,610	2,432
Boeing Company 0.95% 2018	10,900	10,374
Honeywell International Inc. 3.875% 2014	10,100	10,260
Norfolk Southern Corp. 5.75% 2016	7,190	7,949
European Aeronautic Defence and Space Company 2.70% 2023³	7,500	6,803
John Deere Capital Corp., Series D, 4.90% 2013	5,000	5,003
BAE Systems Holdings Inc. 4.95% 2014³	4,500	4,627
Volvo Treasury AB 5.95% 2015³	4,300	4,606
Atlas Copco AB 5.60% 2017³	4,000	4,486
Danaher Corp. 2.30% 2016	3,140	3,226
		221,053
Consumer discretionary 2.24%

DaimlerChrysler North America Holding Corp. 1.95% 2014³	7,500	7,544
DaimlerChrysler North America Holding Corp. 1.30% 2015³	7,500	7,531
DaimlerChrysler North America Holding Corp. 1.125% 2018^2,3	7,500	7,520
DaimlerChrysler North America Holding Corp. 1.875% 2018³	8,900	8,732
DaimlerChrysler North America Holding Corp. 2.375% 2018³	7,000	6,924
Bonds, notes & other debt instruments
	Principal amount	Value
Corporate bonds & notes — Consumer discretionary (continued)	(000)	(000)

Comcast Corp. 5.30% 2014	$ 2,000	$ 2,033
Comcast Corp. 5.85% 2015	3,000	3,319
Comcast Corp. 5.90% 2016	10,000	11,193
Comcast Corp. 6.30% 2017	9,000	10,576
Comcast Corp. 5.875% 2018	7,650	8,858
Walt Disney Co. 0.875% 2014	7,000	7,047
Walt Disney Co. 1.10% 2017	14,185	13,825
Volkswagen International Finance NV 0.884% 2014^2,3	15,000	15,042
NBCUniversal Media, LLC 2.10% 2014	7,500	7,573
NBCUniversal Media, LLC 2.875% 2016	7,000	7,314
Time Warner Inc. 4.75% 2021	8,750	9,320
Time Warner Cable Inc. 4.00% 2022	5,000	5,006
Viacom Inc. 2.50% 2018	12,000	11,870
Dollar General Corp. 1.875% 2018	12,000	11,557
News America Inc. 6.90% 2019	8,500	10,146
Home Depot, Inc. 4.40% 2021	7,500	8,194
Time Warner Cable Inc. 7.50% 2014	5,430	5,632
Time Warner Cable Inc. 8.25% 2014	1,000	1,032
Omnicom Group Inc. 3.625% 2022	5,355	5,170
CBS Corp. 1.95% 2017	4,800	4,759
Target Corp. 6.00% 2018	4,055	4,721
Nordstrom, Inc. 6.75% 2014	4,180	4,367
Staples, Inc. 9.75% 2014	1,000	1,032
Cox Communications, Inc. 6.25% 2018³	250	280
		208,117
Telecommunication services 1.47%

Verizon Communications Inc. 7.375% 2013	15,000	15,197
Verizon Communications Inc. 5.55% 2014	11,170	11,385
Verizon Communications Inc. 3.00% 2016	13,000	13,540
AT&T Inc. 0.90% 2016	5,000	4,968
AT&T Inc. 2.40% 2016	16,530	17,000
AT&T Inc. 2.95% 2016	8,000	8,344
Vodafone Group PLC 5.00% 2015	5,000	5,389
Vodafone Group PLC 5.375% 2015	12,000	12,736
Deutsche Telekom International Finance BV 4.875% 2014	5,000	5,176
Deutsche Telekom International Finance BV 3.125% 2016³	5,500	5,720
Deutsche Telekom International Finance BV 2.25% 2017³	5,600	5,647
France Télécom 4.375% 2014	5,000	5,149
France Télécom 2.125% 2015	10,000	10,172
Telefónica Emisiones, SAU 3.729% 2015	5,000	5,148
Telefónica Emisiones, SAU 3.992% 2016	5,000	5,173
Telecom Italia Capital SA 6.175% 2014	6,000	6,194
		136,938
Information technology 1.37%

Apple Inc. 1.00% 2018	51,000	48,713
International Business Machines Corp. 1.95% 2016	9,650	9,915
International Business Machines Corp. 2.00% 2016	7,000	7,177
International Business Machines Corp. 5.70% 2017	5,000	5,747
International Business Machines Corp. 1.25% 2018	10,000	9,733
International Business Machines Corp. 1.625% 2020	7,500	6,960
Oracle Corp. 1.20% 2017	7,500	7,301
Oracle Corp. 2.375% 2019	7,000	6,969
Cisco Systems, Inc. 0.523% 2014²	7,300	7,310
Bonds, notes & other debt instruments
	Principal amount	Value
Corporate bonds & notes — Information technology (continued)	(000)	(000)

Cisco Systems, Inc. 2.90% 2014	$ 5,500	$ 5,660
Google Inc. 1.25% 2014	5,000	5,031
National Semiconductor Corp. 6.60% 2017	2,500	2,916
Xerox Corp. 2.95% 2017	2,500	2,552
Microsoft Corp. 2.375% 2023	1,965	1,782
		127,766
Materials 0.98%

Rio Tinto Finance (USA) Ltd. 2.25% 2016	7,000	7,114
Rio Tinto Finance (USA) Ltd. 2.50% 2016	10,000	10,248
Rio Tinto Finance (USA) Ltd. 1.625% 2017	7,000	6,834
Glencore Xstrata LLC 1.628% 2019^2,3	7,000	6,607
Glencore Xstrata LLC 2.50% 2019³	9,000	8,178
Xstrata Canada Financial Corp. 4.95% 2021³	8,500	8,258
Praxair, Inc. 1.05% 2017	7,500	7,251
E.I. du Pont de Nemours and Co. 2.80% 2023	7,500	6,964
BHP Billiton Finance (USA) Ltd. 5.50% 2014	5,865	6,039
Newcrest Finance Pty Ltd. 4.45% 2021³	6,700	5,740
Ecolab Inc. 3.00% 2016	5,455	5,705
Dow Chemical Co. 3.00% 2022	5,000	4,602
Teck Resources Ltd. 4.75% 2022	3,735	3,678
Anglo American Capital PLC 2.15% 2013³	2,415	2,417
Cliffs Natural Resources Inc. 4.875% 2021	1,435	1,327
		90,962
Total corporate bonds & notes		2,772,377
Mortgage-backed obligations 13.09%
Federal agency mortgage-backed obligations⁴ 11.01%

Fannie Mae 7.00% 2015	144	151
Fannie Mae 7.00% 2016	120	127
Fannie Mae 11.50% 2019	8	8
Fannie Mae 2.50% 2023	79,603	81,086
Fannie Mae 2.50% 2023	58,788	59,884
Fannie Mae 2.50% 2023	34,393	35,034
Fannie Mae 2.50% 2023	16,475	16,699
Fannie Mae 5.00% 2023	2,166	2,341
Fannie Mae 6.00% 2024	984	1,079
Fannie Mae 3.50% 2025	11,465	11,994
Fannie Mae 3.50% 2025	8,555	8,952
Fannie Mae 3.50% 2025	5,815	6,085
Fannie Mae 3.50% 2025	4,421	4,627
Fannie Mae 3.50% 2026	22,733	23,783
Fannie Mae 3.50% 2026	16,806	17,584
Fannie Mae 3.50% 2026	1,179	1,231
Fannie Mae 3.50% 2026	294	308
Fannie Mae 3.50% 2026	272	285
Fannie Mae 3.50% 2026	221	231
Fannie Mae 3.50% 2026	44	46
Fannie Mae 6.00% 2026	716	786
Fannie Mae 9.042% 2026²	195	219
Fannie Mae 2.50% 2027	10,013	9,932
Fannie Mae 2.50% 2027	7,135	7,077
Fannie Mae 2.50% 2027	7,105	7,048
Bonds, notes & other debt instruments
	Principal amount	Value
Mortgage-backed obligations — Federal agency mortgage-backed obligations⁴ (continued)	(000)	(000)

Fannie Mae 2.50% 2027	$ 7,073	$ 7,016
Fannie Mae 2.50% 2027	7,050	6,993
Fannie Mae 2.50% 2027	1,671	1,656
Fannie Mae 2.50% 2028	35,241	34,969
Fannie Mae 2.50% 2028	10,000	9,903
Fannie Mae 2.50% 2028	7,429	7,372
Fannie Mae 3.50% 2028	43,060	44,956
Fannie Mae 5.50% 2028	402	438
Fannie Mae 6.00% 2028	1,686	1,850
Fannie Mae 6.00% 2028	608	667
Fannie Mae 6.00% 2028	583	639
Fannie Mae 6.50% 2034	1,849	2,071
Fannie Mae 2.529% 2037²	3,334	3,557
Fannie Mae 2.586% 2037²	1,258	1,338
Fannie Mae 2.594% 2037²	5,647	6,009
Fannie Mae 7.00% 2037	431	484
Fannie Mae 7.50% 2037	113	129
Fannie Mae 2.596% 2038²	1,323	1,405
Fannie Mae 5.336% 2038²	461	499
Fannie Mae 5.50% 2038	6,892	7,477
Fannie Mae 3.723% 2039²	412	435
Fannie Mae 3.858% 2039²	690	730
Fannie Mae 3.939% 2039²	233	246
Fannie Mae 3.972% 2039²	3,301	3,507
Fannie Mae 6.50% 2039	1,307	1,443
Fannie Mae 3.246% 2040²	9,256	9,770
Fannie Mae 4.195% 2040²	4,308	4,537
Fannie Mae 4.406% 2040²	11,437	12,104
Fannie Mae 5.50% 2040	3,706	4,040
Fannie Mae 5.50% 2040	1,194	1,296
Fannie Mae 3.168% 2041²	5,375	5,564
Fannie Mae 3.439% 2041²	5,238	5,464
Fannie Mae 3.528% 2041²	2,194	2,276
Fannie Mae 3.564% 2041²	9,308	9,654
Fannie Mae 4.50% 2041	241	255
Fannie Mae 5.00% 2041	25,713	27,866
Fannie Mae 5.00% 2041	8,525	9,263
Fannie Mae 5.00% 2041	8,433	9,140
Fannie Mae 5.00% 2041	8,000	8,697
Fannie Mae 5.00% 2041	566	612
Fannie Mae 2.065% 2042²	10,496	10,651
Fannie Mae 2.189% 2042²	12,723	12,947
Fannie Mae 2.59% 2042²	22,673	22,433
Fannie Mae 2.63% 2042²	4,077	4,139
Fannie Mae 2.951% 2042²	3,284	3,313
Fannie Mae 4.00% 2042	24,999	25,832
Fannie Mae 4.50% 2043	210,250	221,880
Fannie Mae 5.00% 2043	14,050	15,104
Fannie Mae 7.00% 2047	72	81
Fannie Mae 3.732% 2050²	2,276	2,404
Fannie Mae, Series 2001-4, Class GA, 9.542% 2025²	190	220
Fannie Mae, Series 2001-4, Class NA, 10.851% 2025²	170	189
Fannie Mae, Series 2002-W7, Class A-5, 7.50% 2029	513	583
Fannie Mae, Series 2001-20, Class D, 11.011% 2031²	32	34
Bonds, notes & other debt instruments
	Principal amount	Value
Mortgage-backed obligations — Federal agency mortgage-backed obligations⁴ (continued)	(000)	(000)

