Better. Together. - American Fundsamericanfundsretirement.retire.americanfunds.com/... · plan...

The right choice for the long term®

Better. Together.You and American Funds Retirement Plan Services

Effective and flexible retirement plan solutions to help your clients and build your practice

“The retirement plan business is getting too complicated.”

“Do I need to specialize in retirement plans to remain competitive?”

“I don’t want to become a fiduciary, but my clients need help with investments.”

“I’m not sure how to differentiate my retirement plan services.”

“I need a provider who understands my value.”

“My provider must have experience and be an industry leader.”

“The provider and investment managers I work with must have competitive fees.”

“I need a provider who can help me educate and enroll employees.”

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. However, assets in the Fixed Account (available only in Recordkeeper Direct multi-fund) are guaranteed by Great-West Life & Annuity Insurance Company, Corporate Headquarters: Greenwood Village, CO; or in New York, by Great-West Life & Annuity Insurance Company of New York, Home Office: White Plains, NY, and payments on investments are subject to the insurer’s claims-paying ability.

For financial professionals only. Not for use with the public. Use of our website and materials is subject to approval by your home office.

The retirement plan industry is rapidly evolving. Relationships and regulations are expanding and growing more complex. Is anyone listening?

To learn more, please visit us online at americanfunds.com/401k 3

How to build a better solutionFind an experienced, committed provider who’s listening

Advisers tell us that they’re concerned about:

emainin competiti e

ifferentiatin their retirement plan practice

eepin up with new plan rules and re ulations

ein ade uately compensated for the e pandin menu of ser ices their clients expect from them

Experience tells us that our industry is continually evolving, and financial advisers have always faced challenges. Fortunately, whether challenges emerge from major market declines or from new regulations, they typically also bring opportunities.

80+ years. Together. 4–6

The American Funds investment difference 7

Recordkeeper Direct 8–9

PlanPremier 10–11

Investments 12–13

Adviser compensation 14

Services and support 15–17Fiduciary supportEducational supportOnline tools and calculators

The key to making the most of those opportunities is allying with an experienced and committed provider — one who believes in the value you deliver and who can make things easier for you — like American Funds.

1931 1932 19331934 19351936 19371938 19391940 1941 19421943 19441945 19461947 1948 19491950 19511952 19531954 19551956 1957 19581959 19601961 19621963 1964 19651966 19671968 19691970 1971 19721973 19741975 19761977 19781979 1980 19811982 19831984 19851986 1987 19881989 19901991 19921993 19941995 1996 19971998 19992000 20012002 2003 20042005 20062007 20082009 20102011 201210,000,000

100,000,000

1,000,000,000

10,000,000,000

100,000,000,000

1,000,000,000,000

10,000,000,000,000

4

80+ years. Together.Insight leads to innovation ... to position you for success

Since 1931, we’ve

listened closely to

financial advisers

and their clients.

This input and resulting

insight has fueled

our long-term record

of innovation and

industry leadership.

$100 million

$11 million

1930S 1940S 1950S 1960S 1970S 1980S 1990S 2000S 2010S

Capital Research and Management CompanySM (CRMC) is formed in Los Angeles by onathan ell o elace

who in early 1929 (before the Great Crash) left his job with a Detroit brokerage after concluding that the market was largely based on “people paying exorbitant prices for the stocks of not-very-valuable companies”

throu h C C resumes role as manager of The Investment Company of America® (the second U.S. mutual fund), which he had established in 1926 while serving for another broker

o help ad isers mar et stoc funds, we form a distribution organization (later known as American Funds Distributors®)

o help in estors ma e more informed investment decisions, we decide to focus on marketing funds through advisers

o impro e upon the conventional single-manager approach to investment management, we devise our unconventional Multiple Portfolio Counselor System®

SEE PAGE 7

o nd a etter lon term investment approach for trusts and foundations, we become manager of Washington Mutual Investors FundSM, a fund that invests in stocks meeting strict standards set by a U.S. District Court for trust funds

o de elop new in estment opportunities as consumer demand outstrips the U.S. supply of natural resources, we become among the first American mutual-fund firms to invest outside the U.S.