Fannie Mae, Series 2005-29, Class AK, 4.50% 2035	$ 1,804	$ 1,829
Fannie Mae, Series 2006-96, Class MO, principal only, 0% 2036	2,115	2,031
Fannie Mae, Series 2006-43, Class PX, 6.00% 2036	7,603	8,355
Fannie Mae, Series 2006-49, Class PA, 6.00% 2036	2,402	2,658
Fannie Mae, Series 2006-123, Class BO, principal only, 0% 2037	5,464	4,947
Fannie Mae, Series 2007-114, Class A7, 0.384% 2037²	12,500	12,327
Fannie Mae, Series 2007-33, Class HE, 5.50% 2037	3,878	4,203
Fannie Mae, Series 2001-T10, Class A-1, 7.00% 2041	158	187
Fannie Mae, Series 2001-50, Class BA, 7.00% 2041	125	140
Fannie Mae, Series 2002-W3, Class A-5, 7.50% 2041	622	729
Freddie Mac 5.00% 2023	2,285	2,429
Freddie Mac 5.00% 2023	789	839
Freddie Mac 5.00% 2024	516	557
Freddie Mac 4.00% 2026	7,658	8,055
Freddie Mac 6.00% 2026	190	207
Freddie Mac 6.00% 2026	74	81
Freddie Mac 6.50% 2027	1,462	1,614
Freddie Mac 2.858% 2037²	1,282	1,370
Freddie Mac 6.00% 2037	1,335	1,458
Freddie Mac 6.00% 2037	447	488
Freddie Mac 2.463% 2038²	4,542	4,824
Freddie Mac 2.802% 2038²	1,361	1,445
Freddie Mac 5.00% 2038	1	1
Freddie Mac 5.50% 2038	1,209	1,303
Freddie Mac 3.633% 2039²	1,528	1,619
Freddie Mac 4.50% 2039	598	629
Freddie Mac 3.416% 2041²	2,383	2,511
Freddie Mac 5.00% 2041	22,055	23,878
Freddie Mac 5.00% 2041	953	1,033
Freddie Mac, Series 1567, Class A, 0.584% 2023²	29	29
Freddie Mac, Series 2626, Class NG, 3.50% 2023	126	131
Freddie Mac, Series T-041, Class 3-A, 6.706% 2032²	369	428
Freddie Mac, Series 3061, Class PN, 5.50% 2035	4,197	4,579
Freddie Mac, Series 3171, Class MO, principal only, 0% 2036	4,733	4,266
Freddie Mac, Series 3213, Class OG, principal only, 0% 2036	2,363	2,128
Freddie Mac, Series 3156, Class NG, 6.00% 2036	2,766	3,066
Freddie Mac, Series 3292, Class BO, principal only, 0% 2037	702	658
Freddie Mac, Series 3271, Class OA, 6.00% 2037	3,630	4,025
Government National Mortgage Assn. 4.50% 2040	35,280	37,897
Government National Mortgage Assn. 2.50% 2042²	3,233	3,325
		1,025,013
Commercial mortgage-backed securities⁴ 1.88%

Greenwich Capital Commercial Funding Corp., Series 2005-GG5, Class A-4-1, 5.243% 2037²	9,290	9,305
Greenwich Capital Commercial Funding Corp., Series 2006-GG7, Class A-4, 6.056% 2038²	25,165	27,652
Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class A-4, 5.444% 2039	2,950	3,242
Wachovia Bank Commercial Mortgage Trust, Series 2005-C16, Class A-PB, 4.692% 2041	180	181
Wachovia Bank Commercial Mortgage Trust, Series 2007-C30, Class A-5, 5.342% 2043	15,000	16,517
Wachovia Bank Commercial Mortgage Trust, Series 2005-C22, Class A-4, 5.465% 2044²	8,981	9,613
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-CIBC12, Class A-3B, 5.464% 2037²	859	867
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP3, Class A-4B, 4.996% 2042²	1,000	1,062
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2011-C3A, Class A-2, 3.673% 2046³	9,450	9,981
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2007-CB19, Class A-4, 5.90% 2049²	10,050	11,212
CS First Boston Mortgage Securities Corp., Series 2004-C2, Class E, 5.736% 2036²	2,000	2,223
Bonds, notes & other debt instruments
	Principal amount	Value
Mortgage-backed obligations — Commercial mortgage-backed securities⁴ (continued)	(000)	(000)

CS First Boston Mortgage Securities Corp., Series 2003-C3, Class G, 4.617% 2038³	$ 2,000	$ 2,004
CS First Boston Mortgage Securities Corp., Series 2006-C4, Class A-3, 5.467% 2039	14,327	15,590
ML-CFC Commercial Mortgage Trust, Series 2006-4, Class A-3, 5.172% 2049²	3,000	3,269
ML-CFC Commercial Mortgage Trust, Series 2007-8, Class A-3, 6.093% 2049²	12,250	13,759
J.P. Morgan Chase Commercial Mortgage Securities Trust, Series 2006-LDP8, Class A-4, 5.399% 2045	5,000	5,467
J.P. Morgan Chase Commercial Mortgage Securities Trust, Series 2006-LDP7, Class A-M, 6.056% 2045²	6,500	7,107
DBUBS Mortgage Trust, Series 2011-LC1A, Class A1, 3.742% 2046³	8,728	9,198
Bear Stearns Commercial Mortgage Securities Trust, Series 2007-PW17, Class A-4, 5.694% 2050²	7,005	7,849
Crown Castle Towers LLC, Series 2010-1, Class C, 4.523% 2035³	6,000	6,255
GE Commercial Mortgage Corp., Series 2004-C3, Class B, 5.514% 2039²	2,000	2,058
GE Commercial Mortgage Corp., Series 2004-C2, Class B, 4.983% 2040	2,100	2,139
GE Commercial Mortgage Corp., Series 2005-C4, Class A-3A, 5.488% 2045²	1,241	1,241
LB-UBS Commercial Mortgage Trust, Series 2007-C7, Class A-M, 6.425% 2045²	4,500	5,104
Bear Stearns Commercial Mortgage Securities Inc., Series 1999-C1, Class X, interest only, 0.848% 2031^2,3	12,160	48
Bear Stearns Commercial Mortgage Securities Inc., Series 2005-PWR9, Class A-AB, 4.804% 2042	1,411	1,434
Morgan Stanley Capital I Trust, Series 2006-IQ11, Class A-M, 5.857% 2042²	1,000	1,077
Merrill Lynch Mortgage Trust, Series 2005-MKB2, Class A-2, 4.806% 2042	9	9
		175,463
Other mortgage-backed securities⁴ 0.13%

Bank of Montreal 2.85% 2015³	7,500	7,790
Northern Rock PLC 5.625% 2017³	3,150	3,581
Royal Bank of Canada 3.125% 2015³	1,000	1,039
		12,410
Collateralized mortgage-backed obligations (privately originated)⁴ 0.07%

Freddie Mac, Series 2013-DN1, Class M-1, 3.59% 2023²	4,238	4,299
CS First Boston Mortgage Securities Corp., Series 2002-34, Class I-A-1, 7.50% 2032	241	257
CS First Boston Mortgage Securities Corp., Series 2002-30, Class I-A-1, 7.50% 2032	235	255
CS First Boston Mortgage Securities Corp., Series 2003-21, Class V-A-1, 6.50% 2033	332	358
CS First Boston Mortgage Securities Corp., Series 2003-29, Class V-A-1, 7.00% 2033	861	948
Paine Webber CMO, Series O, Class 5, 9.50% 2019	51	55
		6,172
Total mortgage-backed obligations		1,219,058
Federal agency bonds & notes 6.17%

Freddie Mac 0.375% 2013	55,000	55,024
Freddie Mac 0.75% 2014	20,000	20,114
Freddie Mac 2.50% 2014	11,000	11,161
Freddie Mac 5.00% 2014	10,000	10,419
Freddie Mac 2.50% 2016	45,000	47,044
Freddie Mac 5.50% 2016	2,920	3,308
Freddie Mac 1.00% 2017	16,400	16,207
Freddie Mac 1.00% 2017	10,000	9,802
Freddie Mac 0.75% 2018	10,000	9,617
Freddie Mac 4.875% 2018	11,135	12,699
Freddie Mac 1.25% 2019	25,000	23,490
Freddie Mac 1.375% 2020	20,000	18,654
Freddie Mac, Series K020, Class A2, multifamily 2.373% 2022⁴	7,500	6,985
Freddie Mac, Series K021, Class A2, multifamily 2.396% 2022⁴	9,195	8,549
Fannie Mae 2.625% 2014	9,000	9,256
Fannie Mae 2.75% 2014	20,000	20,277
Bonds, notes & other debt instruments
	Principal amount	Value
Federal agency bonds & notes (continued)	(000)	(000)

Fannie Mae 3.00% 2014	$ 8,250	$ 8,485
Fannie Mae 1.625% 2015	30,000	30,706
Fannie Mae 2.375% 2015	25,000	25,927
Fannie Mae 0.50% 2016	14,630	14,536
Fannie Mae 1.25% 2016	10,000	10,083
Fannie Mae 5.375% 2016	2,080	2,348
Fannie Mae 0.875% 2018	15,000	14,396
Fannie Mae 1.875% 2018	25,110	25,078
Fannie Mae, Series 2012-M13, multifamily 1.246% 2017⁴	44,000	43,333
Fannie Mae, Series 2012-M8, multifamily 1.52% 2019⁴	8,335	8,201
Federal Home Loan Bank 2.50% 2014	3,300	3,360
Federal Home Loan Bank 5.50% 2014	5,000	5,253
Federal Home Loan Bank 0.50% 2015	40,000	39,997
Federal Home Loan Bank 5.375% 2016	1,420	1,611
Federal Home Loan Bank, Series 2816, 1.00% 2017	11,965	11,847
Federal Home Loan Bank 1.75% 2018	25,000	24,621
Federal Home Loan Bank 2.75% 2018	13,865	14,460
Federal Farm Credit Banks, Consolidated Systemwide Designated Bonds, 2.625% 2014	5,000	5,076
Federal Agricultural Mortgage Corp. 5.125% 2017³	1,070	1,212
CoBank, ACB 0.873% 2022^2,3	935	813
		573,949
Bonds & notes of governments & government agencies outside the U.S. 1.56%

Polish Government 5.00% 2015	8,000	8,672
Polish Government 6.375% 2019	2,825	3,246
Polish Government 3.00% 2023	10,000	8,931
Australia Government Agency-Guaranteed, Commonwealth Bank of Australia 2.70% 2014³	1,045	1,073
Australia Government Agency-Guaranteed, Commonwealth Bank of Australia 3.625% 2014³	14,000	14,363
United Kingdom Government Agency-Guaranteed, Network Rail Infrastructure Ltd 1.50% 2014³	15,000	15,074
France Government Agency-Guaranteed, Société Finance 2.875% 2014³	5,440	5,582
France Government Agency-Guaranteed, Société Finance 3.375% 2014³	5,900	6,022
Swedish Government 1.00% 2014³	10,600	10,662
Finland (Republic of) 1.25% 2015³	10,000	10,144
Europe Government Agency-Guaranteed, Dexia Credit Local 2.75% 2014³	10,000	10,139
Netherlands Government 1.00% 2017	10,000	9,945
European Investment Bank 3.125% 2014	9,250	9,445
Netherlands Government Agency-Guaranteed, ING Bank NV 3.90% 2014³	9,000	9,167
Asian Development Bank 2.75% 2014	5,100	5,178
Chilean Government 3.875% 2020	5,000	5,144
Aries Vermögensverwaltungs GmbH, Series C, 9.60% 2014	4,250	4,654
United Mexican States Government Global 5.875% 2014	3,500	3,576
Bermudan Government 4.854% 2024³	3,525	3,439
New Zealand Government Agency-Guaranteed, Westpac Securities Co. 3.45% 2014³	730	750
		145,206
Asset-backed obligations 0.81%