o help ad isers and in estors compare results of international investments, we create the EAFE Index (now the MSCI EAFE Index, published by

C arra

o help pension sponsors (and their advisers) pursue asset growth to keep pace with rapidly growing obligations (through greater investment in e uities , we form Capital Guardian Trust CompanySM

o enhance investor services, we form American Funds Service Company®

o provide advisers and in estors with more ed income opportunities, we launch our rst ond fund The Bond Fund

of AmericaSM

o help ad isers and pension plan sponsors (following passage of the Employee Retirement Income Security Act) better match plan investments to liabilities, we expand our menu of fiduciary services

To help advisers better understand and articulate to clients the products and services they’re marketing, we become one of the rst mutual-fund managers to create adviser-focused literature

o compensate ad isers for providing ongoing service to their clients, we introduce 12b-1 service fees

o provide advisers with more support for their investment-only plans, we introduce PlanConnect (later renamed Recordkeeper Connect®)

o offer a more convenient and timely way for advisers and their clients to access account information, we debut websites for financial advisers and shareholders

o help impro e in estment outcomes and help plan sponsors manage their investment-related duciary responsi ilities we

launch target date funds

SEE PAGE 12

o pro ide ad isers with more retirement plan e i ility we introduce PlanPremier®, our rst bundled solution, and PlanDirect (later renamed Recordkeeper Direct®) and PlanPremier TPA®, both unbundled solutions

SEE PAGES 8–11

o offer reater pricin e i ility and clarity, we introduce retirement share classes (R shares), gross-to-net pricing and level adviser compensation

o pro ide ad isers and their clients with expanded trustee and custodial services, we establish Capital Bank and Trust CompanySM

o pro ide ad isers with reater investment and compensation e i ility we introduce a multi-

fund version of Recordkeeper Direct

SEE PAGE 8

o help ad isers and plan sponsors meet investment-related duciary responsi ilities we

provide access to independent third-party fiduciary services

SEE PAGE 15

To enable advisers to more conveniently customize plan proposals and recommendations, we launch several new and enhanced online tools and calculators

o help ad isers etter counsel clients and participants, we introduce convenient Web-based education support and on-site participant education services

AMERICAN FUNDS ASSETS UNDER MANAGEMENT

1931 1932 19331934 19351936 19371938 19391940 1941 19421943 19441945 19461947 1948 19491950 19511952 19531954 19551956 1957 19581959 19601961 19621963 1964 19651966 19671968 19691970 1971 19721973 19741975 19761977 19781979 1980 19811982 19831984 19851986 1987 19881989 19901991 19921993 19941995 1996 19971998 19992000 20012002 2003 20042005 20062007 20082009 20102011 201210,000,000

100,000,000

1,000,000,000

10,000,000,000

100,000,000,000

1,000,000,000,000

10,000,000,000,000

First401(k)plan

5

$100 billion

$10 billion

$1 billion

1930S 1940S 1950S 1960S 1970S 1980S 1990S 2000S 2010S







SEE PAGE 7




C arra




of AmericaSM








SEE PAGE 12


SEE PAGES 8–11





SEE PAGE 8



SEE PAGE 15



1931 1932 19331934 19351936 19371938 19391940 1941 19421943 19441945 19461947 1948 19491950 19511952 19531954 19551956 1957 19581959 19601961 19621963 1964 19651966 19671968 19691970 1971 19721973 19741975 19761977 19781979 1980 19811982 19831984 19851986 1987 19881989 19901991 19921993 19941995 1996 19971998 19992000 20012002 2003 20042005 20062007 20082009 20102011 201210,000,000

100,000,000

1,000,000,000

10,000,000,000

100,000,000,000

1,000,000,000,000

10,000,000,000,000


367,000401(k) plans, SEPs and SIMPLEs*

1.9 MILLIONparticipants*

* As of 12/31/12

American Funds Retirement Plan Services

$1 trillion

$500 billion

$900 BILLION+ assets under management*

AMERICAN FUNDS

1930S 1940S 1950S 1960S 1970S 1980S 1990S 2000S 2010S







SEE PAGE 7




C arra




of AmericaSM








SEE PAGE 12


SEE PAGES 8–11





SEE PAGE 8



SEE PAGE 15



Our history of investment

innovation and commitment

to our founding principles are

also reflected in the evolving

suite of solutions and services

provided by American Funds

Retirement Plan Services.