Hertz Vehicle Financing LLC, Rental Car Asset-backed Notes, Series 2013-1A, Class A-1, 1.12% 2017^3,4	22,000	21,791
Hertz Vehicle Financing LLC, Rental Car Asset-backed Notes, Series 2013-1A, Class A-2, 1.83% 2019^3,4	15,000	14,575
Chase Issuance Trust, Series 2006-8, Class A, 0.244% 2016^2,4	10,000	9,998
Aesop Funding LLC, Series 2012-3A, Class A, 2.10% 2019^3,4	10,000	9,915
Aesop Funding II LLC, Series 2013-1A, Class A, 1.92% 2019^3,4	8,360	8,123
MBNA Credit Card Master Note Trust, Series 2004-1, Class B, 4.45% 2016⁴	4,250	4,334
Lehman ABS Manufactured Housing Contract Trust, Series 2001-B, Class A-3, 4.35% 2040⁴	3,547	3,679
CenterPoint Energy Transition Bond Co. III, LLC, Series 2008, Class A-1, 4.192% 2020⁴	1,298	1,368
Bonds, notes & other debt instruments
	Principal amount	Value
Asset-backed obligations (continued)	(000)	(000)

World Omni Auto Receivables Trust, Series 2010-A, Class A-4, 2.21% 2015⁴	$ 921	$ 924
Green Tree Financial Corp., Series 1997-6, Class A-7, 7.14% 2029⁴	480	512
Origen Manufactured Housing Contract Trust, Series 2004-B, Class A-3, 4.75% 2021⁴	24	24
		75,243
Municipals 0.77%

State of Florida, Hurricane Catastrophe Fund Finance Corp., Revenue Bonds, Series 2013-A, 2.107% 2018	17,500	16,820
State of Florida, Hurricane Catastrophe Fund Finance Corp., Revenue Bonds, Series 2013-A, 2.995% 2020	7,500	6,936
State of New York, Urban Development Corp., Service Contract Revenue Refunding Bonds,
Series 2010-B, 5.00% 2014	15,000	15,244
State of New Jersey, Transportation Trust Fund Authority, Transportation System Revenue Refunding Bonds,
Series 2013-B, 1.758% 2018	14,900	14,033
State of New Jersey, General Obligation Refunding Bonds,
Series H, Assured Guaranty Municipal insured, 5.25% 2015	8,000	8,705
State of Washington, Energy Northwest, Columbia Generating Station Electric Revenue Bonds,
Series 2012-E, 2.197% 2019	5,500	5,328
State of Texas, Board of Regents of the University of Texas System, Revenue Refunding Financing
System Bonds (Build America Bonds — Direct Payment), Series 2010-D, 2.616% 2015	4,500	4,624
		71,690
Total bonds, notes & other debt instruments (cost: $8,331,529,000)		8,397,512
Preferred securities 0.03%

Financials 0.03%	Shares

CoBank, ACB, Class E, noncumulative³	4,000	2,708
Total preferred securities (cost: $3,985,000)		2,708
	Principal amount
Short-term securities 12.48%	(000)

Freddie Mac 0.10%–0.15% due 9/24/2013–5/6/2014	$303,100	302,908
Federal Home Loan Bank 0.06%–0.115% due 10/9/2013–1/15/2014	166,800	166,786
Procter & Gamble Co. 0.05%–0.10% due 9/23–12/2/2013³	102,700	102,691
Fannie Mae 0.10%–0.15% due 9/4/2013–5/2/2014	96,800	96,772
Coca-Cola Co. 0.09%–0.13% due 9/18–12/20/2013³	83,310	83,298
Wal-Mart Stores, Inc. 0.08%–0.09% due 9/20–10/30/2013³	78,600	78,596
NetJets Inc. 0.05% due 9/17/2013³	61,800	61,799
Federal Farm Credit Banks 0.15%–0.16% due 2/6–3/25/2014	51,600	51,583
ExxonMobil Corp. 0.06% due 9/12/2013	37,500	37,499
John Deere Bank SA 0.07% due 9/9/2013³	34,400	34,399
Medtronic Inc. 0.05% due 9/17/2013³	29,700	29,699
Parker-Hannifin Corp. 0.08% due 10/8/2013³	26,255	26,253
United Technologies Corp. 0.06% due 9/26/2013³	25,000	24,999
Paccar Financial Corp. 0.04%–0.12% due 9/3–9/11/2013	21,600	21,599
Emerson Electric Co. 0.07% due 9/25/2013³	13,000	12,999
E.I. duPont de Nemours and Co. 0.06% due 9/10/2013³	12,600	12,600
National Rural Utilities Cooperative Finance Corp. 0.09%-0.10% due 9/12–9/20/2013	11,400	11,400
General Electric Co. 0.04% due 9/3/2013	4,100	4,100
Abbott Laboratories 0.07% due 10/1/2013³	1,200	1,200
Total short-term securities (cost: $1,161,117,000)		1,161,180
Total investment securities (cost: $9,496,631,000)		9,561,400
Other assets less liabilities		(255,234)
Net assets		$9,306,166

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

Coupon rate may change periodically.

Acquired 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 $1,095,848,000, which represented 11.78% of the net assets of the fund.

⁴

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

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

MFGEFPX-023-1013O-S37726

Summary investment portfolio August 31, 2013

Investment mix by security type

Percent of net assets

Quality breakdown*	Percent of net assets
U.S. Treasury and agency^†		44.2	%
Aaa/AAA		14.5
Aa/AA		9.2
A/A		15.3
Baa/BBB		7.0
Unrated		0.1
Short-term securities & other assets less liabilities		9.7

^†

These securities are guaranteed by the full faith and credit of the United States government.

10	Intermediate Bond Fund of America

Bonds, notes & other debt instruments 90.23%		Principal amount (000)		Value (000)	Percent of net assets
U.S. Treasury bonds & notes 38.04%

U.S. Treasury 36.73%
U.S. Treasury:
1.875% 2014	$	35,000	$	35,312
2.25% 2014		51,000		51,803
2.625% 2014		188,250		192,469
0.25% 2015		370,100		369,452
1.75% 2015		100,000		102,568
2.25% 2015		58,000		59,611
4.125% 2015		50,000		53,191
4.25% 2015		50,000		53,722
0.50% 2016		95,500		94,940
0.625% 2016		145,000		144,361
2.00% 2016		70,000		72,449
2.375% 2016		50,000		52,237
4.50% 2016		47,500		52,010
5.125% 2016		96,500		107,968
7.50% 2016		40,000		48,322	36.73	%
0.50% 2017		67,640		65,738
0.875% 2017		535,125		530,378
1.00% 2017		247,250		246,496
2.50% 2017		153,750		161,522
4.25% 2017		50,000		55,994
4.50% 2017		60,000		67,334
4.625% 2017		115,000		129,043
0.75% 2018		90,000		87,215
1.00% 2018		60,000		58,488
1.50% 2018		35,000		34,783
3.50% 2018		60,000		65,365
1.75% 2022		81,200		75,634
0.75%–8.75% 2015–2023		310,100		350,065
				3,418,470	36.73

U.S. Treasury inflation-protected securities¹ 1.31%
U.S. Treasury inflation-protected securities:
2.00% 2014		38,730		39,123
0.125% 2018		41,412		42,174	1.31
0.125%–2.00% 2015–2026		40,084		40,222
				121,519	1.31

Total U.S. Treasury bonds & notes				3,539,989	38.04

Intermediate Bond Fund of America

Bonds, notes & other debt instruments (continued)		Principal amount (000)		Value (000)	Percent of net assets
Corporate bonds & notes 29.79%

Consumer staples 3.58%
Coca-Cola Co. 1.50%–3.625% 2014–2020	$	32,785	$	33,395	.36	%
Other securities				300,169	3.22
				333,564	3.58

Information technology 1.37%
Apple Inc. 1.00% 2018		51,000		48,713	.52
Other securities				79,053	.85
				127,766	1.37

Other corporate bonds & notes 24.84%
Other securities				2,311,047	24.84

Total corporate bonds & notes				2,772,377	29.79

Mortgage-backed obligations 13.09%
Federal agency mortgage-backed obligations² 11.01%
Fannie Mae:
2.50% 2023		79,603		81,086
2.50% 2023		58,788		59,884
2.50% 2023		34,393		35,034
2.50% 2028		35,241		34,969	9.78
3.50% 2028		43,060		44,956
4.50% 2043		210,250		221,880
0%–11.50% 2015–2050³		416,339		432,331
Freddie Mac 0%–6.706% 2023–2041³		69,583		73,651	.79
Government National Mortgage Assn. 4.50% 2040		35,280		37,897	.41
Other securities				3,325	.03
				1,025,013	11.01

Collateralized mortgage-backed obligations (privately originated)² 0.07%
Freddie Mac, Series 2013–DN1, Class M-1, 3.59% 2023³		4,238		4,299	.05
Other securities				1,873	.02
				6,172	.07

Other mortgage-backed securities 2.01%
Other securities				187,873	2.01

Total mortgage-backed obligations				1,219,058	13.09

Federal agency bonds & notes 6.17%
Freddie Mac:
0.375% 2013		55,000		55,024
2.50% 2016		45,000		47,044	2.72
0.75%–5.50% 2014–2022²		153,150		151,005
Fannie Mae:
Series 2012–M13, multifamily 1.246% 2017²		44,000		43,333
0.50%–5.375% 2014–2019²		167,405		169,293	2.28
Federal Home Loan Bank:
0.50% 2015		40,000		39,997
1.00%–5.50% 2014–2018		60,550		61,152	1.09
Other securities				7,101	.08
				573,949	6.17

12	Intermediate Bond Fund of America

				Value (000)		Percent of net assets
Other 3.14%
Other securities			$	292,139		3.14	%

Total bonds, notes & other debt instruments (cost: $8,331,529,000)				8,397,512		90.23

Preferred securities 0.03%
Financials 0.03%
Other securities				2,708		.03

Total preferred securities (cost: $3,985,000)				2,708		.03

Short-term securities 12.48%		Principal amount (000)
Freddie Mac 0.10%–0.15% due 9/24/2013–5/6/2014	$	303,100		302,908		3.26
Federal Home Loan Bank 0.06%–0.115% due 10/9/2013–1/15/2014		166,800		166,786		1.79
Procter & Gamble Co. 0.05%–0.10% due 9/23–12/2/2013⁴		102,700		102,691		1.10
Fannie Mae 0.10%–0.15% due 9/4/2013–5/2/2014		96,800		96,772		1.04
Coca-Cola Co. 0.09%–0.13% due 9/18–12/20/2013⁴		83,310		83,298		.90
Wal-Mart Stores, Inc. 0.08%–0.09% due 9/20–10/30/2013⁴		78,600		78,596		.85
NetJets Inc. 0.05% due 9/17/2013⁴		61,800		61,799		.66
Federal Farm Credit Banks 0.15%–0.16% due 2/6–3/25/2014		51,600		51,583		.55
ExxonMobil Corp. 0.06% due 9/12/2013		37,500		37,499		.40
Other securities				179,248		1.93

Total short-term securities (cost: $1,161,117,000)				1,161,180		12.48
Total investment securities (cost: $9,496,631,000)				9,561,400		102.74
Other assets less liabilities				(255,234	)	(2.74	)

Net assets			$	9,306,166		100.00	%

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.

The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.

¹	Index-linked bond whose principal amount moves with a government price index.
²	Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.
³	Coupon rate may change periodically.
⁴	Acquired 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, including those in “Other securities,” was $1,095,848,000, which represented 11.78% of the net assets of the fund.

See Notes to Financial Statements

Intermediate Bond Fund of America

Financial statements

Statement of assets and liabilities at August 31, 2013	(dollars in thousands)

Assets:
Investment securities, at value (cost: $9,496,631)			$	9,561,400
Cash				114
Receivables for:
Sales of investments	$	587,213
Sales of fund’s shares		14,381
Interest		44,083		645,677
				10,207,191
Liabilities:
Payables for:
Purchases of investments		873,168
Repurchases of fund’s shares		20,021
Dividends on fund’s shares		652
Investment advisory services		1,668
Services provided by related parties		5,166
Trustees’ deferred compensation		234
Other		116		901,025
Net assets at August 31, 2013			$	9,306,166

Net assets consist of:
Capital paid in on shares of beneficial interest			$	9,344,363
Distributions in excess of net investment income				(1,023	)
Accumulated net realized loss				(101,943	)
Net unrealized appreciation				64,769
Net assets at August 31, 2013			$	9,306,166

(dollars and shares in thousands, except per-share amounts)

Shares of beneficial interest issued and outstanding (no stated par value) —
unlimited shares authorized (694,619 total shares outstanding)

	Net assets		Shares outstanding		Net asset value per share
Class A	$	6,415,666		478,870	$	13.40
Class B		34,935		2,608		13.40
Class C		202,964		15,149		13.40
Class F-1		574,499		42,881		13.40
Class F-2		172,476		12,874		13.40
Class 529-A		384,580		28,705		13.40
Class 529-B		4,332		323		13.40
Class 529-C		86,583		6,463		13.40
Class 529-E		18,934		1,413		13.40
Class 529-F-1		75,903		5,666		13.40
Class R-1		12,223		912		13.40
Class R-2		142,186		10,613		13.40
Class R-3		160,869		12,007		13.40
Class R-4		115,796		8,643		13.40
Class R-5		41,914		3,129		13.40
Class R-6		862,306		64,363		13.40

See Notes to Financial Statements

14	Intermediate Bond Fund of America

Statement of operations for the year ended August 31, 2013	(dollars in thousands)

Investment income:
Income:
Interest				$	183,304
Fees and expenses*:
Investment advisory services		$	20,683
Distribution services			25,844
Transfer agent services			11,921
Administrative services			2,137
Reports to shareholders			489
Registration statement and prospectus			350
Trustees’ compensation			111
Auditing and legal			123
Custodian			26
State and local taxes			22
Other			670		62,376
Net investment income					120,928

Net realized gain and unrealized depreciation on investments:
Net realized gain on investments					28,451
Net unrealized depreciation on investments					(299,754	)
Net realized gain and unrealized depreciation on investments					(271,303	)

Net decrease in net assets resulting from operations				$	(150,375	)

*	Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements.

Statements of changes in net assets
	(dollars in thousands)

	Year ended August 31
	2013			2012
Operations:
Net investment income	$	120,928		$	160,966
Net realized gain on investments		28,451			83,093
Net unrealized (depreciation) appreciation on investments		(299,754	)		22,951
Net (decrease) increase in net assets resulting from operations		(150,375	)		267,010

Dividends paid or accrued to shareholders from net investment income		(135,040	)		(171,471	)

Net capital share transactions		(122,161	)		550,629

Total (decrease) increase in net assets		(407,576	)		646,168

Net assets:
Beginning of year		9,713,742			9,067,574
End of year (including distributions in excess of net investment income: $(1,023) and $(613), respectively)	$	9,306,166		$	9,713,742

See Notes to Financial Statements

Intermediate Bond Fund of America

Notes to financial statements

1. Organization

Share class	Initial sales charge	Contingent deferred sales charge upon redemption	Conversion feature
Classes A and 529-A	Up to 2.50%	None (except 1% for certain redemptions within one year of purchase without an initial sales charge)	None
Classes B and 529-B*	None	Declines from 5% to 0% for redemptions within six years of purchase	Classes B and 529-B convert to Classes A and 529-A, respectively, after eight years
Class C*	None	1% for redemptions within one year of purchase	Class C converts to Class F-1 after 10 years
Class 529-C*	None	1% for redemptions within one year of purchase	None
Class 529-E	None	None	None
Classes F-1, F-2 and 529-F-1	None	None	None
Classes R-1, R-2, R-3, R-4, R-5 and R-6	None	None	None

*	Class B, 529-B, C and 529-C shares of the fund are not available for purchase.

2. Significant accounting policies

The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The fund follows the significant accounting policies described below, as well as the valuation policies described in the next section on valuation.

16	Intermediate Bond Fund of America

3. Valuation

Fixed-income class		Example 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”)
Corporate bonds & notes; convertible securities		Standard inputs and underlying equity of the issuer
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
Municipal securities		Standard inputs and, for certain distressed securities, cash flows or liquidation values using a net present value calculation based on inputs that include, but are not limited to, financial statements and debt contracts

Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are generally valued in the manner described above for either equity or fixed-income securities, depending on which method is deemed most appropriate by the fund’s investment adviser. 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.

Intermediate Bond Fund of America

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 valuation guidelines adopted by authority of the fund’s board of trustees as further described below. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission 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.

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 August 31, 2013, all of the fund’s investment securities were classified as Level 2.

4. Risk factors

Investing in the fund may involve certain risks including, but not limited to, those described below.

18	Intermediate Bond Fund of America

Investing in mortgage-backed and asset-backed securities — Many types of bonds and other debt securities, including mortgage-backed securities, are subject to prepayment risk as well as the risks associated with investing in debt securities in general. If interest rates fall and the loans underlying these securities are prepaid faster than expected, the fund may have to reinvest the prepaid principal in lower yielding securities, thus reducing the fund’s income. Conversely, if interest rates increase and the loans underlying the securities are prepaid more slowly than expected, the time in which the securities are expected to be paid off could be extended. This may reduce the fund’s cash for potential reinvestment in higher yielding securities.

Thinly traded securities — There may be little trading in the secondary market for particular bonds or other debt securities, which may make them more difficult to value, acquire or sell.

5. Certain investment techniques

6. Taxation and distributions

As of and during the period ended August 31, 2013, the fund did not have a liability for any unrecognized tax benefits. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statement of operations. During the period, the fund did not incur any interest or penalties.

The fund is not subject to examination by U.S. federal tax authorities for tax years before 2009 and by state tax authorities for tax years before 2008.

Distributions — Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to different treatment for items such as short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase; deferred expenses; cost of investments sold; paydowns on fixed-income securities; net capital losses; and income on certain investments. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the fund for financial reporting purposes.

During the year ended August 31, 2013, the fund reclassified $13,710,000 from accumulated net realized loss to distributions in excess of net investment income and $8,000 from distributions in excess of net investment income to capital paid in on shares of beneficial interest to align financial reporting with tax reporting.

Intermediate Bond Fund of America

As of August 31, 2013, the tax basis components of distributable earnings, unrealized appreciation (depreciation) and cost of investment securities were as follows (dollars in thousands):

Undistributed ordinary income	$	572
Capital loss carryforward expiring 2018*		(66,274	)
Post-October capital loss deferral^†		(31,190	)
Gross unrealized appreciation on investment securities		146,514
Gross unrealized depreciation on investment securities		(87,074	)
Net unrealized appreciation on investment securities		59,440
Cost of investment securities		9,501,960

*	Reflects the utilization of capital loss carryforward of $48,429,000. The capital loss carryforward will be used to offset any capital gains realized by the fund in future years through the expiration date. The fund will not make distributions from capital gains while a capital loss carryforward remains.
^†	This deferral is considered incurred in the subsequent year.

Tax-basis distributions paid or accrued to shareholders from ordinary income were as follows (dollars in thousands):

	Year ended August 31
Share class	2013		2012
Class A	$	96,681	$	125,248
Class B		327		887
Class C		1,583		3,516
Class F-1		7,945		10,057
Class F-2		3,997		6,458
Class 529-A		5,347		6,558
Class 529-B		36		108
Class 529-C		536		1,011
Class 529-E		217		279
Class 529-F-1		1,197		1,429
Class R-1		97		175
Class R-2		1,013		1,777
Class R-3		1,823		2,589
Class R-4		1,775		2,361
Class R-5		764		993
Class R-6		11,702		8,025
Total	$	135,040	$	171,471

7. Fees and transactions with related parties

Investment advisory services — The fund has an investment advisory and service agreement with CRMC that provides for monthly fees accrued daily. These fees are based on a series of decreasing annual rates beginning with 0.300% on the first $60 million of daily net assets and decreasing to 0.140% on such assets in excess of $10 billion. The agreement also provides for monthly fees, accrued daily, based on a series of decreasing rates beginning with 3.00% on the first $3,333,333 of the fund’s monthly gross income and decreasing to 2.00% on such income in excess of $8,333,333. For the year ended August 31, 2013, the investment advisory services fee was $20,683,000, which was equivalent to an annualized rate of 0.210% of average daily net assets.

20	Intermediate Bond Fund of America

Distribution services — The fund has plans of distribution for all share classes, except Class F-2, R-5 and R-6 shares. Under the plans, the board of trustees approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares and service existing accounts. The plans provide for payments, based on an annualized percentage of average daily net assets, ranging from 0.30% to 1.00% as noted below. In some cases, the board of trustees has limited the amounts that may be paid to less than the maximum allowed by the plans. All share classes with a plan may use up to 0.25% of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.

For Class A and 529-A shares, distribution-related expenses include the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. These share classes reimburse AFD for amounts billed within the prior 15 months but only to the extent that the overall annual expense limit of 0.30% is not exceeded. As of August 31, 2013, there were no unreimbursed expenses subject to reimbursement for Class A or 529-A shares.

Share class	Currently approved limits			Plan limits
Class A		0.30	%		0.30	%
Class 529-A		0.30			0.50
Classes B and 529-B		1.00			1.00
Classes C, 529-C and R-1		1.00			1.00
Class R-2		0.75			1.00
Classes 529-E and R-3		0.50			0.75
Classes F-1, 529-F-1 and R-4		0.25			0.50

529 plan services — Each 529 share class is subject to service fees to compensate the Commonwealth of Virginia for the maintenance of the 529 college savings plan. The quarterly fee is based on a series of decreasing annual rates beginning with 0.10% on the first $30 billion of the net assets invested in Class 529 shares of the American Funds and decreasing to 0.06% on such assets between $120 billion and $150 billion. The fee for any given calendar quarter is accrued and calculated on the basis of the average net assets of Class 529 shares of the American Funds for the last month of the prior calendar quarter. The fee is included in other expenses on the accompanying financial statements. The Commonwealth of Virginia is not considered a related party.

Intermediate Bond Fund of America

For the year ended August 31, 2013, class-specific expenses under the agreements were as follows (dollars in thousands):

Share class	Distribution services		Transfer agent services		Administrative services		529 plan services
Class A		$16,805		$8,920		$690	Not applicable
Class B		487		66		Not applicable	Not applicable
Class C		2,564		333		129	Not applicable
Class F-1		1,446		664		290	Not applicable
Class F-2		Not applicable		279		121	Not applicable
Class 529-A		930		414		205	$403
Class 529-B		65		8		3	6
Class 529-C		983		107		50	98
Class 529-E		101		13		10	20
Class 529-F-1		—		78		39	77
Class R-1		153		18		8	Not applicable
Class R-2		1,138		549		78	Not applicable
Class R-3		852		310		86	Not applicable
Class R-4		320		135		64	Not applicable
Class R-5		Not applicable		25		23	Not applicable
Class R-6		Not applicable		2		341	Not applicable
Total class-specific expenses		$25,844		$11,921		$2,137	$604

Trustees’ deferred compensation — Trustees who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund or other American Funds. These amounts represent general, unsecured liabilities of the fund and vary according to the total returns of the selected funds. Trustees’ compensation of $111,000, shown on the accompanying financial statements, includes $72,000 in current fees (either paid in cash or deferred) and a net increase of $39,000 in the value of the deferred amounts.