Read on.

Consistent approach

Our investment philosophy is based on doing what we believe is right for investors.

We base our decisions on a long-term perspective because we believe it’s the best way to achieve superior long-term investment results. Our portfolio counselors average 25 years of investment experience, including 20 years at our company, reflecting a career commitment to our long-term approach.1

Proven system

More than 50 years ago, we developed an original approach to investment management. We call it the Multiple Portfolio Counselor System®.

Our system combines individual accountability with teamwork. Each fund is divided into portions that are managed by investment professionals with varied backgrounds, ages and investment styles. An extensive global research effort is the backbone of our system.

Superior long-term track record

For most investors, results are paramount. We believe it’s important to measure results over meaningful periods of time.

ur e uity funds ha e eaten their ipper peer inde es in of year periods and of year periods ur fi ed income funds ha e eaten their ipper inde es in of year periods and of year periods 2 Our fund management fees have been among the lowest in the industry.3

The American Funds investment differenceOur consistent investment management approach — in combination with a proven system — has resulted in a superior long-term track record

1 As of 12/31/122 ased on Class share results for periods throu h Periods co ered are the shorter of the fund s

lifetime or since the comparable Lipper index inception date. Although Class A shares are available for purchase by retirement plans only in limited instances, their results reflect the investment management experience of the American Funds without retirement plan recordkeeping expenses. American Funds offers plan sponsors flexibility in how they pay for plan operating expenses (such as recordkeeping fees) through distinct classes. Expenses differ for each class, so results will vary. Annuity contracts are subject to additional expenses. Results would have been lower if these expenses were applied.

3 ased on mana ement fees for the year period ended ersus compara le ipper cate ories e cludin funds of funds.


8

Introducing our solutions

To help provide you and your clients with sufficient choice and flexibility to meet each plan s uni ue needs consider both American Funds retirement plan solutions:

• Recordkeeper Direct• PlanPremier

On pages 8–11, we’ll demonstrate the range of choice and flexibility each offers.

Recordkeeper Direct®

Solution overview. Hypothetical case studies.1

imple hi h uality solution for smaller plans and startups

le i ility of multiple fund families or the simplicity of a single fund family

enefits of customi ed administration from a third-party administrator (TPA)

Investments

American Funds only

MUTUAL FUNDS(R-share classes)

Multiple fund families2

GROUP ANNUITY3

(Unit classes)

Participant account recordkeeping American Funds

Plan administration TPA4

1 Not actual firms.2 Investments are offered through a group fixed and variable deferred annuity (“group annuity”) issued by Great-West

Life & Annuity Insurance Company, or, in New York, by Great-West Life & Annuity Insurance Company of New York.3 e uires ad iser to ha e an insurance license and e appointed y reat est ife nnuity nsurance Company4 TPAs must be authorized to provide services for an American Funds retirement plan solution. Authorization for one

solution does not si nify authori ation for any other solution as the re uirements for indi idual pro rams may differ

OR


Recordkeeper Direct

American Funds only

Scooter’s Bread Stop

Plan profile:

ssets Participants nnual contri utions

Adviser asks for:

he simplicity of merican unds only low cost solution implified plan administration

The American Funds solution

Share class(Mutual funds)

Total annual cost1 of assets

R-2 R-3 R-4 R-5 1.42%

Five-year adviser compensation projection2

Year Approx. avg. assets Rate Compensation

1

2 401,000 0.75 3,008

3 511,000 0.75 3,833

4 629,500 0.75 4,721

5 757,500 0.75 5,681

$ 19,486

1 Includes investment and recordkeeping expenses, but not TPA fees.2 ssumes annual contri utions of per participant and an annual

asset rowth rate of

Recordkeeper Direct

Multi-fund

MetaMaster Technologies

Plan profile:

ssets million Participants nnual contri utions

Adviser asks for:

ore in estment choice ore fee and compensation fle i ility i her first year compensation for reater service re uirements at plan setup