8. Capital share transactions

Capital share transactions in the fund were as follows (dollars and shares in thousands):

	Sales*				Reinvestments of dividends				Repurchases*						Net (decrease) increase
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares

Year ended August 31, 2013

Class A	$	1,853,301		135,322	$	93,726		6,857	$	(2,216,704	)		(162,422	)	$	(269,677	)		(20,243	)
Class B		8,788		641		322		24		(34,891	)		(2,551	)		(25,781	)		(1,886	)
Class C		52,049		3,800		1,520		111		(139,311	)		(10,195	)		(85,742	)		(6,284	)
Class F-1		197,845		14,480		7,852		574		(199,200	)		(14,568	)		6,497			486
Class F-2		121,853		8,884		3,204		234		(236,236	)		(17,257	)		(111,179	)		(8,139	)
Class 529-A		101,924		7,440		5,325		390		(109,064	)		(8,005	)		(1,815	)		(175	)
Class 529-B		1,280		93		35		2		(5,461	)		(399	)		(4,146	)		(304	)
Class 529-C		19,813		1,447		535		39		(34,852	)		(2,556	)		(14,504	)		(1,070	)
Class 529-E		5,142		375		216		16		(5,847	)		(429	)		(489	)		(38	)
Class 529-F-1		19,405		1,419		1,191		87		(20,413	)		(1,494	)		183			12
Class R-1		4,229		308		97		7		(8,829	)		(646	)		(4,503	)		(331	)
Class R-2		47,343		3,455		1,008		74		(65,377	)		(4,780	)		(17,026	)		(1,251	)
Class R-3		63,457		4,632		1,803		132		(74,034	)		(5,416	)		(8,774	)		(652	)
Class R-4		44,429		3,242		1,765		129		(61,936	)		(4,529	)		(15,742	)		(1,158	)
Class R-5		13,802		1,010		763		56		(21,608	)		(1,578	)		(7,043	)		(512	)
Class R-6		488,402		35,658		11,667		855		(62,489	)		(4,586	)		437,580			31,927
Total net increase (decrease)	$	3,043,062		222,206	$	131,029		9,587	$	(3,296,252	)		(241,411	)	$	(122,161	)		(9,618	)

22	Intermediate Bond Fund of America

	Sales*				Reinvestments of dividends				Repurchases*						Net increase (decrease)
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares

Year ended August 31, 2012

Class A	$	1,771,493		129,618	$	121,420		8,882	$	(1,512,452	)		(110,631	)	$	380,461			27,869
Class B		16,440		1,204		871		64		(51,619	)		(3,778	)		(34,308	)		(2,510	)
Class C		81,607		5,974		3,373		247		(127,763	)		(9,343	)		(42,783	)		(3,122	)
Class F-1		213,935		15,651		9,999		731		(194,318	)		(14,232	)		29,616			2,150
Class F-2		125,625		9,188		4,946		362		(125,993	)		(9,192	)		4,578			358
Class 529-A		122,332		8,950		6,572		480		(65,217	)		(4,766	)		63,687			4,664
Class 529-B		3,072		225		108		8		(7,765	)		(568	)		(4,585	)		(335	)
Class 529-C		32,397		2,371		1,014		74		(22,844	)		(1,669	)		10,567			776
Class 529-E		7,232		529		279		21		(3,531	)		(258	)		3,980			292
Class 529-F-1		20,993		1,535		1,432		105		(11,007	)		(805	)		11,418			835
Class R-1		6,856		502		176		13		(5,210	)		(381	)		1,822			134
Class R-2		56,582		4,140		1,775		130		(57,499	)		(4,207	)		858			63
Class R-3		73,596		5,384		2,578		189		(71,877	)		(5,258	)		4,297			315
Class R-4		60,043		4,391		2,366		173		(49,120	)		(3,591	)		13,289			973
Class R-5		18,745		1,371		991		72		(16,765	)		(1,227	)		2,971			216
Class R-6		128,778		9,398		8,064		590		(32,081	)		(2,345	)		104,761			7,643
Total net increase (decrease)	$	2,739,726		200,431	$	165,964		12,141	$	(2,355,061	)		(172,251	)	$	550,629			40,321

*	Includes exchanges between share classes of the fund.

9. Investment transactions

The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $15,920,535,000 and $16,689,893,000, respectively, during the year ended August 31, 2013.

Intermediate Bond Fund of America

Financial highlights

			(Loss) income from investment operations¹
	Net asset value, beginning of period		Net investment income		Net (losses) gains on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Net asset value, end of period		Total return^2,3			Net assets, end of period (in millions)		Ratio of expenses to average net assets before reimbursements/ waivers			Ratio of expenses to average net assets after reimbursements/ waivers³			Ratio of net income to average net assets³
Class A:
Year ended 8/31/2013	$	13.79	$	.17	$	(.37	)	$	(.20	)	$	(.19	)	$	13.40		(1.46	)%	$	6,416		.60	%		.60	%		1.26	%
Year ended 8/31/2012		13.66		.24		.15			.39			(.26	)		13.79		2.86			6,884		.61			.61			1.76
Year ended 8/31/2011		13.65		.30		.02			.32			(.31	)		13.66		2.36			6,436		.60			.60			2.18
Year ended 8/31/2010		13.10		.33		.56			.89			(.34	)		13.65		6.91			6,723		.62			.62			2.51
Year ended 8/31/2009		13.02		.45		.09			.54			(.46	)		13.10		4.27			5,304		.69			.68			3.46
Class B:
Year ended 8/31/2013		13.79		.07		(.37	)		(.30	)		(.09	)		13.40		(2.20	)		35		1.35			1.35			.52
Year ended 8/31/2012		13.66		.13		.15			.28			(.15	)		13.79		2.10			62		1.35			1.35			1.04
Year ended 8/31/2011		13.65		.19		.02			.21			(.20	)		13.66		1.60			96		1.36			1.36			1.44
Year ended 8/31/2010		13.10		.23		.56			.79			(.24	)		13.65		6.12			175		1.36			1.36			1.78
Year ended 8/31/2009		13.02		.35		.09			.44			(.36	)		13.10		3.51			207		1.42			1.41			2.79
Class C:
Year ended 8/31/2013		13.79		.06		(.37	)		(.31	)		(.08	)		13.40		(2.24	)		203		1.40			1.40			.47
Year ended 8/31/2012		13.66		.13		.15			.28			(.15	)		13.79		2.05			296		1.40			1.40			.98
Year ended 8/31/2011		13.65		.19		.02			.21			(.20	)		13.66		1.55			335		1.41			1.41			1.39
Year ended 8/31/2010		13.10		.23		.56			.79			(.24	)		13.65		6.07			414		1.41			1.41			1.72
Year ended 8/31/2009		13.02		.35		.09			.44			(.36	)		13.10		3.47			342		1.46			1.46			2.69
Class F-1:
Year ended 8/31/2013		13.79		.17		(.37	)		(.20	)		(.19	)		13.40		(1.49	)		574		.64			.64			1.23
Year ended 8/31/2012		13.66		.23		.15			.38			(.25	)		13.79		2.80			585		.67			.67			1.70
Year ended 8/31/2011		13.65		.29		.02			.31			(.30	)		13.66		2.31			550		.65			.65			2.13
Year ended 8/31/2010		13.10		.33		.56			.89			(.34	)		13.65		6.86			573		.67			.67			2.45
Year ended 8/31/2009		13.02		.44		.09			.53			(.45	)		13.10		4.24			479		.71			.70			3.49
Class F-2:
Year ended 8/31/2013		13.79		.20		(.37	)		(.17	)		(.22	)		13.40		(1.24	)		172		.39			.39			1.49
Year ended 8/31/2012		13.66		.27		.15			.42			(.29	)		13.79		3.13			290		.35			.35			2.01
Year ended 8/31/2011		13.65		.33		.02			.35			(.34	)		13.66		2.63			282		.34			.34			2.44
Year ended 8/31/2010		13.10		.37		.56			.93			(.38	)		13.65		7.21			256		.34			.34			2.79
Year ended 8/31/2009		13.02		.48		.09			.57			(.49	)		13.10		4.54			245		.38			.38			3.23
Class 529-A:
Year ended 8/31/2013		13.79		.16		(.37	)		(.21	)		(.18	)		13.40		(1.55	)		385		.70			.70			1.16
Year ended 8/31/2012		13.66		.22		.15			.37			(.24	)		13.79		2.76			398		.70			.70			1.66
Year ended 8/31/2011		13.65		.29		.02			.31			(.30	)		13.66		2.29			331		.68			.68			2.11
Year ended 8/31/2010		13.10		.32		.56			.88			(.33	)		13.65		6.83			284		.69			.69			2.43
Year ended 8/31/2009		13.02		.44		.09			.53			(.45	)		13.10		4.21			200		.74			.73			3.42
Class 529-B:
Year ended 8/31/2013		13.79		.05		(.37	)		(.32	)		(.07	)		13.40		(2.32	)		4		1.48			1.48			.39
Year ended 8/31/2012		13.66		.12		.15			.27			(.14	)		13.79		1.96			9		1.48			1.48			.90
Year ended 8/31/2011		13.65		.18		.02			.20			(.19	)		13.66		1.48			13		1.47			1.47			1.32
Year ended 8/31/2010		13.10		.22		.56			.78			(.23	)		13.65		6.00			24		1.48			1.48			1.65
Year ended 8/31/2009		13.02		.34		.09			.43			(.35	)		13.10		3.39			23		1.54			1.53			2.65
Class 529-C:
Year ended 8/31/2013		13.79		.05		(.37	)		(.32	)		(.07	)		13.40		(2.31	)		87		1.47			1.47			.40
Year ended 8/31/2012		13.66		.12		.15			.27			(.14	)		13.79		1.97			104		1.47			1.47			.89
Year ended 8/31/2011		13.65		.18		.02			.20			(.19	)		13.66		1.49			92		1.46			1.46			1.32
Year ended 8/31/2010		13.10		.22		.56			.78			(.23	)		13.65		6.01			97		1.47			1.47			1.65
Year ended 8/31/2009		13.02		.34		.09			.43			(.35	)		13.10		3.40			72		1.53			1.52			2.66
Class 529-E:
Year ended 8/31/2013		13.79		.13		(.37	)		(.24	)		(.15	)		13.40		(1.78	)		19		.93			.93			.93
Year ended 8/31/2012		13.66		.19		.15			.34			(.21	)		13.79		2.51			20		.94			.94			1.42
Year ended 8/31/2011		13.65		.25		.02			.27			(.26	)		13.66		2.00			16		.96			.96			1.83
Year ended 8/31/2010		13.10		.29		.56			.85			(.30	)		13.65		6.54			14		.97			.97			2.16
Year ended 8/31/2009		13.02		.40		.09			.49			(.41	)		13.10		3.92			11		1.02			1.01			3.14

24	Intermediate Bond Fund of America

			(Loss) income from investment operations¹
	Net asset value, beginning of period		Net investment income		Net (losses) gains on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Net asset value, end of period		Total return³			Net assets, end of period (in millions)		Ratio of expenses to average net assets before reimbursements/ waivers			Ratio of expenses to average net assets after reimbursements/ waivers³			Ratio of net income to average net assets³
Class 529-F-1:
Year ended 8/31/2013	$	13.79	$	.19	$	(.37	)	$	(.18	)	$	(.21	)	$	13.40		(1.33	)%	$	76		.47	%		.47	%		1.39	%
Year ended 8/31/2012		13.66		.25		.15			.40			(.27	)		13.79		3.00			78		.47			.47			1.89
Year ended 8/31/2011		13.65		.32		.02			.34			(.33	)		13.66		2.50			66		.46			.46			2.32
Year ended 8/31/2010		13.10		.35		.56			.91			(.36	)		13.65		7.07			54		.47			.47			2.65
Year ended 8/31/2009		13.02		.47		.09			.56			(.48	)		13.10		4.44			37		.52			.52			3.63
Class R-1:
Year ended 8/31/2013		13.79		.06		(.37	)		(.31	)		(.08	)		13.40		(2.23	)		12		1.39			1.39			.48
Year ended 8/31/2012		13.66		.13		.15			.28			(.15	)		13.79		2.05			17		1.39			1.39			.97
Year ended 8/31/2011		13.65		.19		.02			.21			(.20	)		13.66		1.54			15		1.41			1.41			1.37
Year ended 8/31/2010		13.10		.23		.56			.79			(.24	)		13.65		6.06			19		1.42			1.42			1.69
Year ended 8/31/2009		13.02		.35		.09			.44			(.36	)		13.10		3.45			10		1.47			1.46			2.65
Class R-2:
Year ended 8/31/2013		13.79		.07		(.37	)		(.30	)		(.09	)		13.40		(2.20	)		142		1.36			1.36			.51
Year ended 8/31/2012		13.66		.13		.15			.28			(.15	)		13.79		2.06			164		1.39			1.39			.98
Year ended 8/31/2011		13.65		.19		.02			.21			(.20	)		13.66		1.55			161		1.41			1.40			1.38
Year ended 8/31/2010		13.10		.23		.56			.79			(.24	)		13.65		6.06			175		1.45			1.42			1.71
Year ended 8/31/2009		13.02		.35		.09			.44			(.36	)		13.10		3.47			146		1.53			1.45			2.72
Class R-3:
Year ended 8/31/2013		13.79		.12		(.37	)		(.25	)		(.14	)		13.40		(1.79	)		161		.95			.95			.92
Year ended 8/31/2012		13.66		.19		.15			.34			(.21	)		13.79		2.49			175		.96			.96			1.41
Year ended 8/31/2011		13.65		.25		.02			.27			(.26	)		13.66		1.99			169		.97			.97			1.81
Year ended 8/31/2010		13.10		.28		.56			.84			(.29	)		13.65		6.52			172		.99			.99			2.14
Year ended 8/31/2009		13.02		.40		.09			.49			(.41	)		13.10		3.90			153		1.04			1.03			3.14
Class R-4:
Year ended 8/31/2013		13.79		.17		(.37	)		(.20	)		(.19	)		13.40		(1.48	)		116		.63			.63			1.24
Year ended 8/31/2012		13.66		.23		.15			.38			(.25	)		13.79		2.83			135		.63			.63			1.74
Year ended 8/31/2011		13.65		.29		.02			.31			(.30	)		13.66		2.32			120		.65			.65			2.14
Year ended 8/31/2010		13.10		.33		.56			.89			(.34	)		13.65		6.87			121		.65			.65			2.46
Year ended 8/31/2009		13.02		.44		.09			.53			(.45	)		13.10		4.25			79		.70			.69			3.47
Class R-5:
Year ended 8/31/2013		13.79		.21		(.37	)		(.16	)		(.23	)		13.40		(1.18	)		42		.33			.33			1.54
Year ended 8/31/2012		13.66		.27		.15			.42			(.29	)		13.79		3.13			50		.34			.34			2.03
Year ended 8/31/2011		13.65		.33		.02			.35			(.34	)		13.66		2.62			47		.35			.35			2.44
Year ended 8/31/2010		13.10		.37		.56			.93			(.38	)		13.65		7.18			45		.36			.36			2.76
Year ended 8/31/2009		13.02		.48		.09			.57			(.49	)		13.10		4.56			35		.39			.39			3.76
Class R-6:
Year ended 8/31/2013		13.79		.22		(.37	)		(.15	)		(.24	)		13.40		(1.13	)		862		.27			.27			1.58
Year ended 8/31/2012		13.66		.28		.15			.43			(.30	)		13.79		3.19			447		.28			.28			2.08
Year ended 8/31/2011		13.65		.34		.02			.36			(.35	)		13.66		2.68			339		.30			.30			2.49
Year ended 8/31/2010		13.10		.37		.56			.93			(.38	)		13.65		7.24			315		.31			.31			2.77
Period from 5/1/2009 to 8/31/2009⁴		12.79		.14		.31			.45			(.14	)		13.10		3.56			21		.12			.12			1.08

	Year ended August 31
	2013			2012			2011			2010			2009
Portfolio turnover rate for all share classes		199	%		146	%		80	%		43	%		87	%

¹	Based on average shares outstanding.
²	Total returns exclude any applicable sales charges, including contingent deferred sales charges.
³	This column reflects the impact, if any, of certain reimbursements/waivers from CRMC. During one of the periods shown, CRMC reduced fees for investment advisory services. In addition, during some of the periods shown, CRMC paid a portion of the fund’s transfer agent fees for certain retirement plan share classes.
⁴	Based on operations for the period shown and, accordingly, is not representative of a full year.

See Notes to Financial Statements

Intermediate Bond Fund of America

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of

Intermediate Bond Fund of America:

We have audited the accompanying statement of assets and liabilities of Intermediate Bond Fund of America (the “Fund”), including the investment portfolio and the summary investment portfolio, as of August 31, 2013, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of August 31, 2013, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Intermediate Bond Fund of America as of August 31, 2013, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP

Costa Mesa, California

October 11, 2013

26	Intermediate Bond Fund of America

Intermediate Bond Fund of America

Part C

Other Information

Item 28. Exhibits for Registration Statement (1940 Act No. 811-05446 and 1933 Act No. 033-19514)

(a-1)

Articles of Incorporation – Certificate of Trust dated 8/20/09 – previously filed (see P/E Amendment No. 35 filed 10/29/10); and Amended and Restated Agreement and Declaration of Trust dated 12/5/12 – previously filed (see P/E Amendment No. 40 filed 10/31/13)

(a-2)

Certificate of Establishment and Designation of Class R-2E Shares

(b)

By-laws – By-laws – previously filed (see P/E Amendment No. 35 filed 10/29/10)

(c)

Instruments Defining Rights of Security Holders – Form of Share Certificate – previously filed (see P/E Amendment No. 20 filed 3/8/01)

(d)

Investment Advisory Contracts – Amended Investment Advisory and Service Agreement dated 4/1/11 – previously filed (see P/E Amendment No. 36 filed 10/31/11)

(e)

Underwriting Contracts – Form of Amended and Restated Principal Underwriting Agreement effective 8/29/14; Form of Selling Group Agreement; Form of Bank/Trust Company Selling Group Agreement; Form of Class F Share Participation Agreement; and Form of Bank/Trust Company Participation Agreement for Class F Shares

(f)

Bonus or Profit Sharing Contracts – Deferred Compensation Plan effective 3/21/13 – previously filed (see P/E Amendment No. 40 filed 10/31/13)

(g)

Custodian Agreements – Form of Global Custody Agreement dated 12/21/06 – previously filed (see P/E Amendment No. 29 filed 10/31/07)

(h-1)

Other Material Contracts – Form of Indemnification Agreement – previously filed (see P/E Amendment No. 35 filed 10/29/10); and Form of Agreement and Plan of Reorganization dated 8/24/09 – previously filed (see P/E Amendment No. 35 filed 10/29/10)

(h-2)

Form of Amended and Restated Shareholder Services Agreement dated 8/29/14; and Form of Amended and Restated Administrative Services Agreement dated 8/29/14

(i)

Legal Opinion – Legal Opinion

(j)

Other Opinions – Consent of Independent Registered Public Accounting Firm

(k) Omitted Financial Statements - None

(l)

Initial capital agreements - previously filed (see P/E Amendment No.14 filed 10/28/97)

(m-1)

Rule 12b-1 Plan – Forms of Plans of Distribution for Class A, B, C, F-1, 529-A, 529-B, 529-C, 529-E, 529-F-1, R-1, R-2, R-3 and R-4 shares dated 11/1/10 – previously filed (see P/E Amendment No. 35 filed 10/29/10)

(m-2)

Form of Plan of Distribution for Class R-2E shares dated 8/29/14

(n)

Rule 18f-3 Plan – Form of Amended and Restated Multiple Class Plan dated 8/29/14

(o) Reserved

(p)

Code of Ethics – Code of Ethics for The Capital Group Companies dated June 2014; and Code of Ethics for Registrant

Item 29. Persons Controlled by or Under Common Control with the Fund

None

Item 30. Indemnification

The Registrant is a joint-insured under Investment Advisor/Mutual Fund Errors and Omissions Policies, which insure its officers and trustees against certain liabilities. However, in no event will Registrant maintain insurance to indemnify any such person for any act for which Registrant itself is not permitted to indemnify the individual.

Article 8 of the Registrant’s Declaration of Trust as well as the indemnification agreements that the Registrant has entered into with each of its trustees who is not an “interested person” of the Registrant (as defined under the Investment Company Act of 1940, as amended), provide in effect that the Registrant will indemnify its officers and trustees against any liability or expenses actually and reasonably incurred by such person in any proceeding arising out of or in connection with his or her service to the Registrant, to the fullest extent permitted by applicable law, subject to certain conditions. In accordance with Section 17(h) and 17(i) of the Investment Company Act of 1940, as amended, and their respective terms, these provisions do not protect any person against any liability to the Registrant or its shareholders to which such person would otherwise be subject by reason of willful misfeasance, bad faith, gross negligence, or reckless disregard of the duties involved in the conduct of his or her office.

Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted to trustees, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the U.S. Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a trustee, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such trustee, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

Registrant will comply with the indemnification requirements contained in the Investment Company Act of 1940, as amended, and Release Nos. 7221 (June 9, 1972) and 11330 (September 4, 1980).

Item 31. Business and Other Connections of the Investment Adviser

None

Item 32. Principal Underwriters

(a) American Funds Distributors, Inc. is the Principal Underwriter of shares of: AMCAP Fund, American Balanced Fund, American Funds College Target Date Series, American Funds Corporate Bond Fund, American Funds Developing World Growth and Income Fund, American Funds Fundamental Investors, American Funds Global Balanced Fund, American Funds Global High-Income Opportunities Fund, The American Funds Income Series, American Funds Inflation Linked Bond Fund; American Funds Money Market Fund, American Funds Mortgage Fund, American Funds Portfolio Series, American Funds Short-Term Tax-Exempt Bond Fund, American Funds Target Date Retirement Series, American Funds Tax-Exempt Fund of New York, The American Funds Tax-Exempt Series I, The American Funds Tax-Exempt Series II, American High-Income Municipal Bond Fund, American High-Income Trust, American Mutual Fund, The Bond Fund of America, Capital Group Emerging Markets Total Opportunities Fund, Capital Income Builder, Capital Group Private Client Services Funds, Capital World Bond Fund, Capital World Growth and Income Fund, Emerging Markets Growth Fund, Inc., EuroPacific Growth Fund, The Growth Fund of America, The Income Fund of America, Intermediate Bond Fund of America, International Growth and Income Fund, The Investment Company of America, Limited Term Tax-Exempt Bond Fund of America, The New Economy Fund, New Perspective Fund, New World Fund, Inc., Short-Term Bond Fund of America, SMALLCAP World Fund, Inc., The Tax-Exempt Bond Fund of America and Washington Mutual Investors Fund

(b)

	(1) Name and Principal Business Address	(2) Positions and Offices with Underwriter	(3) Positions and Offices with Registrant
LAO	Raymond Ahn	Vice President	None
IRV	Laurie M. Allen	Director and Senior Vice President	None
LAO	William C. Anderson	Director, Senior Vice President and Director of Investment Services	None
LAO	Dion T. Angelopoulos	Assistant Vice President	None
LAO	Curtis A. Baker	Senior Vice President, Capital Group Institutional Investment Services Division	None
LAO	T. Patrick Bardsley	Vice President	None
LAO	Shakeel A. Barkat	Senior Vice President	None
LAO	Brad A. Barrett	Director	None