Unit class(Group annuity)

Total annual cost1

of assets

1 2 3 4 5 6 7 8 1.41%



1 3

2 1,925,000 0.25 4,813

3 2,235,000 0.25 5,588

4 2,570,000 0.50 12,850

5 2,932,000 0.50 14,660

$ 50,286

1 Includes operating expenses for underlying funds and a group annuity variable asset charge for administrative, service and other fees (the “program charge”) after plan credit, if any.

2 ssumes annual contri utions of per participant and an annual asset rowth rate of

3 First-year commission paid on asset transfer and contributions.

SAMPLE CASE STUDY NO. 1 SAMPLE CASE STUDY NO. 2

For illustrative purposes only. These examples are not intended to portray results of an actual investment. For details and important legal information about fees, expense ratios and adviser compensation, see page 14.

10

InvestmentsMultiple fund families2

MUTUAL FUNDS(R-share classes)

Participant account recordkeeping American Funds

Plan administrationAmerican

Funds TPA3

1 Not actual firms.2 Includes the American Funds.3 TPAs must be authorized to provide services for an American Funds retirement plan solution. Authorization for one

solution does not si nify authori ation for any other solution as the re uirements for indi idual pro rams may differ

OR

Choice. Flexibility.

Investment choice In addition to more than 30 American Funds, as well as the American Funds Target Date Retirement Series®, our solutions also offer access to more than 850 investments from other well-known investment managers. Selection varies by solution and class.

Pricing flexibility We offer a wide range of pricing and compensation options to help serve the needs of each plan and adviser commission- or fee-based service model.

For more information about our retirement plan solutions or to discuss new plan opportunities you are currently pursuing, call 800/421-9900.

PlanPremier ®

Solution overview. Hypothetical case studies.1

ime sa in plan mana ement technolo y

le i ility of multiple fund families

undled or P un undled plan administration

nnual reconciliation of plan costs and re enues


PlanPremier

undled

Better Auto Parts

Plan profile:

ssets million Participants nnual contri utions million

Adviser asks for:

road selection of mutual funds treamlined administration and costs


Share class (Mutual funds)

Total annual cost1 of assets

R-2 R-3 R-4 R-5 R-6 0.73%



1

2 8,341,000 0.20 16,682

3 10,048,500 0.20 20,097

4 11,892,500 0.20 23,785

5 13,884,000 0.20 27,768

$ 101,852

1 Includes investment and recordkeeping expenses after plan credit, if any.2 ssumes annual contri utions of per participant and an annual

asset rowth rate of

PlanPremier TPA

University Radiology

Plan profile:

ssets million Participants nnual contri utions

Adviser asks for:

road selection of mutual funds Customi ed administration throu h a P


Share class (Mutual funds)

Total annual cost1

of assets

R-2 R-3 R-4 R-5 R-6 1.01%



1

2 3,208,500 0.35 12,834

3 3,725,500 0.35 14,902

4 4,284,000 0.35 17,136

5 4,887,000 0.35 19,548

$ 75,340

1 Includes investment and recordkeeping expenses after plan credit, if any.2 ssumes annual contri utions of per participant and an annual

asset rowth rate of

SAMPLE CASE STUDY NO. 1 SAMPLE CASE STUDY NO. 2

For illustrative purposes only. These examples are not intended to portray results of an actual investment. For details and important legal information about fees, expense ratios and adviser compensation, see page 14.

12

American Funds Target Date Retirement Series®

2055 2050 2045 2040 2035 2030 2025 2020 2015 2010

Can ma e it easier for participants to create a di ersified portfolio by selecting a single target date fund

Can result in hi her plan participation rates

Can reduce sponsors in estment related lia ility when serving as a plan’s qualified default investment alternative

Although target date funds are managed for investors on a projected retirement date time frame, their allocation approach does not guarantee that investors’ retirement goals will be met. American Funds investment professionals manage the target date fund portfolios, moving them from a more growth-oriented approach to a more income-oriented focus as the fund gets closer to its target date, the year in which an investor is assumed to retire and begin taking withdrawals.3

Core investments from American Funds ore than of the merican unds plus target date funds pro en in estment system of independence teamwor and lo al research

Cash-equivalent

American Funds Money Market Fund® 1F

Bond

American Funds Mortgage Fund®

American Funds Preservation PortfolioSM 1

American High-Income TrustSM

he ond und of mericaSM

Capital orld ond und®

ntermediate ond und of merica® 1

hort erm ond und of mericaSM 1

U.S. Government Securities FundSM

Equity-income and balanced

merican alanced und®

merican unds alanced PortfolioSM

merican unds lo al alanced undSM 1

American Funds Income PortfolioSM

Capital ncome uilder®

The Income Fund of America®

Growth-and-income

American Funds Growth and Income PortfolioSM

American Mutual Fund®

Capital World Growth and Income Fund®

Fundamental InvestorsSM

International Growth and Income FundSM

The Investment Company of America®

Washington Mutual Investors FundSM

Growth

AMCAP Fund®

American Funds Global Growth PortfolioSM

American Funds Growth PortfolioSM

EuroPacific Growth Fund®

The Growth Fund of America®

The New Economy Fund®

New Perspective Fund®

New World Fund®

SMALLCAP World Fund®

1 Not available with the multi-fund version of Recordkeeper Direct.2 Investment allocations and underlying funds are as of the prospectus available at the time of publication.3 Investment professionals continue to manage each fund for 30 years after it reaches its target date.

172 American Funds allocated in portfolio

1,900+ individual stocks and bonds in portfolio

64 portfolio counselors’ investment ideas

Each target date fund becomes more income-oriented over time as it gets closer to its target retirement date

Bond fund 5%U.S. Government Securities FundSM

Equity-income/Balanced funds 20%merican alanced und®

Capital ncome uilder®

The Income Fund of America®

Growth-and-income funds 35%Washington Mutual Investors FundSM

The Investment Company of America®

American Mutual Fund®

Fundamental InvestorsSM

Capital World Growth and Income FundSM

International Growth and Income FundSM

Growth funds 40%AMCAP Fund®

The Growth Fund of America®

New Perspective Fund®

SMALLCAP World Fund®

EuroPacific Growth Fund®

The New Economy Fund®

New World Fund®

2030

Accumulation Transition Distribution

2055 2050 2045 2040 2035 2030 2025 2020 2015 2010 +5 +10 +15 +20 +25 +30

5 5 5 5 5 5 10 25 35 45 45 50 50 55 60 6010 10 10 10 10 20

2045 45 45 45

4035 20

3520

35 25 3030 35

30 3540 40 40 40 40 40 35 40

3525

2520 20

15 1510

5 5

45 40 35 30 25 20 15 10 5 5 10 15 20 25 30

Years to retirement Retire Years after retirement

Accumulation Transition Distribution

2055 2050 2045 2040 2035 2030 2025 2020 2015 2010 +5 +10 +15 +20 +25 +302055 2050 2045 2040 2035 2030 2025 2020 2015 2010 +5 +10 +15 +20 +25 +30