IRV	Carl R. Bauer	Vice President	None
LAO	Brett A. Beach	Assistant Vice President	None
LAO	Jerry R. Berg	Regional Vice President	None
LAO	Joseph W. Best, Jr.	Senior Vice President, Capital Group Institutional Investment Services Division	None
LAO	Roger J. Bianco, Jr.	Vice President	None
LAO	Ryan M. Bickle	Vice President, Capital Group Institutional Investment Services Division	None
LAO	John A. Blanchard	Senior Vice President	None
LAO	Marek Blaskovic	Regional Vice President	None
LAO	Gerard M. Bockstie, Jr.	Senior Vice President	None
LAO	Jill M. Boudreau	Vice President, Capital Group Institutional Investment Services Division	None
LAO	Andre W. Bouvier	Vice President, Capital Group Institutional Investment Services Division	None
LAO	Michael A. Bowman	Senior Vice President, Capital Group Institutional Investment Services Division	None
LAO	Bill Brady	Director and Senior Vice President	None
IRV	Jason E. Brady	Regional Vice President	None
LAO	Mick L. Brethower	Senior Vice President	None
LAO	C. Alan Brown	Vice President	None
LAO	E. Chapman Brown, Jr.	Regional Vice President	None
LAO	Toni L. Brown	Senior Vice President, Capital Group Institutional Investment Services Division	None

LAO	Gary D. Bryce	Regional Vice President	None
LAO	Sheryl M. Burford	Assistant Vice President	None
LAO	Ronan J. Burke	Senior Vice President, Capital Group Institutional Investment Services Division	None
LAO	Steven Calabria	Vice President	None
LAO	Thomas E. Callahan	Vice President	None
LAO	Anthony J. Camilleri	Regional Vice President	None
SNO	Susan H. Campbell	Vice President	None
LAO	Damian F. Carroll	Senior Vice President, Capital Group Institutional Investment Services Division	None
LAO	James D. Carter	Vice President	None
LAO	Stephen L. Caruthers	Vice President, Capital Group Institutional Investment Services Division	None
LAO	Brian C. Casey	Senior Vice President	None
LAO	Christopher J. Cassin	Senior Vice President	None
LAO	Craig L. Castner	Regional Vice President	None
LAO	Christopher M. Cefalo	Regional Vice President	None
LAO	David D. Charlton	Director, Senior Vice President and Director of Marketing	None
LAO	Thomas M. Charon	Senior Vice President	None
LAO	Wellington Choi	Senior Vice President, Capital Group Institutional Investment Services Division	None
LAO	Paul A. Cieslik	Vice President	None
LAO	Andrew R. Claeson	Regional Vice President	None

LAO	Kevin G. Clifford	Director, Chairman, President and Chief Executive Officer; President, Capital Group Institutional Investment Services Division	None
LAO	Ruth M. Collier	Senior Vice President	None
IND	Timothy J. Colvin	Regional Vice President	None
LAO	Christopher M. Conwell	Vice President	None
LAO	C. Jeffrey Cook	Senior Vice President, Capital Group Institutional Investment Services Division	None
LAO	Charles H. Cote	Vice President	None
LAO	Joseph G. Cronin	Vice President	None
LAO	D. Erick Crowdus	Vice President	None
LAO	Katherine Randall Danella	Vice President	None
LAO	Brian M. Daniels	Vice President	None
LAO	William F. Daugherty	Senior Vice President	None
LAO	Shane L. Davis	Regional Vice President	None
LAO	Peter J. Deavan	Vice President	None
LAO	Guy E. Decker	Senior Vice President	None
LAO	Renee A. Degner	Regional Vice President	None
LAO	Daniel J. Delianedis	Senior Vice President	None
LAO	Stephen Deschenes	Senior Vice President, Capital Group Institutional Investment Services Division	None
LAO	Mario P. DiVito	Vice President, Capital Group Institutional Investment Services Division	None
LAO	Joanne H. Dodd	Senior Vice President, Capital Group Institutional Investment Services Division	None

LAO	Kevin F. Dolan	Vice President, Capital Group Institutional Investment Services Division	None
LAO	Michael J. Downer	Director	None
LAO	John J. Doyle	Senior Vice President, Capital Group Institutional Investment Services Division	None
LAO	Ryan T. Doyle	Regional Vice President	None
LAO	Craig Duglin	Vice President, Capital Group Institutional Investment Services Division	None
LAO	Alan J. Dumas	Regional Vice President	None
LAO	Bryan K. Dunham	Regional Vice President	None
LAO	John E. Dwyer IV	Senior Vice President, Capital Group Institutional Investment Services Division	None
IND	Karyn B. Dzurisin	Regional Vice President	None
LAO	Kevin C. Easley	Regional Vice President	None
LAO	Damian Eckstein	Regional Vice President	None
LAO	Timothy L. Ellis	Senior Vice President	None
LAO	John M. Fabiano	Regional Vice President	None
LAO	E. Luke Farrell	Senior Vice President, Capital Group Institutional Investment Services Division	None
LAO	Mark A. Ferraro	Regional Vice President	None
LAO	Lorna Fitzgerald	Vice President	None
LAO	William F. Flannery	Senior Vice President	None
LAO	David R. Ford	Regional Vice President	None
SFO	Cheryl E. Frank	Director	None
LAO	Charles L. Freadhoff	Vice President	None

LAO	Daniel B. Frick	Senior Vice President	None
SNO	Arturo V. Garcia, Jr.	Assistant Vice President	None
LAO	J. Gregory Garrett	Senior Vice President, Capital Group Institutional Investment Services Division	None
LAO	Brian K. Geiger	Regional Vice President	None
LAO	Jacob M. Gerber	Vice President, Capital Group Institutional Investment Services Division	None
LAO	J. Christopher Gies	Senior Vice President	None
LAO	Pamela A. Gillett	Regional Vice President	None
LAO	Robert E. Greeley, Jr.	Regional Vice President	None
LAO	Jeffrey J. Greiner	Senior Vice President	None
LAO	Eric M. Grey	Senior Vice President	None
LAO	E. Renee Grimm	Regional Vice President	None
IRV	Steven Guida	Director and Senior Vice President	None
IRV	DeAnn C. Haley	Assistant Vice President	None
IND	Thomas P. Halloran	Regional Vice President	None
LAO	Dale K. Hanks	Vice President, Capital Group Institutional Investment Services Division	None
LAO	David R. Hanna	Regional Vice President	None
LAO	Derek S. Hansen	Vice President	None
LAO	John R. Harley	Senior Vice President	None
LAO	Calvin L. Harrelson III	Senior Vice President, Capital Group Institutional Investment Services Division	None
LAO	Robert J. Hartig, Jr.	Senior Vice President	None

LAO	Craig W. Hartigan	Vice President	None
LAO	David F. Holstein	Senior Vice President, Capital Group Institutional Investment Services Division	None
LAO	Heidi Horwitz-Marcus	Director and Senior Vice President	None
LAO	Frederic J. Huber	Vice President, Capital Group Institutional Investment Services Division	None
LAO	David K. Hummelberg	Director, Senior Vice President, Treasurer and Controller	None
LAO	Jeffrey K. Hunkins	Regional Vice President	None
LAO	Marc Ialeggio	Vice President	None
IND	David K. Jacocks	Assistant Vice President	None
LAO	W. Chris Jenkins	Vice President	None
LAO	Daniel J. Jess II	Regional Vice President	None
IND	Jameel S. Jiwani	Regional Vice President	None
LAO	Brendan M. Jonland	Regional Vice President	None
LAO	David G. Jordt	Regional Vice President	None
LAO	Stephen T. Joyce	Senior Vice President, Capital Group Institutional Investment Services Division	None
LAO	Marc J. Kaplan	Vice President	None
LAO	John P. Keating	Senior Vice President	None
LAO	Brian G. Kelly	Senior Vice President	None
LAO	Christopher J. Kennedy	Regional Vice President	None
LAO	Ryan C. Kidwell	Vice President	None
LAO	Christopher W. Kilroy	Senior Vice President	None

LAO	Charles A. King	Senior Vice President, Capital Group Institutional Investment Services Division	None
LAO	Mark Kistler	Vice President	None
NYO	Dorothy Klock	Senior Vice President	None
LAO	Stephen J. Knutson	Assistant Vice President	None
IRV	Elizabeth K. Koster	Vice President	None
SNO	David D. Kuncho	Assistant Vice President	None
LAO	Richard M. Lang	Vice President, Capital Group Institutional Investment Services Division	None
LAO	Christopher F. Lanzafame	Vice President	None
IRV	Laura Lavery	Vice President	None
LAO	R. Andrew LeBlanc	Director and Senior Vice President	None
LAO	Matthew N. Leeper	Regional Vice President	None
LAO	Clay M. Leveritt	Regional Vice President	None
LAO	Lorin E. Liesy	Vice President	None
LAO	Louis K. Linquata	Senior Vice President	None
LAO	Donald S. MacQuattie, Jr.	Vice President, Capital Group Institutional Investment Services Division	None
LAO	James M. Maher	Regional Vice President	None
LAO	Brendan T. Mahoney	Senior Vice President	None
LAO	Nathan G. Mains	Vice President	None
LAO	Mark A. Marinella	Senior Vice President	None
LAO	Dana C. McCollum	Vice President	None
LAO	Joseph A. McCreesh, III	Vice President	None

LAO	Ross M. McDonald	Regional Vice President	None
LAO	Timothy W. McHale	Secretary	None
LAO	Max J. McQuiston	Regional Vice President	None
LAO	Scott M. Meade	Senior Vice President	None
LAO	David A. Merrill	Assistant Vice President	None
LAO	William C. Miller, Jr.	Senior Vice President	None
LAO	William T. Mills	Vice President	None
LAO	Sean C. Minor	Regional Vice President	None
LAO	James R. Mitchell III	Vice President	None
LAO	Charles L. Mitsakos	Senior Vice President	None
LAO	Ryan D. Moore	Vice President, Capital Group Institutional Investment Services Division	None
LAO	Steven A. Moreno	Senior Vice President, Capital Group Institutional Investment Services Division	None
LAO	David H. Morrison	Vice President, Capital Group Institutional Investment Services Division	None
LAO	Andrew J. Moscardini	Senior Vice President, Capital Group Institutional Investment Services Division	None
NYO	Timothy J. Murphy	Vice President	None
LAO	Jon Christian Nicolazzo	Vice President	None
LAO	Earnest M. Niemi	Regional Vice President	None
LAO	William E. Noe	Senior Vice President	None
LAO	Matthew P. O’Connor	Director and Executive Vice President; Senior Vice President, Capital Group Institutional Investment Services Division	None

LAO	Jonathan H. O’Flynn	Vice President	None
LAO	Peter A. Olsen	Regional Vice President	None
LAO	Jeffrey A. Olson	Vice President	None
LAO	Thomas A. O’Neil	Vice President	None
LAO	Gregory H. Ortman	Vice President, Capital Group Institutional Investment Services Division	None
LAO	Shawn M. O’Sullivan	Vice President	None
IND	Lance T. Owens	Regional Vice President	None
LAO	Rodney Dean Parker II	Regional Vice President	None
LAO	Lynn M. Patrick	Vice President, Capital Group Institutional Investment Services Division	None
LAO	W. Burke Patterson, Jr.	Senior Vice President	None
LAO	Gary A. Peace	Senior Vice President	None
LAO	Robert J. Peche	Vice President, Capital Group Institutional Investment Services Division	None
LAO	David K. Petzke	Senior Vice President	None
IRV	John H. Phelan, Jr.	Director	None
IND	Mary E. Phillips	Assistant Vice President	None
LAO	Joseph M. Piccolo	Regional Vice President	None
LAO	Keith A. Piken	Vice President	None
LAO	John Pinto	Vice President, Capital Group Institutional Investment Services Division	None
LAO	Carl S. Platou	Senior Vice President	None
LAO	David T. Polak	Senior Vice President, Capital Group Institutional Investment Services Division	None