5 5 5 5 5 5 10 25 35 45 45 50 50 55 60 605 5 5 5 5 5 10 25 35 45 45 50 50 55 60 605 5 5 5 5 5 10 25 35 45 45 50 50 55 60 605 5 5 5 5 5 10 25 35 45 45 50 50 55 60 605 5 5 5 5 5 10 25 35 45 45 50 50 55 60 605 5 5 5 5 5 10 25 35 45 45 50 50 55 60 605 5 5 5 5 5 10 25 35 45 45 50 50 55 60 605 5 5 5 5 5 10 25 35 45 45 50 50 55 60 605 5 5 5 5 5 10 25 35 45 45 50 50 55 60 605 5 5 5 5 5 10 25 35 45 45 50 50 55 60 605 5 5 5 5 5 10 25 35 45 45 50 50 55 60 605 5 5 5 5 5 10 25 35 45 45 50 50 55 60 605 5 5 5 5 5 10 25 35 45 45 50 50 55 60 605 5 5 5 5 5 10 25 35 45 45 50 50 55 60 605 5 5 5 5 5 10 25 35 45 45 50 50 55 60 605 5 5 5 5 5 10 25 35 45 45 50 50 55 60 605 5 5 5 5 5 10 25 35 45 45 50 50 55 60 6010 10 10 10 10 2010 10 10 10 10 2010 10 10 10 10 2010 10 10 10 10 2010 10 10 10 10 2010 10 10 10 10 2010 10 10 10 10 20

2045 45 45 4545 45 45 4545 45 45 4545 45 45 4545 45 45 45

4035 2035 2035 20

3520

35 25 3035 25 3035 25 3035 25 3035 25 3030 3530 35

30 3540 40 40 40 40 4040 40 40 40 40 4040 40 40 40 40 4040 40 40 40 40 4040 40 40 40 40 4040 40 40 40 40 40 35 4035 40

3525

2520 20

15 1510

5 5

45 40 35 30 25 20 15 10 545 40 35 30 25 20 15 10 5 5 10 15 20 25 305 10 15 20 25 30

Years to retirementYears to retirement RetireRetire Years after retirementYears after retirement

2030

* As of 12/31/12. Some funds may not be available in some classes. To determine which fund families and investments are available in each class, visit the Retirement Plan Investment EvaluatorSM in the online Adviser Center (keyword: “investment evaluator”). Fee-based advisers may have access to additional investments in R-5 and R-6 share classes.


Additional investments for more choiceMore than 850 investments from more than 35 well-known managers*

Recordkeeper Direct®

Multi-fund

PlanPremier®

undled and P

14

Adviser compensationFlexible. For any adviser service model.

Our suite of solutions provides a wide range of adviser compensation options for all adviser commission- or fee-based service models.

For more information about adviser compensation, visit the online Adviser Center at americanfunds.com/401k to run the Price-it toolSM.

Recordkeeper Direct — American Funds only

Share class Adviser compensation Average expense ratio1, 2

R-2

R-3 0.50 1.01

R-4 0.25 0.73

R-5 Paid separately; set by fee-based adviser 0.46

R-6 Not available Not available

Recordkeeper Direct — Multi-fund

Unit class

Adviser compensation: Choose Option 1 or 2Average

expense ratio1, 4Option 1 Option 23

Annual Year 1 Years 2–3 Years 4+

1

2 0.65 Not available 1.64

3 0.60 1.00 0.20 0.60 1.54

4 O.50 0.75 0.25 0.50 1.39

5 0.40 0.50 0.20 0.40 1.19

6 0.25

Not available

0.99

7 Paid separately; set by fee-based

adviser

0.74

8 0.54

PlanPremier — Bundled; TPA (unbundled)

Share class Adviser compensation Average expense ratio1, 5

R-2R-3 0.35 1.01

R-4 0.20 0.73

R-5Paid separately; set by fee-based adviser

0.46

R-6 0.40

1 Average expense ratios shown are provided only as an example. The average expense ratio for a plan will depend on the investments selected and plan participants’ allocations.2 The average expense ratio shown for each share class is the weighted average expense ratio for the American Funds. The actual expense ratios, as of each fund’s prospectus

a aila le at the time of pu lication ran e from to for to for to for and to for he wei hted average expense ratio for each share class is based on the average daily net assets of all available American Funds (excluding the American Funds Target Date Retirement Series; estimated for merican unds lo al alanced und as of their prospectuses a aila le at the time of pu lication ccordin ly more wei ht is i en to funds with more assets and less weight to those with fewer assets. Although American Funds Money Market Fund Class R-2, R-3 and R-4 shares have a 12b-1 plan, payments are currently being suspended in this low-interest-rate environment.

3 First-year commission is paid on conversion and new contributions. Successive years’ commission is paid as asset-based trail. A commission chargeback may apply if within the first 24 months the plan terminates, moves from Recordkeeper Direct (multi-fund) to another American Funds solution, to another provider, or changes unit classes.

4 Average expense ratios shown are provided only as an example. The average expense ratio for a plan will depend on the investments selected and plan participants’ allocations. The average expense ratio shown for each unit class is the sum of the weighted average expense ratio for the underlying American Funds (R-6) and the variable asset charge which ran es from to dependin on the unit class for administrati e ser ice and other fees on the aria le assets the pro ram char e he a era e e pense ratios shown do not include underlying funds of other fund families. The operating expenses of all available underlying funds, as of each fund’s prospectus available at the time of pu lication ran e from to he unwei hted a era e operatin e pense of all a aila le underlyin funds in a compara le institutional share class for ecord eeper

irect multi fund is he wei hted a era e e pense ratio for each unit class is ased on the a era e daily net assets of all a aila le merican unds e cludin the merican unds ar et ate etirement eries and the merican unds Portfolio eries estimated for merican unds lo al alanced und as of their prospectuses a aila le at

the time of publication. Accordingly, more weight is given to funds with more assets and less weight to those with fewer assets.5 The average expense ratio shown for each share class is the weighted average expense ratio for the American Funds. The actual expense ratios for the American Funds available

in PlanPremier as of each fund s prospectus a aila le at the time of pu lication ran e from to for to for to for to for and to for he a era e e pense ratios shown do not include funds of other fund families he unwei hted a era e e pense ratios for all a aila le funds in each share class for PlanPremier is for for for for and for he wei hted a era e e pense ratio for each share class is based on the average daily net assets of all available American Funds (excluding the American Funds Target Date Retirement Series; estimated for American unds lo al alanced und as of their prospectuses a aila le at the time of pu lication ccordin ly more wei ht is i en to funds with more assets and less wei ht to those

with fewer assets. Although American Funds Money Market Fund Class R-2, R-3 and R-4 shares have a 12b-1 plan, payments are currently being suspended in this low-interest-rate environment.


Services and support … to help your clientsPlan prudence. Fiduciary responsibility.

Retirement plan sponsors must exercise prudence in the four foundational areas of every retirement plan — investments, recordkeeping and administration, employee education and fees ecause some sponsors may lack time, confidence or knowledge, they may seek help ... often from you, their financial adviser.

To help you and your clients address these responsibilities, American Funds offers a wide range of fiduciary services and support.

Fiduciary services

For plan sponsors who want help selecting and monitoring plan investments, American Funds makes available fiduciary services through an independent third-party investment advisory firm. That firm, Wilshire Associates, Inc. (“Wilshire®”), can serve as a co-fiduciary in two ways:

“Help me do it” Wilshire, serving as a nondiscretionary co-fiduciary, provides sponsors with investment recommendations, guidance and supporting research, but sponsors make the final decisions. ERISA 3(21)

“Do it for me”

Wilshire, serving as a discretionary co-fiduciary, makes the investment decisions. ERISA 3(38)

Fiduciary support

American Funds fiduciary support can be helpful whether you serve as a co-fidicuary or not.

nformation to meet the new re uirements for additional disclosure of fees and services to plan fiduciaries [408(b)(2)], plan-eligible employees (including participants), terminated employees, and beneficiaries with account balances [404(a)(5)]

customi ed on demand Plan Review (PlanPremier only)

Stay on Course brochure explains fiduciary responsibilities, identifies steps to reduce related liability, and shares useful chec lists uestionnaires and templates

Stay on course


A guide to meeting your fiduciary responsibility as a plan sponsor

our pillars of duciary responsi ility

Plan investments

Recordkeeping and

administration

Employee education

Plan fees

16

… to help employees and participantsOnline and print support. On-site services.

Helping employees reach their retirement goals

Getting started

Help motivate employees to join the plan, select investments and learn more about their plan and investments.