LAO	Charles R. Porcher	Vice President	None
SNO	Richard P. Prior	Senior Vice President	None
LAO	Steven J. Quagrello	Vice President	None
LAO	Mike Quinn	Senior Vice President	None
LAO	James R. Raker	Vice President, Capital Group Institutional Investment Services Division	None
SNO	John P. Raney	Vice President	None
LAO	James P. Rayburn	Vice President	None
LAO	Rene M. Reincke	Vice President	None
LAO	Jeffrey Robinson	Vice President	None
LAO	Matthew M. Robinson	Regional Vice President	None
LAO	Thomas W. Rose	Vice President, Capital Group Institutional Investment Services Division	None
LAO	Suzette M. Rothberg	Senior Vice President	None
LAO	James F. Rothenberg	Director	None
LAO	Romolo D. Rottura	Senior Vice President	None
LAO	Shane A. Russell	Regional Vice President	None
LAO	William M. Ryan	Vice President	None
LAO	Christopher M. Ryder	Senior Vice President, Capital Group Institutional Investment Services Division	None
LAO	Dean B. Rydquist	Director, Senior Vice President and Chief Compliance Officer	None
IND	Brenda S. Rynski	Regional Vice President	None
LAO	Richard A. Sabec, Jr.	Senior Vice President	None
LAO	Paul V. Santoro	Senior Vice President	None

LAO	Keith A. Saunders	Regional Vice President	None
LAO	Joseph D. Scarpitti	Senior Vice President	None
IRV	MaryAnn Scarsone	Assistant Vice President	None
LAO	Mark A. Seaman	Senior Vice President, Capital Group Institutional Investment Services Division	None
LAO	James J. Sewell III	Senior Vice President	None
LAO	Arthur M. Sgroi	Senior Vice President	None
LAO	Brad Short	Vice President	None
LAO	Nathan W. Simmons	Vice President	None
LAO	Connie F. Sjursen	Vice President	None
LAO	Jerry L. Slater	Senior Vice President	None
LAO	Matthew Smith	Assistant Vice President	None
SNO	Stacy D. Smolka	Vice President	None
LAO	J. Eric Snively	Vice President	None
LAO	Therese L. Soullier	Vice President	None
LAO	Kristen J. Spazafumo	Vice President	None
LAO	Mark D. Steburg	Senior Vice President	None
LAO	Michael P. Stern	Senior Vice President	None
LAO	Andrew J. Strandquist	Regional Vice President	None
NYO	Andrew B. Suzman	Director	None
LAO	Gary J. Thoma	Senior Vice President	None
LAO	John B. Thomas	Vice President	None
LAO	Cynrthia M. Thompson	Senior Vice President, Capital Group Institutional Investment Services Division	None
HRO	Stephen B. Thompson	Regional Vice President	None

LAO	Mark R. Threlfall	Vice President	None
IND	James P. Toomey	Vice President	None
LAO	Luke N. Trammell	Vice President	None
IND	Christopher E. Trede	Vice President	None
LAO	Jordan A. Trevino	Regional Vice President	None
LAO	Shaun C. Tucker	Senior Vice President, Capital Group Institutional Investment Services Division	None
LAO	David E. Unanue	Senior Vice President	None
LAO	Scott W. Ursin-Smith	Senior Vice President	None
LAO	Patrick D. Vance	Regional Vice President	None
SNO	Cindy Vaquiax	Vice President	None
LAO	Srinkanth Vemuri	Vice President	None
LAO	J. David Viale	Senior Vice President	None
LAO	Robert D. Vigneaux III	Vice President, Capital Group Institutional Investment Services Division	None
DCO	Bradley J. Vogt	Director	None
LAO	Todd R. Wagner	Senior Vice President, Capital Group Institutional Investment Services Division	None
LAO	Jon N. Wainman	Regional Vice President	None
LAO	Sherrie S. Walling	Assistant Vice President	None
SNO	Chris L. Wammack	Vice President	None
LAO	Thomas E. Warren	Senior Vice President	None
LAO	George J. Wenzel	Senior Vice President	None
LAO	Jason M. Weybrecht	Vice President, Capital Group Institutional Investment Services Division	None

LAO	Adam B. Whitehead	Regional Vice President	None
LAO	N. Dexter Williams	Senior Vice President, Capital Group Institutional Investment Services Division	None
LAO	Steven C. Wilson	Vice President	None
LAO	Steven Wilson	Vice President	None
LAO	Kurt A. Wuestenberg	Senior Vice President	None
LAO	Jason P. Young	Senior Vice President	None
LAO	Jonathan A. Young	Senior Vice President	None
LAO	Raul Zarco, Jr.	Vice President, Capital Group Institutional Investment Services Division	None

__________

DCO	Business Address, 3000 K Street N.W., Suite 230, Washington, DC 20007-5140
GVO-1	Business Address, 3 Place des Bergues, 1201 Geneva, Switzerland
HRO	Business Address, 5300 Robin Hood Road, Norfolk, VA 23513
IND	Business Address, 12811 North Meridian Street, Carmel, IN 46032
IRV	Business Address, 6455 Irvine Center Drive, Irvine, CA 92618
LAO	Business Address, 333 South Hope Street, Los Angeles, CA 90071
LAO-W	Business Address, 11100 Santa Monica Blvd., 15^th Floor, Los Angeles, CA 90025
NYO	Business Address, 630 Fifth Avenue, 36^th Floor, New York, NY 10111
SFO	Business Address, One Market, Steuart Tower, Suite 2000, San Francisco, CA 94105
SNO	Business Address, 3500 Wiseman Boulevard, San Antonio, TX 78251

Item 33. Location of Accounts and Records

Accounts, books and other records required by Rules 31a-1 and 31a-2 under the Investment Company Act of 1940, as amended, are maintained and kept in the offices of the Registrant’s investment adviser, Capital Research and Management Company, 333 South Hope Street, Los Angeles, California 90071; 6455 Irvine Center Drive, Irvine, CA 92618; and/or 5300 Robin Hood Road, Norfolk, Virginia 23513.

Registrant’s records covering shareholder accounts are maintained and kept by its transfer agent, American Funds Service Company, 6455 Irvine Center Drive, Irvine, CA 92618, 12811 North Meridian Street, Carmel, Indiana 46032, 14636 North Scottsdale Road, Scottsdale, Arizona 85254; 3500 Wiseman Boulevard, San Antonio, Texas 78251 and 5300 Robin Hood Road, Norfolk, Virginia 23513.

Registrant’s records covering portfolio transactions are maintained and kept by its custodian, JPMorgan Chase Bank, N.A., 270 Park Avenue, New York, New York 10017-2070.

Item 34. Management Services

None

Item 35. Undertakings

n/a

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets all of the requirements for effectiveness of this Registration Statement under rule 485(b) under the Securities Act of 1933 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, duly authorized, in the City of Los Angeles, and State of California, on the 28^th day of August, 2014.

INTERMEDIATE BOND FUND OF AMERICA

By: /s/ Mark A. Brett

(Mark A. Brett, President)

Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed below on August 28, 2014, by the following persons in the capacities indicated.

	Signature	Title
(1)	Principal Executive Officer:
	/s/ Mark A. Brett (Mark A. Brett)	President

(2)	Principal Financial Officer and Principal Accounting Officer:
	/s/ Karl C. Grauman (Karl C. Grauman)	Treasurer

(3)	Trustees:
	William H. Baribault*	Trustee
	James G. Ellis*	Trustee
	Leonard R. Fuller*	Trustee
	R. Clark Hooper*	Chairman of the Board (Independent and Non-Executive)
	Merit E. Janow*	Trustee
	Laurel B. Mitchell*	Trustee
	Frank M. Sanchez*	Trustee
	/s/ John H. Smet (John H. Smet)	Vice Chairman and Trustee

	Margaret Spellings*	Trustee
	Steadman Upham*	Trustee
	*By: /s/ Courtney R. Taylor
	(Courtney R. Taylor, pursuant to a power of attorney filed herewith)

Counsel represents that this amendment does not contain disclosures that would make the amendment ineligible for effectiveness under the provisions of Rule 485(b).

/s/ Liliane Corzo

(Liliane Corzo, Counsel)

POWER OF ATTORNEY

I, William H. Baribault, the undersigned Board member of the following registered investment companies (collectively, the “Funds”):

American Balanced Fund (File No. 002-10758, File No. 811-00066)

American Funds College Target Date Series (File No. 333-180729, File No. 811-22692)

American Funds Corporate Bond Fund (File No. 333-183929, File No. 811-22744)

American Funds Developing World Growth and Income Fund (File No. 333-190913, File No. 811-22881)

American Funds Global High-Income Opportunities Fund (File No. 333-183930, File No. 811-22745)

The American Funds Income Series – U.S. Government Securities Fund (File No. 002-98199, File No. 811-04318)

American Funds Inflation Linked Bond Fund (File No. 333-183931, File No. 811-22746)

American Funds Insurance Series (File No. 002-86838, File No. 811-03857)

American Funds Money Market Fund (File No. 333-157162, File No. 811-22277)

American Funds Mortgage Fund (File No. 333-168595, File No. 811-22449)

American Funds Portfolio Series (File No. 333-178936, File No. 811-22656)

American Funds Short-Term Tax-Exempt Bond Fund (File No. 033-26431, File No. 811-05750)

American Funds Target Date Retirement Series (File No. 333-138648, File No. 811-21981)

American Funds Tax-Exempt Fund of New York (File No. 333-168594, File No. 811-22448)

The American Funds Tax-Exempt Series II – The Tax-Exempt Fund of California (File No. 033-06180, File No. 811-04694)

American High-Income Municipal Bond Fund (File No. 033-80630, File No. 811-08576)

American High-Income Trust (File No. 033-17917, File No. 811-05364)

The Bond Fund of America (File No. 002-50700, File No. 811-02444)

Capital World Bond Fund (File No. 033-12447, File No. 811-05104)

The Income Fund of America (File No. 002-33371, File No. 811-01880)

Intermediate Bond Fund of America (File No. 033-19514, File No. 811-05446)

International Growth and Income Fund (File No. 333-152323, File No. 811-22215)

Limited Term Tax-Exempt Bond Fund of America (File No. 033-66214, File No. 811-07888)

Short-Term Bond Fund of America (File No. 333-135770, File No. 811-21928)

The Tax-Exempt Bond Fund of America (File No. 002-49291, File No. 811-02421)

hereby revoke all previous powers of attorney I have signed and otherwise act in my name and behalf in matters involving the Funds and do hereby constitute and appoint

Vincent P. Corti

Steven I. Koszalka

Patrick F. Quan

Michael W. Stockton

Courtney R. Taylor

Jennifer L. Butler

Julie E. Lawton

Raymond F. Sullivan, Jr.

Karl C. Grauman

Brian C. Janssen

Dori Laskin

Gregory F. Niland

Jeffrey P. Regal

each of them singularly, my true and lawful attorneys-in-fact, with full power of substitution, and with full power to each of them, to sign for me and in my name in the appropriate capacities, all Registration Statements of the Funds on Form N-1A, any and all subsequent Amendments, or Post-Effective Amendments to said Registration Statement on Form N-1A or any successor thereto, and any supplements or other instruments in connection therewith, and generally to do all such things in my name and behalf in connection therewith as said attorneys-in-fact deem necessary or appropriate, to comply with the provisions of the Securities Act of 1933 and the Investment Company Act of 1940 as amended, and all related requirements of the U. S. Securities and Exchange Commission. I hereby ratify and confirm all that said attorneys-in-fact or their substitutes may do or cause to be done by virtue hereof.

EXECUTED at Irvine, CA , this 9^th day of September, 2013.

(City, State)

/s/ William H. Baribault

William H. Baribault, Board member

POWER OF ATTORNEY

I, James G. Ellis, the undersigned Board member of the following registered investment companies (collectively, the “Funds”):

AMCAP Fund (File No. 002-26516, File No. 811-01435)

American Funds College Target Date Series (File No. 333-180729, File No. 811-22692)

American Funds Corporate Bond Fund (File No. 333-183929, File No. 811-22744)

American Funds Global Balanced Fund (File No. 333-170605, File No. 811-22496)