Enrollment payroll stuffer

Enrollment poster

Enrollment brochures

Enrollment DVD

Presentations Participant websitepayroll stufferpayroll stuffer posterposter

Retirement planenrollment video

English and Spanish

Staying invested

Encourage participants to remain in the plan and continue to make informed investment decisions.

Educationbrochures

Quarterly newsletters

Website Financial checkup brochurecheckup brochurecheckup brochure

ow you can mo e closer to your retirement oals

Seize the moment

[ Company Name]

Leaving the plan

Help participants understand their distribution options and make the most of their retirement savings.

Where Are You Going? brochure

Rollover and distribution

Rollover brochureGoing?Going?


Rollover and distribution forms

[Name][Plan Company]

Use these forms when you decide what to do with your retirement plan money

nline education support and on-site participant education services (based on availability) led by American Funds professionals

Investing for Life helps you make the most of our literature to ensure that participants get the information they need to succeed as investors

Clients for Life provides insights, strategies and tools to strengthen your retirement plan practice and build lasting relationships


… and to help you build a better solutionUseful tools. Powerful calculators.

Visit our online Adviser Center to establish your own value proposition, select a plan type and investment share class, generate a proposal, and evaluate, compare and present investment lineups and solution expenses.

A suite of tools to help build your retirement plan practice

Prospect Sell Setup and service

Value Proposition ToolSelect from a variety of statements to define your own retirement plan servicing philosophy.

“rp vps”• • •

Price-it toolSM Run a preliminary estimate of PlanPremier and Recordkeeper Direct plan costs.

“price it”• • •

Retirement plan proposal Order a customized, full-color proposal booklet to help you present a retirement plan solution to a plan sponsor.

“proposal”

•Retirement Plan Investment EvaluatorSM

uild a customi ed plan in estment lineup

“evaluator” • • •Retirement Plan Cost Comparison Tool Compare up to four providers’ fees (including American Funds) to show how fees can impact plan costs over time.

“cost comparison”

• • •Small-business plan selector

nswer a few uestions to identify which plan type is right for their business.

“small business”•

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Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing. Some of this information may differ if the investment is offered through a group annuity product — please consult your financial professional for more information.

All American Funds trademarks mentioned are owned by American Funds Distributors, Inc., an affiliated company or a fund. All other company and product names mentioned are the trademarks or registered trademarks of their respective companies.

Visit us at americanfunds.com/401k

The Capital Group Companiesmerican unds Capital esearch and ana ement Capital nternational Capital uardian Capital an and rust

American Funds Retirement Plan Servicesetter Together.

* Includes 401(k), profit-sharing, money purchase, SEP and SIMPLE plans, as of 12/31/12.

In a survey of advisers, American Funds was first among 37 major retirement plan providers for being “easiest to do business with” and “best-in-class service and support.”

Retirement Plan

Advisor TrendsTM 2011,

Cogent Research

Since our founding in 1931, American Funds has been committed to two enduring principles:

Invest for the long term Respect the value advisers deliver to their clients

This approach has helped us position advisers for success and made us a leader in the adviser-sold retirement plan market. Today, more than 350,000 small- to mid-size businesses and nearly 2 million plan participants rely on American Funds Retirement Plan Services.*

Service and support to make your job easier

Our service teams and programs help advisers and sponsors manage their plans easily and effectively. Among those key services are online and on-site education support, to encourage enrollment and sound investing, and access to an independent third-party fiduciary service — for a low flat fee and without adding to your own liability — to help sponsors select and monitor plan investment lineups.

Solutions and flexibility to serve you and your clients

Our retirement plan solutions, designed to support small- to mid-size plans, offer your clients a wide choice of investments from well-known fund families. The solutions also offer flexible adviser compensation to support your commission- or fee-based service models.

Value and clarity to build better plans

We strive to keep our fees competitive but without sacrificin uality and we endeavor to make it easy to understand the expenses associated with retirement plans.

oth are necessary to ena le sponsors and investors to make informed investment decisions.

The next time you have a new retirement plan opportunity, call 800/421-9900.We’ll help you develop a customized and compelling proposal.

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